Bangalore, July 28 (DHNS): Chief Minister B S Yeddyurappa’s decision to ban issuing transport permits for iron ore export has left mining barons other than the Reddy brothers not just fuming but confused on how the government would go about implementing its fiat. 

Several of them are planning to take the legal route and contemplating challenging the decision as and when it comes into effect. What would hurt the state’s mining barons, whose political allegiance is not limited to the BJP, is the loss in crores when their exports to China stops abruptly after the Commerce and Industries Department on Tuesday July 27 issued an order directing officials of the Mining and Geology department not to issue mineral dispatch permits for transporting iron ore for export.

The order, which was issued at the behest of the chief minister, will come into immediate effect. There will, however, be restriction on the transport of ore for domestic use. Last Saturday, the government issued orders stopping export of iron ore from the State’s ports.

In a sharp reaction to the decision, a cross-section of mining lease holders said the government’s stand was politically motivated to tame the Reddy brothers. However, the owners of steel industries have a reason to smile because they are hoping that ore would be available at a reduced price, which will benefit business.

On average, 40 million tonnes of iron ore is extracted in Bellary annually. Of this, nearly 60 per cent is exported and the rest is for domestic consumption. Of the 100 mining lease holders in the State, about to 20-25 are into export business. Not less than 15 to 20 lakh people directly or indirectly are employed in this sector. According to industry sources, usually those in the ore business engage in spot trading with China and no long-term contracts are drawn.

Karnataka Pradesh Congress Committee general secretary Abdul Wahab, who is into mining in a big way for 35 years, said he might lend support to his party’s padayatra against illegal mining. But Wahab, who is the managing partner in Kariganur Mining Company, is upset with the ban on iron ore transport.

For Wahab, a director on the boards of four more mining companies, the ban would mean losing lakhs in daily transaction. Claiming that export was being allowed because there was an increasing demand for it, Wahab said despite the ban illegal mining would continue to meet domestic use.