India’s Supreme Court on Friday, May 20, lifted the ban on export of iron ore from mines in the southern state of Karnataka subject to conditions laid down by the government, court reports said.
The Supreme Court has also allowed mine operators to sell already excavated iron ore by entering into direct contracts with buyers without offering the ore on e-auction platforms.
A bench of the Supreme Court passed the order on a batch of applications filed by mine operators seeking the lifting of the ban on exports from mines in Karnataka imposed in 2011 after finding rampant violations of mining rules.
“We're in agreement with the stand of the Union of India that it is necessary for mines in Karnataka to be on a level playing field with others in the country. The time has come to review the system put in place for iron ore in three districts. Ever since e-auction has been the only option and has worked so far. The situation has now changed for the better. As regards the course of correction for environmental damage, we are of the opinion that the order dated 23/9/2011 deserves to be relaxed. It is submitted that consecutive e- auctions have been receiving a poor response. Looking at overall change, restrictions on the sale of iron ore need to be removed,” the court order said.