Chhattisgarh ends iron ore mining deal with Adani Group

29 Sep 2023 CW Team

The NMDC-CMDC, operating as a joint venture entity with NCL, made the decision to terminate the iron ore mining services agreement that had been previously signed with Adani Enterprises (AEL). The termination was based on the fact that AEL did not take the necessary steps outlined in the contract to meet the specified conditions and objectives. The termination specifically pertained to the allocation of the Bailadila iron ore Deposit-13 in south Chhattisgarh?s Kirandul region to AEL. The competent authority of NMDC-CMDC reviewed the terms and conditions of the agreement and assessed AEL's response to the show cause notice, which had been issued on July 11 as grounds for termination. The response from AEL was deemed unsatisfactory and insufficient, as it did not address the concerns raised in the notice. NMDC-CMDC stated that AEL's reply lacked confidence and failed to demonstrate the company's commitment to taking the necessary actions. Regarding AEL's response, the chief executive officer of NCL stated in the termination order that blaming NMDC-CMDC for the failure was not accurate and amounted to misinformation. As a result, the iron ore mining service agreement, dated December 6, 2018, was officially cancelled. The group spokesperson stated that they had fulfilled their obligations diligently since being awarded the contract in 2018, but due to the provisions of the agreement and the current circumstances, they refrained from making any statements at that time. It's worth noting that the allocation of Bailadila Deposit-13, which had a mining capacity of 10 metric tons per annum, had already faced opposition. In June 2019, tribal villagers protested, claiming that the allocated deposit held significant cultural and religious importance as the centre of their faith, with the presence of the deity Nandraj Dev in the region. Consequently, the Chhattisgarh government halted the project work in response to these concerns.

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