Thousand of workers in the northern Indian state of Rajasthan are to be allowed back to work after an Indian court lifted a ban on mining operations in the state.

The provincial government of the mineral-rich western Indian state of Rajasthan had suspended operations in more than 600 mines, following a court order for their closure.

The order said that mining was damaging the environment in the mountains, and followed a petition filed by an environmental activist.

According to the state government, permanent closure would have led to 700,000 job losses and the state would lose revenues of more than $100m ($63.6m).

Successful appeal

That prospect led state chief minister Ashok Gehlot to seek the intervention of Prime Minister Atal Behari Vajpayee.

The ruling has now been successfully reversed and all existing mines can begin operations again.

But, as a concession to the environmentalists, mining firms will not be allowed to open any new mines.

Rajasthan has a range of mineral deposits including zinc, lead, cadmium as well as marble and other precious and semi-precious stones.

Unemployment in the state is already running high, and has been aggravated by the recent drought.