The Supreme Court on Wednesday said that mining companies in Odisha operating without environmental clearance will have to pay a 100 per cent penalty to the state on the price of illegally extracted iron and manganese ores with effect from 2000-01. A Bench of justices MB lokur and Deepak Gupta also directed setting up of an expert panel under the guidance of a retired apex court judge to identify the lapses over the years which enabled rampant illegal mining in the state and recommend measures to prevent its reccurence. It expressed concern over the environmental degradation due to such activities and asked the Centre to take a fresh look at the National Mineral Policy, 2008 saying it is "almost a decade old", particularly with regard to conservation and mineral development. Observing that the "rule of law" needed to be established to prevent illegal mining activities in other parts of India, the court said the exercise relating to the mineral policy should be completed by December 31. "We make it clear that minerals extracted either without environmental clearance or without forest clearance or without both will attract the provisions of section 21(5) of the Mines and Minerals (Development and Regulation) Act, 1957 and that 100 per cent of the price of the illegally or unlawfully mined mineral must be compensated by the mining lease holder," it said. The amount be deposited by the companies on or before December 31, it said.