Bangalore Steel mills, including JSW Steel’s 10-million tonne per annum (mtpa) plant in Bellary, that depend on iron ore from Karnataka are expected to get more raw material in the coming days. With the Supreme Court-constituted monitoring committee deciding to e-auction iron ore frequently, steel output is also expected to rise.

Karnataka’s steel industry, which is reeling under an unprecedented iron ore crunch, has found deficiencies in the government’s recent attempts at restoring the supply of the mineral in the state , going by an affidavit filed before the Supreme Court on Monday.

According to sources, there are 11 mining projects awaiting environment clearance in the state. In the case of JSW Steel the government has cleared the company’s proposal to invest another R15,131 crore to increase its installed capacity to 16 mtpa at its existing plant in Bellary. But if the mining ban is not lifted and mining lease is not provided, it would not be possible to expand the capacity from the current level, an official attached to JSW said requesting anonymity.

The environment ministry has decided that it will not consider for clearance any of the pending proposals for mining projects in the Bellary, Tumkur and Chitradurga districts in Karnataka.

New Delhi In yet another setback to mining operations in Karnataka, the ministry of environment and forests (MoEF) on Wednesday decided to delist all the mining projects in the state which are pending for environment clearance and are at different stages of processing.

SC-appointed panel to sell 1.5 million MT a month
In a relief to the starving steel firms left with little or no ore after mining operations were suspended in Bellary and other districts, the Department of Mines and Geology on Tuesday invited interested buyers to register for the e-auctioning beginning on September 14.

A three-judge forest bench headed by Chief Justice S H Kapadia accepted the recommendations of the Central Empowered Committee (CEC) setting the modalities for selling and keeping the accounts of sale proceeds of the existing stock of about 25 million metric tonnes from the mining leases of the three districts.

The Supreme Court on Friday allowed the auction of 25 million tonnes iron ore that was excavated from the Karnataka mines earlier to ensure that steel mills can operate smoothly till a final decision is taken on environmental issues.

Chennai The Supreme Court’s extended ban on mining in Tumkur and Chitradurga districts of Karnataka is expected to cast a shadow on the iron ore miners and steel companies. The ban on two more districts, in addition to the one in Bellary, will result in a sharp decline of iron ore production which will be followed with a severe cut in steel production. The performance of companies such as Sesa Goa and JSW Steel is expected to be adversely affected, said a report of Angel Broking.