The Supreme Courts decision to halt iron ore mining in the Tumkur and Chitradurga region of Karnataka,on the heels of curbs in the Bellary district until a plan for sustainable mining is evolved will severely constrict supplies to steel makers,say industry bodies. The Bangalore Chamber of Commerce and Industry (BCIC) has in a note on iron ore supplies for the steel industry stated that it will be a big blow for the steel sector in Karnataka forcing the closing down of the plants completely. Companies will have to either reduce the production significantly or close down due to non availability of iron ore, the BCIC has said. While the steel industry in the state requires as much as 1,04,000 tonne of iron ore per day,the districts of Tumkur and Chitradurga provided around 20,000 tonne per day . With the ban on mining in all iron ore producing regions of the state,steel companies are now hoping that the National Mineral Development Corporation the only company allowed to mine in Bellary will be able to reach an assured supply level of 33,000 tonne per day. According to the BCIC the current supplies by NMDC are only in the range of 21000 to 22000 tonne. The Central Empowered Committee (CEC) recommended operation of certain mines cleared by joint survey team in Bellary district. It is essential that at least the mines where CEC found no or minor irregularities should be allowed to start mining operation on a priority basis, the BCIC has stated. There will be a loss in revenue to the exchequer and the overall economic development will be severely affected. The impact is so severe that more than 80,000 people working in the industry will be jobless and the livelihood of over one lakh people associated directly or indirectly gets affected, the industry body said in a statement. The BCIC is seeking the release of a large stock of nearly 25.88 million tonne of iron ore that has already been mined for use by steel companies during the period of the ban on mining in Bellary,Tumkur and Chitradurga. Usable ore should immediately be made available through appropriate mechanism to the domestic steel industry so that some relief can come for steel industry, the BCIC said.
