India's top court on Thursday allowed more than 100 iron ore mines to resume operations in southern Karnataka in a major relief for resource-hungry steel mills that require the raw material. The court accepted the report of a central government committee which recommended that mines respecting environmental regulations should be allowed to resume.
"The court has permitted resumption of operations in 117 mines subject to compliance with the terms and conditions stipulated by the empowered committee," said Phanindra Rao, a lawyer who represented the mining industry in the case. "It is a major decision which will give a huge boost to the mining sector," Rao told AFP.
The three-judge bench of the court, however, cancelled the leases of 49 mines in the state over large-scale irregularities. India's Jindal Steel welcomed the court's order, saying it had come "at a time when the steel industry was at the brink of closure due to non-availability of iron ore". All mining activities were banned in 2011 in Karnataka - home to some of the country's biggest deposits of iron ore - after companies were accused of conniving with government officials to mine ore illegally. The scam cost the state and federal exchequers $3.6 billion, a corruption ombudsman said, and state chief minister B.S. Yeddyurappa, accused of playing a central role, resigned after the scandal broke.