Monday, 19 Mar 2012
Business Standard reported that the postponement of the Supreme Court verdict on illegal mining in Karnataka has put steel producers in a quandary as most of them have already cut production because only low grade iron ore is available from the E auctions of the Metal Scrap Trading Company.
The Supreme Court said that the three judges hearing the case will not be available for hearing on March 16. Last month, the apex court had adjourned the hearing on the case by two weeks to enable the Central Empowered Committee to hear the responses of the affected companies and the State Government.
Mr Seshagiri Rao joint MD of JSW Steel said the company has to cut down its capacity utilization to 70 per cent in February against 90% in January due to poor quality of iron ore being supplied by Metal Scrap.
He added that “We have about three to four million tonnes of iron ore stockpile left with us. The question now is whether we should be using it. Use of low grade iron ore is taking a heavy toll on our furnace.”
He added that “Unlike coal, iron ore cannot be imported as it will be unaffordable. The costs will increase substantially even if we have to source it from other states. Even if the Court allows opening up new mines in the state, it will take at least two to three months to start mining.”
Karnataka produces 16 million tonnes annually of iron and steel, constituting about 24% of the country's production of 66 million tonnes annually. Karnataka also supplies iron ore to companies located outside the State.
Source - Business Standard
Showing posts with label Karnataka government. Show all posts
Showing posts with label Karnataka government. Show all posts
Monday, March 19, 2012
Monday, February 20, 2012
Karnataka urges SC to allow 117 mining firms to restart
Monday, 20 Feb 2012
The Karnataka government has urged the Supreme Court to allow 117 mining companies to resume iron mining in the state.
The Central Empowered Committee appointed by the apex court to probe illegal mining in the state, had recently recommended for permitting these mines to restart mining.
Mr SV Ranganath chief secretary government of Karnataka in an affidavit filed before the Supreme Court said that “It is learnt that a few mines have been cleared by CEC, wherein no significant illegality or irregularity has been noticed. These mines, classified as A category”, may kindly be allowed to operate without hindrance.”
Similarly, there are some other mines, which have been enumerated as “B category”, for reasons of some or the other kind of illegality or irregularity noticed by the CEC. He said that “Such mines may also be kindly allowed to operate and the state government would undertake to ensure all material safeguards in place and due diligence is exercised by all agencies as per the orders of the Supreme Court.”
The chief secretary has further added the government will take whatever action as directed by the Supreme Court in respect of those mines classified under “C category.”
The CEC in its report submitted to the apex court on February 3, had recommended for cancellation of 49 mining leases in the ‘C Category’ and reauctioning of those leases as per the current market prices.
Some of the mines classified under ‘A category’ include NMDC, Mineral Enterprises Ltd, and two leases of Mysore Minerals Ltd, among others. ‘Category B’ includes Sesa Goa, MSPL, Sandur Manganese and Iron Ores Ltd and Mysore Minerals Ltd, among others.
The CEC has recommended for cancellation of ‘Category C’ leases after paying the penalty. They include Canara Minerals, Associated Mining, Trident Minerals, Deccan Mining Syndicate (P) Ltd and V S Lad & Sons, among others.
(Sourced from BS)
The Karnataka government has urged the Supreme Court to allow 117 mining companies to resume iron mining in the state.
The Central Empowered Committee appointed by the apex court to probe illegal mining in the state, had recently recommended for permitting these mines to restart mining.
Mr SV Ranganath chief secretary government of Karnataka in an affidavit filed before the Supreme Court said that “It is learnt that a few mines have been cleared by CEC, wherein no significant illegality or irregularity has been noticed. These mines, classified as A category”, may kindly be allowed to operate without hindrance.”
Similarly, there are some other mines, which have been enumerated as “B category”, for reasons of some or the other kind of illegality or irregularity noticed by the CEC. He said that “Such mines may also be kindly allowed to operate and the state government would undertake to ensure all material safeguards in place and due diligence is exercised by all agencies as per the orders of the Supreme Court.”
The chief secretary has further added the government will take whatever action as directed by the Supreme Court in respect of those mines classified under “C category.”
The CEC in its report submitted to the apex court on February 3, had recommended for cancellation of 49 mining leases in the ‘C Category’ and reauctioning of those leases as per the current market prices.
Some of the mines classified under ‘A category’ include NMDC, Mineral Enterprises Ltd, and two leases of Mysore Minerals Ltd, among others. ‘Category B’ includes Sesa Goa, MSPL, Sandur Manganese and Iron Ores Ltd and Mysore Minerals Ltd, among others.
The CEC has recommended for cancellation of ‘Category C’ leases after paying the penalty. They include Canara Minerals, Associated Mining, Trident Minerals, Deccan Mining Syndicate (P) Ltd and V S Lad & Sons, among others.
(Sourced from BS)
Thursday, February 16, 2012
Karnataka rakes in INR 270 crore royalty from E auctions
Thursday, 16 Feb 2012
Despite a halt on iron ore mining in Karnataka since July last year, the Karnataka state government has earned a royalty revenue of INR 270 crore, about 62% of the total royalty earnings in the last financial year. With two more months in the current financial year, royalty revenues are likely to go up further.
Mining activity came to a halt in July, when the Supreme Court ordered the closure of mining and transportation of iron ore in Bellary district. Subsequently, on August 26 the apex court also ordered closure of mining in Chitradurga and Tumkur districts.
However, through its orders dated September 2 and 23, the court had permitted sale of about 25 million tonnes of iron ore from the stockpile at various leases in Bellary, Chitradurga and Tumkur districts to ensure supply of ore to domestic steel mills, sponge iron and pig iron units, in and around Karnataka. A monitoring committee comprising forest officials of Karnataka and the director of mines and geology was constituted to supervise the sale of ore through electronic auctions.
Till January 6, the monitoring committee had conducted 18 e auctions, through which close to 11 million tonne of iron ore was sold for INR 2,694 crore. On this sale, the state department of mines and geology has collected royalty of INR 269.4 crore at 10% and INR 323.3 crore towards forest development tax at the rate of 12%
According to the final report on the status of mining leases surveyed by the joint team of the Central Empowered Committee the average sale price of iron ore works out to INR 2,455 a tonne.
Sources close to the process told Business Standard that with this, the royalty receivable by the government for the sale of 25 million tonne of iron ore through E auction may exceed the total royalty received by it for ore during 2010-11.
In addition, about 700,000 tonnes of iron ore dump belonging to the state-owned Mysore Minerals Limited and lying outside its sanctioned lease boundary has also been sold for INR 79.8 crore (and the royalty, FDT payable on the sale), at INR 1,140 a tonne. Earlier, MML used to sell the over burden/waste dump at substantially lower rates.
According to information provided by the DMG to CEC, during 2010-11, the state government received INR 435 crore as royalty for 33.75 million tonnes of iron ore produced and sold in the state. The average rate works out to INR 129 a tonne.
(Sourced from BS)
Despite a halt on iron ore mining in Karnataka since July last year, the Karnataka state government has earned a royalty revenue of INR 270 crore, about 62% of the total royalty earnings in the last financial year. With two more months in the current financial year, royalty revenues are likely to go up further.
Mining activity came to a halt in July, when the Supreme Court ordered the closure of mining and transportation of iron ore in Bellary district. Subsequently, on August 26 the apex court also ordered closure of mining in Chitradurga and Tumkur districts.
However, through its orders dated September 2 and 23, the court had permitted sale of about 25 million tonnes of iron ore from the stockpile at various leases in Bellary, Chitradurga and Tumkur districts to ensure supply of ore to domestic steel mills, sponge iron and pig iron units, in and around Karnataka. A monitoring committee comprising forest officials of Karnataka and the director of mines and geology was constituted to supervise the sale of ore through electronic auctions.
Till January 6, the monitoring committee had conducted 18 e auctions, through which close to 11 million tonne of iron ore was sold for INR 2,694 crore. On this sale, the state department of mines and geology has collected royalty of INR 269.4 crore at 10% and INR 323.3 crore towards forest development tax at the rate of 12%
According to the final report on the status of mining leases surveyed by the joint team of the Central Empowered Committee the average sale price of iron ore works out to INR 2,455 a tonne.
Sources close to the process told Business Standard that with this, the royalty receivable by the government for the sale of 25 million tonne of iron ore through E auction may exceed the total royalty received by it for ore during 2010-11.
In addition, about 700,000 tonnes of iron ore dump belonging to the state-owned Mysore Minerals Limited and lying outside its sanctioned lease boundary has also been sold for INR 79.8 crore (and the royalty, FDT payable on the sale), at INR 1,140 a tonne. Earlier, MML used to sell the over burden/waste dump at substantially lower rates.
According to information provided by the DMG to CEC, during 2010-11, the state government received INR 435 crore as royalty for 33.75 million tonnes of iron ore produced and sold in the state. The average rate works out to INR 129 a tonne.
(Sourced from BS)
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)
Tuesday, December 20, 2011
12891 cases of illegal mining in Karnataka
Tuesday, 20 Dec 2011
Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha Karnataka state government detected 12891 cases of illegal mining of minor and major minerals for the period June, 2006 till December, 2009, and for the year 2010-11, it has reported 6476 cases of illegal mining.
Details of iron ore produced illegally in Karnataka are not maintained centrally. As per the National Mineral Inventory maintained by the Indian Bureau of Mines, 34.91% of total iron ore resources in the country is found in Karnataka.
As per the directions of Apex Court, mining operations and transportation in Bellary district were suspended till further orders. On 5th August 2011, the Apex Court permitted two mines of NMDC in the Bellary district to produce iron ore to the extent of one million tones per month commencing from 6th August 2011 till further orders and mining operations have been restrained in 142 mines by Court directions on account of environmental hazard in the State of Karnataka, and 40,000 (estimated) workers have been affected by this ban. Further vide directions dated 26th August 2011, mining activities in districts of Tumkur and Chitradurga in Karnataka have also been suspended by the Supreme Court.
Mr Dinsha Patel minister of state for mines (independent charge) informed the Rajya Sabha Karnataka state government detected 12891 cases of illegal mining of minor and major minerals for the period June, 2006 till December, 2009, and for the year 2010-11, it has reported 6476 cases of illegal mining.
Details of iron ore produced illegally in Karnataka are not maintained centrally. As per the National Mineral Inventory maintained by the Indian Bureau of Mines, 34.91% of total iron ore resources in the country is found in Karnataka.
As per the directions of Apex Court, mining operations and transportation in Bellary district were suspended till further orders. On 5th August 2011, the Apex Court permitted two mines of NMDC in the Bellary district to produce iron ore to the extent of one million tones per month commencing from 6th August 2011 till further orders and mining operations have been restrained in 142 mines by Court directions on account of environmental hazard in the State of Karnataka, and 40,000 (estimated) workers have been affected by this ban. Further vide directions dated 26th August 2011, mining activities in districts of Tumkur and Chitradurga in Karnataka have also been suspended by the Supreme Court.
Sunday, October 16, 2011
Fourth E auction of iron ore in Karnataka
Sunday, 16 Oct 2011
BS reported that some of the major steel producers including JSW Steel and Kalyani Steel showed little interest in buying iron ore during the fourth round of E auction due to a massive increase in prices.
As per report, prices of iron ore went up by 45% to 50% during the two-day auctions that ended on Saturday and touched a high of INR 3,900 per tonne, against the base price of INR 2,750.
The Supreme Court appointed monitoring committee had facilitated 876,000 tonnes of iron ore with a Fe grade of 55% to 67% for this round of auction.
Steel companies picked up 364,000 tonnes, or 41.5%, of this. About 232,000 tonnes were sold yesterday and the remaining on Saturday. Of the total 364,000 tonnes, 44,000 tonnes came from NMDC. JSW Steel, Kalyani Steel, Mukand Steel, BMM Ispat and MSPL Ltd were the major buyers.
Iron ore-starved JSW Steel, which requires 45,000 tonnes of the material a day to run its 10-million tonne steel plant at Toranagal in Bellary, picked up just 76,000 tonnes. The largest steel producer in Karnataka has so far bought 1.92 million tonnes of the ore.
Kalyani Steel managed to buy 20,000 tonnes. Till now, it has managed to buy 225,000 tonnes. But due to procedural delays, it could manage to transport 25,000 tonnes to its 700,000 tonne steel plant in Hospet.
Mr RK Goyal MD of Kalyani Steel said “The prices of high-grade iron ore have hit a peak of INR 6,800 per tonne, showing a rise of about 80 per cent, during the auctions, as buyers were desperate to buy ore. However, transporting the ore to our steel plant is still a big problem, as the department of mines and geology is still to fast track the process of issuing e permits.”
With the completion of the fourth round of auctions, the steel industry has managed to get close to 3.7 million tonnes of iron ore.
(sourced from BS)
BS reported that some of the major steel producers including JSW Steel and Kalyani Steel showed little interest in buying iron ore during the fourth round of E auction due to a massive increase in prices.
As per report, prices of iron ore went up by 45% to 50% during the two-day auctions that ended on Saturday and touched a high of INR 3,900 per tonne, against the base price of INR 2,750.
The Supreme Court appointed monitoring committee had facilitated 876,000 tonnes of iron ore with a Fe grade of 55% to 67% for this round of auction.
Steel companies picked up 364,000 tonnes, or 41.5%, of this. About 232,000 tonnes were sold yesterday and the remaining on Saturday. Of the total 364,000 tonnes, 44,000 tonnes came from NMDC. JSW Steel, Kalyani Steel, Mukand Steel, BMM Ispat and MSPL Ltd were the major buyers.
Iron ore-starved JSW Steel, which requires 45,000 tonnes of the material a day to run its 10-million tonne steel plant at Toranagal in Bellary, picked up just 76,000 tonnes. The largest steel producer in Karnataka has so far bought 1.92 million tonnes of the ore.
Kalyani Steel managed to buy 20,000 tonnes. Till now, it has managed to buy 225,000 tonnes. But due to procedural delays, it could manage to transport 25,000 tonnes to its 700,000 tonne steel plant in Hospet.
Mr RK Goyal MD of Kalyani Steel said “The prices of high-grade iron ore have hit a peak of INR 6,800 per tonne, showing a rise of about 80 per cent, during the auctions, as buyers were desperate to buy ore. However, transporting the ore to our steel plant is still a big problem, as the department of mines and geology is still to fast track the process of issuing e permits.”
With the completion of the fourth round of auctions, the steel industry has managed to get close to 3.7 million tonnes of iron ore.
(sourced from BS)
Thursday, October 6, 2011
SAIL's Visvesvaraya steel plant to get captive iron ore mine
Thu,6 Oct,2011
By Meera Mohanty,ET Bureau
NEW DELHI The mines ministry will soon allot an iron ore lease in Karnataka's Bellary district to SAIL's Visvesvaraya Iron and Steel Ltd (VISL) plant, ending the company's sevenyear-long wait for a captive mine. The 140-hecatre area, in the North East Block range in Sandur, could contain about 11 million tonnes of iron ore, said people familiar with the exploration work.
Located at Bhadravathi, the loss-making VISL is struggling to meet its requirement of 5 lakh tonnes of iron ore. The raw material that it sources from NMDC works out to Rs 5,000 a tonne. Getting supplies from SAIL's mines in Jharkhand, more than 2,500 km away, is also not a viable option as freight cost alone would add up to Rs 2,800 a tonne.
Sales of VISL, whose clients include major automakers, the defence ministry and the Indian Railways, remained nearly flat at Rs 553 crore and losses before tax amounted to Rs 129.92 crore during the last fiscal. The special alloy and forged steel plant is currently operating at around 50% of its capacity of just under 2.3 lakh tonnes of hot metal, according to the company. SAIL has maintained that any capacity expansion could only commence after the allocation of a mine.
Founded 90 years ago, VISL was dependent on the Kemmangundi mines, a part of which fell under the Bhadra Wildlife Sanctuary where mining was banned. Ironically, VISL will be auctioning about 100,000 tonnes of iron ore fines from its stockpile of an estimated 1.7 million tonnes at Kemmangundi. At the time of the ban, the Supreme Court had directed that this 1 lakh tonnes either be immediately used or auctioned.
By Meera Mohanty,ET Bureau
NEW DELHI The mines ministry will soon allot an iron ore lease in Karnataka's Bellary district to SAIL's Visvesvaraya Iron and Steel Ltd (VISL) plant, ending the company's sevenyear-long wait for a captive mine. The 140-hecatre area, in the North East Block range in Sandur, could contain about 11 million tonnes of iron ore, said people familiar with the exploration work.
Located at Bhadravathi, the loss-making VISL is struggling to meet its requirement of 5 lakh tonnes of iron ore. The raw material that it sources from NMDC works out to Rs 5,000 a tonne. Getting supplies from SAIL's mines in Jharkhand, more than 2,500 km away, is also not a viable option as freight cost alone would add up to Rs 2,800 a tonne.
Sales of VISL, whose clients include major automakers, the defence ministry and the Indian Railways, remained nearly flat at Rs 553 crore and losses before tax amounted to Rs 129.92 crore during the last fiscal. The special alloy and forged steel plant is currently operating at around 50% of its capacity of just under 2.3 lakh tonnes of hot metal, according to the company. SAIL has maintained that any capacity expansion could only commence after the allocation of a mine.
Founded 90 years ago, VISL was dependent on the Kemmangundi mines, a part of which fell under the Bhadra Wildlife Sanctuary where mining was banned. Ironically, VISL will be auctioning about 100,000 tonnes of iron ore fines from its stockpile of an estimated 1.7 million tonnes at Kemmangundi. At the time of the ban, the Supreme Court had directed that this 1 lakh tonnes either be immediately used or auctioned.
Friday, August 19, 2011
Update on iron ore mining in Kudremukh National Park
Friday, 19 Aug 2011
Mr Beni Prasad Verma minister of steel has said that the government have no proposal so far, to reopen the iron ore mine in the area of Kudremukh National Park. However, a part of the loose secondary weathered ore lying in the already broken up area, is posing environmental and ecological threat to the surroundings, particularly to river Bhadra.
To protect from the possible ecological damage, the government has filed an IA No. 3087/2011 before the Hon’ble Supreme Court for allowing Kudremukh Iron Ore Cooperation Ltd for removing approximately 20 million tonnes of loose secondary weathered ore without any drill or blasting.
In a written reply in the Rajya Sabha he said that KIOCL Ltd. is not in the possession of any forest land falling in the Kudremukh National Park. Even the part of forest land which was under lease for mining to KIOCL Ltd has been handed over to Forest Department of government of Karnataka in compliance with the order of Hon’ble Supreme Court. Subsequently, government of Karnataka had included an area of 3703.55 ha of forest land into the Kudremukh National Park vide its Gazette Notification dated January 9th 2007
Mr Beni Prasad Verma minister of steel has said that the government have no proposal so far, to reopen the iron ore mine in the area of Kudremukh National Park. However, a part of the loose secondary weathered ore lying in the already broken up area, is posing environmental and ecological threat to the surroundings, particularly to river Bhadra.
To protect from the possible ecological damage, the government has filed an IA No. 3087/2011 before the Hon’ble Supreme Court for allowing Kudremukh Iron Ore Cooperation Ltd for removing approximately 20 million tonnes of loose secondary weathered ore without any drill or blasting.
In a written reply in the Rajya Sabha he said that KIOCL Ltd. is not in the possession of any forest land falling in the Kudremukh National Park. Even the part of forest land which was under lease for mining to KIOCL Ltd has been handed over to Forest Department of government of Karnataka in compliance with the order of Hon’ble Supreme Court. Subsequently, government of Karnataka had included an area of 3703.55 ha of forest land into the Kudremukh National Park vide its Gazette Notification dated January 9th 2007
Wednesday, August 3, 2011
Iron ore price negotiations - India and Japan to start price negotiations
Wednesday, 03 Aug 2011 | By BL
India will commence price negotiations with Japan for export of iron ore by National Mineral Development Corporation in the next few weeks, with the iron ore miner recently receiving the draft Cabinet approval on the estimated quantity of ore exports for the next five year period.
An Indian delegation, comprising senior officials from the ministry of commerce, ministry of steel, canalising agency MMTC and NMDC, will be participating in the price negotiations. The prices are fixed in line with the prices for Australian and Brazilian exports.
NMDC which has been indicted by the Karnataka Lokayukta for under invoicing its exports to Japan and South Korea between 2006-07 and 2009-10, has received approval to export 3.3 million tonnes of ore this fiscal, as part of the new five year contract. The last contract expired on March 31st 2011.
An Indian delegation, comprising senior officials from the ministry of commerce, ministry of steel, canalising agency MMTC and NMDC, will be participating in the price negotiations. The prices are fixed in line with the prices for Australian and Brazilian exports.
NMDC which has been indicted by the Karnataka Lokayukta for under invoicing its exports to Japan and South Korea between 2006-07 and 2009-10, has received approval to export 3.3 million tonnes of ore this fiscal, as part of the new five year contract. The last contract expired on March 31st 2011.
Monday, August 1, 2011
Update on mis happenings in Bellary
Monday, 01 Aug 2011 |By TOI
Karnataka chief minister Mr BS Yeduyurappa can blame his downfall on the windfall reaped by mining companies owned by the Reddys, their associates and partners in Bellary accounting for a whopping 35% of the total iron ore mined in 2008-09 in the district.
The Supreme Court's environmental panel Central Empowered Committee gave lessee wise details of iron ore production during 2008-09 and contrasted it with 2002-03 before a bench, headed by Chief Justice SH Kapadia to show the manifold increase in mining activity.
The production of iron ore by 124 mine lease-holders from 7,646 hectares in 2002-03 was 16.01 million tonnes, which almost tripled to 44.38 million tonnes in 2008-09.
With Reddy brothers as ministers in Karnataka, their firms, friends, associates and partners prospered by indulging in either over extraction or illegal mining to account for 15.796 million tonnes of iron ore in 2008-09, which is more than 35% of the total iron ore mined from the entire district.
The CEC report authored by member secretary MK Jiwrajka and presented to the court through amicus curiae ADN Rao, listed Bellary's Zeenath Transport Company as the highest extractor of the mineral.
Zeenath Transport Company, which is giving a share of the profit to a mining company owned by the Reddys and their relatives, extracted 6.141 million tonnes of iron ore in 2008-09 that was nearly 40% of the 157.96 tonnes extracted by 22 mining companies linked to the Bellary mining barons.
Amicus curiae and senior advocate Shyam Divan showed photographs of Bellary forests being devastated by mining activities relating to Bharath Mines and Minerals, VS Lad and Sons, Associated Mining Company, S B Minerals, Shantalakshmi Jayaram, Chowgule & Co Private Ltd, Aswathnarayan Singh & Co, Auro Minerals, Ramgad Mines and Minerals Pvt Ltd, HG Ranganagoud, Zeenath Transport Co.
Divan said the activity had been going on in connivance of everyone district administration, transport authorities, environment and mining departments as all the mine lease holders have dumped the overburden (the extracted earth) on the hill slopes destroying the forests.
Karnataka chief minister Mr BS Yeduyurappa can blame his downfall on the windfall reaped by mining companies owned by the Reddys, their associates and partners in Bellary accounting for a whopping 35% of the total iron ore mined in 2008-09 in the district.
The Supreme Court's environmental panel Central Empowered Committee gave lessee wise details of iron ore production during 2008-09 and contrasted it with 2002-03 before a bench, headed by Chief Justice SH Kapadia to show the manifold increase in mining activity.
The production of iron ore by 124 mine lease-holders from 7,646 hectares in 2002-03 was 16.01 million tonnes, which almost tripled to 44.38 million tonnes in 2008-09.
With Reddy brothers as ministers in Karnataka, their firms, friends, associates and partners prospered by indulging in either over extraction or illegal mining to account for 15.796 million tonnes of iron ore in 2008-09, which is more than 35% of the total iron ore mined from the entire district.
The CEC report authored by member secretary MK Jiwrajka and presented to the court through amicus curiae ADN Rao, listed Bellary's Zeenath Transport Company as the highest extractor of the mineral.
Zeenath Transport Company, which is giving a share of the profit to a mining company owned by the Reddys and their relatives, extracted 6.141 million tonnes of iron ore in 2008-09 that was nearly 40% of the 157.96 tonnes extracted by 22 mining companies linked to the Bellary mining barons.
Amicus curiae and senior advocate Shyam Divan showed photographs of Bellary forests being devastated by mining activities relating to Bharath Mines and Minerals, VS Lad and Sons, Associated Mining Company, S B Minerals, Shantalakshmi Jayaram, Chowgule & Co Private Ltd, Aswathnarayan Singh & Co, Auro Minerals, Ramgad Mines and Minerals Pvt Ltd, HG Ranganagoud, Zeenath Transport Co.
Divan said the activity had been going on in connivance of everyone district administration, transport authorities, environment and mining departments as all the mine lease holders have dumped the overburden (the extracted earth) on the hill slopes destroying the forests.
Tuesday, July 26, 2011
JSW changes iron ore suppliers
Tue,July 26,2011
By Shubhashish, Business Standard
Mumbai: In the wake of the tussle between the Karnataka government and iron ore miners in Karnataka’s Bellary district, many steelmakers are facing shortage in supply of the raw material. JSW Steel, which operates an 11-million-tonne plant in the region, has secured iron ore supplies from the neighbouring Chitradurga, thereby reducing its dependence on Bellary.
“We are able to meet our requirement of iron ore from Chitradurga in Karnataka,” Vice-Chairman and Managing Director Sajjan Jindal said while addressing the 17th annual general meeting.
He said there were a lot of issues relating to iron ore miners in Bellary but declined to comment on the issue as the case was in the Supreme Court.
Vinod Nowal, director and CEO, JSW Steel, told Business Standard, “We were getting 50 per cent of our iron ore requirements from Bellary which is roughly around 20 million tonnes (mt). We are sourcing an additional 10 mt from Chitradurga.”
Nowal said of the 50 per cent iron ore that used to come from Bellary, the company is sourcing around 30 per cent from Chitradurga. The remaining 20 per cent is still being sourced from companies in Bellary with which JSW Steel has long-term contracts.
The company sources 20 per cent of iron ore from its captive resources. It gets another 30 per cent of the raw material through purchase agreements with state-run NMDC and Mysore Minerals Ltd. The remaining 50 per cent was being sourced from miners in the Bellary area.
“As on today, we are comfortable with our sourcing,” he said.
JSW Steel has also commissioned its benefication plant which has reduced its dependence on high grade of iron ore, thereby bringing the costs down. The company said that in 2009-10, 80 per cent of its total iron ore was of high grade, which has come down to just 30 per cent in 2010-11.
For the current financial year, the company will continue to source low-grade iron ore to meet its entire requirement, resulting in cost savings.
Talking about the production growth for the current year, Jindal said the company planned to produce nine million tonne of steel, which 40 per cent more from the previous year. The company has also commissioned a 3.2-mt blast furnace, taking its total installed capacity to 11 mt.
It said that the company has tied up for additional iron ore sources to feed the 3.2 million tonne steel melting capacity that has become operational in the first quarter of this year.
“We are able to meet our requirement of iron ore from Chitradurga in Karnataka,” Vice-Chairman and Managing Director Sajjan Jindal said while addressing the 17th annual general meeting.
He said there were a lot of issues relating to iron ore miners in Bellary but declined to comment on the issue as the case was in the Supreme Court.
Vinod Nowal, director and CEO, JSW Steel, told Business Standard, “We were getting 50 per cent of our iron ore requirements from Bellary which is roughly around 20 million tonnes (mt). We are sourcing an additional 10 mt from Chitradurga.”
Nowal said of the 50 per cent iron ore that used to come from Bellary, the company is sourcing around 30 per cent from Chitradurga. The remaining 20 per cent is still being sourced from companies in Bellary with which JSW Steel has long-term contracts.
The company sources 20 per cent of iron ore from its captive resources. It gets another 30 per cent of the raw material through purchase agreements with state-run NMDC and Mysore Minerals Ltd. The remaining 50 per cent was being sourced from miners in the Bellary area.
“As on today, we are comfortable with our sourcing,” he said.
JSW Steel has also commissioned its benefication plant which has reduced its dependence on high grade of iron ore, thereby bringing the costs down. The company said that in 2009-10, 80 per cent of its total iron ore was of high grade, which has come down to just 30 per cent in 2010-11.
For the current financial year, the company will continue to source low-grade iron ore to meet its entire requirement, resulting in cost savings.
Talking about the production growth for the current year, Jindal said the company planned to produce nine million tonne of steel, which 40 per cent more from the previous year. The company has also commissioned a 3.2-mt blast furnace, taking its total installed capacity to 11 mt.
It said that the company has tied up for additional iron ore sources to feed the 3.2 million tonne steel melting capacity that has become operational in the first quarter of this year.
Tuesday, July 19, 2011
JSW Steel may cut output on iron ore shortage
July 19, 2011
By Mahesh Kulkarni
By Mahesh Kulkarni
Bangalore: JSW Steel is likely to take production cuts at its 10 million tonne per annum (mtpa) steel plant at Toranagal in Bellary district of Karnataka owing to severe shortage of iron ore, the key raw material to make steel.
The company, which completed the expansion of its steel plant from 7 mtpa to 10 mtpa with the commissioning of its 3 mtpa blast furnace, may operate its blast furnace and corex plants at lower capacity. It had invested Rs 14,000 crore on expansion.
“Our Toranagal plant presently needs 45,000 metric tonnes of iron ore per day to operate the 7 mtpa. We get 20,000 tonnes per day now. Once we reach the rated capacity of 10 mtpa, we will require 67,000 tonnes per day. However, the availability of ore may go down further after the Supreme Court appointed team completes resurvey of the remaining 55 mines,” said Vinod Nowal, chief executive officer and director, JSW Steel.
The Supreme Court had ordered suspension of mining in 40 mining leased area in Karnataka, following a recommendation of its central empowered committee (CEC), which is resurveying the mines on allegations of illegal mining.
“We will just keep our furnaces running with whatever ore is available. But, actually, our production may fall below the present capacity of 7 mtpa instead of going up to 10 mtpa,” Nowal said. Presently, the company produces 20,000 metric tonnes of steel per day.
JSW Steel does not have a captive iron ore mine of its own in Karnataka and sources it from its joint venture with Mysore Minerals Ltd (MML) and other private mine owners in Karnataka and Orissa. “We cannot depend on ore from Orissa for too long since the cost of transportation is high. The railway freight costs work at Rs 2,000 per tonne,” he said.
The supply from MML joint venture has also come down to 4,000 tonnes per day. The company now buys low-grade iron ore from mines in Chitradurga and Tumkur at Chinese prices, he said.
“We have been deferring the commissioning of our new blast furnace for the last two months due to shortage of ore. But, we cannot defer it anymore as it would be uneconomical to keep the plant idle. We have to service the huge debt we have borrowed for our expansion,” he said.
The company’s current debt is in the order of Rs 15,000 crore. Nowal said the company has been insisting that it be given captive mines as it is the single-largest steel producer in the state.
Of the 99 mines in Bellary-Hospet-Sandur region of Karnataka, the Supreme Court has ordered suspension of mining in 40. Another 55 mines will be resurveyed from July 23.
“If the apex court orders suspension of mining in a few more mines, the production of iron ore may drop to as low as 10 mtpa from the present 50 million tonnes. In such case, the steel companies, including JSW will be in deep trouble,” an industry observer said.
With the completion of expansion, JSW is now set to launch high-value products for the automotive sector in addition to its existing products such as cold rolled coils, wire rods, billets among others. (sourced BS)
The company, which completed the expansion of its steel plant from 7 mtpa to 10 mtpa with the commissioning of its 3 mtpa blast furnace, may operate its blast furnace and corex plants at lower capacity. It had invested Rs 14,000 crore on expansion.
“Our Toranagal plant presently needs 45,000 metric tonnes of iron ore per day to operate the 7 mtpa. We get 20,000 tonnes per day now. Once we reach the rated capacity of 10 mtpa, we will require 67,000 tonnes per day. However, the availability of ore may go down further after the Supreme Court appointed team completes resurvey of the remaining 55 mines,” said Vinod Nowal, chief executive officer and director, JSW Steel.
The Supreme Court had ordered suspension of mining in 40 mining leased area in Karnataka, following a recommendation of its central empowered committee (CEC), which is resurveying the mines on allegations of illegal mining.
“We will just keep our furnaces running with whatever ore is available. But, actually, our production may fall below the present capacity of 7 mtpa instead of going up to 10 mtpa,” Nowal said. Presently, the company produces 20,000 metric tonnes of steel per day.
JSW Steel does not have a captive iron ore mine of its own in Karnataka and sources it from its joint venture with Mysore Minerals Ltd (MML) and other private mine owners in Karnataka and Orissa. “We cannot depend on ore from Orissa for too long since the cost of transportation is high. The railway freight costs work at Rs 2,000 per tonne,” he said.
The supply from MML joint venture has also come down to 4,000 tonnes per day. The company now buys low-grade iron ore from mines in Chitradurga and Tumkur at Chinese prices, he said.
“We have been deferring the commissioning of our new blast furnace for the last two months due to shortage of ore. But, we cannot defer it anymore as it would be uneconomical to keep the plant idle. We have to service the huge debt we have borrowed for our expansion,” he said.
The company’s current debt is in the order of Rs 15,000 crore. Nowal said the company has been insisting that it be given captive mines as it is the single-largest steel producer in the state.
Of the 99 mines in Bellary-Hospet-Sandur region of Karnataka, the Supreme Court has ordered suspension of mining in 40. Another 55 mines will be resurveyed from July 23.
“If the apex court orders suspension of mining in a few more mines, the production of iron ore may drop to as low as 10 mtpa from the present 50 million tonnes. In such case, the steel companies, including JSW will be in deep trouble,” an industry observer said.
With the completion of expansion, JSW is now set to launch high-value products for the automotive sector in addition to its existing products such as cold rolled coils, wire rods, billets among others. (sourced BS)
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)
Monday, July 11, 2011
Karnataka CM will persuade farmers to give up land
Monday, 11 Jul 2011
Batting for a POSCO steel plant in Gadag, Mr BS Yeddyurappa chief minister of Karnataka said that the government will try to persuade farmers to part with their land.
The situation does not warrant the South Korean steelmaker to relocate from Halligudi in Gadag district to anywhere rise in the state.
Mr Yeddyurappa told TOI a that "The government is trying to convince the farmers. The company stays in Gadag. We hope that everything will go well.”
The CM's statement comes following reports that POSCO in the wake of the farmers' protests in Gadag is looking at alternative sites to set up its 6 million tonne per annum steel plant in Bagalkot or Bijapur district. The government is exploring the possibility of excluding the objecting villages from the POSCO project and allotting adjoining land.
While an official in the industries department dealing with the project said POSCO prefers setting up a unit in Gadag, large and medium industries minister Murgesh R Nirani said the CM's decision will be final.
The official said a change of location would be tough; there would be too many formalities. Investments over INR 50 crore are cleared by the State High Level Clearance Committee headed by the chief minister. The committee has to approve even minor amendments if a company wants to change its name, address and location. (sourced from TOI)
Batting for a POSCO steel plant in Gadag, Mr BS Yeddyurappa chief minister of Karnataka said that the government will try to persuade farmers to part with their land.
The situation does not warrant the South Korean steelmaker to relocate from Halligudi in Gadag district to anywhere rise in the state.
Mr Yeddyurappa told TOI a that "The government is trying to convince the farmers. The company stays in Gadag. We hope that everything will go well.”
The CM's statement comes following reports that POSCO in the wake of the farmers' protests in Gadag is looking at alternative sites to set up its 6 million tonne per annum steel plant in Bagalkot or Bijapur district. The government is exploring the possibility of excluding the objecting villages from the POSCO project and allotting adjoining land.
While an official in the industries department dealing with the project said POSCO prefers setting up a unit in Gadag, large and medium industries minister Murgesh R Nirani said the CM's decision will be final.
The official said a change of location would be tough; there would be too many formalities. Investments over INR 50 crore are cleared by the State High Level Clearance Committee headed by the chief minister. The committee has to approve even minor amendments if a company wants to change its name, address and location. (sourced from TOI)
Friday, July 8, 2011
JSW Steel to halt expansion of Vijayanagar unit
Fri, July 8, 2011
Bangalore : JSW Steel will not go ahead with its proposed expansion plans at its Vijayanagar (Bellary) unit until it receives approval for captive iron ore mine in Karnataka.
It had earlier evinced interest to expand the capacity of the Vijayanagar facility to 16 million tonnes (mt) from 10 mt.
Vinod Nowal, chief executive officer and director of the company, said, “We will not expand the capacity to 16 mt until there is a captive iron ore source available to us.” He was speaking to reporters on the sidelines of a seminar organised by the Bangalore Chambers of Commerce and Industry here.
The Supreme Court yesterday refused to entertain a plea of the company to direct the Karnataka government to lease a captive mine for the plant. The court was not convinced by JSW’s submission that it made an investment of Rs 10,000 crore by setting a steel plant on the assurances of the state government that a captive mine would be allotted to it. It, however, allowed the company to appeal in the Karnataka High Court with its grievances.
“Our legal department is examining the case and we will appeal in the high court,” he said. Despite operating a 10-mt steel plant in Karnataka, the company doesn’t have any captive iron ore source in the state. It is procuring iron ore from Orissa, Chhattisgarh and Jharkhand to feed the plant. Nowal said the supply situation with respect to iron ore was tight and the company had stocks for 10 days only.
It reported a 29.8 per cent growth in net profit at Rs 793.6 crore for the fourth quarter of the last financial year. Net sales rose 32.5 per cent to Rs 7,209.3 crore from Rs 5,441.3 crore in the previous corresponding period.
(By Business Standard)
JSW Steel withdrew iron ore petition as SC refused to entertain plea
Friday, 08 Jul 2011
The Hindu reported that JSW Steel on Wednesday withdrew its petition seeking direction to the Karnataka government for allotting captive iron ore mines for its steel plant in the state after the Supreme Court refused to entertain its plea.
A bench comprising Justices Mr VS Sirpurkar and Mr TS Thakur declined to entertain the plea of JSW Steel to direct the Karnataka government to lease a captive mine for steel plant at Vijaynagar in the State.
The bench said that “We cannot enlarge the scope of the petition and direct some one to surrender its lease or give lease to some one.”
The apex court was also not convinced by the submission of the company that it made an investment of INR 10,000 crore by setting a steel plant on the assurances of the state government that a captive mine would be allotted to it.
The bench said that “JSW are not an unknown villager, who would invest such a large sum on promises only.”
However, it gave liberty to the company to approach the Karnataka High Court if it feels that the state government has not fulfilled obligation under the MoU signed by it in 1994.
Senior advocate Mr Mukul Rohatgi appearing for JSW Steel submitted that while signing MoU with the State in 1994, it was assured that it would be allotted a captive mine in the state after National Mineral Development Corporation surrender some of the mines in the State.
He said that “From 1994 to 2011, 17 years has gone by, but we have not been given any mines. Even the small producers in the state have been allotted captive mines adding that JSW Steel is forced to buy iron ore from others and transport miles and it is hampering its growth.”
(sourced from TheHindu)
The Hindu reported that JSW Steel on Wednesday withdrew its petition seeking direction to the Karnataka government for allotting captive iron ore mines for its steel plant in the state after the Supreme Court refused to entertain its plea.
A bench comprising Justices Mr VS Sirpurkar and Mr TS Thakur declined to entertain the plea of JSW Steel to direct the Karnataka government to lease a captive mine for steel plant at Vijaynagar in the State.
The bench said that “We cannot enlarge the scope of the petition and direct some one to surrender its lease or give lease to some one.”
The apex court was also not convinced by the submission of the company that it made an investment of INR 10,000 crore by setting a steel plant on the assurances of the state government that a captive mine would be allotted to it.
The bench said that “JSW are not an unknown villager, who would invest such a large sum on promises only.”
However, it gave liberty to the company to approach the Karnataka High Court if it feels that the state government has not fulfilled obligation under the MoU signed by it in 1994.
Senior advocate Mr Mukul Rohatgi appearing for JSW Steel submitted that while signing MoU with the State in 1994, it was assured that it would be allotted a captive mine in the state after National Mineral Development Corporation surrender some of the mines in the State.
He said that “From 1994 to 2011, 17 years has gone by, but we have not been given any mines. Even the small producers in the state have been allotted captive mines adding that JSW Steel is forced to buy iron ore from others and transport miles and it is hampering its growth.”
(sourced from TheHindu)
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.
Indian iron ore mining mess - Mr Hegde dismisses allegations about delay in second report
Tuesday, 05 Jul 2011
Dismissing allegations that there was deliberate delay, Karnataka Lokayukta Justice N Santosh Hegde on Sunday said his team is working toward finalizing the second and final report on illegal mining in the State to be released this month.
Speaking to PTI, Mr Hegde rejected allegations by some opposition Congress leaders of deliberate delay in finalizing the report.
He said that “I have got a team of four people working on it. There are thousands and thousands of pages involved in it. Therefore, there has been some delay, and certain political parties are attributing motives and I don’t care a damn about anybody.”
Mr Hegde a member of the joint committee drafting the Lokpal bill explained that unlike the first report submitted by him to the Government in December 2008, this time a lot of information needed to be collated.
He noted that in recent months, CBI and Central Empowered Committee also made enquiries (on the illegal mining in Karnataka) and there were a series of Income Tax department raids in March.
Mr Hegde a former Supreme Court judge referring to some delay in compiling the report said that “They (CBI, CEC and IT department) agreed to give us some inputs; we agreed to give them some inputs.”
Mr Hegde said that “People should understand that there are (Lokayukta) people who are working on Sundays...day and night (to complete the report). Main reason is we can’t have more people (working on it) because then other issues will come up such as ‘oh! report is leaked’ and all that.”
He said the report would be submitted to the Government this month itself.
(Sourced from The Hindu)
Dismissing allegations that there was deliberate delay, Karnataka Lokayukta Justice N Santosh Hegde on Sunday said his team is working toward finalizing the second and final report on illegal mining in the State to be released this month.
Speaking to PTI, Mr Hegde rejected allegations by some opposition Congress leaders of deliberate delay in finalizing the report.
He said that “I have got a team of four people working on it. There are thousands and thousands of pages involved in it. Therefore, there has been some delay, and certain political parties are attributing motives and I don’t care a damn about anybody.”
Mr Hegde a member of the joint committee drafting the Lokpal bill explained that unlike the first report submitted by him to the Government in December 2008, this time a lot of information needed to be collated.
He noted that in recent months, CBI and Central Empowered Committee also made enquiries (on the illegal mining in Karnataka) and there were a series of Income Tax department raids in March.
Mr Hegde a former Supreme Court judge referring to some delay in compiling the report said that “They (CBI, CEC and IT department) agreed to give us some inputs; we agreed to give them some inputs.”
Mr Hegde said that “People should understand that there are (Lokayukta) people who are working on Sundays...day and night (to complete the report). Main reason is we can’t have more people (working on it) because then other issues will come up such as ‘oh! report is leaked’ and all that.”
He said the report would be submitted to the Government this month itself.
(Sourced from The Hindu)
Thursday, June 2, 2011
Karnataka seeks clearance from union for steel projects
Thursday, 02 Jun 2011
(sourced Thehindubusinessline)
BL reported that Karnataka has asked the center to grant necessary clearance for POSCO, ArcelorMittal, Surya Roshini, Bhusan Steel, Jindal South West and Kudremukh Iron Ore Company Limited, which are setting up steel plants in the state.
Mr Murugesh Nirani industries minister of Karnataka said that the state government has cleared all the six projects but are now awaiting Centre's nod for environmental clearance. For setting up steel mills, few companies such as ArcelorMittal have also sought land for captive mining.
He added that "These companies have already deposited money with us for their land requirement. At a few places, Karnataka Industrial Areas Development Board has already initiated the work on land acquisition."
Land for some of these companies have been identified and deputy commissioners have been told to hold final meeting with revenue officials and hold meets to fix price for the land in consultation with the farmers.
POSCO has sought around 4,000 acres and has identified Gadag district for setting up their plant. Land acquisition for ArcelorMittal has entered final notification stage. The company has identified land around Bellary Koppal districts and has deposited INR 600 crore for land acquisition and its estimated requirement is about 4,000 hectares.
Surya Roshini is setting up a plant in Bagalkot and has sought 3,000 acres. Bhushan Steel which needs around 3,000 acres has selected Bagalkot and Koppal for its steel plant. The company plans to take a final decision based on the land availability.
JSW is planning to invest around INR 25,000 crore in expanding the capacity of its Bellary plant while KIOCL has partnered with NMDC for setting up a steel plant. NMDC is likely to transfer its iron ore mines located at Donimalai in Bellary to KIOCL for mining activities.
Mr Murugesh Nirani industries minister of Karnataka said that the state government has cleared all the six projects but are now awaiting Centre's nod for environmental clearance. For setting up steel mills, few companies such as ArcelorMittal have also sought land for captive mining.
He added that "These companies have already deposited money with us for their land requirement. At a few places, Karnataka Industrial Areas Development Board has already initiated the work on land acquisition."
Land for some of these companies have been identified and deputy commissioners have been told to hold final meeting with revenue officials and hold meets to fix price for the land in consultation with the farmers.
POSCO has sought around 4,000 acres and has identified Gadag district for setting up their plant. Land acquisition for ArcelorMittal has entered final notification stage. The company has identified land around Bellary Koppal districts and has deposited INR 600 crore for land acquisition and its estimated requirement is about 4,000 hectares.
Surya Roshini is setting up a plant in Bagalkot and has sought 3,000 acres. Bhushan Steel which needs around 3,000 acres has selected Bagalkot and Koppal for its steel plant. The company plans to take a final decision based on the land availability.
JSW is planning to invest around INR 25,000 crore in expanding the capacity of its Bellary plant while KIOCL has partnered with NMDC for setting up a steel plant. NMDC is likely to transfer its iron ore mines located at Donimalai in Bellary to KIOCL for mining activities.
(sourced Thehindubusinessline)
Wednesday, June 1, 2011
Indian iron ore mining mess - Karnataka lifts ban on mines not under Apex Court survey
Wednesday, 01 Jun 2011
BL reported that several mines in north Karnataka have now been given a fresh lease with the state government allowing them to resume operations and transport ore.
On May 21st 2011, the Karnataka Department of Mines & Geology overturned its earlier directive and allowed resumption of operations in those mines where the Supreme Court directed survey and demarcation activities are currently not being carried out. Though the order was issued on May 21st 2011, it is only now that some of the mine owners are becoming aware of it. The court on May 6th 2011 had directed formation of a special team to conduct S&D in 99 mining leases in the Bellary Hospet Sandur belt.
About one fourth of total iron ore export from the country is from the mines in this region. There are a total of 118 mines in this belt of which mining was suspended in 19 by the Supreme Court.
In a circular, a copy of which is available with Business Line, the director, Department of Mines and Geology, pointed out that the Supreme Court had directed that a joint survey should be conducted in 99 mining leases of Bellary Hospet Sandur sector in North Karnataka. The Department in turn had decided to stop all kinds of mining activities there during the survey so that it can be carried out without any interruptions.
However, mine owners and their association had pointed out to the State Government and the Supreme Court appointed Central Empowered Committee that such a decision violates the order as the Court has not prohibited operations in 99 mines. Also, as the S&D activities were being carried out in phases, there was no point in suspending operations in the remaining mines.
Following these representations, the joint survey committee consisting of officials from the Departments of Mines & Geology, Forest and the Karnataka Lokayuktha reviewed the earlier notice and decided to allow mining activities in those areas which “have not been covered in the current phase of S & D operations” and hence can resume their activities there.
An industry body representative said that "We are glad that the State Government has realized that it is not practical to ban mining completely as they had argued in the court."
(sourced Thehindubusinessline)
BL reported that several mines in north Karnataka have now been given a fresh lease with the state government allowing them to resume operations and transport ore.
On May 21st 2011, the Karnataka Department of Mines & Geology overturned its earlier directive and allowed resumption of operations in those mines where the Supreme Court directed survey and demarcation activities are currently not being carried out. Though the order was issued on May 21st 2011, it is only now that some of the mine owners are becoming aware of it. The court on May 6th 2011 had directed formation of a special team to conduct S&D in 99 mining leases in the Bellary Hospet Sandur belt.
About one fourth of total iron ore export from the country is from the mines in this region. There are a total of 118 mines in this belt of which mining was suspended in 19 by the Supreme Court.
In a circular, a copy of which is available with Business Line, the director, Department of Mines and Geology, pointed out that the Supreme Court had directed that a joint survey should be conducted in 99 mining leases of Bellary Hospet Sandur sector in North Karnataka. The Department in turn had decided to stop all kinds of mining activities there during the survey so that it can be carried out without any interruptions.
However, mine owners and their association had pointed out to the State Government and the Supreme Court appointed Central Empowered Committee that such a decision violates the order as the Court has not prohibited operations in 99 mines. Also, as the S&D activities were being carried out in phases, there was no point in suspending operations in the remaining mines.
Following these representations, the joint survey committee consisting of officials from the Departments of Mines & Geology, Forest and the Karnataka Lokayuktha reviewed the earlier notice and decided to allow mining activities in those areas which “have not been covered in the current phase of S & D operations” and hence can resume their activities there.
An industry body representative said that "We are glad that the State Government has realized that it is not practical to ban mining completely as they had argued in the court."
(sourced Thehindubusinessline)
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