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.
Sify reports rampant extraction of iron ore for export was steadily eating away India’s national wealth, retired Supreme Court judge M.B. Shah, who heads a commission probing illegal mining in several states, said Saturday.
Justice Shah is probing unlawful mining in Goa, Orissa, Chhattisgarh, Andhra Pradesh and Karnataka. His team has been camping in Goa for the last two days – visiting mining leases, interviewing bureaucrats and inspecting documents, related to the more than 100 operational iron ore mines in the state. Justice Shah, who heads the nine-member commission, would be submitting a comprehensive report on the Goa mining scandal to the central government within 45 days.
Sify quotes Justice Shah: “Illegal mining started because of the export boom. Export prices were more than 20 times of the local prices for iron ore. The returns from iron ore were a lot more.”
