Iron ore mining companies in Karnataka are contemplating moving court against the state government move to ban iron ore exports.
The Federation of Indian Mineral Industries (FIMI) today termed the Karnataka government order of banning iron ore exports from the minor ports in the state unconstitutional and invalid. With effect from July 26, the state government banned the export of iron ore and stopped issuing permits to transport iron ore for export from July 28.
“The kneejerk action of the government shows its helplessness and inability to curb illegal mining of iron ore in the state. It shows a complete lack of political will and failure to take suitable action against those indulging in illegal mining,” D V Pichamuthu, director, FIMI-southern region, said.
He said, the illegal mining was bound to continue since a considerable quantity was targeted at the domestic industry. “The stoppage of mineral dispatch permits will not stop illegal mining as this ore is either transported without permits or with fake permits,” he told reporters, here.
Dubbing the twin ban orders illogical, Pichamuthu said, the organisation would go to court if the state government did not withdraw them with immediate effect.
“We will first prevail upon the government to rescind the orders by explaining the deleterious impact it is having on the industry, investments, business and employment. If the government does not respond, we will have no alternative but approach the courts,” Pichamuthu said.
The mining body also questioned the powers of the state in issuing the twin notifications, as a major mineral like iron ore and its exports come under the jurisdiction of the Central government.
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“While illegal mining will definitely not be stopped, the economic consequences of the ban will render about 5,000 people directly employed in mining operations jobless and affect about 50,000 people engaged in ancillary works like truck drivers, attendants, loaders and un-loaders at mines, rail yards and ports,” Shantesh Gureddi, chairman, FIMI, Southern Region, pointed out.
Observing that the reason for banning iron ore export was very strange, FIMI vice-chairman Basant Poddar said, illegal mining and illegal export of iron ore cannot take place without the connivance of officials or complicity of government agencies.
“Iron ore mines in Bellary/Hospet area are mostly in the forest areas. The ore cannot be moved out without forest permits or clearance from the state mines & geology department. In addition, there are a number of check-posts on the way to the ports manned by sales tax, road transport office and other departments,” Poddar noted.