Mining – India 1
1. India copper reverses losses on rupee, stockpiles 1
2. TATA Power aid the Indonesian coal mines 2
3. Budget expectations of the metals and mining industry 3
4. India’s May Iron-Ore Exports Increase on Higher China Demand 5
Mining – International 5
5. Nationalising our mines will not create more jobs 5
6. Obama nominates heads of mining agencies 6
7. Gold mining companies cutting down production 7
8. Job cuts 'expected' for mine machine repairer 8
9. South Africa’s Ruling Party Open to Mine Nationalization Debate 8
Other News 9
10. India’s Position on Climate Change issues 9
11. Rajiv Awas Yojana to aim at slum-free India 10
12. El Nino developing slower, India monsoon to stay weak 11
13. Spl court for human rights violations 12
14. Top 10 reasons to invest in emerging market equities 12
15. BMC to set up rain water harvesting plants 13
16. Balasore: Fighting with scarcity and surplus of water 14
Mining – India
India copper reverses losses on rupee, stockpiles
Tue Jul 7, 2009 4:22pm IST
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MUMBAI, July 7 (Reuters) - India copper futures reversed early losses on Tuesday to trade slightly higher, supported by a weak rupee and a fall in copper stocks in London, analysts said.
The most active August copper contract MCCQ9 was 0.99 percent higher at 244.50 rupees per kg at 4.19 p.m., after hitting a low of 240.60 rupees earlier.
Copper inventories dropped 3,250 tonnes to 265,925 tonnes, which allayed some concerns about stocks potentially rising in a weak period for demand.
The Indian rupee dropped to a 2-week low tracking the dollar's gains versus major currencies, while traders were closely tracking local shares for clues on direction of fund flows. A weak rupee makes the dollar-quoted red metal expensive.
"A weak rupee and lower stocks are supporting prices. But it is still moving in a narrow range," said Somnath Dey, in-charge, metals and energy research, with Religare Commodities.
"It might go to 246 rupees later."
"There has been slight improvement in copper. It may trade in the range of 242-247 rupees," said Praveen Singh, an analyst with India Infoline.
In other base metals, July zinc MZIN9 was 1.73 percent higher at 76.35 rupees per kg, while lead for July delivery MLDN9 was 1.47 percent higher at 82.60 rupees per kg at 4:20 p.m..
(Reporting by Siddesh Mayenkar; Editing by Harish Nambiar)
http://in.reuters.com/article/domesticNews/idINBOM38883720090707
TATA Power aid the Indonesian coal mines
Tuesday, 07 Jul 2009
BL reported that Mr Prasad Menon MD of TATA Power aid the Indonesian coal mines PT Kaltim Prima Coal and PT Arutmin Indonesia in which TATA Power has a 30% stake, performed well during 2008
and were profitable even at current coal prices.
According to sourced, it will use half the quantity of coal it gets from the Indonesian mines for its 4,000 MW ultra mega power project that is under construction at Mundra in Gujarat.
According to the company, the Indonesian mines produced 52 million tonne in FY 2009 with an average realized price of USD 77.56 tonne.
Mr S Ramakrishnan executive director, finance of TATA Power said that given the current coal prices, the company had started to review all capital expenditure except that which leads to cost reduction. He said we have put all the other CAPEX on hold at this point of time.
Mr Ramakrishnan said that the operations at the coal mines were profitable even at these low prices as the cost of mining operations had gone down with the fall in oil prices.
He said on the breakeven price that "If our realization goes down further by another USD 5 to USD 10, we will come into an area where the breakeven will come but we believe that the coal prices are at a rock bottom."
As per report, TATA Power will spend about INR 5,500 crore this year on various projects, including that of the special purpose vehicles floated by it, of which INR 1,700 crore will be equity. Next year, it estimates the capital expenditure will be INR 6,900 crore.
The company's generation capacity was 2,785 MW at the end of the last financial year and it will add 220 MW this year. It generated 14,807 million units in 2008-09 against 14,717 million units in the previous year. It had made an impairment provision of INR 280 crore on account of recognition of goodwill impairment loss relating to its investments in certain overseas JV.
TATA Power said that it will consider all options to raise finances to meet its equity commitments. It has raised short term funds of INR 1,300 crore, which would see it through this financial year. Its debt on a consolidated basis was about INR 13,900 crore.
(Sourced from Business Line)
http://steelguru.com/news/index/2009/07/07/MTAxMjc5/TATA_Power_aid_the_Indonesian_coal_mines.html
Budget expectations of the metals and mining industry
D. Murali
Chennai: What does the mining industry expect from the Budget? That there would be measures incentivising domestic exploration and mining activity, and also help in making the export of minerals from India more competitive internationally, says Keval Doshi, Tax Partner, Ernst & Young.
Minerals are a valuable natural resource and are a vital raw material for infrastructure, capital goods, energy generation and basic industries, he reminds, during a recent email interaction with Business Line.
“Given that the exploration of minerals play a pivotal role in the country’s economic development, the Government of India announced the National Mineral Policy 2008, which when fully implemented is expected to give a boost to prospecting and mining activities in India.”
Doshi cites, as example, coal mining; several coal mines in India are currently tangled in litigation or are not being mined due to lack of efficient infrastructure support which makes mining unviable, he rues.
“As India faces a shortfall in power generation, large power projects are being set up, which may need coal as primary input. Given the limited supply of domestic coal in the current scenario, India will soon emerge as a large importer.”
To manage power production costs, power producers are acquiring coal mines in neighbouring countries, observes Doshi. “A large amount of capital will be deployed in developing the coal mines, building capital equipment, building infrastructure for transportation and logistics etc. by Indian entrepreneurs to secure coal supplies.”
In addition to investments, India will also need valuable foreign exchange resources to foot the coal import bill, so that the plants continue to produce power for the Indian consumer, he cautions. “Some of the issues plaguing the sector can be corrected if domestic exploration and mining is encouraged through fiscal and policy measures.”
Introducing tax reforms is critical for encouraging long-term investments into the mining sector, Doshi avers; for, growth in the domestic mining industry will not only help in economic development, but also conserve valuable foreign exchange.
Excerpts from the interview, in which Doshi touches upon some of the measures that would encourage greater domestic investments in this sector.
On tax holiday for mining activity.
A tax holiday on corporate income would improve the internal rate of return (IRR) ratios for projects which may otherwise not be viable. Similar provisions exist under Section 80IB of the Income-tax Act, 1961 for activities relating to exploration of mineral oil.
On promoting exploration activities.
The cost of extracting minerals can be reduced by identifying new mining areas with higher grade of minerals, making mining in India economically beneficial. There is an expectation from the Government to encourage exploration activities by permitting deductibility of exploration-related expenditure as and when they incur.
Currently, costs incurred on prospecting, extraction or production of any minerals during the year, in which the taxpayer begins commercial production, are to be clubbed with similar expenses incurred over the previous four years and the total amortised over a 10-year period.
Many countries, such as Australia and Malaysia, already allow expenditure incurred for exploration and prospecting as immediately deductible.
On deduction for provisioning towards mine closure expenses.
There’s no refuting the fact, that mining activity causes environmental damage. The Indian Government has made it mandatory to undertake appropriate mine closure in a responsible way, such that the rehabilitation of land does not become a burden to society after the mining operation.
At present, costs incurred on mine closure are allowed only in the year in which the expenses are incurred and there is no provision for set-off of estimated mine closure expenses against the profits, while the mines are generating taxable profits.
Introducing provisions that help in reducing current taxes by allowing deduction of mine closure expenses on provisional basis will help the industry from a liquidity standpoint. It may be noted, that a similar beneficial provision already exists under Section 33ABA of the Act for the oil and petroleum industry.
On the need for enhanced depreciation on capital equipment.
Investments in capital equipment which help in improving productivity and enhance the safety of mine workers can be encouraged through accelerated depreciation. Investment in commercial and passenger vehicles is currently being incentivised through similar provisions.
On tax break for investment in R&D.
Investments in technology can be encouraged if expenditure incurred on the above areas is given a weighted tax deduction. Australia, for example, allows a 125 per cent tax break on qualified R&D (research and development) expenditure. This will result in improving productivity, enable mining operations to be environment-friendly, and improve realisation through better purity and quality standards
On reduction of excise duty/ custom duty.
The Government can also ease the burden of high capital costs for ‘extraction’ and ‘earthmoving’ equipment by reducing excise duty on domestically-produced equipment and reduce customs duty rates on imported capital equipment. Excise/custom duties paid by mining companies being non-creditable in most cases, add to the cost of the equipment.
http://www.hindu.com/thehindu/holnus/006200907051632.htm
India’s May Iron-Ore Exports Increase on Higher China Demand
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By Debarati Roy
July 7 (Bloomberg) -- India’s iron-ore exports rose in May after falling for two months as China, the world’s largest consumer of the steel-making raw material, increased purchases.
Overseas shipments climbed to 10.6 million metric tons from 8.99 million tons a year earlier, the Federation of Indian Mineral Industries, a group of iron-ore mining companies, said in a statement today. Sales in April fell 20.6 percent, it said.
Prices of ore for immediate delivery rose to a four-month high of $82.50 a ton in the week ended July 3 on increased Chinese demand, according to Metal Bulletin, an information provider of the steel and metals industry. China is spending 4 trillion yuan ($585 billion) on infrastructure and other projects to support the economy.
China’s demand for iron ore has boosted the Baltic Dry Index, a measure of shipping costs for commodities, as much as fivefold this year and led to record queues of ships waiting to discharge consignments of the raw material.
Iron-ore usage in China will boost demand for shipping as imports will remain cheaper than domestic output, Morgan Stanley said in a note on July 2.
To contact the reporter on this story: Debarati Roy in Mumbai atdroy5@bloomberg.net
Last Updated: July 7, 2009 02:56 EDT
http://www.bloomberg.com/apps/news?pid=20601091&sid=abG2p5Soh5Ns
Mining – International
Nationalising our mines will not create more jobs
Reader letter Published:Jul 07, 2009
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FROM before the first democratic election in 1994, the African National Congress stated time and again that there would be no nationalisation of industry in the country. — E Schwentzek, by e-mail
• ANC’s Mantashe faces policy revolt
It is unfortunate for the country that the ruling party has allowed communists to get into powerful positions and undermine it.
Now we face the possible horror of mine nationalisation, resulting in foreigners losing confidence in the country.
The ruling party is not able to run the country effectively.
Corruption is still rife and people are put into leading positions not for their skills but for their political alliances. Our state-owned or controlled enterprises are mostly in a shambles. The SABC is an example.
The illusion the communists and trade unionists peddle is that jobs can be saved if enterprises are owned by the state. This is not true in the long run.
We have ample examples in neighbouring states like Zambia and others, of no extra jobs being created after the state nationalised the mines and of mines quickly becoming run down.
If self-serving bureaucrats and party officials with very little knowledge of the economy are in control of companies and mines, we will lose jobs, not create them.
Our mines will flourish only if there is demand from the manufacturing industry.
Our leftist alliance should rather use its energy to think of ways to expand our manufacturing industries and create more jobs through the beneficiation of our minerals than waste time on rhetoric.
Everyone is aware that our present economic problems were caused by greed, the misuse and excesses of our free-market system, but that does not mean that the system has failed in principle.
The world has to learn that by implementing rules and controls, it can prevent a similar disaster from happening in future.
Nationalisation will only create a massive, disinterested and unproductive labour force with many hangers on.
http://www.thetimes.co.za/News/Article.aspx?id=1029796
Obama nominates heads of mining agencies
By TIM HUBER – 11 hours ago
CHARLESTON, W.Va. (AP) — The Obama administration nominated officials Monday to head two key agencies that oversee the health and safety of the nation's 392,000 miners and environmental issues at thousands of surface mines across the country.
The choice of former United Mine Workers union official Joe Main to head the U.S. Mine Safety and Health Administration raised little concern. But environmental groups criticized Obama's pick for the Office of Surface Mining Reclamation and Enforcement, Pennsylvania state official Joseph Pizarchik.
Groups that oppose Appalachian surface mining, saying it ravages the environment, have questioned Obama's commitment to protecting the region called Pizarchik a coal industry insider.
"We certainly don't see him as a very strong candidate," said Janet Fout, executive director of the Ohio Valley Environmental Coalition. "The state agencies haven't been doing their jobs."
Pizarchik currently heads Pennsylvania's Bureau of Mining and Reclamation. At OSM, Pizarchik would head an agency that has long been criticized by environmental groups for its perceived failure to enforce laws designed to protect the environment.
The Sierra Club offered a cautious assessment, saying only that it urges Main and Pizarchik to make strong enforcement their top priority.
"That would be a welcome change of pace after the mine accidents, environmental devastation, and lax oversight that marked the past eight years," Mary Anne Hitt, deputy director of the Sierra Club's Beyond Coal Campaign, said in an e-mail.
Interior Secretary Ken Salazar praised Pizarchik.
"Joe Pizarchik brings a lifetime of experience and dedicated public service to ensuring mines are operated safely and in an environmentally sound manner," Salazar said in a statement. "His expertise and record of innovation will ensure the coal production that is so necessary to meet our nation's energy needs is conducted in a way that respects the land and protects the environment."
The National Mining Association declined to comment on him, but spokesman Luke Popovich called Main experienced and knowledgeable. "We'll need both as we work with MSHA to sustain the progress we've made in the past two years," he said in an e-mail.
Main spent 22 years heading the UMW's Occupational Health and Safety Department before retiring and the union's current president, Cecil Roberts praised, the choice.
"Joe is perhaps the most knowledgeable person about mine safety and health in the nation, and his experience was gained where it counts the most — fighting every day for over 30 years on behalf of miners' health and safety," Roberts said.
http://www.google.com/hostednews/ap/article/ALeqM5hLB7JT0hgRwVFCgfDm1swRsV15gQD9998NL00
Gold mining companies cutting down production
2009-07-07 15:45:00
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Are gold mining companies across the world cutting down production? While the demand for gold is on the rise as the economic fundamentals for gold are favorable, gold mining companies have been cutting production for the past three years.
At their peak (1970) South African production came in at 1,000 tonnes. Last year South Africa produced a miserable 296 tons of gold (levels not seen since 1922).
The decline in gold production in South Africa in 2008 is attributed to the problems of electricity, but the major reasons for this change in position had been due to South African production falling by 50% in the past decade as production costs there have risen, more stringent safety regulations have been implemented and existing mines have become depleted.
In the year 2008, the world gold market was in a deficit of 5.23%. According the latest WGC estimates the total gold supply was 3468 tonnes; lower by 191 tonnes to demand last year.
http://www.commodityonline.com/commodity-stocks/Gold-mining-companies-cutting-down-production-2009-07-07-19339-3-1.html
Job cuts 'expected' for mine machine repairer
By Melissa Maddison
Posted 11 hours 16 minutes ago
Updated 11 hours 17 minutes ago
• Map: Mackay 4740
The Australian Manufacturing Workers Union (AMWU) says it expects redundancies at a Mackay mining support company placed in voluntary administration late last month.
More than 200 people work at HMG Westhill, in north Queensland, which repairs heavy machinery used in the mining industry.
A creditors' meeting yesterday was told there is a good chance the business will be sold, with more than 30 expressions of interest so far.
AMWU Queensland organiser Kane Lowth says at this point there is no reason for employees to be concerned but redundancies are likely.
"Well the message is business as usual - continue to do what they're doing," he said.
"There's work currently in those workshops and there's more work continuing to come in, so it's reasonably positive but nothing's ever guaranteed."
Ms Lowth says more mining support companies may be facing a similar fate.
"I'm not aware of any at this stage but it's always a possibility unless the market does pick up," she said.
"All indications are that ... the next 12 months are going to be reasonably tough and after that we might see some improvement."
http://www.abc.net.au/news/stories/2009/07/07/2618764.htm?section=business
South Africa’s Ruling Party Open to Mine Nationalization Debate
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By Mike Cohen
July 6 (Bloomberg) -- South Africa’s ruling African National Congress said it was open to discussing demands by its labor union allies to consider nationalizing the country’s mines, which lead world production of platinum and rank No.3 in gold.
“The ANC regards the current discourse on this matter to be neither a revolt nor a fight,” ANC spokeswoman Jessie Duarte said in an e-mail today. “It is a debate we welcome.”
The Congress of South African Trade Unions, or Cosatu, which forms part of the country’s ruling alliance, has called for the ANC to implement the Freedom Charter of 1955, which backed the nationalization of the mines. While the charter remains official ANC policy, the party never followed through on its threat to seize businesses after taking power in all-race elections in 1994.
“Nationalization of the mines is particularly relevant in the light of the global financial crisis and the massive job losses in the mining sector,” Cosatu said in an e-mail. “The people of South Africa should share and benefit from South Africa’s mineral wealth.”
About 25,000 jobs in the country’s mining industry have been lost as a result of the global recession, according to the mines ministry. Anglo Platinum Ltd.and Lonmin Plc are among those to have fired workers.
The ANC had taken several steps to ensure South Africa’s mineral wealth is equitably shared, Duarte said. These included passing laws giving the state ownership over all mineral deposits and forcing companies to sell shares to black investors.
“An impression that the leadership of the ANC is resisting the transformation of ownership of mineral and petroleum resources is incorrect,” she said. “We have laid a firm foundation and the task ahead is one of implementation.”
To contact the reporters on this story: Mike Cohen in Cape Town atmcohen21@bloomberg.net
Last Updated: July 6, 2009 10:32 EDT
http://www.bloomberg.com/apps/news?pid=20601116&sid=awfyU9Qdbi7k
Other News
India’s Position on Climate Change issues
-: Financial Resources Must Flow from Developed Countries to Developing Countries to Overcome Challenges
________________________________________
10:29 IST
Factsheet
India has not taken any negative stand on the financial mechanisms. India has demanded that financial resources be made available by developed countries to developing countries to enable them to tackle Climate Change challenges. It has pointed out that, in terms of the UNFCCC itself, these can only be considered supplemental flows. It must also be recognized that the market mechanism has its own limitations. They cannot be considered as a substitute for the multilateral financing mechanism, but for Adaptation and Mitigation, envisaged under the UNFCCC. The flow of funds under such a mechanism would be in the nature of net transfer of funds i.e. grants, whose disbursement would be governed by a multilateral structure constituted by Parties to the Convention itself. This has already been recognized in the establishment of the Adaptation Fund. This is important because the provision of financial resources to developing countries, as envisaged under the UNFCCC, should follow the priorities of the recipient countries and not those of the source countries.
Financing for Climate Change must also not be seen as another form of Overseas Development Assistance (ODA) but rather payments for entitlements of developing countries under an equitable regime. The financial contributions for addressing Climate Change are net and additional. These can neither be treated under the paradigm of aid, nor driven by markets which are, in any case, dependent on the level of emission reduction obligations taken up by the Annex I Parties.
http://pib.nic.in/release/release.asp?relid=49813
Rajiv Awas Yojana to aim at slum-free India
Press Trust of India / New Delhi July 07, 2009, 14:08 IST
The Rajiv Awas Yojana, announced in the budget, aims at promoting a slum-free India in five years and would focus on according property rights to slum dwellers, Union Minister for Housing and Poverty Alleviation, Kumari Selja, said here today.
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"The government has announced a new scheme Rajiv Awas Yojana for the slum dwellers and the urban poor in an effort to promote a slum-free India in five years," Selja said in her inaugural address at the Habitat Business Forum meet on urban challenges and solutions.
Twelve countries are taking part in the conclave which is co-sponsored by UN Habitat and China Real Estate Chamber of Commerce.
The union minister said the scheme will focus on according property rights to slum dwellers and the urban poor by the states and union territories.
"It would provide basic amenities such as water supply, sewerage, drainage, internal and approach roads, street lighting and social infrastructure facilities in slums and low income settlements adopting a 'whole city' approach," she said, adding, it would also provide subsidized credit.
Describing urbanisation as "a great historical opportunity", Selja said the energy of urban growth can be harnessed as a "positive force for human development to create sustainable, equitable, and peaceful cities".
http://www.business-standard.com/india/news/rajiv-awas-yojana-to-aim-at-slum-free-india/66927/on
El Nino developing slower, India monsoon to stay weak
Tue Jul 7, 2009 1:44am EDT
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* Southern Oscillation Index at -2 vs -5 in May - Met
* SOI at -10 usually suggests El Nino condition
* Premature to declare El Nino, but monsoon weak-official
* here (Adds independent weather forecast of El Nino by August)
By Michael Perry
SYDNEY, July 7 (Reuters) - A key measure of El Nino weather patterns eased in June, suggesting the potentially damaging condition may be developing slowly, although India's monsoon will remain weak, Australia's weather bureau said.
An El Nino, which means "little boy" in Spanish, is driven by an abnormal warming of the eastern Pacific Ocean, and creates havoc in weather patterns across the Asia-Pacific region.
The Southern Oscillation Index (SOI), a key factor in identifying an El Nino that is calculated from monthly and seasonal fluctuations in air pressure between Tahiti and Darwin, eased in June to negative 2 from a negative 5 in May, the bureau said on Tuesday.
A sustained negative SOI often indicates El Nino, a condition that can bring drought conditions to Australia's farmlands, weaken the Asian monsoon critical for Indian crops, stir up storms in the Gulf of Mexico and cause flooding in Latin America.
"Minus 10 is an often used threshold level and it just got to there a few times, but it hasn't been sustained at that level," Sam Cleland, author of the Bureau of Meterology's weekly Tropical Climate Note, said on Tuesday.
"I don't think we'd make the call just yet that we have an El Nino event in place," he said ahead of the bureau's El Nino update on Wednesday.
Its last report said an El Nino was very likely in 2009 and may be declared in coming weeks. The last El Nino was in 2006.
David Palmer, a meteorologist at private forecasting firm the Weather Company says indicators suggest there is a 60 percent chance of an El Nino developing in August, the month when it usually can be determined whether the weather pattern exists.
"We've been suggesting for some time now that there is an El Nino developing but it is not until August that you can say that for sure," said Palmer.
"If I were a betting man I would be putting my money on it."
But Cleland said the Pacific trade winds, another key El Nino factor, had also weakened in June.
"The equatorial Pacific Ocean continues to develop into a more El Nino like pattern," said Cleland, manager of climate services at the bureau's Darwin office.
"To call an El Nino or not is difficult and it takes a number of parameters over a sustained period. The formal definition of an El Nino often occurs in hindsight," he said.
The last severe El Nino in 1998 killed more than 2,000 people and caused billions of dollars in damages to crops, infrastructure and mines in Australia and Asia. It came in the middle of the Asian crisis that roiled financial markets.
India, one of the world's biggest producers and consumers of everything from sugar to soybeans, is already experiencing a weaker annual monsoon. Its faltering sugar crop has helped drive world prices of the commodity to their highest in three years.
India's monsoon will remain weak according to the latest Madden-Julian Oscillation (MJO) index, which gauges the eastward progress of tropical rain, Cleland said. It was too early to get a read on the potential intensity of a new El Nino, he added.
"There's no strong indication at this stage of what level of impact this ENSO event could have," he said, adding that some weak El Ninos have had severe impacts on Australia rainfall, while stronger El Ninos have only had marginal impacts. (Additional reporting by Bruce Hextall) (Editing by Clarence Fernandez)
http://www.reuters.com/article/homepageCrisis/idUSSP373728._CH_.2400
Spl court for human rights violations
Jul 2009, 0051 hrs IST, TNN
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PUNE: The district and sessions court has set up an exclusive court to try cases related to human rights violations.
The court will be presided over by sessions judge Shalini Phansalkar-Joshi who holds the charge of designated judge under TADA. She also conducts criminal trials and decides on civil appeals and criminal revision petitions.
There are no pending cases of human rights violations, but the sessions court judge set up the new court in view of a notification issued by the state government on May 30, 2001
http://timesofindia.indiatimes.com/Pune/Spl-court-for-human-rights-violations/articleshow/4739073.cms
Top 10 reasons to invest in emerging market equities
7 July 2009
Bryan Collings, manager of the Ignis HEXAM Global Emerging Markets Fund, outlines ten reasons why it is more important than ever for investors to have sufficient exposure to emerging market growth.
He says, ‘The majority of UK and US investors only have approximately five per cent emerging markets exposure within their portfolios despite sound structural drivers and impressive market performance in these developing markets. It makes no sense to have so low an allocation to such a large and important asset class.’
Why emerging markets?
1. Drivers of global growth
Taken together, the emerging markets, including the Middle East, comprise the largest economic bloc, accounting for around 36 per cent of the global economy in terms of gross domestic product (GDP).
According to the International Monetary Fund's latest estimates, China is the single country that contributes the most to global economic growth, with Russia, Brazil and India also among the top eight contributors. Higher growth tends to lead to higher equity market returns.
2. Favourable demographics
Emerging markets represent approximately 75 per cent of the world's land mass and house more than 80 per cent of the global population. Most of the future population growth is expected to be in emerging markets, where the population is expected to grow five times as fast as in developed countries. This means emerging markets tend to have a high – and growing – proportion of young, skilled people.
3. A high and growing number of consumers...
By 2030 more than one billion people in emerging markets are forecast to join the ever-increasing consumer middle class. Currently, personal consumption in China accounts for only 37 per cent of GDP, compared with more than 60 per cent and 70 per cent in Europe and the US respectively. There is, therefore, scope for significant further spending.
4. ...with money to spend
The world's savings are concentrated in emerging markets, which hold 75 per cent of the world's total foreign exchange reserves. Emerging economies are less indebted than their developed peers at the country, company and individual level.
Importantly, banks in emerging market countries have emerged from the recent credit crisis relatively unscathed as they generally had little or no exposure to the ‘toxic assets' associated with the sub-prime mortgage fallout in the US. This provides strong foundations on which to build future growth.
5. Reduced dependence on developed economies
Emerging markets have a wealth of natural resources, including more than 90 per cent of oil and gas reserves, 70 per cent of coal reserves and 60 per cent of copper, nickel, iron ore and bauxite reserves.
‘South-south trade' (not involving developed economies) has proved resilient, and emerging markets are fast becoming the largest commodity consumers as the urbanisation process (linking urban and rural populations) continues apace.
6. Equity outperformance
Emerging market equities have outpaced their developed market peers both since the launch of the MSCI Emerging Markets Index in 1987 and over the past ten years, during which they have outperformed by an impressive 166 per cent.
7. Superior profitability
High GDP growth typically translates into higher return on equity (ROE). The profitability of emerging markets companies is superior to that of companies in developed markets.
8. Similar volatility; higher returns
Investment in emerging markets is often viewed as ‘more risky' than developed markets. Over the past ten years, however, a blended portfolio of emerging markets and developed markets exposure would have demonstrated a similar level of volatility but provided far superior returns.
9. Declining volatility
Volatility within emerging markets has actually been trending lower for years and has consistently remained within a narrower range than both the FTSE All Share and S&P 500 indices. During the recent crisis, emerging markets' volatility peaked at a lower level than that of developed markets, and subsequently dissipated more quickly.
10. Market capitalisation
Despite their dominance in terms of world population, land mass, foreign exchange reserves and GDP growth, emerging markets have just ten per cent of world equity market capitalisation. This has been growing over the past decade, and with it equity market returns have risen. This trend is likely to gather pace over the coming years.
http://www.whatinvestment.co.uk/making-money/alternative-investments/guides/1057232/top-10-reasons-to-invest-in-emerging-market-equities.thtml
BMC to set up rain water harvesting plants
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Stuti Shukla
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Posted: Tuesday , Jul 07, 2009 at 0628 hrs ISTMumbai:
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As the water shortage continues to plague the city despite heavy rains, the Brihanmumbai Municipal Corporation (BMC) has now turned to rain water harvesting. The civic body has taken up the construction of rain harvesting plants in 43 municipal locations across the city to meet the water scarcity.
At a cost of nearly Rs 30 crore, the construction of these plants will be carried out in two phases, with the first phase due for completion by mid-July. In rainwater harvesting, the water that falls on rooftops is collected and stored in tanks, borewells etc.
In the first phase, rain water will be collected and stored in tanks. The work for the second phase will begin in October whereby borewells will be dug to conserve rainwater. This will also help increase the water level in conventional wells. Municipal hospitals like Kasturba and Bhagwati already have a rainwater harvesting plant.
http://www.indianexpress.com/news/bmc-to-set-up-rain-water-harvesting-plants/486018/
Balasore: Fighting with scarcity and surplus of water
Report by Bikash Kumar Pati
With the century’s highest rainfall of June in last year and the century’s lowest rainfall of June this year, agriculture is at stake in Balasore. This raises serious concerns for a district where agriculture serves as the backbone of economy.
Sharing the ecology and economy of the coastal region, Balasore is one of the most prosperous districts of Orissa. Because of its geographical terrain and close proximity to sea, Balasore is crisscrossed with perennial rivers like Subarnarekha and Budhabalanga. There are also some smaller rivers like Jalaka, Kansabansa and Sono which make the district home. Spreading over a landmass of 3,706 square kilometers, Balasore has 2,69,630 Hectares of cultivable land, 78,164 Hectares of irrigated land and an 81 kilometer coastline. Depending upon an agrarian economy, the district has prospered well up to the height in past. But the recent change in climate added by human interventions creates panic among the farmers of the district, who are losing hopes for a secured livelihood.
According to records, monsoon normally comes up to the district on 14th June every year. The average rainfall of the undivided district is 1568.4 mm. Rainfall in the period of June to December constitutes nearly 75% of the annual rainfall of the district and the district experiences 62 rainy days in a year on an average.
With this gift of climatic favorability, farmers in most part of the district practice rain-fed agriculture. The process generally starts during the month of June. But since last year, a dramatic change is taking place in the climatic conditions of the district. Since 1901 till the present date, Balasore received century’s highest rainfall during June in last year. The rainfall during June this year is the lowest figure in June for the century. When in last June, the district was fighting with series of floods, this June the district struggled for every drop of water. The yearly average of rainfall for the last decade is given as under:
Year Rainfall during June (In mm)
Average 228.76
1999 233.08
2000 308.17
2001 300.1
2002 285.9
2003 292.03
2004 316.3
2005 199.4
2006 257.5
2007 285.2
2008 657.2
2009 30 (1st January-31st June)
SOURCE: HYDROMET DIVISION, INDIA METEOROLOGICAL DEPARTMENT
Since 1901, the highest rainfall in June crosses 400 mm in 1908, 1916, 1936, 1956, 1970, 1971, 1984, 1993 and 2001. In 2008, it was 657.2 mm, the highest of June since 1901. The second highest rainfall in June since 1901 is 583.53 in the year 1984. The lowest figure for June goes under 100 mm in 1905, 1942, 1964, 1969 and 1972. But this year, the figure available up to June 30 is a mere 30 mm, which is an all-time record. Rainfall in only June is much lesser than 30mm.
The impact of this change proved disastrous for the farmers of Balasore. The age old agricultural practice of the district is jeopardized due to unpredictable surplus and scarcity situations. The process of rain-fed agriculture depends heavily upon a suitable rainfall pattern. But the present inconsistency in the rainfall pattern is leading the rain fed agriculture towards an end.
Due to non reliance upon the rain-fed agriculture, people have rather started believing on high yielding irrigable agriculture, which basically depends upon ground as well as sub-surface water. Experiencing the heavy rain last June, the farmers of the district depended upon sub-surface water and ground water for the high yielding crop due to existence of many perennial water sources and coastal geography. The water sources are less recharged in surplus times and dries in scarcity times. In such a circumstance, this year, sub-surface and ground water have been also proven as the non reliable source for agriculture, as most of the sources started drying-up from the month of January itself. So the second option is also coming under the purview of threat. It is to be noted that the high yielding irrigable agriculture demands more water.
The probability of end of rain-fed agriculture in Balasore can not be denied in the present context. Looking at securing the livelihoods and enhancing adaptability to this climate change, the strategies need to be reviewed and implemented in practice.
http://www.orissadiary.com/ShowOriyaColumn.asp?id=13266
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