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Ban on export of iron ore upheld

BANGALORE: The Karnataka High Court on Friday upheld the State Government's ban on transport and export of iron ore.

A Division Bench comprising Chief Justice J.S. Khehar and Justice S. Abdul Nazir passed orders upholding the Government Orders of July 26, 2010, and July 28, 2010, banning transport of iron ore and its export from ten ports.

Thirty-two companies, including V.S. Lad and Sons, Kumaraswamy Minerals, Sesa Goa and others had challenged the two orders on the grounds that the State had no jurisdiction and authority to pass such orders.

Advocate-General Ashok Haranahalli and Government advocate Ravindra Kolhe submitted that the ban was imposed after the State realised the enormity of the illegal mining in Karnataka.

They said that on March 30, 2010, officers of the Forest Department had seized 8,05,991 tonnes of illegally mined and illegally transported iron ore at Belekeri and Karwar ports.

They said the State was within its power to regulate mining activity under the Mines and Minerals Act.

The Bench accepted the contentions of the State, saying “that the authority to prevent illegal mining, illegal transport and illegal storage of minerals is vested with the State Government under the Mines and Minerals Act”.

“Having read and reread the two GOs, we have no doubt that they have been passed keeping in mind illegal mining that had been going on,” the Bench said. It said it was not possible to ignore the interim report of the Lokayukta, which has pointed out cases of illegal mining and illegal transport of iron ore.

Karnataka produces iron ore fines and ores and accounts for around a quarter of India's exports of over 100 million tonnes a year.

A large amount of iron ore exported from India is believed to land in China, which is the world's largest steel producer. India is reckoned to be the third largest exporter of iron ore in the world.

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