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This is an archive article published on August 6, 2011

SC gives green signal for NMDC to operate its mines in Bellary

The Bench,however,made it clear that iron ore exports from Bellary mines continues to be banned.

A week after it suspended mining operations in Karnataka’s Bellary district,the Supreme Court on Friday allowed the National Mineral Development Corporation (NMDC),a public sector enterprise,to operate its two mines from tomorrow in a bid to meet the demand.

“We are of the view that under the extraordinary circumstances,NMDC be allowed to operate these mines to extend the production of iron ore to the tune of one million tonnes per month from tomorrow onwards,” said a special forest bench headed by Chief Justice S H Kapadia.

The Bench,however,made it clear that iron ore exports from Bellary mines continues to be banned.

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The court also ordered a “macro-level” environment impact assessment (EIA) of the Bellary region,to be done by a team of experts from the Indian Council of Forestry,Research and Education (ICFRE) in collaboration with the Wildlife Institute of India,Forest Survey of India and in consultation with the Ministry of Environment and Forests (MoEF),within the next three months.

Meanwhile,the miners openly challenged the court’s July 29 order to suspend mining operations,calling it “harsh” and a return to “nationalisation”. They said the court was repeating “nobody mines,nobody mines” even as the blast furnaces go cold.

Speaking for the bench,Chief Justice Kapadia explained that the priority of the assessment was not to detect whether “this mine or that mine,this plot or that plot is causing the environmental degradation,but it is holistic” with Bellary as one “environmental unit”.

Appearing for Sandur Manganese and Iron Ore Company,senior advocate Fali Nariman argued that “Bellary covers 8,447 square km… that it is an environmental unit is not true.”

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“NMDC mines and Sandur is 60 km apart as the crow flies. While you say that ‘nobody mines,nobody mines’ please understand that these are two separate environmental units on two different hills,” he said.

But the court insisted that they should await the EIA report.

The MoEF,represented by Attorney General G E Vahanvati,agreed that there is no replacement for the Bellary mines,which annually produces 26.5 million tonnes of the 105 million tonnes of iron ore for the country’s steel industry.

For nearly two hours,the court walked the tightrope,and in one instance accused the miners of placing “profits before environmental concerns”. The court had to explain,time and again during the hearing,that the ban was only a temporary pause until the mining could be resumed on “scientific lines”.

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But resistance from the miners gained strength when the bench suggested that NMDC,in case it is unable to meet the iron ore demand from its own mines,should consider operating the private mines. This prompted senior advocate Dushyant Dave,representing a federation of mining industries,to launch a frontal attack on the suspension itself.

“Undoubtedly some of us have made mistakes,but why should we who operate legally suffer at all? Your order is harsh. Do we not have the right to earn a living?” he asked.

He challenged the court’s suggestion to have NMDC operate private mines. “Why should they be allowed to operate our mines. It is a case of nationalisation,” he said.

“Our orders are based on precautionary principles,sustainable development and inter-generational equity principles. But making a profit seems to be your only concern,” Chief Justice Kapadia shot back.

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“If it is environmental damage you are concerned about,then close down the mines in Chattisgarh,Orissa and Jharkhand… why do you visit this harshness on us for the mistakes of some others?” Dave asked.

“Time has come for people to form associations and see that mining is done on scientific lines. You cannot say anymore that he is responsible and I am not. It is simple: You shall develop,subject to scientific principles being followed,” the Chief Justice said.

Meanwhile,the Karnataka government has been told to levy royalty at a rate of 10 per cent of the current market value of the iron ore and also submit a reclamation and rehabilitation plan within three months.

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