India’s Supreme Court on Wednesday, August 16, ordered that all auction of iron ore mines in the southern state of Karnataka should be stopped until such time the state government submitted to it a list of all “category C” mines that are no longer viable and have to be closed down.
Category C mining leases were classified based on the level of illegalities in operating these mines at the time when all mining operations in Karnataka were banned by the Supreme Court in 2013. The ban was subsequently lifted with the court imposing an annual ceiling of 30 million mt from all iron ore mines in the state.
In its latest ruling, the Supreme Court has directed that Category C iron ore mines in Karnataka state which are not economically viable should not be put up for auction after the redrawing of boundaries of mining leases.
According to court presentations, as many as 20 of the total of 50 Category C iron ore mines could be closed down immediately as they are not commercially viable. Until such time as the Karnataka government submits a formal list of all Category C mines to be closed down, the government has been directed to stop the auction of any mining leases in the state.