The Times of India July 19, 2000

Decision on mining lease to KIOCL put off

BANGALORE: Chief Minister S.M. Krishna's meeting with Kudremukh Iron Ore Company Limited (KIOCL) on Tuesday to decide the fate of company remained inconclusive, with the government postponing the decision on renewal of the mining lease ``by a day or two".

Speaking to The Times of India, KIOCL Executive Director (Personnel and Administration) K.V. Thyagarajan said the company had explained its position and had outlined the need for the renewal of the lease to Krishna. ``We have just asked for the existing mining area of 1,452.74 hectares of land, and about 100 hectares extra to ensure safety measures against land slides,'' he stated.

Meanwhile, the environmentalists have appealed to the CM in a letter, copies of which have been sent to the Union Environment Minister T.R. Balu, to save the area around the Kudremukh National Park. They have suggested that the KIOCL should shift operations to Sandur in Bellary district. ``The benefits would be more since it would improve employment opportunities in the North Karnataka area and it would help protect the Kuremukh National Park and other tiger reserves in the area,'' the letter from the Urban Research Centre says.

According to the environmentalists, the iron ore deposits in Kudremukh are of ``very poor quality,'' consisting of only 38 per cent iron while in the Sandur deposits, there is 60 per cent iron in the ore. They also point out that with 7000 mm of annual rainfall in the area, mining is ``an extremely dangerous operation'' and results in adverse impacts on a thickly forested and riverine area.