Federation of Indian Mineral Industries (FIMI), Southern Region, may opt for a legal solution against Karantaka government's decision to ban iron ore exports.
According to David Pichamuthu, FIMI Director, "the kneejerk action of the government determines its helplessness and inability to curb illegal mining of iron ore in the state. It shows a complete lack of political will and failure in the governance to take suitable action against those indulging in illegal mining".
Iron ore is a major mineral and hence came under the jurisdiction of the Union government. Exports come under the perview of the Centre and hence, it was unclear under what powers the state government was banning exports, he said in a press release here today.
The effects of the notification would cause long-term damage to mining industry. Equipments worth crores of rupees used in mining, processing, beneficiation and in ports would lie idle, he said.
Not only private investments but also infrastructure projects like Hssan-Mangalore Rail Development Corportion (HMRDC) would be rendered infructous. All agreements with foreign companies could not be honoured and may effect current orders and jeopardise future orders.
FIMI might first try and prevail upon the government to rescind the order or would be forced to explore legal course, he said.