Iron ore shortage cripples south indian steel industry

Bengaluru : The iron and steel industry is in doldrums in South India, following a severe shortage of iron ore. A large number of sponge iron manufacturers and small steel mills are on the verge of closure. Many of these have already shut shop.

The shortage of iron ore is in the wake of suspension of activities in almost 50 mines in this state following the direction of the Supreme Court, which is hearing a case on illegal mining. Based on the recommendation of the Central Empowered Committee (CEC), out of 99 mining leases, the apex court has ordered the shutting of 40 mines in the Bellary, Hospet and Sandur (BHS) region.