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SC allows movement of royalty-paid iron ore

Apex court says Lease holders can transport ore that was mined before 15 March 2018

the goan I network

PANAJI

The Supreme Court of India has allowed mining lease holders to transport ore that was mined prior to March 15, 2018 agreeing with the contentions of Chowgule and Co and other mining companies that had approached the court that they should be given six months to transport the ore after the expiry of the term of the lease.   

In a judgement delivered on Thursday, Justices BR Gavai and Suryakant pointed to the government Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016 which allow a leaseholder on the expiry or sooner termination of the lease term, a six months period to remove for its own benefit, all or any ore mineral excavated during the currency of the lease as well as other machinery and equipment which may have been erected, setup or placed by the lessee in or upon the leased lands.   

The bench also referred to interim judgements of the Supreme Court by the same 

bench that cancelled the 88 mining leases but which allowed some leaseholders to transport ore that royalty had already been paid for.   

“Taking (an) overall view of the matter… the orders passed by the same bench which delivered the judgment in Goa Foundation­ II permitting the minerals/iron ore to be transported which were royalty paid and which was lying on the jetties on or before 15.3.2018; and the legislative policy granting six months’ period for removal of the mineral for the benefit of the lessees, we find that the view taken by the Division Bench of the Bombay High Court is not correct,” the Supreme Court ruled.   

If this Court intended to prohibit mining as well as transportation of the minerals/iron ore with effect from 16.3.2018 nothing precluded it from doing so.   

“Not only this but the same bench which has decided the Goa Foundation (case) itself on two occasions has permitted the mineral to be transported from the jetties. We do not find that there is any rationale in differentiating between the iron ore which is either at the jetties or at the stockyards or pitheads, if the same is mined prior to the date of the prohibition,” the bench decreed.   

The Supreme Court also ruled that the ore that was mined belonged to the leaseholders. “There is no doubt that the ownership of the ore is that of the party that has raised the ore. The ore which has been permitted to be transported is on condition of payment of royalty. We see no reason why the owners should not be allowed to transport their own ore,” the SC ruled.   

“Needless to state, that the transportation of the mineral would be only in respect of such minerals on which royalty is paid. The appellants/mining leaseholders would be permitted to transport the royalty paid ore/mineral from the jetties/stockyard or pitheads on the basis of the valid transit permits issued to them by the competent authority of the State Government,” the Supreme Court ruled.   

The Goa Foundation through Advocate Prashant Bhushan submitted that the mining leases of the various lessees had already expired in 2007. They were illegally continuing their mining operations and that if the permission is granted to transport this iron ore, it will amount to giving a premium for illegal activity of the leaseholder.   


Transportation of 9 m tonnes of ore within eight days: CM   

PANAJI: Welcoming the Supreme Court decision to allow transportation of iron ore extracted from mines with valid leases in Goa, Chief Minister Pramod Sawant on Thursday said that transportation of the over 9 million tonnes royalty-paid iron ore lying at various mining sites across Goa may commence within 8 days and the state economy would benefit as a result.   

“There was a plea for allowing transportation of extracted ore. The court has permitted us today. We are taking positive steps to start mining. It will benefit our economy,” Sawant said.   

“First time since 2012 a positive order has come. We are hopeful of positive results in other mining cases too. By Feb 22 most results will come,” he further said adding that now the economy will move. Market position is good and there is scope for export, he added.   

“Till first of June we have the permission to transport. After  completing all formalities like getting permits from the state  government, this ore transport will be allowed. The state 

government  will cooperate with all the mine owners in the interest of the people,”   the Chief Minister added.   

Sawant also assured that the state government will co-operate with the mining firms in the interest of the people so that mining activities can commence in the state at the earliest.   

CM said that mining firms will now be able to carry out transportation throughout the entire mining season till June and urged the mining companies to reinstate retrenched workers and give full payment to those receiving half payment.   

After the mining was banned in Goa by the Supreme Court in 2018 there thousands of mining dependents livelihood had been affected. With the order of SC some relief is expected for those related to the field.   


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Don Bosco: A loving educator of the young

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Published Jan 31, 2020, 3:05 AM IST
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