By Bizodisha Bureau, Bhubaneswar, April 9, 2016 : The Odisha High Court on Friday allowed the Jindal Steel and Power Ltd [JSPL]firm to lift iron ore material from its long term supplier Sarda Mines, and directed the state government to issue necessary orders for lifting and transport of iron ore from the mines.

“We have got clearance from the High Court to transport our iron ore fines, which are lying at the dispatch point within Sarda Mines. This will enable us to transport our material to our pellet plant,” a company spokesperson told “Bizodisha.com”.

The JSPL spokesperson, however, made it clear that it would depend on the state government to give all the statutory clearances to enable the company to lift the iron ore.

The order relates to 12.2 mt of iron ore fines, which at this mines is of a high 65 FE (ferrous) grade. This as per current Orissa Mining corporation prices could mean a benefit of Rs 1,750 crore for JSPL over one to two years during which it’s consumed.

JSPL has been sourcing iron ore from Sarda Mines for its pellet plant which lies at the bottom of the hill that is Thakurani deposit where Sarda operates a 5 mt mine.

The Shah Commission for Illegal Mining of iron ore and Manganese and the Central Empowered Committee, had objected on the nature of relationship between the two and said that JSPL benefits from subsidised material from Sarda was costing the state exchequer.

This order only extends to the lifting of the already mined iron lying within the mines, and will not facilitate fresh mining.

JSPL had moved the High Court to be allowed to lift iron ore which it had already paid for, while the state mining department had been of the view that transporting that ore out would also count as mining, and could not be allowed while the mining operations had been suspended.