Miners may move court if Karnataka sticks to export ban

July 29, 2010: Iron ore miners in Karnataka are adopting a wait-and-watch approach over the Karnataka government's reported move to ban exports from ports in the state.

"Yes, we are aware of the move (to ban exports). The notification has not been issued yet. As of now, we have not taken a decision but all options including approaching courts are open," sources in the mining industry said.

If the ban is imposed, miners would also not be allowed to truck their material to ports in the neighbouring states. On an average, the state exports close to about 1.5-2 mt of iron ore every month. The state's production is pegged at about 35 mt, of which close to 20 mt is exported annually.

Miners say that of the 10 ports mentioned by the CM, only two are actively used for shipping the ore. These are the Bilikeri and Karwar ports -- both of which are currently shut due to monsoons.

Iron ore mining in the state gained significant interest since 2004-05 not just on the back of rising Chinese demand but also due to the inherently superior quality of the ore. Indian iron ore exports have risen from 41.76 mt in 2001-02, and are currently at over 120 mt.

Source: The Economic Times