The suspension of mining activities in almost 50 mines in Karnataka following the direction of the Supreme Court, which is hearing a case on illegal mining, has caused iron ore shortage in south India.
A large number of sponge iron manufacturers and small steel mills are on the verge of closure. Many of these have already shut shop. Based on the recommendation of the Central Empowered Committee (CEC), out of 99 mining leases, the apex court has ordered the shutting of 40 mines in the Bellary, Hospet and Sandur (BHS) region. For 2011-12, steel, pig iron and sponge iron units collectively require 45 million tonne (mn t) of ore, while the present availability is limited to about 24 mn t, which is 48 per cent of the state's total output. JSW Steel alone requires 27 mn t for its plants in Karnataka, Tamil Nadu and Maharashtra.