The Supreme Court today allowed mining companies in Karnataka to export iron ore lying at major ports in the state. The government had banned iron ore exports for six months. Since the ban came to an end this month, the court allowed the pleas of the mining companies that they be allowed to export the ore.
Last year, the government had prohibited exports of the ore amid reports of widespread violation of mining laws by the companies, including MSPL Ltd, Sesa Goa Ltd and SB Minerals. Some of these companies said though they had not mined the ore illegally, they were losing crores of rupees because of the ban. They also said they were unable to meet commitments made to foreign companies, and this would have serious consequences for exporters as well as for the finances of the state.
The bench, comprising Justices R V Raveendran and A K Patnaik, allowed the companies to export the ore and stated that the authorities can meanwhile, make inventories of the goods.
The state government said it had prepared a new notification for public comments and this would be notified very soon. It added that the extent of illegal mining was baffling and that Lok Ayukta reports pointed out this problem. The notification was meant to tackle the menace, it said.
Exporters, however, said the notification would be delayed and the ore would be eroded by rains and wind. They also said that the government had violated its undertaking to the Karnataka High Court to settle the disputes out of court and issue a notification after discussion with them. Instead, the government had brought about a new set of prohibitions. “This amounts to harassment,” K K Venugopal, the counsel for the miners, said.
The court asked the government to issue the notification regulating the transport and storage of iron ore by March 31. Currently, 68,000 metric tonnes of iron ore is estimated to be lying at major ports. The court will take up the main case on April 4. In November 2010, the high court upheld the state government's July 2010 order imposing a blanket prohibition on the issuance of mineral dispatch permits for transportation of iron ore for exports. The companies had appealed against the high court decision.
Miners expect ban to be lifted by March-end
The verdict has given some hope to miners who see a possibility of the ban being lifting by the end of March.
“The Supreme Court verdict is an interim relief to miners whose stocks were dumped at ports. It is an indication that there is a possibility of lifting the ban on ore by end of March. This is just a matter of time,” said Rahul Baldota, executive director of Karnataka-based MSPL Ltd. He said the Karnataka government was expected to come up with a set of rules governing transport and export of ore in the state.
A industry source, seeking anonymity, said it seemed the state government was buying time in this case before lifting the ban. “You can't penalise the industry for wrongdoings of some people in the industry,” he said.
The state government had imposed ban on iron ore export last year amid report of widespread violation of mining laws. This was challenged by the miners in the high court which upheld the state government ban. Subsequently, the case was contested in the Supreme Court and the apex court has directed the state to come up with new rules to check illegal mining.
“Karnataka has circulated the draft notification for checking illegal mining in the recent time and miners are fine with the new rules,” said Baldota.
Referring to this matter, R K Sharma, secretary general of Federation of Indian Mineral Industries (FIMI) said, “The state government should give better governance in order to check any illegal mining than issue a blanket ban which hurts the industry as a whole.”
