Karnataka iron ore reserves may last only 20 yrs: Assocham

Karnataka may run out of iron ore in the next 20 years, a study today predicted.
Its total proven reserves of 750 million tonnes may not be enough to ensure longevity of the industry, and more needs to be done by the state government, the study conducted by Assocham said.
Though the state has total iron ore resources of over 9,000 million tonnes (MT), only 750 MT are found to be in reserves -- the portion that can be accessed through mining, drilling or other methods.
"At the current requirement level of 35 MT per annum (MTPA), iron ore reserves in Karnataka would last only for 20 years," the study titled 'Mining in Karnataka: Enhancing Production' noted.

Prepared by the energy division of the trade body, the study made a case for increasing exploration spends in India, which is at a lowly USD 9 per sq km compared with USD 124 for Australia and USD 118 for Canada.
It blamed the ban on iron ore mining for destabilising the mining sector and downstream steel industry besides affecting related industries like commercial vehicles and mining equipment, logistics and creating local unemployment.

Assocham suggested a single-window clearance for the approval process as greater coordination is imperative between concerned stakeholders in both government and public sector.
Considering that domestic industry largely operates manually as against a higher degree of mechanisation globally, Assocham recommended adopting advanced technology and best mining operations followed across the world.

Further, the study said mining being an ecologically, politically and demographically sensitive industry, there is a need to develop practices that are inclusive and sustainable.
Also important is to ensure that the industry operates within the environmental norms stipulated for the same, it said.
Formation of a task force to expedite the statutory clearance, auction of new iron ore mines and reservation for end user, development of iron ore mines in Western Ghats (not in eco-sensitive zone) and others are key short term and long term measures suggested by the Assocham study.
It said that the Mines and Minerals Development and Regulation (MMDR) Amendment Bill recently passed by Parliament in March 2015 will kick-start investments and give a fillip to mining activities in the region.