Bangalore July 29 , DHNS: Chief Minister B S Yeddyurappa’s decision to ban issuing transport permits for iron ore export has left mining barons other than the Reddy brothers not just fuming but confused on how the government would go about implementing its fiat.

Several of them are planning to take the legal route and contemplating challenging the decision as and when it comes into effect. What would hurt the state’s mining barons, whose political allegiance is not limited to the BJP, is the loss in crores when their exports to China stops abruptly after the Commerce and Industries Department on Tuesday issued an order directing officials of the Mining and Geology department not to issue mineral dispatch permits for transporting iron ore for export.

The order, which was issued at the behest of the chief minister, will come into immediate effect. There will, however, be restriction on the transport of ore for domestic use. Last Saturday, the government issued orders stopping export of iron ore from the State’s ports.

In a sharp reaction to the decision, a cross-section of mining lease holders said the government’s stand was politically motivated to tame the Reddy brothers. However, the owners of steel industries have a reason to smile because they are hoping that ore would be available at a reduced price, which will benefit business.
On average, 40 million tonnes of iron ore is extracted in Bellary annually. Of this, nearly 60 per cent is exported and the rest is for domestic consumption.

Of the 100 mining lease holders in the State, about to 20-25 are into export business. Not less than 15 to 20 lakh people directly or indirectly are employed in this sector. According to industry sources, usually those in the ore business engage in spot trading with China and no long-term contracts are drawn.

Karnataka Pradesh Congress Committee general secretary Abdul Wahab, who is into mining in a big way for 35 years, said he might lend support to his party’s padayatra against illegal mining. But Wahab, who is the managing partner in Kariganur Mining Company, is upset with the ban on iron ore transport.

For Wahab, a director on the boards of four more mining companies, the ban would mean losing lakhs in daily transaction. Claiming that export was being allowed because there was an increasing demand for it, Wahab said despite the ban illegal mining would continue to meet domestic use.

No more export of ore, says BSY

Chief Minister B S Yeddyurappa has said he has no concern for mine owners losing business because of ban on export of iron ore from the State-bound ports.

“My concern is only to ensure that iron ore is not exported. And, domestic steel plants should get the natural resources to manufacture steel,” he told the media here on Wednesday.

The Chief Minister said his government had banned export of iron ore from State-bound ports and an order to stop issuing transport permits for export would be issued soon. The measure would also stop export of iron ore from ports in neighbouring states.

“If the natural resource is used for value addition, thousands of youths will get employment. Now we import steel. If the steel plants in the State get the ore, we will be in a position to export steel,” he said.

He said he had done enough to curb illegal mining. He would be convening a meeting of intellectuals and media people to discuss what more measures he could take to stop illegal mining. He would speak to former Prime Minister H D Deve Gowda and JD(S) state president H D Kumaraswamy over phone to take their suggestions.

Yeddyurappa said he was ready to take all suggestions of the Congress except referring the matter for a CBI inquiry. “I can’t take decisions according to their demands. They can’t be dictators,” he said.

The matter had already been referred to the Lokayukta, which had sought additional staff from Revenue and Forest Departments to hold the probe. The Chief Secretary would meet the Lokayukta soon and the required staff would be allotted.
When it was pointed out that many in the BJP have opposed the government’s stand on iron ore export, Yeddyurappa said the party was united on the issue. “You won’t see anywhere in the world the unity among the BJP leaders and ministers,” he said.

Asked if he would transfer officers of Forest Department in Bellary to act effectively on illegal mining, the Chief Minister said he would take all measures necessary to avoid illegal activity.

CM to launch yatra to counter Cong

Chief Minister B S Yeddyurappa is contemplating a yatra to counter the Congress padayatra. Will it be a padayatra? The Chief Minister has not yet decided. “Leaders of the BJP will decide the mode after the Congress completes its yatra,” he told journalists in Bangalore on Wednesday.

Yeddyurappa said the Congress had no experience in staging padayatras. “Otherwise Siddaramaiah and D K Shivakumar would have not spent time massaging their legs.” He said he had led many padayatras in his career and would also reach the masses and “expose” the Congress leaders.

“I came to power after taking out padayatras for many years. Let the Congress people also take out marches for next 20 years and come to power,” he said.
“The Congress is solely responsible for illegal mining. When they were in power they gave licences and many leaders of the party are into illegal mining. Now the party is demanding CBI inquiry only to protect such people within its fold. Their ambition is to strengthen the party’s base by using ill-gotten money of mine owners,” he said.

DH News Service