After Bellary, SC bans mining in two more Karnataka districts

After Bellary, the Supreme Court on Friday banned all mining activities in two more districts in Tumkur and Chitradurga in Karnataka.

Industry groups say that the ban on iron ore mining in Bellary has hit the entire value chain in a big way.

The fresh court orders will make it worse for the industry.

The Supreme Court has summarised the whole argument in one line: the needs of the environment are more important than that of industry.

"Reckless. Irresponsible and thoughtless, leading to adverse impact on ecology." That is how the Supreme Court-appointed Central Empowered Committee (CEC) has described the extraction of iron ore from Karnataka mines.

On Friday, the apex court quashed the representation of mining body - FIMI - and said, “We can't go by the needs of the industry. We have to respect environment."

With the industry facing the heat, FIMI also seems to be in agreement with apex court.

R K Sharma, secretary-general of FIMI said that CEC was appointed by SC . They made a visit and they found a lot of environmental degradation and the SC wants rehabilitation package to allow these mines to operate.”

In its earlier order in the case of Bellary, Supreme Court did allow state miner NMDC to mine 1 million tonne of iron ore every month.

Similarly, in Tumkur and Chitradurga though Supreme Court has put an absolute ban in mining across the board, still it granted some relief for steel mills.

The apex court has allowed usage of 25 million tonne of iron ore already extracted in Tumkur and Chitradurga. The mining and steel companies along with the central empowered committee will work out details and submit the plan report within a week. And on September 2, the Supreme Court will pass an order on how the 25 million tonnes of iron ore will be used.

Though, the court has given an interim relief to the mining and end user industry, but for companies like Sesa Goa, which get nearly 20 per cent of its revenue from these two districts and JSW after procuring about 40 per cent of its iron ore requirement, it remains a matter of concern in long term.