The MCL has environment clearance for extracting only 15 million tons from open cast mine at Lakhanpur in the district of Jharsuguda, which has the coal production capacity of 18.75 million tons per year.
Odisha Sun Times cited senior company official as saying that the company did have permission to extract additional coal since the limit has already been reached, and has no other option but to close the operation at the mine.
"But the clearance for additional 3.75 million tonnes has not yet been granted, the official added.
In March 2012, MCL had submitted an application for environment clearance to the Ministry of Environment and Forest (MoEF) to increase coal production from 15 million tons to 18.75 million tons a year from the mine.
The mine has more than four million tons coal lying but cannot be excavated due to pending environment clearance.
