Joda: Many firms, after grabbing mines with promise of high premiums in Joda mining circle in Keonjhar and Koida mining circle in Sundargarh district, have stated their inability to operate the mines for various reasons. This will lead to scores of workers facing job loss, a report said.
According to the report, after the government initiated the mines leases, many new and old mining firms got hold of leases in various mining circles in the state. A kind of competition was found in the mining leases with companies having vied for marginal profits. In such situation, the government had estimated to rake in huge revenue from the mining leases.
But the government’s hopes have started petering out for various reasons, some mining experts have pointed out.
In June, leasing process of big mines was taken up. Indian Bureau of Mines (IBM) fixes the prices of the minerals. Some mining companies had got leases of mines with varying premiums of over 150 per cent on mineral prices (per tonnage) to be paid to the state government.
Problem started for some mining firms when they started mining operations. They calculated various costs related to mineral extraction and royalty. Taking all such factors into account, they found it unfeasible to operate them. They have meanwhile, apprised the state government of their operational inability.
It may be noted that five of these mines belong to Joda and Koida mining circles. Experts said that this might put the government in a fix and leave it with two options— either go for fresh bidding or force the firms to start operations.
On the other hand, thousands of workers have started losing their jobs while operations have been hampered in these mines.
Since June till date, these firms have been unable to operate their mines leading loss of revenue to the tune of crores of rupees to the state government.
“In this situation, hundreds of mining workers have migrated outside after losing their jobs,” lamented Maheswar Rout, a labour union leader.
On the other hand, locals have been staging protests, demonstrations and dharnas, seeking jobs in the operational mines.
Besides, transporters/truckers are unhappy over transportation prices of the minerals. Transporters and the mine lease holders are at loggerheads over the pricing issue in the district.
The miners, who have got hold of the leases with more than 100 per cent premiums, are allegedly trying to adopt fraudulent and illegal means to make up for their loss.
Joint director of Mines department, Bhubaneswar, Umesh Chandra Jena, during his visit to Joda area had detected that miners were not abiding by the official guidelines for their profitability.
In his letter 6605/23/9/2020, he had pointed out illegalities in mineral grade tampering.
However, Salil Kumar Behera, the joint director of Joda mining circle, said that Rs1,600 crore has been collected as revenue from the mining sector from June till November. He admitted if mines were not made fully operational, the revenue collection may be affected in the current year.
PNN