Steel companies are now importing iron ore as domestic mining has taken a hit with policy amendments and the Supreme Court's cap on the quantity of extraction, H. Noor Ahmed, President of the Federation of Indian Mineral Industries (FIMI) has said.

JSW Steel for instance imports 6 lakh tonnes a month, he said at a press conference here on Wednesday. In Karnataka, of the 160 mines that exist, only 23 are operational, and the State produces around 17 million tonnes a year while the demand is early double at 30 million tonnes, Mr. Ahmed said.

The Mines and Minerals (Development and Regulation) Amendment Act 1957 has made the process of acquiring licenses and clearances tedious, he said. The level of exploration in India is "far below" that of other mineral rich countries, such as Australia, Canada, Brazil and South Africa.

Although iron ore production in India has traditionally been “export fed”, in the first quarter of this fiscal year, India exported just 1.9 million tonnes - a 41 per cent drop since last year - thanks to export duties, he said. While the consumption of metals in the country is among the lowest in the world, it is likely to increase four or five fold in the next fifteen years, underscoring the need to “accelerate mining activity”.

FIMI will be holding its three-day annual “Mining exploration convention and trade show” starting Thursday. Around 300 delegates are likely to attend the convention at the Bangalore International Exhibition Centre here. Union Minister of Mines, Steel and Labour Narendra Singh Tomar will inaugurate it.

Source:- thehindu.com