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SC reserves verdict on closing Kudremukh mining

By Our Legal Correspondent

NEW DELHI Oct. 25. The Supreme Court today reserved its verdict on the request of the Kudremukh Iron Ore Company in Karnataka to permit it to continue mining operations till 2006 with adequate safeguards.

A three-judge Bench comprising the Chief Justice, B.N. Kirpal, Justice Y.K. Sabharwal and Justice Arijit Pasayat reserved the judgment at the conclusion of arguments from the senior counsel for the company, K.K. Venugopal, and other parties concerned.

The closure of the mining operations had been sought in an application filed in a pending public interest litigation, highlighting the depletion of forest cover in the country and for a direction to maintain a proper ecological balance.

Mr. Venugopal submitted that the company set up in 1969, had a 30-year lease and the agreement gave it an option for extension of the mining lease.

He said the company had taken several steps to prevent pollution of the environment and to minimise the impact on it.

He said that in 1969 nobody had analysed the issue from the aspect of impact on environment.

He further said that the company had commitment to supply raw material to foreign countries till 2006 and any abrupt closure would result not only in severe financial constraints but also a loss of face for the country in the international market besides resulting in unemployment of about 10,000 workers.

He also pointed out that the Karnataka Government had said that it had no objection to the company continuing the operations till 2006. He urged the court not to pass any order which might have retrospective effect.

Earlier, the Solicitor-General, Harish Salve, amicus curiae in the case submitted that the public sector undertaking had been granted licence for mining operations in utter violation of the Forest Conservation Act, the Forest Act and the Environment Protection Act.

He said the mining activities in the National Park had caused intensive pollution in the Bhadra river.

He wanted imposition of damages on the company as suggested by the empowered committee appointed by the court.

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