Update on iron ore mining in Kudremukh National Park

Friday, 19 Aug 2011

Mr Beni Prasad Verma minister of steel has said that the government have no proposal so far, to reopen the iron ore mine in the area of Kudremukh National Park. However, a part of the loose secondary weathered ore lying in the already broken up area, is posing environmental and ecological threat to the surroundings, particularly to river Bhadra.

To protect from the possible ecological damage, the government has filed an IA No. 3087/2011 before the Hon’ble Supreme Court for allowing Kudremukh Iron Ore Cooperation Ltd for removing approximately 20 million tonnes of loose secondary weathered ore without any drill or blasting.

In a written reply in the Rajya Sabha he said that KIOCL Ltd. is not in the possession of any forest land falling in the Kudremukh National Park. Even the part of forest land which was under lease for mining to KIOCL Ltd has been handed over to Forest Department of government of Karnataka in compliance with the order of Hon’ble Supreme Court. Subsequently, government of Karnataka had included an area of 3703.55 ha of forest land into the Kudremukh National Park vide its Gazette Notification dated January 9th 2007

India for more iron ore export curbs, duty rise seen

25 Feb, 2011, 06.34PM IST,REUTERS

NEW DELHI/MUMBAI: India's steel minister called for curbs on exports of iron ore on Friday, as the federal government heads into a budget that could raise export duty on the steel-making ingredient marginally.

"Yes, I am in favour of it. There should be more control on (iron ore) exports," Steel Minister Beni Prasad Verma said on Friday.

India's government is unlikely to approve a blanket export ban as it would prefer better regulation and incentives for increased domestic use of the steel-making resource, as demand in the world's second-fastest growing major economy rises.

In April last year, India raised the export duty on iron ore lumps to 15 per cent from 10 per cent previously. Duty on iron ore fines stood at 5 per cent.

The ministry of railways hiked the transportation cost 50 per cent to 1,500 rupees per tonne on Jan. 27, but kept it unchanged in Friday's Railway Budget. The government presents its budget for 2011/12 on Monday.

"There could be a marginal hike in export duty (of iron ore)," said Vasant Poddar , vice-president at the Federation of Indian Mineral Industries ( FIMI )), a trade body. "These curbs on iron ore exports are not warranted as nobody in the world, be it Europe, Japan, South Korea and U.S. consumes our low grade iron ore, other than China," he added.

Supplies of the steel-making ingredient from India have been limited by a ban of shipments from the southern state of Karnataka, which is currently being appealed by exporters in the Supreme Court.

Exports fell for the sixth straight month in December 2010 as the Karnataka state ban continued to bite. Exports were down 24.8 per cent year on year and fell 17.02 per cent in the April to December period.

Iron ore prices have risen around 13 per cent this year, adding to gains of more than 40 per cent in 2010. (sourced:Reuters, ET)

Tags : ban of iron ore shipment from Karnataka, raw material, steel mills