Several mine-owners are not seeking clearance renewals

Much of the iron ore mining output from Karnataka this year depended on completion of R&R activities in the mineral-rich Bellary-Chitradurga-Tumkur belt. After the mining scam, the Supreme Court-appointed Central Empowered Committee (CEC) had blocked mining until effective R&R was done to help rehabilitate the affected communities from illegal mining. De-blocking mining in Karnataka will provide an impetus to iron ore exports, but is the state ready? Because of delays in restarting, as Tushar Giri Nath, Secretary, Commerce & Industries (Mines, SSI, Textiles), Government of Karnataka, tells Shashidhar Nanjundaiah, the output will only be about half the requirement this year.

What is the status of the mining operations for mines that Supreme Court’s CEC ordered to reopen after R&R activities were completed?
Of the 166 mining leases, 51 have been cancelled as C category-those with "gross violations", such as those that encroached upon surface area to the extent of 10 per cent or beyond the confines of their allotted mines, or of the dump area (15 per cent beyond allotted area), and seven are under state-boundary dispute [ie, suspected to have encroached across state border]. Of the remaining 108 A and B category mines, owners were asked to submit blueprints of R&R, which the Indian Council of Forestry Research and Education (ICFRE) vets and finally the CEC approves. That process is on: 77 R&R activities have already been CEC-approved in December. Eight of the remaining are in the final stages of CEC approval.

Some of the smaller mines have been delaying the submission of the R&R report-it appears they may not be interested in the mining activity. About 20 of the others have also been reluctant.

How many of the 77 approved mines are under operation?
About 20 are operational. While R&R was mandated by the CEC, there are other stipulations to be fulfilled. For example, the forest or environmental clearance has lapsed for many of these mines. That takes time-with the result that we will not reach the mandated output of 30 million tonne (mt). The output may be 18 mt at the most, but it is likely to be even less than that quantum because on the other hand, NMDC has announced a reduction in its output from 12 mt to about 9 mt. Apart from this 3 mt shortfall, lack of interest from smaller mines will add about 1 mt or less. The remaining shortfall will be from the reluctant miners.

Are you satisfied with the R&R activity from these mine owners?
R&R has been satisfactory. Some work has definitely been done. Community development and impact assessment need to be done under Comprehensive Environment Plan for Mining Impact Zone (CEPMIZ), to be operated under an SPV. There is some disagreement here between us as regards the constitution of such an SPV-the alternatives being operating as a Section 25 company or as a society. We believe that the funds should be first deposited in the state’s treasury, so as to control their flow and any diversion, whereas CEC believes in directly depositing it in the [SPV] company’s coffers.

Can the government push companies to restart mining operations?
Not really. We are mandated to provide a two-year window after the lapse of a clearance before cancelling a mine lease, and that two-year period, of course, has not been completed. There is concern about the ones who have consciously not sought the clearance [renewal].

Can the state seek special amendments to the law that governs this two-year period, since there is some urgency to produce the ore?
Yes, there is urgency. However, the state has no powers to act in respect of a major mineral, and we’re therefore bound by the central act.

Has there been a change in your strategy in measuring and evaluating mining operations on a regular basis?
There are technical solutions, but these are not stabilised. One of the simpler ways is to compare IBM-allotted section and the currently operating section. The second method is LiDAR. We have received an exemption from the state government for assigning this task to Singareni Collieries. However, this will take time because we must first ascertain the amount that went out since there will be a change of ownership. This problem does not arise in the case of B category mines, though, since the amounts are readily available for scrutiny. For the C category-all of which may at the most provide 5 mt-we are expediting this process, but if the Supreme Court gives us a clear direction to go ahead with auctioning the mines, we can do so.