Nagpur | April 22, 2016: Iron ore mining has once again begun after a gap of eight years in the Naxal infested Surjagarh area of Gadchiroli district. Lloyds Metals and Energy Limited has begun extraction of ore from over 250 hectares of area, for which it secured a mining lease (ML) in 2007.
In a month, it has been able to extract 3,000 metric tonnes ore, which is much less than the mine's annual capacity of 1.2 million tonnes. Only manual extraction has begun so far with no machines deployed, say sources. The area is known to have one of the best grades of iron ore in the country, but the resources could not be extracted as yet due to the Naxal threat. The iron ore will be supplied to the company's plant at Ghuggus in Chandrapur district, said a source.
If the Naxal threat held back private companies from mining in Surjagarh, the government too has set a deadline for projects to start. Approvals to six other companies are likely to be withdrawn next year if they do not start the mines.
Despite the mining plans having been approved since as early as 2005, none of the projects, besides Lloyds, have been executed. The new Mines and Minerals Development and Regulations Act of 2015 has set a deadline of January 2017 for starting the projects. On failing to do so, allocations will be cancelled and the same mines will be granted through competitive bidding.
Local sources in the area say the move by Lloyds Metals indicates that the Naxals have softened their stance. Mining companies were trying to woo the rebels since last 3-4 years but could not reach a pact. Senior Naxal leader Aitu, who surrendered in Telangana last year, was against mining activities. Narmada Akka, another parallel leader, however, was in favour of allowing it on certain conditions. Sources in the business also claim that the Naxal presence itself has come down in the area, which has prompted the company to start mining.
However, recently there has been opposition from local politicians like former MP Marotrao Kowase and ex-MLAs Deepak Atram, Namdeo Usendi and Anandrao Gedam, who led the residents of this area against mining activities.
This is the second attempt by Lloyds to start the mines. Earlier, the mines were started in 2008. Hardly 450 tonnes could be extracted in a month before the company had to face the Naxal ire. The company staffers were beaten up and equipment was burned down.
Later, in 2013, the company's vice-president Jaspalsingh Dhillon was killed by the rebels. It is learnt that Dhillon was negotiating with the Naxals for a settlement.
The mining proposals by other companies are in various stages. Once an approval is given by the state government, the mining company has to get concerned permissions from agencies like forest department and Indian Bureau of Mines. The state finally signs the mining lease on the basis of such proposals.
If the rest of the mines are withdrawn, Lloyds Metals will have the advantage of being able to extract ore without going through the process of competitive bidding.
SOME FACTS:
- Surjagarh located over 150km from Gadchiroli town has some of the best grades of iron ore in the country
- A dozen companies have approval for getting mining lease from state
- Mining could not begin due to Naxal threat; There were difference within the Naxals on allowing mining
- Lloyds attempted to start mine in 2008, but faced a violent Naxal backlash. In 2013, a company vice president rank was killed
- Other companies given approvals include Gopani Iron, Corporate Ispat Alloys, and JSW Ispat
- Approvals likely to be cancelled of mines are not operational by January 2017; Then, mines will be granted again through competitive bidding
- Apart from iron ore, approvals have been given for lime stone mines too
(Source: http://timesofindia.indiatimes.com/)