Exporters in Karnataka got a shot in the arm with the Supreme Court allowing export of iron ore lying at major ports in the state.

A Bench headed by Justice RV Raveendran said the validity of the state government’s July orders banning such exports from 10 minor ports and prohibiting mineral dispatch permits for transportation ?will not come in the way of any iron ore which is already lying at major ports for being exported.?

It also asked the state government to put in place the new rules regulating mining and transportation of ore by March-end and posted the matter for hearing on April 4.

This comes as a big relief to miners like Mineral Enterprises, who has around 70,000 tonne of mineral waiting to be exported at the Mangalore port. The Bench also allowed the firms including MSPL, Sesa Goa and others to move the apex court for any appropriate interim orders in case Karnataka didn’t come up with mining rules within a reasonable time after expiry of 30 days from receiving objections from the general public.

The government stated that the proposed draft rules ? Karnataka (Prevention of Illegal Mining, Transportation and Storage of Minerals) Rules 2011?were made public on February 5 for objections and comments from the general public, including the mining industry, which have to be made within 30 days.

The mining companies argued that the government was delaying the lifting of the temporary six-month ban by taking time to notify the new rules, which have nothing to do with exporting the mineral.

The Karnataka High Court in November last year had upheld the state government’s decision to impose the blanket ban on transport and export of iron ore in the state.

The move is being seen as hurting exports as India is the world’s third largest exporter of the resource.

The state government had issued the twin orders in a bid to curb illegal mining, transportation and storage of iron ore in the state for export, especially to China, where demand for low-grade iron ore in the form of fines and pellets is huge.

Illegal mining had created a storm in Karnataka politics, with the Opposition targeting three ministers-cum-mining magnates? Janardhana Reddy, his brother Karunakara Reddy and their associate B Sreeramulu, charging them with carrying on illegal mining operations.