After protests by tribals Chhattisgarh stops mining in Bailadila hills

KOLKATA: All activity related to mining has been stalled in Chhattisgarh’s iron ore rich Bailadila hills in Dantewada district following a five-day protest by local tribal groups. The decision is likely to impact NMDC Limited which supplies ore to a number of steel plants and is planning to develop a large mine (Deposit 13) in joint venture with Chhattisgarh Mineral Development Corporation.
In a situation similar to the one faced by Vedanta at Niyamgiri hills in Odisha, the villagers are protesting the move to take up mining in Bailadila which is sacred since it contains their local deity. The state owned miner, NMDC, had appointed Adani Enterprises as Mining Developer and Operator (MDO) for the mine in December 2018. The protests come at a time when Adani is due to start work at the site. Since the Bailadila hill range is a part of Schedule V of the Constitution, it is governed by the provisions of Panchayats (Extension to Scheduled Areas) Act 1996, which makes the consent of Gram Sabha mandatory for any development activity.

The state CM, Bhupesh Baghel ordered an investigation into complaints received against the Gram Sabha which was arranged in the year 2014 for giving approval to the project. The CM ordered a halt to deforestation in the area and said the complaint against illegal felling of trees will be looked into. The order was issued after Baghel’s meeting with a delegation of tribal leaders and Bastar’s Congress MP Deepak Baij.

An NMDC official on Tuesday said iron ore mining has been affected in three of its mines in Kirandul area due to ongoing agitation since last Friday. He however declined to make any further comment on the situation.

The agitation which began on June 7 last prompted NMDC Ltd to issue a statement last Friday which said it developing the 10 million tonne per annum (mtpa) Bailadila Iron Ore Deposit-13 at Kirandul, in Dantewada district through a joint venture partnership with Chhattisgarh Mineral Development Corporation. In the joint venture company called NMDC-CMDC Ltd (or NCL), NMDC has 51% shareholding, with CMDC having a 49% share.

"NCL is the owner of Deposit No.13 and the mining lease of Deposit 13 is registered with this joint venture company. The land required for this project will be acquired in the name of the JV company only and NCL shall only have the selling rights of iron ore produced from Deposit-13," an NMDC statement said.

While contract for excavation and mine development has been awarded to Adani Enterprises Limited to work as MDO, the statement added that the mining lease will not be transferred either to Adani or to others at any point of time.