SC seeks Steel Ministry's view on plea for lifting ban on export of iron ore in K'taka

The Supreme Court on Monday asked the Union government's Ministry of Steel to clarify a plea by miners from Karnataka for lifting the ban on the export of iron ore from the state.

The top court noted that the Ministry of Mines has supported the demand but the petitioner NGO Samaj Parivartan Samudaya has opposed the plea, saying the Steel Ministry was yet to make its stand clear in the matter.

A bench presided over by Chief Justice N V Ramana asked Additional Solicitor General KM Nataraj to take a comprehensive view of the matter and let the Steel Ministry also file its response.

The court noted there is no restriction in other parts of the country on the export of iron ores.

"We also want the lifting of the ban. Now suppose, if we allow lifting the ban, such a huge quantity will come in the market, what would be the situation," the bench asked, noting as per the existing policy, there is no ban on legally extracted iron ore in other states.

Senior advocate Dushyant Dave, appearing for miners contended as per the existing regime, that the buyers (Steel companies) can import and domestic iron ore producers would have to sell through e-auction.

"This order (banning of export from Karnataka) should be modified. There is no need for an affidavit of the Ministry of Steel, as the Union government has already granted an export, we are in a need of a foreign exchange, the ban should be lifted," he said.

Senior advocate A M Singhvi, appearing for Federation of Indian Mineral Industries, Southern Chapter, cited the CEC reports as well as the Ministry of Mines' affidavit, to ask the court to modify its order and allow the export of iron ores extracted from Ballari, Chitradurga and Tumakuru districts. Senior advocate Mukul Rohatgi also supported the plea for lifting the ban on exports.

Advocate Prashant Bhushan, appearing for NGO Samaj Parivartan Samudaya, opposed the plea, saying there are environmental concerns. As per the report by former Lokayukta Justice Santosh Hegde, the ban was imposed because otherwise, all the reserves would have been over.

He said the natural sources must not be allowed to be exploited for the profit of some mining companies.

He said Steel Ministry has always maintained that there is a shortage of iron ore for domestic use and it should place the fact before this court.

Senior advocate Kapil Sibal, appearing for the steel manufacturers' body, opposed the plea.

"What we are saying is there is iron ore on the ground, why don’t put it for e-auction? If we don’t buy, then allow it for export," he said.

The top court had on April 18, 2013 imposed the ban on export of iron ore from Karnataka's three districts and fixed the maximum permissible annual production limit.

However, the court-appointed Centred Empowered Committee reports of June 29, 2020 and July 18, 2019 favoured review of the top court's orders related to a total ban on the export of iron ore from districts of Ballari, Chitradurga, and Tumakuru.

The Union government's Ministry of Mines, in an affidavit, had said, "In other parts of the country, there is no restriction on the export of iron ore. The restriction imposed in Karnataka was under extraordinary situation prevailing then because of unprecedented illegal mining. However, as the situation has changed, the court may allow export to bring these mines on par with the other States."