Ballari mined over by greedy politicians

Ballari region (above) of Karnataka was once the top exporter of iron ore before the Reddys entered politics.

For nearly five decades, the Ballari district (earlier known as Bellary) was the top exporter of iron ore to the global market from Karnataka, but ever since the Reddy brothers ventured into mining, subsequently leading to innumerable scams and resultant ban on the overseas sales, the district is almost off the map of high grade iron ore producers in the world.

"The iron ore available in Ballari is of high grade (65 per cent ferrous content) and is traditionally exported to China, Japan and South Korea. The iron ore mined in Ballari district commanded a premium in the spot market (sales conducted on same day) and for long-term leases. But today, miners are struggling to find suitable buyers let alone stabilise exports," remarked T. Hanumanthaiah, a retired geologist of the state government.

The Ballari district and the adjacent Koppala and Chitradurga districts, have rich deposits of high-grade iron ore estimated at 2.5 billion tons. Since 1999, the private sector, along with the public sector, exported iron ore to the global market, till 2010. In 2005, the exports of iron ore from Karnataka accounted for 30.4 per cent (approximately 30 million tons). Today, that figure is at an astonishingly low at around 3 million tons per annum.

Several miners alleged that the mining economy of Ballari district was greatly disturbed when miners, like Reddys, entered politics. The large-scale mining scam, which cost the Indian government whopping losses of Rs 16,000 crore, followed by the ban on export of iron ore imposed by Karnataka in 2010 and subsequently by the courts owing to environmental degradation, had a long-term impact on the region.

Over the last five years, nearly 150,000 mine labourers lost their jobs while owners of more than 65,000 trucks that transported iron ore roundthe-clock from the mines to ports incurred huge losses. Though mining resumed partly, only a handful of the 116 leases are under operation.

"All was well with mining in Ballari till a few people became politically greedy and controlled the sale of iron ore. Till date, miners and those dependent on it for livelihood are suffering for a few politicians. It will take at least another 2-3 years for mining to resume on a large scale. But Ballari can never return to its old glory," lamented H. Wadeyar, a leading exporter of iron ore.

Already, India's position as one of the leading iron ore exporters to the global market has severely weakened. China is now relying extensively on iron ore supplied from nations, such as Australia and Brazil. Smaller nations, such as Iran and Indonesia, have overtaken India in supplying ore to China.