Sep 21, 2009

News Scan 21-09-09

Mining – India

1. Nalco achieves 100% capacity utilization in depressed market
2. Uranium mining keeps Meghalaya on toes
3. Revenue from mines at Rs. 19 crore
4. Foreign companies seek equity in return for coal
5. Coal India vets EoIs from 52 global firms
6. India's state-run Nalco plans foray into copper, coal
7. Bundelkhand may strike it rich with new minerals

Mining – International

8. Gold Prices Slip Below $1,000 Under Pressure From US Dollar, IMF To Reduce Gold Reserves
9. Australian mineral sands miner steps up Indonesian activity
10. China's Mineral Monopoly
11. Henan accident has prompted immediate coal mine closures

Other News

12. Tech IT: Andhra finds tools to plug NREGA loopholes
13. Congress finds big graft in NREGA
14. High growth to counter corruption
15. India generates 150 million tonnes of waste per day
16. 13-year-old Indian to address UN climate change summit

Mining – India

Nalco achieves 100% capacity utilization in depressed market

20 Sep 2009, 2007 hrs IST, Nageshwar Patnaik , ET Bureau


BHUBNESWAR: The blue chip Navaratna public sector aluminium giant has achieved 100% capacity utilisation in Alumina Refinery and Smelter and also

has met the sales targets in the last fiscal despite the adverse market conditions.

The Company has achieved a record turnover of Rs.5631 crores against Rs.5576 crores during the previous year. The net profit, however, declined to Rs.1272 crores from Rs.1632 crores in the previous year mainly due to lower realization because of global recession.

Addressing the 28th Annual General Meeting here on Saturday, Nalco chairman and managing director, C R Pradahan admitted that the company has taken a beating due to the depressed prices in aluminum.

“The second half of 2008 saw the collapse of aluminium prices which forced many companies to either curtail production or close down smelters. Most of the Indian aluminium producers have been severely affected by the falling LME prices and resultant lower operating margins. The domestic Aluminium consumption, which was to grow at 8% in line with GDP growth, in the year 2008-09, has achieved a meager growth of 3.4%. Some of the domestic producers have cut production due to continuous fall in aluminium prices”.

The changing situation has forced the PSU) to make a foray into energy sector and move into other metals as parts of its diversification plan.

The “debt-free” company is in talks with Nuclear Power Corporation of India Limited (NPCIL) to set up a 1000 MW nuclear power plant in Orissa’s Ganjam district in joint venture, as a plan to emerge as an independent power producer, Mr Pradhan told reporters here on Saturday evening.

“Nalco will sign a memorandum of understanding (MoU) with NPCIL in this regard by first week of October this year,” Mr Pradhan said adding that the slump in demand of aluminium metal in the market caused by the global recession has exposed NALCO to vagaries of single commodity operations. “Hence we have decided to diversify into other sectors to insulate the company from similar adversity in future,” he said.

The aluminium metal price had suffered a downslide from US $ 3292 per tonne in September 2008 to US $ 1253 in February this year. The prevailing prices are at US $ 1900. The steep fall in prices of the metal led to decline in profit of the company to Rs 1272 crore in 2008-09 from Rs 1632 crore the previous year.

The company has started seeking mining leases and mineral concessions in South Africa and other African nations like Congo to venture into newer areas of operation through value addition.

Besides diversification, NALCO is also planning to venture into both upstream and downstream fields to leverage its strength in alumina and aluminium business in India and abroad. Accordingly, the company is pursuing an alumina refinery project in Andhra Pradesh and smelter plant in Jharsuguda in Orissa and smelter plants in Indonesia and Iran.

The company, however, has declared a dividend payout of 50% worth of Rs 322.16 crore


http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/Nalco-achieves-100-capacity-utilization-in-depressed-market/articleshow/5034667.cms

Uranium mining keeps Meghalaya on toes

Supratim Dey / Kolkata/ Guwahati September 21, 2009, 0:12 IST

The controversial uranium mining issue is keeping Meghalaya at tenterhooks.
With the 15-day deadline by the influential Khasi Students Union (KSU), asking the state government to revoke its decision to lease land to Uranium Corporation of India Limited (UCIL) came to an end on September 15 with the government remaining unmoved, the student body has decided to undertake protest demonstrations in the coming days.
The Meghalaya government had on August 24 had taken the decision to handover 422 hectares of land in uranium rich West Khasi Hills to UCIL on lease for 30 years to undertake the "pre-project developmental works."
"This is an unfortunate decision. Both the state government and UCIL are trying to mislead the people," Samuel Jyrwa, president of KSU, told Business Standard.
According to Jyrwa, KSU would not let the UCIL to undertake mining until and unless its concerns are fully addressed.
KSU is opposed to the uranium mining proposal on the ground that it would degrade environment and precipitate health hazards in and around the mines, Jyrwa said.
According to Jyrwa, "pre-project developmental works" were, in reality, "structural activities" by UCIL prior to undertaking uranium mining."
On the other hand, Lapang had recently made it clear that the government would not review the decision at any cost.
Meghalaya is the third uranium rich state in the country after Jharkhand and Andhra Pradesh. The state accounts for 16 per cent of India's uranium reserves, with deposits estimated to be around 9,500 tones and 4,000 tones respectively at Domiasiat and Wakhyn, both in West Khasi hills region.
UCIL, had to wind up its mining operations in Khasi Hills soon after it started in early 1990s due to fierce and violent tribal protests. It had mad a fresh application for uranium mining with the state government in 2001. The mining project, which was estimated at Rs 300 crore in 1990s, has now escalated to around Rs 825 crore.

http://www.business-standard.com/india/news/uranium-mining-keeps-meghalayatoes/370717/

Revenue from mines at Rs. 19 crore

Special Correspondent

MADURAI: The mines sector in the district has earned Rs.19.18 crore revenue during 2008-09 by way of royalty, Seigniorage charges, penalty and lease, according to officials.
Out of the revenue earned, the officials of the Geology and Mines department had apportioned Rs 8.83 crore to the respective panchayats in the district up to March 31, 2009 for their development activities.
At a review meeting, Collector N. Mathivanan directed the officials to be vigilant and ensure that unauthorised transportation of minerals was checked.
A joint team comprising the revenue, police, mines, PWD and TWAD had seized 39 vehicles up to August from different parts of the district as they allegedly indulged in sand mining. Speaking to The Hindu, Deputy Director (Geology and Mines) J. Rajaram said that 311 vehicles were seized for unauthorised transportation of minerals and river sand during 2008-09. The officials had imposed fines and collected penalty of Rs 1.35 crore.
Apart from seizure of vehicles, 130 bullock carts were seized at different locations in the district as they attempted to lift river sand. Penal action had been initiated; Mr. Rajaram said and added that there were no PWD sand quarries in the district. In Vaigai river, sand quarrying operation had been banned and the requirement of sand for the district was met from other sources.
http://www.hindu.com/2009/09/21/stories/2009092150130100.htm


Foreign companies seek equity in return for coal

21 Sep 2009, 0113 hrs IST, MV Ramsurya, ET Bureau


MUMBAI: This could be a pointer of things to come. Owners of coal mines and other mineral resources, especially in overseas countries, are in

talks to buy equity stakes in user industries-such as power and metal companies-in return for assured long-term supply of minerals. The ownership-swap model also entails Indian user companies picking up equity stake in overseas mining ventures. ( Watch )

Companies based in the Gulf and mineral-rich countries such as Indonesia, Australia and South Africa are currently in talks with Indian firms to sell the model that mitigates risks and offers mutual economic benefits.

According to people involved in the negotiations, a couple of coal companies from Indonesia are talking to top five Indian power producers to offer them a 15-year supply of coal in return for equity stakes in their projects.

Middle East Coal, a Singapore-based company that owns mines in Indonesia, is talking to large Indian power companies, including Tatas, Birlas, Reliance Power and GMR, for the ownership-swap model. Middle East Coal vice-chairman Madhu Koneru, who was in Mumbai recently for the talks, said: “The (coal) supplies would typically be long-term so that power producers can focus on completing their projects and this would also keep costs down as the contracted price would be at cost level.” The company’s coal mines in the Kalimantan region of Indonesia have proven reserves of over 2 billion tonnes.

The move comes at a time when power producers are scouting globally to buy coal mines and have been facing problems in verifying the exact reserves as most assets are in remote provinces.

The high demand for coal and strong prices have affected supplies as miners have insisted on parice-escalation clauses. According to Union power secretary HS Brahma, the irregular coal supply has affected India’s power generation target of adding 78,577 mw by 2012 by almost 25%.

While Tata Power and Reliance Power officials, on record, said they haven’t had talks with foreign coal companies, they privately admitted they were keen to use all means to have an assured coal supply. A senior executive with GMR Energy said his company had been approached, but no final decision had been taken.

The supply of coal under the ownership-swap model, typically for 15-20 years, is at cost-plus-royalty price, which would be lower than the market price and would also be insulated from the extreme fluctuations seen recently. Coal prices have seen extreme levels, going from $70 per tonne in one month to about $120 in the next, and then falling back to $65.

“It’s a unique model that eliminates the risks for merchant power plants and eases the difficulties faced while building plants in phases,” said PricewaterhouseCoopers executive director and India utilities leader Kameswara Rao. “But the concerns include moves by countries such as Indonesia to fix a floor price at which coal can be shipped out from the country.”

http://economictimes.indiatimes.com/Metals-Mining/Foreign-companies-seek-equity-in-return-for-coal/articleshow/5035535.cms

Coal India vets EoIs from 52 global firms

Nandini Goswami / DNA
Monday, September 21, 2009 2:15 IST

Kolkata: Coal India Ltd (CIL) has formed a high-powered committee to scrutinise expressions of interest (EoIs) submitted by the 52 shortlisted global mining companies for a strategic partnership in mines in Australia, Indonesia, US and South Africa.


CIL will decide on the level of participation of these companies, which, it said, could be through three routes -- it can be either a joint venture agreement, an outright purchase or it may form a joint venture to jointly scout for mines.
The "first level" of scrutiny will take a couple of months and a clearer picture would emerge by December.
A senior official of Coal India told DNA, "We would go through levels or stages. Coal India is now examining a specific format, which will be provided to all these companies who will make a presentation to us. The kind of partnership that we would want to enter would be decided on a case-to-case basis."
Although Coal India declined to divulge names, sources hinted that mining majors like Rio Tinto, BHP Billiton and Hancock Prospecting have evinced interest in partnering with Coal India.
"There is no uniform format in striking a strategic partnership. On a case to case basis, we will explore possible JV options or an outright purchase of an existing mine. We could also form a partnership for scouting properties," the official said, adding, "We could do away with a majority stake in a company if the mine, say, is in a running condition and so there could be an offtake agreement. For virgin greenfield projects, there could be equal partnership. Investment will be on the specific asset," he added.
Coal India, which had earlier thought of acquiring mines through a direct participation, has now switched over to the tendering mode, where most companies can participate.
Coal India's international activities gained momentum with the recent visit of its top brass along with coal ministry officials to Australia in the first week of September. Mining practices adopted in Australia is considered the model with involvement of large capacity sophisticated technology and its management.
Coal India, which is the world's largest coal miner, is keen on acquisitions of thermal coal assets globally to supplement its increasing imports in the long run and to plug any shortage in future.
Meanwhile, Coal India is also looking at setting up a wholly-owned subsidiary in Mozambique. CIL would have an 85% stake and the balance would be held by a Mozambique-based mining company.

http://www.dnaindia.com/money/report_coal-india-vets-eois-from-52-global-firms_1291838

India's state-run Nalco plans foray into copper, coal

Mon Sep 21, 2009 4:12am EDT


BHUBANESWAR, India, Sept 21 (Reuters) India's state-run National Aluminium Co Ltd (NALCO) (NALU.BO), plans a foray into the copper and coal businesses as it looks for ways to diversify, a senior company official told Reuters on Monday.
B.L. Bagra, the firm's finance director, said a team of Nalco officials recently visited the African nation of Congo to look at prospects in coal mines, and the company was also negotiating for a coal property in Indonesia.
"We are planning to enter into copper... copper mining, copper smelting and coal mining," Bagra said by telephone. "We are diversifying so that if one sector performs badly others will support it."
The firm would focus on copper mining and smelting for now, he added.
Nalco, India's third-largest aluminium maker, produced 361,262 tonnes of aluminium in the year ending March 2009.
The firm, which last week announced plans to invest in a nuclear power project as an independent power producer, is looking at prospects in coal mines in India and abroad, Bagra said.
"Other than coal properties for our captive power plant and smelter, we are looking for standalone coal mines," he said. (Reporting by Jatindra Dash; Editing by Clarence Fernandez)
http://www.reuters.com/article/rbssIndustryMaterialsUtilitiesNews/idUSBOM46743220090921

Bundelkhand may strike it rich with new minerals

Font Size -A+A

Tarannum Manjul
Posted: Sep 20, 2009 at 0220 hrs IST
Print Email To Editor Post Comments


Lucknow Caught in power play, poverty-stricken districts of Bundelkhand and Vindhyanchal regions in UP finally have something to cheer for. The Department of Geology and Mining in the state has found new reserves of some rare minerals in the regions.
The department is now waiting for a green signal from the Centre before it invites major industrial houses and companies to mine these minerals that could change the local economy. The new reserves have been found after explorations over the last three years.
The reserves include those of diaspore, pyrophyllite, feldspar, dolomite, rock phosphate and silimanite. Ram Bodh Maurya, the director of the Department of Geology and Mining, said: “These regions are already mineral-rich. But so far, we were not able to zero in on major reserves. We are now awaiting a nod from the Centre before we invite industrialists.”
Diaspore, one of the major components of aluminium ore bauxite, has been found in Jhansi, Mahoba and Lalitpur districts of Bundelkhand. Reserves of pyrophyllite, which is used in ceramics, talc and even insecticides, have also been found in the three districts.
Feldspar, a major mineral used in ceramic industry for fine-polishing and finishing, has been found in Jhansi. Rock phosphate, used in the fertiliser and phosphorus industry, has been found in Lalitpur.
Apart from Bundelkhand, large mineral reserves have also been found in the Vindhyanchal region. Dolomite, used in iron and steel industry, has been found in Sonebhadra. Silimanite reserves have been found in Sonebhadra and Mirzapur regions.

http://www.expressindia.com/latest-news/bundelkhand-may-strike-it-rich-with-new-minerals/519254/

Mining – International

Monday, September 21, 2009

Gold Prices Slip Below $1,000 Under Pressure From US Dollar, IMF To Reduce Gold Reserves



Gold futures broke below $1,000 earlier this morning as forex markets continued the trends of the past few sessions. The gold price has steadily pulled back since last Thursday saw futures reach $1,025, the decline has come as profit taking gripped commodity markets while the US dollar has begun to turn around following a sustained period of weakness.

The Comex December Gold contract fell as low as $996 from the opening price of $1,006, the price has now stabilised just above $1,000. Meanwhile the US Dollar Index has risen by ½% this morning to stand at 77.11, lead primarily by a weakening of both the Euro and Sterling.

News from the International Monetary Fund (IMF) may also weigh down the gold price this week. Over the weekend the IMF announced it would sell an eighth of its reserves to build its liquid assets, in order to provide funding support for the world’s weaker economies as the global recovery emerges at a varied pace. The International Monetary Fund approved the sale of 403.3 metric tonnes of gold.

Subsequent reports suggest the Chinese government may have an interest in buying the bulk of the gold that the IMF is offering. China has been increasing its Gold stockpiles over the past 12 months as they diversify their reserves.

In London this morning, UK listed Gold equities have generally been under pressure following the decline in the commodity price. Major International producer Randgold Resources (LSE: RRS) fell £1.30 to lose almost 3% this morning, Randgold is currently trading at £44.37.

Mid-tier precious metal operator Peter Hambro Mining (LSE: POG) have come under pressure dropping over 4% to trade at £8.80, while dual listed, Canadian based Yamana Gold (LSE: YAU NYSE: AUY) fared slightly better and are relatively unchanged on the day.

In London’s AIM market junior gold equities have also had a generally negative session far today. Fijian operating Vatukoula Gold Mines (AIM: VGM) and West African gold producer Cluff Gold (AIM & TSX: CLF)were among the worst effected junior gold stocks both falling over 6% this morning.

Australian focused Norseman Gold (AIM & ASX: NGL) slipped around 3% today, while Solomon Gold Plc (AIM: SOLG), Avocet Mining (AIM: AVM) and Middle-Eastern based Centamin Egypt (AIM: CEY) all dropped 2%.

Elsewhere very few gold equities gained any ground, among them Uzbekistan focused gold miner Oxus Gold (AIM: OXS) added 2 ½% while Philippine focused explorers Metal Exploration (AIM: MTL) rose 1½%.

Shares in Canadian based junior gold developer Rambler Metals and Mining Plc (AIM: RMM & TSX- V: RAB) have held up, following news that it had extended its footprint in Newfoundland, Rambler remain unchanged on the day despite today’s weak sector.

Similarly Ariana Resources (AIM: AAU), Central China Gold (AIM: GGG) and Pan African Gold (AIM: PAF)were little changed.

http://www.proactiveinvestors.co.uk/companies/news/8351/gold-prices-slip-below-1000-under-pressure-from-us-dollar-imf-to-reduce-gold-reserves-8351.html

Implats mining deaths increase to 16 this year

Methane explosion claims another life


September 21, 2009

By Justin Brown

Deaths at Impala Platinum (Implats) mines this year rose to 16 on Friday after one of the group's employees died from injuries sustained in a methane explosion as industry experts decried the rising fatalities.

This fatality count gives Implats the worst safety record in the platinum mining industry so far this year.

Thirteen of the 16 mine deaths took place at the number 14 shaft at Implats's Impala Lease area near Rustenburg.

In the year to June, Implats reported 11 mine deaths.

On Friday Implats announced that Motinyane Molefe, a drill operator, passed away in hospital on Thursday. He was the second employee to die after a methane explosion the week before. Last Sunday Bongakale Motshodi, a scraper winch operator, passed away.

Jeremy Michaels, a Department of Minerals spokesman, said the fatality rate in the mining industry was "unacceptably high".

"The mine health and safety inspectorate is working hard to reduce the number of deaths in the country's mines," he said.

"The issue of health and safety in South Africa's mines is a top priority for the new Minister of Minerals, Susan Shabangu, and therefore, in line with this, the department is currently reviewing the operations of the mine health and safety inspectorate.

"Options to improve the current situation include amendments to the Mine Health and Safety Act, as well as bolstering the capacity of the inspectorate to better investigate accidents.

"We also intend to pursue the prosecution route when it comes to taking responsibility for the deaths of mineworkers and we are therefore exploring ways of employing our own pathologists to ensure successful prosecutions in court."



Implats said miner Vabohlongo Baatjie remained in a critical condition in hospital from injuries sustained in the methane explosion at the number 14 shaft at its Rustenburg operations on September 9.

"The cause of the explosion has not yet been determined. No further information can be released by the company until the investigation has been completed," Implats said.

The poor safety record is costing Implats dearly in terms of lives lost as well as revenue.

Another accident at the Impala Lease 14 shaft, in which nine people died, will cost about 150 000 ounces of production, worth more than R1.5 billion, over the next five years.

Last month Implats chief executive David Brown said 50 000 ounces of platinum output would be lost this year as a result of the closure of the number 14 shaft and adjustments made to safety.

A further 20 000 ounces of platinum a year would be lost over up to five years as a result of adjustments to mechanised mining at the 14 shaft. Brown said the adjustments would limit the Impala Lease area's production to 950 000 ounces a year for about five years.

The lost production could result in job cuts.

Implats shares fell 2 percent to R189.30 on Friday, valuing the company at R120bn

http://www.busrep.co.za/index.php?fSectionId=563&fArticleId=5172533

Australian mineral sands miner steps up Indonesian activity

Analysts say final zircon product from Kalimantan could be among the highest quality in the market
Author: Ross Louthean
Posted: Monday , 21 Sep 2009
PERTH -
Matilda Zircon Limited (ASX: MZI) has increased its profile on mineral sands production in Indonesia by entering a memorandum of understanding with local group PT Mammur Santosa Energi (MSE). The company already has a production beach head with a small zircon mining operation in Kalimantan.
Matilda director Michael Kiernan said today that the memorandum of understanding sets out the principal guidelines, rights and obligations to govern the relationship going forward.
"Ultimately Matilda and MSE will jointly own and operate mining projects in Kalimantan," he said.
PT MSE is an Indonesian mining company with various mining interests located in Kalimantan having strong commercial and government relationships.
The first project will involve four zircon rich KP's (equivalent to Australian mining tenements) and cover a total of some 15,000 hectares in central Kalimantan.
Initial indications "show potentially" between 9 to 12 million tonnes of zircon sands capable of providing processed zircon oxide in excess of 65% together with good gold credits.
The company claimed Kalimantan zircon was renowned to be amongst the world's best quality particularly with very low iron, low uranium and thorium.
The independent Perth-based mineral sands consultancy and publishing group TZMI reportedly indicated that, if processed correctly, final zircon product from Kalimantan could be among the highest quality in the market.
Kiernan said should due diligence prove successful it would be proposed to relocate the existing production facility from Sampit to central Kalimantan and begin on the new areas at an initial rate of 12,000 tonnes per annum, and doubling the capacity within 12 months.
The current commodity price for zircon was about $US900/tonne and projected to increase in 2010 to above $US$1,000/t, according to Matilda.
Operating costs for the new Indonesian project were expected to be about US$450/t and capital costs about A$6 million (US$5.16 M).
Matilda Zircon is developing a suite of mineral sands projects in the Northern Territory, Queensland and Western Australia.
The Company was formed through the combination of the mineral sands of Olympia Resources (ASX: OLY), with zircon assets formerly owned by Matilda Minerals which were acquired in 2009. Matilda's major shareholder is Australian resource developer Stirling Resources Ltd, managed by Michael Kiernan.
Matilda's most advanced project is on the Tiwi Islands in the NT, where it expects to start zircon production later this year. The Company also has a near term production project at Keysbrook in the south west of WA, due to commence operation in 2010/11.

http://www.mineweb.com/mineweb/view/mineweb/en/page72102?oid=89514&sn=Detail

China's Mineral Monopoly

Published: 21 September 2009
PRINT | EMAIL
The Middle East may control global oil supplies, but China has a hammerlock on the rare minerals vital to a modern economy, from cell phones and hybrid car motors to cutting-edge weapons.
Not satisfied with its own abundant stocks of these so-called rare earth oxides, China is moving to corner the world market by buying up mines worldwide, including recent acquisitions in Australia.
Other countries have ceded the market over the years for a variety of reasons, among them that getting these elements out of the ground is so environmentally devastating and potentially carcinogenic to the miners themselves.
That's why China today controls 98 percent of the world market at the very time these rare earths are in soaring demand. Neodymium, terbium and dysprosium are vital for high-power magnets; yttrium is critical for lasers; lanthanum for hybrid car batteries.
Now armed with its monopoly, China is jacking up prices by cutting production and exports and pressuring high-tech manufacturers to set up shop in China, where supplies are more plentiful.
The combination of rising costs and tighter control on exports, however, is alarming companies worldwide, including U.S. weapons makers and Pentagon officials.
Fearing that it could be unable to acquire critical technologies, the U.S. Defense Department has started assessing the implications of China's stance and is preparing to study, literally from the ground up, the origin of the raw materials and components that go into U.S. weapons and which nations touch them along the way.
As part of that assessment, U.S. government officials should consider the wisdom of potentially stockpiling rare earth minerals.
Every nation on earth faces the same significant challenge. While some shuttered mines will be reopened, it is unclear if that, plus new mines and deposits still to be found, might weaken China's monopoly position.
The question is whether China will continue to exploit its position, and what impact its policies will have on commercial markets and military systems.
The Pentagon is wise, then, to determine exactly how dependent it is on a nation that is increasingly recognized as a strategic global competitor and even as a potential future foe.
For now, China and the United States remain close trading partners and enjoy a symbiotic economic relationship. And should relations sour, it's not guaranteed vital trade would collapse. During the Cold War, the United States and Soviet Union mutually benefited from trade ranging from agriculture to strategic materials.
But it is critical the United States and its allies assess their options now - while such relationships are healthy, and before China's prices become economically and militarily unbearable.
http://www.defensenews.com/story.php?i=4286117

Henan accident has prompted immediate coal mine closures

Monday, 21 Sep 2009
It is reported that the gas explosion in a coal mine in central China Henan Province has prompted immediate mine closures in the Pingdingshan district a thermal coal producing region.

According to various media reports, with at least 36 people missing and 43 dead, the Henan provincial government has shut down all 157 mine shafts in the district.

Analysts were quick to reveal statistics on coal production from the area.

ANZ in a commodities report said the coal mines in the district had a combined production capacity of 60 million tonnes per annum.

Macquarie said the provincial government had cracked down on small mines in the province with production of less than 300,000 tonnes per annum that were operating without proper licensing.

Macquarie said Henan produced 111 million tonnes of raw coal for the year to July 2009, 7% of China total reported production.

(Source from International Longwall News)

http://steelguru.com/news/index/2009/09/21/MTEyODk1/Henan_accident_has_prompted_immediate_coal_mine_closures.html


Other News

Tech IT: Andhra finds tools to plug NREGA loopholes

21 Sep 2009, 0354 hrs IST, Pankaj Mishra, ET Bureau

CHEVELLA, ANDHRA PRADESH: Sanjeeva, a 26 year old landless peasant in Allawada village of Chevella district near Hyderabad, has never seen a

computer in his life, but since past few months he has been realising the benefits of a software solution, which has brought transparency and dignity for almost 11 million job seekers under India's National Rural Employment Guarantee Act (NREGA) in Andhra Pradesh (AP).

NREGA, India's most ambitious and flagship program to combat poverty launched around four years ago, has been criticized for lack of efficiency and corrupt execution by authorities such as the Comptroller and Auditor General of India (CAG). However, CAG has lauded NREGA implementation in AP because of the manner in which the state has leveraged IT for building a transparent and accountable system. Given the amount of commitment (almost Rs 40,000 crore allocated towards NREGA this year) for this program, an IT-led execution at the grassroot level could go a long way in ensuring success.

"Earlier, landlords and contractors used to pay around Rs 40-50 every day, and even that payment was done as an obligation to us," he says. "Now, I understand that using computer we are given wage slips and can demand any information anytime from the village officials--this thing has transformed our lives," Sanjeeva adds.

From the time a job seeker like Sanjeeva enrolls with a local village panchayat office, to allocation and monitoring of assigned work, leading to final wage payment, everything is registered and tracked using a software solution developed by India's biggest software exporter Tata Consultancy Services (TCS) in collaboration with AP government officials.

Bureaucrats and government officials involved with the project say the software solution has helped them nail the issues of corruption and lack of transparency very effectively. Moreover, an intelligent software platform also helps the officials work towards improving the average wage rates. Since, AP is able to track the progress of work through an automated system, the workers are paid based on amount of work they complete, independent of the number of hours they put in.

"We can now look at average wage rates across different types of works, and the apply the knowledge to improve wage rates in pockets where it's not healthy," said A Murali, director NREGS-AP. Over past few months the system has enabled AP to improve wage rates in Telangana districts from around Rs 30-40 to around Rs 80 by identifying relevant projects and assigning them accordingly.

The system, which is web enabled allows users such as Murali and other officials to sift through entire data including number of job cards issued across 22 districts and almost 21,857 village mandals, and identify the loopholes for addressing inefficiencies-just like a sophisticated enterprise resource planning (ERP) software used by many corporates.

"A single version of truth is what makes the difference, and that's where we have benefited immensely from this software solution," Murali added.
ndeed, even other states such as West Bengal, Bihar and Rajasthan have sought AP's help in deploying similar solution for improving their NREGA

programs. While some states are using a software solution developed by the National Informatics Centre (NIC), they are seeking help from AP for adding newer modules of work estimates and social audits.

However, unlike enterprise software systems, where users are more savvy, TCS had to design a solution that could connect with folks who may not have used any software applicationbefore. "From solution architecture to design, we had to keep the users in mind apart from addressing the networking and bandwidth challenges of rural networks," said V Rajanna, regional head for TCS' operations.

For Narasimhulu a 29-year old landless laborer in Allawada village, the new system also helps him manage his finances better and pay back debts.

"In earlier programs and while working for other farmers, we were paid a maximum of Rs 50 on a daily basis. Now, working on NREGA projects not only ensures better pay, but we are able to save more because the payment is done on a weekly basis," he says.

Meanwhile, like many other government-sponsored projects, sustaining the benefits of the system will depend on incoming bureaucrats and government officials after officers such as K Raju and Murali leave for other assignment.

"In many ways, you need project champions in the government machinery for ensuring the success of such programs," agrees Rajanna.

Developing a specific software solution has not been an easy task for engineers at TCS. Ravi K. Marri, TCS official working on the NREGA project in AP says new features and capabilities are being added every single day based on the feedback received from people in the fields.

"We are now running few pilots including a new system wherein SMS alerts are sent to vigilance officers every morning for them to verify the accuracy of reports during their daily rounds across the villages," he says. Ravi, who in his earlier assignment has served blue-chip customers such as Merril Lynch finds the new assignment more satisfying. "This assignment also bring some sense of social contribution."

As more rural folks embrace mobile telephony, the handsets could evolve as a powerful tool for empowering NREGA workers with more relevant and timely information.

Beyond obvious benefits of automation across the workflow and data intelligence for government officials, an IT-powered NREGA in AP is helping folks such as Sanjeeva and Narasimhulu not only raise their standard of living, but do that with certain amount of dignity.

"With a wage slip, savings account and access to all information, we feel we are also earning respect apart from better money," Sanjeeva says.

http://economictimes.indiatimes.com/news/politics/nation/Tech-IT-Andhra-finds-tools-to-plug-NREGA-loopholes/articleshow/5035767.cms

Congress finds big graft in NREGA

Dimapur, September 19 (MExN): The Congress of Phek today surfaced with an astounding and elaborate statement of figures about NREGA implementation in the area. A lengthy statement listing out anomalies, discrepancies and alleged corruption was reported by Job Card Holders as well as from a response given to RTI application by the Project Director and District Program Coordinator (DPC) of NREGA in Phek, on July 31, to the District Congress Committee of Phek. Mismanagement of NREGS for the financial year 2008–2009 has been detected at all levels, the DCC said.

Operational Violations
Listing out the anomalies, the Congress elaborated operational guidelines violated in implementing NREGA: with the exception of 2-3 villages, Job Cards are held by Village Development Board (VDB) secretaries; Job Cards are shown to card holders and taken back on the pretext of safe custody; it was also learned that VDBs kept the cards to cover up the excess or additional job cards registered under fictitious names and the benefits of which are enjoyed by them.
Also, the total number of available man-days for which funds were released was not disclosed to the job card holders – the priority objective of NREGS is employment guarantee to the unemployed. But the VDBs and VCs emphasised more on quantitative village development than giving employment to the unemployed; no contract works are allowed in NREGA but contract works were found allotted to NPF party functionaries; only unskilled labourers are to be employed, and cement concrete works which involves skilled workmen are not allowed in NREGA, but the Congress found that skilled labourers were employed in construction of RCC retaining and protection walls.
Likewise, heavy machineries such as bulldozers and land excavators were used under the pretext of village development. “In many villages the VDBs and VCs imposed its dictate on Job Card holders and more than 2/3rd of the total wage component was spent on hiring the machineries,” the statement said. Job Card Holders were paid only about 1/3rd wage component at the maximum and the rest was embezzled by VDB secretaries in connivance with NREGA officials, the statement alleged. “When Job Card Holders complained for not receiving full payment they were threatened and charged as anti-village development,” the Congress stated. Card holders were also not allowed to sign in the “Muster Roll” during payment of wages. The full payment report against the names of card holders was sent to the government as made available in the official website of the Management Information System (MIS) of NREGA.
Moreover, social audits are to be conducted in public after wide publicity. But social audits were not conducted in public but by village auditors hand-picked by VCCs and VDB secretaries.

Irregularities
The materials’ component is 40% of total man-days fund allocation; the total fund sanctioned as material component was not disclosed; procurement and supply of materials was “just name-sake as even big villages having 500 to 1000 job card holders received about 50 shovels only,” the statement pointed out. “30% to 35% of material component fund was embezzled,” it alleged.
Figures in work orders issued by Program Officers (BDOs) and MIS in the official website do not tally; the same work order numbers have a discrepancy of 50% or more in the sanctioned amount; while all other work orders were issued against the Program Officer, one work order issued at the fag end of March 2009 was issued against the name of VDB Secretaries of respective villages. This work order was not disclosed to the job card holders and villagers.

Duplication of the state’s 10% share
The state’s 10% matching share was contributed from the LADF at Rs.10 lakhs per MLA. “But on receiving the centre’s 90% share, this amount was taken back and used as convergence fund. Thus LADF was used twice; firstly as the state’s 10% matching share and secondly as the convergence,” it was disclosed. The other sources of convergence, whether from the CSS or state fund, were not disclosed. The convergence fund was grossly misused as party and VIP fund, the Congress stated.
Funds available with VDBs and VCs from other sources (such as the state finance commission, state departments, LADF and Centrally Sponsored Schemes such as SGSY and Backward Area Grant) once “dove-tailed to NREGA as convergence”, are to be implemented as labour-intensive works. For this, contract works are totally banned but contract works were allotted to party functionaries even after the convergence funds were dove-tailed to NREGS, the Congress found.
Further, the exact man-days available to the job card holders and for which fund was released as per labour budget was not disclosed to the public but merged with convergence to confuse the public; work orders were issued against projects in urban towns in the name of VDBs while there were also others issued by POs against non-existent projects.
It was disclosed that MLAs and ministers directed the POs and DPC to issue work orders to their party functionaries. “One MLA even issued work order by himself. POs did not check the use of machineries, implementation of the projects at the work sites or performed physical verification to check whether the works were completed or not,” the statement said. Further, data updating was not done in most blocks despite the fact that all funds for 2008-2009 were released and the scheme implemented in toto and reports submitted by VDBs and VCs to DPC through their respective POs. “It is very clear that the DPCs are deliberately avoiding to update the data for fear of being caught in their official website,” the statement said.
The Congress also alleged a disinformation campaign. In an attempt to cover up corruption, an intensive propaganda campaign was launched by none else than NREGA officials and VDBs and VCs to brainwash innocent villagers, the Congress stated. “Disinformation campaigns like fund flow or further release of fund would be stopped if complaints are lodged were unleased (sic). Village councils’ whips are issued that, if fund flow is stopped, the complainants would be held responsible for obstructing village developments,” the Congress found.
Listing out the possible reason funds flow will stop, the Congress reminded that funds will not be stopped for complaining against corruption and corrupt officers and village leaders. In fact, the Congress charged corrupt VDB secretaries and VCCs of obstructing village development. “Job card holders were employed for 5 to 10 days and paid Rs.500 to 1000 only on average. They deducted up to Rs.2000 from each job card holders’ wage. In some villages, job card holders reportedly did not receive even a rupee as wage. In one village, Rs.200 was distributed but when asked by villagers about the source it was not disclosed. But in the MIS report available at their website, some job card holders were shown to have been paid up to Rs.4000,” the statement disclosed.

More corruption
In his RTI reply, the Congress stated, the project director had disclosed that full payment for all the blocks for the period from April 1, 2008, to March 31, 2009, had already been made to the villages. “This figure shows that on average, each job card holder should be paid 50 days x Rs.100 = Rs.5000. As stated above, convergence once dovetailed to NREGA is to be treated as labour-intensive works. If this is not the case, why the NREGA officials concealed the exact number of man-days excluding convergence?” the Congress queried.
Further, without consulting job card holders, VDB secretaries also reportedly allowed the NREGA officials to deduct 6-days’ wages at source from each job card holder and signed the actual payment receipt (APR) for those six days at a price. The 6-days wage comes to Rs.600. Phek district has 26,303 job card holders, the documents said. “Therefore, the total deduction comes to Rs.1,57,81,800 (Rupees one crore, fifty seven lakhs, eighty one thousand, eight hundred) only (26,303 x 600 = Rs.1,57,81,800). Thus the autocratic action of the VDB Secretaries deprived each job card holder of Rs.600,” the Congress explained.
The Congress also stated that the NREGA has no so-called “VIP quota”. In every village, the statement said, it was disbursed that some funds were reserved as “VIP quota” and “party quota”. “Village level party leaders were allotted contract works from this so-called VIP and party quotas. Job card holders of ordinary citizens were totally deprived of their shares,” the Congress stated.
“If anyone has any doubt about the charges of corruption, seeing is believing. So, you can see by yourself how many NREGA officials and village leaders have bought properties worth lakhs and crores of rupees and how many have bought brand new expensive vehicles much above their known sources of income in recent times. These are just the proverbial tip of the iceberg,” the Congress said.
The Congress added another point: “It is learnt that from 2009–2010 allocation VDB secretaries in some blocks are now deducting on installment basis phase-wise Rs.50,000 per village for VDB secretaries’ exposure trip outside the state and Rs.15,000 to purchase camera.”

http://www.morungexpress.com/local/33649.html

High growth to counter corruption

21 Sep 2009, 0438 hrs IST, Mythili Bhusnurmath, ET Bureau


Received wisdom (backed by academic research and intuitive reasoning) has it that corruption harms economic growth. Paulo Mauro writing in the

Quarterly Journal of Economics (1995) argued that corruption acts as a disincentive forinvestment and impacts growth negatively over the long run. This is true even in countries where bureaucratic regulation is very cumbersome and corruption could be viewed as a means to cut through bureaucratic red tape and thereby speed up economic activity.

But could causality run the other way round? Could economic growth impact corruption? In a paper ('Economic growth, law and corruption: Evidence from India', ASARC Working Paper 2009/15) presented at the Indian Economy and Business Update conference in Canberra recently, Sambit Bhattacharyya and Raghbendra Jha (hereafter referred to as B&J) of the Australia South Asia Research Centre at the Australian National University examine the impact of economic growth on corruption in Indian states during the period 2005-2008.

Since there are wide variations in both rates of economic growth and in levels of corruption between different states, India, say the authors, is an ideal testing ground to examine the link between growth and corruption. Using forest cover as a proxy for economic growth, (a somewhat surprising and highly debatable choice) B&J look at a data set of 20 Indian states during the three year period after the passage of the Right to Information (RTI) Act and find that faster growing states do indeed have lower levels of corruption suggesting that growth does reduce overall corruption.

In itself this is not very surprising. Intuitively, faster economic growth would normally (though not always) lead to improvement in human development indicators, better access to education, awareness of rights and greater empowerment of citizens, all of which would keep a check on corrupt practices. But Bhattacharyya and Jha have a different take on this. They argue that economic growth combats corruption by providing the state with additional resources to fight corruption.

Some might dispute the reason advanced by B&J (it is not clear the fight against corruption in India is hampered by want of resources as much as by want of will!). The choice of forest share to total land area as a proxy for economic growth is even harder to accept. The authors' plea that the choice has been dictated by the need to tackle endogeneity concerns (concerns about growth itself being affected by corruption) cannot be not reason enough to justify use of such a weak proxy.

http://economictimes.indiatimes.com/Opinion/High-growth-to-counter-corruption/articleshow/5035794.cms


India generates 150 million tonnes of waste per day

PTI 18 September 2009, 09:18pm IST
|
NEW DELHI: India generates 150 million tonne of waste in a day and most of it is left in the landfills at the city outskirts leaving a stinking


smell and vultures hovering over heaps of hazardous material.

Only 10-20 per cent of the city waste is recyled in an environment-friendly way and the rest is allowed to lie in the landfills, Environment and Forests Secretary Vijai Sharma said on Friday.

Heaps of urban wastes hosting vultures is a common site in most of the big cities and the governments at the central and state levels must step in to avert the environmental hazard, felt participants at the workshop on technical textile, which has application in waste management.

The developed nations, on the other hand, have made advances in waste recycling and are way ahead of developing countries like India, Sharma said at the workshop ,organised here by the Minsitry of Textile and the FICCI.

The rich and industrialised nations are able to build capacities for sustainable development and recycle 60-70 per cent of the waste they generate, the Environment and Forests Secretary said.

He said different wings of the government should work in unison through an inter-ministerial group, and other stakeholders be part of the consultative process to deal with the task of reuse of waste.

The technical textile products used for environment protection are called 'Oekotech'. These have different uses for landfill waste management.
http://timesofindia.indiatimes.com/news/environment/pollution/India-generates-150-million-tonnes-of-waste-per-day/articleshow/5028160.cms


13-year-old Indian to address UN climate change summit

Tags: New York
Buzz up!vote now


(Source: IANS)
Published: Mon, 21 Sep 2009 at 17:29 IST
New York: A 13-year-old Indian girl from Lucknow, Yugratna Srivastava has won the honour to address US President Barack Obama, President Hu Jintao of China and other world leaders on behalf of the world's three billion youth and children.
The UN summit that Yugratna would address Tuesday is part of the UN Secretary General Ban Ki-moon's campaign to bring about a fair and ratifiable green house gas reduction agreement at this year's Climate Conference in Copenhagen, Denmark.


"World leaders must recognise the energy and potential which lies in children and youth. This age group is just like flowing rivers and they make their own way in the direction in which they march," said Yugratna, a lively, committed and very passionate teenager.


Yugratna became sensitised to environmental protection in Grade 6 in St. Francis School in Shamli, India. It was there that she joined "Tarumitra" (Friends of Trees).


The non-governmental organisation works hard to stop the felling of trees and forests, builds roadside gardens and cleans up garbage dumps, among other activities.


In 2008 Yugratna participated in the Tunza youth conference in Norway organised by the United Nations Environment Programme (UNEP) and became a member of the Junior Board. Tunza is the UNEP magazine for youth.


She is the first Indian child to ever get elected to the Junior Board and was invited again to participate in this year's Tunza conference in Seoul.


When she is not in school, she is talking about climate change and environmental protection around India and abroad.


"For my generation in India, climate change means global warming, scarcity of food and drinking water and an outbreak of accentuated epidemics," she added.


Her increasing environmental activism has brought her to the attention of UNEP and now to the world leading to her addressing the UN Summit in New York.

http://www.samaylive.com/news/13yearold-indian-to-address-un-climate-change-summit/658009.html

No comments: