Machines caked with sand stand idle, the factory area is silent with just a few workers watching over the yard – till a few months ago, the unit processed mineral-rich beach sand to extract ilmenite for exports.
In August last year, the Tamil Nadu Government banned beach mineral mining across the State on complaints of illegal mining.
The Government ordered an enquiry into the allegations and said it will take a policy decision based on the findings.
A group of journalists were at VV Mineral’s factory near Tirunelveli on a tour organised by it. VV Mineral, with a business of about ₹1,200 crore, is the largest of the mining companies accounting for three-fourths of beach mineral mining activity in Tamil Nadu.
Over 20 companies involved in beach mineral mining have been shut down following the ban and thousands of jobs lost – over 50,000, according to industry estimates.
VV Subramanian, Managing Partner, VV Mineral, said the ban has handicapped the domestic industry. The industry generates over ₹3,500 crore in foreign exchange. It is a strictly regulated industry under the purview of multiple departments in the Central and State Governments.
Paul T Raja, Operations Head, VV Mineral, said the industry is hoping that the Tamil Nadu Government expedites the report.
The enquiry, headed by the Revenue Department, has been completed in Tirunelveli, Kanyakumari and Tuticorin districts, which account for most such mining in the State.
The industry has urged the State Government to take a decision soon. Those who have done wrong will have to be punished but the entire industry is suffering. VV Minerals alone employs over 15,000 workers apart from providing indirect jobs for transporters and other service providers, he said.
VV Minerals, a 100 per cent export-oriented unit, processes beach sand for minerals such as garnet, ilmenite, rutile and zircon.
This finds application in a wide range of industries including food, pharma, abrasives, ceramic and paint industries.
With Tamil Nadu, the major producer, out of the picture, other exporters based in China and Australia are benefitting. The State Government is also losing out on annual revenues of ₹200 crore in royalty apart from taxes, he said.
The writer was in Tirunelveliat the invitation of VV Minerals.
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