Centre backs plea in SC seeking lifting of ban on iron export from Karnataka

The Centre has supported before the Supreme Court a plea by miners from Karnataka to allow them to export their stocks of iron ore, saying the situation has improved since the ban was imposed in the state due to illegal mining and encroachment upon forest land.

"In other parts of the country, there is no restriction on export of iron ore. The restriction imposed in Karnataka was under extraordinary situation prevailing then because of unprecedented illegal mining. However, as the situation has changed, the court may allow export to bring these mines on par with the other States," it said.

The top court, which had asked the Union government to clarify its stand on the plea by a group of miners, is scheduled to consider the issue on Monday. The mining companies claimed they were dying and facing closure due to their stocks not getting sold or receiving genuine prices due to the export ban in Karnataka, while steel companies, on other hand, were importing iron ore.

In a written response, the Ministry of Mines pointed out the top court had passed a series of orders including on August 5, 2011 and September 1, 2014 during a situation when there was rampant illegal mining with encroachment of forest land, particularly for use as overburdened dumps resulting from excessive mining in Karnataka.

This had led to environmental and ecological degradation to an extent, which necessitated judicial intervention to resolve the situation. The court had then also kept in mind the interest of the end-use industry in mind.

However, the scenario has since improved and regulatory mechanism has also vastly changed with 2015 amendments into the Mines and Minerals (Development and Regulation) Act. The new rules made in 2021 provided for allocation of mineral concessions through a transparent process of auction and stringent penal provision for effective deterrence, introduction of star ratings for sustainable mining and administrative measures by launching the mining surveillance system, including drone survey. It also maintained the matters related to regulation and control of illegal mining essentially lay within the domain of state governments.

The government also cited the court-appointed Centred Empowered Committee reports of June 29, 2020, and July 18, 2019, which favoured review of the top court's orders related to total ban on export of iron ore from the districts of Ballari, Chitradurga and Tumakuru.

The CEC had also said the opposition by the Karnataka Iron and Steel Manufacturers Association to export iron ore and pellets is based mainly on commercial consideration and is not directly related to environmental issues concerning mining.

The top court had on April 18, 2013, imposed the ban on export of iron ore from Karnataka's three districts and fixed maximum permissible annual production limit.

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