Karnataka seeks Mines Ministry's help to raise cap on iron ore production

The Karnataka government today requested the Central government to take up its proposal for increasing the cap on production of iron ore from the present 30 million metric tons per annum to 40 million metric tons per annum in the Supreme Court.

Chief minister Siddaramaiah today held discussions with the visiting Union minister of mines and steel, labour and employment Narendra Singh Tomar and apprised him of the iron ore shortage scenario in the state.

"In view of the shortage of iron ore faced by the steel mills in the state, we have filed an application in the Supreme Court for raising the cap on iron ore production to 40 million tonnes. We have requested the Union minister to take up the State government's appeal in the Supreme Court," Siddaramaiah told reporters after his meeting.

In April 2013, the Apex Court had ordered for reopening of category A and B mines in the state with a production cap of 30 million metric tonnes.

The state government also made a detailed presentation to the mines minister on various issues affecting the mining industry in the state.

?There are many mining companies waiting for renewal of their leases. We have requested the Mines minister to expedite the matter with ministry of environment and forests (MoEF) and get clearances for those mines,? he said.

Siddaramaiah said the government of India is interested in increasing the iron ore production in the country to meet the industry needs. ?The state government will extend all cooperation required in this matter,? he said.

Responding to the suggestion of the Union government for taking over the gold mines, once owned by Bharat Gold Mines Limited (BGML) at Kolar Gold Fields, about 100 kms from Bangalore, Siddaramaiah said the state government has posted an official to examine the proposal and suggest on the take over.

At the meeting, the state government also discussed the issue of taking over the land and assets of KIOCL Ltd at Kudremukh in Chikmagalur district, where the state-owned company has stopped mining since 2006 following the Supreme Court order. The government will also expedite the proposal for giving 140 hectares land to SAIL, which was allotted in 2011, he said.

Narendra Singh Tomar said the government of India would speed up the process of issuing clearances to pending applications for mining so that the desired targets of steel production could be achieved. "We had a very fruitful discussion with the chief minister of Karnataka and other officials. We will sort out the issues amicably," he added.