The popular perception that mining generates large-scale employment turned out to be a 'mere myth', with the employment potential of Indian mines decreasing by 70 per cent in the last nine years due to the advent of mechanised mining, a report by the Centre for Science and Environment (CSE) said.
Dubbing it as the 'peanut principle' the report outlines how local employment, touted as an important reason to allow mining, was nothing more than a hollow claim.
Modern largescale mining today doesn't need people — just big machines and a few specialised operators will do, said Sunita Narain, Director of New Delhi-based CSE, which has released a study on mining titled "Rich Lands, Poor People."
In 1994-95, to produce Rs one crore worth minerals, mines in the country employed about 25 people. In 2003-04 for the same only eight people are required. Thus in nine years, the employment potential of the mines had decreased 70 per cent.
The reduction has been across the board. In bauxite mining, in 1951, 18 people were employed to mine 1000 tonnes, but by 2002, only 0.5 people (half a worker) were required to dig out the same amount. By 2002, iron ore required even less, 0.3 (one third) persons, the study says.
Between 1991 and 2004-05, employment in the formal mining industry in the country fell by 30 per cent, it said.
Referring to displacement, the report, which details the impact of mining in different states on environment and people, points out how between 1950 and 1991, mining displaced about 2.6 million people. About 52 per cent were tribals.
"Mining has the worst record in rehabilitation and resettlement. Less than 25 per cent of people displaced have been resettled", it said.