Monday, 20 Feb 2012
BS reported that NMDC has cut prices of fines and lumps by 20% and 3 per cent respectively in the light of fall in international prices of ore.
NMDC sources told Business Standard that the price of iron ore fines and lumps now would be around INR 2,600 and INR 5,000 a tonne.
Previously, NMDC was selling fines at INR 3,380 a tonne and lumps at INR 5,100.
(Sourced from Reuters)
Showing posts with label Indian iron ore miners. Show all posts
Showing posts with label Indian iron ore miners. Show all posts
Monday, February 20, 2012
Wednesday, February 8, 2012
Indian Supreme Court panel moots market rates for Karnataka iron ore
Wednesday, 08 Feb 2012
Iron ore miners and consumers in Karnataka, including NMDC, the country's largest iron ore producer and JSW, India's largest private sector steelmaker, will have to grapple with higher costs and lower production if the Supreme Court accepts the recommendations of a panel set up to probe illegal mining in the state.
NMDC and JSW may have to pay a higher price for iron ore while other smaller and regional players, such as Mysore Minerals and MSPL, may lose some mines.
In a series of sweeping and unprecedented recommendations, the Central Empowered Committee has recommended the cancellation of 49 licences and proposed capping the state's annual production at 30 million tonnes. It has said even captive iron ore will be sold at market rates and called for all ore, from old mines as well as new, to be auctioned. But the silver lining for steelmakers will be the opportunity to grab leases when they are auctioned after cancellation.
JSW will henceforth have to buy ore at market rates even from the Thimmappangudi mine, in which it has 70% share. State run Mysore Minerals, which has supply arrangements with Mukand and Kalyani Steel, will lose a mine and will have to excavate the remaining five iron ore blocks on its own.
NMDC in addition to being penalised will lose 10% of its revenue towards a mining infrastructure development fund. MSPL, despite its long public crusade against illegal mining during the Reddy brothers' raj, will also lose one of its five mines.
Sesa Goa's plans to enhance capacity to 10 million tonnes per annum in Chitradurga will be curtailed as the limit for the Chitradurga/Tumkur district has been fixed at 5 million tonnes per annum.
The Supreme Court, which has accepted all of the CEC's recommendations so far, is likely to hear the matter again on Friday.
(Sourced from ET)
Iron ore miners and consumers in Karnataka, including NMDC, the country's largest iron ore producer and JSW, India's largest private sector steelmaker, will have to grapple with higher costs and lower production if the Supreme Court accepts the recommendations of a panel set up to probe illegal mining in the state.
NMDC and JSW may have to pay a higher price for iron ore while other smaller and regional players, such as Mysore Minerals and MSPL, may lose some mines.
In a series of sweeping and unprecedented recommendations, the Central Empowered Committee has recommended the cancellation of 49 licences and proposed capping the state's annual production at 30 million tonnes. It has said even captive iron ore will be sold at market rates and called for all ore, from old mines as well as new, to be auctioned. But the silver lining for steelmakers will be the opportunity to grab leases when they are auctioned after cancellation.
JSW will henceforth have to buy ore at market rates even from the Thimmappangudi mine, in which it has 70% share. State run Mysore Minerals, which has supply arrangements with Mukand and Kalyani Steel, will lose a mine and will have to excavate the remaining five iron ore blocks on its own.
NMDC in addition to being penalised will lose 10% of its revenue towards a mining infrastructure development fund. MSPL, despite its long public crusade against illegal mining during the Reddy brothers' raj, will also lose one of its five mines.
Sesa Goa's plans to enhance capacity to 10 million tonnes per annum in Chitradurga will be curtailed as the limit for the Chitradurga/Tumkur district has been fixed at 5 million tonnes per annum.
The Supreme Court, which has accepted all of the CEC's recommendations so far, is likely to hear the matter again on Friday.
(Sourced from ET)
Monday, January 30, 2012
NMDC unlikely to reduce ore prices
Mon, Jan 30, 2012
Hyderabad : NMDC Limited, the country's largest iron ore producer, is not in a hurry to reduce domestic ore prices in line with the drop in international prices.Even though NMDC's in-charge chairman and managing director, N K Nanda, was saying that the price drop was being examined, the company's board is unlikely to take a decision in this regard when it meets on Tuesday.
Nanda told Business Standard that the domestic prices of iron ore remained steady despite a decline in international prices. He attributed this to shortage of ore on account of ban on mining in different states and the imposition of 30 per cent import duty.In Karnataka last year, the Supreme Court allowed NMDC alone to operate its mines to the extent of providing 1 million tonnes per month to the domestic steel industry.
The order of the apex court had made it possible for the company to restart its Kumaraswamy mines also ( apart from Donamalai mines) where mining was stopped for quite some time due to Karnataka High Court order.NMDC is also getting a higher rate than its bench mark price through e-auctions. Nanda said that the price being realised through e-auctions was almost 10 per cent more than its bench mark price arrived by taking into consideration the prevailing international and domestic prices for a period of three months.
Given this scenario, NMDC is unlikely to reduce prices. NMDC sources earlierhad told Business Standard, that even if there is a drop, it would not be "much". According to them, there could be "some reduction" in the price of fines (Fe grade) but "very marginal" drop in the price of iron ore lumps which have a good demand in the domestic market.
Currently, NMDC is selling lumps at around Rs 5,000 and Fe grade ore at Rs 3,300 a tonne. On the other hand, the price of lumps in the international market is hovering around Rs 7,000 a tonne, about Rs 1,500 less than the price prevailed during the second quarter of this financial year.On the export front, the reduction international prices of ore do not have any impact on NMDC as it is not exporting any ore this year. It's agreement pertaining to the export of ore to the Japanese market has been expired and it is yet to be revived by the Union Cabinet.
NMDC accounts for 25 per cent of the total iron ore consumption in the country. In 2010-11, the Navaratna company had sold 23.75 million tonnes of ore, while the total requirement of domestic industries stood at around 100 million tonnes. (sourced BS)
Hyderabad : NMDC Limited, the country's largest iron ore producer, is not in a hurry to reduce domestic ore prices in line with the drop in international prices.Even though NMDC's in-charge chairman and managing director, N K Nanda, was saying that the price drop was being examined, the company's board is unlikely to take a decision in this regard when it meets on Tuesday.
Nanda told Business Standard that the domestic prices of iron ore remained steady despite a decline in international prices. He attributed this to shortage of ore on account of ban on mining in different states and the imposition of 30 per cent import duty.In Karnataka last year, the Supreme Court allowed NMDC alone to operate its mines to the extent of providing 1 million tonnes per month to the domestic steel industry.
The order of the apex court had made it possible for the company to restart its Kumaraswamy mines also ( apart from Donamalai mines) where mining was stopped for quite some time due to Karnataka High Court order.NMDC is also getting a higher rate than its bench mark price through e-auctions. Nanda said that the price being realised through e-auctions was almost 10 per cent more than its bench mark price arrived by taking into consideration the prevailing international and domestic prices for a period of three months.
Given this scenario, NMDC is unlikely to reduce prices. NMDC sources earlierhad told Business Standard, that even if there is a drop, it would not be "much". According to them, there could be "some reduction" in the price of fines (Fe grade) but "very marginal" drop in the price of iron ore lumps which have a good demand in the domestic market.
Currently, NMDC is selling lumps at around Rs 5,000 and Fe grade ore at Rs 3,300 a tonne. On the other hand, the price of lumps in the international market is hovering around Rs 7,000 a tonne, about Rs 1,500 less than the price prevailed during the second quarter of this financial year.On the export front, the reduction international prices of ore do not have any impact on NMDC as it is not exporting any ore this year. It's agreement pertaining to the export of ore to the Japanese market has been expired and it is yet to be revived by the Union Cabinet.
NMDC accounts for 25 per cent of the total iron ore consumption in the country. In 2010-11, the Navaratna company had sold 23.75 million tonnes of ore, while the total requirement of domestic industries stood at around 100 million tonnes. (sourced BS)
Monday, January 23, 2012
SAIL not to develop Rowghat iron ore project
Monday, 23 Jan 2012
Business Line reported that Steel Authority of India Limited has decided not to develop and operate the proposed 14 million tonnes per annum Rowghat iron ore mine project in Chhattisgarh; instead it would assign a private outsider for the job on entire mineral off take contract at a prescribed price.
Mr CS Verma chairman of SAIL confirming this to Business Line said that at a recently held pre bid conference, there were participations of more than 25 intending bidders including overseas miners.
He said that “We would request expressions of interest for the project in the first half of the next fiscal.”
The SAIL chairman said that though life of BSP's existing mine at Dalli-Rajhara, also in Chhattisgarh, had been extended by a few years, development and operation of the Rowghat project needed to commence without further delay so as to match the BSP's expansion schedule.
The delay has been caused activities and threats by ultra Leftist outfits. Mr Verma said a couple of months ago, Railway Vikash Nigam Ltd had resumed work on construction of the 90 km track from Dalli-Rajhara to Rowghat.
The Rowghat deposit's 2,029 hectare F block that was allocated to Bhillai Steel Plant of SAIL in 2009 is estimated to contain 511 million tonnes of iron ore. BSP's on going capacity expansion is dependant on this resource project. The Rowghat project envisaged no ore beneficiation plant and tailing dam at the site. The ore after crushing at the site is to be transported for beneficiation to Dalli Rajhara.
(Sourced from BL)
Business Line reported that Steel Authority of India Limited has decided not to develop and operate the proposed 14 million tonnes per annum Rowghat iron ore mine project in Chhattisgarh; instead it would assign a private outsider for the job on entire mineral off take contract at a prescribed price.
Mr CS Verma chairman of SAIL confirming this to Business Line said that at a recently held pre bid conference, there were participations of more than 25 intending bidders including overseas miners.
He said that “We would request expressions of interest for the project in the first half of the next fiscal.”
The SAIL chairman said that though life of BSP's existing mine at Dalli-Rajhara, also in Chhattisgarh, had been extended by a few years, development and operation of the Rowghat project needed to commence without further delay so as to match the BSP's expansion schedule.
The delay has been caused activities and threats by ultra Leftist outfits. Mr Verma said a couple of months ago, Railway Vikash Nigam Ltd had resumed work on construction of the 90 km track from Dalli-Rajhara to Rowghat.
The Rowghat deposit's 2,029 hectare F block that was allocated to Bhillai Steel Plant of SAIL in 2009 is estimated to contain 511 million tonnes of iron ore. BSP's on going capacity expansion is dependant on this resource project. The Rowghat project envisaged no ore beneficiation plant and tailing dam at the site. The ore after crushing at the site is to be transported for beneficiation to Dalli Rajhara.
(Sourced from BL)
Friday, November 18, 2011
Iron ore exports from India dipping: China
Friday, 18 November 2011
China has expressed concern over the recent dip in iron ore exports from India to its shores.
Speaking at the International Iron Ore & Steel Making Raw Materials conference near here Thursday, Economic and Commercial Counselor of the Embassy of China Peng Gang said efforts made by China and India were complementary, as far as the ore trade sector was concerned.
"India has been China's second largest source of imported iron ore till 2008 with the largest quantity of 107 million tonnes in 2009 and the largest market share of 25 percent in 2005,” he said.
“However, due to some reason, India’s exports of iron ore was continuing to drop while the share of Indian iron ore in China’s market was dropping accordingly in recent years," he added.
He said that in the first half of this year, Indian iron ore exports to China decrease to 15 percent from 25 percent in 2005.
Peng said that India was ranked as the third largest producer and exporter of iron ore in the world with more than 20 billion tonnes of rich ore reserves.
“China and India are complementary to each other in many ways, especially in ore trade sector,” he said.
The international conference comes against the backdrop of uncertainty in the mining sector as well as a potential ban on iron ore exports from Goa.
Source: India Vision
China has expressed concern over the recent dip in iron ore exports from India to its shores.
Speaking at the International Iron Ore & Steel Making Raw Materials conference near here Thursday, Economic and Commercial Counselor of the Embassy of China Peng Gang said efforts made by China and India were complementary, as far as the ore trade sector was concerned.
"India has been China's second largest source of imported iron ore till 2008 with the largest quantity of 107 million tonnes in 2009 and the largest market share of 25 percent in 2005,” he said.
“However, due to some reason, India’s exports of iron ore was continuing to drop while the share of Indian iron ore in China’s market was dropping accordingly in recent years," he added.
He said that in the first half of this year, Indian iron ore exports to China decrease to 15 percent from 25 percent in 2005.
Peng said that India was ranked as the third largest producer and exporter of iron ore in the world with more than 20 billion tonnes of rich ore reserves.
“China and India are complementary to each other in many ways, especially in ore trade sector,” he said.
The international conference comes against the backdrop of uncertainty in the mining sector as well as a potential ban on iron ore exports from Goa.
Source: India Vision
Sunday, November 6, 2011
Orissa tightens rules for iron ore sales
Sunday, 06 Nov 2011
Sponge iron units and other consuming industries dependent on supplies of iron ore from Orissa face uncertainty after a government order virtually froze movement of ore from mines in the state to other states.
The order by the Deputy Director Mines Joda Keonjhar district comes close on the heels of the detection of alleged irregularity in utilization of iron ore by Rashmi Metaliks and Rashmi Cement a few weeks ago.
The Orissa government order requires iron ore consuming units located outside the state to submit a plethora of documents confirming proper utilization of the mineral from 2007-08 to 2009-10. According to an Orissa government source, the verification of the entire procurement in last four years has to be complete first.
But then verification is not easy. The exercise has proved to be tardy. More than 100 firms that have submitted documents for verification over two weeks ago are yet to receive clearance. Another 100 or so, due to submit their documents shortly, keep their fingers crossed.
This is important to prevent repetition of Rashmi Metaliks and Rashmi Cement like situation wherein large quantities of iron ore meant for domestic consumption were sent to ports by road for exports, thus depriving various government departments of their legitimate revenue earnings.
(Sourced from BL)
Sponge iron units and other consuming industries dependent on supplies of iron ore from Orissa face uncertainty after a government order virtually froze movement of ore from mines in the state to other states.
The order by the Deputy Director Mines Joda Keonjhar district comes close on the heels of the detection of alleged irregularity in utilization of iron ore by Rashmi Metaliks and Rashmi Cement a few weeks ago.
The Orissa government order requires iron ore consuming units located outside the state to submit a plethora of documents confirming proper utilization of the mineral from 2007-08 to 2009-10. According to an Orissa government source, the verification of the entire procurement in last four years has to be complete first.
But then verification is not easy. The exercise has proved to be tardy. More than 100 firms that have submitted documents for verification over two weeks ago are yet to receive clearance. Another 100 or so, due to submit their documents shortly, keep their fingers crossed.
This is important to prevent repetition of Rashmi Metaliks and Rashmi Cement like situation wherein large quantities of iron ore meant for domestic consumption were sent to ports by road for exports, thus depriving various government departments of their legitimate revenue earnings.
(Sourced from BL)
Thursday, October 27, 2011
CBI focuses on iron ore exports by J Reddy
Hyderabad, October 27, 2011
The Central Bureau of Investigation (CBI), probing illegal mining by former Karnataka minister Gali Janardhana Reddy, is now focusing its attention on the export of iron ore by the mining baron.
A team of CBI officials led by Joint Director VV Lakshminarayana Thursday reached Nellore
district and began the probe at Krishnapatnam port, from where the maximum quantity of iron ore was exported by Obulapuram Mining Company (OMC) owned by Janardhana Reddy.
"Iron ore was exported from various ports and the maximum percentage was from Krishnapatnam port. We want to know how much was exported from here and what procedures the port authorities followed," Lakshminarayana told reporters.
The Central Bureau of Investigation (CBI), probing illegal mining by former Karnataka minister Gali Janardhana Reddy, is now focusing its attention on the export of iron ore by the mining baron.
A team of CBI officials led by Joint Director VV Lakshminarayana Thursday reached Nellore
district and began the probe at Krishnapatnam port, from where the maximum quantity of iron ore was exported by Obulapuram Mining Company (OMC) owned by Janardhana Reddy.
"Iron ore was exported from various ports and the maximum percentage was from Krishnapatnam port. We want to know how much was exported from here and what procedures the port authorities followed," Lakshminarayana told reporters.
The federal agency will also gather information from customs officials with regard to exports from the private port.
"The port authorities had already sent some documents to us. We have examined them and have come here as part of the investigations," he said.
According to the Karnataka Lokayukta report, the maximum export of illegal iron ore took place from Krishnapatnam port. Out of the total iron ore exports of 3,31,04,866 tonnes from seven ports since 2006-07, Krishnapatnam accounted for 1,11,70,994 tonnes.
Lakshminarayana, who is also leading the investigations into alleged illegal assets of MP Y.S. Jaganmohan Reddy, said their main concentration was on illegal mining as the arrests had been made in the case and "we have to soon file the charge sheet".
Janardhana Reddy and his brother-in-law and OMC managing director B.V. Srinivasa Reddy are currently lodged in Chanchalguda Central Jail here.
The CBI arrested the duo from Bellary in Karnataka Sep 5 in connection with illegal mining in Andhra Pradesh's Anantapur district bordering Karnataka. The probe was ordered by the Andhra Pradesh government in 2009.
The Supreme Court last month ordered the CBI probe into illegal mining in Karnataka.
(sourced Hindustan Times)
Saturday, October 15, 2011
Bellary, CBI officials continue raids targeting mining areas
Saturday, Oct 15, 2011
CBI officials continued their raids targeting mining areas of Bellary on Friday.
They reached Bellary at midnight on Thursday and began their operations from 9am after reaching Sandur taluk.
Earlier, raids were first conducted on Deccan Mining Syndicate (DMS) which is said to be involved in illegal mining that was carried out by Associated Mining Company (AMC) belonging to G Aruna Lakshmi, wife of former minister G Janardhana Reddy.
The 15-member team was headed by DIG and CBI, Hyderabad. The raids were conducted on the leased mining areas of DMS. This is the second such raid by CBI officials on DMS property.
The officials came armed with documents to prove DMS had occupied about 42 hectares illegally without getting any lease grants. AMC occupied 10 hectares without proper grants.
Tahsildar KB Shivakumar, range forest officer Gopal, mines and geology department official Shankar, ACF officer Venkatesh and others provided relevant information on illegal occupation to CBI officials.
The officials then visited NMDC and collected details of irregularities alleged committed by AMC.
The raids followed a Supreme Court order to investigate the irregularities that were committed by G Janardhan Reddy and others associated with AMC and OMC. CBI officials also conducted raids on a couple of close aides of Reddy in Bellary, Hospet, Toranagallu and DMS.
According to a CBI official source, first information report was prepared on 134 persons after the Supreme Court passed an order to register cases against Associated Mining Company (AMC) and DMS.
In the meantime, former Lokayukta justice N Santosh Hegde hailed the raids by CBI officials from Andhra Pradesh. They were able to arrest G Janardhana Reddy for his involvement in illegal mining.
Although CBI officials based in Karnataka had conducted raids a couple of times, nothing came out of that. Instead of raids, action should be initiated, Hegde said.
(sourced DNA)
CBI officials continued their raids targeting mining areas of Bellary on Friday.
They reached Bellary at midnight on Thursday and began their operations from 9am after reaching Sandur taluk.
Earlier, raids were first conducted on Deccan Mining Syndicate (DMS) which is said to be involved in illegal mining that was carried out by Associated Mining Company (AMC) belonging to G Aruna Lakshmi, wife of former minister G Janardhana Reddy.
The 15-member team was headed by DIG and CBI, Hyderabad. The raids were conducted on the leased mining areas of DMS. This is the second such raid by CBI officials on DMS property.
The officials came armed with documents to prove DMS had occupied about 42 hectares illegally without getting any lease grants. AMC occupied 10 hectares without proper grants.
Tahsildar KB Shivakumar, range forest officer Gopal, mines and geology department official Shankar, ACF officer Venkatesh and others provided relevant information on illegal occupation to CBI officials.
The officials then visited NMDC and collected details of irregularities alleged committed by AMC.
The raids followed a Supreme Court order to investigate the irregularities that were committed by G Janardhan Reddy and others associated with AMC and OMC. CBI officials also conducted raids on a couple of close aides of Reddy in Bellary, Hospet, Toranagallu and DMS.
According to a CBI official source, first information report was prepared on 134 persons after the Supreme Court passed an order to register cases against Associated Mining Company (AMC) and DMS.
In the meantime, former Lokayukta justice N Santosh Hegde hailed the raids by CBI officials from Andhra Pradesh. They were able to arrest G Janardhana Reddy for his involvement in illegal mining.
Although CBI officials based in Karnataka had conducted raids a couple of times, nothing came out of that. Instead of raids, action should be initiated, Hegde said.
(sourced DNA)
Tuesday, September 20, 2011
NMDC raises iron ore output, steelmakers unhappy with e-auction prices
September20, 2011
According to local media reports, Indian state-owned iron ore miner National Mineral Development Corporation (NMDC) has increased iron ore production from India's Karnataka state up to 30,000 mt per day to meet the shortage faced by iron and steel making units in southern India.
NMDC is currently producing in the range of 28,000-30,000 mt a day. The company has planned to increase daily production to 35,000 mt; however, the rains in the region have not allowed this.
NMDC is the only company allowed to mine iron ore from Karnataka where the supreme court has banned mining activities. With NMDC increasing its production and the e-auction of iron ore stocks in the state, the demand of raw material in the state is expected to be relieved.
However, steelmakers are not very pleased with the base price for e-auction commencing on Wednesday. After the auctioning of the first batch of 400,000 mt, the Bangalore Chamber of Industry and Commerce (BCIC) suggested that the reserve price has been determined disregarding the predominant market prices, thus exploiting the buyers who are in serious need of raw material
Tags: iron ore , raw mat , India , Indian Subcon , Southeast Asia , production , economics , steelmaking , South Asia
(sourced steelorbis)
According to local media reports, Indian state-owned iron ore miner National Mineral Development Corporation (NMDC) has increased iron ore production from India's Karnataka state up to 30,000 mt per day to meet the shortage faced by iron and steel making units in southern India.
NMDC is currently producing in the range of 28,000-30,000 mt a day. The company has planned to increase daily production to 35,000 mt; however, the rains in the region have not allowed this.
NMDC is the only company allowed to mine iron ore from Karnataka where the supreme court has banned mining activities. With NMDC increasing its production and the e-auction of iron ore stocks in the state, the demand of raw material in the state is expected to be relieved.
However, steelmakers are not very pleased with the base price for e-auction commencing on Wednesday. After the auctioning of the first batch of 400,000 mt, the Bangalore Chamber of Industry and Commerce (BCIC) suggested that the reserve price has been determined disregarding the predominant market prices, thus exploiting the buyers who are in serious need of raw material
Tags: iron ore , raw mat , India , Indian Subcon , Southeast Asia , production , economics , steelmaking , South Asia
(sourced steelorbis)
Thursday, September 8, 2011
Indian iron ore mining mess - Probe uses satellite images
Thursday, 08 Sep 2011
The CBI took recourse to satellite imagery to trace huge amounts of iron ore stacked illegally around Obulapuram Mining Company.
While OMC promoters claimed they had been excavated from the Obulapuram mines, investigators discovered that most stocks found there had been transported illegally from mines dotting the Karnataka to Andhra Pradesh border.
The satellite images, a CBI source claimed, nailed the lie of the OMC promoters. The source said that "It was clear that iron ore from other mines had been carted to Obulapuram mines and shown as an OMC product.”
While Obulapuram mines are located in Andhra Pradesh's Ananpur district, OMC's head office is located in neighboring Bellary, which falls in Karnataka. Besides Janardhana Reddy, his brothers Karunakara and Somsekhara are the co promoters of OMC.
CBI, along with the Survey of India, had earlier this year been asked by the Supreme Court to undertake a survey of the iron-ore mines leased to the Reddy brothers in Anantpur district. As part of the survey, the two agencies are learnt to have taken recourse to satellite imagery.
The Reddys are accused of mining far beyond the 25.9 hectares their company was allowed. CBI alleges the Reddys dug deep into the Bellary Reserve forest area, which includes portions of both Anantpur district of Andhra Pradesh and Bellary in Karnataka.
Mr Janardhana and his brother in law Mr Sreenivas Reddy the managing director of Bellary Mining Corporation, were on Monday arrested by CBI for illegal mining by OMC. They have been remanded to judicial custody.
(Sourced from ET)
The CBI took recourse to satellite imagery to trace huge amounts of iron ore stacked illegally around Obulapuram Mining Company.
While OMC promoters claimed they had been excavated from the Obulapuram mines, investigators discovered that most stocks found there had been transported illegally from mines dotting the Karnataka to Andhra Pradesh border.
The satellite images, a CBI source claimed, nailed the lie of the OMC promoters. The source said that "It was clear that iron ore from other mines had been carted to Obulapuram mines and shown as an OMC product.”
While Obulapuram mines are located in Andhra Pradesh's Ananpur district, OMC's head office is located in neighboring Bellary, which falls in Karnataka. Besides Janardhana Reddy, his brothers Karunakara and Somsekhara are the co promoters of OMC.
CBI, along with the Survey of India, had earlier this year been asked by the Supreme Court to undertake a survey of the iron-ore mines leased to the Reddy brothers in Anantpur district. As part of the survey, the two agencies are learnt to have taken recourse to satellite imagery.
The Reddys are accused of mining far beyond the 25.9 hectares their company was allowed. CBI alleges the Reddys dug deep into the Bellary Reserve forest area, which includes portions of both Anantpur district of Andhra Pradesh and Bellary in Karnataka.
Mr Janardhana and his brother in law Mr Sreenivas Reddy the managing director of Bellary Mining Corporation, were on Monday arrested by CBI for illegal mining by OMC. They have been remanded to judicial custody.
(Sourced from ET)
Sunday, August 28, 2011
India's Sesa Goa says mining ban to hit performance
MUMBAI (Reuters) - India's Sesa Goa Ltd , owned by London-listed Vedanta Plc , said on Saturday its performance would be affected by an order from the country's top court extending a ban on mining to two more districts of a key iron ore producing state.
The Supreme Court on Friday extended the ban to Tumkur and Chitradurga districts of the southern Indian state Karnataka, Anita Shenoy, counsel for the Karnataka state government, told Reuters.
The two districts account for about seven percent of India's estimated 213 million tonnes of annual iron ore output, and the ban could hit exports from the world's third-largest supplier of the steel-making material.
Sesa Goa said in a statement the mining activities at the company's Chitradurga mine would have to be stopped with immediate effect as a result of the court order and that would "adversely affect" the performance of the company.
(sourced Reuters)
Thursday, August 11, 2011
Blood and Iron' in Bellary: A shocking tale
Thu,Aug 11, 2011
New Delhi:
Documentary Film: "Blood and Iron";
Director: Paranjoy Guha Thakurta;
Rating:****
Even the conservative statistics are staggering - 500,000 tonnes of iron ore stolen, leading to a loss of Rs.5,000 crore to the nation (a more real estimate is 10 times this sum). Where did the money go? According to the film, into the coffers of the three Galli brothers - Galli Janardhana Reddy, Galli Karunakara Reddy and Galli Somashekara Reddy -, their associates and the two largest political parties in the nation, the BJP and Congress.
Is it any wonder that right at the beginning of this bold 96-minute documentary a person puts the loot into perspective, saying, "It is the biggest scandal of independent India" while another declares, "The way these guys loot the country makes Nader Shah and Ghaznavids look like pickpockets."
And yet the Galli brothers were holding ministerial berths in the state legislature until recently. Adding a sense of irony, the film shows G. Janardhana Reddy claiming innocence and stating all the people merely act out our destiny. Convenient reasoning indeed for a man who has broken almost every law in India and has literally moved state borders to his convenience.
According to Guha Thakurta, the film is about the tripartite confluence of crime, business and politics in southern India. You can add another - religion. For two reasons - one, that it is the BJP that has supported the Galli brothers and, two, that the brothers have 'donated' a 30-kg gold crown studded with a stunning emerald of 816 carats and 35,554 diamonds to Tirupati. The crown of the lord of Tirupati is thus washed in blood and iron.
This looting of the iron is not just the BJP's doing. In adjoining Andhra Pradesh, it is the Congress party that provides them patronage. "Blood and Iron" thus gives ample proof that politicians really have no party and that the only undisputed fact about them is that they are corrupt.
The greatest strength of the film is that inside 90 minutes it manages to dig into all the angles to this greatest pilferage of India's resource, including the environmental one. The visuals of once green mountains now ripped red, an impoverished dog on red soil and a white cow bathing in a brick red river make you feel as if the hills have been skinned alive and mother earth's blood is flowing through its red streams.
Guha Thakurta uses his three and a half decades of journalistic experience to interview a cross section of people - judges, journalists, activist, writers, singers and the common man - and paints a picture of a nation in decline, of mother India being raped by her own sons.
Weaving music and protest songs into the narrative, the film gives a complete ringside view of the truth behind the greatest loot of the nation.
Guha Thakurta says, "Bellary has become a synonym for everything wrong with Indian democracy."
New Delhi:
Documentary Film: "Blood and Iron";
Director: Paranjoy Guha Thakurta;
Rating:****
"Scandals like 2G, CWG, etc, lead to a notional loss of money. When you consider illegal mining, there's no comparison because that is the loss of a non-renewable resource that can never be got back," Paranjoy Guha Thakurta thus explains why he made his film, "Blood and Iron", on illegal iron ore mining in Bellary rather than, say, on other scams that have captured the nation's imagination.
Even the conservative statistics are staggering - 500,000 tonnes of iron ore stolen, leading to a loss of Rs.5,000 crore to the nation (a more real estimate is 10 times this sum). Where did the money go? According to the film, into the coffers of the three Galli brothers - Galli Janardhana Reddy, Galli Karunakara Reddy and Galli Somashekara Reddy -, their associates and the two largest political parties in the nation, the BJP and Congress.
Is it any wonder that right at the beginning of this bold 96-minute documentary a person puts the loot into perspective, saying, "It is the biggest scandal of independent India" while another declares, "The way these guys loot the country makes Nader Shah and Ghaznavids look like pickpockets."
And yet the Galli brothers were holding ministerial berths in the state legislature until recently. Adding a sense of irony, the film shows G. Janardhana Reddy claiming innocence and stating all the people merely act out our destiny. Convenient reasoning indeed for a man who has broken almost every law in India and has literally moved state borders to his convenience.
According to Guha Thakurta, the film is about the tripartite confluence of crime, business and politics in southern India. You can add another - religion. For two reasons - one, that it is the BJP that has supported the Galli brothers and, two, that the brothers have 'donated' a 30-kg gold crown studded with a stunning emerald of 816 carats and 35,554 diamonds to Tirupati. The crown of the lord of Tirupati is thus washed in blood and iron.
This looting of the iron is not just the BJP's doing. In adjoining Andhra Pradesh, it is the Congress party that provides them patronage. "Blood and Iron" thus gives ample proof that politicians really have no party and that the only undisputed fact about them is that they are corrupt.
The greatest strength of the film is that inside 90 minutes it manages to dig into all the angles to this greatest pilferage of India's resource, including the environmental one. The visuals of once green mountains now ripped red, an impoverished dog on red soil and a white cow bathing in a brick red river make you feel as if the hills have been skinned alive and mother earth's blood is flowing through its red streams.
Guha Thakurta uses his three and a half decades of journalistic experience to interview a cross section of people - judges, journalists, activist, writers, singers and the common man - and paints a picture of a nation in decline, of mother India being raped by her own sons.
Weaving music and protest songs into the narrative, the film gives a complete ringside view of the truth behind the greatest loot of the nation.
Guha Thakurta says, "Bellary has become a synonym for everything wrong with Indian democracy."
Thursday, August 4, 2011
Iron ore project threatened by politicking
Thu,Aug04, 2011 | sourced UPI
Political controversy over an iron ore mine development in central Uruguay threatens to scuttle the project amid signs the Indian mining company and investment partner may be losing patience over the politicking by opposition and environmentalist groups, officials indicated.
The Minera Aratiri project's early development is seen by the government of President Jose Mujica as the key likely to open up an underdeveloped part of the country to new business opportunities.
The opposition, local residents and environmentalist groups disagree. They argue the mine's large-scale exploitation will ruin vast tracts of pristine environment and not benefit Uruguayan economy or the region to the extent originally claimed in feasibility reports.
Alarm bells sounded when the Indian iron-ore mining group Zamin Ferrous Resources downgraded the project on its international priority list from the first to the fourth position. Zamin Ferrous planned to invest about $1 billion in the project but now says it will put the funds in its other projects.
Zamin told Uruguayan officials it was surprised by the rising controversy over the project. The Uruguayans in turn told the investors of their disappointment but admitted there had been too much politicking over the project. Mujica condemned it as "political cackling."
Aratiri Project General Manager Fernando Puntigliano said the project was put on the back burner mainly because of the political controversy over its feasibility and delays already affecting a completion schedule.
Critics of the project oppose the plan to exploit the open pit magnetite iron ore deposit, which they see as potentially destructive to the surrounding area. Large deposits of magnetite, a mineral with high iron ore content, have been found on the border of Durazno and Treinta y Tres departments.
Studies have established about 250 million tons of the ore deposits but further projections say the final recoverable quantity may exceed 1 billion tons.
A 130-mile slurry pipeline for transporting the ore to a planned new port on the Atlantic coast has also triggered the wrath of environmentalist groups, local farmers and residents, who challenged the plans for its potential damage to the environment.
Meanwhile, Mujica is exploring the feasibility of turning the mine's development into an equal partnership joint venture.
Puntigliano said Zamin will continue work on the project but welcomed ideas for a state partnership.
All private companies in Uruguay like to have the state as a partner, he said.
Zamin Ferrous is an international group registered in Jersey, Channel Islands, with offices in London, Sao Paulo and Switzerland.
The company has ongoing iron ore and coal projects in Brazil, Chile, Bolivia, Malawi and Mozambique and exports to China, India and the Middle East.
The Minera Aratiri project's early development is seen by the government of President Jose Mujica as the key likely to open up an underdeveloped part of the country to new business opportunities.
The opposition, local residents and environmentalist groups disagree. They argue the mine's large-scale exploitation will ruin vast tracts of pristine environment and not benefit Uruguayan economy or the region to the extent originally claimed in feasibility reports.
Alarm bells sounded when the Indian iron-ore mining group Zamin Ferrous Resources downgraded the project on its international priority list from the first to the fourth position. Zamin Ferrous planned to invest about $1 billion in the project but now says it will put the funds in its other projects.
Zamin told Uruguayan officials it was surprised by the rising controversy over the project. The Uruguayans in turn told the investors of their disappointment but admitted there had been too much politicking over the project. Mujica condemned it as "political cackling."
Aratiri Project General Manager Fernando Puntigliano said the project was put on the back burner mainly because of the political controversy over its feasibility and delays already affecting a completion schedule.
Critics of the project oppose the plan to exploit the open pit magnetite iron ore deposit, which they see as potentially destructive to the surrounding area. Large deposits of magnetite, a mineral with high iron ore content, have been found on the border of Durazno and Treinta y Tres departments.
Studies have established about 250 million tons of the ore deposits but further projections say the final recoverable quantity may exceed 1 billion tons.
A 130-mile slurry pipeline for transporting the ore to a planned new port on the Atlantic coast has also triggered the wrath of environmentalist groups, local farmers and residents, who challenged the plans for its potential damage to the environment.
Meanwhile, Mujica is exploring the feasibility of turning the mine's development into an equal partnership joint venture.
Puntigliano said Zamin will continue work on the project but welcomed ideas for a state partnership.
All private companies in Uruguay like to have the state as a partner, he said.
Zamin Ferrous is an international group registered in Jersey, Channel Islands, with offices in London, Sao Paulo and Switzerland.
The company has ongoing iron ore and coal projects in Brazil, Chile, Bolivia, Malawi and Mozambique and exports to China, India and the Middle East.
Wednesday, July 27, 2011
NMDC Q1 iron ore production up by 7pct
Wednesday, 27 Jul 2011
State run iron ore miner NMDC said its production had risen by about 7% to 6.1 million tonne during the April to June quarter riding on the back of improved logistics and better weather conditions. The company had produced 5.7 million tonne of iron ore in the corresponding quarter of 2010-11.
Mr Rana Som CMD of NMDC said that "At this time last year, the seasonal rains had played a dampener but this year we produced more as rains did not impact our operations that much.”
Mr Som said that during the quarter, sales of iron ore rose by about 12% at 6.95 million tonne vis a vis 6.2 million tonne in the first quarter of last year.
Mr Som said that "Sales volumes exceeded production during the quarter due to unsold inventory and increased availability of railway wagons.”
Talking about the outlook for the current quarter, the NMDC chairman said that both, production and sales of iron ore will be exceeding the targets. He added that "In July, our production has been 2 million tonne of iron ore, while sales of the raw material has been reported at 2.3 million tonne. So we have already exceeded the targets for the month.”
(sourced from BS)
State run iron ore miner NMDC said its production had risen by about 7% to 6.1 million tonne during the April to June quarter riding on the back of improved logistics and better weather conditions. The company had produced 5.7 million tonne of iron ore in the corresponding quarter of 2010-11.
Mr Rana Som CMD of NMDC said that "At this time last year, the seasonal rains had played a dampener but this year we produced more as rains did not impact our operations that much.”
Mr Som said that during the quarter, sales of iron ore rose by about 12% at 6.95 million tonne vis a vis 6.2 million tonne in the first quarter of last year.
Mr Som said that "Sales volumes exceeded production during the quarter due to unsold inventory and increased availability of railway wagons.”
Talking about the outlook for the current quarter, the NMDC chairman said that both, production and sales of iron ore will be exceeding the targets. He added that "In July, our production has been 2 million tonne of iron ore, while sales of the raw material has been reported at 2.3 million tonne. So we have already exceeded the targets for the month.”
(sourced from BS)
Tuesday, July 26, 2011
Indian iron ore mining mess - Mines closure in Karnataka may hit steel mills
Tuesday, 26 Jul 2011 | sourced ET
Last week, when Sesa Goa cut its revenue guidance for the current fiscal year due to tight ore supply from Karnataka, it spoke volumes about production problem at one of the largest mineral producing states of the country.
Karnataka, which accounts for a third of India's iron ore output, had to suspend operations in about 50 mines affecting supplies to a host of steelmakers and prompting large players such as JSW Steel and TATA Metaliks to consider a stoppage in production.
The shuttering of the mines followed a survey by a court appointed panel that found most of these mines, owned by private owners, operating without clear boundary sites, encroaching on forest land and dumping mineral waste outside their mines. This was in addition to an earlier directive by the state government to ban exports.
The closure has led to uncertainty about supplies of about 40 million tonnes of iron ore that comes from the region. Karnataka supplies iron ore to severalsteel plants such as JSW Steel, TATA Metaliks, Jindal Saw, Kirloskar Ferrous Industries and Kalyani Steel.
In his representation to the Karnataka government, Mr Vinod Nowal CEO of JSW Steel said that as the company's daily iron ore requirements is 53,000 tonnes and the company has stock of only 150,000 tonnes, operations at the plant could likely be stopped.
TATA Metaliks, the largest producer of foundry grade pig iron which supplies to automobile and engineering companies, said the closure notices issued by the department of mines and geology is ultra vires the Supreme Court order dated May 6th 2011, which did not stipulate stoppage of mining activities.
Mr Sudhin Mitter vice president wrote to Central Empowered Committee chairman Mr PV Jayakrishnan that "Iron ore has no substitute for the production of pig iron and our stock level will last for a very short period. The abrupt closure of mining in Bellary will result in complete stoppage of production at the plant.”
According to the Federation of Indian Mineral Industries, iron ore shipments from India, the world's third largest exporter of the mineral, will fall to 64 million tones in the current fiscal year. Karnataka has 9 billion tonnes of reserves accounting for nearly 38% of India's deposits. The crackdown on illegal mining has come at a time when Karnataka has emerged as a much sought-after location for major global steel sector companies planning to make inroads into India.
Last week, when Sesa Goa cut its revenue guidance for the current fiscal year due to tight ore supply from Karnataka, it spoke volumes about production problem at one of the largest mineral producing states of the country.
Karnataka, which accounts for a third of India's iron ore output, had to suspend operations in about 50 mines affecting supplies to a host of steelmakers and prompting large players such as JSW Steel and TATA Metaliks to consider a stoppage in production.
The shuttering of the mines followed a survey by a court appointed panel that found most of these mines, owned by private owners, operating without clear boundary sites, encroaching on forest land and dumping mineral waste outside their mines. This was in addition to an earlier directive by the state government to ban exports.
The closure has led to uncertainty about supplies of about 40 million tonnes of iron ore that comes from the region. Karnataka supplies iron ore to severalsteel plants such as JSW Steel, TATA Metaliks, Jindal Saw, Kirloskar Ferrous Industries and Kalyani Steel.
In his representation to the Karnataka government, Mr Vinod Nowal CEO of JSW Steel said that as the company's daily iron ore requirements is 53,000 tonnes and the company has stock of only 150,000 tonnes, operations at the plant could likely be stopped.
TATA Metaliks, the largest producer of foundry grade pig iron which supplies to automobile and engineering companies, said the closure notices issued by the department of mines and geology is ultra vires the Supreme Court order dated May 6th 2011, which did not stipulate stoppage of mining activities.
Mr Sudhin Mitter vice president wrote to Central Empowered Committee chairman Mr PV Jayakrishnan that "Iron ore has no substitute for the production of pig iron and our stock level will last for a very short period. The abrupt closure of mining in Bellary will result in complete stoppage of production at the plant.”
According to the Federation of Indian Mineral Industries, iron ore shipments from India, the world's third largest exporter of the mineral, will fall to 64 million tones in the current fiscal year. Karnataka has 9 billion tonnes of reserves accounting for nearly 38% of India's deposits. The crackdown on illegal mining has come at a time when Karnataka has emerged as a much sought-after location for major global steel sector companies planning to make inroads into India.
Monday, July 18, 2011
Indian iron ore mining mess - Karnataka placing RFID tags
Monday, 18 Jul 2011
Exports of iron ore from Karnataka are likely to be delayed by over three months, as the state government is yet to put in place the infrastructure to regulate trade. Though the Supreme Court had directed the government to start issuing export permits in May, the department of mines and geology needs more time to issue them.
Mr HR Srinivasa director department of mines and geology said that “SC had asked us to finalise the new rules and regulations, and we have notified them. However, we need at least three months to get ourselves equipped with the modern infrastructure before issuing export permits. We are also waiting for the central empowered committee, appointed by SC, to complete its survey and demarcation of mines in Bellary.”
He said the department has initiated several new measures to regulate exports, like setting up of checkpoints, installation of barcoding and radio frequency identification readers and introduction of smart cards to monitor the movement of iron ore laden lorries. The state government has provided a budgetary support of four crore rupees to procure new equipment.
Mr Srinivasa said that the department has identified 28 places to set up checkpoints, and is looking for land there. Land has been acquired in four places and the acquisition will be completed in three months.
He added that “We have introduced barcoding and hologram for ore traffic. But this is not fool-proof. So, we will introduce smart cards, along with existing electronic permits for exporters. Mining companies are required to apply for transportation permits online. This has reduced our work pressure by 70 per cent and prevents duplication.”
The department is issuing an average of 3,000 permits for transportation of ore every day.
Next, it would be making compulsory for lorries to use RFID tags, so that the identification gets automated at checkpoints. This will identify movement 200 metres away from the checkpoint. Three new electronic weigh bridges have been set up, and the fourth one is under way, to reduce congestion.
The third step is to replace paper permits with contact-less smart cards. The government has procured the software and hardware from Ahmedabad based Code Solutions, a division of GNFC Ltd. This will be made operational within six months.
More than a dozen companies, including Mineral Enterprises Limited, MSPL, Sesa Goa and Shree Kumaraswamy Mineral Enterprises, have applied to the department of mines and geology and are waiting for permits.
(Sourced from BS)
Exports of iron ore from Karnataka are likely to be delayed by over three months, as the state government is yet to put in place the infrastructure to regulate trade. Though the Supreme Court had directed the government to start issuing export permits in May, the department of mines and geology needs more time to issue them.
Mr HR Srinivasa director department of mines and geology said that “SC had asked us to finalise the new rules and regulations, and we have notified them. However, we need at least three months to get ourselves equipped with the modern infrastructure before issuing export permits. We are also waiting for the central empowered committee, appointed by SC, to complete its survey and demarcation of mines in Bellary.”
He said the department has initiated several new measures to regulate exports, like setting up of checkpoints, installation of barcoding and radio frequency identification readers and introduction of smart cards to monitor the movement of iron ore laden lorries. The state government has provided a budgetary support of four crore rupees to procure new equipment.
Mr Srinivasa said that the department has identified 28 places to set up checkpoints, and is looking for land there. Land has been acquired in four places and the acquisition will be completed in three months.
He added that “We have introduced barcoding and hologram for ore traffic. But this is not fool-proof. So, we will introduce smart cards, along with existing electronic permits for exporters. Mining companies are required to apply for transportation permits online. This has reduced our work pressure by 70 per cent and prevents duplication.”
The department is issuing an average of 3,000 permits for transportation of ore every day.
Next, it would be making compulsory for lorries to use RFID tags, so that the identification gets automated at checkpoints. This will identify movement 200 metres away from the checkpoint. Three new electronic weigh bridges have been set up, and the fourth one is under way, to reduce congestion.
The third step is to replace paper permits with contact-less smart cards. The government has procured the software and hardware from Ahmedabad based Code Solutions, a division of GNFC Ltd. This will be made operational within six months.
More than a dozen companies, including Mineral Enterprises Limited, MSPL, Sesa Goa and Shree Kumaraswamy Mineral Enterprises, have applied to the department of mines and geology and are waiting for permits.
(Sourced from BS)
Tuesday, July 5, 2011
Closure of mining operations may hit steel output in South
By Mahesh Kulkarni, | Business Stanadard
Chennai/ Bangalore:
Chennai/ Bangalore:
The latest report of the Central Empowered Committee (CEC) to the Supreme Court recommending the closure of mining operations of 21 mining companies in Bellary-Hospet region is likely to have a far-reaching impact on the domestic steel industry.
The closure of these mines may result in a shortage of about 5-10 million tonnes of iron ore for domestic steel mills in south India.
The CEC, on July 4, recommended the suspension of mining operations by 21 companies. With this, mining will be halted by 29 companies. Last month, the CEC had recommended the closure of mines by six other companies.
However, the CEC is yet to complete its survey of 60 other mines and it has been granted additional time by the Supreme Court.
Once it completes the survey of all mines, it may recommend the closure of mining by many other companies, the sources said.
Out of about 150 operating mines in Karnataka, about 51 mines are already closed as a result of ban on exports. Of the remaining 99 mines, 27 mines have been asked to stop operations, leaving only 72 mines in the business. The mining industry estimates that finally only 40 mines may be left in the business, which means that the supply of iron ore to domestic steel mills will come down by about 5 million metric tonnes.
Presently, the mining companies in Karnataka supply about 25 million tonnes to domestic steel mills. “With the suspension of mining by 29 companies and assuming that the supreme court orders suspension of mining by a few other companies, the supply of iron ore to domestic steel mills will be affected severely. Already, exports from Karnataka have been stopped completely and the new development would be a big blow to the industry,” Basant Poddar, managing director, Mineral Enterprises Limited said.
He said as against the supply of an average 25 million tonnes iron ore to steel mills from Karnataka mines, the steel industry may expect about 15-20 million tonnes, which is about two-thirds of the demand. The demand from steel mills in south India is about 30 million tonnes annually.
Presently, in Karnataka alone, as many as 16 steel mills, including JSW Steels Limited, Kalyani Steels Ltd, Mukand Steels Ltd, Kirloskar Ferrous, VISL Bhadravathi, MSPL Ltd, BMM Ispat Ltd and Sathavahana Ispat among others source iron ore from Karnataka-based iron ore mines. Many other sponge iron manufacturers in Tamil Nadu and Goa also source iron ore from Karnataka.
“The operations of domestic steel mills will be severely affected with the shortage of iron ore from Karnataka as these mills cannot afford to shut down their furnaces,” industry sources said.
The total installed capacity of 16 steel mills in Karnataka is estimated to be 19 million tonnes per annum. Another 14 mills are in the pipeline and the total installed capacity would go up to 46 million tonnes.
The requirement of iron ore from all these mills is about 33 million tonnes.
The closure of these mines may result in a shortage of about 5-10 million tonnes of iron ore for domestic steel mills in south India.
The CEC, on July 4, recommended the suspension of mining operations by 21 companies. With this, mining will be halted by 29 companies. Last month, the CEC had recommended the closure of mines by six other companies.
However, the CEC is yet to complete its survey of 60 other mines and it has been granted additional time by the Supreme Court.
Once it completes the survey of all mines, it may recommend the closure of mining by many other companies, the sources said.
Out of about 150 operating mines in Karnataka, about 51 mines are already closed as a result of ban on exports. Of the remaining 99 mines, 27 mines have been asked to stop operations, leaving only 72 mines in the business. The mining industry estimates that finally only 40 mines may be left in the business, which means that the supply of iron ore to domestic steel mills will come down by about 5 million metric tonnes.
Presently, the mining companies in Karnataka supply about 25 million tonnes to domestic steel mills. “With the suspension of mining by 29 companies and assuming that the supreme court orders suspension of mining by a few other companies, the supply of iron ore to domestic steel mills will be affected severely. Already, exports from Karnataka have been stopped completely and the new development would be a big blow to the industry,” Basant Poddar, managing director, Mineral Enterprises Limited said.
He said as against the supply of an average 25 million tonnes iron ore to steel mills from Karnataka mines, the steel industry may expect about 15-20 million tonnes, which is about two-thirds of the demand. The demand from steel mills in south India is about 30 million tonnes annually.
Presently, in Karnataka alone, as many as 16 steel mills, including JSW Steels Limited, Kalyani Steels Ltd, Mukand Steels Ltd, Kirloskar Ferrous, VISL Bhadravathi, MSPL Ltd, BMM Ispat Ltd and Sathavahana Ispat among others source iron ore from Karnataka-based iron ore mines. Many other sponge iron manufacturers in Tamil Nadu and Goa also source iron ore from Karnataka.
“The operations of domestic steel mills will be severely affected with the shortage of iron ore from Karnataka as these mills cannot afford to shut down their furnaces,” industry sources said.
The total installed capacity of 16 steel mills in Karnataka is estimated to be 19 million tonnes per annum. Another 14 mills are in the pipeline and the total installed capacity would go up to 46 million tonnes.
The requirement of iron ore from all these mills is about 33 million tonnes.
Sunday, June 19, 2011
NMDC kick starts Bailadila to Visakhapatnam iron ore pipeline project
Sunday, 19 Jun 2011
Indian iron ore miner NMDC Ltd has finalised INR 3,000 crore slurry pipeline project for evacuating ore from its Bailadila mines in Chhattisgarh to Visakhapatnam in Andhra Pradesh.
Mr Rana Som CMD of NMDC said that “I have just finalised the complete structure of laying the pipeline for evacuation of material from our Bailadila mines to Jagdalpur in the first stage and to Vizag in the second stage.”
He added that “We held a meeting on the technical and financial aspects, where we have taken a decision to kick off the project.”
He said the company decided to set up the pipeline, connecting Bailadila with Vizag steel plant, because evacuation of iron ore from the mines was posing a problem on account of damage to Essar’s slurry pipeline and constraints in rail movement due to the Naxal movement.
In the first phase, the company would lay a 150 kilometre pipeline from Bailadila to Jagdalpur in 18 months at an investment of INR 1,000 crore. The second phase would see laying of pipeline from Jagdalpur to Visakhapatnam at an investment of INR 2,000 crore.
Mr Som said that “We won’t wait for completion of Phase-I. We might as well execute Phase-II simultaneously.”
The execution of the project, according to Mr Som will enable NMDC to dispatch an additional 6 million tonnes to 7 million tonnes of ore.
He said that “To that extent, the production will also go up emphasizing that production and evacuation of ore were interlinked.” (sourced BS)
Indian iron ore miner NMDC Ltd has finalised INR 3,000 crore slurry pipeline project for evacuating ore from its Bailadila mines in Chhattisgarh to Visakhapatnam in Andhra Pradesh.
Mr Rana Som CMD of NMDC said that “I have just finalised the complete structure of laying the pipeline for evacuation of material from our Bailadila mines to Jagdalpur in the first stage and to Vizag in the second stage.”
He added that “We held a meeting on the technical and financial aspects, where we have taken a decision to kick off the project.”
He said the company decided to set up the pipeline, connecting Bailadila with Vizag steel plant, because evacuation of iron ore from the mines was posing a problem on account of damage to Essar’s slurry pipeline and constraints in rail movement due to the Naxal movement.
In the first phase, the company would lay a 150 kilometre pipeline from Bailadila to Jagdalpur in 18 months at an investment of INR 1,000 crore. The second phase would see laying of pipeline from Jagdalpur to Visakhapatnam at an investment of INR 2,000 crore.
Mr Som said that “We won’t wait for completion of Phase-I. We might as well execute Phase-II simultaneously.”
The execution of the project, according to Mr Som will enable NMDC to dispatch an additional 6 million tonnes to 7 million tonnes of ore.
He said that “To that extent, the production will also go up emphasizing that production and evacuation of ore were interlinked.” (sourced BS)
Monday, March 7, 2011
Iron Ore miners up in arms against export duty hike
Mon, March 7, 2011
By Hrithik Kiran Bagade, DHNS
By Hrithik Kiran Bagade, DHNS
Bangalore : Dealt with a double whammy in the form of ad valorem export duty hike on both their most staple revenue resource — fines and lumps, the country’s iron ore sector is up in arms over the Centre’s move.
Driving the final nail in the coffin of the iron ore industry was also the railway budget which increased freight charges by Rs 100 a tonne, hoping to take advantage of the bullish domestic iron ore market.
While Finance Minister Pranab Mukherjee’s logic in hiking the export duty from five per cent for iron ore fines and 15 per cent for lumps to a uniform 20 per cent on both — can be seen as an effort to soften the rising steel prices in the domestic market by discouraging exports of iron ore, the ore exporters do not agree with the logic.
According to the iron ore exporters, besides badly impinging on the export of iron ore, the Centre’s move would also sound the death-knell of the sector which is already caught in the illegal iron ore mining controversy, leading to its ban in Karnataka, one of the leading iron ore mining states.
Since the mining industry is labour intensive, creating obstacles to exports may lead to huge layoffs. An official of a major iron ore mining company, MSPL, argued that instead of hiking the export duty, the Centre and the State must take steps to curb illegal mining in order to uplift the sector which is already in the doldrums due to the illegal mining controversy.
The steel sector, which has been asking for such a measure for many years, is naturally happy as more ore will be available within the country. Justifying the sector’s demand, which the Centre, in turn, acceded to, an offical from Tata Steel put it: “It is our belief that iron ore as a natural resource is important for the steel industry. It is imperative that value addition of the ore is done within the country for higher realisation.”
However, Federation of Indian Mining Industry Secretary General R K Sharma refused to buy this argument. According to Sharma, the hike, coupled with increase in railway freight will not only make Indian iron ore uncompetitive in the global market it would also affect the export of fines. Furthermore, while reasoning that fines do not enjoy strong domestic demand, he argued that export duty hike would only result in huge stock building without adeqeuate storage facilities. He also added that hike in the duty on lumps will only result in slowdown in total ore mining because fine and lumps are mined together. This in turn may lead to higher price of steel and harm domestic consumers.
Emboldened by the budget’s favourable move, the Tata offical further argued that when iron ore is exported as a finished product with greater value addition, the net realisation is higher, quipping: “Why export the raw material, when the country is capable of producing and exporting the finished product?”
Mukherjee in his budget has also lowered export duty on iron ore pellets to zero to encourage higher value addition in exports. But ore miners say that the demand for pellets from China, the main importer of Indian fine ore, is low because the country has created a huge capacity for making pellets and it imports mostly fines. India, world’s third largest iron ore producer, sells most of its annual exports of 100 million tonne to China. Iron ore exports in April 2010-January 2011 stood at 75.11 million tonne, which was down by 18 per cent from 91.71 million tonne a year ago, according to Fimi data.
Driving the final nail in the coffin of the iron ore industry was also the railway budget which increased freight charges by Rs 100 a tonne, hoping to take advantage of the bullish domestic iron ore market.
While Finance Minister Pranab Mukherjee’s logic in hiking the export duty from five per cent for iron ore fines and 15 per cent for lumps to a uniform 20 per cent on both — can be seen as an effort to soften the rising steel prices in the domestic market by discouraging exports of iron ore, the ore exporters do not agree with the logic.
According to the iron ore exporters, besides badly impinging on the export of iron ore, the Centre’s move would also sound the death-knell of the sector which is already caught in the illegal iron ore mining controversy, leading to its ban in Karnataka, one of the leading iron ore mining states.
Since the mining industry is labour intensive, creating obstacles to exports may lead to huge layoffs. An official of a major iron ore mining company, MSPL, argued that instead of hiking the export duty, the Centre and the State must take steps to curb illegal mining in order to uplift the sector which is already in the doldrums due to the illegal mining controversy.
The steel sector, which has been asking for such a measure for many years, is naturally happy as more ore will be available within the country. Justifying the sector’s demand, which the Centre, in turn, acceded to, an offical from Tata Steel put it: “It is our belief that iron ore as a natural resource is important for the steel industry. It is imperative that value addition of the ore is done within the country for higher realisation.”
However, Federation of Indian Mining Industry Secretary General R K Sharma refused to buy this argument. According to Sharma, the hike, coupled with increase in railway freight will not only make Indian iron ore uncompetitive in the global market it would also affect the export of fines. Furthermore, while reasoning that fines do not enjoy strong domestic demand, he argued that export duty hike would only result in huge stock building without adeqeuate storage facilities. He also added that hike in the duty on lumps will only result in slowdown in total ore mining because fine and lumps are mined together. This in turn may lead to higher price of steel and harm domestic consumers.
Emboldened by the budget’s favourable move, the Tata offical further argued that when iron ore is exported as a finished product with greater value addition, the net realisation is higher, quipping: “Why export the raw material, when the country is capable of producing and exporting the finished product?”
Mukherjee in his budget has also lowered export duty on iron ore pellets to zero to encourage higher value addition in exports. But ore miners say that the demand for pellets from China, the main importer of Indian fine ore, is low because the country has created a huge capacity for making pellets and it imports mostly fines. India, world’s third largest iron ore producer, sells most of its annual exports of 100 million tonne to China. Iron ore exports in April 2010-January 2011 stood at 75.11 million tonne, which was down by 18 per cent from 91.71 million tonne a year ago, according to Fimi data.
Tuesday, March 1, 2011
Budget update - Indian miners cry foul over iron ore export tax hike
Tuesday, 01 Mar 2011, PTI
Indian finance minister Mr Pranab Mukherjee’s move did not gel well with the Federation of Indian Mineral Industries, which saw steel cartel of few majors behind the hatching of the move and termed it as a huge blow for domestic iron ore producers.
Mr RK Sharma general secretary of FIMI, while observing that the entire proposal was self defeating, warned that production will come down as a result of which steel prices will go up making end users suffer.
He said “The entire proposal is self defeating. It too means a huge loss to the exchequer, he said adding the future of 1 million people directly employed with the mining industry is also at stake.”
Tags : raw material, steel mills, Steelmakers,
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