24/04/09

Mining – India
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1. Mittal extends project deadline
2. Corporate | Posco adds steel plants in India, Thailand
3. Ennore Coke to begin land acquisition for Dhamara plant soon
4. Steel gets anti-dumping duty to beat import heat
5. Hegde for good governance
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Mining – International
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6. Civil society organizations call for a new mining law
7. African governments dig in for fair mining deals with multinationals
8. OZ Minerals Deal Cleared
9. APC Group pursues mining, energy projects
10. Mining company seeks land
11. Minerals Development acquire overseas mining right by capital increase on subsidiaries
12. Riversdale ups Benga coal mine estimate
13. Govt seeks investors in mining equipment operations
14. Manganese mining protested
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Other News – India
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15. Sunita Narain: The future agenda
16. Include indigenous rights in global climate change policies, summit told
17. IMF, World Bank want more action to combat crisis
18. Colombia's support for UN declaration on indigenous people welcomed
19. The truth about climate change
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Mining – India

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Mittal extends project deadline
24 Apr 2009, 0100 hrs IST, Prabhakar Sinha, TNN

NEW DELHI: Arcelor Mittal has delayed the completion of its two new integrated steel plants in Orissa and Jharkhand by around two years to 2014.
However, the company's spokesperson said the groundwork like acquisition of land and development of coal mines was going full steam ahead.

The spokesperson said the delay was mainly on account of changed circumstances due to global economic crisis. However, he maintained that the company was committed to complete the projects in India, which was one of few markets that was showing growth even during a global recession. The company is planning to put up two plants of 12 million each at a total investment
of $30 billion.

Arcelor Mittal, which produces around 10% of the global steel, is facing a tough time, as the production is down by 45% in US and Europe. This has also affected Arcelor Mittal's performance. The company, which is presently saddled with a total debt of $26.5 billion, is negotiating with its lender to change the term of funding. Besides this, he said the company recently raised $1.65 billion through bonds. The company has strong cash flow in the coming months to meet its liabilities, the spokesperson added.

However, steel industry in India is working at full capacity due to growth in the rural demand. The spokesperson said India will continue to witness surge in demand for steel in times to come. India's per capita steel consumption is low at around 35 kg as against around 200 kg in china and 450 Kg in the developed world.

Therefore, he said India, which is a future growth market, remained high on Arcelor Mittal's priority list of making investments.

http://timesofindia.indiatimes.com/Business/Mittal-extends-project-deadline/articleshow/4441983.cms

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Corporate | Posco adds steel plants in India, Thailand
The two plants can each process 120,000 tonne of steel a year, the company said in an emailed statement on Thursday

Seoul: Asia’s third biggest steel maker, Posco, has completed processing plants in Thailand and India to secure sales from auto makers and electronics companies amid weak demand in the global recession.
The two plants can each process 120,000 tonne of steel a year, the company said in an emailed statement on Thursday.
Posco, which cut output for the first time in its 41-year history, expanded its customer base this year to include Sony Corp. and began supplying steel to Toyota Motor Corp.’s plants in Japan to boost demand.
The Thai plant in Wellgrow, near Bangkok, will supply steel to Japanese auto makers and South Korean electronics firms, Posco said. The Indian plant is located in Maharashtra, where several global car makers including Tata Motors Ltd have plants.

TCS may double India sales to $1 bn in 3 years
Bangalore: Tata Consultancy Services Ltd (TCS) aims to double sales of its computer-services in India to $1 billion (Rs5,020 crore) in the next three years, chief operating officer N. Chandrasekaran told reporters in Bangalore on Thursday.
— Bloomberg

http://www.livemint.com/2009/04/24000809/Corporate--Posco-adds-steel-p.html

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Ennore Coke to begin land acquisition for Dhamara plant soon

BS Reporter / Bhubaneshwar April 23, 2009, 19:03 IST

Ennore Coke Limited, a domestic manufacturer of metallurgical coke, plans to scout for land for its proposed one million tonne per annum (mtpa) coke plant at Dhamara port in Orissa within three to four months.

The company needed 250-300 acres of land at Dhamara to set up a one mtpa coke plant at an investment of about Rs 1,400 crore. The plant was scheduled to be operational by the end of 2010.
“We would start scouting for land for our proposed coke plant at Dhamara port within three to four months. The company intends to acquire land for the project on its own”, said Ganesan Natarajan, president and chief executive officer, Ennore Coke Limited.
On acquiring 90 per cent stake in Broughton Coal mines of Australia, Natarajan said, “We would conduct due diligence for the coal mines within a week. The company expects to close the deal at $10 million.”
Broughton coal mines of Australia are presently valued at about $12 million and they have an estimated reserve of 30 million tonnes of coking coal. Ennore Coke was looking to invest an additional $25-30 million on mining operations of these mines.
Ennore Coke had identified 3-4 coking coal properties in Australia for acquisition. It was also exploring the possibility of picking up stakes in coking coal assets in New Zealand.
Ennore Coke was aiming to pick up stakes in overseas coal mining assets as valuations of these properties were attractive in the aftermath of the economic downturn. Moreover, the company was aiming to achieve raw material security to cater to its expansion plans.
At present, the coking coal requirement of Ennore Coke stands at 7,20,000 tonnes per annum. The company’s coking coal requirement is set to go up significantly in the next couple of years as it is aiming to scale up capacity of its coke plant at Haldia (West Bengal) from the existing 1.5 lakh tonnes per annum to 3 lakh tonnes per annum.
Besides, the company’s proposed coke plant at Dhamara would have a coking coal requirement of 1.3 million tonnes per annum.
To cater to its growing raw material requirement, Ennore Coke aimed to import about four lakh tonnes of coking coal, mainly from Australia in 2009-10 out of which 50 per cent would be semi-soft coking coal and the remaining 50 per cent being premium hard coking coal.
Meanwhile, the company has successfully pushed coke into its batteries in its coke plant located in Haldia last week.
Commenting on the achievement, Natarajan said, “This is a proud moment for us and I would like to take the opportunity for thanking every member of the Ennore Coke family who have toiled ceaselessly to achieve this milestone.”
The successful pushing of coke at the Haldia plant is the first stage of the process of coke making which will culminate with the company attaining its full capacity of producing 130,000 mtpa of coke by the end of May this year. Ennore Coke will also co-generate 12 MW of power, which in turn will generate carbon credits and further add to the company’s bottom-line.
http://www.business-standard.com/india/news/ennore-coke-to-begin-land-acquisition-for-dhamara-plant-soon/59189/on

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Steel gets anti-dumping duty to beat import heat
24 Apr 2009, 0436 hrs IST, ET Bureau

NEW DELHI: The government has imposed a special anti-dumping duty on import of cold-rolled flat stainless steel products, shielding some domestic

producers from the threat of cheaper imports, while pushing up costs for several consumers.

The levy, called the provisional special duty and ranging from $12.74 per metric tonne to $2011 per metric tonne (depending on the type of steel, country of manufacture, origin of import and producer) will make imports from the US, European Union, China, Thailand, Korea, South Africa, Chinese Taipei and Japan dearer. While the levy will help stainless steelmakers Jindal Stainless and SAIL, a raft of users straddling sectors as diverse as automobiles to refineries to utensils and kitchen equipment makers will be hit by costlier imports.

The anti-dumping duty will remain in force till October 21 this year, but could be reviewed and extended further. The duty will hit companies such as ArcelorMittal, Acrinox, Outokumpu, Columbus, Posco, Daewoo International Corporation, Hyundai Corporation and LG International, which sell stainless steel manufactured abroad in the Indian market.

The Central Board of Excise and Customs, an apex body for indirect taxes that typically levies such duties upon receiving evidence of dumping, has notified the duty. Dumping normally involves exports of a product or a commodity from a country at a price lower than what it is sold locally and which causes injury to local producers of the importing country. The notification follows a recommendation by the Directorate General of Anti-dumping and Allied Duties (DGAD), which said the domestic industry had suffered “material injury” as a result of dumping.

http://economictimes.indiatimes.com/News/Economy/Foreign-Trade/Steel-gets-anti-dumping-duty-to-beat-import-heat/articleshow/4442340.cms

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Hegde for good governance

Express Features
First Published : 24 Apr 2009 04:28:00 AM IST
Last Updated : 24 Apr 2009 09:15:54 AM IST
BANGALORE: Justice N Santhosh Hegde said he is prepared to look after the issue of illegal sand mining which is affecting the construction industry. He said so while addressing the members of Builders’ Association of India. He also said that as Lokayuktha, checking corruption is only 10% of his job while 90% of his work is to ensure good governance.
Making a critical comment -- that Bangaloreans being very docile, are not raising their voices against the politicians to get what they deserve -- he called all associations like the Builders’ Association of India to raise issues in public so that government would be more effective.
He read out a copy of his letter written to the mining secretary about the illegal sand mining in and around Bangalore and his offer to help locate proper mining areas, and said he is yet to receive a reply from the government.
In the interest of the citizens, he offered to take the demands of builders to the government. He also recommended that the only way to improve infrastructure is to develop other towns and cities rather than dumping all the industries in Bangalore.
At the meet, Seenaih, vice president of south Builders Association of India, installed V Srinivasa Murthy as chairman, K S Someshwar Reddy as secretary, Srinivasa Reddy as treasurer along with other committee members for the year.

http://www.expressbuzz.com/edition/story.aspx?Title=Hegde+for+good+governance&artid=z1VbzOX0ldI=&SectionID=Qz/kHVp9tEs=&MainSectionID=Qz/kHVp9tEs=&SEO=Builders%E2%80%99+Association+of+India,+Santhosh+Hegde,+il&SectionName=UOaHCPTTmuP3XGzZRCAUTQ==

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Mining – International
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Civil society organizations call for a new mining law
4/23/2009

Current legislation deprives communities of benefits, allowing corporations to use up important resources.

Last November, more than 6,000 people from 49 predominantly Mayan Mam villages, made their way to the Santa Barbara town hall to vote on mining exploration licences, recently granted by the Guatemalan Ministry of Energy and Mining to Montana Exploradora, a subsidiary of Vancouver-based Canadian Goldcorp Inc.

The villagers were called to the plebiscite by their community leaders and were asked by Mayor Jesús Sales, whether or not they approved of four mining prospection licenses in their area, in the northern department of Huehuetenango.

The town hall was packed to the brim. Children held makeshift banners that read “No to Mining” and when asked by the mayor whether they wished for these projects to go ahead, the building was shaken by a resounding “No!”

Then, the people of Santa Barbara were asked to vote by a show of hands. Everyone later filed onto the stage to sign a community statement, a copy of which was sent to Congress, the Ministry for Energy and Mining (MEM) and the Presidential Social Communications Secretariat.

Water already scarce
Ensconced in the Sierra de los Cuchumatanes mountain range, Santa Barbara is prone to drought during the dry summer season, which runs from October to early May, and communities feared that mining projects in the area would make the problem worse.

Montana already runs two mining projects in San Miguel Ixtahuacán and Sipakapa, in the northern department of San Marcos and one of the most contentious issues in that region has been the fact that the corporation is allowed unlimited use of the area´s water resources.

In a press release issued by the municipality of Santa Barbara after the plebiscite took place, Mayor Jesús Sales, stated: “Our communities, through their municipal authorities and traditional indigenous leaders urge the Guatemalan State to respect the decisions of those who will be affected by metal mining and abide by ILO Convention 169. We urge the state to annul the licenses halt any further mining activity in our municipality.”

According to Carlos Guárquez, director of the Guatemalan Association of Indigenous Mayors and Authorities, to date, 31 municipalities across the country have held popular consultations or plebiscites, in which mining activity was rejected. Twenty-three of these plebiscites were held in Huehuetenango alone.

A New Mining Law
In 2008, the Center for Legal, Social and Environmental Action, or CALAS, successfully petitioned the Constitutional Court to strike down aspects of the Mining Law. The court found that the law was unconstitutional because it did not require sufficient consideration to be given to the environmental consequences of mining before a license was issued. The law allowed for mining to an unlimited depth and allowed contaminated water from mines to be discharged into rivers.

A new version of the law is scheduled to be debated in Congress. However, human rights and environmental activists point out that the new bill proposed by the Congressional Commission on Energy and Mining is just as bad as the original version as favors the mining corporations to the extent that it fails to even distinguish between metal and non-metal mining. Not surprisingly, this bill has the full support of the Energy and Mining Ministry.

On March 19, indigenous and environmental organizations presented the commission with series of demands which they believe should be included in the new mining law such as higher royalties from the mining corporations and the retroactive payment of royalties for existing mining projects in which the corporation makes six figure annual profits but pays the state a pittance.

Royalties from mineral extraction are currently only 1 percent, shared between the state and the affected municipality, whereas a project the size of the Montana´s Marlin mine operating in Canada would be subject to a royalty fee of 13 percent of total production, under the current legislation.

But royalties are not the only point of contention. Indigenous and environmental organizations have also called for a new model of natural resource management that is more in tune with the needs of local communities.

Their main demand is that mining projects be subject to public scrutiny and debate, which means that popular consultations should be heeded and should determine whether a license is granted.

If these recommendations are included in the new mining law, Goldcorp´s subsidiaries Montana and Entremares could face prosecution for failing to consult local communities before beginning a project.

Undeterred, Goldcorp has pressed ahead with the new projects such as the Escobas gold mine in Mataquescuintla, Santa Rosa, and the Cerro Blanco project in Jutiapa, both in eastern Guatemala. The latter also contemplates the construction of a geothermal energy plant.

The government also appears to be little inclined to make any changes to its current energy policy, despite opposition from local communities and is covertly seeking foreign investment in uranium mining.

During the first week of March, a government delegation traveled to Russia seeking investment in infrastructure, oil and mining projects.

“Recent studies show that we have a huge potential to produce uranium but we need investment and technology in order to exploit these opportunities to the fullest,” said Alfredo Pokus, vice mining and energy minister during the scarcely publicized trip.

Energy and Mining Minister Carlos Meany has been more cautious.

“There is no certainty about the country´s uranium reserves,” he said, although three uranium prospection licenses have already been granted: two in Finca Sarroguacax, Cobán, in the northern department of Alta Verapaz, managed by landowner José Martín Montenegro Calderón and one in the eastern department of Chiquimula, operated by Guatemala Copper SA, a subsidiary of Canadian corporation Creso Resources Inc. —Latinamerica Press.

http://www.latinamericapress.org/articles.asp?art=5841

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African governments dig in for fair mining deals with multinationals

Written by Africa Renewal
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Former UK Prime Minister, Tony Blair, has called for renegotiation of deals and transparent operations.
April 24, 2009: Mineral-rich countries in Africa enjoyed a mining boom between 2002 and 2007 as metal and oil prices nearly tripled. Companies competed furiously for new mines to meet growing world demand.

As a result, a number of African nations found themselves in a much stronger bargaining position with foreign investors, who previously were able to demand (and get) huge breaks before they would invest.

Now governments could strike better deals with new investors, and even renegotiate old mining contracts.

“We just want to make sure that we are getting the best [deal] for our deposits,” Alhaji Abubakarr Jalloh, Sierra Leone’s minister of mines, said in September 2007.

But since then, amidst a global economic downturn, world metals and oil prices have fallen substantially, raising concerns that investors will once again shy away, and to some extent undercutting Africa’s bargaining power.

Zambia, for example, had hoped to impose windfall profit taxes on copper mining to finance an infrastructure fund, but shelved those plans after copper prices plunged from $9,000 to $3,000 a tonne.

Though richly endowed with mineral and oil deposits, Africa has generally drawn little benefit from that wealth.

Mining and oil profits have long gone abroad or been squandered, leaving many people in poverty. But the emergence of more democratic and accountable governments, along with agitation by communities and civil society groups, has contributed to efforts to better harness mining for development.

So despite the recent fall in world prices, African countries will likely continue to bargain for better contracts. The goal is not just to ensure higher national revenues, but also to address long-standing community concerns about environmental pollution and compensation for people displaced by mining operations.

Most mining contracts in Africa were negotiated in the 1980s and 1990s when low world prices and high political risks discouraged foreign investments in the continent’s mining sector, observes Festus Mogae, the former president of Botswana, a country widely regarded as one of Africa’s most successful mineral exporters.

Speaking at a meeting of the African Development Bank (AfDB) in December 2008, he noted that previously African countries had to entice investors by incentives such as extensive tax and royalty exemptions.

Consequently, many countries earned very little from such contracts. “That is why it is necessary to renegotiate some of them,” he said. “We should use our best endeavours to negotiate fair deals with multinationals.”

But reviewing mining contracts is important for more than earning greater revenues.

Governments are also responding to pressures from civil society groups and communities to ensure that contracts and mining codes address environmental protection, adequate compensation to affected communities and the rehabilitation of land after mining operations have ceased.

Ibrahim Aidara, the West African extractive industry programme coordinator for the UK-based non-governmental group, Oxfam, notes that few countries have proper mechanisms to regulate the impact of mining on communities.

Even where environmental and compensation laws are in place, they are rarely enforced.

So companies spend very little in compensation or on post-mining clean-up efforts.

Local communities, moreover, often have little say in how mining contracts and codes are formulated, even though their livelihoods are the most affected. Nor do governments have adequate mechanisms for reinvesting mining revenues in development programmes.

“Mines are a public resource and the negotiations between countries and companies should be transparent, accessible and easily understandable by citizens,” Mr Aidara told Africa Renewal.

“Communities should be able to review mining contracts, find out how much revenue has been generated and how, and on what it is being spent, and have access to information about all other impacts of a mining operation.”

Partly in response to such concerns, and despite the recent decline in world mineral prices, governments are continuing to press for reviews of old contracts and to be more demanding in negotiations for new ones. “Most of our policymakers now understand that their national economies are not benefiting from mining and that to do so, it is important to have good policy in the sector and be more transparent,” says Mr Aidara. “They understand that they have to reform. This is a good start.”

Tanzania has made some progress in this area. In the past, gold- and diamond-mining investors often received tax concessions lasting up to 20 years. So while mining accounted for nearly half of Tanzania’s exports, the total taxes paid by all the mining companies combined amounted to less than the tax paid by a single local company, Tanzania Breweries.

To address the problem, Tanzania set up an 11-member committee of government officials, mining experts and civil society representatives to look at how to make mining contracts work better for all. The committee’s recommendations were used in renegotiating existing agreements.

Empowerment fund

Subsequently, Tanzanian Minister of Energy and Minerals, Nazir Karamagi, announced to Parliament that mining companies AngloGold, Barrick and Resolute had agreed to pay annual levies equivalent to US$200,000 directly to local governments in the areas where their mines were located. The funds would be used for community projects.

An additional $125,000 annually would be paid to an “empowerment fund” to finance national development projects. The companies would also be required to buy local products and services where these are available, instead of importing them.

Governments are reaching out to civil society groups in attempts to better respond to community concerns.

In April 2008 the secretariat of the Economic Community of West African States (Ecowas) invited Oxfam to help facilitate civil society participation in the drafting of a new regional mining code.

“When we have the regional mining code ratified,” explains Mr Aidara, “it will be binding for all the member countries, and will supersede all existing national codes.” He notes that the new code would standardise compensation and environmental rules, eliminate contradictions and align the mining codes of all 15 Ecowas countries.

But better contracts alone may not be enough to ensure that citizens of resource-rich countries benefit from their natural wealth. According to Paolo Desea of the World Bank, speaking at a meeting of African mining officials in Guinea in early 2008, widespread poverty in these countries often has less to do with bad contracts than with a “lack of clear laws for national governments [on how] to distribute the money.”

Guinea illustrates the problem. Mining companies there are legally obliged to pay a tax to the owners of the land on which they mine. They are also required to support local development projects.

But civil society representatives, in a June 2008 interview with UN Integrated Regional Information Networks, pointed out that hundreds of thousands of dollars paid as taxes to support development in Guinean villages rarely reached the communities themselves.

They cited the case of Russian bauxite-mining company ACG-Rusal, which over three years gave $100,000 in development assistance to a local prefecture.

But the 25,000 citizens of Mambia, the village where ACG-Rusal operates, received only a single small payment, in 2006. Mambia remains without electricity or piped water.

Mr Mogae acknowledges the problems of corruption and poor management of Africa’s mineral resources.

“Some of our countries’ individual leaders use their access to financial resources from extractive industries to advance their own personal agendas, instead of using them in the best interest of the nation as a whole,” he said at the December 2008 AfDB meeting.

Burkina Faso’s former Minister of Economy and Finance Jean-Baptiste Compaoré agrees.

But he adds that countries such as his are taking steps to avoid such pitfalls. Burkina Faso has recently joined the Extractive Industries Transparency Initiative (EITI).

Launched in 2002 by then UK prime minister, Tony Blair, the initiative requires members to publish all data on revenues from mining and oil operations.

By joining the EITI, Mr Compaoré said in June 2008, “Burkina Faso has undertaken to ensure transparency in the exploitation of its mineral resources and the use of resources arising from them.” This, he hopes, will “maximise the positive development of the mining sector on growth and the fight against poverty.”

Reduce poverty

In theory, publishing all data on mining revenues and on what mining companies pay to governments should make it possible for citizens and development experts to track how much of the wealth is being used to help reduce poverty.

This, it is hoped, will encourage transparency and accountability on the part of governments and mining companies. Sixteen African countries, including Burkina Faso, Ghana, Liberia, Guinea and Sierra Leone have joined the initiative.

Transparency is especially difficult in countries coming out of war. Civil society activists often cite the mining industry in the Democratic Republic of the Congo.

In March 2007 a coalition of more than 100 international and local Congolese non-governmental organizations (NGOs) demanded that the government “renegotiate, revoke, or cancel” disadvantageous mining contracts that had been signed during the war or under the transitional government that was in power from 2002 to 2006.

The NGOs claimed that three of the largest contracts approved by the transitional government had “collectively signed away over 70 per cent of the government’s most valuable copper and cobalt reserves to international companies.”

Mining contracts

A month later the new government — which came out of the first democratic elections at the end of 2006 — set up an inter-ministerial commission to examine more than 60 mining contracts.

It finished its work in October 2007, but did not publish the results until March 2008, after concerted lobbying by the NGOs.

But environmental degradation, compensation for people affected by mining operations, and post-mine recovery concerns were not addressed.

NGOs also protested the fact that a task force set up to oversee implementation was staffed entirely by government officials.

Given the history of corruption and lack of transparency in the Congo’s mining sector, the NGOs argued that the task force should have included independent and international legal experts, as well as members of civil society.

http://www.bdafrica.com/index.php?option=com_content&task=view&id=14229&Itemid=5812

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OZ Minerals Deal Cleared
Australia Approves China Minmetals Bid Under Revised Terms
By RACHEL PANNETT
CANBERRA -- The Australian government approved China Minmetals Corp.'s US$1.21 billion offer to acquire mining assets from OZ Minerals Ltd., allowing one of the latest Chinese investments in Australian natural resources to move forward.
Minmetals had initially offered to acquire all of OZ Minerals for US$1.8 billion. But Australian Treasurer Wayne Swan last month blocked the deal, citing the proximity of OZ's Prominent Hill mine to a military zone. The new deal excludes the mine and carries other conditions for Minmetals.
The deal was closely watched by investors looking for signs of how Australian regulators would treat Aluminum Corp. of China's proposed US$19.5 billion minority investment in Anglo-Australian mining giant Rio Tinto. Government officials discouraged the comparison, saying the circumstances related to the OZ offer were unique.
The new offer was crafted to win government approval and isn't a takeover but a purchase of assets. It still requires shareholder approval.
The approval was disclosed after the close of trading in Australia, in which shares of OZ ended at 63 Australian cents, up 1.6%.
Mr. Swan said Thursday he has been advised by OZ that it intends to remain listed on the Australian exchange and will continue operating and developing the Prominent Hill mine.
Debt-laden OZ said the deal would resolve refinancing issues. Its lenders had agreed to extend the refinancing of 1.1 billion Australian dollars (US$777 million) in loans to April 30.
OZ has said the new Minmetals deal would allow it to retire all its debts, barring its convertible bonds, and still have a cash balance of about A$600 million on completion of the transaction.
Mr. Swan's office said Minmetals, which is controlled by the Chinese government, will be required to operate the acquired mines as separate businesses with commercial objectives. The mines must remain headquartered in Australia under a mainly Australian management team, including an Australia-based chief executive and chief financial officer. Prices must be set on an arms-length basis to China Minmetals, in line with international benchmarks.
Minmetals must also maintain or increase production and employment at the Century, Rosebery and Golden Grove mines, pursue growth in the Century and Rosebery mines, reopen Avebury mine, and develop Dugald River mine, subject to economic conditions.
"These undertakings, which are designed to protect around 2,000 Australian jobs, ensure consistency with Australia's national-interest principles and are a condition of my approval under the Foreign Acquisitions and Takeovers Act 1975," the treasurer said.
Separately, nickel miner Albidon Ltd. Thursday said it will go into administration as "the only available means" for the company to continue operating, in order to complete a financing transaction with China's Jinchuan Group Ltd. The Perth-based miner has been in talks with major shareholder Jinchuan since March for financing.
—Elisabeth Behrmann in Sydney contributed to this article.
http://online.wsj.com/article/SB124051509044849157.html

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APC Group pursues mining, energy projects
By JAMES A. LOYOLA
April 24, 2009, 4:28pm
APC Group Inc. will focus on pursuing its mining and energy-related projects this year as it expects demand for products and services to remain poor because of the global crisis.
The firm disclosed to the Philippine Stock Exchange (PSE) yesterday that the dampened demand has resulted in the firm announcing a net loss of P26.2 million for its operations in 2008.
The loss is a big drop from the huge net income in 2007 of P7.24 billion which included a one time gain of P7.15 billion from the reversal of Philcom losses arising from its deconsolidation in APC’s financial statements.
Service fees of the APC’s manpower subsidiary amounted to P311.2 million compared to P283.8 million in 2007. The increase was a result of manpower postings to new clients during the year.
APC said its costs and expenses increased by P19.5 million from P304.5 million in 2007. The increase is attributable to the manpower subsidiary arising from increase in revenues.
The firm registered an impairment loss on change in fair value of available-for-sale financial assets amounted to P15.8 million arising from lower stock market prices due to the global financial crisis.
APC also reported foreign exchange loss amounting to P7.3 million arising from the Company’s dollar payable to COMSAT which was liquidated in late 2008 through a Compromise Agreement.
“The global financial crisis has dampened demand for products and services. As a consequence, world commodities prices have weakened including metals prices (except gold),” APC said adding that the crisis resulted in the tightening of credit.
Because of this, it will focus on the exploration and development of the mining tenement in Misamis Oriental containing potential deposits of chromite, gold and copper while activities in APC’s other mining areas specially those with nickel deposits will be slowed down.
http://mb.com.ph/articles/203517/apc-group-pursues-mining-energy-projects\

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Mining company seeks land

A MINING company that claims to have found bauxite in the Nullamanna region is planning to speak with landholders in the area at a public meeting.
At this stage no landholders have agreed to allow access to their properties.
Volcan Australia Corporation has a licence covering 1,000 square kilometres, and says it has identified economic grade bauxitic lithologies with an alumina content between 35 and 60 per cent.
A press release from Senator John Williams’ office said the most prospective bauxite deposits cover 25 square kilometres on the Nullamanna Dome, and Volcan believe there is excellent potential in the Dinton Vale and Elsmore areas.
Senator Williams’ chief of staff Greg Kachel yesterday said access agreements have been sent to landholders explaining the early stages of exploration.
Mr Kachel said he expected the landholders would be seeking legal advice before committing to anything.
If the deposits appear viable, mining would still be a considerable time off.
One landholder, Rowan Butler, said it was too early to know for sure whether mining would go ahead.
“I’m not too overly concerned at the moment,” Mr Butler said yesterday.
“There are so many variables.”
He said he first learned of the bauxite when Volcan contacted him. While Mr Butler said more landholders were in favour of any potential mining at this stage than against it, he said there was some opposition.
“It’s all pie in the sky at the moment,” he said.
“But I’m interested to see what’s under the ground.”
Senator Williams said: “As part of the consultation process, Volcan representatives will meet the nine landholders, but any others with concerns can contact my office.”
He will meet with senior executives of Volcan to be fully briefed on the project, and at a later stage a public meeting will be held at Nullamanna where landholders will be able to question company representatives and air any concerns they have. Volcan’s website said bauxite deposits up to 20m thick and covering 50km2 have been mapped across the Nullamanna Dome.
“Available alumina contents for the Nullamanna Dome bauxites have been found to be as high as 60 per cent, while reactive silica values have been found to be as low as 2 per cent,” the website said.
http://inverell.yourguide.com.au/news/local/news/general/mining-company-seeks-land/1495439.aspx

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Minerals Development acquire overseas mining right by capital increase on subsidiaries
Friday, 24 Apr 2009
Minerals Development Co Ltd decided to lift China Minerals Group to be the company's directly owned subsidiary with a capital addition of USD 81 million which was directly owned by China National Minerals Co Ltd before.

As learned, the acquisition aims to purchase 100% of chromite exploration right from South African Townlands Company and 5% from Kookfontein Chromite Company. In the meanwhile, Minerals Steel Co Ltd, subordinate to China Minerals Corporation has carried out additional share with Japan Metalone Company to their co-invested Steel Minerals Wuhan Company according to the proportion of the subscribed capitals in a bid to build a medium plate and H-beam processing center. The former has invested CNY 54 million and the latter spend CNY 36 million in this capital increase. Thus, the registration capital of Steel Minerals Wuhan Company has added to CNY 100 million from the CNY 10 million before.

Minerals Development has realize the net profits of CNY 35.54 million in the first three months this year a drop of 92.83%YoY with the ESP hitting at CNY 0.0332. The company is predicted to see a net profit fall of over 50% in the H1 compared with the same period of last year.
http://steelguru.com/news/index/2009/04/24/OTE2MjY%3D/Minerals_Development_acquire_overseas_mining_right_by_capital_increase_on_subsidiaries.html

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Riversdale ups Benga coal mine estimate
April 24, 2009 - 6:44AM
Australian mining firm Riversdale and Indian partner Tata Steel have increased their estimate of coal resources at their Benga mine in Mozambique by 90 per cent.
"Based on the data from recent drilling activities, a coal resource of four billion tonnes has been estimated," Riversdale executive chairman WM O'Keeffe says in a statement.
"This coal resource represents an increase of 90 per cent over the previous resource announced in September 2008."
Riversdale now estimates initial reserves at 273.3 million tonnes - 181.3 million tonnes of proven reserves and 92 million tonnes of probable reserves.
"The increased resource and initial reserve estimates represent a material development for the project and will impact positively on the overall scope of the mine and its potential to develop into a project of global significance," O'Keeffe said on Thursday.
The companies are now awaiting a mining contract from the Mozambican government. O'Keeffe said they expect final approval later this quarter.
Riversdale holds a 65 per cent stake in the Benga mine and Tata Steel 35 per cent. The partners plan to invest $US800 million ($A1.14 billion) to develop the project.
O'Keeffe said the Benga mine would produce 5.3 million tonnes per year initially, eventually ramping up to 20 million tonnes as transportation infrastructure improves.
Mozambique is working to restore a rail line connecting the coalmines in the northwestern Moatize district to the port city of Beira.
The line was made impassible by land mines during the country's 16-year civil war, which ended in 1992.
The World Bank is financing $US104.5 million ($A148.3 million) of the $US200 million ($A284 million) project. Bank official Jose Chembeze said construction should be completed in September, with the line expected to open to full traffic in January.
Mozambique has seen a boom in its mining sector as multinational companies move to tap resources that went untouched during the civil war.
Brazilian mining giant Vale broke ground last month on a $US1.3 billion ($A1.84 billion) mine in Moatize.
http://news.smh.com.au/breaking-news-business/riversdale-ups-benga-coal-mine-estimate-20090424-ah08.html

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Govt seeks investors in mining equipment operations
From Emeka Anuforo, Abuja
THE Federal Government, yesterday, called on investors in the mining industry to take advantage of what it described as 'chronic lack of equipment for mining operations' in Nigeria.
Minister of Mines and Steel Development, Mrs. Diezani Alison-Madueke, who made this call in Abuja, stressed that such companies could engage in sales and/or rentals of the necessary equipment.
Speaking at the opening of the head office of Atlas Copco Group of Companies at the Idu Industrial Estate, Abuja, she said that government had developed plans and strategies geared towards creating a vibrant private sector led minerals ad metals sector.
Represented by the Director, Artisanal and Small Scale Mining, the Minister added: "The Ministry of Mines and Steel development has been repositioned with the creation of new technical departments and the establishment of the sustainable management of the minerals resources, a World Bank assisted project. These were done with a view to developing and increasing investments in the solid mineral sector of the economy.
On the investment by Atlas Copco, she said urged the company to consider setting up a mining machinery assembly plant in view of the potentials that exist in Nigeria's minerals and mining sector.
She congratulated the company for coming into the Nigerian economy and assured he group of a successful investment in Nigeria, "especially against the backdrop of the recent economic mechanisms and reforms put in place in the mining and indeed, other sectors to encourage the development of a robust private-sector led economy.
Speaking at the commissioning of the new office facility, the Country Manager of Atlas Copco, Mr. Murthi Ksr stressed that company manufactures products in more than 40 countries.
He said: "Atlas Copco companies develop and manufactures industrial tools, compressed air equipment, construction and mining equipment, assembly systems, and offer related service and rental. The products are sold and rented under different brands through a worldwide sales and service network reaching 160 countries, half of which are served by wholly or partly owned customer centers. We currently employ over 33, 400 workers worldwide."
http://www.ngrguardiannews.com/business/article03/indexn2_html?pdate=240409&ptitle=Govt%20seeks%20investors%20in%20mining%20equipment%20operations
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Manganese mining protested
Indra Harsaputra and Lutfiana Mahmudah , THE JAKARTA POST , Jember | Fri, 04/24/2009 12:54 PM | East Java
Ulemas from the Nahdlatul Ulama (NU) have requested the Jember regency administration stop the mining of manganese inside a protected forest.
The forest area in question belongs to state forest management firm PT Perhutani and is located in Pace village, Silo district.
The ulemas said that, in addition to causing environmental degradation in the 20-hectare forest, the mining has the potential to cause conflict between villages.
Although Jember Regent Djalal has revoked all mining permits, five companies, guarded by security personnel, continue to operate.
Abdul Qadim, manager of the national forestry and environmental movement at NU's Jember branch, said that CV Wahyu Sejahtera, CV Surya Bhakti Perkasa, CV Tunas Mas, CV Bumi Jaya, and CV Koperasi Sinar Batu Mulia continue to operate after securing recommendations that the revocation of their licenses be postponed from the Jember Regency Legislative Council and the Jember Trade and Industry Agency.
"We have protested the matter to the regent but there has been no response," Qadim told The Jakarta Post.
"The regent said that he would shoot anybody felling trees in the forest but on the other hand he let his subordinates allow the mining."
Qadim added that there are not many trees left in Silo. He said a total of 33,370 hectares of forest in Jember had been illegal logged.
"We object to the mining as it is destroying forests on the slopes of Hyang Argopuro mountains, which are a major source of water," Qadim said.
East Java has plenty of mineral deposits, including an estimated 1.31 million tons of manganese. Jember is a major source of the mineral, which is chiefly used in the production of stainless steel.
http://www.thejakartapost.com/news/2009/04/24/manganese-mining-protested.html

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Other News – India
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Sunita Narain: The future agenda

Unlike the West, we can't afford to pollute first and then clean up - and technology is not the magic solution either
Sunita Narain / New Delhi April 24, 2009, 0:59 IST

India’s environmental movement, like so much else, is about managing contradictions and complexities — between rich and poor; between people and nature.
But the movement in India has one key distinction, which holds the key to our future. The environmental movements of the rich world happened after periods of wealth creation and during their period of waste generation. So, they argued for containment of the waste but did not have the ability to argue for the reinvention of the paradigm of waste generation itself. However, the environmental movement in India has grown in the midst of enormous inequity and poverty. In this environmentalism of the relatively poor, the answers to change are intractable and impossible, unless the question is reinvented.
Just consider the birth and evolution of the green movement. Its inception dates back to the early 1970s with former Indian Prime Minister Indira Gandhi’s famous words at the Stockholm conference on environment that ‘poverty is the biggest polluter’. But in this same period, the women of the Chipko movement in the Himalaya showed that the poor, in fact, cared about their environment. In 1974, years before environment became the fashion, the women of Reni village, in Chamoli district, stopped loggers from cutting their forests. In other words, this movement of the poor women was not a conservation movement per se, but a movement to demand the rights of local communities over their local resources. The women wanted the first right over the trees, which they said were the basis for their daily survival. Their movement explained to the people of India that extractive and exploitative economies were the biggest polluters and not poverty.
This is because in vast parts of rural India, as in vast parts of rural Africa and other regions, poverty is not about lack of cash, but the lack of access to natural resources. Millions of people live within what can be called a biomass-based subsistence economy, where the Gross Nature Product is more important than the Gross National Product. Environmental degradation is not a matter of luxury but is a matter of survival. In these cases, development is not possible without environmental management.
In the environmental movement of the very poor, there are no quick-fix technological solutions that can be suggested to people who are battling for their survival. In this environmentalism, there is only one answer: We will have to change the way we live to reduce our needs and to increase efficiency for every inch of land needed, for every tonne of mineral and every drop of water used. It will call for new arrangements to share benefits with local communities so that they are persuaded to part with their resources for a common development. It will call for new ways to generate growth.
It is also clear that the environmental movement of the relatively rich and affluent is still looking for small answers to big problems. Today, everyone is saying, indeed screaming, that we can ‘deal’ with climate change if we adopt measures such as energy efficiency and some new technologies. The message is simple: Managing climate change will not hurt lifestyles or economic growth: A win-win situation where we will benefit from green technologies and new business.
For instance, biofuels — growing fuel, not food, on land to run the cars of the rich — is one such techno-fix. There has been no discussion on whether biofuels, already competing for land with food crops and raising prices, will indeed reduce emissions when vehicle numbers are increasing. With biofuels under criticism for raising food prices and depleting water resources, the next-generation technical solution proposed is on the cards — hybrid cars. This is when all data shows that these are small parts of the big change we need. The transition to a low-carbon economy is not just about technology, but also about re-distributing economic and ecological space. The change will hurt; indeed, variable weather events that are destroying crops are already hurting the most vulnerable and powerless.
In other words, the time for small solutions to big problems is over. Take water. India cannot afford to first become water-wasteful and then become water-efficient. It cannot afford to pollute and then clean up. It will have to invent the water-management paradigm — in India’s case, it must borrow from past traditions by building millions of local and decentralised water-management structures to augment its resources. It must practice rainwater harvesting as doing this will build its water reserves. At the same time, it must borrow from the future by investing in water-efficient technologies for recycling and reuse. It must, for instance, reinvent the flush system, which is both capital-and material-intensive and uses water as its carrier and discharge pathway.
The environmentalism of the poor is teaching us our most critical futures lesson: Reinvent growth so that it can be afforded by all. And it will not cost us the Earth. Are we listening? Are we learning?
http://www.business-standard.com/india/news/sunita-narainfuture-agenda/356075/

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Include indigenous rights in global climate change policies, summit told
Last Updated: Thursday, April 23, 2009 | 10:13 AM CT
Any global agreement on climate change has to include the rights of Aboriginal Peoples, delegates said Wednesday at an international climate change summit in Anchorage, Alaska.
The connection between the rights of indigenous peoples and climate change took centre stage Wednesday at the Indigenous Peoples' Global Summit on Climate Change, hosted by the Inuit Circumpolar Council.
"Our indigenous people are saying that the effects of climate change right now [are] affecting our right to practise our culture," Tom Goldtooth, executive director of the Indigenous Environmental Network, told CBC News on Wednesday.
"It's affecting our right to live in a sustainable manner, and to have access to our traditional food systems."
Since the summit began Monday, about 500 delegates have been sharing their experiences with how climate change has affected their communities, as well as talking about indigenous rights, such as the rights to land, clean water and traditional native foods.
Such rights are guaranteed under the United Nations Declaration on the Rights of Indigenous Peoples, and Goldtooth said any deal on climate change has to be directly tied to those rights.
"Our strategy is to try to get the United Nations Framework Convention on Climate Change to adopt the Declaration on the Rights of Indigenous People within its body," Goldtooth said.
John Crump, polar issues co-ordinator with the United Nations Environmental Programme, said indigenous rights will be recognized in any climate change protocols adopted by the United Nations.
But specifics on how that would work have yet to be determined, Crump added.
"This process will continue, and the need to recognize indigenous rights in climate change negotiations and in how the burden of climate change impacts are distributed, that's a long-term project," he said.
By the time the five-day summit wraps up Friday, summit delegates are expected to draft a formal declaration and action plan on climate change, which will be presented to the UN Framework Convention on Climate Change in Copenhagen, Denmark, in December.
http://www.cbc.ca/canada/north/story/2009/04/23/climate-rights.html

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IMF, World Bank want more action to combat crisis
24 Apr 2009, 0426 hrs IST, AGENCIES

WASHINGTON: The heads of the International Monetary Fund and World Bank pledged new resources Thursday to fight the worst global downturn since

the Great Depression
of the 1930s, while warning that the crisis is far from over.

Dominique Strauss-Kahn, managing director of the International Monetary Fund, said US and European leaders need to fulfill pledges they made during a summit in London earlier this month to clean up their banking systems by removing distressed assets from banks' balance sheets. With the right policies, the world economy could recover in the first half of 2010, he said.

``We still have long months of economic distress in front of us,'' Strauss-Kahn said.

Strauss-Kahn said there ``may be need for more'' stimulus spending by individual countries in 2010. The IMF's board agreed to double the borrowing limits for 78 of the poorest countries in an effort to meet the needs of developing nations harmed by the downturn.

Also Thursday, World Bank president Robert Zoellick said it will provide $45 billion over the next three years to support road building and other infrastructure projects in poor nations.

The comments came as finance officials from around the world were gathering in Washington for three days of discussions beginning Friday that seek to resolve differences over the best approach to take to combat the current downturn.

The discussions are set to begin Friday with meetings of finance ministers from the Group of Seven wealthy nations _ the U.S., Japan, Germany, France, Britain, Italy and Canada. Those will be followed by talks over dinner that night among the Group of 20 nations, which adds major emerging powers such as China, Russia, India and Brazil to the mix.

Treasury Secretary Timothy Geithner will emphasize that repairing the U.S. banking system is a ``top priority,'' a senior Treasury official said Thursday. An ``important component'' of that effort are the ``stress tests'' that regulators are currently conducting on 19 of the nation's largest banks, the official said.

The tests measure how the banks will fare under a severe recession and are intended to determine which institutions need more capital. The additional money, if needed, could come from the private sector or the government. The Treasury Department is expected to release the framework for the stress tests Friday.

Carmen Reinhart, an economics professor at the University of Maryland and a former IMF official, said ``there is a lot of foot-dragging and in some cases denial ... of just how systemic'' the problem of bad assets is in the U.S. and Europe.

Reinhart criticized U.S. regulators for recently relaxing accounting rules to make it easier for banks to avoid marking down bad assets. That's a ``delaying tactic'' intended to enable the banks to carry the assets for longer, she said.

The $45 billion in World Bank money
is designed to support job creation and ``help jump start a recovery from the crisis,'' he said. He also said the U.S. and Europe should ``reconsider old prerogatives'' and allow developing countries a greater voice in management of the World Bank.

http://economictimes.indiatimes.com/IMF-World-Bank-want-more-action-to-combat-crisis/articleshow/4442324.cms


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Colombia's support for UN declaration on indigenous people welcomed

24 Apr 2009 10:51:53 GMT
Reuters and AlertNet are not responsible for the content of this article or for any external internet sites. The views expressed are the author's alone.
UNHCR welcomes Colombia's decision to support to the United Nations Declaration on the Rights of Indigenous People as a significant step forward in efforts to protect indigenous groups in the context of forced displacement.

While not legally binding, the Declaration affirms a State's commitment to abide to its spirit and respect its principles. It outlines a series of human, cultural and economic rights for indigenous people worldwide. It contains a number of articles of importance to help protect and prevent the forced displacement of indigenous groups during armed conflict.

There are about 1 million indigenous people in Colombia, divided between more than 90 different groups and making up around 2.5 percent of a total national population of some 43 million people. Partly because of their geographical location – many live in remote and conflict-ridden parts of the country – and partly as a result of historical and cultural factors, they have been suffering disproportionately from the effects of Colombia's internal armed conflict, including forced displacement.

Forced displacement is especially hard on indigenous people, because of their special attachment to the land, a link that goes beyond economic reliance to forge the basis of their historical and cultural identity. In the worst cases, being uprooted can lead to a group's disappearance.

Faced with this concern, Colombia's Constitutional Court ordered earlier this year (Ruling 004 of January) that urgent measures should be taken to protect more than 30 indigenous groups around the country. The order gave all responsible State entities a June deadline to take, and account for, all appropriate action.

UNHCR, which has offices throughout Colombia, has various programmes aimed at protecting indigenous people, including regular monitoring and advocacy on behalf of those facing threats and mass displacement; support for indigenous organisations aimed at maintaining unity among displaced communities; rights training; and support to national and local authorities responsible for protecting and assisting indigenous people.

http://www.alertnet.org/thenews/newsdesk/UNHCR/7ae94ac129f1c5d191a0eb3160ce57c6.htm

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The truth about climate change
*JOHN THEODORE HOUGHTON
EXETER: Many people ask how sure we are about the science of climate change. The most definitive examination of the scientific evidence is to be found in the work of the Intergovernmental Panel on Climate Change (IPCC) and its last major report published in 2007. I had the privilege of being chairman or co-chairman of the Panel's scientific assessments from 1988 to 2002.
Many hundreds of scientists from different countries were involved as contributors and reviewers for these reports, which are probably the most comprehensive and thorough international assessments on any scientific subject ever carried out. In June 1995, just before the G-8 summit in Scotland, the Academies of Science of the world's 11 largest economies (the G-8 plus India, China, and Brazil) issued a statement endorsing the IPCC's conclusions and urging world governments to take urgent action to address climate change. The world's top scientists could not have spoken more strongly.
Unfortunately, strong vested interests have spent millions of dollars on spreading misinformation about climate change. First, they tried to deny the existence of any scientific evidence for global warming. More recently, they have largely accepted the fact of anthropogenic (man-made) climate change but argue that its impacts will not be great, that we can "wait and see," and that in any case we can always fix the problem if it turns out to be substantial.
The scientific evidence does not support such arguments. Urgent action is needed both to adapt to the climate change that is inevitable and to reduce emissions of greenhouse gases, especially CO2, to prevent further damage as far as possible.
At the Earth Summit in Rio de Janeiro in 1992, the world's nations signed up to the Framework Convention on Climate Change (FCCC), the objective of which is "to stabilize the concentration of greenhouse gases in the atmosphere at a level that does not cause dangerous interference with the climate system..., that allows ecosystems to adapt naturally to climate change, that ensures food production is not threatened, and that enables economic development to proceed in a sustainable manner." Such stabilisation would also eventually stop further climate change.
It is now recognised that widespread damage due, for instance, to sea level rise and more frequent and intense heat waves, floods and droughts, will occur even for small increases of global average temperature. Therefore it is necessary that very strong efforts be made to hold the average global temperature rise below 2¼ Celsius relative to its preindustrial level.
If we are to have a good chance of achieving that target, the concentration of CO2 must not be allowed to exceed 450 parts per million (it is now nearly 390 ppm). This implies that before 2050 global emissions of CO2 must be reduced to below 50 percent of the 1990 level (they are currently 15 percent above that level), and that average emissions in developed countries must be reduced by at least 80 percent of the 1990 level. The United Kingdom has already committed itself to a binding target to reduce emissions by that amount, and President Barack Obama has expressed intention that the United States should also set that target.
One clear requirement is that tropical deforestation, which is responsible for 20 percent of greenhouse gas emissions, be halted within the next decade or two. Regarding emissions from the burning of fossil fuels, the International Energy Agency (IEA) in its "Energy Technology Perspectives" has set out in detail the technologies and actions that are needed in different countries and sectors to meet these targets.
For the short term, the IEA points out that very strong and determined action will be necessary to ensure that global CO2 emissions stop rising (the current increase is more than 3 percent per year), reach a peak by about 2015, and then decline steadily toward the 2050 target. The IEA also points out that the targets can be achieved without unacceptable economic damage. In fact, the IEA lists many benefits that will be realised if its recommendations are followed.
What is required now is recognition that anthropogenic climate change will severely affect our children, grandchildren, the world's ecosystems, and the world's poorer communities, and that the severity of the impact can be substantially alleviated by taking action now.
*John Theodore Houghton, a former professor of atmospheric physics at the University of Oxford, and founder of the Hadley Centre for Climate Prediction and Research, was the co-chair of the IPCC's scientific assessment working group and lead editor of its first three reports. Copyright: Project Syndicate, 2009.
http://www.mmegi.bw/index.php?sid=2&aid=10&dir=2009/April/Thursday23
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