- Mines dept raises questions over assessment SUDHIR KUMAR MISHRA

Iron ore mines in Chiria, Jamshedpur. Telegraph picture

Ranchi, Feb. 23: The state mines and geology department has blamed central agencies such as Geological Survey of India (GSI), Indian Bureau of Mines (IBM) and Mineral Exploration Corporation of India Limited (MECL) for undermining the interests of Jharkhand.

Officials of the department feel that different exploration agencies are not adopting uniform standards for assessing the quality and the quantum of mineral reserves in the state. The officials are not even willing to listen to the justifications offered by the experts.

According to the minutes of the Eighth Jharkhand State Geological Programme board meeting, the IBM representative failed to give satisfactory replies when the then department secretary, K.K. Khandelwal, asked him why the quantum of mineral reserves usually decreased in comparison with the original survey report.

The MECL, too, reportedly failed to justify why the specific density of haematite (iron ore) available in the state is considered as 3.5. The specific density of good quality haematite used in standard steel plants ought to be between 4 and 4.5.

Both these objections are of very serious nature considering the perception that the mafia, in connivance with corrupt officials, purportedly downgrade the quality and quantum of mineral reserves in different areas of the state. Thereafter, they avail of huge mineral reserves at throwaway prices and make money through illegal activities.

Senior geological scientist P. Tiru, who represented IBM at the meeting, however, argued that the quantum of mineral reserves projected in the general survey report and the detailed survey report usually vary. The area of influence, too, is very important.

The detailed surveys are carried out either by the GSI or companies involved in mining operations. The “required qualified person” prepares the mining plan. The IBM, after spot inspection and completing other necessary procedures, grants certificates.

“The total area never becomes the mainland zone. The quantum of reserves also varies from pit to pit. I tried my best to explain these things to the department officials but they were not willing to buy the explanations. Moreover, our organisation is not involved in mining explorations. Our prime responsibility is to ensure execution of the provision of Mineral Conservation Development Rules and Environmental Impact Assessment,” Tiru added.

A senior scientist of MECL argued that the specific density of haematite lumps and fines is bound to vary. The average specific density of iron ore found in a particular area is determined on the basis of sample analysis.

Interestingly, at the meeting, the GSI had complained that the mining explorations being carried out by it were never published in the gazette.

http://www.telegraphindia.com/1090224/jsp/jharkhand/story_10581391.jsp

Orissa to keep Sasubohumali bauxite mines with OMC

Monday, Feb 23, 2009

PTI reported that the Orissa government has decided to keep Sasubohumali bauxite deposits with the state owned Orissa Mining Corporation.

Official sources said that Sasubohumali bauxite mines have a reserve of about 81 million tonne of the metallic ore, having an average grade of 40.38% of aluminium oxide and 2.63% of sillicon dioxide.

While a large number of firms were eyeing Sasubohumali, Mr Naveen Patnaik CM of Orissa had asked the steel and mines department to recommend OMC's name in order to avail prospecting license as well as mining lease.

http://www.yourminingnews.com/news_item.php?newsID=24798

ECL to invest Rs 250 cr in Rajmahal mines

24 Feb 2009, 0240 hrs IST, ET Bureau

Eastern Coalfileds Ltd (ECL) has decided to invest about Rs 250 crore in expanding production capacity at its Rajmahal mines in Jharkhand from 11

million tonnes to 17 million tonnes. Bulk of the increased volume is likely to be consumed by NTPC’s power generation stations at Farakka and Kahelgaon.

“We are in the process of receiving various approvals, acquiring additional land and are in touch with NTPC since they need to enhance their coal handling capacity at Rajmahal which is equiped to handle about 11 mt of coal a year.

NTPC will also need to invest in doubling the existing line from Kahelgaon to Farakka. Currently, NTPC’s Kahelgaon generating station consumes 24,000 tonnes per day, while Farakka consumes about 15,000 tonnes per day,” Mr S Chakrabarti, chairman and managing director, ECL told reporters at Rajmahal on Saturday.

“The investment of Rs 250 crore will mainly be done for over burden removal, while coal extraction from these new areas will be outsourced. Rajmahal hopes to touch a total production level of 17 mt by 2012,” he added.

http://economictimes.indiatimes.com/News/News-By-Industry/Indl-Goods--Svs/Metals--Mining/ECL-to-invest-Rs-250-cr-in-Rajmahal-mines/articleshow/4180026.cms

Manak: Cancel lease of coal mines

Posted On Monday, February 23, 2009By Our Staff Reporter
Bhopal, Feb 23:
State Congress chief spokesman Manak Agarwal stated that prior to blaming Central government for shortage of coal Chief Minister Shivraj Singh Chouhan should do introspection and reason out that due to which temptation he has given two mammoth coal mines to JP Associates and Amabani Group on lease.
He asked that on what grounds Chief Minister has given famous coal production area to JP Cement and Ambani. In a press release Agarwal has demanded from the Chief Minister that lease of both the mines should be cancelled. Agarwal has levelled allegation that in the transfer of these mines there has been secret cash deal worth crores of rupees.
He regretted that by giving mines to industrialists of other states in a hurry the Chief Minister has betrayed the State. Agarwal reasoned that the State government cannot extract coal from mines therefore it does not have right to sell area abundant in coal or to give it on lease. He further said that by giving area abundant in coal on lease the Chief Minister has deceived the Central government and he has mislead citizens of the State also.

http://www.centralchronicle.com/viewnews.asp?articleID=923

River sand mining poses eco threat

S V Upendra Charya

River sand mining has been a critical environmental issue in India over the years as it seriously affects the eco-system of riparian regions surrounding major and minor rivers.

“China banned river sand mining in Poyang, the country’s largest freshwater lake to protect its aquatic environment. The ban is considered significant in protecting nearly one million migratory birds that make their habitat there,” according to recent reports. In India too, such bans have often been imposed on sand mining at ecologically endangered river basins. The big difference, however, ban or no ban, is that from most of the river beds, dredging is done relentlessly because of high demand for construction sand in recent years. River sand mining has been a critical environmental issue in India over the years as it seriously affects the eco-system of riparian regions surrounding major and minor rivers.

The Karnataka government has recently been directed by the divisional bench of the High Court to prohibit sand mining in a one-kilometre radius of bridges across the rivers in the state.

Rural areas worst affected

The arid and drought-prone rural regions without perennial irrigation sources are the worst-hit by the illegal and indiscriminate digging of river beds for sand.

Gowribidanur taluk in Chikkaballapur rural district is one such backward region badly affected by sand mining which has been going on along the course of the Uttara Pinakini river over the past several years.

According to a research study on Effect of Sand Mining on Ground Water Depletion in Karnataka by an eminent research group of professors from the University of Agricultural Sciences, there are negative externalities due to sand mining along the river Uttara Pinakini in Gowribidnur taluk.

According to official estimates, there are 216 villages, 18, 000 irrigation wells and a large number of village tanks in Gowribidanur taluk where about 15,000 bore wells were sunk in the past 25 years.

Local farmers complain that 75 per cent of these water sources have gone dry because sand mining started in the taluk some ten years ago.

http://www.deccanherald.com/Content/Feb242009/environmet20090223120245.asp

‘Goa’s mining export revenue will fall 50 percent’

Feb 23rd, 2009 | By Sindh Today | Category: India

Panaji, Feb 23 (IANS) Goa’s Rs.60-billion (Rs.6,000-crore) low-grade iron ore exports are expected to fall 50 percent this fiscal, an industry leader said here Monday.

While exports this year have shown a marginal drop in terms of volumes, the actual revenue earned has shrunk considerably, Shivanand Salgaocar, president of the Mineral Ore Foundation (MOF), told reporters.

“The prices for low-grade iron ore plummeted during the second half of 2008. Right now, we are seeing a steady renewal of demand for low-grade iron ore, but at virtually half the original rates,” he said.

Salgaonkar added that the economic recession in Japan has hit India’s mining industry hard.

“The recession in Japan is particularly severe. Japan has cut down on its steel production by nearly 11 million tonnes,” he said.

Salgaocar, who is also the joint managing director of VM Salgaocar and Brothers Pvt Ltd, refused to comment on the issue of illegal mining, which anti-mining activists allege is rampant in Goa’s mining belt.

http://www.sindhtoday.net/south-asia/67327.htm

POSCO India Chief Soung Sik Cho left Orissa, returns to South Korea

Monday, February 23, 2009

Report by Dipti Ranjan Kanungo, Bhubaneswar: Mr. Soung-Sik Cho the Executive Vice President and Managing Director of POSCO returned from Orissa. Global steel giant POSCO on 22nd June 2005 had signed a Memorandum of Understanding (MoU) with the Government of Orissa for construction of a steel plant near Paradeep Port in Jagatsinghpur district as well as development of iron ore mines in the state. This was the first step towards the construction of a steel plant in Orissa. In his period Khandadhar Iron mines lease has been recommended but failed to acquire 4400 Acres of land at Kujanga area under Jagatsinghpur district due to mass protest of the peoples .

The MoU was signed by Mr. Soung-Sik Cho, Executive Vice President of POSCO and Mr. Bhaskar Chatterjee, the then Principal Secretary of the Government of Orissa, with the participation of Mr. Ku-Taek Lee, Chairman and CEO of POSCO and Mr. Naveen Patnaik, Chief Minister of Orissa.

According to the MoU, POSCO will build a 3 million tonne capacity steel plant, blast furnace or Finex route, during the first phase in Paradeep, Orissa between 2007 and 2010 and expand the final production volume to 12 million tonnes. The investment proposed is to the tune of US$12 billion, including an initial investment of US$ 3 billion during the first phase.

The Government of Orissa will grant POSCO mining lease rights for 30 years that will ensure an adequate supply of 600 million tonnes of iron ore to POSCO. This in turn will ensure the competitive operations of the POSCO India steel plant. The government will also promote the construction plan for railways, roads, industrial water and electricity keeping up with the steelwork construction plan of POSCO.

India will derive significant benefits from the project once it is functional, including job creation of 48,000 jobs in the region and 467,000 man years of employment during the construction phase. Foreign exchange inflows of US$23 billion are projected, with taxes and royalty incomes of US$20.3 billion for the central government and US$5.1 billion for the Orissa government. POSCO's Indian steel plant project is a significant part of the company's strategy to enhance its global competitiveness and is seen as a mutual win-win initiative for both the parties involved.

http://www.orissadiary.com/ShowBussinessNews.asp?id=11010

Metals & mining to power Bolivia to development

2009-02-23 22:00:00

NEW DELHI: The world knows Bolivia as a country reeling under severe financial woes and raved by civil wars. Bolivia’s only claim to fame apart from the revolution is its rich mineral stocks.

But, Bolivia’s pathetic financial conditions are set to change if the world’s new found love for lithium continues.

Bolivia is the only country in the world which has huge reserves of lithium. And there is big demand for lithium, a scarce mineral which is essential for the production of environmentally-friendly electric cars.

Bolivia has the world’s largest reserves of the mineral, at least 800 million tonnes. With the recent change in the constitution, mining of lithium from Bolivia will not be an easy task any more for foreign companies.

President Evo Morales has been setting conditions in the recent past. Foreign companies have been stripping the country of its natural riches for far too long, while Bolivia’s people have received little in return. This time, Bolivia must get a fair price.

Lithium is the lightest metal in existence. It does not occur in nature in its pure form but in a variety of salt compounds. It is widely used in the nuclear industry because of its ability to withstand very high temperatures.

Lithium reacts violently with water, releasing hydrogen gas. This characteristic makes it a useful fuel for torpedoes.

The United States extracts lithium for this purpose in California and Nevada but the production figures are classified.

One of its compounds, lithium carbonate, is used in western psychiatry as a treatment for bipolar disorder, although it is known to have serious side effects.

The languishing car industry is pinning its hopes on new low-CO2 technologies centred on powerful lithium-ion batteries as the main energy source.

Lithium-ion batteries are expensive to produce but there is growing interest in their use since they allow high energy concentrations: a lot more energy can be stored in the same space.

You need a whole trunkful of conventional batteries to power an electric car, while the equivalent in lithium-ion batteries can be stored behind the back seat or under the floor.

There are only a few places where lithium can be mined in significant quantities: the mountains of Tibet, Chile and Argentina. However, the largest reserve by far is found under salt flats in Bolivia.

The Salar de Uyuni is the world’s largest salt flat. It covers an area of 10,582 square kilometres at 3,650 metres above sea level, in the Potosí department in the southwest of the country.

Once a prosperous region known for its mineral riches, Potosí has fallen on hard times. Now the highland region is again a gold mine. The price of the new gold, lithium is expected to climb even higher.

Some see Bolivia as the Saudi Arabia of Latin America: the country’s lithium reserves are estimated to make up around 40 per cent of the global supply.

Potosí region was so rich in minerals at the time of the Spanish conquest in 1545 that one could see veins of silver with the naked eye. The indigenous inhabitants were forced to work in the mines. The local population did not benefit since the silver was shipped to Spain.

After independence in 1825 foreign companies continued to ransack the region’s mineral wealth with the help of the Bolivian government which was controlled by a white upper class.

The modern electric car uses lithium batteries. The development of the electric car is a growing industry since the vehicle helps to meet environmental targets and oil reserves are declining and will eventually run out.

Experts believe that lithium will become an important source of fuel in the future. In 2003, lithium traded for $350 per tonne; now the price is $3000.

http://www.commodityonline.com/news/Metals--mining-to-power-Bolivia-to-development-15422-3-1.html

‘Green Bench’ to hear mining cases today

Express News Service

First Published : 24 Feb 2009 04:35:00 AM IST

Last Updated : 24 Feb 2009 09:23:07 AM IST

BANGALORE: The newly constituted Green Bench of the High Court on February 24, 2009, will hear a batch of public interest litigations, which challenged the grant of mining lease in the reserved forest area.

A division bench headed by Chief Justice P D Dinakaran will hear the 22 public interest litigations regarding environmental hazard issue and grant of mining lease in the forest limits. The state government is likely to submit the Lokayukta report on illegal mining in the state.

In an earlier hearing, the court observed that based on Lokayukta report it would hear the mining related cases and constitute a green bench exclusively to hear the cases related to mining and forest.

After the High Court order, the registry was posted at all the cases before the Chief Justice bench. Meanwhile, the court had also directed the circuit benches that if any fresh petition is filed on environmental issue, it has to be transferred to Principal Bench.

It may be recalled that in a 279-page report submitted to the State Government, Lokayukta found “large-scale illegal mining being carried out in the state in connivance with Revenue and Mining officials”.

One of the PIL filed by Uttara Kannada District Consumers and Citizens’ Welfare Association claimed that illegal and irregular parking of ore-laden trucks have done irreparable damage to state highways and NH-17. Moreover, the marine life in Karwar has been endangered owing to the illegal storage and dumping of ore at Karwar harbour.

These factors among others spurred the High Court to set up the Green Bench.

http://www.expressbuzz.com/edition/story.aspx?Title=%E2%80%98Green+Bench%E2%80%99+to+hear+mining+cases+today&artid=LPZiZnvoefs=&SectionID=Qz/kHVp9tEs=&MainSectionID=Qz/kHVp9tEs=&SEO=Uttara,+Kannada,+District+,Consumers+,mining,+leas&SectionName=UOaHCPTTmuP3XGzZRCAUTQ==

Tatas may drop another Bengal plan

February 24, 2009 02:14 IST

Less than five months after Tata Motors [Get Quote] relocated its Nano project from West Bengal to Gujarat over land issues, another Tata group company, Tata Metaliks [Get Quote], is reviewing its expansion project in the state on similar grounds.

The West Bengal Industrial Development Corporation (WBIDC), which has been acquiring land in Kharagpur for Tata Metaliks' diversification project, has already initiated dialogue with the company. But land prices remain a contentious issue.

Subrata Gupta, managing director, WBIDC, said that land prices in the last three years have doubled. Prices, which were around Rs 3.5-4 lakh an acre three years ago when WBIDC started acquiring land, have now doubled to Rs 8 lakh.

Gupta said the company has been asked to pay a higher price. "Tata Metaliks has sought 15 days to respond," he said, adding that WBIDC officials had recently met a Tata Metaliks team after the company expressed its intent of withdrawing the project from the state.

Harsh K Jha, managing director, Tata Metaliks, confirmed that the company has sought time, but did not elaborate on the details. However, the company's board has decided not to wait for the land indefinitely. The company has already waited for four long years to get the required land, Jha said.

West Bengal Chief Minister Buddhadeb Bhattacharjee had promised Tata Metaliks on February 26, 2005, that the state would allocate land on a "priority basis". The company had applied for land on March 15, 2005.

Tata Metaliks, a pig iron producer, had initially sought 500 acres for its diversification into billets, but the land requirement was later scaled down to around 300 acres as contiguous land was not available.

Gupta said more than 150 acres has been acquired by WBIDC and the company has made an initial payment of Rs 9 crore for the land.

He also added that WBIDC would go ahead with land acquisition irrespective of the Tata Metaliks' decision. "Even if they do not set up the project, we will develop an industrial park," said Gupta.

WBIDC has decided not to acquire land for individual companies. Instead, it will set up industrial parks where companies will become anchor investors in a bid to maximise employment.

Tata Metaliks has also held discussions with the Karnataka government for an iron ore mining lease and for setting up of a plant. A high-level clearance committee of the state has already given approval for a steel plant in Haveri district.

At present, Tata Metaliks has pig iron facilities at Kharagpur in West Bengal and Redi in Maharashtra. The company has an annual capacity of 650,000 tonnes. Even though the diversification plan at Kharagpur is under the cloud, the company has lined up expansion of the existing plant. A sinter plant is being set up which will be commissioned in 2010.

http://inhome.rediff.com/money/2009/feb/24tatas-may-drop-another-bengal-plan.htm

Gujarat garners mineral royalty of Rs 281 crore

BS Reporter / Ahmedabad February 23, 2009, 18:07 IST

Gujarat government has collected Rs. 281.80 crore as mineral royalty from mining industry in the state for the nine months upto December 2008. However, the royalty income in 2008-09 is tad lower as compared to royalty collected in 2007-08.

"Gujarat government's income from mineral royalty stood at Rs 363.43 crore by the end of fiscal 2007-08. As on December 2008, Gujarat has registered royalty income of Rs. 281.80 crore", Gujarat government said in a written reply in the state assembly. Royalty income is likely to increase by the end of fiscal 2008-09.

Gujarat is a mineral rich state both in terms of reserves and production. The sector contributes 2.9 per cent of the State Gross Domestic Product (GSDP). Gujarat government has been constantly trying to control illegal mining of minerals in the state.

Data provided by the government show that the government officials have recovered Rs. 10.18 crore as on December 2009 by surprise checks and searches. In 2007-08, total 7,635 cases were filed agaist those indulging in illegal mining and Rs. 14.88 crore were collected from them.

Apart from a panel of chartered accountants to scrutinise mine leases and records to control royalty evasion, government has also set up a special cell to detect evasion of royalty.

http://www.business-standard.com/india/news/gujarat-garners-mineral-royalty-rs-281-crore/18/18/55589/on

Mining – International

Mining projects move ahead

Plans for silver and uranium mining are continuing despite plunging prices and lukewarm demand.

By Steve Raabe
The Denver Post

Posted: 02/24/2009 12:30:00 AM MST

A handful of companies with proposed mining projects in Colorado plan to move ahead in the face of plunging commodity prices and tepid demand for minerals.

Among them are a southwestern Colorado silver mine and a Fremont County uranium project, both of which eventually could rank among the nation's largest.

Hecla Mining is exploring for silver in its recently acquired San Juan project near Creede.

Coeur d'Alene, Idaho-based Hecla said its San Juan holdings could have as much as 100 million ounces of silver, worth about $1.4 billion at current prices of $14.45 an ounce if all the silver could be recovered.

Silver rose to more than $20 an ounce last spring but fell below $9 late last year before recently rebounding.

"We see tremendous opportunity to explore and develop" at San Juan, said Phillips Baker, Hecla's chief executive, in a presentation Monday to the National Western Mining Conference in Denver.

Black Range Minerals also sees potential in Colorado for uranium mining at its Tallahassee Creek project west of Cañon City, despite a recent plunge in prices.

Uranium hit a record high of $137 a pound in 2007 but now trades at about $47.

Black Range's mining claims at the project, combined with adjacent claims it is seeking to purchase, would contain about 100 million pounds of uranium, potentially making it the third-largest project in the U.S., said Mike Haynes, managing director of Black Range.

In the past three months, two other uranium mines in Colorado have temporarily shut down, one proposed project has been scrapped and another postponed because of the decline in prices.

Haynes noted that since 1954, at least five previous attempts to mine uranium near the Tallahassee Creek project have failed because of price collapses for the volatile commodity.

Gold prices remain strong, but the Cash gold mine west of Boulder recently suspended operations and laid off about 35 workers.

The mine's owner, Mount Royale Ventures, has been unable to obtain financing to continue operating, Matt Collins, general manager of the project, said at the mining conference.

Over the past two years, the Cash mine produced 1,500 ounces of gold and 10,000 ounces of silver, Collins said.

http://www.denverpost.com/headlines/ci_11769921

Illegal operators slip off dragnet as DENR operatives seize 151 pieces of illegal lumber

by Eric Herson F. Gallego

Bunawan, Agusan Del Sur (23 February) -- Illegal operators have evaded a dragnet as the DENR operatives swooped down on a lair of illegal sawmills at a remote village in Bunawan, Agusan del Sur recently and confiscated about 151 pieces of lauan lumber with a total volume of 1,081 board feet.

Bunawan CENR Officer Ulpiano D.Dasilao said the operators of illegal small sawmills have scampered away to different directions after sensing the coming of the DENR operatives in Barangay Libertad in this town.

Reports said the operators have also brought with them the parts and portable apparatus that they have used in milling the logs.

It was the first major accomplishment of CENRO Dasilao over the past three weeks of anti-illegal logging and mining operation since he assumed his new assignment in that area.

Dasilao said that rounding up the illegal saw mill operators in his area may be a big challenge to consider but nevertheless, he is determined to take the risk of protecting and preserving the natural resources and the environment.

The DENR have so far dismantled at least 39 illegal operation of portable sawmills which were clandestinely operating in that town. These illegal operators usually serve as destination points of few pieces of logs being brought to them by poachers through the river.

Dasilao said the latest confiscation followed weeks of surveillance in the area by the military-supported DENR operatives in cooperation with the local government officials.

Using portable band-sawmill apparatus, these illegally-cut logs are sawn into lumber, squeezed into closed-vans and transported to the different major destination points which includes the cities of Davao, Butuan and Cagayan de Oro.

Reports from undisclosed sources also revealed that these group of operators are well-organized that they can easily detect DENR surveillance operation. These operators, the report said, could easily dismantle their portable apparatus and hide them from the authorities or go to other locations to set up another secret operation there.

Dasilao said the DENR operatives are finding it difficult to locate these group of illegal operators. Nevertheless, he said they "will continue their hot pursuit operation against them until these bunch of "criminals of our natural resources" are brought before the bars of justice."

He said that the illegal operators are beginning to feel the pressure considering the "death notes" and warning that they are sending upon the DENR officials to "slow down on the campaign."

Dasilao said the top management of the DENR is expecting results from the on-going operation in his area of responsibility.

DENR Regional Executive Director Edilberto S. Buiser has reshuffled some of his key officers at the front lines particularly in Agusan del Sur and Agusan del Norte early this month in his attempt to further boost the campaign on illegal logging, timber poaching and illegal small-scale mining.

http://www.pia.gov.ph/default.asp?m=12&r=&y=&mo=&fi=p090223.htm&no=65

Engelinvest expands mining operations

The company has acquired 72 exploration and mining concessions in Tanzania.

Yaakov Engel's private real estate and mining company, EngelInvest Group Ltd., is expanding its mining exploration activity. The company has acquired 72 gold, copper, and other mineral exploration and mining concessions in Tanzania through Elenilto Investments Ltd. The local concession owners who sold the rights have some profit-sharing rights to these concessions.

Following the acquisitions, EngelInvest owns exploration and mining license across a 7,500-square kilometer area in Tanzania, and plans to invest millions of dollars to complete detailed geological surveys of the concessions and buy mining equipment.

EngelInvest has already carried out preliminary geological and geophysical surveys of the sites, as well as initial aerial surveys, which indicated large concentrations of gold, copper, and other minerals.

EngelInvest operates with local partners, which are responsible for relations with the local authorities.

EngelInvest owns copper, chrome, zinc, gold, diamonds, iron and other mineral ores in Israel, Albania, Romania, Ghana, Tanzania, Congo, Liberia, and Ethiopia. The company develops real estate projects in India, Vietnam, and Russia.

http://www.globes.co.il/serveen/globes/DocView.asp?did=1000428166&fid=1725

China, India show interest in Aussie mining assets

COMMODITIES TALK WITH HANIM ADNAN

THE current alarming rise in the stockpiles of major commodities in the world has not deterred merger and acquisition (M&A) interest, especially from China and India, in the huge mining assets in Australia, Africa and Latin America.

Australia’s debt-laden mining assets of Rio Tinto and Oz Minerals are being chased by Aluminium Corp of China (Chinalco) and Minmetals Corp, also from China.

Wuhan Iron & Steel Group and Jiangsu Shagang Group, China’s third- and fifth-largest steelmakers, are also said to be shopping for stakes in iron ore mining companies in Australia and Brazil.

India’s largest iron ore producer NMDC has also shown interest in undertaking a joint-venture greenfield mining project in Africa while eyeing majority stakes in mining properties in Armenia, Brazil and Australia.

Binani Zinc Ltd, India’s second largest zinc producer, is planning to acquire mines in Iran and Australia to support its smelter operations in Kerala.

So why does the quest for mining assets in aluminium, copper and iron ore continue to persist despite these commodities’ high stockpiles in the warehouses of the London Metal Exchange?

Aluminium stockpiles have hit a record 3.15 million tonnes, up 80% from three months ago while those for copper have surged to 545,600 tonnes, the highest level in five years.

The answer is simple - the company that holds the biggest mining assets will have the upper hand in influencing the global price of commodities, be it iron ore, aluminium, or copper.

The key is to hold sustainable long-term supply of the commodities.

It was reported recently that China, the world’s top metals (alumina, copper, bauxite, zircon and nickel) importer, acquired US$22bil worth of commodity assets so far this year after a 70% drop in metals and oils since July ended a six-year boom in raw materials.

Also, bear in mind that China still needs more commodities to fuel its economic growth despite the current slowdown.

At the same time, Indian commodity giants are also no newcomers to the M&A scene in Western countries.

To date, the most talked-about M&A in the steel sector is the US$23bil merger between the two largest steel groups, India-based Mittal and Arcelor in late 2006, resulting in the industry’s first global steel giant.

Arcelor-Mittal accounts for about 10% of the world steel output, which is about three times that of its nearest competitor Nippon Steel.

Another significant transaction is the acquisition of Corus, the world’s ninth largest steel maker by India-based Tata Steel, the world’s 56th largest. Corus is strong in the high-end European steel market while Tata is a low-cost steel producer in India.

On the home front, Malaysia may be facing huge palm oil stockpiles at 1.83 million tonnes but cash-rich local plantation groups like Sime Darby and Kuala Lumpur Kepong are keenly pursuing acquisitions of greenfields or struggling plantation companies either in Malaysia or Indonesia.

Early last year, Malaysia Smelting Corp Bhd announced its intention to invest about US$100mil for the acquisition of gold mining assets in Australia and Indonesia as well as coal mines in Indonesia.

Hanim Adnan is assistant editor at The Star. While writing this piece, she was reminded of the Scottish proverb,“Get what you can and keep what you have; that’s the way to get rich.”

http://biz.thestar.com.my/news/story.asp?file=/2009/2/24/business/3327683&sec=business

Ausenco hopeful of mining recovery

Jamie Freed

February 24, 2009 - 7:11PM

Engineering group Ausenco has had 30% of its mining work deferred or cancelled as a result of lower metals prices, but it is hopeful of regaining some of the contracts soon.

The company reported a record net profit of $56.3 million, up from $41.5 million the previous year, and declared a 13.5 cents fully-franked dividend, but its shares plunged 45 cents to $2.08 on worries about its outlook given it had traded strongly ahead of the results.

''There are tough operating conditions, but we are still of the view that Ausenco is better positioned than most to ride it out,'' said an ABN Amro Morgans analyst, Roger Leaning.

Ausenco's chief executive, Zimi Meka, said its minerals contracting book had reduced to $US3.5 billion from $US5 billion by the end of the year as companies like OZ Minerals and Rio Tinto deferred or cancelled projects.

Ausenco is hopeful of regaining the contracts on OZ's Martabe operation set to be sold and its Sepon expansion, which could be resumed by China's Minmetals, the company seeking to take over OZ Minerals. Ausenco already has a contract with Minmetals on a copper project in Peru.

Vale recently bought the Corumba iron ore project previously owned by Rio and may decide to resume the expansion in light of the high-quality lump ore at the site.

Ausenco also has contracts with Newmont Mining, Barrick Gold and Newcrest Mining in the gold sector, which is outperforming other minerals.

Its minerals division overshadows its smaller infrastructure, environmental, energy and oil and gas divisions, but Mr Meka said his company was looking to reduce its dependence on mining, possibly through acquisitions.

Meanwhile, mining plant builder Sedgman reported a $7.1 million statutory half-year loss after writedowns on its Intermet business but its earnings before interest, taxes, depreciation and amortisation were $21 million. It declared a fully-franked interim of 3 cents per share.

It said it was well positioned to secure new coal contracts on major projects in Australia and overseas.

http://business.theage.com.au/business/ausenco-hopeful-of-mining-recovery-20090224-8gql.html

In Virginia, the Appeal of Uranium Mining

By Rex Bowman / Richmond Monday, Feb. 23, 2009

Boart Longyear employee Joey Davis prepares to label a box of the first uranium cores to come out of the ground in 25 years at Coles Hill, Va., in Pittsylvania County on Tuesday, Dec. 18, 2007.

Rebecca Blanton / The Register and Bee / AP

Virginia's scenic, rolling Piedmont is rich in presidential history — Thomas Jefferson, James Madison and James Monroe all made their homes there. The land is also rich in uranium. But the state has had a moratorium on mining the nuclear fuel since 1982. Now, a group of landowners in rural Pittsylvania County is looking to make a fortune by digging up the ore, and, with talk of nuclear energy making a comeback following last summer's sky-high gas prices, the state is thinking about giving its blessing. The Virginia Commission on Coal and Energy is preparing to undertake a study on whether uranium can be extracted without contaminating the air or polluting the water.

The stakes are huge. The 30 or so landowners who formed Virginia Uranium Inc. say the two deposits they want to mine contain up to 120 million pounds of ore, enough to mine for decades. With uranium spot prices hovering around $47 a pound, the ore in Pittsylvania, never mind the rest of the state, is worth billions of dollars.

Only the moratorium stands in the way. The history of the ban begins in 1977, when the Marline Uranium Corp., a subsidiary of the Marline Oil Co., began looking for the ore around the state. (The U.S. Geological Survey has concluded that vast swaths of the Piedmont, between the low-lying Tidewater to the east and the Blue Ridge to the west, potentially hold uranium.) In two years Marline had found the monster deposits in Pittsylvania. The discovery touched off a hunt for uranium statewide, alarming communities along the eastern slopes of the Blue Ridge that didn't want to see horse pastures turned into mining pits. In 1982, the state acted to ease nerves by declaring the moratorium. Then the price of uranium tanked, dropping to $9 a pound at one point. Mining companies had little incentive to challenge the moratorium, so didn't.

Today, most Virginians seem unaware that the fate of the state's uranium mining moratorium is being discussed anew. The state coal and energy commission's study that might persuade the state's General Assembly to lift the moratorium could still take up to two years to complete. But already in rural Pittsylvania, which has one of the state's highest unemployment rates, debate is fierce. Supporters say new mining technology will allow miners to get the uranium safely, the mine would offer much-needed jobs to 300 people, and the uranium would fuel new reactors and help the nation kick its foreign oil habit. Opponents point out that almost all uranium mining in the United States occurs in arid, sparsely populated places out west that are geologically unlike anything in Virginia. In the water-rich Old Dominion, they argue, radioactive materials from uranium such as thorium-230, radium-226 and radon-222 could shake loose and leach into the groundwater. Meanwhile, the large piles of mining debris known as "tailings" could blow in the wind and contaminate the air. "It's going to rain down dust like lint," predicts 57-year-old cattle farmer and mine opponent Phillip Lovelace of Pittsylvania.

Virginia Beach and neighboring Chesapeake, two cities with a combined population greater than 600,000 that get part of their water from Pittsylvania streams, are alarmed at talk of lifting the moratorium. Virginia Beach opposes the mining plan outright, while Chesapeake has expressed grave concerns to state officials. Opponents are also skeptical of the job claims: in all the uranium mines out west, which produced 4.5 million pounds of uranium in 2007, there are fewer than 400 miners employed, according to statistics from the U.S. Energy Information Administration.

To settle the issue, the state commission hopes to enlist the help of the National Academy of Sciences to conduct the study. Meanwhile, opponents have organized and circulated petitions and enlisted the help of environmental groups, including the Southern Environmental Law Center in Charlottesville. Virginia Uranium for its part has agreed to merge with a Canadian mining company, Santoy Resources of British Columbia, to ensure it has the capital to press forward with its mining plans. In the end, insists Walter Coles, head of Virginia Uranium, there will be no mining if it puts the environment at risk. "If we're going to do it, it has to be done safely."

http://www.time.com/time/nation/article/0,8599,1880695,00.html

Other News – India

Give us our land!

COMPILED BY NIMI KURIAN

Tribals and other forest dwellers in Himachal Pradesh protested against the non-implementation of forest rights in Kinnaur recently. The protestors alleged that the government of Himachal Pradesh was not implementing the Central law Scheduled Tribes (Recognition of Forest Rights) Act that gave rights to tribals cultivating forestland for decades. The protestors said that the government indifference in notifying the law is what is creating problems for tribals. The protesto rs also demanded that the government should withdraw forest-eviction cases filed against the tribals.

http://www.hindu.com/yw/2009/02/24/stories/2009022450400300.htm

Centre cleares ten more SEZs

Special Correspondent

The new proposals include L&T and Navi Mumbai zone

Clean chit to Essar project in Gujarat

Exports from SEZ to cross Rs. 90,000 crore

NEW DELHI: The Central Government on Monday approved ten proposals for setting up special economic zones (SEZs), including those of Larsen & Toubro and Navi Mumbai SEZ. The Board of Approval (BoA) of SEZs also cleared the proposals of 11 investors to join as co-developers in projects like that of Mundra in Gujarat.

The BoA meeting, chaired by Commerce Secretary G. K. Pillai, also gave a clean chit to a Gujarat-based Essar SEZ project, which was earlier embroiled in issues like overlap between the domestic tariff area and the tax-free enclave. Three Mundra SEZs in Gujarat, having a total investment of Rs. 1,00,000 crore, have been allowed to be merged.

Since the combined area of the three zones exceeded the 5,000-hectare ceiling on a single SEZ, the BoA took the decision after a clearance from the Empowered Group of Ministers, headed by External Affairs Minister Pranab Mukherjee. The Navi Mumbai SEZ Pvt. Ltd., which has promoted various zones, received fresh approval for the one dedicated to the gems and jewellery sector. The combined Mundra SEZ will induct six investors as co-developers. One of the SEZs to be merged into the combined entity is setting up a 300-MW power plant to be commissioned next month.

The combined Mundra SEZ had become the country’s largest special economic zone, which would have educational institutions, port and an airport, Mr. Pillai told reporters after the BoA meeting. “Five years from now it will be one of the show-piece,” he said.

Similarly, exports from the SEZs are likely to cross Rs. 90,000 crore in the current fiscal. Exports were Rs. 66,638 crore last year. Exports during April-December 2008 are estimated at Rs. 67,000 crore. “There is a little bit slowdown but we think we will cross Rs. 90,000 crore,” he added. There are about 560 SEZs, which have formal approval, and 144 with in-principle approvals in the country. With over 280 notified SEZs, the investment in these tax-free zones is over Rs. 1 lakh crore.

http://www.hindu.com/2009/02/24/stories/2009022460611600.htm

National Biodiversity Action Plan

12:55 IST

BACKGROUNDER

Biodiversity is a multidisciplinary and all-pervasive subject involving diverse sectors and several cross-cutting issues. Therefore, any national policy or action plan on biodiversity has to be prepared essentially by involving all the stakeholders. Adopting an extensive consultative process, the Ministry of Environment and Forests has prepared the National Biodiversity Action Plan (NBAP). The NBAP has been prepared in pursuance of Article 6 of the CBD and Section 36 of the Biological Diversity Act. The NBAP was approved by the Cabinet on 6th Nov, 2008.

The NBAP draws from the principle in the National Environment Policy that human beings are at the centre of concerns for sustainable development and they are entitled to a healthy and productive life in harmony with nature. This Action Plan attempts to identify threats and constraints in biodiversity conservation taking into account the existing legislations, implementation mechanisms, strategies, plans and programmes, based on which action points have been designed.

On account of the cross-cutting issues in biodiversity, the implementation of the activities listed in the NBAP would require substantial inter-sectoral coordination. Apart from the Central Ministries/Departments and their agencies, and State Governments, the other actors involved are local bodies, research institutions, non-governmental organizations and civil society.

Since many of the activities are ongoing, these would be mainstreamed under the existing schemes, securing full utilization of available infrastructure and funds, with marginal to substantial augmentation and further inputs, wherever required on felt need basis. In addition, sources of external funding would also be explored and availed of according to requirements.

KP/DT

http://pib.nic.in/release/release.asp?relid=47793

Ikea gives UNICEF $48 mln to fight India child labor

Mon Feb 23, 2009 11:36pm IST

UNITED NATIONS (Reuters) - Swedish furniture retailer Ikea announced on Monday that it would donate $48 million to UNICEF to help improve the health and living conditions of children in some of India's poorest areas.

The donation makes the global furniture company the biggest corporate partner of the U.N. children's foundation UNICEF (www.unicef.org), with total commitments of more than $180 million, the U.N. agency said in a statement.

UNICEF Deputy Chief Saad Houry said that with its donations Ikea had demonstrated a "serious corporate commitment toward improving the living conditions in countries where it is working."

"Ikea's investment in children's well-being, despite the downturn in the global economy, sets a high standard for corporate partnership," he added.

UNICEF said the new donation would help it provide additional support for Indian national and state-led programs aimed at combating high mortality rates among children and mothers, and improving children's access to nutrition.

The money will also be used to improve clean water and to support sanitation and health projects, such as providing infants with immunization and vitamin supplements, it said.

http://in.reuters.com/article/topNews/idINIndia-38166220090223

Western Ghats losing endemic biodiversity

By Team Mangalorean, Mangalore

Mangalore, Feb 24: Dakshina Kannada, a land of varied geographical and biological features, has always enchanted scientists and conservationists. The narrow strip of land, with a length of 90 km, between the Arabian Sea and the Western Ghats can prove to be a researcher's delight if it is taken up for a comprehensive biodiversity study.

The second series of the biodiversity register on Mittabagilu, Savanalu, Malavanthige, Kadirudyavara, Melanthabettu and Munduru in Belthangady taluk of the local non-government organisation, Nagarika Seva Trust, has showed rapid changes in the biodiversity pattern, geographical features, and animal profile and count.

The study conducted by the trust and the Centre for Environmental Education, New Delhi, shows that trends of change in biodiversity in these six villages could be happening all over the Western Ghats, particularly in the periphery of the Kudremukh National Park and reserve forests.

Vidya Nayak, coordinator of the project, told Mangalorean.com that the recent studies showed that many places in these six villages had shown rapid changes in the biodiversity profile. The plant and animal diversity had undergone changes owing to the introduction of trees such as cashew and Gaali by the Forest Department. As a result of this, the hillocks of the Western Ghats had lost their undergrowth considered a rich treasure of herbs and medicinal plants.

Ms. Nayak recalled that there used to be shrubs called Ollaekudi, which was used for treating herpes, and Eshwara Beru used in treating snakebites. They had vanished from these hillocks. The Nelligudde, which not long ago had several Amla trees, had also vanished.

She said the taluk had 4,000 species of trees, plants, medicinal herbs, shrubs, creepers, climbers, roots, and bulbs, according to the biodiversity inventory of the Forest Department. The trust's biodiversity register showed irreparable damage to natural dispersion of seeds, plant multiplication, change of migration routes of animals due to industrial projects, and bifurcation, diversion, and fragmentation of minor rivers that originate in the Western Ghats. The felling of trees would bring back forgotten diseases that affect wild animals, cattle, and human beings.

Ms. Nayak said strict administrative norms had divested pastures in some tribal areas from the user groups. According to Madhav Gadgil, senior scientist on biodiversity, the Biological Diversity Act had created significant space for involving people at the grassroots in conservation activities. This Act was a response to a number of new emerging concerns, the result of new developments in technology, in particular, biotechnology and information technology, and the ongoing degradation of the environment.

These developments implied that all organisms, even the seemingly insignificant ones such as germs, worms, weeds, and mice, were potentially resources of considerable value. The Act was a part of an attempt to act on these two important provisions of the Convention on Biological Diversity. This formidable task could only be undertaken by making conservation and sustainable use and equitable sharing of benefits of biodiversity a people's movement. Biodiversity could be protected only with the cooperation of the masses.

http://mangalorean.com/news.php?newstype=broadcast&broadcastid=113986

News & Views !!

Feb 24, 2009

24/02/09

Mining – India

Finger at central bodies for poor iron ore quality