Mines body welcomes lifting of curbs on ore

CHITRADURGA: The Federation of Indian Mineral Industries (FIMI)-Sourthern Region on Friday welcomed the decision of Supreme Court on lifting curbs on the sale and export of iron ore in Karnataka. 
Speaking to TNIE, HM Khayum Ali, Director FIMI-Southern Region, said the top court’s decision to allow sale and export of iron ore has come as a big relief to the miners. 

“We were trying since a year to get the ban on sale of iron ore lifted. Also, due to the ban on export of the mineral, we had to sell it at a lesser price, which resulted in loss to mining companies. After SC’s decision, we can now sell it in open market, he added. Ali said the production of iron ore stood at 43 million metric tonnes in Karnataka whereas the demand from the industry was only 37 million metric tonnes. This resulted in excess unused minerals to the tune of five million metric tonnes per year and now with the lifting of the ban, the miners can sell it to buyers in India as well abroad.

“There was no free market and iron ore used to be sold through e-auction committee. Now we are at par with other states as far as iron ore export is concerned”, Ali said. “No illegal activities can take place due to a transparent system in place in the state and our mining extraction and transport system are the best in the country”, he claimed.  

The apex court allowed the mine operators to sell the already excavated iron ore by entering into direct contracts without resorting to e-auction. A bench comprising Chief Justice of India NV Ramana, Justice Krishna Murari and Justice Hima Kohli passed the order on applications filed by mine operators seeking lifting of the curbs, imposed in 2011, following of rampant violations of the rules.