India's Supreme Court has banned iron ore mining in a key area of southern Karnataka state due to concerns about damage to the environment.

The order to halt all mining in the Bellary district came Friday, a day after the state's chief minister agreed to quit after being implicated in a $3.6 million illegal mining scam. B.S. Yeddyurappa and 787 other officials are accused of granting mining contracts illegally. He has denied the allegations.

The Supreme Court also called for an environmental study to be conducted to assess ecological damage to Bellary and surrounding areas caused by mining.

Roughly 80 percent of the more than 42 million tons of iron ore produced annually in Karnataka state comes from Bellary district.

India's Supreme Court lifted a ban on iron ore exports from Karnataka in April of this year, but the state has yet to issue any export permits.