The Supreme Court on Friday refused to lift its ban order on iron ore mining in Bellary district of Karnataka by the private companies but permitted the central PSU, National Mineral Development Corporation to resuming it from Saturday under strict conditions for maintaining the supply to the domestic steel
industry. The top court said that the Karnataka government would charge the royalty from NMDC for the extracted iron ore at the rate of 10 per cent “per pit-head” current market rate fixed by the Indian Bureau of Mines and the revenue so generated would be used for restoration of environment and rehabilitation of affected people while making it clear that the PSU would not indulge in any export activity. A forest bench comprising Chief Justice of India S.H. Kapadia and Justices Aftab Alam and Swatanter Kumar, however, said that it was not taking up the report of Karnataka Lokayukta on illegal mining at this stage, saying its primary focus was on environment impact due to illegal mining.
“In order to balance the environment concerns with economic concerns and keep in mind the mandate of Article 21 of the Constitution, we are of the view that NMDC be allowed to operate its two mines with the production of one million tones from August 6. We may clarify that no part of the production will be exported,” the bench in an interim order said.
The hopes of all those private companies against whom there were no “adverse” reports, were dashed as the top court said that it would not allow mining by any one till it got an the “environment impact assessment survey” report — ordered to be prepared jointly — by Indian Council of Forestry Research and Education, Forest Survey of India and Wild Life Institute in consultation with ministry of environment and forest.
Since the MOEF was given three months’ time to submit the report, resumption of mining by private company till then was virtually ruled out as the CJI said citizen’s right of better environment under Article 21 would override all contractual and any other commercial rights.
The court even rejected the plea of Karnataka state PSU, Mysore Mineral Ltd for resuming the mining in the same manner as permitted to NMDC, saying the state’s corporation had outsourced mining operation to private companies indulging in illegal excavation. The Karnataka government was rather asked to submit a report within three months about its rehabilitation plan.