SC Allows SMPL To Restart Mining After Clearing Dues

The Supreme Court has allowed Sarda Mines Pvt Ltd (SMPL) to resume operations at its mine in Keonjhar district in Odisha, after paying around Rs 933 crore to the state as environmental compensation.

A Supreme Court bench headed by Chief Justice S A Bobde granted a month's time to the mining company to deposit the dues assessed by the Central Environment Committee (CEC), and also file an undertaking complying with rules and regulations for carrying out mining operations.

After the fulfillment of this condition, the mining company could resume its operations remaining in the lease period.

The mining company had submitted before the Supreme Court that it has lost more than five-and-a-half years, and merely six months of its lease period remained. The Thakurani mines of SMPL used to supply high-quality iron ore to the Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) plant.

Earlier, the Odisha state government and the CEC had stated that they had no objection to mining operations if SMPL complied with all the mandatory rules and conditions while doing so.

In another matter filed by the Odisha government against JSPL, in connection with transportation of iron ore worth Rs 2,000 crore, allegedly stacked at one corner of this company, the Supreme Court asked the mining firm to furnish an undertaking by January 16, 2020 to clear its dues with the Odisha state government.

The Supreme Court clarified that it will allow JSPL to transport iron ore only if SMPL gave its undertaking to comply with the directions. JSPL’s lawyer said that the mine used to supply iron ore for nearly 15 years, but it has been closed for five years now.

The counsel told the Supreme Court that the company took a loan of Rs 2,000 crore from the State Bank of India (SBI) to purchase this order, but it cannot be transported due to a stay order.