The Supreme Court has lifted the ban on Category A mines in Karnataka partially easing a 16 month old ban on iron ore mining due to environment concerns..

But the decision may not lift the industry out of its gloom as the 18 'category A mines' in Karnataka's Chitradurga, Bellary and Tumkur districts can resume operations only after getting necessary government approvals, a process likely to take many months.

The court insisted that there should be statutory compliance before resuming mines even by the Category A mines, which are supposed to have caused the least damage to the environment.

The move is expected to add five million tonnes of iron ore supply to steel companies

In a report submitted to the Supreme Court, the forest panel reiterated the need for statutory clearances before mining can resume. The CEC, which assisted the court in forest matters, expects only 4.5 million tonnes of annual capacity to be cleared. A mining lease requires environment and forest clearance, the approval of mining plan by the Indian Bureau of Mines, and clearances from local pollution control boards amongst others.

Mining in three districts of Karnataka was suspended by the Supreme Court last year.

In Karnataka, the Central Empowered Committee or CEC has also recommended cancellation of licences of as many as 49 iron ore miners, falling into category C. it has further suggested that they then be auctioned off. But the court is yet to decide the fate of these mines. It is also yet to clear those miners, who the CEC had recommended be fined for operating mining pits and burden dumps outside sanctioned areas.

Source - Business Line

(www.steelguru.com)