Once major exporters to countries such as China, Karnataka is now importing iron ore, as the process of acquiring licences, clearances and renewals of leases has become increasingly tedious, H. Noor Ahmed, president of the Federation of Indian Mineral Industries (FIMI) said on Wednesday.
Once major exporters to countries such as China, Karnataka is now importing iron ore, as the process of acquiring licences, clearances and renewals of leases has become increasingly tedious, H. Noor Ahmed, president of the Federation of Indian Mineral Industries (FIMI) said on Wednesday.
Demand and supply
JSW Steel, for instance, has been importing six lakh tonnes of iron ore a month since May, Mr. Ahmed said at a press conference here. Of the 160 mines that exist in Karnataka, only 23 are operational. While the State produces around 17 million tonnes a year, the demand is nearly double, at 30 million tonnes.
The level of exploration in India is “far below” that of other mineral rich countries, such as Australia, Canada, Brazil, Chile and South Africa.
India’s imports have gone up from 0.36 million tonnes in 2013-14 to 2.37 million tonnes this financial year (until August).
While the consumption of metals in the country is among the lowest in the world, it is likely to increase four or five-fold in the next 15 years, said Mr. Ahmed, underscoring the need to “accelerate mining activity”.
Iron ore production the world over is, in fact, in “excess” by 79 million tonnes this year, said Basant Poddar, Managing Director of Mineral Enterprises.
In India, however, production has halved from 220 million tonnes last year to 140 million tonnes this year.
Among the restrictions for mining companies across the country is a recent amendment to the Mines and Minerals (Development and Regulation) Act 1957, which has made the process of lease renewals particularly difficult, he added.
Mining convention
The FIMI will be holding its three-day annual ‘Mining exploration convention and trade show’ starting Thursday.
Around 300 delegates are likely to attend the convention at the Bangalore International Exhibition Centre here. Union Minister for Mines, Steel and Labour Narendra Singh Tomar will inaugurate it.
Source: The Hindu