Ore mine in Indian state to make way for elephants

An iron ore mine in the Indian state of Orissa is closing to make way for an elephant corridor.

The ministry of environment will not be renewing Steel Authority of India's permit for the mine in the eastern state, which expires this month, according to anonymous sources.

A government review is being conducted into illegal mining and environmental destruction in Orissa, as India has recently moved to tackle such issues in the country.

"Captive iron ore is Steel Authority's biggest advantage and the closure is certainly a big hit to profitability," said Ravindra Deshpande, an analyst at Elara Securities.

The closure would cut the New Delhi-based steelmaker's iron ore production by close to 20 per cent.

"Elephants don't need a very large area to move, but they need forest cover for a sense of security," said Dipankar Ghose, the director of species and landscapes programme at World Wildlife Fund India.

"The associated development around the corridor makes them insecure and makes them react violently to the environment.

"If an animal species is exterminated from a place, it's an irreversible change."

* with Bloomberg News

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