CURRENT NEWS

JULY 2010

Many uncontrolled permits cause environmental damages in Indonesia: president

Jakarta, July 31 (Xinhua): Indonesian President Susilo Bambang Yudhoyono said on Thursday that many uncontrolled licences issued by provincial administrations, such as in mining sectors, have caused destruction on environment. The statement comes as the Southeast Asia's largest economy has committed and efforted to joint global efforts to curb global warming partly by keeping its environment sustainability and protecting vast rainforests. President Yudhoyono said that most of operational works under the licences has not implemented a good practices and under poor management. Most of the licences were issued at the level of regency or municipality. "A very serious problem that I must convey here is the rampant issuance of permits which most of them have been done at the level of regency and municipality, which bring negative impact on many cases. For example, too many licences issued for opening new coal mines, which then make them operated under poor management and cause environmental damages as well a number of loss suffered by the state,"he told cabinet meeting at the State palace. Yudhoyono said that it was needed a correction on such practices. "I think an example, I need to order a certain element to conduct a supervision and investigation on the environmental damage caused by the uncontrolled issuance of permits," said Yudhoyono. Indonesia has pledged to extend its target of carbon emission reduction from 26 percent to 41 percent by 2020 under the international assistance. So far, the archipelago country has got commitment of one billion U.S. dollars from Norway on condition that Indonesia must conduct a two year moratorium on shifting its forest for other purposes starting next year. Indonesia may get more funds from international communities following the recent pledge by developed countries to provide over 4 billion U.S. dollars for financing efforts to curb global warming. But Indonesia must convince the world.

(Source:http://news.xinhuanet.com/english2010/sci/2010-07/29/c_13421403.htm)

Abdullah Urges Authorities to Quickly Solve Sand Mining Issue

Kuala Lumpurm, July 30, 2010:  Former Prime Minister Tun Abdullah Ahmad Badawi on Tuesday expressed disappointment that nothing was being done as yet to solve the controversial sand mining issue in Selangor. He said the authorities responsible for enforcement should step in and take appropriate action to solve the problem quickly. "The enforcement people should stop it. There are so many lorries parked along the roadside and they (enforcement officers) can just stop these lorries and query (them) where they were getting the sand from. "From there, you will be able to know and be able to take appropriate action. It's very simple. But nothing seems to be done," he said in his keynote address at a seminar on "Environmental Awareness and Action Plans for A Better World" at the Institute of Islamic Understanding Malaysia (Ikim), here. Sand mining in Selangor has sparked controversy of late, with environmental groups expressing concern over the impact of the activities on the environment. Abdullah also expressed concern over the degradation of the environment in the country, particularly the over-logging of timber and river pollution. He cautioned that destruction of the environment would have an adverse impact on the people. "There are too many logging activities and, in some areas, there are no more trees now. "And our rivers today, they are mostly dead where we can't use the water anymore, and this causes loss of water resources," he added. Abdullah, who is also Ikim chairman, said protecting the environment should also be the responsibility of everyone. The former prime minister said the duty to protect the environment was also clearly stated in the Quran. "Allah has reminded human beings to be responsible for the welfare and sustenance of all citizens of the global environment. The Quran contains many verses which can be referred to for guidance in this respect," he said.  He said that in Islam, the utilisation of natural resources was the right and privilege of all the people and species. "Hence, man should take every precaution to ensure the interests and rights of all others since they are equal partners on earth.

(Source:http://www.bernama.com/bernama/v5/newsgeneral.php?id=516735)

Zijin Mining ordered to curb gold output due to pollution issue

Friday, 30 Jul 2010: China Knowledge reported that Zijin Mining Group Co Ltd plans to reduce gold output of around one ton this year after a pollution discharge at Shanghang County in Fujian Province. According to the listed firm the company has been ordered by the Shanghang government to limit production to a level that can ensure the safety of environment. An Analyst said that one ton of gold is equivalent to CNY 254 million judging by the price of CNY 253.98 per gram.

(Source:http://www.steelguru.com/metals_news/Zijin_Mining_ordered_to_curb_gold_output_due_to_pollution_issue/157551.html)

Goa to frame new mining policy

Panjim, Goa, July 31, 2010: Faced with increasing civic protests against rampant mining in the state, the Goa government is considering framing a new mining policy. In a written reply in the assembly, Chief Minister Digambar Kamat on Friday also said his government is processing more than 600 applications for prospecting licences."The application for grant of prospecting licences have been received by the department (mining) which are under scrutiny and process," said Kamat, who also holds the mine portfolio, in reply to a query by Bharatiya Janata Party (BJP) member Damodar Naik. Among those who have applied for prospecting licences are Dempo Corporation and Sesa Industries, both owned by Vendanta Resources, Sociedade Fomento Industries and Nationalist Congress party (NCP) National Secretary Jeetendra Deshprabhu. The union ministry for environment and forests (MoEF) has imposed a moratorium on mining proposals until a "comprehensive environmental impact assessment of all mining activities" in the state is conducted. Kamat had recently said the state government was considering 246 applications for new mining leases in Goa, in addition to the 100-odd existing iron and manganese ore mines which dot the state's hinterland. Villages in close vicinity of these mining areas have for often served as virtual battlegrounds for mining companies and anti-mining activists, with the latter claiming that open cast mining is causing ecological havoc in the region by denuding forests and upsetting the ground water levels due to haphazard drilling for ore. Leader of opposition Manohar Parrikar has repeatedly alleged that Kamat and several of his cabinet colleagues were sheltering illegal mining operations, which the former chief minister said accounted for nearly 18 per cent of the total ore exports. Nearly 40 million tonnes of ore are extracted and exported annually from the state.

(Source:http://www.hindustantimes.com/Goa-to-frame-new-mining-policy/Article1-579867.aspx)

Settle claims before land acquisition: MoEF to Posco

New Delhi, July 31, 2010: The ministry of environment and forest (MoEF) has categorically stated settlement of claims under the Forest Rights Act, 2006 has to take place before any process of land acquisition can be initiated in Jagastsinghpura district of Orissa—the site of the $12 billion steel plant by Posco. What makes the ministry’s stance rather untenable is that it granted environmental clearance to the company on January 1, 2010, without there being any such settlement in place. The ministry has tried to cover its tracks by saying that the environmental clearance would require that FRA settlements were done first, but that did not clarify completely the status of the environmental clearance already granted. The confusion over the status of the clearance is compounded by the fact that there is fierce resistance among those living in those areas to the project. Environmental activist and member of the FRA committee Ashish Kothari says that the process of settling claims under FRA had just begun in the area. “And of course, people whose claims are recognised on the land, may well decide that they do not want the project,” he said. The dilemma for the government and more for the company then would be about whether or not the earlier environmental clearance can be insisted upon. Out of the total 4004 acres of land required for the project 2900 acres is forest land and the process of settling claims has just begun. The environment ministry is silent on the matter. Minister of forest & environment Jairam Ramesh in a reply to a question in the Rajya Sabha said the clearance was subject to enviromental law. The state government had in March said there were no tribal people residing in the designated forest land. Shankar Gopalkrishnan of the Campaign for Survival and Dignity (CSD) said under such circumstances, the legality of the process of land acquisition was moot. “We are now awaiting the process of settlement of claims and just how fair that is going to be,” he said.

(Source:http://www.financialexpress.com/news/settle-claims-before-land-acquisition-moef-to-posco/653109/)

Notice to WR for environment pollution

Complaints of Coal Dust

Vapi, July 31, 2010: A show cause was issued to Western Railway authorities for environmental pollution at railway goods yard here. An investigation was carried out by Gujarat Pollution Control Board (GPCB) following complaints of fine coal dust entering the homes in surrounding areas during unloading of coal from wagons and loading of trucks. The complaint was filed by members of Citizens’ Council, Vapi. “During our inspection last Saturday, we found railway staff engaged in unloading of coal without any pollution control measures,” said M Kagzi, deputy environment engineer, GPCB. V Desai, living in a housing society situated parallel to railway yard, said that the goods yard of Vapi remains busy for transportation of coal and other minerals to industries from last one year, so he has decided to shift his family away from this area. Vapi GPCB regional officer G V Patel told TOI that the show cause notice has been issued to divisional manager (commercial), Western Railway, Mumbai.

(http://epaper.timesofindia.com)

Coal mine or MZWP dam? Confusion reigns

Gwayi, July 30, 2010: The future of the Gwayi/Shangani dam is now clouded with uncertainty after a mining company was recently allowed to undertake coal mining activities in the water catchment area under unclear circumstances. Liberation Mining has already moved in at the site and started extracting coal in the catchment area of the dam. The area is also part of the Gwayi Intensive wildlife conservation project. The move to mine coal in the area has already irked the Zimbabwe Water Authority (ZINWA), the Matabeleland Zambezi Water Project (MZWP) as well as environmentalists and animal conservationists.  “From both an environmental and economic point of view, this coal mining venture is a disaster. For example, no environmental impact assessment study was done. The mining venture is also situated on the corridor of the presidential elephant herd,” said Philip Taylor who runs a wildlife conservancy in the area. The chairman of the MZWP, Dumiso Dabengwa, professed ignorance about the coal mining venture. “If it is true that there is such a venture taking place in Gwayi/ Shangani then we are not aware as MZWP. What is crystal clear is that the benefits of the dam far outweigh those of coal mining from both an economic and environmental point of view. Besides producing water for Bulawayo and hydro electrical power, the dam would also help create irrigation for villagers along the corridor,” said Dabengwa. The Zimbabwean news crew visited area last week and saw workers busy working on the site. Construction of the dam is the first phase of the MZWP project to bring water from the Zambezi River. The government approved the project in 1997 after the completion of a feasibility study. Preliminary work for the long-awaited scheme, which involves a 70 metre dam wall at the confluence of the Gwayi and Shangani rivers, has already kicked off. Efforts to establish the owners of the mining venture were all in vain. Workers at the site said they were not allowed to speak to the press.

(Source:http://www.thezimbabwean.co.uk/index.php?option=com_content&view=article&id=33043:coal-mine-or-mzwp-dam-confusion-reigns&catid=72:thursday-issue)

Pollution axe on stone crushers

Ranchi, July 30, 2010: At least 89 iron ore crushing units, located in mineral rich West Singhbhum, East Singhbhum and Seraikela-Kharsawan districts, will have to shut down as the state environment and forest department has decided not to renew their existing licences. A notification issued by the state forest and environment department said licences of all existing iron ore crushing units located outside the mining lease areas in the three Kolhan districts would not be renewed by the Jharkhand State Pollution Control Board (JSPCB). The notification added that no licences would be issued either to any new iron crushing unit proposed outside the mining lease areas of the three districts. The decree explained that the step was taken after the National Pollution Control Board in early January this year identified Jamshedpur, West Singhbhum, Barajamda and Seraikela-Kharsawan as some of the most critically polluted regions in the country. “One hundred and forty two crushing units are currently in operation in these districts. Of these, 53 have already been shut down. For the rest, a review would be undertaken in the light of the state notification and appropriate steps would be initiated to comply with the directives,” JSPCB member secretary R.K. Sinha told The Telegraph. Sinha, however, added that none of the 89 remaining crusher units currently in operation are illegal. All these units hold a valid licence and a no-objection certificate issued by the JSPCB. The state notification comes in the wake of a letter from state chief secretary Ashok Kumar Singh to all deputy commissioners (DC) of the districts which said that they along with the respective superintendents of police (SP) would be held accountable for illegal smuggling of iron ore in their districts. “The state has taken a serious view of the rampant illegal mining, transportation and use of iron ore. Task forces at the state and district levels are already in place to check the menace. To lend more teeth to the state operations, the responsibility of putting a check to the menace would rest on the DCs and SPs at the district level whilst at the block level, the responsibility shall vest with the block development officers and DSPs. Periodic review meetings would also be organised to test the efficiency of state operations,” the letter said. However, sources disclosed that there are many more illegal crushers that are in operation in West Singhbhum, particularly at Noamundi, which are supposed to be prime source of illegal smuggling. Sources said the many illegal crushers that are in existence would continue to thrive as they are patronised by powerful politicians who would prevent law enforcement agencies from taking tough action against them.

(Source:http://telegraphindia.com/1100729/jsp/jharkhand/story_12743666.jsp)

Panel to check complaints against Posco project

New Delhi, July 30, 2010: The Centre on Wednesday constituted a four-member committee to ascertain the status of implementation of the Scheduled Tribes and Other Forest Dwellers (Recognition of Forest Rights) Act, 2006 and other rehabilitation measures taken before granting final approval for diversion of forest land for the establishment of the Integrated Steel Plant and Captive Port by Posco-India at Jagatsinghpur district in Orissa. This follows complaints from the local people regarding violation of the Forest Rights Act. The Orissa government had submitted a compliance report to the Ministry of Environment and Forests in March this claiming that there were no tribals residing in the land which was to be diverted. The report had been given by the District Collector. However, the documents attached with the report were in the local language and the Ministry had asked these to be submitted in English. But, in the meanwhile, the Ministry received complaints which prima facie appeared genuine and hence needed further examination that has now resulted in the setting up of the committee. The members are Meena Gupta, former Environment Secretary; Urmila Pingle, an expert on tribal issues; Devender Pandey, former Director of the Forest Survey of India; and V. Suresh, advocate. The committee will also probe the implementation of the rehabilitation package to the affected people and submit its report within a month.

(Source:http://www.hindu.com/2010/07/29/stories/2010072962081300.htm)

Orissa halts Posco land acquisition

Paradip, July 29, 2010: The Orissa government today halted the land acquisition process for the proposed Rs 51,000-crore steel plant near here, to be developed by Korean company Posco, after facing stiff opposition from villagers. “The land acquisition and verification work, which began yesterday, was halted today due to opposition from people. We will start it soon after holding talks with villagers,” said N C Jena, collector, Jagatsinghpur. Though the administration yesterday carried out land acquisition work and paid compensation to two betel leaf cultivators, the official team was prevented from entering Gada Kujang in the proposed project area during the day, as villagers blocked the main link road. United Action Committee (UAC), the local body supporting the Posco project, is resisting land acquisition by the administration for not informing villagers. “We oppose the land acquisition process before finalising rehabilitation package. Though the company had announced the package, UAC has rejected it seeking more assistance to the people,” UAC leader Tamil Pradhan said.

(Source:http://business-standard.com/india/news/orissa-halts-posco-land-acquisition/402833/)

Mining scam: Amend Acts for NIA to probe

Bhubaneswar, July 30, 2010: The Ministerial Committee constituted by Prime Minister Manmohan Singh has recommended that relevant acts should be amended to enable the national investigation agency (NIA) probe mining scams also.  A release issued by the Orissa Pradesh Congress Committee (OPCC) here said that the committee had also recommended that the Mines and Minerals Act, 2000, should also be amended to check large-scale irregularities in the sector.  OPCC president KP Singhdeo had submitted memoranda to the Prime Minister and the party chief Sonia Gandhi demanding a probe by the NIA into the multi-crore mining scam. Singhdeo has thanked both the leaders following the recommendations made by the ministerial committee.  The release said as the State Government is yet to agree for a CBI probe into the mining scam and the High Court has not given any direction in this regard, the Centre has been requested by Singhdeo to order a NIA investigation into the scam. While CBI has only power to investigate, the NIA has authority to investigate and recommend punishment, he said. Singhdeo has again raised the issue at the meeting of the state Congress presidents convened by Sonia Gandhi in Delhi on July 17.

(Source:http://expressbuzz.com/states/orissa/mining-scam-amend-acts-for-nia-to-probe/193765.html)

Indian mining faces development dilemma

New Delhi, July 29 2010:  The battle over Vedanta’s bauxite mining project in Orissa state reflects a deeper crisis in India over how to balance its demand for minerals with the rights of tribal groups. South Korea’s Posco wants to set up a $12bn (£7.7bn) steel plant in Orissa, while local heavyweights Tata Steel and Essar Steel have ambitious plans for projects in the neighbouring state of Chhattisgarh.  Officials backing these projects argue that they would help India meet its growing demand for minerals and energy for an economy growing more than 8 per cent a year, and would bring development and prosperity to long-neglected areas.  However, all these projects have been stalled by fierce opposition from local inhabitants, most of whom belong to primitive tribal groups. In theory, India’s tribal communities, who together constitute around 8.4% of the population – and live in the country’s mineral belt, are supposed to have special legal protection against forcible dispossession from their land. Much of the land under contention is deemed protected forest, to which tribal groups are supposed to have special rights. Critics say, however, that the companies have manipulated the public consultation process and are overriding community sentiments to acquire the land forcibly.  Vedanta is seen as one of the worst offenders. In a report earlier this year, Amnesty International said neither Vedanta nor government officials made any meaningful attempt to inform the tribes living near the mine site about the project, but announced a public hearing in newspaper advertisements – which the illiterate tribes never saw and could not have read. Tensions are mounting between state governments, eager for big projects to get under way, and Jairam Ramesh, India’s environment minister, who is determined to take long-flouted forest protection laws more seriously. This week, Posco, with Orissa’s backing and heavy police protection, started the process of acquiring the 1,600 hectares it wants for the steel mill, more than five years after it agreed to build the project.  Mr Ramesh, however, has said that Orissa cannot give the land to the company, nor will he give final clearance to the project, until the claims of the forest dwellers residing there are settled.

(Source:http://www.ft.com/cms/s/0/b8be60e6-9a75-11df-87fd-00144feab49a.html)

Core sector grows 3.4% in June, coal biggest drag

New Delhi, July 29, 2010: Hinting at further moderation in the industrial growth as measured by the index of industrial production (IIP), country’s six core industries grew by 3.4% in June. The core industries—crude oil, petroleum refinery products, coal, electricity, cement and finished carbon steel—that has a weight of 26% in the IIP, had clocked an annual expansion of 6.3% in June last year. After expanding at a record pace of above 16% or above in three months to April, IIP fell 11.5% in May. Coal production, which expanded by less than 1%, was the biggest drag on the core sector output for June. Country’s coal production has been remaining flat over the recent months as the mining major Coal India has not been able to get enough rail wagon combinations or rakes to transport the mined coal. Lack of rakes to transport the coal will also have an impact on the electricity generation, say analysts. The power producing facilities have not been able to transport imported coal lying in ports due to shortage of rail wagons. June saw electricity generation growth at 3.4%, the lowest since November. Crude oil production, which grew by 6.8%, stayed marginally lower than the petroleum ministry’s projection. However the refinery output ,which grew by 4% on the back of resurgent energy demand in a recovering global economy, was in line with ministry’s target. With the monsoon rains covering all parts of the country, the growth in cement production also moderated. With some of the major projects driving the demand—including the Commonwealth Games preparations—coming to an end the growth in cement production is expected to remain moderate till September. However, steel production remained robust on back of high demand from end use industries like automobile and capital goods production. The accelerated pace in the moderation of monetary policy regime is expected to lead to a moderation in the pace of growth across various sectors of the economy. The government and central bank expects the economy to grow by close to 8.5%.

(Source:http://www.financialexpress.com/news/Core-sector-grows-3-4--in-June--coal-biggest-drag/653115/)

Jairam relents, more area for coal soon

New Delhi, July 28, 2010: The Union ministry of environment and forests (MoEF) on Tuesday admitted in Parliament that it could soon reduce the green belts, where coal mining is not allowed. Environment and forests minister Jairam Ramesh, who had earlier made a strong pitch for declaring `no-go' areas, where coal mining would be barred and announced that proposals for mining in only 3,40,000 hectares would be entertained, now seems to have softened his stance following pressure from the PMO. "The exercise is being coordinated by the PMO," MoEF replied in the Rajya Sabha to a question raised by D Raja of CPI. "As per this exercise, 449 coal blocks covering about 3,80,000 hectare have been categorised as category B (where mining is permitted) out of the total 602 coal blocks covering 6,48,750 hectare," the ministry replied. Leaving the door ajar for further shrinkage of the no-go areas, the ministry in its reply said, "In addition, the ministry of coal is engaged in exercise requiring boundary alternation in 27 coal blocks (having area of 82,540 hectares) spread over eight coal fields excluding Hasdeo-Arand, which will ultimately result in the addition of some more areas in Category B." In the first instance, the MoEF had earmarked 3,40,000 hectares as open to coal mining. Dissatisfied the coal ministry then approached the PMO, complaining that Coal India Limited was going to disinvest and the restriction on its coal blocks would diminish the value of its initial public offering. Subsequently, MoEF took a more lenient view, and increased the area under mining by another 40,000 hectares. But, the coal lobby refused to relent, which led the PM to urge finance minister Pranab Mukherjee to intervene in the matter. As pressure started building on the ministry, Ramesh was compelled to issue a press release, maintaining that it was only a preliminary exercise. On Tuesday, the ambiguous press release seems to hint that more green areas are likely to come under shovel in the days to come.

(http://timesofindia.indiatimes.com/india/Jairam-relents-more-area-for-coal-soon/articleshow/6224576.cms)

Prod to curb illegal mining

Ranchi, July 27, 2010: Chief secretary A.K. Singh has directed deputy commissioners (DCs) and superintendents of police (SPs) to launch a major crackdown on illegal mining across the state. In a letter to DCs and SPs today, he held them responsible for rampant mining of iron ore, coal, et al in this mineral-rich state. Illegal mining and transportation of iron ore and coal have fuelled corruption in Jharkhand. A major portion of the Rs 2,000 crore money laundering scam involving former chief minister Madhu Koda was traced to recommendation for iron ore leases in West Singhbhum. Maintaining that the state had always taken serious note of illegal mining, Singh said a special task force at the state and district levels had been constituted in the past. “Now, DCs and SPs will be held responsible in order to speed up action against illegal mining. The sub-divisional magistrates (SDM) and sub-divisional police officers (SDPO) will be taken to task in case of unrestrained mining in a particular sub-division,” the chief secretary’s letter said. The DCs and SPs have also been asked to review the situation regularly and take action against people involved in illegal mining under various laws meant to prevent it.  Last year, a cave-in on NH-33 near Kujju in Ramgarh district was attributed to illegal mining. At present, a high-level committee, headed by the home secretary and comprising CMDs of various coal companies, bears the onus of drafting ways to stop illegal mining of coal.

(Source:http://telegraphindia.com/1100728/jsp/jharkhand/story_12738883.jsp)

Lafarge deposited Rs 75.06 cr towards compensatory afforestation: MoEF

New Delhi, July 27, 2010: Lafarge moved nearer to operating its mining lease for limestone from the Meghalaya hills after the Centre on Monday informed the Supreme Court the company has deposited Rs 75.06 crore in a corpus to finance compensatory afforestation. The corpus is under a Compensatory Afforestation Fund Management and Planning Authority, set up by the environment ministry. An affidavit filed by the ministry said the company has complied with a direction from the Supreme Court. The court was deciding on a plan by the cement company to divert 116 hectare of forest land for its mine, which would supply limestone to its plant in Bangladesh. The Centre was asked to take a final decision under the Forest Conservation Act 1980 for the revised environmental clearance, taking into consideration “all the conditions”. According to the affidavit, Lafarge Umiam Mining Pvt Ltd, through its letter on July 15, has informed that around Rs 1.32 crore for compensatory afforestation, Rs 1.07 crore as the cost to raise penal compensatory afforestation and more than Rs 72.66 crore or five times the normal NPV with interest at 9% per annum from April 1, 2007, till date has been deposited in the adhoc CAMPA account. The CAMPA funds, collected from companies in lieu of diverting forest land for non-forest purposes, is being utilised for conservation, protection and management of wildlife and its habitat, both within the core and buffer zones of protected areas. Besides, Lafarge had informed that it “has furnished an unconditional and irrevocable bank guarantee in favour of Meghalaya government for an amount not exceeding Rs 1.20 lakh, being the sum of Rs 90 per tonne of the limestone mined from the date on which mining commenced, to be deposited with SPV,” the affidavit filed by Haris Beeran stated. According to the ministry, an expert appraisal committee has also observed that the conditions and environmental safeguards stipulated were comprehensive enough to mitigate the adverse impacts of the project and protect environment, if implemented effectively. The ministry had accorded in-principle approval for the diversion of 116.58 hectares of forest land under the 1980 Act on April 22. Earlier, on February 5, the court had restrained Lafarge from continuing mining operations for extracting limestone in Meghalaya to manufacture cement at the Lafarge Surma Cement project at Chhatak, Sunamganj, in Bangladesh.

(Source:http://www.financialexpress.com/news/lafarge-deposited-rs-75.06-cr-towards-compensatory-afforestation-moef/652080/)

Posco MoU lapses, renewal uncertain due to progress clause

New Delhi/Bhubaneswar, July 27, 2010: The MoU between South Korean major Posco and the Orissa government for the proposed $12-billion steel project in the state lapsed on July 22, at the end of its five-year term, and hasn’t been renewed since. This has put the project—already facing several hurdles, including a recent adverse verdict by the Orissa High Court on Posco’s right to prospecting licence and delays over forest clearance—in further jeopardy. Posco India spokesperson Simanta Mohanty confirmed that the MoU had not yet been renewed. “The state government is looking into the application,” he said. Although the state government had kept on saying till July 22 that the MoU would be renewed, what is significant is a clause in the MoU itself. As per the MoU, “no such extension shall be considered unless the company concerned has made substantial progress on implementation of the project in terms of construction, erection of plant and machinery and investment at site to the satisfaction of the state government in these five years in implementing the first phase as envisaged in this MoU.” What this translates into, according to top government sources, is that the first phase should have seen 6 metric tonne (mt) production of steel being commissioned, which has not happened. The plant remains mired in controversy over land acquisition and its painful quest to get separate clearances for the prospecting licenses, steel plant and port connectivity. In Bhubaneshwar, Orissa steel and mines minister RN Mohanty told FE: “Posco India has applied for renewal of MoU for five years. We are examining the application.” “The problem started when the South Korean steel major, which thought that it would get an SEZ status for the entire project, failed to get it and had to apply for separate clearances for its plant and port projects, including from the ministry of environment and forests (MoEF),” said a source. This quickly got mired in controversy with resistance to land acquisition building up fast and court cases further delaying the projects. Despite being India’s biggest foreign investment projects at $12 billion, and receiving substantial support from the Centre and the state, the project has not been able to get off ground. On June 22, minister Mohanty had told FE: “We have received the proposal for renewal of the MoU from Posco-India and it’s being examined by Industrial Promotion and Investments Corporation of Orissa (IPICOL).” An Ipicol official had said, “As both the parties have made serious endeavours towards the project, there is no point in not renewing the MoU.” But, the application has been pending with the state government for quite sometime. Meanwhile, two separate incidents have dealt a blow to Posco India’s plans. First, the Orissa High Court struck down a state government proposal to grant prospecting licence to Posco India for the Kandadhar iron ore mines, saying the ‘relative merits are insufficient’ in deciding in Posco India’s favour. There were 226 applicants for the mines and the government has been told to hear them afresh.

(Source:http://www.financialexpress.com/news/posco-mou-lapses-renewal-uncertain-due-to-progress-clause/652076/0)

NMDC eyes two mines in Russia for Rs 1,881 cr

Kolkata, July 27, 2010: India’s largest iron ore producer and exporter, NMDC Ltd, is contemplating buying coking coal mines in Russia from Kolmar for $400 million (Rs 1,881 crore today). “This is our biggest project. Our people have gone and seen it. It has an underground mine which produces 500,000 tonnes a year. Due diligence will start shortly,” said a top NMDC official. The reserves of the two mines stand at 353 million tonnes, having both soft and hard coking coal. The cost for developing the mines will be an additional sum equal to the cost of the acquisition. At present, Intergeo holds 51 per cent in Kolmar. It is not clear whether NMDC would pick up the entire 51 per cent or most of it. Kolmar’s coking coal mines are located in Siberia’s Yakutia region.  If the deal with Kolmar materialises, it would mark NMDC’s foray into coking coal in which it lacks expertise. This could eventually lead to a tie-up. “Now we are talking alone,” said the official. The focus areas for the public sector company are iron ore, coal, rock phosphate and potash. In Australia, NMDC plans to bid for Atlas Iron’s Ridley iron ore project, with Kobe. As part of a consortium, NMDC and the other partners had submitted a non-binding bid for the project. ABS Consulting of Saudi Arabia would not go ahead with the binding bid. NMDC now planned to bid jointly with Kobe. According to discussions, NMDC and Kobe could have an equal stake of 35 per cent each, depending on the valuation. In the earlier arrangement, NMDC would have held a 10 per cent stake and 5 per cent sweat equity. Resources from NMDC’s acquisitions could be used to feed its own steel plants as well as meeting raw material requirement of other steel majors, given that India is eyeing a steel capacity of 200 million tonnes from the existing level of 60 million tonnes. Two steel plants from the NMDC stable were on the anvil — one in Chhattisgarh and the other in Karnataka. Out of the total production of 28 million tonnes of iron ore from its Bailadila mines in Chhattisgarh and Donimalai in Karnataka, NMDC exports around 3,000,000 tonnes to Japanese mills and 400,000 tonnes to Posco. The remaining stock is sold in the domestic market. NMDC accounts for 15 per cent of the country’s total iron ore production. The public sector miner supplies to most domestic steel companies, like Essar Steel and Ispat Industries. The entire requirement of the state-owned Vishakhapatnam Steel Plant is also met by NMDC.

(Source:http://business-standard.com/india/news/nmdc-eyes-two-mines-in-russia-for-rs-1881-cr/402595/)

Govt OKs Lafarge mining in Meghalaya

It Will Have To Pay Rs 130cr for Development of Tribal Area, Env Ministry Tells SC

New Delhi, July 27, 2010: The ministry of forests and environment (MoEF) on Monday told the Supreme Court that Lafarge Umiam could resume limestone mining in Meghalaya under the revised Conservation Plan and it had to pay up to Rs 130 crore towards afforestation and development of tribal area around the mines. Asked by the SC on April 26 to conduct fresh environmental impact studies given the strong reservation towards mining by the Shella Village Committee, the MoEF filed an affidaivt in the SC through counsel Harish Beeran brightening the prospect of resumption of supply of limestone to the French multinational’s cement plant, which had been stayed since February 5. The ministry said Lafarge Umiam had to pay up Rs 72.66 crores at 9% interest from April 1, 2007 towards the adhoc CAMPA, which would work out to Rs 88 crores. In addition, it had to pay the government of Meghalaya Rs 90 per tonne of limestone mined from the state since 2007, which would work out to around Rs 45 crores. On April 26, the SC had asked the MoEF to conduct fresh environmental impact assessment and Lafarge to firm up plans for protection of biodiversity and the soil in addition to what was already promised by the multinational. Attorney General G E Vahanvati had said that the Lafarge would be forced to adhere to all environmental conditions imposed by the court in addition to it agreeing to pay a huge sum. The Centre had been pleading for permission to resume mining as non-supply of raw material has put Bangladesh’s largest cement plant on the verge of closure. The AG had said: “India is facing a piquant situation diplomatically. It has got a friendly regime in the neighbouring country after 25 years and the apex court should understand the sensitivities involved as the neighbour had been accusing India of big brotherly attitude. I am not saying Lafarge will be allowed to operate without adhering to the conditions.” Added to this, the mining company has to pay Rs 90 per tonne of the mined minerals since the commencement of mining, which would amount to Rs 45 crores and help set up an SPV for the development of health, education, economy, irrigation and agriculture in the project area solely for the local community and welfare of tribals.

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

NEAA quashes clearance of Careamol iron mine

New Delhi, July 26, 2010: Pointing out the adverse impact of mining on livelihood of locals and the ecology, the National Environment Appellate Authority (NEAA) has quashed the clearance given to the Careamol iron mine in South Goa. The project was granted environment clearance in 2007, but it was stayed by the NEAA after a local group, ‘Gomantak Shetakari Sanghatan’ contested that the Expert Appraisal Committee (EAC) of the Environment Ministry had given its approval by overlooking rules and regulations. The allegations were, however, rejected by the project proponent, which claimed that it followed all requisite norms. In June, the Authority member J C Kala visited the site in Pirla village and after speaking to locals concluded that the ministry had failed to take into account the adverse impact due to mining on livelihood, the rivers and streams which adjoin the mining lease area and long-term impact on the ecology. Based on his observation, the Authority also noted that the ministry, by not taking a prior clearance under the Wildlife (Protection) Act 1972, had gone against the order of the Supreme Court. “The correct procedure was not followed during the public hearing as the panel framed the minutes of the meeting almost six weeks later instead of reading out the minutes to the audience of the public hearing,” the order issued on July 12 said. Rejecting the clearance, the Authority said in the order that it came to the conclusion that the EAC has failed to appreciate the vital impact of mining on the livelihood of the people of the area and the long term impacts on the ecology and environment. The NEAA also observed that the mitigative steps and the safeguards proposed can hardly take care or compensate the damage mining would cause to the area in the short and long term, said Supreme Court lawyer, Ritwick Dutta on behalf of the petitioners. The Authority was also of the opinion “that the contribution of this inferior iron ore to the State’s exchequer does not call for striking a balance between development and environment protection of the area,” said Dutta. In his petition he had also alleged the mining company had concealed several crucial information concerning the rich biodiversity including two hectares of natural forests and cashew and coconut plantations in the core and buffer area of the mine lease area.

(http://oheraldo.in/news/Local%20News/NEAA-quashes-clearance-of-Careamol-iron-mine/39282.html)

Ficci opposes mining Bill

New Delhi, July 26, 2010: Criticising the government’s mining Bill, Ficci has said the proposed legislationwould adversely impact investments in the sector. It also termed the government’s scheme to provide shareholdings to tribals in mining projects as flawed. In a recent letter to finance minister Pranab Mukherjee, Ficci secretary general Amit Mitra said the act will “adversely affect the industry.” On the plan of giving 26% equity or annuity to locals and tribals affected by the project, Ficci said the proposal was “complex” and “difficult.”

(Source:http://www.financialexpress.com/news/ficci-opposes-mining-bill/651540/)

Panel to probe Vedanta project impact on tribe

New Delhi, July 26, 2010: Troubles seem to be mounting for Anil Aggarwal promoted Vedanta’s bauxite mining project in Orissa as the environment ministry has asked a four-member committee, headed by NAC member N C Saxena, to investigate in detail the possible physical and economic displacement of the primitive Dongria Kondhs tribe. The committee has also been asked to ascertain whether the project would impact their cultural and social lives. The move comes in the wake of Attorney General G E Vahanvati’s opinion that the environment ministry has the right to decide on the final approval to the company’s bauxite mining project in the tribal-dominated Nyamgiri hills in the coastal state’s backward Lanjigarh district. Before the opinion, the ministry officials had argued that the Supreme Court had already given approval to the project in 2008. After receiving the opinion, the ministry widened the scope of the committee by inserting five new stringent terms of reference in addition to the existing ones.  One of the most important clauses added by MoEF was on ascertaining whether the Forest Rights Act (FRA), which mandated seeking approval of the locals before implementing the project, has been implemented or not. The committee has been empowered to investigate any issue related to the project, which could trigger further concerns for the LSE-listed company. The panel, which has been asked to submit its report by August has already visited the area twice. Vedanta’s mining project has seen a war of letters between the ministry and the Orissa government with the latter refuting the claims that the company has failed to abide by the FRA.

(Source:http://www.indianexpress.com/news/panel-to-probe-vedanta-project-impact-on-tri/651577/)

Gold mines exploration likely in Seema region

Anantapur, July 25, 2010: With the soaring price for gold in markets, several gold mining companies have come forward to undertake gold mining operations across Rayalaseema. Ramagiri mandal in Anantapur district is famous for gold mines. Bharath Gold Mines Limited Company (BGML) had started mining operations in Ramgiri mandal in 1980 but suspended activity in 2000 as they suffered losses due to low price for gold. It was unable to extract more than 2 grams gold from one tonne soil. It has again submitted an application to the mines and geology department, seeking renewal of its old licence to carry out mining operations in Ramgiri mandal.  Meanwhile, the Geological Survey of India (GSI) found abundant gold reserves in Veligallu in Kadapa district, Tuggali in Kurnool district and Kuppam in Chittoor district, while mines and geology officials recently found gold reserves in Jonnagiri in Guntakal mandal in Anantapur district. The BGML has already completed a reconnaissance survey for mining potential in the area and is waiting to avail a prospective licence from the government to excavate gold over 1.16 hectares in Ramgiri mandal. Gold mining companies such as Geo Mysore Company, De Beers, Ramgarh minerals private limited, CRA explorations, National Mineral Development Corporation limited, Amil mining company are competing to unearth gold deposits over 25,000 square kilometers across Rayalaseema. District in-charge assistant director of mines and geology, Mr A. Chandramouli, said gold mining companies had already taken reconnaissance licences to trace gold deposits and would apply for a prospective licence after completion of survey.  He added that the companies had mentioned in their applications that they would extract 5 grams of gold from one tonne soil with latest technology imported from Australia and South Africa. Mr Chandramouli said two to three companies would carry out mining activity within a year while others would start after three years, as they have to complete a reconnaissance survey.

(Source:http://www.deccanchronicle.com/anantapur/gold-mines-exploration-likely-seema-region-779)

State plans to impose ban on iron ore export

New Delhi: July 24, 2010: Karnataka Chief Minister B S Yeddyurappa on Saturday said the State Government will impose a total ban on export of iron ore from Karnataka ports till the Lokayukta inquiry into illegal mining is completed.

The chief minister, here to attend the National Development Council (NDC) meeting, told newsmen that the State Government would issue an order in this regard in a couple of days. “Taking into account the mushrooming of illegal mining in Karnataka, the State Government has decided to impose a total ban on export of iron ore from the ports in the State,” he said. The State would inform the Centre of its decision and seek its support. The Centre could help by banning export of iron ore from the ports of neighbouring states, which would in turn prevent shipping out of ore removed from Karnataka mines, Yeddyurappa said. Noting that there was an urgent need to arrest the export of nearly 58 per cent of iron ore extracted from the country, he said: “We have to find ways and means to create value addition within the country itself rather than blindly exhausting our natural resources through indiscriminate exports.” He also urged the Congress, in opposition in Karnataka, to drop their proposed “padayatra” and join hands with the State Government to exert pressure on the Centre to impose the ban on iron ore export. Rejecting the Congress’s demand for the CBI probe into illegal mining instead of the Lokayukta one, Yeddyurappa said the Lokayukta was competent enough for the inquiry. According to him, the Congress’s demand for a CBI probe was in fact to protect their supporters, 90 per cent of whom were into illegal mining in Karnataka. “If the Lokayukta probe is completed, it is the Congress that will face the trouble, as 90 per cent of the illegal miners in the State belong to the party,” he said.

(Source:http://www.deccanherald.com/content/83716/state-plans-impose-ban-iron.html)

No more rejection of mining plans applications by RCM

Panjim, July 24, 2010: Henceforth, Regional Controller for Mines (RCM) will not able to reject applications seeking mining plans in respect of mining leases. Thanks  to   decision  of  the Central Information Commission (CIC) of  June 7,   information on mining plans for mining leases operating in Goa approved by the RCM will now be freely available to the public.  Earlier , the RCM routinely rejected applications for mining plans in respect of individual mining leases on the grounds that the commercial interest of the lessees might be compromised if information in these plans reached rival party. Thus several applications for copies of mining plans in the State had been rejected by the RCM  on the grounds that these could not be disclosed under Sections 11 (1), 8 (1) (d) and 8(1) (j) of the RTI Act.   As a result, several appeals came to be filed before the CIC against such orders. On February 5, this year, the CIC sought assistance from the Ministry of Mines to settle the matter. The necessary clarifications were provided to the Information Commission by the Ministry of Mines in March 2010.  The Ministry of Mines held that certain parts of the mining plan of any mining lease could be disclosed by Public Information Officers under the Right to Information (RTI) Act. It held the applicant can be given information pertaining to location, and accessibility of the mine as given by the mine operator in chapter 1 and chapter 2 of the mining plan. Also, information about mine drainage, mineral rejects and disposal of wastes and other information provided in Chapters 6, 7, 8 and 9 of part A of the mining plan and the environment management plan provided in Chapter 11 of Part B of the mining plan, can be given to the applicant. The Ministry of Mines  has been advised by the Information Commissioner to have all its public authorities put up the various parts of the mining plans that can  be disclosed,  on their respective websites so that citizens do not have to file repeated RTI queries in the matter.   It has been granted time of two months to carry out this decision. The Goa Foundation (GF), an NGO keeping a watch on illegal mining has recommended that all those who filed applications under RTI for information about mining plans should now file fresh applications for the information permitted by the CIC. The information that can be disclosed would cover most information about the mine, its approved dump management plan and environment management plan. The applicant should also request for the relevant maps which are annexed to these chapters and GF is willing to assist any person in this process, appealed Dr Claude Alvares, Director, GF.

(Source:http://oheraldo.in/news/Local%20News/No-more-rejection-of-mining-plans-applications-by-RCM/39224.html)

AG bats for forest ministry in Niyamgiri mining row

New Delhi, July 22, 2010: Vedanta’s plans to source bauxite from Niyamgiri hills in Kalahandi district of Orissa appear to have run into trouble with the Attorney General opining that the ministry of environment has the powers to stop diversion of forest land till rights of tribals under the Forest Rights Act are settled. After the environment ministry kept on hold clearance for the Vedanta project, questions were raised on the mandate of the department to withhold approval. A section of the government was of the view that since the issue was settled in favour of Vedanta by two Supreme Court orders, there was no need to reopen the matter. The ministry, which disputed this approach, had taken the issue to the Attorney General. It is learnt that the government’s top legal officer, who removed the ambiguities over the environment ministry’s mandate, has said it can decide on the clearance. Environment minister Jairam Ramesh refused to comment of the contents of the opinion from the Attorney General. In 2008, the Supreme Court had directed the government to give clearance for diversion of 660.749 hectares of forest land for bauxite mining on the Niyamgiri hills in Lanjigarh. The ministry of environment, which contested this order through an administrative directive in 2009, withheld final clearance. “State/UT governments, where process of settlement of rights under the Forest Rights Act is yet to begin, are required to enclose evidences supporting that settlement of rights under Forest Rights Act, 2006, will be initiated and completed before the final approval for the proposals,” the environment ministry had said in its order. The environment ministry has set up a four-member panel under NAC member NC Saxena to ascertain whether the Forest Rights Act has been properly implemented, and to determine the impact of the project on the livelihood, culture and material welfare of the Dongria Kondhs, a notified primitive tribal group, as also on the local wildlife and biodiversity. The committee is expected to submit its report in late August. The committee would revisit issues examined by a three-member study team sent by the Forest Advisory Committee in January 2010. Doubts were raised on the findings of the team on account of methodological and other issues, including the alleged use of Vedanta equipment to undertake the forest and wildlife surveys. Vedanta had recently sought the intervention of the prime ministerial establishment for the project. It had argued that the 2007 and 2008 orders of the Supreme Court allowed only a limited role for the environment ministry. It also cited the clean chit on wildlife and forest issues given to the project by the 2010 FAC study, a report that is being contested by the ministry.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/AG-bats-for-forest-ministry-in-Niyamgiri-mining-row/articleshow/6198485.cms)

Forest coal mining issues will be sorted out: Jaiswal

Bhubaneswar, July 22, 2010: Union coal minister Sriprakash Jaiswal said on Wednesday the new guidelines for coal mining in forest areas would not have much impact on coal production in the country. Issues relating to restriction of coal mining in forest areas would be sorted out soon, he said. The ministry of environment and forest (MoEF) is expected to define the criteria for mining in forest areas in consultation with the concerned ministries and the Planning Commission. The minister said the MoEF should have a lenient view while fixing the criteria for coal mining in forest areas. This would help in achieving a coal production level of 1000 mtpa by 2020 against 530 mtpa at present. The minister met Orissa chief minister Naveen Patnaik and discussed the state of coal mining in the state. He urged the CM to expedite the land acquisition and forest clearance process for the new coal projects of Mahanandi Coalfield of Coal India. The MoEF, in its notification dated July 12, 2010, has identified prima facie ‘go’ and ‘no go areas’ for coal mining. Present ‘go’ areas would be those areas where, prima facie, the statutory forest advisory committee in the MoEF would consider the proposal for diversion of forest for coal mining purposes. Present no-go areas would be those areas with rich forest cover and bio-diversity where application would not be entertained for forest land diversion. Pointing out that the categorisation of A and B areas would result in 619 mtpa coal remaining out of bounds for CIL, the coal ministry had urged the PMO to intervene and solve the issue.

(Source:http://www.financialexpress.com/news/Forest-coal-mining-issues-will-be-sorted-out--Jaiswal/649973/)

Fund scarcity, manpower crunch hit mining and metal companies

New Delhi, July 22, 2010: Capital allocation, finding skilled manpower and managing costs are some of the key challenges facing Indian metals and mining companies due to the volatility in the global economy, according to an Ernst & Young report. While debt raising for expansion had lifted the average gearing to 58% by December 2008, for metals and mining companies globally, bank loans since then have become more complex, costlier and harder to obtain. In 2009, equity issues emerged as the largest capital source primarily for working capital, refinancing and balance sheet repair; thereby easing the gearing to 29% by December 2009, said the management consultancy’s report on business risks facing mining and metals. “The shift has changed the hurdle rate for projects and also the mix of capital allocation to exploration, development, start-up production, infrastructure and mature projects,” said Ernst & Young national leader (mining and metals) Anjani Agrawal. Although the mergers and acquisitions’ volume was below the historic peak of 2007-08, the metals and mining companies from the AsiaPacific region would dominate the activity motivated by resource security challenges, continuing lower asset prices, stronger currencies and available finance going forward. Most governments these days are moving towards altering the terms of economic rent for mining projects to obtain a larger share of mineral resources. “The government must use fiscal regimes that are stable and prospective in application and benefit stakeholders in the project,” said Agrawal.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Fund-scarcity-manpower-crunch-hit-mining-and-metal-companies/articleshow/6198708.cms)

Ramesh says miners must set up industry in state; ministry says no

New Delhi, 21, 2010: The mines ministry has turned down a suggestion by environment minister Jairam Ramesh that only those companies be allowed to bid for mining leases in a state which would agree to set up the end-use industry there. The mines ministry has said forcing an entrepreneur to do so “would not only distort pricing of the product but may also make it lose competitive edge globally.” In a communique to the mines ministry ahead of the Group of Ministers (GoM) meeting on July 22 to be chaired by Finance Minister Pranab Mukherjee, Ramesh had said “to enable states to leverage their mineral resources in their domain for their industrial development, there should be a proviso allowing states to restrict bidding to only those firms that will set up industry there.” But the mines ministry in its reply vigorously countered that, saying “across the world mining is a separate economic activity and the ore is traded rather than being merely used for captive purposes. This is also desirable because captive miners use resources sub-optimally, taking only that part of the run-of-mine production which is suitable to metal making as per their installed processes.” The mines ministry also reminded Ramesh that the Hoda Committee too had advocated the evolution of mining as a separate industry since it enabled a clear break from “the peculiar historical evolution in the Indian mining sector” where metal producers were allotted captive mines. Arguing that whether or not an end-use industry was set up in the same state where a mine was located was a purely economic decision, the ministry said since mineral ores were a bulky commodity, normally an entrepreneur would like to set up his unit in proximity to the mine. Listing out the possible reasons why an investor would shy away from investing in a particular state, the ministry said it could happen due to non-availability of land, high requirement of power and coal and lack of local infrastructure. “Clearly the state governments must address these issues upfront either by remedying the situation or by providing suitable concessions. Forcing an entrepreneur to make decisions on the location of an end-use industry in the mining area on non-economic grounds may not only distort pricing of the product but also make it lose its global competitive edge,” the mines ministry pointed out. Responding to another suggestion by Ramesh that the proviso of allowing competitive bidding without any application backlog be removed and concessions be granted through a bidding process, the ministry said it would not be fair to wipe out mining lease applications made by investors who have carried out prospecting operations under a prospecting licence and were assured a seamless transition on the basis of which they invested.

(Source:http://www.indianexpress.com/news/ramesh-says-miners-must-set-up-industry-in-state;-ministry-says-no/649636/0)

Orissa in a fix over Posco mines, had promised iron ore to 49 projects

Bhubaneswar, July 21, 2010: The Orissa High Court’s judgement on Posco-India’s Khandadhar iron ore mines has put the state government’s policy to provide prospective investors with mineral wealth in jeopardy. The judgement is likely to deter the state government from deciding on allotment of mines invoking section 11(5) of the Mines and Minerals (Regulation & Development) Act 1957. The state government has lined up 49 steel projects in the state with promises that they would be provided captive iron ore mines. Even though there are hoards of applications for each of the iron ore mines in the state, the government was confident that it would be able to prioritise the application of the project promoters taking advantage of provision 11(5) of the MMRD Act. The Orissa government is consulting with senior counsellors of the Supreme Court to decide its next course of action. Sources in the government told FE two eminent lawyers of the apex court have been consulted on the issue. The government is soon going to take a decision on whether it will contest the high court order in the Supreme Court, sources said. The state government had recommended the prospecting licence of Khandadhar mines in favour of Posco-India on the ground that it would add maximum value to the iron ore in the state. The Orissa High Court, however, has directed the state government to reconsider its decision and hear all the 226 applications once again, pointing out that the “relative merit is insufficient” while deciding the case in favour of Posco-India.  The Jagatsinghpur district administration, meanwhile, is preparing to launch the land acquisition drive for the Posco site. After the announcement of the Rehabilitation & Resettlement Package for the affected villagers, the district administration is planning to move to the site from July 28, to make arrangements for eviction of villagers.

(Source:http://www.financialexpress.com/news/orissa-in-a-fix-over-posco-mines-had-promised-iron-ore-to-49-projects/649431/)

NMDC chalks out projects worth Rs. 24,000 crore

Kolkata, July 21, 2010: NMDC has chalked out projects worth over Rs. 24,000 crore over the next five years. It is planning to expand its iron ore mining capacity to 51 million tonnes from 27 million tonnes now, besides setting up steel, pellet and iron ore nugget plants and beneficiation facilities. A Rs. 3,000-crore spend on a new pipeline to replace the one which was damaged by Maoists blasts in 2009 is also on the cards. Chairman Rana Som told reporters that the cost of a proposed 2-million tonne steel plant in Karnataka was yet to be worked out. He said that NMDC was in talks with Japanese companies for technology. Mr. Som, who earlier addressed the members of the Merchants Chamber of Commerce here, said that talks were also being held with Arcelor Mittal for joint projects. Asked to react to reports of investing in an iron ore project in Senegal with the Mittals, he said that the MoUs with Arcelor and Tata Steel were working well but they were yet to produce results which he could announce. He said that NMDC was scouting for mines in Africa and Australia. Earlier at the meeting, Mr. Som said that there was a need for curbing iron ore exports in the national interest. He struck a note of caution saying that the projected output of 200 million tonnes of steel production by India would need an iron ore feed of 320 million tonnes. Pointing out that mining is serious business he said that there had to be a conducive mines and minerals policy, with benefits of mining accruing to the State and not the lessees. He was referring to rampant illegal mining. He also felt that the Mines and Minerals (Development and Regulation) Amendment Bill did not address the issue of conservation of resources as it should have. “There is a case for reservation of mineral assets for large PSUs which can bring the best technology and protect the country's resources.”

(Source: http://www.hindu.com/2010/07/21/stories/2010072162832000.htm)

Panel calls for probe on illegal mining

Panjim, July 20, 2010: The Ad Hoc Committee (ADC) has recommended that the Central Empowered Committee (CEC) should conduct a fact finding study of the illegal mining activities, if any, and also investigate and study the modalities of the illegal mechanism.  The ADC has also suggested that CEC should come out with remedial measures that could be implemented to check violations of the Mines and Minerals (Development) Act, 1957 and Forest Conservation Act (FCA), 1980. The ADC in its report which was presented in the House today has recommended that there should not be administrative delay in deciding the renewal application for mining. It has pointed out that the continuing mining over a long period of time without the renewal of the mining leases is a potential source for serious illegalities and irregularities. And therefore, the scheme of the newly designed transit passes for use by those transporting minerals from the mining areas to other places in the State and inter-State should be undertaken expeditiously. It has further suggested that investigation through a competent authority in co-ordination with Central Bureau of Investigation (CBI) should be undertaken to prevent the illegal mining activities in the State. The State Government however maintained that effective measures have been initiated to keep on illegal mining. The department of Mines has constituted two flying squads for North Goa and South Goa to conduct surprise checks. Besides, Monitoring committee set-up by the government is also in operation. It is also consideration of the government to track the source of illegal mining, if any, to introduce the system of movement permits as followed in other States. There are about 100 mining leases in operation in the State. Furthermore, to tighten two exit points -- Mormugao and Panjim Ports from where the ore is exported, to insist upon the exporters on the movements permits issued by the department of mines at the time of presentation of the shipping bills or before allowing sailing of the vessels. However, the proposal was not accepted by the Ministry of Finance and the State Government has now approached the Ministry of Shipping and Industry, to consider issuing instructions to MPT for insistence of movement permits before allowing the vessels to sail.

(Source:http://oheraldo.in/news/Local%20News/Panel-calls-for-probe-on-illegal-mining/39057.html)

11 booked in illegal mining case: CM

Bhubaneswar, July 20, 2010: Chief Minister Naveen Patnaik today said that the Vigilance Department had registered as many as 11 criminal cases pertaining to illegal mining since 2008- 09.  To a question from Naba Kishore Das (Cong), the Chief Minister said that these cases had been registered against two joint directors of mines, five deputy directors of mines, four mining officers, six mining inspectors, one ex-director of mines, two district forest officers, two forest range officers, one forester, one officer of transport department, 11 mine owners and 3 contractors.  He, however, said that no minerals had been seized.  The Chief Minister added that the cases were under investigation and charge-sheet had not been filed as yet.

(Source:http://expressbuzz.com/states/orissa/11-booked-in-illegal-mining-case-cm/191344.html)

Centre forcing ‘green card’ on states

New Delhi, July 18, 2010: Heightened environmental concerns have given the Union government a new handle over state governments, as Jairam Ramesh, unfettered by either the recent gaffe in China or a couple of recent setbacks, has not shied from showing the green rule book when the chance arises. The political will to use the idiom of environment as a popular tool for central intervention has gained ground just as it had much earlier for the Union government to step in other social issues such as social discrimination. The flurry of interventions by the Jairam Ramesh led Union environment and forests would have one believe that environmental laws were etched just last year. Illegal mining in Karnataka, the dams on Ganga in Uttarakhand, the airport in Navi Mumbai, thermal power plant in Andhra and Chhattisgarh, ports in coastal states, mining in MP, Chhattisgarh and Orissa are prominent cases. Ramesh’s tenure came after the government, as he has often admitted, had abdicated its role on the environmental front and let the judiciary instead take the executive space. The judicial pronouncements for almost 15 years have had far reaching impacts but hamstrung by an uneven match and bad track records the states had little space to protest the take over of their powers using the language of ‘environment’. Ramesh, who has befriended the courts on one hand and removed the dust of the green rulebook on the other, has very often found support with a vocal pocket of urban middle class that is happy to believe that environmental concerns backed by rational and science are winning the day but it would be irrational to forget that the same rules and science existed since the 80s. The investments and political and corporate interests that get impacted have only grown with time for this to be just a case of following the rulebook. But it remains to be seen if this centralizing green push can be used to get a more balanced development in states or would the decentralizing acts such as PESA and FRA fare better in the long run.

Now, spl SC bench for eco issues

Chief Justice of India S H Kapadia announced the setting up of a second green bench in the SC to hear matters relating to environment and forests. This might have been done to ease the load on a single special bench which is headed by the CJI himself. TNN

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

At least 151 mines remain closed in Orissa

Bhubaneswar, July 18, 2010: At least 151 mines continued to be closed in Orissa since last year as they do not have statutory clearances, an official Friday said. The mines located in three districts of Keonjhar, Sundergarh and Mayurbhanj have been closed mostly after state authorities launched a crack down against illegal mining in the region in July last year, the senior official of the state steel and mines department told IANS. Nearly half of the closed mines are iron ore mines, he said. Investigations into illegal mining in Orissa by state and central agencies started after some politicians alleged in July 2009 that some mines were operating without licenses. At least 183 people were arrested for their involvement in illegal mining activists in these three districts and more than Rs.2 crore worth of ores were seized from different area of these districts since 2007, he said. A majority of these arrests and seizures were however made during last one year, he said. Orissa is one of the largest mineral-bearing states in India and 16.92 percent of the mineral reserves of the country are estimated to be in the state. Government data shows the state has 97.37 percent of all the chromite in India, 95.1 percent of all nickel, 76.67 percent of all graphite, 49.74 of bauxite, 33.91 percent of iron ore, 28.56 percent of manganese and 27.59 percent of coal. While the state has attracted investment proposals in the mining sector worth billions of rupees, loopholes in the rules have allowed illegal mining for years.

(Source:http://expressbuzz.com/states/orissa/at-least-151-mines-remain-closed-in-orissa/190405.html)

‘Approved mining lease sketches are at variance with old ones'

New Delhi, July 17, 2010: The approved mining lease sketches of the Reddy brothers in the Obulapuram mines in the reserve forest areas bordering the States of Karnataka and Andhra Pradesh are at variance with those appearing in the old sketches available in the records, according to the Survey of India (SoI) report. By an order dated May 10, the Supreme Court allowed the Reddy brothers to start mining in the undisputed area “which neither falls in Karnataka nor abutting the Karnataka boundary.” The court did not permit mining operations in those areas which according to the base map “falls within its lease area but may be falling in the leased areas of other leases.” The court directed the SoI to put a temporary fence at Karnataka border as per the base map and granted two months to complete the process of demarcation. In its fresh report submitted to the Supreme Court on Friday in the “Reddy brothers mining lease case, the SoI said, “all the lease sketches of Bellary Iron Ore Mines Pvt Ltd from its inception submitted to the Composite Survey Committee have been perused. It is found that the latest renewed sketch though some what similar to the previously issued old sketches, it is not exactly the same. Internal angles/bearings and distances appearing on latest renewed approved mining lease sketch are in variance with those appearing on old sketches.” The report deals with the delineation/demarcation of inter-State boundary and mining lease boundary and temporary fencing at Karnataka border in relevant area. It says, “during the demarcation of the boundary in the Bellary Reserve forest, minor variation at three places was marked by the Bellary district Collector, which was not accepted by the Anantapur district Collector in Andhra Pradesh, who accepted the boundary shown by the SoI.” Due to this reason, though the inter-State boundary was treated as demarcated and accordingly published by the SoI in topo sheet, technically it remained unauthenticated. The report pointed out that though Karnataka nominated six officials, they could not give any decision on inter-State boundary. This was the third time that the officers of the Karnataka government reported to the Committee to decide the boundary but could not give any decision. The report wanted a direction from the Supreme Court to the Chief Secretaries of the two States to give consent for the SoI 1975 boundary; otherwise it would not be possible to resolve the mining lease/boundary dispute within the stipulated time. The SoI also wanted a direction to the two States to provide mutually agreed inter-State boundary data. The State/Central authorities should be asked to supply revised lease sketches to complete the demarcation of boundaries of mine leases. The report said that after receipt of the same, demarcation work would be completed in one month.

(Source:http://www.hindu.com/2010/07/17/stories/2010071756171300.htm)

Additional Bench to hear environment, mining cases

New Delhi, 17, 2010: Chief Justice of India S.H. Kapadia on Friday announced the setting up of an additional Forest Bench in the Supreme Court, to hear environment and mining-related cases. The CJI said, “We are going to divide the Forest Bench into two; the other Bench will be headed by Justice B. Sudershan Reddy that will sit every Monday.” The first Bench, headed by the CJI himself, will hear cases on mining and related issues every Friday. Ohters on the Bench are Justice Aftab Alam and Justice K.S. Radhakrishnan. The CJI said that the matter relating to installation of statues in the Noida Park would be the first case to be taken up on July 23, followed by hearings on mining cases, including that of the Reddy brothers.  The second Bench will hear matters related to grant of licence and its renewal for saw mills/plywood/veneer; construction and widening of roads and highways; cutting of trees, their collection and transportation; smuggling of sandalwood and kendu leaves. It will also hear issues relating to the wildlife.

(Source:http://www.thehindu.com/news/national/article518834.ece)

PMO steps in to solve dispute on iron ore exports

New Delhi, 17, 2010: The Prime Minister’s Office (PMO) has stepped in to resolve the policy imbroglio over iron ore exports. Top government sources have confirmed that the PMO will hold a meeting on the matter on Tuesday, July 20 with the ministries of mines and steel, who hold divergent views on the matter. The trigger for the meeting, however, is a letter from Karnataka chief minister BS Yeddyurappa to Prime Minister Manmohan Singh seeking a ban on iron ore exports. Incidentally, steel minister Virbhadra Singh who has been pitching for a steep hike in export duty on iron ore, on Friday went further and demanded a ban on exports of this mineral, which India is rich in and needs to conserve for domestic value addition. Steel secretary Atul Chaturvedi told FE on Friday: “We have always wanted a deterrent on ire ore exports, considering the need to conserve the resource. It is an irony that despite the abundant resource, iron ore prices in India are very high.” Moving in tandem with global trends, domestic iron ore prices have risen more than 100% in the last two years. Chaturvedi added that there is huge disparity between the cost of iron ore to steel firms with captive mines and those who buy from open market, leading to market distortions. Yeddyurappa’s letter, sources say, is a tactic to deflect attention from the whole question of illegal mining and make it a matter of banning ore exports. The Karnataka chief minister has been facing Opposition fire over charges of illegal mining by a company owned by two ministers in his government, Karunakar Reddy and Janardhan Reddy. The matter has greatly exercised the state of Karnataka, with its Lokayukta Santosh Hegde resigning over the issue, and the entire Opposition refusing to leave the Assembly premises till a CBI probe is ordered on the matter. “Basically he (Yeddyurappa) is lobbing the ball into the Centre’s court so that the Centre takes care of the problem of the Reddy brothers,” said a top government source. A ban on ore exports would mean that a major part of the Reddy brothers income could be in the hands of domestic steel plants. Significantly, law minister Veerappa Moily has also thrown his weight behind the steel ministry’s view, as revealed in an earlier interview with FE. The central ministries concerned – steel, commerce and mines – have pitted themselves against one another on the contentious...

(Source:http://www.financialexpress.com/news/PMO-steps-in-to-solve-dispute-on-iron-ore-exports/647682/)

Setback to Posco project in Orissa HC

Bhubaneswar, July 15, 2010: In a major setback to the Rs 54,000-crore Posco steel project, the Orissa High Court today set aside the state government’s recommendation for providing a prospecting licence to the company for Khandadhar iron ore mines in Sundergarh district. The South Korean steel major had recently got a reprieve in the form of finalisation of the compensation package for the project-affected families. Disposing of a writ petition of Geomin Minerals and Marketing Ltd, a Bhubaneswar-based company, a two-member division bench of the High Court comprising Justice B P Das and Justice B P Ray directed the state government to take a fresh decision on the recommendation of prospecting licence in Posco’s favour, giving preferential right of consideration to the petitioner.  The High Court has directed the state government to conduct a fresh hearing of all the 226 applicants for the Khandadhar mines. Earlier, in January 2009, the Orissa government had recommended to the Government of India a grant of prospecting licence in favour of Posco over an area of 2,500 hectares at Khandadhar. The recommendation was made in favour of the company under Section 11(5) of the Mining and Minerals (Regulation and Development) Act. Subsequently, several companies, including Geomin Minerals, had challenged the state government’s decision to recommend the licence in favour of Posco India. Terming the decision of the Orissa government as ‘arbitrary’ and ‘illogical’, Geomin Minerals had claimed that it had made the first application for mining lease in the area way back in August 1991. The preferential right for consideration was available to the petitioner and hence, the recommendation made in favour of Posco was not valid, the High Court observed in its judgment. The court also directed the state government to dispose of all pending applications of the petitioner within a period of four months. When contacted, a top official of the state steel and mines department said, “The judgment has come to our notice. However, we are yet to get a copy of the court verdict and we will file our response only after we get a copy of the same.” A Posco official declined to comment on the issue, saying it was a matter of the court. Besides the petition of Geomin Minerals, about a dozen other similar petitions, including an intervention petition of Visa Steel Ltd, were tagged with it and were adjudicated jointly. The bench, however, rejected the contention of Visa Steel and asked it to file an independent writ petition if it had any cause of action. This is the second time the state government has suffered a setback in its attempt to recommend the prospecting licence of Khandadhar mines in favour of Posco. Earlier, its recommendation in December 2006 was turned down by the Union mines ministry, which asked the state government to hear all the applicants before taking a final call on the matter. Accordingly, the steel and mines secretary of the Orissa government heard all the applicants participating in the hearing process from August 2007. The process was completed on August 7, 2008. While 227 applicants had applied for the Khandadhar mines, 172 applicants participated in the hearing and 54 applicants remained absent.

(Source:http://www.business-standard.com/india/news/setback-to-posco-project-in-orissa-hc/401466/)

Decision to grant mining licence to Posco set aside

Cuttack, July 15, 2010: In a setback to the Rs.51,000-crore Posco steel plant planned at Paradeep, the Orissa High Court on Wednesday set aside the State government's recommendation for granting the South Korean steel major a licence for prospecting in the Khandadhar iron ore mines in Sundargarh district. Allowing a writ petition filed by Geomin Minerals and Marketing (P) Ltd, a Bhubaneswar-based company, a Division Bench of Justices B.P. Das and B.P. Ray directed the State government to take a fresh decision on the licence giving preferential right of consideration to the petitioner. In January 2009, the government recommended that the Centre grant Posco a licence for prospecting on 2,500 hectares of the Khandadhar mines. The recommendation was based on Section 11(5) of the Mining and Minerals (Regulation and Development) Act. Terming the decision “arbitrary” and “illogical,” Geomin Minerals challenged it in the High Court, claiming that it had made the first application for a mining lease in the area way back in August 1991. The Bench said that the preferential right for consideration was available to the petitioner, and the recommendation made in favour of Posco was not valid. Urging the court to restrain the government from considering applications for mineral concessions filed by the latter applicants until its application was disposed of, Geomin Minerals also sought an order to dispose of all its applications pending with govt. Holding that the writ petition was not premature and was maintainable as there was no alternative remedy, the High Court directed the government to dispose of all pending applications of the petitioner in four months. A dozen other petitions, including an intervention petition filed by Visa Steel Ltd, were tagged to the petition of Geomin Minerals. The Bench, however, rejected Visa Steel's contention and asked it to file an independent writ petition if it had any cause of action.

(Source:http://www.hindu.com/2010/07/15/stories/2010071562941100.htm)

1.42 cr tonne iron ore exported last fiscal

Bhubaneswar, July 15, 2010: Minister for Steel and Mines Raghunath Mohanty today said more than 1.42 crore tonne iron ore was exported during 200910 from the State. In a written reply to a question from Santosh Singh Saluja (Cong), Mohanty said besides the exported quantity, over 4.8 crore tonne iron ore was dispatched from different mines to some parts of the State as well as outside. Besides, 4.85 lakh tonne chromite and 8,518 tonne mineral sand was exported from the State during the year, he said.  Mohanty said 7.12 crore tonne coal was dispatched to places within the State and outside during the year but there was no export. Though there was no export of bauxite last year, 59.74 lakh tonne was used during the year while 15 lakh tonne of dolomite was also dispatched to different places inside the country.  Other minerals from the State used in the country include china clay, fire clay, graphite, manganese ore, pyrophilite, pyroxenite, quartz, quartzite, serpentinite, silica sand and gemstone.  However, there was no export of these minerals, he said.  In a written reply to a question from Ashok Panda (BJD), Minister for Revenue and Disaster Management Surjya Narayan Patro said so far 91286.164 acres land has been acquired in different districts for establishment of industries in the State. Out of which, 84646.171 acres have been utilised.  The Minister said 21,052.68 acres, highest in a district, were acquired in Sundargarh district out of which 16,545.39 acres have been utilised. He said 4507.29 acres have been returned to their owners.

(Source:http://expressbuzz.com/states/orissa/142-cr-tonne-iron-ore-exported-last-fiscal/189895.html)

Decide afresh on Khandadhar: HC

Cuttack, July 15, 2010: In a significant order that could deal a severe jolt to the Posco project, the Orissa High Court on Wednesday set aside the State Government's recommendation for grant of prospecting licence (PL) for Khandadhar iron ore reserve in favour of the Korean steel giant. A division Bench comprising Justices B P Das and B P Ray directed the Government to consider the application of Geomin Minerals, which is petitioner in the case, within four months. The court also observed that the recommendation by the Government was not valid since it has not been in accordance with law. In 2009, the State Government recommended grant of PL in favour of Posco over 2,500 hectares of Khandadhar reserve. The recommendations were made as per Section 11(5) of Mining and Minerals (Regulation and Development) Act. However, the Karnataka-based Geomin Minerals challenged the decision of the State Government before the High Court claiming that it had submitted the first application for mining lease in the area in 1991. In its order, the court observed that the preferential rights for consideration were available to the petitioner and the recommendations made in favour of Posco was not in accordance with law. Besides the petition of Geomin Minerals, about a dozen other similar petitions, including an intervention petition of Visa Steel Ltd, were tagged with it and were adjudicated upon jointly. The Bench, however, rejected the contention of Visa Steel asking it to file an independent writ petition if it has any cause of action.

(Source:http://expressbuzz.com/states/orissa/decide-afresh-on-khandadhar-hc/189887.html)

Posco plans hit hurdle in Orissa High Court

Bhubaneswar, July 15, 2010: Posco India’s troubles refuse to go away. The world’s fourth-largest steelmaker’s India plans got another jolt on Wednesday when the Orissa High Court rejected the state government’s recommendation to hand over Khandadhar iron ore mines to the South Korean steel major, which is planning a 12 million tonne, $12-billion project in the state. The verdict, which is most likely to be appealed in the Supreme Court, will set back Posco India’s project further, already delayed by five years and mired in land acquisition problems. In fact, the government had just stepped up its efforts on the land acquisition front, persuading farmers to part with 4,004 acres of land needed for the project. The iron ore mines lease would have ensured that the steel major had the back-end in place before it actually gets down to building the project. The court, instead, directed the government to reconsider the claims of other applicants for the mines.

(Source:http://www.indianexpress.com/news/posco-plans-hit-hurdle-in-orissa-high-court/646600/)

MoEF panel against mining in MP area

New Delhi, July 13, 2010: If Project Tiger has its way, there will be no more coal mining in Chhindwara — on a forest corridor nestling Pench and Satpura tiger reserves in Madhya Pradesh — in what is likely to be the first standoff between coal mining and tiger reserves. A Ministry of Environment and Forests (MoEF) special committee, instituted for the express purpose of examining mining proposals both in and around tiger reserves, has turned down all mining proposals for the area. The report prepared by the committee has also suggested that existing coal mines in the area be shut down. Environment Minister Jairam Ramesh introduced the controversial concept of ‘go’ and ‘no-go’ areas, including tiger reserves as the ‘no-go’ areas. Recently, Ramesh said he may expand the amount of ‘go areas’, working with the Coal Ministry. But with a slew of mining project proposals and lease extension proposals around tiger reserves, the MoEF settting up the committee is seen as a bid to introduce specialists in the controversy.  The committee has been tasked with appraising 32 coal-related projects adjoining prime tiger habitat, around Kanha, Bandhavgarh, Tadoba, Pench and Satpura tiger reserves in Maharashtra and Madhya Pradesh. Of these, as many as 8 projects are at Chhindwara. “We have inspected the areas. And we find that if the corridor has to be protected, coal mining in Chhindwara has to stop. The projects whose lease will expire have to be stopped and no new mining should take place here,” says a member of the committee. Of the 32 projects, 7 projects are at Chandrapur, 50 kilometres off Tadoba tiger reserve. Some of these proposals fall on forest land and will involve diversion of forest land. The issue of not allowing infrastructure inside the highly protected tiger reserves came to a head recently as Road Highways and Transport Minister Kamal Nath complained to the Prime Minister that Ramesh was obstructing the construction of national highways through Pench Tiger reserve. Further, Ramesh was rapped for asking for fresh environment clearances for the widening of existing highways running through forests.

(Source:http://www.indianexpress.com/news/moef-panel-against-mining-in-mp-area/645652/0)

‘Commercial platinum exploration likely’

New Delhi, July 13, 2010: India may go for commercial exploration of platinum following “very promising” discovery of the precious metal along the 150-km belt in Tamil Nadu and adjoining Kerala, mines secretary Santha Sheela Nair said on Monday. “Once we take a deeper exploration of 100-200 metres, we expect the find to be even more substantial, which could lead to viable commercial exploration,” she said. “Till now, the exploration has been carried out only up to 30 metres and it is very promising.” The discovery of platinum is in Namakkal and Mettupalayam belts in Tamil Nadu which don’t have dense forests and are good for deep exploration. “There is not much forest in the two belts and we can go in for exploration in a big way,” Nair said. “As of now, we do have platinum in some parts but this is excellent find and the quality is equivalent to the best in South Africa’s Bushveld region.” More than 80% of the world’s platinum is concentrated in South Africa, and Bushveld is the main area of production. The other platinum producer in the world is Russia, which also has a significant quantity of the metal. Nair said the move will also help in development of these areas, some parts of which are “very backward”. The discovery in the Mettupalayam region suggests there could be prospects of some platinum reserves in Kerala too, she said. “One portion in Mettupalayam side may go to Kerala and there may be a possibility (of some finds there) but that exploration has not yet been done,” Nair said. The Geological Survey of India and Tamil Nadu Minerals are jointly exploring commercial viability of mining the platinum group of minerals present in Mettupalayalam and Namakkal areas.

(Source:http://www.financialexpress.com/news/-Commercial-platinum-exploration-likely-/645441/)

Maoists attack NMDC mine in Dantewada

Raipur, July 13, 2010: Suspected armed cadres of the Communist Party of India (Maoist) attacked an iron ore mine operated by the National Mineral Development Corporation at Bacheli in Chhattisgarh's Dantewada district on Monday night. According to intelligence sources, the attack began about 9.15 p.m. when about 40-45 armed persons set fire to two tipper trucks in the North Block of the NMDC's Akashnagar mine. While the drivers were set free, the gunmen engaged with Central Industrial Security Force personnel posted at the mines in an encounter that lasted at least an hour. Intelligence sources told The Hindu that though the intensity of the encounter had died down, sporadic gunfire could still be heard. Sources in Bacheli said workers from the second shift (2 p.m. to 10 p.m.) were still stuck in the mine, even as third shift workers were waiting for the gunfire to abate. Over the last few years, Maoists have repeatedly struck at NMDC's mining operations. In February 2006, they attacked a depot in Hiroli and made off with nearly 20 tonnes of mining explosive. Earlier this year, Maoist fighters destroyed a pipeline intended to supply iron ore slurry from the NMDC mines in Dantewada to an Essar iron ore plant in Andhra Pradesh.

(Source:http://www.hindu.com/2010/07/13/stories/2010071361901200.htm)

Outrage over iron ore-rich land allotment issue

Hyderabad, July 13, 2010: The allotment of 1.37 lakh acres of iron ore-rich area in Khammam and Warangal districts to a private company, Rakshana Steels, whose executive director is Anil Kumar, son-in-law of former Chief Minister Y.S. Rajasekhara Reddy, rocked the Assembly on Monday. The Opposition alleged that when YSR was the Chief Minister in February 2009, the land in notified tribal area of Khammam district was leased out to A.P. Mineral Development Corporation, although the State government had no right to do so without the Centre's approval. The land is estimated to have reserves of 13 lakh crore tonnes of iron ore deposits. The APMDC formed a joint venture with Rakshana Steels. K. Sambasiva Rao (CPI), who tabled a question on the issue alleged “a shady deal”, urged the government to resume the land spread over Bayyaram, Nelakondapalli and Garla mandals. Although Chief Minister K. Rosaiah assured during a recent visit to Khammam that the allotment would be cancelled, he could not do so as a parallel administrative machinery was at work. Members of the Telugu Desam, CPI, CPI(M) and Praja Rajyam later staged a dharna in front of Chief Minister's chambers in the Assembly demanding probe by a House Committee into the allotment. Mr. Rosaiah promised to make a detailed statement in the House on Tuesday. Mr. Sambasiva Rao said the Union government approved the State government's proposal to lease out the land to APMDC only 15 days ago. He criticised the allotment to a private firm when Visakhapatnam Steel Plant and Sponge Iron Factory, Palwancha, were suffering for want of raw material. Rejecting the demand for constituting a House Committee, Mines & Geology Minister B. Srinivas Reddy denied any irregularity in the allotment and maintained that the government acted transparently. He said another firm, Pioneer Torsteels had also participated in the bids but its application was rejected as it did not provide EMD amount. The government sought lease rights of the land to APMDC because the area fell within the notified tribal area. He said Rakshana Steels would establish an integrated steel factory in the area. Following repeated stalling of the proceedings by the Opposition, Deputy Speaker N. Manohar adjourned the House an hour ahead of the scheduled time. Earlier, the House was adjourned four times.

(Source:http://www.hindu.com/2010/07/13/stories/2010071359230100.htm)

Steel min for ban on iron ore exports

New Delhi, July 13, 2010: The steel ministry on Monday called for a complete ban on iron ore export, saying the mineral is a non-renewable resource like coal and petroleum products, and should be preserved. “It will be good to completely ban iron ore exports as these are non-renewable resources. If they are exhausted, there is no getting them back. Iron ore is no way different from coal, gas and petroleum products. Why don’t we export them? You can’t have double standards,” steel secretary Atul Chaturvedi said. Iron ore is primary input in steel making. India produced about 230 million tonne of iron ore in the last fiscal, of which around 106 million tonne was exported, mainly from China. “Karnataka had recently written for an iron ore exports ban. Now, states have started raising their concern about this. The mining ministry has to take a call on this. We have been saying that iron ore should not be exported,” he said. Ministries of steel and mines have been at loggerheads over the issue of exports of iron ore, on which the latter has been opposing any move to put a blanket ban on the overseas shipments of the mineral. Mines minster BK Handique had earlier said that banning iron ore exports could render thousands jobless. The mines ministry had also said that the country did not possess technology to make steel from iron ore fines and so exports should continue. Miners mainly export iron ore from China, which is technically equipped to make steel from the powdery variant of iron ore.

(Source:http://www.financialexpress.com/news/steel-min-for-ban-on-iron-ore-exports/645480/)

Tata Steel enlarges, extends exclusivity deal for Canadian ore mines

Kolkata, July 13, 2010: Tata Steel’s exclusive option to participate in the massive iron ore projects of its Canada-based partner, New Millenium Capital Corporation, has been extended to December 31.NMCC is trying to develop the exploitation of taconite (ore-bearing rock) in the provinces of Newfoundland & Labrador (LabMag project) and Quebec (KeMag), estimated to have 5.6 billion tonnes of iron ore reserves. Tata Steel holds 27.4 per cent in NMCC and 80 per cent in the company’s Direct Shipping Ore (DSO) project. In an intimation to the stock exchanges, NMCC has informed that the KeMag project, which has reserves of around 2.1 billion tonnes, has been included in the exclusivity agreement with Tata. The LabMag project, with 3.5 billion tonnes, was part of the exclusivity agreement signed in 2008 and the KeMag project has now been included as well. Tata Steel is looking to expedite production from DSO and would be investing $300 million (Rs 1,400 crore) in the project. Around four million tonnes of sinter fines is expected from the third quarter of 2011. Tata Steel’s move to increase raw material security is aimed at buffering its European operations against volatility in the market. Its India operations have 100 per cent iron ore and 50 per cent coking coal security, while Corus, the European arm, which accounts for around 65 per cent of the group’s production capacity, has no captive mines. Raw material for steel companies has seen major changes over the past few years, the most dramatic being changing the 40-year old annual benchmarking contract for a quarterly mechanism. What made such a strategy shift possible was an oligopolistic scenario, where the industry became dominated by just a handful of companies. Of the $200 billion iron ore industry, BHP Billiton, Rio Tinto and Brazil’s Vale control about two-thirds. Iron ore accounts for around 35 per cent of the raw material cost for steel, while coking coal is about 50 per cent. Coking coal is controlled by BHP, Rio, Anglo American and Xstrata. As part of its initiative to secure coal security, Tata Steel has also increased its stake in Australia’s Riversdale Mining to 21.8 per cent. Some production from Mozambique is also expected to flow in next year.

(Source:http://www.business-standard.com/india/news/tata-steel-enlarges-extends-exclusivity-deal-for-canadian-ore-mines/401224/)

Green Mission 2012

Mysore, July 12, 2010: Union minister for environment and forests Jairam Ramesh on Monday said Green India Mission will be launched in 2012 with an whopping allocation of Rs 44,000 crore for 10 years. Participating in a meeting to elicit views from people on the project, Ramesh urged NGOs, environmentalists, naturalists and forest officials to work collectively instead of making this mission a sole responsibility of the forest and environment department. "Instead of forests, we should focus on the ecosystem as forests are the derivatives of ecosystem," he said. He felt people involved in this mission must shun target-oriented approach and adopt result-oriented approach to make this mission a success. "In the past whenever we have taken up projects, we have failed to meet the target and this was evident in the mission launched by Rajiv Gandhi in 1985 to revive 5 million hectares of waste land in the country," he recollected. "No land is waste land, every thing we see is a wasted land," he said, attempting to coin a new term for waste lands. Referring to mining activities, he said: "at any cost tourism and mining activities should not be allowed to achieve catastrophic proportions and pose danger to ecosystem." An environment activist from Belgaum took objection to categorizing the poor tribals and people depending on firewood for fuel as "drivers of degradation". The minister, who was quick to take note of the faux pas, asked officials not to equate the poor with the drivers of degradation such as miners. The seer of Siddlingeshwara Yoga Vana drew attention of the participants by presenting his views on Green India Mission. The minister, who was taken aback by the seer's presentation and English eloquence, promised to involve mutts, especially from Karnataka in the mission. The seer claimed he has converted the bald and rocky three hills surrounding his mutt into a green cover and suggested the minister to stop planting saplings and take up seeding as the results are 85-100% against 15% in plantation projects. Retired Major General S G Vombatkere suggested the minister to provide "green bonus" to the states which achieve good results under Green India mission. The director general of forests disclosed there is a proposal from various NGOs to impose "green cess" to mop up resources for the project. The Mission aims at addressing climate change by enhancing carbon sinks in sustainably managed forests and other ecosystems. It aims to treat 10 million hectares of forest and non-forested areas. It will also double the current rate of afforestation.

(Source:http://timesofindia.indiatimes.com/City/Mysore/Green-Mission-2012/articleshow/6160275.cms)

 CoalMin, MoEF identify ‘Go’ area blocks

New Delhi, July 12, 2010: Finally, there is some good news for the coal mining industry. After intense bitterness between them, the coal ministry and the Ministry of Environment and Forests (MoEF) in a preliminary exercise have jointly completed the identification of the coal blocks falling in the “Go” area category by incorporating the cluster and sub-cluster concept. It has now emerged that 80 blocks fall in the said category, of which 24 are existing mines. In a letter to Prime Minister Manmohan Singh’s Office on June 28, a senior coal ministry official said following a meeting chaired by Singh’s principal secretary T K A Nair on June 16, both the ministries had jointly carried out an exercise to identify the coal blocks falling in Category A and B areas. “It has been seen that now an additional 53 blocks, out of which 24 are existing mines, have come into the B category. A further 27 blocks have been identified having an area of 82,539 hectares, which after suitable boundary modifications will also come into the B (Go) category. The estimated area of these blocks will be around 62,000 hectares,” the official wrote in his letter to the PMO. But the modification of boundaries of these blocks needed to be done on larger scale maps as compared to the maps on which the study on forestry cover has been completed. “The exercise on boundary modifications will thus take some more time,” he said. In a recent meeting chaired by finance minister Pranab Mukherjee, coal minister Sriprakash Jaiswal complained that without taking his ministry into confidence the MoEF had unilaterally fixed the criteria for the Weighted Forest Cover and Gross Forest Cover. He said that had led to to large coal bearing forest area being classified as “No Go” areas, which would adversely impact coal production. “Decisions with such far-reaching implications are usually taken by setting up Inter-Ministerial Committees (IMCs) where views of all stakeholders are properly obtained and deliberated on, and thereafter recommendations are put up for the approval of the Group of Ministers (GoM) or the union cabinet,” Jaiswal told Mukherjee. He even argued that following the government’s decision to offload 10 per cent stake in CIL , the company’s Book Lead Running Managers and potential investors had expressed the apprehension that the company’s valuation could be seriously affected. Even the PMO, in a meeting with the top brass of the coal ministry and the MoEF, expressed unhappiness that the categorisation of A and B areas would result in 619 million tonnes of coal per annum remaining out of bounds for Coal India Limited. Pointing out that the “No Go” approach could lead to an increase in Naxalism, the PMO suggested that the threshold of Weighted Forest Cover could be greater than 30 per cent and Gross Forest Cover could be greater than 50 per cent to treat the area as “No Go” instead of 10 and 25 per cent as suggested at present.

(Source:http://www.indianexpress.com/news/coalmin-moef-identify-go-area-blocks/645132/0)

Coal ministry seeks norms on mining in forest areas

New Delhi, July 12, 2010: The coal ministry has requested the Prime Minister’s Office to define the criteria for mining in forest areas in consultation with concerned ministries and Planning Commission to help double production to over 1,000 million tonne by 2020. The request comes in the face of environment ministry’s restrictions on mining in forest land, which coal ministry feels are excessive and prohibitive. The communication from the coal ministry was sent just two days before FM Pranab Mukherjee asked environment minister Jairam Ramesh to be more lenient and and work together with the coal ministry to find a solution to the issue. “Before the sub-clustering approach was adopted for ‘A’ category, there was resultant reduction in production capacity to the tune of about 660 MTPA. After adopting sub-clustering approach on which environment ministry has given its consent, the loss of production is estimated to be about 500 MTPA. This position is not at all satisfactory for meeting the demand for coal. It appears we will have to revisit the criteria. It is being suggested that since it is going to be a nationally adopted criteria on forest cover, all concerned ministries and Plan panel should be consulted in fixing the criteria,” a senior coal ministry official said in a letter to the PMO.

(Source:http://www.financialexpress.com/news/coal-ministry-seeks-norms-on-mining-in-forest-areas/645069/)

Captive coal miners may get to sell to third parties

Commercial mining may be opened to private sector in a limited way

New Delhi, July 12, 2010: In a step towards opening the commercial coal mining to the private sector, the government may allow companies holding captive mining leases to sell excess coal in the open market to meet the increasing coal demand for power generation. At present, commercial mining is reserved for state-owned Coal India (CIL), which is not able to ramp up production fast enough, necessitating ever-increasing imports. As a half-hearted solution, the government had allowed private companies to mine coal for captive consumption, but they were not allowed to sell any excess production in open market, or what is called merchant sale. Any surplus production has to be transferred to the nearest CIL subsidiary at a price determined by the coal controller, usually 40-50% below open market price, discouraging extra production. “The issue (commercial sale from captive blocks) is being re-examined by the coal ministry in order to improve the overall coal availability in the country,” a coal ministry official said. “The existing policy does not permit companies to produce at their maximum-rated capacity from captive blocks, as production is tied to their end-use and sale of any excess coal in the open market is prohibited,” the official added. The coal ministry may allow companies with captive mines to sell incremental coal from their blocks to other approved end-users of coal —power, steel and cement producers — that are eligible to get captive coal mines on their own. However, the government may still regulate the price of such sales, creating the risk that an unduly low price could discourage companies from producing more than their captive use requirement. The government has already allowed Reliance Power to divert incremental coal from mines allocated for its Sasan ultra mega power project (UMPP) to the company’s 4000 mw power project at Chitrangi in Madhya Pradesh. The government could now go a step further and allow a captive miner like Reliance Power to sell surplus coal to third parties. “Not all companies with captive mines may have plans to set up another power or steel project on their own. Permission to sell incremental coal would facilitate such companies in getting buyers from outside,” said an official in the Planning Commission. Experts feel this will make coal-based power projects more attractive and could see better participation in bidding and help bring down tariffs. “The move will definitely help in getting competitive bids for future power projects as bidders could factor in change in policy in their tariff quotes,” said an official of an advisory firm. “Similar adjustments can also be made by other companies to reduce their cost of operations and price the products competitively,” he added.

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

Govts indifferent towards chrome ore loot

Bhubaneswar, July 12, 2010: The government of India and the Orissa government have mysteriously closed their eyes to a broad daylight “robbery” of high grade chrome ore from Tailangi mines under Sukinda block in Jajpur district. The chrome ore mines incidentally come under the constituency of state finance minister and senior Biju Janata Dal leader Prafulla Chandra Ghadei. Investigation revealed that some contractors under direct patronage of a section of dishonest senior officials of the state-owned Industrial Development Corporation (IDC) have legally lifted nearly 10 lakh tonnes of chrome ore worth over Rs 17,000 crores. The minerals were raised during the last few years. Before the economic slowdown, the chrome ore price was over Rs 17,000 per tonne. Tailangi mines happen to be the captive reserves of IDC. The illegally lifted chrome ore were allegedly sold in grey markets. What is surprising is that the IDC, which is the lease-holder of the mines, has seemingly partnered in the plunder of wealth by sponsoring the raising cost to the contractors. The IDC and the contractors have completely destroyed the local dense forest and diverted the passage of the perennial Damsola stream for smooth exploitation of the mineral. The illegal mining has taken place in areas under khata no 5,17,3,35,38,39 and plot no-251, 324, 110, 326, 17, 109, 327, 108, 330, 147, 331, 104, 105, 106, 147, 418, 415, 413, 420, 324 and 458. The land where illegal mining has taken place belonged to forest category and private tenants.

(Source:http://www.asianage.com/india/govts-indifferent-towards-chrome-ore-loot-612)

Govt to clear air on mining approval ahead of CIL float

Status Quo on Demarcating Coal-Bearing Areas for Now

New Delhi, July 9, 2010: The government has stepped in to end uncertainties over coal mining caused by the tough stance of the environment ministry, as it gears up for the crucial initial share sale of state-owned Coal India. The decision was taken at a meeting on Thursday chaired by finance minister Pranab Mukherjee and attended by coal minister Sriprakash Jaiswal and environment and forest minister Jairam Ramesh. The ministers decided that the final policy on coal mining will be announced before the world’s largest coal miner hits the market sometime in October, said a government official privy to the development. The status quo will be maintained till the time a final decision is taken on the matter of dividing the country’s coal-bearing regions into `go’ and `no go’ areas. “The present study on nine coalfields are just indicative. Final policy on the matter will be drafted after further mapping of forest and coal reserves and field-level studies,” the official said, requesting anonymity. In a joint exercise with the coal ministry, the environment ministry had studied the nine major coal mining areas in central and eastern India and concluded that nearly half of these areas are not viable for mining activities. The study classified these areas as A category or `no go’ areas, totally barred for mining. The classification finds several existing and upcoming coal mining operations, including captive mines of the two ultra mega power projects (UMPP) on bidding in Orissa and Chhattisgarh, in areas barred for mining. The present categorisation impacts operations of CIL as several of its upcoming coal mining projects with potential to give output of 200-300 million tonnes annually fall in no go’ areas. “The new categorisation will seriously impact our operations,” Coal India chairman Partha S Bhattacharyya told ET earlier. The categorisation has put the Hasdeo Arand coalfields in Chhattisgarh out of bounds for mining, affecting 30 mining licences given to companies such as Prakash Industries, Hindustan Zinc, Ultratech and Chhattisgarh Captive Coal Mining between 2003 and 2007. Some of these blocks have already seen substantive work. After the intervention of the PMO, the environment ministry showed some flexibility, agreeing to free about 10% of ‘no go’ areas for mining with proper environment management exercise. This may be watered down further when the policy is finalised. However, companies in these areas may be asked to spend more towards environment protection.

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

Niyamgiri: Team studies bauxite mining impact

Bhawanipatna, July 9, 2010: To study the impact of proposed bauxite mining by Vedanta Aluminium Limited at Niyamgiri, an expert committee led by MC Saxena toured some of the Kutia Kondh and Dongria Kondh inhabited villages. The study, being undertaken at the direction of the Ministry of Forest and Environment, is expected to decide the fate of Vedanta.  The report of Saxena will concentrate on the consequences of mining on environment, forest and tribal life.  During his tour, Saxena interacted with the villagers to learn about their economic condition, hopes and apprehensions, ‘if any’, regarding mining and the steps taken by VAL for their welfare.  He visited Bandhguda, Rengopali, Trilochanpur and Phuldumer villages. At Phuldumer, a primitive Dongria Kondh inhabited village in the foothills of Niyamgiri, he inquired from the villagers about their forest rights and status of their awareness of other provisions of the Forest Act.  He also visited the leaf plate making unit, solar light, childcare centre and pipe water supply scheme floated by VAL in the village under its CSR initiative.  In Bangoguda and Regopali villages, adjacent to the plant, villagers expressed apprehensions about their future due to proximity and demanded displacement and rehabilitation facility. Saxena today held a meeting with environment activists and eminent citizens on the issue.  Among others, Lok Sabha member Bhakta Das and Sidhartha Naik, who attended on behalf of Green Kalahandi, former State ministers Kiran Singh Deo and Balabhadra Majhi for BJD, former Lok Sabha member Subas Naik and members of advocates forum, NGOs Sewa, Udyogini and GARD interacted with him and presented memoranda.

(Source:http://expressbuzz.com/states/orissa/niyamgiri-team-studies-bauxite-mining-impact/188352.html)

Ghanudih in master plan

- BCCL working to shift 1000 families from fire zone

Dhanbad, July 8: For reasons of safety, BCCL has initiated steps to relocate residents of Bastacola from its Ghanudih project after signs of more turbulence in the underground fire zone that is already spewing gas.  As a first step, Bharat Coking Coal Limited have included the entire Ghanudih area under the Rs 7,028 crore Jharia master plan to be implemented by Jharia Rehabilitation Development Authority (JRDA), the agency looking after the relocation of non-BCCL families. Earlier, only a part of Ghanudih was included in the plan.  This apart, the process of shifting BCCL families from the fire affected areas of Ghanudih to safer areas has also begun. As many as 68 families have been allotted quarters in the Karmatand area in Baliapur. BCCL’s chief general manager of the Bastacola area R.U. Pandey said besides Karmatand, in the Baliapur block of the district, quarters were also being allotted to BCCL employees in other safer areas. “The quarters in Karmatand have been repaired and they now have water and electricity connections,” said Pandey. More than 200 BCCL employees’ families and around 800 non-BCCL families are living in the vicinity of the Ghanudih project that includes places like Idli Patti, Gandhi Chabutara and Bhuiyan Patti. JRDA has already initiated work on the socio-economic survey to identify and rehabilitate non-BCCL families. The authority’s resettlement and rehabilitation in-charge Gopal Ji, however, said shifting of non-BCCL families would take time as houses would be allotted to them in Belgarhia only after the survey was completed and identity cards issued to them. “As several residents of Ghanudih are owners of their own land, shifting them to Belgarhia could be an issue as it was only meant for illegal settlers of the Jharia coal field region,” he said. Trade unions have protested the company management’s decision to serve a 48-hour ultimatum to BCCL families for leaving the area. “Though there is no option but to move to safer areas, coercive steps can prove counter productive,” said AK Jha, the state president of Rastriya Colliery Mazdoor Sangh.

(Source:http://telegraphindia.com/1100709/jsp/jharkhand/story_12662800.jsp)

Coal, environment ministries soften on mining areas

New Delhi, July 9, 2010: Led by Finance Minister Pranab Mukherjee, who chaired a meeting between Coal Minister Sriprakash Jaiswal and Environment and Forests Minister Jairam Ramesh, the two ministries today initiated an exercise to identify prima facie ‘A’ and ‘B’ areas for coal mining in nine major coalfields. The development comes two days after the Ministry of Environment and Forests (MoEF) released 380,000 hectares of land for coal mining — which was earlier classified as “no-go” area because of fragile ecological conditions. The coal ministry wanted 450,000 hectares while the environment ministry had agreed to 349,000 hecatres. This, however, does not include the Hasdeo-Arand field in Chhattisgarh, which the Prime Minister’s Office and the coal ministry wanted to be freed. The present ‘A’ areas, according to the exercise, would be those with rich forest cover and bio-diversity, where applications would not be entertained for forest land diversion. On the other hand, the present ‘B’ areas would be those where prima facie the statutory Forests Advisory Committee in the MoEF would consider proposals for diversion of forest land for coal mining purposes.  “This is an ongoing exercise which has to be based both on mapping of forest and coal reserves as well as field-level studies. The results of the ‘go’ and ‘no-go’ analysis are indicative. Further action will be taken by the government after a detailed analysis,” said an MoEF statement. These nine major coalfields that were taken up for identification of “go/no go” areas for coal mining from the point of view of forest clearances were North Karanpura (Jharkhand), IB Valley (Orissa, Chhattisgarh), Singaurali (MP, UP), Talcher (Orissa), West Bokaro (Jharkhand), Wardha (Maharashtra), Mandraigarh (Chhattisgarh), Hasdeo (Chhattisgarh), and Shoagpur (Chhattisgarh, MP).

(Source:http://www.business-standard.com/india/news/coal-environment-ministries-softenmining-areas/400873/)

Environment, Coal Ministries to jointly map coal reserves

New Delhi, July 8, 2010: The Environment Ministry and Coal Ministry have initiated a joint exercise to identify and map coal reserves in forests for coal mining. Such areas are being classified as ‘go' and ‘no-go' areas. ‘Go areas' would be those areas where prima facie, the statutory Forest Advisory Committee in the Environment Ministry would consider proposals for diversion of forest land for coal mining purpose. ‘No-go' areas would be those with rich forest cover and bio-diversity where applications would not be entertained for forest land diversion. A preliminary exercise jointly taken up by the MOEF and Coal Ministry has indicated ‘go' and ‘no-go' areas in nine major coal fields. “This is an ongoing exercise which has to be based both on the mapping of forest and coal reserves as well as field level studies. “The results of the ‘go' and ‘no-go' analysis are indicative. Further action will be taken by the Government after a detailed analysis,” an MOEF statement said. The Finance Minister, Mr Pranab Mukherjee, chaired a meeting on Thursday attended by Environment Minister, Mr Jairam Ramesh, and the Coal Minister, Mr Sriprakash Jaiswal, to discuss issues relating to ‘go' and ‘no go' areas of coal fields and to find ways and means to improve coal output.

(Source:http://www.thehindubusinessline.com/2010/07/09/stories/2010070954590400.htm)

HC seeks report on mining pollution control at Shrigao

Panjim, July 8, 2010:  The Bombay High Court at Goa on Thursday directed Goa State Pollution Control Board (GSPCB) to file a compliance report of its (the court’s) directions (issued on February 23, 2010) by August 31. The High Court had directed three mining companies M/s Dempo Mining Corporation Pvt Ltd, M/s Rajaram Bandekar (Shrigao) Mines and M/s Chowgule & Company Pvt Ltd, to take remedial measures in the mining affected areas of Shrigao. They were ordered to construct recharge trenches to control seepage of water into mining pits; provide adequate slope stabilization in the mining areas to minimize run-off of mining rejects to the nearby agriculture fields; and take measures for bio-remediation of silted soils. Earlier, under section 33 (A) of the Water (Prevention & Control of Pollution) Act, 1974 the Goa State Pollution Control Board (GSPCB) had ordered the three companies to immediately implement recommendations suggested by it for containing mining pollution. They were warned that legal action as per provisions of section 33 (A) of the Act, will be initiated against them. The Act also has provision to shut down units that do not comply with the orders. The GSPCB issued directions to mining companies following a report by National Environmental Engineering Research Institute. During hearing of the case, on February 24, GSPCB had sought six months time to ensure that its recommendations were implemented. The six months period ends next month and therefore will have to file compliance report next month about the progress made by mining companies in implementing the recommendations.

(Source:http://oheraldo.in/news/Local%20News/HC-seeks-report-on-mining-pollution-control-at-Shrigao/38656.html)

Red bandh throws life out of gear in Jharkhand

Ranchi, July 8, 2010: Normal life was thrown out of gear in Jharkhand on the first day of the 48-hour Maoist bandh on Wednesday with a number of trains either cancelled or diverted and vehicular traffic remaining off the roads  The banned CPI(Maoist) has called the two-day bandh to protest the killing of their leader Cherikuri Rajkumar alias Azad in an encounter in Andhra Pradesh on July 2. A major mishap was averted in Simdega district when an explosion occurred as police tried to remove a Maoist banner put up on a road with poles. Two jawans received minor injuries in the incident.  Sources said a police patrol team was on duty in the Simdega valley when they spotted a Maoist banner on the road. The moment a policeman tried to remove the banner from a distance, an explosion went off injuring two jawans.  Simdega SP Durga Oraon said that the banner was put along the road on three poles. "Soon after the explosion, the jawans found a live can bomb weighing around 5 km under one of the poles," Oraon said.  The mining belt of Jharkahnd was also badly affected during the bandh. Seven trains were cancelled and routes of five trains were diverted to avoid any mishap during the bandh. This despite the fact that the Maoists had announced that the railways would be kept out of the purview of the bandh. Among the trains cancelled included the Barwadih-Dehri-on-Sone Express, the Chakradharpur-Gomo Express, the Tatanagar-Kharagpur passenger, the Palamau Express and the Tata-Howrah Steel Express. The trains whose routes were diverted included Howrah-Varanasi Intercity Express, Tata-Jammu Tawi Express and Howrah-Jabalpur Shaktipunj Express. Over 40,000 trucks and around 7,000 buses remained off roads creating problem for the commuters. In rural areas even small passenger vehicles, including jeeps, remained off roads fearing Maoist attacks. A joint operation by Khunti, Ranchi and Saraikela-Kharsawan police was also launched in the bordering area of the three districts during the day. Jharkhand police spokesperson VH Deshmukh said adequate security arrangements have been made and alert sounded in all districts. "Police are prepared to deal with any situation," he said.

(http://timesofindia.indiatimes.com/city/ranchi/Red-bandh-throws-life-out-of-gear-in-Jharkhand/articleshow/6140269.cms)

Jairam clears more area for coal mining

New Delhi, July 8, 2010: Union Environment Minister Jairam Ramesh has relented a bit on the issue of mining of coal in forest areas. After persistent requests from the Coal Ministry, the Environment Ministry has decided to increase the area where coal mining can be done — the so-called ‘go-areas’ — by nearly 35,000 hectares. The Ministry has classified forest land into ‘go’ and ‘no-go’ areas for coal mining firms. According to the initial classification, the ministry had identified nearly 3,45,000 hectares of land where mining could be carried out, subject to environmental and other clearance. The other areas were ‘no-go’ areas. The increase in ‘go’ areas has come near places where mining is already being done. “I think we are ready to live with about 3,80,000 hectares of ‘go’ areas. The increase has come in areas where underground mining is proposed to be taken. We are okay with underground mining,” Ramesh said.

(Source:http://www.indianexpress.com/news/Jairam-clears-more-area-for-coal-mining/643510)

10% more forest to be made available for coal mining

Environment Ministry Okay To Balance Ecological & Development Needs

New Delhi, July 8, 2010: Keen to shrug off its obstructionist image, the environment ministry has said that it was willing to look at options that would balance the needs of development and environment. As part of this exercise, it has agreed to increase forest area available for mining in eight coalfields by 10%.  This increase includes underground mines. Environment minister Jairam Ramesh had earlier said that it would be difficult to ecologically justify an increase of more than 5% in forest area available open to mining. Sources said that the decision to increase areas open for mining to 3,80,000 hectare from 3,45,000 hectare was arrived at jointly by the coal and environment ministries. The coal ministry had objected to the initial figure and suggested that 4,50,000 hectare in these coalfields be made available for mining. Coal minister Sri Prakash Jaiswal had argued that the environment ministry’s demarcation of areas that would remain out of bounds for mining puts some 619 million tonnes of coal production out of reckoning every year. The current exercise excludes the Hasdeo Arand coalfield in Chhattisgarh, which has been classified as “no go” by the environment ministry. The coal ministry has already allocated block in this field.  “As part of the relook, we have decided to allow mining in areas that already have mining activities and further opening will not make much difference. Also, some additional area is in the form of underground mines with which we have no issues. The ministry has issues only in areas where strip mining is practised,” sources in the environment ministry said. Meanwhile, Mr Ramesh said that there were serious environmental issues with the Navi Mumbai airport project which needed to be addressed. Last week civil aviation minister Praful Patel charged Mr Ramesh with erecting hurdles before the airport project. On Tuesday, Mr Ramesh said the final environment impact assessment report would be submitted on Wednesday, after which the environmental appraisal committee would meet on July 21 and 22. A final view would be taken only these meetings. Earlier in day, Mr Ramesh had met with Maharashtra chief minister Ashok Chavan, who sought speedy environment clearance for the project. “I have had a word with the Maharashtra chief minister. It is not that we don’t want development but it should comply with environment laws. There are very serious environmental issues that had to be addressed and we will definitely find solution,” Mr Ramesh said. Among the issues that are of concern to the environment ministry is the destruction of 400 acres of mangrove, diversion of two rivers and the blasting of a 80 feet island. Last week, the environment ministry had requested clarifications on the environment impact assessment report, which included plans regeneration of the mangrove and avoiding the diversion of one of the rivers. IIT Mumbai which has undertaken the assessment report is also expected to submit an environment mitigation plan. The environment ministry had earlier suggested that a new location be found for the airport. Sources said that the Maharashtra chief minister had informed Mr Ramesh that a fresh location would require acquiring land, which would delay the project. Mr Chavan is understood to have conveyed to the environment minister that as much as 60 to 70 per cent of the land required for the Navi Mumbai airport has already been acquired.

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

Compromise on ‘no-go' coal fields

New Delhi, July 8, 2010: The Coal and Environment Ministries have reached a compromise solution on the controversial “no-go” designation of coal mining blocks in forested areas, following the reported intervention of the Prime Minister's Office (PMO). Speaking on the sidelines of a function here on Tuesday, Union Minister of State for Environment and Forests Jairam Ramesh said that while the final “go areas” will span 30,000 hectares more than his initial proposal, it was also 70,000 hectares lower than the original Coal Ministry proposal. Also, it now includes some underground mines, which are environmentally preferable to the original strip mining proposals. “It is a compromise,” Mr. Ramesh said. “This is something we can live with.”

PMO's intervention

The Ministries had undertaken a joint survey last year, superimposing maps of coal reserves onto maps of forested areas in nine coalfields. Almost half the coal blocks were placed in “no-go areas,” much to the dismay of the Coal Ministry, which reportedly appealed to the PMO, pointing out the losses in revenue and potential thermal power generation capacity. It demanded that the forest cover restrictions be made less stringent. While the Environment Ministry proposed to put 3.49 lakh hectares into the “go” column — which would allow mine developers to apply for a clearance — the Coal Ministry demanded 4.5 lakh hectares. After a further joint analysis, the Ministries have settled on 3.8 lakh hectares, Mr. Ramesh said. Highly placed sources said that while eight of the nine coalfields have been part of the compromise solution, the Hasdeo-Arand coalfields of Chhattisgarh have been excluded. The entire field remains firmly in the “no-go” zone, despite a proposal for an ultra mega power project in the region. In another case of the clash between mining interests, the environment and human rights, the head of the Environment Ministry's four-member committee looking into the Vedanta mine proposal in Orissa's Niyamgiri hills visited the site on Tuesday. The mine proposal, a joint venture between Vedanta Aluminium and the State-owned Orissa Mining Corporation, has been opposed by the local tribal population whose livelihood and culture could be affected. According to Mr. Ramesh, the visit of National Advisory Council member N.C. Saxena has been strongly opposed. Local NGOs allege that people are being intimidated from meeting or talking to Mr. Saxena, the Minister said. The committee is scheduled to submit its report by August.

(Source:http://www.hindu.com/2010/07/07/stories/2010070761492200.htm)

Coal India to come out with India's largest IPO in October

New Delhi, July 8, 2010: State-run Coal India Ltd is likely to hit the market by the third week of October with India's largest ever public offer to raise up to Rs 15,000 crore. The government is disinvesting 10 per cent of its stake in Coal India (CIL), the world's largest coal miner, through the IPO. "As of now, it seems that CIL initial public offer will open on October 18 and closes on October 21. The 10 per cent disinvestment will see the government raising Rs 12,000- 15,000 crore," a person in the know of the development told PTI. The blue-print of the IPO was finalised last evening at a meeting between Finance Minister Pranab Mukherjee and Coal Minister Sriprakash Jaiswal. The meeting was also attended by Additional Secretary Coal Alok Perti and Department of Disinvestment Secretary Sumit Bose and Coal India Chairman P S Bhattacharyya, the source said. Coal India, the largest global coal miner, sells the dry fuel 50 per cent cheaper at around USD 25 a tonne than the prices prevailing in the international market. Although CIL's IPO was planned in August-September, it was delayed due to opposition to the government's 10 per cent stake sale move from trade unions and political parties.  "The Department of Disinvestment has finalised the issue date. The company will now file the Draft Red Herring Prospectus of the IPO by the first week of August," the source added. The government is selling 10 per cent of its stake in CIL disinvestment. It currently holds 100 per cent equity in the coal major. CIL had earlier said it will issue over 63 crore shares in the IPO. The Union Cabinet had last month approved to disinvest 10 per cent of the government's holding in CIL. The Centre holds 100 per cent equity in the company. Coal India produced 431.5 million tonnes of coal in the last fiscal. The country's coal output stood at 531.5 million tonnes in 2009-10. Anil Dhirubhai Ambani Group firm Reliance Power, in January 2008, raised Rs 11,500 crore through IPO -- the biggest in India till date. Aiming to raise Rs 40,000 crore through disinvestment in this fiscal, so far sell off in Satluj Jal Vidyut Nigam has fetched the exchequer over Rs 1,000 crore. The government is likely to sell its stake in 10 PSUs, including MMTC, SAIL and Hindustan Copper, this fiscal. The government in 2009-10 had raised Rs 25,000 crore through stake sales in Oil India, NMDC, REC and NTPC. NMDC 8.38 per cent stake sale had fetched the government about Rs 10,000 crore.

(Source:http://economictimes.indiatimes.com/markets/ipos/Coal-India-to-come-out-with-Indias-largest-IPO-in-October/articleshow/6142639.cms)

Orissa power project staring at coal mine crisis

New Delhi, July 8, 2010: The Bedabahal (Orissa) ultra mega power project may hit a road block as the captive coal mines linked with the 4,000 MW project now figures in the list of areas prohibited for mining activities by the environment ministry. The impediment came to light just before the July 30 deadline for submitting pre-qualification bids (request for qualification) for the ultra mega power project. Power Finance Corporation (PFC) is the nodal agency implementing UMPPs in the country. The Chhattisgarh UMPP is already facing a similar problem with the Hasdeo Arand coal field being declared as “no go” area for mining by the environment ministry. Chhattisgarh UMPP’s captive coal block lies in the coal field. At a high-level meeting convened under the chairmanship of the power secretary late last month, it was discovered that two of the three coal blocks associated with Bedabahal UMPP are in prohibited areas, where the environment ministry does not intend to permit any mining activities. The Orissa UMPP has been allocated three coal blocks, of which Minakshi B and dipside of Minakshi fall in the prohibited region considered too green by the environment ministry to permit mining. Coal is crucial for the UMPP and the valuation of the project and bids will depend highly on availability of fuel source. “We have some time to find a solution. If, however, a strategy is not finalised by the end of the month, the dates for submitting RFQ document for Orissa project also will have to be extended,” said an official of the power ministry asking not to be named. “In an international competitive bidding (ICB) process, withdrawal of coal blocks does not convey positive impact about Indian power sector for prospective international bidders,” the official said. Under directions from the Prime Minister’s Office (PMO), the power ministry and the coal ministry are finalising a strategy on captive coal blocks for the power sector that limits damage to the environment and does not obstruct projects. An inter-ministerial group has already come out with a temporary arrangement that is expected to bring out several captive coal blocks from the assigned `no go’ areas. But this has to be evaluated further by the environment ministry before it becomes operational. The environment ministry had earlier carried out a joint exercise with the coal ministry studying nine major coal mining areas that concluded that over 35% of the area under study is not viable for mining activities.

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

RIL ready for methane mission

Mumbai, July 7, 2010: After making a play for shale gas in the US, Reliance Industries Ltd (RIL) has turned homewards to tap into another unconventional source of energy — gas trapped in coal bed seams. The company has floated a tender inviting expressions of interest from companies that supply equipment to develop coal bed methane blocks (CBM). Reliance Industries has five coal bed methane blocks in the states of Madhya Pradesh, Rajasthan and Chhattisgarh. The company hopes to extract gas from these blocks and expects to drill 100 wells in the next five years to a depth of up to 1,700 metres. RIL is also inviting expressions of interest for the development of onshore exploration blocks that were awarded by the government under oil block auctions Nelp II and Nelp V. The company has issued the tender on behalf of itself and its partners for these blocks that include Oil and Natural Gas Corporation, Okland Offshore Holdings, Hardy Exploration and Production (India) Inc and Tullow India Operations Ltd. The deadline for submission of expressions of interest is July 21. RIL has already achieved commercial production of 60 million standard cubic metres per day (mmscmd) in the deep sea KG-D6 basin and now wants to tap unconventional sources of energy where it might not have to splash out huge sums of money to hunt for gas. So far it has entered in two joint ventures in the US — with Atlas Energy and Pioneer — to develop shale gas. Sources say the company is engaged in talks with another shale gas player in the United States. If that deal materialises, it will be RIL’s third joint venture for shale gas. RIL declined to comment on this potential venture. The fact that RIL intends to develop gas (methane) trapped in the surface of coal is significant as there has been very little extraction from these CBM blocks which were awarded in auctions held in 2001 and 2003.  While replying to questions on CBM projects, petroleum minister Murli Deora had told the Lok Sabha in late April that commercial production of CBM had started in July 2007 at Raniganj (Bengal) where S.K. Modi-owned Great Eastern Energy Corporation Ltd has been exploring the gas block. In 2009-10, 38.40 million standard cubic metre of gas was produced from Raniganj, twice that produced in the previous year. Great Eastern Energy is listed on the London Stock Exchange Alternative Investments Market. Deora had said in April that based on the current estimates and status of planned field development, CBM production in the country was likely to touch 7.41 million standard cubic metre per day in 2012-13. The CBM policy was approved in 1997 to tap this unconventional source of energy. Twenty-three CBM blocks have been awarded in the first three rounds of auction. The fourth round was launched recently with an offer of 10 blocks covering nearly 5,000 sq kms.  In all, 26 blocks have been awarded — two of them under nomination basis to ONGC — and the estimated resources in these blocks amount to 1,480 billion cubic metres. In March, the government was reportedly concerned over the slow pace of development of these coal bed methane blocks. It had mulled the idea of taking back the undeveloped CBM blocks from investors and hiving them off as coal mining projects. The coal ministry also debated on simultaneous exploitation of coal and CBM in a single block. It even proposed vertical separation of land tracts for CBM and coal mining by different developers.

(Source:http://www.telegraphindia.com/1100708/jsp/business/story_12659016.jsp)

Ramesh to K’taka: Curb illegal mining in a week

New Delhi, July 7, 2010: Expressing serious concern over reports about the continuation of illegal mining in the forests of Sandur near the iron ore-rich Bellary district, union environment and forests minister Jairam Ramesh has given a week’s time to Karnataka’s BJP-ruled government to clamp down on the menace.  In a letter to state chief minister B S Yediyurappa, Ramesh expressed concern over reports by the media and other stakeholders that mining was continuing in the forests of Sandur in complete violation of the Forest Advisory Committee (FAC) resolution issued last month. The resolution clearly and explicitly directed that such mining be stopped. “This is a complete and blatant contravention of the FAC directive. As you know that the FAC is a statutory body of the government, I am sure you will agree that violation of its order is a matter of serious concern,” Ramesh said in his letter.  The FAC, after thorough deliberations, had said illegal extraction of minerals was being carried out by three mine owners — SB Minerals, Trident Minerals and Veeyam Minerals. It had asked the Centre to instruct the state government to undertake a survey and demarcate the area and construct permanent pillars along with a soft/hard copy of the map. Further, the committee said till the demarcation and survey was completed the forest clearance for these mines “will remain temporarily withdrawn.” Ramesh said he agreed with the FAC’s recommendation that the withdrawal of the clearance will be treated as revoked after a detailed report was submitted by the Karnataka forest department spelling out the compliance in all the individual cases. “The state forest department will ensure that during the period no transportation of the minerals is allowed,” Ramesh said.  The minister demanded a thorough investigation of the forest offence cases in respect of these mines and take them to their logical conclusion. “Further responsibilities should be fixed on erring officials during whose period the irregularity has taken place and cases have not been concluded,” the minister said and added that the Action Taken Report against these officials be submitted along with the request for revoking of withdrawal of forestry clearance of these mines. “Taking suo moto cognizance of the media report and FAC resolution, I am requesting you to take action to ensure that this is stopped with immediate effect and provide us with an ATR on this by July 10, 2010,” Ramesh said.

(Source:http://www.indianexpress.com/news/ramesh-to-ktaka-curb-illegal-mining-in-a-week/643142/0)

NMDC plans Rs 3k-cr iron ore pipeline from Bailadila to Vizag

New Delhi, July 7, 2010: The country’s largest mining company, NMDC, plans to invest Rs 3,000 crore in a new 12 million tonne per annum pipeline from Chhattisgarh in a bid to improve iron ore evacuation, which has been hit after a Naxal attack last year severely damaged a product pipeline.  “We will build a 424-km pipeline between our Bailadila mines in Chhattisgarh and Vizag port to help in evacuation of products affected by the damage of existing pipeline,” NMDC chairman and managing director Rana Som told reporters at a press conference on Tuesday.  “The capacity of the pipeline will support company’s expansion in the Bailadila region where production will rise from present 22-23 million tonne to about 40 million tonne in next four to five years time. It will help our domestic customers like RINL and Essar Steel,” he said. The proposed pipeline, which will be laid along the highway, is expected to be completed by October 2012. NMDC is finalising a contractor that will operate the pipeline on behalf of the company. Talking about the performance of the company, Mr Som said NMDC may clock all-time high sales of around Rs 2,400 crore in the first quarter of the current fiscal (2010-11) despite bottleneck in evacuation. This will largely come due a hike in iron ore prices and 20% increase in sales volume, said Mr Som. The profitability (both pre- and post-tax) of the company is also expected to rise by 80%.

In talks with Nippon, Arcelor

NMDC, which is planning to set up two steel plants, is also scouting for a partner for its proposed 2 million tonne (MT) steel plant in Karnataka. “Nippon Steel is negotiating with us on behalf of Japanese Steel Mills for the proposed steel plant in Karnataka. It will be a joint venture project and likely to cost Rs 10,000 crore,” said Mr Som. “We are also talking to Kobe for an iron nugget project in Andhra Pradesh. It will be a JV with our recently acquired Sponge Iron India Ltd,” he said. NMDC will also set up a three lakh tonne beneficiation plant using indigenous technology to enhance iron content in low grade ore (less than 30% iron content) to over 67% level. The average price realisation of iron ore has also gone up this year to about Rs 3,329 per tonne against Rs 2,161 per tonne in 2009-10.  The NMDC chairman said he had met executives of ArcelorMittal last week to discuss a partnership for the latter’s iron ore mining project in Senegal. The companies are presently undertaking studies for developing the Faleme iron ore mines for which ArcelorMittal had entered into a pact with the Senegalese government in 2007. The mines have estimated reserves of 750 million tonne of iron ore. On pricing, Mr Som said under the new system, the price of ore for domestic consumers has increased by 14% from July 1, against 26% rise in prices for the second quarter period globally.

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

State likely to renew 53 mining leases this year

Kolkata/ Bhubaneswar, July 07, 2010: The Orissa government has set in motion the process of renewal of mining leases of as many as 53 miners in the state. The renewal of mining leases of these firms, which will be dealt on a case to case basis, is expected to be completed by the end of the current financial year. There are 351 cases of renewal of mining leases in the state out of which 41 had not applied for approval as they are on the verge of closure. Of the remaining 320 cases, the operations of 103 mining firms have been suspended and only 53 cases are under consideration of the state government for renewal. The remaining firms are either not in operations or lack the statutory clearances needed for renewal.  “Presently, we are scrutinizing 51 cases for renewal of mining leases. The renewal process will be decided on a case to case basis. Out of these 53 firms, there are 28 cases which do not have the requisite forest clearance and these firms need to pay the Net Present Value (NPV) for diversion of forest land for mining activities. There are 10 other cases which have Temporary Work Permit (TWP) and are awaiting the Stage-II forest clearance and even these firms need to pay the NPV”, an official source told Business Standard. Among the 53 cases of renewal of mining lease, there are two cases sub judice with the Supreme Court of India while other cases of renewal pertain to mining activities being carried out on non-forest land. The renewal of mining leases hinges on several factors like environmental clearance, forest clearance or payment of NPV, pending litigation and settlement of outstanding dues. The value of NPV for mining activities has been estimated at Rs 1900 crore for mining activities in the state of which Rs 800 crore has to be paid by the state owned Orissa Mining Corporation (OMC) which holds lease over vast areas of land for minerals like iron ore, bauxite and chromite. The collection of NPV is underway and the deadline for the same has been fixed for July 24 this year. As per a Supreme Court order, the lessees are required to pay the Net Present Value (NPV) of the forests for the entire lease area in case of allotment of Mining Lease (ML) and also Renewal Mining Lease (RML). Though the order came in 2002, this was not being adhered to till the Central Empowered Committee (CEC) of the apex court pointed out this anomaly during the hearing on a case related to rampant illegal mining in the state recently. The CEC in its interim report has recommended for collection of NPV of trees in the forest land in the entire lease area. The rate has been fixed at Rs 6 lakh per hectare.

(Source:http://www.business-standard.com/india/news/state-likely-to-renew-53-mining-leases-this-year/400576/)

NMDC plans Rs 3k-cr pipeline out of Chhattisgarh

New Delhi, July 7, 2010: India’S largest mining company NMDC plans to invest Rs 3,000 crore to set up a 12 million-tonne per annum pipeline out of Chhattisgarh in a bid to improve iron-ore evacuation, which was hit after a Naxal attack last year severely damaged the product pipeline. “We will set a 424-km pipeline between our Bailadila mines in Chhattisgarh and Vizag port to help in evacuation of products that are affected due to damage to the existing pipeline,” said NMDC chairman and managing director Rana Som on Tuesday. “The capacity of the pipeline will support our expansion in the Bailadila region where production will rise from the current 22 to 23 million tonne to around 40 million tonne in next four to five years. It will help our domestic customers like RINL and Essar Steel,” he said. The proposed pipeline, which will run along the existing highways, is expected to be complete by October 2012. NMDC is finalising a contractor that will operate the pipeline on behalf of the company. Talking about the performance of the company, Mr Som said that NMDC may clock all time high sales of around Rs 2,400 crore in the first quarter of current fiscal (2010-11) despite bottleneck in evacuation. This will largely come due a hike in iron ore prices and a 20% increase in sales volume, said Mr Som. The profitability (both pre and post tax) of the company is also expected to rise by 80%. NMDC, which is also planning to set up two steel plants, is also scouting for a partner for its proposed two million-tonne (MT) steel plant in Karnataka. “Nippon Steel is negotiating with us on behalf of Japanese Steel Mills for the proposed steel plant in Karnataka. It will be a JV project and is likely to cost Rs 10,000 crore,” said Mr Som. “We are also talking to Kobe for an iron nugget project in Andhra Pradesh. It will be a JV with our recently acquired Sponge Iron India,” he said. NMDC will also set up a three-lakh tonne beneficiation plant using indigenous technology to enhance iron content in low grade ore (less than 30% iron content) to over 67%. The average price realisation of iron ore has also gone up this year to about Rs 3,329 per tonne against Rs 2,161 per tonne in 2009-10. Meanwhile, Mr Som said he had important meeting with officials of ArcelorMittal last week over forging partnership for latter’s iron ore mining project in Senegal. The companies are presently undertaking studies for developing the Faleme iron ore mines for which ArcelorMittal had entered into a pact with the Senegal government in 2007. The mines have estimated reserves of 750 million tonne of iron ore. On pricing, Mr Som said that under the new system, price of ore for domestic consumers has increased by 14% from July 1, against 26% rise in prices for the second quarter globally.

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

India to help Mozambique in coal, power sectors

New Delhi, July 7, 2010: India has offered Mozambique a grant of $40 million for improving technical capacity in coal mining and a $25 million line of credit for rural electrification, officials said on Tuesday. The agreements for the two loans were signed on Monday in Mozambique's capital Maputo by External Affairs Minister SM Krishna. Krishna held talks with his Mozambican counterpart Oldemiro Baloi and called on President Armandoemilio Guebuza. The grant for improving technical capacity in coal mining is significant as India has been trying to get access to Mozambique's huge coal resources. "Mozambique is a country rich in coal resources, and the question of energy is critical for the development of India. Hence our cooperation is prioritizing the energy sector," Krishna said in Maputo. Krishna began his trip in Mauritius last week. He will now travel to Seychelles, before returning to India.

(Source:http://www.hindustantimes.com/India-to-help-Mozambique-in-coal-power-sectors/Article1-568374.aspx)

Additional forest area opened up for mining

New Delhi, July 6 , 2010:  The Union Ministry of Environment and Forests has allowed the usage of 30,000 hectare of forest land spread over eight coalfields in six states for mining to fulfil India’s burgeoning power needs.
The additional areas will have underground coal mines rather than the ecologically damaging open-cast ones. These were the areas where some mining activities were going on in the past. The MoEF had earlier approved coal mining only in 3.45 lakh hectare forest area, called the “go area”. This is close to 65 per cent of the total field areas. The remaining 35 per cent was a “no go” area where mining could not be allowed for environmental reasons. However, having a mine in a “go area” does not mean automatic sanction. It merely allows the project proponent to put forward his application to the MoEF, seeking approval. Even though Environment Minister Jairam Ramesh claimed his cabinet colleague and Coal Minister Sri Prakash Jaiswal is onboard with the decision, Jaiswal opposed it demanding 4.5 lakh hectare forest area for coal mining. Ramesh also came under pressure from Gujarat Chief Minister Narendra Modi and his Madhya Pradesh counterpart Shivraj Singh Chauhan who complained to Prime Minister Manmohan Singh against Ramesh for not allowing coal mining in many areas, jeopardising the future of sundry power projects. One such field was Hasdeo-Arand in Chhattishgarh. With pressure mounting, the MoEF reviewed eight coalfields taking a sub-cluster approach and looking for those areas in forests that had already been opened for coal mining. However, the MoEF is strongly against mining in Hasdeo–in Korwa and Sarguja districts of Chhattishgarh–as the entire area is pristine forest. That is why Hasdeo has been left out while sanctioning additional mining areas. India’s coal demand is set to rise as the the country will be adding 50,758 MW capacity during the 11th Plan, out of which 15,208 MW has already been installed. The new projects include the five ultra-mega power plants as well. The 12th Plan targets are equally ambitious, as the Union Power Ministry has worked out a scheme to add another 78,700 MW in the next Plan out of which more than 50,000 MW will be thermal.

(Source:http://www.deccanherald.com/content/79758/additional-forest-area-opened-up.html)

CMPDI wants third type of coal-bearing area: ‘May Go’

New Delhi, July 6, 2010: Slamming the Ministry of Environment and Forests (MoEF) for unilaterally categorizing coal-bearing areas as A and B by fixing the criteria of Weighted Forest Cover (WFC) and Gross Forest Cover, the Central Mine Planning and Design Institute (CMPDI) has warned that since the exercise was based on satellite imagery, the coal-rich states may deny permissions in the course of time. Adding a new dimension to the issue of Go and No Go areas, it has suggested that the MoEF should consider another category of areas as “May Go” also.  In a letter to the Coal Ministry, CMPDI Chairman and Managing Director A K Singh said his organisation has merely provided the digitized map of the coalfields and blocks, while the Forest Survey of India (under MoEF) has categorized the coal-bearing blocks under A and B category by assuming some criteria on WFC and GFC. “CMPDI had expressed reservations over the selection of WFC and GFC by the MoEF. However, it is seen that the MoEF is going ahead with the criteria fixed unilaterally without discussing it with Coal India Limited,” he pointed out in his letter. The Prime Minister’s Office (PMO) too had recently asked the MoEF to review the threshold of the WFC arguing that its threshold be greater than 30 per cent while GFC be greater than 50 per cent to treat the area as a no-go area instead of 10 and 25 per cent respectively as suggested presently. A top Coal Ministry official told The Indian Express that the satellite-based canopy density classification used to calculate the WFC was highly subjective and was based on lonal variance, therefore there was a likely chance of error in doing so. “It has been observed in the forest cover map supplied by the FSI that in some of the coalfields like Karanpura, Ib Valley and Talcher coalfields, hill shadows have been classified as very dense forests. Considering the limitation of the satellite data and the discrepancy observed in the forest cover map, it is suggested to enhance the range of WFC from the level of 10 to 40 to accommodate the classification error,” he said. To justify his contention, the official cited that in the forest cover map coal blocks like Simlisahi, Dulanga, Manoharpur and Minakshi oepn forest has been classified as moderately dense forests. After analyzing the satellite data provided by the MoEF, the coal ministry found that most of the operating opencast mines in Singrauli, Talcher and Ib Valley coalfields have been categorized in No-Go category on the basis of classification of different type of forest considered for calculation of WFC and GFC. “Further it is proposed that instead of Go and No Go area, the coalfield/block may be categorized as Category A (Go), B (May Go) and C (No Go). The threshold value of of WFC and GFC be revised accordingly. For the Go areas CMPDI is understood to have suggested that EFC and GFC should be less than 25 per cent and 45 per cent respectively. For the May Go areas it said the threshold for WFC and GFC should be between 25-40 and 45-50 per cent respectively. And for No Go areas the WFC and GFC should be more than 40 and 60 per cent respectively,” it said.

(Source:http://www.indianexpress.com/news/cmpdi-wants-third-type-of-coalbearing-area-may-go/642657/0)

Permission given for projects to be probed

Approvals pertain to bauxite mining, alumina factory, wetlands allocation for three thermal projects

Visakhapatnam, July 6, 2010: Union Minister of State for Environment and Forests Jairam Ramesh has announced a probe into all kinds of permission given so far for bauxite mining, setting up of alumina factory and allocation of wetlands in Srikakulam for setting up three thermal power projects. He promised to withdraw all permissions if the report proved that they were given in contravention to the existing law. Giving a status report on bauxite mining and setting up of alumina refinery, he said some of them had got environment clearance, but no forest clearance was given. Hence they could not begin construction/mining.

Public consultations

Responding to a flood of representations from non-governmental organisations and tribals against permitting mining of bauxite at two locations in Visakhapatnam agency area during a ‘public consultation' organised by the Centre for Environment Education, he said the matter was at the State government level and the Ministry of Environment and Forests would take a cautious approach. At the fourth out of seven public consultations proposed countrywide by the Ministry of Environment and Forests under National Mission for a Green India, the Minister remarked: “Just because bauxite is present on top of the hills, we will not mine. We have greater concerns over spoiling water catchment area for 15 rivers/streams in the region.” Referring to allocation of wetlands for three thermal power plants, Mr. Ramesh promised to get them cancelled if rules were violated in giving environmental/forest clearances. While complimenting Andhra .Pradesh Pollution Control Board, the Union Minister said he had asked the State government to appoint an independent subject expert as chairman of the APPCB replacing the current practice of appointing a chief secretary.

‘No new sea ports'

The Union Minister said no new sea ports would be allowed anywhere in the country unless a comprehensive study on the impact and utility of existing ones was done. He responded to representations of fishermen communities on rampant pollution from shore-based industrial units.

(Source:http://www.hindu.com/2010/07/06/stories/2010070659310400.htm)

Act against illegal miners, Karnataka told

New Delhi, July 6, 2010: The Centre has given the Karnataka government one week to get its act together and stop allowing illegal mining in the forests around Bellary. A report on action taken against three companies must be submitted by July 10. In a letter to Chief Minister B.S. Yeddyurappa on July 3, Minister of State for Environment and Forests Jairam Ramesh said the continuation of mining in the region was “in complete violation of the Forest Advisory Committee resolution issued on May 10, 2010 which clearly and explicitly directed that such mining be stopped.” This is the Centre's second letter to Mr. Yeddyurappa on the issue in less than a week. On July 1, Mines Minister B.K. Handique wrote to him suggesting a CBI probe into the illegal mining. Earlier, Lokayukta Santosh Hegde's resignation over non-cooperation of the State government in fighting corruption put the spotlight on the nexus between the mining lobby and the government. The FAC's May 10 directive temporarily withdrew the forest clearance for three mine owners — SB Minerals, Trident Minerals and Veeyam Minerals — as they had carried out illegal extraction activities in the Sandur forest area. It asked the State to investigate and pursue the forest offence cases lodged against the companies and to fix responsibilities on erring officials. The State Forest Department was told to ensure that minerals were not transported. The government was given a one-month deadline to conduct a survey and use permanent boundary pillars to demarcate the area leased for mining from the area under the Forest Department. The FAC had asked the State to submit a detailed compliance report on all these issues before it could consider restoring the forest clearances for the three mines.

(Source:http://www.hindu.com/2010/07/06/stories/2010070661691300.htm)

Ore-laden trucks turn highways into 'accident zones'

Karwar, July 5, 2010: The heavy traffic of iron ore-laden trucks plying on the two national highways of Karwar district has taken lives and limbs of many people.

As many as 144 people were killed and 772 injured in 512 accidents caused by trucks carrying iron ore in the last four years. And the number of accidents is increasing consistently every year. Iron ore is exported from the district’s two ports — one in Karwar and another in Belekeri near Ankola — during the period between October and May. Till May-end this year, nearly 4,000 trucks carried the ore to these ports every day through NH 63 and NH 17. The Karwar port has infrastructure for both export and import of many goods, including iron ore. However, operations at Belekeri, a minor port, is restricted only to exporting iron ore. The export of iron ore from these ports began in 2003-04. With the demand for iron ore going up in the international market, the number of trucks plying on these highways has also increased gradually. These highways connect Karwar town to the rest of the state. As per records available with the office of the Superintendent of Police, Karwar, as many as 114 accidents were reported in 2007, and in 2008, it went up to 174. In 2009, the number of accidents came down to 111, mainly due to a dip in export business, and within the first four months of 2010, as many as 80 accidents have been reported. Statistics reveal that these accidents involved iron ore trucks. The highest number of accidents was reported in the limits of Ankola and Yellapura police stations. Additional SP of Karwar V G Gaonkar said in many cases the accidents were due to drunken driving.  “Sometimes drivers have to cover two to three trips in a week. They get frustrated because of continuous driving, which often results in accidents. There are also instances where cleaners drive trucks to relieve the drivers’ workload, and cause accidents,” he said. The public in Karwar are agitated over the increasing number of accidents. K R Desai, an advocate, said before the export activities began in the ports, he had no fear of travelling on the highways. But now, he is not sure of returning home safe after travelling in the “accident zone”.

(Source:http://www.deccanherald.com/content/79578/ore-laden-trucks-turn-highways.html)

3000 households to be hit by Posco project, says survey

Kolkata/ Bhubaneswar, July 05, 2010: Value of trees estimated at Rs 3.82 crore

The socio-economic survey on the Posco project has identified around 3000 households and 1493 betel vines in six affected villages of the project site. “The Posco survey was conducted in six out of seven villages covering around 3000 households. As many as 1493 betel vines have been identified in these villages. During the course of the survey, it was found that 952 people have been owning trees and the value of the trees has been estimated at Rs 3.82 crore”, said Narayan Jena, the Jagatsinghpur district collector. Admitting that the survey work at Dhinkia was incomplete, he said, “while the surveyors were allowed to enter Dhinkia, the villagers did not cooperate during the survey.” Jena's statement has come ahead of the meeting of the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) scheduled for July 6. The meet is expected to finalize the compensation package in consultation with the affected villagers and elected representatives. Bijay Patnaik, Principal Secretary to the Chief Minister, on Saturday, held a review meeting in the presence of Jena and Revenue Divisional Commissioner (Central Division) Pradipta K Mohapatra. The Posco survey report was submitted to the state government by the district administration of Jagatsinghpur on Thursday. It may be noted that in 2008, no socio-economic survey was conducted at Dhinkia and Patana villages due to protest of the villagers. Consequently, the district administration had submitted tentative figures of these two villages during that time. This time too, the villagers of Dhinkia protested the socio-economic survey as a result of which the number of beneficiaries could not be identified. The teams only surveyed betel vines, prawn gheris, and other crops on the government land in Dhinkia and Patana villages as 300 acres of private land was excluded at Dhinkia. The villagers affected by the Posco project have voiced their resentment over the recently concluded survey, alleging large scale irregularities and pointing out discrepancies in the present survey and the one conducted in 2008. According to the villagers, the present survey has excluded a large number of betel vines and prawn gheries as a result of which hundreds of affected people will be deprived of compensation. The United Action Committee (UAC), a purportedly pro-Posco outfit active in the Posco area has demanded a fresh survey on the Posco project. Sources said that the 2008 survey on the Posco project had mentioned about the existence of 1961 betel vines spread over an area of 394.39 acres at the project site which included 802 betel vines in Gobindpur village. But the recent survey talks of about 1527 betel vines which included 689 betel vines at Gobindpur, 436 at Nuagaon, 289 at Polang, 83 at Bayanalkanda, 17 at Bhuiyanpal and 4 at Noliasahi village. Not only betel vines, the number of prawn gheris, other trees have been reduced in the recent bringing sparking resentment among the affected villagers. Nearly 400 beneficiaries would be deprived of their compensation due to the deficiencies in the current survey. Many families of Gobindpur have alleged that their betel vines had been destroyed by the anti-Posco activists but these vines have not been included in the survey report.

Re-survey of Dhinkia likely

The Jagatsinghpur district administration plans to conduct re-survey at Dhinkia village in the Posco project site with police protection as the socio-economic survey in this village could not be completed due to villagers’ non-cooperation. Though Posco Pratirodh Sangram Samiti (PPSS), which is spearheading agitation against the project, had agreed to allow survey of its stronghold Dhinkia village in a deal with chief minister Naveen Patnaik, it later withdrew from its commitment and encouraged the villagers not to cooperate in the survey work. As a result, the survey teams had to return with incomplete data on movable and inmovable assets, including the betel vines and prawn greris, owned by the villagers, making it difficult on the part of the administration to estimate the number of project affected families in this village and the extent of compensation to be paid to them.In the survey report submitted to the government, the district administration has mentioned that out of eight villages in the Posco project area, survey has been completed in seven villages and no survey could be conducted at Dhinkia due to protest of villagers. Sources said, though the survey teams have enumerated the betel vines and prawn gheris operating in the area, they were unable to identify the owner/beneficiary of these properties as no villager came forward to claim ownership.

(Source:http://www.business-standard.com/india/news/3000-households-to-be-hit-by-posco-project-says-survey/400354/)

77 coal blocks off no-mining zones

New Delhi, July 5, 2010: Prompted by the Prime Minister’s Office, a high-level inter-ministerial panel has recommended that mining be allowed in as many as 77 coal blocks that were earlier made a no-no affair by the Environment Ministry. In a recent communication to the Prime Minister’s Office (PMO), the Coal Ministry said now only 126 blocks are part of the “no-go” area as against the earlier 203. “We are going ahead with this set of figures on the number of blocks and areas that have been arrived at after this joint study for again revising production availability and other related issues,” Coal Ministry adviser-projects P R Mandal said in a letter dated June 28, to PMO joint secretary Shatrughna Singh.  Of the total nine coalfields where 203 blocks, or 48 per cent of the its reserves, were declared in the no-go area by the Environment Ministry, the boundaries of mines in eight such coalfields have been tweaked to get 77 blocks out of the barred list, a senior government official said. The eight coalfields comprise Talcher (Orissa), the IB-Valley (Orissa), Mand-Raigarh (Chhattisgarh), Sohagpur (MP), the Wardha Valley (Maharashtra), Singrauli (Andhra), North Karanpura (Jharkhand), and West Bokaro (Jharkhand). The estimated coal reserves in these regions could not be ascertained, as they are yet to be explored. “According to the joint exercise by the Environment Ministry and Coal Ministry, based on the cluster or sub-cluster approach, there are still 126 blocks in the no-go zones and 449 blocks in the go-areas, and the boundaries of 27 blocks are yet to be modified,” the official said. Before the PMO intervention, 203 blocks were in the no-mining zones and 399 were in the go-areas. But the panel has not moved any block of the Hasdeo-Arand coal fields in Chhattisgarh, where a 4,000-mw ultra mega power project is proposed, to the mining belt from the prohibited zone. The PMO undertook a few joint meetings with the officials of the Coal and Environment ministries in the last two months, as the Environment Ministry put almost half of the regions of these nine coal fields in the “no-go” zone. The PMO intervention came after it was decided that such a ban could lead to the loss of revenue to the Exchequer and may also make the place a “breeding ground for Naxalism,” the PMO had said, according to the official. Last week Coal Minister Sriprakash Jaiswal had said an issue relating to restricting coal mining on environmental grounds was under the consideration of the PMO and would be resolved soon.

(Source:http://www.business-standard.com/india/news/77-coal-blocks-off-no-mining-zones/400379/)

Government loses Rs 1,800 crore annually to coal mafia

New Delhi, July 05, 2010: The central government suffers an annual loss of Rs 1,800 crore on account of thousands of coal mafia, which involve themselves in illegal mining across different states, a senior official said today. “Thousands of coal mafia (gangs) active in coal-producing belts, including that of Coal India Ltd (CIL), plunder about six million tonnes of coal annually. Going by current prices in the domestic market, this amounts to Rs 1,800 crore a year,” the official said. On an average, coal sells for nearly Rs 1,000 a tonne in the domestic market.  He said the mafia is primarily active in the main coal-producing states of Jharkhand, Orissa and Chhattisgarh — which are also affected by Maoist violence. Meanwhile, the Centre has asked states to form high-level committees to curb illegal mining. Coal Minister Sriprakash Jaiswal had stated last week that the Centre has asked states to form empowered committees for cracking down on the 10,000 mafia groups that operate in the country. At 267,000 million tonnes, India has the world’s largest coal reserves. The fossil fuel accounts for 55 per cent of the country’s energy needs.

(Source:http://www.business-standard.com/india/news/government-loses-rs-1800-crore-annually-to-coal-mafia/400380/)

States pitch for coal sector reforms

Mumbai, July 05, 2010: Several states have made a fresh appeal to the Centre to expedite coal sector reforms and streamline the allocation of coal blocks. Maharashtra has asked for a regulatory and pooling mechanism on a priority basis to moderate the rising prices of coal. “The Maharashtra government has argued that there is an urgent need to devise a mechanism to pool the costs of domestic and imported coal and moderate the effects of distance from coal mines through a regulatory mechanism so that there is no lop-sided increase in tariff in the state. Coal prices in Maharashtra had increased by 11 per cent in 2008-09 and 18 per cent in 2009-10, forcing a tariff rise of about 14 per cent in the last financial year,” a senior power ministry official told Business Standard.The official said Andhra Pradesh and Tamil Nadu have also pitched for coal sector reforms. Andhra Pradesh has argued that incremental measures to enhance coal production would not suffice, and thus, called for radical changes in the reforms. On the other hand, Tamil Nadu has called for a service tax waiver on coal.  Besides, many states have brought to the Centre’s notice that power companies have declared the grade of coal they receive as below par mostly, which has left serious financial implications on generation companies. Gujarat has argued that the current system of annual contracted capacity for coal supply, based on actual dispatches of the earlier years rather than on fuel supply agreement, was retrograde and does not allow for improvement in the plant load factor. The state government has asked the power ministry to facilitate allocation of adequate coal for existing power plants based on fuel supply agreements. Moreover, Orissa has cited that the allocation of coal blocks and coal linkages continue to the most hindering factor for delay in the implementation of generation projects. The state government has called for speedy allocation of coal blocks and linkages.

(Source:http://www.business-standard.com/india/news/states-pitch-for-coal-sector-reforms/400381/)

China studies neighbours' resources

Beijing, July 05, 2010: China is forging ahead with studies of resource reserves and acquisition possibilities in neighbouring countries, in part spurred by repeated failures to gain a say in iron ore pricing negotiations, state media reported. “Our research into overseas mineral resources includes iron ore, gold, copper and bauxite,” an unnamed official with the technology and international cooperation department under the Ministry of Land and Resources told the China Business Journal. The official acknowledged that the iron ore pricing power held by suppliers such as BHP Billiton, Rio Tinto and Vale had to some degree prompted the ministry’s latest research on overseas mining strategies, the newspaper report said.  The Ministry of Finance has also made estimates of the amount of the government funding needed to support relevant strategies, said the report. The research might have an impact on Beijing’s policy making, the official was quoted as saying. “But even if there are policies, they will not be disclosed publicly.” Chinese state-owned resource firms have said they are looking abroad for acquisitions of a wide range of commodities such as copper and oil, but their attempts to secure supplies have met with mixed success, despite having strong buying power thanks to Beijing’s $2.4 trillion foreign exchange reserves. China is expected to become increasingly dependent on imported crude oil in the next decade. It is already the world’s top buyer of copper, iron ore and soybeans, and since the start of last year it has been a net importer of coal, despite being the world’s top coal producer. China’s neighbours include Mongolia, Afghanistan and Myanmar, three countries in need of investment to develop their ample resources, as well as oil-rich Russia and Kazakhstan.

(Source:http://www.business-standard.com/india/news/china-studies-neighbours%5C-resources/400372/)

Illegal mining in Bagalkot

Bagalkot, July 5, 2010: Acting upon several complaints received with regard to illegal mining in Bagalkot district, the Goa range assistant controller of Indian Bureau of Mines Prabhakar Rao Hunagund visited various places in the taluk and discovered that illegal mining is rampant in the taluk.

Prabhakar Rao visited Hiremagi, Ameenagad, Ihole, Mullur, Ramathala, Huvinahalli and Sulebavi. He collected detailed information from the locals about illegal mining activities going on in the farm lands in the taluk.  Speaking to media representatives later, he said, obviously rampant illegal mining activities are going on in the district.  “All across Hunagund taluk farm lands are acquired from farmers for meagre amount and illegal mining activities are undertaken. After we identify who are involved in this , a report will be submitted to the Central government,” he said. He also expressed that the mining activities are having  causing harm to the adjacent farm lands.

Report

Prabhakar Rao said he was on a three-day visit to the district following a  complaint by an activist organisation. After detailed survey he would prepare a report and submit the same to the Central government. B M Patil of Rakshana Vedike told Deccan Herald that a complaint was lodged with the Central government regarding the illegal mining in the district, as “ repeated complaints to the chief minister, State Mines and Geology Department yielded no action.” Prabhakar Rao has not yet met State Mines and Geology Department deputy director Siddananjaiah.

(Source:http://www.deccanherald.com/content/79345/illegal-mining-bagalkot.html)

Karnataka CM seeks ban on iron ore exports

New Delhi, July 5, 2010: Seeking the Prime Minister's intervention to curb illegal mining, the Karnataka Chief Minister, Mr B. S. Yeddyurappa, has called for a ban on export of iron ore on Saturday. Mr Yeddyurappa has urged Dr Manmohan Singh to convene a meeting of all the Chief Ministers of mineral rich States to discuss and take a decision to ban such “unbridled exports”. In a letter to the PM, the Karnataka Chief Minister said, “there was an urgent need to put in place a comprehensive policy to ban export of iron ore and make it mandatory that iron ore and other such precious minerals are utilised for value addition within the country itself.” Illegal mining thrives in the Bellary district of Karnataka. Three ministers from Bellary in Mr Yeddyurappa's Cabinet – the Tourism Minister, Mr Janardhan Reddy, the Revenue Minister – Mr Karunakar Reddy, and the Health Minister, Mr Sriramulu, are facing allegations of illegal mining. Mr Yeddyurappa said that despite efforts by State governments, the problem of illegal mining persisted across the country. “Unless certain curbs are placed on exports of iron ore, undue exploitation and illegal mining are likely to continue”. “Despite our best efforts, the pressure for exporting iron ore continues in a big way. Such unbridled exports of minerals from our country will only lead to loss of precious natural resources,” he said.

(Source:http://www.thehindubusinessline.com/2010/07/05/stories/2010070551501300.htm)

Stop illegal mining, Jairam Ramesh tells B S Yeddyurappa

New Delhi, July 5, 2010: Karnataka government’s seriousness to take on the issue of illegal mining and corruption in the state is under test. After Lokayukta Justice Santosh Hegde withdrew his resignation, the pressure is on the state government to walk the talk. On the heels of Justice Hegde’s decision to reconsider his resignation, environment minister Jairam Ramesh in a letter to Karnataka chief minister B S Yeddyurappa drew attention to continued mining activities in the forest area of Sandur near Bellary. This is “in complete violation of the Forest Advisory Committee resolution of May 10, 2010, which clearly and explicitly directed that such mining be stopped,” Mr Ramesh said in his letter. The environment minister has asked the Karnataka chief minister to implement the course of action recommended by FAC to put an end to the illegal mining being undertaken by three mine owners — S B Minerals, Trident Minerals and Veeyam Minerals. Detailing the action that needs to be taken, Mr Ramesh has requested that these steps be implemented and an Action Taken Report be sent to the ministry by July 10. The Forest Advisory Committee had recommended that the state government should take up a survey and demarcate the area designated under the mining licence.

(Source:http://economictimes.indiatimes.com/news/politics/nation/Stop-illegal-mining-Jairam-Ramesh-tells-B-S-Yeddyurappa/articleshow/6129277.cms)

Tiger panel to review projects

Nagpur, July 5, 2010: The National Tiger Conservation Authority (NTCA), a statutory body under ministry of environment and forests (MoEF) monitoring all 39 tiger reserves in India, will examine 15 mining and power project proposals impacting tiger conservation mostly in Madhya Pradesh and Maharashtra.

A three-member committee consisting of Urmila Pingle, NTCA member, Kishor Rithe, wildlife expert, and G N Wankhede, head of zoology department of Amravati University, has been constituted on July 2. This panel will be different from the one constituted on May 14, under P K Sen, former director of ‘Project Tiger’, to examine 17 projects in MP, Maharashtra and Andhra Pradesh.

The list of 15 project proposals was sent to NTCA by the MoEF. The three-member panel will do site appraisals of coal mining and thermal power plants vis-à-vis the buffer and corridor areas of tiger reserves and study their impact on tiger conservation in the landscape. It is likely to start work immediately and submit report to the NTCA in a month. These projects are awaiting environmental clearance and much will depend on the report of the panel. Of the 15 proposals, nine are in Maharashtra including seven in Chandrapur, one in Andhra Pradesh and five in Madhya Pradesh.

The projects in Chandrapur district are in the landscape of Tadoba-Andhari Tiger Reserve (TATR). The seven proposals in Chanda include Brahmapuri coal block of Push Steels & Mining (P) Limited, Dhorwara and Telwasa opencast mine projects of WCL in Majri (Bhadrawati); Gouri Deep opencast coal mine project of WCL, expansion of Pandharpaoni coal washery (from 1.6 mtpa to 2.6 mtpa) of Aryan Coal Beneficiation India in Rajura, coal washery of Fuelco Washeries and diversion of 50.47 hectare forest land for Majra coal block of Gondwana Ispat Limited. Apart from these, two projects for bauxite mine and iron ore are situated in the buffer of Chandoli National Park in Kolhapur district.

Chandoli is part of the newly-formed Sahyadri Tiger Reserve. In Madhya Pradesh, of the five projects, three are in Umaria, in the landscape of Bandhavgarh Tiger Reserve. One in Andhra Pradesh is about constructing a memorial to late chief minister of Andhra Pradesh YSR Reddy in a wildlife sanctuary. Most of the 15 projects in Madhya Pradesh and Maharashtra are lilely to affect corridor between Bandhavgarh, Kanha, Kanha-Pench-Tadoba and Satpuda-Pench tiger reserves. These areas and its landscapes are estimated to have over 250 tigers or just over one-fifth the wild tiger population in India.

(Source:http://timesofindia.indiatimes.com/City/Nagpur/Tiger-panel-to-review-projects/articleshow/6129205.cms)

Govt sees coal reform blueprint in oil and gas

New Delhi, July 4, 2010: The government plans to steal a page from successful oil and gas exploration reforms to open its antiquated coal mining industry, raising hopes investors will be able to tap into a market where demand is expected to soar. Breaking the near monopoly of state-owned Coal India, the world's largest producer of thermal coal, by inviting domestic and foreign firms to invest -- like oil and gas reforms did in 1999 -- is seen by the government as a sure-fire way to revive the moribund coal industry. Companies like Rio Tinto, BHP Billiton and Xstrata Plc would be attracted by mostly thermal coal resources in India, estimated at 267.21 billion tonnes, the fourth largest in the world, analysts say, though they caution that many hurdles stand in the way. Getting it right will be key to continuing India's breakneck economic expansion, as booming power demand threatens to open a deficit of 100 million tonnes between coal demand and supply, opening opportunities for miners from Australia, Indonesia and South Africa. "The format is correct. Given that there is extensive private participation in oil and gas one can look at the same structure in coal also," said Shubhranshu Patnaik, executive director of PricewaterhouseCoopers in New Delhi. "But whether it is going to happen or not is an issue because open cast mining in coal, as followed in India, has greater political sensitivities on account of higher environmental and social impacts." A key part of reforms is to sell 10 percent of Coal India by September to fetch as much as $2.7 billion to help the company modernise and, like ONGC, work with leading firms in the industry. Domestic oil production had been forecast to decline before the oil and gas reforms. Instead over the last decade, India's oil production has risen by over 5 percent to 673,760 barrels per day in 2009/10, while gas output has risen by about 70 percent to 47.57 billion cubic metres. State-owned oil explorer ONGC took advantage of the reforms by selling 10 percent of its equity in 2004 to raise capital and now works with firms such as local arms of Britain's Cairn Plc, BG Group, BP Plc and India's Reliance Industries. The oil reforms also mean ONGC and and state-owned colleague Oil India are now paid international parity prices for domestic crude instead of much lower state-mandated rates. In contrast, thermal coal prices in India are still discounted by up to 60 percent versus international prices to keep power costs down. While premium coal may soon be priced at a 15 percent discount to an unspecified international benchmark, speed in ending coal pricing disparities is seen as crucial to attract companies. "Pricing reform is the most crucial. If inviting global companies you have to make sure they get marketing and pricing freedom," said Nitin Zamre, managing director of consultant ICF International.

Surging Demand and Roadblocks

Thermal power plants, which accounted for more than 80 percent of India's 771.17 billion kilowatt-hour output last year, need 595 million tonnes of coal a year by 2012 as India adds more power capacity to close a 13 percent deficit in supplies. But Coal India, which produces 87 percent of the country's coal, and private captive mines, are only able to supply 459 million tonnes, according to Karvy Stockbroking in Hyderabad, forcing the country to import over 100 million tonnes a year in the next two years. The country is working to expand its ports to handle the load, which would represent a 43 percent increase over 2009/10 imports. Coal India forecasts demand reaching 1.13 billion tonnes a year between 2012 and 2017, with a supply deficit of about 86 million tonnes a year unless it can expand operations and have better access to rail and road transport. Many commentators have suggested the Maoist threat is the biggest obstacle to mining reform in India, something the government has also tried to address under a proposed new mining law to share a quarter of profits with local communities. India's coal minister S.P. Jaiswal said recently that lawlessness in key mineral-rich states was curbing the true potential of coal mining, keeping output down by 25 percent. "The idea is to create a win-win situation by enabling miners to mine and local people to genuinely benefit," S. Vijay Kumar, special secretary in the mines ministry, told Reuters.

(Source:http://in.reuters.com/article/idINIndia-49802320100704)

Centre for action against ‘errant’ mining firms

New Delhi, July 4, 2010: The Centre has asked Karnataka government to stop mining activities of three companies in Bellary district, where they are allegedly flouting forest rules.

In his July 3 letter to State Chief Minister B S Yeddyurappa, Union Minister of State for Environment and Forests, Jairam Ramesh, said the three mining companies–S B Minerals, Trident Minerals and Veeyam Private Limited–operate in the forest areas in Sandur near Bellary, violating rules. He said the Forest Advisory Committee (FAC), a statutory committee of the Centre that monitors forest violations by mining companies, had recommended that the State government should immediately undertake a survey to demarcate mining areas from those falling under forest department in Sandur. Quoting the FAC, the Minister said all the three companies should erect heavy boundary pillars and provide a mandatory safety zone of 7.5 metres width around their mining areas.

Safety zone 

Survey and demarcation including erection of pillars should be completed within a period of one month and trees should be planted in the safety zone during rainy season, the Minister said in the letter. “Till the work of demarcation and survey are completed, the forest clearance of the three mines should be withdrawn temporarily. “During that period, the State Forest Department should ensure that no transportation of minerals is allowed,” said the letter. Ramesh also asked the State government to register forest offence cases against the companies as well as the erring officials who were responsible for allowing the companies to violate norms. He urged the chief minister to submit an action taken report on this issue by July 10, 2010. Recent survey conducted by Indian Bureau of Mines (IBM), a mining regulatory agency under the Union Ministry of Mines, has found that all 60 mining companies involved in iron-ore extracting activities in Bellary have either flouted mining norms or engaged in illegal mining activities.

(Source:http://www.deccanherald.com/content/79209/centre-action-against-errant-mining.html)

Sustainable Mining: Need for a Holistic and integrated approach says Santha Sheela Nair

New Delhi, July 4, 2010: There was a strong need for holistic and integrated approach, which should be taken towards better Water Management and Sustainable Environment” stressed Mrs Santha Sheela Nair, Secretary, Ministry of Mines, at the inaugural session of the National Seminar on Water Resource Management & Mining Sector in India, organized by CII here today.

Setting the tone of the deliberations Ms Nair particularly emphasized on the need for sustainable mining. She focused on 3 E’s i.e. Excavation, Economics and Environment which will ensure minimum damage to the environment and maximum acceptance of local population. She said that the water-related issues need to be addressed with the full involvement of the local communities and taking into account specific local conditions and concerns. Highlighting exemplary work of two organizations in Rajasthan and Gujarat, she said that we need to set benchmark for mining activity and mining should be done with responsibility and with sensibility to local population while fulfilling the need of the country.

Delivering the keynote address Shri B M Jha, Chairman, Central Ground Water Board, and Ministry of Water Resources highlighted the need for effective water management to ensure the long term sustainability for food security of our nation. He said that the ever increasing demand  for water to satisfy the requirements of a rapidly growing population, combined with the anticipated and yet uncertain impacts of climate change has made water management one of the most formidable challenges of 21st Century.

Highlighting the regulatory framework i.e. Environmental Impact Assessment and initiatives taken by the Ministry for its implementation, Dr S K Aggarwal, Director – Mining, Ministry of Environment and Forests, talked about recent developments in EIA like decentralization of the process, restructuring of the Public consultation system, environmental clearance being mandatory, accreditation of consultants, post project monitoring etc. Further he said that no go areas like dense forests, large catchments, biodiversities of higher areas etc should be identified in advance so that no exploration takes place in these particular areas.

Dr Sudhir Kapur, Member CII National Council said that compatibility between environmental protection and mine profitability is a must and integrated mine planning is the easy solution to this.

Further he stated that a proactive approach to mine water management will not only improve environmental compliance but will also reduce cost of water management during mining operations. The need of the hour is to manage water balance and manage water quality. Some of the key persons who addressed the summit were Dr R C Jhamtani, Prof G S Roonwal, Visiting Professor, Inter University Accelerator Centre, Mr. Navaneet Kumar Nuwal, Vice President (Mines), Ambuja Cement, Mr. Gautam Kumar Chatterjee,  Sr. Manager (Engg. & Process), TATA Steel , Mr D U Vyas, General Manager (Technical), Gujarat Mineral Development Corporation, Dr D V Subba Rao, Deputy Chief- Hydrogeologist, Centarl Mine Planning & Design Institute Limited and many more. This seminar was planned with the objective of identifying current and emerging water management issues due to impact of mining activities and suggests measures for sustainable water management in the mining areas. It provided a platform for an interaction amongst the major players in the sector and different stakeholder groups. The Seminar saw participants from Government, public and private-sector organisations, Thought Leaders, NGO’s and Academicians.

(Source: http://www.orissadiary.com/ShowBussinessNews.asp?id=19563)

MoEF, coalmin spar over block demarcation

Kolkata, July 3, 2010: The coal ministry now wants the ministry of environment and forests (MoEF) to change its demarcation of ‘go’ and ‘no-go’ areas, since 40 of the 219 captive blocks allotted this year come under no–go areas. Earlier, the coal ministry had successfully persuaded the MoEF to demarcate go and no-go areas for speedy forest and environment clearances. Minister of state for coal Sriprakash Jaiswal said his ministry had, in March this year, allotted 219 coal blocks for captive use, 40 of which have fallen under no-go areas after the environment ministry demarcated go and no-go areas. The coal ministry and Coal India Ltd (CIL) together persuaded the environment ministry to demarcate go and no-go areas to ensure faster forest and environment clearances. Earlier, CIL chairman Partha S Bhattacharyya said 89 new mining projects were being delayed due to the time taken for giving forest and environment clearances. He demanded that coal mining projects should ideally get forest and environment clearances within 90 days of application.The environment ministry made such demarcations at the end of 2009 the but coal ministry discovered that the captive block allocations it had made in March 2010 were also within the limits of no-go areas in Orissa and Chattisgarh. Jaiswal said the 40 blocks have reserves of 600 million tonne, which makes nearly 40% of the total reserves in 219 coal blocks.

(Source:http://www.financialexpress.com/news/moef-coalmin-spar-over-block-demarcation/641511/)

No entry for pvt cos in 40 coal blocks in forest areas

Kolkata, July 3, 2010: The ministry of environment and forests has declared that 40 coal blocks in forest areas will not be accessible to private parties even though these have been allocated to them. This means MoEF will not allow mining in these blocks. The coal ministry is also looking at enhancing prices of coal sold by Coal India to companies with captive coal blocks. They will have to pay a premium of 40% over notified prices if these entities continue to procure coal from CIL three years after they have been allotted blocks.  “As many as 219 coal blocks were allocated to private players. Out of this, as many as 40 were recently declared ‘no go’ by the ministry of environment and forest. These blocks would constitute about 48% of the coal bearing areas under forest land. We are currently in dialog with the MoEF to solve the issue. A couple of meetings were already held,” said union coal minister Sriprakash Jaiswal.  The minister was talking to reporters after the 82nd Annual General Meeting of the Indian Chamber of Commerce held in Kolkata on Friday. CIL chairman Partha S Bhattacharyya said: “There are about 600 million tonnes of coal reserves in these 219 mines and the 40 mines that have been made in-accessible contains bulk of the coal.”  On enhancing prices of coal sold to entities with captive blocks Mr Jaiswal said: “Companies that keep on procuring coal from CIL even three years after they have been allotted blocks, will need to pay a premium of 40% over notified prices. This, we intend to do, in order to bring a parity between domestic prices and international prices for these companies.” Digressing to formation of a Coal Regulator Mr Jaiswal said: “The Coal Regulator is likely to be in place within the next three-four months. The proposal will be placed at the Monsoon session of the Parliament. The Regulator will conserve resources in the coal sector as well as protect interests of consumers and producers.” Earlier in the day, the minister said that the government intends to invest Rs 400 crore during 2010-11 (Rs 260 crore) for developing transport infrastructure in coalfields, regional exploration, detailed drilling and environment measures as well as a subsidence control. Moreover, Coal India and Singareni Collieries Company will also invest Rs 3,800 crore and Rs 1,335 crore, respectively, during 2010-11 for increasing production. Nevertheless, Mr Jaiswal said that the government has recognised the need for structural changes in coal linkages to invite domestic and private investment to increase output. Later in the day he said: “The government is also looking at enhancing prices of coal.

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

Review soon of curbs on coal mining in forest areas

Kolkata, July 2, 2010: The Union Ministry of Environment and Forests (MoEF) may take a re-look at the restrictions imposed on coal mining in forest areas shortly. The Ministry had earlier imposed a complete ban on mining in nearly half of the coal bearing (forest) areas in nine coalfields. “We (Coal Ministry) will meet the Environment Ministry next week to resolve the issue. We are expecting a decision in a fortnight,” the Union Coal Minister, Mr Sriprakash Jaiswal, told newspersons here today. He was in the city in connection with the AGM of the Indian Chamber of Commerce. Efforts to contact the Union Environment Minister, Mr Jairam Ramesh, were unsuccessful. While Mr Jaiswal did not elaborate, sources told Business Line that the issue had drawn the attention of the Prime Minister and the MoEF was requested to review the weighted and gross forest cover benchmarks used in restricting the mining activity. It is learnt that the MoEF had imposed a ban on mining in areas having greater than 10 per cent weighted forest cover and greater than 25 per cent gross forest cover.

Coal India hit

According to sources, the MoEF's decision had restricted mining in approximately 200 blocks already allotted by the Coal Ministry to captive and commercial coal miners, leading to the loss of hundreds of million tonnes of prospective production each year. The restriction has particularly hit the country's largest coal producer, Coal India Ltd, which holds mining rights in a lion's share of the impacted coal blocks. Under pressure from the Union Power Ministry and the Planning Commission to step up domestic coal production, which has steadily fallen behind demand growth, the Coal Ministry recently knocked on the doors of the Prime Minister to resolve the issue.

Power sector demand

Sources said in its representation, the Coal Ministry had argued that such restrictions would limit the prospects for enhancing coal production in the country, currently growing at the rate of seven per cent as against a demand growth of nine per cent primarily due to capacity addition in the power generation sector. With nearly half of the country's villages yet to be electrified, India has a poor track record in per capita power consumption even in comparison to many developing nations. In a bid to reverse the trend, the country planned to enhance power generation capacity by 50 per cent (78,000 MW) during 2007-12. Though the implementation was way short of the target, India had witnessed the highest ever rate of annual addition in generation capacities during the last few years leading to a sharp rise in demand. As the target for the next Plan is to add one lakh MW , the demand for coal is set to rise at a faster rate.

(Source:http://www.thehindubusinessline.com/2010/07/03/stories/2010070351960400.htm)

Vedanta faces bauxite mining setback in India

Vedanta faces another wait for approvals to go ahead with its proposed bauxite mining project in India's Orissa state which it wants to provide feed for its Lanjigarh alumina refinery.

Mumbai, July 2, 2010: Indian global diversified miner Vedanta Resources Plc's bauxite mining project in the Indian state of Orissa has come under fire, yet again. Plans by the London-listed firm to mine bauxite in Niyamgiri to feed its alumina refinery in Lanjigarh area of eastern Orissa's Kalahandi district could be irrevocably delayed, given the strong stance of the Indian government's Union Ministry of Environment and Forests. The ministry has set up a new committee to investigate the alleged violation of forest rights of tribal people living there, as well as the impact on wildlife. Moreover, with the Indian government set to contemplate a new law for mines, which will ensure that local people get to share in the mining profits, Vedanta's mining project, already behind schedule for the last two years, could get further delayed. The meeting to consider the new law, scheduled for July 22, is set to discuss the issue, and contemplate a 26% shareholding for those who lose their land for the sake of mining. The new law will also enable the government with more powers to curb illegal mining. However, since the proposed law will have to go through several processes before it passes muster and becomes a bill - it has to go through the Cabinet, and get the approval of the Parliamentary Committee - the delay could put a spanner in the works for Vedanta. Not a first by a long shot for the $10 billion mining giant, for protests from tribal people traditionally inhabiting mining areas in Jharkhand, Chhattisgarh and Orissa, have stalled projects in the past including big-ticket investments like ArcelorMittal, Posco and Vedanta's steel and mining projects. The FTSE 100 company Vedanta is majority-owned by billionaire Anil Agarwal. The metals conglomerate has raised $2.5 billion to fund its bauxite mining in Niyamgiri and to expand its Lanjigarh alumina refinery, from one million tons a year to five million tons over the next three to four years. Interestingly, India's Prime Minister has reportedly intervened in the project, which is being touted as one of the world's most controversial mines. The office of the Prime Minister Dr Manmohan Singh has reportedly written to the ministry urging it to clear Vedanta's project. Earlier, a team of experts, also commissioned by the Environment Ministry, had warned that the Niyamgiri mine could ``lead to the destruction of the Dongria Kondh (a local tribe).'' Last year, the UK government had condemned Vedanta, declaring that it 'did not respect the rights of the Dongria Kondh.' The Church of England, the Norwegian government and the Joseph Rowntree Charitable Trust were said to be among several high-profile investors that reportedly sold their Vedanta shares over human rights concerns. A global campaign against the project has also been raising its pitch for the past one year, even as activists have warned that it will rob some of India's most vulnerable people of their ancestral home and traditions. The company has refuted the allegations outright. The chief executive of the mining group told a newswire agency recently, that the opponents of the project are ``misinformed and misguided''. Vedanta has said the mine area, estimated to contain 78 million tonnes of bauxite, will not violate the rights of local tribes. The company has also said that it has invested $22 million in development in the region, for providing nutrition to children and infrastructure, and that once mining begins, will invest a further 5% of profits in community-based projects every year. The company has faced several roadblocks already. Though India's Supreme Court approved the project in August 2008, the firm has since been waiting for an environmental clearance. The new committee has been given 30 days to ascertain the impact of the project on the livelihood, culture and material welfare of the Dongria Kondhs, a notified primitive tribal group, and on the local wildlife and biodiversity. With the Environment Ministry set to announce its decision, around the time of Vedanta's Annual General Meeting in London on July 28, this one is set to be another waiting game.

(Source:http://www.mineweb.co.za/mineweb/view/mineweb/en/page36?oid=107365&sn=Detail&pid=102055)

Moily not for ban on mineral export

Bangalore, July 2, 2010: Union Law Minister M Veerappa Moily on Friday ruled out imposing a ban on export of minerals.

Speaking to reporters on the sidelines of diamond jubilee celebrations of KASSIA, he said export of minerals cannot be banned, but it can be regulated. Moily’s reaction has come at a time when Chief Minister  Yeddyurappa has been advocating ban on the export.  He had been asking the Opposition parties in the State on taking a delegation to Delhi and urging the Centre to take steps in this regard. However, he said, the Centre will introduce a mineral regulation Bill in the next session of Parliament, seeking to regulate exploitation of mineral resources and encourage value addition in the country. The draft Bill will be placed before the coming cabinet meeting, he added. “It is a revolutionary Bill. If passed in Parliament, it will put a check on illegal export of minerals, especially iron ore from the country and ensure availability of minerals for the domestic use,” he stated. On strengthening the institution of Lokayukta, Moily reiterated that the Centre is planning to give constitutional powers to the Lokayukta to effectively fight corruption. In order to weed out the menace of corruption, the institution of Lokayukta should be allowed to function as an autonomous body. It is one of the recommendations of II Administrative Reforms Commission report, he added.

(Source:http://www.deccanherald.com/content/78920/moily-not-ban-mineral-export.html)

CM’s flip-flop on mining draws flak

Bangalore, July 2, 2010: The Congress members on Friday took Chief Minister Yeddyurappa to task for his statements on banning iron ore export as the State has no such authority.

They questioned the rationale behind taking a delegation to the Prime Minister to ban the export of iron ore when the Chief Minister himself has not been able to check rampant illegal mining and transport in his own State. Continuing the discussion on the Belekeri port issue, Leader of the Opposition Siddaramaiah criticised the Chief Minister for his flip-flops on the issue. He said, Yeddyurappa showed his bravado in the Council by stating that he was ready to take the matter to the Prime Minister. Earlier, Yeddyurappa had declared that forest wealth in the State was not looted; but in the Council, he had agreed that the looting has been going on for many years. “Which was to be believed? The Chief Minister is aware that the illegal mining is happening. Why did he then keep quiet for the past two years” he asked. T B Jayachandra (Congress) said the Centre had written to the State directing the Government to hand over the issue to the CBI for probe. He asked the Chief Minister to present both the Centre’s letters and the Government’s reply before the House.  Trying to turn the tables on the Congress, the Chief Minister cited the records stating that in 2004-05, when Dharam Singh was the Chief Minister and Siddaramaiah was his deputy, 52,39,518 MT of ore was illegally transported. So, the illegal export has continued unabated over several years, he added. He reiterated that the Government is willing to go in for a total ban on export of ore and suggested that an all-party delegation from the State meet Prime Minister Manmohan Singh to get the Centre’s approval to implement the move. The State is not dependent on the export of ore, he said adding that all those who have indulged in illegal mining need to be punished. “We will initiate an inquiry and whoever found guilty of looting the State’s mineral resources will be punished,” he said. Tourism Minister Janardhana Reddy said criminal cases had been booked against 58 mining companies which the Lokayukta report had indicated to be involved in illegal mining activities in Bellary. The companies had moved courts which had told them not to take up mining in the disputed areas. Siddaramaiah challenged the Chief Minister to order a CBI inquiry into the illegal mining since 2004. “I am ready to go to jail if found guilty; you too should be ready for the same if proven guilty,” he challenged Yeddyurappa. However, the Chief Minister kept mum. In the Council, Congress MLC K C Kondaiah said the Government should set a condition to give mining permit to the applicants only after they set up the plant. 

(Source:http://www.deccanherald.com/content/78912/cms-flip-flop-mining-draws.html)

Yeddyurappa wants CMs meet to discuss iron ore export ban

Bangalore, July 2, 2010: Under attack over illegal mining, Chief Minister B S Yeddyurappa on Friday admitted that ''loot'' of iron ore had been going on in Karnataka since 2003-04, and asked Prime Minister Manmohan Singh to convene a meeting of chief ministers to consider a ban on iron ore exports.

"I will write a letter to the Prime Minister tomorrow itself requesting him to convene a meeting of all chief ministers. There is a need to put an end to the menace of loot of iron ore," Yeddyurappa told the state assembly. He was intervening during a debate on the circumstances that forced Lokayukta Santosh Hegde to quit his post recently. Hegde had accused the BJP government of not acting on his report on illegal mining and being "indifferent" towards corruption. Yeddyurappa, who offered to place all the records over mining in the House, said during 2004-05 when the Congress-JDS coalition government ruled, records showed 64,685 lakh tons of iron ore were mined while the actual export was 1,16,91,183 tons indicating a surplus of 52.39 lakh tons. Going into a damage-control mode, ruling BJP sent a delegation of its state senior leaders to Santosh Hegde to prevail upon him to reconsider his decision to quit, but he said 'no' to them. The delegation, including BJP's state unit President K S Eswarappa, Home Minister V S Acharya and Law Minister S Suresh Kumar, offered to accept his suggestions to strengthen the Lokayukta, besides ordering an inquiry into the disappearance of iron ore stocks from the Belekere port in Karwar. Eswarappa claimed Hegde told the delegation that he would "pay attention to reconsidering the resignation". However, Hegde said he initially said "no" but when the delegation persisted he told them that he would reconsider his decision only "out of politeness" which in other words meant "no". The Government's damage control act came in the wake of mounting pressure from various quarters on Hegde to continue in his post and also his crusade against corruption. Meanwhile, Union Law Minister M Veerappa Moily said the Government would bring in an amendment to the Minerals Regulation Act to check illegal export of iron ore to ensure that mineral resources were not plundered. The Bill, which was ready, is expected to be introduced in the coming monsoon session of Parliament, he told reporters. BJP's attempt to mollify Hegde and persuade him to withdraw his resignation comes as a surprise as Yeddyurappa had stated on June 24 that he would not make any such request and embarrass the former Supreme Court judge. Sources close to the chief minister said steps would be taken to fill up the vacant Upa Lokayukta post next week. The state government began the exercise to appoint Upa Lokayukta, the post of which has remained vacant for more than six months after the term of Patri Basanagouda ended. Yeddyurappa told reporters at Mysore that it was also the government's wish that Hegde should continue. Asked whether he would also meet Hegde to plead for his continuance, he said a BJP delegation had met the Lokayukta on Friday. "I will gather information on the outcome of talks it had with Hegde. I will announce my decision on the floor of the house on Monday," he said. Meanwhile,the Congress on Friday demanded that the government seek a CBI probe into illegal mining and illegal export of iron ore in the state. "All those involved in these practice should go to jail. If the Chief Minister has guts, let him seek CBI probe into it," Congress leader Siddaramaiah said.

http://www.deccanherald.com/content/78859/yeddyurappa-wants-cms-meet-discuss.html

K'Taka puts ArcelorMittal project on fast track

Bangalore, July 1, 2010: ArcelorMittal, the world’s largest steel maker, is likely to be the first among 53 steel companies that signed a memorandum of understanding (MoU) with the state government a month ago to secure captive iron ore mines in Karnataka. If everything goes as planned by the government, the company could get a mining licence for 521 acres of mines in the ore-rich Ramanadurga region of Bellary district. The state government, which recently signed an MoU with ArcelorMittal for its proposed 6 million tonne per annum (MTPA) steel plant at Kuditini in Bellary district, has put on fast track the process to issue necessary approvals to the company. Arcelor Mittal had stated that this capacity will envisage an investment of Rs 30,000 crore. In less than a month after signing the MoU with the steel giant, the B S Yeddyurappa government has recommended to the central government for according approval for allotment of captive iron ore mines spread over 521 acres in Ramanadurga. This comes ahead of existing applicants for iron ore mines like Jindal Steel, NMDC, KIOCL, among others. Jindal Steel, which produces 7 MTPA of steel at Toranagal in Bellary district has been waiting for allotment of captive mines for the past decade. Its expansion to 16 MTPA will largely depend on allotment of captive mines. The state government had signed an MoU with L N Mittal, chairman of ArcelorMittal on June 3, during the global investors’ meet for its steel plant and a 750-Mw captive power plant. Confirming the development, State Industries Minister Murugesh R Nirani told Business Standard: “The chief minister’s office has sent a recommendation to the Centre for allotment of captive iron ore mines in Ramanadurga region. The exact quantity of iron ore that will be available in this area is yet to be ascertained.” In reply to an email query from this paper, an official spokesperson from ArcelorMittal did not comment on the exact extent of iron ore mines required for them. As regard to water, the company said it requires around 40 million gallons per day of water for its steel plant. As a first step towards facilitating the company to set up its plant, the government had issued final notification for acquisition of 4,500 acres at Kuditini in Bellary district. ArcelorMittal India has already deposited Rs 268 crore with the Karnataka Industrial Area Development Board for acquisition of land. In November last year, a high-level team led by ArcelorMittal group board member Sudhir Maheshwari and Executive Vice-President Vijay Kumar Bhatnagar had held discussions with the chief minister, Nirani, Industries Secretary V P Baligar and other officials to discuss the project proposals. The team had also visited three locations. Subsequently, the state high-level clearance committee had given an in-principle clearance in January. In addition to an MoU with ArcelorMittal, the Karnataka government had signed MoUs with 52 other steel companies for a total investment of Rs 2.56 lakh crore, including Posco of South Korea.

(Source:http://www.business-standard.com/india/news/k%5Ctaka-puts-arcelormittal-projectfast-track/399978/)

New Aussie govt brings cheer to Indian miners

Kolkata/Mumbai, July 01, 2010: About a fortnight ago, the International Coal Ventures Ltd (ICVL) board approved a binding bid for a deposit having estimated reserves of 220 million tonnes in Queensland, Australia. ICVL is a special purpose vehicle (SPV) of five giant state-owned undertakings: Steel Authority of India, Coal India, NMDC, NTPC and Rashtriya Ispat Nigam. Since then, there has been some good news. A new government has taken office in Australia, which has said it will review its predecessor’s controversial proposal for a 40 per cent super-profit tax on mining revenues. The Indian bid had factored this proposal while approving it. Indian miners, with limited resources in the home country, are breathing easier. “It raises the attractiveness of Australia for sure,” said Rana Som, chairman and managing director of NMDC, the country’s largest iron ore producer.  NMDC also happens to be part of a consortium that has pitched for a 70 per cent stake in Australian ore producer Atlas Iron’s Ridley project. The firm, which happens to be the sole Indian bidder in the fray, would have a 15 per cent stake in the project, including sweat equity of five per cent. “The binding bid is yet to be submitted,” said Som. With the threat of a super-profit tax diminishing, valuations may have to be revisited. “Valuation is only a part,” says Som, but adds it would certainly make more assets viable. India has an estimated 23.59 billion tonnes of iron ore, of which only 6.311 billion tonnes is proven. For coking coal, the country is largely dependent on imports. India has only 4.6 billion tonnes of proven reserves, of inferior quality.

Aussie pull

Quite a few Indian companies have an established presence in Australia, either through joint ventures or on their own. Some of them are Tata Steel, Bhushan Steel, Gujarat NRE Coke, Tata Power and Sterlite. Many more are scouting. Of those, state-owned Coal India Ltd (CIL) has a sizable war chest of Rs 6,000 crore for foreign acquisitions this financial year and is examining coal assets, including those in Australia, to bridge the supply-demand gap in India. “If the (super profit) tax is not there, then it improves the valuation of Australian coal assets compared to those in other countries. CIL is carrying out due diligence for assets there already,” a source said. RPG group Vice-Chairman Sanjiv Goenka indicated the mining sector in Australia would remain attractive in the absence of the proposed profit tax. The RPG Group has had to abort a number of recent acquisition attempts in Indonesia, after stated reserves of the mines on offer turned out to be much lower than actual reserves. India is already the world’s fastest growing coal importer and is expected to import 72 million tonnes of the fuel in 2011, on the back of substantial augmentation of power generation capacities nationwide that will stretch the demand-supply mismatch further. Australia’s attractiveness extends beyond coal and iron ore. Hindalco has a 15 per cent deficit in copper concentrate and has intensified its mine hunt. Hindalco’s managing director, Debu Bhattacharya, has one more option. “We are evaluating now if we can reopen the Mount Gordon mines in the east coast of Australia.”

(Source:http://www.business-standard.com/india/news/new-aussie-govt-brings-cheer-to-indian-miners/399967/)

Jairam rushes into no-go areas of coal, power

Categorising coalfields will cause shortfall: Jaiswal to Jairam

New Delhi, July 1, 2010: Categorisation of coalfields into ‘go’ and ‘no-go’ areas by the Ministry of Environment and Forests (MoEF) would result in a massive 600 million tonne annual shortfall in production, wrote coal minister Sriprakash Jaiswal in a recent letter to environment minister Jairam Ramesh.

“The preliminary categorisation in A and B categories by MoEF indicates that 48 per cent area where coal mining cannot be undertaken will result in a production curtailment of around 600 MTPA,” he wrote. A category comprises ‘no-go’ areas while the ‘go’ areas, where mining can take place, fall in B category.  Noting that this scenario was based on a study of only nine out of 64 coalfields, Jaiswal argued that domestic production, which was expected to reach 1,000 MTPA in the next decade, “will be pegged down to only 400 MTPA. The anticipated demand for meeting the needs of India’s growing economy is 1,500 MTPA .” Expressing his ministry’s serious concern on the huge delays in securing environmental clearance being faced by coal projects, Jaiswal said while the stipulated guidelines mandate that forestry clearances ought to be given within 150 days, in actual practice, the time taken has varied anywhere between three and six years. “I am sure you would have often heard that for getting any forestry approval, the proposal has to move across 34 tables and if a query is raised at any point in this chain, the proposal has again to start all over from the lowest rung causing unwarranted delays. This process definitely demands a re-visit for streamlining the procedures,” wrote the minister. He said the MoEF as well as the state forest departments were aware that large tracts of notified forest areas were actually denuded or have sparse vegetation, but considerable time was being taken to obtain clearances there also. “One may argue that this delay is not on account of MoEF, New Delhi, but nonetheless the fact remains that inordinate delays do occur in getting the forest clearances,” said Jaiswal. Recently the Prime Minister’s Office had shown displeasure at Ramesh’s definition of ‘no-go’ areas for coal mining and warned that these areas could turn out to be breeding grounds for Naxalism. The PMO pointed out that the ministry approach was likely to deprive the Central and state exchequers of several thousand crores. At a May 21 meeting, presided over by T K A Nair, principal secretary to the Prime Minister, officials of the MoEF were told that in nine coalfields, where superimposition of coal-bearing areas and forest areas had been done, it has emerged that 48 per cent of the area fell in “no go” category “which is not agreeable”.

Teams to survey areas where power plants suffer coal shortages

Stung by outspoken environment minister Jairam Ramesh’s stand on ‘no-go’ areas for coal mining, the power ministry has deputed three inter-ministerial teams to visit power plants suffering from coal shortages in those regions. The teams have been charged with gathering first-hand information on land availability and project proximity to forestation in eight key coal states before reporting to the Prime Minister’s Office, which drubbed Ramesh for his broad mapping.  “There is a concern that these areas [‘no-go’ areas] have not been based on a great deal of fact, so it makes sense for deeper studies to be carried out before a definite conclusion can be made,” said Shuahranshu Patnaik, executive director at Pricewaterhouse Coppers. “With certain segments identified for UMPPs [ultra mega power projects] for these areas, it looks like an ad hoc policy in need of further investigation.” Teams will visit plants located in Jharkhand and Orissa near the North Karanpura coalfields; Chhatisgarh and Madhya Pradesh near Mand Raigarh, Hasdeo Arand and Singrauli coal fields; and Maharashtra, Gujarat and Rajasthan near Wardha, Talcher and Hasdeo Arand coalfields. “We don't have all the facts from (the ministry of) environment and forests,” power secretary P Umashankar told The Indian Express. “We need to know the status of our power projects in the area, the land availability, the environmental conditions and the exact location of our projects in proximity to the ‘no-go’ areas.” The Hasdeo Arand coal block had been allocated to now twice-delayed 4,000 MW UMPP in Chhattisgarh.

The project would have been the fifth of the power ministry’s pet projects to be tendered. Request for qualification has now been pushed back to August 5. Up to 15,000 MW of power projects would use coal from Hasdeo Arand, if the block received MOEF clearance.  Among the blocks not on either of the team’s list is Bundu Coal Block in the North Karanpura Coalfields in Jharkhand. Bundu’s clearance sits before the forest clearance division on the issue of ‘go-and-no-go areas’, the sole reference to MoEFs practical application of the policy, according to its list of projects awaiting environmental clearance.  Another 25 coal projects are awaiting environmental clearance. “These decisions [based on the ‘no-go’ policy] could cause a major hiccup in power supply and if India is to meet its power targets, we need coal,” said an official with the Central Electricity Authority.

(Source:http://www.indianexpress.com/news/jairam-rushes-into-nogo-areas-of-coal-power/640804/0)

MPT for mechanised terminal to curb coal dust pollution

Vasco, July 1, 2010: In another four years, coal dust pollution from the manually handled Berths No 10 and 11 located towards Vasco city could be a thing of past, as Berth No 10 will make way for logistic cargo handling and while Berth No 11 will be developed into a fully mechanised manner as per the Goa State Pollution Control Board norms. Speaking to Herald, MPT Chairman Praveen Agarwal said coal dust pollution would come to a grinding halt after development of mechanised coal terminal at Berth No 11, which would be in a covered dome, and the conveyor belt as proposed terminal is designed by US-base consultant.

Development of new coal terminal at an estimated cost of Rs 425 crore at Berth No 11 on Public Private Partnership (PPP) basis will accommodate the present manual handling coal and coke from Berths No 10 and 11. The manual handling of coal on these berths had generated a lot of heat in the past for violating pollution control norms. However, it will be a respite to the people of port town. Development of Berth No 11 on PPP basis would be the third coal terminal in Mormugao Port. In 2005, ABG had developed mechanised coal handling facility at Berth No 5A and 6A, while Berth No 7 would be developed by M/s Adani Port as concession agreement has already been signed with the port and berth would in operation by March 2013. “With modern facility, not a speck of coal dust will arise during the operation, while retrieval of coal from ship would take place in a covered conveyor belt with bucket unloading and the entire coal stack would not be exposed to rain or wind,” said Agarwal. “The entire mechanised coal terminal at Berth No 11 would be painted in white to inspire the confidence of people to themselves to judge the coal dust pollution level,” informed Agarwal. “With development of coal terminal on approximate area of 75,000 sq mtrs, the present handling capacity would be enhance from 1.5 tonnes to 4 million tonnes to cater the need of power and steel industries in the region,” added Agarwal. “The coal will be dispatched from rail and road and the project has been taken up as per the directive of Goa State Pollution Control Board and High Court guidelines,” he said. “Once the coal terminal at Berth No 11 is ready, the operation of coal and coke handling from Berth No 10 will be shifted to the new terminal, while Berth No 10 will be utilised for containers and logistic industries, which is badly needed in Goa,” said Agarwal. When asked whether mechanised terminal will curb coal dust, washed off in sea during monsoon, he said: “There is no doubt about it, the covered domed-shape terminal will not be exposed to rain or winds to stack coal,” said Agarwal. When asked whether the development of new terminal on PPP basis would affect trade of Mormugao Port User Association, which comprises transporters, stevedores, ship chandlers, shipping agent and Barge Owner Association, etc, he said PPP based terminal does not take away the basic characters of the terminal, which is common users base. “It will always remain as common-user terminal, the only difference is that it is developed, constructed and managed by a private entity, while common users and consumers will tend to benefit from the terminal,” he assured.

(Source:http://oheraldo.in/news/Local%20News/MPT-for-mechanised-terminal-to-curb-coal-dust-pollution/38372.html)

State could not stop illegal mining: Centre

Bangalore, July 1, 2010: The mismatch of the inter-state boundary in Bellary district in the topography sheets of the Survey of India (SoI) and forest department and land records has attracted the Centre's wrath.  In a letter to chief minister B S Yedyurappa, Union minister for state for environment and forests Jairam Ramesh has rapped the state forest department for its failure to prevent encroachment of forests, resulting in illegal mining, especially in Bellary district.  The letter, dated June 18, accessed by TOI, has asked Karnataka to use its own maps and topography sheets to identify reserved forest boundaries. It has expressed the Centre's displeasure over joint surveys. Ramesh said: "I am writing to express my deep concern at the inaction of the Karnataka state forest department in protecting encroachment into its reserved forest area. As you are no doubt aware, this has led to rampant illegal mining of iron ore, particularly in Bellary district." "Joint surveys should be the last option. It is the responsibility of the state forest department to ensure that illegal mining in forest areas does not take place. Survey and demarcation is best undertaken by state forest department," the letter said.

(Source:http://timesofindia.indiatimes.com/city/bangalore/State-could-not-stop-illegal-mining-Centre/articleshow/6112854.cms)

New panel to study Vedanta mine impact on tribals

New Delhi, July 1, 2010: Dongria Kondhs of Lanjigarh in Orissa may have received some respite, with the government setting up yet another committee to reconsider how a proposed Vedanta mine in the area could affect the tribe. On Wednesday, the Environment and Forests Ministry constituted the four-member committee to make recommendations on a proposal to divert over 660 hectares of forest land for the Lanjigarh Bauxite mines, submitted by the Orissa Mining Corporation for a project to be implemented jointly with Vedanta Aluminium. The committee will examine, apart from the diversion of the land which comes under the Forest (Conservation) Act, 1980, issues of settlement of rights under the Forest Rights Act, 2006, says a Ministry release.  Of particular importance will be the “specific impact on the livelihood, culture and material welfare of the Dongria Kondhs, a notified Primitive Tribal Group.”

Holy Mountain

A number of international NGOs have taken up the cause of the tribe, which claims that the mine would desecrate its holy mountain and cause disruptions to its way of life on the Niyamgiri Hills. The committee will also consider the project's impact on wildlife and biodiversity in surrounding areas. It will be headed by National Advisory Council member N.C. Saxena. The other members are Tata Institute of Social Sciences director S. Parasuraman, retired IFS officer Promode Kant and the Institute of Economic Growth's associate professor Amita Baviskar. They will submit their findings within one month after conducting field visits and analysis, and reviewing previous reports.

Follow-up action

In fact, this panel was set up as a follow-up to concerns raised by a three-member committee which submitted its report after site inspections in January and February 2010.

(Source:http://www.thehindu.com/news/national/article493872.ece)