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Showing posts with label Supreme Court. Show all posts
Showing posts with label Supreme Court. Show all posts

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)

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)

Monday, February 13, 2012

India: Iron ore exports to hit a new low in FY13

Monday, 13 February 2012

India’s iron ore exports are likely to hit a new low during the 2012-13 financial year and settle at about 40 million tonnes (mt), a drop of close to 35 per cent over the current year’s estimates. Exports are estimated to decline to about 60 mt in 2011-12 from 100 mt in 2010-11, a fall of 40 per cent.

“The decline in exports is mainly due to rise in export duty to 30 per cent and railway freight, which is highly discriminatory for exports compared to domestic freight rates. Before 2003, nobody bought low-grade ore from India. In the future, too, apart from China, nobody will buy low-grade ore,” said Basant Poddar, chairman, Federation of Indian Mineral Industries, South.

For example, the railways charge Rs 600 a tonne as freight for movement of ore for domestic consumption and Rs 2,800 a tonne for ore meant for exports. This has discouraged miners from exporting, he said. Another major factor for low exports is the ban in Karnataka. In addition, the stoppage of mining in Karna-taka, following the Supreme Court order in July, added to a decline in exports during the current financial year.

Orissa’s exports have come down mainly due to differential railway freight rates. Goa’s exports have also declined substantially this year and may settle at about 34 mt, down from 55 mt last year, he said. Karnataka’s share in national exports was about 35 mt till 2009-10. Since August 2010, there have been no exports from the state. Next year, India’s exports will touch the lowest level in the past decade.

“Demand from China is steady, but they are also getting ore from Australia and Brazil also. Australia and Brazil are together adding about 500 mt of exportable capacity in the next five years. Whereas, in India, we are closing our mines and losing our status as the third-largest exporter of ore in the world. We may drop to sixth or seventh position,” Poddar said.

During the current year, India’s share of exports in the world market is set to decline to about 10 per cent. In the next year, it is likely to further drop to about five per cent, at 35-40 mt. Prices of 63 Fe grade iron ore, presently at $130-135 a tonne on a FoB basis in the international market, are likely to go up 8-10 per cent during the current quarter, as the demand from China is picking up after the beginning of the new year. At the same time, Indian miners are losing their position due to various reasons, said Praveen Kumar, chairman, Maya Iron Ores, a derivative commodity brokerage firm.

“If the Supreme Court accepts the Central Empow-ered Committee’s (CEC) recommendation and puts a cap on the production of iron ore at 30 mt in Karnataka, investments in the steel sector will not only be affected, but it would also lead to loss of market share for India in the export market,” he said.
The loss means future investments to the tune of about $5-10 billion in the ports and railway sectors taken up on a public-private partnership basis will be in jeopardy, Poddar noted.

“The Indian steel industry uses high grade ore and there is no market for low-grade ore, due to poor technology with steel mills. So, why stop low-grade ore exports , which has huge demand from China? If we can’t export it, there will be a problem in managing low-grade fines and it would cause environmental damage,” he added. (sourced Business-Standard)

Saturday, February 11, 2012

Court approves settlement between Russian coal producers

Saturday, 11 Feb 2012

Supreme Commercial Court reports that the court has approved an amicable agreement between two coal mining companies in a USD 9.3 million dispute.

Vorkutaugol sought to recover debt from the Vorgashorskaya mine under a claim assignment agreement that it signed with the St Petersburg based Nord Invest in March 2010.

Vorkutaugol is a part of Severstal. It is the largest hard coking coal producer in Russia. Vorkutaugol produced 8.1 million tonnes of coal in 2010.

Severstal is one of the world's leading vertically integrated steel and mining companies. It has assets located in Russia, North America and Europe.

(Sourced from rapsinews.com)

Monday, August 22, 2011

SC panel calls for ban on all private mining in Karnataka

Monday, 22 Aug 2011

TOI reported that Central Empowered Committee, an environmental panel that reports directly to the Supreme Court, on Friday recommended a complete ban on iron ore mining in Tumkur and Chitradurga districts of Karnataka, which border the now notorious Bellary district.

Agreeing with the state lokayukta, the anti corruption watchdog, the CEC filed a report before the apex court that said large scale and reckless mining was being carried out in these districts, particularly by private companies, seriously destroying the environment.

A three judge green bench headed by Chief Justice of India Mr SH Kapadia and including justices Mr Aftab Alam and Mr Swatanter Kumar sought the response of the union and the state government, as the CEC said mining was being conducted in an environmentally unsustainable manner for short-term gains.

The committee said much forest had been lost due to illegal mining of iron ore over 2,678 hectares in Tumkur and Chitradurga, with illegal mining and production in excess of the size of lease.

The report said that ''This court's July 29th order, by which mining operations have been suspended in Bellary, may be extended in respect of the mining leases in districts of Tumkur and Chitradurga.”

Submitting the CEC's report to the court, amicus curiae ADN Rao said the adverse impact on the environment in these two districts was identical to that seen in Bellary and advocated controlled mining as has been ordered by the apex court in Bellary.

This could in effect mean that all mining by private companies in Karnataka will be banned. In Bellary, after the Supreme Court order, mining is done only by state-run companies, and is meant to meet the requirement of the domestic steel industry, as export of iron ore has also been banned by the state government.

(sourced from TOI)


Tuesday, August 9, 2011

JSW Steel applauds Supreme Court order

Tuesday, 09 Aug 2011

JSW release said that “It is heartening to note that the Honourable Supreme Court of India in its order dated August 5th 2011 permitted NMDC to mine one million tonnes of iron ore per month from its two mines commencing from August 6th 2011.”

It was further clarified in the said order that no part of this production shall be exported. It shall be sold to the domestic industry in consultation with ministry of steel, government of India. Further directions to submit macro level EIA study by Indian Council of Forestry Research and Education and reclamation and rehabilitation plan in Bellary district by State of Karnataka in a time bound manner (3 months) are quite encouraging for achieving sustainable economic development.

JSW Steel applauds this timely relief ordered by the Honourable Supreme Court of India when the steel industry in the region was at the brink of closure of steel plants due to non availability of iron ore caused due to suspension order dated July 29th2011. This relief not only provides breather to the steel industry in the region but also assists in continuation of employment and livelihood for people employed in this sector.

Even though the ruling is not expected to ease the situation for the steel companies in the region to operate the plants at full capacity since the requirement of iron ore is much higher than what is currently allowed, the company understands and appreciates the balancing act of the Honorable court between the environmental concerns and economic development.

The current production of iron ore in the rest of Karnataka is 7 to 8 million tonnes per annum. The total availability of iron ore in the State of Karnataka will be only 19 to 20 million tonnes including the proposed 12 million tonnes from NMDC in Bellary district against the industry requirement of 33million tonnes thus meeting only 60% of requirement.

JSW Steel is the leading integrated steel producer in India with steel making capacities of 10 million and 1 million tonnes located at Vijayanagar in Karnataka and Salem in Tamilnadu respectively. The requirement of iron ore to operate both these units at full capacity will be 18 million tonnes of ore with fe content of 63%.

In view of the partial relief granted by the Honorable court, JSW Steel plans to operate its plants at present at around 80% capacity with an expectation of further relief in the availability of ore from the Honorable Supreme Court of India to enhance the capacity utilization beyond 80%.

Highlights:

1. Will safeguard direct and indirect employment in the steel industry of the region

2. JSW Steel plans to operate its plants at around 80% capacity though ruling is not expected to ease the situation for the steel makers to operate at full capacity

3. Requirement of iron ore to operate these units in JSW Steel plants at full capacity will be 18 million tonnes

4. Proposed 12 million tonnes from NMDC in Bellary district against the industry requirement of 33 million tonnes thus meeting only 60%.

5. Expects further relief to operate these plants beyond 80% in the availability of ore from the Supreme Court

Friday, July 29, 2011

India's top court bans mining in key iron-ore rich region-sources


Fri Jul 29, 2011

NEW DELHI, July 29 (Reuters) - India's top court has imposed an interim ban on mining in a key iron-ore rich region in southern Karnataka state on concerns of environment degradation, legal sources said on Friday, a move which is likely to further delay exports and lift global prices.

The district of Bellary produces about 35 million tonnes of iron ore annually, around 83 percent of Karnataka's total annual production of 42 million tonnes.

Karnataka accounts for about a quarter of iron ore shipments from India, the world's No. 3 supplier of the steelmaking raw material after Australia and Brazil.

The new order is seen impacting state-run NMDC , the world's top miner, which annually mines around 6 million tonnes of iron ore from the region.

The court ordered the ban after a committee found de-forestation and environment degradation in the state's Bellary-Hospet region, which produced more than 47 million tonnes of ore in 2007/08, the latest figures from the state mining department showed.

Karnataka, which is facing a mounting political crisis after the state's chief minister agreed to quit over a $3.6 billion illegal mining scandal, has over 9,000 million tonnes of iron ore resources.

Besides, the state has yet to issue export permits, despite an April order from India's top court to lift a July 2009 ban, while another survey on illegal mining by the Supreme Court-appointed Central Empowered Committee is ongoing.

Lower supplies from India could put further upward pressure on global iron ore prices as supplies are already tight and demand is firm from top consumer China.

The price for iron ore with 62 percent iron content rose 19 cents to $175.45 a tonne on Thursday, the highest since May 19, a price index by Metal Bulletin .IO62-CNO=MB showed.

Saturday, April 30, 2011

Indian iron ore mining mess - SC restrains mining operation in Karnataka

Saturday, 30 Apr 2011

The Supreme Court today restrained 19 mines from carrying out mining operations and transportation of iron ore in Bellary region of Karnataka.

A special forest Bench headed by Chief Justice Mr SH Kapadia also said it would pass an order on another 68 mines which have been indicted by the apex court appointed Central Empowered Committees for violating rules in mining operations.

The Bench said in an interim order said that “We make it clear that there would be no mining or transportation of mined materials (in 19 mines) till further order.”

The Bench, however, did not pass any order against 68 other mines, which have approached the Karnataka High Court. It directed the amicus curie Mr ADN Rao to file transfer petition after getting list of the companies which had approached the high court so that those cases could also be heard by it.

The Bench passed the order on the basis of reports of CEC in which it has been stated that large-scale illegal mining was on in Karnataka particularly in Bellary district in connivance with officials and public representatives.

The CEC had on April 15th 2011 filed its report before the apex court in which it had said that there has been illegal mining on colossal scale in the state, particularly in Bellary district with active connivance of officials of the departments concerned and also public representatives.

The SC had in February directed the CEC to conduct a probe over allegations of illegal mining in the state and submit a report within six weeks.

The court's direction had come after a petition filed by an NGO had submitted that as per Karnataka Lokayukta report, mining activities were being carried not only illegally but also in the areas categorized as forest land.

Earlier, the Bench had directed the CEC to probe the Andhra Pradesh side of the Bellary region.

NGO Samaj Parivartan Samudaya had alleged that the governments of Karnataka and Andhra Pradesh had failed to stop the rampant illegal mining of iron ore, which adversely affected the livelihood of local people, especially the rural poor. It had alleged that illegal mining had resulted in an encroachment of 1,114.8 hectares of forest land in Karnataka.” (sourced from PTI)

Indian Supreme Court halts operations in 19 Karnataka mines.

The 19 mining lease holders

1. Ram Rao m.Poal
2. Adarsha Enterprises
3. J.M.Vrushbendraih
4. Sparkline Mining Corporation
5. Shiva Vilas Trust
6. J.M.Vrushbhendraih
7. Jai Santhoshi Matha Mining Enterprises
8. D.Ramesh
9. VSL Mining Company
10. Karthikeshwar Mining & Iron Ore Co.P.Ltd.
11. Arogayya Das
12. Praveen Kumar Nikkam
13. B.Rudragowda
14. Mithra Mineral Enterprises
15. B.Minerals
16. Muneer Enterprises/ Minerals
17. Trident Minerals
18. veeyam Pvt.Ltd.
19. A.Arogayya Das

sourced Business Line

Sunday, February 13, 2011

Supreme Court asks Karnataka Govt. to allow export of iron ore

Sunday, 13 February 2011
The Supreme Court on Friday directed the Karnataka Government to allow the export of iron ore that has piled up in major ports of the state.An apex court bench comprising Justice R.V. Raveendran and Justice A.K.

Patnaik also directed the Karnataka Government to notify a proposed new law to check illegal mining in the state by March 31.The apex court further said if the state government does not bring the proposed law into force by the end of March, mining firms would be entitled to get interim relief.The piling of iron ore at these ports took place following a ban imposed by the State Government in July 2010 in the wake of widespread allegations of illegal mining.

The directives of the apex court came over a plea filed by mining firms challenging two orders of the Karnataka Government banning the transportation of iron ore within the state and exports from ports. (Source: ANI)

Thursday, January 20, 2011

Karnataka iron ore export ban likely to go

Thursday, Jan 20 2011

The state government had in July 2010 banned the export of iron ore after reports of rampant illegal mining in the mineral-rich Bellary-Hospet region emerged

New Delhi: The iron ore export ban in Karnataka might be lifted soon after the Supreme Court on Thursday gave the state government a two-week deadline to put in place its mechanism to curb illegal mining.
The state government had in July 2010 banned the export of iron ore after reports of rampant illegal mining in the mineral-rich Bellary-Hospet region emerged.
“Let them export under supervision,” said the bench led by Justice R.V Raveendran.
“Stop illegal mining, but you cannot ban exports forever,” the court said to the government’s counsel.
The state government said Lokayukta’s report named several companies who are contesting the ban in court.
MSPL, the largest private mining company in the region, said it was not named in the Lokayukta’s report and using that as a pretext to ban them was unfair.
The government sought more time from the court saying it was ”doing a complete overhaul” of the laws governing the mining and transportation of ore.
By nikhil.k source : livemint.com