Odisha to recover ₹1,042 cr. from company for excess iron ore mining

Firm given seven days notice for submission of reply

Odisha’s Directorate of Mines has served a show-cause notice to the Sarada Mines Limited for recovery of ₹1,042 crore towards alleged excess iron ore production in Keonjhar district.

Following a Supreme Court order, the company was allowed to resume mining operation in the Thakurani-B Iron Mines in January, 2020.

“On verification it has been noticed that you have produced 6l,53,976 metric tonnes during 2020-21, which is 21,53,976 MT higher than approved lowest limit of environment clearance, mining plan and consent to operate,” said the Keonjhar Joint Director in the notice.

The company has been served the show-cause as to why the cost price of compensation under Section 2l(5) of the Mines and Minerals (Development and Regulation) Act 1957 should not be recovered from it.

The government issued the notice on May 28 giving seven day-time for submission of reply.

As per the environment clearance, the company was accorded permission to produce 40 lakh metric tonnes in a year.

As per the Indian Bureau of Mines, the average price per metric tonne during the past 12 months was ₹4,939.

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