Mangaluru | Feb 02, 2016: The iron ore crisis in the steel ministry undertaking Kudremukh Iron Ore Company Limited (KIOCL) is likely to see an end, with the Karnataka government allotting captive mines to it in Ballari district.

Mangaluru City North MLA BA Mohiuddin Bava claimed that chief minister Siddaramaiah and minister for mines and geology Vinay Kulkarni have taken the initiative to solve the issue by sanctioning 474 hectares of mining land. The government issued a circular sanctioning the land at Devadari in Ballari district. KIOCL Limited is Asia's largest iron ore mining and pelletization complex and the country's biggest 100% export-oriented unit, engaged in the busi ness of exporting high quality iron oxide pellets and pig iron. The government has agreed to carry out mining at the sanctioned site in Ballari for a period of 20 years, and thereafter, the lease will be extended, Bava said.

Malay Chatterjee, chairman and managing director, KIOCL, said he was not aware of this development.

"There was an apprehension that operations at the KIOCL unit in Mangaluru will have to be stopped due to the lack of iron ore. The decision of the government will be a blessing for over 10,000 people, who depend directly or indirectly on KIOCL for their livelihood. Chief minister Siddaramaiah will visit KIOCL unit in Mangaluru after the elections. At present, KIOCL is procuring iron ore from Odisha," the MLC said.

(Source: http://timesofindia.indiatimes.com/)