Karnataka iron ore mines reopening delayed by lack of approvals

MUMBAI: Despite the Supreme Court's direction allowing reopening of iron ore mines in Karnataka six months ago, most mines are still shut due to the delays in grant of related approvals, industry sources said.

"It is taking time. There is delay in receiving approvals for renewal of mining operations. We feel it will take another year for all the mines to restart," a miner based in Karnataka told PTI today, wishing not to be named.

The Supreme Court, in April, allowed 117 mines in Karnataka to reopen. But so far, only a dozen have resumed operations.

"The state is cautious in giving approvals," another miner from Karnataka said.

According to sources, the arrest of a senior IAS official earlier this month in a corruption case related to illegal mining in Bellary region made the officials wary.

Steel firms such as JSW Steel and Kalyani Steel are running below capacity due to shortage of ore in the state. Several sponge iron units have shut the shop in the last two years as they could not afford to buy ore from state agencies through e-auction.

Karnataka produced around 35-40 million tonnes (MT) iron ore per annum before the mining halted in 2011. Steel units in the state require around 25-30 MT ore to run at the full capacity.

Secretary general of Federation of Mineral Industries R K Sharma said the reopening would take some time as the mines coming for renewal would require forest department's clearances.