Bangalore: Demand for Iron Ore Slumps; Bellary Mining Barons Losing Political Clout
By Melka Miyar, Daijiworld Media Network
Bangalore
November 1, 2008
Mining of iron ore in Bellary is taking a strange turn now-a-days. The mine owners here made news at the state level so far, because of the boom the industry witnessed since the last few years. They have been successful in controlling the state politics because of their money power. But their fortunes are down the hill of late.
It may be noted, that the mine owners of Bellary district built helipads in their premises, purchased brand new imported cars as soon as they were brought out, own helicoptors and railway lines. But all these might be the things of the past and the days of the miners rule in the state are numbered, if sources are to be believed.
The golden era of the mining lords began in the year 2004. There had been a great demand from China for the iron ore extracted in Bellary. This resulted in increased money flow into that district and lot of labourers came here from other places, in search of jobs. Now they are all forced to turn towards their native places. Because, the iron ore has lost demand in the global market, due to the USA meltdown.
A total of 90 mines are operational in Bellary district and 60 of them have been active since the few years. Job opportunities have gone down in these mines now. The mine owners are doing their best to regulate their expenditure. This has affected the labourers there.
Facilities like telephone, travelling expenses etc earlier provided to the managers and supervisors of these mines have been withdrawn by the employers. Many of the mine workers have opted for voluntary retirement. Sources say, that most of the remaining labourers also are heading towards a similar fate. The daily wage workers have been shown the door. Even the employees working in the administrative level are losing their jobs. Finally, these developments have been draining away the wealth of the mine owners greatly. It is clear now, that the mining lords will lose their clout in the state politics, because of the lack of demand for iron ore.