India's Supreme Court has raised the ceiling on annual iron ore production in the southern state of Karnataka, easing the curbs on the state's iron ore industry for the second time this year.
The top court raised the ceiling on iron ore mining from 28mn t in the district of Ballari to 35mn t, and from 7mn t to 15mn t collectively for the districts of Chitradurga and Tumkuru.
The central empowered committee (CEC) has recommended a complete relaxation of the ceiling limit, but the court took a more gradual approach.
"Conservation of ecology and the environment must go hand in hand in the spirit of economic development," chief justice N V Ramana said.
The Supreme Court had cancelled mining leases for 51 iron ore mines in 2012 in Karnataka for violating environmental and mining laws and put in place a production ceiling of 30mn t/yr for the region. The output cap was later raised to 35mn t in 2017.
"Karnataka has got huge magnetite and hematite iron ore resources and the ceiling should not come in the way of growth of the state," Federation of Indian Mineral Industries' secretary general R K Sharma told Argus. "We are also trying to persuade the government to remove the iron ore export taxes because Indian steel mills, pellet plants and sponge iron units all use 62pc Fe plus content and the taxes will lead to lesser production and job losses."
The Supreme Court had allowed iron ore exports from Karnataka on 20 May, overturning a judgement from a decade ago, although imposition of a 50pc export tax on all grades of iron ore since 22 May have disrupted the production and shipments of the key raw material.
The Indian government's ministry of mines has recently sought industry consultation to mandate 80pc of total iron ore produced in a year by a mining leaseholder that is below 58pc Fe to be upgraded to 62pc Fe and above.
