15 Bellary mines may be allowed to re-start operations by end-August

OUR BUREAU, THE HINDU BUSINESS LINE
NEW DELHI, JULY 3:
Iron ore mining may resume by end-August in 14-15 leases in Karnataka’s Bellary region. The mines have a capacity of 4-5 million tonnes per annum.

Resumption of operations is being allowed on findings that these leases have the least violations or illegalities. The restart of mines is expected to help ease supplies to steel-makers such as JSW Steel Ltd that have been reeling under iron ore shortage.

Last July, the Supreme Court had banned mining activities in Karnataka on environmental grounds. In compliance with the court directive, the reclamation and rehabilitation (R&R) plans for 14-15 leases will be submitted shortly to the court-appointed Central Empowered Committee.

“Mining may resume in these Category A mines, once their R&R plans are approved by the CEC,” Mr R.K. Bansal, CEO of Sustainable Mining Initiative (SMI), an outfit of the Federation of Indian Mineral Industries (FIMI), told reporters. Category A mines are those with the least or marginal violations.

IMPORTS

SMI is helping the Indian Council of Forestry Research and Education (ICFRE) prepare mine-wise R&R plans in Karnataka, complying with apex court approved guidelines.

Mr R. K. Sharma, Secretary-General, FIMI, expects some 50 mines with an annual capacity of about 15 mtpa to restart operations in Karnataka’s Bellary, Chitradurga and Tumkur districts over the next six months.

The production of iron ore in the country has taken a hit in recent years because of the mining ban in Karnataka, curbs on movement in Orissa and delay in clearances and renewals of leases. To tide over the shortage, steel-makers have resumed imports, which were around 3 lakh tonnes between March and May, said Mr H. C. Daga, Senior Vice-President, FIMI.

FALL IN OUTPUT

The industry body expects the iron ore output to drop further to 140 million tonnes this fiscal from 169 million tonnes last year. Exports have also taken a beating as the Indian iron ore, loaded with higher export levy and freight rates, has turned uncompetitive in global markets. Exports for 2011-12 were likely to be under 60 million tonnes from around 97 million tonnes the previous year.

The resumption of mining in Karnataka is expected to give a fresh lease of life to a sector where growth has shrunk to -3.1 per cent in April from 1.6 in the previous corresponding period. The poor performance by mining is one of the main reasons for poor industrial production for the month.