The National Mineral Development Corporation (NMDC) is currently under scrutiny following the collapse of the tailing dam wall at its Kirandul iron ore mine in Chhattisgarh. The collapse, attributed to the accumulation of iron ore particles, resulted in substantial damage, including the flooding of tribal homes, infrastructural destruction, and the evacuation of affected residents. Preliminary assessments suggest annual losses potentially reaching several hundred crores.
NMDC’s mining operations have been a subject of contention for over six decades due to their adverse impact on local river systems and agricultural lands. During the monsoon season, the discharge of iron ore slurry, locally referred to as “RED WATER,” has led to widespread village contamination and rendered farmland infertile. Consequently, affected communities have endured numerous hardships, including animal deaths and forced migration, despite continuous protests and grievances.
Complicating matters are allegations of mismanagement of compensation funds. NMDC purportedly allocates over 200 crores annually to Corporate Social Responsibility (CSR), with more than 70 crores designated for drinking water projects. Nonetheless, there are claims of funds misuse by NMDC officials, particularly in Dantewada, thereby raising concerns about the credibility and effectiveness of the compensation process.
It has come to light that a start-up has developed technology capable of separating iron-rich solids from slurry water, potentially mitigating the necessity for extensive tailing dams. This technology also proposes the conversion of slurry solids into bricks for local use, yet NMDC has yet to embrace this innovation. With NMDC’s intended expansion of production capacity, urgency surrounds the company’s need to address environmental and social concerns, particularly under the guidance of the new Steel Minister, H. D. Kumaraswamy. Efforts to obtain a comment from NMDC Director Finance Mr. Amitabh Mukherjee were unsuccessful.
