Kudremukh & KIOCL - A Recent History

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In early July 2000, Union Steel Minister Braja Kishore Tripathy met Karnataka Chief Minister S. M. Krishna in Bangalore to discuss the issue of a long-term mining lease for Kudremukh Iron Ore Company (KIOCL) to speed up the privatisation of the company. Mr. Tripathy wanted the Chief Minister to de-notify all the areas where KIOCL was presently mining and also those in which it intended to expand its operations, from the Kudremukh National Park. If this was not done, then the dis-investment proposal of the company that the Ministry of Steel has been actively considering, would be futile.

Earlier in the year, to be precise 31 March 2000, Mr. N. K. Singh, the Prime Minister's Secretary wrote to Chief Secretary of Karnataka, Mr. B. K. Bhattacharya, urging that the grand expansion and dis-investment plans of KIOCL be cleared of all hurdles. He stated that "the future growth of KIOCL is inextricably linked to the decision to extend the existing mining lease at Kudremukh and grant of new lease in the adjoining areas" and thus requests that the State Government should:

i. "Expeditiously conclude the process of final notification of the Kudremukh National Park, and exclude all the survey numbers held by KIOCL, under mining lease from the Kudremukh National Park area;
ii. Renew the existing mining lease at Kudremukh of forest land already broken up in favour of M/s KIOCL, for a period of 20 years w.e.f. 25.7.99, and
iii. Grant the prospecting licence for Gangrikal Deposits and mining lease for Nellibeedu Deposits"

The mind of the Union Government was clear. KIOCL must be saved, whatever the cost. The devastating impact of mining in the Kudremukh forests, a rare and invaluable habitat, a critical watershed in the Western Ghats and supporting the livelihoods of millions of people downstream of the Bhadra, Tunga and Tungabhadra, was completely ignored. Such context demands a public outcry to save Kudremukh forests.

To enable this we prepared a note,"'White Elephant' in a Green Forest" that includes a Fact Sheet on Kudremukh. In this note we explain the incredible importance of saving Kudremukh forests. We analyse the historical mistakes that helped create the inherently uneconomical KIOCL. We argue that alternatives exist that will save the Kudremukh forests and KIOCL - the only thing that needs to be sacrificed is the capital assets created by the miner in Kudremukh, and the frenzy of the Government to demonstrate they are foreign investor friendly. And the result of all this would be that KIOCL can mine for much longer than 20 years if only they relocated to Sandur. Thus, Kudremukh forests will be secure, and the rivers and wildlife habitats will remain for posterity to cherish.

This note may be freely reproduced in any form or publication, and we will be happy for due accreditation.

Hoping that our combined action will help save Kudremukh, we remain,

Yours sincerely,

Leo F. Saldanha, Robert John, Bhargavi S. Rao and Manu Mathai
Environment Support Group ®


Research support:

K. R. Mallesh and Ranjini Thomas of Environment Support Group and Poornima Hatti of National Law School of India University.

References:

1. Annual Reports of Kudremukh Iron Ore Company Limited. 1976-78, 1979-1989 & 1990-1999.
2. All Government Documents quoted are from inspection of original copies.
3. Hussain S. A., & Achar K. P. Eds. 199. Biodiversity of the Western Ghats Complex of Karnataka : Resource Potential and Sustainable Utilisation. Biodiversity Initiative Trust, Mangalore, p. 253
4. Biodiversity in the Western Ghats - An Information Kit; WWF-India et. al., 1994.
5. Radhakrishna, B. P., 1996. Mineral Resources of Karnataka, Geological Society of India, Bangalore.
6. Press Reports

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