Monday, December 06,
The Karnataka government, which recently took steps to restrict the export of iron ore, has received over 1,000 applications including from top steelmakers such as ArcelorMittal India, the Tata Group and the JSW Group, to mine for iron ore in the one of the state’s largest resource blocks.
This is the first time in 10 years that Karnataka has offered a large area of land-spread over 6,400 acres in the mineral rich region of Bellary—for mining, state mining secretary BS Ramprasad told, adding that companies will also have to seek approvals from the Central government , as mining is a concurrent subject.
Karnataka’s department of mines has selected two blocks in Ramanadurga and Kumaraswamy Hill range regions, estimated to contain more than 200 million tonnes of iron ore.
“We have applied for a mining lease in this aforementioned block,” a spokesperson for ArcelorMittal India confirmed. The world’s largest steelmaker, has already announced plans to build a 6 million tonne steel plant in Bellary district, which will be spread over 4,000 acres. It has already initiated the process of acquiring land.
Other applicants for the mining lease include Posco, Tata Metalliks, Essar Steel and also the controversial Reddy brothers who own Brahmani Steel.
The Karnataka government is currently scrutinizing the applications and will forward them to the Centre next month for its approval. Mr Ramprasad said clearance from the Union ministry of environment and forests should take about 8-10 months.
It is unlikely that the state government will meet the 100% of the iron ore requirement of these companies. “We will be able to give around 30% of companies’ requirement (of iron ore) and for the rest they will have to source it from the market,” said Mr Ramaprasad.
Source: The Economic Times
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