"I think, we can do it. If need be, I will seek CBI help in the investigations", Hegde told reporters here after interacting with the children of the Bala Balaga, a private school here.
He said he has recommended to the state government to levy a tax of Rs 150 per tonne of iron ore as the mines owners have only been paying a "paltry" royalty of Rs 27 per tonne now but makes huge profit selling it at Rs 6,000 per tonne.
Hegde had a few days ago described as "too premature" the clean chit given by Chief Minister B S Yeddyurappa to the Reddy brothers facing charges of illegal mining.
His remarks came against the backdrop of Yeddyurappa defending the Reddy brothers claiming there was no evidence against them and ruling out their removal from cabinet.
The state government has entrusted Lokayukta with the inquiry into illegal export of iron ore even as the opposition Congress and JD(S) insist on a CBI probe.
The Opposition had accused ministers-cum-mining magnates Reddy brothers -- G Janardhana Reddy and G Karunakara Reddy -- of involvement in the alleged multi-crore scam.
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