Supreme Court panel recommends scrapping Goa iron ore leases

NEW DELHI/MUMBAI Fri Dec 7, 2012 7:39pm IST

Related Topics

Stocks

   

NEW DELHI/MUMBAI (Reuters) - A panel appointed by the Supreme Court has recommended scrapping 42 iron ore mining leases in Goa until mining companies submit plans to deal with the environmental impact and legal details involved, a lawyer who attended the hearings said.

A temporary mining ban, imposed from early October, has cut local production and crimped exports, opening up new markets for world miners such as Vale (VALE5.SA), Rio Tinto (RIO.AX) (RIO.L) and BHP Billiton (BHP.AX) (BLT.L).

The court imposed a ban in Goa from early October after allegations of illegal mining from a government-appointed committee. It followed a similar ban in neighbouring Karnataka the previous year.

"The Supreme Court committee has directed scrapping 42 mining leases in the region of Goa and said that all things should be in accordance to law," lawyer Sandeep Singh said.

The Centrally Empowered Committee, whose recommendations have been accepted by the Supreme Court so far in Karnataka, has also suggested that the court ask miners to demarcate their lease areas properly.

The court hearing has been adjourned to January 8.

"It will hamper the re-start of mining in Goa soon ... India will become an insignificant player in the international market," H.C. Daga, president of the Federation of Indian Mineral Industries, said.

Before the ban, Goa was India's third-biggest producer of iron ore and its top exporter, producing more than 50 million tonnes annually and exporting almost all of it.

In Karnataka, India's second-biggest producer of iron ore, the top court allowed 18 mines to restart operations in early September, which was expected to add 5 million tonnes of output per year to the National Minerals Development Corporation's (NMDC.NS) 12 million tonnes.

(Editing by Jane Baird)

FILED UNDER:

REUTERS EXCLUSIVE

Reuters Showcase

Reaction to Budget

Reaction to Budget

India budget unlikely to impact credit rating - agencies  Full Article 

PMI Data

PMI Data

Factory activity growth slows to five-month low in Feb  Full Article 

Documents Leaked

Documents Leaked

Indian Oil suspends official for leaking information - sources  Full Article 

Coal Auction

Coal Auction

India examines coal mine bids amid reports of discrepancies  Full Article 

Ola Buys Rival

Ola Buys Rival

Ola buys rival TaxiForSure for $200 million  Full Article 

Priority Sector

Priority Sector

RBI revises priority sector lending norms  Full Article 

Global Economy

Global Economy

Global stimulus swells as China eases, ECB to start soon on QE  Full Article 

Steel Industry

Steel Industry

Steelmakers hit by uncertainty over import duty hike   Full Article 

HP Buys Aruba

HP Buys Aruba

HP to buy Wi-Fi gear maker Aruba Networks for $2.7 billion  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage