Task Force set by Steel Ministry recommended Underground Mining in the Western Ghats

A task force, appointed by the steel ministry recommended  underground mining in the Western Ghats which are considered to be ecologically sensitive. The task force set up to provide the basis for the new steel policy referred to Kiruna Mines in Sweden which boasts of the largest and most modern underground iron ore mine in the world. The first suggestion for underground mining was made by the Indian Council for Forestry Research and Education.

Mining in the Ghats was banned by the Supreme Court in 2006 when it had ordered the state owned Kudremukh Iron Ore to shut down operations.

A task force working on the raw material scenario is aware that mining iron ore deposits in the ecologically sensitive Western Ghats is essential for the growing needs of the industry. the forested mountain ranges of south India boast of a third of the country’s iron ore. The deposits are valuable because of its magnetic property which is useful in steel making. Most of this magnetite deposit lies within Karnataka.

However, the concern looms large as resources of high grade iron ore resources in India are fast depleting. the steel ministry’s task force therefore suggested underground mining as practised at the 1500 m deep and 4,000 m long Kiruna Mines in Sweden.
Financialsupport through technology funds and tax concessions and a reduced royalty was promosed to encourage underground mining.

Mining experts with private firms however stated underground mining of the deposits which unlike coal lie under hard mountain rocks and occur in fragmented zones across hills and geological folds could be difficult and expensive.

The panel is in favour of minimising the exports that account for almost half of the ore produced in the country. The current reserves of the iron ore in the country are not sufficient to meet the requirement of iron ore of the domestic iron and steel industry beyond the next twenty years. Iron ore export is needed to be curtailed to the minimum possible.

India has a 300mt iron ore capacity. Hoever it produced 208 mt in 2010-11 due to the ongoing clean up of illegal mining in Goa, Odisha and Karnataka. The estimates of the iron ore resources in the country in 2010, excluding the deposits in the Ghats, amounted to 17.8 billion tonnes of which only 8 billion have been explored till date.