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Supreme Court issues notice to Centre, Orissa government and POSCO

The notices were issued over cross petitions challenging the Orissa high court order on the issue of iron ore mines.

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The Supreme Court today issued notices to the Centre, Orissa government, South Korean steel major POSCO and Geomin Minerals & Marketing Limited, a mine and mineral company, over cross petitions challenging the Orissa high court order on the issue of iron ore mines.

The state government of Orissa and Geomin Minerals & Marketing Limited have challenged the orders of the Orissa high court which has quashed the notification issuing iron ore mining in over 2,500 hectares in the Khandadhar hills in Sundergarh district in Orissa to POSCO.

However, a bench comprising Justice RV Raveendran and Justice AK Patnaik directed to maintain status-quo till the next hearing.

"Status-quo would be maintained as on today," the bench said while issuing notices.

Earlier, on July 14 this year, the high court, on the petition of Geomin Minerals, had set aside state government's decision to allot iron ore licence in over 2,500 hectares in the Khandadhar hills in Sundergarh district to POSCO.

Geomin Minerals contended before the High Court that it had applied for the prospective licence for Khandadhar iron ore mines much before POSCO.

However, the high court had set aside the notification issued by the state goverment in 1962 reserving all mineral bearing land for exploitation within Orissa and take a fresh decision on it.

The high court had further said that all mineral bearing land reserved by the state government prior to 1987, without the approval of the central government would not be deemed to have never been reserved.

The Orissa government, which had moved the apex court, on October 29 on this issue, contended that the high court could not have quashed the state governments grant of licence to Posco as it was under section 11 (5) of Mines And Minerals (Development And Regulation) Act, 1957.

It further contended that Section 11 (5) gives power to the state government to "grant a reconnaissance permit, prospecting license or mining lease, as the case may be, to an applicant whose application was received later in preference to an application whose application was received earlier".

The state government in January 2009 had recommended POSCO to the central government for granting prospective licence for Khandadhar iron ore reserves.

This was challenged by Geomin and later 16 other firms who have also applied for mining leases also intervened.

Geomin, in its petition, submitted before the Apex Court that the high court" does not take into account the pleading made by it" and "has traversed beyond the pleadings and prayer made by it".

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