Karwar: Breaking a 13-year impasse, confiscated iron ore from Karwar Port is now en route to China for export. The iron ore, along with other minerals intended for China, was seized by the Mines and Geology Department 13 years ago due to alleged illegality.
Following the subsequent court case, an order was issued banning the export of ore from Karnataka altogether. As a result, the iron ore and other minerals remained stranded at Karwar Port, unable to reach their intended destination in China.
However, after obtaining necessary permissions from the local court and undergoing an auction process, these items are finally being shipped to China from Karwar Port. This marks the long-awaited resumption of iron ore exports after the prolonged 13-year wait.
Out of the total 1.15 metric tonnes seized by the forest department, approximately 37,320 metric tonnes of iron ore have been granted court approval for export to China. It’s important to note that only iron ore is being exported in this particular process, while the remaining minerals will remain at the port until the case is fully resolved.
The seizure of iron ore occurred in 2010, and the stockpile has remained at Karwar since then. Unfortunately, approximately 50,000 metric tonnes were reported stolen the following year, prompting a case to be registered and mining companies to seek court intervention for the disposal of the remaining ore.
Recently, the court authorised the auction of 32,000 metric tonnes of ore. However, despite the court order, there was limited interest in purchasing the material from prospective buyers. Eventually, a Maharashtra-based company expressed interest and won the tender to collect and export the iron ore to China, leveraging its existing export license.
It’s important to note that not all minerals have been auctioned. Currently, only the ore belonging to the Raj Mahal Mining Company has been exported, while the ore belonging to the Vedanta Group is yet to be shipped.
Consequently, on May 22, 2023, the iron ore was loaded onto the vessel ‘MV Notos Ventura’ for transportation to China. The remaining two iron ore holdings, owned by the Vedanta Group, will be disposed of once the company fulfills the necessary fee requirements.
Karwar Port had a thriving iron ore export business from 2003 until 2010 when operations were abruptly halted due to allegations of illegal mining and export activities. The matter eventually reached the Supreme Court, which imposed a complete ban on iron ore exports until October 2020, leading to a prolonged legal dispute.