Orissa blocks its ore export from two Andhra ports

Wednesday, 18 January 2012

Orissa has continued to stop its iron ore exports from two ports in Andhra Pradesh on concerns over their mechanism to check illegal shipments, an official said yesterday. The state stopped issuing permits for ore exports through the Gangavaram and Kakinada ports early last month after they failed to provide their operational details.

"Gangavaram has in the meanwhile given us the required information and we are examining that. But Kakinada has not responded," state Steel and Mines Secretary Manoj Ahuja said.
Iron ore mined in the state is exported from ports in many states, including Andhra Pradesh and West Bengal. Orissa has initiated several steps to check illegal mining and export of iron ore from the state after some politicians alleged in July 2009 that some mines were operating without licences.
Source: IANS

Goa orders re verification of traders

Monday, 21 Nov 2011

The Goa administration has ordered a re verification of the missing and unscrupulous iron ore traders by the police before actually filing police complaints against them for various violations, as suggested earlier by the Shah Commission of Inquiry.

Environmental activists eagerly awaiting the inquiry report here, however, alleged that these were delaying tactics adopted by officials to save their own skin or that of their predecessors who were instrumental in large scale violations in registration of ore traders.

Over a fortnight ago, a senior official of the Shah Commission repeatedly asked the Goa Mines and Geology Department to file police complaints against nearly 110 of the 400 plus such traders who could not be traced at their addresses, according to a report submitted by State Home Department.

The report, which was submitted to the inquiry commission directly by the Department of Mines and Geology last month, was viewed seriously by the Shah Commission.

Sources in the State government told The Hindu that following the recommendations of the Shah Commission, the Mines Department was asked to order a re-verification after it was brought to the notice of the administration that some genuine companies had shifted their offices after their leases expired.

The sources admitted that there could be some genuine cases which needed another opportunity but the government was not opting for it since it would allow some influential fly-by-night operators an escape route and also avert or delay police action against many officials in the department, past and present, for their dubious role in faulty registration of traders based on poor data and inadequate information.

The police in their report had stated that the offices of the traders and companies were found closed or not traceable as they had shifted to new locations. In some cases, sketchy addresses were given, inviting response from police that the trader “did not exist.”

(Sourced from Hindu.com)

Iron ore exports under-invoiced

Sat,29 Oct, 2011

NELLORE: The CBI team that investigated iron ore exports by the Obulapuram Mining Company owned by Gali Janardhan Reddy through the Krishnapatnam port has reportedly found several irregularities.

According to sources, it found that 2,000 trucks ferried ore from Obulapuram in Anantapur district to the port in Nellore district daily, each carrying 40-55 tonnes of ore as against the permitted load of 15 tonnes.

However, CBI officials were tight-lipped on how many companies were involved in iron ore export from Krishnapatnam between 2007 and 2009 and what OMC’s share was. They simply said investigation was complete and a charge sheet would be filed in a day or two. It is learnt that the CBI found that 42 lakh tonnes of ore was exported from the port by 80 companies since 2007 but only 14 lakh tonnes was recorded.

It seized some crucial documents during its visit to the customs office after questioning its assistant commissioner K Ranga Rao on Thursday.

Not satisfied with the answers given by the port authorities, the CBI has issued notices seeking a written reply.

CBI joint director V V Lakshminarayana met SP BV Ramana Kumar Thursday and discussed road accidents involving iron ore trucks on the national highway from Kadirinaidupalle in Marripadu to the port that lies in the district.

As per police records, 200 people died and 500 were maimed in 350 accidents involving iron ore lorries during 2007-09.

sourced IBN Live.in

CBI focuses on iron ore exports by J Reddy

Hyderabad, October 27, 2011

The Central Bureau of Investigation (CBI), probing illegal mining by former Karnataka minister Gali Janardhana Reddy, is now focusing its attention on the export of iron ore by the mining baron.

A team of CBI officials led by Joint Director VV Lakshminarayana Thursday reached Nellore
district and began the probe at Krishnapatnam port, from where the maximum quantity of iron ore was exported by Obulapuram Mining Company (OMC) owned by Janardhana Reddy.

"Iron ore was exported from various ports and the maximum percentage was from Krishnapatnam port. We want to know how much was exported from here and what procedures the port authorities followed," Lakshminarayana told reporters.

The federal agency will also gather information from customs officials with regard to exports from the private port.

"The port authorities had already sent some documents to us. We have examined them and have come here as part of the investigations," he said.

According to the Karnataka Lokayukta report, the maximum export of illegal iron ore took place from Krishnapatnam port. Out of the total iron ore exports of 3,31,04,866 tonnes from seven ports since 2006-07, Krishnapatnam accounted for 1,11,70,994 tonnes.

Lakshminarayana, who is also leading the investigations into alleged illegal assets of MP Y.S. Jaganmohan Reddy, said their main concentration was on illegal mining as the arrests had been made in the case and "we have to soon file the charge sheet".

Janardhana Reddy and his brother-in-law and OMC managing director B.V. Srinivasa Reddy are currently lodged in Chanchalguda Central Jail here.

The CBI arrested the duo from Bellary in Karnataka Sep 5 in connection with illegal mining in Andhra Pradesh's Anantapur district bordering Karnataka. The probe was ordered by the Andhra Pradesh government in 2009.

The Supreme Court last month ordered the CBI probe into illegal mining in Karnataka.

(sourced Hindustan Times)

Goa mining scam pegged at INR 1200 crore

Monday, 29 Aug 2011

ET reported that Goa assembly's Public Accounts Committee Saturday pegged the quantum of illegal mining in the state at INR 1,200 crore, a day after the Bombay High Court issued notice to 48 mining companies for excessive mining in their leases.

A PAC member said that "More than 6 million tonne of ore has already been illegally extracted. It is worth INR 1,200 crore adding the committee was perusing the documents related to the scam.”

The Panaji bench of the Bombay High Court, comprising Justices DG Karnik and FM Reis issued the notice on a public suit by green NGO Goa Foundation.

The NGO argued that the mining companies, which include the Dempo Mining Corporation, and local mining companies like Timblo Irmaos, VM Salgaoncar and Bros, Chowgule Co were extracting ore in violation of environment clearances limit granted to them" by the union ministry of environment and forest.

The court also issued notice to the MoEF.

The petitioner said that "The mining companies make self declarations of the amount of iron ore extracted and the mining department has no mechanism to verify the ore actually extracted.”

(Sourced from ET)

Iron Ore-Shanghai rebar falls for 3rd day on tighter liquidity

Mon Aug 29, 2011

* China daily crude steel output remains high
* Indian court expands mining ban in Karnataka

By Manolo Serapio Jr

MANILA, Aug 29 (Reuters) - China steel futures dropped for a third day running to hit two-week lows on Monday, with sentiment hurt by the country's latest move to tighten liquidity, which could curb steel demand as well as bank funds for steelmakers.

China has ordered banks to include their margin deposits in required reserves at the central bank to siphon off excess liquidity, banking sources said on Friday, part of Beijing's campaign to fight inflation.

The liquidity tightening move countered news that China's crude steel output stood at 1.947 million tonnes a day during the period Aug. 11-20, up 0.3 percent from the first 10 days of the month.

"China's high steel output actually matches the overall solid demand in the country, as we can see that large steel inventories have been used up by downstream sectors," said Xu Xiangchun, analyst with industry consultancy Mysteel.com.

"But I am still cautious as the further tightening moves may continue to weigh on demand from industrial sectors, investment on property sector may slow down, while other industrial sectors may also see slower growth."

The most-active January rebar contract on the Shanghai Futures Exchange fell as low as 4,768 yuan a tonne, its weakest since Aug. 11. By 0412 GMT, it was down 0.6 percent at 4,773 yuan.

The tightening move could also constrain funding for steelmakers, said an iron ore trader in China's eastern Shandong province.

"This is not a good time to tighten liquidity ahead of the peak steel consumption season in September and October," he said.

Recent rises in China's steel prices, spurred by increased output as producers kept pace with strong construction steel demand, had encouraged mills to restock iron ore, the key raw material.

But iron ore price gains had been tepid as mills didn't want to buy aggressively amid uncertainties facing the global economy.

Spot iron ore with 62-percent iron content rose 70 cents to $179.64 a tonne on Friday, according to Metal Bulletin .IO62-CNO=MB. Two similar reference prices, Platts IODBZ00-PLT and the Steel Index .IO62-CNI=SI, were steady at $180.25 and $178.50, respectively.

Tight Indian supplies had helped support iron ore prices as monsoon rains, logistical problems and policy issues continued to disrupt shipments from the world's No. 3 supplier.

India's Supreme Court on Friday extended a ban on mining to two more districts in the iron-ore rich southern state of Karnataka. The mining ban in Tumkur and Chitradurga districts takes to three the number of districts affected by the ban after a similar imposition was made in Bellary.

Prohibition on mining in the three districts was recommended by a court-appointed panel on Aug. 19, as part of efforts to control illegal mining.

Karnataka introduced a ban on exports in July 2010 which it said aimed to curb illegal mining. The Supreme Court ordered the export ban lifted in April although the southern state has yet to issue export permits.

"The mining ban is supportive of prices but I think the market is already convinced there's still a long road to go before Karnataka can make any exports," said the Shandong-based trader.

No plan to ban iron ore exports from India - Mr Sharma

Sunday, 21 Aug 2011

PTI reported that Indian union minister for commerce and industry Mr Anand Sharma ruled out a ban on iron ore exports, saying the surplus mineral must be exported.

Mr Anand said that "A considered view had been taken that the exports of iron ore must continue. India has enough surplus particularly of iron ore fines.”

He added that domestic industry largely uses iron ore lumps, while the country exports mainly iron ore fines.

Mr Sharma said that "Therefore, mined iron ore which is in surplus must be exported.”

The issues had arisen following an apex court order of late last month, banning on all mining activities in Bellary in Karnataka. The apex court in its subsequent hearing later on August 5 partially lifted the ban and allowed only state run NMDC to carry out mining activities in the region with a cap of 1 million tonnes per month. The apex court had also said that iron ore produced from the Bellary region will not be exported.

Mr Sharma said that "This particular intervention by Supreme Court was on a limited context on what was happening, particularly in the state of Karnataka in Bellary, where there was illegal mining of iron ore. Illegal mining is taking place in some other parts of the country as well, but that does not lead to a situation where that iron ore does not get exported. This issue will get suitably resolved.”

(Sourced from PTI)

Goa mines dept unable to explain iron ore royalty losses to PAC

Thursday, 03 Mar 2011 By PTI

Goa mines department has failed to explain the royalty loss on almost one crore tonne of iron ore exported between 2003-05. The Goa Legislative Assembly’s Public Accounts Committee had questioned the mines department to reason the losses but the department floundered.

Mr Manohar Parrikar chairman of PAC in the absence of proper mechanism, the mines department had let the revenue losses in the form of royalty. He said that “The mines department has shown its inability to explain the revenue losses adding that the Comptroller Auditor General in its report had mentioned about these losses.”

The leader of the Opposition said that the legal mines in the state are not regulated which leads to these issues.

Mr Parrikar added that “Goa government has powers to formulate rules and regulations to control extraction and storage of minerals. If powers are executed then legal mining can be regulated.”

PAC has asked the State Transport Director, Mr Arun Desai to check unlicensed drivers of mining trucks. He claimed that “As per rough estimates, at least 25 per cent of these drivers don’t have licences.”

The Committee has directed the Director General of Police, Mr BS Bassi, to form a squad headed by the Deputy Superintendent of Police to curb the illegalities like overloading by these trucks. Both the departments have been asked to submit the action taken report to PAC as soon as possible.

Mr Parrikar said mining trucks have become a major bone of contention in rural Goa where people are on road, almost every day, complaining about dust pollution and accidents.