CITU demands captive mines for VSP

Special Correspondent

‘A great injustice done to steel plant’

Move to disinvest 26 p.c. of VSP’s share condemned

VSP issue will be made a major poll plank: CITU

VISAKHAPATNAM: Raw material security was the most important factor for running an industry in a successful way and the Central and State Governments must ensure that Visakhapatnam Steel Plant was allotted captive iron ore mines, CITU national secretary and president of Steel Workers Federation of India (SWFI) Ardhendu Dakshi said here on Friday.

“The Central and State Governments have done a great injustice to the VSP by ignoring the demand for captive mines when the plant has made a remarkable recovery and is in expansion stage. Private parties have been allotted mines but they have not set up plants and exporting the iron ore while the public sector steel plants like VSP are facing huge expenditure on iron ore,” Mr. Dakshi said at a press conference.

CITU has been demanding stopping of iron ore exports and ASOCHEM too made the demand in view of the deposits lasting for only 30 to 35 years, he pointed out. SWFI was of the opinion that a strong movement was necessary on the part of workers as well as people of Visakhapatnam to achieve captive iron ore mines, he said.

Mr. Dakshi also condemned the move to disinvest 26 per cent of VSP’s share saying that it was a move aimed at gradual privatisation of the plant. When VSP was in red the Government did not help it much but when it made a turn around it was trying to privatise it. He called upon the people of Andhra Pradesh to once again resist the move to disinvest as they had done in the past.

TSR criticised

President of district CITU A. Ajay Sarma said captive mines were not allotted to VSP to make it sick so that the take over would be easy for private companies. Rajya Sabha Member T. Subbarami Reddy should be ashamed of himself for not getting the mines for VSP when he was the Union Minister of State for Mines and publicly accept his failure and tender an apology for the people, he said.

The VSP employees were determined to protect the plant and a large-scale agitation was being planned during March by involving people also and the VSP issue would be made the major election issue, he added.

President of VSP CITU Ayodhya Ramu was also present.

http://www.hindu.com/2009/02/28/stories/2009022858490300.htm

SC panel asks Haryana to clarify mining auction issue

28 Feb 2009, 0114 hrs IST, Abantika Ghosh, TNN

NEW DELHI: The Supreme Court-appointed Central Empowered Committee on Friday sought Haryana government's clarification on the fact that it was

holding an auction for the mines of Khori Jamalpur and Sirohi when the apex court had asked for status quo to be maintained. The committee was forwarding a complaint it had received from an NGO citing the SC order and appealing to the district administration to deploy a special team for ensuring that the court order is complied with.

On February 13, the Supreme Court had in a brief order said: ``List the Aravali Hills and Haryana Mining matters on board today on 18.3.2009 and 19.3.2009 (whole day) and 20.03.2009 at 2 pm (if necessary). Status quo as on today shall be maintained till then.''

Just four days later, on February 17, the state government issued the auction notice for 109.77 hectares of land at Khori Jamalpur and Sirohi where, according to official estimates, about 2 lakh metric tonnes of stones is likely to be mined over the next two years.

CEC sources said, following the letter by NGO Shakti Vahini, the government has been asked how it can hold the auction when it would violate the SC order.

While Haryana's director (mining and geology), Arun Kumar, was not available for comment, senior officials of the department denied receiving any communication from the CEC.

Speaking on the condition of anonymity, an official said: ``The Khori and Sirohi mines are not part of the Haryana mining matters in the court. This relates to the other mines in the area which have already been closed down. But Khori and Sirohi mines were functioning by the orders of the Supreme Court and therefore there is no problem with the auction. At least that is what the state counsel has told us. That is why we are doing the auction.'' On being told that Khori and Sirohi were not functioning when the order was given, he said that did not matter.

Legal experts, however, point out that the government may be treading on dangerous ground. ``It's very simple. The mining lease got over on February 5 and they stopped functioning. So on February 13, when the order was passed, they were closed and as per the `status quo' order, they have to stay closed,'' a senior lawyer said.

Sources point out that in the event of the auction happening on March 3 and the lease being awarded, the Haryana government could even be charged with contempt of court. But till the awarding actually happens, the state is ``theoretically safe as it may argue that is only holding an auction and had no intention of awarding the contract before the court hearing''. Interestingly, the auction process is for awarding a mining contract till March 31, 2011, though state mining officials admit that Sirohi is unlikely to be able to take mining for more than ``three months at the most''.

Meanwhile, Haryana's conservator of forests (south circle), R P Balwan, was transferred on Friday. Balwan was a member of the committee formed under the chairmanship of the DG Forest Survey of India which, under the aegis of the CEC, is preparing maps of the Aravali.

http://timesofindia.indiatimes.com/India/SC-panel-asks-Haryana-to-clarify-mining-auction-issue/articleshow/4203130.cms

Steel Minister launches rebuilding of Malvika Steel after SAIL take over

STEEL PROCESSING UNIT AT BETIAH COMMISSIONED

19:53 IST

Shri Ram Vilas Paswan, Union Minister of Chemicals & Fertilizers and Steel launched the project for rebuilding of steel plant (erstwhile Malvika Steel) at Jagdishpur Industrial Area, Uttar Pradesh this evening in the presence of Chief Guest Shri Rahul Gandhi, Member of Parliament & General Secretary, Indian National Congress. Also present on the occasion were Shri Jitin Prasada, Union Minister of State for Steel, Shri PK Rastogi, Secretary (Steel) and Shri SK Roongta, Chairman SAIL.

Erstwhile Malvika Steel (MS) promoted by Usha Group in 1995-96 produced pig iron for about 2 years. The plant was shut down in early 1998. The promoters had envisaged the construction of a Steel Melting Shop, caster, oxygen plant, sinter plant and rolling mill. However the main facilities in operation at the time of closure included 2 x 350 cubic metres blast furnaces, 2 x 1200 tonnes per day pig casting machines and a 7.8 Mega watt captive power plant.

The assets of Malvika Steel have been taken over by SAIL at an auction held under the aegis of the Hon’ble Delhi High Court for Rs 209 crores. As per the initial estimates an investment of about 300 crore would be needed. Detailed studies will be carried out to work out the product mix, etc. The plant’s proximity to vast consuming centres in UP and strategic location would be advantageous for SAIL.

The Steel Minister said for last few years the Steel Ministry had been working on various modalities for reviving erstwhile Malvika Steel. Shri Paswan said construction will be started soon and plant is expected to start operation on 26th January 2011. Sharing his vision of reviving sick units, he said SAIL being the largest steel producer in the country has always played a vital role in nurturing several sick units like Visvesvaraya Iron and Steel Plant (VISL), Karnataka, Indian Iron & Steel Company (IISCO), West Bengal and Maharashtra Elektrosmelt Ltd (MEL), Maharashtra. Today these are making significant contributions. Talking about the steel scenario, Shri Paswan said high demand of steel in domestic sectors like infrastructure, automobiles and real estate have given a boost to steel industry in the country, and today India is the world's fifth largest producer of steel producing about 55 Million Tonnes of crude steel. He also informed the gathering about the various CSR activities of the Steel Ministry.

Shri Rahul Gandhi said for last five years he had been concerned about the revival of Malvika Steel and today his dream has come true. He thanked the Steel Minister and SAIL for taking the initiative to revive the unit and said it will usher in a new era of progress and prosperity in the region and state as a whole.

Lauding the Steel Minister, Shri Jitin Prasada, in his address said it was a historic day and a milestone for the state as the unit which had been closed will be restarted. He said there was a shortage of private sector investment in the state and this would be the largest investment by the Central govt. in UP. He thanked the Steel Ministry and SAIL for the initiative to set up the Lakhimpur Steel Processing Unit in UP and said such initiatives will boost all round development across all economic sections.

Shri P.K. Rastogi said he was happy that the plant which had been closed for last ten years is going to be revived. He lauded the Steel Minister for spearheading CSR initiatives and setting up Steel Processing Units in the country.

Shri SK Roongta said today is a historic day for SAIL as it has been provided an opportunity to rebuild erstwhile Malvika Steel which has been closed for 10 years. On the occasion Chairman SAIL talked about the crucial role of Chiria Mines as additional iron ore would be needed for the success of the company’s expansion plan. He also requested the State govt’s intervention for the projects’ requirement of electricity, water, etc. Shri Roongta assured that SAIL would not only reconstruct the plant but also play the role of a model corporate citizen.

Earlier during the day Shri Paswan inaugurated SAIL’s first Steel Processing Unit at Betiah, Bihar. The SPU will start initially with commissioning of Corrugation facility producing corrugated sheets.

DNM

http://pib.nic.in/release/release.asp?relid=48164

Chiria Iron ore Mines dispute to hamper SAIL's production

Out of the six leases in Chiria mines, three leases are under dispute namely, Ajitaburu, Sukri-Latur and Tatiburu. The other three leases namely, Budhaburu (Mclellan), Dhobil and Ankua are under deemed extension. The delay in renewal of iron ore leases is affecting the development of a mechanized mine at Chiria.

Moreover, after the current expansion of SAIL is completed, it will be difficult to meet the enhanced requirement of iron ore of SAIL's plants, particularly Bokaro Steel Plant (BSP) and IISCO Steel Plant (ISP), without access to the Chiria deposits.

Both the Ministry of Steel and SAIL have been making sustained efforts in the past three years to resolve the dispute amicably with the Government of Jharkhand. A number of meetings have been convened during which officials from the Ministry of Steel, Government of Jharkhand and SAIL have been present. The Union Minister of Steel has discussed this issue with the Chief Minister of Jharkhand on 24.9.2008 and 23.10.2008 and written requests have also been made to the Government of Jharkhand. However, this issue has not yet been resolved.

http://www.equitybulls.com/admin/news2006/news_det.asp?id=46414

Orissas iron ore processing units ask Oil-mining Corporation to cut ore prices

Bhubaneshwar, Feb. 27 (ANI): Orissas small-scale iron crushing units are facing severe crisis, as they are not assured of ore lumps supply at reasonable rates from the Oil Mining Corporation.

The 300 crore rupees small units provide employment to 40,000 persons in the district.

Secretary of Keonjhar Industries Federation Soumya Patnaik said the present requirement of the local processing units is about ten percent to 15 percent of the total production of Gandhamardan region. But, the OMC is not ready to allot them even that.

Why don”t they formulate a policy for the local small scale industry? If there is a small policy, if somebody could pick one out of anybody’’s head whether it is the Chief Minister or Chairman OMC or the GM sales and just point out and say there are about 30 crore crushers, 40, 000 families depending on them. We are asking to have us an allotment for maybe a 10,000 or 5,000 tonnes of ore. Cannot OMC allot 5, 000 tonnes of ore when we are asking at the same price sponge baron people are beckoned, said Patnaik.

However, the state mining minister said the demand of the crushing unit owners will be looked into but the fixed prices wont be compromised.

As per their demand the department is considering the case and as per rate it is fixed rate of OMC. With regard to the rate there will be no compromise because the rate fixed by OMC as per tender will be applicable to industrialists, crushing units or anybody else. Regarding other demands the department is looking into it and examining their application and very shortly a decision will be taken on it, said Pradip Kumar Amat, Orissas Steel and Mines Minister.

The federation has now sought an appointment with Chief Minister Naveen Patnaik to ventilate their grievance against the arbitrary pricing policy.

The crushing unit owners have also threatened to take an agitation path if the government fails to resolve their issue. (ANI)

http://www.newspostonline.com/features/orissas-iron-ore-processing-units-ask-oil-mining-corporation-to-cut-ore-prices-2009022736177

Illegal mining on the rise in Raniganj

28 Feb 2009, 0352 hrs IST, TNN

Raniganj: The main reason for mushrooming of sponge iron industries in Raniganj Coal belt area is the availability of abundant illegal coal, said

CPM Burdwan district secretary and state committee member Amal Halder at a seminar in Raniganj Chamber of Commerce on Thursday.

Local people are fed up with the rampant illegal mining of coal by these sponge iron plants. They are further troubled due to the heavy pollution as these industries allegedly do not operate ESP machines to save power bill. Halder blamed the Centre's policy for not giving proper coal linkage to these sponge iron plants.

"Who is patronising the illegal coal mining directly or indirectly ? When these sponge iron plants have failed to get coal linkage how can the government give them permission to run the factory?" asked Tapas Banerjee, former Asansol MLA. "One of the biggest offenders is the Jai Balaji Industries ' plant in Mongolpur near Raniganj. The chief minister is day dreaming to create another Durgapur Steel Plant or IISCO in Raghunathpur and Banskopa with such a Jai Balaji Group," said Maloy Ghatak, Trinamool leader.

Sunil Pal, naxalite trade union leader of ECL said that the ruling party heavily depends on Asansol Lok Sabha seat on illegal coal mining. He said just one or two months before every election there is a spurt in illegal mining in Andal , Ukhra, Pandaveswar, Laudoha , Jamuria, Baraboni, Kulti and Salanpur areas.

http://timesofindia.indiatimes.com/Kolkata_/Illegal_mining_on_the_rise_in_Raniganj_/articleshow/4203359.cms

GMR Group looking at coastal sites for power plants

Published on Sat, Feb 28, 2009 at 08:46 , Updated at Sat, Feb 28, 2009 at 11:41

Source : Business Line

New Business Opportunity : Run Your Own Energy Saving Business PLC Seeks Partners in India www.enigin.net

Hyderabad, Feb. 27:

GMR Group, which has completed two major acquisitions of coalfields in Indonesia and South Africa recently, is on the lookout for possible sites in Gujarat, Maharashtra, Andhra Pradesh and Orissa to set up power plants.

GMR Energy Ltd acquired 33.50 per cent in Homeland Energy Group Ltd – which owns Homeland Mining and Energy SA (Pty) Ltd, South Africa. The deal gave GMR access to the coal mines being developed by Homeland Energy in South Africa.

“We have with us huge reserves with quality coal. We are looking at sites along the coast,” Mr G.M. Rao, Chairman of the infrastructure major GMR Group, said.

GMR Energy also bought PT Barasentosa Lestari in Indonesia with a 30-year mining licence on 100 million tonne coal mines there.

http://www.moneycontrol.com/india/news/business/gmr-group-looking-at-coastal-sites-for-power-plants/387250

Tests for asbestosis on 13 begin

28 Feb 2009, 0022 hrs IST, TNN

JAIPUR: Thirteen persons from Netaji Ka Bada in the Udaipur district on Friday began their test for asbestosis at a private clinic. All of them

have worked in asbestos mines at some point in their life.

The check-up is part of a initiative by the Mine Labour People Campaign (MLPC), an NGO working for the welfare of miners, to create an awareness on their plight and inducing the government to act for their betterment.

According to Rana Sengupta of MLPC, "Though we have managed to bring 13 of a total of 89 persons to Udaipur on whom we had got an initial check-up done by experts in their village, but the lack of government support prevented us from bringing two critical cases. These two-- Jhelam Chand (57) and Prabha Singh (58) -- are bed-ridden and cannot be transported."

Initial tests on many of them, by Raghunath Manwar of the Ahmedabad-based Occupational Health and Safety Group and a comparison of their chest X-ray with ILO standard plates, have suggested that they may be afflicted with asbestosis, a serious condition of the lungs that leads to cancer

Sengupta added that they had sought the help of the chief medical health officer but to no avail. "We are doing this on our own as for officially proclaiming them as cases of asbestosis only a panel of doctors can do so. It is only after that that they will be eligible for compensation from the government," he said.

Though asbestos mining is banned in the country, in Rajasthan there are still some open-cast mines operating in the unorganized sector. Moreover, many mine owners mine asbestos under license issued for soapstone since both minerals are found at the same site.

"These miners are being tested by a team of four doctors, including a chest physician

, a radiologist and two experts. After taking their recommendation we would be sending the observations to the National Institute of Occupation Hazard (NIOH) for a final verdict. The entire process of the tests would take about four days," Sengupta said.

http://timesofindia.indiatimes.com/Jaipur/Tests_for_asbestosis_on_13_begin/articleshow/4203016.cms

Mining – International

Activists warn US lawmakers of uranium mining perils

28 Feb 2009, 0934 hrs IST, AFP

WASHINGTON: A French physicist and a US actor joined representatives of indigenous peoples from Africa, Australia and the United States on Friday

to send US lawmakers a stark warning about the dangers of uranium mining.

"We want US lawmakers to understand that uranium mining is highly pollutant and that there is currently no scientific answer to the question of radioactive waste containment," Bruno Chareyron of France's CRIIRAD laboratory, which measures radioactivity in the environment, said.

"We want them to know that the information they are given by the mining companies is not wholly reliable," he said.

Representatives of the Tuareg nomads of Niger, Native Americans and Australian aborigines told of the ravages of uranium mining on their communities.

In Niger, French company Areva has been mining uranium for more than 40 years with "no regard for the environment, people's health, animals," Sidi-Amar Taoua, a Tuareg who has lived for seven years in the United States, told AFP.

"Uranium mining has impacted every area and sparked a war between the Tuareg who took up arms to defend their land, and the government, which is complicit with Areva," he said.

Areva announced last month that it has applied for US government approval to build a two billion dollar uranium enrichment plant in the northwestern state of Idaho.

The project would be the French state-controlled group's first uranium enrichment plant in the United States.

Native American lands in the southwestern United States have been the site of more than 1,300 uranium mines. Although most have been closed, the mines' legacy includes contaminated drinking water and illnesses from cancer to kidney disease, said Native American environmental activist Manny Pino.

"In this process of nuclear renaissance, it's almost like the federal government is ignoring the historical legacy of uranium mining in the past and prioritizing the economic benefits of nuclear power in the future at the expense of our land, our water and our people," he said.

Mitch, an aboriginal militant against radioactive waste dumps and uranium mining in Australia, currently the world's biggest producer of the mineral, said: "Short term monetary gain will leave us with long-term deadly waste for generations to come."

Uranium mining saw a long boom period in the United States between the 1940s and 1980s, before coming to a near halt in the 1990s as prices paid for the mineral plummeted.

In 2005, as uranium prices were starting to climb upwards again, the Navajo passed a law banning the mining or processing of uranium on their lands.

But when the price of the mineral peaked at around 140 dollars a pound in 2007, mining companies descended "like vultures" on uranium-rich areas, 70 percent of which are situated on land inhabited by low-income indigenous communities, said James Cromwell, the actor who played George H.W. Bush in the film "W."

As oil and gas prices spiked last year, nuclear power gained ground as an attractive energy option to ensure US energy independence.

Then secretary of the interior Dirk Kempthorne authorized uranium exploration near the Grand Canyon, a UNESCO World Heritage site.

"There's a lot of activity. When uranium prices went up we saw proposals for exploration all over the place," said Sandy Bahr of environmental group the Sierra Club's Grand Canyon chapter.

In January, Arizona lawmaker Raul Grijalva introduced a bill in Congress that would permanently withdraw from mineral extraction one million acres of public lands in watersheds surrounding the Grand Canyon.

http://timesofindia.indiatimes.com/Health--Science/Earth/Pollution/Activists-warn-US-lawmakers-of-uranium-mining-perils/articleshow/4203825.cms

Mining Wyoming

Created: 2/27/2009 11:13:04 AM

Environmentalists are backing a proposal to reform the nation's key mining law.The proposal would reform the General Mining Act of 1872.

The legislation was introduced last month by Congressman Nick Rahall, a Democrat from West Virginia who chairs the House Natural Resources Committee.

It calls for an 8 percent gross royalty on mineral production from new mines on public lands and a 4 percent gross royalty on mines that are already in operation.

Opponents of the measure say it would cost U.S. jobs and increase the country's dependence on foreign minerals.

The majority of the federal lands where hard-rock mining operations occur are in 12 Western states: Alaska, Arizona, Colorado, California, Idaho, Montana, Nevada, New Mexico, Oregon, Utah, Washington and Wyoming.

http://www.kotaradio.com/news.asp?eid=5002&ID=2277

Judge rules mining firms must clean up their messes

Modern mining methods grind whole hillsides to dust and use cyanide to extract a tiny percentage of the rock that is gold.
Gilbert W. Arias/P-I

A ruling by federal judge in Northern California could end the practice of mining companies going bankrupt and sticking taxpayers with cleanup bills, say environmentalists who filed suit. It's a practice the P-I highlighted in our expose' on the 1872 Mining Law a few years ago.

Meanwhile, a House subcommittee has started work on reforming the 137-year-old law. All this comes with gold having sold for more than $1,000 an ounce this week. Mining firms began thinking expansion (and even new mines) way back when it passed $300 an ounce.

Yesterday's ruling came from U.S. District Judge William Alsup, who noted that when Congress passed the Superfund law in 1980, it gave what turned out to be the Reagan administration three years to impose requirements that mines post bonds to cover the cleanup costs should they go toes-up (or in some other way assure the government of their ability to pay in that circumstance.)

A quick read of the ruling shows a lot of it is about the issues of standing and evidence. Quoting a 2005 Government Accountability Office report, Alsup wrote:

By its inaction on this mandate, EPA has continued to expose the Superfund program, and ultimately the U.S. taxpayers, to potentially enormous cleanup costs at facilities that currently are not required to have financial assurances for cleanup costs . . . Although implementing the requirement could help avoid the creation of additional Superfund sites and could provide funds to help pay for cleanups, EPA has cited, among other things, competing priorities and lack of funds as reasons for having made no progress in this area for nearly 25 years.

The GAO, btw, figures taxpayers got stuck with at least $2.6 billion in cleanup costs for hardrock mines between 1996 and 2007. More from Ken Ward from the Charleston Gazette here.

Meanwhile, back at the Capitol, the House Natural Resources Subcommittee on Energy and Mineral Resources, took up legislation to at long last redraw the 1872 Mining Law. The House did the same thing last year, but it didn't fly in the Senate, in part because of opposition from Majority Leader Harry Reid, the son of a miner. He says the royalties required in the legislation -- payments of a portion of the worth of minerals taken from public land -- were too high. Of course, right now they're zero.

Senate Energy and Natural Resources Chairman Jeff Bingaman of New Mexico has reportedly promised to take up reform legislation this spring. Stay tuned.

Here is an account of yesterday's House hearing from Hope Yen of the AP.

http://blog.seattlepi.nwsource.com/environment/archives/162701.asp?from=blog_last3

Parks, mining shut down as cyclone nears

28th February 2009, 16:15 WST

All gorges in Karijini National Park in the State’s North West have been closed as the threat of a cyclone continues for the central Pilbara.

The chance of flash flooding or landslides has forced the Department of Environment to close the gorges.

Millstream- Chichester National Park has been closed to the public since yesterday.

Visitors are asked to exercise extreme caution and are reminded not to drive into water of unknown depth and velocity.

Road conditions will be affected and travel plans might need to be reconsidered.

The tropical low is moving towards the coast and is expected to move down towards the northern Goldfields over the next few days.

At noon, the tropical low was estimated to be 180km north of Port Hedland and 285km north-east of Karratha and was moving south south-west at 18kmh.

The Bureau of Meteorology reports while the low remains weak, there was still a chance it could develop into a tropical cyclone prior to making landfall.

If the system does intensify into a tropical cyclone gales may develop in coastal areas late today.

Rain and thunderstorms are likely to produce flash flooding and damaging wind gusts in inland parts of the east Pilbara and northeast Gascoyne this afternoon and into the evening.

Flood Warnings are current for the Ashburton River and De Grey river catchments and the Pilbara coastal streams.

The Fire and Emergency Services Authority and State Emergency Service advise that driving conditions may be hazardous.

Should flash flooding occur, avoid flooded roads, watercourses and floodways in the vicinity until safe to proceed.

Meanwhile, mining operations in the State’s North West have been suspended as the threat of a cyclone looms.

At 9am, the tropical low was estimated to be 235km north of Port Hedland and 335km north north-east of Karratha and was moving south south-west at 18kmh.

Apache Energy has stopped production at its Stag and Legend platforms, Perth public affairs manager David Parker told thewest.com.

“Staff has been demobilised and we have demobilised non-essential crews from Varanus Island,” he said.

“Gas production is continuing from Varanus."

The discharge of staff from the platforms was part of standard operational procedure, Mr Parker said.

Rio Tinto’s iron ore mining sites have yet to be affected by the heavy rains.

There have been reports that oil and gas production company Santos has also suspended its off shore operations.

PERTH
LISA CALAUTTI

http://www.thewest.com.au/default.aspx?MenuID=77&ContentID=127259

Russia 'may buy metals' to boost mining companies

27th February 2009

The Russian government is weighing up the possibility of buying metals in order to boost its flagging mining companies, a senior political figure in the country revealed yesterday (26th February).

Norilsk Nickel, the world's top nickel producer, and Oleg Deripaska, the billionaire who controls United Co Rusal, originally proposed the purchase of nickel, aluminium, copper and other metals last year, Bloomberg reports.

Now Arkady Dvorkovich, Economic Adviser to Russian President Dmitry Medvedev, explained that the viability of the strategy is being assessed to determine whether it is included in the next budget.

In an interview with the news provider in Moscow, he said: "It's a perfectly good idea. If the budget has such opportunities, then it will be done. Whether there will be such opportunity is not yet clear."

Mr Dvorkovich added that the budget - which may reach a deficit of eight per cent of GDP this year, according to the Economy Ministry - will be primarily focused on tackling inflation and stimulating the economy.

He also revealed that some of Russia's largest mining firms will meet this week to discuss prior proposals, although he emphasised that the government has not received any new merger plans.

The news comes after Vladimir Potanin, the main investor in Norilsk, claimed last month that the government should aim to push mergers with companies such as steel producers Evraz Group SA and OAO Mechel.

http://www.platinum.matthey.com/media_room/russia_may_buy_metals_to_boost_mining_companies_19049653.html

Banro looking for big brother to help fund DRC gold mine

Text Size

By: Liezel Hill

Published on 27th February 2009

TORONTO (miningweekly.com) – Canadian gold junior Banro Corp is looking for a strategic partner to take a stake of as much as 60%, possibly in the company itself or its flagship project, and assist in financing the construction and start up of the mine, says president and CEO Mike Prinsloo.

Earlier this month, Banro raised $14-million in a nonbrokered placement, and the firm announced on Wednesday that it had received official confirmation from top-ranking officials in the Democratic Republic of Congo that its mining convention and licences in the country are legal and secure.

The company was not part of the contract review under way in the country, and owns 100% of its projects with no parastatal participation, but wanted official confirmation from government to reassure investors.

Banro also completed a feasibility study this year on the most advanced of its four projects, Twangiza, in the east of the country, and is scheduled to file the NI 43-101 technical report on Friday.

With these key milestones checked off and the price of gold looking mighty attractive, the company finds itself in a “watershed” position, Prinsloo said in an interview at the company's Toronto offices.

Before joining Banro, Prinsloo was the CEO of Johannesburg-based Gold Fields' Business Leadership Academy, prior to which he headed up the gold-miner's South African operations.

He hopes to be able to seal an agreement with a new partner within the next three to six months, and is optimistic that the confirmation of Banro's position in the DRC will allay a lot of concerns that may have stayed the hands of potential buyers.

“That's the first question anyone asks you: 'Are your permits secure?'.

In a research note this week, RBC Capital Markets analyst Cailey Barker said the announcement should be viewed "highly positively".

The $14-million raised this month will cover the company's requirements over the next year, while it holds talks with potential partners, Prinsloo said.

“The fact that we have raised some money takes all the pressure off us from negotiating in an environment where you don't have cash, and people know it.”

The recent arrest by Rwandan troops of rebel leader Laurent Nkunda will likely also have positive ramifications for the security situation in the eastern DRC, Prinsloo said.

Although the company's assets have not been affected by the violence about 300 km to the north, “that overhang sits with us”.

According to the Twangiza feasibility study, the mine will cost $476-million, including $67-million for Banro's 50% share of a 30 MW hydroelectric plant and a $38,9-million contingency allocation.

While it could likely have raised the cash on a solo basis about 12 to 18 months ago, the company, likes its peers, has had to watch its market capitalisation shrink dramatically, currently below C$100-million at Friday's prices.

Banro would consider a number of options for bringing on a strategic partner, including selling at a project level, at a company level, or a combination of the two.

“But I think we would probably look at just a simple percentage split of the company, at 60:40, where they have 60% and we have 40%,” Prinsloo said.

“I say 60:40; it probably could be 50:50, but whoever buys 50% of Banro would want control, so I think 60% gives the major enough that they can motivate why they are doing it, and it gives us enough that we are not giving away all the upside.”

Partners from across the industry spectrum are being considered, from senior companies, to mid-tier miners, and even private equity investors.

“We are looking for people who are serious, firstly about Africa, but also about the Congo.”

If an agreement is reached with a larger firm, it would also create opportunities for the partner to support some of the completion guarantees for the debt portion of the project finance, or even put up a loan to Banro, which could then be paid back once the project starts generating revenue, Prinsloo said.

Companies with gold assets already in the DRC include AngloGold Ashanti and Randgold Resources, which has said it wants to expand its efforts in the region. Earlier this week, Bloomberg News quoted Randgold CEO Mark Bristow as saying he had made overtures to Moto Goldmines, which is also planning to build a 400 000 oz/y gold mine in the country.

POLISHING THE NUMBERS

Over the next two or three months, Banro will also be reviewing some of the input parameters in the Twangiza feasibility study, as well as completing metallurgical test work on the refractory portion of the orebody.

When the study was being compiled, in the fourth quarter of 2008, prices for steel, diesel and other materials were still relatively strong, although they have since fallen off sharply.

Banro plans to relook at these numbers based on the current pricing outlook, and also expects that the refractory testing should add significant additional ounces into the feasibility study.

These revisions are likely to be completed by mid-April.

The feasibility study as it stands indicates that Banro could produce a total of 2,62-million ounces of gold over 15 years from the mine.

In the first five years, the mine will produce an average of 262 000 oz/y of gold, at average total operating cash costs of $358/oz.

Banro is also keen to explore and develop four satellite targets, which Prinsloo estimates could possiblly enable the company to double Twangiza's size in the next two years.

Shares in the company slid 0,64% on Friday, to C$1,56 apiece by 12:22 in Toronto.

http://www.miningweekly.com/article/banro-looking-for-big-brother-to-help-fund-drc-gold-mine-2009-02-27

Group plans mine protest

the-wrekin2 Campaigners will be taking their protest against proposals for an opencast mine to a Shropshire beauty spot tomorrow.

Members of Telford Against New Coal will be at the summit of The Wrekin talking to people about the proposals for a site at Huntington Lane, near Little Wenlock.

UK Coal has submitted plans to extract 900,000 tonnes of coal, largely destined for Ironbridge Power Station, from the site. A public inquiry is due to start in April. Telford & Wrekin Council has indicated it would be opposed to the plans.

TANC will also be in Wellington tomorrow inviting residents to inform the planning inspectorate of any objections they may have.

http://www.shropshirestar.com/2009/02/27/group-plans-mine-protest/

Other News – India

Climate change threatens Maldives

New York: Rising sea levels and coastal erosion — both wrought by climate change — threatened the viability of Maldives; but, overcrowding and other impacts were already being felt by the island nation’s 3,00,000 people, a United Nations independent expert said on Friday.

After an eight-day visit to the country, Special Rapporteur on Adequate Housing Raquel Rolnik said: “Maldives and its atolls, because of their unique geological and topographic aspects and their fragile and delicate environmental system, are already experiencing the impacts of climate change.”

This jeopardised the survival of the nation, which could be inundated by water. But more immediately, it jeopardised the right to housing due to the scarcity of land. Ms. Rolnik stressed the responsibility of the international community to urgently support adaptation strategies, noting that: “the post-2004 Indian Ocean tsunami reconstruction process in Maldives can be a source of precious lessons”.

Over the past four years, donors and agencies have mobilised over $400 million in aid, but the Rapporteur voiced concern over the allocation of resources and their management by Maldivian authorities.

“In the new resettlement sites that I visited, I detected a lack of participation in the decision-making process concerning relocation, the design of new houses and the infrastructure, which resulted in new structures that were not always compatible with the livelihood of the communities,” said Ms. Rolnik.

The expert also noted that the tsunami may have been used by authorities as an opportunity to relocate communities, which had provoked serious conflicts. There were 3,500 people uprooted by the 2004 disaster who were still living in temporary shelters.

The reconstruction process had also resulted in a surge in the price of construction materials, putting upward pressure on rental prices and aggravating overcrowding.

Over 80,000 migrants from Bangladesh and other South Asian countries lived in Maldives, with half of them working in the construction sector, and the Rapporteur said she was concerned about their housing and living conditions. She called for a “human rights-based approach” to address the housing situation in the country, calling for the government and international organisations to promote public participation in making key decisions. Ms. Rolnik, who reports to the Geneva-based U.N. Human Rights Council, took up her post last May and serves in an independent and unpaid capacity, as do all Special Rapporteurs. — PTI

http://www.hindu.com/2009/02/28/stories/2009022855331800.htm

Land acquisition, R&R Bills lapse

Sreelatha Menon / New Delhi February 28, 2009, 1:08 IST

Two Bills that would have empowered industry to buy land from farmers with government help lapsed in Parliament yesterday — the last day of the 14th Lok Sabha, whose tenure was marred by some violent disputes over acquisition of land for industry.

The Land Acquisition Act Amendment Bill and the Relief & Rehabilitation Bill — which would have allowed industry to acquire 70 per cent of the land needed directly from the farmers and get the rest with the help of the government — lapsed as the Rajya Sabha failed to pass these.

The combined strength of the BJP and the CPI(M) thwarted the Bills in the Rajya Sabha. The Bills, initially introduced in the Lok Sabha on December 7, 2007, and sent to a parliamentary standing committee, came unstuck mainly on the issue of the definition of public purpose.

The Bills were also opposed for the clause that only those farmers who sold their land to the government would be rehabilitated. The CPI(M) and the BJP stressed the point that they had earlier raised in the standing committee — that a partnership between industry and government could not be fair to the farmers.

CPI(M) MP Hannan Mollah, who was a part of the standing committee, which gave a series of recommendations, said the Bills, in their present form, would have been anti-farmer. According to him, when the government offers to buy 30 per cent of the land needed for a project on behalf of industry, the farmer is under pressure to sell to industry or take the price the government offers. “So he (the farmer) is left with little choice,” says Mollah.

Both Bills moved from the standing committee to a Group of Ministers and were passed in the Lok Sabha on February 25. Yesterday, when the Bills were sought to be introduced, the CPI(M) members insisted that only the Bills listed by the Business Advisory Committee of the Rajya Sabha be introduced, said a Rajya Sabha MP. The two Bills were not listed as the agenda was prepared when these had not been passed in the Lok Sabha, said Rajya Sabha members.

“The two have lapsed and justifiably so,” said CPI(M) MP, Prasanta Chatterji.

http://business-standard.com/india/news/land-acquisition-rr-bills-lapse/10/00/350406/

HIV, AIDS pose serious risk to South Asia: World Bank

28 Feb 2009, 1015 hrs IST, IANS

WASHINGTON: HIV and AIDS can pose a serious economic and social development risk to countries in South Asia with about 2.6 million infected

people, a lion's share of them in India, a new World Bank report says.

The report released Friday argues that, even if the overall prevalence rate is low (up to 0.5 percent), there is high and rising HIV prevalence among vulnerable groups at high risk for HIV infection, including sex workers and their clients, and injecting drug users and their partners.

Unless prevention programmes, targeting vulnerable groups at high risk of infection, are scaled up, these concentrated epidemics can further escalate, says the report, titled "HIV and AIDS in South Asia: An Economic Development Risk".
AIDS accounts for 1.5 percent of all deaths in South Asia and about 2 percent of all deaths in India. These numbers of deaths are comparable to the numbers from diabetes, tuberculosis and measles.

The report finds the impacts of HIV and AIDS in South Asia on the aggregate level of economic activity to be small. For India, the effect on GDP (0.16 percent) corresponds to a one-off loss of about 1.5 weeks of GDP growth.
However, the direct welfare costs of increased mortality and lower life expectancy are more substantial, accounting for 3 percent to 4 percent of GDP in India and Nepal, respectively.

"Even in the low HIV prevalence countries of South Asia, there cannot be any room for complacency," said Mariam Claeson, World Bank HIV and AIDS Coordinator for South Asia.

"While the impact of HIV and AIDS on economic growth is small in South Asia, the welfare cost on households is by no means negligible.

"HIV and AIDS also have an enormous disproportionate impact on vulnerable and often marginalized people at highest risk of
infection, and on poor households with less access to information, preventive services and treatment."

The economic impact on individual households affected by the disease is substantial, the report says.

In a household study on India, 36 percent of people living with HIV and AIDS who were able to retain their employment nevertheless reported an income loss, which averaged about 9 percent.

Among those who lost their employment (about 9 percent), the income loss was severe, at about 66 percent.

http://timesofindia.indiatimes.com/Health--Science/AIDS-a-threat-to-South-Asia/articleshow/4203887.cms

69 leopards dead in eight weeks

28 Feb 2009, 0855 hrs IST, Avijit Ghosh, TNN

NEW DELHI: India’s leopard count has gone down by 69 in the past eight weeks. Statistics show that between January 1 and February 25, 2009, at

least 36 leopards were either poisoned, ensnared in traps, killed in accidents or became victims of man-animal conflict. One of them even fell into a well and died in Karnataka last month.

That’s not all. Officials have also seized 33 leopard skins and 9 kilos of bones in these eight weeks in different parts of the country, data gathered by a Delhi-based NGO, Wildlife Protection Society of India (WPSI), shows.

The killing cuts across all regions ranging from Bandhavgarh in Madhya Pradesh to J&K’s Kishtwar district, from Karnataka’s Udupi district to Bihar’s Madhubani. Uttarakhand, which has India’s largest leopard population, witnessed the highest number of killings: 15. Four skins as well as 4.5 kg bones were also recovered from the hill state. Part of the problem stems from growing man-animal conflicts caused by the habitat loss of the big cat. But wildlife activists also say that a significant number of these deaths are poaching-related. The seizure of leopard skins in states like Uttar Pradesh, Orissa, Chhattisgarh and Andhra Pradesh indicates that illegal wildlife trade is widespread. “In recent times poaching seems to have gone up due to the rise of illegal skin trade in China,” says Advait Edgaonkar, a Bangalore-based carnivore biologist who specialises in leopards.

In India, three major wildlife species are traded illegally: tiger, leopard and otter. Sources say China and Southeast Asian countries are their biggest market. Tiger body parts are used in indigenous medicines and are the most prized. “Leopard bones are considered good substitutes and are also in demand,” says Tito Joseph of WPSI. Skulls and claws of the protected animal are also in demand. The seizure of bones in Bengal’s northern Jaigaon region and Uttarakhand’s Haldwani district reaffirms the point. Police recovered eight skins apiece in Delhi and Himachal Pradesh.

Leopards are included in Schedule I of the Wildlife Protection Act, 1972, that gives them legal protection. But unlike tigers, their killing hardly draws the same sort of outcry. As per official statistics, there were about 11,000 leopards in India in January 2008. In comparison, an estimated 1,411 tigers were alive during the same period. But the rate of leopard killing is far higher than the tiger. WPSI statistics show that over 3,000 leopards were killed between 1994-2008.

Edgaonkar suggests better conservation efforts as well as strong action against poachers to ensure a more secure life for the leopards. Joseph says that despite several measures by the central government, not much has changed at the grass root level.

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External Affairs Minister Pranab Mukherjee says that though he has faith in Zardari's commitment to fight terror, Pakistani government hasn't done much to back this trust.

BOX: LEOPARD TOLL

UTTARAKHAND: 15 leopards killed, 4 skins and 4.5 kg bones seized

UTTAR PRADESH: 1 leopard killed, 4 skins recovered

ORISSA: 1 skin confiscated

HIMACHAL PRADESH: 1 cub killed, haul of 8 skins

DELHI: 8 skins seized

GUJARAT: 1 leopard killed

ANDHRA PRADESH: 1 leopard dies, 1 skin seized

MADHYA PRADESH: 2 leopards killed

WEST BENGAL: 1 leopard dead, 1 skin and 4.5 kgs bones seized

MAHARASHTRA: 1 leopard electrocuted, 2 skins confiscated

CHHATTISGARH: 1 leopard killed, 1 skin seized

J&K: 2 leopards killed

KARNATAKA: 8 leopards killed, three skins confiscated

BIHAR: 1 leopard killed

ASSAM: 1 leopard found dead

( Leopard deaths and skin seizures between January 1 and February 26, 2009. Source: WPSI )

http://timesofindia.indiatimes.com/Earth/69-leopards-dead-in-8-weeks/articleshow/4203741.cms

News & Views !!

Feb 28, 2009

28/02/09

Mining – India