CURRENT NEWS

JUNE 2010

Mines battle toxic charge - Five Sahebganj firms cry foul over ‘selective’ closure notices

Rajmahal, June 30, 2010: Jharkhand State Pollution Control Board and Sahebganj district administration are at loggerheads over the closure of five polluting China clay mines situated on the banks of the Ganga in Rajmahal. The JSPCB, which had issued showcause notices to 11 firms in Rajmahal three months ago, sent orders for the closure of only five of them to Sahebganj deputy commissioner K. Ravi Kumar on May 15. But Kumar denies receiving any such notice. “I haven’t received any communication from the JSPCB. In any case, one needs to follow the legal procedure. You need to give the firms at least 60 days time to comply with the order. They are free to appeal too.” But JSPCB member secretary S.K. Sinha was sceptical of the DC’s claims. “It is hard to believe that the notice reached the owners of mines but did not reach the Sahebganj DC. The order is not being executed due to lack of will,” he said. The five firms served closure notices are Rajmahal Quartzite, Sand and Kaolin Mines, Khemka Mineral, Ritu Mineral, Jai Mineral and Standard Mercantile Company. These firms allege the remaining six must have “bribed” JSPCB officials to spare themselves. “The JSPCB had served notices to 11 China clay mines, including mine, in Rajmahal three months ago. Why do you think officials have served closure notices to only six? There is no prize for guessing. They are turning the heat on us as we did not pay them,” alleged a China clay mine owner, requesting anonymity. Another mine owner came out with similar allegations. “We had gone to the JSPCB office in Ranchi after the showcause notice was issued. Pollution was the last thing they talked about, all they wanted was Rs 50,000 from each of us to strike off the names of our firms from the closure list.” According to mine owners only firms located close to the Ganga released water into the river. “The effluent is not toxic and does not pollute the river. The JSPCB officials are trying to threaten us to make some quick money,” claimed the owner. But Sinha denied these allegations. “The mine owners are talking nonsense. So far they have been flouting pollution norms with impunity. Now I am trying to put things in order and save the sacred Ganga. They are pulling me into the murky waters of a blame game, a sport they have attained mastery in over the years.”If JSPCB manages to shut down the mines, around 10,000 people working in allied business in surrounding areas – will lose their livelihood. “The closure will affect the state, which earns around Rs 2 crore in revenue from these units. Under such condition Sahebganj, which is still free of Maoists, runs the risk of becoming a part of the red corridor,” warned Vinod Kumar Agarwal, a senior Congress leader.

(Source:http://telegraphindia.com/1100630/jsp/jharkhand/story_12626784.jsp)

Forest rights violation: Panel to review Vedanta

Bhubaneswar, June 30, 2010: The Union Environment Ministry has formed a fresh panel to look into the alleged violation of forest rights of tribals in Niyamgiri hills, where it has held up clearance to the bauxite mining project of Vedanta Resources. The Ministry, in a notification on Tuesday, announced a four-member panel to be headed by NC Saxena from National Advisory Council (NAC). S Parasuraman from Tata Institute of Social Sciences, Promode Kant and Amita Baviskar - both from Institute of Economic Growth - are the other members.  The move comes following reports that the Prime Minister’s Office (PMO) has asked the ministry to “clear the project after a thorough scrutiny and due consideration of all aspects.” The committee has been asked to submit its report within a month. It has been mandated to make field visits and review all previous reports. In fact, the mandate is almost same given to a three-member committee formed early this year which had noted ‘violation’ of forest laws and tribals’ rights by Vedanta. According to the Ministry, the need for another review is required to take a final decision on the application for diversion of forest land. The primary issue which needs consideration is the settlement of rights under the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, particularly the specific impact on the livelihood, culture and material welfare of the Dongria Kondhs. Besides, the impact on the wildlife and biodiversity in the surrounding areas because of bauxite mining needs further study, the notification said. The previous committee had been formed to make recommendations on the proposal submitted by the Orissa Mining Corporation under the provisions of the Forest (Conservation) Act, 1980 for diversion of 660.749 hectares of forest land in Lanjigarh bauxite mines in Kalahandi and Rayagada districts for the Vedanta project. Vedanta’s plan to mine bauxite for its alumina refinery in the State has been bogged down in controversy since 2005. It is also facing stiff resistance by the tribals who fear losing their homes and livelihood.

(Source:http://expressbuzz.com/states/orissa/forest-rights-violation-panel-to-review-vedanta/185790.html)

Vedanta may get to mine in Niyamgiri

New Delhi, June 30, 2010: Plans by Vedanta Resources to mine bauxite in Niyamgiri to feed its aluminium refinery in Orissa could fructify after years of delay and allegations of violation of tribal rights and environment norms by the promoter of the project. The Prime Minister’s Office (PMO) has written to the environment ministry to give clearance to the project after “a thorough scrutiny by the expert appraisal committee and due consideration of all aspects”, a top government official said. The environment ministry is likely to take a final call on the fate of the project possibly within three weeks, an official in the ministry said. One of the options it is evaluating is to give conditional clearance to the project with higher net present value for the forest land and greater safeguards to protect the Dongria Kondh tribe. Another option being considered by the environment ministry is to challenge the studies on forest and wildlife impact, arguing that they were shoddy. Vedanta Resources said in a statement that it is the “affected party” and has been complying with all statutory guidelines. It did not comment on the communication by the PMO. Environment minister Jairam Ramesh did not respond to phone calls and text messages. A report by two members of the study team sent by the Forest Advisory Committee, the nodal agency for all forest and environment clearances, said earlier this year that there were no forest or environment issues related to the project and, therefore, it should be given the go-ahead. However, the report had pointed out that issues relating to tribal communities need to be addressed. Usha Ramanathan, a member of the team, had flagged the poor implementation of the Forest Rights Act, 2006, and the deleterious impact of the project on the local primitive tribal group, the Dongria Kondhs. It was on this issue that the environment ministry had withheld the clearance. But now, the tribal affairs ministry has told the environment ministry that it has been informed by the Orissa government that the Forest Rights Act has been implemented by the company. The tribal affairs ministry has not raised objections to the project and neither has it communicated any reservations about it to the PMO, an official in the ministry said. Given this fact, the environment ministry would have little choice but to give a go-ahead since issues relating to relief and rehabilitation (R&R) and tribal rights don’t fall within its domain. “There also seems to be a perception that the environment ministry is possibly exceeding its brief. It should just be concerned with environment and forest issues. Other issues relating to R&R and tribal rights are not under its jurisdiction. It’s for the ministries concerned to take a call,” said a senior government official. The bauxite mining project is crucial for Vedanta Resources.

Uncertainty delays arm’s listing plans

Uncertainty in getting forest clearance for bauxite mining has forced it to delay listing plans for Vedanta Aluminium, a subsidiary. Despite the global spread of its operations, the bulk of Vedanta’s revenues and profits originates from India. Sterlite, its flagship Indian arm, is 52% owned by the promoters, the Agarwal family. Institutional shareholders include MFs like UTI, which own 3.5%, insurance companies (3.9%) and FIIs (14.5%). A coalition of NGOs and activists, foreign and Indian, has for long carried on an unremitting campaign against plans by Sterlite, the Indian arm of Vedanta, to mine bauxite in Orissa. The mining activities were approved by the Supreme Court in 2008, though the company is yet to receive final regulatory approval from the environment ministry. Activists allege that bauxite mining in Niyamgiri would destroy the environment and displace the tribal community. A senior Sterlite official, who spoke on condition of anonymity, saw the hands of what he described as “foreign mining giants” behind the activities of the NGOs.

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

Environment Min sets up panel to look into impact of Vedanta mining on tribals, wildlife & biodiversity

New Delhi, 30, 2010: The Anil Agarwal promoted Vedanta Alumina’s plans for sourcing bauxite from the Niyamgiri hills in the Kalahandi district of Orissa will have to wait.  The environment ministry has set up a four-member committee headed by National Advisory Council member NC Saxena. The other three members of the committee are Dr S Parasuraman, director, Tata Institute of Social Sciences; retired IFS officer Promode Kant, and Amita Baviskar, associate professor at Delhi’s Institute of Economic Growth.  In an order issued on Tuesday, the ministry made it clear that a final decision on the application for diversion of forest land cannot be taken without further examination.  With a deadline of July 29, the committee has 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, and on the local wildlife and biodiversity. The report will be submitted to director general of forests P J Dilip Kumar and R H Khwaja, special secretary in the environment ministry. This in effect means that the Saxena committee will revisit the issues that were studied by the three-member team appointed by the forest advisory committee in January.  The environment ministry has been under considerable pressure to grant a final forest clearance to the project. Sources indicated that by appointing the Saxena committee to go over ground that has been already covered, the environment minister has sought to buy time to convince the PMO on the inadvisability of the project.  The pressure on the ministry was on account of a clean chit given to the project on violation of forest laws and its impact on wildlife given by a study team sent by the forest advisory committee in January. The team comprised three members, each responsible for studying for one aspect of the issue. The report on violations of the Forest Conservation Act was prepared by the chief conservator of forests (central) J K Tewari. Former additional director general (wildlife) at the Wildlife Institute of India Vinod Rishi prepared the report on the project’s impact on local wildlife. The study on the impact on the local population was conducted by Usha Ramanathan, an independent legal researcher. The respective reports by Messrs Tewari and Rishi gave the project a clean chit. Ms Ramanathan was the only member of the team who argued against the project. She questioned the Orissa state government’s claim that the Forest Rights Act had been fully implemented.  Ms Ramanathan’s report gave a clear warning that the project would destroy the local primitive tribal group, Dongria Kondh. According to her, this 7,000-odd strong tribal group would not be able to make the transition from a forest based lifestyle to the one that will be necessitated should the mining project take off. While forest advisory committee accepted the reports, the ministry was not persuaded to completely accept the recommendations by Messrs Tewari and Rishi. It particularly had a problem with the manner in which Mr Rishi conducted the study. Interestingly, despite reservations the environment ministry did not commission fresh studies on forest and wildlife issues. On the tribal front, it deftly passed the ball back to the Orissa government asking it to take the matter up with tribal affairs ministry. However, what the environment ministry did was to hold a final clearance. The decision to withhold clearance was in line with the ministry’s July 2009 circular, stating: “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.” This stance came under attack from the PMO and the company, who argued that the environment ministry’s jurisdiction was limited to forest and wildlife matters. The project had been given an “in-principle” clearance in 2008, by Mr Jairam Ramesh’s predecessor. Mr Ramesh, who has been objecting to the concept of in-principle clearances, had told Parliament that “had the tribal act been in place, the chances are that this project (Vedanta) would not have been cleared in the first place.” In the past, he has repeatedly stressed that the project would be given forest clearance only after all tribal rights have been settled.

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

PMO may lift coal mining ban if plants 50% ready

New Delhi, June 30, 2010: Companies that were given linkage from the Hasdeo-Arand coalfields may get some respite on the environment front provided they have constructed more than half the plant. The Prime Minister’s Office (PMO) is considering giving a go-ahead to projects where companies have completed 50% of the construction after getting coal linkage, it is learnt. “The issue is grave as a lot of companies have invested in the projects in anticipation of coal linkage. Such plants could be given a go-ahead, after an inter-ministerial group takes the final call on the issue,” said a source close to the development. The environment ministry has declared the Hasdeo-Arand coalfield in Chattisgarh as a no-go area, where no mining activity could be undertaken. However, industries as well as the ministries of coal, power and steel have been lobbying hard to get clearance for some of the important projects in the area. At a May 21 meeting, presided over by T K A Nair, principal secretary to the Prime Minister, officials of the environment and forests ministry were told that, due to the ministry’s no-go classification, 619 million tonnes per annum of coal production capacity (about 412 mtpa from Coal India’s areas and 207 mtpa from captive blocks) was getting affected, which was not acceptable to the PMO. A major part of the no-go area falls in the Hasdeo Arnad Coal field. In nine coalfields, where superimposition of coal-bearing areas and forest areas had been done, 48% of the area fell in “no go” category “which is not agreeable”. The Hasdeo-Arand Coal Field has 20 coal mines with estimated proven reserves of 1360 million tonnes. Prakash Industries, Hindustan Zinc, Ultratech and Chhattisgarh Captive Coal Mining have been given mining licences on the basis of their projects in this coal field.

(Source:http://www.dnaindia.com/money/report_pmo-may-lift-coal-mining-ban-if-plants-50pct-ready_1403118)

Karnataka shifts officer probing disappearance of seized iron ore

Bangaluru, June 29, 2010: A forest officer investigating the illegal transport of over eight lakh tonnes of iron ore to Bellikeri port in Karnataka, and the subsequent disappearance of nearly five lakh tonnes of it, has been transferred by the state government. The CID will now handle the probe. In fact, a CID team visited the Bellikeri port on Sunday — a day after the transfer of Assistant Conservator of Forests, Karwar, N Hittalamakki. The transfer of Hittalamakki has been questioned by Karnataka Lokayukta Justice Santosh Hegde who resigned last week, citing the BJP government’s “non-cooperation” in fighting corruption. Hegde called the transfer a possible move to thwart progress in a probe that was initiated after an expert team attached to the Lokayukta discovered that several lakh tonnes of iron ore, worth hundreds of crore, were being shipped out without valid permits. “The government has decided to transfer the case from the Forest Department to the CID without consulting us,” Hegde said.  Announcing his resignation last week, Hedge also cited Ports Minister Krishna Palemar’s attempt to suspend Karwar Deputy Conservator of Forests R Gokul who was supervising investigations into the illegal iron ore at Bellikeri port.  Gokul filed an application in the Karnataka High Court, seeking suspension of all iron ore exports from three key ports in the state.

(Source:http://www.indianexpress.com/news/karnataka-shifts-officer-probing-disappearan/639814/)

Coal mine in way of Jindal’s plant?

Raigarh, June 25, 2010: In the 1990s, Raigarh’s ample coal mines brought the Jindal group to Chhattisgarh, where the company built its fortunes, along with the world’s largest sponge iron and steel plant. But, as the company tries to expand its operations, it’s a coal mine that has come in its way. In a letter to JPL on October 7, 2009, Raigarh’s district collector pointed out that the 1041 hectares of land where it proposed to build its plant was on top of a coal mine allotted to Chhattisgarh Mineral Development Corporation (CMDC). The collector, Munish Tyagi, asked Jindal Power Ltd (JPL) to first get a no objection certificate (NOC) from CMDC. But CMDC refused to give an NOC. On 23 February, in a letter to JPL, it said, ‘‘CMDC is of the opinion that granting of NOC for usage of land... for setting up your expansion project is not in the economic interests of CMDC’’. When it failed to persuade CMDC, on April 17, JPL wrote to district authorities stating it had decided to change the location of the plant. It said it would construct it on 360 hectares that it had got approval for in 2006. ‘‘Most of this land had already been used to construct its 1000MW thermal power plant, only 62 hectares still remained vacant. How can the company set up a 2400MW on just 62 hectares?’’ asks Ramesh Agrawal, a local environmentalist activist. A public hearing was scheduled on May 8. As part of procedure, to get clearance from MoEF, every project needs to place its environmental study in a public hearing. ‘‘That’s when the company realised that if it changes location, it will have to carry out a fresh environmental study, before it could hold a public hearing,’’ says Agrawal. And so on May 4, just three days before the hearing, the company retracted its earlier letter, and said it will stick to the initial location.

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

Meet focuses on eco protection

Panaji, June 25, 2010:: The Goa Environment Protection Council (GEPC) met on Thursday at the Raj Bhavan under the chairmanship of governor Shivinder Singh Sidhu. Chief minister Digamber Kamat also attended. Sidhu stated that protection and conservation of environment is of paramount importance to attain sustainable as well as optimal utilization of natural resources and as such, GEPC should frequently meet, so as to understand the current scenario on various environmental issues and initiatives taken taken to mitigate them. He also stressed that garbage disposal and waste management as well as sustainable mining should be accorded top priority, by adapting to an integrated approach.

(Source:http://timesofindia.indiatimes.com/City/Goa/Meet-focuses-on-eco-protection/articleshow/6088614.cms)

Orissa ranks first in mineral output

Bhubaneswar, June 25, 2010: Even as allegations of “illegal” extraction of minerals and productions of ore exceeding mining plans are dominating discussions in intellectual circles, the State government has come out boasting that it has left behind other States in mineral production. In the recently released Economic Survey, the government said, “in total value of mineral output, Orissa ranks first in India in recent years and its share is increasing. In 2008-09, provisional estimates place at 16 per cent of Orissa's share of total value of mineral production in India.” Orissa is followed by Madhya Pradesh with 7.83 per cent, Andhra Pradesh (6.48 per cent), Gujarat (5.16 per cent) and Karnataka (4.37 per cent). Environmentalists and economists have on many occasions criticised the State government for allowing mindless export of iron ore and other minerals from the State. According to the Economic Survey, the total mineral output in 2002-03 was estimated at 3,694 lakh metric tonnes. In 2008-09, the production level touched 15,123 lakh metric tonnes registering four times growth in seven years. “Iron ore constitutes the single most important mineral in the export basket of all minerals. Its share in total exports of minerals stood at 56 per cent in 2008-09,” the document revealed. Keonjhar contributed highest 597.59 lakh metric tonne of iron ore exploration during 2008-09. The State government claimed that mining sector contributed about 7 per cent towards Orissa's Gross State Domestic Product. There were 596 mining leases subsisting in 2008-09, covering an area of 96.63 thousand ha. Of these, 376 leases with an area of 74.02 thousand ha were in operation.

(Source:http://www.hindu.com/2010/06/25/stories/2010062559440300.htm)

Assam on iron ore map of country

New Delhi, June 25, 2010: For the first time ever, the Ministry of Mines has given an iron ore reserve in Dhubri on ‘prospective lease’ to a private mining company, putting Assam on iron ore map of the country. Though the iron ore found in the district is believed to be of poor quality, the Ministry is trying it out on an experimental basis with high hopes. “While working on silica sand, traces of iron ore was found in Dhubri. We are examining it and initial reports are positive. It could be huge in volume,” he said. The iron ore deposits in the region are found to contain a low proportion (41 per cent and below) of iron. Besides, a very large quantity of ore has also not been found to be located at one place. Based on survey conducted by the Ministry, explorations have found iron ores deposits  in Dhubri district in an around the hills of Bilasipara, especially at Chandardinga hills. Its estimated reserve is put at 17 million tonnes. Some reserve is also found in the foothills of Meghalaya adjoining Kamrup and Goalpara districts and in Garo Hills area. Briefing newsmen, Union Minister for DoNER and Mines, Bijoy Krishna Handique said that efforts are on to exploit the silica sand reserve by setting up a glass factory in Assam. However, he admitted that they are yet to receive any application from manufacturers of glass. A study by the Geological Survey  of India (GSI) has confirmed silica sand reserves in Assam, Meghalaya and Tripura. Meanwhile, the Ministry DoNER has moved for revision of the cost estimate of North East State Road Project to $ 362.5 million. Handique was briefing about the three special externally-aided projects initiated by the Ministry of DoNER. The (NESRP), an Asian Development Bank (ADB) Project, is being executed by the Ministry at an estimated cost of Rs 1500 crore. The other two projects include the North Eastern Region Community Resource Management Project for Upland Areas (NERCORMP) and North East Rural Livelihood Project (NERLP), a World Bank-aided project. Giving an update on implementation of the NESRP, Handique said currently the loan appraisal mission of ADB is in progress, while loan negotiations between the external aid agency and Government of India are scheduled some time July. The sanction of the Cabinet Committee on Economic Affairs (CCEA) and Planning Commission is also awaited. The Ministry has moved a proposal for the revised cost estimates to the tune of $ 362.5 million to the Department of Expenditure for its clearance, the Minister confirmed. He said Chief Secretaries of the State Governments of the North-east in general and Assam in particular have been asked to acquire land for the project. The land acquisition involved is, however, minimal, except in case of Assam, where a significant amount of land under right of way (RoW) needs to be acquired, Handique said. Tranche- I States of Assam, Meghalaya and Sikkim have been requested to do the budgeting for land acquisition and resettlement. The States have to bear the expenditure, according to funding pattern of NESRP, he added. As for the status of the NERLP, the Minister revealed that a World Bank team has already visited Assam, while another is visiting Tripura next month. The Ministry of DoNER has already invited expression of interest and shortlisted consultants for award of studies in environmental and social assessments, besides livelihood studies. As for the status of NERCORMP-I, the first phase of the project cost is Rs 166.25 crore and is jointly funded by the International Fund for Agricultural Development (IFAD) and North Eastern Council (NEC) and Ministry of DoNER. In the first phase, at least two districts of Assam, Manipur and Meghalaya are proposed to be covered.

(Source:http://www.assamtribune.com/scripts/detailsnew.asp?id=jun2510/at09)

A minefield

New Delhi,  June 25, 2010: For a year now, officials of the Ministry of Mines have been seeking the help of beat reporters to garner support for a more enlightened minerals policy. The Mines and Minerals (Development and Regulation) Bill which has gone through several drafts had pitted the Minister for Mines B K Handique against Steel Minister Virbhadra Singh in a rather public battle for turf. Officials appeared to be feeling the pressure from several sides, not least the mining lobby. Yesterday, the talk in Delhi’s Shastri Bhavan, where the ministry has its offices, turned to Australia where Prime Minister Kevin Rudd was forced to resign following some unpopular proposals. Chief among these was a proposal for a 40 per cent tax on mining profits from 2012 to allow “the people a greater share in mining profits”. This is similar to the controversial aspects of the Indian Bill which proposes a cess to create a mineral fund for local area development in mining areas along with an equity stake for the affected community. Officials mulling over the statement of the just sworn in Australian Premier Julia Gillard, who said she was “throwing open the government’s door to the mining industry”, seemed rather bemused.

(Source:http://www.business-standard.com/india/news/a-minefield/399317/)

Hindusta Copper eyes foreign buy

Bangalore, June 25, 2010: Hindustan Copper Limited (HCL) is in talks to acquire mining assets in Chile and Namibia, its chairman and MD, Mr Shakeel Ahmed, said on Thursday. “We have had preliminary discussions in Chile, Namibia and we will keep any such opportunity in any country abroad on our radar to acquire copper deposits,” he said. Mr Ahmed said that acquiring a mining asset is a time-consuming process and a lot of risks are involved. “The asset can be toxic,” he said, adding due-deligence has to be done carefully before acquiring any such property. He said that HCL is open to all forms of acquisitions abroad — it could be acquisition by itself, or through joint venture or buying of strategic stake. He pointed out that copper consumption in India is 5.5 lakh tonnes annually against 61 lakh tonnes in China and 19 lakh tonnes in the US. India has only one per cent of the world's copper reserves and its consumption is growing at the rate of seven to eight per cent annually. “Prime Minister is keen on acquisitions of assets abroad to secure our long-term interests of mineral resources, and added that HCL is pursuing mining leases in Madhya Pradesh, Jharkhand and Rajasthan,” he added.

(Source: http://www.asianage.com/business/hindusta-copper-eyes-foreign-buy-058)

Nine banks keen on Hind Copper FPO mandate

Bangalore, June 25, 2010: Hindustan Copper’s chairman and managing director Shakeel Ahmed said on Thursday that nine investment banks have shown interest in managing the firm’s follow-on public offer (FPO). He added that the company will finalise the names before the end of the month. “We are planning our FPO in September or October this year.” “Nine banks, including DSP Merrill Lynch, Kotak, ICICI Securities, SBI Capital Markets, IDBI, UBS, IDFC-SSKI besides Avendus Capital and Enam, are keen to participate in our fund-raising exercise,” he said. Mr Ahmed clarified that while the FPO will see the company dilute only 20% of its equity, the balance 5-6% will be done subsequently to meet the new minimum public shareholding norm of 25%. Currently a minuscule 0.41% of the company’s equity is traded on the bourses. Mr Ahmed said the company was planning to raise funds to partially finance its Rs 4,580- crore capex plans. This investment, which will be done over the next 5-6 years, will see close to 70% funds being raised through equity dilution, the balance being debt and internal accruals. The capex will see HCL hiking production capacity at its Khetri (Rajasthan) plant to 3.1 mt from 1 mt. Similarly, the Malanjikhand (Jharkhand) plant’s capacity will rise to 5 mt from the current 2 mt. The Ghatsila (Jharkhand) unit’s new capacity will be 3.9 mt from 0.4-0.6 mt. Mr Ahmed said that HCL will expand copper exploration and mining activity as copper consumption has risen due to rapid economic growth. “India’s current consumption is only 5.5 lakh tonne and we lag behind China and the US, which consume 61 lakh tonne and 19 lakh tonne respectively,” he added. He said that the Rajasthan government had recommended the firm’s name for copper mining at Bannivaliki Dhani. HCL was scouting for mines in Chile and Namibia. “These are still at a nascent stage. There are a lot of regulatory issues like ownership pattern of the venture, mining rights and the like,” he added. Mr Ahmed said that the company had begun a dialogue with Karnataka’s Hutti Gold Mines to revive the copper mines at Chitradurga. “HCL could look at a joint-venture or outright purchase or a supply contract from this mine, which has reserves of nearly 2 mt, and closed in 2001 as global copper prices fell to $ 2,500 per tonne,” he added. HCL shares inched up 0.49% to Rs 495.3 on Thursday.

(Source:http://economictimes.indiatimes.com/IPOs/articleshow/6088336.cms)

Centre to tackle mining companies funding Naxals

New Delhi, June 25, 2010:: Aiming to tighten screws on the Maoist funding, the government is seeking to empower the National Investigation Agency (NIA) to investigate mining companies suspected of paying protection levy to insurgent groups. A new section, included in the proposed legislation titled Mines and Minerals (Development and Regulation) Act, 2010, will also authorise the Central Government to cancel lease of those mining company, who are found paying up to the insurgents. Government assumption is that Maoists get major funding, running into crores, from mining industries spread in the woods of Jharkhand, Orissa and Chhattisgarh in the form of protection money which they use to buy weapons and sustain People’s Liberation Guerrilla Army. Taking a cue from the alleged illegal mining operations by Karnataka heavyweight Gali Janardhan Reddy in Bellary forest reserve, it empowers the Centre to intervene and cancel the lease of a mining company on the basis of a complaint or FIR lodged by even a common man.

(Source:http://expressbuzz.com/nation/centre-to-tackle-mining-companies-funding-naxals/184381.html)

Lok Ayukta quits in Karnataka: BJP govt is reinstating corrupt officers

Bangalore, 24, 2010:  After battling corruption in the government for nearly four years, Justice N Santhosh Hegde today resigned as Karnataka Lok Ayukta in frustration over the BJP government’s alleged apathy towards corruption and illegal mining of iron ore in the state. Hegde submitted his resignation to Governor H R Bhardwaj on the eve of the second anniversary celebrations of the B S Yeddyurappa-led government. Addressing a press conference after quitting the post, Hegde pointed to what he called continued belittlement of the office of the Lok Ayukta by the Yeddyurappa government; reinstatement of corrupt officers caught by Lok Ayukta police despite assurances to the contrary by the Chief Minister himself; pendency of over 8,000 cases due to delays in appointing a Upa Lok Ayukta; and, harassment of officers fighting corruption. The final straw was the mysterious disappearance of nearly five lakh ton of iron ore, valued at nearly Rs 200 crore and seized in February by forest authorities at the state-run Belikeri port after Lok Ayukta investigations revealed that the ore was transported illegally from Bellary without permits. A minister in the BJP government, identified by sources as Ports Minister Krishna Palemar, wrote to the Chief Secretary on June 2,1 seeking suspension of the Deputy Conservator of Forests who had made the original seizure — and reported the recent disappearance of the seized ore — on frivolous grounds like failing to attend a meeting, Hegde said. The Karnataka government, he alleged, was targeting officers aiding the Lok Ayukta in its battle against corruption. According to the Lok Ayukta, investigations have revealed that as much as 30 lakh tons of iron ore, valued at Rs 1,200 crore, have been exported illegally from Belikeri and Karwar ports in Karnataka in 2009-10 alone. Hegde is credited with stemming illegal mining to some extent in Karnataka through an investigation into the process of illegal mining of iron ore and sand. The ongoing probe has yielded one major report so far with a series of partially fulfilled recommendations to the government to plug administrative loopholes that allow illegal mining to flourish. A second report on illegal mining is in the offing and is expected to look at aspects like illegal export of iron ore, the financial routing of money from illegal exports. The second report is expected to be furnished to the government by August 31 when Hegde is expected to leave office. After announcing his resignation, Hegde said he would stay on till August 31 to complete unfinished reports. “This is not an emotional decision, it is part of a cumulative effect of government indifference,” Hegde said, describing the repeated reinstatement of officers caught for corruption as “slaps in the face of the Lok Ayukta”. “This is what is done to the Lok Ayukta after the Chief Minister himself gives assurances that no suspended officer will be re-instated without consulting the Lok Ayukta police,” Hegde said. “Once you know that you are not wanted, you should not wait for some more reasons,” he said. “I feel useless, I feel helpless. Merely catching people for corruption does not solve anything,” he said. Asked if he was fleeing the fight and doing injustice to the people of Karnataka, Hegde said “justice and injustice can be viewed differently by two different people.” “If I continue as Lok Ayukta and can do nothing for the people, is that justice? If the government realizes why I am doing this, may be my successor will be able to run a better institution,” he said. Justice Hegde, who was appointed for a five year term in 2006 during the rule of H D Kumaraswamy of the Janata Dal Secular, denied his decision to quit on the eve of the grand anniversary celebrations of the BJP was politically motivated. “I need support to fight corruption because people in politics are not bothered about corruption,” he said.

(Source:http://www.indianexpress.com/news/lok-ayukta-quits-in-karnataka-bjp-govt-is-reinstating-corrupt-officers/637810/0)

Mining firm refutes allegations, says environmental laws are followed

Mayem, June 23, 2010: Refuting allegations against his mining company at Oilem Harvalem, H L Nathurmal Mining Company owner Melwani has stated that the company has been following every aspect of supporting environmental laws. It may be recalled that NCP President Edwin Fernandes and Vice President Shyam Mandrekar in a memorandum to Bicholim Mamalatdar, Deputy Collector and Mines department had stated that the mining company was causing dust pollution in Harvalem. Addressing a press conference in Bicholim on Tuesday, Melwani said all the allegations leveled by the duo against his mining company are false, as the company has been taking due precaution while undertaking mining activities. “At the most, about 150 villagers are employed on the 10 mining trucks,” informed Melwani adding that the mining company is running on a small scale. “Being monsoon season, there is no question of pollution. Even a single drop of water from the existing soak pit is used by the company without any wastage. The water level from the wells close to the mining site has increased, which has been proved by Hydraulic Survey report prepared recently,” Melwani added. Melwani also brought to the notice that the matter was already with the mamlatdar and the hearing of it is in progress. He expressed surprise over the fact that not a single officer from the complainant side appeared for the hearing.  “I am ready to face any inquiry,” he added.

(Source: http://oheraldo.in/news/Local%20News/Mining-firm-refutes-allegations-says-environmental-laws-are-followed/38133.html)

Illegal mining expands desert area

Jaipur, June 23, 2010: The desert is expanding in Rajasthan. And, the hazard of desertification is threatening the pilgrimage centre of Pushkar the most.  According to a study conducted by multi-disciplinary team of scientists and practitioners from Indian Institute of Science, Bangalore and IIT Kharagpur, various causes for desertification have been found, but experts involved in the study have largely attributed it to the unabated mining in Aravalli ranges. The experts have found severe destruction of vegetation during the past, largely due to mining in the ranges. “Climate change alone is not responsible for desertification in Rajasthan as human intervention, mainly the mining activity, is adding to the desertification. Besides, location of the zone along the fringe of the desert, and its inherent vulnerable nature due to its terrain characteristics with the Aravallis, are other factors leading to desertification in Budha Pushkar region,’’ said the experts in their study. The study was taken up with sanctions from the state government, including endorsement from chief minister Ashok Gehlot.  The study also attributes this to a lack of understanding of the type of response of the terrain to indiscriminate human activities, and a reluctance to take any measure to stabilize the ecosystem by people living in the area. This has resulted in destruction of natural vegetation, accelerated the movement of sand from the formerly well-stabilized dunes and sandy plains, and deteriorated the lake environment. Besides, the predominant wind direction in Rajasthan is South West to North East, so the tendency for desertification has been more in that direction. “Indeed, there is clear evidence that the Thar Desert is expanding in an eastward as well as northeast direction in other places too,’’ said P Goswami, one of the experts involved in the study. Experts have suggested that the Thar Desert, is a dominantly monsoon driven sand desert where wind erosion is a major problem during the summer months of March to July. While the Aravalli range is a major barrier in the spread of the desert, rampant mining creating cuts in the range is leading to the spread of the desert. “The Pushkar area has a lot of cuts in the Aravalli range. Besides, mine spoils in 8-10% of the area around Jodhpur have not been restored. Other factors that are leading to desertification are excess ground water usage, cultivation of water guzzling crops and the demand for infrastructure that is leading to illegal mining,’’ said Dr L N Harsh, principal scientist, Central Arid Zone Research Jodhpur. The study has further predicted that due to climate change, there may be a significant increase in the desert area over India in the next 100 years with potentially disproportionate impact of global warming on coupled human and natural systems.

(Source:http://timesofindia.indiatimes.com/City/Jaipur/Pushkar-turning-into-a-desert/articleshow/6080716.cms)

Eight Orissa coal mines face closure

Bhubaneswar, June 23, 2010: At least eight open cast mines of the Mahanadi Coal Fields Limited (MCL), a subsidiary of state-run Coal India, are facing closure in Orissa due to opposition by local residents, a company official said Wednesday.  The mines, located in Talcher in Angul district, some 180 km from here, are expanding but villagers are opposing the mining activities, MCL spokesman Dikken Mehra told IANS.  "Fear of closure of most of the mines is looming large," he said.  "We are not able to shift the villagers because we are not getting rehabilitation sites," Mehra said.  "The villagers, who had given up their land, have been employed by the company and compensation packages paid to them. But unavailability of land for their rehabilitation has become a major trouble in shifting them," he added.  District Collector Swami Dodda Venkata said the state government was aware of the problems.  "We do not have enough government land in the nearby areas. We are trying to help them out with whatever we have," he told IANS.  "Locating suitable government land for their rehabilitation is a challenge for us. We have suggested them to purchase private land," he said. But Mehra said the problems in several mines were acute and required urgent measures. "The mines which are registering negative growth compared to last year in the Talcher coalfields are Bharatpur, Jagannath, Ananta, Bhubaneswari, Chendipada, Lingaraj, Hingula and Balaram," he said. However, problems in at least four mines were acute and required urgent measures. The Bharatpur mine is a dedicated MCL mine for supply of coal to state-run National Aluminium Co Ltd (NALCO). Other mines supply coals to power plants in several states, including Orissa, Karnataka, Andhra Pradesh and Tamil Nadu. Mehra said: "A machine costing more than Rs.100 crore was employed at Bharatpur mine recently but it could not be put in operation because of the non-eviction of a house on the site." "We fear that if early action is not taken in this regard, the commitment made to NALCO and other power producers will not be fulfilled," he added. The MCL has produced 104.8 million tonnes of coal during 2009-2010 against India's 531 million tonnes output. The coal production from the open cast mines at the Talcher coal fields was 10 million tonnes last fiscal (April 1 to June 11). This year it was only 8.14 million tones (from April 1 to June 11), another senior company official said.

(Source:http://expressbuzz.com/states/orissa/eight-orissa-coal-mines-face-closure/183988.html)

Horomoto mines to JSL smacks of favouritism: Vis

Bhubaneswar, June 23, 2010: The Centre’s nod to grant of prospecting licence (PL) for Horomoto iron ore mines in Keonjhar district to JSL Limited on the basis of the recommendations of the State Government has stirred a hornet’s nest with questions being raised over bypassing of merit and indulging in favouritism on the part of the latter.  Visa Steel Limited (VSL) has cried foul stating that it was the rightful beneficiary of the mineral concession purely on virtue of being first to enter into an MoU with the Government and the first to apply for the mining and prospecting licences.  The approval in favour of JSL was in blatant violation of not only the Mines and Minerals  Development and Regulation (MMDR) Act but also against the stay issued by the Orissa High Court in September last year.  The company had signed the MoU with the Government in December 2003 and commissioned its first blast furnace within 15 months besides investing in other facilities of the integrated special and stainless steel plant at Kalinga Nagar. Production commenced from March 2005 without a mineral concession, for which it applied for mining licence in May 2006 and prospective licence in January 2007. On the other hand, JSL’s MoU was signed in 2005 and it is yet to start production. It had applied for the PL in March 2007 two months after Visa Steel. The company has alleged that the guidelines at both the Central and State governments according first right to the  MoU of the same class, where plant has already been set up without grant of mineral concession have been twitched to suit others.  For the past five years, Visa Steel has been sourcing its iron ore from “merchant miners” at exorbitantly high prices for running its blast furnace and kilns. This has resulted in interruptions in its operations for numerous times, an official stated.

(Source:http://expressbuzz.com/states/orissa/horomoto-mines-to-jsl-smacks-of-favouritism-vis/183872.html)

 ForestMin now waves red flag at SAIL’s iron ore mines

New Delhi, June 22, 2010: After prescribing the mining limits for the coal sector and inviting the intervention of the Prime Minister’s Office, the Ministry of Environment and Forests (MoEF) has now raised concerns over the iron ore mines of state-run behemoth Steel Authority of India Limited (SAIL).  In a move that took the maharatna company by surprise, the MoEF recently refused to extend the forest clearance (FC) for its Gua mines unless the issue of granting the clearance for its Chiria mines was resolved. It argued that an elephant corridor existed within it and the matter needed to be resolved. The forest clearance for Gua, considered to be the lifeline of SAIL’s Bokaro plant, was to be decided upon by MoEF as its clearance was slated to expire on June 3. The MoEF top brass informed the steel ministry that extending the clearance for it should be considered only after the resolution of the forest clearance for the Chiria mines. Unaware of such a possibility, the steel ministry officials pleaded with their MoEF counterparts that both the issues were separate and should not be clubbed together. Gauging the sensitivity of the situation, Steel Minister Virbhadra Singh met MoEF minister Jairam Ramesh and explained to him the implications of the such a move. “I told Ramesh that both Gua and Chiria are imperative for Steel Authority of India Limited’s (SAIL) long-term raw material needs,” Singh told The Indian Express. Following the Rs 80,000 crore expansion and modernisation programme, SAIL’s iron ore needs would shoot up to around 42 million tonnes per annum to fire its furnaces. Sources in the MoEF argue that the ministry’s views on Chiria were guided by the fact that Chiria mines are part of the Saranda forests bordering Jharkhand and Orissa, which have an old elephant corridor. After Singh-Ramesh meeting, Steel Secretary Atul Chaturvedi and new SAIL Chairman C S Verma too met the MoEF brass in the course of the latest round of the Forest Advisory Committee (FAC) a few days ago and pointed out that any decision on Gua should not be made contingent on the resolution of Chiria as it was yet to come up before the FAC. “They had a concern on wildlife in the area and the elephant corridor which criss-crossed through the area. We said Gua was a stand-alone issue and should not be appended to the FC on Chiria, which is yet to come up before the FAC. Following our meetings with Ramesh and the FCA, the MoEF promptly gave a clearance to the Gua mines. However, we are trying to expedite the FC for Chiria as well,” Chaturvedi told this newspaper. Chiria and Gua together have a reserve of about 2 billion tonnes of quality iron ore.

(Source:http://www.indianexpress.com/news/forestmin-now-waves-red-flag-at-sails-iron-ore-mines/636802/0)

JSW, Reddys deal hinges on iron ore

Mumbai/Bangalore, June 22, 2010: JSW Steel, one of India’s biggest steelmakers, has demanded a stake in the controversial Obulapuram Mining Company (OMC) or a definite deal to supply iron ore as talks with Karnataka’s Reddy brothers for taking over their steel company reach a crucial stage. Top officials close to the negotiations told ET that the demand was made recently. JSW is looking to secure iron ore supplies for its new and existing steel projects in Karnataka and does not want to do a deal without assured supplies. A person close to the Reddy family in Bangalore said talks are going on and cover all aspects, including an iron ore supply agreement. He declined to reveal further details. Jindal’s demand for a stake in OMC or a supply deal with the Reddy brothers is significant as it shows the extent to which the company is willing to go in order to secure raw material supplies. OMC, the iron ore major promoted by the BJP ministers of Karnataka, has been in all sorts of controversy after the Andhra Pradesh government banned mining by the company in that state for alleged encroachment on forest land. OMC owns mines in AP and Karnataka and has been mining extensively on the border areas between the two states. The three BJP state ministers, G Janardhan Reddy, Karunakara Reddy and Somashekara Reddy, who are promoters of OMC, have also become political hot potatoes after they almost brought down the local BJP government last year, earning them the undying enmity of chief minister BS Yeddyurappa. In Andhra Pradesh, their support for the son of former chief minister, YS Rajasekhara Reddy, has angered chief minister K Rosaiah, forcing them into a high-profile legal battle and into withdrawing from a Rs 7,000-crore, four million tonne steel plant. Arcelor, Posco also eye Karnataka JSW’s talks to buy a majority stake in this steel plant have been going on for some time but everything hinges upon an agreement over iron ore. The scramble for this mineral, used widely in steel-making, has become as controversial and politically charged as the race for oil, thanks to a surge in investment plans by steel-making firms. Earlier this month, ArcelorMittal and Posco, two of the world’s biggest steel firms, announced plans to set up large steel-making facilities in Karnataka. JSW, which is already making seven million tonnes of steel in the Bellary-Hospet region, depends on ore supplies from third parties and wants to secure supplies for its expansion. Iron ore is present only in a few districts of Karnataka and Andhra Pradesh in southern India, and a rush to grab mining leases or take over firms with mines is already underway. Jindal officials say that talks over Brahmani Steel are progressing and that the two parties are discussing issues on a daily basis. The Jindals have also formed a dedicated team to take charge of the steel project, once all aspects are closed. But officials said there is no clarity on the issue of a stake in OMC and the supply of iron ore. “At Rs 7,000 crore, the project is expensive,” a Jindal executive told ET, hinting that lack of ore supplies could be a deal breaker. However, there is a section within the JSW Group management that is not convinced with the rationale of acquiring Brahmani Steel. The apprehension mainly stems from the fact that political risks associated with the project far outweigh any logic of going ahead with it. The main reason for the Jindals’ interest in the plant is the large land bank — more than 10,000 acres — that is currently owned by the Reddy brothers in Cuddapah. Land is the key part for any new project. It has taken Tata Steel more than 10 years and Posco more than seven years to set up steel projects in Orissa, mainly due to problem over land.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/JSW-Reddys-deal-hinges-on-iron-ore/articleshow/6076534.cms)

Renewal of MoU in the works : Naveen patnaik

Kolkata/ Bhubaneswar, June 22, 2010: The Orissa government has set the ball rolling for the renewal of the Memorandum of Understanding (MoU) with Posco India for its 12-million tonne per annum steel plant, putting to rest all speculation on the future of the Rs 54,000-crore project, billed as the country's single largest FDI. “The renewal of MoU signed with Posco India in 2005 is being processed and the renewal will be done as per the rules and regulations”, said the state Chief Minister Naveen Patnaik. It may be noted that Posco had inked the MoU with the state government on June 22, 2005 and the tenure of the pact, which was for a period of five years, is set to expire on Tuesday. “The renewal of MoU with Posco is only an official formality. Since work on the project is on, there should not be any difficulty in renewing the MoU with the company”, state minister for industries and steel and mines, Raghunath Mohanty had said on Sunday. Meanwhile, Posco India has sent a formal application to the Orissa government for renewal of the MoU. “The renewal of the agreement is the prerogative of the government”, said a company spokesman. Doubts were cast on the possibility of renewal of MoU with Posco India given the negligible progress made by the South Korean steel major on its Orissa project. The company, which needed 4004 acres of land for its project near Paradip, had failed to acquire even a single acre after five years of signing the MoU mainly due to protests spearheaded by the Posco Pratirodh Sangram Samiti (PPSS), an anti-Posco outfit active at the project site. Land was to be acquired primarily at Dhinkia, Gadakujang and Nuagaon panchayats in Jagatsinghpur district. The state government had recently suggested to Posco to give up 300 acres of private land at Dhinkia in the wake of stiff protests from the villagers there. Even as the socio-economic survey was underway for the Posco project, PPSS has intensified its protest in select pockets. The Chief Minister recently had one round of talks with the PPSS and United Action Committee (UAC), a purportedly pro-Posco outfit, on all the contentious issues pertaining to the Posco project. Subsequent to the talks, the Chief Minister had announced that he will chose an appropriate date for visiting the Posco site. The decision for renewal of MoU with Posco has been taken at a time when the socio-economic survey for the project is underway at the project site. Earlier, official sources had indicated that the state government would renew the MoU with Posco India without any significant change in the terms and conditions of the pact. Though the broad terms and conditions of the pact are unlikely to be altered, the state government will only incorporate a clause which will make it compulsory for the steel major to set up an Industrial Training Centre and absorb locals in its project. Besides Posco India, the state government is also mulling to renew the MoUs with nine more steel players which have made satisfactory progress on their projects but have been grappling with issues like grant of mining lease, availability of water and land acquisition. The state steel and mines department had recently reviewed the project status of all the 49 steel players which have inked MoUs with the state government. The cumulative capacity of all these projects was 83.66 million tonnes, entailing a total investment of Rs 2.3 lakh crore.

(Source:http://www.business-standard.com/india/news/renewalmou-inworksnaveen-patnaik/398969/)

India, China Face Risks and Rewards in Mining Afghanistan

June 22, 2010: With the world abuzz over recent estimates that Afghanistan’s mineral deposits could be worth over US$1 trillion, mining companies are scrutinizing the opportunities to exploit the war-ravaged country’s mineral wealth. India and China are expected to be especially interested in tapping the vast deposits, as a large stake in the reserves will not only guarantee material riches but also regional influence.Afghanistan’s mineral wealth is not a new discovery—geologists have known about its plentiful deposits of iron, copper, lithium and other prized minerals for decades. But the New York Times unveiled an assessment by the Pentagon and U.S. Geological Service early last week that ignited intense interest in Afghanistan’s mining potential, after the report slapped a massive US$1 trillion price estimate on its reserves. Only a day after the New York Times article, the Afghan Mining Minister Wahuidullah Shahrani held talks with his Indian counterpart B.K. Handique to invite India to bid and develop Afghanistan’s mines primarily through iron ore, copper, gold and coal exploration and extraction. “The mining industry is in a nascent stage in Afghanistan and they want to grow it,” said Indian Mining Minister B.K. Handique in a June 17 interview with the Business Standard. “Everybody is now talking of the potential in Afghanistan. We are also equally keen to tap that opportunity. And India is a natural partner for them,” he added.

India, who is friendly with Hamid Karzai’s government, has already invested heavily in Afghanistan’s civilian sector through infrastructure projects like hydroelectricity, road construction, and telecommunications. Government-sponsored scientists from both countries also plan to meet in July to coordinate in areas of mineral exploration, seismotectonics and remote sensing. For its part, China has also made deep inroads into Afghanistan, and with its first mover advantage as a large stakeholder in the existing mines, is poised to be the favorite for developing the country’s “newly discovered” mineral resources. State-owned China Metallurgical Group (CMG) scored the biggest win for China when it won rights to the Aynak copper mine in Logar province with a US$4 billion bid in 2008. This success is reflective of China’s push outwards to ensure a steady inflow of mineral resources. Because they are driven by a coordinated national strategy, China’s investments are less concerned with the risks Western companies turn away from, including a country as struck by war as Afghanistan. “Their concern is for the supply of a commodity, so they are willing to do things at a loss,” said Robert Schafer, executive vice president of Canadian mining firm Hunter Dickinson in a June 17 interview with the New York Times. “I could see the Chinese being willing to make investments in areas where we are unwilling to,” he added. Mr. Schafer’s firm lost its bid to the Aynak mines to China in 2008. India is focusing on trying to translate its goodwill in Afghanistan into economic rewards. In 2009, five Indian companies, including JSW Steel, Rashtriya Ispat Nigam, Essar Minerals, and Vedanta Group’s Sesa Goa joined Chinese companies to bid on the 1.8 billion ton Hajigak iron ore mines nestled in the Hindu Kush Mountains. But a corruption scandal involving the previous Minister of Mines accepting a US$30 million bribe from CMG for the Aynak deal tainted the bidding process, and many international companies pulled out of the bidding. The minister was sacked, and in Jan. 2009 Karzai put a hold on bids for Hajigak. Afghanistan is attempting to bounce back by taking advantage of its newfound PR to woo investors back to a system still rife with problems. A road show on iron ore will be held in London on June 25, where the government will greet 200 companies including Rio Tinto and BHP Billiton in an attempt to showcase the country’s mining exploration potential. “Afghanistan has a lot of untapped mineral resources which we are now inviting big global companies to come and exploit,” said Shahrani in a June 20 interview with the Hindustan Times. As the first bids for iron ore and copper mines open in the next few months, serious concerns about Afghanistan’s lack of infrastructure and legal framework, not to mention the ongoing war, will come to the forefront. “The industry is going to take a look at Afghanistan, but they will weigh their risks carefully,” said Steven Vaughn, a Canadian lawyer and mining expert to the New York Times. “There is every indication that these deposits are very large. But as political risks increase, they will lay off spending.” It remains to be seen just how high these risks can soar before India and China, in their increasingly ravenous search for commodities abroad, can turn away from the tantalizing mineral windfall in Afghanistan.

(Source:http://www.2point6billion.com/news/2010/06/22/india-china-face-risks-and-rewards-in-mining-afghanistan-6103.html)

India to get advanced mining system soon

New Delhi, June 20, 2010: India will soon join an elite league of countries, including Australia and Canada, where investors can apply online for mining rights - getting data on free mineral blocks at the click of a mouse. "We have asked all mineral-bearing states to work in tandem with the Land Resource Department, Ministry of Rural Development, for faster digitisation of cadastral maps (map showing detailed record of land)," Mines Joint Secretary Ajita Bajpai Pande told PTI. The Land Resource Department has provided over Rs 600 crore for the digitisation process while the Mines Ministry has earmarked an initial funding of Rs 21 crore for "computerised on-line register of the Mining Tenement System." Pandey said that all mineral-rich states have been asked to replicate a pilot project carried out at iron-ore rich Bellary in Karnataka and Durg in Chattisgarh to digitise information relating to mining resources, including available blocks. A mining tenement system provides online data of minerals, mines and other valuable information. Once implemented, the online tenement registry will enable any person to see data regarding the status of concessions online on a large scale map, enabling him to apply for vacant areas. "Only a handful of provinces in advanced nations like Australia and Canada currently have the system, which offers all information on mineral concessions," Pande said. The system will be implemented in Goa, Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan and Tamil Nadu. The system has been developed by the Indian Space Research Organisation (ISRO) with the help of the Indian Bureau of Mines (IBM). IBM has designed formats on reconnaissance permits (permits for exploring minerals), prospecting licences and mining leases, and circulated them to all the state governments concerned for a database. The official said that the system would also be useful in checking illegal transportation of minerals with the help of proper records. The magnitude of illegal mining is such that last year, about 42,000 cases were detected in 11-mineral bearing states. The Centre had also appointed a task force as part of a nationwide drive to curb illegal mining in 425 mines. The task force comprised officials from the Indian Bureau of Mines, Geological Survey of India, Indian Space Research Organisation and the National Remote Sensing Centre.

(Source:http://www.hindustantimes.com/India-to-get-advanced-mining-system-soon/Article1-560444.aspx)

Govt making efforts to rein in corruption in coal sector: Jaiswal

Ranchi, June 20, 2010: Union coal minister Sriprakash Jaiswal on Sunday promised to clean up the stain of corruption attached to Coal India Limited (CIL), saying the Centre has already taken strong measures to curb the malpractice. "The Centre has taken the task to put a lid on corruption and is making efforts to erase stain on the coal sector accumulated in thirty years...and there is improvement in checking corruption," Jaiswal told reporters here. He, however, put the blame on the state government alleging that their non-cooperation had hindered the process of completely rooting out corruption.  "You have seen a dozen raids by the CBI (related to coal sector) in the last one year. You can also clearly see the Centre's determination to curb corruption. But we are not getting much help from state government's required in this regard.  "Our coal companies are every day filing FIRs on theft and illegal mining, but there is no steps from the state government in this regard...as law and order is with the state," he said.  Recently the CBI had raided the premises of a high-ranked official from the Central Coalfield Limited (CCL) in Ranchi.  Jaiswal said he would meet Jharkhand Governor M O H Farook and make efforts to solve some of the law and order problems faced by the coal sector in the state. Meanwhile, the minister warned that coal blocks of those using them for making money would be cancelled. "After reviewing the allotment of coal blocks, three coal blocks have been cancelled as they have taken to earn money," he said. After a detailed study, the ministry could cancel more such blocks, he added. On inadequate number of coal depots in various states, Jaiswal said it was the responsibility of the states to set up depots and use their own infrastructure.

(Source:http://timesofindia.indiatimes.com/india/Govt-making-efforts-to-rein-in-corruption-in-coal-sector-Jaiswal/articleshow/6072528.cms)

Form panels on illegal mining: Centre tells states

New Delhi, June 20, 2010:The Centre has asked all state governments to constitute high-level committees to crack down on illegal mining and intensify the drive against the menace. "In the wake of a large number of illegal mining cases coming to the fore, we have asked all states to immediately constitute coordination-cum-empowered committees," Mines Secretary Santha Sheela Nair said. She said that these committees, in line with a similar panel at the Centre, would prepare action plans to prevent illegal mining. So far, only nine states -- Andhra Pradesh, Chhattisgarh, Gujarat, Goa, Karnataka, Maharashtra, Orissa, Rajasthan and West Bengal -- have constituted committees to address issues such as illegal mining and faster processing of mineral concessions. The states were told that the committees should be headed by either chief secretaries or additional chief secretaries. At present, there are not enough legal provisions for Central intervention in illegal mining across the states, while the magnitude of the problem is so great that as many as 42,000 cases were detected in 11-mineral bearing states last year. The Centre has asked the states to report all instances of illegal mining and use satellite imagery to detect such activities. It had also asked for cells to be set up to monitor price trends, as a spurt in prices is usually linked to increased illegal mining activities. "We have directed states to set up cells to monitor iron and manganese ore prices, as a spurt in prices often indicates an increase in mining activities. We have found that a lot of mining takes place using legal licenses for mining in areas other than specified," Nair said. The states have also been asked to track the movement of vehicles carrying minerals, and use bar codes and holograms on transport permits. Other directions, she said, include the collection of information from ports, customs authorities and the Ministry of Commerce on export of ores and compulsory registration of all end-users to check payment of royalty before purchase of ores. The state governments have also asked to finalise mineral concessions faster. Nair said that though the move to curb illegal mining may result in a slight dip in iron ore production, it would increase in time due to the opening of new mines. The country produced 226 million tonnes of iron ore in the last fiscal. Meanwhile, a provision that has been added to the new mining legislation states that anyone found guilty of illegal mining will be debarred from doing it anywhere in the country.

(Source:http://www.hindustantimes.com/Form-panels-on-illegal-mining-Centre-tells-states/Article1-560446.aspx)

'Scrap subsidies on petroleum, coal-based energy resources'

Panaji, June 20, 2010: Leading industrialist Jamshyd Godrej has called for a paradigm shift in India's approach vis-a-vis tax and subsidy structures related to petroleum and coal-based energy resources. Speaking to IANS on the sidelines of the annual general body meeting of the Goa Chamber of Commerce and Industry Saturday, Godrej, a special invitee at the do, said the Gulf of Mexico oil spill ought to serve as a reminder to the world that petroleum-based economy has its limitations. "We need a paradigm change in our approach to petroleum and coal. The tax structures and subsidies to petroleum products need to be re-looked at," said Godrej, the chairman and managing director of the Godrej and Boyce Manufacturing Company Ltd. "The entire subsidy structure needs to be reversed. Instead of providing subsidies to petroleum and coal-based energy resources, these sectors should be taxed and subsidies should instead be granted to renewable energy resources and practices," Godrej said. He said the Gulf of Mexico oil spillage had only confirmed that there was no way to control disasters triggered while exploiting petroleum-based energy sources. Known for his environmental pursuits, Godrej, a former president of the World Wide Fund for Nature (WWF), India, said a novel pilot project involving usage of renewable energy resources being carried out by the Confederation of Indian Industry (CII) and the US-based Rockefeller Foundation in India, could serve as an eye opener as far as the importance and practicality of non-renewable energy resources are concerned. "The lakhs of mobile phone towers in rural India are presently operated using diesel generator sets. What the CII project aims to do is run these towers using locally generated power from renewable resources," Godrej said. He said such 'green' mobile towers could help India save billions of dollars in petroleum-based fuel, otherwise needed to keep the mobile phone towers running.

(Source:http://economictimes.indiatimes.com/news/economy/policy/Scrap-subsidies-on-petroleum-coal-based-energy-resources/articleshow/6070688.cms)

Mines give a headache

New Delhi, June 19, 2010: The Prime Minister’s Office is setting up an inter-ministerial committee to assess the impact of the environment ministry’s order designating certain coal bearing areas as “no-mining” zones on steel and power plants. The Tata group, the Chhattisgarh mega power project, Hindustan Zinc and Prakash Industries are among those affected by the decision. The steel, power and coal ministries have told the PMO that the decision would hit big-ticket projects that would turn defunct without raw material supplies that had been allotted to them before the environment ministry’s order was issued. The environment ministry has divided forests into go and no-go areas, depending on the forest cover.  The move has drawn a flurry of protests not only from industry but also from miner Coal India, which could find much of its mining area reduced and its stock value eroded because of the move. Coal India is coming out with a public issue soon to raise Rs 12,000 crore from the sale of a 10 per cent equity.  Several state chief ministers are opposed to the move. Gujarat chief minister Narendra Modi is believed to have written to Prime Minister Manmohan Singh seeking his intervention in a coal block in the Hasdeo Arand region, that has been designated as a “no-go” area. The coal ministry is also planning to set up a high-powered committee to deal with the environmental hurdles in mine allocation. The committee will assess the scope of Coal India in the “no-go” areas. The environment ministry’s classification is expected to put 619 million tonnes of coal production annually out of reach. Till now, the environment ministry has analysed forest cover in nine coalfields.

(Source: http://www.telegraphindia.com/1100619/jsp/business/story_12582377.jsp)

Indian mining cos hit a roadblock, can't take out Afghanistan ores

New Delhi, June 19, 2010: Pakistan's India blockade and an international sanctions regime in Iran may put a spanner in Indian companies' drive to exploit the mineral bonanza in Afghanistan. Afghanistan's geological wealth is not new. But Indian companies extracting minerals face a unique problem: taking the stuff out of the country. Pakistan refuses to let Indian goods travel through its territory. The other way out is Iran, but Indian multinational companies are wary of getting in there and incurring the wrath of the US. Only a few companies like L N Mittal's Arcelor or Anil Agarwal's Vedanta, with their Central Asian interests, have a fighting chance of being able to utilize this wealth. They will have a chance when the Afghan government once again opens up the Hajigak iron ore mines for bids next week. While India enjoys enormous goodwill in Afghanistan, which has increased substantially in the past decade as India has invested heavily in Afghanistan's civilian sectors, translating this into economic equity is more difficult for India than, say, China, which is making a huge push into tapping Afghan mineral resources, as part of its global push. The Karzai government clearly wants to be more even-handed. The Afghan government postponed bidding on these mines earlier this year, after many international companies, including Indian, pulled out, leaving only one Chinese company in the fray. China could end up as the biggest beneficiary of Afghanistan's mineral finds. Nevertheless, for Afghanistan and the world to benefit, the war has to end. But despite western commentaries that this may be "crunch time" in Afghanistan, the less-than-optimal results of the US-led war effort tells a very different story.

(Source:http://timesofindia.indiatimes.com/India/Indian-mining-cos-hit-a-roadblock-cant-take-out-Afghanistan-ores/articleshow/6065861.cms)

Jaiswal: MoEF nod delay hits growth

Lucknow, June 18, 2010: Union minister of state for coal, Sriprakash Jaiswal, has said that delay in environment clearance was hampering the growth of coal production in the country. Talking to reporters here on Friday, the minister said that though the concern of the environment ministry was justified, he had made certain suggestion to remove the roadblocks. "We have mooted a proposal under which we can enter a ten-year agreement for land given to us for mining and in return, we will create a forest cover that is three to four times the size of the land allotted to us.Meetings with the concerned authorities are underway and we hope of a positive outcome very soon," he said and emphasised the need for creating an alternative strategy on the issue. Mr Jaiswal said that coal production had registered a 8 per cent growth in the past one year. “This is despite the fact that there are serious law and order problems in the coal producing states. Bandhs are the order of the day in these states that are grappling with Naxal and Maoists trouble. Coal is also being stolen but we have still maintained our growth,” he stated. The minister said that the Coal India’s IPO had been approved and was likely to be open for issue in September-October. “Disinvestment will be 10 per cent, of which one per cent shares will be set aside for employees of Coal India and its subsidiaries. We will have a special scheme for small investors under which they will be entitled for a 5 per cent discount. Employees of Coal India also come under this category,” he explained.

(Source:http://epaper.asianage.com/ASIAN/AAGE/2010/06/19/ArticleHtmls/19_06_2010_003_005.shtml?Mode=1)

Many projects awaiting ecology nod: Union Minister

Lucknow, June 18, 2010: Union Minister of State for Coal Shri Prakash Jaiswal has said that several projects have been delayed or put on hold on account of no environmental clearance from the Ministry of Environment and Forest. The Union Minister said that a proposal has been made to the Environment Ministry under which a massive tree plantation drive would be initiated on three-fourth of the land acquired by the Coal Ministry for the execution of the expansion projects. “The agreement would be for 10 years”, Mr. Jaiswal told reporters here on Friday. He said despite the adverse circumstances, coal production in the country has registered an increase of 8 per cent. Mr. Jaiswal said the coal producing States have been battling law and order problems like Naxalite activities. Coal officials posted in these States have either been kidnapped or murdered and there have also been reports of coal theft, the Minister added.

Defends disinvestment

Mr. Jaiswal defended the disinvestment of the profit-making Central public sector undertaking, Coal India Limited , by stating that it would ensure transparency and enhance performance. According to the Minister, Coal India has recorded a profit of Rs. 38,000 crore. The disinvestment proposal recently approved by the Manmohan Singh Cabinet entails 10 per cent disinvestment of Coal India, of which 1 per cent share would be reserved for the Coal India subsidiaries and its employees. Mr. Jaiswal said the IPO would be launched either in September or October 2010 with the money generated from the share market to be spent on welfare schemes for the poor and deprived sections. He said coal was being imported from South and East Africa, Indonesia and Malaysia for fulfilling the country's coal needs. Two coal blocks in Mozambique have also been bought, Mr. Jaiswal said. The Union Minister said 55 per cent of India's energy requirements were dependant on coal and this dependence would increase in the future.

(Source:http://www.hindu.com/2010/06/19/stories/2010061960260700.htm)

Miners may get some flexibility in offering relief to displaced

New Delhi, June 18, 2010: The government could dilute a clause in a draft legislation that requires miners to offer a 26% stake to families losing land to projects so that companies have more flexibility while providing relief. Senior officials of the mines ministry, the authors of the draft Mines and Minerals Development and Regulation Bill, 2009, are considering merging the schemes on annuity payout and equity offering so that companies can choose between the two. “The proposal in the draft MMDR Bill to offer 26% equity out of the promoters quota creates problems for companies having large operations and a consolidated corporate structure,” said a mines ministry official who asked not to be named. Handing companies a choice is more workable than the stake offering option, which may not go down well with everyone, he added. The present draft of the MMDR Bill proposes an annual compensation separately by way of allotment of free shares equal to 26% in the company through the promoter’s quota in case the holder of the mining lease is a company, or an annuity equal to 26% of the profit after tax if the lease owner is a person. Under the new proposal on the mines ministry’s table, annuity payout to those losing land will be fixed before start of operations and companies would be asked to provide this benefit either as a cash payout or equity shares or a mix of both. The changes are proposed to be included in the draft after a Group of Ministers (GoM) headed by Pranab Mukherjee completes discussions on all the provisions of the new legislation, the official added. “The changes will save us from complications emerging from the proposal that mandates 26% equity payout, which can be done only by carving each mining operation into a separate company and then offering shares to the affected families,” said an executive of a leading private miner. The draft MMDR Bill’s compensation formula is besides the regular benefits that an affected family avails under the government’s rehabilitation and resettlement (R&D) policy. The government has also mandated that compensation should be finalised in advance and payment should start without delays or wait for commencement of mining operations. The Bill also provides that mining companies would pay an additional compensation to people who lose land after suspension or termination of operations. In case the licensee or lessee fails to pay the compensation within three months thereafter, the state government may either forfeit the security deposit and make payments from it. It could also recover the amount and declare the company ineligible for further concessions.

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

Stop illegal sand mining from South Pennar river

Krishnagiri, June 18, 2010: All India Anna Dravida Munnetra Kazhagam (AIADMK) has demanded immediate stoppage of unmindful and illegal sand mining from South Pennar river. It asked authorities concerned to initiate action against sand smugglers immediately. Illegal sand mining affects agriculture severely. During the AIADMK regime, mining was under the government's control, but now every rule is flouted by miners in collusion with the powers-that-be, said O. Panneerselvam, treasurer and former Chief Minister here on Friday. Presiding over the demonstration in front of the Revenue Divisional Office on old Bangalore Road, Mr. Panneerselvam said, during the DMK regime, sand from South Pennar and Vaigai rivers were illegally mined. He said because of unmindful sand mining, water flow in the river was badly affected, and in many places drainage water contaminates and pollute the river. Drinking water drawn from bore wells sunk on the river bed was also contaminated because of pollution. The drinking water drawn from the bore wells is supplied without purifying it resulting in serious health hazards to people who are already affected by high level of fluoride content in the ground water. Besides this, illegal granite mining is continuing. Leaseholders of granite mines are indulging in illegal mining, thus resulting huge loss to the government exchequer. Mr. Panneerselvam said the DMK government has failed to give good governance in the state. During the AIADMK rule , the total debt burden of the state stood at Rs. 59,000 crore. Now it has increased to Rs. 99,000 crore. The DMK Government is paying Rs. 20 crore a day towards interest. The government has failed to solve the water sharing agreements with neighbouring states, he said. K.P. Munusamy, former MP, and presidium president of the district; C.V. Rajendran, district secretary; D. Ravindran, district secretary, CPI (M); Govindan of Communist Party of India among others participated in the demonstration. Earlier, a rally was taken out. In spite of severe warning by P. Sivanandi, Inspector General of Police, West Zone, party activists came to participate in the demonstration in goods carriers.

(Source:http://www.hindu.com/2010/06/19/stories/2010061954850300.htm)

State response on CEC report by month end

Kolkata/ Bhubaneswar, June 18, 2010: To accept most of CEC's recommendations. The Orissa government will file its response to the interim report of the Central Empowered Committee (CEC) of the Supreme Court in connection with a case relating to illegal mining operations in the state by the end of this month. It may be noted that the CEC submitted its interim report to the Supreme Court on April 26, 2010 with a set of recommendations pertaining to check illegal mining activities in Orissa.  “We will accept most of the recommendations made by the CEC and will file our response by the end of this month”, a highly placed official source told Business Standard. On May 8 this year, the green bench of the Supreme Court had directed the Orissa government to implement the recommendations of the CEC, which are acceptable to it, immediately. At the same time, the Court had expressed happiness over the willingness and readiness of the state government in accepting the recommendations. The direction of the court followed the submission made by the Orissa government that the CEC recommendations in general are acceptable to it. The court had also allowed six weeks to the state for filing its detailed response after hearing the matter. In its 85-page interim report, the CEC had pointed out that there was rampant illegal mining in Orissa. The CEC had inferred that illegal mining was going on for a long time in violation of the forest conservation act, air and water act and various norms of environmental clearance. The CEC had highlighted these issues in its interim report submitted to the Apex court. The findings of the CEC are based on the submissions made by the applicant and the Orissa government in the matter. The CEC report also mentioned that the production level in many mines was above the quantity approved in the mining plan (MP).

(Source:http://www.business-standard.com/india/news/state-responsecec-report-by-month-end/398646/)

Quarrying despite SC ban in U’khand

Dehradun, June 18, 2010: In brazen violation of the Supreme Court’s directive that effectively bans quarrying and allows only silt deposits along Uttarakhand’s numerous rivers to be lifted, state government-run agencies are busy digging along the ecologically fragile areas adjoining Ganga’s tributaries like Alaknanda, Bhagirathi, Mandakini, as well as Pindar, Yamuna, Nandhor, Gaula, and Saung. Worse, this illegal quarrying is taking place inside reserve forests across Uttarakhand, including the seismically-sensitive Doon valley and the Terai, despite the Uttarakhand HC’s stay order on June 4, 2009, in deference to the SC order. The excavation also falls foul of norms laid down by the Union ministry of environment and forests. Illegal quarrying can change the course of Himalayan rivers and wreak havoc on its fragile ecosystem.

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

Orders on lifting of stock in BIOL mines stayed

New Delhi, June 17, 2010:  The Supreme Court on Wednesday stayed the interim orders passed by the Andhra Pradesh High Court permitting the Bellary Iron Ore Ltd (BIOL) to lift the iron ore stock in the mines available as on December 22, 2009. A vacation Bench of Justice Deepak Verma and Justice K.S. Radhakrishnan stayed the orders on special leave petitions filed by the Andhra Pradesh government challenging the two orders. The Bench directed the appeals to be listed before the Forest Bench along with other appeals relating to the mines of Reddy brothers.

BIOL petition.

The BIOL had filed a petition in the High Court for a direction not to interfere with the trading activity of the petitioner, viz transportation of the processed iron ore (existing stock or future stock which might be procured) from the Obulapuram mines without reference to the prohibitory orders contained in the government order dated November 25, 2009. A Division Bench of the High Court on February 18 permitted the petitioner to lift the stocks available on making a fixed deposit of Rs. 1.50 crore in the custody of the Registrar (Administration). On behalf of the State it was submitted that upon verification it was found that there were major discrepancies with regard to the quantities in the stockyard as well as their source which happened to be BIOL itself. The State wanted to quash the impugned orders and an interim stay of their operation.

(Source:http://www.hindu.com/2010/06/17/stories/2010061762120600.htm)

GoM set up to ensure transparency in mining

New Delhi, June 16, 2010: Upset with the stiff inter-ministerial differences continuing to derail its efforts in bringing about greater transparency in the mining sector by streamlining the grant of mineral concessions, the Centre today constituted a Group of Ministers (GoM) to iron out the wrinkles. The 10-member GoM to be headed by Finance Minister Pranab Mukherjee is expected to contain the bitter turf war between the law, mines and steel ministries, who have been voicing their own views on the sector rendering the introduction and passage of the Mines and Minerals (Development and Regulation) Act 2010 nearly impossible. The Terms of Reference of the GoM is to examine the draft MMDR Bill and submit its recommendations. The ordeal on the Draft MMDR Bill 2010, began with the steel ministry launching a no-holds-barred war against the mines ministry nearly 4 months ago arguing that the latter's move to forsake the system of according prior approval would trigger serious trouble for the mining sector and the mineral-rich states would then be at liberty to grant mineral concessions on their own. The mines ministry firmly held its ground contending that the prior approval mechanism did not serve any purpose and in fact it had to only decide on granting approval to those proposal forwarded by the state governments. Moreover, it failed to address the perpetual problem of delay in granting mineral concessions besides eroding the power of revision by making the Centre a party to the original decision. In fact the matters reached to such a pass that steel minister Virbhadra Singh in a letter reminded his mines counterpart B K Handique that iron ore was the lifeline of the steel industry and has got no use other than steel utilities. “If Mines Ministry is finding it difficult to regulate and manage the process of granting of prior approval of mineral concessions for major minerals, Steel Ministry will be willing to accept taking over this function of grant of prior approval for mineral concessions for iron ore, chrome ore and manganese ore, if the procedure of prior approval is continued,” he wrote. Then both the ministries fought over the on the sensitive issue of reserving iron ore-bearing areas for the metal PSUs. Mines ministry officials maintain that that reservation of mineral bearing areas for PSUs had number of glaring drawbacks and that “reservation powers go against the principles of a level-playing field, more so against the spirit of Hoda Committee’s recommendations.” But Singh pitched for reserving “specified quantity of mineral resources in favour of PSUs (mining as well as end-users) through the government dispensation route as they “needed continued support in larger public interest.” As if this wasn't enough, the Law Ministry too jumped into the fray by endorsing the contention of the steel ministry that there was an express need spell out measures in the Draft Bill to contain exports of iron ore by ensuring its conservation. It wrote to Mines Ministry asking it to re-christen the legislation as Mines and Minerals (Conservation, Development and Regulation) Bill 2010. “The legislative department is of the view that the country is likely to lose mineral wealth forever if large scale exports are permitted and for this reason conservation of minerals is to be taken into account. For this reason it has suggested that the title of the draft Bill be re-christened to Mines and Minerals (Conservation, Development and Regulation) Bill 2010,” a law ministry official said.

(Source:http://www.indianexpress.com/news/gom-set-up-to-ensure-transparency-in-mining/634446/0)

Indian firms, Rio, BHP keen on developing Afghanistan mines

New Delhi, June 16, 2010: Afghanistan today said Indian mining companies and global majors like Rio Tinto and BHP Billiton are keen to develop the war-torn country’s mineral resources, estimated at $1 trillion. After calling on Indian Mines Minister B K Handique, visiting Afghanistan Mines Minister Wahidullah Shahrani told PTI, “Indian and global companies like Rio Tinto and BHP Billiton are keen to develop mines in Afghanistan.” Taking its plans forward, Afghanistan will launch a road show in London later this month in which 200 companies, including Rio Tinto, BHP Billiton, Vale and many Indian ones, are expected to attend.  “We will invite bids for development of mineral deposits in the country in the next few months,” Shahrani said, adding that the mineral wealth in Afghanistan was valued at approximately $1 trillion. He sought India’s assistance for exchange of know-how and expertise in the mining sector, besides help from the Geological Survey of India for mapping its resources. “Afghanistan is rich in minerals like iron ore, copper, cobalt, chromite and the whole country is yet to be fully explored,” he said. Indian firms like Essar had earlier evinced interest to bid for iron ore mines in Afghanistan when the government there had invited a global expression of interest (EoI) for its Hajigak mines, said to be having 1.8 billion tonnes of reserves. The country’s iron ore deposits are estimated at between five and six billion tonnes. An Essar official, however, when contacted said the company had participated in the EoI, but did not receive any response.

(Source:http://www.business-standard.com/india/news/indian-firms-rio-bhp-keendeveloping-afghanistan-mines/398394/)

$1-trillion mineral wealth in Afghanistan

Kabul, June 15, 2010: Afghanistan has nearly one trillion dollars in mineral deposits, according to a U.S. study, but there are doubts the war-torn and graft-prone country can manage the windfall offered by the untapped riches. President Hamid Karzai said in January that the deposits could help the war-ravaged nation become one of the richest in the world, based on preliminary findings of the United States Geological Survey. The final results, reported in the New York Times on Monday, found previously unknown reserves of lithium, iron, gold, niobium, cobalt and other minerals that the paper said could transform Afghanistan into a global mining hub. “The natural resources of Afghanistan will play a magnificent role in Afghanistan's economic growth,” Jawad Omar, spokesman for the country's Ministry of Mines and Industries, told AFP. “The past five decades show that every time new research takes place, it shows our natural reserves are far more than what was previously found,” he said. Afghanistan's potential lithium deposits are as large of those of Bolivia, which currently has the world's largest known reserves of the lightweight metal, the Times said. There is ever-growing demand for lithium, which is used to make batteries for everything from mobile phones and cameras to iPads and laptops. Future growth in electric and hybrid cars could create still more demand. Afghanistan has so much of the metal that it could become the “Saudi Arabia of lithium”, according to an internal Pentagon memo quoted by the New York Times.

Potential top producer

The iron and copper deposits are also large enough to make Afghanistan one of the world's top producers, U.S. officials said. “There is stunning potential here,” General David Petraeus, head of the U.S. Central Command which oversees Afghanistan, told the newspaper. “There are a lot of ifs, of course, but I think potentially it is hugely significant. Little has been exploited because the country has been mired in conflict for three decades, and is today embroiled in a vicious insurgency by Islamist rebels led by the Taliban. The country would have to find a way of bringing the minerals to markets but its infrastructure is rudimentary, with only one national highway connecting north to south and its ramshackle roads often targeted by Taliban bombs.

(Source:http://www.hindu.com/2010/06/15/stories/2010061556141600.htm)

Afghanistan, the new mineral chest

Washington, June 15, 2010: The United States has discovered nearly $1 trillion in untapped mineral deposits in Afghanistan, far beyond any previously known reserves and enough to fundamentally alter the Afghan economy and perhaps the Afghan war itself, according to senior American government officials. The previously unknown deposits — including huge veins of iron, copper, cobalt, gold and critical industrial metals like lithium — are so big and include so many minerals that are essential to modern industry that Afghanistan could eventually be transformed into one of the most important mining centres in the world, the officials believe. An internal Pentagon memo, for example, says Afghanistan could become the “Saudi Arabia of lithium,” a key raw material in the manufacture of batteries for laptops and BlackBerrys. The vast scale of Afghanistan’s mineral wealth was discovered by a small team of Pentagon officials and American geologists. The Afghan government and President Hamid Karzai were recently briefed, American officials said. While it could take many years to develop a mining industry, the potential is so great that officials and executives in the industry believe it could attract heavy investment even before mines are profitable, providing the possibility of jobs that could distract from generations of war. “There is stunning potential here,” Gen. David H. Petraeus, commander of the US Central Command, said in an interview on Saturday. “There are a lot of ifs, of course, but I think potentially it is hugely significant.” The value of the newly discovered mineral deposits dwarfs the size of Afghanistan’s existing war-bedraggled economy, which is based largely on opium production and narcotics trafficking as well as international aid. Afghanistan’s gross domestic product is only about $12 billion.  “This will become the backbone of the Afghan economy,” said Jalil Jumriany, an adviser to the Afghan minister of mines.  The Pentagon task force has already started trying to help the Afghans set up a system to deal with mineral development. International accounting firms that have expertise in mining contracts have been hired to consult with the Afghan Ministry of Mines, and technical data is being prepared to turn over to multinational mining firms and other potential foreign investors. The Pentagon is helping Afghan officials arrange to start seeking bids on mineral rights by next fall. “The Ministry of Mines is not ready to handle this,” said Paul A. Brinkley, deputy undersecretary of defence for business and leader of the Pentagon team that discovered the deposits. “We are trying to help them get ready.” So far, the biggest mineral deposits discovered are of iron and copper, and the quantities are large enough to make Afghanistan a major world producer of both. Other finds include niobium, a soft metal used in producing superconducting steel, and large gold deposits in Pashtun areas of south Afghanistan. Just this month, American geologists working with the Pentagon team have been conducting surveys on dry salt lakes in western Afghanistan where they believe there are large deposits of lithium. Officials said their initial analysis at one location in Ghazni province showed the potential for lithium deposits as large of those of Bolivia, which now has the world’s largest known lithium reserves.

(Source: http://www.indianexpress.com/news/afghanistan-the-new-mineral-chest/633821/0)

5 Indian firms to bid for Afghan mines

New Delhi, June 15, 2010: China has first-mover advantage but India stands to gain hugely in Afghanistan if its apparently huge mineral deposits are ready to be tapped. As reports spread about Afghanistan’s untold mineral wealth, five Indian companies are among seven that have been shortlisted by Kabul to bid for huge iron ore mines there. Afghanistan’s mineral riches are nothing new — despite US media reports highlighting a $1 trillion mineral and rare metals finds in Afghanistan as “unknown”. These reports come at a time when Afghan war officially surpassed Vietnam as America’s longest war. China won the Aynak copper mines in an international bid in Afghanistan in 2008 for a whopping $4 billion. In 2009, the US Geological Survey told the Hamid Karzai government that Afghanistan, one of the poorest countries in the world fighting one of the deadliest wars, was sitting on huge deposits that could transform the country in a way currently unimaginable. In 2009, Karzai sent out senior cabinet ministers across countries to scout for investment. His then minister for mines Mohammed Ibrahim Adel told foreign investors that according to the USGS, Afghanistan’s north is estimated to hold between 600 to 700 billion cubic metres of natural gas and the country has some 25 million tonnes of oil in four basins. Adel was later removed by Karzai on account of rumours that he had made $20 million from the Chinese Metallurgical Corporation for the Aynak deal. Afghanistan’s iron ore deposits are estimated at between five to six billion tonnes. In 2009, five Indian companies, Vedanta group’s Sesa Goa, Essar Minerals, Ispat Industries, JSW Steel and Rashtriya Ispat Nigam joined Chinese companies for a bid on the 1.8 billion tonne Hajigak iron ore mines in the Hindu Kush mountains. In January 2010, the Karzai government put the bids on hold as corruption concerns took over. In fact, the iron projects will have to be bid for again for the same reason. But the promise of Afghanistan’s wealth may make the war a bit more palatable to western governments which are chafing at the bit in their desire to pull out troops from what seems like an unwinnable war.

(Source:http://timesofindia.indiatimes.com/India/5-Indian-firms-to-bid-for-Afghan-mines/articleshow/6048502.cms)

Probe panel for coal mines

New Delhi, June 15: The coal ministry plans to set up a high-powered committee to deal with the environmental hurdles in mine allocation. “The high powered committee will study the problems faced in coal mines allocation,” coal minister Sriprakash Jaiswal said.  He said the committee would be set up in the next 15 days to assess the scope of Coal India activities in “no go” areas earmarked by the ministry of environment. The coal ministry will ensure that the impact of CIL’s projects in such areas was minimal, Jaiswal said. He said it would also look into the issue of mines that had been allocated but were flagged off by the environment ministry as they included forest land. One of the immediate fallout of the difference between the coal and environment ministries has been the delay in the bidding process for the 4000 mega watt mega power project in Chhattisgarh. The request for qualification (RFQ) for the project has been delayed as there was no environment clearance for coal block allocation. The RFQ was to be issued on July 5. The environment ministry has demarcated areas as “go” or “no go” for mining and the block for the Chhattisgarh project, at Surguja, falls in the “no go” area. The environment ministry has classified 30 per cent of the area in nine coal fields as “no go” zones for mining. The coal ministry has sought the Prime Minister’s intervention to remove the roadblock. The environment ministry’s classification will put 619 million tonnes of coal production annually out of reach. The nine coal fields are North Karanpura and West Bokaro (Jharkhand), IB Valley (Orissa and Chhattisgarh) Singrauli (Madhya Pradesh and Uttar Pradesh), Talcher (Orissa), Wardha (Maharashtra), Mandirgarh and Hasdeo (Chhattisgarh) and Shoagpur (Chhattisgarh and MP). According to the mid-term appraisal of the Planning Commission, domestic industry will need to buy more foreign coal assets as the demand-supply gap will shoot up to 200 million tonnes by the end of 2017. CIL and NTPC, the country’s largest power generator, are looking to import coal or acquire stakes in coal mines in Australia, Indonesia, the US, Mozambique and South Africa.

(Source:http://www.telegraphindia.com/1100616/jsp/business/story_12570826.jsp)

New township near Belgarhia

- JRDA focuses on speeding up rehabilitation process

Dhanbad, June 14, 2010: More people can now look forward to safer homes.  After successfully shifting more than 200 people from underground fire affected areas of Jharia Coalfield region to Belgarhia, Jharia Rehabilitation Development Authority (JRDA) has now shifted its focus towards creating another township near Belgarhia. The new township would be established on a 50 acre BCCL plot situated adjacent to Belgarhia in Baliapur block of the district. A proposal for the same would soon be sent to Bharat Coking Coal Limited as decided in the board meeting of JRDA at Hazaribagh on Saturday. Notably, Belgarhia is the pilot project of the Rs 7028 crore Jharia master plan, under which about 2000 families are to be shifted from the dangerous areas of Jharia coalfield region to the 2352 newly built quarters in Belgarhia. JRDA superintendent Engineer Narendra Kumar said land provided by the BCCL would help to speed up process of rehabilitation as all the 2352 quarters are expected to be occupied before July 15. Kumar said the shifting to the new colony would be comparatively easier as people would be able to enjoy basic infrastructure such as schools, hospitals and markets before the development of same at their own colony.  Meanwhile, North Chotanagpur commissioner A.K. Pandey who is also the chairman of JRDA is likely to lay the foundation stone of the Rs 1.37 crore tailoring training cum garment manufacturing centre at Belgarhia on June 25. The primary school of the colony would also be inaugurated the same day. The tailoring centre would provide employment to more than 600 people of the colony. Job cards under Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGS) and red cards as per BPL scheme would also be distributed among the people on the occasion.

(Source:http://telegraphindia.com/1100615/jsp/jharkhand/story_12566380.jsp)

Mineral deposits worth $ 1 trillion found in Afghanistan

New York, June 14, 2010: In what might transform the Afghan economy and change the direction of the war, geologists have discovered nearly USD 1 trillion in untapped mineral deposits in the country, exceeding all previous expectations. The discovery include huge deposits of iron, copper, cobalt, gold and lithium. The discovery is so big that it might turn Afghanistan into one of the biggest mining centres in the world, and could fundamentally transform the Afghan economy and the war itself, senior US officials said. An internal Pentagon memo states that with the realisation of the potential of the minerals, Afghanistan could become the "Saudi Arabia of lithium," a key raw material in the manufacture of batteries for laptops and Blackberries, the New York Times said. Setting up a mining industry could still take time but the vast reserves are expected to attract huge investments even before mines are profitable, which could lead to creation of jobs and fundamentally change the direction of the war. "There is stunning potential here," Gen David H Patreus, commander of the US Central Command, told the paper. "There are a lot of ifs, of course, but I think potentially it is hugely significant". Afghan President Hamid Karzai has recently been briefed on the findings, which was made by American geologists and Pentagon officials. "This will become the backbone of the Afghan economy," said Jalil Jumriany, an adviser to Afghan minister of mines. But, at the same time, the new discovery could lead the Taliban to fight even harder to regain control over the area and the newly discovered mineral deposits. Already rampant corruption inside Afghan government could also escalate along with a tug-of-war between the authorities in Kabul and provincial tribal leaders. The Times pointed out that the national mining law has not yet been seriously challenged. "No one has tested that law; no one knows how it will stand up in a fight between the central government and the provinces," said Paul A Brinkley, undersecretary of defense and leader of the Pentagon team that discovered the deposits. There is a very real possibility that China will dominate the development of the Afghan mineral deposits, which the US will guard against because of its heavy investment in the region.  

India, which has invested USD 1.3 billion in building vital civil infrastructure, develop human resources and capacity in areas of education, health, agriculture, rural development, also has high stakes in the country. During the visit of Foreign Minister S M Krishna to Washington, earlier this month, top US diplomats including Secretary of State Hillary Clinton welcomed India's role in the reconstruction and development projects. "Both sides pledged to explore opportunities for coordination on civilian assistance projects that advance Afghan self-sufficiency and build civilian capacity," a joint statement said. "Afghanistan's success is vital for the security and stability of the region". Another concern is the lack of know-how in Afghanistan about environment protection. "The big question is, can this be developed in a responsible way, in a way that is environmentally and socially responsible?" Brinkley said. "No one knows how this will work".

(Source:http://www.hindustantimes.com/Mineral-deposits-worth-1-trillion-found-in-Afghanistan/Article1-557393.aspx)

Over 60% Orissa mines don't have clearances

New Delhi, June 14, 2010: Is it possible to operate hundreds of illegal mines in India for years on end without being detected or prosecuted? And can their illegal operations be legitimised in one stroke and turned into "legit" business without anyone being booked for the stealthy extraction of millions of tonnes of precious ore?

If the questions pertain to Orissa, the answer to both questions is yes. The Supreme Court-appointed Central Empowered Committee (CEC) has found that 215 out of 341 working mines — or more than 60% — in Orissa are operating without statutory central government clearances. Even more shockingly, some mines have been in business for years without even submitting a statutory mining plan to authorities.  Fifteen of these mines have been operating without clearances for more than 20 years while 17 operators have done so for 15-20 years. Another 38 mines have existed illegally for 10-15 years and 65 for 5-10 years. The other "illegal" 80 mines have operated for one-five years without proper clearances.  What is even more shocking is that the state government and officials seem to have been aware of the mines in question, winking at the flagrant state-wide violation of laws by hiding behind a loophole in the Mines and Minerals (development and regulation) Act 1957.   This is how the scheme works: If a mine operator applies for renewal of a lease within prescribed time, then under Rule 24A(6) of the Minerals Concession Rules 1960 — introduced in 1994 — the lease is automatically 'deemed' to have been extended till the state government actually deals with the applications.

(Source:http://timesofindia.indiatimes.com/india/Over-60-Orissa-mines-dont-have-clearances/articleshow/6044667.cms)

Coal ministry urges MoEF to expedite clearances

Bhubaneswar June 12, 2010 : With delay in the grant of environmental and forest clearances slowing the expansion of coal mining projects, the coal ministry has urged the Ministry of Environment and Forests (MoEF) to expedite these clearances. The coal ministry has pointed out the time period for environment and forest clearances stands at 210 days and 150 days, respectively, while the actual approvals take 3-6 years. The coal ministry has asked MoEF to provide both environment and forest clearances within the stipulated timelines so that state-owned coal companies, like Coal India Ltd (CIL) and Singareni Collieries Company Ltd, could scale up their coal output significantly.  It has suggested a representative of the coal ministry can be included in the Forest Advisory Committee to facilitate the approval process for coal projects. The ministry has also requested MoEF to draw up the standard Terms of Reference (ToR) for opencast and underground coal mines to reduce the time taken in the preparation of Environment Management Plan (EMP). The coal ministry is of the view that Temporary Work Permission (TWP) could be granted for increase in production capacity till the revised EMP for higher capacity is submitted for the ongoing coal mine projects. The time required for data generation and other studies for EMP preparation is almost one year and it is expected that the TWP will immediately facilitate an increase in production from some opencast mines in the country to meet the ever-increasing demand for coal. Moreover, MoEF has been urged to increase the number of exploratory boreholes in forest land from 15 boreholes per sq km to 20 boreholes a sq km to undertake proper resource management for the preparation of feasibility reports. Taking into account the constraints in railway network, the coal ministry has drawn the attention of the railway ministry to expedite the Todi-Shivpur railway line in Jharkhand, which is expected to transport 160 million tonnes of coal. When this project was conceptualised in 2000, its cost was estimated at Rs 621 crore, but till now, only Rs 25 crore has been spent on the project. The coal ministry has also demanded the construction of a 53-km railway track from Gopalpur to Manoharpur, as this track has the potential to transport 220 million tonnes of coal. It has also called for the construction of a 74-km railway track in Talcher Coalfields, which will have the potential to carry additional coal to the tune of 300 million tonnes.

(Source:http://www.business-standard.com/india/news/coal-ministry-urges-moef-to-expedite-clearances/397946/)

State cancels mining license of scam-tainted RBT

Kolkata/ Bhubaneswar, June 11, 2010: After being cornered by the Opposition political parties over the multi million crore mining scam, the Orissa government has finally acted tough on the issue. It has cancelled the mining license of Ram Bahadur Thakur Limited (RBTL)- the exposure on whose involvement in the scam had led to opening of the Pandora’s box on similar illegal mining operations by other companies. The cancellation of the mining license of RBTL, which has been done based on available evidence, follows a rather prolonged administrative probe by the state steel and mines department.  Observers feel that with the Assembly session beginning on June 22 and the state government wary of the storm to be raised by the opposition parties, the state steel and mines department is keen to expedite action against the illegal miners. The allegation of illegal mining in the state had snowballed into a major controversy with the Opposition, particularly the Bharatiya Janata Party (BJP) mounting pressure on the state government to order a CBI probe into the scam. While the mining license of RBTL stand revoked, other companies, also facing similar allegations, like Arjun Ladha and B C Dev are currently facing administrative inquiry. The licenses of these two companies are also likely to be cancelled before the Assembly session, sources said. These companies were carrying out illegal mining operations on reserved forest land without the requisite clearance of the Union ministry of environment and forests (MoEF). It may be noted that in July last year, the Orissa government had ordered a vigilance enquiry into the alleged mining scam in Keonjhar district. The areas where these illegal operations were going on included Rugudi, Rudukela and Katusahi mines in Keonjhar district. Meanwhile, there are 245 cases of renewal of mining licenses in the state and notices have already been issued to these companies to furnish the necessary documents for renewal. It may be noted that the operation of around 220 mines has been suspended in the wake of the scam. Earlier this month, the Supreme Court of India has started hearing a case involving illegal raising of minerals in Orissa. A three-member bench of the apex court headed by Chief Justice K G Balakrishnan had asked the Orissa government to file its response within six weeks before further hearing is taken up. The state government had also informed the Supreme Court that it would implement most of the recommendations of Central Empowered Committee (CEC) of the court which had conducted a probe into the issue earlier. It may be noted that the CEC submitted its interim report to the Supreme Court on April 26, 2010 with a set of recommendations pertaining to illegal mining activities in Orissa. The CEC had suggested that the Renewal Mining Lease (RML) cases, which are pending with the state government for a long time, should be disposed of expeditiously in a time bound manner. Deemed extension clauses should only be used in contingency situation and can’t be availed indefinitely. It also suggested that the mining in non-forest areas can be allowed only after obtaining the environmental and other statutory clearances by the lease holder.

(Source:http://www.business-standard.com/india/news/state-cancels-mining-licensescam-tainted-rbt/397819/)

Sarguja mega power project in Chattisgarh delayed

New Delhi, June 11, 2010: The 4,000 MW ultra mega power project at Sarguja in Chhattisgarh would get delayed indefinitely as there is no decision regarding the environmental clearance of the project yet. Power Finance Corporation (PFC), the nodal agency for the ultra-mega power projects, invited preliminary bids for the execution of the Sarguja project in March this year. The last date for submission of bids was May 3, which got extended till July 5 due to objections raised by the Ministry of Environment and Forests.  "Last date is July 5, but it (bidding process) cannot close because there is no clarity on the environmental clearance issue," a power ministry official said adding that it could not be ascertained at that point of time how much time this matter would take. The Ministry of Environment and Forests has declared the Hasdeo coal block in Chhattisgarh --  allotted by the coal ministry for the Sarguja UMPP -- as a 'No Go' area, where coal mining cannot be done as it will adversely impact the environment. The coal block was awarded by the Ministry of Coal to the Ministry of Power for captive use of the 4,000-MW UMPP in the state. PFC forms a special purpose vehicle for all the UMPPs, the SPV acquires the land, checks water availability and coal linkage for the project. Sarguja is the fifth UMPP in a series of such projects planned by the Power Ministry. The government has already allotted four UMPPs to the successful bidders. Reliance Power has bagged three of the four UMPPs at Sasan (MP), Krishnapatnam (AP), and Tilaiya (Jharkhand), while Tata Power has been awarded the Mundra UMPP in Gujarat. These projects are likely to add to the government's capacity addition programme in the XIIth Five-Year Plan, starting April, 2012.

(Source:http://www.business-standard.com/india/news/sarguja-mega-power-project-in-chattisgarh-delayed/97407/on)

Railways ready with plan to stop transport of illegal ore

New Delhi, 10, 2010: Stung by the reality that illegally mined minerals, particularly iron ore, were finding their way to ports and other places through its rakes, the Railway Ministry has chalked out a comprehensive action plan to stop the practice. The state-run monolith has decided to soon implement an entry-exit system at the yards along with proper lighting and installation of CCTV cameras as a foolproof mechanism to contain the menace. In the course of a recent high-level meeting with the top brass of the Mines Ministry, the Railway Board unfurled its blueprint on implementing a mega plan to contain illegally mined ore being transported through its rakes, a top ministry official told The Indian Express. “To begin with, in Orissa the Railways will put in place within two months an entry-exit system at the yards to enable systematic loading of rakes at the railway sidings. A check post will also be set up for regulating the entry of mineral laden trucks. Arrangements for proper lighting and CCTV cameras will be made by the Railways Ministry for which the necessary assistance of the Orissa government would be sought,” the official said. He said the Naveen Patnaik government would begin issuing transit permits for each rake and two copies of the transit pass would be handed over to the Railways out of which the monolith would retain one copy and return the other copy to the mining authorities for cross-verification. “Each pass will contain all the relevant information, which at present is being put in the summary sheet,” the official said. “Most importantly, the railway authorities will submit monthly returns containing the details of the minerals transported from the railway sidings to the local mining officer of the state so as to facilitate the detection of transportation of any illegally mined minerals,” according to the blueprint. “The system to be introduced by the Railway Ministry will be equally applicable for public sidings as well as private ones. Once the system is stabilised and made permanent, the monolith could consider replicating the system all over the country,” it said. The Railways and the Patnaik government were recently at loggerheads with each other the imposition of a prohibitory order on the railway sidings which brought the iron ore movement in the state to a standstill. The BJD-led government, in its drive against illegal mining activities, had enforced section 144 in and around three major iron ore railway sidings at Barbil, Bansapani, and Jhurudi in Keonjhar district on March 4. The state government’s decision came in the wake of the detection of transportation of mineral illegally in railway rakes from these sidings, which had even led to the seizure of five of its rakes. The state government’s decision had forced the railways to shift 200 rakes to other states like Chhattisgarh, Jharkhand, Karnataka and it threatened to move the remaining 300 away from the state too, compelling Patnaik to write to Prime Minister Manmohan Singh to intervene. Following this, Cabinet Secretary K M Chandrasekhar had convened a high-level meeting on April 12 last attended by union mines secretary Santha Sheela Nair, steel secretary Atul Chaturvedi and a top Railway Board official.

(Source:http://www.indianexpress.com/news/railways-ready-with-plan-to-stop-transport-of-illegal-ore/631748/0)

Land unavailability brings down coal output

Talcher, June 10, 2010: Talcher coalfield, ranked as the biggest coalfield in India, has recorded a negative growth of 20 per cent (pc) in the first two months of the current fiscal much to the disappointment of coal authorities. As against the coal production of 9.7 MT during this time last year, 7.67 MT was produced this year. This has hit the growth of Mahanadi Coalfields Limited (MCL) which has set its target of 123 MT for the current fiscal. The company has recorded nine per cent negative growth even though Ib Valley coalfield registered a positive growth of six per cent.  As against the company output of 16.47 MT in April and May last year, this year output was 14.99 MT during the same time. This is due to drastic fall in production at Talcher coalfield which accounts for about 70 pc coal output of the company. The reason behind low production is non-availability of land. All the seven open cast mines at Talcher are suffering for want of land and even some of collieries like Bharatpur mine are on the verge of closure. According to a report, Hingula area recorded the highest negative growth of 34 pc while BHaratapur had 24 pc followed by Jagannath area with 15 pc. Lingaraj area lagged behind by 10 pc negative growth than last year. Of these seven mines, Bharatpur, linked to Nalco power plant, is facing acute constraint of land while its multi-crore dragline meant for coal output remains idle for last several months. Similarly, other expensive machines are lying unused due to want of forest and tenancy land. The relevant files for land acquisition are gathering dust at the corridors of State agencies.  Expressing concern over the sharp fall in coal output when requirement is high, the Director (Technical) of MCL A.K.Tiwari appealed to State agencies and people to cooperate with the company to produce coal for power sector.

(Source:http://expressbuzz.com/states/orissa/land-unavailability-brings-down-coal-output/180443.html)

Law ministry for ‘more teeth’ to Centre to curb illegal mining

New Delhi, June 10, 2010: The law ministry has favoured more power to the Centre in dealing with illegal mining, an area hitherto falling under the states domain. The ministry made these suggestion on the draft mining legislation sent to it by the mines ministry for vetting. “Law ministry, which has vetted the Mines and Minerals (Development and Regulation) Act 2010, is in favour of providing more teeth to the Central government (on dealing with the problem of illegal mining),” a top official in the ministry of mines told PTI. The new proposal for empowering the Centre comes in the face of Karnataka government declining suggestion for a CBI probe into allegations of illegal mining by people including ministers Reddy brothers in the state. “It (law ministry) has suggested providing additional powers to the Centre to give specific directions to the states in cases where larger threat to national security is involved, after apprehensions that illegal money from mining is used for money laundering, purchase of drugs and arms besides funding insurgency,” the official said. At present there are not enough legal provisions for central intervention in illegal minings in states while the magnitude of problem is such that last year about 42,000 cases had been detected in 11-mineral bearing states. The official said that the ministry in a letter to the home ministry had also sought investigations by National Investigation Agency (NIA) in cases where threat to internal security was involved. The ministry's proposal is being examined by the home ministry, the official added. The official added that in an earlier meeting at the Prime Minister's office it was agreed to have new provisions that would empower the Centre to direct state governments in determining mining leases, especially where country's internal security was involved. Meanwhile, updating the new draft, the mines ministry has incorporated a provision of Centre issuing directions to states for detection, prevention and prosecution of cases of illegal mining, and to frame rules for the purpose. Also making a provision for establishment of a national and state mineral fund and audit, it has provided for the provision to “reward whistle-blowers on illegal mining.” The new legislation also provides for Coordination-cum-empowered committees comprising of Central and state level authorities for “prevention, detection and prosecution of cases” of illegal mining.

(Source:http://www.asianage.com/ideas/mining-revenue-helps-orissa-overcome-fiscal-hardship-121)

Mining without mercy, say residents of three villages

Panjim, June 10, 2010: A delegation of Utt Goenkara along with a few villagers affected by continuous mining dust pollution at Honda, Pissurlem and Harvalem met Director of Mines Arvind Loliyekar on Wednesday to apprise him about overloading of trucks and to know about guidelines, if any, for the umpteen number of ore carriers passing through these villages that have made life miserable. Sagar Parwar from Harvalem, who was part of the delegation, said a petition regarding the dust pollution was filed before the Bicholim Sub-Divisional Magistrate, but till date not a single hearing had taken place. The serious issue is classified as a “miscellaneous” case, indicating it as any other matter, he mentioned. Parwar said some of the wells in the village had dried up and fields have been inundated with silt from the mining sites around the area. Then there is the problem of outside ore being brought here and mixed with the local ore, he highlighted. Even though the Director of Mines Loliyekar told the delegation he would look into the issue, he said his department had no control over the overloading of tipper trucks and the same could be handled at the Transport Department level. He also advised the delegation to contact the Goa State Pollution Control Board to deal with the problem of dust pollution. Office bearer of Utt Goenkara Prajal Sakhardande maintained children as well as elders were suffering from asthma, bronchitis and tuberculosis on account of pollution in Honda village in Sattari taluka. “Even the food that they eat is contaminated with mining dust. We assert it is the duty of the Health Minister Vishwajeet Rane to go and witness the health problems of these villagers and find a solution immediately,” he mentioned. Sakhardande brought to the director’s notice heritage sites in the vicinity of mining zones in some villages. Loliyekar made a mention of these sites in his notepad and assured the Utt Goenkara office bearer he would see what he can do. Utt Goenkara General Secretary Advino Fernandes said today they had come to see what the director had to say and what powers he had to stop the mining dust pollution. We will continue to support the villagers in their fight against dust pollution, he mentioned.

(Source:http://oheraldo.in/news/Local%20News/Mining-without-mercy-say-residents-of-three-villages/37671.html)

Reliance Power Acquires Two Indonesian Coal Companies

Bloomberg, June 10, 2010: Reliance Power Ltd., controlled by billionaire Anil Ambani, bought two companies that own three coal mines in Indonesia as it seeks fuel for power plants it is building in India, Asia’s third-biggest energy consumer. Reliance Coal Resources Ltd., a unit of Reliance Power, has agreed to acquire all the shares of the two companies, the Indian electricity generator said in a statement to the Bombay Stock Exchange today, without naming the companies or a value of the deal. Reliance Power said in May 2008 it agreed to buy three coal mines in Indonesia. The company didn’t say if today’s announcement involves the same mines. Ravi Sodhi, a spokesman for the Anil Dhirubhai Ambani Group, couldn’t immediately be reached for comment. Reliance joins the Essar Group and Tata Power Co. in securing coal assets in Indonesia to supply surging power consumption in the world’s second-fastest growing major economy. More than half of India’s electricity generation is coal-fired, according to the power ministry’s website. “Indonesian coal is of higher calorific value than Indian coal and that offsets the higher cost of transporting it here,” said Deven Choksey, chief executive officer at K.R. Choksey Shares & Securities in Mumbai, who manages about $123 million for wealthy individuals. “Besides, buying coal mines in India is fraught with delays because of environmental issues.” The coal from the Indonesian mines will be used at a planned 4,000 megawatt power plant at Krishnapatnam and other projects, according to the statement.

Shares Gain

Reliance Power rose 1.6 percent to 154.7 rupees at 11:22 a.m. in Mumbai trading compared with a 0.5 percent gain in the benchmark Sensitive Index. The shares have declined 17 percent in the past year. Reliance Power plans to build 16 power plants with a total capacity of 33,780 megawatts, including seven coal-fired plants and seven hydroelectric plants, according to the website. Essar Group agreed to buy the Aries coal mines, which hold as much as 100 million metric tons of the power-station fuel, in Indonesia in March. Tata Power, India’s largest non-state electricity generator, agreed to pay $1.3 billion in March 2007 to buy a 30 percent stake in two Indonesian coal mines owned by PT Bumi Resources. GMR Group said it bought Indonesia coal mining company PT Barasentosa Lestari in February 2009.

(Source:http://www.businessweek.com/news/2010-06-10/reliance-power-acquires-two-indonesian-coal-companies-update1-.html)

R-Power, Indonesia's Sugico ink pact to acquire coal mines

New Delhi, June 10, 2010: Anil Ambani-owned Reliance Power has signed a share-sale agreement with Indonesia’s Sugico Group to acquire three coal mines in a transaction that will involve a series of production-linked milestone payments.  Reliance Power’s wholly-owned subsidiary, Reliance Coal Resources, will make an upfront payment of Rs 500 crore ($106 million) for acquiring the mines.  The balance payment will be paid in a staggered fashion depending on the mines meeting certain production targets. If all production-linked targets are met, the total value of the deal will be $1.6 billion.  The Indian company, in 2008, had entered into a definitive agreement to acquire 100% economic interest in these three coal mines, and the share-sale agreement signed earlier this week marks the closure of the transaction.  Speaking to ET from Indonesia, K Leo, chairman of the Sugico Group said that the deal was a ‘win-win’ for both sides. “The partnership with Reliance will improve the valuation of other assets in the region. I have met Anil Ambani and I am very confident of his commitment,” said Mr Leo, when asked about his confidence in the staggered payment mechanism.  The three mines located in the South Sumatra province were owned by PT Sriwijaya Bintangtiga Energi and PT Brayan Bintangtiga Energi, subsidiaries of the Sudigo Group.  The coal from this region will not only ensure steady supplies for the proposed Krishnapatnam Power Project in Andhra Pradesh, that is to be based on imported coal, but will also be cost effective. Back of the envelope calculations show that the cost of this coal will work out to be almost 35% cheaper than other imported coal. But the quality of coal with a calorific value of 4,000 kcal (compared with 2,800 kcal in India) and an ash content of just 3-5% will come as a major advantage to Reliance. The mines have production licences and Reliance will now have to work towards the production of coal. It is estimated that the mine would be in a position to begin production in another three years. Reliance will develop the mine along with technical partner North American Coal Cooperation.  The staggered financing mechanism will suit the Anil Dhirubhai Ambani (ADA) Group, which has invested heavily in several diverse projects and a large one-time cash outflow could pose some difficulties, a leading energy analyst said. Reliance Power had reported a cash flow of Rs 9,000 crore in the last quarter.  The Anil Dhirubhai Ambani Group, that has interests in logistics and infrastructure, will also help in the development of a dedicated custom-built railway line to transport coal from the mines to a proposed port in Jambi in the Sumatra province. The designated port in the Jambi province will be capable of handling large capesize vessels (180,000 mt). Indonesia, a mineral-rich country, particularly in coal, has recently notified new rules according to which mining blocks will only be given out through auctions as opposed to nominations. Other power companies like NTPC and Lanco, too, have been holding talks with the Sugico Group.

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

Vedanta Aluminium recognized as Green Leader in mining and metal industry

Bhubaneswar, June 9, 2010: Vedanta Aluminium Limited, Lanjigarh has been awarded The Financial Express – Emergent Venture India (FE_EVI) Green Business Leadership Award in Mining and Metal Industry for its commitments and continuous improvements towards environment protection, minimizing greenhouse gas emissions through selection of state of art technologies and bringing awareness about Climate change.  The award was presented by Dr.Farooq Abdullah, Minister for New and Renewable Energy (MNRE) at a function organized in Delhi on World Environment Day i.e. 5th June, 2010 which was attended by others Corporate and other eminent personalities like Mr.RK Pachori, Director General, TERI besides Chairman of Navratan PSU’s like ONGC, Coal India Ltd.   The award was presented based on a study carried out by The Financial Express, Emergent Venture India along with Indian School of Business – Hyderabad to capture the trends and best practices in Climate Change mitigation across key industries of India. It covers 9 power intensive industries like cement, mining & metal, power, paper & pulp, oil & gas, iron & steel, information technology, chemicals & fertilizers and banking. The study identifies Green Leaders for each industry by providing a Green Leader framework drawing from the global best practices and incorporating them in the Indian context. The basic objective of the study is to raise awareness about the Indian Industry and also to provide an objective standard that they need to aspire.   Recently, Vedanta Aluminium Lanjigarh was also awarded the International Safety Award by British safety Council. Speaking on the occasion, Dr.Mukesh Kumar, Chief Operating Officer, VAL-Lanjigarh observed that environmental protection and safety is an integral part of Vedanta’s business practices. This has been demonstrated by the company being the 1st Alumina Refinery in the country having “Zero Discharge” system. It is aiming to become the 1st “Zero Waste” Refinery in the World by 2015 through utilization of all wastes like Red Mud, Lime Grit  and Fly Ash etc.

(Source:http://www.orissadiary.com/ShowBussinessNews.asp?id=18984)

RPT-UPDATE 1-India NMDC iron ore mine output down 36 pct-sources

Raipur, June 9, 2010 (Reuters) : Iron ore output has dropped nearly 36 percent a day at a key mine run by Indian state-owned NMDC Ltd. (NMDC.BO: Quote) since early June after night freight trains were suspended to avoid Maoist attacks, sources said on Wednesday. "We were maintaining daily dispatches of some 56,000 tonnes, but it has now come down to a level of nearly 36,000 tonnes a day," a senior company official, who declined to be named, told Reuters. Two other NMDC officials said shipments were cut starting June 5 as they were only nine rail rakes now in use, compared with 14 rakes a week earlier. The affected mining complex, encompassing two units, in the Bailadila hills of the central state of Chhattisgarh, of which Raipur is the capital, had produced 77 percent of the company's total output of 28.52 million tonnes in the year ended March 31, 2009. NMDC officials said supplies could normalise next week with resumption of night trains, railway and company officials said. Railway authorities suspended night freight trains following police intelligence alerts that Maoist rebels could target them to mark a week-long revolutionary week they were celebrating in the state. The insurgents, who say they are waging war on behalf of the poor and the landless against the state, have taken effective control of large swathes of the countryside in central and eastern India, scaring off potential investors while controlling land rich in minerals. More than 1,000 attacks were recorded in 2009 and 600 people killed with attacks in recent months. Passenger trains in some parts of eastern India also remain suspended at night after a train in West Bengal state derailed and smashed into an oncoming goods train last month, killing at least 145 people.

(Source:http://af.reuters.com/article/metalsNews/idAFSGE6580DN20100609?sp=true)

Illegal mining: Iron ore worth Rs 200 cr missing

Bangalore, June 9, 2010: Nearly five lakh tonnes of iron ore seized in Karnataka as part of an investigation into illegal mining from the iron ore rich district of Bellary has gone missing. The iron ore worth nearly Rs 200 crore was seized at the Bellekeri Port near Karwar in Karnataka. Officials of the quasi judicial anti-corruption investigation agency the Karnataka Lok Ayukta had in February this year, along with officials of the Forest Department at Karwar, seized the iron ore stock at the Bellekeri port yard after investigations revealed that it was brought to the port from Bellary with forged permits. A case of theft and breach of trust has now been filed by the Deputy Conservator of Forests, Karwar, against officials of the state-run Bellekeri Port and Customs authorities for allowing the seized material to be moved out without legal clearance. The Karwar DCF has also sent a complaint to the Chief Vigilance Commissioner against the Customs authorities for allowing the export of the seized iron ore from the Bellekeri Port stockyard, Lok Ayukta Justice N Santhosh Hegde revealed. The seizure of the iron ore from the Bellekeri Port in February followed an investigation by the Lok Ayukta into a trail of iron ore laden trucks that moved with impunity between Bellary and various ports around the state on a daily basis without proper mining and transport permits. The seizure at the Bellekeri Port was considered the biggest catch in investigations against the iron ore mining mafia in Karnataka. The Lok Ayukta also seized 40 gunny sacks of forged and fake documents that were used by transporters to bring iron ore to the port.  Examination of the permits and documents revealed that they were all forged or fake documents and that the iron ore was transported for export with no valid mining or forest permits and no royalties or forest development tax, Justice Santhosh Hegde said.  The Lok Ayukta investigations based on the documents seized at the Bellekeri Port revealed that some of the iron ore was transported using an Andhra Pradesh mining permit issued in the name of G V Narayan Reddy, identified as a mine owner in Kadapa district. The transport permits seized by the Lokayukta however contradicted the mining permits and stated that the iron ore was loaded at Hospet and Sandur in Bellary.

(Source:http://www.indianexpress.com/news/illegal-mining-iron-ore-worth-rs-200-cr-missing/631263/0)

Hindalco may borrow Rs 14k cr to step up aluminium capacity

Mumbai, June 9, 2010: Hindalco Industries plans to borrow about Rs 14,000 crore in the next couple of years to build two new plants that will treble its aluminium making capacity as increased production of cars and aircraft, fuel demand for the white metal. The Mumbai-based metals major — that became one of the world’s top five aluminium makers after buying Canada’s Novelis in 2007 — needs about Rs 9,200 crore each for the Aditya Aluminium and Mahan Aluminium projects. It aims to start the plants by 2012, according to managing director Debu Bhattacharya. The debt will be in the form of so-called non-recourse loans, which in this case means they won’t be on the books of Hindalco. Instead they will be secured by the assets of Aditya Mahan Aluminium. The loans will be repaid from the cash flow generated from the projects. “If you include Utkal Alumina, then we have $5 billion worth of projects under execution and we intend to keep the debt-equity ratio at 70:30,” said Hindalco CFO Sunirmal Talukdar. “These are project finance loans under which lenders set certain milestones and after completion of those milestones, funds are disbursed. Funds are not drawn down unless the project is on the ground,” he added. The equity portion of the projects, which is 30% of the base cost, has already been tied up, said Mr Talukdar. Aditya Aluminium is a greenfield complex, producing both alumina and aluminium at a site in Orissa. Uktal Alumina, also in the same state, produces alumina, a feedstock for the metal. Mahan is a new aluminium plant in Madhya Pradesh. The expansion is being geared to meet demand. “Aluminium demand in India is very positive due to auto, construction and electrical sectors,” said Mr Bhattacharya. Although world aluminium demand fell 8% in 2009 due to the slowdown, it is likely to rise 14% in 2010, mainly because of rising consumption in China and India. Average prices of aluminium on the London Metal Exchange in the year ended March 31, fell 16.6% to $1,903.6 a tonne. Global demand for the metal which is also used in beverage cans is expected to increase 10% this year, led mainly by China. Mr Bhattacharya said that average aluminium prices would be about $2,000 per tonne. Hindalco also said that it plans to acquire copper mines. “Our aim is to have 40% of our concentrate requirement from our own mines. We are still short of that,” said Mr Bhattacharya. Hindalco operates copper mines in Australia through its subsidiary Aditya Birla Minerals.  Shares of Hindalco fell 5.8% to Rs 132.2 in a weak trading market, on a day when the broader market was down 1%.

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

India is most optimistic on hiring plans: Survey

New Delhi, June 9, 2010: India has emerged as the most optimistic nation in terms of hiring plans for the next three months, led by strong employment opportunities in the construction and mining sector, says a survey.  The Employment Outlook Survey for the third quarter of 2010 by global staffing services firm Manpower said that hiring activities in India are expected to reach the pre-recession level in the coming months. "With a net employment outlook of 42%, Indian employers report the most optimistic forecast among all 36 countries and territories (surveyed), Manpower India's MD Sanjay Pandit said.  "The positive hiring trend in India is primarily due to strong domestic demand," he added. Indian employers have been reporting strongest hiring plans for more than two years (over eight quarters) continuously, according to Manpower.  Indicating a pick up in the job market, the employment outlook an indicator of hiring activities — climbed by two percentage points as compared to the second quarter. The outlook has improved by 19 percentage points as against the Q3 of 2009.  Apart from India, strongest employment prospects were reported by employers in Brazil (40%), Taiwan (39%), China (27%), Peru (24%), Australia (21 per cent) and Singapore (23%). In India, hiring optimism is strongest in the mining and construction (46%) sector, the report said. Manufacturing sector saw the next best employment outlook of 44%, followed by services (43%), finance, insurance and real estate; public administration/education (both at 37%); wholesale and retail trade (34%) and transport and utilities (24%).  "We are witnessing a notable exuberance in hiring sentiments across all industry sectors, cities and functional areas," Pandit noted. The survey of 5,371 employers across the country showed West region was the most optimistic in terms of recruitment activities (48% employment outlook) for third quarter. "In the South, employers report a bullish outlook of 41%. In the North, employers anticipate a brisk hiring pace with an outlook of 34%, while in the East, the outlook is a healthy 29%," Manpower noted.

(Source:http://timesofindia.indiatimes.com/biz/india-business/India-is-most-optimistic-on-hiring-plans-Survey/articleshow/6025779.cms)

NTPC seeks govt’s help in acquiring coal mines

New Delhi, June 9, 2010: State-owned NTPC Ltd, which plans to acquire the assets of the beleaguered Griffin Coal Mining Co. Pty Ltd, including a power project and its associated coal mines, has sought the Indian government’s help to secure the deal and is also concerned about the Australian government’s proposal to impose a resource super-profit tax. Australian Premier Kevin Rudd’s proposal to replace royalties with a 40% tax on all mining profits is facing intense opposition from mining firms such as Rio Tinto Plc and BHP Billiton Ltd, among others. India’s largest power generation utility wants to acquire the Australian company’s 416MW Bluewaters project, located 4.5km north-east of Collie in western Australia. While the total deal is valued at around $1.2 billion (Rs5,640 crore), the proposal brought to NTPC by merchant bankers is at a preliminary stage, with the actual offer yet to be made. “While an offer is only expected to be made by June, we want the Indian government’s help. We are also concerned with the new tax proposal as it might affect our plans. Once they float an expression of interest, we will bid for it. We will also have to see whether we can take the coal back to India for our power projects,” said a senior NTPC executive, who did not want to be identified due to the non-disclosure agreements signed by the firm. Griffin Coal is a unit of the Griffin Group, an energy-to-cattle company that has debts of at least A$700 million (around Rs2,689 crore), according to Bloomberg. While the operating mine has a capacity of 150 million tonnes (mt), the greenfield concession has reserves of around 400 mt. “The proposal is at a very preliminary stage,” said another NTPC executive, who also did not want to be identified due to the sensitive nature of the deal. NTPC is expected to be in competition with leading Chinese government-run coal miners such as China Shenhua Energy Co. Ltd and Yanzhou Coal Mining Co. Ltd, which are actively engaged in acquiring mining concessions overseas. While questions emailed to the Griffin Group remained unanswered at the time of filing this story, the first NTPC executive said: “We will ask our power minister to take up the topic of government intervention for the deal when he meets Australian government representatives.” Indian power minister Sushil Kumar Shinde is in Australia to attend the Australia-India Energy and Minerals Forum and has held meetings with government representatives including Australian foreign minister Stephen Smith on Monday. Shinde expressed the Indian government’s support in seeking Australian help for coal mine acquisitions by Indian companies.  “We have asked Australia to facilitate the plans of our companies, such as NTPC.” Shinde said. Australian foreign minister Smith tried to assuage the concerns of investors over the proposed tax. “We currently are on a consultation process with the mineral and energy industry, and for any Indian companies that are interested, there is a consultation process, and they are very welcome to approach the treasury consultation process as well or they need to approach the minister for mineral and resources,” he said. Several Indian firms have been looking to acquire overseas coal assets, with the fuel being the source of almost 70% of the power generated in India keeping it in short supply. “Anyone who is prospecting for coal, it has to be a commercial decision,” said Indian power secretary P. Uma Shankar. Thus far, NTPC has been unsuccessful in securing coal concessions overseas and analysts say that bids by Indian miners tend to be relatively uncompetitive because most of them seek the coal for their own end-use projects, while rival bidders may have higher-margin alternative plans.  While Australia offers better quality coal along with a sound regulatory environment, the valuations of the coal concessions along with transportation costs are high.  However, the mines located in the western and north-western part of the country suit Indian demands as the shipping distance is shorter compared with mines located in the other parts of the continent.  India imported coal worth $6 billion from Australia during the last fiscal, besides sourcing iron ore and gold of the same value.

(Source:http://www.livemint.com/2010/06/08193743/NTPC-seeks-govt8217s-help-i.html?atype=tp)

HC order on loading of mining trucks violated: QTMAPF

Quepem, June 8, 2010: The Quepem Taluka Mining Affected Peoples Front (QTMAPF) members have accused authorities in Quepem of committing contempt of a high Court order regarding the loading of mining trucks. The QTMAPF members claimed that the high court in its order dated April 22 stated: “All trucks/tippers engaged in ore transportation shall leave in the cargo box on all four sides a free board of not less than 9”, that is, the cargo box shall be loaded by leaving not less than 9” from the brim.” The members further stated that on April 24, Collector G P Naik convened a meeting in his chamber to inform all the officers about the high court order, in which the collector directed them to implement the high court order. “Contempt of the high court order is openly being committed by mining trucks and mining contractors, as overloaded mining trucks passes via Quepem, where offices of SDM, executive magistrate, RTO, DySP are based,” claimed the members. “The meeting convened is a mere eye wash, as not even 1% implementation is done,” stated QTMAPF members. “Authorities are least bothered to see that high court order is being implemented. Despite filing complaints with photographs, over loading of mining trucks goes unabated due to which people of Quepem continues to face dust pollution,” said the members. “The mining operation via Quepem continued in full swing on Monday,” they added.

(Source:http://oheraldo.in/news/Local%20News/HC-order-on-loading-of-mining-trucks-violated-QTMAPF/37619.html)

Ministry suggests minimum lease size for minor minerals

New Delhi, June 8, 2010:

The group was in favour of making mine plans mandatory for the minor minerals as well and recommended that a separate corpus should be created for reclamation and rehabilitation of mined out areas.

In a move that could help the State Governments evolve a uniform regulatory framework for the mining of minor minerals, the Environment Ministry has suggested that the minimum size of the mining lease should be five hectares and that the lease period be fixed at five years. Currently, the area for grant of mine leases and the period of lease for minor minerals vary from State to State depending on the type of concessions, minerals and its end use. Mining is a State subject and there is no uniformity in regulatory framework for minor minerals. This is mainly because the State Governments are empowered to make rules for minor minerals under Section 15 of the Mines and Minerals (Development and Regulation) Act 1957. The Environment Ministry had set up a group under the Environment Secretary to evolve guidelines for sustainable mining of minor minerals. The group in its report has also suggested a cluster approach for the smaller mine leases operating currently. These clusters could be provided with processing or crusher zones for forward integration, it said.

Corpus

The group was in favour of making mine plans mandatory for the minor minerals as well and recommended that a separate corpus should be created for reclamation and rehabilitation of mined out areas. As mining of minor minerals is by and large unorganised and practised in an unscientific manner, the separate corpus could be utilised for reclamation of mined out areas. The State Governments could work out a suitable mechanism for creation of such corpus on the polluter pays principle, it said. Minerals have been classified into major and minor categories based on their end use rather than level of production, level of mechanisation, export and import among other factors. Minerals such as ordinary sand, marble, boulders, lime shell, brick earth, quartzite and sandstone among others are declared as minor minerals by the Central Government. The minor minerals account for about a tenth of the total value of minerals produced in the country. Further, the present classification of minerals into major and minor minerals should be re-examined by the Ministry of Mines in consultation with the States, it said.

(Source:http://www.thehindubusinessline.com/2010/06/08/stories/2010060852970400.htm)

Raman, Jairam in mining war

In 6 Yrs, State Has Signed 102 Deals with Cos for Production of Steel, Power Etc

Raipur, June 7, 2010: A tussle between the Chhattisgarh government and the Ministry of Environment and Forests (MoEF) over an elephant reserve has reached the Prime Minister’s Office (PMO). And the dispute is emblematic of the way the richly forested state is hurtling to get the developed tag by shaving off its pristine tree cover.  Since 2004, the Chhattisgarh government has signed 102 memorandum of understandings (MOUs) with industrial houses for production of steel, sponge iron, power, cement and aluminium. The government claims to have brought Rs 1,65,000-crore investment to the state. ‘‘Questions are being raised because nearly all these MOUs focus on minerals and mining industries, and were signed on the basis of private negotiations without any fair competition,’’ says Sudiep Shrivastava, a “Bilaspu-based lawyer and activist.  It is indeed a polarising debate, one which impelled Chhattisgarh CM Raman Singh to approach the PMO when the environment minister Jairam Ramesh rejected his recommendation for mining lease to eight industrial houses in Hasdeo Arand forests, home to many of the state’s elephants, because it would lead to cutting down 17 lakh trees. Increasing mining in Jharkhand and Orissa has forced herds of elephants to migrate to the forests of Sarguja, Jashpur and Korba in Chhattisgarh. A proposal for an elephant reserve of over 384sqkm in Hasdeo Arand forests was sent to the Centre in 2002 by the state forest department. ‘‘But in 2006, the Raman Singh government found that a coal block of 100sqkm fell within the elephant reserve,’’ said Meetu Gupta of an NGO, Wildlife SOS. Since the state government had already recommended mineral concessions for a number of industrial houses, it withdrew the proposal to the Centre and shrunk the reserve area by 100sqkm. It’s four years since the Centre cleared the proposal but the state government hasn’t yet notified the sanctuary. It’s learnt the state government signed MOUs with Tata Steel and Essar in June and July 2005. Tata would produce 5 million tonne and Essar 3.2 million tonne of integrated steel per annum. Says Sudiep Shrivastava, ‘‘It takes 1.8 tonnes of iron ore to produce one tonne of steel. While the market price for iron ore is around Rs 3,500 per tonne, the cost of raw material from captive mine is Rs 500 per tonne.’’ With this arithmetic, Tata would reduce cost of production by Rs 2,700 crore per annum, he claimed. Chhattisgarh government’s MOUs assure full assistance in the form of land, minerals, water, infrastructure, etc. A minister during Congress rule, Bhupesh Baghel claims that the state government is recklessly signing MOUs. ‘‘Some of these companies exist only on paper and have no experience of setting up of a steel or power plant,’’ Baghel told TOI. NavBharat Coal Fields was allotted a coal block in Hasdeo Arand. This little-known company was sold to Solar Explosive Limited, 18 months after the coal block allocation, as per the information of the National Stock Exchange. Similarly, iron ore areas have been recommended for Pushp Steel and Power, Bambaleshwari Ispat, Akshay Investment, even in the name of an individual Santosh Agarwal. ‘‘The state has even sold our rivers to industrial houses. Chhattisgarh was the first state to commercialise water. In 2001, it allowed a private company, Radius Water, to sell water to industries on Shivnath river in Durg. This deal was purely on the basis of a private negotiations. Today, there is not a single river in the state that does not have industries on the banks. Wherever there is water, industrial plants have been setup. Contrary to the national water policy, much of the state government’s water plans solely benefit industrial houses,’’ he added.

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

Centre to act on Mafia Mining

New Delhi, June 7, 2010: With the Karnataka government rejecting suggestions for a CBI probe, the Union mines ministry is looking at other means to crack down on the mining mafia in the state. In the face of the Karnataka government's resistance to a CBI probe, the matter was referred to the Cabinet, and the issue was discussed in the Prime Minister's office, the mines minister, Mr B. K. Handique, said. One of his concerns was whether money from illegal mining was being diverted to terrorists. Asserting the “crackdown” on illegal mining was on the top of his agenda, Mr Handique said that at present there were not enough legal provisions for central intervention and he would make attempts to incorporate provisions in the proposed Mining Act. “There were discussions at the PMO level. It would be tracked down. If money is being diverted to terrorists, then steps will be taken to clamp down on such illegal practises. With NIA now, things are moving in the right direction.” When asked to elaborate, Mr Hadique said, there was a provision in the law governing NIA and the home ministry will be tracking the fund diversion.

(Source:http://epaper.asianage.com/ASIAN/AAGE/2010/06/07/ArticleHtmls/07_06_2010_016_013.shtml?Mode=1)

Ministry pitches for competitive bidding for mining leases

New Delhi, June 7, 2010: Weightage will be numerical in l character and enable a composite ranking based on the bid price and marks assigned for each criterion.

Seeking to fulfill a long-felt need for a transparent mineral concession regime, the government is all set to empower the states to start competitive bidding for granting of mining leases. Currently the leases are granted on the first-come-first-served basis. In the latest version of the draft Mines and Minerals (Development and Regulation) Act 1957, which is likely to be tabled in Parliament in the coming Monsoon session, the ministry has said, "In such areas where prospecting has been conducted and sufficient evidence of enhanced mineralisation has been established through a prospecting report and feasibility study, and where no application for a mining lease is pending, the state government may by notification invite applications in the form of competitive bids for any minerals excepting any minerals excepting coal, for grant of mining lease to the bidder who in accordance with the provisions of sub-section (5) quotes the best financial bid for the prospecting re port and feasibility study for the area so notified." The financial bidding sys tem would not be applicable to atomic minerals, according to the new draft. The ministry says the rationale behind the proposed bidding system is to allow the mineral-rich states recover a value for its efforts to manage the information related to the survey or regional exploration work. "A financial bid may either be a lump sum, recoverable in installment or a percentage of royalty or profit sharing, as may be specified in the notification," the new Draft says. For determination of the best bid, the weightage will be numerical in character and enable a composite ranking based on the bid price and marks assigned for each criterion. The mines ministry is also trying to seek nod for getting all forest clearances obtained by the mineral-rich states before the leases are approved. The ministry will seek Parliament's approval for ensuring forest clearance beforehand under the Forest (Conservation) Act 1980 and wildlife clearance under the Wild Life (Protection) Act 1962, or any other law for the time being in force and securing the permissions from the owners of the land and those having occupation rights so as to enable commencement of operations. The ministry has found quite a few prospecting and mining licence proposals are stuck owing to lack of clearances from the Central and state governments.

(Source:http://epaper.indianexpress.com/IE/IEH/2010/06/07/ArticleHtmls/07_06_2010_015_006.shtml?Mode=1)

GIPCL wants Charetha vacated, villagers threaten to immolate

It Allegedly Changed the River Mouth towards the Village to Protect Its Lignite Mine

Surat, June 7, 2010: The fast approaching monsoon season is giving sleepless nights to residents of Charetha village in Mangrol taluka. Reason: Gujarat Industries Power Company Limited (GIPCL) has allegedly changed the river mouth towards the village in order to protect its lignite mine from being washed out during the monsoon season. Residents alleged the company want them to vacate the village so that they can expand their lignite mining operations in the near future. For this, the company has offered to purchase the remaining 100 hectare land — about 200 hectare land owned by the villagers was claimed by the company in 1995 for setting up lignite mine — owned by the village farmers at throw away prices. The 147-odd villagers of Charetha have threatened self-immolation, if the river mouth is not diverted to other side before monsoon arrives. Abdullah Mohammed Bhula, deputy sarpanch of Chare-tha village said, “We will die, but not leave this village. The company has literally diverted the river mouth towards the village so that the entire village gets flooded during the monsoon and that they (company) can claim the rest of the land”. According to Bhula, various representations have been made to the district administration, state government and the Central government to protect the rights of the poor farmers residing in the village. But, the government is not interested to save the lives of 147 villagers. Ismail Davji Bhula, a farmer said, “We have been living peacefully from decades now. We are not opposing the company's lignite mining activity in our area, but we want our safety. There was no need to divert the river mouth toward the village. If any untoward incident would occur in the monsoon season then the entire responsibility would be of the state government and GIPCL.” When contacted the GIPCL company officials refused to comment on the issue.

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

Centre to crack down on mining mafia in Karnataka: Handique

New Delhi, June 6, 2010: With the Karnataka government rejecting suggestions for a CBI probe, the Union Mines Ministry is pursuing other moves to crack down on the mining mafia in the state.

In the face of the Karnataka government's resistance to a CBI probe, the matter was referred to the Cabinet and the issue was discussed in the Prime Minister's office, Mines Minister B K Handique told PTI. One of his concerns was whether any money from illegal mining was going to terrorists and the issue was discussed at the PMO. Asserting that the "crackdown" on illegal mining was on the top of his agenda, Handique said that at present there were not enough legal provisions for central intervention and he would make attempts to incorporate provisions for this in the proposed Mining Act. "There were discussions at the PMO level (on illegal mining). It would be tracked down. If money goes to terrorists, then licenses will be cancelled. It is a big thing. With NIA (National Investigation Agency) now, things are moving," he said. "We thought that CBI will be the right approach. But we can't enforce it. We have given it to Cabinet now. We have asked them (their help) for investigation," he said. Asked to elaborate, he said that there was a provision in the law governing NIA and the Home Ministry may be on the path of tracking where the money was going. "They have been consulting us also on this," he added. Handique said the problem of not having adequate provisions in the law now was also discussed with Law Minister Veerappa Moily. "With Moily, we have discussed. We have discussed this with Chidambaram also. He had organised a meeting." Handique's insistence on a probe and action in Karnataka comes against the backdrop of allegations of illegal mining by the Reddy brothers, who are ministers in the Karnataka government. The current moves come at a time when Karnataka Governor and former Union Law Minister H S Bharadwaj has decided to refer to the Election Commission a complaint seeking disqualification of three ministers, including G Janardhana Reddy and his brother and Revenue Minister G Karunakara Reddy, from the state assembly. Hitting out at the state government, Handique said, "Illegal mining is a dent on the industry... They (Karnataka government) don't give (permission for CBI probe). They say without CBI enquiry we can control. We (Centre) cannot take any action. It is a criminal act."  Admitting that he faced severe political pressure in his crusade against illegal mining, Handique said, "Many MPs have come to me. (it is a) sensitive area, no doubt about it." He said the proposed legislation would ensure that anybody can file a case against illegal mining, contrary to the provisions in the existing MMDR Act, under which only state government officials have the powers. Karnataka is one of the mineral rich states in India with about 11 percent of the country's hematite iron ore reserves. It has over 9,000 million tonnes of iron ore resources concentrated in the Bellary-Hospet area, while the rest is found in the Chitradurga, Bagalkot and Tumkur districts.

(Source:http://www.deccanherald.com/content/73754/centre-crack-down-mining-mafia.html)

Mineral Regulation Bill on cards: Moily

Chikkaballapur, June 6, 2010: The Union Government will soon introduce Mineral Regulation Bill to nationalise mines, Law and Justice Minister M Veerappa Moily has said.

Speaking to mediapersons here on Sunday, the Union minister said the proposed Bill would impose restrictions on export of ores by a “single person.”  “The Chinese government has conserved its natural resources by importing them from India. It is being contemplated implement similar measures in India too,” the minister said. Moily added that a legal framework would be provided for utilisation of the indigenous mineral resources for the industrial advancement of the nation. The Bill would also check “monopoly” over national resource and instead ensure its equitable distribution.

Land acquisition

Referring to the investments promised in the recently concluded Global Investors Meet, Moily said while the promised investments would propel industrial development in the State, the government should also weigh the fall out on agriculture as well. The state government has been directed to follow land acquisition regulations applicable to Special Economic Zones. A law has been enacted providing for allotting only 10 per cent of the farm land for industrial purposes. The State should permit setting up industries under central regulations. Moily, however, said the State Government should provide infrastructure for industries at the earliest failing which it would be virtually impossible to ensure industrial development. Neighbouring Andhra Pradesh and Tamil Nadu have created conducive investment environment by providing road, water and other necessary infrastructure. The Karnataka government too should emulate the model, he suggested.

Note of caution

Sounding a caution note, Moily said land mafia would exploit the opportunity and thus throw a spanner in allotment of land for industries at fair prices. The government should factor in the interest of farmers while acquiring land. Focus should be more on proliferation of industries in barren areas. Prior consent of the farmers should be obtained before acquiring lands and Land Acquisition Act should be scrupulously adhered to. He suggested the government to conduct environment impact assessment too and see that permission was not granted to any polluting industries.

Gandhian principles

Moily also took part in the concluding day “Gandhi Nadige,” a 2-day workshop on personality development for Congress workers. Speaking on the occasion, Moily said the objective of the camp was to usher in social reform through character building at the individual level. He called upon party workers to imbibe Gandhian principles.  “The ultimate aim is to drive the message to public that Congress stands for people,” he said. The party cadres, through the workshop, should be able to forge bond with the leaders and the public at large, and conceive strategies and launch struggles to achieve just goals, Moily said.

Public grievances

Moily also received petitions from the public on their grievances at his office in the City. People from several parts of the taluk, particularly villagers, conveyed their problems to the Minister. Majority of the petitions sought providing school building, drinking water, clearing encroachment and other issues. Former Taluk Panchayat president Subbarayappa and others alleged that the Deputy Commissioner had been causing inordinate delay in allotting a site for construction of the high school in Angarekhanahalli village of the taluk. They pointed out that Minister had earlier directed to identify the location and the DC is yet to act on former’s direction. Moily promised to give suitable instructions to the DC over phone. Bagepalli legislator N Sampangi, District Congress Committee president M Anjinappa and others were present.

(Source:http://www.deccanherald.com/content/73842/mineral-regulation-bill-cards-moily.html)

Ramesh asks states to amend rules on mining minor minerals

New Delhi, June 6, 2010: Concerned over the environment impact of rampant mining of minor minerals such as sand and fuller earth, Environment Minister Jairam Ramesh has asked the states to amend rules for such activities in line with the guidelines framed by his ministry.

In letters written to all chief ministers, Ramesh said "as there is no uniform framework to regulate the mining of minor minerals, my ministry has evolved a set of guidelines for their sustainable mining." He said the guidelines were formulated on the basis of recommendations of a group constituted under the environment secretary last year as mining of minor minerals has been increasing over the years and was starting to have a significant adverse impact on our ecology. A re-look on the classification of major and minor minerals, fixing minimum size of mine and minimum period of mine lease, a mandatory mine plan and rehabilitation of mined out area are among the suggestions made by the taskforce. The task force suggested that the Mining Ministry along with the Bureau of Mines in consultation with the state governments re-examine the classification of minerals. "The minerals should be classified into major and minor categories on the basis of their economic value instead of end-usage," says the report, according to a senior environment official. It substantiated its view by pointing out that in cases of minor minerals like silica sand and limestone, the scale of mechanisation and production level was much higher than those of industrial mineral mines.Boulder, shingle, brick-earth, fuller''s earth, marble, stone used for making utensils, ordinary earth, road metal, line shell, kankar and limestone used in kilns for manufacture of lime used as building material are some of the minor minerals presently identified by the government. The 16-member group has suggested that minimum size of mine lease should be five hectares and minimum period of mine lease should be five years, the official said. "It is also recommended that mine plan, as in the case of major minerals, should be made mandatory for minor minerals as well.  "These should specifically include the provision for reclamation and rehabilitation of mined out area, progressive mine closure plan and post mine land use," the task force has said suggesting setting up of a separate corpus for the purpose. In view of the environmental damage being caused by unregulated river bed mining of sand, buzari and boulders, it has advocated the need for identifying specific river stretches so as to ensure requisite safeguard measures.The panel, while favouring restricting of the mining depth to three metres, has said, "for carrying out mining in proximity to any bridge or embankment, appropriate safety zone should be worked out on case to case basis, taking into account the structural parameters, locational aspects." Stressing that the recommendations would preserve ecology in a long-run, the Minister has asked the states to ensure that they are incorporated in the Mineral Concession Rules for Mining of Minor Minerals under Section 15 of the Mines and Minerals (Development and Regulation) Act, 1957.

(Source:http://www.deccanherald.com/content/73727/ramesh-asks-states-amend-rules.html)

Coal India to buy into five mines overseas

New Delhi, June 4, 2010: With Prime Minister Manmohan Singh’s office asking the state-run behemoths to intensify their efforts to acquire overseas coal properties to feed their plants, navratna company Coal India Limited (CIL) is all set to acquire stakes in at least five coal mines in the USA, Australia and Indonesia within the next two months with an estimated investment of nearly Rs 8,000 crore. “We have been holding meetings with a number of companies and have zeroed in on five with whom we would enter into agreements to acquire stakes through equity contracts. Of the five, two each are in Indonesia and Australia and one is in the United States. We intend to sign agreements with them within the next two months. The sub-committee of our board has approved these acquisitions, which would be at an estimated expenditure of nearly Rs 8,000 crore,” CIL chairman and managing director Partha S Bhattacharya told The Indian Express. All these mines together have estimated reserves of 280 million tonnes and CIL expects to import nearly 28 million tonnes every year for the country’s domestic needs. The navratna PSU, which is expected to hit the market soon, has hired the services of Bank of America-Merrill Lynch, Royal Bank of Canada and Royal Bank of Scotland to help it execute these deals. Though Bhattacharya refused to name the companies, it was reliably learnt that of the five firms, two are Peabody Energy Corporation (USA) and Sinar Mas (Indonesia). CIL had already lined up a huge war chest to fulfil its overseas expansion plan and has a cash-reserve of nearly Rs 30,000 crore. Realising that China has stolen the march in securing global mineral assets, the Prime Minister’s Office had earlier proposed simplifying the acquisition methods. At the behest of the PMO, the National Manufacturing Competitiveness Council (NMCC) had convened a meeting of at least 12 PSU chiefs recently, including those from CIL, National Mineral Development Corporation, Rashtriya Ispat Nigam Limited and National Thermal Power Corporation, to solicit their views on securing mineral assets abroad.

(Source:http://www.indianexpress.com/news/coal-india-to-buy-into-five-mines-overseas/628800/0 )

‘Reds lack revolutionary vision’

Mumbai, June 4, 2010: ‘‘Maoists have revolutionary fighting methods but not a revolutionary vision,’’ writer Arundhati Roy said in Mumbai on Wednesday. ‘‘Their mining policy is not very different from that of the state. They too would mine bauxite instead of leaving it in the hills, which is what the people they are fighting for want,’’ she said. She, however, lauded Maoists for fighting unjust policies of the State. Roy said a little dissent would only make them strong. ‘‘We can’t betray the causes we are fighting for.’’ “The Naxal movement could be nothing but an armed struggle. I am not supporting violence. But I am also completely against contemptuous atrocities-based political analysis,” she said. “It ought to be an armed movement. Gandhian way of opposition needs an audience, which is absent here. People have debated long before choosing this form of struggle ... I am on this side of line. I do not care... pick me up, put me in jail,” she dared the State. The writer, who spent time with tribals and Maoists in Dandakaranya jungles, was addressing a packed hall at Mumbai Marathi Patrakar Sangh where Committee for Protection of Democratic Rights had organized a public meeting on “War on the people” Terming development of tribal areas as ‘‘a race for destruction’’, she said huge mining contracts in the heart of the tribal areas in central India pose a threat not only to tribals but to entire humanity, given the damage it will do to the environment.

(Source:http://timesofindia.indiatimes.com/India/Reds-lack-revolutionary-vision/articleshow/6009534.cms)

Mining site could be the key, says Lakshmi Mittal

Bangalore, June 4, 2010:ArcelorMittal chief Lakshmi Mittal on Thursday said he would accord the topmost priority to the company’s Rs 30,000-crore steel project in Karnataka if the State government would keep its commitments on the project and provide all the necessary clearances.

Addressing the media, Mittal indicated that the location was yet an open issue. However, asked about mining leases, Mittal, who maintained that land, power, ore availability were all necessary for a steel project, skirted the issue saying “let’s not discuss mining sites at the moment.” Admitting that he was quite aware of the controvery surrounding the issue in the State, and that mining issue was still being sorted out, Mittal said: “Mining location is a problem. We are in the process of working with the governemnt to get mining lease. We do not have a mining lease, but the process is on. As the State had no control over it, the government can only recommend...to see how we progress. We have not identified a mining site.” “We have water allocated for the plant. For power, we are working with Power Corporation to explore a joint venture. We do not have coal linkages but dialogue is on,” he said, adding “we are at preliminary stage of MoU” and real progress would only begin now.On when would he expect the steel project, given all clearances came through, to go on stream, he said “once foundation begins, it should take 36 months. Foundation means once land is acquired, engineering done, then start counting the time.” He was unwilling to put a specific timeframe for the completion period.In States such as Orissa and Jharkhand, ArcelorMittal was facing many issues involving land, forest and environment clearances et al, Mittal said. As for the mega six-million tonne steel project, many milestones were yet to be achieved, but his experience in Karnataka had been pleasant. “The Karnataka government’s attitude and positive support during the past few months since my meeting with Chief Minister Yeddyurappa and signing of the MoU has been a great experience,” he said adding “he was quite happy and excited about the project’s prospects in the State. To a poser whether there had been any trade-offs given the fact he was now focussing more on Karnataka than Jharkhand and Orissa, Mittal said there was no question of it. “Arcelor Mittal believes in growing in India and there is no trade-off. What is happening is priorities will change depending on approvals and market development. If we see progress in Karnataka is ahead of others, then this project will get priority,” he said. “Our position is we will bring in the investment and the rest is upto the State,” he observed.However, noting that when he had raised the issue about success rate of the projects the State had announced, the chief minister and officials he spoke to were non-commital.

(Source: http://www.deccanherald.com/content/73276/mining-site-could-key-says.html)

ArcelorMittal upbeat on Bellary steel facility

Bangalore, June 4, 2010: Mr Lakshmi Mittal, Chairman, ArcelorMittal Ltd, today said that the Karnataka Government's positive support and commitment had enabled the proposed steel plant near Bellary progress in the right direction. “Jharkhand and Orissa plants had issues of land, forest and environment clearances and protests by local bodies which slowed the progress there, but the progress here is much better,” he told reporters here.Addressing a press conference on the sidelines of the Global Investors Meet in the city, Mr Mittal said, “I don't know how long is the race and how many hurdles are there, but the obstacles would be smaller here.”ArcelorMittal today signed an MoU with the Karnataka Government to set up a six-million-tonne per annum integrated steel plant and a 750-MW power generation at an investment of Rs 30,000 crore in Bellary district.Land allocation for the plant is in progress and the Karnataka Government has assured the steel major of all clearances in a ‘speedy manner,' he said. ArcelorMittal has already paid around Rs 260 crore towards land that has been allocated.The water for the project has already been allocated and for the power plant the company was working with the power corporation for a joint venture.He said that the mining allocation was in process and the mining lease has to be secured. “The process has just begun.” For the completion of the project, he quoted a time frame of 36 months from the time the ‘foundation begins.'Responding to a question on whether there was a trade-off in terms of the quality of ore or mining costs in choosing Karnataka as a location, Mr Mittal replied in the negative.“There are no trade-offs for a steel company. We need to have all the elements to make it happen. Our progress here will take priority,” he said.Terming the euro crisis as ‘not a happy situation,' he pointed out that this has on the other hand, increased the competitiveness of the manufacturing part of the business.

(Source:http://www.thehindubusinessline.com/2010/06/04/stories/2010060451830200.htm)

LN Mittal signs MoU for Karnataka plant

Bangalore, June 4, 2010: Global steel giant ArcelorMittal on Thursday entered into pact with the Karnataka government to set up a Rs 30,000-crore plant and hoped that the project would come up faster compared to its plans in Jharkhand and Orissa. "We are pleased with the progress and today we have signed an MoU with the Karnataka government. We hope that we will make fast progress and the project can come up faster than compared to other states (Jharkhand and Orissa)," ArcelorMittal Chairman and CEO Lakshmi Mittal said at the ongoing two-day Global Investors Meet in Bangalore. Mittal had entered into an initial agreement with Karnataka government to set up an estimated six million tones steel plant in iron ore rich Bellary district. The company has been struggling to launch its proposed Rs 1 lakh crore steel projects in Orissa and Jharkhand (12mpta each) for about five years now which are stuck due to regulatory hurdles and problems in land acquisition. "If we see progress in Karanataka ahead of other states, this project will take first priority," Mittal said.During his last visit, Mittal had criticized India's policies, saying it was not ready for big ticket investment. Referring to projects in Orissa and Jharkhand, he said, "In other states, we have a lot of other issues in connection with not only land, forest approvals, environment clearances and protest. So the progress is slow”. “So, there is a lot of milestones to be achieved before we can say we are happy with the progress (made in other states)," he said. The world's largest steel maker is now looking for an alternate site Jharkhand while going slow on its proposed project in Orissa. "In Karnataka, we have already got land allocation and we have been assured by the government that other requirements will be processed speedily. That is why we believe the progress will be better," he said. To a question whether there had been trade-offs given the fact he was now focussing more on Karnataka than on Jharkhand and Orissa, he said, "ArcelorMittal believes in growing in India and there is no trade-off. “What is happening is priorities will change depending on approvals and market development. If see that progress in Karnataka is ahead of others, then this project will get priority. “Asked when the project would be completed Mittal said it would take 36 months "once the foundation begins, foundation means once the land is acquired, engineering done, then start counting the time”. “We don't know how long the race is and how many hurdles are there. But we are encouraged by the support of the state government. “Admitting that the mining issue in Karnataka is still being sorted out, Mittal said "Mining location is a problem. We are in the process of working with the government to get mining lease. We do not have a mining lease, but the process is on”. “As the state had no control over it, the government can only recommend...to see how we progress. We have not identified a mining site", he said. The mining lease is granted by the central government on the recommendations of the state government. “We have also got the water allocated for the steel plant. For the power plant we are working with power corporation here for a joint venture", he said. “We do not have coal linkages but at least a dialogue is on, he said. “We are now only at the preliminary stage of the MOU" and the real progress would only begin now, he said. He reiterated that they were happy over the "positive support and attitude" of the administration. In six months land had been allocated and payment had been done. "The government has demonstrated a very strong commitment for the project' "This gives me a lot of confidence and happiness that we will make progress.

(Source:http://beta.profit.ndtv.com/news/show/ln-mittal-signs-mou-for-karnataka-plant-69362)

NTPC to buy Australian coal mine

New Delhi, June 3, 2010: India’s largest power producer, NTPC, is set to acquire controlling interest in a 720-million-tonne coal field in Australia in a deal valued at $1-1.5 billion, which will enable it to fire about 3,500 mw of power capacity. The coal mines, located near Perth in western Australia, will allow NTPC to bring home up to 10 million tonnes of coal annually for its plants. “NTPC is in touch with a power producer in Australia that has expressed interest in selling the company’s assets that include a small power project, captive coal mine and large greenfield coal field,” said a government official privy to the development. “We have got some good offers from overseas coal mining companies recently. We are studying the proposals and taking information before negotiations begin on acquisitions,” NTPC CMD RS Sharma told ET. The debt-ridden promoters (of the Australian project) may sell the 416 mw power project along with its captive coal mine separately from the virgin coal field. In this case, NTPC is likely to participate only for the greenfield coal project that will give it access to 7-10 million tonnes of good-quality thermal coal. The annual production from the field could go over 12 million tonnes per annum. “The company (NTPC) will place its bid once the mode of selloff is decided by its current owners later this month,” the official added, refusing to name the project or its promoters citing confidentiality clause associated with such talks. In case the entire project is sold as one unit, NTPC would acquire the power project as well. In this case, up to 3 million tonnes of coal from the greenfield project will used for the power plant. The existing captive mine of the power plant is depleting and will exhaust in 2-3 years. A high-level delegation from the power ministry and NTPC, which is going to Australia this month, is expected to finalise the details of the proposal and would like to strike a deal at the earliest. Along with the Australian offer, NTPC is in advanced stages of discussion to pick up equity stakes in two coal fields in Indonesia, and is studying prospects of acquiring interest in two coal blocks on offer in Mozambique and one in South Africa. NTPC needs about 125 million tonnes of coal annually for existing power plants and imports 10 million tonnes to meet the gap. The imports are expected to cross 30 million tonnes by 2017, forcing the company to look at alternative routes to build fuel security. It is already working on its eight captive coal blocks with peak production capacity of 83 million tonnes per annum.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/NTPC-to-buy-Australian-coal-mine/articleshow/6005504.cms)

India set to defend fuel subsidy at G20 meet

New Delhi, June 3, 2010: India is expected to stand firm on its fuel subsidy regime at the meeting of G20 finance ministers at Busan in South Korea on Friday and tear into a report prepared for the grouping, blaming government dole for encouraging inefficient use of fossil fuels and discouraging a switch to greener energy sources. Like many other emerging economies, Indian government controls prices of motor and kitchen fuels besides coal and provides subsidies to keep prices of petrol, diesel, kerosene and cooking gas besides farm power artificially low. There is, however, a move to rationalise the subsidy regime and make it more targetted towards the needy. FM Pranab Mukehrjee is heading the Indian delegation at the ministerial round. According to government documents, India is responding to the report — prepared by the International Energy Agency, Opec, OECD and the World Bank as part of the G20 initiative on 'climate change finance' — by pointing out how it does not take into account subsidies given by developed nations to "alternative energy sources... that could be detrimental to the environment on a macro perspective". Another sore point is the absence in the social cost benefit analysis of how subsidy withdrawal will impact the poor. "This aspect should not be left out... Developing countries like India need to ensure efficient energy security along with high overall growth of the economy. It is also crucial to provide inclusive growth which mandates higher consumption of energy at affordable prices, especially for the poor to meet their cooking and lighting requirements." Questioning the focus on consumer subsidy and exclusion of producer subsidy, or dole extended by oil producing countries, India is pushing for a balance between the two in the final report. It is also pointing out how the report does not include subsidies on non-fossil fuels such as nuclear energy given by a number of developed economies. India is also expressing concern over the fact that the report raises several issues on the basis of assumptions. While the report emphasises OECD countries raising taxes on energy — mainly fossil transport fuels — as a negative subsidy amounting to over $400 billion a year, it assumes low taxation in India. "India too has substantial central and sub-national taxes... that impact the final prices". India has some of the highest motor fuel tax rates in the world, sometimes accounting for nearly half the street price. Challenging the method adopted for the report, India is pointing out that it is "distortionary" and could be because of the "price-gap approach" taken by the authors. "It may be useful to examine the multilateral phasing out in per capita term or as percentage of GDP, rather than absolute (terms) and projections made for future on that basis."

(Source:http://timesofindia.indiatimes.com/Biz/India-Business/India-set-to-defend-fuel-subsidy-at-G20-meet/articleshow/6005320.cms)

CIL's Rs 12,000 crore IPO to depend on market conditions

New Delhi, June 2, 2010: Indicating that the initial public offering for Coal India Limited could be postponed beyond August, the Government on Wednesday said that it would wait for good market conditions to launch it. "We had planned to bring the Coal India Ltd (CIL) IPO by July or August. But it could come in September. We will bring the issue when conditions are good," Coal Minister Sriprakash Jaiswal told reporters here. "Coal India will file its DRHP (Draft Red Herring Prospectus) by the month-end. We will definitely bring the CIL IPO," Mr. Jaiswal added. Mr. Jaiswal had earlier said the government could mop up over Rs 12,000 crore through the CIL issue. The government is looking at divesting 10 per cent of its equity through the IPO. At present, the Centre owns 100 per cent equity in CIL. The Union Cabinet is yet to clear the proposal. Some Left-wing trade unions have also been opposing the proposed sell-off. On using imported coal prices as the benchmark for domestic coal, the minister said, "We have no such plans (as of now)." However, Mr. Jaiswal had said last week that "in the recent price revision exercise, efforts have been made to price higher grades of non-coking coal of Eastern Coalfield Ltd closer to import parity price...it needs to be carried further." The Planning Commission has also supported linking domestic coal prices to that of imported coal. The government has been taking steps to bridge the coal demand-supply gap, which the minister pegged at 60 million tonnes for the current fiscal, by importing the fuel as well as mining it in joint ventures with foreign companies overseas and then shipping the produce to India. "There are two options — one is importing coal to bridge the gap. The other is acquiring coal properties abroad in joint ventures for meeting our demand," he said. "We are evaluating which of the two options would be more beneficial for Coal India. We will decide accordingly," he said. CIL is in talks with US-based Massey Energy, Peabody Energy and Indonesia's Novem/Sinarma for mining coal jointly. At present, the coal major is conducting due diligence on five properties of these firms in Australia, USA and Indonesia. "We are also scouting in South African nations," he said. On Naxal menace affecting the country's coal production, he said, "Wherever the law and order situation is not good, coal mining work is hampered. But the government has no plans to halt mining in those areas." India produced 531 million tonnes of coal during the last fiscal, out of which CIL's output stood at 431.5 million tonnes.

(Source:http://beta.thehindu.com/business/article444586.ece)

China tightens control on rare earth elements

Beijing, June 2, 2010: The future of India's, and the world's, green technologies depends on them. So do mobile phones, MP3 players and even missiles. Rare earths are a select group of 17 elements that are crucial to many of the world's most advanced technologies. They also happen to be found widely in China, which is estimated to account for more than 95 per cent of their global supply. The Chinese government is now considering tightening its control over the production and export of the valuable minerals, by restricting private companies' access to their mines and their license to trade. China's State Council, or Cabinet, is examining a proposal that calls for limiting the production of rare earths to a select group of State-run enterprises, a move that would give the government almost complete control over both the destinations of export and a much greater say in regulating supply and prices. “Once approved, the Ministry of Land and Resources (MLR) will issue licences and start allocating the resources to those companies,” an unnamed official told the official China Daily newspaper, which did not name the companies that have been short-listed. “Private enterprises can only collaborate with the selected firms through shareholding,” said the official. The rising importance of the 17 rare earth elements, which are crucial to a range of green technologies from hybrid cars and wind turbines to solar cells, has seen a proliferation of illegal mines in China. The mining of rare earths has also resulted in severe environmental damage in China's south, prompting the government to consider tighter regulations. Many countries have abandoned projects to mine the elements. The illegal mining and unregulated trade has, however, also resulted in keeping in check the prices of the elements for foreign companies. The prices of rare earths have only risen by 20 per cent over the last three decades in spite of fast-growing demand, the China Daily reported. The government is now hoping that stricter regulations will make the elements more valuable. “The mineral is very much undervalued because of over-exploitation and improper management,” said Zhang Anwen, deputy secretary-general of the Chinese Society of Rare Earths. The move to more tightly regulate the mining of rare earths has sparked concerns abroad. Several countries, including the United States, are heavily dependent on China for rare earth elements. Earlier moves to cap production and expand government control over trade brought China criticism from the World Trade Organisation (WTO), which said restrictions on the export of some raw materials was illegal. In March, China announced a cap in the production of rare earths for the rest of the year, limiting production to a 8 per cent rise from the previous year. China has also stopped issuing licences for domestic companies to mine rare earths until June of next year.

(Source:http://beta.thehindu.com/news/international/article444901.ece)

Rs 60 cr/year spent on dead mines

Kudremukh, June 2, 2010: Employees wear uniforms every day, go to work at 8am. But curtains came down on the mining activity at the stroke of midnight on Dec 31, 2005. Four and a half years after the Supreme Court directed the KIOCL (Kudremukh Iron Ore Co Ltd) to close mining activity to protect the pristine Western Ghats, over 400 KIOCL employees are still working at the mines. Their only work is to maintain the Rs 700-crore machinery (all still inside the Kudremukh National Park). The company is spending over Rs 60 crore a year in maintaining the machinery and the people. While these skilled engineers have ended up doing small-time jobs like lubricating the machinery, KIOCL is clueless on what to do with the huge machinery that have begun to rust. “The mines are to be maintained because the machinery is worth Rs 700 crore. Kudremukh was the only mine with magnetite ore. In others, it is hematite. So it is technically not feasible to use the machinery in other mines. We are looking at companies from abroad to sell it. Otherwise, it will end up in scrap,” KIOCL chairman and managing director K Ranganath told The Times of India. The township has 2,000 houses, most vacant now. There is a hospital, a park, two schools but with no people. Some employees are hopeful that the mine will be reopened as the company is still continuing operations. “For almost five years, we have done nothing except maintaining machinery and doing rounds of the mines. Most of us are mining engineers. I don’t know how long we can continue without working. But we hear the steel ministry is trying to reopen the mines,’’ said an employee. Shockingly, though it is not operational, the mine continues to pollute the Kudremukh National Park. According to Ranganath, 24 billion tonnes of loose magnetite ore are lying open in the mines. “The ore can wash away into Bhadra and pollute it even more. Someone has to remove it from there,” he said. Praveen Bhargav of Wildlife First, which fought for the closure of the mines, said it was only an excuse. “The siltation in Bhadra had increased due to the mining residues flowing into it. Same with Lakya dam that had impacted the ecology massively where the mine’s mud tailings used to be dumped,’’ he said.

(Source:http://timesofindia.indiatimes.com/City/Bangalore/Rs-60-cr/year-spent-on-dead-mines/articleshow/6000930.cms)

Welcome to ghost town

Kudremukh, June 2, 2010: The hospital stands deserted, the clock at the bus stand stands still. The repair shops of KIOCL in Kudremukh are like a monster's den. Giant shovels and mining trucks stare at you as a few workers spend their time fixing some nuts and bolts of these machines that have not been used for almost five years now. "Most of the machinery has been imported from Japan and US. We have 120 tonne-truck engines. Some trucks imported from US cost as much as Rs 6.5 crore," said a worker. The sleepy township has just 400 employees left. But every morning employees go to work in uniforms. "We have periodical maintenance drives for all machines. For some it is every 400 hours while for others it is every 200 hours. That is all we have been doing," said a worker.  Their children go to the Kendriya Vidyalaya near the town bus stand. Said school principal K N Bhat: "There used to be 1,200 children here, now there are 300. We are managing with a skeletal staff of 16.'' What has taken the authorities so long to close operations? "We have to sell it at an appropriate price so that the government does not lose its investment. We have discussed the matter with the ministry of mines, the ministry of environment and forests (MOEF) and with the steel ministry asking them to take action," said KIOCL CMD K Ranganath. But nothing has moved on ground. According to the legal officer of KIOCL: "We had prepared a mine closure plan and had submitted it to the Indian Bureau of Mines, we got the approval and submitted to MOEF. In the meanwhile the Supreme Court appointed IIT Delhi as an expert body. They came here to study the area but after 2006 neither IIT Delhi nor the ministry of mines told us what to do.'' No one is clear as to when the operations will stop. "The mining company should vacate the land as per the Supreme Court order. Otherwise, it will continue to fragment the fragile wildlife habitat," said Sanjay Gubbi of Wildlife Conservation Society - India Program who has been working in the ecologically fragile zone for many years.

(Source:http://timesofindia.indiatimes.com/City/Bangalore/Welcome-to-ghost-town/articleshow/6000684.cms)

UPA report card: India is 3rd largest steel maker at 72 mt

New Delhi, June 2, 2010: India raised its steel production capacity to 72.76 million tonnes during the last fiscal from 66.36 million tonnes in the year-ago period, emerging as the third largest steel maker in the world, the government said on Tuesday. "India emerged as the third largest steel producer in the world during the calendar year 2009; capacity for crude steel production grew from 66.36 million tonnes in 2008-09 to 72.76 million tonnes in 2009-10," the UPA-II government said in its report card to the nation. With the state-owned and privately-held steel firms undertaking capacity enhancement programmes to meet the rising requirement of commodity coming mainly from the infrastructure and housing sectors, India's steel production capacity is pegged to grow mani-fold in next few years.  The Steel Ministry has set a target of 124 million tonnes production capacity by 2012. In order to attract more foreign investment, the country is working to reform the mining sector which is plagued by red-tapism among other things.  "A complete and holistic reform in the mining sector is being attempted through a new legislation governing the development and regulation of mines and minerals. The reform process will place sustainability and local area development at the centre stage of the reform process," it said. "It will bring about transparency, ensure equity, provide a mechanism for addressing issues of delay and discretion, along with incentives to encourage induction of high technology for exploration and for scientific mining practices," it added.  The Ministry of Mines is in the process of replacing the existing Mines and Minerals Development and Regulations Act, 1957 with a new act to make the policy more investor friendly.  The new act is at present being vetted by the Ministry of Law, after which it will be sent to the Cabinet for its approval.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/UPA-report-card-India-is-3rd-largest-steel-maker-at-72-mt/articleshow/6000424.cms)

Jairam Ramesh walks on hot coals again?

New Delhi, June 1, 2010: Environment Minister Jairam Ramesh could be heading into more political turbulence, this time with the Prime Minister’s Office (PMO). Ramesh has rejected the coal ministry’s demand  backed by the PMO to increase mining areas by 30 per cent, saying only five per cent is possible. This move is to protect the country’s dense forests. The environment ministry defines dense forests as ‘no go’ areas for mining. ‘Go’ areas are moderately dense and open forests. At least 48 per cent of mining areas fall in the ‘no go’ zone. On May 21, T.K.A. Nair, principal secretary to Prime Minister Manmohan Singh, told the environment ministry the present definition of ‘no go’ areas wasn’t agreeable. A meeting was called after the coal ministry objected, saying that up to 35 per cent of coal mining areas would fall under this category.   On Monday, Ramesh told HT that at most, ‘no go’ areas could be reduced by five per cent. “They (coal ministry) want 30 per cent increase in go areas but we cannot increase by more than 5 per cent,” he said.

(Source:http://www.hindustantimes.com/Jairam-walks-on-hot-coals-again/Article1-551378.aspx)

State may cancel mining licenses under scanner

Kolkata/ Bhubaneswar, June 1, 2010: Faced with a barrage of criticism over the multi million crore mining scam and wary of the storm to be raised over it by the Opposition in the ensuing Assembly session scheduled to commence on June 22, the state government is likely to cancel the mining licenses of Ram Bahadur Thakur Ltd (RBTL) and Arjun Ladha Company Ltd (ALCL).Both RBTL and ALCL were allegedly carrying out illegal mining operations on reserved forest land without the requisite clearance of the Union ministry of environment and forests (MoEF). These two companies were accused of involvement in the mining scam which had led to stiff protests from the Opposition parties and caught the state government in a tight spot. “The state government is likely to cancel the mining licenses of RBTL and ALCL based on available evidence. We know that the Opposition is going to corner us on the issue of mining scam in the ensuing Assembly session. Hence, the licenses are likely to be cancelled before the Assembly session kicks off”, a highly placed official source told Business Standard.  There are 245 cases of renewal of mining licenses in the state and notices have already been issued to these companies to furnish the necessary documents for renewal. It may be noted that the operations of as many as 163 mines were suspended in the state in the wake of the mining scam. Earlier this month, the Supreme Court of India started hearing on a case relating to loot of mineral resources in Orissa. A three-member bench of the apex court headed by Chief Justice K G Balakrishnan had asked the Orissa government to file its response within six weeks before further hearing is taken up. The order was passed by the apex court after the state government had informed that it had received the report of the Central Empowered Committee (CEC). The state government had also informed the Supreme Court that it would implement most of the recommendations of CEC. It may be noted that the CEC submitted its interim report to the Supreme Court on April 26, 2010 with a set of recommendations pertaining to illegal mining activities in Orissa. The CEC had suggested that the Renewal Mining Lease (RML) cases, which are pending with the state government for a long time, should be disposed of expeditiously in a time bound manner. Deemed extension clauses should only be used in contingency situation and can’t be availed indefinitely. It also suggested that the mining in non-forest areas can be allowed only after obtaining the environmental and other statutory clearances by the lease holders.

(Source: http://www.business-standard.com/india/news/state-may-cancel-mining-licenses-under-scanner/396633/)

HP govt gets 3 months to collect penalty from erring mining units

Shimla, June 1, 2010: The Mining department’s apathy has cost the state exchequer Rs 22 crore. At least 18 mining units have been operating at the Damtal area in Kangra district by paying just Rs 5.33 lakh against over Rs 22 crore chargeable on account of royalty, penalty and compounding for Rs 4.42 lakh tonnes of illegal mineral extracted. The Himachal Pradesh High Court has now directed the government not only to collect the total penalty of Rs 22 crore with retrospective effect from the 18 erring mining units, but also charge penalty from other erring mining and stone crushing units across the state. Issuing the order of May 11, the division bench of Chief Justice Kurien Joseph and Justice R B Mishra directed the Industries department to collect the penalty within a period of three months. The matter came to light in a civil writ petition filed by Jyotsna Rewal Dua on behalf of Harbhajan Singh of Damtal, regarding illegal mining in Damtal bridge area. However, the Industries department is yet to wake up from its slumber to issue notices to the units. Since many mining units are operating on the Himachal-Punjab border at Damtal and other bordering areas in Nalagarh of Soan district, the petitioner fears that since such a huge amount of penalty is involved the units might wind up and leave even before the Industries department wakes up to the issue. Geologist with the Industries department, Arun Sharma, said, “We are yet to get official copy of the order of the case, which was decided on May 11. We would seek opinion of the Law department and soon issue notices to defaulters after calculating their overdue amount on basis of our past records and electricity bills. It would certainly be a huge amount.” The story of goof up by the Industries department raises doubt on the mining officials who saw it through. The department has agreed in its reply to the court that according to its policy a compounding fee of Rs 5,000 should have been charged from each truck or truck load of illegal minerals (each truck carries capacity of 9 metric tonnes) along with royalty and additional penalty of Rs 500 (per truck) every time on repetition of error. But the department charged only one-time fee of Rs 5,000 from one mining unit and an additional amount of Re 1 per extra tonne transported. A few petitions in the past had highlighted the issue of over exploitation of river bed in Damtal, sounding the alarm bell for environment hazard, following which nearly 110 crushers units were shut down after court’s directions.

(Source:http://www.indianexpress.com/news/HP-govt-gets-3-months-to-collect-penalty-from-erring-mining-units/627747)

Quarry targets

June 1, 2010: India’s stronger-than-exp-ected GDP growth numbers, 7.4 per cent overall, are driven by a couple of sectors in particular. One of those is manufacturing, which rebounded off a particularly low base to grow 16.3 per cent in the last quarter. Another was mining, which grew by 14 per cent. That’s a good sign: it means that the demand for raw materials has picked up, showing that a recovery is well and truly on. But it also underlines the continuing importance of the mining sector to the India growth story. It is important, therefore, to look at whether this sort of growth is sustainable. Much attention is focused on environmental considerations. But that is probably a sidelight. Two other developments appear capable of really revolutionising mining, and thus pushing industry overall. First, the long-overdue revisiting of the Coal Mines (Nationalisation) Amendment Bill. This was drafted by the NDA government a decade ago, and shelved by one of the NDA’s eight coal ministers. The UPA dilly-dallied over setting up a GoM to get things moving. Ending the wasteful, complex and politicised system of “captive” mining, in which the product of a mine is tied to a single project, and opening the mine sector to all private players would massively improve profitabi-lity and transparency. Also effective, and more of a low-hanging fruit, is the internationalisation of Indian mining companies, to protect domestic manufacturers from price volatility and to increase the security of supply. A recent spike in coking coal prices that affected the steel industry has given this argument some urgency. In response, SAIL announced it would look for assets abroad. Internationalisation and privatisation are the two areas where those who wish to push for increasing the supply of raw materials to India’s booming economy should really be focusing their attention.

(Source:http://www.indianexpress.com/news/Quarry-targets/627684)

Environment clearance to Goa mining project scrapped

June 1, 2010: The environment and forests ministry Monday said the clearance given to an iron ore mining project in Goa has been kept in abeyance following an order from the National Environment Appellate Authority (NEAA).  The clearance given to Caremol iron ore mine in south Goa was scrapped after local groups challenged it in the NEAA. The mine was granted an environment clearance by the ministry in September 2007. The clearance was challenged by a local group Gomantak Shetkari Sanghatana (GSS) before the NEAA.  Initially, the authority cleared the project following which the group challenged its decision in the Delhi High Court. On the instructions of the court, the case was reopened by the NEAA, which has now ruled against the project.  According to Ritwick Dutta of GSS, the NEAA was kept in dark by the firm about the river flowing within 50 metres of the mining project. The main issue raised was the wrong declaration made in the environment impact assessment document. It said the river Kushawati is at a distance of 2.6 km whereas actually it is at a distance of only 50 metres,' Dutta said.  Dutta said that a monument is within a distance of 500 metres from the mine and this fact also was not disclosed to the NEAA.  As the project is less than 10 km from the Cotigao and Netravali wild life sanctuaries, the ministry has been directed to seek a clearance from the standing committee of the National Board for Wildlife, he said.

(Source:http://sify.com/finance/environment-clearance-to-goa-mining-project-scrapped-news-default-kf5uOcbjiai.html)

Scrap POSCO project, says Orissa's fact-finding team

June 1, 2010: A six-member fact finding team, headed by Justice (retd) Hosbert Suresh of the Bombay High Court, Monday demanded the immediate withdrawal of the proposed POSCO project in Orissa's Jagatsinghpur district. Voicing strong opposition to police's use of force and filing of false cases against peaceful protesters in the district May 15, Justice Suresh said: 'Everywhere in this country whenever people demand justice, they get police lathis (batons) and oppression.' Addressing journalists at the Press Club here, he claimed that 35,000 people will lose their land and livelihood for the POSCO steel plant alone. 'This is besides the irreparable loss to flora and fauna, the pollution of water bodies etc. This large cost to people and ecology does not justify mining in the name of development.' Refuting government claims that the POSCO project will profit the economy, Justice Suresh alleged that 600 million tonnes of iron ore have been promised to the Korean company at a 'paltry royalty' of Rs.130 per tonne while the market rate is Rs.2,600 to Rs.2,700 per tonne. 'Thus, while POSCO stands to make Rs.96,000 crore, the nation has to settle for few hundred crore.'  Suresh also questioned the decision to establish a new port 10 km from the already existing Paradip port, and said it will 'affect the environment, take away the livelihood of thousands more and might lead to the extinction of the Olive Ridley turtle, millions of whom have made these shores their nest'. Other members of the team were Punyabrata Gun, Kalpana Kannabiran, Bolan Gangopadhyay, Chitranjan Singh and Harsh Dobhal.

(Souce:http://sify.com/news/scrap-posco-project-says-orissa-s-fact-finding-team-news-national-kf5wudefdai.html)

Coal and iron ore next on auction list in India

June 1, 2010: The Telegraph India reported that after telecom, coal and iron ore mining licenses will be up for auctions soon. Top finance ministry officials said that the government had given the go ahead to the coal ministry to come up with coal block auctions. Officials said that an ordinance might be issued to amend section 3 of the Coal Nationalization Act to allow the auctioning of blocks to user industries steel, power and cement companies. At present, these entities are given blocks through allotments and the system is dogged with allegations of corruption and nepotism. Many coal allotment licenses are later traded for a sizeable sum. The Prime Minister’s Office, the finance ministry as well as the Planning Commission want an auction system for coal blocks similar to that of telecom. Plan panel advisers have said that auctions are the only way to ensure that investments of INR 118,000 crore can be brought in to ramp up production to 1,061 million tonnes per year by 2025. Allocated resources are never exploited properly but once purchased at a fair auction at high prices, buyers will do their best to exploit resources to extract profit from their investments. Blocks that have been fully explored for coal availability as well as blocks needing further exploration will be put up for bidding. Adviser said that preference will be given to companies that propose to set up washeries or end use industry in the same state. If such a company’s offer is within 5% of the highest bidder which does not have any plan to set up an allied industry in the state, the former will be offered the mine but will have to match the highest bid. Part of the money from the auction will be earmarked for rehabilitation and community development projects in the coal bearing areas which are mostly on tribal lands. The government also wants states to agree to a similar auction of iron ore mines. A proposed new policy forbids allocation of mines to companies on the basis of promises of future investments in the state. Officials said that the Mines and Minerals Act 1957 may be amended to introduce competitive bidding for non coal minerals in the monsoon session of Parliament.

(Source:http://www.steelguru.com/news/index/MTQ4NDA5/Coal_and_iron_ore_next_on_auction_list_in_India.html)

Dense regulation

June 1, 2010: The suggestion made by the PMO to set up an Inter-Ministerial Group (IMG) to ensure timely clearances from the ministry of environment & forests for coal blocks, before auctioning takes place, makes eminent sense. Statistics at the end of the last year showed that only one-eighth of the 200-odd coal blocks allotted until March 2009 could be made operational due to various obstacles, including difficulties faced in obtaining statutory environment and forestry clearances from concerned ministries at the Centre and in states. Recent developments suggest a further escalation of delays. This is because the ministry of environment & forests has now submitted to the Prime Minister the preliminary analysis of a digitised mapping project, which superimposes coal bearing areas on forest areas to identify coal rich areas that have the least possibility of damaging the dense forest cover. The idea is to demarcate the coal blocks into A and B categories and to deny all forest clearances in the A-category blocks, defined as those areas with dense forest cover or in important wildlife areas, while fast-tracking clearances in the B-category blocks. This has set alarm bells ringing because most of the coal deposits, which are estimated to be around 267 billion tonnes, are largely in dense forest areas. The country has been facing larger shortages, with the gap between domestic production and demand widening each year. Numbers for 2009-10 show that coal production was only 532 million tonnes as against the projected demand of the 604 million tonnes, primarily due to the rising demand from the power sector. But despite the large reserves, stepping up domestic production has not been easy. The gestation period often extends to seven years when even the government guidelines suggest that coal production should start within 42 months from a captive coal block and within 54 months in open cast mines in forest areas.  But coal is not the only sector hampered by slow environmental and forest clearances. The total number of projects awaiting environmental clearance in March 2010 was 99, of which 37 have been delayed for more than three months. Most of the industries affected are in three sectors, namely steel (37), coal (25) and thermal power (21). Similarly, there are another 67 projects awaiting forest clearances from the state governments, of which the maximum were in coal (14) and roads (8). Faster clearance would require more pro-active and innovative steps by the ministries both at the Centre and in states, and it would be best that the IMG laid down clear guidelines to speed up the process.

(Source:http://www.financialexpress.com/news/fe-editorial-dense-regulation/627386/0)