The Union Ministry of Environment, Forest and Climate Change has accorded Stage I (one) ‘in principle approval’ for diverting 401.5761 hectares of forest land at Devadari Hill Range in Ballari district for iron and manganese ore mining by the KIOCL Limited, a Union government undertaking, according to the Chairman and Managing Director of the company M.V. Subba Rao.
Addressing mediapersons in Mangaluru on Monday, he said that the approval was given on June 24, 2021. The company is hopeful that the Stage II clearance, which is the final one, will be given by the end of this financial year, and mining can start in 2022-23.
Mr. Rao said that the company expects about 33 million tonnes of ore to be available for mining over 50 years. It will begin by mining 0.3 million tonnes of ore per annum up to five years. Later, the mining capacity will be increased to two million tonnes per annum.
The Chairman, who is going to retire from service at the end of June, said that the mining operations in Ballari will provide direct employment to about 500 persons and indirect employment to an additional 500 persons.
The company will invest about ₹1,500 crore to start mining in Swamimalai forest block under Sandur taluk, and to set up a beneficiation plant.
Once mining picks up on a full scale at Ballari, its 3.5 million tonner per annum pellet plant in Mangaluru can be fully utilised. Its pellet production was at 2.21 million tonnes during 2020-21 against 2.37 million tonnes during the previous financial year.
Mr. Rao said that the company continues to expand pellet exports to different international markets. Presently, exports to China accounted for 44%, followed by West Asian countries at 41% and balance goes to Brazil and Malaysia.
The KIOCL Limited had been forced to stop work at its captive mines at Kudremukh hill range on the Western Ghats from January 2006 following a Supreme Court order, which banned mining in the eco-sensitive region.
Stage I approval for mining in Devadari Hill Range has come as a major relief to the company, as it gets access to captive mines.
After mining in Kudremukh stopped, the company has been sourcing iron ore mainly from NMDC’s mines in Chhattisgarh to operate its pellet plant in Mangaluru.