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 illegal iron ore mining transactions. Show all posts
Showing posts with label illegal iron ore mining transactions. Show all posts
Monday, March 19, 2012
Sunday, March 4, 2012
Mr Reddy sent to custody till March 12
Sunday, 04 Mar 2012
IANS reported that billionaire mine owner Mr Gali Janardhana Reddy was Friday sent to the custody of Central Bureau of Investigation till March 12 in connection with an illegal mining case.
Bangalore's additional civil and sessions court judge Mr BM Angadi accepted the CBI plea for custody of Reddy for interrogation regarding illegal iron ore mining in Karnataka.
Mr Reddy was produced in Angadi's court by the CBI, which brought him to Bangalore early Friday from Chanchalaguda jail in Hyderabad, about 600 km from here.
Mr Reddy has been lodged in the Hyderabad jail since September 5 in
Source - IANS India
IANS reported that billionaire mine owner Mr Gali Janardhana Reddy was Friday sent to the custody of Central Bureau of Investigation till March 12 in connection with an illegal mining case.
Bangalore's additional civil and sessions court judge Mr BM Angadi accepted the CBI plea for custody of Reddy for interrogation regarding illegal iron ore mining in Karnataka.
Mr Reddy was produced in Angadi's court by the CBI, which brought him to Bangalore early Friday from Chanchalaguda jail in Hyderabad, about 600 km from here.
Mr Reddy has been lodged in the Hyderabad jail since September 5 in
Source - IANS India
Monday, February 6, 2012
SC panel suggest cancellation of 49 mining leases
Monday, 06 Feb 2012
Economic Times reported that a committee set up by the Supreme Court tasked with investigating illegal mining in Karnataka has submitted its final report containing recommendations that could radically change how mining is done in the country.
The Central Empowered Committee, in its report submitted on Saturday, has recommended the cancellation of leases of 49 mines that have violated the terms of their licence. It is also believed to have recommended the auction of these leases. These mines produce up to 10 million tonnes of iron ore per year.
The people familiar with the report said that 45 mines cleared of any wrong doing will be allowed to mine as soon as the ban is lifted while 72 other mines will resume only after they have paid penalties.
The collected fines could be used to establish a Sustainable Mining Development Fund and setting up dedicated mining infrastructure for the area.
A moratorium on future leases, until the state has recovered forest lost to illegal mining and established dedicated mining infrastructure, is also on the cards.
(Sourced from ET)
Economic Times reported that a committee set up by the Supreme Court tasked with investigating illegal mining in Karnataka has submitted its final report containing recommendations that could radically change how mining is done in the country.
The Central Empowered Committee, in its report submitted on Saturday, has recommended the cancellation of leases of 49 mines that have violated the terms of their licence. It is also believed to have recommended the auction of these leases. These mines produce up to 10 million tonnes of iron ore per year.
The people familiar with the report said that 45 mines cleared of any wrong doing will be allowed to mine as soon as the ban is lifted while 72 other mines will resume only after they have paid penalties.
The collected fines could be used to establish a Sustainable Mining Development Fund and setting up dedicated mining infrastructure for the area.
A moratorium on future leases, until the state has recovered forest lost to illegal mining and established dedicated mining infrastructure, is also on the cards.
(Sourced from ET)
Wednesday, January 25, 2012
7 held for transporting iron ore in Orissa
Wednesday, 25 Jan 2012
PTI reported that seven persons were arrested for illegally transporting iron ore and metal scraps in Orissa's Sundargarh district.
Three persons were arrested from Ranisala village under Koida police limit for illegal transportation of iron ore from Koida mines area last night.
Police said that altogether 25 tonnes of iron ore stocked in Patabeda forest under Koida police limit were also seized.
Four others were arrested from Kuanramunda and Rajgangpur and a metal scrap loaded minitruck and stocked scraps were seized from a godown under Rajgangpur police limit last night.
(Sourced from PTI)
PTI reported that seven persons were arrested for illegally transporting iron ore and metal scraps in Orissa's Sundargarh district.
Three persons were arrested from Ranisala village under Koida police limit for illegal transportation of iron ore from Koida mines area last night.
Police said that altogether 25 tonnes of iron ore stocked in Patabeda forest under Koida police limit were also seized.
Four others were arrested from Kuanramunda and Rajgangpur and a metal scrap loaded minitruck and stocked scraps were seized from a godown under Rajgangpur police limit last night.
(Sourced from PTI)
Saturday, December 31, 2011
Shah Commission seeks info on lease renewals in Orissa
Saturday, 31 Dec 2011
BS reported that after inspection of illegal mining activities in Orissa during its six day visit, Justice M B Shah Commission of enquiry has sought updated information on status of prospecting license applications, renewal of mining leases and position of mining lease boundaries.
Chief Secretary Mr BK Patnaik said that "The Shah commission has sought latest information on status of PL applications, digitization of mining lease boundaries and renewal of mining leases in the state. We will provide the necessary information to the commission.”
As many as 344 applications for renewal of mining lease are pending at different levels. While 219 RML applications are pending at the government level, the pendency at the collectorate and directorate levels stands at 110 and 15 respectively. The steel & mines department had rejected RML cases of over 40 lessees lacking all statutory clearances.
Meanwhile, 51 lessees are operating their mines under deemed extension. The list of mines operating under deemed extension includes TATA Steel, Ferro Alloys Corporation Ltd, Essel Mining & Industries Ltd Mid-East Integrated Steel, Patnaik Minerals Ltd, RP Sao, Rungta Mines and OCL India among others.
Regarding digitization of mine lease boundaries, the state government claimed to have completed nearly 80 per cent of the work.
Prior to its visit to Orissa, the independent commission had sought information four times on various aspects and the state steel & mines department had complied with the same.
Besides seeking a detailed list of all lessees and their addresses, the probe panel in its last query had demanded information from the steel & mines department on alleged violation of Mines and Minerals Development and Regulation (MMDR) Act, 1957 and Mineral Concession Rules-1960 by Patnaik Minerals Private Ltd in the Joda circle.
During its visit to the state from December 7-13, the nine-member commission led by Justice Shah, former justice of the Supreme Court, had held discussions with top officials. The commission had urged the government to curb production so as to ensure that the finite mineral resource is left for future generations.
It had stressed on earmarking more funds by lessees for peripheral development. The commission, on the whole, had expressed satisfaction over the steps taken by the government but hinted at the involvement of bureaucrats in illegal mining activities
(Sourced from BS)
BS reported that after inspection of illegal mining activities in Orissa during its six day visit, Justice M B Shah Commission of enquiry has sought updated information on status of prospecting license applications, renewal of mining leases and position of mining lease boundaries.
Chief Secretary Mr BK Patnaik said that "The Shah commission has sought latest information on status of PL applications, digitization of mining lease boundaries and renewal of mining leases in the state. We will provide the necessary information to the commission.”
As many as 344 applications for renewal of mining lease are pending at different levels. While 219 RML applications are pending at the government level, the pendency at the collectorate and directorate levels stands at 110 and 15 respectively. The steel & mines department had rejected RML cases of over 40 lessees lacking all statutory clearances.
Meanwhile, 51 lessees are operating their mines under deemed extension. The list of mines operating under deemed extension includes TATA Steel, Ferro Alloys Corporation Ltd, Essel Mining & Industries Ltd Mid-East Integrated Steel, Patnaik Minerals Ltd, RP Sao, Rungta Mines and OCL India among others.
Regarding digitization of mine lease boundaries, the state government claimed to have completed nearly 80 per cent of the work.
Prior to its visit to Orissa, the independent commission had sought information four times on various aspects and the state steel & mines department had complied with the same.
Besides seeking a detailed list of all lessees and their addresses, the probe panel in its last query had demanded information from the steel & mines department on alleged violation of Mines and Minerals Development and Regulation (MMDR) Act, 1957 and Mineral Concession Rules-1960 by Patnaik Minerals Private Ltd in the Joda circle.
During its visit to the state from December 7-13, the nine-member commission led by Justice Shah, former justice of the Supreme Court, had held discussions with top officials. The commission had urged the government to curb production so as to ensure that the finite mineral resource is left for future generations.
It had stressed on earmarking more funds by lessees for peripheral development. The commission, on the whole, had expressed satisfaction over the steps taken by the government but hinted at the involvement of bureaucrats in illegal mining activities
(Sourced from BS)
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.
Friday, December 9, 2011
Shah Commission begins probe into illegal mining in Orissa
Friday, 09 Dec 2011
PTI reported that the Centre appointed Shah Commission led by former Supreme Court judge Justice MB Shah has formally began investigation into illegal mining in Orissa.
The Commission held a discussion with the district authorities of Keonjhar and Sundergarh besides authorities of the railways, Indian Bureau of Mines and forest officials.
Collectors, superintendents of police, divisional forest officers, regional manager of the pollution control board and vigilance officer of the south eastern railways attended the meeting.
The commission members are scheduled to visit certain mines in Joda areas of Keonjhar district and Koida area in Sundergarh district, an official said.
The commission was unlikely to hold public hearing due to shortage of time.
(Sourced from PTI)
PTI reported that the Centre appointed Shah Commission led by former Supreme Court judge Justice MB Shah has formally began investigation into illegal mining in Orissa.
The Commission held a discussion with the district authorities of Keonjhar and Sundergarh besides authorities of the railways, Indian Bureau of Mines and forest officials.
Collectors, superintendents of police, divisional forest officers, regional manager of the pollution control board and vigilance officer of the south eastern railways attended the meeting.
The commission members are scheduled to visit certain mines in Joda areas of Keonjhar district and Koida area in Sundergarh district, an official said.
The commission was unlikely to hold public hearing due to shortage of time.
(Sourced from PTI)
Tuesday, November 8, 2011
TDP chief denies favoring Bellary Barons
Tuesday, 08 Nov 2011
Telugu Desam Party leader and former Andhra chief minister Dr N Chandrababu Naidu on Saturday denied charges that he had favored Mr G Janardhan Reddy the former Karnataka minister, arrested by the CBI for illegal iron ore mining.
Mr Naidu told a gathering in Kurnool that ''I have no fear as I did no mistake. I informed the same to former chief minister YSR.”
The TDP chief accused the late YSR and his son of starting their newspaper and cement business allegedly with ill gotten funds.
According to Mr Naidu, YSR had filed 15 cases against him in the supreme court and the high court. He also set up 26 commissions of inquiry, but they failed to prove any charges against him.
Mr YS Jaganmohan Reddy the chief of the YSR Congress and son of Mr YS Rajasekhara Reddy, the former Andhra chief minister, who was killed in an air crash, had accused Mr Naidu of favoring the mining mafia in the state and had urged the CBI to probe his role in the scam.
Jaganmohan Reddy, who started his own political outfit after the Congress denied him the chief minister ship of the state after his father's death, was on Friday summoned by the CBI for questioning about his links to the mining mafia.
(sourced Domain-b.com & Equity Bulls)
Telugu Desam Party leader and former Andhra chief minister Dr N Chandrababu Naidu on Saturday denied charges that he had favored Mr G Janardhan Reddy the former Karnataka minister, arrested by the CBI for illegal iron ore mining.
Mr Naidu told a gathering in Kurnool that ''I have no fear as I did no mistake. I informed the same to former chief minister YSR.”
The TDP chief accused the late YSR and his son of starting their newspaper and cement business allegedly with ill gotten funds.
According to Mr Naidu, YSR had filed 15 cases against him in the supreme court and the high court. He also set up 26 commissions of inquiry, but they failed to prove any charges against him.
Mr YS Jaganmohan Reddy the chief of the YSR Congress and son of Mr YS Rajasekhara Reddy, the former Andhra chief minister, who was killed in an air crash, had accused Mr Naidu of favoring the mining mafia in the state and had urged the CBI to probe his role in the scam.
Jaganmohan Reddy, who started his own political outfit after the Congress denied him the chief minister ship of the state after his father's death, was on Friday summoned by the CBI for questioning about his links to the mining mafia.
(sourced Domain-b.com & Equity Bulls)
Monday, October 31, 2011
Andhra Pradesh’s home minister in CBI net over illegal mining
Oct31, 2011 | Agency: DNA
Hyderabad :In an effort to step up the investigation into the illegal iron-ore mining by jailed mining baron Gali Janardhana Reddy, the CBI has brought Andhra Pradesh’s home minister Sabitha Reddy under its scanner.
CBI officials questioned Reddy for two hours late on Friday. She was the mines minister from 2004 to 2009 during former chief minister YS Rajasekhara Reddy’s regime and is believed to be instrumental in offering several clearances to various mines companies, including that of Janardhana Reddy.
Obulapuram Mining Company (OMC), owned by Janardhana Reddy, was granted mining leases during YSR’s regime and several files pertaining to the leases were endorsed by Sabitha Reddy. Interestingly, the former mines minister’s questioning follows a grilling of the then mines secretary Sri Lakshmi.
In fact, Sri Lakshmi and the then director of mines, Rajagopal, have been under the CBI scanner and the duo was questioned by the CBI several times.Sri Lakshmi was called for yet another round of questioning by the officials on Friday, followed by Sabitha Reddy’s questioning. However, sources rule out any direct relation between the questioning of the duo.
One key aspect the CBI is looking at is the way the permissions for mining were accorded to Janardhana Reddy’s company. Sources said the CBI has found several interesting aspects in the way the files were cleared. Various approvals for OMC were given by the government and the files were cleared by Sabitha Reddy’s office the same day.
“About six mining leases were cleared on a single day and that is unusual since mining lease is a complicated issue,” the source said. The CBI has already questioned people at various levels starting from the sarpanch of the village where the mines are located to the minister now.
The CBI team has also recently visited Krishnapatnam port, one of the major private sector ports in the country. The port, located in Nellore, was used by Janardhana Reddy to export iron ore. CBI officials are believed to have collected several documents to support their case against him.
Reddy and his brother-in-law, BV Srinivas Reddy, are accused of having indulged in illegal mining and exporting iron ore mined in various places in Karnataka and Andhra Pradesh by using OMC’s invoices.
The duo is currently lodged in the Chanchalguda central prison in Hyderabad. The CBI is said to be ready with the content required for the chargesheet and is expected to file the document within the stipulated timeframe.
Hyderabad :In an effort to step up the investigation into the illegal iron-ore mining by jailed mining baron Gali Janardhana Reddy, the CBI has brought Andhra Pradesh’s home minister Sabitha Reddy under its scanner.
CBI officials questioned Reddy for two hours late on Friday. She was the mines minister from 2004 to 2009 during former chief minister YS Rajasekhara Reddy’s regime and is believed to be instrumental in offering several clearances to various mines companies, including that of Janardhana Reddy.
Obulapuram Mining Company (OMC), owned by Janardhana Reddy, was granted mining leases during YSR’s regime and several files pertaining to the leases were endorsed by Sabitha Reddy. Interestingly, the former mines minister’s questioning follows a grilling of the then mines secretary Sri Lakshmi.
In fact, Sri Lakshmi and the then director of mines, Rajagopal, have been under the CBI scanner and the duo was questioned by the CBI several times.Sri Lakshmi was called for yet another round of questioning by the officials on Friday, followed by Sabitha Reddy’s questioning. However, sources rule out any direct relation between the questioning of the duo.
One key aspect the CBI is looking at is the way the permissions for mining were accorded to Janardhana Reddy’s company. Sources said the CBI has found several interesting aspects in the way the files were cleared. Various approvals for OMC were given by the government and the files were cleared by Sabitha Reddy’s office the same day.
“About six mining leases were cleared on a single day and that is unusual since mining lease is a complicated issue,” the source said. The CBI has already questioned people at various levels starting from the sarpanch of the village where the mines are located to the minister now.
The CBI team has also recently visited Krishnapatnam port, one of the major private sector ports in the country. The port, located in Nellore, was used by Janardhana Reddy to export iron ore. CBI officials are believed to have collected several documents to support their case against him.
Reddy and his brother-in-law, BV Srinivas Reddy, are accused of having indulged in illegal mining and exporting iron ore mined in various places in Karnataka and Andhra Pradesh by using OMC’s invoices.
The duo is currently lodged in the Chanchalguda central prison in Hyderabad. The CBI is said to be ready with the content required for the chargesheet and is expected to file the document within the stipulated timeframe.
Irregularities at Krishnapatnam Port
Monday, 31 Oct 2011
The New Indian Express reported that the CBI team that investigated iron ore exports by the Obulapuram Mining Company owned by Mr 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 tonnes to 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 is complete and a charge sheet would be filed in a day or two.
It is learnt that the CBI found that 4.2 million tonnes of ore was exported from the port by 80 companies since 2007 but only 1.4 million tonnes was recorded.
It seized some crucial documents during its visit to the customs office after questioning its assistant commissioner Mr K Ranga Rao.
Not satisfied with the answers given by the port authorities, the CBI has issued notices seeking a written reply.
(sourced from IndianExpress)
The New Indian Express reported that the CBI team that investigated iron ore exports by the Obulapuram Mining Company owned by Mr 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 tonnes to 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 is complete and a charge sheet would be filed in a day or two.
It is learnt that the CBI found that 4.2 million tonnes of ore was exported from the port by 80 companies since 2007 but only 1.4 million tonnes was recorded.
It seized some crucial documents during its visit to the customs office after questioning its assistant commissioner Mr K Ranga Rao.
Not satisfied with the answers given by the port authorities, the CBI has issued notices seeking a written reply.
(sourced from IndianExpress)
Thursday, October 27, 2011
CBI focuses on iron ore exports by J Reddy
Hyderabad, October 27, 2011
The Central Bureau of Investigation (CBI), probing illegal mining by former Karnataka minister Gali Janardhana Reddy, is now focusing its attention on the export of iron ore by the mining baron.
A team of CBI officials led by Joint Director VV Lakshminarayana Thursday reached Nellore
district and began the probe at Krishnapatnam port, from where the maximum quantity of iron ore was exported by Obulapuram Mining Company (OMC) owned by Janardhana Reddy.
"Iron ore was exported from various ports and the maximum percentage was from Krishnapatnam port. We want to know how much was exported from here and what procedures the port authorities followed," Lakshminarayana told reporters.
The Central Bureau of Investigation (CBI), probing illegal mining by former Karnataka minister Gali Janardhana Reddy, is now focusing its attention on the export of iron ore by the mining baron.
A team of CBI officials led by Joint Director VV Lakshminarayana Thursday reached Nellore
district and began the probe at Krishnapatnam port, from where the maximum quantity of iron ore was exported by Obulapuram Mining Company (OMC) owned by Janardhana Reddy.
"Iron ore was exported from various ports and the maximum percentage was from Krishnapatnam port. We want to know how much was exported from here and what procedures the port authorities followed," Lakshminarayana told reporters.
The federal agency will also gather information from customs officials with regard to exports from the private port.
"The port authorities had already sent some documents to us. We have examined them and have come here as part of the investigations," he said.
According to the Karnataka Lokayukta report, the maximum export of illegal iron ore took place from Krishnapatnam port. Out of the total iron ore exports of 3,31,04,866 tonnes from seven ports since 2006-07, Krishnapatnam accounted for 1,11,70,994 tonnes.
Lakshminarayana, who is also leading the investigations into alleged illegal assets of MP Y.S. Jaganmohan Reddy, said their main concentration was on illegal mining as the arrests had been made in the case and "we have to soon file the charge sheet".
Janardhana Reddy and his brother-in-law and OMC managing director B.V. Srinivasa Reddy are currently lodged in Chanchalguda Central Jail here.
The CBI arrested the duo from Bellary in Karnataka Sep 5 in connection with illegal mining in Andhra Pradesh's Anantapur district bordering Karnataka. The probe was ordered by the Andhra Pradesh government in 2009.
The Supreme Court last month ordered the CBI probe into illegal mining in Karnataka.
(sourced Hindustan Times)
Monday, August 29, 2011
Report exposes ILC Industries role
Monday, 29 Aug 2011
DHNS reported that Lokayukta investigation into illegal mining has exposed illegal activities of Bangalore based iron ore export firm, ILC Industries Ltd, which exported illegally extracted ore worth about INR 1,300 crore in four years.
According to the U V Singh report, of which Deccan Herald got a copy under the Right to Information Act on Saturday, ILC exported about 4,330,200 tonnes of iron ore between 2006 and July 2010. Of this, only 1,161,014 tonnes had valid permits. The rest 3,169,186 tonnes are illegal and their approximate value is a whopping INR 1,300 crore.
Obulapuram Mining Company owned by the Bellary Reddy brothers Mr Janardhana Reddy and Mr Karunakara Reddy and their associate Mr Sriramulu, is one of the 21 companies that supplied illegally extracted iron ore to ILC. About 70% of the company's exports are from Krishnapatnam (50%) and Belekeri ports (20%).
The company was also found to have paid about INR 10 crore as risk amount (the code name for bribe to ensure safe transportation to the destination) to the key operators of the mining mafia - Karapudi Mahesh, Swastik Nagaraj and Dada Peer.
The company had transported about 640,517 tonnes of illegal iron ore to Belekeri port alone between October 2009 and May 2010. Of this, 309,963 tonnes were found to have been transported from SB Minerals, Trident Minerals and Shanthalakshmi Jayaram Mines, the report stated and added that the source of the remaining quantity needs to be investigated. It was during this period, theft of large quantity of iron ore at Belekeri port was reported.
The investigation team, which had seized some documents from the company during the probe, has come across a spreadsheet that showed "commitments and movements" (a schedule of illegal ore to be supplied by mining companies to ILC and their mode of transportation)
Firms having link with ILC
Ananthpur Mining Corporation
Obulapuram Mining Company
Bachhawat Enterprise Pvt Ltd
BBM Ispat Ltd
Dream Logistic India Pvt Ltd
Shree Lakshmi Venkateshwara Minerals
Shree Mallikarjun Shipping Pvt Ltd
Shree Ganesh Minerals
SVK Minerals
Swastik Steel
Tessar Trading Corporation
Madhusree Enterprises
Swastik Steel Hospet Pvt Ltd
SB Logistics
Devi Enterprises
Shafia Minerals
Lakshmi Aruna Minerals
Sree Jambinathaneshwara
Siddeshwara Traders
Vyshnavi Minerals
Daksh Minerals
(Sourced from DHNS)
DHNS reported that Lokayukta investigation into illegal mining has exposed illegal activities of Bangalore based iron ore export firm, ILC Industries Ltd, which exported illegally extracted ore worth about INR 1,300 crore in four years.
According to the U V Singh report, of which Deccan Herald got a copy under the Right to Information Act on Saturday, ILC exported about 4,330,200 tonnes of iron ore between 2006 and July 2010. Of this, only 1,161,014 tonnes had valid permits. The rest 3,169,186 tonnes are illegal and their approximate value is a whopping INR 1,300 crore.
Obulapuram Mining Company owned by the Bellary Reddy brothers Mr Janardhana Reddy and Mr Karunakara Reddy and their associate Mr Sriramulu, is one of the 21 companies that supplied illegally extracted iron ore to ILC. About 70% of the company's exports are from Krishnapatnam (50%) and Belekeri ports (20%).
The company was also found to have paid about INR 10 crore as risk amount (the code name for bribe to ensure safe transportation to the destination) to the key operators of the mining mafia - Karapudi Mahesh, Swastik Nagaraj and Dada Peer.
The company had transported about 640,517 tonnes of illegal iron ore to Belekeri port alone between October 2009 and May 2010. Of this, 309,963 tonnes were found to have been transported from SB Minerals, Trident Minerals and Shanthalakshmi Jayaram Mines, the report stated and added that the source of the remaining quantity needs to be investigated. It was during this period, theft of large quantity of iron ore at Belekeri port was reported.
The investigation team, which had seized some documents from the company during the probe, has come across a spreadsheet that showed "commitments and movements" (a schedule of illegal ore to be supplied by mining companies to ILC and their mode of transportation)
Firms having link with ILC
Ananthpur Mining Corporation
Obulapuram Mining Company
Bachhawat Enterprise Pvt Ltd
BBM Ispat Ltd
Dream Logistic India Pvt Ltd
Shree Lakshmi Venkateshwara Minerals
Shree Mallikarjun Shipping Pvt Ltd
Shree Ganesh Minerals
SVK Minerals
Swastik Steel
Tessar Trading Corporation
Madhusree Enterprises
Swastik Steel Hospet Pvt Ltd
SB Logistics
Devi Enterprises
Shafia Minerals
Lakshmi Aruna Minerals
Sree Jambinathaneshwara
Siddeshwara Traders
Vyshnavi Minerals
Daksh Minerals
(Sourced from DHNS)
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
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
Wednesday, August 3, 2011
TATA Metaliks may close Goa plant
Wednesday, 03 Aug 2011 | By PTI
PTI reported that as a direct fall out of the iron ore mining scam in Karnataka, pig iron manufacturer TATA Metaliks Limited might have to close down its Goa plant in a week.
Mr Harsh Jha MD of TATA Metaliks a subsidiary of TATA Steel told PTI that "The iron ore supplies to the Goa plant are halted due to the Supreme Court ban on mining in Karnataka. We may have to close down the plant in a week.”
Mr Jha said the Goa plant depended on iron ore supplies from the Bellary Hospet belt in Karnataka.
He added that "Closure of the Goa plant will entail a huge revenue loss for the company.”
He said the Goa plant was contributing INR 500 crore out of TATA Metaliks' annual revenue of around INR 1,300 crore.
The Goa plant has a capacity of 200,000 tonne per annum.
The company was also in the process of acquiring 1,900 acre in Karnataka for its 3 million tonne steel plant. Mr Jha said the company was in the process of obtaining consent of the people for acquiring 75% and the balance would be acquired by the Karnataka government.
Mr Harsh Jha MD of TATA Metaliks a subsidiary of TATA Steel told PTI that "The iron ore supplies to the Goa plant are halted due to the Supreme Court ban on mining in Karnataka. We may have to close down the plant in a week.”
Mr Jha said the Goa plant depended on iron ore supplies from the Bellary Hospet belt in Karnataka.
He added that "Closure of the Goa plant will entail a huge revenue loss for the company.”
He said the Goa plant was contributing INR 500 crore out of TATA Metaliks' annual revenue of around INR 1,300 crore.
The Goa plant has a capacity of 200,000 tonne per annum.
The company was also in the process of acquiring 1,900 acre in Karnataka for its 3 million tonne steel plant. Mr Jha said the company was in the process of obtaining consent of the people for acquiring 75% and the balance would be acquired by the Karnataka government.
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.
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.
Monday, March 21, 2011
Tax returns expose Rs. 600-cr. illegal iron ore transactions
57 lakh tonnes of ore purchased from unlicensed dealers
Monday, March21, 2011
Bangalore: The Department of Mines and Geology has initiated proceedings to recover Rs. 600 crore from iron ore exporters for buying a staggering 57 lakh tonnes of ore from unlicensed dealers since 2003-04.
According to sources in Hospet, the scam came to light when the Department of Mines and Geology tapped the offices of the Commercial Taxes Department and verified records. It was found that several dealers in Bellary (22), Hospet (120), Chitradurga (10) and Koppal (1) had purchased large quantities of ore from unlicensed traders. The unlicensed traders had illegally purchased ore from mining companies and passed it on to licensed traders who in turn had exported it.
The transactions would have gone undetected but for the monthly returns (FORM VAT 100) filed by the licensed traders. This showed that the registered dealers were buying large quantities of iron ore from unregistered dealers (URDs). The Department of Mines and Geology has started the process of recovering the losses by issuing notices to the dealers that made the illegal purchases. The notices state that the transaction is a clear violation of Section 4 and 21 of the Mines and Minerals (Development and Regulation) Act, 1957.
Records show that the value of purchase from URDs is immense: over 1/6th of the total illegal exports from Karnataka (57 lakh tonnes out of 3 crore tonnes) .
In Bellary taluk alone, it is to the tune of Rs. 108.78 crore for the year 2009-10 through 22 dealers. In Hospet, 120 dealers purchased ore from URDs to the tune of Rs. 449.93 crore for five years from 2005-06 to 2009-10. While 10 dealers in Chitradurga acquired Rs. 11.47 crore worth ore illegally between 2005-2006 to 2007-08, one dealer in Koppal purchased Rs. 5.50 lakh worth ore from URDs between 2005 and 2009. The ore was transported to the Krishnapattanam Port in Andhra Pradesh and the companies continued to transport and export ore from this port. It should be noted that the State Government has also imposed a ban on export of iron ore from the sea ports in its jurisdiction.
Verification
Interestingly, the registered dealers made the declaration in the monthly returns with an eye on the 4 per cent tax rebate on exports.
While this illegal practice has been going on from 2003, it came to light only after an inter-departmental verification between the Mines and Geology and the Commercial Taxes departments.
This in-depth inquiry itself is a fall-out of Chief Minister B.S. Yeddyurappa admitting in the Legislature that more than 3 crore tonnes of iron ore had been illegally exported out of Karnataka.
The Lokayukta has also filed an interim report on illegal mining. (sourced:The Hindu)
Tags : Department of Mines and Geology, illegal mining, steelmakers, raw material
According to sources in Hospet, the scam came to light when the Department of Mines and Geology tapped the offices of the Commercial Taxes Department and verified records. It was found that several dealers in Bellary (22), Hospet (120), Chitradurga (10) and Koppal (1) had purchased large quantities of ore from unlicensed traders. The unlicensed traders had illegally purchased ore from mining companies and passed it on to licensed traders who in turn had exported it.
The transactions would have gone undetected but for the monthly returns (FORM VAT 100) filed by the licensed traders. This showed that the registered dealers were buying large quantities of iron ore from unregistered dealers (URDs). The Department of Mines and Geology has started the process of recovering the losses by issuing notices to the dealers that made the illegal purchases. The notices state that the transaction is a clear violation of Section 4 and 21 of the Mines and Minerals (Development and Regulation) Act, 1957.
Records show that the value of purchase from URDs is immense: over 1/6th of the total illegal exports from Karnataka (57 lakh tonnes out of 3 crore tonnes) .
In Bellary taluk alone, it is to the tune of Rs. 108.78 crore for the year 2009-10 through 22 dealers. In Hospet, 120 dealers purchased ore from URDs to the tune of Rs. 449.93 crore for five years from 2005-06 to 2009-10. While 10 dealers in Chitradurga acquired Rs. 11.47 crore worth ore illegally between 2005-2006 to 2007-08, one dealer in Koppal purchased Rs. 5.50 lakh worth ore from URDs between 2005 and 2009. The ore was transported to the Krishnapattanam Port in Andhra Pradesh and the companies continued to transport and export ore from this port. It should be noted that the State Government has also imposed a ban on export of iron ore from the sea ports in its jurisdiction.
Verification
Interestingly, the registered dealers made the declaration in the monthly returns with an eye on the 4 per cent tax rebate on exports.
While this illegal practice has been going on from 2003, it came to light only after an inter-departmental verification between the Mines and Geology and the Commercial Taxes departments.
This in-depth inquiry itself is a fall-out of Chief Minister B.S. Yeddyurappa admitting in the Legislature that more than 3 crore tonnes of iron ore had been illegally exported out of Karnataka.
The Lokayukta has also filed an interim report on illegal mining. (sourced:The Hindu)
Tags : Department of Mines and Geology, illegal mining, steelmakers, raw material
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