CEC considering proposal to increase production limit for NMDC in Karnataka

18 December 2017

The Central Empowered Committee (CEC) set up by the Supreme Court on iron ore mining issues is considering a proposal for revision of the annual production level permitted for government-owned NMDC in Karnataka, taking new infrastructure into account.

For another public sector player, Mysuru Minerals (MML), it is bringing down the limit from 4.06 million tonnes to two mt in 2017-18. Further reduction is expected in the following years, owing to inadequate infrastructure.

The Maximum Permissible Annual Production (MPAP) for the two mines NMDC operates (in line with its Reclamation and Rehabilitation or R&R Plan) is 9.45 mt at present.

The SC is hearing petitions related to issues in iron ore mining in Karnataka. The CEC has sent it an explanatory note on the new infra with NMDC, including railway sidings and a conveyor belt system; also due to reassessment of reserves and dumping space.

It has suggested to the SC that NMDC be allowed to continue with its capacity at 12 mt for the present financial year; from 2018-2019, it should strictly adhere to a re-fixed MPAP.

The Indian Council of Forestry Research and Education, which prepares the R&R plan for each mine, has told the CEC that output in the two NMDC mines could be raised to 15.96 mt, from the current permissible 9.38 mt. The Committee has said they’re examining this.

Meanwhile, it has reported that the working of MML is “highly stressed” due to shortage of space for stocking, beside inadequate infrastructure. Hence the suggestion to cut its production limit.

Additional infrastructure, including new roads, has been created by different entities in the segment. For instance, JSW Steel has constructed railway sidings at Nandihalli with a track lane of 13.6 km. NMDC has installed a downhill conveyor belt with annual capacity of five mt. The state government has also sought a increase in the permissible limit for mining, considering the infra improvements.

“In fact, the state government suggests the annual cap upon iron ore extraction could be gradually increased to 50 mt, subject to successful implementation of the major items of the CEPMIZ (Comprehensive Environment Plan for the Mining Impact Zone) as approved by this court,” the SC had said in an order issued on Thursday. Through the order, it lifted the ceiling for mining in Karnataka from 30 mt to 35 mt for the A & B categories of mines.

Source: Business Standard