SECTOR PROFILES
| Mines & Minerals Sector |
Minerals are important natural, finite and non-renewable valuable resources essential for mankind. “Minerals are the treasures of the State”, therefore, systematic, scientific and sustainable harnessing of mineral wealth should be the cornerstone of development objectives of the State. The utilization of these minerals has to be guided by long term goals and perspectives.
Karnataka is one of the mineral rich States in India, with an area of 1.92 lakh sq.km. covering 29 districts. The state has a vast and varied Geological setting right from Precambrian to recent formations, with 40,000 Sq. Kms of green stone belts endowed with valuable mineral resources like gold, silver, copper, iron, manganese, limestone, dolomite, chromite, magnesite and other useful rock formations like granite etc. There is great potential for exploration with the state-of-the-art technology for gold, platinum, precious and semi-precious minerals. Similarly, there is immense potential in the State for exploration for refractory and ceramic minerals.
The State is having the distinction of adopting a progressive Industrial development programme and has announced the creation of steel and cement zones. To meet this need sustainable development of mineral based raw materials has become very critical.
Present Potential
- Karnataka has the second largest number of Bauxite mines.
- The State is the third largest producer of Steel in the country.
- Hutti Gold Mines in Raichur District, is the only Gold producing mine in the country.
- 30% of India’s total Limestone reserves are located here.
Present Mining Activity
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The Kolar Gold Field was the earliest gold mine to be worked systematically but is now closed for economic and technical reasons. The Hutti Gold Mines in Raichur district is the only gold producing mine in the country now with an average annual production of about 2.8 tonnes. |
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The State has over 9,000 million tonnes of iron ore resources, the bulk of which is magnetite. The production during 2007-08 crossed 47 million tonnes. The production is mainly concentrated in Bellary/ Hospet area with the balance from Chitradurga, Tumkur and Bagalkot districts. Most of the iron ore fines are exported as very few of the steel, sponge and pig iron plants have sintering and pelletisation plants. |
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Lime stone is another important mineral resource in the state with an estimated resource of 51,000 million tonnes spread across the districts of Gulbarga, Bagalkot, Belgaum, Chitradurga, Tumkur, Shimoga and Uttara Kannada. Present production of about 14 million tonnes sustains 10 existing cement plants in these districts. There is scope for establishing a few green field cement plants for optimum utilization of this mineral without sacrificing environmental concerns. |
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State is also producing minerals like Chromite, Kyanite, Dolomite, Magnesite, Bauxite, Felsite, Dunite, and Quartz.
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Karnataka state is bestowed with vast resources of granite deposits. These granite deposits had brought the Karnataka State into the international scenario. It is essential to bring back the glory to the granite industry of Karnataka by way of initiatives in the current mineral policy. Total granite production for the year 2006-2007 is 1.96lakhs cu.m. |
Karnataka State Mineral Policy 2008
Karnataka State has the distinction of being one among very few States in the country to formulate a forward looking mineral policy in the year 2000 itself. This policy included progressive features like adoption of modern techniques in mining, transparency in granting mineral concessions, emphasis on value addition etc. With the ushering in of the regime of economic reforms and opening up various sectors including mining sector, Karnataka State has achieved significant strides in various economic indicators.
Mineral development as it exists now, marketing trends, encouraging future prospects and mounting demand for mineral based raw materials call for a review of mineral policy in the State. State Government has embarked on formulating the policy to ensure that mineral resources not only sustain this as a stand alone industry but also provide fillip for further expansion of value addition needs.
Mineral Based Industries
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Mining as a stand-alone industry needs to be encouraged as it provides large scale employment. It creates value by converting a resource into a product. |
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New mineral based industries should be set up to match the available raw material resources. |
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Existing and new industries should set up facilities to bring the available raw materials up to the required specifications by processes like beneficiation, pelletisation and sintering. |
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These industries will generate more employment and spawn auxiliary industries. |
Mining and Environment
To facilitate and ensure sustainable development of mineral resources in harmony with environment, a comprehensive view on land use will be taken keeping in view the needs of development as well as needs of protecting the forest, environment and ecology. Compliance of Environmental laws by miners will be enforced through the Department of Forest, Ecology & Environment.
Attempts will be made to utilize mine wastes and also promote the concept of zero waste mining to minimize the impact on environment.
Western Ghats is covered by thick evergreen forest with rare species. The area is ecologically fragile. Western Ghats have influence over the rainfall pattern of the State. However, carrying out survey and exploration to discover mineral resources will be allowed without disturbing ecology, as in future with advanced methods of mining, it may be possible to extract minerals with minimum damage to the forest.
Areas with thick vegetation in the Western Ghats which need to be preserved will be clearly demarcated by the Forest Department, and will be declared as ecologically sensitive areas.