'Ban on iron ore exports unlikely'

Mines Minister Sis Ram Ola today shot down speculation about a ban on export of iron ore in the new mining policy due to be announced shortly.

"There is a demand from the steel industry to ban export of (iron) ore. But steel-makers need not fear as we have ore reserves to last us for the next 125 years," Ola said at a summit on the Indian metal and mining sector organised by Assocham here.

Ola said the new mining policy, based on the recommendations of the Hoda Committee, aimed at attracting domestic and foreign investments of Rs 1,00,000 crore and generating direct and indirect employment for about half a million skilled and unskilled people by 2011.

He added that the proposed policy would be referred to the Cabinet for its final approval and then made public in the next 2-3 months.

The minister said up to March 2006, the government had approved many proposals for exploration of the mining potential which was to cover an area of 2,78,773 sq km.

Various state governments had also leased out licences for mining exploration, which cover an additional area of 2,88,135 hectare, he said.

He said the Geological Survey of India had been instructed to expedite the process of identifying areas with iron ore reserves and also announced that his ministry had signed pacts to attract investments in the domestic mining sector from countries like Australia, Canada, China, Iran, South Africa, Mozambique and Kazakhstan.

He added that these countries had agreed in principle to transfer their technological know-how to India to adequately exploit the potential of the domestic mining sector.

The mines ministry has also constituted a consultative committee comprising various officials concerned to expedite issuance of mining leases, a demand that the steel industry has been pursuing.

"The committee will have members from various central ministries involved, apart from officials from states with mineral and ore deposits," Minister of State for Mines T Subbarami Reddy said, adding that the new mining policy would also have stipulations to extend licencing in a short period of one and a half years as prevalent in economies of scale, especially in the mining sector.

Speaking on the occasion, Secretary, Ministry of Environment and Forests, Prodipto Ghosh said the ministry would shortly come out with a notification for re-engineering, reforming and rationalising old guidelines to quickly give environmental and forest clearances for those who wish to explore the domestic mining sector.

He clarified that the new and modified environment and forest guidelines would have no relaxation for degradation of environment and forests to ensure that exploration of mining potential does not compromise on it.

He added that the new guidelines formulated by the ministry in consultation with the ministry of mines had been sent to the Prime Minister's Office for necessary approval.

The PMO, which is currently examining them, is expected to send back the guidelines to the environment ministry with its approval in the next three weeks, after which the government would come out with the relevant notifications, Ghosh said.