PMDC challenges mining lease to SLCMC by caretaker government

25 Nov, 2018

Sindh High Court (SHC) has issued notices to provincial government and Pakistan Minerals Development Corporation (PMDC) in a petition related to refusal of renewing the mining lease by the former to the latter. A division bench of SHC headed by Justice Hassan Azhar Rizvi took up PMDC's petition against provincial government for its refusal to renew the mining lease in Lakhra, District Dadu. It also challenged the grant of lease to another company.
Barrister Zamir Ghumro and Barrister Faizan Memon on filed petition on behalf of PMDC against Sindh Government, Director General (Licensing Authority) Directorate of Coal Mines Development Sindh and Sindh Lakhra Coal Mining Company (Pvt) Ltd. (SLCMC)
The petitioner submitted that it was granted two prospecting licenses in 1984 for excavation and exploration of coal over an area of 1278.31 acres in Lakhra, District Dadu. Pursuant to prospecting license, petitioner carried out a widespread and detailed exploration and evaluation of the area through foreign institutions.
It stated that the Directorate of Coal Mines Development Sindh converted prospecting license into mining lease for thirty years. Now, the competent department refused to renew the lease after its expiry without assigning any reason.
The petitioner submitted that lease was granted to Sindh Lakhra Coal Mining Company (Pvt) Ltd during the period of last caretaker government, which is in contravention of Section 230 of Election Act as well as in violation of judgment of Supreme Court of Pakistan as grant of lease don't come within the ambit of day to day affairs, which the caretaker setup was mandated to carryout.
The petition stated that under Sindh Mining and Concession Rules 2002, the provincial government is bound to issue notice of intended refusal and also bound to give the opportunity of hearing to the petitioner.
It said that federal government is signatory of various protocols treaties and conventions in relation to environmental effects of coal mining and conducts through the petitioner various studies in order to make the coal mining according to international protocols. "Refusal to renew the mining lease will affect these treaties in Sindh which shall adversely affect the environment."
The petitioner prayed the court to declare that refusal of renewal of mining lease is illegal, unlawful, unconstitutional and in violation of principles of natural justice. It pleaded the court to direct the provincial government and Directorate of Coal Mining Development to renew the mining lease by setting aside the notification issued in July this year for grant of lease to Sindh Lakhra Coal Mining Company (Pvt) Ltd.

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