Only 8% of Karnataka's 9,000 mt iron ore resources are reserves: Study

Karnataka's iron ore reserves may last only 20 years

Though Karnataka's iron ore resources are over 9,000 million tonnes (MT), its reserves are only 750 MT i.e. a mere eight per cent of its resources, as such more needs to be done to create higher reserves so as to ensure the longevity of the industry in the state, noted a just-concluded ASSOCHAM study.

At the current requirement level of 35 million tonnes per annum (MTPA), iron ore reserves in Karnataka would last only for 20 years, noted the study titled 'Mining in Karnataka: Enhancing Production,' conducted by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).

The study prepared by the Energy Division of ASSOCHAM has suggested the need for increasing exploration spends in India which is very low at per square kilometre of $9 compared to $124 for Australia and $118 for Canada.

The blanket ban on iron ore mining not only destabilized the mining sector but also affected Karnataka's downstream steel industry taking along with it related industries like commercial vehicles and mining equipment, logistics and creating local unemployment, the study noted.

In its study, ASSOCHAM has suggested for introducing a single window clearance mechanism for approval seeking process as greater coordination is imperative between concerned stakeholders in both government and public sector to ensure that approvals related to reclamation and rehabilitation (R&R), forest clearances and others are processed in a time-bound manner.

It has also been suggested to hire best global agencies for assisting in the process of ascertaining reserves, provide technical knowhow and advise auctioning of mines together with faster and time-bound implementation of auction process.

Considering that domestic industry largely operates manually, as against a higher degree of mechanisation globally, ASSOCHAM study has recommended adopting advanced technology and best mining operations followed across the world.

Further, the study has suggested that mining being an ecologically, politically and demographically sensitive industry, there is a need to develop practices that are inclusive and sustainable, also important is to ensure that the industry operates within the environmental norms stipulated for the same.

Formation of task force to expedite the statutory clearance, auction of new iron ore mines and reservation for end user, development of iron ore mines in Western Ghats (not in eco-sensitive zone) and others are key short term and long term measures suggested by the ASSOCHAM study.

It has further said that the Mines and Minerals Development and Regulation (MMDR) Amendment Bill recently passed by the Parliament in March 2015 will kick-start investments and give a fillip to mining activities in the region.

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