The conditional nod given by the Supreme Court to National Mineral Development Corporation and Sterlite Industries to restart mining in ecological hotspots has revived the hopes of KIOCL for a similar reprieve.
While NMDC is all set to restart mining at Panna diamond reserves in Madhya Pradesh, Sterlite is eying bauxite from eco sensitive Niyamgiri hill area for its proposed aluminium project in Orissa.
Mr K Ranganath CMD of KIOCL broached the issue during the recent visit of Union minister of state for steel Mr A Sai Prathap. Citing instances of NMDC and Sterlite getting the apex court's nod, KIOCL urged Mr Prathap for a similar arrangement to be made for the major PSU to resume mining operations for magnetite ore at Kudremukh.
After the SC ban on mining in the Western Ghats for iron ore in 2005, KIOCL was finally shut last year. It is now planning to set up a 100,000 tonnes per annum ductile plant here as part of its diversification at a cost of INR 300 crore.
Mr Ranganath told the minister that even if KIOCL got an iron ore mine elsewhere in the state, it would pose a logistical challenge to transport the ore to its pellet plant here and still be economically viable. He said that "Minerals are not available in barren land the world over and are invariably hidden under natural forest reserves.”
Mr Ranganath said that "We now have the best of technology which can allow for further mining at Kudremukh without causing any ecological damage. Besides, the company is ready to undertake mining at real cost and not here to make a killing with the spiraling cost of iron ore in global markets.”
The minister told TOI that his ministry is presently not inclined to file a review petition before the SC on behalf of KIOCL. Mr Prathap said that "I will speak to the Union minister of state for environment Mr Jairam Ramesh and take his suggestions on the issue.”
