Karnataka will seek permission from the Supreme Court to reallow the export of iron ore and raise an annual cap imposed on the state from 30 mn t pa to 70 mn t pa. The state’s minister for Mines and Geology Minister, Murugesh Nirani said this to the media after a meeting with Union Minister Pralhad Joshi.
As SteelMint’s reader would recall iron ore exports have been banned and production has been capped at 35 mn t (with an additional cap of 10 mn t pa for ‘C’ category mines) ever since the Apex Court’s 2011 orders in the matter of Samaj Parivartan. Looking into allegations of wild scale illegal mining and export the SC had revoked concessions, and fined miners. It also entrusted mining in the state to a court-appointed committee. Much of what Karnataka produces is bought off by plants within and in neighbouring states. The ore, almost a decade later, cannot be exported.
The condition did provide steel major JSW with easier ore, however, its dependence on Karnataka ore is considerably reduced after the company acquired mines in Odisha last year. The mining lobby, petitioning for a lifting of the ban last year had claimed, under realisation by these artificial constraints had cost the state over Rs 29,000 crore in revenues.
NMDC produced 7.55 mn t from its mines in Donimalai and Kumaraswamy in FY’21. After a disruption in its lease term, the Steel Ministry miner has recently resumed operations at the state. Under amended laws, it will have to pay the state government more in mineral taxes.
Nirani’s government hopes to change this, and has the Centre’s support, he told Deccan Herald. The government targets iron ore production of 70 million tonnes by 2030. It is also planning “to sanctioning 100 new mining leases for which there are already 3,000 applications,” says the report. It does not specify what these deposits are.
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