 "SC Karnataka mining verdict: 10 big developments")
The apex court ruling lifted the shares of mining companies between 2-15%. The verdict is the latest step back from a total ban on mining in the state that was put in force in 2011, because of environmental concerns.
Here are 10 big developments in this story
More From This Section
1) Restarting the iron ore mines will ease raw material supplies to JSW Steel Ltd, India’s third-largest steelmaker. JSW’s biggest plant is located at Vijaynagar in Karnataka.
2) The ruling will also allow Sesa, owned by billionaire Anil Agarwal, to revive its mining business more than six months after a ban also halted its operations in Goa, where it is based.
3) Following the SC verdict, shares of companies like Kalyani Steel rose 15.% to Rs 42.20, Sesa Goa shares, which has most of its mining operations in Goa and little capacity in Karnataka also rose around 1% to shut shop at Rs 150.
4) Experts say though the SC lifted the one-and-a-half-year ban it had slapped on mines in Bellary, Chitradurga and Tumkur, the exports would still take time as the state is yet to issue transport permits.
5) The court confirmed its earlier order permitting mining activities in 18 category A mines. The court, however, put an ban on the mining activities in seven mining leases falling in Karnatata-Andhra Pradesh border areas.The court said the mining activities, in seven mining leases would remain suspended till the demarcation of boundaries between the two States is cleared.
6) India used to produce about 200 million tonnes a year of iron ore and exported about half of that, mostly to top buyer China. But a clampdown on illegal mining and exports from Karnataka have slashed output and shipments.
7) With few exports from Karnataka and Goa, iron ore producers such as Vale, Rio Tinto and BHP Billiton have taken some of India's market share in the export markets of China, Japan and South Korea.
8) On July 2011, mining in the Bellary region was banned and the court extended the ban to two other iron ore- rich regions in the state the following month as it investigated violations of green norms. The court subsequently allowed state-run NMDC Ltd. (NMDC) to extract as much as 1 million tons of ore a month and ordered all sales to be made through online auctions.
9) On September 3, the apex court allowed 18 iron ore miners in the state, with capacity to produce 7 million tons annually, to resume operations. Until last month, 10 mines had been restarted in the state.
10) The leases of Category C mines will stand cancelled as per the Central Empowered Committee (CEC) report. There are 49 mining leases in Category C, whose licences will stand cancelled. As per the CEC reports, Category B mines will be allowed to restart mining subject to necessary statutory clearances and completion of relief and rehabilitation work is complete