Hindalco’s six bauxite mine will be issued renewed leases by six months

As Hindalco Industries Ltd waits for its mining lease to be renewed in Jharkhand, they say that they are not too concerned about the wait and neither should it interfere with the performance of the company.

In a note to National Stock Exchange on Wednesday, Hindalco explains that their renewals should take six months more but that should not affect the company adversely as they have sufficient stock at hand and since they own more mines around the area, they should have no problem supplying bauxite to alumina refineries like Muri and Renukoot.

Mint reports on 15 September, that a state government official was quoted as saying that five Hindalco bauxite mines were closed at the Lohardaga district by the Jharkhand government. The closure on 10 September was apparently due to their deemed or temporary leases.

In a Hindalco clarification, they said that, “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.”

According to Hindalco, they had applied for a second renewal of mining lease as per the stipulated time and while they wait for the new leases to arrive, they were operating under the provision of deemed renewal.