13-07-09

Mining – India 1
1. CM orders probe into mining scam 1
2. NMDC visits Japanese iron ore buyers to fix prices 2
3. Orissa would need 100 million tonne of coal per year 3
4. Jharkhand lost INR 407 crore mining royalty - CAG 4
5. Illegal dolomite mining takes zing out of Dooars tea 4
6. Sterlite to invest INR 20,000 crore in power capacity addition 5
7. Steel plants to soon get iron ore mining licenses 6
8. FIMI opposes coal blocks auction proposal 6
9. Closure of bauxite mine opposed 7
Mining – International 8
10. Australian Is Shot Dead Near a Mine in Indonesia 8
11. Zuma, Shabangu agree on mines 9
12. 3 rescued after 25 days in flooded China mine 10
13. Eastern Platinum terminates contract mining after underground sit-in 11
14. High hopes for uranium miners 11
15. Industrea secures Rio Tinto contract 14
16. Singapore top Asean nation to invest in India 16
17. China's big move into Latin America 16
18. Brazil's largest trading partner is no longer the US – it's China. Beijing is investing billions of dollars and filling a vacuum left by the United States. 16
Other News 20
19. ‘Forest Rights Act no complete benefit’ 20
20. Take up horticulture, YSR tells tribals 21
21. Climate, so change 23
22. Man killed over fight for drinking water in Haryana 23
23. Fires a reason to act on climate change: Gore 24


Mining – India

CM orders probe into mining scam

Sandeep Mishra, TNN 12 July 2009, 10:57pm IST

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BHUBANESWAR: Pushed against the wall by the Opposition onslaught over illegal manganese mining in Keonjhar district, chief minister Naveen


Patnaik has ordered a vigilance inquiry into the alleged mining scam involving Ram Bahadur Thakur Limited (RBTL).

The decision came in the face of BJP's demand for a CBI probe into the illegal mining allegedly being done by the private company in connivance with government officials.

BJP had earlier alleged that the private company was mining the area, although the state government had not granted it lease. The party had alleged in the Assembly that the company had even executed a power of attorney in favour of one Shakti Ranjan Das, violating the law.

After making much hue and cry over the issue in Assembly on Friday, the Opposition BJP as well as Congress have shown their intent to nail down the Naveen Patnaik dispensation over the rampant illegal mining being done in Keonjhar district.

While a BJP team led by its legislature party leader K V Singhdeo had visited the mining areas in Joda on Saturday, a delegation from Congress headed by leader of Opposition Bhupinder Singh toured the area to assess the ground realities.

Government officials said the chief minister has directed anti-corruption sleuths to find out whether any illegal mining was taking place in the area proposed to be leased to Ram Bahadur Thakur Limited or not, and, if so, who were involved in the illegal activity. The vigilance wing has also been asked to inquire the role of the director, mines, and other officers of the directorate of mines; and the authenticity of the power of attorney granted to Shakti Ranjan Das by RBTL.

Sources in the chief minister's office informed that the state government had in 1994 recommended to the Centre for grant of mining lease over 36 hectare in favour of RBTL and the latter had given its nod two years later. But the state government had thereafter not gone ahead with grant of mining lease to the company.

BJP, however, expressed its displeasure over the government ordering a vigilance probe instead of CBI inquiry into the Rs 4000 crore mining scam. "The state government is trying to suppress the scam by rejecting our demand. Vigilance is a tool of the state government, CBI investigation should be ordered to bring out the truth," said state BJP president Suresh Pujari.



http://timesofindia.indiatimes.com/NEWS-City-Bhubaneswar-CM-orders-probe-into-mining-scam/articleshow/4770001.cms



NMDC visits Japanese iron ore buyers to fix prices
Monday, 13 Jul 2009
A mission composed of India's governmental entities, such as MMTC and NMDC was scheduled to visit Japan on July 7th to negotiate iron ore prices for contract year 2009 with 5 Japanese steel companies.

With the major mission members being Mr Sanjiv Batra CMD of MMTC and Mr Rana Som MD of NMDC, the mission was to negotiate new iron ore prices with Nippon Steel, JFE Steel, Sumitomo Metals, Kobe Steel and Nisshin Steel during the period of July 8th to 10th.

5 year contracts are customarily concluded between Japan and India for the supply of iron ore. Current contracts cover 2006-10 and annual imports are set at between 3.47 million tonne and 6.75 million tonne.

NMDC is expected to negotiate 33% lower rates on iron ore fines and 44% on iron ore lumps following the global benchmark set by global mining firm Rio Tinto which has settled its 2009-10 long-term contract with Japanese steel mills at such discount.
http://steelguru.com/news/index/2009/07/13/MTAxOTk4/NMDC_visits_Japanese_iron_ore_buyers_to_fix_prices.html

Orissa would need 100 million tonne of coal per year
Monday, 13 Jul 2009
According to Mr Ashok Dalwai secretary of the state government's Steel and Mines Department, with Orissa rolling out its proposed steel and power plants, the state would require nearly 100 million tonne of coal additionally every year.

Addressing a gathering at Coal NEX that was organized by Confederation of Indian Industry, Mr Dalwai said “The state government has commitments in the shape of MoU with various investors for setting up power projects and sponge iron based steel projects. It has become necessary to arrange an assured supply of non coking coal to the tune of 210 million tonne per annum for these upcoming projects in Orissa.”

He said “Keeping the MCL's coal production in future years and availability of coal from captive coal blocks in view, additional 100 million tonne per annum of coal need to be produced within the state to meet the industry requirement in the state.”

Mr Dalwai said “Mr Naveen Patnaik CM of Orissa has drawn the attention of the PM for allocation of coal blocks with a reserve of 5000 million tonne, preferably in contiguous locations in favor of Orissa's PSU. The state government feels that the Central government may take immediate steps on government dispensation route to fulfill the requirement of additional 100 million tonne per annum of coal for the industrial growth of Orissa.”

Inaugurating the seminar, Mr Raghunath Mohanty steel and mines minister said that “Coal is the most exploited mineral from earth's crust. Odisha's production of coal has reached 98 million tonne a year.”

Mr Mohanty said “The state government has signed 21 MoUs on power sector for best utilization of coal reserves for an expected power generation capacity of 25970 MW and total investment would be around INR 100,8000 crore.”.

(Sourced from Kalinga Times Correspondent)

http://steelguru.com/news/index/2009/07/13/MTAyMDA2/Orissa_would_need_100_million_tonne_of_coal_per_year.html

Jharkhand lost INR 407 crore mining royalty - CAG
Monday, 13 Jul 2009
ET reported that the Comptroller and Auditor General of India has detected huge loss of revenue worth INR 407 crore to the Jharkhand government due to loss of rent, royalty, fees etc in the mining department.

The CAG, whose report was tabled in Parliament also points to gross financial mismanagement in different government schemes. According to the report, the department has accepted the loss worth INR 203 crore.

The CAG conducted test checks of the records of the 3 district mining offices between June 2007 and March 2008, in which it was found that 2.73 million metric tonne of coal was removed and dispatched during 2005-06 and 2006-07 by 6 collieries according to the monthly returns submitted by them.

The report said "The monthly returns of lessees were required to be scrutinized and verified by the mining officer with annual grade notification of coal issued by the Coal Controller which was not done. Non verification of the grades of coal resulted in short levy of royalty amount to INR 9.99 crore."

The report has also mentioned about loss of revenue due to downgrading of iron ore. Under the provisions of Mineral Transit Pass Regulations, 1976, if a lessee declared the mineral to be of inferior grade, he would have to produce a test certificate to that effect from the state geological laboratory, Hazaribagh and in case the lessee fails to furnish the test certificate within 60 days of the dispatch of mineral, it would be presumed that the dispatches have been of highest grade.

However, the test check of records of the district mining office Chaibasa revealed that iron ore of higher grade was extracted from the leased area on which royalty was paid by the lessees till some time.

(Sourced from Economic Times)

http://steelguru.com/news/index/2009/07/13/MTAxODk1/Jharkhand_lost_INR_407_crore_mining_royalty_-_CAG.html



Illegal dolomite mining takes zing out of Dooars tea
13 Jul 2009, 0006 hrs IST, Debasis Sarkar, ET Bureau

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SILIGURI: Despite diplomatic initiatives from both sides, illegal dolomite mining in Bhutan has become a major worry for tea gardens in the

Indian Dooars region. Bhutan has estimated reserves of nearly 13,500 million tonnes of dolomite.

The practice, a huge money-spinner, has become a major production hassle for more than 50 tea gardens in Dooars.

“Almost all gardens in Birpara, Banarhat or Kalchini areas are served by rivers with Bhutan at upstream. Rampant and illegal dolomite mining in Bhutan causes huge volume of dolomite-mixed debris to flow down and drench tea garden soil, affecting productivity,” said NK Basu, convener, Consultative Committee of Plantation Associations, West Bengal chapter. “The crisis increases manifold during the monsoon,” he added.

With around 0.3 mt production per annum, dolomite used to be a major export item of Bhutan to India during 60s. In the long run, large-scale open pit mining deposited huge volume debris on beds of all India-bound rivers, including Leesh, Gheesh, Torsha or Raidak severely decreasing their water retaining capacity.

Naturally, “now these rivers cause flooding of vast areas, including tea lands with dolomite-contaminated water every monsoon”, Mr Basu said.

According to tea experts, dolomite severely retards growth of bushes by altering natural pH value of the soil and increasing salinity. Some gardens from affected areas have reported nearly 50% production drop in monsoon as against their own annual average.

Several surveys or Indo-Bhutan joint initiatives could not resolve the issue.

“It had been discussed at length in the last Indo-Bhutan Border District Coordination (BDC) meetings too. But, the practice is still continuing,” said a member of the Indian delegation in the meet.

West Bengal ministers like Manohar Tirkey or Jogesh Burman, representing local areas as public representatives in the state Assembly, also expressed concern over the issue.

http://economictimes.indiatimes.com/Markets/Commodities/Illegal-dolomite-mining-takes-zing-out-of-Dooars-tea/articleshow/4770278.cms

Sterlite to invest INR 20,000 crore in power capacity addition
Monday, 13 Jul 2009
ET reported that Sterlite Industries is planning to invest INR 20,000 crore over the next year to create additional capacity of 4,500 MW. This will also mark the company's foray into commercial power generation. It part of the Mr Anil Agarwal promoted USD 6.5 billion Vedanta Group is setting up new power projects at Jharsuguda and Lanjigarh in Orissa with a combined capacity of 3,150 MW. It also plans to set up a 160 MW project at Rajpura Dariba in Rajasthan and another 1,200 MW project at Korba in Chhattisgarh.

Mr Anil Agarwal chairman of Vedanta Group said “The new initiative would be rolled out by Sterlite Energy, a 100% subsidiary of Sterlite Industries. SEL will function as the commercial power generation arm of the company. We are excited to enter the commercial power business, as we start our 2400 MW independent power project at Jharsuguda in Orissa. We can leverage our strength of building and operating power plants in India and also benefit from our mining experience. About 50% of the new capacity is expected to be sold on a commercial basis while the balance would be used for the captive metals business."

Sterlite with its 5 power plants in Orissa, Chhattisgarh, Tamil Nadu and Rajasthan has an installed capacity of 2009 MW. Currently, most of this capacity is used for captive businesses. With the setting up of the new power projects, the total installed capacity is expected to go up to 6,500 MW by 2010 and the total investment would reach INR 30,000 crore. It has already invested INR 9,000 crore in its power venture.

(Sourced from The Economic Times)

http://steelguru.com/news/index/2009/07/13/MTAxODky/Sterlite_to_invest_INR_20%252C000_crore_in_power_capacity_addition.html


Steel plants to soon get iron ore mining licenses
Monday, 13 Jul 2009
IANS cited Mr Virbhadra Singh steel minister as saying that India will speed up the process of granting iron ore mining licenses to various steel companies including South Korea's POSCO.

Mr Singh said "We are planning to almost double the production of steel and for that we have to speed up Greenfield projects."

Referring to POSCO, which has been waiting for 4 years to secure raw material for its proposed USD 12 billion plant in Orissa, he said "We are looking into the matter and will get this done as soon as possible. We are working with the state government to expedite the matter."

Mr Saroj Mahapatra POSCO India spokesman said "We are hoping something good will happen. POSCO has faced opposition in Orissa on the account of land acquisition.”

(Sourced from IANS)

http://steelguru.com/news/index/2009/07/13/MTAxODgz/Steel_plants_to_soon_get_iron_ore_mining_licenses.html

FIMI opposes coal blocks auction proposal
Monday, 13 Jul 2009
BS reported that the Federation of Indian Mineral Industries, the representative body of mineral industries in India has opposed the government’s move to auction coal blocks for captive mining.

In a memorandum to Mr Sriprakash Jaiswal minister of coal, FIMI highlighted that the auction process would drive up the cost of coal in the country unnecessarily and may render the block economically unviable, resulting in lost years before the block is forfeited. It has also termed auctioning as illogical.

FIMI in the memorandum said that “This is because of the very nature of the exploration geology and methods of estimation of reserves whereby the actual coal reserve may fall short of the declared tonnage despite the fullest exploration of the block. Further, auctioning of coal blocks may lead to the coal blocks being purchased by financially strong parties, who may have little or no expertise in coal mining.”

According to FIMI, a better model followed world over separates the activity of mining from the activity of coal consumption since each has its own specialization. The model recommended is to invite large, professional Indian and international mining companies possessing the necessary mining experience to apply for coal blocks and to allocate the same based on well laid out, transparent criteria. Shared allocation of blocks must be avoided.

It said “The country should not target short term gains by obtaining higher revenues through auction but should focus on the long term gains through early and efficient production of coal resulting in creation of jobs, development of backward areas and royalties to the government over and above a reasonable allocation fee which should be fixed at a level proportionate to the size of the block and which would exclude non serious players.”

(Sourced from Business Standard)

http://steelguru.com/news/index/2009/07/13/MTAxOTk5/FIMI_opposes_coal_blocks_auction_proposal.html

Closure of bauxite mine opposed
TNN 11 July 2009, 09:27pm IST
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LOHARDAGA: The Chhotanagpur Bauxite Workers' Union (CBWU), which is affiliated to the Indian National Trade Union Congress, on Saturday opposed


the closure of a mine 9625 of the Hindalco Industries Limited in the Pakhar bauxite plateau.

The meeting was held in the residential office of CBWU's central general secretary D P Sahu. Congress MLA from Lohardaga Sukhdeo Bhagat, senior vice-president of CBWU Sabeer Khan, district president of All India Youth Congress Nesar Ahmed and union leaders vehemently opposed the Union labour ministry's nod to Hindalco to close down the bauxite mine 9625 in the Pakhar plateau.

The union leaders had earlier staged a demonstration in March when the company issued a notice in this regard. It is feared that as many as 250 regular labourers would become jobless if the company goes ahead with its plan.

The CBWU leaders have decided to move court if the company refuses to listen to their appeal. The company will have to close all its mines and activities if it does not provide jobs to the workers of the 9625 mine, the CBWU general secretary said.

MLA Bhagat said that the company is cheating the government by giving wrong information about the bauxite deposits in mine 9625. The company has a total lease of 774 acres in Pakhar area while the mine under the closure threat is of less than 2 acres.

On the other hand, labourers, who had given their land to the company on lease, were employed in the company and not in the said mine. He said that some of the Congress MPs have been requested to raise the issue in the ongoing session of the Parliament even as the Union labour ministry has promised to review the matter.


http://timesofindia.indiatimes.com/NEWS-City-Ranchi-Closure-of-bauxite-mine-opposed/articleshow/4767013.cms

Mining – International

Australian Is Shot Dead Near a Mine in Indonesia
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By THE ASSOCIATED PRESS
Published: July 11, 2009
JAKARTA, Indonesia (AP) — An Australian working for the Freeport mining company in Papua Province was shot and killed Saturday, possibly by a sniper, the police and company officials said.
The shooting happened near the Grasberg site, one of the world’s largest open-pit mines, where two Americans were killed in an ambush in 2002.
Papua, a desperately poor and militarized province on Indonesia’s easternmost tip, is home to separatist rebels who denounce the huge mining operation as a symbol of the Jakarta administration.
The national police identified the victim as Drew Grant, a mining technician, according to Agence France-Presse.


Zuma, Shabangu agree on mines
BUDDY NAIDU Published:Jul 13, 2009
________________________________________
PRESIDENT Jacob Zuma and Mining Minister Susan Shabangu have poured cold water over calls for the country’s mines to be nationalised.
• ANC rejects call to nationalise mines
• Nationalise SA’s mines: Malema
Though both have encouraged debate on the issue, they have unequivocally said that such calls run contrary to policies adopted by the ANC since 1994.
Speaking at L’Aquila in Italy on Friday, where he was attending the G8 summit, Zuma was quoted as saying: “There’s nothing to be worried about.”
He said: “It’s a point of debate, that’s all. The outcome of this debate and the implications that it will hold for ANC policy will be determined by how the debate proceeds.”
Speaking to The Times on Friday, Shabangu said the debate about nationalisation was an old one in the party.
She said: “The party took a conscientious decision [post democracy] and these policies which were generated are guiding us.”
Shabangu said nationalisation was an “ideology … but, for now, it’s not our guiding principle”.
But The Times understands that senior government officials remain annoyed about the lack of transformation in the sector and about being dictated to by the major mining companies.
Senior party leaders are also split over the call for the nationalisation of the mining industry, which was first made by the ANC Youth League and is now supported by Cosatu.
The events of the past week, in particular, have left a bitter taste.
Shabangu is reportedly annoyed that she only learned about Xstrata’s proposed £40-million (R5.3-billion) merger with Anglo American through the media.
On Friday, she said: “We don’t want to read in the papers about what they’re doing. Both companies will continue to brief us … because the final transaction will have to be tabled before our department.”
Xstrata then rubbed salt into the wound by seeking a meeting with Zuma, to brief him about the deal.
However, its chief executive Mick Davis was referred to Shabangu, whom he met for an hour on Wednesday morning.
Late in the week, Shabangu also called for the installation of a black chairman at Anglo, with Cyril Ramaphosa being touted as the frontrunner and the government’s preferred choice.
However, hours after Shabangu’s statement, Anglo announced the appointment of Briton Sir John Parker.
The move was roundly criticised by the unions, black business and Shabangu’s director-general, Sandile Nogxina, who said he was “very, very disappointed”.
Early last week, the ANC finally caved in to the demands of its alliance partners to open debate on the issue.
The party said it would open the debate on nationalisation but insisted legislation already existed that “reverts the ownership of mineral deposits to the state”.
But the party’s youth league president Julius Malema said: “We are vividly aware of the Minerals and Petroleum Resources Development Act, which retains state control of all mineral rights.
“But what we are calling for is state ownership and control of both the mineral wealth beneath the soil and [of] the extraction and production of these mineral resources in mines.”

3 rescued after 25 days in flooded China mine
54 minutes ago
BEIJING (AFP) — Three miners were rescued after 25 days trapped in a flooded mine in southwest China chewing on coal and drinking filthy water, local media have reported.
The three were hauled out of the mine in Guizhou province on Sunday, their faces black with soot and their eyes covered by a cloth to protect them from the light, the Beijing News and the official Xinhua news agency reported.
The Xinqiao coal mine flooded on June 17, trapping 16 miners underground, and rescuers had previously only found one body.
The miners -- Wang Quanjie, Wang Kuangwei and Zhao Weixing -- were trapped in a deep part of the mine that had protected them from the flood, according to the Beijing News report.
Rescuer Yang Sen, told the paper the three survivors had survived by drinking some of the remaining filthy water and had relied on the weak light still emanating from their lamps.
Once the rescue team had located the trapped miners, they were able to pump in air through ventilation shafts, the report said.
China's state-run central television broadcast images Monday of the three emaciated miners lying on makeshift beds, being treated by doctors in a building next to the mine.
Rescuers said the three were still lucid when they were pulled out of the mine and asked for water, the report said.
The local government was not immediately available for comment.
China's coal mines are notoriously dangerous. Official figures show that more than 3,200 workers died in collieries last year, but independent observers say the actual figure could be much higher, as many accidents are covered up.

http://www.google.com/hostednews/afp/article/ALeqM5hbVhY0FszjGW_3tvzhAQfy5ihAoA

ROCODILE RIVER
Eastern Platinum terminates contract mining after underground sit-in
Following a sit-in by underground contract workers at the Crocodile river platinum mine, which also involved supervisors being held hostage, the operating company for the mine is terminating its contract mining agreements immediately.
Author: Lawrence Williams
Posted: Sunday , 12 Jul 2009
LONDON -
Barplats Mines, majority-owned by Eastern Platinum (Eastplats), and the operator of the Crocodile River platinum mine in South Africa has served notice to terminate the services of its contract mining companies at Crocodile River with immediate effect. This follows the sit-in, and holding against their will of some supervisors, by contract miners who felt the company had reneged on a deal to employ them directly.
Crocodile River now plans to undertake all core mining activities itself and will seek to employ further workers directly to meet its total labour needs. This will require some changes in the current mining plan as the company will now need to assess the numbers of new employees to be taken on, and the skill sets necessary to return the mine to full output. The company will work in conjunction with the National Union of Mineworkers over the direct employment of all production personnel.
There is likely to be some impact on production as a result. During the sit-in period the plant continued to operate at full capacity using stockpiled material, and can continue to do so for another week and a half. Redeployment of some existing production staff from the Maroelabult section, which was unaffected by the labour problem and which provides 25% of mine capacity, will be necessary. This should enable the underground operations to operate at about 50% capacity until the new mining plan and employees are in place.
Meanwhile the company has laid criminal charges against those individuals employed by the contractor companies who were engaged in the illegal ‘sit-in', specifically in relation to safety and health transgressions and to the holding of other underground personnel against their will.
Crocodile River production is currently around 120,000 pgm ounces a year from the UG2 reef, so the changes will be likely to impact 2009 figures, although if the company can find the necessary new employees and re-instate a mining plan quickly this may not make a significant difference on planned production.
The dispute over contract mining has not been the first of its type in the platinum sector. Last year, for example, Aquarius Platinum's CEO, Stuart Murray, described the South African contract mining model in the platinum mines (at least as far as Aquarius was concerned), as well and truly ‘busted'. This led to Aquarius abandoning contract mining completely at its Everest operation while at its Kroondal and Marikana mines, the terms of the mining contracts were substantially renegotiated so as to provide the company with much more managerial control.

http://www.mineweb.com/mineweb/view/mineweb/en/page35?oid=86145&sn=Detail

High hopes for uranium miners
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PURE SPECULATION: Robin Bromby | July 13, 2009
Article from: The Australian
ONE step back, two steps forward for nuclear power over the past week.
A technical problem at one of Germany's reactors has sparked renewed concern in that country about the safety of nuclear energy, but at the same time the Italian parliament has just reversed a decision made 20 years ago to close that country's nuclear power plants. It appears the Italians are fed up with paying some of the highest electricity prices in Europe and have been sold on the idea that a few uranium-fed reactors might bring those down.
And the Russians are looking at building floating nuclear power stations. Constructed along the lines of the big offshore oil platforms, these would enable the stations to be sited near a big oil project or mining operation near the coast and then relocated after those are worked out. So, all in all, we're still excited about the growing use of nuclear power and its impact on uranium demand.
For the investor, it seems that it is a matter of getting one's head around a new phase: the speculative wave is over, and now we're looking for companies that actually have the prospect of putting some runs on the board or, as Kevin Rudd would put it, some detailed programmatic specificity.
Explorer Uranium Equities (UEL) has just signed its third deal with global uranium giant Cameco, a joint venture over the Rudall River uranium project in Western Australia, which happens to be just 25km from the huge Kintyre deposit now owned by Cameco (in partnership with Mitsubishi). This comes just a month after UEQ announced the start of drilling at Lake Blanche, South Australia, where Cameco is earning 51 per cent; there is a third joint venture between the companies in the Northern Territory.
The junior has another partner with deep pockets in Brazil's Vale, which is financing its uranium exploration in West Arnhem Land.
The people behind UEQ have a long history in the uranium business. MD Mark Chalmers used to run the Beverley uranium mine for Heathgate Resources while director David Brunt was the co-discover of the Honeymoon deposit in South Australia.
Another uranium cheapie is UraniumSA (USA), which got a little bump in May but has since been largely ignored, being capitalised at around $6 million. It did a presentation in Sydney during the week, stressing the location of its Mullaquana deposit (20km from Whyalla), the fact that it already has a resource (2700 tonnes of contained uranium) and the potential (it thinks it can prove up 10,000 tonnes).
The only downside (so far) is the average grade of 0.02 per cent U3O8. Offsetting that is the shallowness of the body, down about 50m from the surface.
Gondwana Resources (GDA) put out an interesting map showing a database of uranium occurrences in Western Australia as small black dots, then superimposing the positioning of the 11 areas it has under application for exploration licences; only three have no dots in them, but each is close to at least one dot.
The applications include Weaner Bore, 25km to the south of the 8000 tonne Manyingee deposit, which is owned by Paladin Energy (PDN), and Deep Bore, which was drilled in 1988 by the old CRA and returned hits of uranium, copper and zinc.
Golden opportunities
GOING in the other direction is Eromanga Uranium (ERO), which earlier in the year said it was realigning its exploration portfolio to place greater emphasis on gold. It then picked up a stake in the Nackara project near the old South Australian railway town of Peterborough, best known for its illustration of the absurdity of Australian railway planning in that, at one stage, its station yard had triple gauged track to accommodate broad, standard and narrow gauge trains.
Last month Eromanga bought the operating Georgetown alluvial gold mine with the potential, it said, to find another 45,000 ounces within the mining lease. And now it has the results of first exploration in South Australia -- a 450m-long gold anomaly with drill testing to follow.
Meanwhile, ABN Amro Morgans has done interesting technical analysis on valuing gold stocks. They worked out that the market capitalisation of North American majors Newmont Mining (NEM) and Barrick Gold are such that they would value unmined gold reserves at $270 an ounce.
Translating enterprise value per resource ounce (market capitalisation less net cash) the study shows that Andean Resources (AND) is the market leader with its Cerro Negro project in Argentina, due to the high grade, low production cost ($US100/oz), and cash of around $100 million. Next in ranking is Dominion Mining (DOM).
These two companies, surprisingly, have a higher enterprise value per ounce of what is in the ground than Newcrest Mining (NCM) but then Lihir Gold (LGL) manages only sixth place, behind Avoca Resources (AVO) and Kingsgate Consolidated (KCN).
The cheapest stock on this metric is Norton Gold Fields (NGF) due to its high operating costs, although the report notes it is moving to bring down the cash cost to about $750/oz over the next year.
ABN Amro said the two undervalued stocks which stick out are Intrepid Mines (IAU) and Resolute Mining (RSG), the latter with three producing mines. Intrepid's share price jumped 15 per cent on Friday after news that Vale is putting up $US40m ($51m) to buy a 60 per cent stake in the junior's Tujuh Bukit copper-gold mine in Indonesia.
Indian takeover
BACK in 2007, Kevin Nichol was managing director of the newly listed uranium explorer Bowen Energy (BWN). In that same year, he welcomed on board a key investor in the form of Bhushan Steel, India's third-largest steel maker.
Well, it's been a bit of a bumpy ride since then. First, the founding chairman Frank Farrell quit and went on to be an unhappy shareholder. Then Nichol departed last October.
This year it has been a tussle, essentially, between some of the original shareholders, including Nichol, against what they saw as the Indians taking control.
Nichol apparently got a sizeable number of proxies to oust the Indian directors and re-install himself, but at the recent meeting the company found grounds to disallow those proxies.
Then another meeting was called.
But Bhushan has clearly decided it's had enough of the locals and wants control of the coal and uranium explorer. So what better time than Friday evening, after everyone else has gone to the pub, to announce a bid for all the BWN shares it does not already own at 14c?
Tailenders
* ZINC tested support at $US1500/tonne on Friday night and Citigroup believes the downside risk is strong. But that should not be too much of a sleep wrecker at Terramin Australia (TZN) which in the second quarter got its cash costs down to about $US770 a tonne of payable zinc. Its Angas mine produced 16,187 tonnes of lead and zinc concentrates in the June quarter, 108 per cent up on the previous three months.
* THEY sure do have an appetite for political risk at Range Resources (RRS). On top of its big commitment to Puntland, a breakaway part of Somalia, the company is acquiring a 50 per cent interest in two oil and gas blocks in Georgia, Vladimir Putin's favourite must-invade ex-Soviet republic. As part of the deal with the vendor, RRS will appoint to its board Dr Mustafa Mutli who, among other qualifications, has a PhD in Economic and Social Upheaval from Istanbul University. At least he should know what to expect.
The Australian implies no investment recommendation and this report contains material that is speculative in nature. Investors should seek professional investment advice.

http://www.theaustralian.news.com.au/business/story/0,28124,25769415-18261,00.html

Industrea secures Rio Tinto contract




Queensland mining services company Industrea has tripled its long-wall mining equipment manufacturing capacity in the Hunter Valley, resulting in a $900,000 contract with Rio Tinto.
Industrea is now lined up to supply an underground mine grader for use in Rio Tinto’s Kestrel Coal Mine near Emerald.
Ongoing expansion has also resulted in consolidation of separate manufacturing servicing operations into new and larger premises in Thornton, NSW.
Industrea Managing Director and CEO, Robin Levison, pictured, says the new premises triple the company’s previous manufacturing capacity, allowing for continued strong growth in sales of the company’s market-leading mining safety and productivity equipment.
“Industrea has established a strong manufacturing and servicing base in the Hunter Valley, with the consolidation of operations at Thornton hugely benefiting our clients in the region. It will also help service our growing national and international orders from China, India, South Africa, Europe and the Americas,” he says.
“The new contract with Rio Tinto is illustrative of both successful product development and an expanded manufacturing capacity. The new, streamlined facilities are capable of satisfying the growing domestic and international demand from our blue-chip client base for the Industrea Mining Equipment (IME) range of products.”
The new premises bring Industrea’s operations closer to the centre of the Hunter Valley, making them more accessible to the region’s growing coal industry and related clients.
Offering more than 5,700 square metres of floor space, the location boosts the manufacturing and servicing capability for IME’s range of flame-proof and explosion-proof underground diesel vehicles.
Levison says recent contract wins to leading Chinese mining groups along with Rio Tinto Coal and BHP Billiton Mitsubishi Alliance prove the value of Industrea’s domestic manufacturing base.
“The Hunter Valley operations continue to win multi-million dollar contracts against tough international competition, including April’s order for long-wall roof support and shearer carriers for one of the world’s largest planned underground coal reserves in China,” he says.
“This demonstrates the ability of Australian manufacturing to compete on the world stage, and secure new export orders and grow jobs despite current economic conditions.”

http://www.qbr.com.au/news/articleid/57063.aspx


Singapore top Asean nation to invest in India


fe Bureau
Posted: 2009-07-13 09:01:12+05:30 IST
Updated: Jul 13, 2009 at 0901 hrs IST
New Delhi: Singapore continues to be the single largest investor in India amongst the Asean countries with FDI inflows into India rising to Rs 15,776 crore in 2008 from Rs 1,417 crore in 2005 .
Malaysia is a distant second with FDI inflows from there rising to Rs 453.8 crore in 2008 from Rs 21.3 crore in 2005 , according to a report on India-Asean Investment prepared by the industry chamber, Ficci.
The interest of these two nations and other countries in the Asean region is expected to get a boost when India and Asean sign the free trade agreement (FTA) next month and subsequently move towards a more comprehensive agreement facilitating investment between India and the region.
The Ficci analysis shows that while FDI inflow from Thailand actually came down from Rs 23.3 crore in 2005 to Rs 12. 9 crore in 2008, inflow from Indonesia rose from Rs 4.2 crore to Rs 24.5 crore.
What is noteworthy is that FDI from Myanmar, which invested a measly Rs 0.23 crore during the period August 1991 - December 2005, raised its stakes sharply in India with inflows shooting up to a whopping Rs 34.7 crore in 2008.
Inflows from the Philippines actually dropped from Rs 4.2 crore in 2005 to Rs 0.07 crore in 2008. During the two years, there was no FDI from Vietnam into India as also from Laos, Cambodia and Darussalam.
Sector-wise distribution of FDI inflows received from Asean countries (consolidated amount of seven countries) during between January 2000 and December 2008 reveals that the highest inflows have been in the services sector (financial and non financial), which accounts for about 30% of FDI inflows from Asean. Petroleum and natural gas occupies the second place followed by computer software and hardware, mining and construction.

http://www.financialexpress.com/news/singapore-top-asean-nation-to-invest-in-india/488480/


China's big move into Latin America
Brazil's largest trading partner is no longer the US – it's China. Beijing is investing billions of dollars and filling a vacuum left by the United States.
By Tyler Bridges | McClatchy Newspapers
from the July 12, 2009 edition
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RIO DE JANEIRO - All but invisible in Latin America a decade ago, China now is building cars in Uruguay, donating a soccer stadium to Costa Rica, and lending $10 billion to Brazil's biggest oil company.
It's supplanted the United States to become the biggest trading partner with Brazil, South America's biggest economy.
China has moved aggressively to fill a vacuum left by the United States in recent years, as the US focused on wars in Afghanistan and Iraq and the global economic crisis sapped its economy.
"China is rising while the US is declining in Latin America," Riordan Roett, a professor of international relations at Johns Hopkins University, said by telephone while São Paulo. "China is all over this region. They are following a state-driven policy to expand their peaceful presence."
MANDARIN SPOKEN HERE
China is beefing up its embassies throughout Latin America, opening Confucian centers to expand Chinese culture, sending high-level trade delegations throughout the region and opening the door for ordinary Chinese to visit Machu Picchu, Rio, and other tourism hot spots.
Aiping Yuan came to Rio de Janeiro from Beijing in 1997 on a lark, fell in love with the city, and decided to stay. She studied Portuguese, and when Brazilian President Luiz Inácio Lula da Silva made his first visit to China in 2004, she opened a small school in Rio to teach Mandarin.
She began with six students and today has 300, including senior executives at Petrobras, the country's biggest oil company, and Vale do Rio Doce, the biggest mineral producer. Both have growing business with China.
"Chinese is the language of the future for Brazil," Yuan said with a big smile.
China has forged a strategic alliance with Brazil that's allowed the two countries to partner with India and Russia in the so-called BRIC grouping, which is demanding a greater voice in global political and economic affairs. Indeed, China is making inroads with developing countries worldwide.
RESOURCES SHOPPING
Beijing's main interest in Latin America has been guaranteeing access to the region's raw materials – principally oil, iron ore, soybeans, and copper – to fuel its continued rapid growth. For many countries, there's a downside in the China trade, through which cheap imports have displaced local textiles.
China's growing role has alarmed policymakers in Washington. However, China has been careful not to establish a military presence in the region, since doing so would antagonize Washington. The US has considered Latin America to be in its sphere of influence since the Monroe Doctrine of 1823.
China "treats [Hugo] Chávez as they do [Álvaro] Uribe and Lula," said Alexandre Barbosa, a consultant to the São Paulo-based consulting firm Prospectiva, referring to the presidents of Venezuela, Colombia, and Brazil, respectively. "They're interested in business."
And what a voracious interest in business they've shown. Trade between Latin America and China rocketed from $10 billion in 2000 to $140 billion in 2008. China is buying zinc from Peru, copper from Chile, and iron ore from Brazil. It's shipping electronic equipment to Brazil, buses to Cuba, clothes to Mexico and cars to Peru.
THE PERUVIAN CONNECTION
Peruvian President Alan Garcia is trying to position his country as a major commercial hub for China in South America. He's hoping to capitalize not only on Peru's ports in the center of South America but also on a shared history: Thousands of Chinese emigrated to Peru in the 19th and early 20th centuries to do manual labor. These immigrants have left a legacy of the so-called "chifa" restaurants, which offer Chinese food throughout Peru.
Today, China's biggest appetite is for Peru's plentiful minerals.
Two Chinese companies are moving forward with major mining projects in Peru while companies from other countries are suspending or canceling theirs, said John Youle, the executive president of ConsultAndes, a Lima-based firm.
China generally has been investing little money in Latin America, however. This has prompted criticism that it's simply tapping into the region's vast raw minerals, just as colonial powers did for centuries.
Although China has become a major player over the past decade, trade between the United States and Latin America still dwarfs China's trade with Latin America.
CHINA HAS CASH TO LEND
Beyond trade, China suddenly is rivaling the World Bank and the Inter-American Development Bank as a major lender to Latin America, at a time when China is flush with cash and many companies can't get access to bank loans.
Petrobras is borrowing $10 billion from China, to be paid off by shipping 150,000 barrels of crude per day to China this year and 200,000 barrels per day for the next nine years, said Erico Monte, a Petrobras spokesman.
Ecuador is borrowing $1 billion from China to finance investments by its state oil company and another $1.7 billion to build what would be the country's largest hydropower dam.
Venezuela is buying high-tech oil-drilling platforms from China and is sending some 380,000 barrels of oil there per day as Chavez diversifies Venezuelan exports away from the United States, his chief nemesis.
"But China has shown little enthusiasm in becoming entangled in Chávez's larger goal of counterbalancing US influence in the hemisphere," Dan Erikson, a Latin American expert at the Inter-American Dialogue, a nonpartisan research center on Western Hemisphere affairs, wrote recently.
CHINA DEMANDS LITTLE IN RETURN
Mr. Erikson said China was especially attractive to Latin American leaders because of its no-questions-asked foreign policy.
"The United States talks about the need for a battle against corruption, the need for transparency and improved human rights," Erikson told McClatchy. "China is less ideological in its approach to Latin America than the US is."
Still, China uses its aid as a strategic tool to get countries to shift their diplomatic ties from Taiwan to the communist nation.
After Costa Rica became the first Central American country to establish ties with China, the communist country bought $300 million in Costa Rican bonds. More important to average Costa Ricans, China is spending $74 million to build a new national soccer stadium in San Jose. It's scheduled to open in 2011.
Not everyone in Latin America welcomes China's growing presence.
Chinese companies are taking business away from Mexican firms that exported clothes to the United States.
Peruvians have tried to block the expansion of a Chinese mining project near the border with Ecuador that they say would pollute local rivers.
China has angered Brazilian companies by taking their place as the biggest exporter of clothing and textiles to Argentina.
Whether it's seen as a friendly uncle or a ruthless competitor, China's continued expansion in Latin America seems inevitable.
EBX is expanding its port in Rio de Janeiro state to handle Brazil's iron ore exports to China and has signed an agreement with China's Wuhan Iron and Steel to build a mammoth steel plant next to the port.
In May, Lula made his third trip to China, spotlighting the fact that China has become Brazil's biggest trade partner.
The development surprised Rodrigo Maciel, the executive secretary of the Brazil-China Business Council, based in Rio.
"We weren't expecting China to pass the US as China's biggest trading partner until 2011 or 2012," Maciel said.

http://www.csmonitor.com/2009/0712/p06s10-woam.html


Other News


Andhra Pradesh – Visakhapatnam


‘Forest Rights Act no complete benefit’


Special Correspondent
Many questions unasnswered, says NGO leader
VISAKHAPATNAM: Even as the Y. S. Rajasekhara Reddy has commenced distribution of title rights to Girijans over the lands they are cultivating, under the Recognition of Forest Rights Act 2006 and is scheduled to participate in a major programme at Paderu in the district on Sunday to distribute 40,000 acres of land in the Visakha Agency area, there are some questions that remain unanswered.
One is that less than 2,000 acres of land has been identified for distribution in the three mandals where the bauxite mining would take place and the other is how best the survey has been done. Another important point is that the 2006 Act would only allow a Girijan family to cultivate the land without hindrance forever but it cannot sell or mortgage the land while under the earlier Forest Act of 1967 settlement pattas were given providing absolute rights to the beneficiary.
A total of 1.02 lakh acres under podu cultivation by 1.20 lakh Girijans have been identified in the district for distribution. Nearly 90,000 acres have been taken up in the first phase. As many as 10,771 beneficiaries cultivating 35,439 acres of land have been identified in Araku, Chintapalli and GK Veedhi mandals. But now only 608 beneficiaries cultivating 1,824.7 acres will get the title rights, while 10,163 beneficiaries who should get right over 33,615 acres of land have been kept aside or totally removed.
Tribals, NGOs and political parties allege that a huge number of beneficiaries have been removed because the Government does not want any problem when it actually takes up mining. However, Revenue officials said Girijan families would also be taken care as land in other areas is being taken up now.
Survey
Executive Director of Samata, a NGO, Ravi Rebbapragada adds a couple of points. He says the survey done for distribution was not done in a proper manner. Cultivation is mostly on hill slopes and the survey staff did not bother to climb the slopes and measure the land exactly. In the new Act the maximum extent of land given to a farmer is four hectares while larger extents are allowed in the 1967 Act.
Mr. Ravi says there is a legal tangle involved. In the past after the Forest Settlement Officer identified 15,000 farmers to receive 65,000 acres under the old Act, the Forest Department moved the District Court and the court ruled that the process should be started again. This case is yet to be decided.

http://www.hindu.com/2009/07/12/stories/2009071255220600.htm



Andhra Pradesh - Visakhapatnam


Take up horticulture, YSR tells tribals

Special Correspondent
Hikes daily wage for NREGP works from the current Rs.100 to Rs.120
— Photo:C.V. Subrahmanyam.

ONE OF MANY: Chief Minister Y.S. Rajasekhara Reddy unveiling a plaque to mark the foundation for the Rs.2..65-crore Sujanakota-Duduma road in Paderu in agency area of in Visakhapatnam district on Sunday.
PADERU (Visakhapatnam Dist.): Announcing enhancement in daily wage for works of National Rural Employment Guarantee Programme from the current Rs.100 to Rs.120 (originally it was Rs.80), Chief Minister Y.S. Rajasekhara Reddy on Sunday exhorted tribal farmers to shun ‘podu’ cultivation and go for horticulture and other remunerative crops on the lands for which permanent pattas were being given under the Recognition of Forest Rights Act. Struggle for these rights started way back by revolutionaries like Alluri Sitaramaraju and those struggles bore fruit under the Congress regime, he said.
It was a historic day, he said, pointing out that the RFRA was enacted by the UPA Government, headed by Prime Minister Manmohan Singh. There were many hurdles but they were overcome. Addressing a well attended Girijan sadassu, the second of its kind, the Chief Minister said that in all pattas for 12 lakh acres were proposed to be given to three lakh tribals families under the RFRA. So far 1.03 lakh tribal families were given pattas for 5.08 lakh acres. The entire programme would be completed by the end of this month, he said.
Announcing that the number of days of work under the NREGP was proposed to be increased to 150, the Chief Minister said he had directed the Collector and SP to ensure that no tribal should say that he had no work to do. Some youth were attracted to extremist path because there was nothing to do. His Government was able to bring them back to the mainstream, he said. There are 6000 vana samrakshan samithis in the State and each would be given Rs.6 lakh a year. This would also help improve the lot of tribals, he said. Dr. Reddy said that his Government was committed to making every tribal a ‘lakhpathi’.
In his 15-minute speech Dr. Reddy also announced some sops to non-tribals who had settled in the tribal areas long back. He said that the sites on which houses were constructed by non-tribals would be regularised. This would be applicable to all non-tribals in the Assembly segments of Paderu and Araku.
Earlier, the Chief Minister formally launched the Rs.349 crore Coffee Project, jointly under taken by the NREGP, Coffee Board and Integrated Tribal Development Agency, Paderu, He had also laid foundation stones for a Protetced Water Scheme, Girls Junior College Residential Buildings, R&B Roads. He had distributed loans to members of self help groups. Presiding over the function, the Tribal Welfare Minister, P. Balaraju thanked the Chief Minister for fulfilling the long pending demand of tribals that had made them land owners. Ministers Kanna Laskhminarayana, P. Ramachandra Reddy, local MLA Siveri Soma, ZP chairman Ramamurthy Naidu, Collector, J. Syamala Rao and SP, Akun Sabharwal and others were present.

http://www.hindu.com/2009/07/13/stories/2009071356320600.htm


Climate, so change


The Financial Express
Posted: 2009-07-13 22:08:44+05:30 IST
Updated: Jul 13, 2009 at 2208 hrs IST


: The climate change stalemate between developing and developed countries is enough to make a pessimist out of anyone. Long years ago in the late 1980s, Margaret Thatcher (in a move that hasn’t got nearly the recognition it deserves) became one of the first global leaders to raise a global warming alert. When the Kyoto Protocol was signed nearly a decade later, then US President George W Bush refused to submit the treaty for Senate ratification because it exempted countries like India and China. The understanding, shared by UNFCC, was that the largest share of global emissions of greenhouse gases historically originated in developed countries. An equitable framework for “common but differentiated responsibilities” would naturally allow for developing countries to increase emissions to meet increasing social and developmental needs. Following from this principle of equity, India has repeatedly reiterated that since climate change is not taking place due to current emission levels alone, industrialised countries must make extra commitments that reflect their greenhouse leads. While refusing a reduction target for developing countries at the L’Aquila G-8 meeting as at previous such forums, it proudly flaunts a unilateral commitment not to allow per capita greenhouse emissions to exceed the average per capita emissions of developed countries. Morally, that’s strong ground. The argument of history is ethically indefensible. But since history offers none of us any protection from the battering of climate change, we will have to work a way around the current stalemate. The sooner the better.
Even as the G-8 was agreeing to cut greenhouse gas emissions by 80% by 2050 (base year is still unclear), there came fresh news of climate change’s unanticipated side-effects. Science reported that as winters on Scotland’s Soay island are becoming shorter and milder, they are making food more abundant for native sheep. So, smaller and smaller sheep—which would never have survived to maturity in times past—are winning the struggle for survival. That’s just luck of the draw. By all accounts, India is not likely to do well by it. Extreme weather events like droughts and floods are all expected to increase. We will need all available scientific arsenal to cope with these developments. It would be foolhardy to assume we can home grow such a battery. The US department of defence alone spends $79 billion on internal R&D. That puts, forget us, even the British armed services’ $4-billion budget looking like dirt. These militaries are in serious search of new alternative fuel sources. Stimulus packages are also pouring money into green R&D. Then there are efficient and energy conserving technologies that countries like Japan have already mastered. Incidentally, whatever the broader economy numbers say, Japan’s homebuilder Sekisui expects sales of small houses powered by sunlight to rise five-fold in two years. India recognises the need for climate-friendly technologies. In coming months, what it may have to adjust to is the idea of paying for these, perhaps in the shape of emission concessions. Whatever morality may demand, it doesn’t look like they are coming to us for free.
http://www.financialexpress.com/news/fe-editorial-climate-so-change/488382/0

Man killed over fight for drinking water in Haryana

Jyoti Kamal / CNN-IBN
Published on Sun, Jul 12, 2009 at 16:08 in India section

Chandigarh: The water shortage in most of the parts of India has now moved from being an agricultural crisis to becoming a social issue.

In first of its kind of case in 80 years in Jajunpur village in Haryana, a TV mechanic Karn Singh was brutally killed by his neighbour after they got into an argument on taking water from this public borewell.

Karn's wife Kusum is still in a daze.

“The fight was over filling water. First they had a fight with my brother-in-law and when my husband came home, they killed him,” says Kusum.

The villagers usually fill water from the borewell, when power is supplied for an hour everyday. On Friday when Karn's brother went to get water he found that the accused, Naresh had illegally attached a pipe to the borewell.

“They didn’t let my brother fill water even for drinking purpose,” says Karn’s brother Rajesh.

An argument ensued and later in the night Naresh and eight other men attacked Karn's house.

“There was a fight over water which intensified and led to the killing of one person. We have registered a case and are investigating,” says SHO Dhand Police Station Jagbir Singh.

The missing monsoon has left Haryana parched, the fields are dry and Karn's murder highlights how the scarcity is bringing out the worst in people.


http://ibnlive.in.com/news/man-killed-over-fight-for-drinking-water-in-haryana/96951-3.html

Fires a reason to act on climate change: Gore

Posted 1 hour 23 minutes ago
Former US vice-president and environmental activist Al Gore says Victoria's recent bushfires underline the importance of a global deal on climate change.
The climate change campaigner is in Melbourne, where he is supporting the Federal Government's push to implement an emissions trading scheme.
Mr Gore says Australia's own experience with bushfires, floods and cyclones shows why a global deal on climate change is imperative.
"What they do say again with increasing force is that the odds have been shifted so heavily that fires that used to be manageable now threaten to spin out of control and wreak damages that are far beyond what was experienced in the past," he said.
"The planet now has a fever.
"If you have a young child with a fever, you go to the doctor. If the doctor tells you ... you have to take some serious medical action, the typical response from parents is not 'well I was listening to a commentator on the radio the other day and I think you're wrong doctor.' You may ask for a second opinion, and that's what the world has done."
Mr Gore was helping to launch a new organisation called Safe Climate Australia that wants to link science, business, government and the community to press the case for a national response to the challenges of climate change.
"It is an emergency. We really do have to act," he said.
Mr Gore had been speaking at a conference in Melbourne to train 300 people from across the Asia-Pacific region as climate ambassadors.
"When a sheep farmer talks to other farmers, when a firefighter talks to other firefighters, the word spreads," he said.

http://www.abc.net.au/news/stories/2009/07/13/2624a511.htm