Ban ore exports to break unholy mining nexus: Shah Commission

The Justice MB Shah Commission of Enquiry on illegal mining of iron and manganese ores has in its first interim report said that the iron ore boom fuelled by China’s demand for iron ore fines has led to an increase in illegal mining,trading and transportation of the mineral. On the back of Chinese demand,prices of manganese ore have jumped 15-20 times from Rs 200 a tonne in 2002-03 to Rs 4,000-5,000 a tonne currently.

The Commission has pitched for a ban on iron ore exports and has said that banning exports of the mineral will help growth of steel plants and subsequently generate employment for the locals. “It is also apparent that due to huge profits generated from mining activities,local mafias are getting involved in mining related activities. Once mafias control mining operations,they indulge in criminal activities,which not only increases but also results into social disorder,” the Commission said. Besides,those raking in huge profits through the illegal exercise “could also potentially influence state policies,because of money power. In such state of affairs,it would be difficult to break unholy nexus between law keepers and law breakers because corruption is likely to flourish,” the panel has observed,adding that more worrisome is the fact that money earned by illegal activities is large enough to corrupt law enforcing agencies.

The Commission has asked the state not to bend its policies and permit exports so as to drain out national wealth and permit activities which adversely affects the flora and fauna and encourages exploitation of labourers,even of minors by various methods. “In the result for the time being,till things are streamlined and illegal activities are controlled,export of iron and manganese ores may be banned,” the Shah Commission has recommended.

It said the ban could be later reviewed/relaxed once an effective enforcement agency is in place to see that no illegal mining takes place. It has also suggested amending the Section 24(1) of the Mines and Minerals (Development & Regulation) Act 1957 and the Mineral Concession Rules 1960 to ascertain whether the boundary pillars are in their original positions.