From April 20 this year, mining companies from India's southern state of Karnataka will be able to resume iron ore exports, with the state government slated to lift a ban imposed on iron ore overseas shipments, as directed by the Indian Supreme Court, Indian media reports state.
The court has given the Karnataka government 15 days to put in place the required infrastructure to check illegal mining in the state, saying that after April 20 the order on the ban will be null and void.
As SteelOrbis previously reported, in July 2010 the government of Karnataka state, which accounts for a quarter of India's iron ore exports, banned iron ore exportation from 10 ports for a period of six months, as a measure against illegal mining and to preserve raw material for local steelmakers. However, the period has lapsed and the government is still not issuing permits to transport the iron ore extracted from mines, the local mining companies said.
The world's third largest iron ore supplier, India's exports of iron ore dropped 18.6 percent year on year to 10.137 million mt in February - a drop for the eighth straight month because of the ban on shipments by Karnataka state. In April 2010-February 2011 inclusive, India's iron ore exports also declined by 17.98 percent year on year to 85.43 million mt.