Mining – India 1
1. Iron ore exports from Goa up 15% on Chinese buying 1
2. Arcelor-Mittal plans captive port in Orissa 2
3. Overseas coal blocks on NTPC radar 4
4. 3 projects to be shifted from coal-bearing areas 5
5. Global Link opens new office at Bhubaneshwar in India 5
6. World’s largest salt mines located in Pakistan 6
7. FACTBOX-Mines and plants hit by low prices, high costs 7
Mining – International 15
8. 12 miners confirmed dead in China coal mine flooding 16
9. ArcelorMittal SA acquires 16.3-per cent stake in Coal of Africa news 16
10. Vedanta’s aluminium output, iron-ore shipments set new records 18
11. Holes in Indonesia's mining law 22
12. How bauxite downturn may affect Budget 26
13. Analyst say Rio cuts just the start 28
14. Interior secretary: Wind could replace coal power 29
Other News 30
15. UN demands more climate ambition 30
16. Clean, Honest Polls Please 33
17. ‘CPM poll cut’ in NREGS wages: poor see red 37
18. Rural job scheme hurts industries 38
Mining – India
Iron ore exports from Goa up 15% on Chinese buying
Dilip Kumar Jha / Mumbai April 09, 2009, 0:05 IST
Goa has surpassed the iron ore export target set for FY09, witnessing a 15 per cent rise in shipments recorded during FY08.
The mineral-rich state, which contributes about 40 per cent to the overall iron ore shipments from the country, is estimated to record a total export of 45.5 million tonnes in FY09 compared to 39.5 million tonnes in the previous fiscal.
The growth is significant as the global financial turmoil has sharply brought down the Chinese demand in the aftermath of Lehman Brothers’ collapse in August last year. As a consequence, analysts were expecting a fall in India’s overall exports and its repercussion on shipments from Goa. Experts, early this year, had lowered their earlier exports target from 45 million tonnes to 40 million tonnes.
“Earlier we thought that the fall in Chinese demand would lower overall iron ore exports from Goa. But, a nice pick up during the December - March period compensated for the fall during the August - October period. Also, in the earlier months of the last fiscal (April - May 2008), the overall exports were fairly good,” said Glenn Kalavampara, secretary of Goa Mineral Ore Exporters’ Association (GMOEA).
“We are yet to finish compiling the final figure on overall exports. But, initial indications hint that shipment would rise 15 per cent during the last financial year,” Kalavampara said.
Goa is endowed with huge mineral deposits, largely between the grades of 50-61 per cent of iron content.
While the volume picked up during the last year, price remained under pressure of the iron ore. Prices of iron ore of the average grade of $57-58 has nosedived over 57 per cent since April 2008 to $30 a tonne now.
Both iron ore prices and exports showed inconsistencies last fiscal, said Kalavampara. The extended monsoon and late turnouts of mineworkers hit shipment by the end of the first half when global financial crisis began to affect on steel demand. Fearing a grave impact on infrastructure and therefore, lower steel demand, primary and secondary producers cut their output by up to 25 per cent. That hit iron ore demand in both local and global markets.
In the meantime, pipeline inventories of iron ore exhausted completely which forced steel producers to build stocks again thereby, helping miners to transport ore to steel mills.
During the year, Mormugao Port Trust (MPT) recorded 23.85 rise in iron ore shipment at 33.81 million tonnes as against 27.30 million tonnes in the previous year. Of this, exports to China surged a staggering 41.52 per cent to 28.77 million tonnes as against 20.33 million tonnes.
Shipments to Japan, in contrast, declined 9.62 per cent at 3.11 million tonnes from 3.43 million tonnes. During the year, the port touched an all time record cargo traffic of 41.68 million tonnes, surpassing its previous best of 35.13 million tonnes handled in 2007-08.
http://www.business-standard.com/india/news/iron-ore-exportsgoa15chinese-buying/354463/
Arcelor-Mittal plans captive port in Orissa
BS Reporter / Bhubaneswar April 09, 2009, 1:38 IST
The port will be used to export finished products from the company’s proposed mega steel plants.
Arcelor-Mittal, the largest steelmaker of the world, plans to set up a captive port at Barunei Muhan, located to the north of Mahanadi river near Paradip in Orissa.
The port will be used to import raw materials like coking coal and limestone, and export finished products of the company’s proposed integrated mega steel plants in Orissa and Jharkhand. The steel projects will have capacities of 12 million tonnes each.
The captive port is projected to have a cargo handling capacity of 35 million tonnes per annum (MTPA), to be attained in two phases. However, the company has not indicated the quantum of investment for the port.
A team of company officials led by Sanak Mishra, chief executive officer (CEO) of Arcelor-Mittal’s India greenfield projects, today made a presentation on the port project before Orissa chief secretary Ajit Kumar Tripathy and other senior officials of the state government.
The proposed port will have a cargo handling capacity of 10.62 million tonnes in Stage-I of the first phase, which will be expanded to 17.3 million tonnes in Stage-II. After the completion of the second phase, the cargo handling capacity will go up to 35 million tonnes.
The port will handle cargo like coking coal, PCI coal, limestone, slabs, billets, HR coil and steel products. It will have five berths in the first phase and seven berths by the end of the second phase. While 391 vessels are expected to visit the port every year by the end of the first phase, the number will grow to 582 ships when it is fully commissioned.
In its presentation, the company stated that it would be prudent to design the first phase with Panamax-size vessels in mind, which could be upgraded to handling cape-size vessels in the second phase. The channel will have a depth of 16 metres and a length of about 6 km. This will further increase to 20 metres and 10 km by the end of the second phase.
The company proposes to construct a double-lane rail line to connect the port with the Paradeep-Haridaspur main line. Similarly, new sidings will be constructed for railway connectivity. Besides, a four-lane road will be constructed to connect the port with the National Highway No 5.
The captive port will have steel servicing centre, downstream processing and finishing line, ancillaries such as automotive industry, technical training institutes and fabrication workshops. The company has indicated that about 6,000 acres of land will be required for setting up the project and related infrastructure, sources added.
Interestingly, the port site will be about 270 km away from the site of the company’s 12 million tonne greenfield steel project in Patna tehsil of Keonjhar district.
The preliminary project report was prepared by the Department of Ocean Engineering, Indian Institute of Technology, Chennai.
However, the fate of this proposal remains uncertain as the state government is not in favour of captive ports coming up at the identified locations because it fears they would result in underutilisation of the port potential of the state.
http://www.business-standard.com/india/news/arcelor-mittal-plans-captive-port-in-orissa/354536/
Overseas coal blocks on NTPC radar
OUR SPECIAL CORRESPONDENT
New Delhi, April 8: NTPC is planning to acquire coal blocks in Indonesia and Mozambique later this year to raise its generation capacity by 22,430MW in three years.
“We are planning to acquire four blocks in Indonesia and two in Mozambique by the end of this year. Coal from these blocks will help us raise our capacity by 22,430MW by the end of the XIth Plan (2007-12),” R.S. Sharma, CMD of NTPC, said.
He said the company would require 225 million tonnes by 2012. It would get only 195mt from Coal India Ltd (CIL) and its subsidiaries. NTPC plans to produce 15mt captively and import 15mt.
The company, which has entered into a joint venture with Rashtriya Ispat Nigam, SAIL, NMDC and the CIL to buy coking coal and thermal coal, is also exploring opportunities in Australia, Mozambique, Indonesia and Canada.
NTPC’s installed capacity, including that of the joint ventures, stood at 30,144MW. Its capacity at the end of 2008-09 was 29,394MW.
Generation capacity may increase to 50,000MW by 2012 and 75,000MW by 2017.
“This year, we will add about 3,300MW to our capacity. About 2,000MW of this will be commercially available,” Sharma said. The company reported a 5.6 per cent rise in net profit for 2008-09 at Rs 7,827 crore against Rs 7,415 crore a year ago.
Net sales rose to Rs 42,182 crore from Rs 36,946 crore, an increase of about 14 per cent.
http://www.telegraphindia.com/1090409/jsp/business/story_10796338.jsp
3 projects to be shifted from coal-bearing areas
Special Correspondent
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The boundaries of the airport city project will be redefined, says Sabyasachi Sen.
________________________________________
KOLKATA: Three proposed projects in the Durgapur-Asansol area, land for which had already been identified, will be shifted and the aerotropolis project will also be shifted slightly in order to protect the coal reserves, West Bengal Industry Secretary Sabyasachi Sen said. The three projects are that of Abhijit Steel, Bhusan Steel and the Videocon group land for which had been identified but not allotted, Mr. Sen said.
Talking to reporters after a meeting with the Chairman of Coal India, CEO of Bengal Aerotropolis Ltd (BAPL) and other senior officials of the two companies, he said a solution had emerged from this meeting under which the country’s coal interests would be safeguarded while setting up industrial projects in West Bengal.
He said it had also been agreed that future projects in the Burdwan-Durgapur coal-bearing areas would be finalised only after discussing it with Eastern Coalfields Ltd (ECL), a CIL subsidiary which carries out mining in this area.
Mr. Sen said that the “boundaries of the airport city project would be redefined.” The project, which was slated to come up on 3,500 acres in Andal near Asansol in West Bengal, involved the setting up an airport city.
After Wednesday’s meeting, it was agreed to shift the project 400 acres to the east, so as to protect the coal reserves to the maximum extent possible.
“Our entire focus was how to harmonise both coal-mining and industrialisation,” Mr. Sen said.
http://www.hindu.com/2009/04/09/stories/2009040956481500.htm
Global Link opens new office at Bhubaneshwar in India
Thursday, 09 Apr 2009
Express News Service reported that Mr Francis Moloi high commissioner of South Africa has unveiled the office of Global Link Pvt Limited in Bhubaneshwar.
Global Link, which is into an array of overseas businesses and technologies mostly in the fields of mining and energy, has strong ties with South Africa where it has offices at Johannesburg and Durban. Besides, it also has offices at St Petersburg, Beijing and Garga. This year, it plans to branch out to Singapore, Hong Kong, London, Columbia, Seoul, Tokyo and Cape Town.
Global Link has entered into agreements with some of the largest iron ore mines of the State for exporting fines mainly to China through Paradip and Visakhapatnam. It plans to export ore from Gangavaram and Krishnapatnam in the near future.
Mr Bijoy Kumar Agarwal MD of Global Link said that it will be the single window facilitator in India for SA companies to have joint ventures in India where coal majors are coming up with projects on coal washing, rapid loading system and energy generation from washed coal rejects. Global Link will not only facilitate but also be part of the JVCs to identify and coordinate with SA as well as Australian companies in this regard.
He added that Global Link is also venturing into software trade. It owns 25% stake and plans to invest in a Norwegian company, Hope Investment AS.
(Sourced from www.expressindia.com)
http://steelguru.com/news/index/2009/04/09/ODk0NjI%3D/Global_Link_opens_new_office_at_Bhubaneshwar_in_India.html
World’s largest salt mines located in Pakistan
Thursday, April 09, 2009
ISLAMABAD: Pakistan is the only country for having the world’s largest salt mines with proven reserves of about 10 billion ton in three mines including more than 6.687 billion ton only in the Khewra rocky salt mine, located in the area of district Jhelum. Other two salt mines are Warcha and Kalabagh.
The main habitat of salt lies there in Punjab at Khewra in Tehsil Pind Dadan Khan, District Jhelum. The salt found here at Khewra Salt Mines is the best, finest and in natural state in the world.
Salt was first worked out in Khewra which is at about 175 km and the history tells that long before the Alexander the great invaded the area, Salt was being mined at Khewra at that time.
At present the Khewra Salt Mine is being managed by Pakistan Mineral Development Corporation (PMDC). According to availability of data with PMDC, it is said that still large quantities of salt exist in its unexplored areas of the mines.
The annual production of salt at Khewra is about 300,000 tonnes according to the data. According to the available data there is still enough salt to last about 400 years to come in the existing mines.
These reports reveal that about 534, 512 tonnes of fine rock Salt had been extracted up to 1850 and till March 1923 the production obtained from Khewra Salt Mines was 49,71,420 tonnes.
Not only we meet our salt requirements from the Khewra Salt Mines, but Pakistan also exports salt to India to the tune of 10 thousand to 18 thousand tonnes annually. It is also a source of earning foreign exchange for the government.
Khewra Salt Mines has 1290 meters long tunnels. The mine is anopen challenge to an adventurous spirit. It has 17 levels and there are 50 feet of rock salt between each level in which there are veryl arge chambers, made when salt was extracted.
It is pertinent to mention here that Pakistan is a land of rich natural wealth including precious metals and fluids beneath it like iron, gold, silver, bronze, gas, gypsum and rubies. The richness of our soil is unbelievable having rich treasures of nature beneath the surface.
http://www.thenews.com.pk/daily_detail.asp?id=171540
Thomson Reuters
FACTBOX-Mines and plants hit by low prices, high costs
04.08.09, 06:05 AM EDT
April 8 (Reuters) - The global financial crisis and sharp falls in metals prices have forced several companies to abandon or put on hold their plans to bring new mines onstream.
Some existing producers also have shut down or curtailed output at mines and plants as high costs and low prices bite.
Below are details of major projects and facilities affected in recent months, as well as other related news.
April 7 - Alcoa expects its Q2 alumina output to decline slightly to match smelter demand. Company projects weak global demand and expects another 1.4 million tonnes of primary aluminium output cuts in coming months.
April 7 - Rio Tinto said it will cut bauxite production at its Weipa mine in northeastern Australia by about 23 percent. Also said it would also slow the expansion of the Yarwun alumina refinery in Queensland.
April 7 - Tajikistan cut aluminium output by 16.8 percent year-on-year in Q1 2009, a source at the state-owned TALCO aluminium company said. Tajikistan has said it plans to produce 377,000 tonnes this year, down from 399,450 tonnes in 2008.
April 2 - Alcoa Inc said it would curtail about 120,000 tonnes per year (tpy) of aluminium smelter output at its Massena, New York operations in May, raising total cuts to the firm's production to over 850,000 tonnes, or 20 percent of annualised output.
April 2 - Most of Japan's refined lead and zinc producers plan to reduce output in the first half of the year to end-March 2010.
April 1 - Bosnia's sole alumina plant Birac said its 2009 output would fall almost two thirds to 120,000 tonnes of alumina because of the economic crisis.
April 1 - Montenegro's loss-making KAP aluminium smelter will temporarily suspend 20 percent of its workforce.
April 1 - Jamaica-based West Indies Alumina Co, whose majority shareholder is Russia's United Company RUSAL, has suspended bauxite mining as part of a plan to temporarily shutter the company's operations.
April 1 - United Company RUSAL and Russian hydro-electricity giant RusHydro said they had agreed to postpone launching the Boguchany aluminium smelter project for two years to 2012.
April 1 - Japan's copper smelters plan to keep output either flat or lower in the first half of the business year.
March 31 - Glencore said it has suspended operations at its Iscaycruz lead-zinc mine in Peru.
March 29 - Two Chinese aluminium producers, Shengxin Aluminium and Shanghai Unison Aluminium, have halved their output, executives said.
March 27 - Sweden's Boliden said it was maintaining cutbacks announced in late January. At that time the company said it would reduce output by about 68,000 tonnes on an annualised basis in the first quarter of 2009.
March 26 - Norway's Norsk Hydro said it will cut metal output at its Sunndal smelter in Norway by 100,000 tonnes, bringing total curtailments to half a million tonnes.
March 26 - Metallica Minerals has deferred feasibility work indefinitely on its 8,000 tonnes per year (tpy) Nornico mine project in Queensland, Australia.
March 26 - A $500 million nickel pig iron project planned for Indonesia has been scrapped, said Shanghai Tshingshan Mineral Company Ltd, the majority partner in the venture.
March 26 - Doe Run Peru has halted work at 95 percent of its La Oroya poly-metallic smelter because of financial trouble. On April 2 company said it would restart work as soon as possible afer reaching a new credit deal.
March 25 - Russia's UC RUSAL may widen output cuts to up to 20 percent and is taking steps to cut costs as it faces peak debt repayment of $8 billion this year, the firm and analysts said.
March 25 - UC RUSAL said it will halve aluminium output at its loss-making ZALK unit in Ukraine this year due to high energy costs, as part of plans to slash 11 percent of total annual output. Alumina output will also be cut.
March 25 - Eurasian Natural Resources Corporation said would maintain output cuts since a recovery unlikely until 2010. Company also said it has cut its long-term capex expansion programme to $2.4 billion from $6.9 billion.
March 23 - Yamana Gold's Argentinian unit, which has been working on the Agua Rica copper-gold project, last week said it would temporarily slow work on the project. Mine close to final approval, but company undecided on how will proceed with plans for the property.
March 23 - India's state-run National Aluminium Co plans to lower output if inventory levels keep rising, the Business Standard newspaper reported.
March 20 - U.S. copper miner Asarco LLC shut its rod and cake plants in Amarillo, Texas and is planning periodic slowdowns at the copper refinery beginning March 22.
March 20 - South African ferrochrome producer Hernic said it shut all its four furnaces at the start of this year.
March 20 - Geovic Mining Corp. said it will slash costs, reduce in scale and delay by at least a year its Nkamouna cobalt-nickel-manganese project in Cameroon.
March 19 - European Goldfields said further ramp up of output at its Stratoni lead-zinc mine in Greece would be delayed.
March 19 - Uranium miner Denison Mines will temporarily suspend production at its Sunday and Rim mines in the western United States and will likely shut its White Mesa mill in May.
March 19 - Norsk Hydro affiliate Alumina Partners of Jamaica (Alpart) said it plans to shut its 1.65 million tonnes a year alumina refinery for a year from May 15.
March 18 - Timminco Ltd said it would suspend production of silicon metal from April.
March 12 - Kosovo's sole ferro-nickel producer Ferronikeli has cut its output by half. Producing 330 tonnes per month compared with about 700 tonnes earlier.
March 11 - Russia's Ufaleynickel said it had shut down a furnace and could halt output altogether if demand remained poor. Only two out of plant's five furnaces are working.
March 9 - Kazakh mining group Eurasian Natural Resources Corp Plc (ENRC) will review its production cuts in the second quarter, an official told the Reuters Global Mining and Steel Summit. Late last year it cut ferrochrome output by about 35 percent and iron ore output by 50 percent.
March 6 - Glencore International Ag has notified Zambian authorities it plans to halt operations at the Mufulira copper mine and put its Nkana mine under maintenance, the country's mines minister said.
March 5 - Norwegian aluminium producer Norsk Hydro announced a further cut of 250-300 jobs aimed at saving $99.1-113.3 million. About 40 percent of savings expected to come from external services and consultants.
March 4 - Alcoa Inc said it plans to chop payroll costs by 15 percent at its Canadian aluminium smelting operations.
March 4 - Finnish mining firm Talvivaara said it would defer all capital expenditure not needed to achieve budgeted production until 2010. It produces nickel and zinc.
March 4 - Japan's top copper smelter Pan Pacific Copper Co Ltd said it will continue to cut copper output by 10 percent for the full business year starting in April.
March 3 - Century Aluminum of Kentucky, a subsidiary of Century Aluminum said it curtailed one potline at its Hawesville, Kentucky primary aluminium smelter, effectively cutting about 4,370 tonnes in monthly output.
March 3 - Cuba may soon cut its nickel output, sources close to the industry said. Unrefined nickel and cobalt production at two state-run processing plants are under review due to their inefficiencies.
March 3 - Vale Inco said it will eliminate about 900 full-time jobs, with close to half of the cuts at its Canadian operations. Will be focused on business support rather than key mining and processing areas.
March 3 - Albidon Ltd said it has suspended operations at its Munali nickel project in Zambia. At full capacity the mine, which came on stream last May, was expected to produce 10,000 tonnes per year (tpy) of nickel.
March 2 - Indonesia's PT Aneka Tambang Tbk plans to produce 12,000 tonnes of ferro-nickel in 2009, down about 32 percent from a year ago.
Feb 26 - Australia's mining sector invested a record amount last quarter, but analysts expect a significant downturn in the next few quarters.
Feb 25 - Sherritt International raised the cost estimate for its Ambatovy nickel project in Madagascar by more than $1 billion.
Feb 24 - Lonmin Plc, the world's third-biggest platinum producer, said to put under care and maintenance the Baobab shaft at its Limpopo mine in South Africa. Said had reached an agreement with unions on up to 5,500 job cuts at Marikana and Limpopo operations.
Feb 23 - Freeport-McMoRan Copper & Gold, which has already cut back production, said it might have to make more cuts if copper prices drop further.
Feb 23 - Noranda Income Fund said to reduce zinc and by-product sulphuric acid production by about 20 percent in March.
Feb 20 - A shareholder of Kazakh mining and metals group ENRC said some of its units had more than halved output. Company produces iron ore, ferro-alloys, alumina, aluminium, chrome and other metals.
Feb 19 - Eramet said has slashed 2009 capital spending target by 54 percent. Has suspended production of high-purity chrome at its Marietta plant in United States. Also planning restructuring measures at SLN nickel unit in New Caledonia. Reiterated targets to reduce nickel and manganese output in coming months.
Feb 19 - Impala Platinum said cutting output by 200,000 ounces in its current financial year and would put off expansion plans.
Feb 19 - Pan American Silver said will suspend operations at Quiruvilca mine in Peru, due to high costs and declining silver production.
Feb 19 - Mozambique's Mozal aluminium smelter will have to cut staff due to the economic slowdown, BHP Billiton said.
Feb 18 - Vimetco said it cut output by a further 50,000 tonnes per year (tpy) from January at its Chinese aluminium operations.
Feb 18 - Thompson Creek Metals Co Inc said expansion project at Endako molybdenum mine suspended. Also details planned production adjustments at Endako and Thompson Creek mines.
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http://www.forbes.com/feeds/afx/2009/04/08/afx6268331.html
Home Page - Steel
Corporate - Outlook
JSW Steel looking for cheaper coking coal
Our Bureau
New Delhi, April 6 JSW Steel is negotiating hard for cheaper coking coal prices for this financial year.
“The Japanese steel mills recently tied up coking coal from Australia at $129 a tonne, which was 57 per cent lower than last year’s prices,” said Mr Seshagiri Rao, Director – Finance, JSW Steel.
The steel industry has been experiencing a revival in demand since January. Demand for steel during January-March grew 28 per cent over October-December, according to Mr Rao.
The company has also announced its “highest ever” production during the fourth quarter ended March 2009. The 11.06 lakh tonnes produced in Q4 is 11 per cent more than what was produced during the corresponding quarter the previous year.
There has also been a sharp improvement in the stock prices of steel companies. This could be because of improved operating conditions.
“There has been an improvement in Indian demand month after month since January,” said Mr J. Mehra, CEO, Essar Steel Holdings.
Although Essar Steel is primarily dependent on gaseous fuels, from the middle of this year it would require about 4 million tonnes of coal for the expansion it is carrying out.
FCCB buyback
JSW has also completed the buyback of Foreign Currency Convertible Bonds worth $47.80 million under the new window allowed by RBI. It has informed the Bombay Stock Exchange on Monday of the cancellation of 14.74 per cent of its outstanding zero coupon FCCBs of $1,00,000 each due 2012.
Its total FCCBs amounted to $325 million which had been raised in June 2007 for the expansion of its Vijayanagar plant, which has now been completed, said Mr Rao. The plant, whose capacity was expanded from 4 to 6.8 million tonnes per annum has been commissioned.
Mr Rao said the company stood to gain from this buyback of FCCBs that were being traded at a discount, since the amount of bonds outstanding now stood at $276.40 million.
http://www.thehindubusinessline.com/2009/04/07/stories/2009040752100100.htm
CCCMC posts higher FOB prices for Indian iron ore
Thursday, 09 Apr 2009
The China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters has released the average reference prices for import transactions of Fe 63.5% Indian iron ore concluded last week on April 7th 2009.
Delivery This week Last week
FOB Indian port USD 54-USD 56 USD 55-USD 56
CIF Chinese port USD 65-USD 66 USD 66-USD 67
The change is with respect to prices posted on March 30th 2009
To know export spot prices FOB East Coast as and when they change, subscribe to the “Iron Ore Pricing Services” of www.steelprices-india.com.
The yearly subscription charges are USD 600 or INR 30,000 plus service tax for 12 months of service for one user and USD 100 or INR 5,000 for every additional user.
To avail this service you can make registration at www.steelprices-india.com or send a mail for getting invoice at admin@steelprices-india.com with contact details or call us by phone at 0124-4048993. We would be happy to reply to your queries, if any.
http://steelguru.com/news/index/2009/04/09/ODk0NTc%3D/CCCMC_posts_higher_FOB_prices_for_Indian_iron_ore.html
Australia for expanding ties with India
BS Reporter / Kolkata April 09, 2009, 0:36 IST
Besides mining, agriculture, education and services, which were some of the core areas of bilateral trade and investment between India and Australia at present, Australia was keen to focus on other potential areas of business like food and beverages business, automotive sector, aerospace industry etc, informed Micheal Carter, Counsellor Commercial, Australian Trade Commission.
India happens to be the fourth largest export destination for Australia, it is a very important strategic partner for trade, but the current export import activity between the two countries is largely confined to mining and mining resources, education, services, agriculture, and more of a resource-based relationship which can be widened. There is a lot of scope for business and possible collaboration in the areas of food and beverages particularly wine, travel and tourism,” he said.
Australia's exports to India was worth around 12 billion Australian dollars last fiscal.
There is a need to widen the export-import portfolio through sectors like aerospace, travel and tourism, wine and beverages industry. A lot of Australian wine exporters were particularly robust about investing in India as it was seen as the next growth market, Carter pointed out.
Of the total domestic wine market in India, which is around 1.5 million cases per annum, almost 1,60,000 cases are imported, of which Australian imported wine enjoys roughly 25 per cent. “This share is growing and we are in talks with several state governments in the northern part of the country, particularly Haryana, Punjab, and other states for setting up some production facilities in collabration with domestic players into food processing and agri-business,” he added.
http://www.business-standard.com/india/news/australia-for-expanding-tiesindia/354445/
NTPC to up coal imports to 15 mt
Shaleen AgarwalThursday, April 9, 2009 4:28 IST
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New Delhi: India's largest utility, NTPC Ltd, plans to ramp up coal imports to 15 million tonnes (mt) by 2012 to meet demand at its coal-fired plants, in line with the projected expansion in the generation capacity.
"We expect our coal requirements to rise to 225 mt by the year 2012," chairman and managing director R S Sharma said on Wednesday, adding that the utility plans to meet the requirements through captive production and imports.
NTPC imported 5 mt last fiscal against a target of 8.2 mt.
Domestic supplies of coal from Coal India Ltd are expected to fall short of the company's requirements at 195 mt, thus prompting NTPC to look at other avenues of sourcing fuel. Apart from the imports, the company intends to mine 15 mt of coal by 2012 from the captive coal blocks allocated to it by the government.
It plans to import 12.5 mt of coal in the current fiscal that began April 1 to fulfil its need of 150 mt.
In 2007-08, NTPC had shipped in only half of its planned imports of 5 mt. The company has also failed over the last five years in mining coal from the eight captive blocks allocated to it. The blocks have combined reserves estimated at a staggering 3-4 billion tonnes.
Sharma, however, said land acquisition is in progress for Pakri Barwadih block allocated to it in 2004-05 fiscal and that some production may be seen soon, without mentioning an expected timeframe.
NTPC is also facing shortage in buffer stock. Some of its plants are running with stocks for less than a day, while others are running with stocks of less than four days, and other with stock enough for only a week.
As per norms, power plants need to maintain at least 15 days or 30 days of stock, depending on their distance from coal mines.
http://www.dnaindia.com/report.asp?newsid=1246400
Mining – International
12 miners confirmed dead in China coal mine flooding
www.chinaview.cn 2009-04-09 10:12:56
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HARBIN, April 9 (Xinhua) -- Twelve miners have been confirmed dead after rescuers retrieved the last body in a flooded coal mine in northeast China's Heilongjiang Province, a local official said Thursday.
"The rescue operation has ended," said Fang Dongchu, deputy secretary-general of the Jixi municipal government.
The accident occurred at about 5:30 a.m. Saturday when 22 miners were working underground at the Jinli Coal Mine in Xingnong Township, Jidong County, Jixi City. Six managed to escape and four others were rescued.
The mine, owned by the Tianyuan Company, has an annual production capacity of 40,000 tonnes.
The company pledged that the compensation to the victims' relatives would not be less than the government-set standard of 200,000 yuan (29,411.8 U.S. dollars) for each victim.
Work safety officials said the mine was licensed, but was operating illegally as it had not been authorized by safety inspectors after production was halted during the Spring Festival in January.
Water from a neighboring abandoned mine caused the flooding, said Zhang Chengxiang, director of the Heilongjiang Provincial Coal Mine Safety Administration.
About 4,000 cubic meters of water poured into the shaft.
The Jixi municipal government has launched safety inspections at all local mines.
http://news.xinhuanet.com/english/2009-04/09/content_11154879.htm
ArcelorMittal SA acquires 16.3-per cent stake in Coal of Africa news
08 April 2009
ArcelorMittal South Africa, a subsidiary of the world's largest steel maker, ArcelorMittal Group, has bought a 16.3-per cent stake in Coal of Africa (CoAL) for 404.5 million rand ($44 million) on Tuesday, in an all-cash deal.
The price is based on the previous 15-day volume weighted average share price of CoAL on the Johannesburg Stock Exchange (JSE). ArcelorMittal SA purchased the shares from CoAL's parent company.
The deal would secure part of ArcelorMittal SA's future coal needs, which is one of the primary raw materials for steel production and a key variable in input costs. The company has an option to enter into an off-take agreement with CoAL for the supply of 2.5 million tones of coking coal annually which at present is close to half of the company's requirement of 5.2 million tones, apart from ensuring adequate quality of the raw material.
Nku Nyembezi-Heita, ArcelorMittal South Africa CEO said, ''This transaction ensures secure supplies of a key input material for the steelmaking process and is an important step in our strategy to pursue raw material backward integration''.
CoAL is a leading mining company engaged in acquisition, exploration and development of thermal and metallurgical coal projects in South Africa apart from owning NiMag a special alloy processing company.
CoAL (formerly GVM Metals Ltd) was incorporated in Australia and listed on the Australian Stock Exchange (ASX), London's Alternative Investment Market (AIM) apart from JSE.
The acquisition makes ArcelorMittal SA CoAL's second largest shareholder after the 17.3 per cent owned by Africa Management Limited, a black economic empowerment company associated with the Mvelaphanda Group.
ArcelorMittal SA, the Vanderbijlpark-based company is the largest steel producer on the African continent, with a capacity of 6.4 million tonnes of liquid steel per annum and supplying a variety of steel products for the automotive, construction, household appliances and packaging industries.
Further to fall in demand due to global recession, the company resorted to over 30 per cent cutback in production in last November. The sales were down by 13 per cent to 5.8 million tonnes in 2008.
However, revenues soared by 36 per cent to 40 billion rand as a result of high global steel prices during the first three quarters of the year. The company achieved 65 per cent headline earnings to a record 9.5 billion rand in 2008.
Production costs shot up dramatically during the year with hot rolled coil-a bench mark product-went up by 59 per cent on year-on-year due to higher input costs.
Cost of coking coal, one of the primary raw materials, were up by 102 per cent year-on-year.
On the news of acquisition, shares of CoAL surged and closed at 7.00 rand, 10 per cent higher on Tuesday while ArcelorMittal SA's shares dropped 3.7 per cent to 79.50 rand.
ArcelorMittal Group had bought the 16 per cent stake at a much higher value of $98 million in April last year.
http://www.domain-b.com/companies/companies_a/Arcelor_Mittal/20090408_coal_of_africa.html
Vedanta’s aluminium output, iron-ore shipments set new records
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By: Esmarie Swanepoel
9th April 2009
Updated 1 hour 34 minutes ago
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JOHANNESBURG (miningweekly.com) – Diversified miner Vedanta Resources’ aluminium production rose to a record 134 000 t in the March quarter, and iron-ore shipments reached a new high at 5,01-million.
The India-focused group reported on Thursday that aluminium production had increased by 31,4% over the corresponding period in 2008. The improved performance was attributed to a 49 000 t contribution from the new Jharsuguda aluminium smelter, in India.
Aluminium production of 462 000 t for the full year 2009, was 16,7% higher than the previous year, primarily on account of an 82 000 t contribution from the new smelter.
“As part of our focus on improving profitability and cash flow, we completely ramped down the Malco smelter in mid-December 2008, and shut down part of the Balco Plant 1 smelter in the fourth quarter of 2009 [financial year], owing to higher operational costs,” the company said in its production release for the fourth quarter and year ended March 2009.
Consequently, the company was selling surplus power to increase returns.
The company stated that the first phase of the 500 000 t/y Jharsuguda 1 aluminium smelter was progressing well, and that about 228 pots have been brought in line. The remaining 76 pots in the first phase were ready for commissioning, awaiting power stabilisation.
“With this, the first 250 000 t/y phase is expected to be fully operational by the first quarter of financial year 2010, six months ahead of the original schedule. Work on the second 250 000 t/y phase is on schedule. We plan to start phased commissioning from June 2009, and become fully operational by the end of financial year 2010.”
The first stream of the alumina refinery at Lanjigarh, also in India, was fully operational and produced 171 000 t in the fourth quarter of 2009, close to its rated capacity. The second stream of the alumina refinery has also recently commenced operations.
The company stated that it would start progressive feeding of the Lanjigarh alumina refinery with its Niyamgiri bauxite by the middle of the 2010 financial year.
During the final quarter of 2009, Vedanta shipped a record 5,01-million tons of iron-ore.
Iron-ore output rose to 4,9-million tons in the three-month period, up 4,1% compared with the corresponding quarter in 2008.
Iron-ore production for the 2009 year, was 15,9-million tons, an increase of 28,5% compared with full-year production in 2008.
Copper cathode production at the Tuticorin smelter, in India, was 88 000 t, broadly the same as the corresponding quarter in 2008. Cathode production for the full year 2009 was 313 000 t, which was 7,7% lower than the previous year owing to planned maintenance during the first quarter of 2009 and to repair damage in the cooling tower structure in the third quarter of 2009.
Mined metal production at the company’s Australian mines was 8 000 t in the final quarter of the 2009 financial year, with full year 2009 production at 27 000 t, both in line with the group’s expectations.
Cathode production at Vedanta’s Zambian operations was 35 000 t in the March quarter, which was in line with the corresponding quarter in 2008 and 40% higher than the third quarter of 2009.
Cathode production for the full year was 133 000 t, 11,3% lower compared with the previous year, primarily owing to teething issues during the commissioning of the new Nchanga smelter.
“We produced 20 000 t and 81 000 t of mined metal in the fourth quarter of 2009 and for the full year 2009, up 33,3% and 6,6% respectively compared with the corresponding prior periods, reflecting better openpit management during monsoons and higher through-put recoveries in the tailings leach plant.”
The company stated that following the commissioning of the 300 000 t Nchanga smelter, it has begun to derive improved cost efficiencies through better recoveries of copper, sulphur and cobalt.
In early April, there was a furnace leak at the Nchanga smelter causing a production disruption.
“Based on our initial assessment, production is expected to be resumed in a three to four week timeframe. The incident did not cause any human injury. As part of our measures to reduce costs, we have shutdown the Nkana smelter and reduced manpower at this operation by 700 people.”
Construction activity at the Konkola Deeps mine expansion project, also in Zambia, was progressing well. Vedanta stated that it achieved a major milestone in the fourth quarter of 2009 by sinking the production shaft to a depth of 950 m, supported by a satisfactory orientation between the two subshafts.
“We are on course for mid-shaft commissioning by mid 2010.”
Mined zinc metal production for the March quarter and for the full year 2009 was a record 175 000 t and 651 000 t, up 26,8% and 18,1% respectively, compared with the corresponding periods. The increase in production was the result of the successful commissioning and ramp-up of the stream III concentrator at the Rampura Agucha mine.
Refined zinc production was 151 000 t and 552 000 t in the fourth quarter and for the full year 2009, an increase of 11,9% and 29,6%, compared with the corresponding prior periods.
“Sales in the fourth quarter of 2009 were also augmented by sales of 25 000 dry metric tons of surplus lead concentrate. Refined lead production was 16 000 t in the final quarter, a decrease of 5,9% compared with the corresponding quarter in 2008.”
The company noted that for the full year 2009, lead production was 60 000 t, up 3,5% compared with the previous year, while silver production during the fourth quarter and full year was 1,1-million ounces and 3,4-million ounces, an increase of 47,6% and 30,7%, respectively compared with the corresponding prior periods.
Construction activities at the 210 000 t/y zinc smelter and 100 000 lead smelter at Rajpura Dariba, in India, was on schedule for completion by mid-2010. Work at the mining projects at Rampura Agucha, Sindesar Khurd and Kayar were also on schedule for progressive commissioning from mid-2010.
Edited by: Mariaan Webb
http://www.miningweekly.com/article/vedantas-aluminium-output-iron-ore-shipments-set-new-records-2009-04-09
Holes in Indonesia's mining law
By Tony Sitathan
JAKARTA - Indonesia's highly anticipated new mining law threatens to become a non-starter just three months after its passage, denting hopes generated over three years of parliamentary debate that a new legal regime would spur more development in the sector.
The "New Indonesian Mineral and Coal Mining Law" passed last December has, despite various investor-friendly provisions, so far been given mixed reviews from the big foreign miners it nominally aimed to attract.
The law, rather than providing greater certainty, transparency and accountability for mining investments, has triggered greater uncertainty and left investors who had relied on the previous
Contract of Work (CoW) system of fixed contracts in a legal lurch, industry executives say. The CoW system provided foreign investors certain legal guarantees, including rights for as long as 30 years, but is now effectively obsolete with the new law's passage.
Companies now operating under CoWs have one year to comply with the new system and a five-year limit to begin onshore processing. The transitional clauses for existing CoWs have caused uncertainty for investors who had grown accustomed to the protection of a legal contract with the central government. Under the new law, they will have to rely on arbitration in any dispute over claims through the Indonesian judiciary, which many investors view as opaque and ambiguous.
Mining investments peaked last year at US$1.5 billion in new committed capital amid a temporary surge in global commodity prices. Mining project inflows are expected to fall off considerably this year, in light of the global economic crisis, falling commodity prices and the uncertainty generated by the new law. A mining executive with Kaltim Prima Coal (KPC), one of the country's leading miners, said Australian mining giant BHP Billiton Ltd had recently canceled a planned $4 billion investment in Indonesia.
"Although the new mining law may not be directly responsible for the cancelation on the part of BHP Billiton, there is strong reason to believe that it is one of the factors leading to the decision of [the company] to re-evaluate its position in Indonesia," said the KPC official. The new mining law has created concerns for several long-term players in the market because they had lost all protection under the old CoW system, he said.
Indonesia is home to some of the world's richest untapped reserves of coal, copper, gold, nickel and tin. The country is prospected to have some of the world's largest coal, gold and copper deposits. Several international mining powerhouses, including Newmont Mining Corporation, Freeport-McMoran Copper & Gold and the Rio Tinto Group, have substantial operations in the country.
Local claims
The operating environment became problematic for many foreign miners after regional autonomy laws passed in 2001 brought some of their centrally allocated CoWs into dispute with local politicians. According to Minister of Energy and Mineral Resources Purnomo Yusgiantoro, the new law was designed specifically to address foreign investor concerns about provincial challenges to their centrally administered CoWs.
Under the 2001 autonomy laws, regional authorities gained the power to issue Kuasa Pertambangan (KP), or mining concessions that in certain instances conflicted with centrally administered contracts. One point in case concerned a regent, or locally elected leader, in Central Sulawesi, who issued several KPs that overlapped with CoWs issued for the area already held by state-owned Aneka Tambang and Rio Tinto.
"We have to learn that natural resources are deemed to be the wealth of the public of Indonesia and do not just belong to the regency," said Yusgiantoro. "In the past, we were players as well as regulators. The government now does not want to be a player but rather a regulator."
That's likely to be a mixed bag for big foreign miners. For instance, the new law limits the scope of exploration areas, which is intended to benefit small and medium-sized mining companies that lack the capital resources of big multinational miners. The law also requires companies to seek separate permits - some centrally administered, some locally - for each phase of mining activity, from surveying to exploration to feasibility studies to actual production.
That represents a significant change to the previous system of one-stop centrally granted mining contracts that covered all aspects of a start-to-finish mining operation. It also replaces the contentious localized KP system with a mining license known as the Izin Usaha Pertambangan (IUP). Under the new law, local-level regents will have the power to issue exploration IUPs, while the Jakarta-based minister will grant the actual production operation IUP.
The new IUPs cover up to 50,000 hectares for coal exploration and 100,000 ha for metals and other minerals. Before the new law's passage, the production area was limited respectively to 15,000 ha and 25,000 ha. There is also a new tender system, authorized by the central government, which will decide control over mined areas and mediate problems of overlapping concessions granted separately by regents and Jakarta.
The new system, which for a period allows 100% foreign investor ownership, would eventually remove the distinction between Indonesian and foreign investors. Previously, foreign miners had to work with local partners in joint ventures. There is, however, some ambiguity regarding the percentage of mandatory divestment required by the foreign investor at the end of a circumscribed five-year production period.
Another blind spot in the new law is the lack of reference to the conversion process of KPs to IUPs. Most significantly, it is uncertain under the law if issued KPs will automatically be renewed as new IUPs. Since the exploration KP generally had a lifespan of three years, with some areas limited to two years, it is uncertain when the initial granted time period will expire, or if the original KPs can automatically be renewed as IUPs, industry analysts say.
The government, analysts and executives say, has so far failed to provide firm assurances. According to Mineral, Coal and Geothermal Department director general Bambang Setiawan, the ministry would respect the KPs that were issued by the regents and would look on the KP in a similar fashion as an IUP. "We would look upon these changes in a logical manner since the mining laws were not written on stone," he said.
Investor perceptions
The new law is incomplete, according to Jeffrey Mulyono, chairman of the Indonesia Coal Mining Association (ICMA), which is working with the government to make it more investor-friendly. "The new mining laws address up to 90% of the concerns of the mining community. There is still a gap of 10% which is not being addressed," he said.
Mulyono said the new law was an imperfect political product of three-and-a-half years of legislative squabbling. "I confess that there is still no one-stop solution for the investor. The problem is that we don't have a comprehensive planalogy of the mining area in the regional areas. There is still some homework left to be done by the government."
However, he believes fears that the government could backtrack and repeal existing KPs or CoWs are misguided and that the negative criticism arises mostly from foreign lawyers representing overseas investors. "They seem to act as a provocateur harping on the uncertainly rather than looking at the positive side of the new mining law," he said.
Perhaps, but a recent survey by mining industry consultants PricewaterhouseCoopers (PwC) showed that many investors felt the new law would not facilitate clear solutions to longstanding problems plaguing Indonesia's mining industry. The survey concluded that the law was adequate to encourage investors to take direct equity stakes in relatively small-scale projects, but that there was more uncertainty over large-scale affairs. Those concerns centered on the fact the new law fails to offer long-term protection of contracts granted under the previous CoW system.
Despite the shortcomings, industry analysts agree that the new law creates greater state-controlled regulations and through new checks and balances less reliance on regional governments, which often abused the KP regime. The new law makes clear that the central ministry can suspend or revoke locally administered IUPs if regulations are not followed. Jakarta can also impose criminal sanctions, with a maximum penalty of two years in prison, against regents who ignore or sidestep regulatory requirements.
Still some see significant political risks on the horizon. Erwin Baumgartner, a mining consultant at Fusion Consulting in Singapore, contends that local-level laws lack transparency and investors fear they could change after legislative and presidential elections are held this year. Despite the new law, regional regulations are not always in line with central government ones, he said.
"These differences are causing delays in getting projects off the ground. There is high uncertainty and a lack of transparency for mining claims and trustworthy on-the-ground agents are essential to clarify legal matters for potential investors. And above all, the high share of tolerated illegal mining activities makes the situation even more acute for foreign investors," he said.
Some investors have a greater risk appetite than others. India's Tata Power, which in 2007 took a 30% stake for $1.3 billion in Kaltim Prima Coal and PT Arutmin Indonesia, has with the new law's passage sent signals it would like to make another big coal-mining acquisition. Coal India, one of India's largest state-owned coal ventures, is also reportedly on the hunt in light of Indonesia's comparatively lower costs and cheaper logistics and freight charges compared with Australia and Africa.
"We are not afraid of taking mitigated risks in Indonesia," said the vice president of one major Indian mining corporation. "It all boils down to a matter of economics and the overall compatibility to our bottom line."
Tony Sitathan is a correspondent for several Asian and foreign news publications. He may be reached at tony_sita@yahoo.com.
(Copyright 2009 Asia Times Online (Holdings) Ltd. All rights reserved. Please contact us about sales, syndication andrepublishing.)
http://www.atimes.com/atimes/Southeast_Asia/KD09Ae02.html
How bauxite downturn may affect Budget
Published: Wednesday | April 8, 2009
A view of the Alpart bauxite plant. - Norman Grindley/ Chief Photographer
Slide in prices
1. Jamaica's bauxite and alumina industry is undergoing its worst crisis since the 1980s, brought on by the collapse of demand for aluminium products and the consequential slide in prices. These products are essential raw materials for a wide range of industries which are being buffeted by the global economic recession. As demand for aluminium has fallen, producers have been forced to carry out cutbacks at smelters and alumina plants internationally to counteract the build-up of excess supply.
Expensive capacity
2. The companies are experiencing a sharp deterioration in their financial situation and have had to rationalise their production by closing more expensive capacity. Jamaica's alumina plants, which are among the higher-cost capacity, have, therefore, been more vulnerable.
Already, the two Windalco alumina plants have been closed and the Alpart plant, the largest of four on the island, will cease operations on May 15. These closures are being undertaken to reduce the excess supply of alumina within the systems of UC Rusal and Hydro Aluminium, the owners of the plants.
Lone exporter
3. The curtailment of aluminium and alumina output has also affected St Ann Bauxite Company, the lone exporter of crude bauxite on the island. The company has announced a 30 per cent reduction in 2009 as its customers in the US have cut alumina production.
All told, the local plant closures will result in a 50 per cent fall in bauxite production to eight million tonnes. Alumina output is projected to decline by nearly 60 per cent to just under two million tonnes, which will be lowest level seen in more than 20 years.
Further decline
4. The full impact of the closures will be felt in 2010 when bauxite output, assuming that the Jamalco plant and St Ann Bauxite Company continue to produce at current levels, could slip to less than seven million tonnes. With the Jamalco plant alone in operation, alumina production would decline further to about 1.5 million tonnes.
Significant challenges
5. The companies have announced their intention to halt capital projects for the time being and, along with the scaling down of production, this will result in a drastic fall in net earnings to around US$190 million or about one-third the level for 2008. Gross foreign exchange earnings are also set to fall dramatically, from about US$1.3 billion in 2008 to less than $450 million in 2009, posing significant challenges for the balance of payments. The implications for the exchange rate and the country's foreign reserves are grave, especially bearing in mind that the plants are not slated to reopen before the next two to three years.
Gross earnings
6. To be sure, both gross and net foreign exchange earnings will decline further in 2009 as alumina prices are anticipated to remain depressed due to weak market conditions and low aluminium prices. Gross earnings could fall to about US$360 million and net earnings to no more than $100 million.
Bauxite communities
7. The announced job cuts at the affected alumina plants and St Ann Bauxite Company are expected to reach over 1,000, which does not include those that will result from the impact of the closures on local suppliers of goods and services to the industry. Bauxite communities in St Elizabeth, Manchester, Clarendon and St Ann are going to see a downturn in business activity resembling the fallout that occurred in the 1980s.
Depressed levels
8. Government revenues from the bauxite industry, including bauxite levy, corporate income tax, PAYE income tax, statutory deductions and other revenues to government, which stood at US$ 898.7 million in 2003, had reached US$133.6 million by 2007. It slipped to US$1221.8 million in 2008 and will plummet to less than US$40 million in 2009 because of the drastic cut in production described above. There is no likelihood that government revenues will recover from this depressed level in the short term since the operators of the Windalco and Alpart plants have signalled that there will be no quick reopening.
http://www.jamaica-gleaner.com/gleaner/20090408/lead/lead11.html
Analyst say Rio cuts just the start
Aluminium division reduces capex and output
by Adam Duckett
Analysts say around another 2m t of annual production capacity needs to come offline
BANKING analysts say that yesterday’s cuts announced by Rio Tinto are just the beginning of necessary rebalancing. They warn that high-cost aluminium producers must cut production capacity even further to profitably meet lower demand.
Rio Tinto yesterday announced that it is cutting 700 jobs and slowing production and expansion plans at its Australian aluminium operations. The company’s aluminium division Rio Tinto Alcan will reduce annual bauxite production at its Weipa mine in Queensland by 23% to 15m t in 2009 at a cost of 100 permanent roles. To reduce capital expenditure it is also slowing the ongoing expansion of its Yarwun alumina refinery, also in Queensland. The eased construction plans delays the completion date to the second half of 2012 at a cost of 35 permanent roles (including 20 at Boyne Smelters) and 500 contracted roles. The company says that an altered maintenance contract recently shed another 70 posts at the refinery.
JPMorgan says that cuts at the company’s other high-cost smelters could be next: “We would expect further production cutbacks from Rio Tinto Alcan if aluminium prices do not recover materially, particularly in some of the high cost smelters that came with the Alcan purchase (non-hydro powered smelters).” These include Tomago in Australia, Dunkirk in France, Lynemouth in the UK, and Sebree in the US. Between them these operations have a capacity of 1150m t/y, though no-one is suggesting that this much capacity needs cutting.
Instead Citigroup analysts recommend that 1.4m t to 2m t of annual smelting capacity needs shedding to rebalance the oversupplied market.
Rio Tinto Alcan bauxite and alumina president Steve Hodgson says: “Even with alumina industry capacity cuts equivalent to 21m t/y since the beginning of the crisis, including cuts of 12m t made since January, there is still little improvement in the alumina price. At current prices around 70% of the industry is currently operating at a financial loss.”
Rio Tinto already announced it was cutting 15,000 jobs in December 2008.
http://www.tcetoday.com/tcetoday/NewsDetail.aspx?nid=11624
April 8, 2009 3:31 PM PDT
Interior secretary: Wind could replace coal power
by Erik Palm
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Secretary of the Interior Ken Salazar is optimistic about the potential of wind power to help wean the U.S. from dependence on foreign oil.
(Credit: CNET)
"The idea that wind energy has the potential to replace most of our coal-burning power today is a very real possibility," he said. "It is not technology that is pie-in-the sky; it is here and now," Salazar said, according to an AP report, at a meeting in Atlantic City, N.J., Monday.
Salazar is hosting four regional public meetings in April to discuss the future of offshore energy development on the nation's Outer Continental Shelf on the East Coast.
At the Atlantic City forum, he presented (PDF) estimates from the National Renewable Energy Laboratory that said wind has a gross resource of 463 gigawatts of power in the mid-Atlantic area alone. The current U.S. total production of electricity from coal is 366 gigawatts, according to the Energy Information Administration.
However, a large portion of the potential wind power is located out in deep waters. The laboratory assumes that about 40 percent of wind potential could actually be developed, totaling 185 gigawatts, or enough to power about 53.3 million average U.S. homes.
European countries, including Denmark and the U.K., have installed offshore wind parks. But so far not one offshore wind park has been built in the United States. Cape Wind in the Nantucket Sound hopes to be the first, but it is still fighting for approval.
A member of the American Coal Council, for example, told the Associated Press he thinks Salazar is too optimistic with his offshore wind estimates, and questions what will happen on days the wind is not strong enough.
Secretary of the Interior Ken Salazar
(Credit: U.S. Department of the Interior)
The offshore energy development on the Outer Continental Shelf could also include controversial offshore oil drilling, a popular topic last year when gas prices hovered around $4 per gallon. A moratorium on offshore oil drilling has expired and Salazar also presented a potential for new energy there.
After more than 50 years of exploration and development, 70 percent of total resources are yet to be discovered, he estimates. More than half of this potential exists in areas of the Outer Continental Shelf outside the central and western Gulf of Mexico.
But the seismic data, upon which these estimates are based, is often more than 25 years old, and Salazar said in a press release that department scientists discovered huge information gaps about the location and extent of offshore oil and gas resources.
President Barack Obama and Congress must now decide whether to allow drilling off the East Coast.
Salazar continued his tour with a similar forum Wednesday in New Orleans, where oil and gas industry representatives expressed concern about the Obama Administration promotion of renewables. They claim that green energy cannot possibly provide all U.S. energy needs in the coming years--if ever. Offshore oil drilling is a must, they maintain.
"All areas of the Outer Continental Shelf should be open without delay for oil and natural gas development," Sara Banaszak, senior economist at the American Petroleum Institute, said in a press statement.
Erik Palm, a business reporter for Swedish national television, is joining CNET News as a spring 2009 fellow with Stanford University's Innovation Journalism program. When he's not working, he enjoys kayaking and exploring California's hiking trails. E-mail Erik.
http://news.cnet.com/8301-11128_3-10215630-54.html
Other News
UN demands more climate ambition
By Richard Black
Environment correspondent, BBC News website
Transfer of technologies such as solar power is a demand of poorer countries
The year's first round of UN climate talks has ended with delegates talking of a clear split between the visions of developed and developing nations.
Developing countries want big emission cuts from rich nations by 2020, as well as finance for climate protection and more transfer of "clean" technologies.
The top UN climate official said richer nations should show "more ambition".
The talks in Bonn were the first round in a series aimed at reaching a new global deal by December.
This would supplant the Kyoto Protocol, whose targets for cutting emissions expire in 2012.
We have reached a crossroads, and rich countries get to choose the route we all take
Antonio Hill
Policy adviser, Oxfam
Earlier in the meeting, President Barack Obama's lead negotiator, Jonathan Pershing, told BBC News that the US would only offer cuts that were "politically and technologically achievable".
The president is looking at measures that would bring US emissions back down to 1990 levels by 2020.
But the EU has already pledged a cut of at least 20% from 1990 levels by that date; and developing countries, backed by environment groups, are calling for the industrialised world to act on recommendations made by the Intergovernmental Panel on Climate Change (IPCC) and make a reduction of 25-40% - some say the science now mandates at least 45%.
Mr Pershing said the US wanted to concentrate on achieving larger cuts but over a longer period of time, saying some of the demands from developing countries were "implausible".
But the calls for stronger action were backed by the executive secretary of the UN climate convention (UNFCCC), Yvo de Boer.
"The numbers being discussed so far are still a significant distance from that range," he said.
"More ambition is clearly needed on the part of industrialised countries."
Missing billions
Campaign groups generally welcomed the fresh US enthusiasm for the process, but warned that much greater carbon cuts and finance were needed.
The US faces some demands for stringent carbon cuts
"We have reached a crossroads, and rich countries get to choose the route we all take," said Antonio Hill, senior policy adviser with Oxfam.
"One route leads us out of today's economic and climate crises and towards a low carbon future.
"The other spells disaster for hundreds of millions of people across the globe."
The charity believes the West should commit about $50bn (£34bn) a year to assist poor countries in preparing for climate impacts.
Some observers contrasted the much smaller sums committed so far against the scale of the resources governments have made available to support beleaguered banks.
"Billions are flowing into recovery packages to save polluting industries and bad banks, but a financial stimulus to protect the UN climate talks from bankruptcy and to help those suffering from the impacts is missing," said Kim Carstensen, leader of WWF's Global Climate Initiative.
Delegates will reconvene in Bonn in June, by which time officials will have drawn up a draft negotiating text.
In an indication of how much negotiating lies ahead, delegates agreed to mount two extra meetings between the June gathering and the December summit in Copenhagen.
Richard.Black-INTERNET@bbc.co.uk
http://news.bbc.co.uk/2/hi/science/nature/7991039.stm
Internet campaign to reduce maternal mortality
New Delhi (IANS): Every seven minutes, one woman in India dies because of complications during childbirth or pregnancy. In order to address this problem, an NGO here will launch the Million Mums web campaign on the National Safe Motherhood Day April 11.
Trying to bring to the forefront the tragic reality of a woman facing risk to her life during a natural process such as childbirth, the White Ribbon Alliance India's (WRAI) main aim in launching this web campaign is to spread awareness about healthcare for mothers-to-be and speak out against needless maternal mortality.
Aparajita Gogoi, country head of WRAI, said: "In very simple words what the Million Mums campaign wants to achieve is to bring together a million mothers, or more, and raise a million pounds, at least, in order to mobilise this campaign to bring down maternal mortality".
However, owing to the fact that the campaign was launched in Britain by the Centre for Development and Population Activities (CEDPA) - which launched WRAI in 1999 - there are a few restrictions in the campaign to be launched here.
"There are a few restrictions. Since the Million Mums campaign is a web campaign, only English speaking and credit card holding individuals can donate. One pound comes to around Rs.84.
"Yet we are trying to reach out to as many people as we possibly can by saying that with the money that they donate, things like pregnancy kits, pregnancy charts, curtains for the labour room and other amenities can be bought - encouraging women to go for institutional birth and avoiding unwanted risks," Gogoi said.
Last year, WRAI had launched the Deliver Now for Women and Children campaign on Safe Motherhood Day. The focus was again to bring the attention of policy makers, politicians and the common man towards doin
http://www.hindu.com/thehindu/holnus/099200904091252.htm
Clean, Honest Polls Please
A negative vote ensures no one misuses your democratic right
TRILOCHAN SASTRY
THE SINGLE most common suggestion from voters and civil society around our country is for an option to choose ‘None of the above’, allowing a citizen not to vote for any of the candidates. Sometimes this is also called “reject all candidates”. The Election Commission has also endorsed this option and has written formally to the government to incorporate it in the electronic voting machines (EVMs). Some background on this is helpful.
Before we moved to the EVM system, we had ballot papers. A voter could go into the booth in secrecy and put a cross against all candidates, or in other ways invalidate her vote. With the coming of the EVMs, this option is no longer available since no button says ‘None of the above’. Rule 49(O) of the Conduct of Elections Rules, 1961, can be invoked to overcome this. A voter can go to a polling booth and tell the officer that she does not want to vote. The officer then looks up her name on the voter rolls, puts a line through it, and asks the voter to sign against her name. This allows a voter to formally register the fact that she has not voted. However, there is no secrecy since she has to publicly tell the officer that she does not want to vote. Since many officers are not aware of this provision, there is a lot of resistance even if a voter wants to exercise this right. In fact, many voters are also not aware of this provision.
There are some 49(O) rumours: if the maximum votes are for ‘None of the above’, then either there will be a re-poll or all candidates will be disqualified. This is incorrect.
There is an advantage in exercising your right under 49(O) — it ensures that no one else casts your vote. But under the current system, no statistics are available on how many people have used 49(O). The EC’s suggestion to have a button option on the EVM will allow the number of votes cast under ‘None of the above’ to be recorded. Once these statistics start becoming public, there will be a lot more pressure for far-reaching changes in the electoral system. A public interest litigation (PIL) asking for ‘None of the above’ has been admitted in the Supreme Court. It remains to be seen what the final judgment will be.
The long-term goal is clean elections that elect honest and capable MPs and MLAs committed to public service and to better democracy, finally delivering good governance.
The option of ‘None of the above’ is only one small step in that direction. We need more structural changes: democratic candidate selections instead of party bosses choosing in secret; political parties being more transparent about funding sources and democratic in internal functioning; and a public debate on the quality of representation. The first-past-the-post system often leads to situations where the winner has about 20 percent of the registered votes. The ruling party usually has at the most 35 percent of the votes. This is followed by horse-trading and coalitions of convenience. A party with 35 percent votes can go largely unrepresented, as happened in Karnataka where the Congress actually got more votes than the BJP but far fewer seats. These anomalies need to be removed, and there are several alternate ways of arriving at better representation.
But all these changes need new legislation and Constitutional amendments. Meanwhile, we face a major General Election in the midst of various national crises, ranging from terrorism, extremism, economic slowdown, poverty to agricultural distress. In the next few days, the most practical thing voters can do is to exercise their vote, know their candidate’s background before voting, refuse to sell their votes for money — and yes, use 49(O) if they want to express their dissatisfaction with the quality of candidates in their constituency.
Sastry is a voters rights activist based in Bengaluru
From Tehelka Magazine, Vol 6, Issue 14, Dated Apr 11, 2009
http://tehelka.com/story_main41.asp?filename=Ne110409proscons.asp
Feature
How safe is the bottled water?
Thursday, April 09, 2009 08:00 IST
By Dr VH Potty
A recent finding that mineral water packed in plastic bottles can extract dangerous chemicals from the container which will exert estrogenic functions, when consumed regularly, cannot be easily dismissed. The conclusion was drawn based on the observation that the chemicals isolated from such water samples caused an increase in the development of embryos in some species of mud snails. How far this evidence translates into any potential threat to human beings who consume water packed in plastic bottles cannot be ascertained with any certainty because of insufficient data to support such a possibility. Use of plastic bottles especially PET for disposable type of containers and Poly carbonates for reusable purpose is widely prevalent in India and therefore it must get the attention of scientists as well as the authorities concerned with this product. While small containers of capacity 500 ml to 2 litres are in use in the retail market, bulk supply with reusable containers with capacities 5 litres to 20 litres is common at the household level and in mass catering places.
There is a strong group of activists who feel that water packed in plastic bottles entails heavy health risks because during their manufacture a cocktail of chemicals are used for imparting various properties to the plastics. Environmentalists oppose use of plastics because for making every bottle of one litre capacity, 3-5 litres of water is used which is considered as wasteful. Also cited is the reported presence of Antimony, a heavy metal, in water packed in plastics, leached out from the container. Alarming picture is painted to show that water stored in plastic containers leaches more and more Antimony with time and temperature but maximum reported was less than 700 parts per trillion (ppt) while up to 20000 ppt is considered safe in potable water by international safety organizations. In another study some commercial samples of bottled water reportedly contained 38 different pollutants like bacteria, fertilizers and industrial chemicals though many of these pollutants could have come from the source from where the water originated. The Bisphenol A (BPA) episode of recent origin is still fresh in the minds of the consumers but water is generally not bottled in polycarbonates from where BPA can be leached out. Polycarbonate bottles are popular amongst consumers as reusable water bottles but realizing the risks of BPA, polycarbonate is being shunned by all major retailers across the world.
Use of Polyvinyl chloride pipes for transport of water also is under scrutiny as it is likely to release trace chemicals like BPA, phthalates, organotin etc all with estrogenic activity. Relatively safe plastics like HDPE are increasingly being preferred for piping and storage of water for the households as well as commercial purpose. While those who consume bottled water occasionally may face relatively lesser risk of health hazards, if the household plastics being extensively used to store and supply water were found to be leaching out such chemicals, there is bound to be some concern. Fortunately, as of now, such fears may be misplaced, though what future holds is not certain. Going back to cement or steel storage tanks and GI pipes for water supply may yet be a safer bet in the long run.
The mud snail story from Germany may provide some grist for the anti-plastic groups to denigrate bottled water industry for some time but a critical scrutiny of the data brings out the startling fact that even in snails bred in glass bottles there were abnormal embryo development. Probably this indicates that the original water used itself had some xenoestrogen chemicals and extractive from the plastic bottles only increased the incidence. Also to be noted is that the German study was on bottled mineral water, not on normal potable water and whether the cocktail of minerals present had any role needs to be checked. Further study is warranted to come to a definitive conclusion that plastic bottles are risky to be used for packing water and damning an industry based on such scanty studies is not justified. Globally drinking water industry made 115. 4 billion litres of water in 2006 worth about $ 60.9 billion. By 2011 world will witness a production of 174.3 billion litres valued at $ 86.4 billion.
In a country like India where millions of people travel 365 days an year, bottled water is only the dependable source of bacteria-free water. Similarly millions of people gather in thousands of venues across the country for religious, social and professional meetings and bottled water is the major source of safe drinking water. Suggesting alternative containers like cans and bottles is not practical considering the cost and availability. If there is a risk proven beyond doubt through scientific evaluation, ways and means will have to be found to make the containers safer through better manufacturing technologies.
V.H.POTTY
http://vhpotty.blogspot.com/
http://www.fnbnews.com/article/detnews.asp?articleid=25202§ionid=1
Thu, 9 Apr 2009
‘CPM poll cut’ in NREGS wages: poor see red
Express News ServicePosted: Thursday , Apr 09, 2009 at 0542 hrs IST
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Kolkata: File complaint alleging the local pradhan deducted part of their wages for LS poll fund without consent
In what could leave the CPM red-faced in the run-up to the Lok Sabha polls, a few villagers working under the National Rural Employment Generation Scheme (NREGS) in Birbhum district’s Balijuri village have filed a complaint with the local administration alleging that party leaders have cornered a part of their wage money for poll funds without their consent.
Moumita Saha, the BDO of Dubrajpur, the block under which Balijuri village falls, confirmed a complaint has been registered against the local CPM pradhan and members of Balijuri gram panchayat in this regard.
“I have received a complaint against the panchayat pradhan and other members. We have started a probe. The complainants are workers who supervised the project,” Saha said, adding that the wages of the unskilled workers are deposited in their post office accounts while that of group supervisors (semi-skilled and skilled workers) were paid through vouchers.
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“So, there is scope for the panchayat members to deny them their exact wages. However, the truth will come out after the probe,” she added.
The BDO said the concerned project was for a period of 10 to 12 days and the group supervisors were paid Rs 100-110 per day.
According to villagers, a pond was dug up in Balijuri panchayat area a few days ago and the workers received their wages on April 6 and April 7. After receiving their payments, semi-skilled workers noticed that Rs 150 -200 was deducted from their total wages as subscription for party funds.
Ananda Gopal Roy, a semi-skilled worker, alleged that the pradhan even gave them a signed subscription slip, informing that the amount has been deducted from their wages and is meant for the party’s Lok Sabha election fund. He also alleged that like him, nine others were engaged as semi-skilled workers in the project and they too had been denied their dues.
As the news spread on Tuesday evening, local Trinamool Congress supporters surrounded the panchayat pradhan and other panchayat members and held them in the office room for a few hours before they were freed by the police.
On Wednesday morning, villagers lodged a complaint against Malati Ghosh, the CPM pradhan of Balijuri village panchayat and other members.
The CPM zonal committee secretary of Dubrajpur, Arun Mitra, denied the allegations. “The villages, who worked in the NREGS project in Balijuri, are our supporters. They voluntarily paid subscriptions for the Lok Sabha poll fund of our party. The Trinamool is creating tension in the area,” he said.
The area falls under the Birbhum Lok Sabha constituency where Trinamool candidate and actor Shatabdi Roy is pitted against CPM’s Brajamohan Mukherjee.
http://www.indianexpress.com/news/cpm-poll-cut-in-nregs-wages-poor-see-red/444968/0
Rural job scheme hurts industries
Dhanya Matsa
First Published : 09 Apr 2009 02:13:00 AM IST
Last Updated : 09 Apr 2009 08:37:21 AM IST
CHENNAI: For the residents of three panchayats under the Puzhal Union in Tiruvallur District, National Rural Employment Guarantee Scheme (NREGS) has become an integral part of their livelihood, but small industries situated there are wooing people from across Tamil Nadu and nearby Andhra Pradesh in search of cheap labour.
The panchayats of Vadagarai, Grandline and Achampakkam form a major part of the Puzhal Union, due to the high concentration of residents and the number of rice mills, timber depots, plastic and bottle companies.
In 2004, people working allegedly as bonded labour in rice mills were released and that led to huge losses for the rice mill owners. When companies were looking for alternative labour within the panchayats they found no takers. “They were offering us very low wages and in some cases told us that they will pay us in rice bags depending on the work we finish. Some even considered taking it as we had to go far in search of work’’, explains Velu, a resident of the Grandline panchayat.
But the NREGS scheme came to their rescue. For 100 days in a year a person was given work like laying roads, digging canals or desilting lakes. “The demand is so high. In a village that has only 1,200 residents, we had over 100 people working with us at any given time,’’ says Bharathi, panchayat president, Vadagarai.
This did have an adverse effect on the industries, including rice mills. “After the exodus, most mills in the area had only two options. Mechanise the mills so that there is hardly any need of labour or close the mills. While bigger mills managed the transition over the years, even after five years only 20 mills in the area are completely mechanised. Smaller ones still survive by bringing people from Nellore or from Cuddalore, Kancheepruam, and Tiruvannamalai districts,’’ said N Nandagopal, who runs Balamurugan rice mill.
In these three panchayats alone over 10 mills have been converted into godowns or garages. “This did mean loss of jobs for the people. But the people are very clever. They examined the options and worked accordingly. In Grandline panchayat, where MBCs and BCs dominate, only women worked in NREGS while the men went to Ambattur and T Nagar for their jobs. In other panchayats, where Adi Dravidars dominate, men formed the majority to work in the NREGS system.
Since NREGS plays an important role, residents in these panchayats are eagerly looking at the elections to see if the number of working days allowed per person will be increased. That, they say will decide in a political party’s favour.
http://www.expressbuzz.com/edition/story.aspx?Title=Rural+job+scheme+hurts+industries&artid=ujgijJIdqMM=&SectionID=lifojHIWDUU=&MainSectionID=lifojHIWDUU=&SEO=Tamil+Nadu&SectionName=rSY|6QYp3kQ=
‘Protection of human rights not possible sans health rights’
NEW DELHI, April 8: Health rights continue to be violated worldwide and this “willful” illegal infringement must be arrested, according to Ms Mary Robinson, former President of Ireland and the former United Nations High Commissioner on Human Rights
Delivering a lecture titled Realising the Right to Health in Practice as part of the Public Health Lecture Series 2009 here yesterday, Ms Robinson said instead health policies supported by a well-defined legal framework must be tailored to promote and protect health if the objective of enjoyment of economic, social and cultural rights has to be realised.
Access to health is a right for all, she said, but advocated achieving equity in health care services through a human rights perspective. “Realising the right to health in practice’ not only means creating awareness among people regarding their rights to human rights but also encompasses governments” obligation to make right to human health a reality, said the eminent legal and political expert.
For Ms Robinson, health rights and human rights are interdependent and violation of one leads to another. “If lack of attention to human rights can have serious ill-health consequences like harmful traditional practices, slavery, torture and inhuman and degrading treatment, to violence against women and children, skewed health policies and programmes can violate human rights leading to discrimination,” she said.
Vulnerability to ill-health, however, can be reduced only if there is a legal provision to make right to health justiciable, according to Ms Robinson.
Lauding the role of the Supreme Court of India in equating on several occasions “the right to health” to the status of ‘Right to Life’ as promised by Article 21 as part of Fundamental Rights in the Constitution of India, she said in the absence of a proper well-defined legal framework no nation can protect or provide any “effective” right to health or human rights.
Right to life, she said, would not be possible without right to food and nutrition, hygienic sanitation, clean drinking water as well as clean air to breathe. Providing for health should not be seen as a “burden of cost” by nations but as a means to give a boost to their economy and development if we need to improve the ever deteriorating nutrition report cards or save deaths due to lack of medical care across the world, she concluded. She expressed concern at the 72,000 deaths of children under 5 years of age in India for want of vaccines or 600,000 women dying globally during child birth. n SNS
http://www.thestatesman.net/page.news.php?clid=2&theme=&usrsess=1&id=249978
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