Iron ore mining may be delayed in Karnataka

Mahesh Kulkarni / Bangalore Oct 11, 2012
Business Standard
The resumption of iron ore mining in Karnataka is likely to be delayed as none of the Category A mines is able to secure all statutory approvals stipulated by the Supreme Court.

The apex court had lifted ban on 18 Category A mines to resume mining subject to fulfilment of stringent conditions in its order passed on September 3. The order followed the acceptance of a report of the Central Empowered Committee (CEC), which had recommended relaxation of the prohibition as they had done the least harm to the environment.

Of the 18 Category A mines allowed to operate, only Mineral Enterprises Ltd (MEL) had secured all statutory approvals. It restarted mining at its Chitradurga mine and had to suspend operations on October 6, following the expiration of its lease period. It extracted about 35,000 tonnes in one month.

Apart from MEL, another five leases are waiting for final approval in the state. These include R Praveen Chandra, Mysore Minerals Ltd (MML), Nadeem Minerals, Tiffin Barytes Asbestos and Paints Ltd and VESCO. These leases, together, are allowed to produce 2.56 million tonnes per annum as per the new mining plan approved by the Indian Bureau of Mines (IBM), according to Federation of Indian Mineral Industries (FIMI) officials, who are helping in preparing the Reclamation and Rehabilitation (R&R) plans.

R Praveen Chandra is allowed to produce 350,000 tonnes at its Chitradurga mine; MML can produce about 650,000 tonnes at its mine in Bellary. Nadeem Minerals is given a target of 410,000 tonnes at its Bellary mine, Tiffin Barytes can produce 560,000 tonnes at its Bellary mine and VESCO is allowed to produce 590,000 tonnes at its Bellary mine.

Except MML, the remaining four leases are yet to secure final consent to operate from the director of mines and geology. In case of MML, it is waiting for a final approval to start mining. Since the company has a joint venture with JSW Steel subsidiary, it cannot start operations through the JV route. It has been told to start mining either on its own or through raising contracts and selling the ore through e-auctions.

Tiffin Barytes and VESCO are yet to secure clearances from the Karnataka State Pollution Control Board and Director of Mines and Geology. Nadeem Minerals is waiting for final consent to operate from the DMG.

Meanwhile, about four million tonnes of ore from out of 25 million tonnes of stockpile allowed under e-auction is remaining. The Monitoring Committee appointed by the Supreme Court is likely to put the entire lot for auction over a period of next two months, officials said.