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CASE OF KUDREMUKH IRON ORE COMPANY LTD (KIOCL), KARNATAKA

Farhana.K
ENVIRONMENTAL GOVERNANCE ASSIGNMENT EP/330
SPA Delhi
The KIOCL Mining Saga
• Kudremukh Iron Ore Company Ltd. (KIOCL), a fully funded Government of India enterprise, was
established in April 1976 to cater to the requirement of the Shaw of Iran and is located at Western Ghats,
in a mountainous and densely forested area (Rain forest), classified as one of world’s 34 global
biodiversity hotspots. The setting up of KIOCL plant was to cater to the requirement of iron shaw for Iran.

• The Mining Lease of


National Mineral
Development Corporation
(NMDC) was granted to
KIOCL by the President
of India in November
1976.

• The State Government of


Karnataka (successor to
the Mysore State) helped
the company to acquire
160 hectares of private
land and transferred it to
the new company for
establishing a township.
GOAL 12: ENSURE SUSTAINABLE CONSUMPTION
AND PRODUCTION PATTERNS
Introduction
• The importance of sustainable consumption and production (SCP) has long been recognised
in global discourse, yet the Millennium Development Goals (MDGs) did not address this key
objective of achieving SCP patterns. The High-Level Panel of Eminent Persons on the Post-
2015 Development Agenda specifically noted the omission.
• Many governments in the Open Working Group on Sustainable Development Goals (SDGs)
recognised that this objective should be embedded in the SDGs, either as a stand-alone goal,
or cutting across other goals on food, health, economic growth, industrialisation, cities and
ecosystems.
1992:Chapter 4 of 2002:The concept of 2003: 2012: The United Nations
Agenda 21, SCP was also Marrakesh Conference on
endorsed by UNCED recognised in the Process was Sustainable Development
identified Johannesburg Plan initiated to (Rio+20) reaffirmed that
unsustainable CP of develop a 10- fundamental changes in
patterns, as the Implementation year the way societies
major adopted at the framework of consume and produce
cause behind the World Summit SCP are indispensable
continued on Sustainable programmes. for achieving global
deterioration of the Development sustainable development.
global environment. (WSSD).
Background

• KIOCL inherited 3,203 hectares of forest land and 1,402 hectares of non-forest
government land (total of 4,605 hectares).
• A modern mining plant was set up with the help of Met-Chem, a Canadian consultant.
• The plant was capable of extracting 22.5 million tonnes of raw ore and producing 7.5
million tonnes of beneficiated ore annually.
• A road (110 kms in length) was constructed connecting the mine site to the nearby
townships and to the port town of Mangalore.
• Lakya Dam was constructed to supply water to the mining plant and also store the mine
waste. High tension electric lines of 11,000 kilowatt capacity were drawn from the nearby
hydropower generation houses and taken through the rugged hilly terrain to the mine site.
Pipelines were laid to carry ore slurry to the Mangalore port.
• A new township for accommodating 10,000 people was created with the necessary
facilities such as pure drinking Water, drainage, lighting, basic educational institutions, a
50-bed hospital, a market place, and a recreational park. It took four years and an
estimated USD 650 million to create the township.
TARGETS
1. Implement the 10-year framework of programmes on sustainable consumption and
production.
2. By 2030, achieve the sustainable management and efficient use of natural resources
3. By 2030, halve per capita global food waste at the retail and consumer levels and reduce
food losses along production and supply chains, including post-harvest losses
4. By 2020, achieve the environmentally sound management of chemicals and all wastes
throughout their life cycle.
5. By 2030, substantially reduce waste generation through prevention, reduction, recycling
and reuse
6. Encourage companies, especially large and transnational companies, to adopt sustainable
practices and to integrate sustainability information into their reporting cycle
7. Promote public procurement practices that are sustainable, in accordance with national
policies and priorities
8. By 2030, ensure that people everywhere have the relevant information and awareness for
sustainable development and lifestyles in harmony with nature
9. Support developing countries to strengthen their scientific and technological capacity to
move towards more sustainable patterns of consumption and production
10. Develop and implement tools to monitor sustainable development impacts for sustainable
tourism that creates jobs and promotes local culture and products.
11. Rationalize inefficient fossil-fuel subsidies that encourage wasteful consumption.
SCP and Ecosystem services

• SCP, by its cross cutting nature, addresses inter-linkages and adopts a holistic approach,
taking into account the economic, social and environmental aspects of sustainable
development in a balanced and integrated manner.

• Consumption and production activities are the basis of the global economy, but current
patterns are fast depleting natural capital, degrading ecosystem services and undermining
the capacity of countries to meet their needs in a sustained way. The shift to SCP patterns
implies increasing efficiency and productivity throughout the supply chain and the life cycle
of the products, now and over the long-term.

• Consumption and production are at the core of the global economy. Yet current
unsustainable production and consumption patterns lead to deforestation, water scarcity,
food waste, and high carbon emissions, and cause the degradation of key ecosystems.
Accomplishment of the SCP goal will create synergies and support attainment of other goals
on food, water and energy, while also contributing to climate change mitigation.
Examples
• In Peru, the SDG Fund is contributing to establish an inclusive value chain in the production
of quinoa and other Andean grains, so that the increased demand in the international
market can convert into economic and social improvements of currently vulnerable
producers.

• In Fiji, the SDG Fund is promoting organic agriculture, a production system that sustains the
health of soils, ecosystems and people. Organic agriculture combines tradition, innovation
and science to benefit the shared environment and promote fair relationships and a good
quality of life for all involved. The programme is working with the tourism industry to ensure
that organic production satisfies a growing demand in the industry.

• In Bolivia, the SDG Fund joint programme is supporting four municipalities to establish
sustainable agricultural production systems which will increase the incomes of the poorest
families and improve the nutritional state of boys, girls and mothers.
Reference

• Ford, L. (2015). Sustainable development goals: all you need to know. [online] the
Guardian.
• Sachs, J. (2012). From Millennium Development Goals to Sustainable Development
Goals. The Lancet, 379(9832), pp.2206-2211.
• Norwegian Ministry of Environment, Oslo Symposium on Sustainable Consumption
and Production (SCP), 1994; this has become the widely accepted definition of
sustainable consumption and production.
• World Bank and the International Monetary Fund, Global Monitoring Report 2013:
Rural-Urban Dynamics and the Millennium Development Goals(Washington, D.C.,
2013), p. xi, 22, 25.
Thank you!