"The department of steel and mines had already issued showcause notice to the company - M/S Arjun Lada mines - after finding wrongdoings at its iron ore and manganese mines at Balagunda in Keonjhar district spreading over 326.5 hectare area," Steel and Mines minister Raghunath Mohanty said.
Stating that the department had recommended termination of mining lease to Arjun Lada, he said the company violated Forest Conservation Act, 1980 by constructing a road in the forest areas without any permission from authorities.
This apart, the leasee had also not obtained consent from the pollution control board while working in the area.
"No environmental clearance was also obtained by the leasee," Mohanty said.
Overburden was also dumped beyond the lease boundary, the minister said quoting the departmental inquiry adding that the iron ore and manganese ore raised from the mines were not reflected in the books of account which amounted to suppression of facts violating the lease condition.
Company officials were not immediately available for comment.