The court balanced industrial needs for raw materials with environmental conservation by extending a mining ban and requiring EIA studies and reclamation plans as prerequisites for the release of extracted mineral stocks.

Headnote:(A) Environmental Law and Mining Regulation - Extension of mining ban to additional districts based on committee reports - Balance between industrial requirement for raw materials and environmental protection - Requirement for reclamation and rehabilitation plans prior to release of extracted minerals - Necessity of macro-level Environmental Impact Assessment (EIA) studies. (Paras i, v)

(B) Asset Management and Revenue - Sale of extracted mineral stocks to be managed by a government agency - Requirement for maintaining accounts of sale proceeds, including royalty payments. (Para iv)

Facts of the case:
Based on a report and lease-wise information, a ban on mining was extended to additional districts. A significant stock of extracted iron ore was available. The court sought to determine the quantity of this stock that could be released to ensure the steel industry is not starved, contingent upon the submission of reclamation and rehabilitation plans.

Findings of Court:
The court extended the mining ban and the order for survey and demarcation to additional districts. It also mandated a macro-level EIA study and reclamation plans for these areas. The release of mineral stocks is subject to inputs from affected parties, lessees, and the petitioner regarding quantification, sale modalities, and transportation.

Issues: Whether the mining ban and environmental studies should be extended to additional districts and the determination of the quantity of mineral stock to be released for industrial use.

Ratio Decidendi: To maintain ecological balance while preventing industrial starvation, the release of extracted minerals must be regulated through formal reclamation plans, a government-managed sales process, and defined royalty payments.

Result: Ban on mining extended to specified districts; matter adjourned for further inputs on stock release and EIA study.

Legal Category Hierarchy

Judgment :

I.A. No.22 C.E.C. Report dated 18th August, 2011:

On going through the Report of Central Empowered Committee [`CEC', for short], we extend the Order passed by this Court on 29th July, 2011, to the mining leases in Districts Tumkur and Chitradurga. Consequently, pending further orders, there will be a ban on mining in Districts Tumkur and Chitradurga.

[ii] According to the CEC Report, which is based on lease-wise information compiled by the Department of Mines and Geology, Karnataka, a stock of 25 million tonnes of iron ore extracted from various mining leases in Districts Bellary, Tumkur and Chitradurga is available. The question is, how much quantity could be released from the existing stock of 25 million tonnes of iron ore so that the Steel Industry is not starved. We have requested the learned Amicus Curiae and learned Attorney General to submit to this Court the quantity which could be released from the existing stock of 25 million tonnes of iron ore, subject to reclamation and rehabilitation plan(s) being submitted. In that regard, the lessees, Association of Steel Industry and all other affected parties as well as the petitioner, will submit requisite inputs to CEC within two days from today so that the quantity to be released from the existing stock could be decided by this Court. Needless to add that, apart from the quantification of the stock to be released, the modalities of sale and transportation of such stock will also be formulated and submitted to the Court on the next date of hearing. For that purpose, place the matter on 2nd September, 2011.

[iii] By Order dated 6th May, 2011, we had directed the Joint Team to carry out survey and demarcation of 99 mining leases in District Bellary. We direct that the said Order shall also stand extended to the mining leases in Districts Tumkur and Chitradurga and for the remaining mines in District Bellary.

[iv] On the next date, i.e., 2nd September, 2011, CEC will also furnish to this Court the name of the Government Agency which would be in-charge of effecting sale(s) of the existing stock and keeping Accounts of the sale proceeds [including royalty payable at the rate of ten per cent of the market price].

[v] We also hereby extend our Order dated 5th August, 2011, to the Districts of Tumkur and Chitradurga, by which we had directed ICFRE to undertake macro level EIA study in respect of district Bellary and to submit reclamation and rehabilitation plan. Consequently, the said order shall equally apply to the Districts of Tumkur and Chitradurga.

(vi) Subject to above, place the matter on 16th September, 2011.

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