Munda Seeks Ban on Ore Exports.

Ranchi, Aug. 31: Chief minister Arjun Munda today asked the Centre to ban the export of iron ore from the state in an attempt to enlarge the scope of a debate raging in Jharkhand on his government’s decision allowing sale of iron ore fines by owners of captive mines.

“Why didn’t parties supporting the Centre (read Congress, Babulal Marandi-led JVM) raise the issue in Parliament demanding a total ban on the export of iron ore from the state?” Munda asked, echoing similar demands voiced by iron ore producing states of Orissa and Chhattisgarh.

Defending his government’s decision, that is estimated to fetch the state exchequer an additional Rs 120 crore, Munda said huge piles of highly polluting iron ore fines (dust) were proving to be an environmental hazard.

“They were getting wasted and being drained out into rivers in Gua and Saranda since the existing industries do not have the technology to use them. The companies have also received pollution notices from Indian Bureau of Mines,” he added to explain why its sale had to be allowed.

Munda blamed the Opposition, that disrupted the ongoing Assembly session over the issue, for protesting out of habit. “They create an uproar when we sign an MoU for setting up industries. On the one hand, they don’t allow us to set up industries, and on the other, they are opposed to the sale of iron dust. The people of the state have not elected them to allow wastage of natural resources,” he said.

The state cabinet resolution says that companies owning captive mines should supply fines on priority basis to industries operating within the state, after their own consumption.

“It will be a one-time, time-bound disposal/sale of fines lying in mining lease areas. Moreover, fines being generated on a regular basis will have to be used within the state by increasing capacity,” Munda pointed out.

The chief minister also referred to two or three companies, with the required technology to use iron ore fines, that were expected to come up in Jharkhand in the next two years. These include SAIL, Bokaro, which signed an MoU with Posco and Sesa Goa. Tata Steel is already using iron ore fines.

“We also want to promote value addition of iron ore and for that matter other natural resources available in the state,” Munda explained to The Telegraph.

In all, there are 39 mining leases issued by the Centre in Jharkhand. Of them, 28 have been producing and exporting iron ore. Among them, only six companies, including Tata Steel, SAIL and Usha Martin, have captive mines and have been adding value to the iron ore.

The rest are either selling the ore outside the state or exporting to various countries, including China, Japan, Hong Kong, South Korea, Australia, UAE and Singapore. In 2010, these companies were estimated to have either sold or exported 56.85 lakh tonne iron ore.

Captive iron ore — or for that matter any other mineral — mines are those that have been leased out to companies for their own own consumption. There is no binding on non-captive category of mines.

“There is no hue or cry over non-captive mines exporting iron ore,” the chief minister also pointed out.

Tata Steel has the technology to use fines. But, SAIL, which has deposits of iron ore fines to the tune of 196.50 lakh tonne, and Usha Martin, which has around 18 lakh tonne, do not possess technology to use them.

Source : telegraphindia.com