The Supreme Court of has asked the state government of Karnataka to lift the ban on export and transportation of iron ore from April 20, 2011.
The ban was initially implemented for a period of six months by the state government to help curb illegal mining activities. Justice R V Raveendran and Justice A K Patnaik passed the interim order on Tuesday in New Delhi.
The ban on exporting iron has had severe repercussions for the mining industry in Karnataka. It affected about 100 mining operations in the state and about 100,000 people employed at these mines were also affected. The international price of iron ore also was pushed up as a result of the lack of availability of iron ore for export.
Mining companies in Karnataka, including MSPL Ltd, Sesa Goa Ltd, SB Minerals and Mineral Enterprises Ltd, moved the Karnataka high court challenging the constitutional validity of the government’s move last year, but lost the case in November, following which they filed a petition in the Supreme Court.
The lifting of the ban is an interim measure while the case is heard in the Supreme Court. The next hearing of the case has been scheduled for the first week of May. The state government has been given two weeks to implement the new mechanism it has decided to put into place to track legally mined ore and crack down on illegal mining.