CURRENT NEWS

FEBRUARY  2010

 

No separate ore pricing policy for sponge iron

Bhubneswar, February 26, 2010: : The State Government today made it clear to the sponge iron manufacturers that grant of mining lease to their units is not permissible under present policy but it will consider their demand if they come through the cluster development programme of the Ministry of Small and Medium Enterprises (MSME). Steel and Mines Minister Raghunath Mohanty today discussed the demands of the Orissa Sponge Iron Manufacturers’ Association at a meeting here and told them that long-term arrangement for supply of iron ore is not possible as a matter of policy. The Government is giving priority to companies which have signed MoUs with it for establishment of steel projects. Seventy per cent of the total ore production will be for the companies having MOUs with the Government while the rest 30 per cent is for non-MOU singing units. The sponge iron units will have to compete with others for a share out of the 30 per cent meant for open market. To the association demand for special price for member units as the iron ore price under the price setting policy is too high, Mohanty said the Government has adopted open pricing policy to bring in transparency. A separate price cannot be fixed for the sponge iron units, he added. He, however, assured the association that the demand for common facility centre like land for char dumping will be taken up with district administration on cluster basis. Steel and Mines Secretary and OMC Chairman Ashok Dalwai said that the Government is ready to extend all possible assistance if the sponge iron manufacturers adopt the MSME programme adding they need to adopt environment-friendly technologies and quality control measures. In 2006 OMC had sought expression of interests from sponge iron manufacturers for ore linkage. Of the many applicants, 53 manufacturers were found eligible but only 22 lifted ore from the corporation. The remaining 31 units have not lifted ore even once during the last three years just because iron ore were available aplenty in the open market at a cheaper price. After closure of illegal mining activities in the wake of the multi-crore mining scam, the sponge iron manufactures are facing difficulties in meeting their raw material needs, sources familiar with the business said.

(Source:http://expressbuzz.com)

18-22% of minerals exported illegally, alleges Parrikar

Panjim, February 25, 2010: Lambasting  the Kamat-led  government  over  core issues  such  as corruption,   illegal mining,   law and order problem  which he had been persistently  following during last  one year ,  the  Leader   of  the  Opposition  Manohar Parrikar  said, 18 to 22 per cent of minerals  exported comes  from  illegal  sources. Alleging that the government has failed to contain illegal mining activities in the State, Parrikar  said  State’s ore  exports  have touched 43 million ton  and increase  registered  is  twice the quantity  exported  five  years  ago.   However, the department of mines has been able to account for 32-33 million ton of minerals extracted.   He made the allegations on the basis of information obtained under RTI and   replies received for his assembly questions. He said, this issue will be raised in the Assembly next month as also will be taken up with Union Minister for Environment Jairam Ramesh. Making further allegations against the government he said, comunidade lands are being diverted for mining purposes and even some ministers   are involved in illegalities. He also attacked minister for forest but did not name him, saying he should be   called “deforestation minister. “About 1500 ha of forest land has been converted into non-forest, he alleged. Failure of the government to curb illegal mining has led to unrest in the villages where such activities happen.  He said,  problem could have been tackled  only  if the government had  shown willingness  to  stop  illegal  mining  activities.  “Kamat being in-charge of  the  mining  department  for  past ten years there ought not have  been  chaos  in the mining department, “ he said while reacting  to a question whether  he  was  putting  the  blame on the chief minister  who also holds mines  portfolio. Incidentally, even in the BJP government Kamat held the Mines portfolio besides that of power.

YADHUVANSHI: Parrikar also charged thrice Kamat has intervened and stopped transfer of Secretary Mines, Rajiv Yaduvanshi.  Normally, an IAS remains in one posting for three-four years, but Yaduvanshi has been in Goa administration  for too long.  Yaduvanshi is also secretary to chief minister.

MINING POLICY: According  to Parrikar,   the proposed   mining policy  will not  serve any purpose as  major minerals  are listed  under  Schedule  I  of the Constitution. It means, it forms part of the Central list and does not give any scope for the state government in this regard.   With this being a situation proposed mining policy has “no meaning,” he said further adding he raised two-three important points in the meeting held to discuss the policy.

LOKAYUKTA:  Claiming  that  he  has relevant  documents to  prove  corruption charges  against   ministers in the Kamat  government,  Parrikar said,  it  has deliberately   delayed passing of  the Lok  Ayukuta Bill. He has no faith in the vigilance department which is being controlled by the government. The department even hesitates to touch corrupt officers leave alone tainted ministers. The Additional Director is Arun Desai who incidentally was Joint Secretary to CM when Parrikar was the CM.

EXCISE: Referring  to   enquiry  conducted  by finance secretary (FS) into alleged   scam in the excise  department involving  senior  officers of the department,  he said,  even  two and a half months later  FS has not  come out with any result. “What has he done”,” he said. The enquiry was ordered to “hoodwink” people,   he alleged. “Either the FS is also part of the racket or he has been maneuvered by chief minister.” In the last assembly  session, Parrikar said the State continue to suffer loss of Rs 5-6 crore  a month but  the  government  is  yet to  take  any action, he claimed.

(Source:http://oheraldo.in/news/Local%20News/18-22-of-minerals-exported-illegally-alleges-Parrikar/33979.html)

Orissa tops list of states diverting forest land for mining

New Delhi, February 25, 2010: Over 18,000 hectare of forest land has been diverted for mining purpose in the last three years across the country with Orissa topping the list of states. Orissa saw 5,151 hectare of forest land being diverted since January 2007 followed by Andhra Pradesh (3431 hectare), Karanataka (3359 hectare), Jharkhand (3275 hectare) and Goa (1065 hectare). Over 2,500 hectare of forest area was diverted for mining purpose in Orissa during last year, official data said. About 4,216 hectare of forest areas has been diverted for different irrigation projects in the states during this period, the data said. Forest areas are diverted for non-forest purposes with certain conditions including compensatory afforestation, penal compensatory afforestation and Net Present Value, to mitigate the adverse impact of such diversions. The government has collected Rs 11,378 crore for such activities. The fund is deposited in Adhoc Compensatory Afforestation Fund Management and Planning Authority (CAMPA).  It has released about Rs 730 crore to 22 states and union territories for these activities so far. The government has given targets to many states for tree plantation during the eleventh five-year plan. However, several state governments have not achieved the target due to inadequate funds or poor infrastructure. Environment Ministry is implementing the National Afforestation Programme, a Centrally-sponsored scheme for regeneration of degraded forests and adjoining areas in the country through a two-tier mechanism of Forest Development Agency (FDA) at the forest division level and Joint Forest Management Committees at the village level. About 800 FDA projects have been approved in 28 states to cover a project area of 1.69 million hectare. Two new Eco-Task Force (ETF) Battalions have been operationalized by the ministry for ecorestoration of degraded areas in Assam, in addition to supporting the existing four ETF battalions in the country. A new scheme for afforestation involving Panchayati Raj Institution, Gram Panchayat Van Yojana has been mooted by the Ministry also. To boost up afforestation and related activities, the convergence guidelines of National Rural Employment Guarantee Act and NAP have been issued jointly by Ministry of Environment and Forests and Ministry of Rural Development. Under the National Action Plan on Climate Change announced by the Government, a National Mission for a Green India has been mooted as one of the eight missions to inter alia help counter the effects of climate change through forestation programmes.

(Source:http://www.zeenews.com/news606948.html)

Mining firms must have Environment Ministry nod, Jairam to Yeddyurappa

New Delhi, February 24, 2010: Union Environment Minister Jairam Ramesh on Tuesday shot off a letter to Karnataka Chief Minister BS Yeddyurappa maintaining that despite the State Government’s decision to allow mining in reserved forest areas in different districts, all proposals initiated by the companies thereafter ‘must necessarily’ have the ‘prior’ approval of the Environment Ministry. “Even though the State Government may have given the permission, the final authority, as far as diversion of forest land for non-forest (including mining) purposes is concerned, is the Union Ministry of Environment and Forests,” Ramesh stated in his letter. In fact, Ramesh went on to State: “I am sure the State Government is well aware of this but I did not want leave any ambiguity on this score.” Ramesh said he was writing the letter as a number of MPs from Karnataka, cutting across party lines, met him in Parliament on Tuesday and expressed their concern over the State Government's decision. Also, since media reports quoted the State Home Minister has having said that the Environment Ministry had been consulted. He said his Ministry wasn't consulted by the State. Ramesh’s letter to Yeddyurappa followed even as the Karnataka Government had on Monday clarified it had not allowed mining in the reserve forest areas of Bellary, Shimoga and Mysore districts. State Home Minister VS Acharya had maintained that mining had been permitted only in de-reserved forest areas, that too de-reserved by the SM Krishna Government in 2003 and which had received 1,400 applications for mining. The Karnataka High Court too had upheld the decision, Acharya had pointed out. The State Cabinet had on February 20 given its nod to allow mining in 14 blocks in an area stretching 11,620 sq km in the three districts subject to fulfillment of conditions like value addition to ore. Ramesh’s letter to Yedyyurappa comes a day after he wrote to Goa Chief Minister Digambar Kamat over the Centre's decision to impose a moratorium on consideration of all mining proposals received from the State and to get all the mining activities, for which permission had been granted by the Environment Ministry in the past few years, examined.

 (Source:http://dailypioneer.com/238153/Mining-firms-must-have-Environment-Ministry-nod-Jairam-to-Yeddyurappa.html)

Indian cos on global hunt to mine uranium

Mumbai , February 24, 2010: Indian companies such as Essar, London-listed Vedanta and a subsidiary of shipmaker Varun Industries are scouting around for opportunities to explore and mine uranium in countries like Australia, Canada and parts of Africa which have deposits of the mineral used to power nuclear reactors. An overseas subsidiary of Reliance Industries, India’s biggest private sector company, had last year bought a 49% stake in a special purpose vehicle (SPV) to set up a company, Uranium Exploration of Australia (UXA), which has licenses to mine uranium at four locations in Australia. The Indian companies contemplating overseas foray into uranium mining have sounded out the Department of Atomic Energy and the stateowned Uranium Corporation of India (UCIL), which is itself exploring overseas operations. A person close to the development said Indian companies could form joint venture with UCIL for overseas exploration. Varun Energy, an unlisted subsidiary of Varun Industries, is searching for equity partners to help it explore for Uranium in the Indian Ocean island of Madagascar, where it has been allocated uranium mines. Other companies including Essar and Vedanta are exploring overseas options, according to a government official and an industry source both of whom sought anonymity. The spokespersons for Essar and Vedanta group, however, denied looking for uranium assets overseas. Rathnakar Hegde, an advisor to Varun Industries, said the company is in the process of finalising investment bankers for roping in equity investors for its projects in Madagascar. Varun Energy’s overseas subsidiary has been allocated an area of nearly 6,000 sq Km, which holds an estimated reserve of 1.7 million tonnes of Uranium and 3.5 million tonnes of Thorium, another mineral used in making nuclear fuel. “We are in the process of forming a consortium for exploration work, which is likely to start by the end of this year,” said Mr Hegde.  Kameswara Rao, an executive director of PricewaterhouseCoopers, said assured fuel supply was important in the wake of the nuclear deal between the US and India. “With India expediting nuclear energy generation plans for civil use, assured fuel supply has become essential. Thus, investment in nuclear fuel E&P has become even more lucrative as compared to supply of reactors.” Nuclear fuel mining in India is currently restricted to state-run companies but with proposals of public-private participation, the sector is gradually creating opportunity for private players. “Private firms with overseas operation in the countries with formal fuel supply agreements could supply to India,” said Mr Rao.  “Following the nuclear accord with various countries including US, UK, France and Canada along with support from majority of Nuclear Supplier Group countries, the government has received proposals from at least 6-7 companies for forming joint venture for domestic mining and partnership for overseas explorations,” a DAE official said, not willing to be quoted.  India has targeted adding 20,000 MW capacity of nuclear power by 2020. Currently, the country has 18 running rectors with capacity over 4,000 MW and six reactors are under construction.

(http://epaper.timesofindia.com/)

No question of new mines in Goa: CM

Panjim, February 24, 2010: Chief Minister Digambar Kamat categorically stated that there is no question of giving new mining leases and indicated that he had written to the Centre not to consider mining proposals for environmental clearances from Goa. He also said that the new Goa Mineral Policy would be finalized in mid-March and that till then no renewal of leases would be allowed. Hence, the question of giving new leases doesn’t arise, he added. According to a news agency, a day after Union Minister for Environment and Forest (MoEF) Jairam Ramesh ordered a “moratorium on consideration of mining proposals for environmental clearance from Goa’, Suresh Walve media advisor to Kamat, credited the moratorium to the chief minister. “It is because of a letter from the chief minister to the MoEF earlier this month, asking that no new mines be allowed in Goa, that the said moratorium has been ordered,” Walve said. “The chief minister is himself very much against allowing any new mines in Goa,” he added, according to the agency report. Jairam cries stop to mining in K’taka  Delhi Correspondent Adds: After stopping new mining projects in Goa on Monday, Environment and Forest Minister Jairam Ramesh on Tuesday cried halt to mining in the reserved forests of the neighbouring Karnataka too.  He shot off a letter to Karnataka Chief Minister B S Yeddyurappa, protesting at the state government allowing mining in various districts without taking his ministry’s clearance. “All proposals that will be initiated by companies following the decision of the State government must necessarily get prior approval from the Union Ministry of Environment and Forests under the Forest Conservation Act, 1980,” the letter added. Jairam said many MPs of the State met him in parliament expressing concern over the State government allowing mining in reserved forest areas in different districts of the State. He has asserted that the State government has not consulted his ministry which is the final authority for allowing any forest land diversion for non-forestry purpose, including mining.

(http://www.oheraldo.in/news/Local%20News/No-question-of-new-mines-in-Goa-CM/33902.html)

Mining firms to now tow no pollution line

Panjim, February 24, 2010: Finally, the State government has decided to act tough to contain traffic jams and dust pollution caused by mining trucks especially in Sanguem and   Quepem. At a meeting with mining  stake  holders, the  government  proposed  couple  of measures to reduce dust pollution caused  by transportation of   ore  through  Sanguem  and Quepem. All mining premises  will  now have a weigh-bridge within their  campus  and  no truck  bearing   ore would  be permitted  to leave  the  premises  unless  its  weight is measured and  recorded  in the trip-sheet  with date and time signed  by the  weigh-bridge in-charge and the truck operator. Most truck operators overloaded their vehicles   with ore to earn some extra bucks — also, it served mine owners well as their ore transportation charges did not increase. However, under  no circumstances loading of ore  beyond  limit  will be permitted, the  government   warned, whereas mine owners , falling in line,  have agreed  to  install  weigh-bridge within their campus. Also,  no truck  which  has additional  side  boards  fitted to  increase  the  carriage  capacity  are to be allowed to ply.  And, if any truck  is found  loaded in excess  of  the permissible  laden weight,  the mine  owner  from  where the  ore has emerged  will be penalized at the  rate of   Rs  2000  per ton  of  excess weight. Moreover,  all loaded  trucks  will have to be  covered  with tarpaulin and  not by  any  other  imitation  or cheap material.   They have also to ensure that the cover should be adequately large   and properly affixed to prevent leakage of ore dust. The permit of the truck will be cancelled if it is found violating any of the rules three times in a year. The police department will press into service interceptors on roads to check overloading and reckless driving by mining trucks.  It has been decided to make additional arrangement   in critical areas.

(Source:http://www.oheraldo.in/news/Local%20News/Mining-firms-to-now-tow-no-pollution-line/33901.html)

Industry offers tips to improve Goa’s economy

Mineral ore exporters ready to create infrastructural facilities

Panjim, February 24, 2010: Goa Mineral Ore Exporters Association (GMOEA) today told the government that they are willing to put in funds to build infrastructural facilities like roads in the mining belt provided land is given to them free of all encumbrances. This statement was made by GMOEA Shivanand Salgaocar at the pre-budget exercise conducted by the Goa government to know the views of various sectors like mining, tourism, industry, etc at the Secretariat today.  The meeting was chaired by the Chief Minister Digambar Kamat and was attended by representatives of the industry and political parties and senior finance bureaucrats. Salgaocar stressed on building infrastructural facilities in the mining belt and said the mining industry would be supportive in taking up such jobs. These works would be taken up by the mining industry on the same principle they built the new Usgao bridge. This is provided the land is given to them by the government free of all encumbrances and that they are allowed to engage their own contractors as in the past. The chief minister mentioned that one of the major roads in the pipeline is between Uguem and Capxem.Salgaocar also said that the industry would  welcome dedicated roads for mining away from habitations. The issue of illegal mining was also raised at the meeting. GMOEA stressed that they are against illegal mining. POLITICAL PARTIES: All major political parties also gave their suggestions to be included in the Goa budget 2010-11.The parties were represented by Savio D’Souza (Congress), Surendra Sirsat (NCP), M Mardolkar (MGP) and others.

(Source:http://www.oheraldo.in/news/Local%20News/Industry-offers-tips-to-improve-Goa-rsquo-s-economy/33914.html)

 Fast-track mining nod may speed forest demise

Bangalore, February 23, 2010:

There is one thing that the government appears to be in a blinding hurry to accomplish: depleting its emerald wealth at the cost of accelerated development.

In what could have a profound long-term impact on the State’s fragile eco-system and endanger the tiger population, the Cabinet has approved large scale mining not only in the reserved forest in Bellary, but also in the Bolegoudankatte forest under the Bandipur Tiger reserve and Jedikatte reserve forest in the Western Ghats region. Apparently not considering or assessing the pros and cons, including the social and environmental costs of unchecked mining, the State government found it prudent to steamroller its decision, throwing even the Karnataka Lokayukta recommendations to the winds. The cabinet threw open nearly 5,000 sq km of mineral rich, reserved forest area in Bellary (four blocks), Shimoga (one block) and Mysore (one block) for private sector mining. A majority of mining firms operating in the State have set their eyes on mainly four blocks in Bellary, which contains very high value iron ore. The private companies’ lust for minerals can be gauged by the 3,000 applications pending before the government, each seeking leases in these blocks, government sources said. The government, of course, is more than willing to oblige. It is planning to allot captive mines to ArcelorMittal and Posco in Bellary for them to set up steel plants. The government has not done its homework, especially because of the history of how the Kudremukh Iron Ore Company Limited (KIOCL) lost a bitter battle to environmentalists on mining in Kudremukh in Chikmagalur in the Supreme Court. Sensing that the KIOCL’s project would cause long-term environmental damage, the apex court had ruled that all mining activities in the rich biodiversity area of Kudremkukh should come to a halt with effect from 2005.

(Source:http://www.deccanherald.com/content/54316/fast-track-mining-nod-may.html)

Goa mining proposals clearance put on hold

New Delhi, February 23, 2010: Responding to complaints from within and outside the State government about how illegal mining operations are stripping Goa, the Union government has put on hold all environmental clearances for mining proposals in the State.  The moratorium will extend till the State finalises its Mineral Policy and informs the Union Ministry for Environment and Forests. All proposals pending for consideration will be returned and no new proposals will be accepted from the State.  On existing projects , Minister of State for Environment and Forests Jairam Ramesh has decided to commission a comprehensive environmental impact assessment study of all the mining activities that have taken place and for which permissions have been given over the past few years.

Remedial measures

The study, to be conducted by the National Environmental Engineering Research Institute, will also identify remedial measures, Mr. Ramesh said in a letter to Goa Chief Minister Digambar Kamat. The decision for a moratorium was taken in response to two letters from Mr. Kamat earlier this month, asking for help in combating the menace of illegal mining.  The Goa Assembly and citizens groups have also been making representations on the issue.

(Source:http://www.hindu.com/2010/02/23/stories/2010022355991100.htm)

Projects to be assessed

New Delhi, February 23, 2010: Minister of environment and forests Jairam Ramesh has asked the National Environment Engineering Research Institute Nagpur to conduct an assessment of all mining projects for which permission had been granted as also to suggest cancelling of licenses for mines not following laws. Ramesh wrote to Goa chief minister Digambar Kamat on Mon- day informing that there would be a moratorium.

(Source:http://epaper.asianage.com/ASIAN/AAGE/2010/02/23/ArticleHtmls/23_02_2010_005_036.shtml?Mode=1)

Tribals protest against mining project

New Delhi, February 22, 2010: Over 5,000 Dongria and Kondh tribals carrying traditional arms held a massive protest rally in the Niyamgiri hills of south Orissa against the mining project of Vedanta Alumina Limited (VAL) on Sunday.  With growing international support, the tribal struggle has received a major push with both, the Church of England and the Norway Pension Fund, having decided in the last few weeks to withdraw their investment from the UK-based Vedanta Resources. Several activists led by Bianca Jaggers, ex-wife of Mick Jaggers of the Rolling Stones and a member of the Human Rights Foundation, along with Action Aid have been in the forefront to pre- vent the proposed bauxite mine from becoming operationalised on the grounds of human rights abuse. International activists have written to the Indian government pointing out that the Niyamgiri hills, where the mines are expected to be located, is a place of worship for the Kondh's. Experts at the Wildlife Institute of India had pro- posed the setting up of a wildlife sanctuary on the Niyamgiri hills which would have allowed the tribals to continue to use this as their ancestral place of worship. But this proposal did not take off even after the Union environment minister stated that the granting the Vedanta group environmental clearance was a major goof up. Mr Praful Samantray, convenor of the National Alliance of People's Movement and heading the Lok Shakti Alliance of tribals, pointed out, "Forty tribals have died in this struggle during the last decade. Seeing that the protest movement is gaining momentum, state authorities are expressing concern that Maoist elements should not infiltrate their ranks.'' Tribal hopes have risen further because their case is presently being heard before the National Environment Appellate Authority. Ritwick Datta, lawyer pleading the case for the Dongrias and Kondh tribals, pointed out, "The public hearing on this case was held in 2003. At that time the public had little knowledge of what was at stake. The whole local dynamics has changed dramatically in the last few years." MoFE sources point out, "The government can hardly be said to be serious about this case. The Nation- al Environment Appellate Authority consists of a five member bench but at present it only consists of a single member who is a retired forest service officer." Tribal leader Kumati Majhi visited London to drum up support for his community.

(Source:http://epaper.asianage.com/ASIAN/AAGE/2010/02/23/ArticleHtmls/23_02_2010_005_033.shtml?Mode=1)

Freeze fresh mining leases, says Centre

Panaji, February 23, 2010: The Union ministry of environment and forest has imposed a moratorium on "consideration of mining proposals for environmental clearance" in Goa till a proper policy on mining is put in place. This was conveyed in a letter written by Union environment and forest minister Jairam Ramesh on Monday to chief minister Digambar Kamat, who also holds charge of the mines portfolio.Kamat, however, said he had not received the letter till 4pm on Monday. "This is not anything out of the way, since we had informed the Centre that we would not issue any fresh mining lease till a fresh policy is formulated," he told TOI.  The Union ministry has also directed the state to carry out a comprehensive environment impact assessment of mining activity that has been carried out in the past and also in lease areas under operation at present. The Nagpur-based National Environment Engineering Institute (NEERI) was recommended as the agency to carry out the study.  The ministry while recommending a freeze on grant of approvals under provisions of the Environment Impact Assessment notification 2006, requested the government to return to the parties concerned any proposals submitted by them to the government for consideration.  The moratorium comes at a time when a demand for a cap on mining activities from environmentalists, NGOs and others has been gaining ground for some time. Incidentally, the government has also been requested not to accept any new mining proposals.  Mines director Arvind Lolienkar too said he was not aware of any correspondence from the Union ministry. "My office has not received anything till 6.30pm on Monday," he said.

(Source:http://timesofindia.indiatimes.com/india/Freeze-fresh-mining-leases-says-Centre/articleshow/5605066.cms)

RPT-India halts mining proposals in Goa pending policy

Mumbai, February 22, 2010: The Indian government said on Monday it will not consider mining proposals for environmental clearance in the iron ore rich western state of Goa until a related policy is finalised for the state. Sesa Goa, India's top iron ore exporter, is headquartered in the state. The company's mining operations have faced protests from activists who claim it pollutes the environment and contaminates ground water in the picturesque state, famous for its beach resorts. Environment and Forests Minister Jairam Ramesh has written to the chief minister of Goa about the decision, the federal government said in a statement. "I am advising the officer concerned to return all the proposals to the proponents which are pending for consideration and not to accept any new proposals from the state of Goa," Ramesh said in the letter. He said an assessment of the environmental impact of all mining activities over the past few years should be made.

(Source:http://in.reuters.com/article/domesticNews/idINSGE61M01G20100223)

Illegal mining in full swing

Bhubaneswar, February 21, 2010: Even as the State Vigilance is probing the multi-crore mining scam, illegal mining activities are in full swing. This is evident from two separate official letters of the Deputy Director of Mines (DDM), Joda, to the Inspectorin- charge, Government Railway Police, Rourkela, on January 30. Alleging that iron ore of 125 rakes illegally procured from January 1 to 23 was despatched to various parts of the country from Jorua and Bandamunda railway stations in Rourkela, the DDM requested the GRP inspector to treat his letter as first information report (FIR) and find out the people involved in the illegal trade, the source of procurement and the destination of the consignments. Curiously, the DDM conducted an inquiry into the scam after dispatch of the entire consignment, approximately 4.5 lakh tonnes and worth Rs 150 crore, on January 23 and reported the matter to the GRP on January 30.  Disclosing the contents of the DDM’s letters to the Rourkela GRP at a media conference here today, BJP leader Bijay Mohapatra said that the delay in reporting the matter to the Railway police is a deliberate attempt by the DDM to save the scamsters. ``This can never happen without the knowledge of Chief Minister Naveen Patnaik who is holding both the Home and Forest and Environment portfolios,’’ Mohapatra said and questioned the role of the flying squads of the Mines Department and the Vigilance probing the scam. Mohapatra said that the Chief Minister who has been claiming that the Vigilance is doing a good job and capable enough to go to the bottom of the scam owes an explanation to the people in this case. He further asked the Chief Minister to explain the need for delegating more powers to the Vigilance at a time when the Supreme Court has ruled that the consent of the State is not required for handing over a case of national importance to the Central Bureau of Investigation (CBI).  Empowering the Vigilance probing the mining scam clearly demonstrated that the Chief Minister has so far been lying to the people about the capacity of the anti-corruption wing of the State. The Opposition has been persistently demanding a CBI probe because of the ramifications of the scam, he said.  ``Now stop this drama and hand over the case to the CBI before the court directs to do the same,’’ Mohapatra advised the Chief Minister.

(Source:http://expressbuzz.com/)

GBA warns of mass stir if ESZs are not frozen

Panjim, February 21, 2010: Demanding freezing of all eco-sensitive zones (ESZs) till the new Regional Plan 2021, the Goa Bachao Abhiyan(GBA)  today threatened to launch mass agitation from March 4 against the government’s failure to accept their demands. GBA and village groups formed a working committee to fight the “destruction of Goa” while the RP2021 is being finalised. Representatives of about 20 village and all-Goa level groups , involved in the participatory planning process for Regional Plan 2021, attended a meeting facilitated by the GBA today at the TB Cunha hall, in the city
The meeting demanded protection of forested lands, paddy fields and plateau regions and other areas marked as Eco-Sensitive-1 and Eco-Sensitive-2 in the draft Regional Plan 2021 notified in October 2009. It also demanded that notification of the Regional Plan 2021 for public information and suggestions/objections at an early date to put an end to the rampant “development” and mining of eco-sensitive and other areas across Goa and enactment of panchayat, municipal and town planning  laws in tune with Article 243 of the Constitution of  India after the 73rd and 74th amendments. All the persons present were unanimous in their demand that the government announce a firm date by which the Regional Plan would be made public and to freeze all no objection certificates (NOCs)  and permissions for construction or mining or any other development in eco-sensitive zones till the final notification was issued. As the government was not responding to the demands, the meeting resolved to come on the streets on March 4 to press for their demands. Besides members of the GBA core committee, there were representatives of the Mull Goenkaranchi Songhottona [MGS], the Benaulim Villagers Action Committee (BVAC), Pilerne Citizens Forum (PCF), the Zagrut Raikarancho Awaz, South Goa Public Interest Action Group, Voice of Villagers-Verna, SEZ Virodhi Manch, (SVM) the Nagrik Samittee of Kerim, the Jardin Bachao Samiti of Ponda and other organizations and individuals. Civil society organizations (CSOs) were represented by their office bearers and many concerned citizens also attended.
The members will share the decisions with their respective village groups and meet again by the end of February, 2010, to finalize the future course of action.

(Source:http://www.oheraldo.in/news/Local%20News/GBA-warns-of-mass-stir-if-ESZs-are-not-frozen/33826.html)

CIL ropes in KPMG to Solve coal dispatch problem

Kolkata, February 20, 2010: Wants ‘biggest bottleneck’ to be tackled soon. State-owned mining major Coal India Ltd, which accounts for over 80 per cent of the country’s coal production, is gearing up to solve the biggest operational bottleneck that it faces — transportation.  The miner, which is expected to come out with its initial public offer towards the end of this calendar year, has roped in consulting firm KPMG to frame and implement a new corporate plan over the next 18 months. However, CIL wants to resolve the transportation issue in the short-term.  “The basic issue that needs to be addressed concerns dispatch. Although production potential exists, transportation is a big bottleneck. First, the coal needs to be sized and dispatched efficiently from the pit-head to the (railway) siding and then, it needs to be transported elsewhere based on the availability of (railway) wagons,” CIL Director (Technical) N C Jha said. Admitting that the issue was hampering the company’s current production level, Jha said it could have a larger impact looking forward, unless addressed immediately. “It is an external and internal problem. Some way forward will have to be planned,” he added. With the country’s demand for coal growing steadily, CIL is finding it difficult to keep pace due to a number of reasons, including inordinate delays in the procurement of environmental and forest clearances. The mismatch between supply and demand could be in the range of 120 million tonnes in the coming financial year, analysts said. Therefore, if the miner is unable to dispatch the excavated coal, there could be a further increase in shortfall. For instance, there is a coal stockpile of about 20 million tonnes at Mahanadi Coalfield, a CIL subsidiary, which cannot be dispatched due to a shortage of wagons. In many upcoming projects in the valley, Talcher and North Karanpura coalfields, the current railway infrastructure was grossly inadequate, sources said. As a result, coal consumers such as the power sector could be hit. Consequently, KPMG has been instructed to immediately analyze the logistic-related functions at CIL and submit its suggestions to resolve this at the earliest. “We have asked them (KPMG) to undertake a rail-infrastructure and an equipment utilization study at the earliest. They are constantly interacting with a core committee from CIL as well as those from the subsidiaries,” a senior CIL official said. On its part, KPMG said it would look at the availability of logistic capacity and coordination of available resources.

(Source:http://www.business-standard.com/india/news/cil-ropes-in-kpmg-to-solve-coal-despatch-problem/386304/)

Court bans mining in Aravalli Ranges

New Delhi, February 20, 2010: The Supreme Court on Friday banned mining in 157 mines in the Aravalli Ranges, in respect of which applications for renewal of lease have been pending with the Rajasthan government. A Bench of Chief Justice K.G. Balakrishnan and Justices S.H. Kapadia and Aftab Alam also ordered satellite imaging of the Aravalli Ranges spread over a 50,000-km area in 15 districts. It said the court-appointed Central Empowered Committee on environmental matters and the Rajasthan government would cooperate with the Forest Survey of India in carrying out satellite imaging.

Rs. 5 crore to be allotted

The Bench said the Compensatory Afforestation Fund Management and Planning Authority (CAMPA) Advisory Council would provide Rs. 5 crore for the exercise. Disapproving of subterfuge, the Bench pointed out that under the guise of pending decision on the applications for renewal of the lease, mining was being allowed. Earlier, senior counsel and amicus curiae Harish Salve asked the court to ban all mining activities in the State. He said the Rajasthan government was trying to pull the wool over the eyes of the court by considering only those mountains which were 100 metres or more in height part of the Aravalli Ranges. It did not treat shorter hills as part of the ranges.

Ecological impact

Another amicus curiae Ranjit Kumar said the court was concerned with the Aravalli Ranges in their entirety and not according to the height of mountains. If mining activity was not stopped immediately, it would lead to devastation, both in terms of its magnitude and impact on ecology, much bigger than what one saw in Haryana. Appearing for the Rajasthan government, senior counsel K.K. Venugopal said a committee of the State officials had already asked the State Remote Sensing Agency to take up satellite imaging of the Aravalli Ranges.

Loss of jobs cited

Another senior counsel T.R Andhyarujina, also appearing for the State, said closure of the mines would lead to large scale unemployment and loss of revenue by way of royalty.

(Source:http://beta.thehindu.com/news/national/article109947.ece)

Supreme Court bans 175 mines in Aravalli

New Delhi, February 20, 2010: The Supreme Court (SC) banned on Friday activity in at least 175 stone mines operating without a valid lease in the Aravalli ranges of Rajasthan. The mines had been operating on the pretext that the state government was considering their lease applications. Lawyer Ranjit Kumar, who is assisting SC in environment-related matters, referred to the state’s affidavit admitting that 747 mining leases were active. He argued that if each lease was for an average 10 hectares, the total mining area in the state would be 7,500 hectares, or 75 sq km. Kumar said if the mining was not stopped now, it could lead to a devastation of massive magnitude of wider impact on ecology of the entire region. SC also ordered satellite imaging of the Aravalli ranges spread  over 50,000 km in 15 districts of Rajasthan. It appointed a central empowered committee on environmental matters and asked the Rajasthan government to cooperate with Forest Survey of India in the satellite imaging.

(Source:http://www.dnaindia.com/india/report_supreme-court-bans-175-mines-in-aravalli_1350136)

Steel min seeks updated mineral maps

New Delhi, February 19, 2010: The steel ministry is awaiting introduction of revised and updated mineral maps, which is expected to be brought as part of the new Mines and Minerals Development and Regulation Act to be presented in the upcoming Budget session. The maps that are used at present are more than 30 years old, due to which there has been no major investment in large-scale prospecting. “We have sufficient quantity of iron reserves for domestic firms. We have to do large-scale prospecting and reconnaissance because the figure for prospected iron ore available for mining have not changed dramatically for last 30-40 years. So we need massive efforts towards prospecting and the availability of ore for mining. We need new prospecting estimates, which will be available in the new mineral maps,” Steel Secretary Atul Chaturvedi told Business Standard. The ministry has already put forward the proposal to the mining department and the issue is expected to be addressed with the introduction of the new law. “This would create a sort of seamlessness in prospecting, reconnaissance and mining. And the maps should be revised every five years,” Chaturvedi added. He also said that currently both state-run as well as private firms do not invest in prospecting due to lack of incentives. However, in countries such as Australia, investment in the prospecting sector increased four-fold in the last 30 years. During 1960s, the iron ore reserves of Australia and India were comparable. On Thursday, India’s estimates have grown by 35-40 per cent whereas in Australia they have increased by 400 per cent in the same period. Last week the mining department had said that it already had a series of consultations with various ministers on the proposed Mines and Minerals Development and Regulations Act and the bill will be presented in the budget session of Parliament.

(Source:http://www.business-standard.com/india/news/steel-min-seeks-updated-mineral-maps/386135/)

People-friendly mining policy soon: Lanong

Shillong, February 19, 2010: The Meghalaya Government is determined to implement a people-friendly and nature-friendly State Mining Policy which, it says, would be adopted soon. Amid the growing differences among various groups over the proposed mining policy, the Deputy Chief Minister and Mining and Geology Minister BM Lanong told newsmen today that the policy was imperative to streamline coal and limestone mining operations in the State. Lanong pointed out that the contamination of two rivers in Jaintia Hills was due to the haphazard mining for coal and limestone. The Deputy Chief Minister made it clear that the government was not against anybody seeking to make money out of mining activities but insisted that "scientific mining is necessary in overall interest of the people".

(Source:http://www.sentinelassam.com/meghalaya/story.php?sec=2&subsec=8&id=28683&dtP=2010-02-20&ppr=1#28683)

HC pulls up Central panel for stopping mining by OMC

Hyderabad, February 19, 2010: A division bench comprising acting Chief Justice T. Meena Kumari and Justice G. Chandraiah on Thursday pulled up the Central Empowered Committee on Environment and Forest for recommending to stop mining operations at Anantapur by the Obulapuram Mining Company. The CEC recommendation was beyond its purview, the bench felt. The bench asked Mr A.D.N. Rao, advocate of the Supreme Court who appeared on behalf of the CEC to show that the committee is empowered to pass such orders. The bench was dealing with the petitions filed by the OMC against the orders of the state government which stalled mining operations including transportation of iron ore. It may be mentioned that the apex court referred the matter back to the High Court while suspending the orders of a division bench which allowed the OMC to transport extracted iron ore from its stockyards. Justice Meena Kumari asked the advocate to produce a provision either from any of the statute or the guidelines prescribed by the apex court, to prove that the CEC can independently pass orders in any matter related to forest and environment. The judge observed that the CEC is not a judicial authority and cannot act beyond the board. If that is the case, the CEC may one day ask the courts to stop functioning. Elsewhere, the bench permitted Bellary Iron Ore Pvt Ltd to transport iron ore lying in its stockyard by depositing Rs 1.50 crore.

(Source:http://www.deccanchronicle.com/hyderabad/hc-pulls-central-panel-stopping-mining-omc-572)

SC: Can donate for battered hills but no mining

New Delhi, February 19, 2010:Miners on Thursday conveyed their eagerness before the Supreme Court to pitch in with funds to rehabilitate the battered Aravalli ranges but the court made it clear that the ban on mining will not be lifted until there is “rehabilitation” of the ecologically fragile belts. “All this has been forced on you,” the Special Forest Bench, or the ‘green bench’, of three judges led by Chief Justice of India K G Balakrishnan told the miners, who expressed willingness to contribute to the Aravalli Rehabilitation Fund.  He was seconded by Justice Aftab Alam on the Bench, who said: “You (leaseholders) are responsible for bringing it down to this situation. If you had followed the rules, we would never have been in this situation. Now you are desperate.”  Later, acceding to the miners’ request, the court gave them liberty to “contribute” to the fund, but only in consultation with the government. “After all, it boils down to money. These funds generated can be used for rehabilitation,” Justice Alam remarked.  Justice S H Kapadia, also on the Bench, made it clear that “there is no lifting of the ban (on mining) until there is rehabilitation”.  On May 8 last year, the court had ordered suspension of all mining activities — both quarrying of building materials known as ‘minor’ mining, and traditional minerals, known as ‘major’ mining — in 448-sq km or 1,500 hectares of Aravalli range areas in Faridabad, Gurgaon and Mewat districts of Haryana. “If there is total devastation of Aravallis, then the logical corollary is a total ban on mining activity,” the court had said. In January 2009, the apex court’s central empowered committee had in its report advocated a total revocation of existing mining leases. It had recommended the closure of all mines in Faridabad and Gurgaon districts in the Aravalli range. But subsequently, on October 8, 2009, the apex court had agreed to allow limited mining of building materials — Badarpur sand and stones, commonly used as construction material in the National Capital Region — in 600 hectares of the Aravali ranges in Haryana, provided the state government formulates a “comprehensive” rehabilitation plan in the next six months. This had included a direction to Haryana to establish the Aravalli Rehabilitation Fund, the setting up of a monitoring committee, and the creation of a transparent procedure for auction of mines. Accordingly, a successful bidder had to deposit 10 per cent of auction money in a joint account with the State Mines Department.  During the hearing on Thursday, the Bench at one point had to stop the state government and the miners from trading accusations. “If we resort to blame game, rehabilitation will suffer. Sit down and talk even at the cost losses on one or the other side,” Justice Kapadia cautioned both sides.

(Source:http://www.indianexpress.com/news/sc-can-donate-for-battered-hills-but-no-mining/581656/0)

U.K. investor pulls out of Vedanta

New Delhi, February 19, 2010:: In a blow to mining firm Vedanta, a fourth European investor has sold its multi-million pound stake in the company, citing “serious concerns about its [Vedanta’s] approach to human rights and the environment.” The company has been slammed for its plan to mine the Niyamgiri Hills of Orissa, home to the Kondh tribals, many of whom have opposed the plan. The decision of the United Kingdom-based Joseph Rowntree Charitable Trust to sell a £2.2 million stake (along with other investors who follow its ethical policy) in Vedanta follows the Church of England’s decision to sell its £2.1 million stake last week. The Norwegian government’s pension fund had been the first high-profile withdrawal, selling its $13 million stake in 2007, while the Martin Currie Investment sold its £2.3 million stake last year.

“Morally indefensible”

“We have heard first-hand about Vedanta’s environmental and human rights abuses in Orissa and believe that Vedanta is pushing industrialisation to the detriment of the lives and lands of the local people. This behaviour may be legal, but is morally indefensible,” said Susan Seymour, chair of the investment committee at the Joseph Rowntree Charitable Trust.  In New Delhi, Kumti Majhi of the Kutia Kondh community welcomed the decision. “I am glad they have listened to our problems. They [the Church’s representatives] came and stayed in our hut and listened to us also…Why doesn’t the government listen,” he asked. “The government people only come and they go around in Vedanta’s helicopter, in Vedanta’s cars, and then they go back and say Vedanta is doing good things.”  Mr. Majhi was in the capital to deliver a petition to the Prime Minister’s Office on Thursday. “We urge Prime Minister Manmohan Singh to act now and take a decision that will save Niyamgiri and the Kondh people from destruction,” he said. The Kondh people consider Niyamgiri Hills to be sacred and depend on them for food, livelihoods and cultural identity, he added. Responding to the news of the stake sale, Mukesh Kumar, chief operating officer of Vedanta Alumnium, the Indian subsidiary of U.K.-listed Vedanta Resources, said the British team which had come to investigate had failed to get back to the company with their suggestions or complaints.

(Source:http://www.hindu.com/2010/02/19/stories/2010021955551000.htm)

SC: Miners can’t be given afforestation work

New Delhi, February 18, 2010: Ruling out the possibility of involving miners in the restoration of the forest cover devastated by mining activities in the Aravalli region, the Supreme Court today directed the Haryana government to submit a comprehensive rehabilitation plan within four weeks. “That stage is over long ago,” a Bench headed by Chief Justice KG Balakrishnan retorted when counsel for miners suggested that they be allowed to carry out the restoration work under the supervision of the state government and the Union Ministry of Environment and Forest. Even as the CJI made the oral remark, another judge, Justice Aftab Alam, agreed with him, stating that the court had banned mining activities in the Aravalli hills only because of the indiscriminate mining carried out by those involved in the business without any concern for the forest cover, environment and ecology. Posting the next hearing for March 12, the Forest Bench, which included Justice SH Kapadia, made it clear that there was no question of the apex court lifting the ban on mining in the ecologically sensitive Aravalli region in the absence of a “roadmap for a comprehensive rehabilitation package”. Piecemeal solutions were not acceptable to the court, the Bench said. The court also asked the Haryana government to identify the mining leases, which had to be terminated for undertaking rehabilitation work. The court rejected a proposal by senior counsel KK Venugopal, who appeared for some minors, that the government had sufficient powers to visit and conduct surveys at any mining site even without cancelling the leases. Smooth reclamation work was not possible without cancelling the lease agreements, the Bench felt. The state government also agreed to identify within four weeks the locations where mining of minor minerals would be allowed over an area of 600 hectares in Faridabad. The state counsel said the government had decided to continue the ban on mining for another 10 years and would permit such activities only in areas approved by the Supreme Court. The Supreme Court had re-imposed the blanket ban on mining last year, but later agreed to allow mining in 600 hectares in Faridabad and 1,500 hectares in Gurgaon and Mewat regions in view of the minor minerals required for building projects and road construction activities. The court also clarified that there would be no change in its earlier order that 10 per cent of the revenue generated through auctioning of mining leases would go into a fund meant for restoration work.

(Source:http://www.tribuneindia.com/2010/20100219/haryana.htm#5)

Cabinet to decide about new mining policy

Bhopal, February 17, 2010: The cabinet sub committee would meet on Monday to recommend the new draft mining policy. The committee would discuss every point of the policy before tabling it before the cabinet. The state government had constituted a committee of finance minister, commerce and industry minister, forest minister and mines resource minister to prepare new mining policy. With recommendation of this committee the new policy would be tabled before the cabinet for acceptance. It is said that strong provisions have been recommended in the new policy to curb illegal mining. After coming into force of the new policy the illegally mined minerals along with the vehicles would be seized. The new policy propose to give more powers to the district mining officers. The new policy include provisions of the new mining policy released by the Government of India. The Central Government had asked all state governments to prepare new mining policies according to its new policy. In the new policy it has been proposed that the allotment power should be been taken from the district collector and given to the district mining officer. Like earlier, the issue of allotment of mines would not be sent to the government directly from the district. Now it would be sent to the directorate where the matter would be thoroughly scrutinised and later sent to the government.

(Source:http://centralchronicle.com/viewnews.asp?articleID=27285)

Meghalaya notifies committee to study uranium mining

Shillong, February 17, 2010: Meghalaya Deputy Chief Minister Bindo Lanong and in-charge Mining and Geology, would head a 33-member committee to examine the impact of uranium mining in the State. The committee has been dubbed Joint Committee on Uranium Mining in Meghalaya (JCUMM). It comprises Ministers, government officials, scientists and members from social organisations. The core group would examine various aspects related to health, environment, public safety and other issues related to uranium mining. Although the committee was formed on November 4 last year the notification was issued only yesterday and the committee would submit its report to the government within three months. Last Year, the Congress-led Meghalaya United Alliance Government had decided to lease out 422 hectares of land in West Khasi Hills district to the Uranium Corporation of India Limited (UCIL) for 30 years. The corporation in turn pledged Rs 209 crore to develop the district. However, organisations opposed to Uranium mining in Meghalaya carried out agitations in the form of road blocks and office picketing against the government’s decision to lease out the land. The State Government was forced to rethink on its decision and subsequently it kept all matters relating to Uranium mining on hold and formed the committee. Apart from the Deputy Chief Minister, Minister for Public Health Engineering and Science and Technology, Prestone Tynsong and AT Mondal respectively, Chief Secretary WMS Pariat, Director General of Police S Kakati, NEHU professors from the departments of Biochemistry, Chemistry, Environmental Science and Physics would be part of the committee. Amongst the NGOs, the Khasi Students’ Union, the Coordination Committee of Social Organisations, a federation of social organisations and Associations of Meghalaya for Development Advancement (AMDA), a pro-Uranium lobby is also part of the committee.

(Source:http://www.assamtribune.com/scripts/detailsnew.asp?id=feb1810/oth07)

GMOEO demands ban on illegal mining

Panjim, February 17, 2010: Demanding that illegal mining should be curbed, Goa Mineral Ore Exporters Association (GMOEO), the representative body of the iron ore mining and export companies in Goa has, since its formation in 1963, has urged the Goa government to draw up an action for the purpose saying such activities are bringing a bad name to the industry. “Demand for iron ore leases from Goa has been on the increase and there are instances where holders of leases which were not in operation have been approached by traders with the intent of operating the same for quick gains without following the necessary norms and regulations,” said GMOEA Secretary Glenn Kalawampara in a press release issued here.  The press release was issued after a meeting of GMOEA was held here where the issue of current situation of iron ore mining was discussed threadbare. The meeting was chaired by GMOEA president Shivanand Salgaocar, sources said. “In a few cases, there even appears to be mining activities carried out without even a lease being granted,” the release said adding, “There are numerous instances of ore been stolen from dumps and stacks of major mining companies at night as well as pilferage in cases of spillage by the transporters/drivers.” The GMOEA further says that the result of this can be seen on the roads, where the society is held at ransom.  GMOEA has welcomed the move of the Government of Goa to have a committee headed by the Chief Secretary of the State to keep a tab of illegal mining operations in the State of Goa. “A large number of public protests are the outcome of such activities,” the release says adding “The GMOEA welcomes the move of the State Government to identify and taking corrective action to the problems of congestion and related issues in the mining areas.” “The long term players in the industry would not only support carrying out mining operations as per legal guidelines, but also contribute in infrastructure, Corporate Social Responsibility, Safe and Sustainable Mining and transport, besides providing employment and business opportunities to the society in its activities for the greater good of all,” the release states. The release says that the GMOEA welcomes in principle the Mineral Policy of Goa which states the broad objectives on sustainable mining in the state and also a need to improve infrastructure to reduce congestions with separate dedicated roads wherever possible. Apart from flaunting laws for temporal gains, GMOEA said such uncontrolled activities by short term players affect the operations of the mainstream industry as the whole industry gets tarred with the same brush. While the major groups undertake various CSR activities in their respective mines sites, including undertaking of participative projects like construction of infrastructure, no such effort is seen from such short term operators, the press release said. “The long term players in the GMOEA note and support the State Government in its efforts to demonstrate its care for the State and discourage activities pinned on short term gains at the cost of all. GMOEA therefore welcomes the step of the State Government to keep a tab of illegal mining and also urges the State Government to draw up an action plan so that illegal mining is not only discouraged but also curbed,” it says. To ensure proper regulation, it is imperative that the legal and the irregular operations are separated and suitable action taken to curb illegal operation, it said. The long term players in the industry would not only support carrying out mining operations as per legal guidelines, but also contribute in infrastructure, Corporate Social Responsibility, Safe and Sustainable Mining and transport, besides providing employment and business opportunities to the society in its activities for the greater good of all, the release added.

(Source:http://oheraldo.in/news/Local%20News/GMOEO-demands-ban-on-illegal-mining/33664.html)

Mining lobby stalling Tadoba buffer?

Nagpur, February 17, 2010:  After being thrown out from projects around Tadoba-Andhari Tiger Reserve (TATR), the mining lobby, in collusion with some forest officials, seems to be making last ditch efforts to see that reserve’s buffer zone is not notified. Once the buffer zone is notified, mines will automatically not be permitted in the area. The 625 sq km TATR is proposed to have an additional buffer of over 1150 sq km that includes 79 villages. Notifying buffer around tiger reserves has become mandatory after September 4, 2006, amendment in Wildlife Protection Act (1972). Buffer areas with forest connectivity are imperative for tiger conservation as they foster tiger population. These areas also absorb poaching ‘shock’.  However, the state is not serious about notifying buffers. Forest minister Patangrao Kadam has called a meeting on February 25, in Chandrapur, to hear views of people representatives. The letter issued by the forest ministry on February 10 about the meeting doesn’t call it ‘public hearing’. Yet, a section of forest officials, allegedly on behalf of by the mining lobby, are terming this as ‘public hearing’. It is being done to prompt opposition from villagers to the buffer zone. Actually, the process of consultation in all 79 villages in the proposed buffer has been done and people’s views have been submitted through a report to the committee on buffer. The wildlife wing had promised to address their fuel wood and fodder issues through a comprehensive plan and finally the panel had recommended the buffer. Kishor Rithe, president of Satpuda Foundation, an NGO working for tiger conservation in Central India, has strongly objected to such ‘public hearing’. He says ‘public hearing’ or ‘public consultation’ is conducted under the Environment Protection Act (EPA) 1986 for certain projects and TATR buffer does not fall under such projects. “How can anybody call a ‘public hearing’ on this?” he asked. Rithe, who was also a member on the committee to notify buffer, has stated that TATR buffer has to be notified under the Wildlife Protection Act 1972 and not under the EPA, which needs a public hearing. Under WPA, the government can issue notification directly.  “We have already pointed out this delay to the forest secretary B P Pande in presence of union environment minister Jairam Ramesh during latter’s visit to Chandrapur last month,” Rithe said. Rithe felt arranging public hearing or public consultation again, may have legal implications. “The possibility of some efforts by mining lobby to oppose the buffer by raising some irrelevant issues cannot be ruled out,” he apprehended. Sudhir Mungantiwar, BJP MLA from Ballarshah, agrees. “I’m not opposed to buffer. TATR buffer needs to be notified to keep mines away. We have suffered a lot due to mining and people don’t want it. However, we want a written assurance from the state that even if buffer is notified, compensation towards cattle and human kills by tigers and damage to crop by wildlife will not be stopped. The government should also commit that villages coming in the buffer will be relocated in future,” Mungantiwar said.

(Source:http://timesofindia.indiatimes.com/city/nagpur/Mining-lobby-stalling-Tadoba-buffer/articleshow/5582367.cms)

KPMG pens 6-point strategy for Coal India restructuring

Kolkata, February 16, 2010: Coal India Ltd (CIL) has appointed KPMG Advisory Services Pvt Ltd to advise on consolidating its position as the country’s prime energy provider, a statement released by CIL said. KPMG has identified six key areas that will support CIL to realise its vision, including managing scale of growth, improving operational efficiency, improving customer orientation, expanding presence across the coal value chain, becoming the employer of choice and focusing on environment and community through sustainable initiatives.  A time frame of 18 months has been fixed for this initiative, including a year of implementation, during which the roadmap for improvement will be laid out. Currently, the Navratna coal mining major produces 82% of overall coal output of the country and meets 45% of the country’s primary commercial energy needs. According to the statement, land acquisition is one of the road blocks hampering CIL’s production rate and thus the growth potential. The fair price of land to be acquired and the compensation thereof has emerged as a major issue between CIL and tenancy land owners. Secondly, the company is also facing difficulty in hiring for statutory positions and certain niche skills. Thirdly, there is a mismatch between evacuation requirements of CIL vis-à-vis the resources availability for dispatch; particularly through rail transportation. Also, current production is skewed towards open cast mining, consequently there is scope to increase output through adoption of new technologies in underground mines.

(Source:http://www.dnaindia.com/money/report_kpmg-pens-6-point-strategy-for-coal-india-restructuring_1348341)

Government notifies uranium panel

Shillong, February 15, 2010:  The Meghalaya Government has finally notified constitution of a Joint Committee on Uranium Mining in Meghalaya (JCUMM) comprising 32 members even as the three-month period for submission of its report to the government lapsed on February 4. The JCUMM was constituted on November 4 to look into the various aspects, including possible health and environmental hazards, related to pre-uranium mining development projects in the uranium-rich area around Mawthabah in West Khasi Hills. Members of the Committee, headed by Deputy Chief Minister Bindo Lanong as its chairman, have also been drawn from local NGOs opposing and supporting uranium mining besides experts from various fields and government departments. The committee has four members from the NEHU, five from the KSU, five from the Coordination Committee of Social Organizations (CCSO), one each from the Ri-Bhoi Youth Federation, War Jaintia Students’ Union and West Khasi Hills Students’ Union (WKHSU) and six from the Association of Meghalaya  for Development and Advancement (AMDA). The committee can co-opt any other expert, if necessary. Last year the Congress-led MUA Government had decided to put on hold for three months the pre-uranium mining development works to be implemented by the Uranium Corporation of India Limited (UCIL) in 422 square hectares around Mawthabah, and formed a committee to look into the concerns raised by the protesting groups. Meghalaya accounts for 16 per cent of India’s uranium reserves, with deposits estimated to be around 9,500 tonnes and 4,000 tonnes at Domiasiat and Wakhaji respectively. The UCIL had to wind up mining operations in West Khasi Hills in the early 1990s due to stiff local protests, and had again applied to the State Government for permission for uranium mining in 2001. The mining project, estimated at be worth Rs 300 crore in 90s, is now estimated to cost Rs 814 crore.

(Source:http://www.sentinelassam.com/meghalaya/story.php?sec=2&subsec=8&id=28384&dtP=2010-02-16&ppr=1#28384)

Issue transit pass to mineral firm: HC

Bangalore, February 16, 2010:

The High Court has directed the State government to issue transit pass for transportation of minerals to Kumaraswamy Mineral Exports Private Limited.

The company has a 20-year lease on 82.55 hectares of land in Yeshwantnagar in Sandur taluk for mining. In 2009, the Forest Department alleged that the company had encroached upon forest land and built a road and ordered the seizure of machinery. The Company approached the High Court, challenging this notification. The High Court in its ruling directed the Forest Department to return the machinery and verify the facts of encroachment again. Later, the Department of Mines and Geology issued a permit, but the Forest Department did not issue a pass despite the Deputy Commissioner’s instructions to do so. The company which had 80,000 metric tonne of ore to be transported approached the High Court again, due to non-compliance of order by the Forest Department.

(Source:http://www.deccanherald.com/content/52946/issue-transit-pass-mineral-firm.html)

‘VPs do not attend to hill-cutting complaints’

Panjim, February 15, 2010:  While the State Government is in the process of drafting a policy/legislation to have a proper check on illegal hill-cutting – it may have to also put in place a mechanism to act against reported cases of illegal cutting. The cases of illegal hill-cutting brought before panchayat bodies remain unattended as they are not forwarded to higher authorities even as there is a circular in place issued by Chief Secretary a year ago that authorities should promptly act on such complaints. The point was raised during the hearing of a writ petition that dealt with a case of illegal hill-cutting in Siolim village. Adv Norma Alvares, an amicus curiae pointed out despite a circular such complaints remain unattended as the panchayats do not forward them to higher authorities. And therefore, it is necessary that panchayats have to be compelled to forward any complaint that they receive about illegal hill-cutting to a BDO and further higher ups. In response to this, Division Bench of Justice Naresh H Patil and N A Britto asked the authorities to ensure that complaints are forwarded so that action is taken against illegal hill-cutting while adjourning the matter for further hearing on April 29. Earlier, Advocate General Subodh Kantak sought four months time to come out with a policy/ legislation that would curb illegal hill-cutting in the State. He told the Court that existing Town and Country Planning Act does not vest much powers in town planner to act against cases of illegal hill-cutting. At the most, he can file a police complaint, he said indicating the necessity of fresh stringent measures. COMMITTEE: He said, the government has constituted a committee for framing a policy or legislation. Legislation or a policy will basically involve – stringent action against persons indulging into illegal hill-cutting, disallowing constructions on area illegally cut and restoration of the area. The committee has had one meeting but need at least four months to have a policy in place as it has to seek expert help to frame a policy or legislation, he said. However, Court was not in favour of granting four months time and adjourned matter to April 29. SUPERCEDING VP POWERS: As the High Court dealt with the petition pertaining to “illegal hill-cutting” it also came before Court that when a Panchayat declines to act against illegal hill-cutting or construction, the complainant can appeal before Deputy Director of Panchayat. The Advocate General Subodh Kantak told the Court that section 66(5) of Goa Panchayat Act, give power to Deputy Director of Panchayat to supercede powers of panchayat when it fails to execute its functions. And such deputy directors are flooded with complaints of illegal constructions, he said. To this, the court queried how in many cases the deputy director has invoked the section to supercede powers of panchayats. “You must show that law exists,” remarked Justice Naresh H Patil while indicating authorities are not doing enough to implement the law. The Court also suggested that if existing law is not adequate enough to addresses grievances of people, it need to be modified. “Change the law – activate your law ministry,” pointed Justice Patil.

(Source:http://oheraldo.in/news/Local%20News/lsquo-VPs-do-not-attend-to-hill-cutting-complaints-rsquo/33553.html)

Mining woes: Bhamai school wards, parents block road
Marcel, February 15, 2010:  The Parents Teachers Association members of Shrimati Tarabai Dalvi High School, Bhamai-Pale, on Monday blocked the road protesting over rising dust pollution and alleged failure on the part of authorities to control truck transportation in the area. The road blockade agitation angered the truck owners, which ended in verbal clashes between the two groups. The school students along with their parents blocked the road in front of the school premises at Bhamai, paralysing the transport for nearly two hours. However, the situation normalised after Pale MLA Pratap Gauns along with Bicholim Mamlatdar Pramod Bhat reached the site. PTA members claimed that various representations were made to the authorities over dust pollution caused due to mine ore transport, but nothing has been done so far. Parents were also unhappy as the North Goa collector’s order to stop mining transport was not implemented. “If feel the restriction on overloading of mine transportation will solve the dust pollution problem,” said the Pale MLA. A PTA member Achut Naik said failure on the part of authorities to solve dust pollution problem has forced them to come on road. “We are concerned about the future of our children and hope authorities will take necessary steps. We have been fighting over the issue for the last several years. Various representations were made to the authorities,” said Naik. Says PTA President Rama Naik: “Once the mine owners cleaned the dust along the road and sprinkled water to control dust pollution. The activity was carried out only for a month. Children are faced with a lot of hardship while coming to school and back home.” Reacting to the anger of truck owners who were involved in verbal argument with the agitators, Naik said: “We had given a month’s notice to the deputy collector and even had issued press statements. We are not against the truck owners but they are threatening us to allow the trucks to ply, which is uncalled for.” When asked on the implementation of the North Goa collector’s order to stop mine transport during school hours, Bicholim Mamlatdar Pramod Bhat said: “We will decide over the implementation after a proper study.” Meanwhile, Bicholim Deputy Collector D Kenawadekar has directed mine owners to monitor the dust-removing activity in Bhamai-Pale. The deputy collector has also issued directives to the truck owners to cover their trucks with tarpaulin, no overloading and overtaking. Directions are also given to deploy police personnel near the school in Bhamai.

(Source:http://oheraldo.in/news/Local%20News/Mining-woes-Bhamai-school-wards-parents-block-road/33558.html)

Ramesh locks horns with NCP in tiger territory

New Delhi, February 15, 2010: Union Minister for Environment and Forests Jairam Ramesh is taking on the NCP again - this time in its den in Maharashtra. And the bone of contention is a proposed coal mining project inside a tiger reserve. In a letter to Prime Minister Manmohan Singh, the minister has clearly stated that permission cannot be granted for coal mining in the buffer zone of the Tadoba-Andhari Tiger Reserve (TATR) in the state. This is the second instance of Ramesh not giving in to the NCP. He recently opposed the commercial cultivation of Bt brinjal, a proposal that had the support of Union Agriculture Minister and NCP chief Sharad Pawar. The environment minister has been under tremendous pressure to permit mining in the Lohara West and Lohara Extension areas that lie within the TATR. The Adani group of industries was allotted captive coal mines at the sites in November 2007, when the prime minister himself held the coal portfolio. The coal extracted from Tadoba will fuel a power plant to be set up by the Adani group in Tiroda in Gondia district. This is the constituency of civil aviation minister and NCP leader Praful Patel. He has been vociferously demanding a captive coal mine because his constituency is reeling under a severe power crunch. A power plant is, therefore, urgently required in the region. But the environment minister clearly begs to differ. Ramesh told Mail Today:  "There is a rejection letter from my ministry saying that these mines cannot be permitted. I also visited the site on January 26 and have given the same opinion in a letter to the PM." Ramesh said mining could not be permitted in the region on four grounds. Firstly, the TATR was a tiger reserve and needed to be protected. Secondly, the entire region was thickly forested and rich in teak. The third reason cited by the minister was that even locals were strongly opposed to the project. In addition to this, Chandrapur - the town closest to the TATR - was already an extremely polluted industrial cluster. "Chandrapur is actually the fourth most polluted industrial cluster in the country with a large number of cement factories. Coal mining will add to this problem. The Western Coalfields, which carry out mining in the area, also have a very poor pollution record," Ramesh said. The minister, however, has managed to stave off opposition from the NCP by seeking alternative coal mines for the Adani power plant in Gondia. "We have written to the coal ministry asking them to find an alternative site for the captive mines," he stated. For his part, Patel told Mail Today: "We do need a power plant in Gondia, for which a captive coal mine is necessary. Alternative mines can be allotted to Adani and the respective ministries will take a call on the issue. I do not wish any harm to be caused to the environment." Earlier, Congress MPs from the Vidarbha region had written letters to party chief Sonia Gandhi, asking her to intervene and stop the mining project. The BJP units in the area are part of the ongoing agitation against it. When the Prime Minister's Office was apprised of the matter, Ramesh was asked to look into it. The environment ministry had earlier, too, refused permission to the mining project on January 7. The National Tiger Conservation Authority (NTCA) also raised serious objections to it. This is also the second time in the recent past that Ramesh has taken on his Cabinet colleagues over an environmental issue. He had opposed the project of another Cabinet colleague, road transport and highways minister Kamal Nath, to widen a national highway stretch that goes through the Pench tiger reserve. The road connects Nagpur to Jabalpur and the National Highways Authority of India (NHAI) was very keen to widen it. The Supreme Court's central empowered committee (CEC) had observed that the widening of the road would cause harm to the sanctuary.

 (Source:http://indiatoday.intoday.in/site/Story/83949/India/Ramesh+locks+horns+with+NCP+in+tiger+territory.html)

Pvt entry in coal mining to be delayed

New Delhi, February 15, 2010: Entry of private players in coal mining will be delayed. Contrary to expectations, the coal ministry will not move in the Budget session a bill that would allow auctioning of coal mines to companies without the restriction of captive use. The postponement comes in the wake of a decision taken by the PM’s Energy Coordination Committee that the bill should be moved only after a consensus is arrived. The committee had taken the decision after the bill was stalled in the face of stiff opposition from trade unions.  The government had asked a ministerial panel under finance minister’s chairmanship to examine the matter and ordered the Planning Commission to prepare a report. The panel has to make specific recommendations on policy measures on exploration and mining of coal.  But in the Budget season, the bill has taken a back seat. The bill has been hanging fire since 2000 when it was moved in the Rajya Sabha. It was cleared by the standing committee in 2001 but no progress was made in the face of stiff opposition from trade unions. At present, private industries are allowed a role in coal mining only for captive use.  The coal ministry has been proposing to opt for a lumpsum payment route for auctioning coal blocks, instead of royalty and profit-share system being followed in case of handing out oil or gas concessions. The bid amount will be realised in instalments over 10 years. Bidders will be asked to make their offer above the floor price worked out on the basis of the government’s estimate of coal reserves in a block.  On June 20 last year, TOI first reported that the ministry was moving to set up a regulator in six months or so before opening up coal mining to private players through the open bidding system.

(http://epaper.timesofindia.com/)

Maoists target leaders over bauxite mining

Visakhapatnam, February 15, 2010: Maoists have increased pressure on the government on the issue of bauxite mining in the Agency. Last week’s incidents have warned officials that the Maoists will not hesitate to step up violence to create hurdles for the proposed bauxite projects in the Agency. Two leaders, one from the Congress and the other from the Telugu Desam were kidnapped from their homes, giving tense moments to tribal families and police.  Though they were released unharmed, the Maoists gave a stern warning to them to quit active politics if they had to support the government in pushing forward the project.  Maoists struck GK Veedhi, killing its mandal parishad vice president Sagina Somalingam who was snatched away while he was watching television and shot dead. The Maoists left a pamphlet stating that he was involved in helping the government and private companies with the project. An active member of the CPI, Somalingam was expelled from the party in December last year after he was found working against the party with regard to bauxite mining. The allegations were that he helped MNCs and government agencies in collecting soil samples. The Maoists have been organising village meetings asking tribals to oppose bauxite mining and also warning local leaders to make their stand clear. District superintendent of police Vineet Brijlal said that the Maoists had no other issue other than opposing mining to prove their existence. Condemning the recent violent incidents, he said, “The Maoists have no business to kill innocent tribals when the government is taking up development in the Agency for the welfare of the poor.”

(Source:http://www.deccanchronicle.com/visakhapatnam/maoists-target-leaders-over-bauxite-mining-455)

Tenement registry to help settle mining boundary disputes

New Delhi, February 15, 2010: The Mines Ministry in collaboration with the Indian Space Research Organisation (ISRO) has embarked on a project to create a tenement registry of mining leases that would help settle boundary disputes and curb illegal mining. “We are trying to map all the registries of mining leases,” said Ms Santha Sheela Nair, Secretary, Ministry of Mines. A pilot of the Tenement Mapping Project is being carried out at Bellary and Chitradurga in Karnataka and Chattisgarh. “All these problems that we hear now about boundary disputes and nobody knowing where the boundary is etc., should be settled once and for all, once the tenement registry is done throughout the country,” Ms Nair said. The Tenement Registry is also expected to help restrict illegal mining activities that are on the rise. It is estimated that nearly 80,000 cases of illegal mining have been detected by states from January 2006 and June 2009. Further, the Ministry, through Geological Survey of India, has also engaged with ISRO in two satellite based surveys in the country for hyperspectral mapping, that helps identify and locate mineral wealth and geomorphological mapping. As part of its modernisation initiatives, GSI is going ahead with the Rs 448 crore project to acquire new research vessel and has selected The Shipping Corporation of India (SCI) and Wartsila Ship Design, Norway (WSDN) as consultants. WSDN has prepared and submitted the general agreement plan along with outline specification and scientific equipment, which is being scrutinised by SCI and GSI. This plan is likely to be finalised later this month. GSI has acquired the Dhruv Helicopter from Hindustan Aeronautics Ltd, which will be fitted with geophysical sensors for undertaking aerogeophysical surveys.

(Source:http://www.thehindubusinessline.com/2010/02/15/stories/2010021551740300.htm)

Gujarat mining policy to perk up cement capacity

Addition of new capacities on the back of a fall in demand has led to a downturn in capacity utilisation in the industry.

Mumbai, February 15, 2010: The Gujarat Government's decision to put its mining policy on the fast track will give a new lease of life to eight cement companies that plan to add 22 million tonnes of capacity. The list includes Reliance Cement, Ambuja, Dalmia, Binani, J.K. Lakshmi and Shree Cement. The Gujarat Mineral Development Corporation (GMDC) has asked for project details of companies that have signed pacts to set up plants during Vibrant Gujarat 2009, said a cement company official. “Most issues regarding the mining lease are close to being resolved and the necessary rules are being put in place. We hope to get the mining lease for 30 years for the limestone available in the Junagadh and Kutch regions,” he said. Cement companies now have to bid for the limestone blocks to be put up for auction by GMDC. Jaiprakash Associates has recently set up 2.4 mtpa of capacity at Sewagram near Kutch with an investment of Rs 1,500 crore. Binani Cement has acquired about 25 acres for setting up a two-million-tonne plant in the State for Rs 1,000 crore.

PRESSURE ON CAPACITY UTILISATION

Though capacity utilisation of most companies has improved since the start of this year, it may come under pressure once the new additions go on stream. The industry's utilisation had dipped to 80 per cent in November from nearly 100 per cent in March 2009. With new capacities being added, it is expected to fall to 80.5 per cent in 2010 from 91.5 per cent last year. It may, however, improve marginally to 80.6 per cent next year with signs of improvement in demand, said a research analyst. Addition of new capacities on the back of a fall in demand has led to a downturn in capacity utilisation in the industry. “Cement manufacturers had reduced their operating capacity utilisation to maintain the demand-supply situation. It also helps them reduce inventories when demand dips,” the official said.

(Source:http://www.thehindubusinessline.com/2010/02/15/stories/2010021551151300.htm)

Satellite to check illegal mining

Jaipur, February 14, 2010: The state government has asked authorities to curb menace of illegal mining in Aravalli hills spreading across 15 district of Rajasthan. The government decided to employ Jodhpur-based Remote Sensing Centre to conduct an ariel survey of the region with the help of American Satellite Quick Bird. Chief minister Ashok Gehlot has reviews the situation with senior officials in a meeting and directed that if needed, take help of Special Operation Group of police to act against illegal mining. The state government would spend Rs 7 crore in taking help of Quick Bird. A special task force has been constituted to follow the directions.

(Source:http://www.asianage.com/home/india/2391-satellite-to-check-illegal-mining.html)

Meghalaya digs in, to regularise coal mining

Kolkata, February 14, 2010: : The Meghalaya government has finally decided to institutionalise and regulate coal mining activities in the state in view of the land degradation and forest depletion that are taking place owing to the present unscientific mining methods.  Meghalaya is the only state in the country where miners don’t need to take a mining lease from the government. Resultant: any individual owning coal-bearing land can extract coal and sell it in the market. According to Meghalaya’s deputy chief minister Mukul Sangma, in an effort to bring all coal mining activities under the national Coal Mining (Conservation & Development) Act, 1974, the state government has engaged Coal India Ltd (CIL) to prepare a plan for institutional mining in the region. “We will first review the plan and then take a decision,” Sangma said. Coal India chairman Partha S Bhattacharyya, while maintaining institutional mining was an imminent requirement in the state, said CIL had already submitted a draft plan for institutional mining on which the state government had to take a call. “If the state starts institutional mining, it comes under the national Coal Mining Act,” he said. Bhattacharyya said it was not yet known whether the mines in Meghalaya would come under Coal India’s control or the state government, along with CIL, would float an SPV for the purpose. Besides environment concerns, the state government’s efforts to develop thermal power plants are leading it to regularise mining activities in the region, Sangma said. “We are negotiating with Neepco and some private players to develop coal-based thermal power plants in the state,” he said. “For the initial stage we have identified two sites — one at South Garo hills and another at the West Khasi hills — to generate a total of 960mw by the end of the 11 th plan period,” Sangma added. Meghalaya’s coal reserves are among the finest quality in the country with low ash content and high calorific value, though presence of sulphur in it is very high. Coal found in the region is primarily of sub-bituminous variety and has very good coking content with ash below 7-8%. According to a Meghalaya government official, the state has around 660 million tonne of coal reserves with the Garo hills alone having reserves of around 350 mt. West Dadenggiri, Balpakram, Pyndengrei, Siju, Mawlong-Shella, Laitryngew, Langrin and Bapung are prominent coal-bearing areas and are all witness to unorganised mining, the official added. India’s...

(Source:http://www.financialexpress.com/news/Meghalaya-digs-in--to-regularise-coal-mining/579429/)

Coal projects to be cleared in 150 days

New Delhi, February 13, 2010:  The government is exploring speeding up environment and forestry clearance for coal mining projects in a bid to enhance production and narrow the widening demand-supply gap.  The Prime Minister’s Energy Coordination Committee (ECC), the apex policymaking body for the energy sector, is giving shape to a proposal that envisages forestry clearance for new coal mining projects within 150 days and for renewals in 120 days. In addition, environment clearance for coal mining projects would be given within 60 days while the project that have already received forestry clearance would be eligible for automatic environmental clearance. At present, forestry clearance for coal mining projects take anywhere between 3 and 6 years, and environmental clearance between 3 and 8 months, delaying projects and resulting in loss of production. The coal demand and supply gap has already widened to about 70 million tonne annually and is expected to cross 80 million tonne-mark by 2011-12.  The fast-tracking of clearances would help enhance in a big way coal production and also meet the growing need of the industry, particularly the power sector,” said a coal ministry official who wished not to be identified. The Prime Minister’s Office has also pushed for giving time-bound forestry and environment clearance for coal projects on a priority basis to ensure adequate supply to domestic user industries. The government is also likely to allow the ministry of environment to give automatic clearance (State-ii clearance) to mining projects that have complied with mandatory afforestion clause (stage-I) and have made payment towards net present value of mining area. Companies would be given freedom to carry out extensive survey of mining area by drilling more boreholes without having to secure forestry clearance. At present, only 2 boreholes per square kilometre are allowed, which mining companies feel is too less to ascertain the true potential of a mine. As against the projected demand of about 604 million tonne per annum, the total coal availability during the current financial year is about 534 mtpa. The production gap of 70 mtpa is likely to go up to 81 mtpa by 2012 fiscal. A large part of this shortfall would be met through imports. The imported coal is priced about 50% more than the domestic coal and therefore puts sectors relying on this route at an disadvantage.

(Source:http://economictimes.indiatimes.com)

KPMG outlines strategy to help CIL’s aim

Kolkata, February 12, 2010: Even as the country’s coal shortage is expected to increase to 81 million tonnes by March 2012 (the terminal year of the XI Plan) against the 51 million tonnes projected earlier, Coal India Limited (CIL), which accounts for 82 per cent of India’s coal output, has engaged KPMG Advisory Services for formulating its corporate plan. The management consultant which was engaged in October 2009, had already identified six key areas that will support CIL to realise its vision, namely, managing scale of growth; improving operational efficiency; improving customer-orientation; expanding presence across coal value-chain; becoming employer of choice and focussing on environment and community through sustainable initiatives. A timeframe of 18 months has been fixed for this initiative during which road map for improvement will be laid out, a CIL release said. The vision of CIL is “to emerge from the position of domestic leader to leading global player in the energy sector by adopting best practices from mine to market with due care to environmental and societal sustenance.”  The exercise is aimed at bringing in the necessary transformation in the key areas identified to enable the coal behemoth sustain its role as the largest coal provider to the world’s fourth largest economy.  Sources said that it would identify areas of core competence while mapping its resources and assets and also identify new business opportunities. It will formulate strategies for production for a company whose plans go awry for various extraneous factors, including land acquisition and forest clearance issues.

(Source:http://www.hindu.com/2010/02/12/stories/2010021254521300.htm)

India ready to suspend mining contracts for talks with Maoists

London, February 11, 2010:: Home minister P Chidambaram has said the government is willing to suspend contracts with mining firms as part of efforts to persuade Maoists to give up arms and come to the negotiating table.  “We are willing to suspend all memorandums of understanding (with mining companies) until we talk to the Communist Party of India (Maoist) and review them,” Chidambaram said. He said the government is looking to bring Maoists to negotiations by insisting that mining contracts be reviewed to provide royalty payments for local communities. “The MOUs that have been signed have not been implemented. There is no law and order for them to be implemented,” he said. “When implemented (now) that mining company must pay a certain royalty that should be reinvested for people’s education and their development,” he said.

(Source:http://www.financialexpress.com/news/india-ready-to-suspend-mining-contracts-for-talks-with-maoists/578293/)

BSL pulled up on pollution front

Dhenkanal, February 11, 2010: The Rehabilitation and Peripheral Development Advisory Committee (RPDAC) yesterday rejected the request of Bhusan Steel Limited (BSL) to construct an ash pond in Nimidha village and asked it to go for afforestation around BSL to check pollution. The RPDAC met to discuss rehabilitation and resettlement (R& R) proposals of Rungta Mines, BSL and other companies under the chairmanship of RDC Jamil Ahmed Khan. District-level officials and members of the committee attended. RPDAC members accused BSL management of releasing pollutants. At the meet, BSL management was asked to plant 50,000 anti-pollutant-specific saplings for ecological balance.  As the number of locals recruited by BSL as per its claims did not match the actual figures, to crosscheck the figures and give priority to locals during recruitment in various industries, RPDAC constituted a sub-committee comprising district employment officer, district labour officer and administrators.  Besides, BSL was directed to dump its ash in Talcher in a scientific manner.  Proposal of Rungta Mines to set up a steel industry was approved at the RPDAC meeting.  Khan asked industries to undertake periphery development works as per the R&R policy. He also urged the industries to ensure pipe water supply in the affected villages and educate children of the affected families. He stressed recruitment of 90 per cent educated local youths (skilled and unskilled) in industries. Collector Girish SN, Dhenkanal MP Tathagata Satpathy and officials were present.

(Source:http://expressbuzz.com)

Sand mining: Residents demand blanket ban

Mangalore, February 10, 2010:

Residents of Sajipapadu have demanded blanket ban on sand mining in Dakshina Kannada district and have urged various organisations to join hands in the fight against sand mining being waged by the residents of Sajipapadu.

Addressing a news conference, resident of Sajipapdau S Abubakar Sajipapadu said that though High Court has issued a interim stay order on ongoing illegal mining at Sajipapadu village, following intense protest from the residents, it has been going on in various places unabetted.“We are going to stage a distict-wide protest against the same soon against transport of sand from our district to Kerala State,” he said and added that a Mines Adalat which was scheduled at Deputy Commissioner’s office on December 25 too was postponed due to pressure from mine lords.

(Source:http://www.deccanherald.com/content/51802/sand-mining-residents-demand-blanket.html)

Amnesty raps Vedanta over treatment of tribals

New Delhi, February 10, 2010: Human rights watchdog Amnesty International on Tuesday alleged that the government and Vedanta had failed to protect Orissa's indigenous communities from health hazards of mining. However, the mining major hit back saying these claims were based on "outdated document". In a report released on Tuesday, Amnesty alleged that the 8,000-strong community, mostly tribals in Orissa's Lanjigarh suffered violations of human rights to water and health, due to pollution emanating from Vedanta's aluminium refinery. "Vedanta Aluminium Ltd's alumina refinery has led to water and air pollution, seriously undermining the quality of life and threatening the health of nearby communities," the Amnesty report said. It also alleged that the Centre failed to obtain "free, prior and informed consent" of the Dongria Kondh people living in forests of Niyamgiri Hills before approving this project. The Centre, on its part, said it is yet to receive the Amnesty's report and as such, a new regulation (the Mines and Minerals Development and Regulation Act) is on the anvil, which will take care of issues concerning tribal rights and welfare. Reacting to the report, Vedanta said: "The majority of the report is based on an outdated document, which was subjected to the scrutiny by the Supreme Court." The firm claimed that it had offered for joint verification of allegations in eight villages, and dialogue on every aspect of the report. When contacted, Mines secretary, Ms Santha Sheela Nair, said: "Nothing has come to our notice regarding Niyamgiri mines. We have not received any recommendations from the government as yet." Amnesty said tribals in Niyamgiri Hills had complained of health hazards after mining began.

(Source:http://epaper.asianage.com/ASIAN/AAGE/2010/02/10/ArticleHtmls/10_02_2010_017_006.shtml?Mode=1)

Orissa tribals laud stake sale by Church of England

Bhubaneswar, February 10, 2010: THE Dongria Kondh people living around the Niyamgiri hills in Orissa’s Kalahandi district, one of the most primitive tribal groups, have lauded the Church of England pulling out of UK-based Vedanta Resources, saying their stand had been once again been vindicated. The Church of England has made it clear that it isn’t satisfied with the level of regard for human rights and local communities. The tribals have been opposing opening up of the Niyamgiri hills, which is rich in bauxite, saying mining will lead to massive deforestation, destruction of local ecosystems and undermine water sources in the two rivers — Vansdahara and the Nagavali — and 36 springs. The hills are sacred to the indigenous community. The Anil Agarwal-led Vedanta Resources runs an alumina refinery in Lanjigarh and plans to mine the Niyamgiri hills for bauxite in Orissa.  “The Church of England’s withdrawal is a vindication of our stand that Vedanta’s operations and mining plans would have destroyed the very way of life of the Kondh people,” Bratindi Jena, who leads ActionAid India’s work on tribal rights on Monday told ET.  Last November, the Church of England had sent Edward Masson, a representative to look into the claims of violation in complete disregard of the community’s will by Vedanta. This was prompted by protests ahead of the annual meeting by Vedanta shareholders in London. The Kondh tribal community has been doing everything to stop mining activity. But they have now found a powerful ally in the Church of England. The Church’s decision will help activists, environmentalists, tribals opposing Vedanta’s move to mine bauxite in joint venture with the state owned Orissa Mining Corporation (OMC) after the latter obtained statutory clearances. A spokesman of Vedanta said here, “We are disappointed by the Church of England’s discussion to sell its holding in Vedanta. Vedanta remains fully committed to pursue its investment in a responsible manner respecting the environment and human rights. We work with a large number of NGOs, as well as authorities of India, the World’s largest democracy, ensuring all our projects conducted in compliance with the Law & Infrastructural Best Practices. We will continue to engage closely with the Church of England to address the concerns they have raised.” Bratindi, however, disputed the mining giant’s claim saying that that Vedanta’s mining operation will destroy all that is sacred to the indigenous communities of Niyamgiri. Even the Central Empowered Committee (CEC) appointed by the Supreme Court had warned of adverse consequences of the mining at Niyamgiri hills.

(Source:http://epaper.timesofindia.com)

People power to save Jharia

Dhanbad, February 09, 2010: Residents, chambers of commerce and lawyers of Jharia are coming together to save the coal mining town plagued by a raging underground fire, fed up of the short-sightedness of coal companies to the continuing threat of illegal as well indiscriminate mining. As a first step, representatives of Jharia Coal Field Bachao Samiti (JCBS), Federation of Dhanbad Zilla Chamber of the Commerce (FDZCC) and Dhanbad Bar Association have joined hands to hold a seminar and meeting in Jharia on February 14 to discuss various aspects of the problem, including the proposed diversion of NH-32 passing through Kendua, Karkend, Putki, Mahuda and other areas of the district.  Samiti secretary Madan Lal Khanna said it was high time for citizens to wage a coordinated fight. “We need to put things in the right perspective instead of carrying out with separate struggles which weakens the voice of opposition.”  He said rehabilitation of the local population out of the fire zone would be discussed in the light of the earlier Supreme Court ruling on the issue. “None other than the BCCL is responsible for the subsidence and underground fire beneath NH-32,” alleged Khanna and asked why residents were being made to pay a price for the company’s unscientific mining activities. He alleged that not only the highway, railway lines passing through Bhaga Bhowra and Katras had also been adversely hit due to the unplanned mining of BCCL. Vice-president of Federation of Jharkhand Chamber of Commerce and Industry (FJCCI) Rajiv Sharma, who was also general secretary of the Dhanbad Zilla Chamber of Commerce, said more than 15 lakh people would have to be moved out of Jharia. Alleging that BCCL was ill equipped to handle the crisis, he said: “When 400-odd people of Bokapahari could not be rehabilitated in the last two years, how can 15 lakh people be resettled.”

(Source:http://telegraphindia.com/1100209/jsp/jharkhand/story_12083231.jsp)

Avatar plot a reality for Orissa tribe

New Delhi, February 09, 2010: They are an indigenous people struggling to defend their land against mining interests who threaten their homes, culture and sacred deity. Sounds familiar? No, they are not blue-skinned aliens and this is not the plot for the blockbuster film Avatar. Instead, it is the real life story of the Dongria Kondhs, a tribe of about 8,000 people in Orissa. Many of them are protesting the plans of mining giant Vedanta Resources and its subsidiary Sterlite Industries to mine bauxite in the Niyamgiri Hills, which they worship as their deity. In an advertisement in Monday’s edition of the film industry magazine Variety, tribal rights organisation Survival International appealed to Avatar director James Cameron on behalf of the Dongria Kondhs. “Avatar is fantasy…and real,” reads the advertisement. “We’ve watched your film — now watch ours,” it says, with a link to Survival’s 10-minute film ‘Mine: story of a sacred mountain,’ narrated by British actress Joanna Lumley. Survival’s director Stephen Corry says: “Just as the Na’vi [of Avatar] describe the forest of Pandora as ‘their everything,’ for the Dongria Kondh, life and land have always been deeply connected. The fundamental story of Avatar — if you take away the multi-coloured lemurs, the long-trunked horses and warring androids — is being played out today in the hills of Niyamgiri.”

Sells stake

Last Friday, the Church of England sold its £3.8 million stake in Vedanta, saying it was unsatisfied with “the level of respect for human rights and local communities” shown by the mining company.  In a statement issued after the Church of England’s decision, Vedanta said that it “remains fully committed to pursuing its investments in a responsible manner, respecting the environment and human rights.”

(Source:http://www.hindu.com/2010/02/09/stories/2010020959891300.htm)

NGO appeals to Cameron in its fight against Vedanta

London, February 09, 2010: Survival International, a London-based NGO, has appealed to the director of the Hollywood blockbuster Avatar, James Cameron, to lend his support in fighting against London-listed mining and metals major Vedanta Resources from setting up its aluminium plant in Orissa. Survival has appealed to the director through an advertisement in entertainment magazine Variety, in which the NGO has tried to draw parallels between the latter’s latest big budget 3D movie and the condition of the Dongria Kondh tribe in Niyamgiri, Orissa. Survival today released its 11-minute documentary on the resistance put forward by the local tribes and invited Cameron to watch it. Survival’s director Stephen Corry said, “Just as the Na’vi of Avatar describes the forest of Pandora as ‘their everything’, for the Dongria Kondh, life and land have always been deeply connected. The fundamental story of Avatar — if you take away the multi-coloured lemurs, the long-trunked horses and warring androids — is being played out today in the hills of Niyamgiri in Orissa.” “Like the Na’vi, the Dongria Kondhs are also at risk, as their lands are set to be mined by Vedanta Resources, who will stop at nothing to achieve their aims. The mine will destroy the forests on which the Dongria Kondh depend and wreck the lives of thousands of other Kondh tribal people living in the area.” The NGO’s film ends with a note that Vedanta was invited to respond to the movie, but received none so far. The highlight of the film also includes a poignant narrative provided by British actor and activist Joanna Lumley, who was recently in the news for helping veteran Gurkha soldiers in getting British citizenship, for their community’s 200-year old role in the British army. Through her narrative, Lumley has also lent her support to Survival’s campaign against Vedanta’s aluminium project in the bauxite rich mountains in Niyamgiri. The appeal to director James Cameron says, “Avatar is fantasy...and real. The Dongria Kondh tribe in India are struggling to defend their land against a mining company hell-bent on destroying their sacred mountain. Please help the Dongria. We’ve watched your film — now watch ours: www.survivalinternational.org/films/min.”

Support from a famous Hollywood director like Cameron would be a major win for Survival International, which had recently persuaded the Church of England to sell its investment in Vedanta Resources for ethical reasons. Even though the church’s investment in the company was very small (£2.5 million), the sale generated great media attention to the NGO’s campaign. In 2007, the Norwegian government also sold its $13 million stake, saying, “there is little reason to believe that the company’s unacceptable practice will change in the future”. In addition, Martin Currie Investments sold its £2.3 million stake last year, and BP’s pension fund reduced its holdings in Vedanta due to “concerns about the way the company operates”.

(Source:http://www.business-standard.com/india/news/ngo-appeals-to-cameron-in-its-fight-against-vedanta/385095/)

Hearing on ore transportation via Bicholim postponed

Mayem, February 08, 2010: The hearing on the transportation of ore through Bicholim city was postponed till March 11, after the residents opposed the suggestions of the legal consultant representing the truck owners. The hearing on the transportation of iron ore through Bicholim city was scheduled at the Deputy Collector’s office in Bicholim on Monday. The residents at the hearing opposed the remedy suggested by Adv Sawaikar, who defended the truck owners that the issue needs to be settled amicably, even as all the mining trucks were prohibited from plying through the Bicholim city until the next hearing. The residents at the hearing stated that transportation of ore through Bicholim city has become a dangerous affair as far as safety and health of the residents is concerned. The residents also suggested that the mining lobby or the truck owners should construct its own road to transport ore, which will be carried out till 2029 as per the permission granted to the truck owners by the government. In his attempt to support the truck owners, Adv Sawaikar said that no one can stop transport mining plying through public roads. However, the residents did not pay any heed to his request. PSI Terrence Vaz also put forth his defence as far as public law is concerned. Deputy Collector D H Kenawdekar tried to pacify the residents as tempers began to rise. A large police force was deployed at the deputy collector’s office to avoid any untoward incident. President of Bicholim Nagarik Kruti Samiti MLA Rajesh Patnekar, Bicholim Municipal Council Chairperson Satish Gaonkar, Councillors Bhagwan Harmalkar and Kamlakar Teli, former councillors Rajan Kadkade, Shashikant Naik Halarnkar, Naresh Kadkade and hundreds of people from Bicholim were present at the hearing.

(Source:http://oheraldo.in/news/Local%20News/Hearing-on-ore-transportation-via-Bicholim-postponed/33294.html)

Mineral note discriminatory, says Soren

Ranchi, February 08, 2010: The Jharkhand government has taken exception to a notification of the Union Ministry of Mines which has fixed the sale prices of minerals, with Chief Minister Shibu Soren writing a letter to Prime Minister Manmohan Singh to seek his intervention in the matter.

“Jharkhand supplies a huge quantity of precious minerals to the country. But it got the lowest or near the lowest royalty. This was evident from the notification which had fixed different prices of a similar grade mineral for different states. It is discriminatory and a conspiracy against Jharkhand. We hope you take note of it and do justice,” the CM has written, questioning the rationale of the Indian Bureau of Mines in determining the state-wise average sale value of minerals every month.

(Source:http://www.indianexpress.com/news/mineral-note-discriminatory-says-soren/576982/)

Vedanta Resources caught in web of allegations

Mumbai, February 08, 2010: Vedanta Resources, the Anil Agarwal-controlled mining and metals conglomerate, continues to battle a maelstrom of allegations over its proposed mining work in Niyamgiri, Orissa. The Church of England, a shareholder in the London-listed Vedanta, last week exited its investment alleging unclear rehabilitation policies. The Church of England isn’t the whole institution to have expressed displeasure over alleged ethical lapses by Vedanta which has operations in India, Zambia, Armenia and Australia. In 2007, the Norwegian government’s pension fund sold its stake in Vedanta citing similar reasons as the Church of England. A coalition of NGOs and activists, foreign and Indian, has for long carried on an unremitting campaign against plans by Sterlite, the Indian arm of Vedanta, to mine bauxite in Orissa. The mining activities have been approved by the Supreme Court in 2008, though the company is yet to receive final regulatory approval from the environment ministry. As part of the approval process, the company is supposed to engage the local population. Reports by two UK-based NGOs, Survival International and Amnesty International, the latter a body that specialises in probing abuses of human rights, alleged that Vedanta wasn’t doing enough for the local tribal populace that faces displacement once mining at Niyamgiri commences. These reports contributed to the Church of England’s decision to sell its stake. Vedanta chairman Anil Agarwal robustly denied allegations of maltreatment of locals. In an email response to a detailed questionnaire from ET, Mr. Agarwal said that the mining project at Niyamgiri has been formally authorised by the Supreme Court, following a lengthy and extensively documented approval and procedure, implemented jointly by Vedanta’s subsidiary and its Orissa state government partner, Orissa Mining Corporation. “The approval procedure included due consultation with local communities carried out strictly in accordance with India’s legal requirements, which revealed that the majority of the local community supported the project,” he told ET. A senior Sterlite official, who spoke on condition of anonymity, saw the hands of what he described as “foreign mining giants” behind the activities of the NGOs. Shareholder meetings of Vedanta in London have routinely attracted demonstrations by activists and tribal people from Orissa who are allegedly facing displacement. Despite the global spread of its operations, the bulk of Vedanta’s revenues and profits originate from India. Sterlite, its flagship Indian arm, is 52% owned by the promoters, the Agarwal family. Institutional shareholders include MFs like UTI, which own 3.5%, insurance companies (3.9%) and FIIs (14.5%) On Sunday, large domestic institutions such as state-owned Life Insurance Corporation (LIC) and ICICI Prudential Life weren’t very forthcoming with their comments. While LIC, which owns a little over 2% in Sterlite, didn’t respond to enquiries by ET, chairman TS Vijayan didn’t return phone calls or replied to text messages, ICICI Prudential Life managing director V Vaidyanathan said he wouldn’t like to comment on the subject. It is however unclear whether these two institutions would be influenced by the Church of England’s decision, as typically, Indian lenders make their own assessment on such investments. ICICI Pru owns about 1.5% in Sterlite. Sterlite owns controlling stakes in Balco, an aluminium-maker and Hindustan Zinc, two companies which were bought by Sterlite during the privatisation carried out by the NDA government early years of the noughties. The Sterlite scrip closed at Rs 749 on Saturday, marginally up despite the controversy breaking over the weekend. Activists allege that bauxite mining at Niyamgiri would destroy the natural environment at the place, besides displacing the tribal community. Even the Supreme Court imprimatur hasn’t quelled opposition. The quality of the court’s decision has been criticised by many observers because it had stopped Vedanta Resources from mining bauxite in 2007 citing the decision by the Norwegian government to sell its stake in the company. But while barring Vedanta, the SC allowed mining by Sterlite, though the latter happens to be the Indian affiliate of Vedanta, a logic which has been criticised by many legal experts. The criticism by the mother church of the Anglican community isn’t the only public relations fiasco confronting Mr Agarwal. In September last year an accident at an under construction power plant of Balco in Chattisgarh led to the death of over 50 workers and first information reports or FIRs being registered by the Police against senior company officials. Some Chinese engineers were also detained sparking a mini-diplomatic spat between China and India. In the interview with ET Mr Agarwal said he deeply regretted the loss of life. Sterlite which makes copper at Tuticorin in Tamil Nadu has also faced allegations of damaging the environment, charges which the company denies. Mr Agarwal has also had run-ins with shareholders. Vedanta had earlier faced opposition from global hedge funds to a restructuring plan that was eventually dropped. In 2008, The Children’s Investment Fund, a UK-based hedge fund, threatened legal action against Vedanta, if it didn’t withdraw a plan that would have distributed the company’s holdings in various entities, with TCIF alleging that the plan was skewed against minority shareholders. And in the early years of this century a plan to delist Sterlite from the Indian bourses was scuppered after receiving dollops of negative publicity.

(Source:http://economictimes.indiatimes.com/News/News-By-Industry/Indl-Goods-/-Svs/Metals-Mining/Vedanta-Resources-caught-in-web-of-allegations/articleshow/5546599.cms?curpg=2)

Lafarge can’t do limestone mining in Meghalaya: SC

New Delhi, February 08, 2010: In what could spell trouble for the French cement giant Lafarge’s $255 million cement plant in Bangladesh, the Supreme Court on Friday in an interim order banned mining of limestone in Meghalaya turning off supply of raw material from its captive plant in India. A three judge special bench headed by chief justice KG Balakrishnan ordered for a complete halt of mining in East Khasi Hill District till March 19. "There shall be no mining till March 19", said court in its order. It further directed for pricing of the piled up material already mined at the prevailing market price. The court passed the order taking into account two grounds. First, the allegation of tribal land was being transfered to the French company’s subsidiary and then mortgaged to foreign banks for raising a loan of Rs $153 million. It was pointed out to the court that land under mining in Shella in Meghalaya was sold to Lum Mawshun Mineral Pvt Ltd which was further transferred in 2006 to Lafarge Umiam Mining Pvt Ltd.( (LUMPL). These land has now been mortgaged to Lafarge Surma Cement which is a joint venture of Frech cement giant and Cementos Mentus Spanish Company. Senior counsel PS Narasimha on behalf of Shella Action Committee, a forum of villagers, said, the land was now being mortaged to foreign banks — Asian Development Bank, International Finance Corporation, Deustche Investetionaud Ent, European Investment Bank, The Arab Bangladesh Bank and the Standard Chartered Bank, Bangladesh, for a loan of $ 153 million. Second, amicus curiae Harish Salve and ADN Rao informed the court that not only was the eco-fragile area opened up without the mandatory forest clearance, the raw material was being sent to Bangladesh at the cost price depriving India of a huge revenue due from customs and other duties. Additional solicitor general Harin Raval, appearing for MoEF, said that the ministry had clearly issued an order in May 2007 staying the mining operations.  This was, however, countered by company’s counsel Mukul Rohatgi. He said, necessary environmental clearance was taken by the cement giant in year 2000 and only seven year later it was declared as forest areas, adding, five cement plants have been set up in with over Rs 5,000 crore in India. The court, however, remarked, "It is a very serious issue. Both issue of mortgagee of land to foreign banks and mining in eco-fragile areas have to be answered." It asked the French company to give details of its operation and the manner it started mining in the area posting the case for further hearing on March 19. LUMPL had been mining the lime stone quarry area spread over 100 hectares near Indo-Bangladesh border for supply of raw material to Lafarge Surma Cement Project at Chhatak in Sunamganj, Bangaldesh. Lafarge and Spanish cement producer Cementos Mollins had set up the state-of-art fully integrated cement plant at Chhatak with a captive power plant of 300 MW. In 2001, the Bangladesh High Commissioner and then Indian Foreign Secretary Lalit Mansingh had singed an agreement for uninterrupted supply of raw material to the plant from the mines in Meghalaya. After this agreement, Lafarge had claimed to have obtained relevant clearances from ministry of environment and forests, the state government, the autonomous hill council and the chief conservator of forest for limestone quarrying in East Khasi Hills.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/Lafarge-cant-do-limestone-mining-in-Meghalaya-SC/articleshow/5546738.cms)

SC bans French cement major’s mining work in Meghalaya

New Delhi, February 06, 2010: The Supreme Court on Friday imposed a month’s ban on French cement major Lafarge’s limestone mining operations in Meghalaya after being informed how the business was illegally carried out on forest land. In a bid to save the ‘eco sensitive’ zone around Cherrapunji in the East Khasi Hills where the mines are situated, the Special Forest Bench of Chief Justice KG Balakrishnan, Justices SH Kapadia and Aftab Alam said, “We will not permit mining in this eco-fragile zone.” Giving a month’s time for the French company to get details about its business operations, the court posted the matter for further hearing on March 19. The decision has come as a big blow to the cement major since the Nangtroi mines in Meghalaya provides a rich source of limestone for Lafarge’s $225 million cement plant in Bangladesh. The limestone collected from the hills is transported across a 17-kilometre long conveyor belt passing through forests from Indian territory to its Chhatak cement plant in Bangladesh. Besides, the company even faced serious charges of anomalies in purchase and mortgage of land contrary to the rules prevailing in the State. Senior advocate PS Narasimha, representing the local Shella village and Nangtroi village, pointed out that the land in question is a scheduled area governed by the Sixth Schedule of the Constitution. Such land could only be purchased or traded by tribals. Further, permission for such purchase of land requires consent under the Meghalaya Transfer of Land (Regulation) Act 1971. Providing a set of more damning disclosures about the limestone mining operations by the company, amicus curiae and senior advocate Harish Salve informed the Bench that Lafarge’s Indian arm, namely Lafarge Umiam Mining Private Limited, had purchased land from Shella village council and began business without obtaining the mandatory approval under the Forest Conservation Act. More shockingly, the land in question was mortgaged by the company to obtain loan to the tune of $153 million from its lending partners namely Asian Development Bank, International Finance Corporation, DEB, etc. Salve also pointed out the grave economic loss suffered by the country by permitting cement to be manufactured across the border without charging customs or other duties payable on the raw material before exiting the international border. Expressing its amazement at the revelations made by Salve, the Bench asked senior advocates Mukul Rohtagi and Abhishek Manu Singhvi to provide full details of the relevant provisions and procedures followed by the company in extracting limestone.

(Source:http://dailypioneer.com/234052/SC-bans-French-cement-major%E2%80%99s-mining-work-in-Meghalaya.html)

Church of England sells stake in Vedanta

London, February 6, 2010: Withdraws investment over Orissa project.

Metals and mining major and Anil Agarwal-controlled Vedanta Resouces today received a moral blow to its proposed mining project in Orissa after the Church of England withdrew its investments in the company, citing ethical reasons for the decision. The Church Commissioners and the Church of England Pensions Board have sold their shares in Vedanta Resources on the advice of the Church’s Ethical Investment Advisory Group (EIAG). The proposed aluminum project in Orissa faced a serious backlash from environmental and human rights activists regarding the displacement of the local Dongria Kondh community in the Niyamgiri Hills. The Church’s investment in the Vedanta stock is relatively small, at £2.5 million, but a divestment would be a powerfully symbolic gesture and a victory for campaigners. EIAG Chairman, John Reynolds, said: “I am a passionate advocate for engagement with companies when we have ethical concerns. We have an excellent track record of getting our concerns heard and acted upon by the companies in which the Church investing bodies hold shares. After six months of engagement (with the company), we are not satisfied that Vedanta has shown, or is likely in future to show, the level of respect for human rights and local communities that we expect of companies in whom the Church investing bodies hold shares. In these circumstances the Ethical Investment Advisory Group advised that it would be inconsistent with the Church investing bodies’ joint ethical investment policy for the investing bodies to remain invested.” The EIAG, however, said it will maintain contact with Vedanta. “We will be pleased to review our recommendation to the Church investing bodies if the company addresses the concerns we have raised,” said Reynolds. At the time of going to print, a response from Vedanta could not be obtained. The Church is not the first organisation to disinvest from Vedanta on ethical grounds. In 2007, the Norwegian government sold its $13 million stake, saying, “there is little reason to believe that the company’s unacceptable practice will change in the future”. In addition, Martin Currie Investments sold its £2.3 million stake last year, and BP’s pension fund reduced its holdings in Vedanta due to “concerns about the way the company operates”. NGO Survival International Director Stephen Corry said, “The Church’s unprecedented and very welcome decision sends a strong signal to companies that trample on tribal peoples’ rights: we will not bankroll your abuses. Anybody that has shares in Vedanta should sell them today if they care about human rights.” Survival is lobbying other shareholders, including the Rowntree Foundation. In October 2009 The UK National Contact Point (NCP) for the OECD Guidelines for Multinational Enterprises upheld Survival International’s allegation that Vedanta Resources had failed to put in place an adequate and timely consultation mechanism to engage the Dongria Kondh community, whose health and environment would be directly affected by the company’s plans to construct a bauxite mine in the Niyamgiri Hills.

(Source:http://www.business-standard.com/india/news/churchengland-sells-stake-in-vedanta/384788/)

SteelMin makes case for 20% export duty on high-grade ore

New Delhi, February 5, 2010: In a move that is likely to hit the miners hard, the Steel Ministry has asked the government to heavily disincentivise iron ore exports. If the ministry has its way then the Finance Ministry could double the export duty on high-grade ore (to 20 per cent) in the coming Budget.  In its set of pre-Budget proposals for the Finance Ministry, the Steel Ministry pointed out that export of the mineral has surged in the first seven months of 2009-10 by more than 20 per cent in comparison to the same period last year and “such an increase in iron ore export was witnessed at a time when the country’s overall exports were showing negative growth.” Citing that the exports have spiralled up on account of global demand, particularly from China, the spot prices of iron ore fines (63.5 Fe) have risen to $90-95 FOB currently and “therefore there is an urgent need to heavily disincentivise export of iron ore not only to conserve it for the long-term requirement of the domestic steel industry but also to curb its illegal mining.”  “To prevent unabashed export of iron ore out of the country and to conserve it for long-term value addition by the domestic steel industry, an export duty of 20 per cent may be levied on export of all varieties of iron ore,” the ministry said in its recommendation.  The Chinese steel industry’s demand for Indian iron ore has witnessed considerable increase in the recent months, which further surged following the decrease in the export duty. The country’s iron ore export during October 2009 was around 10 million tonnes as compared to around 5 million tonnes during October 2008 signifying an increase of more than 100 per cent. Overall during the first seven months of the fiscal 2009-10 (April-October) period exports were higher by more than 20 per cent.  On the steel front, the ministry has pitched for maintaining the status quo on the import duty of 5 per cent on all products including flat, finished, semi-finished, stainless and special alloy steel. While recommending this, it pointed out that domestic steel prices seemed to be firming up in January as major manufacturers had upped the retail prices by Rs 1,000-1,500 per tonne. Besides, the steel demand has surprisingly picked up in December 2009, it said and pointed out that in the same month the finished steel production rose by 14.9 per cent and consumption increased by 15.5 per cent. The ministry suggested that customs duty on all steel products be retained at the current level of 5 per cent.

(Source:http://www.indianexpress.com/news/steelmin-makes-case-for-20-export-duty-on-highgrade-ore/575928/0)

Indian and Canadian Govt betray workers by opposing a ban on Asbestos

New Delhi, February 05, 2010: Trade unions, human rights activists and workers today demonstrated in front of FICCI House and called upon the governments of India and Canada to halt the trade in white asbestos. They urged them to invest instead in addressing the occupational and safety concerns of workers and consumers using asbestos and ensuring compensation to all harmed by asbestos. A joint letter was also sent to Dr. Manmohan Singh by AICCTU, AITUC, TUCC, NTUI and BANI calling upon him to immediately Ban Asbestos and ensure passage of the White Asbestos (Ban on Use and Import) Bill 2009 pending in Parliament. At the press conference today speakers from several organisations called upon Dr. Manmohan Singh and Mr. Charest visiting premier (chief minister) of Quebec to stand up to the powerful asbestos industry in both countries which is spending millions of dollars to intimidate and silence workers, doctors, scientists and activists from articulating a truth that has been gathered over 300 years by medical experts and scientists, namely – that asbestos kills! There is no safe use of asbestos!

Trade unions and human rights activists sent a message to Mr. Charest to stop shipping chrysotile asbestos to India when his own government is spending millions of dollars to remove chrysotile asbestos from Quebec's schools, hospitals and buildings. Quebec’s own health experts have told Mr. Charest that the evidence is undeniable that it is impossible to manage chrysotile asbestos safely. Mr. Charest was exhorted to listen to the world's leading, authoritative scientific institutions and experts who are asking him to stop exporting asbestos. The speakers appealed to Mr Charest to respect Canada’s tremendous human rights record and put people over profit and tell the truth about chrysotile asbestos. He is on a trade mission promoting education & science and accompanied by Quebec university presidents. Therefore they should speak up to defend scientific freedom of speech!

Trade unions and human rights activists urged Dr. Manmohan Singh to face the truth that Quebec is exporting its public health tragedy to India even as it has stopped use of chrysotile asbestos in its own country. The Indian government should recognise that in face of declining use for asbestos in developed countries, corporate greed has forced a shift in asbestos trade toward developing countries. Today a powerful message was sent out that our countries can not be turned into global dumping grounds through transfer of hazardous industries and hazardous waste without regard for the labour-, human- and environmental rights.

Trade unions and activists called upon Dr. Manmohan Singh and Mr. Charest to:

·        Ban mining, manufacture, use and trade of asbestos in India and Canada.

·        Let the expert health authorities of both countries set the policy on asbestos, not the asbestos lobby

·        Revise their stand and support the listing of chrysotile asbestos in the PIC list of the Rotterdam Convention.

·        Ratify the ILO Convention on Asbestos.

·        Close all asbestos mines and take concrete steps to address the occupational and safety concerns of workers employed in asbestos related industries; ensure compensation for workers harmed by asbestos and support a just transition for workers losing employment due to a ban on the mining, use in manufacture, and trade in asbestos.

(Soource:http://www.mynews.in/News/Indian_and_Canadian_Govt_betray_workers_by_opposing_a_ban_on_Asbestos_N37311.html#)

SC halts Lafarges Meghalaya mining

New Delhi, February 05, 2010: The Supreme Court stayed the mining of limestone by Lafarge Umiam Mining Pvt. Ltd (LUMPL) in Meghalaya on Friday. The decision may hit the production of cement by a unit of Lafarge SA, the world's largest cement maker, in neighbouring Bangladesh unless it's able to source limestone from alternative sources to feed the plant.The Supreme Court was hearing a petition filed by 21 local tribals and the Shella Action Committee, a non-governmental organization. The petition claimed that LUMPL had obtained environmental clearance by falsely declaring forest areas as wasteland and non-forest areas; it also alleged that the company had illegally transferred tribal land protected under the sixth schedule of the Constitution to itself and mortgaged it in favour of foreign banks to secure a loan of $153 million (around Rs713 crore today). "This is a serious allegation and Lafarge must clarify its position," said Justice S.H. Kapadia, a member of the three-judge bench. "This cannot go on."By staying mining operations, the apex court bench headed by Chief Justice of India K.G. Balakrishnan overturned a previous order passed in November 2007 that had allowed the France-based company to carry on mining operations in the area.LUMPL is a 100% subsidiary of Lafarge Surma Cement Ltd of Bangladesh, which operates the 1.2 million tonnes per annum cement plant at Chhatak, Bangladesh, the company said in emailed press release. Lafarge Surma is a joint venture between Lafarge SA and Cementos Molins SA of Spain. The ore is transported on a conveyor belt over a 17km stretch, with 7km of this in India and the rest located in Bangladesh across the international border. The sixth schedule of the Constitution protects the rights of various hill communities, especially with respect to land. Responding to the judge's remarks, LUMPL's lawyer Mukul Rohatgi said: "I am not aware of these allegations." LUMPL has been asked to file its responses to the points raised in court at the next hearing, which has been fixed for 19 March, the company said in the release. "We are studying the details of the order and all necessary information will be provided as per the directions of the Honourable Supreme Court- within the stipulated time," the company said. In the interim, "the court has asked LUMPL to hold its mining operations in abeyance... However, the Honourable Supreme Court has allowed the company (LUMPL) to export the mined limestone lying at the site." Harish Salve, amicus curiae (adviser to the court) in the matter, asked for a stay on the mining operations, referring to the adverse Central Empowered Committee (CEC) report of September 2007, which had observed there was no public interest in allowing this to be undertaken in a location that had ecological implications. The CEC report had stated that Lafarge Surma Cement was situated in Bangladesh and that since the company only sourced raw material, it didn't generate value addition, employment generation, taxes, revenue or other economic benefits to India. "This raises serious doubts and concerns about the public interest and desirability in allowing the mining in an eco-sensitive area in the North-Eastern region," CEC noted. CEC had decided to give its go-ahead for the project since the matter was too advanced to be reversed, but recommended levying "penal consequences and deterrent cost" on the company and government officials. Referring to the committee's report that the government was left with no option, but to permit the Lafarge project to proceed, justice Kapadia said: "There is no question of fait accompli and things can be redressed."

(Source: Fwww.livemint.com%2F2010%2F02%2F06001852%2FSC-halts-Lafarge8217s-Megha.html&itemPos=2)

Underground oil pipeline in danger 

Raniganj, February 3, 2010 : The continued illegal coal mining in Raniganj has posed a threat to the Haldia-Barauni underground oil pipeline passing through the area. Experts apprehend that an explosion is imminent and fearing this, police sought immediate intervention of the Eastern Coalfields Limited.  The SOS by the police has become more significant following the recent mine fire in Ratibati locality in Raniganj, barely a hundred metres  from the underground pipeline. Senior pipeline experts with the Indian Oil Corporation inspected the endangered stretch of the pipeline passing through Topsi, Kantagoria, North Searsole coal-bearing zone on 9 January and expressed concern over the situation. Mr M Haq Sarkar, senior manager of IOC installation at Asansol, who supervises maintenance of the pipeline link between Mourigram and Rajbandh said: “The fuel pipeline of 12-inch diameter carries 196 Kilo Litre of highly inflammable oil per hour and it shouldn’t be disturbed by any sort of external thrust or overpower load factor.” Mr Bidyut Biswas, a pipeline expert with the IOC, inspected the endangered site and stated that the pipeline was under severe threat.
However, illegal mining continues unabated across certain stretches in Jamuria, Raniganj and Andal and the local police stands accused of being involved with the coal mafias.  But now, considering the gravity of the situation, cops are shifting allegiance. The OC, Jamuria PS, Mr Saikat Roy informed the IOC authorities of the situation. He said: “Since 6 August 2009 I have sent three letters to the ECL authorities, seeking their assistance to help close the illegal mine pits. But unfortunately they haven’t responded as yet.”  With the recent threat to the IOC pipeline, police have started blaming the ECL for its non-cooperation. Mr Roy said: “The manager of the neighbouring ECL mine hasn’t responded, despite several reminders.” The ECL meanwhile has reacted sharply brushing aside the charges of non-cooperation levelled against it.

(Source:http://thestatesman.net/index.php?option=com_content&view=article&id=318997&catid=73)

Mining traffic during school hours banned at Usgao

Marcel, February 3, 2010: Public agitations by residents of Usgao have yielded the desired results, with traffic authorities implementing the North Goa collector’s order to stop mining traffic during school hours. “As per directives, we have now begun to stop trucks carrying ore during schools hours from 7 am to 8 am and from 1 pm to 2 pm at two points, the Usgao Bridge and near the sugarcane factory at Dharbandora,” informed Ponda Traffic PI Salim Shaik. The decision follows from the agitation led by Usgao Parish Priest Fr Felix Lobo, who along with villagers, recently blocked the Usgao Bridge to demand the implementation of the north Goa collector’s order. “I am very happy that authorities have decided to implement the North Goa Collector’s order. Now, the transport authorities should be firm in enforcing the order”, said Fr Felix Lobo. ”I have been demanding action against over-speeding and overloaded trucks since the last seven years. On numerous occasions, we were forced to agitate to highlight our demands,” he added. “I am not against truck operators nor have I any personal interest in the issue. I am doing this for the society and will continue my work”, Fr Lobo added. The Ponda Traffic police has admitted that it would be a tough task to implement the North Goa Collector’s order, as it would lead to a traffic jam in the area. “The NH 4A will witness a serpentine queue of trucks from from 7 am to 8 am and from 1 to 2 pm at the two points. Since the road is narrow, only one lane will be free as trucks will be lined along the other lane of the road. The NH 4A from Pansule junction will also witness the same situation,” said PI Shaik.

(Source:http://oheraldo.in/news/Local%20News/Mining-traffic-during-school-hours-banned-at-Usgao/33078.html)

SC breather to Orissa on Tangarpada mines development

New Delhi, February 03, 2010: The Supreme Court has granted time till March 15 to the Orissa government to comply with its earlier order on the development of Tangarpada chromite mines in Dhenkanal district of the state.  While three private bidders—Tata Iron & Steel Company, Jindal Strips and Visa Steel—were earlier shortlisted for the tender, the state government had proposed to develop the mines on its own through a special-purpose vehicle set up by two state-owned concerns, Industrial Development Corporation of Orissa Ltd (IDCOL) and Orissa Mining Corporation (OMC), rather than private parties. The decision to develop the mines on its own was taken after IDCOL had evaluated fresh financial bids from the shortlisted companies following directives from the Supreme Court in February 2008. A bench, headed by Justice P Sathasivam, while extending the time on IDCOL’s request said, “…we intend to extend further time and we make it clear that we have not expressed anything either on the conduct of the IDCOL or the state government or the merits of the objection of Jindal in this application. Without expressing any opinion…we extend the time till March 15 for compliance. The applications are disposed of accordingly.”  It further added that “except the application for an extension, no other petition or issue is pending before us. We are of the view that there is no need to consider the objections raised by the respondents, particularly Jindal.” IDCOL has moved an application for extending the time for compliance of the 2008 order, which directed that the technical bids of all the three parties be treated as valid and had permitted parties to submit revised financial bids within three weeks. The court had also directed the appropriate and authorised committee of IDCOL to consider technical bids and financial bids, keeping in mind the parameters of the advertisement and the best interest of the state. Jindal Strips senior counsel T Andhyarujina had pointed out that the decision of the state government to reject the bids of the respondents and authorise IDCOL to exploit mining with Orissa Mining Corporation (OMC) was not in accordance with the directions of this Court. Jindal argued that the apex court’s order had asked IDCOL to consider financial bids and if the corporation was not inclined to accept its bids, then it shouldn’t have sought the extension of time for considering the bids. Visa Steel counsel Vishal Gupta had also supported JSL’s argument. However, IDCOL counsel PP Rao submitted that the decision was well within the directions of the court and it was taken in the overall interest of the state, as observed in the judgment of this court. He added that the state government’s decision to reject bids of all the three bidders in November 2008 was a policy decision and the state government was not bound to accept any of the bids.

(Source:http://www.financialexpress.com/news/sc-breather-to-orissa-on-tangarpada-mines-development/574601/0)

Research light on disaster time

- Three-year ISM project to predict earthquakes

Dhanbad, February 01, 2010: If a scientist of Indian School of Mines (ISM) here is successful in his mission, disaster managers will be able to predict earthquakes and thus mitigate their impact. Paresh Nath Singha Roy, an assistant professor at the department of applied geophysics, is busy working on a research project that seeks to forecast the occurance of earthquakes. The Rs 39.5-lakh three-year project, funded by the Union ministry of earth sciences, is called Evaluation of Earthquake Potential in Northwest Himalayan Fault Zone. Singha Roy, who had done his MSc Tech and PhD in geophysics from Banaras Hindu University, has been working on it for the past two and a half years. He is being assisted by a research scholar, Saroj Kumar Mandal. The project involves global positioning system (GPS) and seismic city analysis. As such, data of seismic activity have been collected from different places in the Kumaun Himalayas and Western Nepal region. At least 10 stations have been set up along Kali river on Indo-Nepal border for GPS data collection. Comparing the ISM research with similar projects being carried out across the world, Roy said: “The other studies are based on either pattern of seismic activity or GPS reading while our research is a combination of both.” He added they had extensively studied the pattern of both minor and major earthquakes that had occurred in China, Sumatra, Alaska, Iran, Turkey and Pakistan under the project. “It has been found that after a typical pattern of minor earthquakes, major ones occur within six years,” said Singha Roy, but added that the exact timing could not be predicted yet. The professor further said the GPS reading was observed after six months and it helped monitor the earth’s movements. Regarding accuracy of the GPS system procured for the research, Singha Roy, whose area of interest lay in geophysical signal processing and pattern recognition in earth sciences, said it could measure horizontal movements upto 1mm and vertical movements upto 2mm. “The findings of our research work would help us bag another project for analysis of minor earthquakes occurring in and around Jharkhand, particularly in Chotanagpur area. A reason behind the earthquakes here is illegal and unplanned mining,” said Singha Roy.

(Source:http://telegraphindia.com/1100202/jsp/jharkhand/story_12055497.jsp)

GVK power buy hits coal mine hurdle

Mumbai, February 01, 2010: Four-month-long negotiations between GVK Infrastructure and Dainik Bhaskar Power (DB Power) to buy the latter’s power plant have fallen through. Sources close to the developments said GVK had been evaluating a Chhattisgarh-based 1,200 Mw power project that is being developed by DB Power, which has plans to set up 5,000 Mw of power capacity. DB Power is promoted by the Bhaskar Group. The deal fell through following differences over the amount of coal allocated for the project. DB Power’s project comes with a captive coal mine with reported reserves of 100 million tonnes and it has a window to sell as much as 60 per cent of the power produced on a merchant basis. In an emailed response, GVK said it did not want to comment on speculation. The Bhaskar Group did not respond. A senior company official said no such deal had been discussed in any case. He also said the group had completed land acquisition for the project and was in advanced stages of financial closure. GVK, meanwhile, has already started looking out for more power plants that are under development. The advantage of such buys, industry experts said, was that it gives the company access to licences to develop power plants without having to bid or sign agreements with state governments, both of which are cumbersome and time-consuming processes. GVK is looking out for a project that has considerable upside from merchant sales — as opposed to sales to state grids — to the tune of 40-50 per cent. Merchant power tariffs have been in the green in 2009 (at an average Rs 7 per unit) and experts said that would continue for two or three years more until a considerable chunk of power projects are commissioned. "The company is scouting for projects with higher merchant sales, preferably in south India and the east coast. Imported coal-based projects located on the east coast will be more economical," says the source. GVK raised $150 million through a Qualified Institutional Placement in July last year and sources said it was planning to use these funds for its plan to buy a power plant. Last year, Bangalore-based GMR closed a similar deal with Emco Energy, which has a 600 Mw plant under development in Maharashtra. Industry sources said there were many opportunities because several small companies and new entrants into the sector have found it difficult to raise money and have put their assets on the block.

(Source:http://www.business-standard.com/india/news/gvk-power-buy-hits-coal-mine-hurdle/384240/)