Mines Tribunal stays State's ban on export by NMDC

Tribunal members comprising joint secretary of Mines department and joint secretary of the Law department ordered the stay when the matter came up for hearing.

Parag Tripathi, Additional Solicitor General, appeared for NMDC, which is a public sector unit of the Centre, according NMDC’s counsel K Raghavacharyulu.

In October 2008, NMDC had requested the State Government to renew its mining lease in Donimalai range of Sandur taluk, Bellary district. The lease was first granted for a period of 20 years in 1988. The lease is renewed once in 20 years.

In its letter dated October 23, 2008, the Commerce and Industries Department of the State had written to NMDC that its lease is renewed with effect from November 2008 with the condition that ore should be used for value addition or supply to untis doing value additional only but not for export.

K Raghavacharyulu said the Corporation had challenged government’s direction before the Mines Tribunal. NMDC is into small scale mining of 2 to 3 million tons a year in Karnataka. It mainly exports ore to Japan, the counsel said.

In the last week of July this year, Karnataka government, on the directions by Chief Minister Yeddyurappa closed the state ports for export of iron ore and also banned transport of ore for export. The orders have been challenged by mining industrialists before the Karnataka High Court.

Industrialists arguing that the State has no jurisdiction over export related issues as legislations pertaining to minerals are drawn by Parliament.