Mining – India 1
1. Tata Steel may re-bid for Liberian mine 1
2. ADD Sterlite Industries, says India Infoline 2
3. 30 coal based power plants in India at critical coal stock levels 3
4. Orissa keeps more iron ore fields for POSCO 3
5. India copper trades higher tracking Shanghai gains 4
6. INDIA'S SC ISSUES NOTICE TO CHHATTISGARH GOVT ON BALCO PLEA 5
Mining – International 6
7. Mining carnage revealed 6
8. Chinese urbanisation to drive demand for zircon 6
9. Vietnam authorizes inspection of bauxite projects 7
10. China's iron ore stocks down slightly on week 8
11. Chinalco lures Rio Tintos shareholders with tales of good corporate behaviour 9
Other News 11
12. Maoists hold industry at gunpoint 11
13. State govt sleeps on eco-zones proposal 13
14. Throne Of Blood: Maoists' threat in Orissa 14
15. World's largest freshwater lake under dire threat from climate change 16
16. 'Bellary ministers supported by Congress, BJP' 17
17. Industries Push for Free Pollution Credits 18
Mining – India
Tata Steel may re-bid for Liberian mine
4 May 2009, 0000 hrs IST, MV Ramsurya & Kausik Datta, ET Bureau
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MUMBAI: Tata Steel may accept a Liberian government’s invitation and re-bid for a $1.6-billion iron ore mine from which it was initially barred,
and will undertake a fresh exploration process.
The company is keen on the Western Cluster project, which has estimated reserves of 3.4-billion tonne, and wants to pre-empt global majors such as ArcelorMittal and Russia’s Severstal, said a Tata official who is involved in the Liberian bid. “We’ll first start the exploration process, take a look at the reserves, and then take a final call on our bid,” he told ET.
Liberia has the world’s fifth-largest iron ore reserves, but existing estimates on mine reserves are considered inaccurate because of unstable governments and ad hoc mining policies. With a fresh exploration of reserves, quite unusual in an existing mine, Tata Steel wants to get a first-hand idea of things, said the official.
Last year, Tata Steel was barred from bidding for the Western Cluster on the ground of allegedly violating norms. The Liberian government later retracted its allegations and allowed Tata Steel to re-bid for the project.
Tata Steel has already formed a team to study deposits. “Although, the Liberian government has extended the deadline for submission of bids to May 15, since Tata Steel had been unfairly barred, we are sure the deadline would be extended again,” said the person connected with the development.
The Western Cluster project consists of three deposits and two idled mines, and accounts for a major part of Liberia’s total iron ore reserves estimated at 3.4 billion tonne. Tata Steel considers the project as central for its plan for Corus.
Over the years, Tata’s rivals ArcelorMittal and Russia’s Severstal have been steadily increasing their hold in Liberia. Severstal recently bought a controlling stake in a mining entity there, while ArcelorMittal already owns mines in the African country and has also invested about $1.5 billion in Liberia.
ArcelorMittal’s mines in Liberia have estimated reserves of 500 million tonne. Global majors, including a consortium led by China’s top private steelmaker Shagang Group, Brazil’s CSN, Japanese steel companies, trading house Itochu and Essar Steel, have expressed their interest in the Western Cluster project.
Iron ore has been in tight supply ever since a surging demand for steel made existing global players expand their capacities. While a three-year commodities boom put most mines out of reach, the current recession has more than halved ore prices, prompting mine sellers to scale down valuations.
Spot prices of iron ore are currently trading at $63 per tonne, which is much lower than the February high of $84. Till mid- last year, iron ore prices were ruling at more than double the current levels, before crashing due to liquidity constraints.
http://economictimes.indiatimes.com/News-by-Industry/Tata-Steel-may-re-bid-for-Liberian-mine/articleshow/4479887.cms
ADD Sterlite Industries, says India Infoline
4 May 2009, 1335 hrs IST, ET Bureau
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MUMBAI: India Infoline in the results update note on Sterlite Industries has retained ‘ADD’ rating on the
stock.
“Sterlite Industries reported a strong 4Q operating performance, with EBIDTA at Rs 8.4 billion (up 48% QoQ), significantly beating our estimate. The positive surprise came from copper and zinc businesses, while aluminium slipped into losses. In the near term, Sterlite’s earnings may remain under pressure, due to weak LME prices. In the medium term, however, expansion projects in power, zinc, lead and aluminium will add significant value. Sterlite’s production cost is expected to fall to US $500/tonne for zinc and US $900/tonne for aluminium, which will put it in lowest decile globally. Commissioning of the power plant will lend stability to reported earnings. Commissioning of the bauxite mining project at Niyamgiri hills and allocation of coal linkages for the power plant are key triggers. We retain ADD,” the brokerage said.
http://economictimes.indiatimes.com/articleshow/4481925.cms
30 coal based power plants in India at critical coal stock levels
Monday, 04 May 2009
According to CEA data, shortage of coal continues to play havoc with thermal power companies as 30 coal based plants have stocks that will meet their requirements for less than seven days.
The 30 plants include state owned NTPC's 1,840 MW Kahalgaon thermal power station in Bihar.
As per report the Kahalgoan plant's stock is sufficient for less than three days due to short supply from Eastern Coalfields.
The company's 1,600 MW Farakka thermal power station in West Bengal has coal stocks for 10 days. The minimum fuel storage requirement of a thermal power plant is 22 days.
Both these plants get coal from the Raj Mahal coal mines, with a capacity of 10.5 million tonnes at present and there is a proposal to expand this capacity to 17 million tonnes. And NTPC is only able to procure 6 to 7 rakes (nearly 3,800 tonnes) of coal through the Railways.
A senior official said that "We are trying to see how it (coal shortage) can be met. Exploring options to meet the requirement of these NTPC power plants.”
The fuel is supplied to these plants through the MGR system by ECL. This system cannot take more than 11 rakes a day.
(Sourced from Business)
http://steelguru.com/news/index/2009/05/04/OTMwMDE%3D/30_coal_based_power_plants_in_India_at_critical_coal_stock_levels.html
Orissa keeps more iron ore fields for POSCO
Monday, 04 May 2009
Official sources said that besides recommending prospecting licence over 25 square kilometre of iron ore field at Khandadhar in favour of POSCO India, the Orissa government has decided to keep another 35 square kilometre of reserve for the future need of the South Korean steel major.
The report said that as regards to the additional area of approximately 35 square kilometre available in Khandadhar iron ore reserve in Sundergarh district, the state government decided to keep it with its own reach so that it could meet the commitment of supplying 600 million ton of iron ore to the POSCO India a recent order signed by Mr Naveen Patnaik CM of Orissa.
South Korean giant for its proposed 12 million tonne per annum capacity Greenfield project near Paradip had recommended only 2500 acre of iron ore field for prospecting licence in January this year.
Though earlier, the state government had recommended 6,204.325 hectare of iron ore field for PL in favour of POSCO in December, 2006, it preferred to squeeze the area on its latest recommendation to the Central government.
The state government's recommendation made in 2006, was however, rejected by the Centre in the wake of a litigation in the Orissa High Court.
Mr Pradip Amat Steel and Mines Minister told PTI that the state government which finally made a fresh recommendation in favour of POSCO in January 2009, decided to allot less area in comparison to the previous recommendation.
(Sourced from orissadiary.com)
http://steelguru.com/news/index/2009/05/04/OTI4OTE%3D/Orissa_keeps_more_iron_ore_fields_for_POSCO.html
India copper trades higher tracking Shanghai gains
Mon May 4, 2009 10:38am IST
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-Text+MUMBAI, May 4 (Reuters) - India's copper futures traded higher on Monday, tracking strong cues in Shanghai following positive economic data from the United States and China, analysts said.
However, a strong rupee limited the gains. The Indian rupee rose as gains in regional stock markets may attract more capital inflows, a key driver for the local unit. See [ID:nBOM40671]
The most traded June contract MCCM9 on the Multi Commodity Exchange was 1.07 percent higher at 236.75 rupees per kg at 10:30 a.m..
Copper prices were boosted by an improvement in U.S. consumer confidence in April, an expansion in Chinese manufacturing and another hefty outflow of metal from LME warehouses.
LME copper stocks fell 7,075 tonnes to 398,700 tonnes, data on Friday showed. Cancelled warrants were 83,100 tonnes, about 20 percent of the total stock.
"Copper may test previous highs of 241/243 (rupees) on the back of strong and Chinese and U.S. data," said Kunal Shah, an analyst with Nirmal Bang Commodities.
Copper may trade in the range of 229-238 rupees, said Abhishek Chauhan, an analyst with Angel Commodities.
June zinc futures MZIK9 traded 1.20 percent higher at 75.75 rupees per kg, while June lead MLDK9 was 1.92 percent higher at 71.55 rupees per kg at 10:31 a.m..
(Reporting by Siddesh Mayenkar; Editing by Sunil Nair)
http://in.reuters.com/article/domesticNews/idINBOM48851720090504
INDIA'S SC ISSUES NOTICE TO CHHATTISGARH GOVT ON BALCO PLEA
Mon. May 04, 2009; Posted: 03:43 AM
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NEW DELHI, May 04, 2009 (AsiaPulse via COMTEX) -- VDNRF | Quote | Chart | News | PowerRating -- The Indian Supreme Court has issued notices to the Chhattisgarh Government and others on a plea filed by Bharat Aluminium Company Ltd (Balco) seeking nod to expand its existing plant in Korba in the state.
Sterlite Industries, flagship company of NRI Anil Aggarwal-led metals and mining major Vedanta Resources, owns 51 per cent equity stake in aluminium maker Balco.
A special bench headed by Chief Justice K G Balakrishnan has issued notice to the state government and the Central Empowered Committee attached to the Ministry of Environment and Forests.
Balco had sought permission of the apex court for breaking 170 acres of forest land for expansion of its project.
Balco counsel Anil Dewan said the company was planning to set up an additional capacity of 0.65 million tonnes per annum smelter plant in its existing facility at a cost of about Rs 80 billion (US$1.6 billion).
He said that Balco was willing to pay the Net Present Value (compensation) to the government for converting the forest land into commercial land.
But Amicus Curie Harish Salve alleged that the company was in illegal occupation of over 1,800 acres of forest land in Korba.
(PTI)
http://www.tradingmarkets.com/.site/news/Stock%20News/2304752/
Mining – International
Mining carnage revealed
May 04, 2009 03:35pm
A NEW report has revealed more than half the value of Australia's mid-tier mining companies was wiped out within six months last year.
The PricewaterhouseCoopers Aussie Mine report released today that after a meteoric rise, the second half of 2008 saw a dramatic fall in the sector.
As of June 30 last year the market capitalisation for the mid-tier 50 was at $67.5 billion, but just six months later the figure had plummeted to $31.2 billion.
The mid-tier 50 group are the 50 largest mining companies listed on the Australian stock market with a market capitalisation of less than $5 billion.
"Cmmodity prices plummeted, demand that seemed so inevitable six months prior simply vanished overnight, and mining companies were left reeling from this sudden change in external economic factors,'' the report said.
"Operations and expansion plans that were commercially viable in the first six months of the year were unfeasible by the end of the year.
"Locally, this loss of shareholder value has hit many very hard, however, cashed-up foreign investors view the current predicament as a period of great opportunity,'' it said.
Tim Goldsmith from PricewaterhouseCoopers said the carnage to mining stocks was a turning point for the industry.
"For the immediate future, it will be a return to traditional mine management,'' Mr Goldsmith said in a statement.
"There will be a focus on controlling costs and disciplined spending to preserve value and conserve cash,'' he said.
The report said copper and nickel spot prices fell 58 per cent and 59 per cent respectively during 2008.
http://www.news.com.au/heraldsun/story/0,21985,25427379-664,00.html
Chinese urbanisation to drive demand for zircon
JOHANNESBURG (miningweekly.com) – Global shortages and a strong demand upside in China should benefit the future performance of South Australia’s new Mindarie mineral sands mine, as it ramped up production.
ASX-listed Australia Zircon nonexecutive director Michael Kiernan said that the future demand would be influenced by the surging urbanisation of China and India.
“China accounted for more than 30%, or about 410 000 t, of the 2008 total global consumption of zircon of 1,35-million tons,” Kiernan said at the first day of Paydirt 2009 South Australian Resources & Energy Investment Conference.
“We are now seeing China average about 15% annual growth in zircon imports in recent years as it only has consumption of 0,2 kg per capita versus 0,8 kg for European consumption so there is substantial room for demand driven growth. This will be particularly so in China where only 45% of that country’s population lives in urban areas, but is expected to move to 70% urbanisation by just 2035.”
Kiernan said that future supply demand dynamics for zircon would be further exacerbated by slowing output in Indonesia and power shortages in Africa, at a time when world production for this calendar year was expected to fall below that of 2008.
“This can only be expected to drive price pressures upwards so we see zircon as very much a growth mineral,” Kiernan said.
As a result, Australian Zircon’s wholly-owned new Mindarie mineral sands mine was ramping up production.
It has targeted a throughput rate of 35 000 t/y by next month from a rate of between 5 000 t and 7 000 t on an annualised basis from mine start-up last year.
“Our ramp-up is proving successful – doubling output between October and December last year alone and we are continuing to enhance it - adding additional spirals, installing a larger mobile slurry unit to improve capacity and reliability, and are transitioning from owner operator to contract mining to stabilise costs.”
Kiernan noted that this was critical as 75% of the Mindarie revenue was derived from zircon, in addition to rutile and ilmenite outputs.
He added that the company also expected the improvements to drive down cash costs from around $630/t projected for 2009 to near $550/t next year.
Mindarie has a 100% offtake agreement with Australian-based DCM DECOmetal, which holds a 72% interest in Australian Zircon.
The mine has an estimated life-of-mine of 11 years with a 176-million ton mineral resources inventory at 3,2% total heavy minerals, delivering an ore reserve of 58,1-million tons at 4,3% total heavy minerals.
http://www.miningweekly.com/article/chinese-urbanisation-to-drive-demand-for-zircon-2009-05-04
Vietnam authorizes inspection of bauxite projects
Posted : Mon, 04 May 2009 10:36:17 GMT
Author : DPA
Category : Asia (World)
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Hanoi - The Vietnamese government will send officials to inspect controversial bauxite projects in the Central Highlands from May 7. The information gathered will be reported at the next meeting of the legislative National Assembly (NA), which opens May 20, a government official said Monday.
"This inspection will focus on assessing the environmental impact so as to then work out what measures should be taken to continue it," said Nguyen Xuan Cuong, Deputy Minister of the Ministry of Natural Resources and the Environment.
Prime Minister Nguyen Tan Dung's last week ordered a complete review of bauxite mining and smelting projects in the Central Highlands. The Communist Party Politburo had called for a review of all such projects on April 16 statement.
Cuong said his ministry had approved the report made by the investor, the state-owned Vietnam National Coal and Mineral Industries Group (VINACOMIN), but now needs an inspection to make sure the factory, which will be put into operation by the end of 2010, will not cause damage to the environment.
"We will inspect things and report back in an objective manner. We are not under any pressure from the government, or anyone else, to distort the report."
However, some are sceptical of the proposed inspection.
"In other countries, NGOs (non-governmental organizations) are assigned to perform these inspections, as results will be more objective," said Dang Hung Vo, the former director of the Ministry of Natural Resources and the Environment.
Vo said he did not support the bauxite projects as plans had not been considered carefully.
"In a country which has a long-term vision, people will conserve natural resources for future generations," he said.
Critics say that geological factors make it hard to contain waste in the Central Highlands, and worry that pollution will affect the coffee and cacao plants, as well as damage wildlife and the social fabric of indigenous ethnic minorities. Vietnam is the second-largest exporter of coffee in the world, after Brazil.
Even war hero General Vo Nguyen Giap, who defeated the French and the Americans, penned an article condemning the project, which was published in state media in January.
Criticism became even stronger after local media reported that hundreds of unskilled Chinese labourers, used by the Chinese mining company Chalco, were working on construction sites in bauxite projects.
In response to public anger, the Politburo has asked VINACOMIN to employ local workers only.
http://www.earthtimes.org/articles/show/267255,vietnam-authorizes-inspection-of-bauxite-projects.html
China's iron ore stocks down slightly on week
Mon May 4, 2009 7:08am BST
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SHANGHAI, May 4 (Reuters) - Iron ore stocks at China's major
ports slid marginally to 74.52 million tonnes in the week to May
1, Chinica Shipbrokers Ltd said in a report, but massive imports
continued to choke two of the country's largest hubs.
Iron stocks at China's two largest iron ore ports, based in
the eastern province of Shandong, have been around or above their
stock capacities for the past months, despite stocks falling by
300,000 tonnes in Rizhao.
China's iron ore appetite has been boosted in the past
several years, as the world's largest steel making country saw
rampant growth in capacity fuelled by an economic boom that ran
out of steam.
China's Shougang Group, parent of Shougang Iron and Steel
000959.SZ and China's sixth-largest steel maker, will open its
new steel mill, which has a design capacity of 4.85 million
tonnes a year, in late May.
Late last month, Angang Steel Co Ltd 000898.SZ, another
flagship mill in China, started production in a new blast furnace
that will add more than 3 million tonnes of pig iron ore
production to the company.
The country's central government vowed on Monday to further
downsize its steel capacities as massive oversupply raised
challenges during the ongoing global financial crisis that has
slashed demand for industrial products. [ID:nPEK45683]
Here is a table of iron ore stocks as of May 1:
STOCKS CHANGE ON WEEK
MLN TONNES TONNES PCT CHANGE
MAY 1 74.52 -171,000 -0.2
APRIL 24 74.69 704,000 1
APRIL 17 73.98 1,534,000 2
APRIL 10 72.45 -100,000 -0.1
APRIL 3 72.55 1,033,000 1
MARCH 27 71.52 1,980,000 3
MARCH 20 69.54 1,053,000 2
MARCH 13 64.52 1,994,000 3
MARCH 6 62.53 3,397,000 6
FEB 27 59.13 827,000 1
FEB 19 58.30 174,000 0.3
FEB 13 58.13 -2,028,000 -3
FEB 6 60.16 210,000 0.4
JAN 23 59.95 -1,214,000 -2
JAN 16 61.16 -648,000 -1
JAN 9 61.81 -812,000 -1
DEC 26 62.62 310,000 0.5
(Reporting by Alfred Cang and Jacqueline Wong)
http://uk.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUKSHA4837320090504
Chinalco lures Rio Tintos shareholders with tales of good corporate behaviour
BY JONATHAN MANTHORPE, VANCOUVER SUNMAY 4, 2009 2:05 AM
With a mixture of blandishments and threats, the Chinese state-owned metals group Chinalco is trying to woo reluctant shareholders of Anglo-Australian Rio Tinto to accept a $20-billion fundraising deal.
It is telling the Rio shareholders that China and its companies are really good corporate and international citizens. But China is also saying that if shareholders and the Canberra government reject the advances, don't expect to stay friends, even though China is Australia's second largest export market.
As evidence of its trustworthiness and gallantry, Chinalco is tabling what it says was its upright and honourable behaviour over a strange incident in the mineral-rich west African nation of Guinea, one the continent's poorest and most corrupt countries.
Chinalco says it rejected an offer last year by Guinea's then dictator Lansana Conte to hand over to the Chinese company Rio's massive Simandou iron ore tenement in which the Anglo-Australian company had already invested $400 million.
"Chinalco said no -- it would not have been professional," Wang Wenfu, head of the Chinese company's overseas acquisition team told Australian newspapers last week.
Whether Chinalco's protestations of good citizenship -- accompanied by the threat of abiding ill-will if the relationship is not consummated -- are enough to unclog the stalled Rio investment talks is far from clear.
Negotiations for the deal, which would allow Rio to pay over the next two years $19 billion in debt acquired in an ill-advised 2007 $39-billion purchase of Alcan, have been bumbling along for over two months with the outcome getting increasingly uncertain.
A summer vote on the Chinalco injection of cash-for-mines as well as an 18-per-cent stake in Rio is likely since many shareholders feel their rights are being trampled. They believe their future interests are unsure if Beijing becomes the dominant partner.
Meanwhile, Australian Finance Minister Wayne Swan, master of the sixth most restrictive foreign investment regime after China, India, Russia, Iceland and Mexico, has heads turning.
Last month he first blocked and then imposed tight restrictions on the purchase of debt-stressed OZ Minerals by another Chinese state-owned company, Minmetals.
It's unlikely Swan would take the same approach to the Rio Tinto plan because it's not a full takeover by the Chinese company as the OZ Minerals deal is. And it is unlikely in these uncertain times that Swan would want to anger Australia's second-largest export customer. But no one is quite sure at this point.
Meanwhile rebounds in the resource markets, which have seen copper prices, for example, gain more than 38 per cent this year, have raised the question of whether Rio Tinto needs to grab the $20 billion immediately. Why couldn't it complete the $13-billion sale of assets to Chinalco, but turn away from selling the close to $6 billion in bonds that is at the heart of shareholder unhappiness?
The word in Beijing is that after several thwarted bids by Chinese companies, such as the 2005 failed attempt by China National Oil Corporation to buy Unocal of California in the face of Congressional suspicion, a lot of prestige is being gambled on the Rio Tinto deal. There are even reports that the progress of the Chinalco-Rio Tinto investment is reviewed every week by "the highest level of the Politburo."
So the story about the Guinea iron ore deposit has strategic purpose, and more than for just the Rio Tinto deal. It is also telling the world, which has viewed with some alarm China's unfettered rush to grab African resources, that Chinese companies have learned from the experience of dealing with Africa's rapacious despots and are no longer push-overs.
Despite having the world's third largest reserves of bauxite, used for making aluminum, worth about $500 billion even at current depressed prices, and vast deposits of iron ore, diamonds and gold, Guinea's people are among the poorest in the world. They live on just over a dollar a day.
China, like other countries, brought gifts to the capital, Conakry, in the hope of rewards. Beijing has constructed the national assembly building, a sports stadium that can accommodate 50,000 people, and has trained the army's special forces.
So president Conte turned to Chinalco last year when he became unhappy with Rio Tinto's plans for the Simandou iron ore mine from which the company expected to extract at least 70 million tonnes of ore and perhaps as much as 170 million tonnes a year.
What troubled Conte, apparently, was Rio's plans to ship ore to an existing port in neighbouring Liberia rather than building a railway to a new port on the Guinea coast.
According to Chinalco's Wang, Conte offered to hand over the Rio tenement to the Chinese company if Chinalco would build and use the necessary transport infrastructure in Guinea.
But Chinalco said no, according to Wang and then the whole situation went screwy last December when Conte died. How and why that happened remains unclear, but Capt. Moussa Dadis Camara sprung to the surface as the new self-appointed president.
Dadis bills himself as the great corruption fighter and has taken to holding negotiations with international mining companies live on television.
Before he died, ex-president Conte revoked Rio Tinto's license on the northern part of the Simandou block and awarded it to BSG Resources Mining and Metals controlled by controversial Israeli diamond millionaire Benny Steinmetz.
Rio Tinto hoped that the death of Conte would negate this deal and that new president Dadis would return the northern half of the Simandou license. But so far, no such luck
jmanthorpe@vancouversun.com
© Copyright (c) The Vancouver Sun
http://www.vancouversun.com/business/Chinalco+lures+Tintos+shareholders+with+tales+good+corporate+behaviour/1561252/story.html
Other News
Maoists hold industry at gunpoint
4 May 2009, 1343 hrs IST, ET Bureau
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To them, corporates are evil, period! Even the country’s largest aluminium maker and Orissa’s pride, Nalco is seen as an MNC that is out to
exploit the state’s mineral reserves for the benefit of the rich.
And to prove this, they managed to effortlessly seize Nalco’s famed Damanjodi bauxite mine on April 12 night for eight long hours. The ease with which the Maoists staged an operation of this magnitude — and at a time when security has been tightened for the general elections — has sent shockwaves across India Inc and driven home yet again that it is the writ of the Maoists, and not the government’s, that runs in this part of the country.
In a written statement in Telugu (a copy of which is with ET) issued on Thursday, the Andhra Orissa Boarder Special Zonal Committee, state military commission of CPI (Maoist) has said: "This is just the beginning and other plants coming up should take note of the raid on Nalco. We will continue such raids. We are opposed to the displacement of tribals by the government. We extend our cooperation to the people of Kashipur, Kalinga Nagar, Singur, the entire eastern Coastal Corridor covering bauxite mining and processing plants proposed in the Eastern Ghats.
"In the (Nalco) operation, we lost 4 members, 3 from Dantewada and one from AP. On the other side, they lost 11 constables while 9 others sustained serious injuries. We seized sophisticated weaponry and two tons of explosive material. While the war was continuing, some constables surrendered before us. On purely humanitarian grounds, we let them off. This proves our courageous fight with the armed constabulary," the statement added.
At the 9th Congress in January-February 2007, the Maoists had asked all "forest dwellers to resist till the end, the massive displacement taking place and to protect their land and forests from robbers and looters."
Small wonder then that after years of low intensity warfare, even Prime Minister Manmohan Singh recognises them as the "single biggest internal security challenge." Emerging stronger in Orissa, Maoists have now started targeting top corporates, which together have submitted investment proposals of a whopping Rs 6 lakh crore. A few large ventures on the cards include Posco’s 12 million tonnes Paradip Steel Plant, ArcelorMittal’s 12 million tonne steel plant in Keonjhar, Tata Steel’s six million tonne steel project at Kalinga Nagar, as well as other mining and large enterprises.
Maoists maintain that government policies will lead to further marginalisation of tribals and forest dwellers in the Orissa and it is a well-known fact that industrialisation on this scale will inevitably lead to massive displacement of resident population in those areas.
Guru Mohanty, senior lawyer and Peoples’ Union of Civil Liberties secretary who had volunteered to hold talks with Maoists said : "When the central government speaks of Maoists obstructing development such as in tribal areas, it means that Maoists’ presence obstructs corporate exploitation of minerals, forests, water and land resources of adivasis. Corporations come with capital intensive, low job creating investments, which entail import of skilled labour from outside and token employment for locals as members of an unskilled low wage labour force."
Incidentally, Mohanty has been closely monitoring resistance movements in the state right from the days of Baliapal, the Balco agitation to recent ones against displacement in Kalinga Nagar, Kashipur and Jagatsinghpur.
"People are unwilling to give up their land to MNCs as they have seen their brothers and sisters turn to begging or pulling rickshaws in neighbouring states after handing over their land to industries that had come up earlier in the region," he said.
Maoists had infiltrated even in the area where the Posco investment is due to come up. Undeterred by what is touted as the largest FDI investment in the country, Maoists had successfully orchestrated a revolt by uniting locals. Police, however, claimed that the protesters have been driven out and their leaders arrested. Maoist frontal organisations are also currently opposing the Tata Steel project in the Kalinga Nagar area of Jajpur District.
Between the two extremes of justifying war and abhorring it, there lies in the ultimate analysis, a zone of social reality. As in Orissa, so in Jharkhand, Bihar and somewhat in West Bengal too, the Maoist menace has been largely seen by the administration as evil. Might has been used to combat might. The underlying picture, however, is the same everywhere. Maoists have taken root in precisely those areas that have been long neglected by the administration. Whether in West Bengal’s Purulia district or the tribal areas of Bihar, Jharkhand and Orissa, near inhuman poverty has been allowed to thrive through the decades, while successive governments irrespective of party colour, have remained content doing lip service. The centuries’ old resident population in these areas therefore do not quite think of the Maoists as evil. The Maoist movement therefore grows with local help. Much therefore will hinge on future policies that can ensure the resident population in these areas a life that has dignity and freedom.
http://economictimes.indiatimes.com/PoliticsNation/Maoists-hold-industry-at-gunpoint/articleshow/4481947.cms
State govt sleeps on eco-zones proposal
4 May 2009, 0441 hrs IST, Vijay Pinjarkar, TNN
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NAGPUR: In the battle between conservation and vested interests, unfortunately the latter seem to be winning. The state government’s reluctance
in declaring eco-sensitive zones (ESZs) around 10-km of the protected areas (PAs) shows how powerful the vested interests behind industries like quarrying and mining are.
It’s over three years since the Supreme Court, in Goa Foundation vs Union of India, asked state governments to declare ESZs in forests 10 kms around sanctuaries and national parks. The ruling came on December 4, 2006, but most governments, including Maharashtra, have responded with stubborn inaction. The court observed that continued lack of response will only be at the risk of the governments.
B Majumdar, principal chief conservator of forests, Maharashtra, says after the court orders, proposals for declaring ESZs around 41 PAs of the state were sent to the state government. The first proposal was of Sanjay Gandhi National Park (SGNP), Borivali, but it was rejected owing to the cluster of buildings and apartments that have come up near the park. Of the remaining 40 PAs, Great Indian Bustard (GIB) sanctuary in Solapur and Tungareshwar were not recommended for ESZ due to similar problems.
“Proposals for ESZs around 38 sanctuaries have been referred back by the state government. On May 17, 2008, the state has asked respective district collectors to seek views of stakeholders. Collectors of Chandrapur and Gondia have given their consent for Tadoba (Chandrapur) and Nagzira & Navegaon (Gondia) as ESZs. We’ve not received replies from others,” said Majumdar. As views of stakeholders and villagers around TATR were not sought by Chandrapur collector, the matter has been referred back to him, he added.
If declared, roughly over 7.83 lakh hectare forested land around 41 PAs will come under the ESZs giving a big boost to conservation and environment protection. It will also go a long way in conserving tigers.
Environmentalists charge state was merely buying time for vested interests.
“ESZs are binding as per Environment (Protection) Act 1986. In ESZs only non-polluting, non-hazardous small-scale and service industries like agriculture, floriculture, horticulture and agro-based units can come up. Mining and quarrying will be banned. Many coal mines are proposed around TATR. Besides, there are also moves to declare some of these areas as SEZs. Is it behind the delay?” asked conservationist Kishor Rithe.
So far, the MoEF has notified only three areas as ESZs in state. These include Matheran, Dahanu, and Mahabaleswar-Panchagani. A section of conservationists said that if state was so serious about stakeholders’ views why it didn’t think equally when it came to dangers of mining around PAs?
http://timesofindia.indiatimes.com/Nagpur/State-govt-sleeps-on-eco-zones-proposal/articleshow/4480522.cms
Throne Of Blood: Maoists' threat in Orissa
4 May 2009, 1341 hrs IST, ET Bureau
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Strap: In 261 BC Emperor Ashoka invaded Kalinga, an event that was a watershed in world history. Thereafter, Orissa has been attacked innumerable
times by aspiring emperors, kings and ganglords, but has never lost its identity. In this concluding part of the ET series on Terror in the eastern states, Nageshwar Patnaik takes a look at Orissa’s latest factory-fresh tormentors, the Maoists, who threaten to challenge the sovereignty of the state...
Back in 1931, a young Mao Zedong stole into the heart of China’s remote Jinggang mountains to orchestrate Spanish guerrilla-like operations by his famed Red Guard. He would eventually go on to lead the Communist Party of China (CPC) to victory in a historic civil war and become the epicentre of power in China. Much later and during his last days in hospital in September 1976, Mao was as much aware perhaps of approaching Death as he was of the rising discord against his rule. In the post-Mao phase, China went through an epic catharsis that perhaps culminated in the Shanghai government issuing new history textbooks in 2006, that omit Mao almost altogether.
Nonetheless, Maoism and more specially his military writings continue to influence ultra Communists across the world, from Cambodia and Peru to Nepal and more recently, to the heartland of India, where insurgents take his name to spread terror throughout Bihar, Jharkhand, Chattisgarh, Andhra Pradesh and Orissa, where the southern and north-western districts are almost entirely in their grip.
For one, the total number of districts in the Maoist loop in Orissa has nearly doubled in less than three years. Back in June 2006, only 14 of Orissa’s 30 districts were stung by Maoist strikes. Today, as many as 22 districts are vulnerable to Maoist violence and the number is growing, according to latest intelligence feeds.
Six south-western districts — Malkangiri, Koraput, Raygada, Kandhamal, Nayagarh and Gajapati — accounted for a whopping 60% of all incidents in calender 2008. And if these reports are true, these mercenaries are silently penetrating into urban centres by wooing the college grad and the Genext to their cause.
The Delhi-based Institute for Conflict Management also confirms that the total number of Maoist incidents in Orissa nearly doubled to 129 in calender 2008 from 67 in the earlier year. While the total number of fatalities suffered by securitymen shot up to 76 from a mere two in 2007.
Back in June 2006, the Naveen Patnaik government retaliated against the Maoist menace by banning the CPI (Maoist) and even declaring seven of its front organisations unlawful.
But a mere ban perhaps will no longer wash with the public or business houses operating in Orissa as the overwhelming nature of the threat literally burst to the fore after April 12’s unprecedented siege by a 200-strong Maoist gang at Nalco’s bauxite mines in Damanjodi, which houses Asia’s largest bauxite reserves.
At the root of the malady are the continuing socio-economic woes of the tribal flock who lie scattered among the state’s densely forested southern districts with hardly anything to eat. If anything, Maoists have managed to derive maximum mileage by playing the poverty card and capitalising on the deep sense of alienation that runs through the heart of tribal Orissa.
The Maoist threat to the economy is particularly huge since Orissa is a Fifth Schedule state with a high concentration of tribals inhabiting the hills and forest tracts, where most of the mines, dams, factories and other mega projects are also located.
State circles privately concede that alienation of tribal land perhaps is the single biggest reason behind the dismal economic lot of the state’s tribal community. Land lost is often the most productive kind, leaving the tribals with scarcely any option but to till low grade land that is vulnerable to the vagaries of weather. So much so that land transfers have wreaked havoc on an already fragile tribal economy and to compound matters, the massive inward migration of non-tribals has altered the land ownership matrix in Scheduled Areas, much to the disadvantage of the tribals.
State government circles seem flummoxed specially since Maoists have actually managed to create an exclusive jungle corridor between Andhra Pradesh and Chhattisgarh to facilitate rapid movement. Orissa’s principal secretary (home) AP Padhi confirms this. "Most Maoists active here are from outside the state, largely operating in the districts bordering Andhra Pradesh and Chhattisgarh. They invariably exploit the advantages of the inhospitable hilly terrain to launch their attacks. Lately, their mission is to stall all development activities in the state, be it construction of roads, buildings or tanks. Our Special Operations Group is doing its best to acquainted with the region and flush them out," he says.
But in the same breath, Mr Padhi concedes that "the governance failure coupled with the lack of development in the backward zones has stoked Maoist intrusion" in a large number of areas across Orissa."
For one, Maoist bands have managed to brazenly cash-in on the vacuum created by functional inadequacy of field level governance structures and take advantage of the deep dissatisfaction and feeling of neglect that is palpable across the underprivileged and remote segments of Orissa’s population.
However, state officials also assert that the Maoists, while playing the poor man’s ally, are leaving no stone unturned to prevent execution of mega development projects, be it linked to critical infrastructure like the railways, roads, power and telecommunications.
"And their modus operandi is invariably a deadly blend of terror and violence. Nor surprisingly, prevailing governance structures at the field level in these sensitive pockets are shown as ineffective," points out a state official.
According to the Planning Commission, the "incidence of poverty among the tribal population is nearly twice that of others in Orissa." And the incidence and persistence of poverty is even higher in southern Orissa, which comprises the Kandhamal, Gajapati, Koraput, Balangir and Kalahandi (KBK) districts. These southern districts have remained underdeveloped largely due to a mix of lack of political involvement and bureaucratic apathy.
The much touted ‘inclusive development’ has also remained a distant thought. The situation in southern Orissa is even worse with nearly 87% of the Scheduled Tribes living below poverty line, and the socio-economic indicators in some pockets is ever worse than in sub-Saharan Africa.
"Things haven’t changed much ever since the Naxalite movement took off in 1968 in the undivided Koraput district. And tribals remain without the pattas of land they have been tilling for generations. Tortures by police and officials also continue and the tribals have no access to drinking water. In truth, they remain deprived of the fruits of development. Unless the basic issues of hunger and livelihood are addressed by the state government, the Naxal or Maoist menace will continue to haunt the region", warns Rabi Das, a former front ranking Naxal leader turned social activist.
It is in this glaring backdrop that the Naveen Patnaik government has sought to project Maoist subversion in Orissa as a spillover of the violence from its neighbouring states.
And lately, there have been reports of Maoist incidents from coastal and central districts like Jagatsinghpur, Jajpur, Khurda, Angul and Dhenkanal too.
Of the four high-profile Maoist strikes of 2008, three were targeted at security forces. Something that brutally exposed the failure of the intelligence and the pathetic state of the police, not to speak of the lackadaisical approach of the state government.
Besides the Damanjodi mine siege, perhaps the most serious Maoist attack was the near simultaneous raids on the District Armoury and the Police Training College at the District Headquarters town of Nayagarh, which is barely 80 km west of Bhubaneswar.
While the state police claimed to have killed three Maoists, not a single dead body was recovered. On the contrary, the Maoists managed to get away with 1,100 items of weaponry, including rifles, light machine guns, single loaded rifles, AK-47s and pistols. Four guns were also removed from each of the three police stations.
The other deadly attack transpired on June 29 when 38 securitymen, including some 36-odd belonging to the elite anti-Maoist Greyhounds from Andhra Pradesh, perished at the Chitrakonda reservoir of Malkangiri district, near the Andhra Pradesh border.
CPI-Maoist cadres had sprayed bullets from hilltops on an Andhra Pradesh-Orissa joint police party, which was returning after a combing operation based on an intelligence tipoff.
But it’s the recent Maoist strike on Nalco’s prized bauxite mines that appears to have given fresh resolve at the state level to grab the Maoist menace by the horns.
"The Maoist attack on Nalco’s bauxite mines on April 12 in which 10 securitymen were killed only confirms the sophistication of their firepower. It is evident that the Maoists have set their sights on Orissa’s prized resources and unless the government declares an all-out war on these rebels, one must be prepared for more mindless violence and bloodletting. The state government needs to plug all leakages in the development projects in the backward areas," says ex-state police chief Amiya Bhusan Tripathy without mincing words. Only time will tell the wiser.
http://economictimes.indiatimes.com/PoliticsNation/Throne-Of-Blood-Maoists-threat-in-Orissa/articleshow/4481944.cms
World's largest freshwater lake under dire threat from climate change
Washington (IANS): Siberia's Lake Baikal, the world's largest freshwater lake, faces severe ecological threats due to climate change, a new study has found.
The planet's most biologically diverse water body, Lake Baikal is considered a treasure trove for biologists. It was designated a World Heritage Site by Unesco because a high proportion of its rich fauna and flora cannot be found anywhere else.
Perhaps the most alarming imminent threat stems from the dependence of the lake's food web on large, endemic diatoms, which are vulnerable to expected reductions in the length of time the lake is frozen each winter.
The study was based on a joint analysis by a US-Russian team which included Marianne Moore of Wellesley College, Massachusetts, and five co-authors, including four from Irkutsk State University in Russia.
Moore and colleagues note that Lake Baikal's climate has become measurably milder over recent decades, and that annual precipitation is expected to increase.
The average ice depth in the lake is known to have decreased, and the ice-free season has increased. Changes in the lake's food-web composition have been documented.
Future shortening in the duration of ice cover is expected to curtail the growth of the lake's endemic diatoms. This is because unlike most diatoms, they bloom under ice in springtime and are highly dependent on ice cover for their reproduction and growth.
The diatoms constitute the principal food of tiny crustaceans abundant in the lake, and these in turn are preyed upon by the lake's fish.
Shortened periods of ice cover and changes in the ice's transparency may also harm the Baikal seal, the lake's top predator and the world's only exclusively freshwater seal.
Because the seals mate and give birth on the ice, premature melting of the ice forces them into the water before melting and drastically reduces their fertility.
A warmer, wetter climate may be the principal threat to Lake Baikal's unique biological heritage, but it is not the only one. The secondary effects of climate change, including greater nutrient input and industrial pollution from melting permafrost, may also exact a toll on an already-stressed ecosystem.
These findings were published in the latest issue of BioScience.
http://www.hindu.com/thehindu/holnus/008200905041142.htm
'Bellary ministers supported by Congress, BJP'
3 May 2009, 2246 hrs IST, TNN
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DAVANAGERE: The ministers of Bellary are having strong support of Congress leaders of AP government and also of the state BJP government headed
by CM Yeddyurappa, for getting their mining businesses done, said former CM and state JD(S) chief H D Kumaraswamy, at a press conference at Harihar Polyfibers near here, on Friday.
He cited the example of Karunakar Reddy, Janardhan Reddy and Sriramulu, the ministers of Bellary district, who were enjoying full support of Congress leaders of AP government.
CM Yeddyurappa should be ashamed of the dual characteristics of these ministers, who are Congress supporters outside the state, but BJP supporters within Karnataka, Kumaraswamy said. He came down heavily on the Reddy brothers for their illegal mining, particularly, selling the ore after stealing it during the night from P K Halli region and also from Obalapuram mines.
Let, Yeddyurappa come and witness all these illegal activities and speak, as it is a great shame on his part, Kumaraswamy said.
Was it not possible for the district election officer and the SP of Davangere district to keep Karunakar Reddy, the revenue minister out of Davanagere LS constituency, as he had violated the poll code, he asked, adding, it is a total failure of the district administration.
http://timesofindia.indiatimes.com/Hubli/Bellary-ministers-supported-by-Congress-BJP/articleshow/4479458.cms
Industries Push for Free Pollution Credits
WASHINGTON -- A growing number of industries are lobbying for free pollution permits under legislation capping greenhouse-gas emissions, in a potential threat to the funding for President Barack Obama's proposed middle-class tax cut.
A range of industries, including electric utilities, auto makers, and oil and natural gas refineries, are making their case to lawmakers ahead of a vote on proposed climate legislation expected this week by the House Subcommittee on Energy and the Environment. The jockeying has intensified in recent days after a push by electric utilities to secure up to 40% of the emissions permits for free, an amount that would be proportionate to their share of U.S. carbon-dioxide emissions.
The measure by Reps. Henry Waxman (D., Calif.) and Edward Markey (D., Mass.) calls for reducing U.S. greenhouse-gas emissions roughly 20% below 2005 levels by 2020 and 83% below 2005 levels by mid-century. It is largely silent on how much companies would have to pay for pollution permits under a proposed cap-and-trade system that would allow companies to buy and sell such permits.
Mr. Obama has called for auctioning off 100% of the emission allowances and using the bulk of the revenue to fund tax credits for the middle class. His 2010 budget blueprint projects raising $645 billion from the auction of emissions permits between 2012, when the system kicks in, and 2019. A smaller portion would be devoted to research and development of low-carbon technologies. But Mr. Obama and some of his aides have signaled they are willing to compromise on giving away the pollution permits.
The bill's fate could hinge on how willing Messrs. Waxman and Markey are to give in to the demands of about a dozen Democratic committee members who want to soften the impact on their districts, which depend on coal, manufacturing, or oil and natural gas for jobs.
"There are a lot of things in the bill I need to have changed," said Rep. Gene Green (D., Texas). Mr. Green, whose district is home to the largest petrochemical complex in the world, wants Mr. Waxman to give some pollution permits to oil refiners for free. "If that's not in the bill, I can't vote for it," he said.
Refiners are lobbying to get for free 30% of the pollution permits, an amount that corresponds roughly to the share of U.S. greenhouse-gas emissions produced by transportation fuel. Without such allowances, the industry says, it will lose out to refineries in India and the Middle East that ship their product to the U.S. and don't operate under carbon caps at home.
"The electric utilities want 40%, and if they're getting 40%, the refiners say 'Why shouldn't we get 30%?"' Mr. Green said. Mr. Green said he has asked Mr. Waxman to give the refining industry a smaller share of the allowances -- roughly 5%.
Messrs. Waxman and Markey have said they intend to work out a distribution of the allowances after consulting with their colleagues, but haven't indicated specifically how the matter will be resolved. A spokeswoman for Mr. Waxman said, "We are encouraged by the progress that we are making, and the committee will continue meeting with members to discuss the legislation."
Economists say generally that consumer prices will rise regardless of whether permits are given away for free, and that giving them away for free will divert money from other purposes in the public interest, such as tax cuts for consumers. But "the politics of passing [climate legislation] in the committee are tough; it's hard to be a purist," said Chad Stone, chief economist of the Washington-based Center on Budget and Policy Priorities.
The issue is particularly thorny for the auto industry. The Obama administration has billions of public dollars at stake in turnaround efforts at Chrysler LLC and General Motors Corp. At the same time, Mr. Obama has vowed to promulgate more aggressive fuel-economy standards for vehicles, which won't be cheap. Last summer, the Transportation Department estimated that its proposal to require auto makers to achieve fuel efficiency of 31.6 miles per gallon by 2015 would cost auto makers $46.7 billion, which the agency said would make it among the most expensive rule makings in U.S. history.
"There are a lot of interests competing for the pot of money, but I think there's a general recognition that some of the revenue…should be used to push advanced, low-carbon technologies because that's how we're going to drive the emissions reductions we need," said Alan Reuther, legislative director of the United Auto Workers.
The union, along with the Alliance of Automobile Manufacturers, is lobbying Mr. Waxman to direct that a portion of the revenue raised from the auction of carbon allowances go toward helping the industry develop more fuel-efficient vehicles to meet a federal mandate to improve new-vehicle fuel economy at least 40% by 2020.
Mr. Reuther's concerns have been echoed by Rep. John Dingell (D., Mich.), another swing vote on the panel who is leaning on Mr. Waxman to devote a portion of permit revenue to an Energy Department program that awards low-interest loans to car makers to develop advanced vehicles.
—Ian Talley contributed to this article.
Write to Stephen Power at stephen.power@wsj.com
http://online.wsj.com/article/SB124138869928981331.html
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