Dahej Minerals openly declares extraction of 60,000 tonnes from a prospecting license

Mines Dept confirms extraction and stacking of ore on prospecting license is illegal and punishable, yet has taken no action against its owner; Dahej Minerals owner, B Naik in statement to SIT against the Ranes stated that they extracted ore

TEAM HERALD
PANJIM: This is perhaps the first case where an illegal miner is putting a stamp on his illegality by declaring that he extracted 60,000 tonnes of ore on the basis of a prospecting license.
The CMD of Dahej Minerals, the controversial firm which calls itself a ‘mining company’, without ever having obtained a mining license, has actually declared it’s illegal act, trying to pass it off as a legal one. Taking shelter under a prospecting license, Naik extracted ore, which the Mining Department confirmed was in blatant violation of Mines and Minerals Development Regulations (MMDR) Act and ‘punishable’. When contacted, a senior Mines Department official confirmed that extraction and stacking of iron ore from the mine having prospecting licence is ‘illegal’ and punishable as per the MMDR Act. The official said, “a prospecting license is granted for undertaking operations for purpose of exploring, locating or proving mineral deposit” under the MCR rules of 1960.
As per Mines Department record, M/s Dahej Minerals was granted PL on December 7, 2001 for a period of three years, due to expire on May 7, 2004. It then applied for a mining lease for an area of 87.52 ha at Poriem, which had not been granted.
Section 14 of the MCR 1960 on rules of operation under a prospecting license is clear that extraction can be carried out for purposes other than commercial. While no royalty is needed for a small amount for sampling purpose, higher quantities may be carried out on payment of royalty, “for chemical metallurgical, pre-dressing and other test purposes”. Mining industry sources confirmed that the limit for extraction and carrying of such ore was around, way less than the 60,000 tonnes, Naik extracted.
Naik attempted to export some of this ore, as evident from GPCC president John Fernandes letter to the Union Mines minister on April 15, 2008, recommending export of this illegally extracted ore. On the other hand he did not pay any royalty for this extraction, which he was bound to do under the rules of Prospecting. 
FIR sought against John, others
PANJIM: A complaint has been filed asking that a FIR be registered against Balchandra Naik, chairman and managing director of Dahej Minerals Ltd, GPCC President John Fernandes, Mines Department officials, police officials and Transport Department officials for intentionally hatching a criminal conspiracy, cheating, theft of government property, misuse of official position, misguiding the government, manipulating government records, forgery, fraud and causing loss to the State exchequer.
Dahej Minerals Modus Operandi
  Secured prospecting license in 2001
  Started extraction on the basis of prospecting license, and wins ore far above limits permissible for chemical, metallurgical ore dressing and other purposes
  Attempts to export ore for commercial purposes, which is illegal and punishable
  This is proven by Naik’s own reply to a media question at the PCC office where he said that a buyer of his ore had arranged the cash to be allegedly paid to the Ranes

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