The Karnataka Government's ban will impact Indian iron ore exports, but is unlikely to help curb illegal mining prevalent in the State, say mining industry sources.

The BJP Government on Monday imposed a ban on export of iron ore from the ten minor ports in the State, including Karwar and Belikeri, as part of its move to tackle illegal mining.

Announcing the ban on exports in New Delhi on Monday evening, the Karnataka Chief Minister, Mr B.S.Yeddyurappa, had said the ban would remain till the completion of ongoing probe by Lokayukta into illegal mining in the State. Karnataka is one of the largest producers and accounts for a third of the country's iron ore exports of a little over 100 million tonnes.

‘An eye-wash'

“It is just an eye-wash,” industry sources said, adding that the ban could affect exports, which are on the decline because of a fall in demand from China, the largest importer of iron ore. Also, the ban could result in direct job loss of around 5,000, mainly in the low-skilled sector. The indirect job loss could be around 20,000, they added.

Unhappy with the development, miners and exporters said the State Government should have found a long-term solution to prevent illegal mining rather than imposing a ban on exports.

“The State Government has no jurisdiction to ban exports. It could be challenged in the court,” an exporter from Bellary said. “The mining activity is at a low due to the prevailing monsoons and the decline in Chinese demand. We will have to wait and see the impact till mid-September, when the monsoons come to an end, to feel the impact,” he added.