Keonjhar: A show cause notice was issued to ArcellorMittal for violating Mineral Concession Rules-2016, a report said.
The company was ambitious to set up a mega steel plant in Keonjhar and had initiated the process for land acquisition, but later it abandoned the project.
Now, the same company has got Thakurani iron mine on a lease through auction, but it has no plan to set up a big steel plant in the district. It has started its mining operation, but not before violating rules. The directorate of mines has exposed chinks in mining.
When the company set its sights on minerals of the district, its hesitance to set up a plant here has caused resentment among people.
According to reports, the directorate of mines has issued a notice vide letter (6678/15 September 2020) to the company, pointing out that the firm has violated Rule12A of Minerals Concession Rules while operating mine at Thakurani.
Experts apprehended that if its mining operation is not properly monitored, possibility of another mining scam can’t be ruled out.
After getting the mine, the company had signed an agreement with Keonjhar Collector following the Mining Development and Production Agreement (MDPA)-2016.
As per the agreement, in the first two years of mining, the company is bound to extract 80 per cent of the production target of the minerals. If the company fails to abide by the agreement, it is liable to imposition of penalty.
As per the agreement, the company was supposed to transport 989,903.79 metric tonnes of iron ore by September 21, 2020.
But, it has been able to transport only 106,845.59 metric tonnes. This means, the company has failed to achieve the target in mineral transportation. The shortfall in its transportation target is 883,058.20 metric tonnes.
In the letter issued by the directorate of mines, it was stated that the company has violated Rule-12A, para 8 and 1 of the Mineral Concessions Rule- 2016 and the schedule-D of the MDPA.
Meanwhile, the mines and steel department has issued a show cause notice to the company and sought a report within 15 days.
PNN
