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Journalism of Courage
The Justice M.B. Shah commission that was tasked with looking into the illegal mining of iron and manganese ore,in its first interim report,has suggested a ban on exports of the ores in order to conserve the minerals for posterity. The commission is of the view that the mining mafia is plundering natural resources and making unimaginable profits and could use this money to influence state policy. A ban,till things are streamlined and illegal activities controlled,would help the growth of steel plants and generate employment for locals.
However,the very idea as endorsed by various political parties since the Karnataka mining scam that captive mining licences be given to steel plants for converting the ore into steel and thereby increasing profits and tax revenue,is based on an incomplete understanding of mining best practices. This argument,like the Justice Shah commissions report,conflates the two issues of illegal and commercial mining. While its true that commercial mining,with its eye to profit,prioritises exports,how else would the mining sector get the resources necessary for investment in technological upgrade and good extraction practices? For example,in 1980,India had 11.5 billion tonnes of iron ore reserves as compared to Australias 15 bn tonnes. In 2005,India had 13.8 bn tonnes while Australia had shot up to 40 bn tonnes. Without the technology and expedient that professional firms bring,mineral resources cannot increase substantially because capital investment cannot be made in new explorations and existing mines.
