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LATEST NEWS UPDATES | Karnataka submits 'resettlement & rehabilitation plan' for people displaced by mines-MV Ramsurya

Karnataka submits 'resettlement & rehabilitation plan' for people displaced by mines-MV Ramsurya

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published Published on Jul 5, 2012   modified Modified on Jul 5, 2012
-The Economic Times

A rehabilitation proposal to address displaced population and sort out environmental issues at eight iron ore mines in Karnataka has been prepared and submitted to a Supreme Court panel, giving hope to steel companies that production in these mines, shuttered since last year, will resume soon. 

According to norms, the rehabilitation proposal, typically called the Resettlement & Rehabilitation (R&R) plan, has to be approved by the apex court's Centrally Empowered Committee which will then ask the Indian Bureau of Mines for a mining plan for the eight mines. 

This follows the court's order on April 20 that classified the affected mines in Karnataka under three different categories, depending on the extent of their involvement in the irregularities. 

Those which were relatively clean were brought under Category A where operations could be resumed once the R&R plan is in place; mines under categories B and C would require more stringent scrutiny and approvals. 

The R&R plan prepared by the Indian Council of Forestry Research and Education (ICFRE) was for five mines in Category A and three in Category B. "The plans for these eight mines are ready and will now require the approval of the CEC," ICFRE director general VK Bahuguna told ET from Delhi. 

Since the development indicates improvement in the iron ore situation in the state, shares of steel mills dependent on the region's ore, were up sharply on BSE on Wednesday. 

While JSW Steel, India's second-largest private steelmaker, rose 4.2%, Tata Metaliks and Mukand were up 4% and 6%, respectively. JSW Steel has been operating at 70% capacity for the past three months due to a fall in the quality of ore the company buys from a courtmanaged auction. 

Last year, the apex court had temporarily banned iron ore mining and allowed 25 million tonnes of seized ore to be sold through auctions. "We are happy that things are finally beginning to move, although there hasn't been any official communication so far," said JSW joint managing director Seshagiri Rao. 

"But much is yet to be done as the mining plan will have to be formed and a 'consent-to-operate' has also to be sought from the Pollution Control Board," he added. 

While officials involved in the issue were not ready to make an estimate on the amount of ore that could be mined annually from the eight mines, an industry executive said the production from the mines could be about 5.5-6 million tonnes. 

The Federation of Indian Mineral Industries (FIMI), a mining industry lobby, which has been assisting ICFRE in preparing the R&R plan, has already completed its report on 26 mines in the state. "All these have been submitted to ICFRE for approval," said FIMI additional secretary general RK Bansal. 

"It is up to the council to evaluate the reports and give the approvals," he added.

The Economic Times, 5 July, 2012, http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/karnataka-submits-resettlement-rehabilitation-plan-for-people-displaced-by-mine


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