India: Supreme Court adjourns Karnataka iron ore ban hearing; ban likely to be lifted soon

Thursday, January 20,

 

The Supreme Court of India has adjourned until the second week of February a hearing on a petition seeking to lift a ban on iron ore exports from Karnataka, a court order showed on Thursday.

 

The state had banned iron ore exports from 10 ports and stopped its movement to other ports for exports in July, citing a drive against illegal mining and the need to preserve the raw material for local use.

 

 

The Karnataka High Court had rejected an appeal made by iron ore miners and exporters, including miner MSPL, following which the miner had filed a petition at the Supreme Court last November.

 

 

India is the world’s third-largest iron ore supplier, with about a quarter of its more than 100 million tonnes of exports originating from Karnataka.

 

The iron ore export ban in Karnataka might be lifted soon after the Supreme Court on Thursday gave the state government a two-week deadline to put in place its mechanism to curb illegal mining.

 

The state government had in July 2010 banned the export of iron ore after reports of rampant illegal mining in the mineral-rich Bellary-Hospet region emerged.

 

“Let them export under supervision,” said the bench led by Justice R.V Raveendran.

 

“Stop illegal mining, but you cannot ban exports forever,” the court said to the government’s counsel.

 

The state government said Lokayukta’s report named several companies who are contesting the ban in court.

 

MSPL, the largest private mining company in the region, said it was not named in the Lokayukta’s report and using that as a pretext to ban them was unfair.

 

The iron ore export ban in Karnataka might be lifted soon after the Supreme Court on Thursday gave the state government a two-week deadline to put in place its mechanism to curb illegal mining.

 

The state government had in July 2010 banned the export of iron ore after reports of rampant illegal mining in the mineral-rich Bellary-Hospet region emerged.

 

“Let them export under supervision,” said the bench led by Justice R.V Raveendran.

 

“Stop illegal mining, but you cannot ban exports forever,” the court said to the government’s counsel.

 

The state government said Lokayukta’s report named several companies who are contesting the ban in court.

 

MSPL, the largest private mining company in the region, said it was not named in the Lokayukta’s report and using that as a pretext to ban them was unfair.

 

The government sought more time from the court saying it was ”doing a complete overhaul” of the laws governing the mining and transportation of ore.

 

 


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