HINDALCO INDUSTRIES LTD. - Clarifies on news items

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HINDALCO INDUSTRIES LTD. - Clarifies on news items

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17 Sep 2014
With reference to the news item appearing in leading newspaper dated September 16, 2014, titled "Five Hindalco mines in Jharkhand closed", Hindalco Industries Ltd has Clarified to BSE as under:<br/><br/>"As per the provisions of Mines and Minerals (Development and Regulations) Act, 1957 (MMDR Act) and Mineral Concession Rules, 1960 (MCR), in case of expiry of Mining Lease, the Lessee is required to apply before expiry of 12 months of the Mining Lease. If the approval is not received post timely application, then the Lessee can continue to operate the mine under deemed renewal. <br/><br/>In respect of six Bauxite Mines at Jharkhand, the company had applied Second Renewal of Mining Lease as per stipulated time, and these mines were operating under the provision of deemed renewal. Bauxite from the said mines was supplied at Muri and Renukoot Alumina Refinery. <br/><br/>After the Supreme Court Judgement in the matter Goa Foundation, the Government of India, vide its Gazette Notification amended the provisions of the Mineral Concession (Amendment) Rules , 2014, whereby all companies operating under the first renewal were required to obtain the mining lease within two years from the date of notifications. In view of the said amendment in the MCR, deemed provisions for the second and subsequent renewal is henceforth not available. <br/><br/>The State of Jharkhand therefore in compliance with the said amendment issued the notices to the Company on 9th September, 2014 in respect of the aforesaid mines to stop the operation till the Second renewal is formally granted by the State of Jharkhand. Accordingly, operations at the said mines were stopped. Since the Company had already applied for the Second renewal as per stipulated time and formal second renewals was not received, company has already submitted its further request to the State of Jharkhand on 08.09.2014 to expedite the second renewal under the provisions of Section 8 (3) of the MMDR Act. The Government of India had advised the State Government for considering expeditious renewal in terms of Section 8 (3) of MMDR Act. <br/><br/>The Company expects that these renewals will be granted within a period of six months, and therefore above event will not have any adverse material impact in near future on the operation and performance of the Company, as the Company has sufficient inventory and other operating mines in the area which also supply bauxite to its Alumina Refineries at Muri and Renukoot."
View all announcements for HINDALCO INDUSTRIES LTD.	Source: BSE India

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