DHNS reported that the India’s Supreme Court’s directive to suspend all mining activities of iron ore in the districts of Chitradurga and Tumkur in the Karnataka has multiple implications on the economy and the steel business at large.

Mentioning that the State’s steel industry is in closure mode, Bangalore Chamber of Industry and Commerce in a statement said that “All steel companies are heavily dependent on Bellary, Chitradurga and Tumkur districts for iron ore. The industry has already cut production due to shortage of iron ore, after the Supreme Court allowed only NMDC to mine one million tonne of iron ore per month in Bellary district.”

According to BCIC, iron ore demand of steel and allied industry in Karnataka alone is 2.9 million tonnes per month, while NMDC has been allowed to mine only 1 million tonne per month.

BCIC further stated that “There will be a loss in revenue to the exchequer and the overall economic development will be severely affected, with more than 80,000 people working in the industry being rendered jobless adding the livelihood of over 100,000 people, associated directly or indirectly, will be threatened. In a bid to protect the industry and livelihood of people, it suggested allowing supply of ore from the stock of 25.88 million tonne lying in the mines and stockyards.”

(Sourced from DHNS)