NEW DELHI | Feb 20, 2015: The mining giant Sesa Sterlite, erstwhile Sesa Goa, will start iron ore mining in Karnataka from next month as it received the necessary clearances from the Central and the State government.

“We have received the environmental clearance from the Centre and the state has also renewed the lease. Now we plan to start our operations in sometime,” a company official said requesting anonymity.

Sesa Sterlite has one mine in the southern part of Karnataka in Chitradurga district. The mine has an annual production capacity of 2.3 million tonne. The mine was neither producing nor selling iron ore since August 2014 and was awaiting forest clearance and mining lease renewal.

Mining activities in the country came to a complete halt after the Supreme Court imposed a ban due to illegal mining on the basis of Shah Commission report. The Chitradurga mine used to produce around 6 mt ore in a year before the ban was imposed.

In April 2013, the apex court lifted the ban on iron ore mines in Bellary, Chitradurga and Tumkur districts of Karnataka. Out of 115 mines (categories A and B) that are eligible to start operations after the Supreme Court’s April verdict, only 24 mines have commenced operations so far.

According to mines ministry data, the output from these 24 mines has been around 20 mt including state-run NMDC output of 9 mt, whose mining activities in the state haven’t been affected by the ban.

The annual production from these 115 mines stood at 35 mt in 2009-10, the year before the illegal-mining scam erupted, leading to imposition of ban by the apex court in July 2011. The entire state of Karnataka had produced a little over 50 mt of iron ore in 2009-10 from 166 mines, including 51 category C mines, the permits for which now stand cancelled. That was 23 per cent of India’s total output then.

Steel makers in Karnataka, which used to produce about 17-18 mt every year before the ban, have been facing a severe iron ore crunch due to the mining ban. Most of the producers, including JSW Steel, which is the largest producer in Karnataka with a 10-mt annual capacity, have been running their plants at a reduced capacity due to the shortages.

Stock Taking

■ Sesa Sterlite has one mine in Chitradurga district with an output capacity of 2.3 mt
■ Out of 115 mines only 24 mines have commenced operations in last 2 years
■ Karnataka iron-ore production is around 20 mt

(Source: http://www.newindianexpress.com/)