VV Mineral India’s Reputation Affected By Claims Alleged Illegal Mining - Amplified By Media

Posted by Shivar Rajan
2
Jul 6, 2015
198 Views
VV Mineral India is a mining company that entered the mining industry when no other private mining company existed. VV Mineral and S Vaikundarajan began their journey in the 1980’s when the mining laws had just about begun to change. Needless to say, that VV Minerals India is fairly thorough with what goes on in the industry on the legal as well as the business side.

Thus it comes as a rude shock when a seasoned company like VV Mineral comes under the scanner for a scam that is now being valued at Rs. 96,000 crores. A ludicrous number popularized by the media and claimed to be the ‘loot’ that VV Mineral robbed India.

To put matters in perspective here are some facts about the alleged illegal beach sand mining mafia

V V Mineral is the country’s largest mining, manufacturer and exporter of garnet and ilmenite

Tamil Nadu holds a crucial place in beach mining and the state contributes to around 85 per cent of the country’s total exports of garnet

6.5 lakh tonnes of garnet is exported by Tamil Nadu, of which V V Mineral accounts for 75 per cent.

Thus, VV Mineral not only contributes to the Tamil Nadu state’s GDP but also plays a hand in contributing to the national GDP

Up until 2007, VV Minerals dealt with only those minerals, heavy or light; that were prescribed by the central government for extraction or export by private mining companies. Interestingly, in 2007, the Department of Atomic Energy issued a circular which delisted rare earth ores such as illimenite, rutile, leucoxene, garnet, sillimanite and zircon, making these minerals free to mine not just by government bodies but private companies as well.

Having acquired the necessary licensing and clearances required, VV Mineral strategically expanded their business and are now globally positioned #2 on the list of private mineral exporters.

Despite the governmental decision to delist these material and make available for commercial use, in 2013 the central government cracked down on VV Mineral and brought them under the scanner claiming they were dealing with extracting thorium.

On a probe requested by the alleging party, the Department of Atomic Energy (DAE) examined the premises of Vaikundarajan, who by now was being titled the sand baron or sand mafia of Southern India. Post a detailed probe the DAE concluded that VV Mineral had no process or machinery to support the extraction of thorium.

However, what the government did not know then or missed to factor in was that minerals, illimenite, garnet and zircon are byproducts of separation of monazite ores from the raw sand found sand beaches. This fact of mineral processing falls directly in contradiction to the fact that owing to the delisting of these mentioned minerals private parties could mine the sands and export it to other countries without requiring clearances from Atomic Minerals Directorate.

Thus began the flurry of confused execution of laws related to heavy minerals. The High Court of Madras cancelled VV Mineral India’s mining licenses and has reserved it’s judgement in a case filed by beach sand mining baron S.Vaikundarajan, challenging the cancellation of his hard earned licenses.

Thus, V.V. Minerals was forced to close down by the State Pollution Control Board and the Department of Mining and Geology, a department which was surprisingly not included in the policy or law making by the central, state government bodies, as well the India Rare Earths and Department of Atomic Energy.

The lack of cohesive mining laws and policies are costing not just the private mining companies of the country but is hampering the endless possibilities and benefits that can come from harnessing the heavy minerals found in the sands and lands of India.
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