From Our Special Correspondent
Daijiworld Media Network
Bengaluru, Nov 17: In a disturbing finding, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has come out with a study that claims that Karnataka’s iron ore resources of over 9,000 million tonnes (MT) may last barely 20 years.
The ASSOCHAM study contends that only 750 MT or a mere 8 per cent of the iron ore are actual iron ore resources.
It has suggested that much more needs to be done to create higher reserves so as to ensure the longevity of the industry in the State.
“At the current requirement level of 35 million tonnes per annum (MTPA), iron ore reserves in Karnataka would last only for 20 years,” noted the study titled ‘Mining in Karnataka: Enhancing Production.’’
The study prepared by the Energy Division of ASSOCHAM has suggested the need for increasing exploration spends in India which is very low at per square kilometre of $9 compared to $124 for Australia and $118 for Canada.
The steel industry in Karnataka was suffering badly due to acute shortage of key raw material – the iron ore, after the ban imposed by the Supreme Court of India.
But after the mining resumption orders by the Supreme Court subject to compliance of Reclamation and Rehabilitation (R&R) works for category A & B mines and amendment of Mines and Minerals (Development and Regulation ) Act, the State government has initiated various steps to commence the mining operations and enhance the production.
The ASSOCHAM has suggested introduction of a single window clearance mechanism for approval seeking process as greater coordination is imperative between concerned stakeholders in both government and public sector to ensure that approvals related to reclamation and rehabilitation (R&R), forest clearances and others are processed in a time-bound manner.
It has also suggested hiring best global agencies for assisting in the process of ascertaining reserves, provide technical knowhow and advise auctioning of mines together with faster and time-bound implementation of auction process.
Considering that domestic industry largely operates manually, as against a higher degree of mechanisation globally, the ASSOCHAM study has recommended adopting advanced technology and best mining operations followed across the world.
Mining being an ecologically, politically and demographically sensitive industry, the study felt there is a need to develop practices that are inclusive and sustainable, also important is to ensure that the industry operates within the environmental norms stipulated for the same.
Formation of task force to expedite the statutory clearance, auction of new iron ore mines and reservation for end user, development of iron ore mines in Western Ghats (not in eco-sensitive zone) and others are key short term and long term measures suggested by the study.
It has further said that the Mines and Minerals Development and Regulation (MMDR) Amendment Bill recently passed by the Parliament in March 2015 will kick-start investments and give a fillip to mining activities in the region.