Karnataka mining cos may get to decide lot sizes for e-auction
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20/04/2012
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Financial Express (New Delhi)
Bangalore Mining in Karnataka is back on its feet. The Supreme Court has allowed mining to resume in iron ore mines of more than 50 hectares after rehabilitation and reclamation plans (R&R) for these leases are approved by the Central Empowered Committee (CEC).
The court accepted the recommendatations of the CEC which refer to restarting mining in two groupings of mines referred to as A and B groups, a classification that the panel had made based on a survey of the extent of irregularities. The two groups together constitute some 100 mines.
The recommendation would also allow mining companies to decide the lot sizes for electronic auction of ore.
Earlier this month, the apex court had set a ceiling on total iron ore production from all the mining leases in Bellary district at 25 million tonnes and a cap of 5 million tonnes in Chitradurga and Tumkur districts.
“The detailing of each mine in Groups A and B will be done in two months,” said Basant Poddar, Chairman of the Federation of Indian Mineral Industries (FIMI), Southern Region. The body is involved with drawing up R&R plans which would be vetted by the Indian Council for Forestry Research and Education and then submitted to the CEC for aproval.
The CEC's recommendation for R&R plans in a larger area of 50 hectares is aimed at a more scientific utilisation of mining area.
A mine owner, on condition of anonymity, said that they would start mining at their lease spread over 700 acres in Bellary district in the next one week as their R&R package has been approved by the CEC. The ore mined from this area will only be used for the domestic market as per directions of the SC.
An official with the state mining department declined to comment on the directions of the Supreme Court but said that they would follow the orders as they have done with the e-auction of ironore.
In 2011, the Supreme Court had banned iron ore mining in Bellary, Chitradurga and Tumkur districts of Karnataka citing environmental violations.