New Delhi, Mar 25: Faced with closure of its mining operations, state-owned Kudremukh iron ore company has started scouting for fresh mines in Karnataka and other states as part of a strategy to ensure survival.
The iron ore major has approached the state government for fresh mining leases in the southern state after the Supreme Court ordered that its existing mining lease would not be extended beyond 2005. Company sources pointed out that the PSU was keen on acquiring new mines in Ramandurga region in Western Ghats as the same would be cost-effective since the company would not have trouble in shifting existing operations out of Kudremukh area.

A change to another state would imply a loss of ancillary employment and flight of capital away from the state.

Also, establishing new mines in another state would involve not only relocation of manpower but creation of new infrastructure.
They pointed out that the company was also pursuing other state governments for mines in the event of failure of its efforts with Karnataka government.

The company was seeking new leases in states like Orissa where preliminary discussions have been held. In Andhra Pradesh, the company was scouting for leases in Ongole area.
Sources said that the Karnataka government was yet to act on the application which has been pending for almost two years.

Bureau Report