KOLKATA (miningweekly.com) – India’s Mines Ministry is likely to ease norms for granting mandatory environmental and forest clearances to prevent disruptions in mining following fresh auctions of numerous iron-ore mining leases expiring on March 31, 2020.

The objective is to ensure seamless transfer of mining leases to successful bidders at the auction and enable them to restart mining operations without having to wait to secure the mandatory approvals.

Officials with knowledge of the process of easing the rules said that the Mines Ministry was in talks with its counterparts in other Ministries to give successful bidders the option of applying and securing mandatory approvals two years after the completion of auctions.

Mining leases of 48 operational iron-ore mines were slated to expire on March 31, 2020 and state governments responsible for holding fresh auctions of these mining leases were reportedly behind schedule in calling for new bidding processes. According to the Federation of India Mineral Industries, any delay in holding of auctions or interruptions in production in the interim period of change of lease holders risked a shortage of about 50-million tons of iron-ore in the domestic market in a full financial year.

Easing of norms for securing mandatory environmental and forest clearances was also critical since the government has overruled a proposal from the Mines Ministry to extend the tenure of the expiring mining leases for the 48 iron-ore mines by two to three years and giving state governments leeway in getting their act together to hold new auctions, government officials said.

Although Steel Secretary Binod Kumar said, in statement issued last week, that the “situation was under control”, the iron-ore mining industry was apprehensive over the possibility of disruptions as it would come at a time when India has been forecast to become a net importer of iron-ore during 2020/21.