Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
The Indian Supreme Court has directed that 1.5 million tonnes of iron ore from existing stock in Karnataka’s Bellary, Chitradurga and Tumkur districts be sold every month to ensure adequate supplies for the iron and steel industry, The Hindu reported Sunday.
Mining in the districts was previously banned by the court.
A report by the Central Empowered Committee (CEC) said the iron ore would be sold through e-auction, that “no middlemen or traders will be allowed to participate,” and that exports will not be permitted.
Business Standard reported August 29 that the Karnataka steel industry is reeling under raw material shortages and the extension of a mining ban, with continuing uncertainty over iron ore supply to their plants.
A damning 8000-page report by the Lokayukta, the Karnataka state ombudsman, named a slew of politicians, mostly from the BJP party, as participants in the illegal plunder of the Indian state’s iron ore resources.
Karnataka banned export shipments of iron ore in 2009 as a measure against illegal mining and the need to preserve the raw material for local steelmakers.
