Recently, the Union Mines Minister has admitted the existence of thousands of illegal mining of major and minor minerals in the country. The fraudulent miners take the advantage of non effective enforcement of laws and a well build nexus with elite bureaucrats and mafia politicians. The illegal mining is a matter of concern as it has huge ramification over economy, environment and livelihood of locals.
The Karnataka lokayukta report, 2010, and Justice MB Shah Commission report 2014, and Vigilance report on iron ore mines in Karnatak, Goa and Odisha have revealed the continuance of huge illegal mining in a number of ways. There were mines without mandatory environmental clearance and operating close to protected area; mining operation taking place beyond the permissible area; lack of pollution control measures and under reporting of quantity of extraction of ores and its value; irregularity in filing returns to Government leading to under payment of royalty to State, and even many of the mines in operation without renewal permit. The States of Jharkhand ,Goa and Odisha have not yet submitted the latest action taken report to the coordination cum empowered committee headed by Union Mines Secretary.
It has been estimated by the Shah Commission and other agencies that due to illegal mining the mineral bearing States including Odisha have lost royalty worth hundreds of crores of rupees. The mining areas in the States have witnessed deforestation, pollution of land, water and air and its damaging impact over the local people’s life and livelihood. The easy way of black money earning through illegal mining has paved the way for all other related illegal activities and encouraged anti-social elements. It has also impacted over elections to Parliament, Assemblies and local bodies and weakened the democratic institutions of governance in many ways which put a big question mark on effective governance and representative democracy.
Odisha having deposits of iron ore, manganese and chromite, which are very important basic minerals, requires modern infrastructure and industrial development, having an international market. Iron ore deposits are available in countries such as China, Australia, Brazil, India, Russia, South Africa and USA, etc and in India deposits are found in Goa, Karnataka, Odisha, Jharkhand and Chhatisgarh and Andhra Pradesh. Odisha has deposits of iron ore in districts of Keonjhar, Sundergarh and Mayurbhanj. The iron ore mining in Odisha dates back to 1910 in Gorumahisani in Mayurbhanj when lease was given to Tata by the then king of the Mayurbhanj State. The lease was awarded almost without royalty. In the post independent era, the lease holders include State and Centre owned public sector companies such as SAIl and OMC and private companies for both captive and export purpose and the rate of royalty has been very minimal even with the increasing demand for iron ore and its sales price. The minerals from Odisha such as iron ore and chrome ore are being exported to China, Japan, Malaysia, Singapore, Spain, Australia and UAE. The metallurgical products such as pig iron, sponge iron, ferro chrome, ferro manganese, charge chrome and aluminum are exported to China, Japan, South Korea, Taiwan, Vietnam, USA, Russia, Spain, Canada, Iran, UK, and Germany from the Paradip port of Odisha.
Along with India other countries are also featured as world’s top-20 steel producers. As reported in Odisha economic survey, the total export value of minerals and metallurgical products exported from Paradip port was Rs 1,122,428 lakh for the year 2013-2014.The production value of iron ore for the year 2013-2014 was Rs 25,867 crore with production of 78 lakh MT. China has been the biggest producer as well as importer of iron ore.
The issue of illegal mining export came more visibly in the State with the capsize of Black Rose ship in Paradip coast which is still lying deep in the sea water for last six years loaded with 24,000 metric ton of iron ore. The ship and the consignment go unclaimed till date. After the Shah Commission of inquiry, the State Government suspended 128 mining lease of iron ore, chrome, manganese and limestone mines and also cancelled 482 licences for trading and storage of minerals as action against illegal mining.
The closer of mining in the iron ore belt has affected local employment and transporters of minerals in the absence of alternative sources of income in the area. In spite of un-sustainability, still mining has a source of employment and income. This has encouraged huge distress migration of the locals in search of job to other places.
During last hundred years of mining, the iron ore bearing area become desert like and the natives have been displaced and lost their livelihood without development. The mafias have taken control of the areas with all kinds of illegal activities including theft and pilferage of mineral resources with active support of politician–bureaucracy nexus.
The iron ore bearing areas are backward ex-feudal States ruled by kings where a vast majority of locals are Adivasies who are mostly illiterate, unorganised and almost unaware about the happening in their area. Their leaders are co-opted by ruling parties with reserve seats. Many of the protective laws, rights and entitlements are not being implemented in the interest of the locals and their basic issues remain unaddressed .The natural sources of their livelihood, language, culture and identity have slowly been destroyed to make them refugees in their own land. Their vulnerability has been used to make them lowly paid workers of mining.
It has been always told by every one that Odisha has mineral deposits but it was equally important to tell in which way these resources are being used for the people. Histrionically the post independent legal provisions of mining sector with Central control deprived the mineral bearing States of getting genuine royalty as an important source of non tax revenue. The States also have been ineffective in management of mineral revenue administration.
In the changing trends in the mineral sector with liberalization and centralisation, Odisha should focus on three major areas suh as (1) collection of royalty by minimizing undervaluation and reporting of mining companies (2) managing environment during mining and post mining, (3) employment and livelihood of local people.
The Government has to ensure that the miners strictly follow the environment management plan, submit annual environment audit statement, stress on forest and local area development, employment for local people and their livelihood. The huge loss of forest, water bodies, land and ecology should be regenerative with all efforts as per rules laid down in the mineral concession rules.
The MMDR Act amendment has provisions of power to States to control illegal mining by setting up special courts with power of Court of Session. All offence under the MMDR Act will be subject to a maximum punishment of five years imprisonment or fine of Rs 5 lakh per hectare. There are also a number of new commitments by provision of law such as compensatory afforestation programmee, corporate social responsibility and District Mineral Foundation which also require high level of Government attention for effective implementation in the interest of the people. While controlling illegal mining, the synergy of the whole process should affirmatively contribute to bring positive change in the quality of life of the local people, mining workers and others affected and displaced by mining activities for inclusive development of the State.
(The writer is a researcher and rights activist, who can be mailed at manasbbsr15@gmail.com Mob -9437060797)