Friday, 27 Jan 2012
Vedanta group firm Sesa Goa aims to produce about 20 million tonnes of iron ore next financial year as the firm is hopeful of the mining ban in Karnataka being lifted soon.
Mr PK Mukherjee MD of Sesa Goa in an earnings call said that "I am an optimist... I can not imagine in my wildest dreams that Karnataka will not come in the next financial year. The production from the state will not be less than 6 million tonne per annum. In Goa, it will be almost at the same levels (as of this fiscal).”
He said that the company expects to produce about 14 million tonnes from Goa in the current fiscal.
Talking about Karnataka, Mr Mukherjee said Sesa Goa is ready to restart its operations in the state as and when the ban on mining imposed by the Supreme Court gets lifted. He said that "I am the smartest guy in Karnataka. The moment the whistle is blown, I will be the first person to restart the operations while admitting that all mines in the state may not be allowed to start at one go.”
The Vedanta group firm has a producing iron ore mine of about 6 million tonne per annum capacity in Chitradurga district of Karnataka.
However, it had stopped production, like all other miners in the state, post imposition of the mining ban by the apex court due to large scale environmental degradation in these areas.
(Sourced from www.deccanherald.com)
Showing posts with label ban on iron ore export from Karnataka. Show all posts
Showing posts with label ban on iron ore export from Karnataka. Show all posts
Friday, January 27, 2012
Sunday, January 22, 2012
Coal handling loss at Chennai port
Sunday, 22 Jan 2012
Chennai port's loss was Ennore port's gain with coal handling moving away from Chennai to Ennore in the last nine months. This was the most significant trend observed in cargo handling among the country's major ports in the first nine months of the current financial year a period which witnessed a flat growth rate in cargo traffic when compared to previous year.
The country's major ports managed a 0.38% increase in cargo handling to 418 million tonne from April to December 2011 when compared to 416 million tonne in the same period last year.
A Chennai Port Trust official said that a 19.44% drop in iron ore handling was one of the main reasons for the flat growth. The ban on exports of iron ore by the Karnataka Government continues to bother ports such as Chennai.
The shift in coal to Ennore also coincides with the order of the Madras High Court to shift coal to Ennore from Chennai last year.
The Ennore port handled an additional 2.4 million tonne of thermal coal in the first nine months when compared with the same period last year. Similarly, the port handled 251,000 tonne of coking coal while it was nil in the previous year.
According to the latest data by the Indian Ports Association, on the contrary, the Chennai port lost nearly 400,000 tonne of thermal coal in the first nine months and nearly 140,000 tonne of coking coal.
Due to the 38% increase in handling of thermal coal, the Ennore port recorded the highest growth rate among all the ports of 42.69%.
On the other hand, the Chennai port suffered 8.35% decline in cargo handling due to drop in poor coal handling in the period under review.
(Sourced from BL)
Chennai port's loss was Ennore port's gain with coal handling moving away from Chennai to Ennore in the last nine months. This was the most significant trend observed in cargo handling among the country's major ports in the first nine months of the current financial year a period which witnessed a flat growth rate in cargo traffic when compared to previous year.
The country's major ports managed a 0.38% increase in cargo handling to 418 million tonne from April to December 2011 when compared to 416 million tonne in the same period last year.
A Chennai Port Trust official said that a 19.44% drop in iron ore handling was one of the main reasons for the flat growth. The ban on exports of iron ore by the Karnataka Government continues to bother ports such as Chennai.
The shift in coal to Ennore also coincides with the order of the Madras High Court to shift coal to Ennore from Chennai last year.
The Ennore port handled an additional 2.4 million tonne of thermal coal in the first nine months when compared with the same period last year. Similarly, the port handled 251,000 tonne of coking coal while it was nil in the previous year.
According to the latest data by the Indian Ports Association, on the contrary, the Chennai port lost nearly 400,000 tonne of thermal coal in the first nine months and nearly 140,000 tonne of coking coal.
Due to the 38% increase in handling of thermal coal, the Ennore port recorded the highest growth rate among all the ports of 42.69%.
On the other hand, the Chennai port suffered 8.35% decline in cargo handling due to drop in poor coal handling in the period under review.
(Sourced from BL)
Monday, December 26, 2011
Orissa likely to go Bellary way
Monday, 26 Dec 2011
ET reported that Karnataka scenario may now be repeated in Orissa, which produces a third of the country's iron ore and where a state government team is investigating cases of mining contractors taking out and shipping ore illegally.
The culprit in both cases seems to be the abuse of 'raising contracts', agreements between mine owners and operators permitting an individual or a group of individuals owning a mine to outsource the extraction and sale of ore to a third party with expertise.
A pattern similar to Karnataka has been now noted by Orissa officials in the state. Rule 37 of the Mineral Concessions Rules, 1968, permit raising contracts but without the transfer of ownership and financial control of the mine. But in Keonjhar and other districts of Orissa, that is exactly what seems to have happened. The state government suspects some contractors took over mines and shared profits with the original lease holder.
A senior Orissa official of the mines ministry told ET recently that "Our team has submitted a report on eight such mines which we are studying. We have sent notices to three miners and will be auditing some more.”
Eight more are to be scrutinized for similar violations.
One of Keonjhar's older miners said that “It suits lease holders who have been living far from the mines. They could make money without lifting a finger.”
The Justice Shah Commission, which is examining the illegalities in iron ore and manganese mining across the country, also visited some of these mines during its recent trip to the Joda-Barbil area in Keonjhar. The Shah Commission officials specifically wanted to know the nature of the mine's arrangement with the contractor and the question of control.
(Sourced from ET)
ET reported that Karnataka scenario may now be repeated in Orissa, which produces a third of the country's iron ore and where a state government team is investigating cases of mining contractors taking out and shipping ore illegally.
The culprit in both cases seems to be the abuse of 'raising contracts', agreements between mine owners and operators permitting an individual or a group of individuals owning a mine to outsource the extraction and sale of ore to a third party with expertise.
A pattern similar to Karnataka has been now noted by Orissa officials in the state. Rule 37 of the Mineral Concessions Rules, 1968, permit raising contracts but without the transfer of ownership and financial control of the mine. But in Keonjhar and other districts of Orissa, that is exactly what seems to have happened. The state government suspects some contractors took over mines and shared profits with the original lease holder.
A senior Orissa official of the mines ministry told ET recently that "Our team has submitted a report on eight such mines which we are studying. We have sent notices to three miners and will be auditing some more.”
Eight more are to be scrutinized for similar violations.
One of Keonjhar's older miners said that “It suits lease holders who have been living far from the mines. They could make money without lifting a finger.”
The Justice Shah Commission, which is examining the illegalities in iron ore and manganese mining across the country, also visited some of these mines during its recent trip to the Joda-Barbil area in Keonjhar. The Shah Commission officials specifically wanted to know the nature of the mine's arrangement with the contractor and the question of control.
(Sourced from ET)
Monday, August 22, 2011
Sesa Goa hits 52-week low on a likely mining ban in Chitradurga, Tumkur
Mon,Aug 22, 2011
Sesa Goa slipped 4.85% at Rs. 211.75 at 11:03 IST on BSE on reports a panel appointed by the Supreme Court has recommended a ban on mining in iron ore-rich areas of Tumkur and Chitradurga in Karnataka.
Meanwhile, the BSE Sensex was down 31.10 points, or 0.19%, to 16,105.82.
On BSE, 2.59 lakh shares were traded in the counter as against an average daily volume of 4.08 lakh shares in the past one quarter.
The stock hit a low of Rs. 209.60 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs. 215 so far during the day. The stock had hit a 52-week high of Rs. 383.50 on 15 October 2010.
The stock had underperformed the market over the past one month until 19 August 2011, sliding 23.29% compared with the Sensex's 13.47% fall. The scrip had also underperformed the market in past one quarter, tumbling 24.81% as against 11.02% decline in the Sensex.
India's largest private sector iron ore exporter has an equity capital of Rs. 86.91 crore. Face value per share is Re 1.
According to reports, the Supreme Court's environment panel, Central Empowered Committee (CEC), on Friday, 19 August 2011, concurred with the Karnataka Lokayukta to report rampant illegal iron ore mining in Chitradurga and Tumkur districts and recommended a complete ban on private mining.
Sesa Goa has a mine is Chitradurga. Earlier this month, Sesa Goa's managing director, PK Mukherjee was quoted by the media as saying that the company is targeting six million tonne per annum (MTPA) of iron ore production from Karnataka in the current year.
Submitting the CEC's report to a bench of Chief Justice S H Kapadia and Justices Aftab Alam and Swatanter Kumar, adviser A D N Rao reportedly said the adverse impact on environment in Chitradurga and Tumkur districts was identical to the one witnessed in Bellary and advocated controlled mining as had been ordered by the apex court in Bellary.
On 29 July 2011, the apex Court had suspended all mining activities in Bellary district of Karnataka, observing that extraction of iron ore would not be allowed at the cost of environment degradation.
Reports suggest that the court has issued notice to the Karnataka government and sought its response within a week to the CEC's recommendation that mining activity be completely banned in Chitradurga and Tumkur districts before putting in place an interim arrangement on the lines of the one in Bellary district, where mining is done by public sector undertakings meant to meet the requirement of the domestic steel industry.
Sesa Goa's consolidated net profit slumped 35.4% to Rs. 840.59 crore on 12.5% fall in net sales to Rs. 2094.74 crore in Q1 June 2011 over Q1 June 2010.
Sesa Goa is India's largest producer and exporter of iron ore in the private sector and is on course to be in the league of top four iron ore producing companies in the world. Apart from iron ore it also produces pig iron and metallurgical coke.
Sesa Goa slipped 4.85% at Rs. 211.75 at 11:03 IST on BSE on reports a panel appointed by the Supreme Court has recommended a ban on mining in iron ore-rich areas of Tumkur and Chitradurga in Karnataka.
Meanwhile, the BSE Sensex was down 31.10 points, or 0.19%, to 16,105.82.
On BSE, 2.59 lakh shares were traded in the counter as against an average daily volume of 4.08 lakh shares in the past one quarter.
The stock hit a low of Rs. 209.60 so far during the day, which is also a 52-week low for the counter. The stock hit a high of Rs. 215 so far during the day. The stock had hit a 52-week high of Rs. 383.50 on 15 October 2010.
The stock had underperformed the market over the past one month until 19 August 2011, sliding 23.29% compared with the Sensex's 13.47% fall. The scrip had also underperformed the market in past one quarter, tumbling 24.81% as against 11.02% decline in the Sensex.
India's largest private sector iron ore exporter has an equity capital of Rs. 86.91 crore. Face value per share is Re 1.
According to reports, the Supreme Court's environment panel, Central Empowered Committee (CEC), on Friday, 19 August 2011, concurred with the Karnataka Lokayukta to report rampant illegal iron ore mining in Chitradurga and Tumkur districts and recommended a complete ban on private mining.
Sesa Goa has a mine is Chitradurga. Earlier this month, Sesa Goa's managing director, PK Mukherjee was quoted by the media as saying that the company is targeting six million tonne per annum (MTPA) of iron ore production from Karnataka in the current year.
Submitting the CEC's report to a bench of Chief Justice S H Kapadia and Justices Aftab Alam and Swatanter Kumar, adviser A D N Rao reportedly said the adverse impact on environment in Chitradurga and Tumkur districts was identical to the one witnessed in Bellary and advocated controlled mining as had been ordered by the apex court in Bellary.
On 29 July 2011, the apex Court had suspended all mining activities in Bellary district of Karnataka, observing that extraction of iron ore would not be allowed at the cost of environment degradation.
Reports suggest that the court has issued notice to the Karnataka government and sought its response within a week to the CEC's recommendation that mining activity be completely banned in Chitradurga and Tumkur districts before putting in place an interim arrangement on the lines of the one in Bellary district, where mining is done by public sector undertakings meant to meet the requirement of the domestic steel industry.
Sesa Goa's consolidated net profit slumped 35.4% to Rs. 840.59 crore on 12.5% fall in net sales to Rs. 2094.74 crore in Q1 June 2011 over Q1 June 2010.
Sesa Goa is India's largest producer and exporter of iron ore in the private sector and is on course to be in the league of top four iron ore producing companies in the world. Apart from iron ore it also produces pig iron and metallurgical coke.
Friday, May 20, 2011
Indian iron ore mining mess - Karnataka bans mining
Friday, 20 May 2011
BS reported that Karnataka state government has issued a direction to halt all kind of iron ore mining activities in the Bellary Hospet region for a temporary period.
The department of mines and geology issued a notification to all mining lease holders on May 13th 2011, to shut down all kinds of mining activities, including transportation of mined material.
The action of the DMG came in the wake of the fresh joint survey of 99 mining leases in the district as ordered by the Supreme Court on May 6th 2011.
The apex court had directed for constituting a tripartite committee from an SC panel, DMG and Lokayukta officials to conduct a survey to demarcate the boundaries and assess the extent of encroachments. The team commenced its work from May 16. The DMG, to facilitate the smooth conduct of the fresh survey, has issued orders to mining leaseholders to stop all kinds of mining activities and transportation of ore with immediate effect. It has also asked them to surrender all the mineral dispatch permits and relevant trip sheets until completion of the survey.
Mr DV Pichamuthu director of Federation of Indian Mineral Industries South said “It is very difficult to understand the logic of the mines department. We have been fighting for the last 10 months for restarting exports. Even after the SC directions in favor of the miners, the state government has not started issuing export permits. We are closely watching the situation. All these days, only the mining companies have suffered and the recent move of the state government has hit the steel companies. Let the steel industry take up the issue with the government now.’ (sourced from BS)
BS reported that Karnataka state government has issued a direction to halt all kind of iron ore mining activities in the Bellary Hospet region for a temporary period.
The department of mines and geology issued a notification to all mining lease holders on May 13th 2011, to shut down all kinds of mining activities, including transportation of mined material.
The action of the DMG came in the wake of the fresh joint survey of 99 mining leases in the district as ordered by the Supreme Court on May 6th 2011.
The apex court had directed for constituting a tripartite committee from an SC panel, DMG and Lokayukta officials to conduct a survey to demarcate the boundaries and assess the extent of encroachments. The team commenced its work from May 16. The DMG, to facilitate the smooth conduct of the fresh survey, has issued orders to mining leaseholders to stop all kinds of mining activities and transportation of ore with immediate effect. It has also asked them to surrender all the mineral dispatch permits and relevant trip sheets until completion of the survey.
Mr DV Pichamuthu director of Federation of Indian Mineral Industries South said “It is very difficult to understand the logic of the mines department. We have been fighting for the last 10 months for restarting exports. Even after the SC directions in favor of the miners, the state government has not started issuing export permits. We are closely watching the situation. All these days, only the mining companies have suffered and the recent move of the state government has hit the steel companies. Let the steel industry take up the issue with the government now.’ (sourced from BS)
Tuesday, April 26, 2011
Karnataka iron ore exporters seek permits
Tuesday, 26 April 2011 11:00
Source: Livemint
Iron ore traders in Karnataka said they had applied for export permits to test the market and the administrative system as a nine-month ban was lifted temporarily by the Supreme Court.
On 5 April, the apex court ordered the state government to lift the ban with effect from 20 April on movement of iron ore meant for exports and said the next hearing in the case of exporters versus the state government would be held in the first week of May.
“It is risky no doubt. What will be the final outcome of the case, we are not sure, but we want to move the material,” said K. Somasekhar, managing director of ILC Industries Ltd, a large miner-cum-exporter in Bellary district.
Somasekhar said the department of mines in the state had not given the permits. “They are giving some excuse or the other,” he said.
Karnataka, the nation’s second largest iron ore producer after Orissa, accounts for about a quarter of India’s total iron ore exports of over 100 million tonnes a year.
But the state government under the leadership of chief minister B.S. Yeddyurappa banned exports of iron ore from 10 ports in July last year and subsequently stopped issuing transport permits for the commodity to be moved to other ports for exports, citing a drive against illegal mining and the need to preserve the resource for local steel firms.
“The (foreign) market is alright. Today we haven’t got the permit. Tomorrow and day after are holidays. Let’s see if we get it on Monday,” said Rahul Baldota, executive director at MSPL Ltd, one of the petitioners challenging the ban in the Supreme Court.
A metals analyst at a foreign institutional brokerage, said that exporters were also under pressure to reduce inventories before the monsoon, which runs June to September, and, therefore, had applied for export permits, even though chances of the ban getting reinforced could not be ruled out with the case still not over.
“I think miners will make the most of any temporary relief to exports,” the analyst said. He declined to be named.
In a separate matter that has a bearing on the case, a Supreme Court-appointed committee last week recommended a crackdown on illegal mining in Karnataka, including cancellation of mining leases.
The Central Empowered Committee indicted the Karnataka government after it found that the administration officials aided in illegal mining. The case will come up for hearing in the weeks ahead.
Developments in Karnataka are being watched in the international iron ore market, where India is the third largest exporter behind Australia and Brazil. Indian miners mainly supply to China, which has the world’s largest steel industry.
Indian steel makers have campaigned against iron ore exports as they want more of the resource available to them locally at low prices, but the miners contend that most local plants do not have the technology to use the powdery fines that are a by-product of lumps.
Iron ore prices on Thursday were at $185 (Rs.8,196) a tonne with freight for the benchmark 63.5% grade, less than the $200 a tonne level seen early this year. It’s still more than 13% higher than $163 a year ago owing to improving demand from China.
On 5 April, the apex court ordered the state government to lift the ban with effect from 20 April on movement of iron ore meant for exports and said the next hearing in the case of exporters versus the state government would be held in the first week of May.
“It is risky no doubt. What will be the final outcome of the case, we are not sure, but we want to move the material,” said K. Somasekhar, managing director of ILC Industries Ltd, a large miner-cum-exporter in Bellary district.
Somasekhar said the department of mines in the state had not given the permits. “They are giving some excuse or the other,” he said.
Karnataka, the nation’s second largest iron ore producer after Orissa, accounts for about a quarter of India’s total iron ore exports of over 100 million tonnes a year.
But the state government under the leadership of chief minister B.S. Yeddyurappa banned exports of iron ore from 10 ports in July last year and subsequently stopped issuing transport permits for the commodity to be moved to other ports for exports, citing a drive against illegal mining and the need to preserve the resource for local steel firms.
“The (foreign) market is alright. Today we haven’t got the permit. Tomorrow and day after are holidays. Let’s see if we get it on Monday,” said Rahul Baldota, executive director at MSPL Ltd, one of the petitioners challenging the ban in the Supreme Court.
A metals analyst at a foreign institutional brokerage, said that exporters were also under pressure to reduce inventories before the monsoon, which runs June to September, and, therefore, had applied for export permits, even though chances of the ban getting reinforced could not be ruled out with the case still not over.
“I think miners will make the most of any temporary relief to exports,” the analyst said. He declined to be named.
In a separate matter that has a bearing on the case, a Supreme Court-appointed committee last week recommended a crackdown on illegal mining in Karnataka, including cancellation of mining leases.
The Central Empowered Committee indicted the Karnataka government after it found that the administration officials aided in illegal mining. The case will come up for hearing in the weeks ahead.
Developments in Karnataka are being watched in the international iron ore market, where India is the third largest exporter behind Australia and Brazil. Indian miners mainly supply to China, which has the world’s largest steel industry.
Indian steel makers have campaigned against iron ore exports as they want more of the resource available to them locally at low prices, but the miners contend that most local plants do not have the technology to use the powdery fines that are a by-product of lumps.
Iron ore prices on Thursday were at $185 (Rs.8,196) a tonne with freight for the benchmark 63.5% grade, less than the $200 a tonne level seen early this year. It’s still more than 13% higher than $163 a year ago owing to improving demand from China.
Source: Livemint
Wednesday, March 30, 2011
Iron ore exports down 18.60 pc in Feb to 10.13 MT
Wed, 30 March 2011, 1:33 PM
New Delhi, Mar 30 (PTI) Continuing its declining trend for the eighth consecutive month, India''s iron ore exports in February has gone down by 18.60 per cent to 10.13 million tonnes (MT).
The outbound shipment of the vital steel-making raw material during April-February period also declined by 17.98 per cent to 85.43 MT, mainly on account of export ban imposed by Karnataka government.
According to the data compiled by industry body Federation of Indian Mineral Industries (FIMI), the country''s shipment declined by 18.60 per cent in February against the same period last year. Exports were recorded at 12.54 MT in February, 2010.
"The industry has been suffering due to the ban on exports imposed by Karnataka in July. Also, the raise in export duty on iron ore to 20 per cent in the Budget has added salt to the exporters'' injury and its impact will be felt in March exports ," FIMI Secretary General R K Sharma told PTI.
In the Budget, duty on fines was hiked four-fold to 20 per cent while on lumps was upped to 20 per cent from 15 per cent earlier. The country had shipped 117.37 MT of iron ore during the last fiscal.
Also, on account of exports ban imposed by Karnataka shipments declined by 17.98 per cent to 85.43 MT during April-February this fiscal.
In July last year, Karnataka government had slapped the ban in the midst of a controversy generated over illegal mining activities in the state. Karnataka is one of the largest iron ore exporter of the country.
India has been exporting iron ore to China, Japan, South Korea, Europe and other countries.
New Delhi, Mar 30 (PTI) Continuing its declining trend for the eighth consecutive month, India''s iron ore exports in February has gone down by 18.60 per cent to 10.13 million tonnes (MT).
The outbound shipment of the vital steel-making raw material during April-February period also declined by 17.98 per cent to 85.43 MT, mainly on account of export ban imposed by Karnataka government.
According to the data compiled by industry body Federation of Indian Mineral Industries (FIMI), the country''s shipment declined by 18.60 per cent in February against the same period last year. Exports were recorded at 12.54 MT in February, 2010.
"The industry has been suffering due to the ban on exports imposed by Karnataka in July. Also, the raise in export duty on iron ore to 20 per cent in the Budget has added salt to the exporters'' injury and its impact will be felt in March exports ," FIMI Secretary General R K Sharma told PTI.
In the Budget, duty on fines was hiked four-fold to 20 per cent while on lumps was upped to 20 per cent from 15 per cent earlier. The country had shipped 117.37 MT of iron ore during the last fiscal.
Also, on account of exports ban imposed by Karnataka shipments declined by 17.98 per cent to 85.43 MT during April-February this fiscal.
In July last year, Karnataka government had slapped the ban in the midst of a controversy generated over illegal mining activities in the state. Karnataka is one of the largest iron ore exporter of the country.
India has been exporting iron ore to China, Japan, South Korea, Europe and other countries.
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