17 AUG, 2012, MEERA MOHANTY, ET BUREAU
NEW DELHI: Mining of iron ore is slated to restart in Karnataka, but miners like Allum Prashant are not enthused by the future prospect. Even large mining firms such as Sesa Goa, which were in the midst of an expansion, find production capacities capped below their existing levels.
The capacities have been capped to a far more modest scale than before as the industry is forced to meet environmental norms and streamline production to ensure the longevity of iron ore mines.
Permissible volumes, worked out by mining companies as they recommence operations, will be adjusted to the existing infrastructure, a longer lifeline for ore reserves and mining waste provisions, which have, in many cases, fallen to a fourth of their earlier granted limits.
The Supreme Court, while investigating allegations that illegal mining worth thousands of crores had led to a serious degradation of forest and environment in Karnataka's three iron ore districts, had ordered a temporary ban in the state last August.
It has since agreed to allow 'mining' in some of these mines, where there have been no violations of condition that reclamation and rehabilitation (R&R) of the lost forest area are first planned and budgeted for. With the interim ore supply from stockpiles falling to 3mt, miners, end-users and the state are desperate for mining to restart.
The new guidelines applied for sustainable, recognising iron ore reserves of 2005 as inter-generational equity to be planned for 20 years instead of the earlier period of five years, will force miners to produce a lot less than they did. (Also, many of the 16 mines ready with their R&R may not be able resume operations soon for one reason or the other.)
A case in point being Sesa Goa's 6-mtpa mine in Chitradurga district. It had plans to expand to 10 mtpa, but has been reduced to a maximum of 2.29 mt. Most other leases put through (R&R) checklists have qualified for an annual capacity of less than half-a-million tonne.
Allum Prashant finds his 10-year-old mine capped at an annual capacity of 32,000 tonne, which works out to nearly a dozen trucks a day.
NEW DELHI: Mining of iron ore is slated to restart in Karnataka, but miners like Allum Prashant are not enthused by the future prospect. Even large mining firms such as Sesa Goa, which were in the midst of an expansion, find production capacities capped below their existing levels.
The capacities have been capped to a far more modest scale than before as the industry is forced to meet environmental norms and streamline production to ensure the longevity of iron ore mines.
Permissible volumes, worked out by mining companies as they recommence operations, will be adjusted to the existing infrastructure, a longer lifeline for ore reserves and mining waste provisions, which have, in many cases, fallen to a fourth of their earlier granted limits.
The Supreme Court, while investigating allegations that illegal mining worth thousands of crores had led to a serious degradation of forest and environment in Karnataka's three iron ore districts, had ordered a temporary ban in the state last August.
It has since agreed to allow 'mining' in some of these mines, where there have been no violations of condition that reclamation and rehabilitation (R&R) of the lost forest area are first planned and budgeted for. With the interim ore supply from stockpiles falling to 3mt, miners, end-users and the state are desperate for mining to restart.
The new guidelines applied for sustainable, recognising iron ore reserves of 2005 as inter-generational equity to be planned for 20 years instead of the earlier period of five years, will force miners to produce a lot less than they did. (Also, many of the 16 mines ready with their R&R may not be able resume operations soon for one reason or the other.)
A case in point being Sesa Goa's 6-mtpa mine in Chitradurga district. It had plans to expand to 10 mtpa, but has been reduced to a maximum of 2.29 mt. Most other leases put through (R&R) checklists have qualified for an annual capacity of less than half-a-million tonne.
Allum Prashant finds his 10-year-old mine capped at an annual capacity of 32,000 tonne, which works out to nearly a dozen trucks a day.
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