Bhubaneswar: The Odisha government has issued a show cause notice to Iron ore miner KJS Ahluwalia for cancellation of its Jaldihi and Tantigram Iron ore and Manganese mines. The 29.57 hectare mines is located in the Bonai subdivision of Sundargarh District. The show cause notice has been issued by Paradeep Kumar Mishra, Special Secretary, steel and Mines department for not commencement of mining operation during the period 1991 to 2011.
The government has asked the miner to appear before the department on 12th of this month and to show cause why the mining lease will not be cancelled. As per the rules under section 4A (4) under the MMDR act 1957 and rule 28 of MCR act 1960 the government can cancel mining lease due to discontinuance of mining operation continuously for more than two years.
KJS Ahluwalia is an Iron ore miner based in the state of Odisha. The miner has recently increased the Iron ore prices for September at around Rs 200-250/MT. Other miners of the state have not yet revised their prices for the month.
Earlier in June 2012, Odisha government had suspended transportation and mining of iron ore from the mines which were leased out to the KJS Ahluwalia Group.
India is the 4th largest Iron ore producers of the world. Iron ore production is however on decline because of the ban imposed on Karnataka and Goa during 2011-2012. Mining in Eastern state of Odisha was permitted though with certain restrictions on transportation during this period. Odisha remains the highest Iron ore producer after Chhattisgarh.