Photo by: Bloomberg
KOLKATA (miningweekly.com) - Close on the heels of shutting down iron-ore mining last week, the Indian government has directed Uranium Corporation of India Limited (UCIL) to stop mining operations at its Jaduguda uranium mines in the eastern province of Jharkhand.
The order came down on Tuesday, as the mines were operating without a second lease being renewed, which the Indian Supreme Court had earlier termed illegal. This same ruling had seen 12 of the 17 operating iron-ore mines in the same province shut down last week.
The government-owned UCIL, the sole uranium miner and processor in the country, operated seven mines across 1 313 acres, along with two processing units for mined uranium and its subsequent conversion into ‘yellow cake’ of about 74% uranium content, for supply to nuclear power plants across the country.
The seven mines included Jadugora, Bhatin, Turamdih, Bagjata, Narwapahar, Banduhurang and Mahuldi, all in Jharkhand.
UCIL’s production figures were not available from either the company or the Department of Atomic Energy, under which the company operates, since it was claimed the information was strategic and classified.
The first 20-year mining lease for the Jaduguda mines had expired in October 1987 and the second lease renewal has been pending since September 2006, according to officials in the Jharkhand government.
In a statement, UCIL chairperson D Acharya said that the closure of the Jaduguda mines would have a huge impact on the corporation, as Jaduguda had the best grade, and other properties, among all UCIL’s mines in the country.
“The corporation has set up an internal team with personnel drawn from its lease and environment departments and they would be going through various formalities and follow-up documents already submitted to the Jharkhand government’s mining and geological departments,” he said.
UCIL last year had reported ‘major discoveries’ of uranium deposits near its existing mines in Jharkhand but the latest directive to close down its existing mines in the region would make development of new deposits in the region uncertain, officials said.
Though the estimates of the new deposits had not been disclosed, officials in UCIL said that, as the new reserves were located in close proximity to its existing Jadugora and Marwpahar mines, the corporation would be able to extend the life of the latter mines by five to six years if new developmental projects could be implemented.