HC questions the gap in mineral policy

Correspondent

Royalty was fixed at Rs. 21 per tonne about 10 years ago

The State is losing nearly Rs. 5,000 cr. every year, says HC

CUTTACK: Whether the Central Government or State Government, who should formulate mineral policy in the State, who should have the primacy in having final word in fixing the mining royalties? These questions have now come up for discussion in the High Court.

Admitting a writ petition in this regard, a division bench of HC comprising Justice I.M. Qudusi and Justice Kumari Sanju Panda on Thursday issued notices to the Central Government and the State Government. The notices are returnable within four weeks and the case will come up for further hearing in the third week of April.

Questioning the improprieties in the mineral policy, a native of Cuttack city Manoranjan Sahu has moved the High Court saying there is no word like “Center” appears in the Indian Constitution. “But the Central government mis-utilising this concept is destroying the federal structure of the country”, the petition said. The petition further alleged that many mine-rich states like Orissa are suffering due to this and are becoming poorer and poorer day-by-day. Giving details of the mineral available in Orissa, the petitioner alleged that the State Government is not getting adequate royalty for the minerals available in the State. “The royalty from the minerals excavated from the State has not been revised for past ten years. Every time the State Government approaches the Union Government to raise the royalty, the Center doesn’t listen to it”, said the petitioner advocate Milan Kanungo. Speaking to newsmen here on Friday, Kanungo pointed out that the mineral royalty, which was fixed at Rs. 21 per tonne about ten years ago continues to remain the same for which the State is losing nearly Rs. 5000 crore every year over this period.

“Moreover, there is no jurisdiction for the State to control the mineral royalty”, Kanungo added.

http://www.hindu.com/2009/03/07/stories/2009030752150300.htm

CBI probe into illegal mining sought

Special Correspondent

BANGALORE: Tapal Ganesh, a mine owner from Bellary district, on Friday sought separate probes by the Central Bureau of Investigation and a sitting judge of the Supreme Court into the alleged altering of the Karnataka-Andhra Pradesh interstate boundary line deep into the areas of Karnataka by a mining company owned by Bellary district in-charge Minister G. Janardhana Reddy.

Addressing presspersons here, Mr. Ganesh alleged that the Minister’s company, which had been allotted mining lease by Andhra Pradesh to undertake mining in that State, had illegally extended the inter-State boundary line deep into Karnataka to undertake mining activity in the mineral-rich areas of Karnataka.

He maintained that it was not possible for any State agencies to bring out the truth as the Minister was a powerful member in the government.

http://www.hindu.com/2009/03/07/stories/2009030754380400.htm

Jindals defer Bengal unit by a year

OUR SPECIAL CORRESPONDENT

JSW Steel vice-chairman Sajjan Jindal (left) with Assocham secretary-general D.S. Rawat in New Delhi on Friday. (PTI)

Calcutta, March 6: The Jindals have decided to put off construction work at Salboni in West Midnapore by a year.

The group has, however, decided to start producing steel as soon as the unit goes on stream. Earlier the project was scheduled to come up in phases.

The foundation stone for JSW Bengal’s 10-million-tonne steel plant at Salboni was laid by Bengal chief minister Buddhadeb Bhattacharjee in early November. The company had then said that it would set up an iron beneficiation plant, build a pellet unit and develop coal mines in the first phase to ensure a steady supply of raw materials. Work on the steel plant, which will produce semi-finished product slabs, was to start later.

“Earlier, we had thought of keeping a gap of one year between the two processes. Now, we will do both together as there is not much market for pellet,” Biswadip Gupta, CEO of JSW Bengal, said. Gupta’s remark came hours after JSW Steel vice-chairman Sajjan Jindal said in Delhi that the Bengal project would be delayed.

“The construction work on the Bengal project has been deferred by a year. We hope things to improve by that time,” Jindal told reporters at an Assocham conference today.

JSW Steel was to start construction on the Rs 35,000-crore project in November 2008. However, in February, Jindal had said that a slackening demand and difficult conditions in the global market were affecting the Bengal plan. Banks and financial institutions had told the company to first “stabilise” the Bellary plant in Karnataka before embarking on new projects.

The lenders have also asked the promoters to stump up more cash than standard industry practice, creating further pressure on the company struggling to generate funds in a sluggish market. “We hope to complete the first 3-million-tonne steel plant within 36 months from the start of construction,” Gupta said.

The company had earlier scaled down the size of the steel unit to 3mt from 6mt in the first phase. It had planned to invest Rs 4,000 crore in the beneficiation and pellet units along with the development of two deep-pit coal blocks in the first phase, followed by the steel unit for Rs 6,000 crore. Gupta said the company would now spend Rs 10,000 crore at one go in the first phase.

http://www.telegraphindia.com/1090307/jsp/business/story_10638005.jsp

GSI to probe illegal mining along rivers in the state

7 Mar 2009, 0546 hrs IST, TNN

LUCKNOW: Taking serious note of illegal mining along river with the help of heavy machines in Uttar Pradesh, the high court on Friday

constituted a probe committee to be presided by the Geological Survey of India. The court has directed the committee to submit its report in a sealed cover to the court by May 10. The committee will comprise the members of environment and ground water departments of the Central and state governments, state secretary of mining and environment and geological scientist nominated by IIT Kanpur.

The order was passed by a division bench of Justice DP Singh and Justice VD Chaturvedi on a writ petition filed by one Noor Mohammad, while converting it into a public interest litigation (PIL) petition. The court appointed a local lawyer, BK Singh as amicus curiae to give assistance to the court in the matter. In course of hearing of the petition, the court came across the fact that illegal mining is being done by JCB machines at the river beds, especially in Hamirpur, Saharanpur, Bagpat, Jalaun, Sonbhadra, Banda, Jhansi, Chitrakoot, Allahabad and Kaushambi. The bench has sought clarification from mining secretary, Ram Bodh Maurya for not taking action against the guilty of illegal mining in Bijnore on the report of Geological Survey of India.

The bench said that illegal mining in the area has become a threat to environment and rivers. The court has asked the government if it has prepared any plan to check illegal mining and take action against mining mafia.

The court said that the state government has ample powers under Mines and Minerals (Development Regulation) Act 1957 to stop illegal mining in forests and along river beds. The court fixed May 8 as the next date of hearing in the matter.

http://timesofindia.indiatimes.com/Cities/GSI-to-probe-illegal-mining-along-rivers-in-the-state/articleshow/4236996.cms

PIL on mine revenue

OUR CORRESPONDENT

Cuttack, March 6: Questions regarding the Orissa’s mines and mineral policies have been raised before Orissa High Court through a petition seeking judicial intervention and asking the Centre to pay Rs 50,000 crore to the government for “illegally depriving it from enhancing royalty for 10 years”.

Discriminatory royalty and fixing of price (of minerals) by the Centre resulting in losses for the state, have been contentious issues for years.

It was first raised in the Seventies and later in the Nineties by the Biju Patnaik government. In 2007 the government had asked the planning commission to alter the royalty calculation from fixed rate basis to a value-based one, as the state was losing in terms of annual revenue.

Chief minister Naveen Patnaik had urged the 13th Finance Commission, during its visit to the state recently, for a levy of royalty on minerals on an ad valorum basis and had asked for a revision on regular intervals to ensure benefits for both the Centre and state.

The dispute assumes significance as the state has 59.5 per cent bauxite, 98.4 per cent chromite, 24.8 per cent coal, 71 per cent graphite, 32.9 per cent iron ore, 67.6 per cent manganese and 91.8 per cent nickel ore reserves in India.

Production during 2007-08 in Orissa was 3,284,100 tonnes for chromite, 89,686,365 tonnes for coal, 74,504,876 tonnes for iron ore and 7,06,207 tonnes for other minerals.

http://www.telegraphindia.com/1090307/jsp/jharkhand/story_10635034.jsp

Coal India awarded two blocks in Mozambique

Agreement to be formally announced later this month.

Pratim Ranjan Bose

Kolkata, March 6 Having tried for years to acquire assets abroad, Coal India has finally tasted success in Mozambique.

The company is awarded two exploratory coal mining blocks A1 and A2 by the Mozambique Government as part of its bilateral relationship with the Indian Government.

According to sources, of the two blocks A1 is the most promising and has both thermal and coking coal assets. Early estimates suggest that the block has over one billion tonne coal reserves.

The concession agreement, which will formally be announced during the Indo-Mozambique working group meeting later this month may indicate a prospective investment of Rs 700-800 crore by CIL in coal mining and production in the two blocks in a span of five years.

According to early estimates, the company may develop a production capacity of five million tonne a year in the first phase. The mines will be developed in joint venture with either the Mozambique Government or its nominee. The local partner will hold a minority stake of 10-15 per cent. CIL can export 85 per cent of the produce from the assets to India.

Investment in infrastructure

This apart the company has also promised to spend over Rs 100 crore towards distributing artificial limbs in the war ravaged country, creating a mine technology hub and setting up an institute in the lines of Indian Institute of Mines to create a human resource pool in Mozambique.

The technology hub will help Mozambique extract the optimal value of its abundant mining resources and monitor future activities in the country.

When contacted, the CIL Chairman, Mr Partha S. Bhattacharyya, confirmed that the company was awarded two exploratory assets in Mozambique. “We have promised to create a modern technology centre and a professional training institute in Mozambique,” he said. However, according to him, the company’s investment in the mining front would be assessed at a later stage.

Sources, however, told Business Line that the company aimed to complete the exploration and drilling activity in the blocks within two years at an estimated cost of Rs 70-100 crore followed by development of mine in phases. Plans should also be drawn for evacuation of the coal from Mozambique to India.

http://www.thehindubusinessline.com/2009/03/07/stories/2009030751080300.htm

JSPL allotted Ramchandi Promotional coal block for CTL project

Jindal Steel & Power Ltd has announced that Government of India has allotted Ramchandi Promotional Coal Block in Orissa to Jindal Steel & Power Ltd on February 27th 2009 for the proposed Coal to Liquid project.

The prestigious CTL project is yet another feather in JSPL's cap. The project will produce 80000 barrels per day crude using environment friendly Indirect Coal Liquification technology developed by M/S Lurgi of Germany for the first time in India. This project, when completed, will enhance energy security by reducing dependence on imported crude.

This project will require 30 million tonne per annum washed coal for 80,000 barrels per day and the middling & rejects will be used for generating 1350 MW power. The entire project cost is estimated to be around INR 42000 crore including CTL plant, coal mining and power plant. This project will be based on Fixed Bed Dry Bottom Technology of Lurgi, which is best suited for Indian coal having high ash. It is worth mentioning that our technical partner Lurgi, Germany has designed all Syngas production units for all currently operating FT plants all over the world. This is the only commercially proven technology for use of high ash coal worldwide and high ash fusion temperature of Indian coal is uniquely suitable to this technology.

Beside, this project will maximize diesel up to 60% to 70% production by using low temperature Fischer Tropsch process. JSPL is in advance stage of implementation of 6 million tonne per annum mega steel plant at Angul and capacity of this plant is going to be increased to 12.5 million tonne per annum.

JSPL is the first Company to bring coal gasification technology to India for this proposed steel plant. We have already placed orders for 2 gasifier units on Lurgi for our upcoming steel plants in Orissa and Chattisgarh. The proposed CTL plant will be located in Tehsil Kishore Nagar, Dist Angul, Orissa. The site has been selected keeping in mind availability of land, water, rail & road connectivity and is around 70 kilometers from Ramchandi Promotional Block. The proposed technology is extremely environment friendly as the crude produced by the process will have very low Polyaromatics. C02 will be captured and used in fertilizer industries or for inert purposes. 100% recycling of water is planned. Ash generated will be used for road building, brick making, cement manufacturing and back filling of mines. The technology involves almost 100% recovery of sulphur as elemental Sulphur which will be used in fertilizer industry.

Meanwhile, JSPL has a track record of successfully executing green field projects in the country. JSPL has also been very successful in Orissa in land acquisition and handling R & R issues. It has been recently awarded Think Odisha Leadership Award instituted by Times of India and TEFLA for its appreciation in carrying out CSR activities.

http://steelguru.com/news/index/2009/03/07/ODUxNTg%3D/JSPL_allotted_Ramchandi_Promotional_coal_block_for_CTL_project.html

Orissa considers applicants for Malda iron ore mines

Friday, Mar 06, 2009

The Orissa government has completed the hearing for the Malda iron ore mines, for issue of a prospecting license over an area of about 350 hectares in Sundergarh district. The hearing for this block of iron ore had started in October 2008.

The state steel and mines department is processing applications to determine the most eligible applicant before seeking the government's approval to make recommendations to the Mines Ministry.

Mr Ashok Dalwai Orissa secretary of steel & mines department said that "We are processing applications after completion of the hearing process for Malda iron ore reserves and the most eligible claimant will be decided in next couple of days.”

There were about 57 applicants for the PL or mining lease for this block, which is a part of Malda manganese mines under the Koida mining circle. Interested steel companies include Visa Steel, Dinabandhu Steel & Power, Sree Balajee Industries, Maheswari Ispat, MSP Sponge Iron Pvt Ltd, Jindal Stainless, Chandan Minerals, BRG Iron & Steel Steels, Jindal Steel & Power, Maithon Ispat, Arati Steel and Action Ispat & Power.

http://www.yourminingnews.com/news_item.php?newsID=26071

Bolivia Plans to Seize Land for Jindal Iron-Ore Mine (Update1)

By Jonathan J. Levin

March 6 (Bloomberg) -- Bolivia plans to take 243 hectares (600 acres) of private land that contains part of the El Mutun iron-ore deposit and deliver it to India’s Jindal Steel & Power Ltd., Mining Minister Luis Alberto Echazu said.

The Regional Superintendent’s Office of Santa Cruz issued a resolution this morning to expropriate two properties, covering 112 hectares and 131 hectares, owned by Osvaldo Monasterios. Echazu said a dispute over the land delayed the mining project, which may produce as much as 2 million tons of iron ore in its first full year of output. He said Monasterios will be paid.

“We had to move to expropriate via the mining code, and this is a positive result,” Echazu said, speaking at a news conference in La Paz. “This property owner is impeding the realization of the biggest industrial project in the history of our country.”

Jindal signed a $2.1 billion commitment with the government in 2007 to develop El Mutun. The mine was expected to begin production in February this year, Arving Sharma, India’s consul general in Bolivia, said on Oct. 15.

Echazu wouldn’t say how much the government will pay Monasterios, who is also the majority owner of Bolivia’s Universal de Television network.

http://www.bloomberg.com/apps/news?pid=20601091&sid=aq4nqyADFDQY&refer=india

CIL to invite bids for 7 underground mines by end March

Projects Today reported that Coal India is expected to invite bids for development of its 7 identified underground mines by end March.

CIL has short listed 9 overseas firms for development of the identified mines and some of these firms have JVs with Indian companies. In February, it had sent the draft Notice Inviting Tender to the 9 firms. CIL is likely to hold discussions with the prospective bidders for these mines on March 7th.

The selected companies are expected to be responsible for planning, designing and operating these underground coal mines. Initially, they are expected to bear the costs of operation of the mines, which will be reimbursed by CIL later.

Meanwhile, the coal blocks are located in the mining areas of its subsidiaries, namely Eastern Coalfields, South Eastern Coalfields, Mahanadi Coalfields, Western Coalfields and Bharat Coking Coal.

http://steelguru.com/news/index/2009/03/07/ODUyNDU%3D/CIL_to_invite_bids_for_7_underground_mines_by_end_March.html

Mining – International

Mt Isa lead levels 'fault of mining'

Michael McKenna | March 07, 2009

Article from: The Australian

LEAD contamination in the soil around the northwest Queensland mining town of Mount Isa -- where a government study last year found more than 11 per cent of children are suffering lead poisoning -- is worse than that near similar mines in China.

A report by one of the world's leading lead toxicology experts, American professor Russell Flegal, and obtained by The Weekend Australian, also debunks claims by the Queensland Government and Xstrata, which took over the mine five years ago, that the lead poisoning in children was due to naturally high levels of the heavy metal in the region.

Instead, Professor Flegal, an adviser to the US Environmental Protection Agency on mining operations, concluded that historic and continuing emissions from the mine and smelting operations were the cause of the lead poisoning.

The report was commissioned by lawyers Slater and Gordon, representing several children in a negligence case who tested with dangerously high lead blood levels.

Studies in Australia and the US have linked high blood lead levels to learning and behavioural difficulties in youngsters.

Professor Flegal's report was released as it was confirmed that new Queensland government equipment for the daily monitoring of lead emissions has been sitting idle in Mount Isa for several months.

Last July, Environment Minister Andrew McNamara said that the monitors -- introduced after The Weekend Australian exposed the extent of the lead problem -- were going to be in operation within a month.

But local Labor MP Betty Kirnan, who was campaigning with Premier Anna Bligh, blamed last month's floods for the delays in setting up the equipment that would, for the first time, provide daily lead emission monitoring.

Ms Bligh said the Government's "lead alliance", involving a health program to minimise exposure, would combine with the new emissions monitoring to reduce the problem.

"We really need to keep the program going and keep the momentum going," she said.

Last year, the state Government joined Xstrata in claiming there were many causes of the lead problems, but that primarily high blood lead levels were due to the town's location in a "highly mineralised" region.

But Professor Flegal, who visited the town last year and reviewed scientific studies on the mine and town, said the metal was too far underground to have any impact.

"It is my opinion that the predominant cause of anomalously elevated blood lead concentrations of children living near the MIM mining and smelting operations is from historic and ongoing lead contamination of their environment from those operations," he said.

"I found no evidence that natural sources could account for the anomalously elevated levels in children in Mount Isa."

In 2006-07, the commonwealth's annual National Pollutant Inventory report found that the Mount Isa mines pumped out more sulphur dioxide, lead, copper, zinc, cadmium and antimony than any other single operation in Australia.

Professor Flegal said "exceptionally high levels" of lead in soils around the town were higher than had been found in similar operations in China and Romania, often cited as among the worst polluters in the world.

Damian Scattini of Slater and Gordon said the report debunked claims the source of the lead poisoning was natural. "We have given them clear scientific evidence that the cause of the problem has been the historical and current practices at the mine," he said.

"It is time they came clean and face up to their responsibilities."

http://www.theaustralian.news.com.au/story/0,25197,25150722-601,00.html

Mpumalanga police warn against illegal gold mining

0 COMMENTS |

By: Sapa

6th March 2009

JOHANNESBURG (miningweekly.com) - The "bellies of the earth" will swallow illegal miners trying to strike it rich in the "bowels" of the gold mines in Barberton, Mpumalanga police warned on Friday.

Rescue workers had recovered the bodies of 19 illegal gold miners at Consort mine, in Barberton. At least one more body has yet to be retrieved, Captain Leonard Hlathi said in a statement.

They died in a fire started in the mine on February 21.

Shortly after the incident, London-listed miner Pan African Resources said the miners started a fire while conducting illegal mining activity.

"Management have sealed off the area and all necessary safety precautions have been taken; no mine employees have been harmed," the company said.

"They all died of smoke inhalation," Constable Jabulile Ndubane said after the first 16 bodies were found in the two weeks after the fire.

Hlathi said on Friday that 86 illegal miners had been arrested at the neighbouring Sheba mine.

Security guards at the mine arrested 24 of them during routine patrols inside the mine on Wednesday. On Thursday, they arrested another 52 people who had illegally gained entry. All of them were to appear in the Barberton Magistrate's Court on Friday.

"We believe there are still bodies trapped underneath the mine," said Hlathi.

“The survivors told the police that when they went inside the mine they were in groups, but the retrieved bodies do not reflect the number of people who entered the mine."

He said 15 of the illegal miners found dead so far had been identified by their next-of-kin.

"It has been established that some of the people mining illegally at the mines entered the country illegally and it will be difficult to establish their countries of origin.”

'ALARMING PROPORTIONS'

Meanwhile, Mozambique said that illegal mining of precious rubies from the province of Niassa was reaching "alarming proportions”.

“We're seeing a proliferation of illegal mining activity of rubies in M'sawize in Niassa province and it is reaching alarming proportions,” the Mines and Natural Resources Minister Esperanca Bias told the Maputo-based State-controlled daily Noticias.

Bias said the mineral which is used in the manufacture of jewellery was illegally exported to Thailand in Asia.

She did not give figures on the quantity of the illegal exports.

Bias said the discovery of the illegal exports was the latest in a
string of discoveries of deposits of precious or semi-precious stones, which were then exploited illegally, with little or no benefit to the country.

Last year there was an influx of local and foreign illegal miners in Manica province, near the border with Zimbabwe, after reports of diamond discoveries.

Several illegal miners died when some of the unsecured mines collapsed.

Authorities responded by arresting the illegal miners who included Cameroonians, Nigerians, Somalians, Zimbabweans and locals.

The ministry of mineral resources licenses mining operations, but control over mineral resources was exercised by police, the border guards and the customs service.

Control was often poor due to the country's porous border.

http://www.miningweekly.com/article/mpumalanga-police-warn-against-illegal-gold-mining-2009-03-06

Guyana to enforce ban on mining along its borders

Associated Press, 03.06.09, 10:26 AM EST

Guyana says it will start enforcing a ban on mining along its borders to avoid conflicts with neighboring Venezuela.

Mines Commissioner Bill Woolford says a law prohibiting mining 1,000 feet (300 meters) from an international border has not been enforced in the South American country.

Woolford said Friday that authorities will be issuing stop-work orders to gold and diamond miners in the area and will patrol to ensure compliance.

The law also applies to the borders with Brazil and Suriname, but most of the problems have been along the disputed boundary with Venezuela.

Guyana accused Venezuela of blowing up two river dredges in its territory in 2007.

http://www.forbes.com/feeds/ap/2009/03/06/ap6135600.html

As projects grow, Forest Service moves to regulate drilling and mining

By NOELLE STRAUB, Greenwire

Published: March 6, 2009

In a sharp break from the past, the Forest Service is getting ready to write regulations for private drilling and mining operations in national forests.

The move comes as tensions grow in Eastern forests where the government owns above-ground resources but not rights to those below. Increasingly, companies are moving to tap oil and gas beneath the forest floor.

Environmentalists say the Forest Service has failed to apply environmental restrictions on road building and drilling on public lands. Industry counters by saying it has worked well with the agency for years and no changes in that relationship are needed. In fact, industry maintains that the Forest Service has no authority to write new rules.

The flashpoint: Allegheny National Forest in Pennsylvania, where at least four lawsuits are pending.

On Dec. 29, 2008, the Forest Service published a notice in the Federal Register saying it was "preparing to promulgate regulations to provide clarity and direction on the management of National Forest System surface resources when the mineral estate is privately held."

The notice said the rulemaking would also specifically address Allegheny, which has seen an exploration boom in the past two years as companies rush to drill the prolific Marcellus Shale (Land Letter, Feb. 12).

The agency was not proposing specific approaches, the notice said, but rather calling for public comment to help determine the extent and scope of the rulemaking. How the service ultimately acted would depend on the comments, court decisions and "practical options" using administrative tools, the notice said.

The comment period ended Feb. 27 but will be reopened. The Forest Service wanted to extend the period for 30 days but missed getting the necessary paperwork to the Federal Register on time, said Tony Ferguson, the agency's director for minerals and geology. But within a week, the agency will open another 30-day comment period.

Much confusion surrounds minerals rights in national forests, Ferguson said, and the regulations would address a whole series of issues and questions. "I can't really say what the complete next step will be," he said. "What we anticipate to do is to move forward with a rulemaking. A lot of it depends on the comments and analysis of the comments."

'A remarkably poor policy'

The Sierra Club last month submitted comments urging the Forest Service to more aggressively regulate oil and gas drilling through a new permitting system that requires environmental assessment of all drilling impacts, protection for forest habitats and wildlife and swift cleanups after work is done. The group also wants assurances that the public is an integral part of the decision-making process.

The group has also filed a lawsuit over the Allegheny situation, saying the Forest Service violated the National Environmental Policy Act by allowing development without an environmental analysis. Sierra Club officials say that Allegheny, in particular, needs better management because oil and gas companies own subsurface rights under more than 90 percent of the forest and that unregulated drilling threatens habitat and is damaging a popular tourist destination.

Public Employees for Environmental Responsibility (PEER) also filed comments calling for new regulations. "USFS has not imposed the slightest protection for its most ecologically sensitive lands or wildlife from damaging extraction operations," the group wrote. "This posture is both contrary to law and constitutes a remarkably poor policy choice for a federal resource agency."

The group added, "In essence, the Forest Service has had its head in the sand for the last generation. Unless it updates its approach, a federal court will step in to do the job for the agency."

Jeff Ruch, PEER's executive director, said the Forest Service has not dealt with the problems until now, when it has been forced to by the lawsuits. "In essence, it's going to be dropped in a tangled mess on the desk of whoever the next Forest Service chief is," Ruch said.

"The Forest Service, in contrast to its Interior sister agencies, has taken the position since the Reagan administration that private mineral rights trump all environmental laws, so the Endangered Species Act doesn't apply, NEPA doesn't apply," he added. "And you've had situations ... where the oil and gas company comes in and says, 'We're going to do the following things, and you can't stop us.'"

The group cited a confidential memo it obtained that was written by the Interior solicitor's office last year. The memo advised that the Forest Service had come to an "incorrect" conclusion in determining that an energy company wanting to put a gas well and access road in the Monongahela National Forest in West Virginia would not trigger NEPA or Endangered Species Act requirements, and that the Forest Service could impose "reasonable conditions and mitigation measures."

http://www.nytimes.com/gwire/2009/03/06/06greenwire-as-energy-projects-grow-agency-moves-to-regula-10025.html

Minmetal urges for reducing state funding for mining acquisitions

Reuters reported that China should lower its reliance on state capital for overseas mining investments to lessen concerns abroad about government backed acquisitions. According to the report, concerns over Chinese acquisitions have been triggered by state owned companies of the world's biggest mineral and metals consumer targeting overseas mining sectors.

The Shanghai Securities News quoted Mr Zhou Zhongshu chairman of Chinese trading firm Minmetals as saying that "Establish large-sized industry funds to agglomerate relatively abundant state and private capital as a complement to relatively weak mining investment capital of domestic mining firms."

Mr Zhou, a delegate of China's top political advisory body said in a proposal that could change the current situation that domestic bank loans are the only financing channel for Chinese companies developing overseas mining resources to depoliticize overseas acquisitions."

Mr Zhou who heads the company which bought Australia's OZ Minerals Ltd the world's No. 2 zinc miner for USD 1.7 billion last month said "The country could establish a national metals mining development fund, which could be combined with the country's forex reserves."

Aluminum Corp of China has purchased assets in Anglo-Australian miner Rio Tinto Ltd/Plc and Chinese steel mill Hunan Valin Iron and Steel bought into Fortescue Metals Group in February.

Analysts have questioned the Australian government's willingness to let Chinese state owned firms take big stakes in local miners at a time when low commodity prices have left companies vulnerable to overseas predators armed with state funds.

http://steelguru.com/news/index/2009/03/07/ODUyNDk%3D/Minmetal_urges_for_reducing_state_funding_for_mining_acquisitions.html

Peru Mining Conflicts 'Growing Critical'

March 6, 2009

WASHINGTON, Mar 6 (OneWorld.net) - Most Peruvians don't benefit from the country's lucrative mining industry, and the increasing violence this situation has spurred threatens local communities, says a new report by an international anti-poverty organization.

· Workers load mining equipment in Peru © Debbie and Tadd (flickr)"Peru is not converting its resource wealth into benefits for its poorest citizens," writes Oxfam America. While half of Peru's population lives in poverty, the government receives more than $2 billion per year from extractive industries, such as gold and silver mining, and the construction of natural gas pipelines, specifies the international development agency. The Peruvian government, mining industry, international donors, and civil society must therefore ensure that mining revenues trickle down to all sectors of society, so that desperate and frustrated low-income communities no longer resort to violence to demand a more equitable distribution of resources, says Oxfam (see full story below).

· Numerous incidents of conflict related to mining projects in Peru have been registered over recent years. Just last month, Oxfam reported "controversy and torture allegations in northern Peru as farmers resist mining in an environmentally sensitive area."

· For background on development and human rights in Peru, see OneWorld.net's Peru country guide.

WASHINGTON - Peru may face a crisis that could hinder the long term viability of the nation's mining industry, says international aid agency Oxfam America. The Peruvian government, the mining industry, international donors and civil society must act quickly to help the country break the current cycle of conflict and ensure that mining helps reduce poverty and contributes to Peru's development.

Since 2006, Peru has seen an impressive annual economic growth rate of more than six percent. Mining has been the main driver of this impressive growth with copper production doubling and gold production up 30 percent over the past five years. Peru's mineral wealth has attracted investment from a wide range of foreign mining companies, including 13 of 17 members of the International Council on Mining and Metals (ICMM). Mining exports surpassed $17 billion in 2007, amounting to 62 percent of the country's total exports.

"In the midst of this economic windfall, Peru's regulatory infrastructure remains weak and under-resourced," said Raymond C. Offenheiser, President of Oxfam America. "Forty percent of all Peruvians remain in poverty; in the mineral-rich Andes region, poverty rates exceed 70 percent."

Since large scale resource extraction generates relatively few jobs, mining benefits must trickle down to communities through government programs that redistribute revenues. In Peru, this redistribution process has proven highly problematic because of limited governmental capacity to regulate the industry. Currently, the Ministry of Energy and Mines is tasked with both promoting mining investment and enforcing social and environmental regulations-a problematic conflict of interest. The new Ministry of the Environment should assume this role to regulate mining and strengthen the independence of this ministry.

"There is a justifiable sense of frustration among the Peruvian people impacted by mining who have not reaped the benefits of resource wealth generated from their lands," said Offenheiser. "They have not seen these revenues translate into health services, education, or infrastructure to improve their everyday lives."

In many areas around large-scale mining operations, this frustration has lead to conflict and violence. The Peruvian government's public defender's office, Defensoria del Pueblo, recently counted more than 70 active conflicts around mining operations spread across the country.

"Communities do not trust the government to address their concerns and protect them from pollution and other harms that mining can cause," said Offenheiser. "They're left believing organized protesting is the only option for making their voices heard."

The Peruvian government has cracked down on social protests and criminalized activities defined "anti-mining" for fear that local protests could potentially disrupt foreign investment in mining. To make matters worse, some mining companies have exacerbated social tensions by using private security forces that have been accused of violating human rights.

Several steps, outlined in a new paper from Oxfam America, need to be taken by government, mining companies, international donors and civil society groups to reduce conflict and preserve the long term viability of the mining sector in Peru. These include recognizing the right of community consent; condemnation of all threats and harassment; strengthening government capacity and independence; and full disclosure of information on the social, environmental and economic impacts of mining.

At a minimum, mining companies should actively participate in Peru's Extractive Industries Transparency Initiative (EITI) process, a global initiative designed to promote disclosure of revenue payments by oil, gas and mining companies. Members of the US Congress can help take this a step further by supporting legislation to make revenue disclosure mandatory. The Extractive Industry Transparency Disclosure (EITD) bill was introduced in the House and Senate in 2008. This legislation, expected for reintroduction in 2009, would require all oil, gas, and mining companies registered with the SEC to disclose their payments to host countries and extend transparency as a truly global standard for company operations.

"By publishing what they pay to the government, mining companies could help communities hold the government accountable for ensuring local economic development," said Offenheiser.

International donors, like the International Finance Corporation, can support these efforts by insisting on transparency, backing government efforts to strengthen capacity, supporting civil society efforts to hold mining companies accountable for compliance with human rights and environmental standards, and helping the Peruvian government diversify its economy in order to the reduce the country's dependence on resource extraction.

"Acting with full transparency and involving affected communities in the process from the start will go a long way to address the underlying cause of conflict," said Offenheiser. "This would open lines of communication that could foster the long term viability of the industry and the ability of mining to contribute to the development in Peru."

http://us.oneworld.net/places/lebanon/-/article/360824-threat-conflict-plagues-mines-peru

Layoffs In The Mining Sector

By KBJR News 1

Story Published: Mar 6, 2009 at 6:19 PM CST

Story Updated: Mar 6, 2009 at 6:19 PM CST

The U.S. Department of Labor is reporting last month's unemployment rate as the nation's highest since 1983.

Right now it's at 8.1% and parts of the Northland are facing unemployment numbers in the double digits.

For the mining sector, that means layoffs and shutdowns.

Chris Buckley has the details.

Market conditions mean several Iron Range mines will be idled in the coming months.

Northshore Mining in Silver Bay will be shut down next month though Cliffs Natural Resources says many employees will stay on for maintenance.

UTAC will shut down for planned maintenance for six weeks beginning in May.

They've already idled a furnace there and gone to a 32-hour workweek.

Company officials say if the Union votes to continue with those hours, they'll be able to avoid nearly a hundred layoffs in the coming months.

Hibbing Taconite will be shut down from mid-May to the end of August
They're looking at up to 83 layoffs at the end of next month if the outlook doesn't improve.

Keetac has been idle since December, and U.S. Steel is idling two more lines at Minntac laying off more than 500 workers there.

"The latest round of bad news comes from Arcelor Mittal, where a one-month planned shutdown will now most likely be four months. The plan is to stop production in April and hopefully resume in August."
In the meantime, the Polymet project in Hoyt Lakes is in the final stages of the environmental review process.

And Range legislators are opposing a new bill that would essentially kill the project.

"This legislation could even stop mining as we know it today, and when US Steel announces 600 layoffs in addition to the other 500, we've got 1,100 on layoff and somebody introduces legislation that would questions whether mining is even legal, we have the potential of these people never getting hired back. I'm extremely disappointed in this legislation and I'll do everything I can to stop it."

The legislation was introduced last month.

http://www.northlandsnewscenter.com/news/local/40873222.html

Other News – India

Coalition sparks Labor backflip on indigenous child protection

6/03/2009 4:13:00 PM

Prime Minister Kevin Rudd is "out of touch" with what is going on in the Northern Territory, according to Shadow Minister for Justice and Customs, Sussan Ley.

The member for Farrer believes the Labor government needs to commit to a long-term, properly funded plan for tackling these issues.

Earlier this week Ms Ley took the Rudd Labor Government to task for cutting essential funds to the Australian Crime Commission (ACC) investigating crime in the Northern Territory.

She joined indigenous leaders and child protection workers in calling for the Government to act responsibly and commit funds to deal with the ongoing issues in the Northern Territory.

Since then Mr Rudd overruled his Minister for Home Affairs, Bob Debus, and overturned the careless decision which was going to cut $4.5 million in funds to the ACC taskforce investigating indigenous child abuse, drug trafficking and alcohol related crime.

“It is shameful that it came to this.," Ms Ley said.

"We need certainty and continuity when it comes to indigenous child abuse and drug trafficking in remote communities. The Rudd Labor Government is playing with politics with people’s lives.

“Mr Rudd is acting like a contestant on Big Brother, making decisions based purely on what will win him votes. Good government is not a popularity contest.”

She said the safety of 35,000 indigenous children was what matters, not the next Newspoll result.

If the Coalition had not raised this in the media would Mr Rudd have made this decision? she asked.

http://theland.farmonline.com.au/news/state/agribusiness-and-general/general/coalition-sparks-labor-backflip-on-indigenous-child-protection/1452530.aspx

‘People need to be aware of govt schemes’

Statesman News Service
SANTURI (Purulia), March 5: The local CPI-M MLA, Mr Rabindranath Hembram, has stressed the need to raise awareness of flagship programmes such as the National Rural Employment Guarantee Scheme Act (NREGA), National Rural Health Mission (NRHM), Bharat Nirman (BN), and Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
Mr Sandipan Dasgupta, field publicity officer of Purulia, Bankura and Burdwan, has subsequently conducted three separate one-day awareness seminar camps at three sites in Raghunathpur's Madhutati and Puncha's Sargara and Santuri. The department also conducted half-day programmes at Kushjhori in Kashipur, Manbazar I and II, Neturia, Raghunathpur II and Purulia I.
During one such day-long seminar organised by Mr Tarun Sangha on Santuri Block office grounds, 50 km from Purulia town last week, MLA Mr Hembram highlighted and explained the rural campaigns, guided by the directorate of field publicity. The MLA added: “One day is not enough. It is essential to extend the camp for a few more days, for the sake of the villagers.”
The field publicity officer said: “The ministry of information and broadcasting has been undertaking campaigns across the length and breadth of Purulia and Bankura districts to disseminate information about initiatives for rural development taken by the Centre government in the past four and half years. The campaigns reached out to all stake holders, and particularly to the intended beneficiaries, with a view to securing their full participation in the programmes.”
Mr Dasgupta is especially keen to spread knowledge on the 2005 Right to Information Act, pointing out that the act has significantly contributed towards greater transparency and accountability in public life, and could do still more.
During the seminars, different speakers highlighted the standards of rural electrification, water supply, housing, roads, telephony, and irrigation. They also explained the Sarba Siksha Abhiyan, mid-day meal scheme and integrated child development services scheme. In addition, they tackled issues relating to the standards of treatment in rural hospitals.
Mr Gobardhan Mahato, a villager of Santuri, expressed his gratitude for the programme: “Earlier, we never knew that a legal guarantee would help us to receive the benefits of the 100-day job scheme.”

http://www.thestatesman.net/page.news.php?clid=9&theme=&usrsess=1&id=246143

‘Female foeticide a critical issue’

THE SATURDAY INTERVIEW - Brinda Karat

Brinda Karat, CPI-M member of the Rajya Sabha, is the only woman in the party’s 15-member Politburo. A firebrand MP, she has in the last three-and-a-half years of her Rajya Sabha membership, championed women’s issues, including the Women’s Reservation Bill, and secured support from MPs across several parties.
An alumnus of Welham School, Dehra Dun and of Delhi’s Miranda House, she created a stir at her party’s 16th congress in Kolkata in 1998 by demanding adequate representation for women in the party’s Central Committee. The 61-year-old Mrs Karat is married to the CPI-M’s top boss, general secretary Prakash Karat.
In the last session of the Rajya Sabha, the government accepted several of her amendments to the Code of CrPC Bill, 2008, that has brought about some fundamental changes in the country’s criminal justice system after its passage. In an interview to DEEPAK RAZDAN she spoke about this and other important issues.

Excerpts:

How did you get most of your amendments to the CrPC Amendment Bill accepted?
Well, you know the amendments which had been moved to the Bill were so wide-ranging in scope, and we had actually got the final Bill only a few days before it was to be placed in Parliament. I was horrified to find that the recommendations made by the Mallimath Commission, and also one section of the amendments made on the recommendations of the Law Commission, were actually inimical to women’s rights.
Basically, it meant that the seriousness of the crimes against women was being diluted, and those crimes were going to be made compoundable. Therefore, as far as I was concerned this was going to be a big step back for the women’s movement. We have always said the state and society have a responsibility to prevent violence against women. Once you make it compoundable, it means it is really between two parties. So, it becomes a personal issue. It is from that angle and I was happy that at least some of the amendments which I had moved, the home minister was kind enough to accept.

The lawyers have some apprehensions on the amendments and are agitating.
As far as the lawyers are concerned, I really don’t know what their objections are. My objections were primarily because I did not want crimes against women ~ the seriousness of them ~ to be diluted.

You had campaigned against female foeticide in a big way in Punjab, and asked questions in Parliament.
It is a very critical issue for India. I personally believe that we are ignoring this issue at our own peril. We have already seen the results of female foeticide in the sharply declining sex ratios in many so-called developed states like Punjab, Haryana, Himachal Pradesh, Gujarat and to some extent Maharashtra. In one or two of these states, we have seen how brides are being literally imported from other states, and the kind of social implications of such a phenomenon. I think it is escaping people who make laws and who lead political parties. I believe this is not just an issue which concerns women, it concerns society as a whole, and I deeply regret that the importance which should be given for a national campaign in a mission mode is not being done, although when I had made this suggestion in Parliament, the government had accepted it. But I don’t see it on the ground at all.

What kind of feedback have you got on your campaign?
Unfortunately, the culture of son preference is very strong and prevalent in our country. In fact, I believe that the nature of our development process and this huge boost in blind consumerism are also leading to increasing dowry demands and it has now become the most socially sanctioned crime.
Those who are taking dowry believe it is their birthright since they have a son in their family to demand dowry and those who are giving dowry are more vulnerable and they believe unless they give dowry, they are not going to get their daughters married. Both sides in some way are really conniving at it, although the main responsibility is on those who are demanding dowry.
In such a situation, when dowry is increasing, I can tell you, female foeticide is a black shadow which accompanies increased dowry demands.

How do you react to recent reports of “honour killing” of women who marry against the traditions of their families?
I am glad you asked me this because in the last session of Parliament, when I asked this question, it was a starred question, and the written answer I got was shocking. All it said was the National Crime Bureau does not register any such crime as an honour killing. This was in the context of the approach of the Government of India which was made clear during a debate in the United Nations on a report on violence against women, in which the government representative ~ at that time Mr Vajpayee was the Prime Minister ~ had said there was no such phenomenon as honour killing in India on record in the United Nations.
I had written to Vajpayeeji and said this is completely untrue. This was in 2002, as far as I remember, and this government continues to hold that completely wrong perception that there is no such thing, when it is happening every day, 10 or 15 km from the capital.
So, I believe this is a crime which has got the patronage of politicians in many of these states because it is linked to caste politics. It is the caste system which is basically responsible for this horrendous crime.

Is the Indian woman finally safe with laws like the Dowry Prohibition, Domestic Violence against Women, and the Sexual Harassment of Women at Work Places?
I wouldn’t put it that way. But certainly any country, any civilised country, must have a legal framework which translates into legal terms the constitutional guarantees the citizens have. Therefore, we do require a progressive and advanced legal framework.
To some extent, in India, because of women’s movements and women’s own struggles, we do have certain laws which could help women access justice, although there are many loopholes and lacunae in the law. As far as women being safe is concerned, obviously a law can’t keep women safe, but it is society and social approaches which can keep them safe and in which women themselves can feel safe. However, because we have laws which are not implemented ~ very often there is no political will to take action against criminals ~ you have a situation where even in the capital of the country, the largest number of child sexual abuse cases are committed, but the crime rate is shown to be very low, which then encourages criminals to commit the crime again and again.

How are women dealt with by the NREGA?
We had fought to ensure that women have rights under the NREGA and it is only the intervention of the Left which ensured that women would have equal rights and wages under the NREGA.
The NREGA has provided opportunities to women and now over 40 per cent of the work-days are taken by women ~ in some states it is as much as 80 per cent ~ but the nature of the work itself is very hard and cruel and sometimes the productivity norms are so high that women have to carry as much as 1,500 kg of mud every day just to get a daily wage. This is an absolutely impossible task for a woman who in any case is so malnourished that it is just cruel to use her vulnerability ~ it is like slave labour. Therefore, I have been demanding that the productivity norms and the nature of work women are expected to do must be revised in the light of the experience of the last two years and made more women-friendly.

In farmers’ suicide cases, women’s suicides don’t bring any compensation?
They don’t as far as land is concerned, but at the same time, they are expected to repay the debt of the person in whose name the land is registered. So, it is double fault as far as women are concerned, which is completely unjust. Therefore we have said, even in the enumeration of the figures of suicides, very often when a woman commits suicide, it is not accepted as a farmer’s suicide and the family does not get the compensation which is highly unjust and unfair.

You fought for forest-dwellers’ rights successfully?
It’s an important law but unfortunately the forest department, which has been the main block for tribals to access their rights, is still playing an extremely negative role. In fact, only recently I had to point out to environment ministry officials that they had brought out a most objectionable circular in which they are still calling tribals encroachers, although the tribals have been given the legal right to the land in their occupation in the forest. The law is there but the mindset has not changed and by and large, officials and bureaucrats still see the tribals as encroachers and are delaying the process of legalising their rights. So, a big struggle is on today by the tribals and those who support their rights to ensure they get the pattas for the land they occupy in the forest.

In the last session, you introduced three private members’ Bills ~ on crimes against women, women’s reservation in Parliament and Parliamentary ratification of treaties.
Well, this is a mechanism which Parliament has created so that issues of public importance which are not getting the attention of the government can be debated. Unlike in America and other countries, the members move Bills which then become the property of the House and then governments themselves accept them. In India, it is very rare that a private member’s Bill is accepted by the government but it does give us an opportunity to raise the issue and I did it on three points which I think are most relevant after the Indo-US nuclear deal ~ the complete contempt the government showed for the majority consensus in Parliament against the deal. Therefore, we want ratification of all international agreements particularly now in the context of so many economic agreements which are affecting the rights of our people. Why shouldn’t Parliament discuss and ratify them?
Secondly, as far as the Women’s Reservation Bill is concerned, I think it is one of the betrayals of the UPA government by taking support of parties which are totally opposed to the Bill and who use that support to bargain for a cold storage of the Bill, which is what has happened.
I believe this was an opportunity where the Women’s Bill could have been adopted but the Congress leadership decided that it would rather stick to power than give women power. Therefore, I moved the Bill.
The third Bill is on an issue on which the government is vacillating and delaying ~ a comprehensive law on sexual assault. Even today, India is one of the few countries where there is no specific protocol or guarantees for victims of child abuse. No specific law against child abuse exists in this country. There are different degrees of sexual assault on women. You have an archaic phrase like “outraging the modesty of a woman”. What does it mean? It is not just outraging the modesty of women, it’s outright sexual harassment and sexual assault.

Is it your view that political parties still don’t have women’s concerns on their agenda?
By and large, I would agree that for most political parties, women’s issues are on the margins of their agenda. I think that’s because women have not yet developed themselves into a strong political constituency.

You had fought on women’s representation in the party’s Central Committee at the 16th congress?
My party has never asked for women’s reservation within the party; that’s not in our constitutional framework.

http://www.thestatesman.net/page.news.php?clid=4&theme=&usrsess=1&id=246122

Environmental concerns get cold response

Even after 14 years of the law coming into effect, National Environmental Tribunals are yet to be formed

UPA Legacy | Sanjay Upadhyay

While the tigers versus tribals debate has taken more media space since the United Progressive Alliance government took over in 2004, it is the other legislation enacted in the past few years that may have a greater bearing on India’s environment.

The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006—passed in 2008—recognized the historical injustice done to some of India’s marginalized people.

The 2006 amendments to the Wildlife Protection Act, 1972, led to establishing the National Tiger Conservation Authority and the National Wildlife Crime Control Bureau to contain the dip in tiger populations.

These laws have the potential to either create history in conservation or become big blunders if politically mismanaged.

The new mechanism of environmental impact assessment reports—put in place under a revised notification in 2006—and the recent proposed amendments to replace the existing coastal regulation zone notification under the Environment Protection Act, clearly show that environmental concerns will always be sacrificed in favour of development.

Institutions such as the National Environment Appellate Authority, set up to hear the grievances against injudicious development, have been headless for several years, and almost no effort has gone into making the appellate authority an independent and robust watchdog to punish errant companies. We hardly hear of projects being rejected on environmental grounds. Moreover, National Environmental Tribunals are yet to be constituted despite 14 years of the law coming into effect.

So, what does all this depict?

Clearly, a disjointed thought process, and a lack of vision and priority on environmental concerns. While the threat of climate change looms large, little has been done to correct the mess within the country although we are quite vocal about it abroad.

This government’s rule also saw a slew of committees, councils and commissions—empowered committees on environment and forests, Prime Minister’s Council on Climate Change, forestry commissions, etc.—but their impact is yet unknown. Only time will tell whether these were lip service and not a serious attempt to let good minds think through environmental problems.

Add to it the numerous expert groups on several aspects of environmental governance. The problem has been lack of clear vision and expectations of such groups. While they have the potential to steer environmental thinking in the right direction, it has often been reduced to endorsing foreign visits of bureaucrats.

Some initiatives aimed at fuelling economic growth have not taken environmental concerns at all into its design: first is the race to create special economic zones without taking into account the concerns of the people who may be impacted or the environment that may be destroyed; the second is the euphoria over energy security that led to a nuclear agreement, with little safeguards to avert hazards.

However, there are some silver linings, too, that need to be highlighted.

The ministry of new and renewable energy has initiated a process of drafting a new renewable energy law for India—a clear need, not only from the perspective of developing clean energy but also from the climate-mitigation standpoint in the long run.

Similarly, the ministry of environment and forests has initiated a process of simplifying and strengthening the Wildlife Protection Act, 1972, besides addressing the menace of global trade in wildlife products.

Further, the new initiatives on landscape management are definitely a move towards a more matured conservation regime.

http://www.livemint.com/2009/03/06215656/Environmental-concerns-get-col.html

News & Views !!

Mar 7, 2009

07/03/09

Mining – India