CURRENT NEWS

AUGUST 2010

Won''t allow projects adversely impacting tribals: Chidambaram

New Delhi, August 31, 2010: Home Minister P Chidambaram today said the government has decided to not allow "extractive industries" to operate if they adversely impact the natural habitat of tribals. Chidambaram's statement comes within a week of the Environment Ministry not granting clearances for Vedanta's proposed USD 1.7 billion mining project in Orissa. "The two cases you mentioned (Posco and Vedanta) are only about extractive industries. The decision that UPA-II has made is that we will not allow these extractive industries if it means destroying the environment and the natural habitat of the tribal people. Now that is the decision we have made," Chidambaram told CNBC-TV18 at a function here. The minister said it was likely the mining major will find alternative sources to mine bauxite to feed its aluminium projects in Orissa. "They will probably find other sources of raw material," he said when asked what could be the alternative for Vedanta Resources and Posco, whose proposed projects have been stalled by the Environment Ministry. "Now, until some years ago, there was no consciousness about environment at all. No environment debates in this country like many other countries," he added. Posco has proposed a Rs 54,000 crore steel project in Orissa, which has been unable to take off on account of non- receipt of regulatory clearances. Earlier this month, the Environment Ministry asked the Orissa government to stall all work on the project on account of the violation of green norms. Similarly, Vedanta's proposed mining project was rejected over environmental concerns.

(Source:http://ibnlive.in.com/generalnewsfeed/news/wont-allow-projects-adversely-impacting-tribals-chidambaram/279642.html)

CIL may set up power plant to use excess coal

The world's largest coal producer Coal India Ltd on Tuesday said it may consider setting up power plants in the country to utilise excess coal. "We may set up power plants if stockpiles keep on rising. Currently, stockpiles stands at 53 million tonnes," CIL Chairman P S Bhattacharyya  said on the sidelines of a coal summit organised by mjunction services, a 50:50 JV between Tata Steel and SAIL for e-commerce. Coal India, which is going to launch its IPO in the second half of October, is already in pact with state-owned NTPC to set up two 2,000 MW power plants in Jharkhand. "The inventory is rising mainly due to shortage of railway wagons," Bhattacharyya added. Coal India generally needs 205-210 wagons a day. But, the firm had previously said that on an average it was getting merely 170 wagons a day. In the last fiscal, the 100 per cent government-owned firm produced 431.5 million tonnes of coal meeting the requirement of use industries like power. The Centre is diluting its 10 per cent stake in the upcoming IPO, which is expected to raise Rs 12,000-15,000 crore (Rs 120-150 billion). To meet the rising coal requirement of power major NTPC, Coal India said it will soon come out with a tender to import the raw material for the power PSU. "We will float the tender in next few months to import six million tonnes of coal for NTPC," Bhattacharyya added. The country's overall coal output during 2009-10 stood at about 532 million tonnes while consumption was over 600 million tonnes. To meet the rising demand of coal, CIL is looking at forming joint ventures with global mining companies, taking equity in the mining projects and sourcing coal from such firms. "Coal India has already shortlisted three global firms for a possible partnership," Bhattacharyya added. It is learnt that US-based firms Massey Energy and Peabody Energy, besides Indonesian Novem/Sinarma, have been shortlisted for a possible partnership either through JV or equity infusion. Bhattacharyya also said that the company is investing in projects to wash coal to increase its calorific value. CIL plans to commission 20 washeries with a capacity to wash 111 million tonnes of fuel by 2015 at an investment of Rs 4,000 crore (Rs 40 billion). "Prices of washed coal will go up. Average price of our coal is $20 a tonne. Washing would escalate its cost to $26-27 a tonne," he said. Prices of international coal, with higher calorific value, starts from $45 a tonne.

(Source:http://business.rediff.com/report/2010/aug/31/cil-may-set-up-power-plant-to-use-excess-coal.htm)

Decision to stop mining in Araku to affect NALCO

Indian Express reported that the union mines ministry’s recent decision to stop bauxite mining in the Araku region of Andhra Pradesh is likely to adversely impact the expansion plans of state run aluminium giant NALCO. It could also result in the country possibly importing aluminium to meet its growing domestic demand. Recently, Mr Jairam Ramesh environment minister of India had announced his ministry’s decision to withdraw the clearance to Orissa Mining Corporation to mine bauxite from the Niyamgiri hills in Orissa’s Lanjigarh district for Vedanta’s aluminium plant. Now the mines ministry has made up its mind to stop efforts to mine bauxite from the Araku region in the Vishakhapatnam district. An expert committee would carry out complete assessment of the environmental costs of mining bauxite from the region. The panel would be mandated to delve into the impact of bauxite mining on the area’s water level, flora and fauna and other issues pertaining to the region’s ecology. Till the assessment is completed, Mr B K Handique Mines Minister of India has directed putting on hold the commencement of mining operations in the region. The minister’s decision comes after letters written by Vishakhapatnam MP Mr V Kishore Chandra Deo who has expressed strong resentment against bauxite mining saying that it would endanger the life of the people there. A closer look at the ministry’s decision reveals that cases of prior approval given by it to AP Mineral Development Corporation’s JV with JSW Holdings and Ras Al Khaimah and NALCO will be in limbo for the time. No further prior approvals would be given till the ministry of environment and forests completes reevaluation of the clearances.

(http://www.steelguru.com/metals_news/Decision_to_stop_mining_in_Araku_to_affect_NALCO/163117.html)

Central team completes visit to Posco site

Bhubneswar, August 30, 2010:

Meets officials, representatives of parties and NGOs, Report likely to be submitted in a month

The four-member Central team that came to assess the implementation of the Forest Rights Act in the area chosen for the proposed steel plant of Posco-India Private Limited in Orissa's Jagatsinghpur district completed its three-day visit on Sunday. The committee, headed by the former Union Environment Secretary, Meena Gupta, met top government officials, representatives of political parties and non-government organisations here. On Friday and Saturday, the team visited several villages in the proposed project site in Erasama area of Jagatsinghpur. Those opposing acquisition of land for the steel project in Jagatsinghpur demanded shifting of the project to any other location stating that acquisition of their land would affect their lives and livelihood sources. “We heard everybody's viewpoints by meeting the opponents and supporters of the project, officials of different departments of the State government, and representatives of non-government organisations and leaders of some political parties to know the position about implementation of the Forest Rights Act and other issues involved,” Ms. Gupta told journalists here. The committee is likely to submit its report within a month, according to sources.

(Source://www.hindu.com/2010/08/30/stories/2010083056081200.htm)

Tribal land may be out of bounds in mining areas  

Rich Mining Areas to Protect Local Populace

New Delhi, August 30, 2010: The government is planning to put in place a more transparent mining policy by designating parts of mineral-rich regions as out of bounds for industry because of environmental concerns, a move that can avoid episodes such as the recent ban on mining at Niyamgiri in Orissa but could hurt expansion plans of companies located in such areas. The plan is to divide the country’s mineral-rich regions into so-called ‘go’ and ‘no-go’ areas, replicating a similar exercise carried out by the environment ministry for the coal sector. The exercise, spelt out by the ministry of mines in a note prepared a few days ago, is to identify areas where mining could be carried out without causing serious environmental damage. The nub of the exercise is to identify areas of dense forest cover where mining will not be allowed. The note, which was prepared last week and has been seen by ET, will be reviewed by a group of ministers. The group, consisting of those with a stake in mining policy, includes BK Handique, the minister in charge of mining, finance minister Pranab Mukherjee, minister of state for coal SP Jaiswal, as well minister of state for environment Jairam Ramesh, whose activism has provoked the policy review. Once cleared by this group, the policy will be notified. The demarcation between mining and nomining areas covers metallic minerals such as iron ore, bauxite and zinc, according to the note. Mr Handique could not be reached for comments. A senior industry official said the policy should be debated in Parliament. “There should be clear policy regarding no-go areas which should be debated first in Parliament. Rehabilitation should be given priority,” said Jatinder Mehra, director, Essar Group.

Proposal has PMO’s backing

The Essar Group mines iron ore in central India, a region which has conflicts between companies and local inhabitants afraid of losing their land. While such proposals have been mooted earlier, efforts to bring in greater transparency into India’s notoriously opaque mining policy gained momentum after the environment ministry on August 24 denied permission to Orissa Mining Corp to mine bauxite on the Niyamgiri hills. The Niyamgiri bauxite was intended for Vedanta Aluminium, a joint venture partner of Orissa Mining Corp. However, the project faced stiff opposition from the local tribal population and from environmentalists who drummed up local and international support that resulted in the shelving of the project. “A lot of investment is coming into the metal sector. The ‘go’ and ‘no-go’ concept will prevent these projects from getting mining leases in areas where such operations face the possibility of being stopped on environmental and other grounds,” said one mines ministry official who asked not to be named. The proposal has the backing of the Prime Minister’s Office (PMO), which has been taking an active interest in matters concerning mining and its impact on the environment. The PMO recently asked the group of ministers to prepare a national policy that will also spell out areas that can be allowed for mining. The mapping exercise proposed by the mines ministry will use data collected by the Indian Bureau of Mines, a body controlled by the ministry which is involved in the development of mineral resources and in protecting the environment in mining areas. The bureau is currently engaged in developing overlays or mining areas overlapping with thick forest cover. “This could be used as the basic input for adopting the ‘go’ and ‘no-go’ concept,” the ministry official said. The mines ministry exercise will support the initiative proposed by the environment ministry to collate the density data of forest areas and put it on its website. This will enable organisations, including the Geological Survey of India, to prioritise areas for exploration for minerals. For existing mining operations, the government official quoted earlier said, the categorisation will only have minimal impact though some portion of expansion of existing mining operations may get impacted. “We are of the view that development projects, including mining in ‘no-go’ areas, should be considered subsequent to exhaustion of all options in go areas,” the official said. A recent study by global research body BMO, that backs higher investment in mining-rich countries like India, says that among industrial commodities, copper, iron ore and metallurgical coal are the top picks because of expectations of strong demand in China. “It is likely that demand for copper and other metals and bulks will move higher due to increased global industrial production activity and firm capital spending,” said the BMO report. Of the 89 minerals produced in the country, four are fuel minerals, 11 metallic, 52 nonmetallic and 22 minor minerals. India is the largest producer of mica blocks and mica splitting; it ranks third in the production of coal and lignite, barytes and chromite. It is the fourthlargest producer of iron ore the sixth-largest of bauxite and manganese ore and the tenthlargest producer of aluminium.

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

Decision to stop mining in Araku to affect Nalco

New Delhi, August 30, 2010: The union mines ministry’s recent decision to stop bauxite mining in the Araku region of Andhra Pradesh is likely to adversely impact the expansion plans of state-run aluminium giant Nalco. It could also result in the country possibly importing aluminium to meet its growing domestic demand. Recently, environment minister Jairam Ramesh had announced his ministry’s decision to withdraw the clearance to Orissa Mining Corporation to mine bauxite from the Niyamgiri hills in Orissa’s Lanjigarh district for Vedanta’s aluminium plant. Now the mines ministry has made up its mind to stop efforts to mine bauxite from the Araku region in the Vishakhapatnam district. An expert committee would carry out complete assessment of the environmental costs of mining bauxite from the region. The panel would be mandated to delve into the impact of bauxite mining on the area’s water level, flora and fauna and other issues pertaining to the region’s ecology. Till the assessment is completed, Mines Minister B K Handique has directed putting on hold the commencement of mining operations in the region, a ministry source told The Indian Express . The minister’s decision comes after letters written by Vishakhapatnam MP V Kishore Chandra Deo, who has expressed strong resentment against bauxite mining saying that it would endanger the life of the people there. A closer look at the ministry’s decision reveals that cases of prior approval given by it to AP Mineral Development Corporation’s joint venture with JSW Holdings and Ras-al Khaimah and Nalco will be in limbo for the time. No further prior approvals would be given till the ministry of environment and forests completes re-evaluation of the clearances.

(Source:http://www.indianexpress.com/news/Decision-to-stop-mining-in-Araku-to-affect-Nalco/674216)

NMDC, Coal India plan JV to form No. 2 mining firm

New Delhi, August 30, 2010: Public sector mining firms NMDC and Coal India are forming a joint venture with West Bengal Mineral Development and Trading Company to acquire one of the largest coal blocks in the country having reserves of around 19 billion tonnes.  Under the proposed structure, NMDC and Coal India will have 40% stake each in the JV while the West Bengal state mining firm will own the balance 20% equity. “This is one of the biggest coal reserve in the country and the proposed company will be the second largest coal mining entity after Coal India, which has 63 billion tonnes of coal reserves,” a Coal India official said on condition of anonymity as the company has filed draft red herring prospectus with the market regulator.  Coal India is in the process of entering capital market to divest 63.16 crore equity shares through offer for sale. The IPO will help the government in raising between Rs 13,000 and Rs 14,000 crore.  One of the key reasons for the forming the JV with NMDC is its expertise in mining of hard rock. The coal block in West Bengal has top layer of hard basalt rock with a thickness of 100 to 300 metres. The hard basalt rock is used as a material for road construction. “The coal deposit has a depth of 76 metres or more, which is high grade coal used in thermal power projects,” Rana Som, chairman and managing director of NMDC said. Coal India does not have the technology to mine the hard rock. “We have agreed to form a three party JV as this block needs special expertise,” said Mr Som. The West Bengal government has requested the ministry of coal to assign the block to the JV under the government dispensation, said a government official on the condition of anonymity. “The government is considering the proposal and is likely to assign it shortly,” he said. Under the proposed plan, the mining JV will have a capacity of 100 million tonnes per annum. Once the coal mining starts, depending upon the prevailing demand, the JV may ramp up the capacity in future. “The entire area where the coal reserve is located is uninhabited so it will be easier for us to start work immediately once the government assigns the block,” Mr Som said. However, he did not divulge the financial details. “Both companies (NMDC and Coal India) are cash rich and will invest the required amount,” he said.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/NMDC-Coal-India-plan-JV-to-form-No-2-mining-firm/articleshow/6458831.cms)

Govt mulls demarcating mining areas to avoid another Niyamgiri

New Delhi, August 30, 2010: The government is planning to put in place a more transparent mining policy by designating parts of mineral-rich regions as out of bounds for industry because of environmental concerns, a move that can avoid episodes such as the recent ban on mining at Niyamgiri in Orissa but could hurt expansion plans of companies located in such areas. The plan is to divide the country’s mineral-rich regions into so-called ‘go’ and ‘no-go’ areas, replicating a similar exercise carried out by the environment ministry for the coal sector. The exercise, spelt out by the ministry of mines in a note prepared a few days ago, is to identify areas where mining could be carried out without causing serious environmental damage. The nub of the exercise is to identify areas of dense forest cover where mining will not be allowed.  The note, which was prepared last week and has been seen by ET, will be reviewed by a group of ministers. The group, consisting of those with a stake in mining policy, includes BK Handique, the minister in charge of mining, finance minister Pranab Mukherjee, minister of state for coal SP Jaiswal, as well as minister of state for environment Jairam Ramesh, whose activism has provoked the policy review.  Once cleared by this group, the policy will be notified. The demarcation between mining and no-mining areas covers metallic minerals such as iron ore, bauxite and zinc, according to the note. Mr Handique could not be reached for comments.  A senior industry official said the policy should be debated in Parliament. “There should be clear policy regarding no-go areas which should be debated first in Parliament. Rehabilitation should be given priority,” said Jatinder Mehra, director, Essar Group, which mines iron ore in central India, a region which has conflicts between companies and local inhabitants afraid of losing their land.  While such proposals have been mooted earlier, efforts to bring in greater transparency into India’s notoriously opaque mining policy gained momentum after the environment ministry on August 24 denied permission to Orissa Mining Corp to mine bauxite on the Niyamgiri hills. The Niyamgiri bauxite was intended for Vedanta Aluminium, a joint venture partner of Orissa Mining Corp. However, the project faced stiff opposition from the local tribal population and from environmentalists who drummed up local and international support that resulted in the shelving of the project.  “A lot of investment is coming into the metal sector. The ‘go’ and ‘no-go’ concept will prevent these projects from getting mining leases in areas where such operations face the possibility of being stopped on environmental and other grounds,” said one mines ministry official who asked not to be named.  The proposal has the backing of the Prime Minister’s Office (PMO), which has been taking an active interest in matters concerning mining and its impact on the environment. The PMO recently asked the group of ministers to prepare a national policy that will also spell out areas that can be allowed for mining.  The mapping exercise proposed by the mines ministry will use data collected by the Indian Bureau of Mines, a body controlled by the ministry which is involved in the development of mineral resources and in protecting the environment in mining areas.  The bureau is currently engaged in developing overlays or mining areas overlapping with thick forest cover. “This could be used as the basic input for adopting the ‘go’ and ‘no-go’ concept,” the ministry official said.  The mines ministry exercise will support the initiative proposed by the environment ministry to collate the density data of forest areas and put it on its website. This will enable organisations, including the Geological Survey of India, to prioritise areas for exploration for minerals.  For existing mining operations, the government official quoted earlier said, the categorisation will only have minimal impact though some portion of expansion of existing mining operations may get impacted. “We are of the view that development projects, including mining in ‘no-go’ areas, should be considered subsequent to exhaustion of all options in go areas,” the official said.  A recent study by global research body BMO, that backs higher investment in mining-rich countries like India, says that among industrial commodities, copper, iron ore and metallurgical coal are the top picks because of expectations of strong demand in China. “It is likely that demand for copper and other metals and bulks will move higher due to increased global industrial production activity and firm capital spending,” said the BMO report. Of the 89 minerals produced in the country, four are fuel minerals, 11 metallic, 52 non-metallic and 22 minor minerals. India is the largest producer of mica blocks and mica splitting; it ranks third in the production of coal and lignite, barytes and chromite. It is the fourth-largest producer of iron ore the sixth-largest of bauxite and manganese ore and the tenth-largest producer of aluminium.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Govt-mulls-demarcating-mining-areas-to-avoid-another-Niyamgiri/articleshow/6459008.cms)

Green mining norms irk ministries

New Delhi, August 29, 2010: An inter-ministerial meeting on infrastructure constraints ended up discussing the coal ministry’s accusations against the environment ministry of going slow in clearing mining projects that meet green normsAt the end of the meeting, the exasperated chairman of the group, a secretary from the cabinet secretariat, suggested the environment ministry should henceforth attend the meetings on infrastructure. The ministry should be present in the next meet and listen to the complaints first-hand.  Since these projects relate to three states — Orissa, Jharkhand and Chhattisgarh — the participants decided that their chief secretaries should join through a video link.  The environment ministry had earlier this year divided forest areas into “go” and “no go” areas, according to forest cover.  At the meeting, the coal ministry said the environment ministry was dithering on clearances to mining projects in “go” areas. While efforts are on to try to get more areas in the “go” category, some ministries are worried about the delays in the “go” region projects. Top officials in the ministries of coal, steel and power said that environment ministry had kept on hold most of their projects, including routine renewals of mining licences. “There are inordinate delays in getting routine forest and environment clearances. We understand the need for green cover, but someone should also understand that we are headed for huge power blackouts if we continue to sit over clearances for these projects,” power ministry officials said. A document prepared by the Central Electricity Authority on the coal scenario by 2016-2017 says the shortfall in supply can be as much as 40 per cent: the demand is forecast at 1,017 million tonnes (mt), and supply 641mt.  The CEA note says, “It may be mentioned that in case category A coal blocks are not allowed to be developed because of forest clearance problems, the coal availability will be reduced” by 110 million tonnes per year. Besides, the agency sees a gap in hydro-electric generation, which will increase the pressure on coal-fired projects.  “Studies show that the likely generation demand that is to be met by coal-based plants during the year 2016-17 would be 1,095 billion units. Further, we estimate that generation available from hydro stations would be 30 per cent less than their design, the total generation to be met by coal based plants comes to 1,155 billion units,” it said. Officials said more than 1,800 projects were pending clearances from the ministry of environment. India has known coal resources of over 2.64 lakh million tonnes, of which proven reserves are around 1 lakh million tonnes.  

Import spike

Delays in starting coal mining projects could also see a sharp rise in imports. India is already importing about 70mt of coal annually, and this can shoot up to nearly 500mt by 2016-2017. Power projects with coal linkages (captive coal mining blocks) in “Go” areas but which are waiting for various clearances can add up to 25,000 megawatts (MW) of power.  Projects with mines in “No Go” areas can add up to over 9,000MW, including the Chhattisgarh mega power project and NTPC’s Lara and Darlipalli projects.

(Source:http://www.telegraphindia.com/1100830/jsp/business/story_12871970.jsp)

FG To Set Up Solid Minerals Development Fund - Minister

Abuja, Nigeria, August 27, 2010: The Federal Government is set to establish a Solid Minerals Development Fund to aid small scale and artisanal mining operations. Alhaji Musa Sada, the Minister of Mines and Steel Development, announced this at a stakeholders meeting in Abuja. He said the board would soon be constituted to oversee the operation and disbursement of the Solid Minerals Fund when established. Sada told the stakeholders that the fund would complement the 120 million dollar loan established by the World Bank in 2005 to promote sustainable development in the solid minerals sector. He, however, did not disclose the amount to be set aside for the special fund, because, according to him, no specific amount was stipulated in the 2007 Mines and Minerals Act. “We are going to push for as much as we can get,’’ Sada said, adding that the sources of the fund would include already existing Natural Resources Fund as well as budgetary allocation among others. While reacting to the inability of miners to access bank loans, Sada said mining was a capital intensive venture with long gestation period. “ The banks ought to have understood how the mines operate before establishing solid minerals desks as most of the desks only exist in name,’’ he said. Sada said the ministry, through the assistance of the World Bank, would organise a training programme for banks and miners on finance and mining operations. Reports say that in 2007, three banks established the Solid Minerals Development Desks with an initial capital of N1 billion each to aid mining activities in the country. Sada, who noted the contribution of quarry operators to the development of the sector, stressed the need for them to comply with Environmental Impact Assessment (EIA). “ EIA is one of the pre-conditions before commencement of operations; without it, the mining leases of defaulters will be revoked in addition to other penalties as stated in the Minerals Act,’’ he added.  Meanwhile, Chief Ben Ibe, who represented Julius Berger Plc, told newsmen that quarry operators were being challenged by government’s compliance policy which include mine reclamation and pit closure. Ibe said it was impossible to close all pits, adding that “what we do is to put a protective barricade to stop people from coming close to the sites to avoid hazard.” He commended the ministry for organising the stakeholders meeting, saying it would help them deliberate and proffer solutions to the challenges impeding the operations of quarries in the FCT.

(Source:http://nigerianobservernews.com/23082010/businessservices/)

Uganda mineral value dips

Kampala, Uganda, August 27, 2010: The value of Uganda's minerals in 2009 dropped by 26%, compared to 2008 information from the Geology department of the Ministry of Energy indicates. Whereas the value of the recorded mineral production in 2008 amounted to UShs87.36billion, the value of the recorded mineral production in 2009 amounted to 64.82billion. Compared to the previous years, notably, 2006 and 2007 there is a continued trend of a drop in value. In 2006 the value of mineral production amounted to UShs90.9billion whereas in 2007 it dropped slightly to UShs83.259billion.  The decline in revenue especially in 2008 and 2008 was partly attributed to the reduction in the production of Limestone as a result of increased production costs affected by high fuel prices. The decline in other commodities was a direct consequence of fluctuations in global markets /commodity prices. The economic down turn in 2008 also played a part in the decline of the value of minerals.  Also in the case of 2009, there was a direct consequence because mine gold output (metal content) was not reported as Tiira Gold Mine located in Busitema Sub County, Busia district, eastern Uganda ceased operations in 2008. This was a result of an ongoing conflict between Busitema Mining Company and the artisanal miners, landlords and tenants, residents and community leaders in Busitema, the report by the Geology department for 2009 notes. The report also notes that another company called Kasita Gold Mining Company has been trying to obtain permits from other authorities in order to conduct operations in the gazetted areas like forest reserves under their license but with little success. The report further notes that despite a newly opened mine in Mubende district owned by AUC Mining, it is still operating at pilot phase. "It is imperative to note that most of the gold in the country is mined by artisanal miners," the report notes. Artisanal miners are those that operate on a small scale.  The report also attributes loss of revenue due to continued operation of artisanal miners outside the formal economy and thus representing lost production and inherent non tax revenue.  "To make formalization work, miners must be capitalized in ways that permit them to move from temporary artisanal mining to more sustainable small and medium scale mining," the report recommends.

(Source: http://www.busiweek.com/10/page.php?aid=1140)

Rahul Gandhi to Orissa tribals: You have saved Niyamgiri

Lanjigarh, Orissa, August 26, 2010:Congress leader Rahul Gandhi is celebrating "victory" in Orissa's Kalahandi, saying the rejection of environment clearance to a big bauxite mining project in the Niyamgiri Hills is a victory of the local tribal people. "Your voice reached Delhi and you saved your land. I did what I could, but this is your victory," Rahul said in Lanjigarh on Thursday. And he congratulated the tribal community for making its voice heard without resorting to violence. Wearing a stubble and dressed in trademark white, Gandhi said amid loud cheers, "We promised you in 2004 that there'll be a government for the aam aadmi (common man) and we gave you that." He recalled his words from a visit two years ago when he had said that, "For the tribals of Kalahandi, there is a soldier in Delhi named Rahul Gandhi." And added, "My work is not finished, it's begun. Whenever you need me, wherever, I am ready to stand with you. On his last visit in 2008, Rahul said, some tribal youth had told him that they worshiped the Niyamgiri Hills and that their God was being snatched from them. That he said, was their "dharma." His dharma, Rahul said, was that "every voice, including that of the poor and adivasis should be heard.' The rejection of the Vedanta project, he said, was not anti-development. "Development means that every citizen of India develops. Our government in Delhi, our PM, Sonia Gandhi will fight for development and to give you a voice. Rahul Gandhi held his rally in Lanjigarh, the very place where Vedanta's controversial alumina refinery is located. His visit on Thursday is being seen as a Congress effort to make political inroads in a state which it once ruled, but where the BJD has been in power for many years now. In his short victory speech, he took the customary pot-shot at the Naveen Patnaik government in Orissa, saying it had trampled upon the interests of the tribals. And the Biju Janata Dal is acutely aware of this. As Rahul reached out to the tribals, the ruling party described the Centre's rejection of the Vedanta project as against the interests of state and is holding protests at the site of Rahul's rally and in other parts of the state.

(Source:http://www.ndtv.com/article/india/indias-avatar-rahul-gandhi-arrives-for-tribal-rally-in-orissa-47305)

Now, govt stops bauxite mining in Visakhapatnam

New Delhi, August 26, 2010:In a Niyamgiri repeat, the Centre has brought to a halt plans for bauxite mining in the picturesque Araku region of Andhra Pradesh's Visakhapatnam district after ordering a comprehensive re-evaluation of environmental and human costs of the project.  In a recent decision, Centre agreed to set up a committee to look into impact of bauxite mining on the water table, catchments, reservoirs, forest cover, fauna and social issues concerning mining in the ecologically sensitive area. The decision was taken just before the Centre made up its mind on the Niyamgiri hills.  Minister of mines B K Handique, in a letter to senior Congress MP V Kishore Chandra Deo, said the environment impact report prepared by Indian Council of Forestry Research and Education for Araku was being re-examined following concerns raised by the MP. "Commencement of mining operations of bauxite in Visakhapatnam district will be on hold till this exercise has been completed," Handique wrote.  This will mean 10 cases of prior approval given by the mines ministry to entities like AP Mineral Development Corporation -- a joint venture with Jindal South West Holdings and Ras-al Khaimah -- and NALCO will now have to bide their time. Now, no further prior approvals will be granted till ministry of environment and forests completes re-evaluation of clearances.  Deo has written several letters to environment minister Jairam Ramesh, Prime Minister Manmohan Singh, Congress president Sonia Gandhi and Handique expressing strong opposition to the mining saying it would endanger environment and human lives. "This is a schedule V tribal agency area and mining will totally bring to nought the forest rights law for STs which was your gift to tribals," he wrote to Sonia.  Ramesh has pointed to the decision as proof that Centre was not, as alleged by some Opposition leaders, targetting non-Congress governments on mining projects. Deo, who is MP for Visakhapatnam, has argued that Araku valley has developed as a tourism centre due to its natural beauty and mining will ruin its ecological balance and harm people who "don't deserve to face such harsh and irreversible conditions".  The MP has said that the decision to upset the delicate social and ecological balances in Araku went against the grain of Congress's policies seeking a better deal for the poor and disadvantaged. He said it did not sit with initiatives like rural employment guarantee and the proposed food security bill.  Deo has written to Ramesh that two rivers that originate in the Niyamgiri hills of Kalahandi in Orissa are the source for two more -- Vamsadhara and Nagavali -- that provide water to four assembly segments in his constituency. He said these rivers would totally dry up if mining of bauxite ore was permitted in Visakhapatnam district.  The MP countered the argument that mining would release the tribals from the exploitative grip of money lenders by saying that "this (exploitation) may take a more menacing form by corporate gaints, multinationals and colonisers".

(Source:http://timesofindia.indiatimes.com/india/Now-govt-stops-bauxite-mining-in-Visakhapatnam/articleshow/6434906.cms)

Low-grade iron ore producers hit hard by state's export ban

Chennai/Bangalore, August 26, 2010:The recent ban on the export of iron ore by Karnataka government has thrown life out of gear in Tumkur and Chitradurga districts where only low-grade iron ore is available. The ban has severely affected the livelihoods of people depending on the mining industry and close to 10,000 persons are rendered jobless since the ban was imposed. The iron ore mining companies engaged in the extraction and export of low-grade iron ore in these two districts are in deep trouble as their losses are running into several crores on account of possible penalty from the buyers abroad, but also due to the heavy investment in infrastructure. As many as 25 of the 90 operational mining companies in the state export over 10 million tonnes of low-grade iron ore from these two districts for which there is no market in the country. These companies have collectively invested over Rs 200 crore in the last couple of years on setting up support infrastructure like cranes, sheds for storing ore, railway sidings and port equipment for exports. In addition to this, companies like Sesa Goa, MSPL, Bharat Mines and S K Modi have also invested Rs 100 crore to buy railway rakes to transport ore to the ports. “Ever since the ban was imposed, the entire infrastructure has been lying idle and we are forced to store large quantity of lose ore in our mines which is leading to environmental hazard. In Chitradurga and Tumkur area only low-grade iron ore is available and it would be useless if not exported. There is no market for this low-grade ore in the Indian market. It’s a total waste of national wealth,” said Basant Poddar, managing director, Mineral Enterprises Limited, one of the miners hit by the ban. Low-grade iron ore accounts for 50 per cent of the total exports from Karnataka at 15 million tonnes per annum and a majority of this comes from mines in Chitradurga and Tumkur. Presently, 25 companies operate mines on over 1,000 hectares of revenue land in these districts. “It’s not only a loss for us, but also for the country as it gains foreign exchange apart from royalty revenue to the state government. Over Rs 6,000 crore investment is needed to set up 1 tonne per annum steel mill and also import high-grade coke to use the low-grade iron ore. So far, there is no proper technology available in the country to make use of low-grade iron ore,” Poddar said. The only market for low-grade ore is China. Over the last 50 years nobody has tried to make use of this ore as already high-grade ore is available in other places for steel making, he said. There has been no investment in the steel sector in Chitradurga which is starved of water. In fact, the only steel mill present nearby is at Bhadravati of public sector Visvesvaraya Iron and Steel Ltd, which is also not consuming low-grade iron ore. Instead, it is exporting 20 per cent of the ore it buys from the NMDC after using the cream of it, Poddar added. The Federation of Indian Mineral Industries (FIMI) fear that if the ban stays these mines may have to be closed permanently causing job loss to more than 10,000 persons. Already, 2,500 trucks are off the roads due to the ban. Shantesh Gureddi, chairman, FIMI-southern region, said, “Investments made not only in private railway sidings, but also in infrastructure projects like Hassan-Mangalore Rail Development Corporation, a special purpose vehicle between Government of India, the Government of Karnataka and a private company, will be rendered infructuous. Besides, iron ore of less than 62 per cent grade iron content are not consumed by domestic industry. “However, India is only a swing supplier filling the gap but if we lose this market, Australia and Brazil will fill as they have ample surplus capacity and India will lose this market forever,” he said.

(Source:http://www.business-standard.com/india/news/low-grade-iron-ore-producers-hit-hard-by-state%5Cs-export-ban/405807/)

Mining activities threaten MDGs in Plateau

Nigeria, August 25, 2010:The Plateau Coordinator, Millennium Development Goals (MDGs), Mr Sam Godongs, says the impact of mining activities in Plateau is allegedly threatening the achievement of the MDGs. Godongs, who said this in an interview with the News Agency of Nigeria (NAN) in Jos  added that mining activities had done “irreparable damage” to the ecology of the state. “The mining of tin and columbite during the colonial era has degraded the physical landscape of the state as there are now about 1,500 dangerous mining ponds in Plateau. The radioactive materials contained in these minerals are hazardous and are causing a lot of cases of cancer among the people of Plateau. So, the environment for Plateau people is very critical as drinking water has now been polluted and houses built close to these mining sites in the town are at risks of radiation from the mining sites,” he said. The coordinator expressed regret that human beings, crops and animals were not safe due to the effect of radiation, contamination and pollution of rivers and streams by the radioactive materials. Godongs noted that the Federal Ministry of Environment had in 2008 commenced the filling of the ponds but that the project had been abandoned. He therefore, called on the Federal Government to reactivate the project. Godongs noted that the ministry had taken the maps of the mining areas but that the results had yet to be made public. “We need scientific information about these mining areas. We should know how close and how far we should be from the sites. We should also know the harmful effect of the mining on our lives, plants and animals. We need to share information and make it multi-dimensional by developing collaboration with other relevant agencies at the national and international levels,” he said. The state government had planned to convert some of the mining ponds into dams and fish ponds. However, that could not be due to the discovery of the radioactive and other materials harmful to human, crops and animals, according to government sources.

(Source:http://www.vanguardngr.com/2010/08/25/mining-activities-threaten-mdgs-in-plateau/)

Ratnagiri hits green wall

New Delhi, August 25, 2010:India’s biggest nuclear power plant in Ratnagiri district of Maharashtra has hit a green hurdle for now as the Environment Ministry has imposed a four-month moratorium on all projects in Ratnagiri and Sindhuburg districts of Maharashtra. The ministry has asked the Western Ghat Ecology Panel headed by National Advisory Council member Madhav Gadgil to examine over a dozen power projects, including the Jaitapur nuclear power project, and 55 mining projects for their impact on environment and make its recommendations. “The panel will recommend the approach for deciding on these projects,” a senior ministry official said. The ministry also said no projects would be considered for environment approval till December 2010 by when the panel will have to submit its report. “We will hold a meeting next month to decide on what approach to take on the ministry’s order,” Gadgil told HT. There are a dozen power projects and 55 mining projects proposed in the two districts. Maharashtra government’s decision to open the fragile Western Ghats for mining had evoked protests from the green lobby,  including Gadgil. The NPCIL had to stop land acquisition in Jaitapur after protests by locals. “We are coming up with a mega nuclear plant in Ratnagiri in 600 hectares of land, two-third of which would be a green belt…” Science and Technology Minister Prithviraj Chavan said, while introducing Civil Liability for Nuclear Damage 2010 Bill. The plant is the biggest nuclear energy project of the NPCIL, even though the corporation has sought environment clearance for three other nuclear plants. They are: 2,800 MW plant in Fatehabad in Haryana, 6,000 MW plant in Srikakulam, AP and 6,000 MW plant in Bhavnagar, Gujarat.  Gadgil said the panel, which met MPs on August 17, was of the view the suggestions for Ghats would evolve on making “development compatible with conservation”.

(Source:http://www.hindustantimes.com/News-Feed/newdelhi/Ratnagiri-hits-green-wall/Article1-591837.aspx)

Land acquired for bypass irks locals

Margao, August 25, 2010:Residents of Curchorem and surrounding areas have urged the government-constituted steering committee on mining corridors to effect de-notification of the land acquisition proceedings already notified by the government for acquiring land for widening of the Tilamol-Sanguem road. It may be recalled that the government, following stiff opposition from the locals, has held in abeyance the land acquisition process for the bypass road until the steering committee approves the project. Protesting residents have taken strong exception to the move of the authorities to widen the existing road from Curchorem to Tilamol raising apprehensions that it will be linked to the proposed bypass road from Tak to Sirvoi in Quepem, thereby aggravating the mining pollution in the area. "Under the garb of widening or four-laning, a mining bypass is being forced through Curchorem town to transport the mineral ore from Curpem, Vichundrem, Rivona, Colomba, Pirla, Sulcorna, Cavrem to the riverside mining jetties and plots at Khamamol, Curchorem and Capxem of Sanvordem village by demolishing houses, compounds, cutting trees and plantation, without being concerned that it would be a death trap to the affected persons and without taking into consideration the environmental pollution and health hazards," the letter signed by councillor and former chairperson of Curchorem Cacora Municipal Council (CCMC) Paresh Bhende, among others, states. "Authorities should not succumb to the pressure tactics of the mining lobby by ignoring the welfare of the people," the letter adds, further warning that the affected people having "lost their patience" will come out on the streets if the mining traffic is not diverted through a mining bypass immediately. Speaking to TOI, Bhende, who is in the forefront of the agitation, called into question the land acquisition process initiated by the government without conducting the environmental impact assessment (EIA) of the four-laning or widening of the Tilamol-Sanguem road. Meanwhile, the second meeting of the 12-member steering committee on mining corridors headed by chief secretary Sanjay Srivastava was held on Tuesday in Panaji. Reliable sources informed that though the meeting deliberated on various issues pertaining to "strengthening the infrastructure for mining transportation", no specific decisions were arrived at.  Bhende has also taken strong exception to the failure of the government in giving any representation to the protesting locals on the steering committee. "It's only appropriate that the affected locals be taken into confidence in the decision making process over mining bypass roads," Bhende stated.

(Source:http://timesofindia.indiatimes.com/city/goa/Land-acquired-for-bypass-irks-locals/articleshow/6429792.cms)

Highlights of panel report on Vedanta

New Delhi, August 25, 2010: Mining by Vedanta for bauxite in Orissa's Niyamgiri Hill would severely disturb the wildlife habitat in the sacred hills, result in chopping down of more than 1.20 lakh trees, strip off more than seven sq km of the hill top, besides disturbing the forest-based livelihood of the local tribal communities, a government panel has said. Based on the panel's report and other recommendations, Environment and Forests Minister Jairam Ramesh on Tuesday rejected environmental clearance to the project. The minister on Tuesday said there "has been a serious violation of the Environment Protection Act, Forest Conservation Act and the Forest Rights Act". Here are the highlights of the report, which was prepared by a four-member team headed by National Advisory Council member NC Saxena. The report was submitted Aug 16.

• Mining operations of the intensity proposed in this project spread over more than seven sq km would severely disturb the important wildlife habitat, which has been proposed to be a part of the Niyamgiri Wildlife Sanctuary.
• More than 1.21 lakh trees would need to be cleared for mining besides many lakh more shrubs and herbal flora.
• Mining will destroy the grassland-forest landscape and adversely affect wildlife in the area.
• The value of Niyamgiri Hill forests as an important elephant habitat is well recognised by its inclusion in the South Orissa Elephant Reserve. Mining on the scale proposed would severely disturb elephant habitats and threaten the important task of elephant conservation in south Orissa.
• The mining operations in the site involves stripping off more than seven sq km of the Niyamgiri Hill top which would drastically alter the region's water supply, severely affecting both ecological systems and human communities dependent on this water.
• If mining is permitted on this site, it will not only be illegal but will also destroy more than seven sq km of sacred, undisturbed forest land on top of the mountain.
• It will also endanger the self-sufficient forest based livelihoods of primitive tribal groups and harm the livelihood of hundreds of Dalit families who indirectly depend upon these lands.

Building roads would make it easy for the wildlife poachers and timber smugglers to access the area, thus threatening the rich biodiversity of the hills.

(Source:http://www.hindustantimes.com/News-Feed/newdelhi/Highlights-of-panel-report-on-Vedanta/Article1-591101.aspx)

Adani inks $1.65 bn deal for coal with Indonesia

New Delhi, August 25, 2010: Adani Enterprises today announced a $1.65 billion deal with the Indonesian government and its mining company PT Bukit Asam for setting up rail and port infrastructure in the island nation for sourcing coal to India. Adani Enterprises, through its Indonesian subsidiary PT Adani Global, has entered into a binding tripartite agreement for setting up a dedicated “rail and port project” with the Indonesian government and PT Bukit Asam, Indonesian government-owned coal mining company. "As per the agreement, we will be investing $1.65 billion (approximately Rs 7,500 crore) in building infrastructure, which includes port and railway lines in South Sumatra province of Indonesia," Devang Desai chief finance officer Adani Enterprises told PTI in an interview. The company plans to commence construction as soon as it is granted all the necessary clearances. "We look to start construction there in the next three months after getting all clearances and it will be completed in 48 months," he said. "As per the deal, we have exclusive rights over 60 per cent of the coal from coal reserves of Bukit Asam in the province," Desai said. This was part of our main business of importing coal to cater to various user industries in India, Desai added. There was a huge demand of coal in India, which was expected to grow manifold in the next two years, he added. At present, Adani Enterprises imports 35 million tonnes of coal and is likely to hike this capacity to about 60-70 million tonnes in the next 3-4 years.  Meanwhile, Adani Enterprises, which plans to focus on the energy sector, bought the Australia-based Linc Energy's coal assets for about Rs 12,600 crore in a cash and royalty deal, earlier this month.

(Source: http://www.tribuneindia.com/2010/20100826/biz.htm#1)

Vedanta episode not to tarnish India's image: Montek

New Delhi, August 25, 2010: The Plan panel today said the government's refusal to accord environment clearance to Vedanta's proposed USD 1.7 billion aluminium project in Orissa would not tarnish India's image as an investment friendly destination.  "I don't know much about Vedanta, but yesterday's development will not undermine India's image as investment friendly nation," Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters after inaugurating an exhibition-cum-sale organised by the Central Cottage Industries Corp here.  In a big blow to Vedanta Resources, yesterday, the government had rejected environment clearance to company for bauxite mining for the USD 1.7 billion aluminium project in Orissa.  The government took this decision after accepting recommendations of the Forest Advisory Committee (FAC) headed by N C Saxena which sought ban on the mining project in Orissa's Niyamgiri hills in view of various violations at the site.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Vedanta-episode-not-to-tarnish-Indias-image-Montek/articleshow/6431820.cms)

Environment Ministry stalls Vedanta's Niyamgiri project in Orissa

New Delhi, August 24, 2010: The environment ministry on Tuesday rejected a plan by India-focused mining group Vedanta Resources Plc to mine bauxite in Orissa, dealing a blow to the company already struggling with regulatory issues in India.  The decision pertains to one mining site in Orissa where it runs an alumina refinery on bauxite imported from elsewhere in India.  The decision was announced in a government statement. The company is facing regulatory hurdles in its bid for control of Cairn India, a potential deal valued at $9.6 billion that can give billionaire Anil Agarwal-led group a slice of India's oil reserves and exposure of surging demand.  "There have been serious violations of environment protection acts," Environment Minister Jairam Ramesh told reporters, while rejecting Vedanta's mining plans that could destroy heavily forested hills sacred to local tribal populations. "There is no emotion, no politics, no prejudice ... I have taken the decision in a purely legal approach. That these laws are being violated."  The Forest Advisory Committee had recommended that the "in-principle clearance" to the mining proposal, put forward by Orissa Mining Corporation, be withdrawn. Vedanta, through its subsidiary Sterlite India, has a joint venture agreement with Orissa Mining Corporation to mine the Niyamgiri Hills for bauxite.  The committee’s recommendation is based on the fact that claims under the Forest Rights Act have not been settled. Traditional and customary rights as well as age-old access of the Dongaria and Kutia Kondh tribes to the area have been recognised in several forest settlement reports and government working plans. Also, several gram sabhas of the affected villages have passed resolutions claiming community and habitat rights.  It is argued that it would be incorrect for the Orissa government to claim that these primitive tribes have no claims or rights under the Forest Rights Act, 2006. The affected groups, Dongaria Kondh and Kutia Kondh, are both Scheduled Tribes. The Constitution requires that the government respect and uphold the land rights of the Scheduled Tribes.  Additionally, both the Dongaria Kondh and Kutia Kondh have been notified as primitive tribal groups and are, therefore, eligible for special protection. The Niyamgiri Hills are the sole habitat of the two tribes and at least 20% of the Dongaria Kondh population lives in villages in and around the forest blocks of the proposed mining project area.  The panel has also recommended action against Vedanta Alumina Refinery at Lanjigarh. It has recommended that steps be taken against the refinery for illegally encroaching and enclosing 26 hectares of forest land. This despite the fact that the environmental clearance was given on the condition that no forest land would be used. Two other violations have been cited.  One, the refinery’s capacity has increased from 1 million tonnes per year to 6 million tonnes without requisite clearances. Secondly, Vedanta refinery is currently sourcing bauxite from 14 mines, of which 11 do not have any environmental clearance and are hence illegal. The Forest Advisory Committee has also recommended that the state be heard before the minister announces his decision.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Environment-Ministry-stalls-Vedantas-Niyamgiri-project-in-Orissa/articleshow/6425059.cms)

Mining project: It may be end of road for Vedanta in Orissa

New Delhi, August 24, 2010: It is expected to be curtain call for Vedanta’s plans of sourcing bauxite for the Niyamgiri hills in Orissa. A key advisory panel of the environment ministry, the Forest Advisory Committee, has recommended that the government not give clearance to the proposal to mine the Niyamgiri hills for bauxite.  The committee has also recommended action against Vedanta’s alumina refinery at Lanjigarh, at the base of the Niyamgiri Hills, for violating environment laws. Environment minister Jairam Ramesh will announce his decision on the project on Tuesday. After his meeting with Orissa chief minister Naveen Patnaik, Mr Ramesh said there was “no assurance on the Vedanta project”. The environment minister said he did not discuss the matter with the Orissa chief minister.  The Forest Advisory Committee has recommended that the “in-principle clearance” to the mining proposal, put forward by Orissa Mining Corporation, be withdrawn. Vedanta, through its subsidiary Sterlite India, has a joint venture agreement with Orissa Mining Corporation to mine the Niyamgiri Hills for bauxite.  The committee’s recommendation is based on the fact that claims under the Forest Rights Act have not been settled. Traditional and customary rights as well as age-old access of the Dongaria and Kutia Kondh tribes to the area have been recognised in several forest settlement reports and government working plans. Also, several gram sabhas of the affected villages have passed resolutions claiming community and habitat rights.  It is argued that it would be incorrect for the Orissa government to claim that these primitive tribes have no claims or rights under the Forest Rights Act, 2006. The affected groups, Dongaria Kondh and Kutia Kondh, are both Scheduled Tribes. The Constitution requires that the government respect and uphold the land rights of the Scheduled Tribes.  Additionally, both the Dongaria Kondh and Kutia Kondh have been notified as primitive tribal groups and are, therefore, eligible for special protection. The Niyamgiri Hills are the sole habitat of the two tribes and at least 20% of the Dongaria Kondh population lives in villages in and around the forest blocks of the proposed mining project area.  The panel has also recommended action against Vedanta Alumina Refinery at Lanjigarh. It has recommended that steps be taken against the refinery for illegally encroaching and enclosing 26 hectares of forest land. This despite the fact that the environmental clearance was given on the condition that no forest land would be used. Two other violations have been cited.  One, the refinery’s capacity has increased from 1 million tonnes per year to 6 million tonnes without requisite clearances. Secondly, Vedanta refinery is currently sourcing bauxite from 14 mines, of which 11 do not have any environmental clearance and are hence illegal. The Forest Advisory Committee has also recommended that the state be heard before the minister announces his decision.  Vedanta continues to be optimistic. Mukesh Kumar, chief operating officer, Vedanta Aluminium, said, “We have already said mining activity will only start once we have all the clearances. There have been no violations of any sort in the refinery, which has followed all rules and regulations. All issues that have been raised by the Saxena report have been looked into and settled by expert agencies appointed by the Supreme Court.”

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Mining-project-It-may-be-end-of-road-for-Vedanta-in-Orissa/articleshow/6423643.cms)

FG charges quarry operators on mining laws

Abuja, Nigeria, August 23, 2010: Federal Government has advised Quarry operators to comply with safety rules and regulations for sustainable development in the mining industry in Nigeria. The Minister of Mines and Steel Development, Arc. Musa Mohammed Sada, who gave the charge during an interactive session on Wednesday with the quarry operators, in Abuja, observed that most of the quarry operators are not operating in line with the relevant sections of the Minerals and Mining Act of 2007 pertaining to environmental safety and sustainability. Sada further noted that the implication of the focus on the development of the Minerals and Metals Sector is that all Mineral Title holders must carry out their activities in a sustainable manner in order to achieve economic, social and environmental objectives of government, adding that, that is the reason for the interactive session. He said operators must carry out their activities in a sustainable manner as the government does not want “an industry that you will have a boom at the inception and all of sudden everything will collapse”. While urging them to take advantage of government desire to diversify the nation’s economy, he explained that no other sector has more opportunity to create jobs than the mining industry. “The solid mineral sector of the Nigerian economy has a high potential to support industrial investment and development of the real sector”, he noted. Arc. Sada said that the interactive session was necessary because of the present administration’s agenda to diversify the nation’s economic from oil to the non-oil sectors with particular emphasis on the development of the Minerals and Metals Sector. According to the Minister, “All stakeholders should attach importance to the issues that will enhance the efforts of the Ministry in ensuring an orderly development of the Solid Minerals sector.” To address the challenge of safety and environmental compliance among quarry operators, the Minister disclosed that he would have similar interactive sessions with all quarry operators in all the states of the federation. Meanwhile, the Federal Government has disclosed that said it has sought for additional one year extension to the US$120 million mining development grant from the World Bank. If the government is successful the grant period which is due to expire by 2012 would now be extended to 2013. The grant is meant to boost the mining sector and aid small and artisanal miners. According to the Minister, “World Bank has a time limit once they establish a programme there is maximum time you can access the fund. The current programme is supposed to finish in 2012 and we asking for another year extension. “The issue here to get it clearer is that if they give you a time period and they give you certain amount of money, if you spend half the money within the period that is what you get because it is time bound. When the time is up they pack their baggage and go.” Speaking on behalf of quarry owners, former chairman of the Peoples Democratic Party (PDP) Audu Ogbeh said Nigeria needs more quarries in other to meet up with housing demands of the its citizens. Chief Ogbeh assured the Federal Government of his members’ commitment for compliance with the Minerals and Mining Act of 2007 as regards environmental compliance and safety for sustainable mining. “We the Quarry operators are ready to abide by the rules and regulations guiding our operations.” He told the Minister that the Quarry operators within the Federal Capital Territory would form an association for easy co-ordination and to ensure compliance with the relevant rules and regulations for operators in the sub-sector. The spokesperson for the Quarry operators drew the attention of the Honourable Minister to the challenges of developers constructing residential houses close to quarry sites at Mpape in Abuja which  is hazardous. Consequently, he sought the assistance of the Minister of Mines and Steel Development to liaise with the Minister of the Federal Capital Territory to stop that trend.

(Source:http://www.vanguardngr.com/2010/08/23/fg-charges-quarry-operators-on-mining-laws/)

Nigeria affirms commitment to resuscitating Ajaokuta Steel

Sunday, August 22, 2010:This Day Online reported that, barely a week after announcing the disbursement of NGN 200 billion to revamp the automobile industry, the Federal Government has affirmed its commitment to resuscitating the moribund iron and steel sector in Nigeria. Mr Goodluck Jonathan President of Nigeria said that the government was committed to the early completion of the Ajaokuta Steel Company, the National Iron & Steel Company. He added that their completion would impact positively on the lives of Nigerians. He said that "Investment by the state government in infrastructure and commerce is to be complemented by auxiliary institutions for their benefits to be maximized. The ongoing dredging of the lower Niger River; the construction of Baro, Lokoja, Idah, Onitsha and Sapele Ports and the resuscitation of the Ajaokuta Steel Company and the National Iron Ore Mining, Itakpe are complimentary projects, which on completion will be of immense benefit, not only to the people of Kogi State but other Nigerians at large. I’m therefore fully committed to the early completion of these Federal Government projects." He commended Mr Ibrahim Idris governor of Ajaokuta for his initiative in building the market, the new 200 bed capacity state Specialist Hospital at the cost of NGN 1.5 billion, and the Lokoja Ajaokuta road at cost of NGN 3.3 billion. He added that the projects would impact positively on the lives of the people of the state. He assured the governor that his request for reimbursement of NGN 9.7 billion spent on the construction and rehabilitation of federal roads in the state would be looked into and directed the Minister of Works, Senator Mr Sanusi Daggash, to liaise with the state government to construct an overhead bridge at the international market site and dualization of the road opposite the market.

(Source:http://www.steelguru.com/international_news/

Nigeria_affirms_commitment_to_resuscitating_Ajaokuta_Steel/161636.html)

Experts call for scientific and integrated mine area development

Bhubneswar, August 23, 2010: Experts have asked the union and state governments to ensure scientific mining, optimum utilisation of mineral wastes, integrated mine area development, incentives for fly ash utilisation, developing new technology for utilisation of red mud, efficient water resource management practice with rain water harvesting and wet land development and annual environmental audit of the mining and mineral based companies. Deliberating in a three-day International Symposium on Environment Management of Mining and Mineral Based Industries (EMOMAMI - 2010) organised by the city-based Institute of Advance Technology & Environmental Studies (IATES), concluded here last week, experts called for a holistic approach to utilise replenishable mineral resources in the country. "Mineral resources are very vital for our industrial and hence socio-economic development. Therefore, every mineral deposit of all grades, small or big, has to be mined and fully utilised in their respective industries. In this process, every possible steps should be taken to keep the environment of the region in good condition and the displaced families should get all possible compensations and facilities so that they will fully cooperate with the mining authorities while leading a better life", the IATES chairman, P K Jean told "The ET". Experts called for granting of mining lease only to the highly experienced and reliable parties after checking the credential of the party for proper harnessing of the mineral wealth. "Integrated mine area development program should be implemented strictly. In this program, while implementing most modern mining technology, all grades of the minerals should be harnessed selectively and activities like afforestation on mine waste and waste land, water harvesting, development of mine roads and colony using mine wastes, safety of mine workers, etc should be implemented properly", it demanded. Calling for proper management and utilisation of mineral waster, the experts underscored the need for government incentives for fly ash utilization. By 2020 nearly 140 Million Tonnes (MT) of fly ash will be generated every year. "The flyash producing units should take all measures to utilize most of these for producing various construction materials like bricks, cement, land development, roads, etc. or take the responsibility for getting these utilised by other agencies. This should be clearly indicated in the project proposal of the mother industries. Government should provide various incentives for fly ash utilisation", the experts recommended. Similarly, in India, nearly 70 MT of red mud are generated per year in alumina industries, which will further go up with new units coming up. "In view of this, consolidated effort should be made to utilize red mud, may be along with flyash to develop construction materials or recovering iron value from the red mud through a new technology. For developing novel technology for utilising red mud and fly ash consolidated R & D efforts should be made with the involvement of the Government", it added. Mining and other mineral based industries has to strictly subjected to annual environment audit comprising of compliance audit, management audit, waste management audit, waste minimisation audit and property transfer audit, the experts said adding that Corporate social responsibility (CSR) of each industry should be clearly programmed with the approval of the appropriate authority and its implementation should be monitored and reviewed by the regulatory authority. They also called for better environment management of both mining and mineral based industries with industries planning for an efficient water resource management practice with rain water harvesting and wet land development.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Experts-call-for-scientific-and-integrated-mine-area-development/articleshow/6422099.cms)

Planners come to the rescue of Coal India

New Delhi, August 23, 2010:The Planning Commission has proposed that coal mining be allowed in phases in all blocks allotted till the end of last fiscal, with tree cover restored once mining was over. Earlier this year, the environment ministry had divided forests into “go” and “no go” areas on the basis of forest cover, which would severely limit production of miners, particularly Coal India Limited.  Recently, the Prime Minister’s Office had reviewed the environment ministry’s position. However, the Planning Commission, in a note, has observed that going by the environment ministry’s directive Coal India’s mining area will be reduced by 30 per cent. According to the note — “Meeting Coal Demand in Eleventh Plan and other Issues” — Coal India could see a drop in output by about 45 million tonnes annually. This move was seen jeopardising one of the biggest public issues planned by the finance ministry — Coal India’s Rs 15,000-crore IPO in October. Coal belts affected by the environment ministry’s order are Hasdev and Mandarigarh in Chhattisgarh, Singrauli in Madhya Pradesh and Ib Valley in Orissa. Besides Coal India, several other groups that would be affected include the Tatas, Reliance Power and Hindustan Zinc.  The environment ministry’s classification can put 619 million tonnes of coal annually out of the reach of miners. According to the plan panel note, “It has to be appreciated that coal mining is carried out in the world in most developed countries. No country is letting its energy resources idle unless it has other alternative.  “A broad balanced approach will be to utilise our domestic mineral resources while taking full safeguards for the development of forests and environment.”  It suggested a review of the policy by an inter-ministerial committee and permitting mining in phases in the blocks allotted till March 31, 2010. “As one gets completed, the area should be afforested (by the miner) and handed over for management to the ministry of environment and forests.” The note goes on to say that “in case of extremely dense forests, the ministry of coal should explore underground mining.” Senior government officials said Coal India, too, had proposed an alternative several months back.

(Source:http://www.telegraphindia.com/1100824/jsp/business/story_12846719.jsp)

Decision on Vedanta mining project tomorrow: Ramesh

New Delhi, August 23, 2010: The fate of Vedanta's controversial mining project in Niyamgiri Hills will be decided tomorrow by Environment Minister Jairam Ramesh on the basis of the report submitted by a key government panel on forest clearance. "I will announce the final decision tomorrow on the project," Ramesh told PTI soon after his meeting with Orissa Chief Minister Naveen Patnaik who has been seeking early clearance to the key developmental projects in the state.  Ramesh, however, refused to share the recommendations of the Forest Advisory Committee (FAC) which had submitted the report to him after reviewing the suggestions given by the NC Saxena panel seeking ban on the mining project in view of various violations by it at the site.  However Ramesh said he did not discuss the project proposed to come up in Niyamgiri Hills with the Orissa Chief Minister during his meeting with him. "I gave him no assurance on Vedanta (project). In fact, I did not discuss the matter with the Chief Minister (Patnaik) on Vedanta. I heard him only saying that the Supreme Court has already given its verdict and so you should also do it fast," the Union Minister said.  Sources said FAC has recommended the Environment Ministry for temporary withdrawal of in principle environment clearance given to the Vedanta's mining project which is being accused of several violations at the site as pointed out by the Saxena Committee.  "The FAC has accepted the major recommendations of the NC Saxena Committee though on minor points it has not agreed," the sources said. When asked what the FAC meant by temporary withdrawl of clearance, the sources said that sufficient time should be given to Orissa government and Vedanta to file their reply. "On environmental violation issue pertaining to illegal expansion of refinery capacity by the Vedanta, the FAC has recommended the matter be referred to the Environmental Appraisal Committee," the sources added. The Saxena report has citied many violations of the in-principle environment clearance given to Orissa Mining Corporation in 2008 including non-compliance with the provisions of the Forest Rights Act. "The consent certificate of the gram sabha granted was fake," the panel said in its report while recommending not to approve the project because of large scale violations.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Decision-on-Vedanta-mining-project-tomorrow-Ramesh/articleshow/6423030.cms)

Orissa to approach SC on Posco PL case

Kolkata/Bhubneswar, August 23, 2010: After facing the flak of the Orissa High Court over the case of recommendation of prospecting license (PL) in favour of Posco India, the state government has decided to approach the Supreme Court of India on the issue. “We would challenge the order of the Orissa High Court in the Supreme Court of India. The state government will make an appeal in two to three weeks,” a top official in the state steel and mines department told Business Standard. It may be noted that in a verdict dated July 14, the Orissa High Court had set aside the recommendation of the state government for providing PL in favour of Posco India for Khandadhar iron ore mines in Sundergarh district. The court verdict on July 14 had come as a as a dampener for the South Korean steel major which had got a reprieve of late after the finalisation of the compensation package for the project affected families at the meeting of the Rehabilitation and Peripheral Development Advisory Committee (RPDAC) held last month.  Disposing of a writ petition of Geomin Minerals and Marketing Ltd, a Bhubaneswar-based company, a two-member division bench of the High Court comprising Justice B P Das and Justice B P Ray had directed the state government to take a fresh decision on the recommendation of PL in favour of Posco, giving preferential right of consideration to the petitioner. The High Court had directed the state government to conduct a fresh hearing of all the 226 applicants for the Khandadhar mines. Earlier, in January 2009, the Orissa government had recommended to the Government of India for grant of PL in favour of Posco over an area of 2,500 hectares of Khandadhar mines. The recommendation was made in favour of the company as per Section 11 (5) of Mining and Minerals (Regulation and Development) Act. Subsequently, several companies had challenged the state government's decision to recommend PL in favour of Posco India. Terming the decision of Orissa government as 'arbitrary' and 'illogical', Geomin Minerals had challenged the government's recommendation in the High Court claiming that it had made the first application for mining lease in the area way back in August 1991. The preferential right for consideration was available to the petitioner and the recommendations made in favour of Posco was not valid, the High Court observed in its judgment. The HC in its verdict, also directed the state government to dispose of all pending applications of the petitioner within a period of four months.

(Source:http://www.business-standard.com/india/news/orissa-to-approach-scposco-pl-case/405404)

Uranium Mining update in India - Mr Jairam

August 23, 2010: Mr Jairam Ramesh minister of state for environment and forests (Independent Charge) informed the Lok Sabha the ministry has received 20 proposals pertaining to exploration and mining of Uranium so far. They include 14 proposals for exploration. The remaining 6 proposals for mining of Uranium have been accorded forest clearance. Of the 14 proposals of exploration, 7 have been approved and 4 have been withdrawn / returned / closed for want of information. While 1 proposal has been rejected on merit, the 2 are pending with the State Governments.

(Source:http://www.steelguru.com/metals_news/Uranium_Mining_update_in_India_-_Mr_Jairam/161834.htm)

Steel minister backs ban on iron ore export

Mangalore, August 22, 2010: The state government's move to ban export of iron ores and allowing its use for manufacture of value added products found a strong backer in Atul Chaturvedi, secretary, Union ministry of steel. The ministry for long has been advocating the need to ban export of ore in its raw form, and permit for the same in inevitable circumstances by imposing deterrent duties, forcing exporters to rather focus on value addition with the ore.  Interacting with reporters after visiting KIOCL's pellet plant and blast furnace unit, Atul said the country must aim at conservation of iron ore and strive for maximum value addition rather than export it. The country produces around 200 million tonnes (MT) of iron ore and half this quantity is consumed locally and the rest exported. Instead, the focus should be on allowing mining activities for the quantity required domestically, he advocated. Large-scale mining has resulted in major problems of rehabilitation and resettlement in mineral rich states such as Bihar, Jharkhand and Orissa, he said, adding that these issues can be settled if the focus shifts to conservation and preservation of ore for national and domestic use. The ministry's endeavour in this regard has not yielded the desired results, he said, adding that efforts are still on to convince the powers that be on the same. This, he said, is imperative given that India is looking forward to increasing capacity of its crude steel production to 200 MT in 2020 as against 75 MT right now. The production of crude steel will increase to 120 MT by December 2012, he said, adding that an investment of Rs 3 lakh crore is riding on this development with several steel projects in their advanced stages of completion across India. On the clamouring on part of steel plants for dedicated mining reserves, he said it is because India follows a practice of allocating and not auctioning mines. "What is needed is, for such mines to be allotted to those companies that convert this ore in to value added products and not to those companies who merely mine it and export it," Chaturvedi said. This is the same view that chief minister B S Yeddyurappa has been advocating of late.

(Source:http://timesofindia.indiatimes.com/city/mangalore/Steel-minister-backs-ban-on-iron-ore-export/articleshow/6395066.cms)

Working in mines is getting safer: official

Mangalore, August 21, 2010: Proactive measures taken by Directorate-General of Mines Safety (DGMS) has resulted in reduction of deaths in mines in India, S J Sibal, director general of mines safety said here on Saturday. DGMS is a body under the union ministry of labour and employment. The death rate has come down from 1.2 per 1,000 workers in 1972 to 0.28 per 1,000 workers in 2010, which is on par with global safety figures in mines. Interacting with reporters on the sidelines of an international symposium organised by NITK here on Saturday, Sibal said the decline in accident rate is a sign that procedures of safe operations in mines as mandated by his office is being followed in the true spirit of the letter. This is noteworthy given that production of various minerals in the numerous mines dotting the country has gone up tremendously in the last 40-odd years, he said.  United States of America, one of the biggest nations in terms of mining activity, and China, which produces minerals five times India's national production average, report of a gas explosion in their mines almost on a regular basis. India on the other hand has to grapple with such incidents once almost four-to-five years, he said adding that Indian mining safety standards are on par, if not better with international mining standards.  A proposed amendment to Indian Mines Act, 1952 will take a step towards addressing environmental concerns left behind by vast swathes of land ripped open by mining activities. If the amendment comes through, companies that involve in mining in an area allotted to them would have to take steps to restore it to semblance of normalcy, he said. Hitherto, companies just abandoned the mining area once their permits expired. The major area of concern in the mining sector, Sibal said are the slow paced reforms in Indian mining sector and inability on part of Indian mining companies to integrate state of the art mining technology and equipment in their daily functioning. Mining companies abroad account for production of 6 million tonnes of minerals per annum, as against Indian companies that account for 1 million tonnes and this has to be addressed, he said.  Earlier, inaugurating the symposium, Sibal said India has drawn up an ambitious target to produce 1,300 million tonnes of coal by 2025 as per the 'Coal Vision 2025' drawn up by the ministry. The country that was producing 500 million tonnes of coal in early 1970s is presently producing 500 million tonnes. Coal production in India is expected to go up by 5.65% if its GDP grows by 8% and by 5.04 per cent if the GDP growth is 7%.  Average depth of Indian mines is around 300 metres, he said, adding need of the hour is to take this to 600 metres. Active mining should be done at levels of 600 metres, he said adding in order to achieve this, mining companies should adopt advanced technological solutions for better strata control as well as better maintenance practices. There is also need to be more vigilant about mines safety and health of workers, he added.

(Source:http://timesofindia.indiatimes.com/city/mangalore/Working-in-mines-is-getting-safer-official/articleshow/6388975.cms)

Vedanta denies mining at Niyamgiri hills

Bhubneswar, August 20, 2010: London listed Vedanta Aluminium Limited (VAL), which has already set up its 4,500-crore refinery project at Lanjigarh in the poverty-hit Kalahandi district much ahead of the schedule and now is expanding to one million ton refinery on Thursday denied exploitation of bauxite from Niyamgiri hills.  The company also made it clear that not an inch of mining would commence on the hills without obtaining necessary approvals from the Centre and Orissa government. “We have not started a single inch of mining on the hilltop of Niyamgiri. The recent report in a section of media about bauxite mining in Niyamgiri hill is just misinterpretation of the facts and far from the truth,” Dr Mukesh Kumar, Chief Operating Officer (COO) of VAL, told “The ET”.  Dr Kumar said VAL was waiting for necessary clearances from the Centre. “We are waiting for necessary clearances. I have ensured many times even in the past that no mining activity has commenced on Niyamgiri hills. Mining will commence only after obtaining all the necessary approvals from Government of India and the Orissa Government,” Dr Kumar said.  A joint venture (JV) company between state owned Orissa Mining Corporation (OMC) and Sterlite Industries India Ltd (SIIL), the metal arm of Vedanta Resources would undertake mining on Niyamgiri, Mr Kumar said adding that mining would take place as per the directives of the Supreme Court.  “VAL has strictly followed the Supreme Court’s directive with regard to the project. As per the directive, a special purpose vehicle (SPV) called Lanjigarh Project Area Development Foundation (LPADF) with participation of SIIL, OMC and Government of Orissa has been formed. The Revenue Divisional Commissioner (South) is the chairman of the SPV. SIIL has already deposited Rs 20 crore in the SPV as its contribution for Scheduled Area Development of Lanjigarh project,” Dr Kumar said.  The Apex Court in its verdict had said, “SIIL will deposit every year commencing from 1.4.07, 5% of its annual profits before tax and interest from Lanjigarh Project or Rs 10 crore whichever is higher for Scheduled Area Development with the said SPV and it shall be the duty of the said SPV to account for the expenses each year”.  Mr Kumar said the amount to be spent on the development of local area would cross Rs 50 crore once the expansion is over bringing smiles to local populace. The LPADF has initiated several development projects in the areas of health, education, drinking water, livelihood, infrastructure development for the tribals, he added.

(Source:http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Vedanta-denies-mining-at-Niyamgiri-hills/articleshow/6339640.cms)

Power cos seek mining partners to bid for 1,920-Mw project

Mumbai, August 20, 2010: A joint venture between the Maharashtra and Tamil Nadu governments for a pit-head power project, has been allotted the biggest coal block yet given for a project to be competitively bid. The block, located in Raigarh district of Chhattisgarh, has reserves of 768 million tonnes. The coal block allotted for the Sasan ultra mega power project (in Madhya Pradesh) has around 750 mt. The miner-cum-power developer who would win the project will have to put up a 1,920 Mw power project. Half the power produced can be sold on a merchant basis, while the other half should be sold to Maharashtra and Tamil Nadu state electricity boards. The extra coal from this mine has to be diverted back to the joint venture company. Industry sources say the high technical qualification norms might not allow many companies to qualify. Bidders should have at least three years experience in mining 10 million tonnes in the past three years, either in India or abroad. Bidders who have been selected to develop a coal mine with geological reserves of 250 mt are also qualified. Some power companies like Reliance Power, Indiabulls have experience in developing coal mines, as a part of pit-head projects. But many companies will have to scout for coal mining partners to jointly bid for this project. “We are looking to partner with Indonesian coal mining companies,” said an official who is planning to bid for the project. Analysts say Indian power companies have traditionally never engaged in coal mining and, hence, most of them lack experience. “Indian power companies normally get coal either from Indonesia, trading companies or Coal India. Most of them do not have any experience in mining. But a few players have started entering the field now, like JSW Energy or Reliance Power,” said Rupesh Sankhe, analyst, Angel Broking. The project criterion also demands that the bidder should have either implemented or have under implementation projects with a capital cost of at least Rs 10,000 crore or 2,000 Mw in the past seven years. Further, the company must have achieved financial closure of Rs 6,000 crore. The project also has a unique financial requirement, that asks bidders to have Rs 400 crore in the form of fixed deposits, liquid mutual funds or fixed maturity plan investments. “These conditions are very tough. Other projects do not ask for these kind of conditions,” said another prospective bidder. Analysts say while qualifications norms are tough, it is likely this project could generate a lot of interest, as the investment climate is very positive in the power sector. Many power companies have achieved financial closures of their projects and are ready to take on new commitments. “Reliance Power has already achieved financial closures of two power projects, Lanco has tied-up for its near-term requirements, Tata Power has enough internal accruals, NTPC is sitting on a lot of cash; Adani Power has started operations in its Mundra power project,” said Sankh.

(Source:http://www.business-standard.com/india/news/power-cos-seek-mining-partners-to-bid-for-1920-mw-project/405193/)

CIL lobbies for mining in sparse forests

Nagpur, August 19, 2010: As environmentalists cry foul over mining in forest areas, Coal India Limited (CIL) is carrying out an exercise to demarcate as coalfields the forest land which is actually mere shrubs.  Once these areas are identified, the company would press the government to give an early approval to start mining operations in these areas. A substantial chunk of coal reserves are below such areas, however, there are difficulties as these are mentioned as forest land in government records, said CIL chief PS Bhattacharya.  He cited the example of areas under northern coalfields (NCL), where he said the company`s afforestation efforts have led to favourable climate change, with rainfall increasing as well as temperature levels going down. Similar efforts can be taken, if CIL is allowed to mine areas with shrubs, which are presently classified as forests.

(Source:http://timesofindia.indiatimes.com/city/nagpur/CIL-lobbies-for-mining-in-sparse-forests/articleshow/6334479.cms)

Centre plans overhaul of mining sector

New Delhi, August 19, 2010: When former Karnataka Lokayukta N Santosh Hegde recently said that vested interests were controlling the mining industry, he was not exaggerating, considering that India registered over 182,000 cases of illegal mining across 17 states in the last five years alone. The Union government data show that Andhra Pradesh — the single largest contributor to the country’s mineral production of roughly Rs 1,28,000 crore — alone registered a 110 per cent increase in illegal mining cases in the last four years. The number of cases in Andhra rose to 11,590 in 2009 compared to 5,385 in 2006. The proposed amendment to the Mines and Minerals Development and Regulation (MMDR) Act plans to tackle the issue of illegal mining, besides bringing other changes in the current functioning of the mining industry.  The Bill proposes allowing states to set up special courts for prosecution of mining-related offences and giving more teeth to the Indian Bureau of Mines (IBM), which serves as a sectoral regulator, by allowing it to take direct action in cases of illegal mining, a senior official told Business Standard. Illegal mining is one reason why the growth in the country’s mineral production in value terms dipped to 10 per cent in the last financial year from 17 per cent in 2005-06. If the proposed amendment is cleared by the Group of Ministers (GoM) and gets past the legislative rituals, the mining sector could see a sea change. The GoM has already met twice last month and the Ministry of Mines is likely to introduce the new mining Bill in the current session of Parliament. The draft Bill, a sequel to the 2006 Hoda Committee report, introduces new concepts like making the local population shareholders in mining projects, apart from setting up a regulator to file cases against violators and check illegal mining. “The delays in renewal of concession agreements lead to companies continuing mining without licences. So, the GoM has decided to set up a regulatory authority to tighten the mechanism of granting mineral concessions,” former mining secretary Santha Sheela Nair had said after the GoM meeting last month. Some experts, however, doubt the efficacy of the idea. “It is not understood how illegal mining can be checked by setting up a regulator. A regulator sitting at the Centre cannot stop this,” said a senior government official. “The GoM must understand that it is a law and order issue. Is anybody asking from where does the explosive come for blasting stones in an illegal mine?” he asked. Another expert voiced a similar opinion. “A regulator may not be effective in this matter, as it will not have control over the machinery of the state government to enforce law and order and check illegal mining,” said Gokul Chaudhri, Partner and Leader, Energy and Infrastructure Practice, BMR Advisors. Another issue being considered in new mining legislation is granting ownership to locals in mining projects. The resistance from locals and the prevalence of Naxalism in the mining belt are the primary reasons for this move. Companies like Posco, Vedanta and ArcelorMittal have been facing protests against land acquisition in Jharkhand, Chhattisgarh and Orissa. The GoM has already decided “in principle” to make local populace stakeholders in mining in tribal areas. While some members of GoM suggest that people should be given a part of the annual profits, others suggest giving tribals an equity stake. Stiff industry opposition has ensured delaying the GoM’s decision on the matter. In a recent letter to Finance Minister Pranab Mukherjee, Federation of Indian Chamber of Commerce and Industry (Ficci) Secretary General Amit Mitra cautioned against mining projects becoming unviable in case the proposal was implemented, as it would put “very heavy financial burden on mining companies”. Ficci argues that if profits of mining companies can be shared with tribals, then even losses should be shared. The chamber has also pointed out that the proposal would not only lead to tribals misusing compensation money, it would also make the promoter vulnerable to hostile takeover. Experts believe the new legislation will bring about a major overhaul of the mining sector, which is currently functioning on laws enacted in the 1950s. However, absolute reforms will have to wait until at least coal mining is commercialised, to allow the private sector enter and ramp up production. For this, a separate Commercialization of Coal Mining Bill, introduced in the Rajya Sabha by the BJP-led NDA government, is still pending. “In the mining sector, and especially in coal mining, 100 per cent foreign direct investment is allowed but acreages are not available at the state level, which deters private participation. This should be corrected to ramp up production and push reforms,” Chaudhri said. “The industrial reforms that were initiated in 1991 allowed foreign and private entry in different sectors. But we have not seen that happening in coal and mining sectors,” he added.

(Source:http://www.business-standard.com/india/news/centre-plans-overhaulmining-sector/405068)

RS clears mines and minerals bill

New Delhi, August 18, 2010: The Rajya Sabha on Tuesday unanimously passed the Mines and Minerals (Development and Regulation) Amendment Bill 2008 with Coal Minister Sriprakash Jaiswal assuring the Elders that the public sector will continue to get top priority.  He said the Government had no intention to privatise coal mining and PSUs and state governments would be allotted coal blocks for mining through a separate channel. However, private companies would have to bid for the blocks and all the money generated through the auction would go into the kitty of the States concerned, the Minister said. The Bill allows the Government to auction coal blocks to private players for mining for captive use including power plants and iron ore and steel companies. The coal mines were nationalised in 1973 and private players were allowed re-entry in 1993 in a limited manner.

(Source:http://www.dailypioneer.com/276742/RS-clears-mines-and-minerals-bill.html)

Indian iron ore loses out in China

Mumbai, August 18, 2010: Karnataka export ban, China’s stoppage of low-grade ores ensure steep fall. India’s iron ore exports to China fell sharply in July. Reasons: China’s ban on low-grade iron ore imports and Karnataka’s move to ban exports from its ports. The Federation of Indian Mineral Industries (Fimi) said exports to China fell around 30 per cent in July and predicted a further fall if corrective measures were not taken. In April, China banned import of low-grade iron ore. Since India’s annual ore exports of around 115 million tonnes are largely (effectively 90 per cent) to China, the ban has hampered mining. Barring committed quantities for which contracts were signed at least two to four weeks in advance, no major deals have happened since April. The second blow was struck by Karnataka. The state, with proven iron ore reserves of 9.03 billion tonnes, suspended exports last month. The state produces about 40 mt a year, of which only 15 mt is consumed by the local mills. Most of the remaining 25 mt is exported to China. As a consequence, exports to China plunged 28 per cent to 4.74 mt in July. A further decline cannot be ruled out if Karnataka does not take back the ban, says Fimi Secretary-General R K Sharma. Mining companies have filed suits against the decision in the high court. The hearing is on Friday. Chinese iron ore imports rose nine per cent in July to 51.2 mt, after three straight monthly declines. Stockpiles of imported ore at Chinese ports plunged 400,000 tonnes to 73.98 mt for the week ended August 13. Of this, Indian stocks fell 1.24 mt to 16.88 mt. India meets about 15 per cent of China’s annual iron ore demand of 700 mt. India’s loss has helped two leading global suppliers that meet nearly 80 per cent of China’s iron ore consumption. For the week ended July 13, Australia’s share rose by 220,000 tonnes to 25.95 mt, 35 per cent of the total. Brazilian supply increased by 950,000 tonnes, finishing the week at 16.88 mt. Goa exports about 30 mt low-grade ore annually, mainly on a spot basis. Since China stopped buying low-grade ore, miners in the state cut output drastically. About 70 per cent of Goa’s ore is exported to China (80 per cent of it is low-grade). “Many new markets, including Angola, Iran, Madagascar and Mozambique, have emerged as a substitute to India. For China, supply restriction is not a problem, while for us, exploring new markets will be a herculean task,” said Haresh Melwani, CEO, H L Nathurmal & Co, a Goa-based miner. India produced 218 mt iron ore in 2009-10, up from 215 mt in 2008-09.

(Source:http://www.business-standard.com/commodities/storypage.php?autono=404839)

Street downgrades hit Sesa Goa hard

Mumbai, August 18, 2010:The move by Anil Agarwal-controlled Vedanta Group to use its iron-ore mining subsidiary Sesa Goa’s cash to buy a part of Cairn India has got a thumbs down from analysts at broking houses. Many of them, while downgrading Sesa Goa share ratings, forecast a dull outlook for the stock citing lack of ‘effective utilisation’ of its cash, absence of synergies with the existing business and concerns over the outlook of iron-ore business. “The proposed acquisition is not synergistic, offers too little stake to Sesa Goa, and does not effectively utilise its cash,” said Edelweiss Securities. “Considering these factors and the potential overhang of the acquisition on the stock, we are downgrading our recommendation from ‘hold’ to ‘reduce’,” it said, in a report.  Vedanta said it will hold 31-40% of Cairn directly and Sesa Goa will own 20% once the deal is sealed. Analysts expect Sesa Goa to pay about $3 billion for the stake that will be funded through its cash worth $2 billion and debt worth $ 1 billion.  Broking firm India Infoline said Sesa Goa’s investment in Cairn is purely on a group-level funding and not so much because of economic interest.  “Sesa Goa’s diversification into an unrelated business to utilise its excess cash raises concerns regarding the growth prospects of its core iron-ore business and the stock could take a hit in the short term,” Angel Broking said in a report, maintaining its neutral view on the stock.  Sesa Goa shares fell 10% in the last-three sessions after news of Vedanta buying Cairn first appeared in the media on Friday. The stock closed at Rs 319.7 on Tuesday.  “While management has reiterated that it expects to increase its iron-ore sales volume to 50 million tonne by FY14 (estimated) and the deal to be earnings-per-share accretive from FY11 (estimated), we believe that with the  cushion of excess cash now unavailable, the company would have to leverage its balance sheet for any potential acquisitions in its iron-ore business going ahead,” said Angel Broking.  Analysts said the cash was a source of comfort for Sesa Goa’s investors, who expect iron-ore prices to weaken further. It has declined in the last couple of months, after doubling in a year, and analysts expect them to drop further as China attempts to slow down its economy to avoid ‘overheating’.  Sesa Goa exports 90% of its production, with China being its largest market. Edelweiss said it anticipates Sesa Goa may have to provide additional funds to finance Cairn India’s growth plans. “We also perceive the risk of the company having to pay higher dividend to service increased debt at Vedanta Resources,” it said.

(Source:http://economictimes.indiatimes.com/Stocks-in-News/articleshow/6327817.cms)

Govt wants all captive ore mines hived off

New Delhi, August 18, 2010:The country’s top three integrated steel manufacturers, SAIL, JSW Steel and Tata Steel would soon have to hive off their captive iron ore mines into separate entities. This is because to arrive at the true pricing of iron ore and estimate the relative competitiveness of steel mills correctly, the government is working on a proposal whereby all steel companies would have to hive off their captive iron ore mines, if any, into separate companies. Iron ore is a key raw material in steel-making since 1.5 tonne of the material is used to make one tonne of steel. The country’s largest steel manufacturer, the state-owned Steel Authority of India (SAIL) and the third largest Tata Steel meet their ore requirements through captive mines while the second largest, JSW Steel meets around 10% of its requirement through captive mines. According to the proposal, which is at the preliminary stages, even if the companies hive off their iron ore mines into separate entities, they would be assured of raw material supply. “Currently, fresh mining leases are given for a period 10 years; we plan to increase it to 30 years,” said an official. “However, the companies would have to disclose the price at which they sell iron ore to their steel manufacturing units. They would be free to export but if they sell to any other player in the domestic market, it has to be at the same price at which they are supplying to their units,” the official added. As of now, pricing of steel is not transparent for companies with captive mines. While those without captive resources are left to the vagaries of the market as iron ore prices are quite volatile, market prices of steel are similar for all manufacturers, which gives an edge to captive mine owners..

(Source:http://www.indianexpress.com/news/Govt-wants-all-captive-ore-mines-hived-off/661697)

Govt forms panel to probe illegal mining

New Delhi, August 18, 2010: Admitting to incidents of large scale illegal mining in several states, UPA government on Tuesday set up a Commission of Inquiry to investigate the extent of the problem. Illegal mining activities can lead to a nexus between criminal and anti-national elements, especially in areas affected by Left Wing extremism, Minister of State for Mines B.K. Handique said in Lok Sabha. The Commission will present its report within 18 months. It will identify people or companies concerned, determine the extent to which the management, regulatory and monitoring systems have failed and identify persons responsible for tampering of official records. The Commission may take assistance of any central or state investigative agency or any other authority as it may deem necessary. Several reports clearly point to the fact that “mining, raising, transportation and export of iron ore and manganese ore illegally or without lawful authority in various states are taking place on a large scale,” Handique said. Due to a combination of reasons in recent years, incidents of illegal mining have grown considerably in states including Orissa, Jharkhand, Andhra Pradesh, Karnataka and Goa. With a view to curb this menace, the enquiry panel will inquire into and determine the nature and extent of illegal mining, trade and transportation of iron and manganese ores. Later, speaking during the debate, former Prime Minister H.D. Deve Gowda dubbed the proposed Commission of Inquiry as an “eyewash” and demanded setting up of a Joint Parliamentary Committee to probe the matter. Opening the debate, CPM leader Basudev Acharya demanded the nationalisation of the illegal mines and said the issues also needed to be inquired into by the Central Bureau of Investigation.

(Source:http://www.hindustantimes.com/Govt-forms-panel-to-probe-illegal-mining/Article1-588318.aspx)

Vedanta decision likely in a week

New Delhi, August 18, 2010: The environment ministry is likely to take a decision on the fate of Vedanta’s mining project in Orissa in a week. The NC Saxena panel, appointed by the ministry, had on Monday recommended that the company not be allowed to mine in the Niyamgiri hills. The Forest Advisory Committee will be meeting on August 20 to consider recommendations of the expert panel. The FAC will be submit its recommendations to environment minister Jairam Ramesh, after which a final decision will be taken. “After FAC makes its observations, I will take a decision in totality, taking into account the various laws, economic consideration. Only then will final clearance be given to the mining project,” Mr Ramesh said. The Saxena panel had found serious violations in the provisions of environmental clearance and the Environment Protection Act by Vedanta. One such violation related to the unauthorised expansion of capacity from 1 million tonne a year to 6 million tonne. The expansion had no environment clearance and Vedanta is said to have ignored repeated notices sent by the Orissa Pollution Control Board to stop work. The minister has said that he would look into the reported violations, and requisite action would follow. “I am surprised to know that the refinery has expanded its capacity six-fold . If this is indeed the case, as pointed out by the report, then it is a most blatant and serious violation of environment laws. It will be looked into,” the minister said. While the ministry seems to be convinced that bauxite mining in Niyamgiri hills should be blocked, a different yardstick may be applied while assessing Vedanta’s refinery. There is a view that since the refinery is already functional and the expansion work nearly complete , the company should be let off after being slapped a fine.

Source:http://economictimes.indiatimes.com/news/politics/nation/Vedanta-decision-likely-in-a-week/articleshow/6328510.cms)

Ammo stolen for illegal mining

Jaipur, August 18, 2010: A large quantity of explosives, which went missing while being transported from Dholpur in Rajasthan to Sagar in Madhya Pradesh, were meant to be used in illegal mining in Bhilwara and Rajsamand districts of Rajasthan. This was stated by officials of agencies investigating the disappearance of 61 trucks carrying nearly 400 tonnes of explosives during four months from April till July. Days after Hindustan Times reported last week that the consignments went missing, four of the 61 trucks were found – without any of the cargo – in Raigarh district of Madhya Pradesh. Another 26 trucks and 150 tonnes of explosives were found in a village in Bhilwara district of Rajasthan on Monday but the owners of the storehouse where the deadly goods were kept are absconding. Investigators told Hindustan Times that the explosives stored in Bhilwara were to be sold to illegal mine operators in the district and adjoining Rajsamand. “A large number of illegal mines operate in the area and they use explosives routed from illegal sources. The police and mines officials know about this but take no action,” said a member of the Rajasthan Mines and Minerals Association. Investigators, including the Anti-Terrorism Squad (ATS) of the Rajasthan Police, suspect that some of the explosives might have fallen into the hands of terrorist or extremist outfits, including Maoists. “The biggest threat is that missing explosives might have fallen into the hands of Maoists who use them for landmine blasts,” said an investigating official who did not want to be named. Sagar Inspector General of Police Avnesh Mangalam admitted, “Misuse of the explosives cannot be ruled out.”

(Source:http://www.hindustantimes.com/Ammo-stolen-for-illegal-mining/Article1-588308.aspx)

C’garh CM seeks forest land for coal mine; no, says Jairam

New Delhi, August 17, 2010: Union Environment Minister Jairam Ramesh has shot down Chhattisgarh Chief Minister Raman Singh’s proposal to divert more than 2,000 hectares of forest land for opencast coal mining at Tara coal block of the Hasdeo-Arand coalfields, arguing that it is “very rich in species diversity and an important wildlife habitat”. In a letter to Singh on August 2, Ramesh said, the Chief Minister’s (June 4) proposal seeking diversion of 2301.260 hectares of forest land for opencast coal mining at the tribal-dominated state’s Tara coal block was examined by the Forest Advisory Committee (FAC), which observed that the area was part of a large and compact forest block very rich in species diversity and also a part of the unfragmented landscape and important wildlife habitat. This was one of the few patches left of its kind in the country, he cited. “The Committee, therefore, decided that the whole forest block should be kept intact to derive environmental benefits and to use it as a pristine area rather than open it up for mining,” Ramesh told Singh. The Hasdeo-Arand Coalfield has over 20 coal mines, with estimated reserves of 1,360 million tonnes (mt). Companies like Prakash Industries, Hindustan Zinc, Ultratech and Chhattisgarh Captive Coal Mining have been reportedly given mining licences based on their projects there. The coal block had been allocated to a twice-delayed 4,000 MW UMPP in Chhattisgarh. Upto 15,000 MW of power projects would use coal from Hasdeo Arand if the block received MOEF clearance. Currently coal ministry and Ministry of Environment and Forests (MoEF) are fighting a turf war on the issue of Go and No Go areas devised by MoEF, which the former believes would keep 48 per cent of coal blocks outside the purview of mining, leading to a

(Source:http://www.indianexpress.com/news/cgarh-cm-seeks-forest-land-for-coal-mine;-no-says-jairam/661220/0)

Saxena Committee submits report to Environment Ministry on bauxite mining project of Vedanta

Bhubaneswar, August 17, 2010: After  Posco, the bauxite mining project of Vedanta group in Niyamgiri hills in Orissa is on hang as the Saxena committee has submitted their report  to the Forest and Environment Ministry on Monday opposing  the project, saying it violates certain laws relating to rights of tribal communities. On the other hand the Chief Minister Naveen Patnaik expressed that appropriate action will be taken after receipt of the communication. The Saxena Committee , a panel constituted by Ministry of Environment and Forests (MoEF)  said in their report that the UK-based mining group Vedanta  Resources’ bauxite mining in Niyamgiri hills should not be allowed for mining unless the local tribal communities give their consent and village councils agree to the use of forest land for the project. The N C Saxena Committee, investigating violations of the Forest Rights Act and environmental norms by the mining company in Kalahandi district, said that allowing mining in the area would shake the faith of tribal people. "This committee is of the firm view that allowing mining in the proposed mining lease area by depriving two primitive tribal groups of their rights... in order to benefit a private company would shake the faith of the tribals in the law of the land," the N C Saxena Committee set up by the Environment Ministry said in the report. The four member panel headed by Saxena submitted their findings  to Environment Minister Jairam Ramesh who said a final decision in the matter will be taken after the Forest Advisory Council (FAC) takes a view on the committee's findings on August 20. Based on the Saxena report, MoEF had recently asked the state government to “stop work” at the proposed Posco site in view of non compliance of Forest Rights Act by it. On Vedanta's proposed mining project, the report said, "the Company has consistently violated the Forest Conservation Act (FCA), Forest Reserve Act (FRA), Environment (Protection) Act (EPA) and the Orissa Forest Act in active collusion with the state officials. "Perhaps, the most blatant example of it is their act of illegally enclosing and occupying at least 26.123 hectres of village forest land within its refinery depriving tribal, dalits and other rural poor of their rights," the report said. It pointed out that the firm has already proceeded with construction activity for its enormous expansion project that would increase its capacity six fold from one million tonnes per annum to 6 mtpa without obtaining environmental nod as per provisions on the EPA. The panel also took note that the proposed mining lease site will provide only 3 mtpa of ore out of the total annual requirement of 18 mtpa of the refinery after its ongoing expansion from the existing capacity of one mtpa to 6 mtpa for which they have already completed work even before getting permission. "The proposed mining site thus has low relevance to the future of the refinery and is not critical at all for its functioning as is being claimed by the company and the state officials," the panel said after visiting the site. Panel member, Pramode Kant while sharing the details of the huge ecological cost that mining would cause in the region due to the project spread over 7 sq km, said, "it would lead to cutting of over 1,21,337 trees and endanger wildlife habitat in Niyamgiri Hills." The report also noted that the said forest land cannot be diverted unless gram sabhas clear the proposal as per Panchayats (Extension to the Scheduled Areas) Act (PESA), which is applicable in the concerned area that falls in schedule V category. In a nut shell, it said, the Ministry cannot grant clearance for use of forest land for non-forest purpose because, "the process of recognition of rights under the Forest Rights Act has not been completed.".  The consent of the concerned community has neither been sought not obtained while the Gram Sabhas of the area concerned have not certified on both these points as required.

(Source:http://www.orissadiary.com/ShowBussinessNews.asp?id=20617)

Centre plans to give tribals a share in mining profits

New Delhi, August 17, 2010: The Centre is planning to give a 26 per cent share in mining profits to tribal people and to set up a regulatory body to check illegal mining, Union Minister of Mines B.K. Handique informed the Rajya Sabha on Monday.  The draft of the Mines and Minerals (Development and Regulation) Bill — prepared on the basis of the policy directions set forth in the 2008 National Mineral Policy and the recommendations of the Hooda Committee, and now with a Group of Ministers — was aimed at doing justice to tribal people of areas where mining would be carried out, he said. Mr. Handique was responding to a supplementary question from Ashwani Kumar of the Congress about steps the government was contemplating to address the alienation of tribal people, and for their relief and rehabilitation. He said the Bill also had provisions to deal with ecological balance in mining. It would also suggest steps to help the States tackle illegal mining; to discourage and prevent sub-optimal and unscientific mining; to make the regulatory mechanism more conducive to technology and investments; and to provide security of tenure to concessionaires. Responding to questions on illegal mining by V. Hanumantha Rao of the Congress and Aziz Pasha of the CPI, especially in Bayaram in Khammam district of Andhra Pradesh, Mr. Handique said 566.90 sq km of land was reserved, and the State government sought a fresh survey. “If it [the State government] comes back with a proposal, we will examine it.” The government was examining a complaint about land allocation in the area. Mr. Handique said the proposed National Mining Regulation Authority would have the powers to inspect and detect, investigate and prosecute cases of illegal mining. The Centre would also have the power to terminate the lease, if the State government did not act; the leaseholder would also become ineligible to secure lease in future. As for iron ore exports, he said that during 2009-10, of the total production of 218 million tonnes, 91 million tonnes was consumed at home, while 117 million tonnes was exported. Nearly 75 per cent of the export variety consisted of iron fine, since the country does not have the technology to produce steel out of it. If this raw material was not exported, it would pile up, creating environmental problems.

(Source:http://www.thehindu.com/news/national/article574612.ece)

Don't clear Vedanta's mining project: panel

Joint venture in Orissa violates laws, it says

New Delhi, August 17, 2010: The Union government should not clear Vedanta's bauxite mining project in the Niyamgiri hills of Orissa as it violates the environment and forest law, according to a panel set up to investigate the proposal. “The Vedanta Company has consistently violated the Forest Conservation Act [FCA], the Forest Rights Act [FRA], the Environment Protection Act [EPA] and the Orissa Forest Act in active collusion with the State officials,” said the report of the four-member panel, headed by Planning Commission member N.C. Saxena. The report was submitted on Monday. The report also catalogued the negative impact that the mining is likely to have on the region's biodiversity and on the Dongria and Kutia Kondh tribal communities, which have economic and cultural ties to the land. “Allowing mining … by depriving two primitive tribal groups of their rights over the proposed mining site to benefit a private company would shake the faith of the tribal people in the laws of the land,” it said. On Friday, the Forest Advisory Committee will consider the report and make a final recommendation to Union Minister of State (Independent charge) for Environment and Forests Jairam Ramesh. While refusing to discuss his final decision, Mr. Ramesh noted, “as a matter of principle, it would be a tragedy in this country if you can violate a law and then there is a window available to you for a correction … to pay a penalty and go ahead.” The mine is a joint venture between Vedanta Aluminium and the Orissa Mining Company. Interestingly, the report was released on the same day when the parent company, Vedanta Resources, signed a high-profile $9.6 billion deal to control Cairn India. The violations listed by the report include illegal occupation of village forest land, violating both the FCA and the EPA, and a six-fold expansion of the nearby Vedanta refinery without the relevant environmental clearance under the EPA. Mr. Ramesh claimed that he was not aware of either the expansion or the lack of the necessary clearance until the report was handed to him on Monday — this, despite the widespread media coverage of the expansion proposal. “I found out just 10 minutes ago,” he told journalists. “If the allegations are correct, we will take action.”

(Source:http://www.hindu.com/2010/08/17/stories/2010081755720100.htm)

Vedanta mines illegal, must be shut down: Green panel

New Delhi, August 17, 2010: Mining giant Vedanta consistently violated several laws in bauxite mining at Niyamgiri, encroached upon government land, got clearances on the basis of false information and illegally built its aluminium refinery at Lanjigarh, Orissa. As the company engaged in these violations, the Orissa government colluded with it and the Centre turned a blind eye. These are some of the findings of the four-member N C Saxena committee, which on Monday recommended that the company not be allowed to mine in the hills that are the abode of the Dongaria Kondh and Kutia Kondh tribes in Orissa. The no-holds-barred indictment of the state and private sector in the $1.7billion project brings out the short shrift given to concerns about tribal rights and environmental protection. It is significant also because it underlines the changed sensibilities of the government towards the issues against the backdrop of Left-wing extremism and why Naxalites are finding it easy to influence alienated tribal belts. The stern report of the environment and forests ministry panel signalled that tribal rights and environmental isssues have finally muscled their way onto the governance agenda, forcing the authorities to take action against corporates who may have shown disregard for rules. The Saxena committee report, which could lead to shutting down of the Vedanta smelters in Orissa, comes after the MoEF moved to stop or stall several high-profile, heavy-investment projects, including the Posco Integrated Steel project in Orissa, which, at Rs 56,000 crore is the single-largest foreign direct investment in India, the Jindal thermal power plant in Chhattisgarh (Rs 10,000 crore), hydroelectric projects on Bhagirathi in Uttarakhand and the Navi Mumbai airport in Maharashtra (Rs 7,972 crore). The panel was set up by the ministry of environment and forests to investigate if the state government and the aluminium giant had complied with the Forest Rights Act and Forest Conservation Act while mining for bauxite. The report reveals exhaustive evidence to nail the complicity of the state government in permitting Vedanta to flagrantly violate the laws. But the committee, even as it recommended that the mining project be disallowed, stopped short of asking for prosecution of the officials involved in what seems to be a blatant fraud that went unchecked for years. "The question of whom to prosecute is secondary. First, we have to consider the clearance," said Union minister for environment and forests Jairam Ramesh. Asked if the violations could be set right now, the minister said, "Without prejudice to the existing case, it would be a tragedy that one violates laws and still has a window of opportunity to just pay a penalty and get away with it later." The report will now be reviewed by the statutory Forest Advisory Committee, which will then give its recommendations to the ministry to take a final call on the forest clearance. The report says, "This committee is of the firm view that allowing mining in the proposed mining lease area by depriving two primitive tribal groups of their rights over the proposed mining area in order to benefit a private company would shake the faith of tribal people in the laws of the land which may have serious consequences for the security and well-being of the entire country." The report records how the state government falsified documents and concealed information from the central government to facilitate the aluminium refinery in mining bauxite while the company encroached upon government and tribal lands with impunity. The aluminium czar Anil Aggarwal's company has illegally -- despite legal notices from the Orissa State Pollution Control Board -- begun building a refinery to produce 6 million tonnes of aluminium per annum instead of the 1 million tonnes per annum plant that it had got the green clearance for. The committee -- that included S Parasuraman, director of Tata Institute of Social Sciences; Promode Kant, retired forest official; and Amita Baviskar, professor at the Institute of Economic Growth -- pointed out how right from the beginning, the firm had furnished falsified reports to the Centre to seek clearance, and how the state officials ranging from the highest bureaucrats to the collectors of two districts either refused to enforce existing laws or simply colluded with the company to deny the tribals right over their lands.

(Source:http://timesofindia.indiatimes.com/business/india-business/Vedanta-mines-illegal-must-be-shut-down-Green-panel/articleshow/6321872.cms)

Scindia against curbs on iron ore exports

New Delhi, August 17, 2010: The commerce and industry ministry has said that it does not favour any restrictions on exports of iron ore, arguing that production was higher than domestic consumption and failure to export the mineral could lead to environmental degradation and hazards in mining areas. The statement made by minister of state for commerce and industry Jyotiraditya Scindia in reply to a Lok Sabha question will disappoint the domestic steel industry that has been lobbying for ‘preserving’ the natural resource for the industry’s future use by restricting its exports. The export of iron ore has always been an issue but the pitch has been raised after Karnataka government decided last month to ban exports and subsequently extended it to taking it outside state borders.  India produced 226 million tonne of iron ore in 2009-10, more than half of which (117 million tonne) was exported.  Karnataka produced 46 million tonnes of iron ore last fiscal, the second highest among all estates, of which it exported about 20 million tonne.  Iron ore mining companies have already taken the state government to the courts over the abrupt ban, which industry says can result in a serious credibility issue for the government if other states were to follow. In his reply, Mr Scindia justified exports saying that India was mainly shipping out iron ore fines, which is not used by domestic steel industry due to its limited sintering and pelletisation capacity. During 2008-09, iron ore fines constituted about 87% of the total iron ore exports. Any restrictions on its exports will not only harm the environment but would also affect economic activities in remove areas where handling of iron ore is the main employment generating activity, he added. Steel minister Virbhadra Singh had earlier said the UPA government had an open mind about stronger deterrence measures to discourage exports of the mineral. The government has already increased the export duty on iron ore has been revised to 10% on lumps and pellets and 5% on iron ore fines to discourage exports. Most of India’s iron ore exports is headed to China, but the demand from the country is expected to slowdown as industrial growth moderates there after government measures to cool down prices.

(Source:http://economictimes.indiatimes.com/news/economy/foreign-trade/Scindia-against-curbs-on-iron-ore-exports/articleshow/6322646.cms)

Vedanta should not be given mining approval: Govt panel

New Delhi, August 17, 2010: A government panel said on Monday UK-based mining group Vedanta should not be given permission for bauxite mining in Orissa.  "This committee is of the firm view that allowing mining in the proposed mining lease area by depriving two primitive tribal groups of their rights... in order to benefit a private company would shake the faith of the tribals in the law of the land," the N.C. Saxena Committee that was set up by India's environment ministry said.  The panel said such a move may have serious consequences for the security and the well being of the entire country."

(Source:http://economictimes.indiatimes.com/news/economy/policy/Vedanta-should-not-be-given-mining-approval-Govt-panel/articleshow/6319668.cms)

Minister for non-clearances

Mumbai, August 17, 2010: A section of industry has given him that sobriquet, but Jairam Ramesh has ensured no one ignores the environment ministry. He has been locked in a verbal duel with at least three chief ministers and four of his Cabinet colleagues: Praful Patel, Sharad Pawar, Kamal Nath and P Chidambaram. And, contrary to their public protestations, several industrialists are also upset about what they call Environment Minister Jairam Ramesh’s activist-like positions. “He is taking positions, which are normally associated with unreasonable activists and their organisations,” says one leading industrialist whose project is stuck. It’s not surprising, therefore, that in some circles, he has earned the sobriquet of ‘minister for non-clearances’.  In the last 10 days, at least two high-profile companies joined the long list of those whose mega projects have come under the ministry’s scanner. Ramesh told the Rajya Sabha earlier this month that his ministry was probing alleged violation of forest laws by Posco and Vedanta in Orissa. A four-member expert group will give its report in the first week of December. Data from the ministry’s website show that of the 58 projects that have come up for Coastal Regulation Zone clearance since April 2009, it gave only half a dozen of them the green signal. Over 1,800 projects are awaiting clearances as of the first week of this month. The Environment Impact Assessment Notification, 2006, prescribes a 105-day time limit for appraisal of projects and communicating a decision after receipt of complete information. But in the case of many projects, the delays have run several months over the stipulated time. Though the usually articulate and responsive minister did not reply to Business Standard’s queries as Parliament was in session, the environment ministry says the increased number of projects in certain sectors like power and infrastructure and submission of incomplete information by project proponents mainly caused the delay. Experts also cite several issues that go far beyond bureaucratic delays on the part of the environment ministry. For example, there are 38 tiger reserves in India covering 40,969 sq km of forest land. There are 88 identified elephant corridors — fragile narrow strips of land that allow pachyderms to move from one habitat patch to another. India has about 100 notified national parks, 355 wildlife sanctuaries, 15-plus biosphere reserves, four coral reef areas and 34 locations identified for mangrove protection. More are in the pipeline. India has 21 per cent of its geographical area under forest cover. According to the State Forest Report, 2009, in the last 10 years, forest cover in the country has increased by 3.31 million hectares, showing an average 0.46 per cent rise every year. More environment preservation projects like the one for the Western Ghats are shaping up. So, the environment ministry has no option but to say no if projects are planned within or near (around 10 km) these protected regions. Environmental activism of non-governmental organisations, local people resisting the loss of land owned for many generations, involvement of vested interests and political interference are also major issues for project developers. Then there is the Maoist/Naxalite opposition to many projects in several states. “There are people who consciously instigate and organise people in coastal Andhra against projects coming up in the region,” says a spokesperson of a power company, which is promoting a project in coastal Andhra Pradesh. “Land availability is a big issue in India. Developers can approach the ministry only after either acquiring the land or have assurances to get the land, to request for the terms of reference to carry out an Environmental Impact Assessment study. By that stage, a lot of investment and time may have gone into execution of the projects, and still you are not sure of getting the clearance,” says Sanjay Sethi, executive director (infrastructure) at Kotak Investment Banking. “It is necessary to have more transparent and clear guidelines and checklists for land available for various commercial and industrial uses, with clear maps of sensitive zones, which should be easily available to project developers,” he adds. To be fair to the environment ministry, there are issues like misrepresentation of facts by project developers and the state, or conflicting reports on issues by expert panels. In a recent development, the environmental clearances for at least four projects in an around Srikakulam in Andhra Pradesh were suspended by the ministry. On July 15, the ministry cancelled the clearance given to Nagarjuna Construction Company’s 2,640 megawatt (Mw) coal-based super critical thermal power plant at Gollagandi and Baruva villages in Srikakulam. An expert panel said most of the project land allocated by the state government might be regarded as wetland, contrary to an earlier panel report that the 750 acres of grasslands were barren and not fit for agriculture. The same expert panel, which visited East Coast Energy’s 2,640 Mw thermal project near Kakarapalli village in Srikakulam during the same time, found the state government had ignored reports on the ecological value of low lying areas of the well recognised Naupada swamps wetland and migratory bird breeding in nearby Telineelapuram of Srikakulam. “This amounts to suppression/distortion of facts,” the panel said. A nearby project — that of JSW’s 1.4 million tonnes per annum (MTPA) alumina refinery and a co-generation plant — is also being reviewed by the ministry. A panel has recommended the ministry to consider issues like depletion of water in present perennial streams feeding a reservoir in the vicinity and pollution of water sources before giving the forest clearance for bauxite mining. On June 28, the ministry directed the formation of a supervisory committee to monitor the influence of toxic effluents from JSW Energy’s 1,200 Mw thermal power plant at Jaigad in Maharashtra, following apprehensions that effluents could affect the quality of Alphonso mangoes and cashew orchards in the region. JSW Energy will have to spend ' 527 crore to set up an effluent system and if the toxins are still beyond the permissible levels, it will have to either close the plants or change the fuel. Ten days before that, Jindal Power Limited drew the wrath of the ministry for commencing construction of a 2,400 Mw power project at Tamnar in Chhattisgarh, without obtaining prior environment clearance. The ministry has directed the state government to stop work and initiate action against the Naveen Jindal-promoted company.

SWORD OF DAMOCLES: Projects put on hold
DATE	COMPANY	PROJECT	STATE
June 28	JPL power	Tamnar	Chhattisgarh
July 15	NCC	Power project	Sreekakulam, Andhra
July 15	Eastcoast Energy	2,640 Mw power project	Sreekakulam, Andhra
July 15	JSW	Alumina refinery	Sreekakulam, Andhra
July 17	Rusoabagar-Khasiyabara	Hydro	Uttarakhand
August 7	Posco	Steel mill	Orissa

Some of the other high-profile projects that have been halted include the Maheshwar Hydroelectric project on the Narmada river in Madhya Pradesh on grounds that the conditions of the statutory environmental clearance were not complied with and the resettlement and rehabilitation of the project-affected families was less than satisfactory — charges denied by the state chief minister and the company. However, it has certainly not been roses all the way for Ramesh. The government has given a go-ahead for partial work to resume on the Maheshwar dam, despite the ministry’s recommendations. Also, many say the minister has involved himself in much-publicised wars of words with Civil Aviation Minister Praful Patel over the environment ministry’s reluctance to clear the Navi Mumbai international airport, citing destruction of mangroves, razing of a hill and diversion of two rivers; with Road Transport Minister Kamal Nath, who openly accused him of blocking projects; with Agriculture Minister Sharad Pawar over Bt brinjal; and, of course,with Home Minister P Chidambaram, who was upset with his comments on how the home ministry had taken an alarmist view on China, something for which Ramesh had to apologise. But, even his sharpest critics agree on one thing: Ramesh has made sure that no one can treat the environment ministry lightly any longer. Magsaysay Award winning social activist Sandeep Pandey says earlier projects used to go on without environmental clearances or conditional clearances that were never honoured. “This is probably the first time that an environmentalist has become a minister. He is almost single-handedly bringing about a paradigm shift within the government about how to view progress and development,” says Pandey.

(Source:http://www.business-standard.com/india/news/minister-for-non-clearances/404769/)

Panel nails Vedanta lie, project hits the rock

New Delhi, August 17, 2010:

Bans mining in Kalahandi, indicts Odisha Govt too

The controversial Vedanta bauxite mining project in Niyamgiri mountains in Kalahandi district of Odisha has run into rough weather. The four-member committee constituted jointly by Ministry of Environment and Forests (MoEF) and Ministry of Tribal Affairs has categorically stated that mining cannot be allowed there. Severely indicting both the company and the State Government, the committee said, “From the very beginning, the State Administration and Vedanta Alumina had deliberately misled the MoEF....” The `4000-crore Vedanta Alumina refinery project in Lanjigarh area is awaiting green signal from the Environment Ministry for mining the mountain that has about 72 million tonnes of bauxite ores.  The committee, headed by National Advisory Council member NC Saxena, was constituted to look into the proposal submitted by the Sterlite Industries of India Limited (SIIL), a subsidiary of Vedanta, for bauxite mining.  In its 119-page report, the committee said mining there would deprive two endangered primitive tribal groups — Kutia Kondh and Dongaria Kondh — of their rights over the proposed site, which should not be sacrificed to benefit a private firm. The report lists three major objections against allowing mining rights to Vedanta. First, the report stressed that MoEF cannot clear forest land for non-forest purposes because the legal conditions for this clearance as laid down by its circular of August 3, 2009, have not yet been met. Second, it pointed out that the process of recognition of rights under the Forest Rights Act has not been completed.  And third, it said the consent of the community concerned has neither been sought nor obtained and the gram sabhas of the area concerned (hamlets in a Scheduled Area) have not certified on both these points as required.  In a serious indictment of Vedanta and the State Government, the panel said the company had been earlier accorded clearance under the Environmental Protection Act by “falsifying and concealing information about the nature/designation of land acquired for the purpose of its construction”.  “From the beginning, the State Administration and Vedanta Alumina knew that large tracts of forest land were required for the refinery as well as for mining. However, they deliberately misled the MoEF on this point,” the report said. Stating Rule 4 of the Ministry of Environment and Forests, the report notes that the rule states that “concealing factual data or submission of false, misleading data/reports, decisions or recommendations would lead to the project being rejected. Approval, if granted earlier on the basis of false data, would also be revoked”. “The company has consistently violated the FCA, FRA, EPA and the Orissa Forest Act in active collusion with State officials,” the report pointed out. Perhaps the most blatant example of this is their “act of illegally enclosing and occupying at least 26.123 ha of village forest land within its refinery, depriving tribal, dalits and other rural poor of their rights,” the report said. The committee made it clear that the proposed area is intimately linked, by way of economic, religious and cultural ties, to 28 Kondh villages with a total population of 5,148 persons. The affected include about 1,453 Dongaria Kondh, which constitutes 20 per cent of the tribe’s total population. If the economic, social and cultural life of one-fifth of the Dongaria Kondh population is directly affected by the mining, it will threaten the well-being of the entire community.Since the Dongaria and Kutia Kondh are heavily dependent on forest produce for their livelihood, this forest cover loss will cause a significant decline in their economic well-being. Landless dalits who live in these villages and are dependent upon the Kondh will also be similarly affected.  Further, more than 7 square km of the sacred undisturbed forest land on top of the mountain has been protected for ages by the Dongaria Kondh as sacred. The primitive tribals are devoted to their deity, Niyam Raja, and feel that the land is essential for the region’s fertility. The report said if the mining lease was approved, the area would be stripped off its vegetation, soil and would be rendered into a vast barren tract of exposed land. Mining will also build roads through the Dongarias’ territories, opening the area to outsiders, a trend that is already threatening the rich biodiversity of the hills. It further clarified that the mining at the proposed lease site will provide only 3 Mtpa of ore out of the total annual requirement of 18 Mtpa of the refinery after its ongoing expansion from the existing capacity of 1 Mtpa to 6 Mtpa (for which they have already nearly completed the work even before getting permission). The proposed mining site thus has low relevance to the future of the refinery and is not critical at all for its functioning as is being claimed by the company and the State officials.  SIIL (Vedanta Resources) had signed a Memorandum of Understanding with the State Government in 2003, for construction of a refinery for aluminum production, a power plant and related mining development at Lanjigarh in Kalahandi district.

(Source:http://www.dailypioneer.com/276646/Panel-nails-Vedanta-lie-project-hits-the-rock.html)

Government warns small scale miners on illegal mining

...Assures of support for genuine miners, August 16, 2010:Artisans and small scale businesses engaged in illegal mining in the country are to face stiffer punishment, the Federal Government has warned. Musa Muhammed Sada, minister of mines and steel development, stated recently that: “It is a unique sector; moreover, because of our concern for the environment, we want to ensure that mining operators engage in meaningful businesses to create more economic line for citizens in the country and diversify from oil sector.” This is part of government’s plans to achieve poverty reduction, provide alternative means of livelihood, wealth creation in rural communities and production of critical industrial minerals expected to stimulate import substitution.  According to the minister, government has come up with programmes and facilities and created an environment conducive to cater for genuine miners. Genuine artisan and small scale miners can provide the most sustainable income for many less privileged Nigerians in remote communities, and can employ more than two million people, a figure expected to triple in the next 10 years. Sada however regretted that the sector was characterised by intensive direct labour, poor technology, inadequate infrastructure and low productivity, lack of capital, child labour and poor health conditions, which often led to the sterilisation of good deposits. Also noticeable is poor environmental management and very hazardous working conditions. Other targets are sustainable management of mineral resources and meeting the millennium development goals. “The development will contribute to the nation’s drive towards poverty reduction and rural economic transformation, and fast track government development plan for the country,” he noted. Adequate provisions had also been made in the Nigerian Minerals and Mining Act 2007 to guide and promote small scale mining activities. Artisans and small scale mining constitute one of the oldest economic activities in the country but has over the years suffered a downturn after the discovery of oil and the crash of commodity prices in the 1980s.

(Source:http://www.businessdayonline.com/index.php?option=com_content&view=article&id=13711:

government-warns-small-scale-miners-on-illegal-mining-&catid=81:entrepreneur&Itemid=323)

No mining in Niyamgiri Hills without 100 per cent clearance: Vedanta

New Delhi, August 16, 2010: Vedanta Resources chairman Anil Agarwal on Monday said the group will "abide by law" and will only start mining bauxite from the Niyamgiri hills in Orissa after securing clearances from the Centre.  "We are law-abiding people. We will not start mining at all until and unless we get 100 per cent clearance from the authorities concerned," Agarwal said in an interview. The group has proposed an estimated Rs 50,000 crore investment in the state.  The statement follows a government panel's report to Environment Minister Jairam Ramesh disfavouring the grant of permission to the private company to mine bauxite in the region.  "We have to keep patience in India... We are cooperating 100 per cent in all their (government) queries," Agarwal said.  In its report to Ramesh, the four-member NC Saxena Committee said, "This committee is of the firm view that allowing mining in the proposed mining lease (PML) area by depriving two primitive tribal groups of their rights... in order to benefit a private company would shake the faith of the tribals in the law of the land."  The committee was constituted by the Ministry of Environment and Forests to study the impact of the project on the local population. The proposed mining project awaits final clearance from the Environment Ministry.  Ramesh, after receiving the report, told reporters here that a final decision on the matter will be taken after the Forest Advisory Council (FAC) takes a view on the committee's findings on August 20.  The Vedanta Group firm has entered into an agreement with state-owned Orissa Mining Corporation for mining bauxite in Niyamgiri hills, which is venerable to the local tribal population. As per the agreement, OMC will mine bauxite and give it to the Vedanta Group firm for feeding its alumina refinery at Lanjigarh, which is being expanded at a cost of about Rs 6,000 crore.  In 2008, a green bench of the Supreme Court had given a conditional nod for Vedanta's mining project in the forest- rich belt of Orissa, which is inhabited by the endangered Dongria Kondh tribe.

(Source: http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/No-mining-in-Niyamgiri-Hills-without-100-per-cent-clearance-Vedanta/articleshow/6320737.cms)

Govt sets up commission in a bid to check illegal mining

New Delhi, August 16, 2010: The Union government on Monday cleared a proposal for setting up a commission in an effort to check illegal mining and it has been asked to submit its report within 18 months, according to official sources. The decision follows several meetings that the Prime Minister’s Office (PMO) has held with senior Mines Ministry officials to ensure that illegal mining is checked across the country. The commission has been asked to submit its report within 18 months after monitoring the progress of State governments like Karnataka in checking the menace, the sources said. “The Union Cabinet today approved proposal for setting up a commission to check illegal mining in the country. The commission will focus on alleged illegal mining in Karnataka and other mineral producing States,” said a source. Of late, the issue of illegal mining has been in the limelight, especially in the mineral rich States like Karnataka, Orissa and Jharkhand. The concerns over the issue has gained further ground after the Reddy brothers, Karunakar and Janardhan Reddy, Ministers in the Karnataka government have been allegedly found to be involved in illegal mining. The Union Mines Minister B.K. Handique has written to Karnataka Chief Minister B.S. Yeddyurappa on four occasions since November 2009, extending help to central agencies like CBI to curb illegal mining. The central government is preparing a new Mines Act which has a separate section that seeks to put an end to illegal mining.

(Source:http://www.thehindu.com/news/national/article574040.ece)

Tribals to get 26% share from mining profits

New Delhi, August 16, 2010:  The government on Monday gave an assurance in the Rajya Sabha that tribals would be given 26 per cent share from mining profits and full justice would be done to them if mining activities take place in their area. A GoM has been constituted in June for considering the draft Mines and Minerals Bill, 2010, mines minister B.K. Handique said during Question Hour. He said the bill would ensure that issues relating to ecological balance are kept in mind while carrying out mining activities, mainly in tribal areas. "Justice would be done to tribal population, though the matter is still with the GoM. Tribals would be given share from mining profits. We have earmarked 26 per cent share from mining profits for them," the minister said. He said the draft bill has been prepared on the basis of policy directions in the National Mineral Policy, 2008, and Hoda Committee recommendations after consultations with the stakeholders. Major issues laid down in the policy include making the regulatory mechanism more conducive to technology and investment flows, ensuring transparency in the concession process, and strengthening the role of Geological Survey of India and Indian Bureau of Mines.

(Source:http://www.asianage.com/business/tribals-get-26-share-mining-profits-176)

Eco-clearance come in too fast

Bangalore, August 16, 2010: When it comes to the Bellary mines, official callousness and negligence is evident time and again. This time round, it is environmental clearances for mines - they have been coming in too fast with utter disregard to the carrying capacity of the mines. In case of Bellary environmental-clearance means having the liberty to pollute. All infamous illegal mines in Karnataka that could shake the seat of power, have time and again received environment clearance from the ministry of environment and forests (MoEF). But hardly any have been monitored on a regular basis. More than 100 mines in Bellary were given environmental clearance (EC) from 1993 to 2010. A document available with TOI on environment clearances given to mines shows two of these were cleared in 1993, one mine each was cleared in 1994, 1995 and 1997, two mines per year were cleared between 2001 and 2004. But in 2005, as many as 31 mining projects were cleared by the MoEF. In 2006, 35 projects were cleared, 14 projects in 2007, 11 projects in 2008, six in 2009 and just one in 2010. The total ore being extracted is 45 to 50 million tonne per year, but no assessment was ever done of the carrying capacity!

What is carrying capacity?

"If extraction is way beyond the carrying capacity, then obviously the environment will be affected. However, environment clearances were given one after the other mindlessly. As the price of ore increased, applications for mines started multiplying. But no bar was put on clearances or export of ore," said a senior department official. Supporting infrastructure, like roads, was also not considered. Roads have to be suitable to transport humungous quantities of ore through villages and habitations.

No regular monitoring

A skeletal staff of four environmental scientists at the Bangalore MoEF regional office monitor four southern states, with about 1,500 projects. Every officer monitors at least 50 to 60 projects per year. While officers at the regional office say they hardly have the infrastructure to keep a stringent eye, the Karnataka State Pollution Control Board has been equally lenient in giving consent. "All the mines operating in Bellary have received environmental clearance and our consent for operation," says KSPCBchairman A Sadashivaiah. The district KSPCB offices are supposed to monitor the ambient air and water quality regularly, but don't have the infrastructure to apportion the readings. "Monitoring was done regularly but measuring general ambient air quality is not enough. Respiratory Suspended Particulate Matter (RSPM) was found above normal in many places. But you cannot pinpoint one mine and say it is polluting. Same with water pollution. So we have to apportion and then study each mine. We are planning to individually measure air and water quality status," Sadashivaiah said.

Easy clearance

Not just monitoring, the whole process of receiving environmental clearance, submission of environment impact assessment (EIA) reports and then complying with them is diluted. "We sometimes don't even get the EIA copies. They are sent to Delhi. So though the projects are located here, we do not have any control over clearances," an officer at the regional MoEF office added. Facts in the EIAs prepared by private environment consultants are again questionable. For instance, an EIA report of Aarpee Iron Ore mine in Hospet, Bellary, accessed by TOI, quotes: "There shall not be any hazards due to gaseous pollutants like SO2, Nox and CO. Also, liquid discharges do not have any carcinogenic parameters. The gaseous pollutant levels are much below permissible limits." The EIAs are full of such sweeping statements that don't document the real threats.

People speak

Those who have seen Bellary transform in a span of five to six years say there was hardly any monitoring from any government department. According to Ravi Rebbapragada, chairperson of Mines, Minerals and People, the EIA system is too weak to check illegal mining. "EIAs are readily available with consultants, there is misrepresentation of facts and false information about the region. Same is the case with mining leases. They were given in huge numbers without considering the capacity of the region. A heritage site like Hampi is close by and vulnerable to blasting in the mines. Needless to say, the air and water quality are beyond repair," he said.  The extraction cost of a tonne of iron ore is between Rs 560 and Rs 580, but is priced at Rs 3,000 to Rs 10,000, which has led even farmers to join this business.  "Not a single environment regulation has been followed. Once the export of ore was opened up, no one cared for the environment. For all diversions or violations, they had two options -- compensatory afforestation or paid compensatory afforestation. Most miners chose the latter. Bellary today has the highest incidence of HIV and cancer," says advocate B T Venkatesh, who has been studying legal and environmental issues of the Bellary mines.  

(Source:http://timesofindia.indiatimes.com/city/bangalore/Eco-clearance-come-in-too-fast/articleshow/6316478.cms)

Centre's new mine categorisation may hit CIL’s divestment

New Delhi, August 16, 2010: The government’s decision to divide coal-bearing regions of the country into two categories, one available for mining and the other strictly prohibited, could hurt the prospects of disinvestment in Coal India slated for October this year. The state-owned coal miner has listed the proposal to classify coal regions as ‘go’ or ‘no go’ areas as one of the internal risk factors in its draft prospectus that could make investors wary and also depress valuations. “If we are unable to produce coal from such designated areas, estimates of our reserves could be adversely affected,” Coal India said in its draft red herring prospectus, adding that the policy could also affect its future plans.  A joint study of the nine major coal-mining areas of the country by the coal and environment ministries had concluded that about 48% of the area under the study (primarily in central and eastern India) was not viable for mining activities and fell in category A or `no go' areas barred for mining.  Several existing and upcoming coal-mining operations including captive mines of the two ultra-mega power projects in Orissa and Chhattisgarh that will come up for bidding soon, also find themselves in the barred area. If strictly implemented, the proposed categorisation by the environment ministry would impact several upcoming coal mining projects of CIL with potential output of 200-300 million tonne annually in the long run.  “The new categorisation of ‘go’ and ‘no go’ areas will seriously impact our operations,” CIL chairman Partha S Bhattacharyya had told ET earlier. The demarcation of coal-bearing areas and its impact on the CIL public offer was recently discussed at a high level meeting chaired by finance minister Pranab Mukherjee and attended by coal minister Sriprakash Jaiswal and environment and forest minister Jairam Ramesh.  The government is banking heavily on its 10% stake sale in the state-owned miner to meet the `40,000 crore target from disinvestment proceeds in 2010-11. The `14,000 crore issue is expected to open between October 18 and 21 this year.  Merchant bankers for the issue are also understood to have pointed out that if the government does not take a decision on the matter, it would have to be mentioned in the draft prospectus, though they were not too concerned. “This is a standard procedure. It is the job of the merchant bankers to highlight the risks. But Coal India is an inherently strong company and it should fare well,” said a merchant banker involved in the CIL offer. Even the analysts are also upbeat about the Coal India issue. “This is just one of the probable risks. There is a big shortage of coal as well as a number of power projects are coming up. We believe CIL’s prospects are good,” said Kishor P Ostwal, CMD, CNI Research. But the government is keen to find a solution well before CIL’s market offer with an inter-ministerial group looking into the issue. “There is some concern over the issue. But we are confident that Coal India is a strong company and its IPO will be successful,” said a senior finance ministry official. “Policy on the matter will be finalised after further mapping of forest and coal reserves as well as field-level studies,” an official of the coal ministry said asking not to be named. The official added that the current study on nine coal fields to decide these zones (‘go’ and ‘no go’ areas) was just indicative.  Minister of state for coal Sriprakash Jaiswal had recently informed the Lok Sabha that 63 projects of Coal India were awaiting environmental clearance at different levels. “The production from projects awaiting forestry clearance is about 181.8 million tonne and from projects awaiting environment clearance is 135 million tonne in 2011-12,” he had informed.

(Source:http://economictimes.indiatimes.com/news/economy/finance/Centres-new-mine-categorisation-may-hit-CILs-divestment/articleshow/6316885.cms)

Tata Steel gets clearance to explore Ankua mine

Mumbai, August 15, 2010: After waiting for over a year, Tata Steel has finally been given the working permission for an iron-ore mine in Ankua, Jharkhand, group chief financial officer Koushik Chatterjee said. The total area of the mine is 1800 hectares and it is said to be holding about 400 million tonne of iron-ore. Tata Steel said that it had received prospecting licence from the central government last year, but to begin exploration work, it needed the state government’s working permission, which it has received now. Essar Steel and JSW Steel also have prospecting licences for iron-ore mines in the Ankua region. They have been given licences for 547 hectares and 1,388 hectares of mines, respectively. Tata Steel is expanding steelmaking capacity at its flagship Jamshedpur facility to 10 million tonne by next year and is looking to source iron ore from the Ankua mine. Post prospecting, Tata Steel will apply for a mining lease licence, after which the company would be able to mine iron ore from the region and feed it to its blast furnaces. Tata Steel sources all its iron ore requirements from its captive iron ore mines and this will be another addition to its raw material security. In the quarter ended June 30, 2010, Tata Steel India posted earnings before interest, taxes, depreciation and amortisation (Ebitda) of $638 per tonne, thanks largely to its captive raw material resources.  In comparison, Tata Steel Europe posted an Ebitda of $293 per tonne as the company has absolute no captive raw material resources. Asked about the vast difference in Ebitda between Tata Steel India and Europe, Kirby Adams, the soon-to-leave managing director and CEO of Tata Steel Europe, said, “The difference is due to the captive raw material including iron ore that the Indian company is blessed with.”

(Source:http://www.dnaindia.com/money/report_tata-steel-gets-clearance-to-explore-ankua-mine_1423949)

'No new mining licences issued'

Bangalore, August 15, 2010: Facing heat from Congress over the illegal mining issue, Karnataka Chief Minister BS Yeddyurappa on Sunday asserted that no new mining licences had been granted by the BJP government after coming to power. "After coming to power, we neither gave new mining licences nor renewed them without value addition. Mining is going on with licences issued by previous governments. As per the new mining policy, there is provision only for value addition and no provision to export the ore," he said after unfurling the tricolour on the 64th Independence Day. Orders prohibiting iron export from 10 ports was a "revolutionary" step taken by his government to curb illegal mining and export of iron ore, the chief minister said. On the border row between Maharashtra and Karnataka over Belgaum, he said the city is an "integral part of Karnataka" and that the government would not allow Maharashtra Ekikaran Samiti to create "unnecessary confusion and disturbances" on the matter. Stating that mining cannot be completely stopped, he said it should be restricted by limited supply to local industry and ensuring there was no negative environmental impact. Yeddyurappa said the new mining policy had resulted in steel giants like the Arcelor Mittal and Posco coming forward to establishing industries in the state. Calling for steps to eradicate terrorism and Naxalism, he appealed to the people to stand united to face challenges posed to unity and sovereignty of the nation. He said his government had also empowered Lokayukta by vesting it with suo moto powers to investigate higher officers up to Chief Secretary rank and appointed an Upalokayukta. Holding successive governments after the 1970s responsible for the power crisis, Yeddyurappa said the state has targeted a minimum of 5000 MW generating capacity in the 11th five year plan. "Accordingly, we have given approval for implementation of power projects of about 16,000 MW capacity," he said. About metro rail service in Bangalore, he said it would become operational by the year end. Rs 600 crore has been earmarked for the first stage of the project and 75 per cent of the work had been completed, he added.

(Source:http://www.hindustantimes.com/No-new-mining-licences-issued/Article1-587235.aspx)

Maoists set on fire iron ore laden trucks in Chhattisgarh

August 15, 2010: Police said that around 60 armed maoists set on fire at least six trucks loaded with iron ore for Essar Steel in Chhattisgarh violence-hit Dantewada district early Saturday. 'Maoists came out of forests around midnight and stopped six trucks between Bhansi and Bacheli and set them on fire,'  Mr SRP Kalluri Dantewada senior superintendent of police told IANS that the attack site is located some 420 km south of capital Raipur and within 2 km from Bacheli, a major iron ore mining facility of India's top iron ore producer in public sector NMDC Ltd. Mr Kalluri said that “The trucks that were burnt belonged to private contractors. The trucks were carrying iron ore for Essar Steel. The road was opened for vehicular traffic around 6 AM. The overnight act of Maoists was a planned move to terrorize people in Bastar ahead of Independence Day celebrations.” The guerrillas announced a call to boycott Sunday's Independence Day function. They felled trees on the hilly road to prevent security forces from reaching the site.

(Source:http://www.steelguru.com/raw_material_news/Maoists_set_on_fire_iron_ore_laden_trucks_in_Chhattisgarh/160455.html)

CIL expects favourable outcome from MoEF: Jaiswal

Kolkata, August 14, 2010: Coal minister Sriprakash Jaiswal today said that Coal India Ltd (CIL) is expecting a favourable response from the Union Ministry of Environment and Forests about securing permission for coal mining in forest areas. "I do not think there will be much hurdle from the Environment Ministry after the Prime Minister had intervened," Jaiswal told reporters on the sidelines of Coal Consumers' Association of India's event here. "Not more than 10-15 per cent of coal blocks will be in the 'no-go areas' after a solution is arrived at with MoEF," he said.  In other words, CIL is expecting release of 85-90 per cent of the prospective coal blocks in forest areas, which were announced as strict no mining zones or 'no go' areas by the MoEF. An outcome is expected by this month end and the final decision has direct bearing on the forthcoming CIL IPO valuation, as huge coal reserves are in the forest land. CIL Chairman P S Bhattacharyya had said last month about having forwarded a proposal to the MoEF in which the coal major will help in increasing green cover in forest areas. Jaiswal said non-clearance by the MoEF will lead to a reduction of coal production by 40 million tonnes in the terminal year of 11th plan period (2011-12). The CIL 2010-11 import target will be 8 million tonnes out of which 4.5 million tonnes has already been imported. The total production will be 460.5 million tonnes for the current fiscal as against 431 million in the previous year. Last month, after PMO's intervention, a government panel had recommended mining in 77 blocks to be taken off from no mining zones. 'Go areas' are the designated zones in forest areas where coal mining is allowed in case they meet the environment clearance.

(http://www.business-standard.com/india/news/cil-expects-favourable-outcomemoef-jaiswal/105119/on)

Coal blocks to private firms through auction; Bill moved in RS

New Delhi, August 14, 2010: The government today moved a bill in the Rajya Sabha, which provides for allocation of coal blocks through auction to private companies replacing allocation by a government screening panel. Moving the Mines and Minerals (Development and Regulation) Amendment Bill, 2008, Mines Minister B K Handique said the present system of allocating coal blocks through a screening committee "is vulnerable to criticism on the ground of lack of transparency and objectivity." Presently, an inter-ministerial screening committee, which includes representatives from concerned state governments, allocates coal blocks to private firms engaged in generation of power, production of iron and steel and some coal washeries.  However, competitive bidding route will not be applicable to the blocks given to the state or central government owned companies. Participating in the debate, trade union leader R C Singh (CPI) said private sector companies are already sitting on 138 blocks of coal without starting any operation. Several companies, which have no links with power or steel sector have also been given the blocks, he said, and complained that "people making Zandu balm and Chyawanprash have got coal blocks." Singh said the companies, which will bag the coal leases through auction, would not go in for deep mining and instead engage in the open cast mining, endangering environment and forests. Quoting Environment Minister Jairam Ramesh, Singh said companies like Vedanta Resources have already violated forest rules. S S Ahluwalia (BJP) said several companies without power plants were born overnight seeking coal block allocation.

(Source:http://www.business-standard.com/india/news/coal-blocks-to-private-firms-through-auction-bill-moved-in-rs/105072/on)

Govt seeks feedback to identify sensitive areas in W Ghats

New Delhi, August 14, 2010: Seeking public participation in restoration of pristine vegetation in Western Ghats, the Government has invited feedback from citizens to help it identify "ecologically sensitive areas" in the fragile region. The move primarily aims at starting a public debate before the government takes any final decision on demarcating areas within the region that will be notified as ecologically sensitive zones and protect the biodiversity hot-spot's current ecological status.  "Public opinion has been invited as to what areas in the Western Ghats should be identified as being 'Ecologically Sensitive Areas', why they feel so, and what set of regulations tailored to the needs of the locality should be put in place if the area were to be formally declared as being ecologically sensitive," a senior environment official said. Set up by Environment Minister Jairam Ramesh in March, the Western Ghats Ecology Expert Panel led by ecologist Madhav Gadgil is already working towards this direction by compiling all details regarding the region and preparing maps of levels of ecological sensitivity on the Western Ghats tract. The region is facing ecological and environmental problems due to increasing pressure of population, industrial, mining, and infrastructural activities (roads, railways), mono culture plantations besides felling of trees and encroachments. It is estimated that the Western Ghats, spread across six states of Kerala, Tamil Nadu, Karnataka, Goa, Maharashtra and Gujarat, neutralise 4 million tonnes of carbon equivalent to 14 million tonnes of carbon dioxide annually.

(Source:http://www.hindustantimes.com/Govt-seeks-feedback-to-identify-sensitive-areas-in-W-Ghats/Article1-586179.aspx)

Three illegal coal miners die in Jharkhand

Ranchi, August 13, 2010: Three illegal miners in Jharkhand's coal city of Dhanbad died when the roof of a closed mine they were working in caved in. More casualties are expected, police said on Friday. According to the police, seven to eight people were working in the closed Munidih coal mine of Dhanbad district, some 240  km from Ranchi on Thursday night, when the roof of the mine caved in, trapping all of them.  All the men are suspected to have died. Villagers recovered one body Thursday night while two more bodies were recovered Friday morning.  The mine belongs to Bharat Coking Coal Limited (BCCL).  More than 350 people have lost their lives in illegal coal mining in what is now Jharkhand in the last 15 years.  When Shibu Soren was the union coal minister in 2004, he had planned to legalise mining in closed mines but this did not materialise. If legalised, it would improve the conditions of illegal miners and they would be entitled for compensation in case of accidents.

(Source:http://www.hindustantimes.com/Three-illegal-coal-miners-die-in-Jharkhand/Article1-586119.aspx)

Govt nod for CBI probe into illegal iron ore mining

Ranchi, August 13, 2010: The state government has given green signal to Central Bureau of Investigation (CBI) to probe illegal iron ore mining in the state which helped former chief Madhu Koda and his aides to amass property worth over Rs 4,000 crore by patronizing illegal activities. Sources said the investigating agency on the request of state government has decided to take over the case. The state government has written to Union home ministry during the President's rule in 2009 to handover the case of illegal mining to the CBI. As the state is under President's rule, governor MOH Farook approved the proposal of the CBI to hand over the cases of illegal mining to the agency for investigation. The state government on request of CBI even instituted a fresh case in West Singhbhum district. Joint raids at over 70 places across the country last year by income tax and enforcement directorate had unearthed property and investments worth over Rs 4,000 crore belonging to Koda and his aides. Principal Secretary to Governor Sudhir Tripathy confirmed the development. There was a request from the CBI to take over all the pending cases of illegal iron ore mining in the state. "Based on request of the CBI, a fresh case was also instituted in West Singhbhum and the report was put up before the governor by home department and it was approved by him a couple of days back," said Tripathy. Sources in West Singhbhum district administration revealed that in the last few months around a dozen cases of illegal mining have been lodged with different police stations. A number of companies are involved in illegal iron ore mining in the district and they do not even have license. The activity is flourishing since Koda's time and has involvement of a large number of government officials from mining, forest and transport department, said an official. In many cases it was found that companies involved in illegal mining used fake permit or permit of some other company. Fake permits were even used to transport iron ore through railway. West Singhbhum deputy commissioner K Srinivasan said in the recent past two major cases of illegal mining and export have been lodged in the district. The cases are against big companies involved in mining and those who use railways to transport the ore. "Apart from this we have lodged over 20 cases against iron ore traders and owner of crusher units to put a check on illegal mining," said Srinivasan adding the district administration is slowly tightening its noose and it is expected that things will improve in the days to come.

(Source:http://timesofindia.indiatimes.com/city/ranchi/Govt-nod-for-CBI-probe-into-illegal-iron-ore-mining/articleshow/6295444.cms)

Karnataka, Andhra begin survey of mining areas

Bellary, August 13, 2010: Officials of mines and geology and forests departments of Karnataka and Andhra Pradesh today launched a joint survey of mining areas along borders of both states under a central directive in the wake of allegations of illegal mining. The three-day survey is on in consonance with a directive by the Union Ministry of Forest and Environment and is being undertaken on the basis of a map of 1896 of the states (under the then Madras province) to determine the borders between them, official sources said. Karnataka Additional Chief Conservator of Forests Deepak Sharma, Survey Institute of Mysore Technical Officer Krishna Murthy, Land Survey official of Anantapur district in Andhra Pradesh are undertaking the survey, sources said. The survey is being carried out in the wake of allegations that some mining firms, including Obulapuram Mining Corporation (OMC) owned by Karnataka Tourism Minister G Janardhana Reddy and his family have altered border posts and are engaged in illegal mining in forest areas.

(Source:http://ibnlive.in.com/generalnewsfeed/news/karnataka-andhra-begin-survey-of-mining-areas/225729.html)

Industry opposes GoM decision on mining stake

New Delhi, August 13, 2010: The industry believes that the regulations will be a severe setback, and promoters will not accept the terms. The recommendations of a Group of Ministers asking mining companies to either share 26 per cent equity or profits (after tax) with the locals and tribals, has sent ripples through boardrooms. The equity sharing proviso, which had already been opposed fiercely by the industry, especially chamber Ficci, had prompted the Centre to consider scrapping it. Now, land rights groups are asking how the recommendations could possibly be rolled out and the industry believes that the regulations will be a severe setback. “It will break the back of the mining industry. Neither 26 per cent profit after tax nor 26 per cent equity is acceptable,” said Siddharth Rungta, chairman, FICCI Steel Committee. Rungta said an additional 10 to 15 per cent royalty on every tonne of mineral should be levied and that money should be used for local development through a committee or a Special Purpose Vehicle (SPV) with representations from all sides. Ashok Kajaria, president PHD Chamber has another solution: Deduct all expenses incurred with regard to mining and developing mines, including royalty and lease payment to authorities, while calculating profit. But as an afterthought he agrees with Rungta, “The easy way would be to go for an increase in royalty credits.” Secretary general of Federation of Indian Minerals Industry (FIMI), R K Sharma explained why he is opposed to the proposal. “The suggestion for a 26 per cent equity from the promoter’s quota is not possible because it would be difficult for the promoter to earmark the 26 per cent.” “After giving away 26 per cent shares, what will remain to ensure a majority shareholding of the promoter? Just 25 per cent. The 26 per cent will over-ride the promoter and these shareholders could take decisions that are not necessarily in the company’s interest. No promoter will ever accept this,” said Sharma. FIMI is concerned about the sinister side of the move. According to the Companies Act, 1956, special resolutions can be blocked by the owner of 26 per cent or more equity shares. “Sharing the value of the company is a good concept. We are doing it ourselves, but in the context of the proposed amendment, it has to be seen how the profits can be shared,” said Seshagiri Rao, joint managing director and group chief financial officer, JSW Steel. The resistance of India Inc to the proposal is palpable. By contrast, the civil society is cheering the fact that for the first time, rights of the land owners over mineral resources are being spelt out. But NGOs feel unlettered tribals might be short-changed again because of their unfamiliarity with board-room rules. Chandra Bhooshan of the Centre for Science and Environment said it is a great beginning but feels that stock options are not desirable as these would not guarantee annual returns to land losers. “In Indian, dividends mean little. Hence there should be a formula which ensures that land-losers get steady returns every year, whatever the market trend of the mineral. It could be 26 per cent of profits of the mining company or a part, say 10 per cent, of the turnover,” he said. Bhooshan compares it to an existing practice by the government of Alaska where annual payouts are made to households from revenues earned from oil exploration. This is, however, quite different from what the Act proposes to do. South Africa has put on its statute books a 26 per cent black ownership target for mining companies. This was done six years ago as part of a charter that required companies to sell 15 per cent of their assets to black investors by the end of 2009 and 26 per cent by 2014. At the end of 2014, black investors will be given full shareholder rights in all transactions, with deals taking place within agreed timeframes and incorporating the “prevailing market conditions”. Mining companies must ensure that at least 40 per cent of their board, executive committee, middle and junior management levels are occupied by previously disadvantaged people by 2014. In addition, firms will be required to increase their spending on training to 5 per cent of their annual payroll, representing a sizeable rise from the previous target of 3 per cent. However, Indian analysts said that is not the ideal model because afflauent blacks have done better out of the law than the poor blacks who were the original owners of the land on which mining was done. Sridhar of Mines, Minerals and People, which was consulted by the government on the MMDR, said, “Whatever the benefit sharing formula, there must be some element that would help individual land-losers gain from the land leased for mining.” However he is upbeat about the proposals. “Why not give shares to the villagers? You can track the shares if you have one of the villagers as a director in the board.” He is dismissive about SPV saying that the model was tried in the Sterlite case and the board was packed with representatives from the government. “The community ultimately got nothing.” Xaviur Dius of Birsa Mines Monitoring Centre of Jharkhand, said strong oversight is needed to ensure tribals get their due. “Who will ensure that tribals are not being cheated?” Dius felt that the new law could have the effect of easing transfer of tribal lands to non tribals in Schedule V areas. Government can take special administrative measures in variance to general laws elsewhere in areas declared scheduled under Schedule V of the Constitution to protect tribal rights. Areas declared under Schedule V have special regulations to protect tribal rights. Similar rights are bestowed on scheduled areas in the North Eastern states under Schedule VI. These include prohibition of transfer of tribal land besides many other provisions to protect tribal interests. The Government is hoping to push the Bill in the ongoing monsoon session of the Parliament.

(Source:http://www.business-standard.com/india/news/industry-opposes-gom-decisionmining-stake/404439/)

GoM to discuss illegal mining, iron ore export ban

New Delhi, August 12, 2010: A Group of Ministers (GoM) will discuss on Thursday issues pertaining to illegal mining, a ban on iron ore exports, the new mining legislation and setting aside a share in the profits of mining companies for the development of tribal areas. Officials of the Ministry of Mines said Minister B.K. Handique was pushing for the Ministry's proposal to make mining companies in tribal areas shell out a part of their equity, and other operators a part of their profits for those affected. The 10-member GoM, led by Finance Minister Pranab Mukherjee, will discuss the Mines and Minerals (Development and Regulation) Act, aimed at attracting domestic and foreign investment in mining and making the grant of mining concessions transparent and expeditious. It will also go into illegal mining and strengthening of the provisions in the legislation. The divergent views of the Ministry of Steel and the Ministry of Mines over a ban on iron ore exports too will be discussed. Officials said the aim of making the companies set aside a part of their equity or profits was to ensure development of these tribal areas through a corpus fund. This money could be placed at the disposal of the local administration for the welfare of the people. This, the government reckoned, would help to contain the rising protests against mining in tribal areas. The Federation of Indian Chambers of Commerce and Industry (FICCI) is up against these provisions. It has even written to the Prime Minister. It argues that companies sharing profits with the affected people will amount to people earning money without any effort, and this will lead to greater inequalities and socio-economic problems, besides making mining unviable. Besides Messrs Mukherjee and Handique, the GoM comprises Home Minister, P. Chidambaram; Steel Minister Virbhadra Singh; Law and Justice Minister Veerappa Moily; Environment Minister Jairam Ramesh; Commerce and Industry Minister Anand Sharma; Tribal Affairs Minister Kantilal Bhuria; and Coal Minister Sriprakash Jaiswal; and Planning Commission Deputy Chairman Montek Singh Ahluwalia. After the deliberations, the Bill will be sent to the Union Cabinet for approval before it is introduced in Parliament.

(Source:http://www.hindu.com/2010/08/12/stories/2010081257171300.htm)

Mine-rich Jharkhand plagued by corruption, Naxalism

Ranchi, August 12, 2010: Last week top officials of the Jharkhand government tried to convince tribals just outside Ranchi to surrender land for an Indian Institute of Management campus. The yet-to-be-built IIM campus is a showcase project for the state government, which is also developing a circular road around the capital city to link with the campus. State chief secretary AK Singh said he would offer sweeteners like a non-skilled jobs in the campus for those displaced. “It is the same model used for projects like Bokaro steel plant under SAIL and Heavy Engineering Corporation in the 1960s,” says Dni Barla, convenor of a tribal group—resisting land acquisition for a 12 million tonne steel plant by the Arcelor Mittal group in the state. The IIM project has gathered pace but from the time state was carved out in 2000, it has not added any Industrial Training Institutes(ITI), which are the best means to generate skilled employment for its largely tribal population. Principal secretary (labour) in Jharkhand government, Vishnu Kumar told FE he intends to float expression of interest in August to invite big industrial units and NGOs to start ITIs in the state. As per Central government data the number of ITIs and tool rooms in the state is just 101, compared with 653 in Andhra Pradesh and even neighbouring Orissa which has 521. Instead of these projects, many of the top state politicians and senior officials have spent time fighting court battles to stay out of jail on corruption charges. This has created a fertile ground for the naxalites to step in brazenly. Driving down the most important highway of the state between Ranchi and Jamshedpur, officials warned us to avoid night travel. Airline passengers from the last flight from Kolkata have to often cool their heels in Ranchi till dawn. To get over the problem, Tata Steel has tied up with Deccan Charters to run three daily flights between Jamshedpur and Kolkata from August 16. The scam list is very impressive. Other than former chief minister Madhu Koda on an estimated Rs 3,200 crore mining scam, it includes current chief secretary Singh, who has been served 17 notices including those by the Supreme Court for a corruption case, for which he has also served a brief jail term. The case was filed during his stint as managing director of the Bihar State Financial Corporation. The former Director General of Police, VD Ram, too is charged for withdrawing Rs 5.60 crore in cash from the state treasury. While there is a public interest litigation against him in the Jharkhand High Court since December last year, he has no filed any counter affidavit. He curtly told FE, “It is yet to filed, it is the government which has to file it”. Ram is now the DG (home guard & fire brigade services) at Ranchi. Dayamani Barla, convenor of the Adivasi Moolvasi Astiva Raksha Manch, which has strong Naxal affiliations is therefore convinced the environment is not right for the tribals to give up land for industry. She argues when adivasis surrender land the most they could hope for is employment for a single person from the family. But the land they give up could feed them for generations. Despite the example of the Tata plant at Jamshedpur that has played a catalytic role in the surrounding areas, Barla is sure that industrialisation in the area would mean splitting the tribal unity or 'collectiveness'. All those who have been displaced are slum dwellers now. From farmers, these people have become bonded labourers and rickshaw pullers, rooted out of their lifestyle and culture”. She concedes the absence of reputed industry groups could have encouraged illegal mining and also abetted government corruption but is unfazed. For instance of the 12,000 hectares, the Mittal group requires for its plant at Khunti and Gumla districts of Jharkhand, it has so far got only 1,586 acres. In the same area, illegal miners often paying off the Naxals have taken over stretches of iron ore deposits, turning those areas into virtual no go areas. Reports of Naxalites controlling mining in some areas is not absolutely false. But we need to see why such things happen and who give indulgence to it” Barla told FE. And for the party that has been in the government the longest, these are non-issues. “Industrialisation or illegal mining is not a political issue in the state,” says Binod Pandey, president youth wing of Shibu Soren led Jharkhand Mukti Morcha. “A stable political government is the only issue with which all the political parties are on the field now and our main opponent is the bureaucracy,” he adds. His opponent, Raghuvar Das, the BJP state president is more categorical. The Naxals are extremists and they have to be routed. But their threat is limited. Illegal mining comes in second.

(Source:http://www.financialexpress.com/news/minerich-jkhand-plagued-by-corruption-naxalism/659150/0)

Steel min favours speedy green clearance for Posco

New Delhi, August 12, 2010: Korean steelmaker Posco’s $12-billion mega plan to set up a steel plant in the country is expected to make some headway shortly with the steel ministry saying it may seek a speedy environmental clearance for the project. “If need be, we will take up the matter with the ministry of environment and forests for the speedy clearance of Posco’s Orissa project,” steel minister Virbhadra Singh told reporters on the sidelines of a Assocham conference on steel sector. Hinting at the resolution of environment issues within a month, steel secretary Atul Chaturvedi said, “Posco issue would be resolved soon, may be in a month’s time.” The environment ministry, headed by Jairam Ramesh, had earlier asked the state government to stop land acquisition for the Posco project saying it was in violation of certain green norms. The Korean steel giant requires about 4,000 acres to build the plant which would have an annual production capacity of 12 million tonne. The world’s third largest steel producer signed an agreement with the Orissa government five years ago to build one of the country’s largest steel manufacturing unit. The project has, however, failed to take off as local landowners have refused to part their farm and homes for the project. In the face of strong protests thus stalling the work for building the steel plant, Posco has started looking for an alternative to make their presence in India. It is in talks with state-owned steel producer Steel Authority of India (SAIL) to form a joint venture to build a steel plant with annual capacity of 1.5 million tonne. Meanwhile, industry captains on Wednesday said that steel prices may increase next month due to revival in demand in view of the end of the monsoon season and upcoming festive season. “Prices of steel have stabilised globally...I think the prices have bottomed out. We see steel prices firming up from here,” SAIL chairman CS Verma said.

(Source:http://www.financialexpress.com/news/steel-min-favours-speedy-green-clearance-for-posco/659113/)

Workshop focus on mining

Jamadoba (Dhanbad), August 12, 2010: Tata Steel, in association with the mechanical wing of the directorate general of mines safety (DGMS), Dhanbad, hosted a one-day workshop on non-destructive testing of winding engine components and other installations at JRD Tata Auditorium today. About 120 participants from 25 mining companies took part in the workshop. Some of them were MOIL; Nagpur, Hutti Gold Mines, Singareni Coal Company Ltd, BCCL, ECL, CCL, South Eastern Coal Fields and IISCO. The discussions focused primarily on mining and upkeep of its allied machinery to ensure a safe workplace for its employees. General Manager (Jharia), Tata Steel, CH Diwakar said Tata Steel, which had been into captive mining for more than a century, had imbibed safety as an inherent part of its work culture. The company, from time to time, had been carrying out assessment of the health of these installations with the help of its engineering services division at Jamshedpur, he added. “Yet, the Jharia division took a step ahead and prepared a robust mechanism of maintenance in association with DGMS, Dhanbad, so that it is confident that its work processes are safe not only for today, but also for the next 50 years and beyond,” he said.

(Source:http://telegraphindia.com/1100812/jsp/jharkhand/story_12801845.jsp)

Steel Ministry to seek speedy clearance for POSCO project

New Delhi, August 12, 2010: The Union Steel Minister, Virbhadra Singh on Wednesday said his Ministry could step in to seek a speedy clearance for the controversial Rs. 54,000-crore Posco steel project in Orissa from the Environment and Forest Ministry. Talking to reporters on the sidelines of the Assocham steel summit here, Mr. Singh said: “if the need arises, we will take up the matter with the Ministry of Environment and Forests for the speedy clearance of the Posco's Orissa project.” However, Minister of State for Environment and Forests Jairam Ramesh when contacted said the matter was now under examination of his Ministry and no deadline could be fixed for clearing the project. “Nobody from any Ministry has spoken to me till date seeking an early clearance for the project. We will strictly go by the law and rules,” he asserted. Speaking on the occasion, Steel Secretary Atul Chaturvedi said that the issue regarding Posco's 12-million tonne per annum steel plant in Orissa could be resolved in a month's time. “Posco issue would get resolved soon, maybe in a month's time,” he said at the same summit. The statement comes close on the heels of the Union Environment Ministry asking the Orissa Government to stop land acquisition process for the Posco project, saying it is in the violation of certain green norms. Posco requires a total of 4,004 acres to build a steel plant with an annual capacity of 12 million tonnes in Jagatsinghpur district of Orissa. The project has been delayed for over four years now, mainly due to protests and strong opposition by the locals and tribal people against the arbitrary land acquisition, as 2,963 acres out of the total land acquired falls under the forest cover. Earlier, in her welcome remarks, Sminu Jindal, Assocham Chairperson and Managing Director, Jindal Saw, said the prevailing Indian economy had to foster growth in infrastructure. It was estimated that by 2020, India would need a steel production base of 200 million tonnes as against the existing base of 65 million tonnes. In order to scale up the growing demand of steel, it needed to strengthen cargo movement by 2020, increasing it by two-and-a-half folds as compared to its current capacity, she added.

(Source:http://www.hindu.com/2010/08/12/stories/2010081257581700.htm)

Steel ministry seeks Posco clearances

New Delhi, August 12, 2010: The steel ministry on Wednesday said that it may seek from the environment ministry speedy clearance to Posco’s Rs 54,000-crore project in Orissa.  “If the need be, we will take up the matter with the ministry of environment and forests for the speedy clearance of Posco’s Orissa project,” the steel minister, Mr Virbhadra Singh, told reporters at the Assocham steel summit here. Speaking on the occasion, the steel secretary, Mr Atul Chaturvedi, said that the issue regarding Posco’s 12 MTPA steel plant in Orissa could be resolved in a month’s time. “The Posco issue would get resolved soon, may be in a month’s time,” Mr Chaturvedi said.  The statement comes amid the environment ministry asking the Orissa government to stop land acquisition process for the Posco project, saying it is in the violation of certain green norms. Posco needs 4,004 acres land to build a steel plant in Jagatsinghpur district of Orissa.  The project has been delayed for nearly 5 years now, due to protests against land acquisition, as 2,963 acres out of the total land required falls under the forest cover.

(Source:http://epaper.asianage.com/ASIAN/AAGE/2010/08/12/ArticleHtmls/12_08_2010_016_010.shtml?Mode=1)

Miners take Karnataka govt to court on iron ore export ban

Mumbai/ Bangalore August 12, 2010: Contend no juridiction, breach of their rights; HC hearing on August 20.

Nine mining companies, including India’s largest iron ore exporter, Sesa Goa, have filed separate petitions and another half dozen are in various stages of approaching the court next week to challenge the Karnataka government’s abrupt decision to ban export of the steel-making raw material from the state. The petitioners have made both the state government and central government as respondents in the case. There are five respondents on behalf of the state government. While the Union Ministry of Mines as well as the commerce ministry are made respondents on behalf of the central government. The high court has asked the respondents to submit their counter affidavit by August 16. By August 18, the petitioners will have to file rejoinders, if any, before the matter is heard on August 20. A bench of Chief Justice J S Khehar and Manjula Chellur directed the government to file its objections to the petition filed in the Bangalore high court by August 16 and asked the petitioners to file their rejoinders by August 18, while adjourning the matter to August 20. In orders issued on July 26 and 28, the state government had imposed a total ban on the movement of iron ore for both exports and domestic use. As a result, ore exports from the state have halted entirely. The government has also put restrictions on issue of mineral dispatch permits for even domestic use by steel mills. The petitioners, all exporters of ore, have contended the ban order was arbitrary, unconstitutional and without jurisdiction. Contending that export of iron ore is their constitutional right, the petitioners have said the ban did not serve any purpose and affects their livelihood. The government gives illegal mining as justification for its action, while mining outfits allege the former’s failure to act against its own party (BJP) members involved in such illegal mining. Either way, the country is losing crores of rupees on export revenue. “Minerals are a central subject. Therefore, the state government of Karnataka has no jurisdiction to intervene in a central government subject,” said a miner, on condition of anonymity.

CM’S NEW POLICY

State chief minister B S Yeddyurappa had recently said iron ore should be preserved in the state for use in the proposed steel plant by ArcelorMittal. The world’s largest steel producer, led by India-born tycoon L N Mittal, is in the process of setting up a six million-tonne unit in the state, at an estimated investment of Rs 30,000 crore. About 70-80 mining companies, a majority of these designated as export-oriented units, have reduced their output by up to 60 per cent since the state government banned the issue of transport licences to ore exporters. The state is endowed with approximately 9.03 billion tonnes, 40 per cent of India’s estimated total haematite and magnetic ore resources. The nine companies that have filed suits are Sesa Goa, V S Lad & Sons, Mineral Enterprises Ltd, Zeenat Transport Co, K Praveenchandra, Bharat Mines and Minerals, H R Ranganagoud, Hothur Traders and Gaurisiddeshwar Minerals. The first eight companies account for close to 60 per cent of ore output in the state, of 40 million tonnes. Of this, 30 million tonnes is exported; 90 per cent of that is low-grade ore (less than 60 per cent iron content), exported to China. “Since the state’s total consumption stands today hardly at 10 million tonnes, the rest of the quantity has to be exported. Going forward also, miners would not like to set up forward integration projects like benefication and pellet plants to process low-grade ore,” said another petitioner. “Iron ore mining activity will be stopped fully in the months to come if the ban is not lifted,” said D V Pichamuthu, Director of FIMI South.

(Source:http://business-standard.com/india/news/miners-take-karnataka-govt-to-courtiron-ore-export-ban/404255/)

India minister says will seek swift clearance for POSCO

New Delhi, August 12, 2010: India's steel minister promised Wednesday to press for swift clearance of a 12-billion-dollar steel project by South Korea's POSCO after land acquisition was halted on environmental grounds. Earlier this month, India's Environment Minister Jairam Ramesh said the ministry had ordered the government in eastern Orissa state to stop acquiring land for the project. The step came after a government-appointed committee concluded the project violated legislation aimed at protecting forest dwellers and their lands. "We will take up the matter with the Ministry of Environment and Forests for the speedy clearance of POSCO's Orissa project," Steel Minister Virbhadra Singh said in New Delhi. Separately India's Steel Secretary Atul Chaturvedi said he expected the dispute to be settled within about a month. POSCO's plans to build a steel plant with an annual capacity of 12 million tons in the eastern state of Orissa have been hailed as India's largest foreign investment since the country launched market reforms in 1991. Orissa state and POSCO signed an initial agreement in June 2005 to build the plant but progress has been held up by a dispute with locals, many of whom are tribals, who are worried about losing their livelihood and property. The federal environment ministry said the state government falsely claimed that tribals did not inhabit the area sought for the plant, despite "documentary" evidence that they did. Under the Forest Rights Act, locals' permission is mandatory before acquiring forest land for a project. Rights groups have told the ministry the locals' permission was never sought, which the Orissa government denied. The mining plans are seen as a test case, pitting industrial development interests in India against those of locals. The national government has also said it is reviewing plans by British resources giant Vedanta Resources to mine bauxite on land held sacred by locals to feed a 900-million-dollar aluminium refinery.

(Source:http://www.google.com/hostednews/afp/article/ALeqM5ivRe45JFpI1vusd9-p2O7orZ-3_Q)

Anti-Vedanta tribal leader abducted

Bhubaneswar, August 12, 2010: The battle for the bauxite-rich land in Niyamgiri hills in Kalahandi between Anil Aggarwal-promoted Vedanta Aluminium and local Dangria Kandha tribe intensified on Tuesday with the abduction a tribe leader at gunpoint. The mining project is captive to the Vedanta Resources' Vedanta Aluminium's R8,400-crore, five-lakh-tonne aluminium smelter in neighbouring Jharsuguda district.  People accompanying Lada Sikaka Majhi (35) alleged that he was taken away by some armed men, probably plain-clothes policemen. According to reports, Majhi was on his way to Kalahandi district headquarters Bhabanipatna, along with a few other activists on Tuesday. They were to be in Delhi to attend a meet on the Forest Rights Act on Wednesday. Majhi's aides said more than a dozen men with AK-47 assault rifles stopped their car in Niyamgiri forest. They snatched the car keys and dragged out Majhi, his companion Sana Majhi and a woman activist. The armed men packed them into another vehicle and drove away. "They threw me and the woman out of the vehicle after some distance and took Majhi with them," Sana said. He alleged the armed men took Majhi to Rayagada district on the other side of Niyamgiri hills. Kalahandi district police chief Sudha Singh, however, said, "I have talked to Majhi. He is in a relative's place in a village in Rayagada district. He will reach home by tomorrow." Prafulla Samantra, convenor of Lok Shakti Abhiyan said people who had deposed before the Centre's N.C. Saxena panel, were being targeted. He said Arsi Majhi, a leader of the Green Kalahandi movement, was murdered last month.

Virbhadra to take up Posco with Ramesh

Concerns of Posco, whose steel plant in Orissa is facing environmental hurdles, will now be raised by Union Steel minister Virbadra Singh. Environment ministry last Friday asked Orissa to stop land acquisition of the Rs 54,000 crore plant citing violations of the Forest Rights Act. On Wednesday, Singh said that he will take up the Posco issue with the environment ministry. “If the need be, we will take up the matter with the ministry of environment for the speedy clearance of the Posco’s Orissa project,” Singh said. The steel ministry officials believe that the issues regarding the Posco’s plant will be resolved in a month’s time.

(Source:http://www.hindustantimes.com/Anti-Vedanta-tribal-leader-abducted/Article1-585419.aspx)

Miners will have to give tribals a share

New Delhi, August 11, 2010: Mining companies in tribal areas should shell out 26% of their equity while individual and other operators should share 26% of their profits with the affected people. The Union mines ministry will recommend this to the Empowered Group of Ministers on the new Mines and Minerals (Development and Regulation) Act on Wednesday.  The EGoM will meet for the last time on Wednesday to discuss the bill which the government believes can reduce the rising protest in tribal areas against mining that brings little developmental gains to the region. Sources said the proposed bill's provisions for sharing equity and profits besides the mining units paying an environmental levy and other taxes in order to check abnormal super profits as well as run the operation sustainability remain on board despite a spirited attempt by business chamber FICCI against them.  FICCI had written to the PM against the provisions of the bill. It had claimed that sharing their profits with affected people "would be like money earned without any effort" and lead to greater inequalities and cause socio-economic problems besides making the mining industry operations unviable.  But the government, conscious of the geographical overlap of the tribal population, Left-wing extremism and the mining belt in central India, sources suggest, at the moment is sticking to its guns. The bill also proposes to set up a regulatory authority at the Centre to monitor and implement the Act. The move to set up such an authority comes at a time when the case of illegal mining in Karnataka has become a national issue with a beleaguered BJP government in the state tossing the ball into the Union government's court. It has asked the Centre to ban iron ore exports which it turn would curb illegal mining too. While the UPA at the moment seems firm on altering the mining regulations, it is a divided house on the issue of curbing or banning exports. The Union minister of mines B K Handique on Tuesday said a ban on the export of the ore would lead to job loss. The Union steel ministry, on the other hand, has favoured a ban on exports of iron ore fines. The EGoM meeting on Wednesday is expected to resolve this impasse as well.  Handique admitted in Lok Sabha during question hour that there were differing views but said, "My ministry has, however, kept an open mind and whatever decision is taken, we shall abide by it."

(Source:http://timesofindia.indiatimes.com/india/Miners-will-have-to-give-tribals-a-share/articleshow/6289386.cms)

When the contractor became environment minister

HYDERABAD: He is a contractor who began with irrigation projects and diversified into construction, real estate and mining. He also happens to be the state minister for forest, environment, science and technology. It is perhaps because of this contradiction that Peddireddi Ramachandra Reddy wants to balance both. On the one hand, he insists that he is against environment and industrial pollution. On the other, he vows to ensure that industrialists do not take flight from the state for want of their projects not getting environmental clearances.

Unlike many other politicians, Ramachandra Reddy is a self-made politician. Hailing from Rayalaseema's Chittoor district, he was able to make his mark despite being a Reddy in an area dominated by the Balija community (as Kapus are called in Rayalaseema). While a student of biology, he was an arch-rival of TDP president N Chandrababu Naidu during their college days in Sri Venkateswara University in Tirupati and had got the better of Naidu during the college elections in the early seventies.

Ramachandra Reddy first contested for the MLA seat on the Janata Party ticket from Pileru constituency in 1978. Old-timers say he was attracted to the Janata Party and had campaigned for Neelam Sanjeeva Reddy who was the party candidate from Nandyal Lok Sabha seat after the Emergency was lifted in 1978. But his MLA forays both in 1978 and later as a Congress candidate in 1985 were unsuccessful. He entered the assembly for the first time in 1989 from Pileru and repeated it in 1999, 2004 and in 2009 after shifting his constituency to Punganur in Chittoor district.

According to sources, his association with Sanjeeva Reddy firmed his hold in the state politics. When Sanjeeva Reddy was the President of India, Ramachandra Reddy used to be a frequent visitor to Rashtrapati Bhavan, and this in turn enhanced his clout in the state government led by chief minister T Anjaiah. Overnight, he became a contractor. Beginning with irrigation contracts during the Anjaiah regime, he slowly diversified into construction, real estate and mining. A company spawned by him PLR Projects now has an annual turnover of Rs 1,600 crore.

Although he got elected on the Congress ticket in 2004, he was not close to Y S Rajasekhara Reddy and hence did not make it to the cabinet. But by 2009, the proximity of Ramachandra Reddy's son while working with YSR's son Jaganmohan Reddy brought the two fathers together. As a result, Ramachandra Reddy became a minister for the first time in 2009. In fact, a day after YSR's death was confirmed, Ramachandra Reddy was the first person to declare that no state government would be allowed to perform unless it was headed by Jaganmohan Reddy.

Today, he holds on to his position in the state cabinet but has the potential and wherewithal to charter his own political course at any given time. But going by his utterances, his first aim appears to be ensuring environmental clearances to 24 projects in an environmentally sensitive region in coastal Andhra. He is among the group of ministers from the state who would be calling on Union environment and forests minister Jairam Ramesh in New Delhi on Wednesday and pleading for environmental clearances for 24 projects mainly in the coastal region.

"I am against environment and industrial pollution. Industries, both established and upcoming, should strictly adhere to pollution standards. As environment minister, I am more careful and vigilant than anybody to prevent any polluting industries. At the same time, in the name of environmental pollution, industrialisation of the state should not be hampered. The state is in dire need of investments and we should see that they are attracted and allowed to be established. Otherwise they will go to other states," he told TOI on Tuesday.


Read more: When the contractor became environment minister - Hyderabad - City - The Times of India http://timesofindia.indiatimes.com/city/hyderabad/When-the-contractor-became-environment-minister/articleshow/6289863.cms#ixzz0wGOdHvI0

Hyderabad, August 11, 2010: He is a contractor who began with irrigation projects and diversified into construction, real estate and mining. He also happens to be the state minister for forest, environment, science and technology. It is perhaps because of this contradiction that Peddireddi Ramachandra Reddy wants to balance both. On the one hand, he insists that he is against environment and industrial pollution. On the other, he vows to ensure that industrialists do not take flight from the state for want of their projects not getting environmental clearances. Unlike many other politicians, Ramachandra Reddy is a self-made politician. Hailing from Rayalaseema's Chittoor district, he was able to make his mark despite being a Reddy in an area dominated by the Balija community (as Kapus are called in Rayalaseema). While a student of biology, he was an arch-rival of TDP president N Chandrababu Naidu during their college days in Sri Venkateswara University in Tirupati and had got the better of Naidu during the college elections in the early seventies. Ramachandra Reddy first contested for the MLA seat on the Janata Party ticket from Pileru constituency in 1978. Old-timers say he was attracted to the Janata Party and had campaigned for Neelam Sanjeeva Reddy who was the party candidate from Nandyal Lok Sabha seat after the Emergency was lifted in 1978. But his MLA forays both in 1978 and later as a Congress candidate in 1985 were unsuccessful. He entered the assembly for the first time in 1989 from Pileru and repeated it in 1999, 2004 and in 2009 after shifting his constituency to Punganur in Chittoor district. According to sources, his association with Sanjeeva Reddy firmed his hold in the state politics. When Sanjeeva Reddy was the President of India, Ramachandra Reddy used to be a frequent visitor to Rashtrapati Bhavan, and this in turn enhanced his clout in the state government led by chief minister T Anjaiah. Overnight, he became a contractor. Beginning with irrigation contracts during the Anjaiah regime, he slowly diversified into construction, real estate and mining. A company spawned by him PLR Projects now has an annual turnover of Rs 1,600 crore. Although he got elected on the Congress ticket in 2004, he was not close to Y S Rajasekhara Reddy and hence did not make it to the cabinet. But by 2009, the proximity of Ramachandra Reddy's son while working with YSR's son Jaganmohan Reddy brought the two fathers together. As a result, Ramachandra Reddy became a minister for the first time in 2009. In fact, a day after YSR's death was confirmed, Ramachandra Reddy was the first person to declare that no state government would be allowed to perform unless it was headed by Jaganmohan Reddy. Today, he holds on to his position in the state cabinet but has the potential and wherewithal to charter his own political course at any given time. But going by his utterances, his first aim appears to be ensuring environmental clearances to 24 projects in an environmentally sensitive region in coastal Andhra. He is among the group of ministers from the state who would be calling on Union environment and forests minister Jairam Ramesh in New Delhi on Wednesday and pleading for environmental clearances for 24 projects mainly in the coastal region. "I am against environment and industrial pollution. Industries, both established and upcoming, should strictly adhere to pollution standards. As environment minister, I am more careful and vigilant than anybody to prevent any polluting industries. At the same time, in the name of environmental pollution, industrialisation of the state should not be hampered. The state is in dire need of investments and we should see that they are attracted and allowed to be established. Otherwise they will go to other states," he told TOI on Tuesday. Read more: When the contractor became environment minister - Hyderabad - City - The Times of India

(Source:http://timesofindia.indiatimes.com/city/hyderabad/When-the-contractor-became-environment-minister/articleshow/6289863.cms#ixzz0wGOdHvI0)

National mining regulator in the offing in India

Wednesday, 11 Aug 2010: BL reported that the government proposes to set up a national mining regulator for major minerals, such as iron ore and coal which would help tackle the growing menace of illegal mining in the country. Sources said that to be modeled on the lines of TRAI and SEBI, the National Mineral Regulatory Authority will be an independent quasi judicial body and would have powers to commission investigations and also prosecute. The authority will deal with cases relating to exploration and mining without leases, storage and transportation without valid permits among other issues based on written complaints. The structure of the proposed regulatory authority is likely to be finalized by the Group of Ministers set up to look into the new mining legislation. Last week, the GoM in its second meeting had suggested strengthening of the regulatory mechanism by giving more power to deal with rising cases of illegal mining. Mining is a state subject and state governments have not been successful in containing the spread of illegal mining. Sources said that the proposed regulatory authority could help curb illegal mining of major minerals, while the state governments could be asked to set up similar regulators to check illegal mining of minor minerals. In view of the growing instances of illegal mining, the central government had recently asked states to prepare action plans to monitor and curb illegal mining which includes the use of satellite imagery and other intelligence inputs. So far about 10 states including Andhra Pradesh, Gujarat, Jharkhand, Karnataka, Maharashtra, Orissa, Rajasthan and Tamil Nadu have prepared action plans to curb illegal mining. Karnataka has even gone a step further and banned the export of iron ore through the 10 minor ports in the state and stopped issuing transport permits to regulate the movement of the commodity.

(Source:http://www.steelguru.com/raw_material_news/National_mining_regulator_in_the_offing_in_India/159807.html)

18 years to reject mining lease!

Bhubneshwar, August 10, 2010: It took more than 18 years for the State Government to reject the mining lease application of Ram Bahadur Thakur Limited (RBTL) for manganese ore over an area of 96.56 hectares in Keonjhar district. The Government took up the issue only after the multi-crore mining scam rocked the State and there was huge revenue loss because of illegal mining.  ‘’The application is not in the interest of efficient mineral administration and mineral conservation principles,’’ said the order of the departmental inquiry conducted by the Steel and Mines Secretary. ‘’RBTL indulged in illegal mining activities and is not worthy of being trusted with the confidence that it would abide by the terms and conditions that would be laid down by the Government if the mining lease is granted in its favour,’’ the order said. The findings of the Indian Bureau of Mines (IBM) and the committee set up by the department to probe the matter established illegal mining in the proposed lease area. Besides, enquiry by the State Vigilance established prima facie involvement of S N Dasmohapatra and Shakti Ranjan Dash in illegal mining and unauthorised construction in the disputed area. Dasmohapatra was employee of RBTL and acted on behalf of the company till 2008. His service was terminated by one group of the shareholder of the company associated with late Madan Mohan Sharma in April 2008 and power of attorney was given to Dash. This was contested by the other group associated with late Chaturbhuja Sharma and family. The RBTL submitted its application to the Government on September 25, 1991 for mining lease in Rudulkela and Katasahi villages of Keonjhar district. The Government recommended the application to the Centre for approval on March 8, 1994. The Ministry of Mines approved of grant of mining lease in March 1996 on compliance of certain terms and conditions, including statutory clearance from the Centre.  While the company took 13 years to meet the statutory clearance, illegal mining in the area was continuing, the administrative order said.

(Source:http://expressbuzz.com/states/orissa/18-years-to-reject-mining-lease!/196965.html)

Jharkhand mining minerals update

Monday, August 10 2010: Mr BK Handique Indian minister of mines said that as per available information, Bauxite, Copper, Dolomite, Felspar, Fireclay, Gold, Graphite, Iron ore, Kaolin, Kyanite, Laterite, Limestone, Manganese ore, Pyrophyllite, Pyroxenite, Quartz, Quartzite and Silica sand minerals are being produced in Jharkhand and the contribution of State of Jharkhand in total value of mineral production of India was 9% during 2008-09.

(Source:http://www.steelguru.com/raw_material_news/Jharkhand_mining_minerals_update/159444.html)

63 coal mines awaiting environment clearance

New Delhi, August 9, 2010: Presently, 63 projects are at various stages of obtaining Environment Clearance for mining of coal in the country. This was stated by Minister of State for Coal Sriprakash Jaiswal in reply to a question in Rajya Sabha on Monday.  Getting Environmental Clearance is a continuous and ongoing process and issues related to delays are addressed by the coal companies with the concerned authorities and also by the Ministry of Coal with the Ministry of Environment & Forests and the State Governments whenever required.

(Source:http://www.indiablooms.com/EnvironmentDetailsPage/environmentDetails090810f.php)

Centre can crack down on illegal mining: Law officer

New Delhi, August 9, 2010: Indian top law officer has told the Centre that it has powers to curb illegal mining under existing laws if its wants to conserve minerals. "The Central government is bestowed with powers to regulate mining in India in the interest of the public and in a manner that is consistent with the goals of the (Mines and Minerals Development and Regulation) Act. It cannot be a mere spectator while illegal mining continues unabated," the Attorney General G E Vahanvati told the government. The opinion comes at a time when the Centre had refused to ban import of iron-ore to stop illegal mining in Karnataka and forest officials from Naxal affected states have claimed the Naxals were being funded from the money generated from illegal mining.Stating that the Central government cannot be a mere spectator, the attorney general said the Central government could authorise an officer to conduct search and to make complaints directly under sections 22 and 23 (B) of the Act. He also said that mechanism for investigation and consequential action is also prescribed in the Act. He was also of the view that the Parliament, in order to regulate and develop mining systematically and in public interest, has armed the Central government with the authority to control mining activity and thereby preventing it. He has also not agreed with the Mining ministry's view that it cannot curb illegal mining activities - worth several thousand crore of rupees - because it occurs outside mining areas saying conservation of India's mineral wealth is the prime responsibility of the Centre.

(Source:http://www.hindustantimes.com/Centre-can-crack-down-on-illegal-mining-Law-officer/Article1-584411.aspx)

Assocham welcomes Karnataka decision to ban iron ore export

Bangalore, August 8, 2010: The Associated Chambers of Commerce and Industry (ASSOCHAM), the industry body, on Sunday welcomed the Karnataka government’s decision to ban iron ore export, but emphasised that the State should ensure it was enforced fully. “We welcome the decision to ban export of iron ore but it must be enforced strictly” D. S. Rawat, Secretary General Assocham told PTI on Sunday. “No illegal exploitation of any mineral resources should be permitted”, he said and lamented that India exported the precious raw material and imported finished good. “We are depleting our own natural resources by doing so”, he said pointing out that China, which imported iron ore from various countries, including India was preserving its own natural wealth and using the wealth of others to fuel its industries. Nearly 85 per cent of iron ore from India was exported to China, he said. The body had favoured a delegation from West Bengal, Chhattisgarh, Jharkhand, Karnataka to meet the Prime Minister and seek support for a total ban on iron ore export and other mineral resources. The focus should be on generating jobs here and inviting investments to India and not exporting raw material outside, which could be damaging in the long run. The chambers had suggested that the ban on these exports be carried out in a phased manner going by the plea of mining firms that lakhs were involved in the industry and it was question of their livelihood. He said domestic consumption capacity could be increased in a phased manner so that by 10 years all ore produced could be consumed in the domestic market. On whether Indian industry had the technology to use fine iron ore, he said several firms had the required technology in place and various firms could import technology gradually. Karnataka, the second-biggest producer of iron ore, banned iron ore exports and transport to other States in July following pressure from the opposition relating to illegal mining and export of iron ore. In the last 10 years, over 30 million tonnes of iron ore were reportedly illegally mined and exported from Karnataka.

(Source:http://www.thehindu.com/news/states/karnataka/article559328.ece)

Green blow to power ambition

New Delhi, August 8, 2010: The environment ministry’s restriction on coal mining has held up bidding for two 4,000MW power projects in Orissa and Chhattisgarh. Power Finance Corporation — the nodal agency for the mega power projects — had invited pre-qualification bids for the Bedabahal project in Orissa. The last date for submitting the applications was July 30. “The deadline has been extended by two months as there is no clarity on the status of the captive coal block,” a senior PFC official said. The official said almost half of the coal mines allocated for the Orissa plant had been classified as a “no-go” zone by the environment ministry, which meant mining would not be allowed in these areas. The ministry has divided forest areas into “go” and “no-go” areas, depending on the tree cover.  “As of now, we have not heard from the power ministry whether or not we will get environment clearance for the coal mine,” the PFC official said.  Of the three coal blocks for Bedabahal — Meenakshi, Meenakshi B and Meenakshi dipside — two are in the no-go zone, said an official in the power ministry. The Chhattisgarh power project is also facing a similar dilemma as the Hasdeo Arand coalfield has been declared a no-go land. The deadline for submitting the qualification bid has been extended twice, and the new date is September 6. Each of the 4,000MW project requires an investment of Rs 16,000-20,000 crore. Sources said the environment and coal ministries were jointly exploring the possibility of relaxing the criteria for demarcation in certain areas, following orders from the Prime Minister’s Office and the finance minister. A solution was likely by early September, the sources added. The coal ministry is now pushing for a revised classification of forest land into “go”, “no-go” and “may-go” areas. While mining will be prohibited in the no-go areas, access to the may-go zones will be given after proper evaluation, the officials said. After studying nine major coal mining areas, the environment ministry had concluded that over 35 per cent of the area under study could not be used for mining.  The environment blow comes at a time the country is likely to miss the generation target for the Eleventh Five Year Plan (2007-12). Against a target of 62,000MW, the addition to capacity is estimated at 45,000MW. “It is anticipated that an additional power generation capacity of 45,234MW can be commissioned during the remaining period of the Eleventh Plan, noting that 19,207MW capacity was added till December 2009,” the Planning Commission had said in its mid-term review. The current installed generation capacity is over 155,000MW. The power ministry had planned to set up nine mega projects, with four at pithead and five at coastal locations (with imported coal), to help to meet the generation target of 1,00,000MW by the Twelfth Five Year Plan period (2012-17).  However, it is unlikely the government will be able to allot coal to all the projects.  The government has awarded four mega power projects, with Anil Ambani’s Reliance Power the most successful bidder. RPower has bagged Sasan in Madhya Pradesh, Krishnapattnam in Andhra Pradesh and Tilaiya in Jharkhand. The Mundra project in Gujarat has gone to Tata Power.

(Source:http://www.telegraphindia.com/1100809/jsp/business/story_12789043.jsp)

MP may disinvest in NHDC, Mining Corp

New Delhi/ Bhopal, August 07, 2010: The Madhya Pradesh government is mulling disinvestment in some of its companies, including Narmada Hydroelectric Development Corporation and State Mining Corporation, after giving consent to dilute its stake in Manganese Ore India. It might also consider disinvestment in State Forest Development Corporation in future but it would require, according to officials, Supreme Court’s permission. “The state government is considering disinvestment of Mining Corporation and in Narmada Hydroelectric Development Corporation (NHDC) but it is too early to say anything. We may also go public for Mining Corporation,” a government source told Business Standard. Other corporations like Forest Development Corporation also figured in the discussion but it would require the Supreme Court permission.  State chief secretary Avani Vaish had earlier said the government was mulling disinvestment of couple of companies but did not disclose names of those companies. Narmada Hydroelectric Corporation is a joint venture of National Hydro Power Corporation (NHPC) and the state government. The state has 49 per cent stake in it. The corporation has completed two mega hydel projects in the state — the 1,000- megawatt (Mw) Indira Sagar project and 520-Mw Omkareshwar power project. Buoyed by this timely completion of these two projects, the corporation had planned to take over three mini-hydel projects, having a combined capacity of 120 Mw, but later dropped the plan. Now, it has diversified into thermal and wind power sector also and has bagged two thermal power projects of 1,320 Mw each in the state. These two power projects will be based on supercritical technology. Further, it has also reached an advance stage of conducting a feasibility study of a wind power project of 100 Mw at Kukru village in Betul district. On the other hand, an official in NHPC said on condition of anonymity: “We have not been informed about the development, the government may be considering it internally.” The net profit of the company during 2009-10 has slipped to Rs 212.30 crore from Rs 330 crore in the previous year. The company generated 3,070 million units of power from its 1,000 Mw Indira Sagar and Omkareshwar projects against 2368 million unit generated in 2008-09. State mining corporation, which is engaged in mining and marketing of minerals have also witnessed a slight fall in its profit (unaudited) during 2009-10 which stands at Rs 2319.27 lakh against Rs 2536.28 lakh of the previous year. The turnover of the company is also stagnant at Rs 5693.28 lakh during 2009-10 against Rs 5667.77 lakh of the previous year. As regards Manganese Ore India Limited (Moil), the state has decided to offload its five per cent stake in the company. It has 8.81 per cent in the Moil. “State has already approved selling 5 per cent in Moil,” the source added.

(Source:http://www.business-standard.com/india/news/mp-may-disinvest-in-nhdc-mining-corp/403803/)

SAIL lines up Rs 1,500 crore for domestic coal mines

New Delhi, August 7, 2010: The country’s largest steelmaker SAIL will invest Rs 1,500 crore to develop its domestic coking coal mines as it looks to reduce  dependence on the import of the key input that has been a prime cause of volatility in steel prices.  The company will develop new coking mines in Jharkhand that will produce close to 5 million tonnes of coking coal, reducing imports by over 20%. “The new programme on development of domestic coking coal mines will help to substantially reduce dependence on imports helping us to contain costs and check volatility in pricing,” SAIL chairman C S Verma said. Coal is major source of fuel for steel plants, accounting for over 30% of the cost of making steel. SAIL consumes about 14 million tonnes of coking coal but only about 4 million tonnes comes from domestic sources — SAIL’s captive mines and supplies from Coal India. The new projects will enhance domestic availability to over 7 million tonnes by 2012-13 even as requirement is set to increase to about 21 million tonnes by then. SAIL will develop two new coking coal mines at Tasra and Sitanalla in Jharkhand’s Jharia coalfield, the statutory clearances for which have been obtained. While Tasra will yield about 4 million tonnes per annum (mtpa), the underground mine at Sitanalla is expected to produce 0.3 mtpa. The entire Rs 1,500 crore investment go into these two projects. In addition, SAIL is also looking to expand its existing mines at Chasnalla, Jitpur and Ramnagore and positioning its 50:50 joint venture company with Tata Steel — S&T Mining Co — to initially focus on indigenous coal development. S&T Mining has been short listed by Coal India (CIL) to participate in biding process for revival of its old and abandoned coal mines.

 (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/SAIL-lines-up-Rs-1500-crore-for-domestic-coal-mines/articleshow/6268124.cms)

Coal India eyes three overseas acquisitions

Kolkata, August 7, 2010:  Close on the heels of Adani Enterprises’ Australian coal asset purchase, state-run Coal India (CIL) is zeroing in on three acquisitions, spanning across major coal production geographies. The Navratna company, slated to file its Draft Red Herring Prospectus (DRHP) by August 9, is in advanced stages of exploring the proposals: one each from Australia, Indonesia and the United States.  Top CIL officials told Business Standard that the three proposals “are looking good” and it is understood that a deal could be finalised in the next couple of months.  Although details of each proposal are hard to discern, the combined reserves of the three assets could be 800-900 million tonnes, with production estimated to be between eight-nine million tonnes per annum. “All three (assets) are operational,” an official said, which means that CIL could start procuring coal from the mines immediately after acquisition and also that the valuation of the assets would be on the higher side. The company has already earmarked Rs 6,000 crore for foreign acquisitions during this financial year, and is said to have roped in Bank of America-Merrill Lynch, Royal Bank of Scotland and Bank of Canada for helping with the overseas deals. Earlier this year, CIL Chairman Partha S Bhattacharyya had said the company could also explore partnerships with foreign mining companies, either through equity infusion or joint ventures with an off-take contract, for exploiting overseas coal assets. In April, Peabody Energy, the world’s largest private sector coal miner, had said it was “in a broad range of preliminary discussions to explore long-term coal supplies and other possible cooperative ventures” with CIL. The CIL board, half of which now comprises independent directors, has cleared the DRHP for its initial public offering. The offer is slated to hit the market between October 18-21. “We are trying to file it (DRHP) by August 9,” an official said. Subsequently, CIL intends to send out analysts for reaching out to investors, which is likely to be followed by roadshows starting in early September.

(Source:http://www.business-standard.com/india/news/coal-india-eyes-three-overseas-acquisitions/403844/)

Illegal mining in Odisha flouts forest laws too

New Delhi, August 7, 2010: Essel Mining and Industries Ltd of the Aditya Birla group, which is allegedly involved in illegal mining in Odisha worth over `2,000 crore, not only violated environmental laws but also brazenly flouted forest laws. The connivance of State bureaucrats and Ministry of Environment and Forests is also suspected in the manner the company was granted temporary working permission (TWP) in 2009, allowing it to mine 45 lakh tonnes of ore valued at `967 crore in violation of forest laws. The company’s illegal mining to the tune of nearly `2,000 crore from its two mines at Kasia Iron and Dolomite Mines besides Jilinglota Iron and Manganese Mines (Keonjhar district) in defiance of environmental laws, had been reported earlier. It had mined in excess of the approval sought from the Odisha Pollution Control Board between 2001 and 2006. The replies to the RTI application filed by Biswajit Mohanty, environmental activist and member Transparency International, India states that the company’s violation of forest laws was first detected in May 2008. This specifically applies to the case of Jilinglota iron and manganese mines. At the stage of TWP application (temporary working permission) which allows mining only in the existing broken forest areas, the company was found operating in fresh forestlands pending clearance. The company was first warned by the forest officials and even the Deputy Director, Mines, was informed not to grant permission to lift materials. But there was no action in this regard and mining continued unabated. When the second violation was noticed in December 2008 and the DFO informed the higher officials, the Conservator of Forests, Rourkela Circle, submitted a detailed report, including video clips, photographs to the Principal Chief Conservator of Forests, Odisha. The PCCF wrote to the State Forest and Environment department on January 30, 2009 on the above violations and requested for withdrawal of recommendations made to the Centre on the renewal of TWP in favour of Essel. However, no action was taken till March 12, 2009 by the State Government. The replies to RTI applications note that the department’s senior bureaucrats chose to sit over the letter and did not inform the Centre about it. This allowed the company time to extend/renew the TWP, which would have been never granted f the report of the violations had been promptly forwarded to the MoEF.  According to experts, one of the prime conditions for extension/renewal of TWP is that the user agency should not have violated any forest laws during the period of pendency of the application for TWP.  The motive of the senior bureaucrat becomes clear considering that the pending TWP was granted to the company by the MoEF on March 2, 2009, for Jilinglota mines on 456.10 ha in Keonjhar forest division. The action of the Ministry further raised eyebrows when it went ahead to grant clearance on 186.229 ha of forestland within its lease area.  Ironically, after all this was done, the RTI reveals that in an eyewash, the State Special Secretary (Environment and Forests) wrote to the Centre on March 13, 2009, seeking “withdrawal of recommendation and not to consider the application of the user agency seeking TWP”.  Raising even more suspicions, on the MoEF, it chose to sit over the letter and responded after 45 days vide (Letter no. 8-49/2008-FC dated 15.5.2009).  Shrugging itself off, it said that the “TWP was issued after considering the recommendations of the State Government and the decisions of the Supreme Court, it will be proper to implement the Ministry’s orders and in the meantime, the State Government may send the details of the violations and their recommendations regarding gravity of the case and penalty to be imposed for such violations as done in similar cases in past.”

(Source:http://www.dailypioneer.com/274553/Illegal-mining-in-Odisha-flouts-forest-laws-too.html)

Govt may prioritise big-ticket projects for environment clearance

New Delhi, August 6, 2010: The government may prioritise mining projects for granting environment clearances in which significant investments have been made but are stuck in no mining zones. "The companies, which have made significant investments in blocks which were declared in no-go areas ... their cases could be given priority. PMO is involved, my ministry, environment ministry and Planning Commission is involved in finding a solution to the issue," Coal Minister Sriprakash Jaiswal told a news agency here. The statement of the minister comes on the day when the Prime Minister's Office has called a meeting of officials from the ministries of coal, power, environment to look at all options for getting blocked projects off the ground. The proposal forwarded by a ministerial panel to the PMO last week is part of government's efforts to find a solution to the issue of classification of coal mining belt into 'go' and 'no-go' areas which saw the ministries of coal and environment locking horns. As per such a classification, about half of the coal bearing forest area of nine coalfields has been declared no-go area, due to which, the coal ministry says, the country could see a coal shortage of 500 million tonnes in next few years. As per the proposal, sources said, a solution for coal mining projects of Vedanta group firm Hindustan Zinc, Aditya Birla Group firm Ultra Tech, Prakash Industries, which are said to have made over 50 percent of the total investments, could be considered. Hindustan Zinc, MSP Steel among others are learnt to have invested as much as Rs 2,700 crore out of the total investment of about Rs 4,200 crore in Madanpur South block jointly allocated to them in Hasdeo-Arand coal fields. "The industry has also been demanding allocation of alternate coal blocks in lieu of the blocks which have been declared in the no-zone area by the Ministry of Environment and Forests. The government has not taken any decision on it yet," a person in the know of the development said. However, with the matter now being discussed at the PMO level, Jaiswal said, "A solution is expected before Coal India initial public offer is launched." CIL is slated to launch its 4-day public offer on October 18. The issue is billed to be India's biggest till date and may raise up to Rs 15,000 crore. Last month, after PMO's intervention, a high-level inter-ministerial panel had recommended that mining be allowed in as many as 77 coal blocks that were made no-go affair by the Environment Ministry. Now, as many as 126 blocks are in the 'no-go' area against the earlier 203.

(Source:http://www.zeenews.com/news646317.html)

Mining Bill proposes to give more to affected people

New Delhi, August 5, 2010: THE government has proposed to further strengthen regulations concerning people affected by mining projects in the new draft Mining Bill being finalised by the mines ministry for approval of Parliament. Mining companies would now be asked to not only share a portion of their profit and offer free shares to those who have lost land to projects but also compensate such people with the amount of royalty they pay to states. This payment is proposed to be made mandatory even for mining operations which are nonfunctional or running losses. “The mines ministry has proposed that project affected people should also be compensated with amount equivalent to the annual royalty paid by the miners to state governments. As royalty is a substantial contribution to states, the compensation would help in improving the condition of project affected families and reduce their opposition to projects,” said an official of mining ministry who did not wish to be identified. As per an earlier proposal, the government intended to offer 26% equity in mining companies to project affected persons. It has now been decided that companies will have to share 26% profits of their projects with those whose land is acquired and also offer one free share to each member of a family of land losers. The proposal on additional compensation equivalent to royalty has also been added now. The proposal of the mines ministry will now be vetted by a Group of Minister (GoM) headed by finance minister Pranab Mukherjee. The GoM had asked the ministry to rework the draft mining legislation and give it “more teeth” before it its put up for Parliamentary approval. “The GoM may meet once again next week, before the Bill is sent to cabinet for its approval”, said the official. The equity sharing provision in the draft was earlier opposed fiercely by the industry. The government decided to change the provision after this in the interest of the mining industry. The new bill seeks to expedite grant of mineral concessions in an expeditious and transparent manner, besides attracting investments in the sector. Investment worth lakhs of crores of rupees has been delayed because of land owners’ resistance to part with their assets.

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

Mining is not Goa’s lifeline: Daya

Panjim, August 4, 2010:  Throwing an open challenge before the House, Aldona MLA Dayanand Narvekar on Wednesday maintained he could prove it was industry and not mining that was the backbone of the State. Speaking on the basis of information gathered by him, he articulated mining has never been fetching the desired revenue in the absence of monitoring and sound legislations. It is only after royalty was charged on ad valorem basis the State managed to get some substantial revenue in all these years, he stated. Reading out some of the 31 conditions of the Central Environment Ministry for operation of mines, he said not a single mine would qualify to operate. He said if the Government was serious in implementing these regulations the State would easily earn revenue to the tune of Rs 1,000 crore per annum. Narvekar said the State needs to draft some strong legislations at the local level to tighten control over haphazard mining, but everyone here is at the mercy of the mine owners. All of us can sit together and discuss the subject, he stated.  But, the legislator pointed out it appeared the Central Empowered Committee (CEC) had the last word on the State’s mining. Like we used to fear the Portuguese rule in the same way everybody makes way for this committee, he added. Narvekar said Goa had a small area of 3,702 square kilometer, but, shockingly, encroachment on forest land, largely for mining, is more compared to Bihar. We say in Bihar there is jungle ‘raj’; let us look in our own backyard, he stated. Talking on the basis of figures, he stated around 5,000 ha of forest land has been destroyed and before the situation could get any worse the Government has to seriously look into this. “Where is the catchment area for Mhadei? Look at the amount of mining in this area. Why don’t you stand up to this?”, he questioned.  He said 62 mines are working without air and water clearances. Serve notices to these mines and close them if they don’t comply, he asserted.

(Source:http://oheraldo.in/news/Local%20News/Mining-is-not-Goa-rsquo-s-lifeline-Daya/39575.html)

Mining at Khandadhar water fall not to affect ecology: Orissa

Bhubaneswar, August 04, 2010: Ruling out possibility of damages to the state's tallest water fall at Khandadhar in Sundargarh district, Orissa government today said mining activities would in no way affect the local ecology. This was stated by Steel and Mines minister Raghunath Mohanty while replying a question on the state  government's move to hand over iron ore reserve at Khandadhar to South Korean steel major, Posco.  "There is no possibility of water fall being affected due to mining activities at Khandadhar," Mohanty told the house while the state government had already recommended Posco-India's name for prospecting license (PL) on 2500 hectare of land in the iron rich belt. Though the matter of handing over iron ore reserve at Khandadhar was subjudice, the state government was determined to explore the mineral deposited near the water fall. Recently, Orissa High Court while disposing a case, asked the state government to reconsider its decision to recommend Posco-India's name for PL over Khandadhar iron ore reserve. Stating that mining would begin after a proper environment impact assessment, the minister said an environment management plan would be in place before that. Adequate steps would be taken to maintain ecological balance in the area which was full of forest and hills, the minister said. The water fall at Khandadhar was considered as tallest fall in the state with stream of water falling above 244 meters. On the possibility of mining activities affecting the local tribals who depend on the water fall for their livlihood, the minister said that all the people likely to be hit by the mining activities would be rehabilitated under the provisions of Rehabilitation and Resettlement Policy, 2006.

(Source: Hindustantimes.com)

POSCO war zone - Eco investigation is on

Wednesday, 04 Aug 2010

Mr Jairam Ramesh union environment and forests minister said that the alleged violation of Forest Rights Act and environmental norms by mining company Vedanta Resources and Korean steel maker POSCO in Orissa is being investigated by a four member expert group.  Replying to supplementaries during question hour in Rajya Sabha, the minister said the expert group is currently in Orissa looking at all cases of alleged violation by Vedanta Co. He said that “Any violation of the Forest Act will not be spared adding that the final decision will be taken after the expert group submits its report.” Mr Ramesh said that “We will take a final call after report of the expert group is received.” While Vedanta Co is being investigated by the ministry for alleged violation of this guideline, POSCO is under investigation for alleged violation of forest act in acquisition of land for the mega project.

Regulatory system to curb illegal mining

New Delhi, August 3, 2010: The Centre on Monday said an effective regulatory system would be put in place soon to tackle illegal mining in the country. Replying to queries on illegal mining in Andhra Pradesh, Karnataka and Orissa during the Question Hour in Rajya Sabha, Minister for Environment and Forests Jairam Ramesh said, “The existing regulatory system is not effective enough to tackle illegal mining.” “A GoM has been set up and two meetings have been held. The report of the GoM is being finalised. One of the terms of reference of the GoM is to see how to put in place an effective regulatory system, both at the Central-level and at the state-level to deal with illegal mining”. To a query, Ramesh replied that Karnataka Chief Minister had assured him of strict action against those involved in illegal mining. He said that he had written a letter to Karnataka Chief Minister to deal with the issue. Ramesh pointed out that his Ministry has kept under suspension four projects, including three power projects in Andhra Pradesh, as they violated Forest Conservation Act. The minister said his ministry has sent a four-member expert group to study Vedanta group’s alleged environmental violation in Orissa.

(Source:http://expressbuzz.com/topic/regulatory-system-to-curb-illegal-mining/194955.html)

CONTROL ON MINING ACTIVITIES

Goa stops illegal iron ore exports

Mandatory For Vessels To Take Nod From Mining Department Before Leaving State

Panaji, August 2, 2010:  THE Goa government has decided to freeze mining exports of all companies found selling iron ore illegally.  “We have asked for total export data of various companies. This will be tallied to royalties paid. If any company is found selling ore illegally, their vessels will not be allowed to leave port unless previous dues are cleared,” said chief minister Digambar Kamat. The state government has also made it mandatory for iron ore carrying vessels to take clearance from the state mining department before leaving berth. “Captain of ports will check if royalties are paid on time. If any payment is due, or a mismatch in previous years are found, then ore from that particular company will not be allowed to leave the state", added Mr Kamat as opposition BJP blamed government of covertly helping illegal mining in the sate.  Rising demand for Goa's low grade ore in China has led to rampant illegal mining in the state. So even as royalty collections increased many-fold from 36 crore in 2007-08 to over 166 crore as of April this year, illegal mining is also said to be on the rise. In 2008-09 alone total Goan iron ore production was over 38 MT, while the official export figures stands at 32.72 MT; showing a mismatch of 5.3 MT. Official documents show that in the past five years more than 8 million tonnes (MT) of iron ore has been unlawfully exported from Goa. This means a loss of royalty to the tune of over 70 crore.  To have some control on the mining activities here, the ministry of environment and forests (MoEF) in February put a moratorium on granting more mining licences - till a solution is found to curb illegal extraction. Even then iron ore produce has increased to 46.22MT as of April this year, "Goan iron ore cannot be sold in India, all of it is meant for exports. We are working to get a mechanism to find out who is selling ore illegally", secretary, department of mining Rajiv Yaduvanshi had earlier told ET. An estimate committee report tabled on Friday blames the government for failure on procedure for accounting mineral activity in the state. Excise department procedures must be followed for accounting total production, it says. The committee has now asked the government to assign people on a one-person-per mine basis, to monitor the actual extraction tonnage of iron ore on a daily basis. This means over a hundred people stationed only to monitor operative mines, whist many more will track illegalities many of which operate inside private forests.

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