Environmental laws: Illegalities involved in the mining lease of Sarda Mines Private Limited (SMPL) – In the instant case, SMPL was granted permission on 13.7.1999 to extract 1.4 LTPA of iron ore – However, environmental clearance was granted to SMPL on 22.9.2004, which referred to the proposal for expansion of production of iron ore (lump) from 1.5 LTPA to 4.0 MTPA – Validity of environmental clearance granted to SMPL and the production of iron ore without/in excess of the environmental clearance challenged – Held: Permission granted on 13.7.1999 was for production of iron ore and not for iron ore (lump) – Even MMDR Act referred to mineral iron ore and not to iron ore (lump) – Therefore,the environmental clearance granted on 22.9.2004 must be understood in the context of permission granted on 13.7.1999 and MMDR Act – Environmental clearance does not have any retrospective effect – It is operational from the date it is granted – Therefore, the mining activity carried out by SMPL from 13/14.8.2001 till the date of environmental clearance that is 22.9.2004 is legal to extent of 1.4 LTPA and SMPL cannot be penalized for this mining activity during this period – Since environmental clearance does not have retrospective effect, the first year of production would be 2004-2005 (pro rata) based on the environmental clearance – The records showed that there was excess mining of iron ore from the first year of production itself – This excess mining was clearly illegal and must be penalized – Central Empowered Committee (CEC) is directed to quantify the penalty to be imposed on SMPL from 22.9.2004 and based on the terms of the environmental clearance – Mines and Minerals (Development and Regulation) Act, 1957.Iron ore: Environmental clearance – Extraction of mineral iron ore is extraction of iron ore Run of Mine (ROM) – Lumps of iron ore are by-product of ROM – In the instant case, permission was granted to SMPL on 13.7.1999 to extract mineral iron ore –This had no reference at all to the sub-category or by-product called iron ore (lump) but has to be understood as permission to extract mineral iron ore ROM – It was this permission that was sought to be proposed for expansion of production – The environmental clearance on 22.9.2004 was only with reference to iron ore ROM – This must be read in the context of the MMDR Act which refers to mineral iron ore and does not refer to iron ore (lump) – There is no merit in objections raised by SMPL to the report of the CEC with regard to the validity of the environmental clearance or the excessor illegal mining of iron ore by SMPL.
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