Ballari district is rich in natural resources that need to be tapped to a great extent for the overall development of the district. This district is endowed with rich mineral resources. It has both metallic and non-metallic minerals. The metallic minerals include
iron ore,
manganese ore,
gold,
copper, and
lead. The non-metallic minerals include
andalusite,
asbestos,
corundum,
clay,
dolomite,
limestone, limekankan,
moulding sand,
quartz,
soap stone,
granite, and
red ochre. The metallic minerals are abundant in only two talukas,
Sanduru and
Ballari, in the order of mining activity intensity. The annual production of iron ore is anywhere between 2.75 and 4.5 million tonnes, and manganese ore between 0.13 million tonnes to 0.30 million tonnes (1991).The real estate prices have already started to shoot as more and more industries are finding their way into this city. Ballari, to its credit, has the second largest single rock mountain in the world.
Mining Ballari district has 25% of India's iron ore reserves. Until 1994, a handful of mining companies operated here, including state-owned NMDC. Later, the government issued mining licences to many private operators. The mining industry boomed with a surge in iron ore prices, due to demand from emerging China. Mining licence allocation policy from the central government was based on political
nepotism rather than merit. Flawed mining policy leads to widespread
illegal mining. Since the year 2000, money from illegal mining flowed into the electoral politics of Karnataka State. This led to the emergence of the powerful Reddy Brothers to state politics. The Reddy brothers funnelled money from illegal mining into politics, thereby King Makers of Karnataka State politics. Ombudsman's report on mining in
Karnataka state found that the promoters of privately owned mining companies in the Ballari region paid off politicians and then joined politics themselves, rising to positions in the Karnataka state government. These mining businessmen-turned-politicians exerted so much influence over the local officials that the Indian media began describing Ballari as a "new republic". Despite the availability of minerals in large quantities, this district is considered to be an industrially backward district. There are 23 units of large and medium scale industries in this district, with an investment of Rs.447.76 crores employing around 9,222 persons. At present, it occupies ninth place in the state. Sathavahana Ispat Ltd. is the first
Pig Iron plant set up in the region to utilise the abundant iron ore reserves available; Kirloskar was the next to follow with their Pig Iron plant. However, with the commissioning of Jindal Vijayanagar Steel Limited at Tornagallu, the industry scenario of this district underwent sea changes. It is understood that Mukand Steels and Kalyani Steels have started industries in this area. The inflow of investment into these industries would be around Rs.30,000 Crores. The district will, therefore, come under heavy pressure on basic infrastructure such as power, communication, health, education, and police stations, which again invite heavy investment to create the needed infrastructure. Urgent action is needed to pool the resources under various sectors, such as District Sector, State sector, Border Area Development, HKDB etc., and prepare a perspective plan to the emerging challenges. However, the mining industry in Ballari has caused devastating environmental damage and subsequent socioeconomic crises. Therefore, courts in Karnataka have ordered the reclamation of the region. ==Demographics==