Upon the petitioning of India's Attorney General Goolam E Vahanvati indicating that the steel industry in the state of Karnataka and surrounding areas will be negatively affected by the ban on iron ore mining, the Supreme Court of India has announced its decision to allow state-run miner National Mineral Development Corporation (NMDC) to resume mining at two of its iron ore mines in the district of Bellary in Karnataka state. Accordingly, NMDC will be able to mine up to one million mt of iron ore per month.
NMDC will also pay royalties to the state of Karnataka on the basis of 10 percent of the current market value of the iron ore. The company is not allowed to export outside India until further notice. NMDC will sell its output to other states in India in consultation with the Indian Ministry of Steel.
However, the Supreme Court refused to allow mining by privately-held mines, stating that it has not cancelled leases but has suspended mining until a detailed report on the issue is released.