Mar 6, 2009

06/03/09

Mining – India. 1

1.        Power firms head to Indonesia for coal 1

2.        Bidding for CILs 7 UG mines soon. 3

3.        Aluminium seen firm till June on China buys. 4

4.        Coal India gets two blocks in Mozambique. 4

5.        Limestone reserves on the decline in MP. 5

6.        It'll be another Nadigram in Nanjangud: Farmers. 6

7.        India to mine 20,000 tons of gold reserves. 7

Mining – International 8

8.        Mining Companies to be monitored. 9

9.        5 protesters ticketed for trespassing at W.Va. mine. 9

10.     Ashley Judd campaigns against mountaintop removal mining. 10

11.     Bargain hunters move into worldwide coal mining. 11

12.     China's Shanxi uses unmanned aircraft to detect illegal coal mines. 13

13.     Proposed coal plant not good for Nevada. 13

14.     South Australia, Canada sign minerals-cooperation agreement 15

15.     Mozambique: Government Concerned About Illegal Mining. 16

16.     Australian uranium production to rise. 17

17.     Guatemalans Resist Mega-Mines, Hydropower Dams. 19

Other News – India. 23

18.     FBV complains of poll code violations. 23

19.     B.C. proposes aboriginal title and rights legislation. 23

20.     Global Water Resources Threatened by Climate Change and Population. 25

21.     Tree-Planting Project Has Threefold Purpose. 27

Mining – India

Power firms head to Indonesia for coal

Our Bureau

New Delhi, March 5 The enactment of a new, more liberal, mining legislation in Indonesia is drawing coal-starved Indian power utilities and coal firms to the island-nation in droves.

Coal India Ltd (CIL), through its joint venture with NTPC Ltd, Steel Authority of India Ltd (SAIL) and NMDC, as well as trading major PTC India Ltd, are among utilities that are firming up plans for picking up stakes in Indonesian coal blocks.

This comes in the wake of the new legislation, which proposes to open up a regime for foreign direct investment in coal mining in that country. Besides, Indian firms are hopeful of striking better valuations by taking advantage of the current slump in coal prices.

“Coal India Ltd, through its joint venture company International Coal Ventures Ltd (ICVL) and its internal Coal Videsh division, intends to acquire coal assets in Indonesia due to a combination of factors like availability of reserves, possibility of low cost opencast mining and cheaper ocean freight to India.

“The recent enactment of New Mining Law in Indonesia has also opened up a new regime for foreign direct investment in coal mining in Indonesia,” a CIL official said. The implications of New Mining Law are under examination by CIL prior to taking any investment decision, he added.

Acquiring mines

PTC India Ltd is also eyeing the opportunity to acquire coal mines in Indonesia. “We are planning for coal to be brought back into India for electricity generation,” said Mr Deepak Amitabh, PTC’s Director-Finance.

The new mining laws in Indonesia are favourable for foreign companies and coal prices have also stabilised from the levels seen last year, thereby opening opportunities to buy coal assets, he added.

Indonesia has reserves of coking coal and low-ash non-coking coal. Hitherto, foreign companies could pick up stakes in Indonesian companies that own mining assets and then work out coal evacuation arrangements from these mines.

Indications are that the New Mining Law, the regulations for which are still to be formally announced, could permit direct participation by foreign companies in mines in Indonesia, an official with one of the firms added.

ICVL, a special purpose vehicle floated by CIL, SAIL, NTPC, NMDC and Rashtriya Ispat Nigam (RINL), has been scouting for coal properties abroad for the last one year.

The SPV has a paid-up equity of Rs 3,500 crore, out of which SAIL and CIL have contributed Rs 1,000 crore each, while the other three PSUs have contributed Rs 500 crore each.

http://www.thehindubusinessline.com/2009/03/06/stories/2009030651680200.htm

 

 

Bidding for CILs 7 UG mines soon

 

Jayajit Dash / Kolkata/ Bhubaneswar March 06, 2009, 0:41 IST

 

Coal India Limited (CIL) would negotiate the tender document with the prospective bidders for development of its seven identified underground mines on March 7.

“The tender document for development of the seven underground mines has been prepared by Central Mine Planning and Design Institute (CMPDI), a subsidiary of CIL. We would hold talks with the prospective bidders for these mines on March 7”, NC Jha, director (technical) told Business Standard. The bids for the development of these seven underground mines are likely to be invited by CIL by the end of this month. Last month, the coal PSU (public sector undertaking) had sent the draft Notice Inviting Tender to the nine shortlisted firms.

CIL had shortlisted nine overseas firms for development of these underground mines and some of these firms have joint ventures with Indian companies. The selected firms would be responsible for planning, designing and operating these underground coal mines.

The coal major had identified seven underground coal blocks which are located in the mining areas of its subsidiaries like Eastern Coalfields Limited (ECL), South Eastern Coalfields Limited (SECL), Mahanadi Coalfields Limited (MCL), Western Coalfields Limited (WCL) and Bharat Coking Coal Limited (BCCL).

It was looking to rope in some reputed overseas coal firms who could run these mines with state-of-the-art technology. Initially, the selected firms will also bear the costs of operation of such mines and the expenses would be later reimbursed by CIL.

Asked if CIL was aiming to scale up the quantum of coal offered through the e-auction mode, Jha said, “We can raise the quantity of coal being offered for sale through the e-auction mode only after we receive any communication from the Union coal ministry. At present, CIL is offering 10 per cent of its total coal production through the e-auction mode which is as per the New Coal distribution policy of 2007.”

“The decision to offer higher quantity of coal through e-auction would also depend on the market response from the coal consumers. Since the introduction of the e-auction system in 2007, CIL has offered about 76 million tonnes of coal out of which the sale of only 38 million tonnes has materialised”, he added. Recently, Kirit Parikh, member (energy) of the Planning Commission had recommended that CIL should aim to sell at least 20 per cent of its coal output through e-auction. CIL targeted to offer around 42 million tonnes of coal through the e-auction mode in 2008-09. Coal distribution through e-auction was introduced in the New Coal distribution policy in 2007 to provide access to coal to such buyers who were not able to source the raw material through the available institutional mechanism. The purpose of e-auction is to provide equal opportunities to all coal consumers to purchase coal through a single window service.

http://www.business-standard.com/india/news/bidding-for-cils-7-ug-mines-soon/351030/

 

 

Aluminium seen firm till June on China buys

 

Newswire18 / Mumbai March 06, 2009, 0:28 IST

 

Global aluminium prices are likely to stay upbeat till June on expectation of increase in demand following China State Reserve Bureau's aggressive purchase plan of the metal and a new economic stimulus plan from the country, analysts said.

However, prices could slump after June on surplus output and high inventories amid weak demand from key sectors like automobiles.

In the late afternoon trade, aluminium three-month futures on LME were at $1,367 per tonne, up $16 from Wednesday's close.

The contract may get support at $1,280 and face resistance at $1,600 in the next three months, while the metal is seen trading in the broad range of $1,100 and $1,750 this year, analysts said.

"There are rumours China's new fiscal stimulus plan is likely to be two-three times more than the current approved $585 bln to revive growth after exports collapsed and economy grew at its slowest pace in seven years," said Somnath Dey, research head - metals and energy, Religare Commodities.

Concurrently, China SRB has already started accumulating aluminium from domestic and international producers to build a reserve of 800,000 tonne-1 million tonne in order to take advantage of current low prices and support local smelters, analysts said.

China is the world's largest consumer of industrial metals.

http://business-standard.com/india/news/aluminium-seen-firm-till-junechina-buys/351014/

 

Coal India gets two blocks in Mozambique

Indrani Dutta


May rope in an Indian partner

Focus on social responsibility


KOLKATA: Public sector Coal India Ltd (CIL) is now all set to mark its footprint in an overseas destination having won the concession of two coal blocks in Mozambique in Africa, senior officials in the Indian High Commission told The Hindu.

Studies conducted by the Central Mine Planning and Design Institute (CMPDI), the consultancy and design arm of CIL, has proven substantial reserves of coking and non-coking coal in the two blocks, which are spread out over a 200 sq. km area. CIL will help in institution building and will invest in CSR (corporate social responsibility) activities as part of the deal.

Coal Ministry sources told The Hindu that “The two blocks, called A1 and A2 which are to be awarded to CIL, contain reserves of over one billion tonnes.” The Mozambique government had already published an evaluation saying that the two blocks were being awarded to Coal India.

Indications are that CIL will have to tie-up with a local company for this venture.

It may also rope in an Indian partner for these opencast mines.

While 15 per cent of the output of these mines will be reserved for the host country, the balance can be exported back to India. “Eighty-five per cent is the floor level and once developed, these mines are expected to play a key role in meeting the country’s coal shortage, especially that of coking coal,” sources said. CIL has been trying to acquire overseas mining interests for quite some time now, through its own arm ‘Coal Videsh’ as well as through the joint venture International Coal Ventures Ltd (ICVL).

When contacted, CIL Chairman declined to .

As part of the deal, CIL will donate 500 artificial limbs to the government and a shipload had already been dispatched.

These limbs (Jaipur foot) procured here, would be required for helping the victims of a blast that had occurred in an open-air ammunition depot in Mozambique in 2007.

http://www.hindu.com/2009/03/06/stories/2009030656941500.htm

 

 

Limestone reserves on the decline in MP

 

Shashikant Trivedi / New Delhi/ Bhopal March 06, 2009, 0:38 IST

 

With limestone reserves declining, Madhya Pradesh may find it difficult to attract cement companies.

During the last four years around 10 companies, with a combined investment of Rs 15,000 crore, tried to explore mines for 25 million tonne but met with little success.

The state mining department too has no latest data on limestone reserve. The government has allotted land to a number of companies for prospecting but most of them have found inadequate limestone particularly in Katni and Satna mines.

“We did prospecting but the results were not encouraging. We have requested the state government re-allot another land to us,” a top executive in Shree Cements told Business Standard. Though the company had been allotted 956 acres in Katni, it did not find adequate limestone reserve.

Shree Cements is awaiting government's nod for its proposed Rs 2,000crore plant in the state.

“There are reports that limestone reserve is not of the required quality in some of our mines. We will be conducting a survey to get the latest data on limestone reserve and will consider the proposals of cement companies accordingly,” industries minister Kailash Vijayvergia said.

The companies, which recently proposed to set up shops in the state, include Platinum Cement Pvt Ltd at Nagar of Dhar district, Rashmi Metaliks Limited, KJS Cement, Sarthak Industries Limited, Rungta Mines, Adhunik Corporation Ltd, BLA Power Private Ltd, DSP Finprint Limited, Mysore Cement and Sandhya Prakash Limited.

During last September-October biggies like Sanghi Cement, Shree Cement, MSP Steel & Power, ACC and Birla Corporation signed deals with the state either for capacity expansion or for new cement plants. All, however, had problems at some level. “The government has yet to grant us mining lease, it's been months now,” DBN Rao, a top executive of Sanghi Cements said. The company has planned a 7 million tonne greenfield project in Katni.

http://www.business-standard.com/india/news/limestone-reservesthe-decline-in-mp/350991/

 

It'll be another Nadigram in Nanjangud: Farmers

5 Mar 2009, 2304 hrs IST, TNN

 

MYSORE: After the farming community in Chamalapura, it is now Nanjangud farmers who are threatening to stage Nandigram-like protests in case sand

mining is not stopped in the area.

The farmers are seeking a halt to sand mining at Kullankanahundi and Bokkahalli on the banks of Kapila (Kabini) river, which, they said, is threatening lives of some 4,000 residents of the two villages. The villagers, who staged overnight sit-in in front of Nanjangud police station as the cops arrested some of the residents protesting against sand mining recently, said the village will be submerged and the course of the river will change in case sand is mined in the area.

Karnataka Rajya Raitha Sangha leaders N Najegowda, S Gurulingegowda and Bokkahalli Nanjundaswamy on Thursday said they are left with little option but to take the route of residents at Nandigram in West Begal. We will neither allow illegal sand mining nor accept the authorities move to lift sand legally because this is the question of our survival, they told reporters.

Accusing the official machinery, including the police of colluding with the illegal sand mining lobby in the region, they said elected representatives are involved. Indan, a close relative of former minister H C Mahadevappa, is involved in illegal sand mining at Kullankanahundi and Bokkahalli, which were declared as submerged areas in 1962. When it was opposed, the authorities stopped it but action was not initiated against the culprits. Now, the officials have given license on February 3, which has been temporarily put on hold, they said.

"Though we have petitioned deputy commissioner Manivannan and Mysore AC Gurneet Tej, it is of little use. While the DC has asked the officials to collect the opinion of the villagers, it has been overlooked by the officials nor have the officials of Karnataka State Pollution Control Board objected to it. The official machinery is silent because the elected representatives have a stake in it,'' they contended.

 

http://timesofindia.indiatimes.com/Mysore/Itll-be-another-Nadigram-in-Nanjangud-Farmers/articleshow/4230190.cms

 

 

India to mine 20,000 tons of gold reserves

2009-03-06 12:30:00

 

MUMBAI: India is all set to go for a gold hunt now. Concerned over its increased dependence on bullion imports, government of India has asked Geological Survey of India (GSI) to tap the countries potential to dig out gold and diamond reserves spread over several states.

India is estimated to have 20,000 tonnes of gold and diamond reserves spread over several states. The Indian government has asked GSI to explore additional reserves of gold and diamonds in Andhra Pradesh, Karnataka, Madhya Pradesh, West Bengal, Rajasthan, Bihar and Chhattisgarh.

India has been the top importer of gold for several years and the Indian government is concerned over its over-dependence on imports for its bullion needs.

The concern increased during the recession time when prices of gold shot up beyond $1,000 per ounce in the international markets. Moreover, gold has become the safest have available for investors at present.

The government has given GSI three years to explore the possibilities to tap the gold reserves. Now, India is estimated to have 14,000 tonnes of gold and diamond reserves which should be accelerated by 20,000 tonnes in next three years.

The government has also accorded the public sector company Hindustan Copper Ltd to diversify into gold and diamond mining in collaboration with leading foreign companies through setting up of joint ventures.

The overseas firms that are in talks with the government for gold and mining exploration include Indogold, Anglo-American Gold Mining, Monarach Gold Mining, De Beers India Ltd, ACC Rio Tinto Exploration Ltd and BHP Minerals.

The Indian government is taking all initiatives to channelise efforts in unearthing high value minerals like gold and diamonds. India imports Rs 65000 crore worth gold per annum as against Rs 75000 crore of diamond imports.

India currently produces hardly 0.4% of its gold consumption despite having 9% of global gold reserves under the country’s land mass.

Foreign companies rarely come to India because they cannot sell the data they map and can only utilise the information if they venture into mining themselves. Under the existing rules if any entrepreneur invests money and finds gold, then he must apply again for mining.

However, the new mining policy is expected to open up the mining sector for foreign investment. Under the new rules, approvals for most minerals must be made in about a year or be automatically referred to a tribunal.

International gold mining companies are looking for tying up with gold exploration firms in India to form joint venture and launch new exploration projects.

Southern India’s Deccan region has been surveyed as having one of the richest deposits of the yellow metal.

 

http://www.commodityonline.com/news/India-to-mine-20000-tons-of-gold-reserves-15715-3-1.html

 

Mining – International

 

Mining Companies to be monitored

Last Updated: Friday, 6 March 2009, 5:53 GMT         

 

The Ministry of Lands Forestry and Mines will continue to explore, exploit and manage the country’s mineral resources on sustainable and environmentally friendly ways.

 

Delivering the 2009 budget statement to parliament, Dr Kwabena Duffour, Minister of Finance and Economic Planning said to control the negative impact on communities bordering mining locations, the Ministry will continuously monitor all mining operations as well as exploration companies to ensure compliance with the requisite mining agreements.

 

The Ministry, he said would encourage the diversification of the mineral base to reduce over-dependence on few precious minerals. In this connection, the result of the airborne geophysical survey and the geological maps would be packaged for investors.

 

Dr Duffuor said the Ministry would improve the relationship between mining companies and mining communities. Activities to be pursued include organising regular meetings with mining NGOs and civil society organizations, radio discussions on FM stations to disseminate information to ensure successful implementation of alternative livelihood projects in mining communities.

 

“Government will continue to address social issues in mining communities, including equitable distribution of mining revenues. The Ministry will draft guidelines on the use of mineral royalties

by District and Municipal Assemblies and undertake surveys to establish baseline data on social conflicts in mining communities.”

 

For the implementation of the above activities, an amount of GH ¢80,034,267 has been allocated. Out of this, GoG is GH ¢14,097,316 IGF is GH ¢37,518,900 Donor is GH ¢18,418,052 and HIPC is GH ¢10,000,000.

 

Source: GNA

 

http://topics.myjoyonline.com/news/200903/27172.asp

 

5 protesters ticketed for trespassing at W.Va. mine

March 05, 2009 @ 05:19 PM

SUNDIAL, W.Va. — Five protesters say they’ve been ticketed for trespassing at a Massey Energy surface mine in West Virginia.

The protesters say state police officers ticketed them Thursday atop the containment dam for a coal slurry pond at Massey’s Edwight Surface Mine near Marsh Fork Elementary School. Spokeswoman Nicole Motson says they wanted to draw attention to the potential danger to the school.

The school long has been the focus of protests and lawsuits over Massey’s desire to build a second coal silo nearby. Massey already has a silo about 300 feet away.

A spokesman for Richmond, Va.-based Massey did not immediately respond to a request for comment.

The protest was the third recent instance of civil disobedience targeting surface mining in southern West Virginia.

http://www.herald-dispatch.com/news/x1100471556/5-protesters-ticketed-for-trespassing-at-WVa-mine

 

Ashley Judd campaigns against mountaintop removal mining

Ms. Judd is lending her star power to the effort to convince the Obama Administration to end the evil practice of mountaintop removal mining.

Thu, Mar 05 2009 at 6:05 PM EST

Read more: CLEAN COAL, COAL, MOUNTAINTOP REMOVAL MINING

 

Photo credit: Flickr user CM195902

I wrote about Ashley Judd calling out Sarah Palin for her support of helicopter wolf hunting last month. Ms. Judd is doubling down on her green activism and is now teaming up with the Sierra Club to fight against the evil that is mountaintop removal mining.

We need to let President Obama know that mountaintop removal mining needs to stop and it needs to stop now. We can't afford to lose one more mountain, one more stream, one more tree covered valley.

Help get the word out and take action by adding your voice to the effort. A few minutes of your time will let Lisa Jackson, the EPA Administrator, and Nancy Sutley, the Chair of the Whitehouse Council on Environmental Quality know that there are a lot of us out there who have a hard time believing that we even have to point out that blowing up an entire mountain for coal is absurd.

http://www.mnn.com/earth-matters/energy/blogs/ashley-judd-campaigns-against-mountaintop-removal-mining

 

Bargain hunters move into worldwide coal mining

As asking prices for coal mines fall to the lowest level for years, bargain hunting mining and consuming companies are moving in to secure long term assets - but finance still remains a problem.

Author: Jackie Cowhig and Joseph Chaney
Posted:  Thursday , 05 Mar 2009

LONDON/HONG KONG (Reuters) - 

Coal mines are at their most affordable for years but only a few cash-flush or state-backed buyers will be able to seize the opportunity.

The commodities boom driven by Chinese and Indian demand pushed coal and mine prices to record highs in 2008.

Since then coal prices have fallen by 60 percent but analysts expect the next commodities boom in 3-5 years time will see an even sharper rise than in 2008.

Buyers complained last year that sellers were over-valuing their assets by up to 50 percent but some still paid the premium.

"Q2, Q3 this year would be a very good time to buy a mine if you're looking to buy distressed coal assets. Even more so for thermal coal than coking coal," said Jim Lennon, executive director of commodities and mining research at Macquarie Bank.

"There would be strong interest even from the big miners in buying coal mines which are generating cash, have large reserves, close to ports with good logistics. But everybody is trying to conserve cash now," said a senior executive at a large mining house. "Raising funds is the rub. There are a lot of non-cash offers."

The big mining houses such as BHP Billiton, Xstrata, Rio Tinto and Anglo American have cut jobs, cut production and thoroughly reviewed expansion plans. Some, like Rio, have coal mines for sale and debt to service.

Xstrata Plc's $5.9 billion rights issue, approved on March 2, is a clear example of mining groups' drive to pay off debt, mining house sources said.

CHINA HAS THE CASH

Unlike the international listed miners, the Chinese and Indian buyers such as China's biggest coal miner Shenhua Energy an China Datang Corp are driven primarily by a long-term need to secure raw materials supply. Many of them are state-backed and have cash to spend rather than shareholders to placate. They often secure financing on political grounds.

Hong Kong-based bankers say they are matching companies with balance sheet issues with cashed-up buyers.

Indian state entities such as Coal India have been seeking mines in Indonesia, Australia and South Africa for years.

State utilities, Independent Power Producers (IPPs) planning import-fuelled so-called Ultra Mega Power Plants and Indian traders have also sought stakes in overseas mines.

India will import around 51 million tonnes of thermal coal in 2009 mostly from Indonesia, up from 42 million in 2006. This will continue to rise over the next decade as demand grows.

"Indonesia is still wall-to-wall with Indian companies trying to buy smaller coal mines here," a senior Indonesian coal producing source said.

COLOMBIA, INDONESIA HOT ASSETS

Colombia, one of the world's largest thermal coal exporters, ships coal prized by European utilities.

Despite the slump in coal prices, Colombian producers have low cash costs and are still making healthy profits.

"If you are looking to buy a mine the first choices would be Colombia and Indonesia," Macquarie's Jim Lennon said.

"Colombia is well-positioned to supply the Atlantic and Pacific markets, it has large reserves. Colombia's government is arguably the world's most supportive of encouraging coal production," the senior mining house executive said.

Investors in Colombian mining trust there is legal stability and democracy, said Alberto Escobar, head of Colombian coal producers' group Fenalcarbon.

Indonesia is the world's biggest coal exporter. Its chief attraction is its location in the growing Asian market.

Despite that, none of the big international mining houses mine coal there. The top dozen or so exporters are in profit but many small, high-cost mines are ripe for acquisition, producers said. (Reporting by Jackie Cowhig. Additional reporting by Joseph Chaney and Helen Popper)

http://www.mineweb.net/mineweb/view/mineweb/en/page38?oid=79730&sn=Detail

 

 

China's Shanxi uses unmanned aircraft to detect illegal coal mines

 

    TAIYUAN, March 5 (Xinhua) -- Shanxi Province, which is China's major coal-producing region, detected illegal mining activity with unmanned aircraft, the provincial land and resources administration said Thursday.

 

    Two unmanned helicopters purchased last year were used in surveillance flights, with six specially-trained staff making 14 flights and exploring more than 2,000 square kilometers, the administration said. It did not say how many illegal mines were detected.

 

    Aerial photos taken by the helicopters revealed illegal mines, which operated only at night. Many were dug into mountains, sheltered inside buildings or tunneled beneath courtyards, the administration said.

 

    Shanxi accounts for one third of China's coal output, with frequent accidents in illegal mines despite government efforts to improve safety.

 

http://news.xinhuanet.com/english/2009-03/05/content_10951021.htm

 

 

Proposed coal plant not good for Nevada

By Frankie Sue Del Papa
Special to the Nevada Appeal

For the past two years Nevadans have been debating proposals to build three large coal-fired power plants within the state. That debate has fostered critical thinking on the economic and environmental consequences of these proposals and on the appropriate role for energy efficiency and renewable energy.

Another opportunity for public involvement is the March 10 Nevada Public Utility Commission’s public hearing in Carson City for the White Pine Energy Station (WPES), a 1,600-megawatt coal-fired power plant proposed near Ely. After public comment and hearings, the PUC may issue or deny a permit under Nevada’s Utility Environmental Protection Act, in which the PUC is given authority to assess the impacts from the WPES.

The construction and operation of the proposed WPES would not be regulated by our PUC, unlike the recently delayed NV Energy plant. WPES would be allowed to sell its power anywhere and its price would not be regulated by the state. However, its location within Nevada’s borders allows PUC oversight on the facility’s environmental footprint.

As Nevada’s former attorney general I have serious concerns over the environmental impact of the WPES that the PUC should carefully consider.

The WPES is estimated to use about 5,000 of acre feet of water per year — 1.6 billion gallons — enough for a city of nearly 50,000 people. As the driest state in the U.S., Nevadans should be concerned if this is the best use of our precious water resources.

The WPES will emit over 13,000 tons of toxic air pollutants annually, including sulfur dioxide, nitrogen oxide and particulates and more than 12 million tons of CO2.

Apart from the obvious impacts on residents and visitors, the plant also will significantly affect one of Nevada’s crown jewels, Great Basin National Park, offering some of the cleanest air and darkest night skies in the lower 48 states. Having the vistas from Wheeler Peak degraded for the next 50 years and beyond because of a bad energy choice would be a real tragedy. The impact on White Pine County’s air resources also could limit potential industrial and mining activity in the future.

An honest discussion of any coal-fired power plant should include coal waste. The WPES could generate 500,000 tons of coal waste annually, the majority remaining on site as a landfill — 50 million tons or more over the life of the plant. The recent tragedy in Tennessee in which the containment walls failed, dumping more than a billion gallons of toxic ash into surrounding waterways and private homes, is the latest warning.

Besides the destructions itself, the cleanup is estimated to cost the area’s ratepayers nearly $1 billion. The implications of coal waste toxicity are substantial and the EPA should consider that in future proceedings under the new administration.

The broader debate focuses on coal as a fuel vs. increased energy efficiency and renewables. Because either could serve many short-term electricity needs, the long term consequences are the real issue.

Some believe coal-fired electricity will remain economically and publicly acceptable. Others believe coal’s environmental consequences will make future coal plants too expensive. The WPES will impose extremely intensive uses on Nevada’s very limited resources while delivering power outside of Nevada and creating a limited number of permanent jobs.

On the other hand, developing renewable energy and efficiency options will create more Nevada jobs and protect our environment. The latter is the better choice for all Nevadans.

Please consider attending the public hearings. If you cannot participate, consider sending written comments to the PUC by March 10. Specific information is posted at www.nevada

cleanenergy.com.

• Frankie Sue Del Papa is the former Nevada attorney general.

 

http://www.nevadaappeal.com/article/20090305/NEWS/903059991/1029/NONE&parentprofile=1061&title=Proposed%20coal%20plant%20not%20good%20for%20Nevada

 

 

South Australia, Canada sign minerals-cooperation agreement

0 COMMENTS  |  

 

By: Esmarie Swanepoel

6th March 2009

Updated 41 minutes ago

TEXT SIZE

JOHANNESBURG (miningweekly.com) – The government of South Australia has entered into an agreement with Canada’s Saskatchewan province to promote improved scientific and technical cooperation within the minerals industry, South Australian Mineral Resources Development Minister Paul Holloway said.

The department of Primary Industries and Resources for South Australia (Pirsa) stated this week that a memorandum of understanding (MOU) had been signed between Pirsa and the Saskatchewan’s Ministry of Energy and Resources, on the sidelines of the Prospectors and Developers Association of Canada Congress, (PDAC).

Holloway stated that the MOU would promote the exchange of information and facilitate scientific and technical cooperation on mineral resources development in each jurisdiction.

“There are a lot of mutual benefits that can flow when two agencies with such a wealth of experience and knowledge in the mining industry are able to pool their resources and know-how,” Holloway stated.

The MOU would also provide the opportunity for knowledge sharing on uranium geoscience, which is a significant interest to South Australia, as the region hosted most of the country’s known uranium resources.

Saskatchewan is the leading jurisdiction in North America for uranium exploration and mining production. The Athabasca basin in Saskatchewan has the world’s largest high grade uranium mines, and produces about 23% of the world’s uranium. On the other hand, South Australia is recognised as being one of the most prospective geological terrains for the next generation of uranium mine developments in Australia.”

The partnership, which was due to start in 2009, would involve technical exchanges on all aspects of geoscience, including geological and mineral resource mapping, information management and delivery, as well as a range of other initiatives.

Pirsa stated that the two regions would also share information on the administration and regulation of uranium exploration and mining. “Good science is often forged by innovative alliances such as this. The partnership between our jurisdictions will foster an environment for open exchanges on the world’s best practice mineral exploration and mining,” said Saskatchewan Energy and Resources Minister Bill Boyd.

http://www.miningweekly.com/article/south-australia-canada-sign-minerals-cooperation-agreement-2009-03-06

 

 

Mozambique: Government Concerned About Illegal Mining

5 March 2009

Maputo — Unknown quantities of rubies are being illegally mined and exported from M'sawize in the northern Mozambican province of Niassa, according to the Minister of Mineral Resources, Esperanca Bias.

This is the latest in a string of discoveries of deposits of precious or semi-precious stones, which are then exploited illegally, with little or no benefit to the country.

The proliferation of illegal mining was on the agenda on Thursday at a meeting in Maputo organised by the Ministries of Mineral Resources and of the Interior on "Implementation of Mining Legislation and its Main Constraints". The meeting is looking at ways to apply the law, and ensure that the resources in the Mozambican subsoil benefit the country and its people.

"We're seeing a proliferation of illegal mining activity. It's happening to some extent all over the country", Bias told reporters. "This is reaching alarming proportions with rubies in M'sawize".

The rubies are often of good quality, she added, but Mozambican artisanal miners, having no idea of the gems' real worth, sell them for a pittance. In the hands of middlemen, they can easily be smuggled over the border into Tanzania, and then sold on at much higher prices.

The government has sent a team from the National Directorate of Geology to undertake a survey at M'sawize to establish the size of the deposit. At the moment the government does not know how many rubies are being dug up, and how much money the country is losing.

Bias said that some of the illegally mined gems were seized two months ago, but are not yet in the possession of her ministry, but she was sure that the amounts leaving the country "are of a very high value".

The Ministry of Mineral Resources licences mining operations, but control over mineral resources should also be exercised by the police, the frontier guards, and the customs service. That poses enormous challenges, given the porous nature of the borders.

Rubies are a variety of aluminium oxide (corundum), and derive their red colour from the presence of chromium. They are classified traditionally as one of the four previous stones - the other three are diamonds, sapphires and emeralds. The value of a ruby depends largely on how red it is.

An internet trawl finds a 1.58 carat ruby selling for 1,264 US dollars. But a five carat ruby might cost as much as 10,000 dollars.

http://allafrica.com/stories/200903050910.html

 

 

Australian uranium production to rise

Fri, Mar 6, 2009

By Melissa Pistilli-Exclusive to Uranium Investing News

Despite heavy losses in the spot price of uranium over the past year, analysts are predicting a gradual recovery over the next two years.

In 2007, global uranium prices averaged $US99.30 per pound, dropping 38 percent to average $US61.80 per pound in 2008.

The downward pressure on the price last year was a result of hedge funds and investors liquidating uranium stocks to make up for losses in the equities markets. These actions drove the price down from about $64 per pound in August 2008 to $44 in October 2008.

But the same fundamentals of strong demand and supply concerns that helped force the price up in 2007 are still in place, especially with governments worldwide turning to nuclear power for its energy needs. Many analysts and agencies are confident that the price of uranium will recover once the shadow of the global financial crisis abates from the market. Bart Jaworski, an analyst at the North American investment firm, Raymond James, expects the uranium spot price to reach $80 per pound by 2010.

The Australian Bureau of Agriculture and Resource Economics (ABARE) has forecast a brighter future for the uranium market as well. “World uranium requirements are forecast to increase faster than world supply in 2009,” said ABARE in a recent report. Increasing demand is expected to way heavy on existing supply, which will experience another deficit for the sixth year in a row for 2009.

“Supported by this deficit, spot prices are forecast to recover gradually in 2009 to end the year at around US$62 a pound,” estimates the agency. Further growth in uranium consumption and decline in supply will no doubt support further price increases into 2010.

Increased production expected from Australia

ABARE has released promising forecasts for the Australia’s 2009 uranium market. The agency estimates that increased output from Energy Resources Australia’s Ranger mine and BHP Billiton’s Olympic Dam will support a 5 per cent increase in the nation’s uranium production for this year. Uranium export earnings in turn are expected to rise 6 per cent to nearly $940 million for 2008-09. Increased production and rising uranium prices brought on by the upsurge in demand will drive up Australia’s uranium export earning an additional 31 per cent to $1.2 billion for 2009-10.

Energy Resources Australia and BHP’s production increases, coupled with new mining production from other companies, will place Australia among the world’s top uranium producers Kazakhstan and Africa. “However, the timing of new production may be adversely affected in the short term by current credit conditions brought about by the global financial crisis,” said the agency.

New mines will be coming out of states like Western Australia (WA). Near the end of last year, the newly elected Liberal government of WA lifted the long-standing ban on uranium mining and exports that was enforced by the previous Labor government.  ”The removal of the ban is expected to result in the development of significant uranium deposits in Western Australia,” said ABARE. Projects already underway include Toro Energy’s Centipede-Lake Way project and Mega Uranium’s Lake Maitland project.

There is some speculation that a similar ban in the state of Queensland will eventually be lifted. The Australian-based exploration company Southern Uranium is keeping a close eye on the results of the March 21 Queensland government election, for which uranium mining has been a hot issue.

But, whatever the results the company anticipates positive change for the uranium mining industry. “We believe our exploration and development cycle is a lot longer and a lot more robust than the political cycle,” said Southern Uranium managing director John Anderson. “Because it is a mining state, and it will be sensible for them to allow uranium to be produced.”

http://www.uraniuminvestingnews.com/1436/australian-uranium-production-to-rise.html

 

 

Guatemalans Resist Mega-Mines, Hydropower Dams

By Nathan Einbinder

GUATEMALA CITY, Guatemala, March 5, 2009 (ENS) - Amidst the growing controversy surrounding foreign-controlled resource extraction and mega-development projects in Guatemala, populist leader Bishop Alvaro Ramazzini, together with a group of community leaders, is demanding a two-year moratorium on the granting of mining concessions by the Guatemalan government.

In the municipal capital of San Marcos in northwest Guatemala, Ramazzini, with several hundred of his supporters, took to the streets last Tuesday to call on Congress for a two-year halt to the sale of mineral rights to international companies. This pause would give the current government enough time to review a petition to reform the existing mining code.

"A moratorium would be most sensible, given all the conflict generated by the subject of mining," the Bishop told "Prensa Libre," a national daily newspaper.

Tailings pond at the Marlin Mine in San Marcos, Guatemala. The water is ultra-blue due to the cyanide and other chemicals used to extract gold from the soil. (Photo © Nathan Einbinder)

Ramazzini and numerous local and international organizations contend that the current mining law does not properly consult local communities as defined by the International Labour Organization's Convention 169, which guarantees the right of indigenous people to exercise control over the form of development that occurs in their traditional territory.

Guatemala signed onto the ILO 169 agreement shortly after the affirmation of the Peace Accords in 1996.

Critics of the current government led by President Alvaro Colom argue that the existing mining law fails to address issues surrounding water usage and the low requirement of royalty payments to the state, which stands at one percent of the revenue earned.

According to Guatemala's Ministry of Energy and Mines, there were 356 mining licenses granted as of December 2006, with hundreds more in the process.

Oxfam International reports that at least 10 percent of the country's land has been turned over to international corporations for mineral exploration and exploitation.

In recent months, as many as 20,000 citizens from the Highland departments of Huehuetenango and San Marcos have voted against mining operations in regional consultas, or community referendums, which are legal yet non-binding in Guatemalan courts.

The nearby Marlin Mine, a cyanide-leaching, open-pit gold mine owned and operated by Canada's Goldcorp Inc., has been one target of community criticism, given its well-documented health and water contamination issues, as well as its local opposition movement.

A large dike is holding the cyanide-tainted mine tailings in a pond, but the pond is filling up rapidly, and the mine company is expected to release the tailings into the river at some point in the future.

Countrywide Resistance

Bishop Alvaro Ramazzini is a recent past president of the Bishops’ Secretariat of Central America. (Photo courtesy U. California, Berkeley)

Tuesday's rally was by no means unusual in Guatemala. Hardly a day passes without news of another protest, roadblock, or urgent community meeting to discuss the prospects of another mega-project.

Across the country, from the Western Highlands to the lowland Oriente, large hydroelectric dams, mines, super-highways, and cement plants are being planned, often with limited consultation with, or support from, the indigenous Maya majority.

The number of proposed mega-projects has increased as part of the government's plans for development and modernization, and under the framework of the newly ratified Central American Free Trade Agreement, CAFTA, which offers incentives to international companies.

Despite the promise of much needed job opportunities and rural services, this model of development often leaves communities socially divided and environmentally damaged, and, according to Ramazzini, leads to an increase in poverty and inequality.

"Green" Mega-development

After mining, hydroelectric dams are the target of the hottest mega-development debate in Guatemala.

As stated by the current administration, there is an energy crisis in Guatemala, and one of the methods in solving this issue is by implementing clean "green" energy producers.

According to Julio Gonzalez of Madre Selva, a Guatemala City based environmental organization, the motive behind these new hydro-projects is for the sale of electricity to surrounding countries, which they say will benefit only particular economic interests and foreign companies.

Far from bringing new employment to dam-affected regions, Gonzalez told "La Prensa" that, "they [the companies] hire 50 or 60 laborers during the construction, and afterwards, no one."

The latest high-profile conflict is taking place in the Ixcan, in the far north of the country, where the $400 million, 181 megawatt Xalala dam has been proposed and aggressively pursued by the current administration and the National Institute for Electricity, INDE.

According to a study by International Rivers, a U.S. based nongovernmental organization, if the dam project is carried out, at least 2,300 Maya-Qeqchi farmers will be displaced, and the local environment will be severely damaged.

In April 2007, a popular consulta was carried out in the affected communities. Of the more than 21,000 people who voted, 91 percent rejected the Xalala dam proposal. Nevertheless, INDE continues to solicit from international development agencies for funding to carry out the project.

Digging Up the Past

Guatemalans believe they have good reason to resist the prospect of more hydroelectric dams.

Over 30 years ago, when the INDE started the initial construction on the Chixoy hydroelectric dam in Baja Verapaz, about 90 miles north of the capital, it was hailed by the World Bank, one of its principal lenders, as an engineering miracle.

Paulina Osorio was born in a village flooded by Chixoy Dam. Her parents were killed by the Guatemalan Army when she was nine years old. (Photo by Erik Johnson courtesy International Rivers Network)

Since then Chixoy has nearly tripled its initial estimated cost, and now accounts for roughly 50 percent of the country's national debt.

Despite the economic mishaps, and the fact that the dam may have to be completely dismantled in the near future due to structural problems and the lack of a proper environmental impact statement, Chixoy remains a symbol of a turbulent era in Guatemala's history.

When the Maya-Achi people of Río Negro, one of the main villages affected, decided they would resist their forced displacement to make way for construction of the reservoir, they were labeled "subversives" by the military, and systematically massacred by paramilitary groups.

According to official reports, 444 men, woman and children were killed, and many others lived in hiding for years in the wooded gulches above the flooded basin.

In all, at least 3,400 people were displaced in the region, and many are still waiting for promised reparations from INDE and the World Bank.

Small Gains

Between the media's coverage of assassinations, bus accidents, and illegal security organizations that murder with impunity, there is an occasional story detailing the small gains made in the countryside, as ordinary Guatemalans stand against the growing forces of globalization by initiating their own vision of development.

Last week, community leaders from five municipalities met in Chiquimula, in southwestern Guatemala, to discuss a massive reforestation, sustainable agriculture, ecotourism, and potable water project, which will receive funds in part from the Nature Conservancy.

"Today a project is born that will develop the mountain, that for years was neglected," said a mayor from Huite, a nearby community.

Elsewhere, such as in Chuarrancho, where a large dam is planned on the Río Montagua in the dry intermountain region north of the capital, local leaders have voiced their opposition over the lack of consultation, and the likelihood that such a project would destroy their way of life.

In years past, this type of discontent would label them as subversive, or communist, but today, the open dialogue is empowering and has the potential to bring about a change in the way development is perceived and carried out.

Due in part to the massive opposition against the Xalala hydro-project, the only construction company to show interest in building the dam, Odebrecht, has withdrawn its submission.

With funds drying up in the United States and Canada because of the economic crisis, numerous mega-development projects, such as Skye Resources' nickel mine in El Estor, are in an indefinite holding pattern.

Copyright Environment News Service (ENS) 2009. All rights reserved.

http://www.ens-newswire.com/ens/mar2009/2009-03-05-02.asp

 

Other News – India

 

FBV complains of poll code violations

Staff Reporter

VISAKHAPATNAM: Forum for Better Visakha in collaboration with Ennikala Nigha Vedika (AP chapter) has taken up an Election Watch campaign. It sent photographs of blatant violation of the Election Code by the three major political parties – Congress, Telugu Desam and Praja Rajyam – to the State Election Commissioner I.V. Subba Rao.

FBV convener E.A.S. Sarma said that the complaints related to setting up of hoardings at public places without permission, defacement of walls and utilisation of RTC buses by the Rajasekhara Reddy Government to announce the welfare schemes initiated by it. He said that the violations continued even after announcement of the election schedule. He demanded a check on the violations to promote fairness and objectivity in the election process. Mr. Sarma also sent a copy of the letter to the Election Commission of India.

http://www.hindu.com/2009/03/06/stories/2009030660510300.htm

 

 

B.C. proposes aboriginal title and rights legislation

Last Updated: Thursday, March 5, 2009 | 5:32 PM CT

B.C.'s Minister for Aboriginal Relations is hopeful the province's First Nations leaders will support his proposal to recognize aboriginal title and rights by enshrining the province's new relationship with their people into law.

Minister Mike de Jong says his proposed legislation will help end 150 years of marginalization, but in order to move forward the minister needs a positive vote from the members of the First Nations Summit meeting in Victoria this week.

On Thursday morning, de Jong made an impassioned plea to the chiefs attending the summit to support the principles laid out in a discussion paper he presented to them.

Those principles included officially recognizing that "aboriginal rights and title exist in British Columbia throughout the territory of each Indigenous Nation that is the proper right and title holder, without requirement of proof of claim."

Essentially, the proposed legislation would recognize the existence of First Nations, with their own laws, governments and territories and title to the land.

"You shouldn't be required to stand in a court and call evidence of the rich history of your culture and your centuries of presence in this part of the world," de Jong told the summit.

Positive reaction seen

Many of the leaders reacted positively to the draft legislation.

Guujaaw, president of the Council of Haida Nation, said the proposal was a significant step in First Nations' relations with the B.C. government.

"Certainly it's a far cry from where we were, when the notion was to exchange all of our titles for treaties," he told CBC News.

Chief Judith Sayers of the Hupacasath said the legislation would give the government a clear mandate to negotiate revenue-sharing with First Nations.

"It's incredibly significant. We have been working on this for almost three years," she said.

Members of the First Nations Summit were expected to vote Friday on the principles contained in the discussion paper.

If they do vote to support the principals, de Jong then intends to draft the legislation within a month and present it for passage in the legislature before the coming provincial election in May.

The legislation represents a significant step in a long political turnaround for Gordon Campbell's B.C. Liberal party.

After winning the 2001 election, Campbell held a controversial referendum on treaty negotiations that threatened to deepen divisions between the province and First Nations.

But instead, after winning the 2005 election Campbell kick-started stalled treaty negotiations with a promise to forge a new relationship with the province's First Nations, based on government recognition of aboriginal title and rights.

Since that time, two significant treaties and several interim agreements have been signed with several First Nations, including one controversial deal with the Tsawwassen south of Vancouver.

Critics have said the process has been to costly and has little to show for real results.

Historically in British Columbia, unlike in other provinces, lands were never legally ceded by First Nations to the British colonial governments, with the exception of a few small areas near Victoria.

http://www.cbc.ca/canada/north/story/2009/03/05/bc-aboriginal-title-legislation.html

 

 

Global Water Resources Threatened by Climate Change and Population Growth
    by Robert Kropp

Report finds that business is failing to address impact of water scarcity on its operations, and provides investors with questions pertaining to water risks to ask of their portfolio companies.

SocialFunds.com -- It could be said that the global economy runs on water.

70% of the water used globally is for agriculture, with as much as 90% in developing countries where most of the worldwide increase in population of 50 million people per year is occurring. Electric power plants account for 39% of all freshwater withdrawals in the United States. Water is an important resource for the high-tech industry, especially for semiconductor manufacturing. Intel and Texas Instruments alone used more than 11 billion gallons of ultra-pure water for cleaning and rinsing in the production of silicon chips in 2007.

Yet according to a report issued by Ceres, a coalition of investors, environmental groups and other public interest groups, and the Pacific Institute, a nonprofit research organization, few businesses and investors are paying attention to the financial threat presented by water scarcity problems around the world.

The report, entitled Water Scarcity & Climate Change: Growing Risks for Businesses and Investors, maintains that the impact of water scarcity and declining water quality on business will be extensive, and that climate change is likely to exacerbate already diminishing water supplies.

Mindy Lubber, President of Ceres, said, "The report's conclusion is eye-opening. Climate change is exacerbating water scarcity problems throughout the world, yet few businesses and investors are paying close enough attention to assess the risk, integrate it into their assessments of companies, and act on it."

The report finds that the global supply of water is rapidly becoming unsustainable. It is estimated that by 2025 two-thirds of the world's population will live in regions that are already water-stressed. The percentage of global land classified as very dry has doubled since the 1970s, and natural water storage capacity and long-term annual river flows are also declining, especially in the Northern Hemisphere.

Climate change is likely to cause a decrease in natural water storage capacity from glacier and snowcap melting, increase water scarcity due to changes in precipitation patterns, and increase the vulnerability of ecosystems.

Climate change will also contribute to the already serious problem of declining water quality. At present, almost 900 million people worldwide lack access to safe drinking water, and those numbers are expected to rise as climate change contributes to an increasing contamination of groundwater supplies and environmental health risks associated with water.

Climate change is also considered to be a significant factor in a number of water-related problems that have impacted business in the past few years. According to the report, "China and India are seeing growth limited by reduced water supplies from depleted groundwater and shrinking glaciers that sustain key rivers. California is limiting agricultural water withdrawals due to drought. France, Germany and Spain were forced to shut down dozens of nuclear plants due to a prolonged heat wave and low water levels."

Identifying water-related risks specific to eight key industries, including electric power, high-tech, beverage, and agriculture, the report finds that disruptions in water supply can undermine industrial and manufacturing operations where water is needed, contaminated water supplies may require additional investment and operational costs for pre-treatment, and water resource constraints make companies more susceptible to reputational risks.

Noting that the right to water is indispensable to the realization of many other internationally recognized human rights, including the right to food, the right to health, and the right to adequate housing, the report anticipates that water scarcity will lead to more stringent water policies from a regulatory standpoint.

Yet despite its finding that a scarcity of clean, fresh water presents increasing risks to companies in many countries and in many economic sectors, the report concludes that business is failing to address the problem, and investors have not yet pursued steps to better understand potential water-related exposure in their portfolio companies.

"Weak corporate disclosure on water risks and response strategies are especially glaring," according to Lubber of Ceres.

Dr. Peter Gleick, President of Pacific Institute, said, "Only 20% of corporations that we assessed look at real risks of water scarcity and contamination, and only 10% describe supply chain risks. Almost none of the companies address the risks of climate change."

The report offers a number of suggestions for companies to consider in evaluating and addressing water risks. Companies should measure water footprints throughout their supply chains, assess risks associated with their water footprints, engage key stakeholders, integrate water issues into strategic planning, and improve disclosure of water risks.

Anne Stausboll, CEO of the California Public Employees Retirement System (CALPERS), the nation's largest public pension fund with approximately $170 billion in assets, said, "The report calls for improved corporate disclosure so that investors are better equipped to evaluate companies' position relative to their peers on water-related risks and strategies."

In an excerpt from the report that Ceres and the Pacific Institute considered to be enough importance to investors to publish as an independent document as well, recommendations for questions that investors should ask of their portfolio companies were explored.

The report recommends that investors ask the following questions:

Does the company measure and understand its water footprint? Has the company assessed the business risks associated with its water footprint? Does the company engage with key stakeholders as a part of its water risk assessment, management, and long-term planning? Has the company integrated water risk into its overall business planning and governance structure? Does the company disclose and communicate its water performance and associated risks?

"With impacts of climate change on water resources already affecting businesses, this report provides a first-of-its-kind list of key questions companies and investors should be asking – and responding to – in an integrated way," said Jason Morrison, program director at the Pacific Institute and the report's lead author.

http://www.socialfunds.com/news/article.cgi/2641.html

 

Tree-Planting Project Has Threefold Purpose

By Debra McCown
Reporter / Bristol Herald Courier
Published: March 5, 2009

HAYSI, Va. – Strip miners and environmentalists are working with schoolchildren to make the world a better place – by planting chestnut trees.

In what once would have been an unlikely collaboration, three very different projects converged in the tree-planting project Thursday on Splashdam Strip. The tiny chestnut trees they placed in the ground are hope threefold: to reforest surface-mind land; to revive a tree that once dominated the forest; and to help youth of the coalfield region build a solid future on their heritage.

Devin Gibson and Matt Blansett, who attend Clintwood High School in Dickenson County, have a stake in all three.

Both work part-time at Paramont Coal’s Deep Mine 26. Both said their grandparents told them about the chestnut forests that once dominated the region. And both see the work they did Thursday as part of a foundation for their futures.

Mining “puts food on the table; you’ve got to work around here,” said Matt, 17. “Mining’s going to go on. We have to power the country, … but also, when you tear things up you’ve got to go and fix them … and that’s what everyone is doing today.”

They were among more than 90 teens from Dickenson County’s three high schools – Clintwood, Haysi and Ervinton – who helped to plant about 2,000 hardwood seedlings on the strip Thursday. About 100 of those trees were American Chestnuts, which no longer populate the region’s forests due to a devastating blight in the early 20th century.

“It’s going to bring future jobs,” Devin, 17, said of the project. “The mines are not going to last forever … but the American Chestnut was a huge tree and such a beautiful tree, and maybe people in the city would like to come here and experience that.”

Restoring the land

For coal and timber companies, the tree-planting represents a new method for land reclamation: Restoring profitable forest to the land.

It’s also a way to offset carbon dioxide emissions, because trees sequester the gas.

“It’ll restore the productivity of this ground to a condition that can be profitable,” said Craig Kaderavek, regional director of forest operations for the Forestland Group, the timberland investment management organization that owns the Splashdam site, which was mined in the 1960s and 70s. “Now we’ll be able to have valuable trees [in 50 years].”

Sam Adams, the Kentucky coordinator for the AmeriCorps’ VISTA volunteer program, said an estimated 741,000 acres of land are barren because of strip mining, most covered with grasses and sparse, stunted trees.

Volunteers with the VISTA Appalachian Coal Country Watershed Team that Adams coordinates participated in the tree planting program Thursday.

Patrick Angel, soil scientist for the federal Office of Surface Mining, said growing forests on former mine sites will mean better water quality, better habitat for wildlife, timber and jobs – and that’s why the federal government is encouraging it as a reclamation method.

Environmentalist Gene Counts, a retired schoolteacher who once spent his vacations lobbying against strip mining, said collaborative projects like Thursday’s tree-planting are evidence of that change in strategy.

“We’re trying to work with strip miners … because it’s changed,” Counts said. “We’re not as radical as we were back in the ’70s, so we found a way to work with these people rather than fight them.

“We’re starting to lose our minerals, so now we need to go back and clean up our environment,” Counts said. “We are told this is one of the most beautiful counties in the state of Virginia.”

Reviving the chestnuts

To the American Chestnut Foundation, empty surface-mined sites are an opportunity to grow the blight-resistant trees they’ve developed in full sunlight, with a good chance of growth and survival. The organization has been working for decades to bring back the tree that was once king of the Appalachian forests.

While the trees planted Thursday aren’t resistant to blight, chestnut researchers said this is a training ground and a step in the process toward restoring the towering giants in the forest.

“It’s mainly just to get the people familiar with the chestnut itself so that when we do get the seed available for the resistant material we won’t have any problems with people not knowing how to grow chestnut,” said Bob Paris, a foundation researcher.

Angel said it could take five years or more for a blight-resistant seed to become available, but when they are, companies and organizations will be able to incorporate them into reforestation plans – with the ultimate goal of restoring them to their prominence.

“What we’re doing here is a grand experiment,” Angel said. “We’re learning how to do this so when the American Chestnut Foundation has the blight-resistant trees on a grand scale, then we’ll be able to out-plant them here.”

Adams said the Splashdam site is one of 10 around the region that involve the watershed team – a group of volunteers seeking to solve economic and environmental problems in coal camp communities, which are impacted by the boom-and-bust cycles of the industry they depend on.

“There is a possibility for green jobs in the future … somebody has to plant these trees, other than us,” Adams said. “It’s a possibility for diversification of the economy. And you’ve also got all the environmental benefits.”

Preserving a heritage

Counts, who coordinated the high-schoolers’ participation Thursday, said local organizations are developing hiking and biking trails in the area and, if the former strip mine landscape is restored, tourism will grow here as an industry.

“If the Creeper Trail has 600,000 people a year, we expect a million people a year,” Counts said.

The Virginia Creeper Trail is a hiking and biking trail in Washington County, Va., credited with the rebirth of the small town of Damascus and growth of that area’s economy.

Yet for the teens, reforesting the land is about much more than tourism jobs; it’s also about passing on a part of their natural heritage.

“It would be such a great thing to show grandkids and know that we helped with it, helped bring it back,” said Danielle Turner, 16, a junior at Clintwood High School.

Devin and Matt said they’re just doing their part.

“Maybe one day our children can see an American Chestnut,” Matt said.

http://www.tricities.com/tri/news/local/article/tree-planting_project_has_threefold_purpose/21319/

 

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