Open all 'A' category mines soon, Steel industry urges government

The Karnataka Iron and Steel Manufacturers’ Association (KISMA) on Tuesday urged the State government to expedite the resumption of operations at all ‘A’ category mines, so that the steel industry gets adequate supply of iron ore.

Addressing reporters, KISMA president Vinod Nowal, who is also the CEO of JSW Steel, said the steel industry had been facing a severe shortage of iron ore in the State.

Against the total annual requirement of about 35 million tonnes (mt), the industry has been getting 15 mt, he said.

Iron ore currently being auctioned from stockpiles is of inferior quality. “Most iron and steel companies do not have the technology to utilise such inferior quality ore,” he said.

“Consequently, many of them have been forced to either close down or operate at low capacity,” Nowal said.

Though the Central Empowered Committee (CEC) of the Supreme Court has cleared 13 ‘A’ category mines, seven of them have not commenced mining. These mining leases have been awaiting clearances from various agencies, including the Indian Bureau of Mines.

“The State government should immediately convene a meeting of the agencies concerned and expedite the resumption of mining,” Nowal said.

Pending litigation

The apex court has already cleared seven ‘A1’ category mining leases. Work at these mines, however, has been held up due to litigations related to temples, boundary disputes and forest land.

The government has been urged to take appropriate steps for the early disposal of these cases.

Even two months after the Supreme Court direction, the committee to determine compensatory payment for ‘B’ category mines has not been constituted.

The opening of ‘B’ category mines is vital to the industry as the annual permissible production is larger, he said.

“The government should convene a meeting of leaseholders of all ‘B’ category mines, clarify the related issues and ensure that they start mining soon,” Nowal said.

Earlier, a delegation of KISMA representatives led by Nowal had met Chief Secretary S V Ranganath in tconnection with this issue.