Giving
more challenge to Arjun Munda Government, a representative organization of
companies with mining interests has criticized Jharkhand's decision to ask the
Centre to ban export of iron ore by captive as well as non-captive lease
holders.
Holding
the 350 member companies, The Federation of Indian Mineral Industries (FIMI),
said today the move was a face-saving measure of the state government that had
recently allowed domestic sale of iron-ore fines by a couple of captive lease
holders amid Opposition allegations of a “sellout”
FIMI's
comment came on a day the Centre approved a landmark draft mines bill that
provides for miners to share 26 per cent of their net profits for the people
affected by coal projects. This bill seeks to replace the 1957 act.
The
state cabinet decided to approach the Centre with a request to bring required
changes in the Mines and Mineral (Development and Regulation) Act 1957 and ban
export of minerals, while sticking to its decision of allowing captive mines
holders to sell iron ore fines. Bringing in a change in the act, FIMI accepted,
was a decision of the Centre.
“The country imports coking coal, crude oil,
etc, from other countries and exports the low quality iron ore fines mainly to
China. Once we are able to utilize the full quantity of iron ore mined, we do
not need to export the same. Let the market forces decide things. But if we put
a ban on export at this juncture, the loss will be for all,” he added on
comment.
The
decision, he added, would also add to loss of royalty for the state government
and lead to unemployment in mining areas.
State
mines secretary A. K. Sarkar said the state government was in the process of
writing a letter to the Center. “We are simply going to write that export of
iron ore, whether mined from captive or non-captive mines, should be banned.
But for that a change in MMDR Act is needed and the Centre has a final say in
the matter,” he said.
While
lease holders of captive mines are supposed to utilize the raw material in
their respective steel plants, there is no such binding on non-captive lease
holders who are free to sell the ore outside the state or export it.
The
Munda government has had a bad time on the issue. Last month the state allowed
domestic sale of iron ore fines (low grade ore) by a couple of captive mines
lease holders including Usha Martin and SAIL, but had to put the decision under
suspension after Opposition protests.
While
SAIL has deposits of 196.50 lakh tonne of iron ore fines, Usha Martin has
another 18 lakh tonne fines in stock. But over the last decade or so, both the
companies have failed to set up plants to utilise the low grade iron ore as raw
material to produce steel. Both the companies had approached the state
government which finally took the decision on grounds of environmental
degradation of Saranda forests where the mines are located.
But
the Opposition raised hue and cry during the monsoon session of the Assembly,
alleging that the government had been “influenced” by the corporate houses.
Later, the decision was kept under suspension, only to be revived on September
28.
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