Tuesday, April 8, 2008

Bellary Steel joins ore war against OMC

By S A Ishaqui
Hyderabad, April 7: The proxy war between the two iron ore giants, Obulapuram Mining Company Limited (OMC) and Bellary Iron Ore Private Limited (BIOC), over the boundary lines has escalated with the Bellary Steel and Alloys joining the legal fight against the OMC. The OMC and the BIOC have been exploring ore in H. Siddapuram and D. Hirehal mandals in Anantapur district. A dispute arose over the boundary in January this year, which the BIOC took to the AP High Court.
The court ordered status quo at the boundary between the two companies in the last week of January. After some legal wrangling, the court ordered an inquiry by the district judge, K Geddanna.
The district judge opined that the boundary between the two mining zones could not be ascertained without surveying the mines which he said would be possible only with the help of the Survey of India. He also expressed his displeasure over the district police on the matter of security. In a recent development, Bellary Steels and Alloys Limited filed a petition in the High Court seeking cancellation of lease granted to the OMC in 2007.
The BSAL told the court that their application to grant a mining lease was pending since 1997. It alleged that the authorities had not considered their application in spite of court orders and the same area had been awarded to the OMC.
The BSAL urged the court to suspend mining operations in AntargangammaKonda andMallammana Konda of H Siddapuram village in D Hirehal mandal in Anantapurdistrict. Thepetitioner further urged the court to demarcate the boundaries of themining area in the mandal.

No comments: