Iron ore mining by 21 companies is likely to commence soon in Karnataka (INDIA), said a senior official of the Federation of Indian Mineral Industries (FIMI) here on Wednesday. R.K. Sharma, Secretary General, FIMI, said that the organisation has submitted reports for 21 of the 44 A Category mines (those that have not committed any irregularities, according to the Central Empowered Committee, which was appointed by the Supreme Court).
This will result in supplies of about 5 million tonnes per annum. Reports on all 44 companies would be submitted in two or three months to the Indian Council of Forestry Research and Education, which has been entrusted by the Supreme Court to prepare Resettlement and Rehabilitation plans in the mined areas.
Mr. Sharma said that one mine belonging to a senior FIMI official had started operations, but had to be shut down because of a public interest litigation petition by Samaj Parivartan Samudaya.
Another senior official from FIMI said that exports from Karnataka are not on the cards as of now. Sponge manufacturers are more worried on domestic supplies of iron ore. They are dependent on iron pellets supplied by MSPL, BMM, XIndia or Janki Corp.
With power shortage in near by states sponge prices have subdued in last few weeks. Though industry experts feel that there are less chances of any correction in short term as availability of iron ore fines and lumps is critical.
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