SC ban on Bellary mining hits steelmakers hard

Steelmakers in many parts of the country have been affected by the Supreme Court order on Friday (See: Supreme Court imposes ban on iron ore mining in Bellary) banning mining in the eco-sensitive Bellary district of Karnataka on the Andhra Pradesh border, combined with the Karnataka government's existing ban on transportation of ore.

Among those hardest hit are companies operating in the region, like JSW Steel and Kalyani Steel.

Goan iron and steel units are also staring at a shutdown. To tide over the crisis, some units are in the process of procuring ore from local suppliers.

Industries committee chairman of the Goa Chamber of Commerce and Industries (GCCI) Pankaj Jain said, "As Goan units are dependent on ore from Bellary, stock with these units has reached critical levels and the units are facing the prospect of a shutdown."

Sesa Goa, Aprant Iron and Steel, Goa Sponge, Shrada Ispat, Shritik Ispat and Ambe Metallics Limited are the units affected by the halt in iron ore supply.

"We are now trying to make use of ore from Goa itself," Sesa Goa managing director P K Mukherjee told The Times of India. "Though it is far from ideal, low grade ore can be used. Transportation of ore to the steel units is a big issue," he said.