Iron ore mining in Western Ghats, India: Ecological, Legislative and Social issues
Overview of Mining in India
The Indian mineral industry has a complex structure comprising large and small mines, public and private sector enterprises as well as an informal sector that covers most minor minerals being extracted in the states (Insitute for Studies in Industrial development, 2012). The public sector controls over 80% of mining in India. Economic reforms of 1993 led for the first time foreign direct investment in mining under the New Mineral Policy (appendix). About 80% of mining is in coal production and 20% in the production of gold, copper, iron, lead, bauxite, zinc and uranium. Just like in other resource rich places in the world, mining regions in India are concentrated amongst rich bio diversity zones, tribal tracts and economically underprivileged areas. The main institutions that oversee the development of mines and mineral sector in India are at the Central government level. They include the ministries of Coal and Mines, Steel, Industry, Chemical and Fertilizers, Atomic Energy, Petroleum and Natural Gas, Environment & Forests and the Labor ministry. ‘The Ministry of Mines in the Central Government has the overall responsibility of determining policies and strategies in respect of non-ferrous (aluminum, copper, zinc, gold, nickel etc.) metals. The subordinate departments within Ministry of Mines (MoM) are also responsible for survey and exploration of all minerals, other than natural gas, petroleum and atomic minerals. The MoM administers the MMR&D Act’ (Tata Energy Research Insitute , 2001). On the other hand, the mineral rights are vested in the states and not the central government.
Despite the institutional structuring, weak monitoring and opaque evaluation mechanisms have led to rent seeking behaviors, which have resulted in illegal mining. The ‘Mines and Minerals (Development and Regulation) Act has failed to address issues related to poverty, environment degradation and weak rule of law in the mining regions’ (OXFAM India, 2012). For example, in regulations concerning EIA, the applicant company is itself free to choose and make payment to the consultants, thus increasing the possibilities of manipulations in EIA report.
Most of the principles of sustainable development as outlined by Hodge have remained ignored viz., transparency in social and environmental assessment and management systems; labor and working conditions; pollution prevention and abatement; community health, safety and security; land acquisition and involuntary resettlement (due to the lack of free and informed prior consent in the Indian legislation); and biodiversity conservation and sustainable natural resource management.
Ecological issues
Western Ghats
This paper concerns with issues and debates related to Iron Ore Mining in the bio diversity rich region of the Western Ghats, which recently got termed under the world heritage sites. “The Western Ghats are second only to the Eastern Himalaya as a treasure trove of biological diversity in India. They are now considered to be the ‘hottest of hot’ spots of biodiversity. Human population density, transformations of the landscape due to industrial activities like mining emphasize the urgency of conservation of the Ghats and sustainable use of its resources” (Western Ghats Ecology Expert Panel, 2011). Contrarily, destruction of forests, large-scale erosion of topsoil, landslides, and abuse of human rights are some of the major issues overshadowing the mining industry in this region. The panel has divided the region into 3 eco sensitive zones. Mining in the first two zones is considered to be highly unsustainable and hence the panel has recommended the government to not issue any license for new mining explorations and activities. With respect to existing mining in the Zone 1 the panel has recommended for it to be phased out in 5 years, by 2016. For Zone 2, the panel has recommended existing mining to adapt to best practices in mining under strict regulations and social audits and no new licenses to be issued. The panel has allowed new mining activities only in zone 3 for scarce minerals that are not available on the plains.
Iron ore mining
India is the sixth richest country in the world in iron ore resources. In context of the Western Ghats, there do exist legal mining operations in North and South Goa out of the 213 mines operating in the iron ore sector in India About 55% of these are owned by PSUs. The fluctuation in production of iron ore is usually dependent on the demand from China and has a high value in the export market resulting in huge profits for the companies. The main reason behind this has been China’s acceptance of low-grade quality of ore, which ‘revived old mining concessions into leases, all operated by private firms. In the Economic Survey of 2005-06, mining companies reportedly encroached nearly 2.7 lakh sq.m. of government land (Chauhan, 2012). Also there were huge flaws in royalties paid to the government. These illegal mines have resulted in flouting of rules causing damages to the ecology and the communities. There have been reports of farmlands being destroyed by the mining waste dumped in streams that irrigate these lands, pollution of freshwater reserves etc. coupled with corrupted access to compensations. Also, there has been very little control of law over the quantity of resources to be extracted. As a result, iron ore mining with its huge profits in the export sector is resulting to be a resource curse. On the other hand, the recent government decision to ban illegal iron ore mining activity in Goa has resulted in statewide protests by the mineworkers with respect to sustenance of their livelihoods. ‘About 4 lakh people of the state of Goa, constituting more than 30% of the state’s population are directly dependent on the iron ore mining industry for their livelihood’ (Press Trust of India, 2013). Such issues still remain to be solved.
Legislative issues
Source: (Singh, Kalirajan 2003)
The above diagram explains the legislative structure governing the mining industry. There are separate legislations for coal mining in India given the enormity of coal reserves and mining operations in this sector. The recently constituted National Mineral Policy provides these legislations a uniform platform for operation, especially w.r.t the role of private sector and FDI in different mining operations. ‘In the federal structure of India, the State Governments are the owners of minerals located within their respective boundaries and the Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India’ (Ministry of Mines, 2010). The local governments have no say in the operation of these mines owned by the State Governments. This has made communication and reporting mechanisms from local to state even more tedious. The Mines and Minerals (Regulation and Development Act, 1957) controls the licenses issued to mining companies and constitutes main governance mechanisms. According to the National Minerals Policy, companies are now required to file data concerning the prospects of the mine, material content therein and the rest, along with the reconnaissance licenses. This was absent before and the introduction has now made superficial evidence of mineralization difficult for application. Depending on the data submitted, land-holding limits for mining companies get decided. However, no matter how many new policies are formulate, the main issue with the legislative system has been its implementation arm. On ground staff that behaves as a supervisor of these laws is presently inept to do so. According to Human Rights Watch, there is an immediate need to train the monitoring staff for effective implementation of regulations.
As discussed earlier, EIA reporting mechanisms and reports are inefficient and poorly managed. Cumulative impacts of permitted projects are not reported and neither do the projects undergo public hearing procedures. For example, mining wastes from industries blatantly exacerbate the sedimentation of freshwater resources. Despite poor compliance history of certain mining industries, permits still get issued. For example, the Vedanta Group that has large mining activities in the Western Ghats is given environmental permits ignoring its poor compliance history and its poorly stated intentions for environmental protection (Dutta & Sreedhar). Also even before applying the free and informed consent on local communities, land gets acquired or purchased and then does the mining company apply for an EIA.
To address these issues, the internationally prevalent Sustainable Mining Initiative (SMI) was introduced in 2009. One of its simplest initiatives has been to publish books relating to regulatory mechanisms in India for mining industries and on ground operating staff of the government. This has simplified multifarious State and Central laws at various stages to all the multiple stakeholders involved. On the other hand it is also advising governments to approach mining law in a holistic way by merging and simplifying the set of laws. For example, in the context of Western Ghats, few indigenous communities and the local government officials know the Forest Rights Act (FRA). SMI, in this case provides an effective tool to bridge this gap.
The Sustainable Mining Framework (ERM, 2011) framed and initiated by the Ministry of Mines and the Planning commission of India in 2005 is also a step in similar direction. It provides all stakeholders with environmental and social guidelines for mining operations. One of the key aspects of this framework has been that it does not necessitate the mining sector to immediately overhaul its organization but to comply with the framework for a certain period of time and then continue to improve thereafter. It also provides information sharing between international best practices abroad and the local mining sectors, which was not possible before. Again, it provides a common platform for different stakeholders to report to concerning mining activities, effects and outcomes.
Mining affected communities
The gross neglect of environmental protection procedures have led to adverse effects on local communities. Polluted ground water reserves, dust pollution, mining blast vibrations damaging local houses, are some of the community issues to list. In such situations, there have been incidences of bribes being paid by companies to the local villagers to remain quiet. Inadequate management of migrant labor by industries is also contributing to micro level destruction of eco systems. For example, ‘labor force from outside which include truck drivers, laborers, workers on heavy machinery and labor in roadside services, depend heavily on forest for fuel wood and water resources. Their dependence on fuel wood has led to large scale thinning of the adjoining forest and deforestation in some area after prolonged stay on the mining site’ (Lad & Samant, 2009).
Most of the CSR initiatives in the Western Ghats region are labeled as ‘token’ social projects. ‘While some education and health projects have benefited local communities, other schemes, such as paying women US$2 per day to sweep the dust from the streets after trucks pass, are generally regarded as a waste of time and resources, and are simply out of touch with community needs’ (Bild, 2009). Such superficial projects cost a pittance to the industry and replace the actual needs of the communities like schools, hospitals etc. Thus, there has been a complete disconnect and lack of communication with the communities from the government’s as well as the industry’s side. Also there is no effective mechanism in the form of indicators, to gauge the impact of such CSR projects. On the other hand, considering the direct effects of mining on agriculture through pollution of farmlands, there are no true compensations provided to the local communities. Neither are there any initiatives by the companies to curb dust pollution, which has been affecting health of villagers on a large scale. In fact there have been increasing complaints of inaccessibility to effective treatment, unavailability of medicines, lack of equipment and doctors.
Conclusion
As compared to the pace of economic growth relating to mining industries, the immediate sectors relating to ecology, legislative mechanisms and communities have remained ignored. Along the stretch of the Western Ghats, there have been different contexts for mining behaving as a livelihood generator and mining impeding the livelihoods of communities. True compensation to the communities is never met. Mineral concession licenses in the context of reconnaissance for minerals have led to land grabs in many cases. The main reason behind this being that free prior and informed consent had not been made mandatory for concession licenses.
Even if there is a moratorium ban on illegal mining like the one in the state of Goa, there needs planning to be done of the unused mined land in terms of ecological restoration and compensation for the livelihoods which have been affected by the ban.
Also the government mechanism cannot be transformed and expanded in a day. There has to be strategic building and educating of manpower for effective governance of the mines. During this manpower education, partnership or membership with key extractive industries sustainability organizations would help information sharing about new technologies and practices in governance and legislative execution.
Works Cited
Insitute for Studies in Industrial development. (2012). Sustainable Development: Emerging Issues in India’s Mineral Sector . New Delhi: Planning commission of India.
OXFAM India. (2012). India’s Mining Regulation : A chance to correct course. OFAM India.
Tata Energy Research Insitute . (2001). Overview of Mining and Mineral Industry in India. New Delhi: MMSD.
Chauhan, C. (2012, March 17). Illegal Mining in India: Unabated and Unckecked. Hindustan Times .
Western Ghats Ecology Expert Panel. (2011, August 31). Report of the Western Ghats Ecology Expert Panel – Part 1.
Press Trust of India. (2013, April 26). Goa residents stage protest against mining ban in the state. The Economic Times .
Ministry of Mines. (2010). Mineral Concession System. Retrieved May 2013, from Ministry of Mines – Government of India: http://mines.nic.in/index.aspx?level=1&lid=93&lang=1
ERM. (2011). Sustainable Development Framework for Indian Mining Sector. Ministry of Mines.
Dutta, R., & Sreedhar, R. A framework for EIA reforms in the Western Ghats. EIA Resource and Response Centre.
Lad, R., & Samant, J. S. (2009, October). Envrionmental and Social Impacts of Mining in the Western Ghats: A Case Study of Warna Basin. Retrieved May 2013, from http://cdn.livediverse.eu/wp-content/uploads/2009/10/Mining-Paper.pdf
Bild, E. (2009, April 23). Goa Cursed by its Mineral Wealth. Retrieved May 2013, from Corp Watch: http://www.corpwatch.org/article.php?id=15351
Kanhaiya Singh, Kaliappa Kalirajan, A decade of economic reforms in India: the mining sector, Resources Policy, Volume 29, Issues 3–4, September–December 2003, Pages 139-151, ISSN 0301-4207, 10.1016/j.resourpol.2004.08.001.