SEQUENCE OF EVENTS LEADING TO

THE PRESENT PHASE

On 19th December, 1961, Goa was liberated and became a part of Indian Union. On 1st October, 1963, the MMRDAct 1957, was made applicable to the Union Territory of Goa. Prior to this, the Portuguese who were ruling Goa had granted mining concessions in perpetuity to the concessionaires.

On 10th March, 1975, the Controller of Mining Leases, by issuance of notification, called upon every lessee and sub-lessee to file returns under Rule 5 of the Mining Leases (Modification of Terms) Rules, 1956 and sent copies of the notification to the concessionaires in Goa

The Bombay High Court restrained the Union Government from enforcing the said notification against the concessionaires.

The Parliament, thereafter, passed the Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act, 1987.  On 23rd May, 1987, the President of India, gave his assent to the Abolition Act. Section 4 of the Abolition Act abolished the mining concessions and declared that with effect from 20th December, 1961 every mining concession will be deemed to be a mining lease granted under the MMDR Act and the provisions of the MMDR Act will apply to such mining leases.

Accordingly,

the State Government granted first renewal for a period of 10 years i.e. 22nd November, 1987 to 21st November,1997.

Subsequently, in view of the amendment to Section 8 of the MMDR Act, the renewal was extended from 10 to 20 years and the period of 20 years expired on 22nd November, 2007.

Before expiry of the period of the first renewal, the petitioners preferred applications under Section 8(3) of the MMDR Act to the State Government for renewal of their mining leases.

In the year 2010, the Central Government appointed Justice Shah Commission under Section 3 of the Commissions of Inquiry Act, 1952 to inquire into the illegal mining of iron ore and manganese ore in contravention of the provisions of the MMDR Act, the Forests (Conservation) Act, 1980, the Environment (Protection) Act, 1986 and other rules and guidelines issued thereunder.

Justice Shah Commission submitted its interim report in March, 2012 to the Ministry of Mines, Union of India and it was tabled with ATR in the Parliament on 10th September, 2012.

State Government passed an order suspending all mining operations in the State of Goa with effect from 11th September, 2012.

By order dated 14thSeptember, 2012 of the MOEF, Government of India, directed that the Environmental Clearances granted to the mines in the State of Goa be kept in abeyance.

On the basis of the findings of the report of JSC on illegal mining in the State of Goa, Goa Foundation filed Writ Petition (C) 435 of 2012 in the Supreme Court as Public Interest Litigation, praying for directions to the Union of India and the State of Goa to take steps for termination of the mining leases of the lessees involved in the mining in violation of the aforesaid Acts

Various mining lessees of the State of Goa filed Writ Petitions in the Supreme Court for a declaration that the report of Shah Commission is illegal and for quashing the findings in the report of the Justice Shah Commission and for quashing the order dated 11th September, 2012 of the State Government suspending all mining operations in the State of Goa.

The said writ petitions were transferred to the Supreme Court for hearing along with the hearing of Writ Petition (Civil) No.435/2012 filed by Goa Foundation

Three Judge Bench of the H S C, by Judgment dated 21/4/14, held that the deemed mining leases of Goa expired on 22nd November, 1987 and maximum of 20 years renewal period of the deemed mining leases in Goa also expired on 22nd November, 2007 and consequently, mining by the lessees after 22nd November, 2007 was held illegal.

It was also held that it was matter of policy of State to decide, • Manner, mining leases are to be granted in future,• But the constitutionality or legality of the decision

of the State Government can be examined by the Court in exercise of its power of judicial review.

• It was further held that the State Government may grant mining leases of iron ore and other ores in Goa in accordance with its policy decision and in accordance with the MMDR Act and the Rules made thereunder, in consonance with the constitutional provision.

The State Government also framed Goa Mineral Policy, 2013, which was duly gazetted on 28thSeptember, 2013 and was placed on record before the Supreme Court in Writ Petition (C) 435/2012.

The State Government, in terms of this policy, in principle, agreed to renew 28 leases. The leaseholders were also asked to pay stamp duty. In some cases, after payment of the stamp duty, decision under Section 8(3) of the MMDR Act was taken to renew the leases.  

The Leaseholders filed Writ Petitions before the Hon’ble High Court of Bombay at Goa seeking direction to the State Government to decide on the renewal Applications filed by them on June 2014. The High Court passed Orders allowing the said Writ Petitions. on 13th August 2014. Subsequently as per the direction of the Hon’ble High Court the State government passed orders for Second renewal on the pending Applications for renewal as per section 8(3) of the MMDR Act. 

In the meantime the Union Government issued The Mines & Minerals (Development and Regulation) Amendment Ordinance,2015 which was published in the Official Gazette on 12/1/2015.

The effect of this Ordinance was that the second renewal Orders passed before the publication of the said Ordinance would be for a period of 20 years i.e upto 2027, and the second renewal orders passed after the publication of the said Ordinance in the Official Gazette would be for a period of 5 years from the date of the Ordinance i.e upto 2020.

Presently, the Goa State Pollution Control Board have started processing Applications for consent to operate under Air and Water Act and the same is under process.

 To start the Mining Operations the Lease Holders have to get their respective Mining Plan and Mining Scheme approved from the Indian Bureau of Mines.

GSPCB also suspended all consents. Supreme Court also imposed capping of 20 M. t of annual excavation. It means the capacities are pegged at 46% of their original EC.

IBM did not accept Mining Schemes unless the mine is listed in the approved list of mines with capping allowed, and unless submitted with DGPS approved map of the area certified by State govt. Supreme Court also stated no dumping is permitted outside the lease

Challenge: 89 mining leases with specified capping are allowed by DMG. Out of these, after payment of stamp duty and registration 67 mines are renewed upto 2027.

State Government did not revised their commitment in the Assembly that no fresh forest area will be diverted for mining. As a result so many FC applications are pending with the State Forest department. No mines will be allowed to operate with in 1 km of the Wild Life Sanctuaries affecting 41 (12 within fully protected area,6 within partially protected area & 23 within 1 km of the wild life sanctuaries) Leases.

It is not clear as yet, whether the mining leases which were not renewed before the new MMDR 2015 Ordiance will have their period of lease valid upto 2020 as allowed by the said Act.

Economics of Mining overturned

The price of Iron ore 62% fe fell down from 120 $ to 50 $ now. Demand for Ores below 55% fe do not literally exist while threshold value is 45%

Number of New taxes have been imposed

1. Yearly inflation pushes the costs by 25% against $ devaluation by 18%

during the last 3 years2. District Mineral fund 5% OR 1/3 of Royalty, no circular yet.3. Transport tax of Rs.20 is implemented with retrospective effect.4. Stamp duty @ 300Rs/t of EC capacity for 20 years is collected5. Exploration Trust 2 % of Royalty6. Goa Iron Ore fund 10% of sales7. Duty 10 % of sales<58 % Fe.Royalty is jacked upto 15%All stocks lying at mines and jetties, mined after 2007, being illegal wereTaken over by the State Government and put to auction. Only average Extraction cost will be paid to the lessee which is not done as yet

Effect on employment

Many were either terminated or left on their own. Wages of those serving have come down by 50% during the last 3 years. 20-30% wages were differedDue to capping and adverse economical situation of iron oreMining, the future of employees seems to be bleak

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