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The Supreme Court on Monday declined to interfere in the Karnataka Government's move to bring out norms to stop illegal mining in the State.
It was hearing the plea of mining companies such as Sesa Goa and MSPL against the State's decision to regulate mining.
The State Government informed the court about the notification of Karnataka Prevention of Illegal Mining, Transportation and Storage of Minerals Rules, 2011 (from this April 1) and its implementation.
The mining companies claimed that though they had applied to the State Government for permit to transport iron ore, their applications were kept pending.
However, the apex court said since their petition before it was regarding the original order of the State Government (that is on the iron ore export ban imposed last July), they could approach the Karnataka High Court if they want to challenge the subsequent rules (concerning permit to transport iron ore).
In April, eight months after Karnataka stopped iron ore exports, the apex court had passed an interim order which, in effect, lifted the ban. That order had come into effect from April 20.
The Karnataka Government had earlier said that even after the lifting of the ban, exporters will have to comply with the new regulatory mechanism. The new rules stipulate that minerals have to be transported only under a valid mineral despatch permit. The rules also make it mandatory for permit holders to file monthly returns which shall be reconciled on a quarterly basis.
Vehicles transporting minerals have to be fixed with Geographical Positioning System and radio frequency identification devices.
Meanwhile, sources said the State Government is yet to allow issue of mining despatch permits for exports. It is learnt that the State is waiting for the Central Empowered Committee to complete the ongoing survey of mine leases to allow exports. The mining industry is hoping that exports from the State will resume soon.
Karnataka is among the top three producers of iron ore and accounts for a third of the country's exports of the commodity used in making steel. Following the ban, India's iron ore exports slumped about 20 per cent to 95 million tonnes in 2010-11 from the previous year's 117 mt.
The Federation of Indian Mineral Industries expects the downward trend in exports to continue this fiscal too. For the current fiscal, FIMI expects iron ore exports to be in the range of 70-75 mt.
On July 26, 2010, Karnataka had imposed a ban on iron ore exports from the State's 10 minor ports to check illegal mining. It had also prohibited the movement of the iron ore for exports by restricting the issue of despatch permits on July 28 last year.
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