FIMI head Baldota says State's mining policy is a positive step.

FIMI head Baldota says State's mining policy is a positive step.

By Shivakumar G Malagi

Bellary, Dec 6: The new Karnataka State Mineral Policy 2008 that has come in for criticism from opposition leaders seems to have not disturbed much the mining lords in this ore-rich district, which is seen as the `prime reason' for redrafting the eight-year old state mineral policy.
Former CM H D Kumaraswamy claimed that policy was tailored to safeguard the interests of `some' ministers in Cabinet and leader of opposition in State Legislative council V S Ugrappa stated that Policy was hurriedly formed to push in the interests of Bellary mining lobby ahead of the by-elections.
Both have indirectly referred the `influence' of Bellary Reddy Brothers on drafting the new policy, which was criticized for lacks on issues related to environment protection.
Even there were contrasting versions that Cabinet did not approve the policy, but decided to send it back to the Department of Mines and Geology to come out with a final draft.
But, Bellary district in charge minister and mining czar Gali Janardhana Reddy said "The Cabinet has approved the Policy that is a model mineral policy gives priority to industries for value addition and total development of mineral-bearing areas".
While, Rahul N Baldota, president, Federation of Indian Mineral Industries told Deccan Chronicle that the new Karnataka mineral policy has pro-actively considered notifying mineral bearing lands. This is a very positive step towards mineral development.
"It has also decided to apportion revenue generated from mining towards development of mining areas. This will go a long way in infrastructure development", he remarked.
On proposed ban on export of iron ore, particularly iron ore, VSL Mining Company MD and Rajya Sabha MP Anil Lad said " How can a state government ban export of a Scheduled Mineral. Let government ensure water supply and 300 acres of land at the government rate, every mine owner of Bellary will set up steel plant. When it was unable to give a captive mines to regions major steel mill-JSW Steels since 14 years, then how could it make law forcing every miner to establish steel factories".
However the policy which states no new licences would be granted or renewed to export minerals without value addition is welcomed by the steel and sponge iron sector in region.
The sponge iron industrialists said the country must discourage iron ore export if it is to develop its steel industry. Steel consumption in the country was growing at the rate of 12 percent a year and the demand trend showed that this figure would rise to 13 percent this year even as production was still increasing at only 5.5 percent.
" Mine owners do not want to sell raw product to domestic market, but to international market at high price. Now they have shut down plants due to sharp slump in prices at international market, as a result we are forced to close our mills" says a owner of sponge iron factory which was shut down since October.