Thursday, 21st July,
A large number of sponge iron manufacturers and small steel mills are in the state of shutting down. Many of these have already shut due shortage of Iron ore in South India. Based on the recommendation of the Central Empowered Committee (CEC), out of 99 mining leases, the apex court has ordered the shutting of 40 mines in the Bellary, Hospet and Sandur (BHS) region.
For 2011-12, Steel units collectively require 45 MT of ore, while the present availability is limited to about 24 MT, which is 48 per cent of the state’s total output. JSW Steel alone requires 27 MT for its plants in Karnataka, Tamil Nadu and Maharashtra. Karnataka contributes 30 per cent of the national steel output, at 18.4 MT annually.
Some prominent personality commented on the matter:
According to Mr. Basant Poddar, vice-president of Federation of Indian Mineral Industries (FIMI), “The Supreme Court appointed a four-member joint survey committee, which is yet to complete the survey of another 64 mines in the BHS region. In Tumkur district, only one out of 15 mines are presently operational, while only two-three mines are working in Chitradurga district. These two districts largely produce low-grade iron ore. BHS region contributes about 39 mt of Karnataka’s iron ore annually. But, owing to closure of several mines, the availability of ore has dropped to less than 24 mt presently. However, once the Supreme Court-appointed committee completes its survey, there could be many more closures, leading to further drop in the availability of ore”.
Mr. Vinod Nowal, chief executive officer and director, JSW Steel, and president of the Karnataka Iron and Steel Manufacturers’ Association (KISMA) says, “22 of 60 sponge iron plants in Karnataka are closed for want of raw material. Some of the steel mills like Sathavahana Ispat, Kirloskar Ferrous, Kalyani Steels, Unimetal Ispat, Sandur Manganese and Iron Ore and Sandur Laminates have suspended their operations partially. While we strongly condemn any illegal mining, the government needs to ensure supply of required iron ore to steel plants without disruption”.
Kisma has written a letter to Chief Minister B S Yeddyurappa to address the genuine concerns of the sector and take remedial measures to ensure supply of adequate quantity of iron ore to the sector.
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