BANGALORE: The Central Empowered Committee (CEC) in its report on illegal mining activities in the state had stressed on the need for a feasibility study for environment-friendly underground mining technology, as current techniques have caused considerable damage to human habitat.
The report, a copy of which is available with Express, will be submitted to the Supreme Court on February 10, 2012. The report adds that nearly eight billion tonnes out of the 10 billion tonnes of magnetite ore reserves in the nation are available in Karnataka.
A joint team which conducted the study has stated that the optimal value of the ore needed consideration and not just its monetary value. The team which surveyed mining leases in the districts of Bellary, Chitradurga and Tumkur found many violations and had recommended action, depending on the nature of offence by the lessees.
In their survey the team has claimed to have e-auctioned 10.972 million metric tonnes (MMT) in 18 e-auctions held till January 6, 2012, which netted a total of `2,693.87 crore.
This also earned a royalty of `323.26 crore, calculated at 10 per cent towards Forest Development Tax. The team has pointed out that the average iron ore was sold at `2,455 per MMT.
The mining leases have been classified into two categories - A and B. In Category A, 80 per cent of the sale proceeds would be reimbursed to the lessees and the remainder retained by the monitoring committee.
In the other case, sale proceeds would be reimbursed after deducting penalty/compensation payable by the lessees and 10 per cent held back by the monitoring committee.