JOIN USSpeaking to media persons in a press meet, KIOCL Limited Chairman and Managing Director K Ranganath informed that the mining operations was stopped in Kudremukh in 2005 and ever since KIOCL was looking out for a new project.
KIOCL has been granted one block of 116.15 hectares in Chiknayakanahalli. There are a total of 8 blocks handled by different companies, he said and added that an overlap between the 8 blocks is posing a problem.
When the issue was discussed with the Government, the companies were told to either share or leave the overlapping land. KIOCL and the other company whose land has been overlapping have decided to leave 11.5 hectares each, said Ranganath.
The mine sketch plan has been submitted to the department of Mines and Geology. The company is waiting for clearance from Union Ministry of Mines and Forest (MOEF). They have already received the clearance from State Forest, he said and added it would take up to 18 months to get the clearance only after which the mining work will commence.
The total ore for mining in the block provided to them is identified as 10 million tonnes, which will last for two to three years, he said.
The company has also applied for a mining project in Ramanadurga in Bellary. The estimated ore for mining if the project is approved is 200 to 240 million tonnes and will last for 40 years, he said.
The presentation has already been done to the State Government but nothing has been assured so far, Ranganath adds.
Withered ore
Prior to the Supreme Court ban on mining in Kudremukh area, about 30 million tonnes from the 54 million tonnes was removed. The remaining 20 million tonnes is posing a problem to the Bhadra River, he said.
As per the legal opinion provided to KIOCL, the remaining ore can be removed without attracting contempt said Ranganath.
State Government also wants to be a part of the case. The Supreme Court can accept the case and it may come up in 2 to 3 months, he said.
KIOCL has also applied for mining projects in Orissa, Rajasthan and Kerala though Rajasthan is interested to give to steel authority, he said.
In the last financial year, KIOCL has made a loss of 177 crore. This finacial year the company has made a profit of Rs 75 crore, he said. The company has placed an order for pressure filters. The capacity of the plant will be 15,000 tonnes per day. The plant can produce 3.5 million ore a year, he said.
KIOCL is also trying to sell the old machinery which has been lying ideal since 2005 and will buy new machinery to facilitate the new project, he added.