Indian court suspends all iron ore mining in Bellary region
The Indian Supreme Court on Friday ordered immediate suspension of all iron ore mining in the Bellary region of the southern state of Karnataka. This follows from reports submitted by the court’s Central Empowered Committee (CEC) highlighting environmental damage brought about by rampant illegal mining in the region, local sources tell Steel Business Briefing.
Bellary’s ore production used to average 25-30m tonnes/year of iron ore or 60-70% of the state’s average ore output of 45m t/y, SBB is told. However, ongoing investigations by the CEC into illegal mining operations in the state, following Karnataka’s ban on ore exports, had already resulted in several mines in the region being shut down since early May.
Nevertheless, the court’s order is lending more fear and uncertainty to the ongoing crisis in the state pertaining to illegal mining. “These orders could very well be extended to the entire state,” a Bangalore-based source fears. “We don’t know what will happen next.”
SBB learns the Supreme Court has enlisted the assistance of the ministry of environment and forests to table the ore requirements of the domestic steel industry and identify how much ore would need to be imported in view of the shortfall in supplies from Bellary.
Friday’s order would also impact the operations of state-owned miner, NMDC, which operates a 4.5m t/y iron ore mine at Donimalai in Bellary. Sources also suggest JSW Steel, which now has 10m t/y of installed crude steelmaking capacity at its Vijayanagar works in the state and little captive ore supply, would be adversely impacted by the directive, which remains in effect until further notice.
The Indian Supreme Court on Friday ordered immediate suspension of all iron ore mining in the Bellary region of the southern state of Karnataka. This follows from reports submitted by the court’s Central Empowered Committee (CEC) highlighting environmental damage brought about by rampant illegal mining in the region, local sources tell Steel Business Briefing.
Bellary’s ore production used to average 25-30m tonnes/year of iron ore or 60-70% of the state’s average ore output of 45m t/y, SBB is told. However, ongoing investigations by the CEC into illegal mining operations in the state, following Karnataka’s ban on ore exports, had already resulted in several mines in the region being shut down since early May.
Nevertheless, the court’s order is lending more fear and uncertainty to the ongoing crisis in the state pertaining to illegal mining. “These orders could very well be extended to the entire state,” a Bangalore-based source fears. “We don’t know what will happen next.”
SBB learns the Supreme Court has enlisted the assistance of the ministry of environment and forests to table the ore requirements of the domestic steel industry and identify how much ore would need to be imported in view of the shortfall in supplies from Bellary.
Friday’s order would also impact the operations of state-owned miner, NMDC, which operates a 4.5m t/y iron ore mine at Donimalai in Bellary. Sources also suggest JSW Steel, which now has 10m t/y of installed crude steelmaking capacity at its Vijayanagar works in the state and little captive ore supply, would be adversely impacted by the directive, which remains in effect until further notice.
From SBB
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