6 mines resume operations in Karnataka

Together, these mines are allowed to produce 3.3 mt of ore a year, about 10% of the iron ore requirement of steel mills in the state

About 10 months after the Supreme Court had approved the resumption of mining operations by 18 category-A mines, six mines have resumed operations in Karnataka. Together, these mines are allowed to produce 3.3 million tonnes (mt) of ore a year, about 10 per cent of the iron ore requirement of steel mills in the state.

Till December 2012, the six mines produced 710,000 mt, which is yet to be e-auctioned. An additional four mines, with a capacity of 1.8 mt, are in various stages of securing approvals. It is expected these would commence production by March-end, said sources in the steel industry.

On April 20, 2012, the court had approved the reopening of 18 category-A mines. The remaining category A and B mines would be allowed to resume operations after these fulfilled the court’s conditions.

The Indian Council of Forestry Research and Education (ICFRE) had filed reclamation and rehabilitation (R&R) plans for 41 category-A and B mines. According to the plans, permissible production for all 41 mining leases is 14.48 mt a year. A central empowered committee (CEC) has approved the R&R plans for 17 mines. Of these, 12 have accepted all the court’s conditions.

“Despite continued representations from the steel industry from early 2012, urging immediate steps for early reopening of the closed mines, the situation has remained totally unsatisfactory. CEC had expected things would improve from August 2012. Unfortunately, this didn’t happen. This has resulted in complete closure of nine mini blast furnaces of 20 such plants. The rest are operating at a reduced capacity of less than 60 per cent,” said R K Goyal, managing director, Kalyani Steels.

He added the situation would deteriorate in the next few months, as it was uncertain how many mines would resume operations.

The steel industry in Karnataka needs about 30 mt of iron ore a year and produces about 16 mt of steel. The entire industry, including sponge iron units, is operating at a reduced capacity of about 50 per cent. Some sponge iron and mini steel mills have been shut due to shortage of iron ore.