Press reports from India and Bangladesh confirm that Lafarge is expected to pay Rs.600 million by way of compensation involving its limestone mining operations in India in order for it to continue to supply the Chhatak cement plant in Bangladesh. The funds will be used to re-establish forest cover in the north-eastern state of Maghalaya.
Lafarge has also agreed to pay about Rs .30 crore annually for the 2 million tpa it mines from Nongtrai for development of the area and welfare of the local people. It is understood that the Indian government submitted the proposal before the Indian Supreme Court. In February the Supreme Court passed an order to temporarily halt limestone quarrying by Lafarge Umian Mining Private Limited (LUMPL) at Nongtrai in the East Kahasi Hills district of Meghalaya. LUMPL is a wholly owned subsidiary of Lafarge Suma Cement Limited (LSCL).
Lafarge Suma, together with Cementos Molins, had been transporting limestone via a 17 m long cross-border conveyor from Nongtrai to its 1.5 million t plant at Chhatak.
It is reported that the Indian government’s new proposal would see Lafarge deposit Rs.55 crore, with added interest calculated at 6% per annum back dated from 1 April 2007, within four weeks. Lafarge will also pay Rs.80 crore for every t of material mined and the amount would form part of a special fund to be used by the state government of Meghalaya for rehabilitation and aforestation.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/13042010/lafarge_agrees_limestone_quarrying_compensation_in_india/