Though mining has been stopped at Kudremukh in Chikmagalur district by the public sector Kudremukh Iron Ore Company Limited (KIOCL), the pelletisation plant in Mangalore continues to run with the inventory of ore. |
The company is also buying iron ore from the National Mineral Development Corporation's (NMDC) Bellary mines. |
The KIOCL has signed an agreement with NMDC, which is valid till March for the supply of ore. It will be renewed later according to KIOCL sources. Even as there is no work, the employees are still reporting for duty at Kudremukh. |
However, they have been paid their salaries for January and February 2006. The company has also introduced voluntary retirement scheme. |
According to sources, the company expects to get the licence for mining in Ramanadurga region of Bellary district. |
The government has been approached for allotting a captive mine so that employees can be deployed there as now KIOCL is only being supplied with ore. The government is yet to decide on the same. |
The suspension of mining at Kudremukh has hit about 10,000 workers directly or indirectly. |
Around 2,000 employees have been directly affected and others like contract workers, suppliers and allied industries have also been affected. The New Mangalore Port is also badly hit as KIOCL is a major exporter from the port. KIOCL has been exporting pellets and iron ore concentrates from the port. |
The company is banking on the decision of the government to allow it to mine in Ramanadurga in Bellary district. |
According to sources, Ramanadurga has over 700 million tonnes of ore of which, the requirement of KIOCL is 200 million tonnes, and this will help the company to sustain for another 20 years. The company has sent a proposal in this regard to Union and state governments in 2000. |
The company halted its mining activities at Kudremukh from January 1, 2006, following the Supreme Court direction to do so after a petition that brought to the fore the environmental hazards of mining in the eco-sensitive western ghats. In 1969 the KIOCL was granted a 30-year lease to mine in an area of 3,703 hectares of forestland in Malleshwara region of Western Ghats. |