^^
Bhai congress ko power ki bhuk hai khaana peena to unhe power main aane ke baad bhi milsakta hai...:nuts:

congress ko nahin sab ko hain bhai ;)

but there will be pressure from corporates then the center will allot the mines
fikar not :cheers:

congress ko nahin sab ko hain bhai ;)

but there will be pressure from corporates then the center will allot the mines
fikar not :cheers:

But is waqt congress ko hai...kabhi kisi aur ko hogi...and i'm sure that mines will be alloted....

Miners hope for SC breather on iron ore export ban

Dilip Kumar Jha / Mumbai December 16, 2010, 0:53 IST

Iron ore miners in Karnataka, the country’s richest mineral state, hope to get a breather tomorrow from the ban on iron ore which hampered mining activities in the state severely.

The petition filed by the mining major Baldota family promoted - MSPL on the state government’s jurisdiction over ban on iron ore exports is scheduled for hearing in the Supreme Court on Thursday.

The Karnataka High Court had upheld the state government’s decision on November 20. A division bench of the high court, headed by Chief Justice J S Khehar and S Abdul Nazeer earlier upheld the state government’s twin orders of July 26 and 28, prohibiting export of iron ore from 10 ports across the state and stopping issue of mineral dispatch permits for transporting iron ore meant for exports.

“The state government, irresponsibly, banned exports of mineral which is not used by steel mills in the state at all. Since, minerals like iron ore cannot be stockpiled for long due to environmental hazards, the proposed ban, if continues, will stop mining activities in the state completely,” said D V Pichamuthu, director, Federation of Indian Mineral Industries (Fimi), South. “We are confident of getting a relief from the apex court.”

Meanwhile, nearly 40 miners in the state with an overall capacity of 38-40 million tonnes have halted mining of iron ore completely. Barring the state-owned Mysore Minerals Ltd (MML) which signed a long-term agreement with Jindal Steel for iron ore supply, no other mining unit is operational. Some small mines operating with 15-20 per cent of their annual capacity, supply the steelmaking raw material to small steel mills like the one Kalyani Steels.

A MSPL official said that local steel mills are not buying iron ore from state miners due to logistics issues. Transportation system worsened in the state resulting into huge stockpiling of iron ore.

A separate petition filed on the same by Vedanta Resources - controlled Sesa Goa will come for hearing later.

The major aim for the government is to stop illegal mining in the state which contributes significantly to the overall mineral production. But, by ban on iron ore, the state has curbed legal mining also, said R K Sharma, secretary general of Fimi.

The state government, however, had assured the government to come out with a proper system to curb illegal mining within six months expiring January 20, 2011. Miners are awaiting the state government’s formal system which may re-open exports and thereupon, mining activities also.

Meanwhile, rising iron ore prices have also irked miners in the state. Prices of imported iron ore with 63.5 per cent iron content in China, India’s leading buyer of steelmaking raw material, surged to $175 a tonne on Wednesday, the highest since May this year. The contract for delivery in January, cleared by the Singapore Exchange, rose $1.62 to $172.12 a tonne and the February contract climbed $1.38 to $171 a tonne.

China maintained imports equivalent to its 70 per cent of annual consumption from Brazil and Australia. India supplies nearly 15 per cent. But, the country has also increased domestic production to reduce dependence on imported iron ore. Now, Brazil and Australia contribute 60 per cent of China’s overall iron ore consumption of nearly 750 million tonnes.

Business Standard (http://www.business-standard.com/india/news/miners-hope-for-sc-breatheriron-ore-export-ban/418403/)

I hope exports are banned.

We need to learn from China :bow:

POSCO gets Mecon as consultant for steel project in Karnataka
Saturday, 15 Jan 2011


For POSCO is yet to take a decision on where in Karnataka it wants to set up its plant.

A senior industries department official said that “They’ve done some trips to the sites but no decision has been made by them.”

Speaking to Deccan Herald Industries Department Principal Secretary Mr VP Baligar said that “They have recently appointed Mecon Limited as their consultant who will prepare a report for them and we are positive.”

POSCO has visited Bagalkot, where it initially wanted to set up its plant, Koppal and Gadag all in vain. Baligar said that POSCO wants to balance between the water and mineral supply before finalizing the site and that is causing the delay.

The INR 32,336 crore memorandum of understanding that the State signed with South Korean steel giant POSCO is far from being converted into a real project even after over 18 months of signing it.

(Sourced from DHNS) (http://www.steelguru.com/indian_news/POSCO_gets_Mecon_as_consultant_for_steel_project_in_Karnataka/186284.html)

The details of the existing and proposed steel projects of Steel PSUs in the state of Karnataka are given below:

(i) Visvesvaraya Iron and Steel Plant (VISP), Bhadravati of SAIL has already implemented a 1,25,000 tonne annual capacity Bloom Caster in Steel Melting Shop (SMS) in October, 2009 at an investment of around Rs.77 crore.

(ii) NMDC Ltd. is planning to set up a 5 MTPA capacity integrated steel plant in the district Bellary, Karnataka in two phases.

(iii) KIOCL Ltd. proposes to set up a 1.5 MTPA capacity integrated steel plant in the state of Karnataka on Joint Venture basis.

So far, NMDC Ltd. has spent about Rs. 5.2 lakh towards the project of 5 MTPA capacity integrated steel plant in the district Bellary, Karnataka.


http://pib.nic.in/release/release.asp?relid=69321

BIJAPUR: Korean steel major Posco is in talks with Karnataka to set up a 6-million tonnes per annum plant at an estimated investment of Rs 32,000 crore, after plans for a unit in Orissa got stalled over environmental issues, State Industries Minister Murugesh Nirani said today.

The firm has identified three potential sites -- at Gadag, Bijapur and Bagalkot -- for the project, he told reporters here today.

The firm has already deposited Rs 60 crore with the Karnataka Industrial Area Development Board (KIADB) for acquisition of the land required for the project, he said.

He said there was no opposition from farmers over acquisition of their land for industrial purposes.

On an unrelated note, Nirani said the district will soon get a government-sponsored Tools and Training Centre , for which Rs 5 crore has been earmarked.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/posco-looking-to-set-up-steel-plant-in-karnataka/articleshow/7368084.cms)

Supreme Court: Iron ore transportation ban can't be forever (http://timesofindia.indiatimes.com/city/bangalore/Supreme-Court-iron-ore-transportation-ban-cant-be-forever/articleshow/7330142.cms)
Karnataka iron ore export ban likely to go (http://www.livemint.com/2011/01/20142841/Karnataka-iron-ore-export-ban.html)
Frame rules or allow ore exports: Supreme Court (http://expressbuzz.com/states/karnataka/frame-rules-or-allow-ore-exports-supreme-court/241295.html)

I have read some trivial arguments on media by some people giving reasons for lifting ban on iron ore export like import-export balance needed for importing coal for steel industries.

I do not think exporting low grade iron is the only way to achieve import-export balance. There are other ways like exporting value added iron ore and steel to achieve the same.

My suggestion is to

Nationalization of mining business for export. Export of iron ore only by public sector companies.
Private sector steel companies can extract iron ore only if they use extracted ore within the country for manufacturing steel or any other product. They can export only end products like steel.
No private company can have mining license without a steel plant or any other value addition before export.

The reason being mining business needs less investment which public sector companies can manage easily. On the other hand I feel sectors like railways can be privatized.

Of course, we need to have enough iron and steel left within the country for sustainance of our steel industry so that we do not end up importing iron ore in future.

Mineral Enterprises to set up steel plants

Staff Correspondent

Bhimasamudra (Chitradurga district): Mineral Enterprises Limited, a 50-year-old mining company, has decided to set up a steel plant each in Chitradurga and Hassan districts to promote steel industry.

Basant Poddar, managing director of the company, told presspersons here on Friday that the company had started land acquisition and it would be completed in six months.

Mr. Poddar said that the company needs at least 150 acres of land in Chitradurga and 400 acres in Hassan for the steel plants.

He said that while the company would spend around Rs. 200 crore in Chitradurga, Rs. 1,000 crore would be spent to set up the plant in Hassan.

“We are hoping to complete the projects in two years after land acquisition,” Mr. Poddar said. The mining company, which has given employment to 300 persons at Bhimasamudra village, is expected to offer jobs to nearly 500 people in the steel plants. Mr. Poddar said that the steel plants would use high-grade iron ore to manufacture iron while low-grade ore would be transported to foreign countries if the State Government lifts the ban on export. The company used to export 1.5 million tonnes of ore a year to China, Mr. Poddar said and added that it has now been stopped in the past six months.

The Hindu (http://www.hindu.com/2011/01/29/stories/2011012951150300.htm)

A very great initiative by the company to lay a track for its intended purpose.

Committee inspects site allotted for steel plant

Staff Correspondent

It's adjacent to the Daroji Sloth Bear Sanctuary

The sanctuary is the largest and the only one in Asia

More than 120 sloth bears are found in the region
http://www.hindu.com/2011/01/26/images/2011012660560301.jpg

INSPECTION:Anil Kumble (second from left), Chairman of the subcommittee of the State Wildlife Baord, surveying the Daroji Sloth Bear Sanctuary near Hampi on Tuesday.

BELLARY: Renowned cricketer Anil Kumble, who is also the Chairman of the subcommittee of the State Wildlife Board, along with other members and officials, on Tuesday inspected the area adjacent to the Daroji Sloth Bear Sanctuary where Bhushan Steels will be setting up a unit.

“I have come here to inspect the place where the steel plant is being set up. I will hold discussions with the officials concerned before arriving at a conclusion,” Mr. Kumble told presspersons at Kotaginahal village in Hospet taluk near the bear sanctuary.

Mr. Kumble, accompanied by Principal Chief Conservator of Forests (PCCF) B.K. Singh, Assistant PCCF Swaminathan and members of the committee Sanjay Gubbi and Girija Shankar, were shown the map of the area allotted to Bhushan Steels and the location of the sanctuary.

Around 5,000 acres of land adjacent to the bear sanctuary has been identified for the steel plant. The Daroji Sloth Bear Sanctuary is the largest and the only one in Asia. More than 120 sloth bears are found in the region, in addition to panthers, hyenas, jackals, wild boar, about 200 species of birds and 50 species of butterflies Nature-lovers suspect that the proposed steel plant might endanger the wildlife in the area. They have written to Union Minister of State for Environment Jairam Ramesh requesting him to take steps to protect the sanctuary. Mr. Singh said, “This is our first visit. We will have a detailed discussion on various aspects before forming an opinion on the project.”

The Hindu news (http://www.hindu.com/2011/01/26/stories/2011012660560300.htm)

@Krishnamoorthy
You have rightly listed out the points,steel and cement sectors are the primary ones which will transform a developing India into a developed one.Bellary accounts for 1/3 exports of iron ore from our country,no wonder many big steel mills are to come up in North Karnataka.Steel mills are important for industrialization,steel mills coming up in near Dharwad will aid the Auto sector in that region which boasts of world's largest bus manufacturing facility and with time we will see more of such projects.

NMDC-Severstal project in bellary will take off first with Arcellor Mittal following it.JSW Jindal expansion is underway in bellary.

I feel POSCO must settle for Bagalkote which has abundant water and is close to Karwar port.

Bushan steels @ bellary will require clearance from wild life board,of all the steel investments Bellary has hogged the highest I think?

JSW Steel renews focus on value added steel
Published: Friday, Jan 28, 2011, 4:06 IST
By Promit Mukherjee | Place: Mumbai | Agency: DNA

After a spate of acquisitions and joint ventures, Sajjan Jindal-controlled JSW Steel has renewed its focus on production of value added steel.

Now with Bellary Steel and Ispat deals sealed and backing of a strong technology partner in the form of Japanese steel giant JFE, the company is once again targeting an increased output of value added steel.

“Today, the board of directors have approved setting up of a 2 million tonne per annum (mtpa) cold rolling mill to increase the production of value added steel,” said Sheshagiri Rao, group chief financial officer, JSW Group. He was addressing a media conference to announce the company’s third quarter results on Thursday.

The company will be investing Rs4,025 crore to set up the mill at its Vijaynagar facility and is expected to be operational in two-and- a-half years. Out of the total amount, the debt component will be Rs2,675 crore and the remaining will be equity to be pumped in through internal cash accruals.

The debt would be tied-up in next six months, Rao said.

“Once the mill is ready, we will achieve our targeted output of 50% value added flat steel products by 2012-13,” said Jayant Acharya, director, commercial and marketing, JSW Steel.

Out of a total flat steel production of 8.3 mtpa. With the addition of the new mill, the company will have a total value added flat steel capacity of over 4 mtpa by 2012-13.

Owing to better margins and increasing demand, value added steel had been the company’s priority for quite some time now, especially with an eye on the boom in the automotive and consumer durables industry, two of the biggest consumers of value added steel. It is also used in the power sector as specialised steel for transformers etc.

Acharya said the current demand of value added steel in the country is close to 9 mtpa and is expected to be close to 12 mtpa by 2015. “We are looking at cornering a substantial share of this demand by 2015,” he said, adding that though it is difficult to quantify, margins in value added are always better than flat steel.

An analyst with a leading domestic brokerage firm said more and more companies are currently shifting towards value added steel as volatility in raw material prices are squeezing the margins of these companies. “With value added steel, you get a pretty high price as you go up the value chain from cold-rolled to galvanised to colour coated,” he said.

At every level of value addition, the price of the end product goes up by Rs2,000 to Rs4,000 per tonne, translating into better margins for the steel producers, he said.

For the quarter ended December 2010, JSW Steel posted standalone net sales of Rs5,771 crore, a jump of 26% as against Rs4,587.66 crore in the same period in 2009. However, its net profit dipped by 25.65% to Rs382.30 crore as compared to Rs514.23 crore it posted in the year-ago period.

DNA (http://www.dnaindia.com/money/report_jsw-steel-renews-focus-on-value-added-steel_1499872)

Value added Steel gets more addition :banana:

Posco plans to set up plant in Karnataka

BANGALORE: Just a day after the environment ministry granted conditional clearance to Posco for its $12-billion Orissa steel project , the South Korean steel major has reaffirmed its India plans with a second proposal.

Posco has selected Halligudi in Gadag district of Karnataka to build its proposed six million tonnes plant at an estimated investment of about 32,000 crore, according to V P Baligar, Karnataka principal secretary (commerce and industries).

Besides Posco, other firms that have plans to set up their steel mill in the state include ArcelorMittal, Bhushan Steel , Essar and NMDC .

Posco has sought 3,000 acres for setting up the plant and has already made the initial deposit with the Karnataka Industrial Development Board towards acquisition of land. The state government will now begin the land acquisition process, said Baligar.

Posco has already applied for a captive iron ore mining lease with the state government inviting bids for fresh licences.

Karnataka has been positive in encouraging steel companies to build their presence in the state. For companies that have already given indications of a plant, the government has assured companies of meeting at least 30-35% of their requirement for captive iron ore mining leases.

In the new mineral policy, the government has clearly stated that fresh mining leases will be given to those entities that are engaged in value addition.



3 Feb, 2011, 03.13AM IST,P P Thimmaya,ET Bureau (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/posco-plans-to-set-up-plant-in-karnataka/articleshow/7415514.cms)

The Supreme Court today allowed mining companies in Karnataka to export iron ore lying at major ports in the state. The government had banned iron ore exports for six months. Since the ban came to an end this month, the court allowed the pleas of the mining companies that they be allowed to export the ore.

Last year, the government had prohibited exports of the ore amid reports of widespread violation of mining laws by the companies, including MSPL Ltd, Sesa Goa Ltd and SB Minerals. Some of these companies said though they had not mined the ore illegally, they were losing crores of rupees because of the ban. They also said they were unable to meet commitments made to foreign companies, and this would have serious consequences for exporters as well as for the finances of the state.

The bench, comprising Justices R V Raveendran and A K Patnaik, allowed the companies to export the ore and stated that the authorities can meanwhile, make inventories of the goods.

The state government said it had prepared a new notification for public comments and this would be notified very soon. It added that the extent of illegal mining was baffling and that Lok Ayukta reports pointed out this problem. The notification was meant to tackle the menace, it said.

Exporters, however, said the notification would be delayed and the ore would be eroded by rains and wind. They also said that the government had violated its undertaking to the Karnataka High Court to settle the disputes out of court and issue a notification after discussion with them. Instead, the government had brought about a new set of prohibitions. “This amounts to harassment,” K K Venugopal, the counsel for the miners, said.

The court asked the government to issue the notification regulating the transport and storage of iron ore by March 31. Currently, 68,000 metric tonnes of iron ore is estimated to be lying at major ports. The court will take up the main case on April 4. In November 2010, the high court upheld the state government's July 2010 order imposing a blanket prohibition on the issuance of mineral dispatch permits for transportation of iron ore for exports. The companies had appealed against the high court decision.

Miners expect ban to be lifted by March-end

The verdict has given some hope to miners who see a possibility of the ban being lifting by the end of March.

“The Supreme Court verdict is an interim relief to miners whose stocks were dumped at ports. It is an indication that there is a possibility of lifting the ban on ore by end of March. This is just a matter of time,” said Rahul Baldota, executive director of Karnataka-based MSPL Ltd. He said the Karnataka government was expected to come up with a set of rules governing transport and export of ore in the state.

A industry source, seeking anonymity, said it seemed the state government was buying time in this case before lifting the ban. “You can't penalise the industry for wrongdoings of some people in the industry,” he said.

The state government had imposed ban on iron ore export last year amid report of widespread violation of mining laws. This was challenged by the miners in the high court which upheld the state government ban. Subsequently, the case was contested in the Supreme Court and the apex court has directed the state to come up with new rules to check illegal mining.

“Karnataka has circulated the draft notification for checking illegal mining in the recent time and miners are fine with the new rules,” said Baldota.

Referring to this matter, R K Sharma, secretary general of Federation of Indian Mineral Industries (FIMI) said, “The state government should give better governance in order to check any illegal mining than issue a blanket ban which hurts the industry as a whole.”

Business Standard (http://www.business-standard.com/india/news/sc-allows-karnataka-mining-firms-to-export-ore-at-ports/424933/)

Infact the state and the nation is losing lakhs of crores by allowing private mining.

ArcelorMittal may finally start its first Indian greenfield project at Bellary in Karnataka

February 14, 2011 05:40 PM | Sharad Matade

Karnataka has acquired around 800 acres of land near Bellary, out of the required 4,000 acres for ArcelorMittal’s project—for which the steelmaker has already deposited Rs300 crore. The State government expects to procure the rest of the land over the next four to five months

Finally, the world's largest steelmaker, ArcelorMittal's dream plan of setting up a greenfield project in India, has started materialising, as Karnataka has begun acquiring land for the project.

"The State government has acquired around 800 acres for the project so far, and the rest of the land will be acquired over the next four to five months," a highly-placed source in the Karnataka government, who is familiar with the development, told Moneylife, preferring anonymity.

This information (of the State acquiring land) was confirmed by Mr Satish (who goes by only one name), who is joint director, Karnataka Udyog Mitra, the Government of Karnataka organisation which promotes and facilitate investments, and assists investors. He told Moneylife, "The land acquisition is in progress."

The company requires around 4,000 acres for its proposed six-million-tonnes-a-year integrated steel plant and a 750-MW captive power plant. ArcelorMittal plans to invest around Rs30,000 crore for the project.

Last month, BS Yeddyurappa, chief minister, Karnataka, offered two sites for ArcelorMittal's proposed project. Now Bellary has been selected, according to information received by Moneylife.

"We have started acquiring land at Bellary. Notifications and other initial processes have been completed and compensations are being paid to farmers and landowners," said Mr Satish.

"The company has deposited around Rs300 crore for the land acquisition," he added.

After several failed attempts to set up integrated projects in Orissa and Jharkhand, the LN Mittal-controlled company choose Karnataka, which possesses rich iron ore deposits, to set up its plant.

"The construction work will start once the land-acquisition process is completed," added the government source.

The company had plans to set up two 6 million tonnes per annum steel plants in both Orissa and Jharkhand-with an investment of Rs1,000 billion-to tap surging demand, mainly from the auto and construction sectors, for steel in India, one of the fastest growing economies in the world. However, ArcelorMittal's plans could not be executed as landowners refused to surrender their lands for the projects in both Orissa and Jharkhand.

In fact, most steelmakers' plans to set up greenfield projects in Orissa and Jharkhand have remained unfulfilled, due to stiff opposition from locals and environment clearances.

Korean major POSCO will also set up its second integrated steel plant in Karnataka and it has already identified the location.

"POSCO has chosen Halligudi in Gadag district and till today (it has) deposited Rs60 crore," Mr Satish told Moneylife.

The South Korean steel major will acquire 3,000 acres of land and will invest around Rs30,000 crore for the six-million-tonnes-a-year plant.

Recently, the Korean major had received a green signal from the MoEF to build a 12-million-tonne-a-year steel plant in Orissa.

Industry experts feel that the participation of the global steel companies is actively needed to achieve the country's target of producing 120 million tonnes of steel per annum by the end of 2012. According to the World Steel Association, whose members produce around 85% of the world's steel, India produced 66.8 million tonnes in the last year. Indian steelmakers expect that the country's steel demand will rise by 9% to 10% in the coming years.

Moneylife (http://www.moneylife.in/article/arcelormittal-may-finally-start-its-first-indian-greenfield-project-at-bellary-in-karnataka/13922.html)

NMDC to start construction of its Karnataka plant in 2012

New Delhi, Feb 15 (PTI) The country''s top iron ore miner NMDC today said it expects to start construction work on its 2 million tonnes (MT) steel plant in Karnataka, in JV with Russia''s Severstal, by 2012.
"We are in the process of acquiring 2,500 acres of land for the project and have deposited initial Rs 55 crore with the Karnataka government for it. We expect to start construction by 2012," National Mineral Development Corporation (NMDC) Chairman Rana Som said here.
Som said the steel plant is likely to go on stream by 2016. In December last year, NMDC had inked a pact with Russia''s leading steel maker OJSC Severstal to jointly set up a steel plant with an initial capacity of 2 MT, expandable to 5 MT later at an estimated cost of Rs 25,000 crore.
The 50:50 joint venture will have a captive coking coal mining unit in Russia and an iron ore mining unit in India to ensure the regular flow of raw material.
The Karnataka plant will be NMDC''s second in India. It has already started work on its 3 MTPA project in Chhattisgarh entailing an investment of about Rs 15,000 crore.
"The Chhattisgarh plant is likely to be completed by 2014," Som said.
At present, the Navratna firm has the production capacity of about 30 MT iron ore per annum from 3 fully mechanised mines in Chhattisgarh and Karnataka.
On production front, Som said the company expects its production to rise 25 per cent to 30 MT in 2011-12 against the expected 24 MT production this fiscal.
"We expect higher output as evacuation has improved after clearance of a part of the inventory," Som said.
NMDC had slowed production in the current fiscal as its inventory piled up after Maoists rebels had blown up its pipeline in Chhattisgarh to supply ore to Vishakhapatnam in 2009.
He said the company is likely to export about 2.5 MT of ore to Japan and South Korean steel makers this fiscal besides considering stepping up supply to China to take advantage of rising iron ore prices in the global market.
However, he said the present prices of iron ore are "an outcome of certain temporary factors like floods in Australia etc and should not be taken as basis for future prices."
The iron ore lump prices stand at about USD 150 a tonne while for fines it is USD 140 a tonne, he said.
On renewal of agreement with Japan and South Korean steel makers he said, the government is examining it as the agreement would lapse on March 31 this year.

msn.com (http://news.in.msn.com/business/article.aspx?cp-documentid=4924757)

NMDC to set up Rs 150-cr plant in Karnataka

Press Trust of India / Hyderabad February 24, 2011, 14:48 IST

State-run miner NMDC will be setting up a 300,000-tonne capacity plant to make iron ore concentrate from iron ore waste with an investment of Rs 150 crore in Karnataka, a top executive of the PSU said today.

The mining major has reserves to the extent of 12 million tonne of iron ore waste from which iron can be extracted further. The waste has been generated over a period from regular mining, NMDC Chairman and Managing Director Rana Som said here.

"We have evolved certain processing mechanism in our R&D centre whereby we are in a position to extract a certain percentage of iron from them (waste). We are spending Rs 150 crore for a 300,000 tonne per annum plant in Donimalai (Karnataka) where the waste are available," he said.
Som was speaking on the sidelines of a workshop organised by Mining, Geological and Metallurgical Institute of India.

"With our new mechanism, we will be able to start high grade iron ore concentrate production from which iron pellets can be manufactured in 24 to 30 months."

To a question, he said they were awaiting a reply from the Coal Ministry for setting up coal-to-liquid project in West Bengal. Steel Ministry is also keen on the project.

"This is a huge opportunity, but we have not yet received the final nod from the Coal Ministry. Not only NMDC, even Steel Ministry is approaching the Coal Ministry for approval as fast as possible. I believe the initial investment will be Rs 1,000 crore for the entire project," Som said.

NMDC and Coal India are in talks to set up a JV to develop the project in Birbhum district. South Africa's Sasol has been approached for technical collaboration.

BS (http://www.business-standard.com/india/news/nmdc-to-setrs-150-cr-plant-in-karnataka/126772/on)

Boost to steel sector; hurdles for sericulture

The steel sector, especially in states like Karnataka, could get a much needed boost with the enhancement of export duty for all types of iron ore, which has been unified at 20% ad valorem. Earlier iron ore lumps attracted export duty of 15% and fines 5%. But at the same time, the Union Budget dealt a massive body blow to the sericulture sector as it has proposed to reduce customs duty on raw silk from 30% to 5%.
Iron ore is also exported in a value-added, pelletized form. Full exemption from export duty has been provided to iron ore pellets to encourage the value addition process for fines. Karnataka accounts for nearly 28% of annual iron exports from India, which ships 200 million tonne annually. Last year the Karnataka government had banned iron exports to control illegal mining and encourage value added activities to create job opportunities in the state.
Enhancing export duty will encourage oneself to add value to iron ore mined locally, said K Ranganath, chairman and managing director of KIOCL Ltd, the country's largest pellet producer.

Meanwhile, the sericulture sector in Karnataka is upset over the cut of customs duty from 30% to 5% on raw silk. Karnataka is the largest silk producer in the country accounting for 60% of total 19,500 tonne of silk annually produced in the country. This will lead to fall in raw silk price, which in turn will affect the sericulture farmer. Already, anticipating duty cut, the coocon prices tumbled to Rs. 140 a kg from Rs. 300 kg five days ago, said Ragupathy, Kolar District Reshme Belegarara Abhivrudhi Sangha, the association of sericulture farmers.


FE (http://www.financialexpress.com/news/boost-to-steel-sector;-hurdles-for-sericulture/756122/1)

India's MSPL to commission new pellet works by mid-March

By mid-March, Indian iron ore miner MSPL Ltd expects to commission its 1.2m tonnes/year iron ore pelletizing plant at Koppal in southern India's Karnataka state,Steel Business Briefing learns from the company.

Source (http://www.steelbb.com/login/?r=/%3FPageID%3D157%26article_id%3D89122)

To increase exports to 2 million tonnes

Close on the heels of the Budget announcement of exemption of export duty on iron ore pellets, state-run KIOCL Limited, a 100 per cent export-oriented unit under the ministry of Steel, plans to double the level of its pellet exports to 2 million metric tonnes during 2011-12. The company is likely to close the current fiscal with an export of one million tonnes to its principal market, China, a top company official said.

“The move to exempt pellets from 15 per cent export duty was long overdue. The finance minister has recognized the value addition in making pellets. This will help increase productivity of our steel plants because use of pellets help increase the oxidation in the process of steel making process. The removal of export duty will also help in converting iron ore fines into pellets,” said K Ranganath, chairman and managing director, KIOCL.

He said the company, which is likely to produce 2.2 million tonnes of pellets at its Mangalore plant this year, was looking at increasing the pellet production by 36 per cent to 3 million tonnes. Of this, around 2 million tonnes will be exported to China and the balance will be sold to domestic steel mills. In the domestic market, KIOCL sells pellets to Ispat Industries.

“We have an annual capacity to produce 3.5 million tonnes of pellets at our Mangalore plant. Currently, we are under utilising our capacity due to the absence of captive iron ore mine. The Budget announcement will help us increase our production and exports. Also, the prevailing prices for pellets at $172 (Rs 7,750) per tonne in the international market are remunerative for us to export more,” Ranganath told Business Standard.

KIOCL trades in the spot market and has no long-term export contract with its customers due to lack of captive iron ore mine. The company had to close down mining operations at Kudremukh in Chikmagalur district from January 1, 2006 following a Supreme Court order on environmental grounds.

Ranganath said the exemption from export duty would help the company save Rs 10 crore to Rs 12 crore on its current level of exports. Next year, it would be able to double its savings as it is looking at doubling its pellet exports. “We are a 100 per cent export oriented unit and we can export our entire production,” he said.

KIOCL, which reported a net loss of Rs 177 crore on a turnover of Rs 993 crore for the first time during the fiscal 2009-10, is looking at a net profit of Rs 80 crore during the current fiscal ending March 2011. It also hopes to double its net profits to over Rs 150 crore next fiscal, Ranganath added.

BS (http://www.business-standard.com/india/news/duty-exemption-to-help-kiocl-double-exportpellets/427477/)

India's NMDC building new 1.2mt/y pellet works in Karnataka

State-owned Indian miner NMDC Ltd has begun work on a 1.2m tonnes/year iron ore pelletizing plant near its mining operations at Donimalai in southern India's Karnataka state, Steel Business Briefing learns from a recent update on the company's website.

Source (http://www.steelbb.com/login/?r=/%3FPageID%3D157%26article_id%3D89193)

GMR, GVK, JSW in race for Rs 3,000-crore Tadadi port

Nine bidders, including JSW Energy-Leighton Contractors and GVK-Samsung consortia, are in the race to develop the Rs 3,000-crore Tadadi port project in Karnataka. Sources said the other bidders, who had put in request for qualification (RFQ) to develop the project, were GMR Infra, Mundra Port, Gammon India, Vadinar port, DSC Ltd, Navayuga Engineering and Malco Power. The last date for the submission of RFQs was March 14.

The multi-purpose, all-weather, greenfield port will have a capacity of 34.1 million tonne per annum. The state government has already conducted a feasibility study for the public-private partnership project. The selected bidder will be responsible for design, engineering, construction, operation and maintenance of the project.

On behalf of the state government, Karnataka State Industrial Investment and Development Corporation will oversee the bidding process.
The port will be situated on the estuary of the Aghanashini river.

The backwaters of the river have a huge waterfront area, which makes the location a natural harbour for a port.

The Karnataka Industrial Area Development Board has already acquired around 1,819 acres of land for the development of the port.

The port is 25 kilometres away from Tadri, at Ankola. The nearest railway line to the port is the Konkan Railway connecting Mumbai and Kerala. Two new railway lines between Hubli and Ankola, and Honnavar and Talguppa have been proposed. The port is also connected by national highways through NH63 and NH4 to Hubli, Tadas and Kumta.

The port would cater to the districts in North Karnataka, especially the iron-ore belt in Bellary-Hospet. While a part of exports from this belt is handled by the two minor ports at Karwar and Belekeri, a significant amount of iron ore is transported to Ennore, Mormugao and Krishnapatnam for exports. The Tadadi port will be the fourth port in the state. Karnataka has one major port at Mangalore and two minor ports. The New Mangalore Port Trust is in the southern part of the state and majorly handles liquid cargo.

BS (http://www.business-standard.com/india/news/gmr-gvk-jsw-in-race-for-rs-3000-crore-tadadi-port/428867/)

Now Hubli-Ankola Line must get approved :cheers:

Sesa Goa wins Bellary Steel & Alloys; JSW Steel down

ET Bureau,Mar 11, 2011, 09.36am IST
.
MUMBAI: Sesa Goa has emerged on top in a battle for ownership of the assets of Bellary Steel & Alloys - a little-known company that owns 700 acres in a part of Karnataka known for its mineral riches - edging out JSW Steel in a court-directed auction process that took place earlier this week.

At 9:35 am, shares of JSW Steel were trading 1.83% down at Rs 921.70 while shares of Sesa Goa were trading 0.44% down at Rs 273.75 on the Bombay Stock Exchange.

The Goa-based owned mining company owned by billionaire Anil Agwarwal, emerged triumphant after it challenged a decision by IFCI, a financial institution, declaring JSW the winner. In an auction carried out in December last year under the supervision of the Delhi High Court JSW had seemingly emerged the winner, outbidding Sesa Goa by offering to pay 210 crore compared to 206 crore.

ET (http://articles.economictimes.indiatimes.com/2011-03-11/news/28680254_1_sesa-goa-jsw-steel-bellary-steel-alloys)

Mangalore: Kudremukh Iron Ore Co. keen to promote Eco Friendly Tourism in Karnataka

Mangalore March 17: Kudremukh Iron Ore Co., Ltd (KIOCL), wholly owned by Govt of India Enterprises established in 1976, is taking up major expansion plans and diversification. Kudremukh Iron Ore Company Limited (KIOCL) is interested to promote Eco Friendly Tourism at Kudremukh if it receives permission from the Karnataka government said KIOCL General Manager Bobraj Jayaharan.

Speaking to the reporters at the Kudremukh plant, he said that the company is to enter this venture in partnership with Jungle Lodges and Resorts Ltd. It has enough space, infrastructure, guest house, Lakya Dam, diversion channel, huge machines like shovels, trucks and all the other necessary things for Eco Friendly Tourism and if the government takes much interest in this venture, the plan could be realized, he stressed.

http://mangalorean.com/images/newstemp29/20110317kiocl-43.jpg

http://mangalorean.com/images/newstemp29/20110317kiocl-9.jpg

While speaking about the excess water at the Lakya Dam he said that if the Mangalore City Corporation (MCC) faces shortage of water during the summer season, the water at the Lakya Dam could be utilized. But it requires extra pump and the pipeline to receive the benefit. At present KIOCL supplies water to the Mangalore unit of KIOCL to run its pallet plant. But it is needed to set up separate pipeline if it wants to have water from this dam he clarified.

KIOCL has planned to start steel plant at Hospet in Bellary district in order to utilize the iron ore which is produced by itself. But the project is not finalized and it is now in the initial stage he said. He also requested the supreme court to allow them to settle the 23.2 million tonnes of iron ore which is being crushed before 2005. He said the union ministry of steel also urged the same with the Supreme court in this regard.

JSW finalises Rs 2,300 crore of foreign loans for Bellary expansion

BS Reporter

JSW Steel will be raising Rs 1,000 crore from an export credit agency and $280 million (Rs 1,270 crore) via external commercial borrowing (ECB) to fund its 2.3-million tonne cold-rolling mill to be set up at its flagship Vijayanagar (Bellary) steel factory.

The project is to cost about Rs 4,000 crore and the debt component is Rs 2,600 crore, with a debt to equity ratio of 2:1. Seshagiri Rao, joint managing director and Group CFO, said: "Export credit agencies in Germany and Japan have agreed to give us Rs 1,000 crore for the import of machinery from the respective countries." He said the terms had been finalised, though the letter of approval would take some time.

The non-loan portion of the cost is to be met by internal cash generation. The planned unit, to produce steel primarily used by the automobile and white goods sectors, is being set up with help from JFE of Japan.

Jayant Acharya, director (sales and marketing) of JSW Steel, on January 27, during the company’s third-quarter results’ announcement meet, had said: "The technology of making steel for autograde is something we are doing with them (JFE). The equipment for that will have to be procured by us from the suppliers of the mills." JSW aims to complete the unit in two phases, by the first quarter of 2014-15. Currently, the company has a 1-million tonne cold-rolling capacity.

Sify (http://www.sify.com/finance/jsw-finalises-rs-2-300-crore-of-foreign-loans-for-bellary-expansion-news-equity-ldjbl0baffd.html)

Sesa Goa Acquires Assets Of Upcoming Steel Plant Unit Of Bellary Steel & Alloys

(RTTNews) - Sesa Goa Ltd., a subsidiary of UK mining company Vedanta Resources Plc (VED.L: News ) has acquired the assets of an under-construction steel plant unit of Bellary Steel & Alloys Ltd. for 220 crore Indian Rupees.

The acquired upcoming steel plant has free hold land of 700 acres, building and structures, plant and machinery and other assets of the steel plant. It is also located in iron ore rich belt in the state of Karnataka, India.

The secured creditors to Bellary Steel & Alloys represented by IFCI Ltd had taken over possession of the properties of the company in association with the official liquidator. IFCI Ltd then conducted a sale process for the assets of Bellary under the SARFAESI Act, 2002.

Source (http://www.rttnews.com/Content/QuickFacts.aspx?Id=1580667&SM=1)

Mangalore port resumes iron ore exports to China

Around 2,30,000 tonnes of iron ore cargo which was lying at the New Mangalore port following a ban on the export of iron ore from Karnataka in July 2010, is to now find its way overseas.


MUMBAI - With India's Supreme Court, giving its nod for the export of iron ore accumulated at major ports, around 27,000 tonnes of iron ore was loaded and left for export to China from the New Mangalore port.

The country, which is the world's third largest iron ore exporter, shipped 117.37 million tonnes of the vital steel making raw material in 2009-10. However, exports were down to 75.11 million tonnes between April 2010 and January 2011.

The decline was on account of the Karnataka government slapping a ban on exports last year in July, in the midst of a controversy generated over illegal mining activities in the state. Karnataka is one of the largest iron ore exporters of the country.

On February 11, the Supreme Court allowed the export of iron ore that has accumulated at major ports.

With the apex court giving its nod, another 72,000 tonnes of iron ore is likely to be exported from the New Mangalore port during this week, said officials privy to the information.

The officials pointed out that a vessel MV Qiang Sheng- I, which berthed on March 18, sailed to China with 27,000 tonnes of iron ore cargo from the Sesa Goa company.

Another vessel from China is likely to call at the port this week to carry another batch belonging to MEL, they added.

The Supreme Court had directed the state to notify by mid-March a new law to check illegal mining. ``Based on the court's proceedings, the complete ban could be lifted earlier and we will be able to produce and dispatch in the normal course,'' Sesa Goa's managing director P K Mukherjee said.

The New Mangalore port handled 5.20 million tonnes of iron ore during 2009-10 as against 8.12 million tonnes in 2008-09.

India has been exporting iron ore to China, Japan, South Korea, Europe and other countries. The country mainly exports iron ore fines that are not used by the domestic steel industry.

Analysts tracking the sector estimate that China has been actively engaging Indian exporters to step up the supply of iron ore in a move to reduce its dependence on BHP, Rio, Vale and Fortescue.

India sold nearly 118 million tonnes in 2009 in the world market, after fully meeting the requirements of its domestic steel industry.

Analysts said that China's iron ore imports had dived by 20.2 million tonnes in February to 48.8 million tonnes. They added that with the China Iron and Steel Association seeking fresh measures from Premier Wen Jiabao to help steelmakers tackle iron ore prices, a brighter picture had emerged for Indian exporters.

Reports indicate that overcapacity and rising costs have cut the average profit margins of Chinese steelmakers to just 3.5% in 2010. To tackle the menace, the Chinese government is also said to be actively studying the establishment of standards for imported iron ore.

However, some analysts have predicted that China's iron ore production will rise overall by 8.8% this year. Chairman of the China Chamber of Commerce of metals, minerals and chemicals importers and exporters Xu Xu has also told a delegation that China's iron ore imports are expected to rise 6%, or by 40 million tonnes, this year from 2010, on the back of higher steel output.
Source (http://www.mineweb.com/mineweb/view/mineweb/en/page39?oid=123381&sn=Detail&pid=102055)

K'taka to give 1,500 acres of land to ArcelorMittal

The Karnataka Government on Tuesday said it will allot 1,500 acres land to world's largest steel maker ArcelorMittal within a month to set up a 6 million tonne per annum steel plant.

"Within one month, we will allot about 1,500 acres of land to ArcelorMittal. They will start work within two months," said Karnataka Chief MInister B S Yeddyurappa.

In June, 2010, ArcelorMittal had inked a pact with the Karnataka government for setting up a 6 MTPA steel making facility, along with a 750 MW captive power plant at an estimated investment of Rs. 30,000 crore (Rs. 300 billion).

Rediff (http://www.rediff.com/business/report/ktaka-to-give-1500-acres-of-land-to-arcelormittal/20110322.htm)

JSW Steel's Karnataka expansion nears completion

By end-March or early-April, JSW Steel expects to complete the expansion at its Vijayanagar works in south India's Karnataka state to lift crude steel production capacity to 10m tonnes/year from 6.8mt/y at present, Steel Business Briefing learns.

Thirsk steel firm's Indian venture proving a success

A North Yorkshire steel firm's new venture in India has secured significant orders in its first four months of trading.

As it released its results for 2010 Severfield Rowen, based in Dalton, near Thirsk, yesterday revealed that its 50/50 joint venture with JSW Steel had an order book of £33m.

The JSW Severfield Structures plant in Bellary, Karnataka, opened in November last year and yesterday the company said it would continue a drive for growth in that market.

Severfield Rowen chief executive Tom Haughey said: "We only opened this facility in November so in four months to achieve that level of order book is very satisfactory.

"India is a market where we think we can grow a substantial business mirroring the UK."

Severfield revealed a drop in underlying profit before tax to £15.3m, down from £50.8m in 2009.

But Mr Haughey had previously predicted a tough year for the industry and yesterday said: "I think we have described it as credible. In relative terms against our competitors it is a good performance."

Mr Haughey added that the firm would look to reduce costs in the year ahead by looking at its purchasing arrangements.

Severfield, which has worked on a number of the venues for the 2012 Olympics, including the main stadium, velodrome and ArcelorMittal Orbit viewing platform has also had initial contact with designers hoping to tender for work on new stadiums being built in Qatar for the 2022 World Cup.

It follows a partnership the firm signed in January with Saudi Arabian steel fabrication firm Zamil Industries, with the aim of securing more work across the Middle East.
Source (http://www.thenorthernecho.co.uk/business/8925126.Thirsk_steel_firm_s_Indian_venture_proving_a_success/)

NMDC eyes US coal mines for its upcoming steel plants

As per reports, the company is in talks with the promoters of some mid-sized coking coal mines in Pittsburg and Alabama in the US to do due diligence

New Delhi: To ensure raw material security for its upcoming steel plants in Chhattisgarh and Karnataka, the state-run NMDC is looking at acquiring coking coal mines in the United States.

“We are looking at it but it is at a very initial stage ... it will take some time,” NMDC chairman Rana Som said when asked about company’s acquisition plans in the US.

He, however, declined to name the properties the Navratna firm has targeted or shortlisted for acquisition.

As per reports, the company is in talks with the promoters of some mid-sized coking coal mines in Pittsburg and Alabama in the US to do due diligence.

The first steel venture of the company - 3 million tonnes per annum (MTPA) capacity Chhattisgarh plant, being constructed at a cost of Rs15,500 crore, is expected to be operational by 2014,while the construction work of the proposed 2 MTPA steel plant in Karnataka is expected to begin in 2012.

For the Karnataka plant, NMDC had inked a pact with Russia’s leading steel maker OJSC Severstal in December last year to jointly set up a steel plant with an initial capacity of 2 MT, expandable to 5 MT later at an estimated cost of Rs25,000 crore.

The company is also in talks with Tata Steel to ink an equal joint venture for setting up a 2 MTPA steel plant at Bastar in Chhattisgarh.

Last month, the NMDC chairman had said that the company is close to buying two iron ore mines in Australia, while it is targeting three coking coal assets in Australia, Mozambique and Albania.

“We are precisely targeting six assets, with primarily three iron ores and three for coal in Australia, Mozambique and Albania. We have already located and almost finalised acquisition of two iron ore assets,” Som had said.

The PSU, which accounts for 15% of the country’s total iron ore production, has targeted to produce 30 million tonnes of iron ore this fiscal.

livemint (http://www.livemint.com/2011/03/24175203/NMDC-eyes-US-coal-mines-for-it.html)

Arcelor Mittal's steel plant in K'taka mulling JV with KPC

Arcelor Mittal's steel plant in Karnataka has picked up pace and CNBC-TV18 has learnt that the company is mulling a joint venture with Karnataka Power Corporation (KPC) to set up a 700MW power plant in Bellary third phase at a total investment of Rs 300 crore.
We understand that Arcelor Mittal is planning to generate 350MW of its total requirement of 700 MW through this and the remaining, through waste gases and is likely to invest Rs 150 crore for this plant.
Why KPC? That is because sources say that KPC has expertise in coal-based plants and Arcelor Mittal would be assured of a steady supply of power.

http://www.moneycontrol.com/news/business/arcelor-mittals-steel-plantk%E2%80%99taka-mulling-jvkpc_533042.html

India's JSW Steel commissions new slab casters (http://www.steelbb.com/login/?r=%2F%3FPageID%3D157%26article_id%3D90476)

India's JSW Steel is moving closer to completing the expansion at its steelworks in Karnataka state with the commissioning of two new slab casters, Steel Business Briefing learns from the company. The two casters – with a total capacity of 3.2m

ArcelorMittal Gets Go Ahead for New India Plant


India Has Been Held up Until Now

ArcelorMittal had first signed an agreement in 2005 with the government of the Indian state of Jharkhand to set up a plant with an annual capacity of 12 million tons per annum (mtpa). This was followed by another agreement to set up a plant with 12 mtpa in the state of Orissa. However both plants have been held up as the company has waited to receive land by the respective state governments.

The Indian state of Karnataka has agreed to allot ArcelorMittal the land for setting up a 6 mtps plant within the next 30 days. The plant could cost the company about $6 billion to construct according to estimates, and if all goes according to plan, the construction would begin by May of this year.:cheers:

We currently forecast that ArcelorMittal sells around 14 mpta through its Asia, Africa and CIS division, and we expect this to grow to around 18.7 mpta by the end of our forecast period. In a scenario where this increased to 25 mpta, this would add around 5% to our price estimate.

Read more: http://community.nasdaq.com/News/2011-04/arcelormittal-gets-go-ahead-for-new-india-plant.aspx?storyid=70019#ixzz1IulsZkWG

23 APR, 2011, 03.33PM IST,PTI
Rashtriya Ispat plans setting up steel plant in JV with Karnataka

BANGALORE: Rashtriya Ispat Nigam Ltd today said it is planning to set up a three million ton capacity steel plant under joint venture with Karnataka.

The RINL, which runs Vishakapatnam Steel Plant , a Navratna company, has been eying to utilise the existing facilities of Kudremukh Iron ore Comany Ltd to set up the plant.

Under a Supreme Court order, which banned mining activity in the eco-sensitive western ghats region, Kudremukh plant was shut down about five years ago.

The investment in the proposed JV would be in the order of about Rs 15,000 crore, RINL CMD, Pradip Kumar Bishnoi told reporters after launching its Rural Dealership Scheme in Karnataka.

KIOCL has some fine dumps of iron ore which it has not used and RINL is planning to utilise it. KIOCL also owns a pellet plant at Mangalore, which the Vizag steels is keen on running,he said.

Bishnoi, however, clarified that his company was not looking at any mining activity in the Kudremukh area and would seek mining rights at a place to be granted by the state in the event of the project taking off.

He said that the company at its Vizag plant would be setting up a four million tonne capacity Special Products plant, investing about Rs 25,000 crore by 2015.

"The process of setting up of this plant has begun. Consultants have already been appointed. Report should be in place within two or three months", Bishnoi said.

He said that hitherto RINL had been producing long products and wanted to enter the area of manufacturing flat products like seamless tubes of large diametere of 200 to 300 metres, used by oil field, gas distribution and boiler tube industry.

It would also be rolling out cold rolled non-grain oriented and cold rolled grain oriented products at the proposed plant, for which it was scouting for technical know-how, he said.

The existing production capacity of 3 million tons would be expanded to 6.3 million tons by 2011-12 and in another two years to 7.3 million tons, Bishnoi said.

It has plans to expand the production capacity to 20 million tons by 2020-21, he said.

To encourage rural distribution of steel, the company has appointed 125 dealers in rural areas and ten in Karnataka. The number of dealers in Karnataka would be ramped up to 200 in the near future, he said.

As part of its corporate social responsibility, RINL gave away school kits to primary school children of an Urdu school in the city and also financial assistance to ten students that it has adopted.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/rashtriya-ispat-plans-setting-up-steel-plant-in-jv-with-karnataka/articleshow/8065238.cms)

http://i55.tinypic.com/xp69vq.jpg
-- Udayavani

Reddy brothers sell Bramhani's Karnataka unit to Miglani family
Press Trust Of India / New Delhi April 23, 2011, 0:11 IST
The Reddy brothers today said they had sold their entire stake in the Karnataka unit of Bramhani Industries to Miglani family, promoters of the high-grade steel makers Uttam Galva Steels, for Rs 285 crore, giving up their sole business interests in the state in the wake of allegations over mining activity.

Karnataka Tourism Minister G Janardhana Reddy told PTI the deal was signed in the first week of this month and the new promoters’ have rechristened the company as ‘Uttam Galva Ferrous’.

“We wanted to set up a steel plant in Bellary and had invested Rs 285 crore.... Now Uttam Galva, the Miglani family has taken it over. It has been sold at par,” Reddy, who is also the chairman of Bramhani Industries, said.
Steel Min for 8-10 MT ultra mega steel projects in 5 states

New Delhi, Apr 25 (PTI) Taking a cue from ultra mega power projects, the ministry of steel is planning to set up ultra mega steel plants on fast track basis in five mineral- rich states, even as multi-billion dollar ventures by the ArecelorMittal and Posco are still hanging fire.
The move to set up mega steel plants is aimed at meeting demand-supply deficit in the steel sector.
"We are considering a proposal by our joint plant committee to set up 8-10 million tonnes (MT) capacity ultra mega steel projects (UMSP) in Jharkhand, Chhattisgarh, Orissa, Madhya Pradesh and Karnataka which have rich iron ore deposits," a top steel ministry official said.
The need for UMSPs was felt in the wake of rising demand-supply gap and failure of mega projects to come up due to regulatory and other hurdles.

Varun Industries plans Rs2,100 crore pig iron plant in Karnataka (http://www.dnaindia.com/money/report_varun-industries-plans-rs2100-crore-pig-iron-plant-in-karnataka_1541328)

Varun Industries, a Mumbai-based stainless steel player, is looking to invest Rs2,100 crore to set up a pig iron plant in Karnataka under its broader plan to achieve complete backward integration in the next five years.

“We are planning a 3.5 lakh tonne pig iron plant in Bagalkot district of Karnataka. Around 500 acres of land is approved for the project and we are also awaiting clearances for an iron ore mine,” said Kiran Mehta, chairman and managing director, Varun Industries.

Mehta said the company, however, will not make any capital expenditure towards the Bagalkot project in this fiscal as it will be preceded by a steel flats project of 60,000 tonnes per annum (tpa) in Jodhpur, where the company already has a 40,000 tpa capacity steel sheets plant.

“This (steel flats project) is the second step of backward integration of our steelware business which is expected to come up by May 2013. Once we have steel flats, we will be completely backward integrated in manufacturing stainless steel and related products,” he said.

Stainless steel is made from steel flats which are, in turn, made from steel sheets.

Steel sheets are made from pig iron. With presence in pig iron and steel sheet making, the company will achieve 100% raw material security.

In the current fiscal, the company is planning to invest Rs700 crore in the upcoming Jodhpur facility, which may stretch into the next fiscal, Mehta said.

Varun currently manufactures and exports close to 1,800 items in cookware, kitchenware and houseware from its plant in Vasai near Mumbai. The raw material for the plant is supplied from its stainless steel re-rolling plant at Jodhpur. The company also sells branded steelware from its seven outlets across the country under the brand name of Premium Kitchenware and more.

“We are focusing on setting up more and more franchisees in shopping malls as we find it a more efficient way to expand our reach, instead of setting up standalone outlets,” a company spokesperson said.

Varun is also focusing on diversifying its business interest in high-value sectors such as oil & gas and mining.

“We have over 1,000 oil & gas blocks in Madagascar and this investment will help the company in providing long-term valuations,” Mehta said.

He said the company is not planning to invest heavily in this activity; instead it is looking to bring in a partner to develop these blocks. “We are in talks with several companies and negotiations with a Hong Kong based firm in advanced stages,” he said.

Besides, the company, through its Australian joint venture partner Cluff Resources is scouting for mining opportunities in uranium and precious gemstones. The company also has interest in gold mines in Australia from where it plans to start mining soon, Mehta said.

“In the next five years, we see ourselves as a diversified player with substantial interests in oil and gas and mining, along with 100% backward integration in our core business of steel,” Mehta said, adding that the company might also set up a steel plant in future.

NMDC hires Mecon for report on steel plant
Ruchira Singh, ruchira.s@livemint.com



India’s largest iron ore miner NMDC Ltd has appointed Mecon Ltd to prepare a detailed project report (DPR) for its planned steel plant in Karnataka and aims to formalize its joint venture with Russia’s Severstal later this year.

“We are expecting the report from Mecon in June. Severstal is getting a techno-economic feasibility study done,” Rana Som, chairman of NMDC, said in an interview. “After that, both reports will be integrated.”

The venture will mark the Russian company’s entry into India’s steel industry.

Som said he would aim for the joint venture to be signed with Severstal in July, or latest by December, for the 5 million tonne (mt) steel plant to come up in phases. The two companies had last year announced they would get together for a steel plant.

“It is very ambitious, but I will try to do it in July,” Som said.

NMDC is constructing another steel plant in Chhattisgarh, where Mecon is an engineering consultant.

The entry of NMDC into steel making is being propelled by the easy availability of iron ore from its mines and the urgent need to boost national steel output and stem imports as high economic growth fuels demand for consumer durables and infrastructure development.

India produced about 78 mt of steel in fiscal 2011 and had to import about 7 mt of the alloy, according to industry estimates, even as demand continued to grow in double digits.

This year, slower automobile sales and high interest rates indicate a slackening of demand, yet forward projections show India’s appetite will soon go beyond 100 mt of steel for which plants need to come up now.

Karnataka might be competitive terrain for NMDC owing to the presence of big steel makers, said a metals analyst who did not want to be named.

ArcelorMittal and Posco have plans to set up units in the state considered more investment friendly than those in eastern India and where big private companies such as JSW Ltd already have a significant presence.

“Starting from a zero base, I will have certain advantages,” Som replied when asked how NMDC, noted for its mining expertise, will compete with the traditional steel giants. “I will have certain advantages such as the latest technology and rationalization of manpower.”

Separately, Som said NMDC had set a price of Rs.3,800 a tonne for benchmark iron ore lumps for the April-June quarter, down from the provisional rate of Rs.4,000 set last month.

He did not say if the lower price reflected the slower off-take from the steel sector and lack of exports to Japan and South Korea, with which NMDC has to renew long-term export contracts.

“There is a formula for prices. There are so many components,” he said. “We usually like to keep the provisional price on the higher side.”

Spot prices of iron ore in eastern India had fallen lower than NMDC’s quarterly price, an analyst from CRU International said on condition of anonymity, which may have forced the miner to revise it downward, though iron ore continued to be an expensive raw material for steel plants.

In the foreign markets, prices of iron ore fell slightly on lower off-take from China, the world’s largest buyer of the raw material and the biggest maker of steel.

Portal Oreteam reported the 63.5 grade iron ore price at around $168 a tonne, free on board at Visakhapatnam, $1 down from the previous day.

Early this year, iron ore prices nearly touched $200 a tonne, a level last seen in 2008 ahead of the Olympics in China.

Livemint (http://www.livemint.com/2011/05/10215224/NMDC-hires-Mecon-for-report-on.html?atype=tp)

Mittal pins hopes on Centre to start work on India projects



Global steel giant ArcelorMittal today said it is anxious to start work on its big-ticket India projects but exuded confidence that the government is doing its best to ensure its Rs. 1.30 lakh crore projects take off.

"It is very important to us and we are as anxious as anyone to make substantial progress in India," ArcelorMittal Chief L N Mittal said on Wednesday after the world's largest steel producer declared its first quarter results.
Mittal said though there was some progress in its Karnataka and Jharkhand projects but this was not enough to begin construction of steel mills.

"There is some progress in Karnataka .We have started seeing some progress in Jharkhand. So, there is some progress but not enough yet to start construction on any particular date when they will begin the project work," ArcelorMittal CEO said.

The company had entered into a pact with Jharkhand government way back in 2005 to set up a 12 million tonnes per annum (MTPA) steel plant. It had unveiled similar plans for Orissa in 2006.

However, none of the projects could take off due to regulatory and other hurdles like problems in land acquisition, raw material security etc. It had to shift the site of the proposed project at Bokaro in Jharkhand from Khunti-Gumla, faced with land acquisition problems.

Faced with delays, it entered into a pact with Karnataka government for Rs. 30,000-crore plant with a capacity of 6 MTPA in June 2010.

However, the company is still in need of regulatory approvals to take off projects.

"We are still in need of so many approvals," Mittal said. Asked whether he intended to take up the matter with Prime Minister Manmohan Singh, he said the government was aware of the entire issue and he was hopeful that it (government) was making efforts to ensure progress.

"The government is clearly aware of our need and our anxiety to start all these projects. There is enough pressure from various authorities. Everyone is fully aware about our projects. I am sure that the government is doing its best," he said.

Faced with inordinate delays in his India plans, Mittal in February last year had slammed administrators in India for not being equipped to handle big-ticket investments. Meanwhile, to mark its first operational presence, ArcelorMittal entered into a partnership with domestic firm Uttam Galva.

However, when asked whether the company was scouting for more such partnerships to grow its business locally, he declined to comment.


Read more at: http://profit.ndtv.com/news/show/mittal-pins-hope-on-centre-to-start-work-on-india-projects-153602?pfrom=home-Business&cp

JSW orders Corex gas based Midrex DRI plant

A cooperation under the leadership of Siemens VAI Metals Technologies GmbH of Austria has received a contract from JSW Projects Ltd, a group company of JSW Steel Ltd, for the engineering and supply of a Corex gas based Midrex® direct reduction dual discharge plant.

An order was placed for a Corex gas-based Midrex DR plant, which will be supplied by a cooperation comprising the companies Siemens VAI Metals Technologies GmbH of Austria, Linde AG Engineering Division of Germany, Midrex Technologies Inc of USA, Linde Engineering Pvt Ltd India and Siemens VAI Metals Technologies Pvt Ltd of India.

This new facility, which will have a nominal production capacity of approximately 1.2 million tonnes of hot and cold direct reduced iron per year, will be erected at JSW Steel Ltd., located in Vijayanagar, Toranagallu in Karnataka.

Start up of the new facility is scheduled for mid 2013.

The new DR plant at JSW Steel will be the second installation of a Corex gas-based Midrex DR plant. The design will be based on the experience acquired from a similar plant configuration that has been successfully operating at AM Saldanha Steel Works, South Africa since 2000.

The project scope includes process engineering; the supply of equipment, electrics and automation; supervision of erection, start up and commissioning; and training services.

The DR plant will consist of a 7.15 meter diameter Midrex® Shaft Furnace with gas recycling and treatment facilities. It will be equipped with Siemens compressors for gas conveying and recirculation, and Linde gas treatment equipment for the removal of CO2 from the process gas and for gas heating. The balance of plant portion will be provided by JSW Projects Ltd.

At JSW Steel two Corex C-2000 modules (nominal production capacity of 2,400 tonnes of hot metal per day) have been in operation since 1999. Up until now, the Corex export gas has been used for the generation of electrical energy in a company owned power station.

Source (http://www.steelguru.com/indian_news/JSW_orders_Corex_gas_based_Midrex_DRI_plant/204661.html)

BMM ISPAT gets land for steel plant at Hospet

The Cabinet gave its nod to allot 103 acres -- through KIADB -- to BMM Ispat to set up a steel plant in Hospet Taluk in Bellary district. A decision on fixing the rate for the land has been left to Chief Minister B S Yeddyurappa.


DHNS (http://www.deccanherald.com/content/164214/international-convention-centre-come-up.html)

http://www.deccanheraldepaper.com/pdf/2011/05/29/20110529a_011100006.jpg

http://www.deccanheraldepaper.com/pdf/2011/06/01/20110601aA001100006.jpg

India's NMDC to finalise JV with Russia's Severstal by August


* Co in talks with Severstal for more coal for another plant

* Market survey for steel plant delaying Severstal JV

* Aims to sell 30 mln T iron ore this fiscal vs 26.5 mln yr ago


MUMBAI, June 1 (Reuters) - Indian iron ore miner NMDC expects to finalise a joint venture with Russia's Severstal for a two million tonne steel plant by August, delaying the deal by two months, the NMDC Chairman said on Wednesday.

The equal joint venture between the country's top ore miner and Russia's largest steelmaker was expected to be signed this month, but a market survey and separate negotiations for additional coking coal supplies are delaying the agreement.

"We want to be very sure about the product and market conditions. We are keeping August as deadline," NMDC Chairman Rana Som told Reuters.

The two firms agreed in December to build the steel plant, in the southern Indian state of Karnataka, to manufacture auto grade steel. NMDC is to supply iron ore from its nearby mines, while Severstal plans to source coking coal from its captive mines in Russia.

State-run NMDC, which is separately building a 3 million tonne steel plant at Chattisgarh in central India, is now negotiating with Severstal for additional coal supplies for the plant, NMDC's finance head S Thiagarajan said.

"In principle, they have agreed. We are working out the arrangement. That is one of the reasons for the delay," he said.

NMDC accounts for about 15 percent of India's iron ore production and is among the few state-owned firms with "navratna" status that accords a large degree of financial independence.

STRONG DOMESTIC DEMAND

The company, which holds about a billion tonnes of proven iron ore reserves, sold 26.5 million tonnes of iron ore in the financial year that ended March. It hopes to sell 30 million tonnes in the current fiscal year.

"We have a ready market and in fact we are not in a position to satisfy the entire domestic demand," Som said.

The company has been scouting for opportunities to boost growth, including diamond and gold mining, but has focussed on steelmaking, driven by the sharp demand for the metal in an economy growing between 8 to 9 percent annually.

It is building its Chattisgarh plant at a cost of 155 billion rupees ($3.4 billion), close to its iron ore mines, and hopes the joint venture with Severstal will produce high margin, value added products for the Indian and overseas markets.

Demand for steel in India is expected to grow in double-digits, driven by rising construction of buildings and infrastructure and huge investments by global carmakers, and has drawn interest from global steelmakers.

Last year, Japan's JFE Holdings acquired a 14.9 percent stake in India's JSW Steel for $1 billion, while larger rival Nippon Steel has planned an automotive sheet steel joint venture with Tata Steel .

Top global steelmaker ArcelorMittal and South Korea's POSCO are also awaiting approvals for large steel plants in the country.

Last week, NMDC reported quarterly net profit nearly doubled to 20.99 billion rupees, beating market estimates, led by strong volumes and higher ore prices during the quarter. [ID:nWNAS2235]

It plans to spend 33 billion rupees for capacity expansion and the steel project this year, and is counting on its 172 billion-rupee cash hoard to fund any acquisitions or investments.

Source (http://af.reuters.com/article/metalsNews/idAFL3E7H11NX20110601?sp=true)

Steel projects remain on paper in Karnataka

Mahesh Kulkarni / Chennai/ Bangalore June 02, 2011, 0:31 IST
A year after GIM, little progress in realising investment from steel majors

The Karnataka government, which attracted global steel majors a year ago, has seen little progress in realising their investment. One year after holding the global investors meet (GIM) in June 2010 the progress in securing clearances for the iron and steel projects, which constituted more than half of the investment proposals, is negligible.

The state had signed MoUs with large steel companies like ArcelorMittal, Posco, Tata Metaliks, JSW, NMDC, Adhunik Metaliks, Surya Roshni and Hazira Steel Limited among others for setting up steel mills with a total capacity of 45 million tonne per annum (MTPA) at a combined investment of Rs 2.53 lakh crore.

While the B S Yeddyurappa-led government left no stone unturned to give clearances on its part, many projects are still on paper and held up due to issues of land acquisition and central clearances for mining leases among others.

“We have already recommended to the Centre for allotting mining leases to six steel companies like Arcelor Mittal, Posco, JSW, Bhushan Steel, Surya Roshni and KIOCL Ltd. It is now up to the Centre to give the clearance,” Murugesh R Nirani, minister for large and medium industries, told Business Standard.

Of the 389 MoUs signed by the government, 27 projects have already been completed and commissioned, involving an investment of a little over Rs 2,000 crore, which is less than 1 per cent of the investment committed during the GIM last year. Another 218 projects are in their various stages of completion, he said.

The state government is in the process of giving water linkage for many of these steel projects. “We have 170 tmc ft water available from Krishna tribunal, of which 10 per cent would be allocated for steel projects,” Nirani said.

As far as the big-ticket steel projects are concerned, the state government has achieved considerable progress in terms of land acquisition for ArcelorMittal. The government has already acquired close to 2,000 acres in Kuditini village in Bellary district. The company has so far deposited Rs 260 crore for the purpose.

Korean steel giant Posco recently identified land in Ron taluk of Gadag district for its 6 MTPA steel plant. The Karnataka Industrial Area Development Board (KIADB) has issued preliminary notification for acquisition of 3,000 acres for this project. Surya Roshni has selected Bagalkot for its 6 MTPA integrated steel plant with 500 Mw captive power plant at an estimated investment of Rs 24,000 crore.

Bhushan Steel Limited has identified land in between Bagalkot and Koppal for its 6 MTPA steel plant with 600 Mw co-gen project at an investment of Rs 27,928 crore. Tata Metaliks has selected Haveri district for its 3 MTPA integrated steel plant at Rs 15,000 crore. The preliminary notification has been issued for this project, Nirani said.

“We are hopeful that most of these steel projects will materialise in the next four years to five years. We are satisfied with the progress achieved so far in these projects. In another six months at least one of the projects will see start of civil work,” he said.

BS (http://www.business-standard.com/india/news/steel-projects-remainpaper-in-karnataka/437503/)

Such projects take time.Thanks to illegal mining,process of allotting mines has made it more worse.

Posco may not get water for Karnataka steel project (http://www.financialexpress.com/news/posco-may-not-get-water-for-karnataka-steel-project/798120/0)

JAISHANKAR JAYARAMIAH
Posted: Thursday, Jun 02, 2011 at 2005 hrs IST
Tags: Karnataka Steel Project | Posco | Land Acquisition Proceedings | Tungabadra River

Bangalore: South Korean steel major Posco may not get water allotment for its proposed R32,366 crore integrated steel project in Karnataka as per its preference as the state government is likely to allot water from a reservoir, situated far away from the site.
According to sources close to the development, Posco is interested in sourcing water from Tungabadra river, which is very close to the project site in Gadag district. But the state government is expected to allot water from Alamatti dam, which is around 130-km from the project site, by imposing several restrictions over withdrawal of water to run the steel plant.

Talking to FE, Karnataka Large and Medium Scale Industries Minster Murugesh R Nirani said the company wanted to have water from near by area but the government has suggested them to take water from Alamatti dam due to various reasons. “There is no question of allowing water from Tungabadra for Posco’s project. The government is considering to allot water from Alamatti dam. That too, the company can withdraw water from the dam only when the excess water is overflowing” he said. The company will not be allowed to take water stored in the dam during lean seasons, he added. Further, he said the government is examining whether to create a small lake near the dam to store excess water from Alamatti dam at the cost of the company.

The government has notified around 3,300 acre in the Halligudi village of Mundargi taluk in Gadag district. The government is in the process of issuing notices to farmers as a part of land acquisition proceedings, for which Posco has paid R60 crore.

The government is expected to fix price for land to be acquired from the farmers in the next 2-3 months as the district level committee should negotiate with the farmers, the Minister added. With the government reluctant in allotting water from Tungabadra, it is expected that the implementation of the project may be further delayed.

POSCO entered late so they missed the first come first serve funda.

Bhushan Steel may look for fund raising after October - MD

CNBC-TV18 reported that Bhushan Steel & Strips has been going under a lot of development lately. The company has identified land for their 6 million tonne per annum Orissa steel plant and also some land for their Karnataka steel plant. The company is awaiting clearance by the environment ministry for both the plants.

Mr Neeraj Singal, MD of Bhushan Steel & Strips, in an interview with CNBC-TV18's Ms Sonia Shenoy and Ms Ekta Batra, gave latest update on the lands acquired for the Orissa and Karnataka steel plant and their plans for the company going forward.

Below is the verbatim transcript. Also watch the accompanying video.

Q: How much of investment will you be pumping into the Orissa plant? When will the plant come on stream? How will that help your capacity?

A: We have started the production for 3 million tonne. We will be acquiring the land for the next 3 million tonne. We will come into production by 2012.

Q: What are you planning for your Karnataka steel plant for which you have identified some land?

A: The land acquisition is continuing. It will take one year’s time to get possession of the land.

Q: What are the capacity plans for the Karnataka steel plant?

A: It’s a 6 million tonne steel plant in Karnataka.

Q: Could you give us an update in terms of environmental clearances for your Orissa as well as Karnataka plant? What are the regulatory bits on those plants?

A: As far as the first steel plant for 3 million tonne is concerned, it’s an operating plant. So, we have got the environmental and statutory clearance.

For the next phase, we are in the process of getting the environment clearance which we will be getting very shortly as we have applied for it. It should not be a problem because the whole plant is European technology based which has high standards of environment related things.

Q: Could you give us an update on your tie up with Essel Group to make a Bollywood theme park with around 250 acres of land?

A: It was a preliminary thing. We wanted to get into the real estate sector, but at the moment, we are not interested in getting into that.

Q: What will you do with that piece of land?

A: We never got that land. Maharashtra Industrial Development Corporation has not yet cleared anything. It is still at the same stage.

Q: Some of your peers have increased the flat product prices in the market. Have you planned any kind of price hike?

A: We have been planning to increase by INR 500 to INR 1000. Since SAIL has withdrawn the price increase, we will not be increasing the prices. We might increase the prices in the next month around July 2011.

Q: You had indicated earlier that there would be some fund raising soon. Could you give us some update on your fund raising plans?

A: We have not formed up any immediate fund raising plan. We might plan for something after October or so.



(Sourced from CNBC-TV18) (http://www.steelguru.com/indian_news/Bhushan_Steel_may_look_for_fund_raising_after_October_-_MD/208366.html)

MEERA MOHANTY, ET Bureau, Jun 7, 2011, 06.32am IST

NEW DELHI: State-run KIOCL has got the lease to the 10 million tonnes Chikkanayakanahalli or CNH iron ore reserve, paving the way for supplies to its ore plant at Mangalore for at least three years, according to a senior executive.

KIOCL, formerly Kudremukh Iron Ore Company, was forced to give up its mines in 2005 after a Supreme Court ban, and was running its pellet plant with supplies from national miner NMDC.

Managing director K Ranganath said though the Centre had granted environmental clearance to the CNH reserve in 2009, the site could not be taken over because the boundary of the reserve, which is shared by other lease owners, was not clearly marked. However, new boundary sketches will be finalised in a few weeks and KIOCL can apply for forest clearance, he added.

ET (http://articles.economictimes.indiatimes.com/2011-06-07/news/29630065_1_mining-lease-managing-director-k-ranganath-iron-ore)

More delay seen in iron ore exports from Karnataka (http://www.moneycontrol.com/news/business/more-delay-seeniron-ore-exportskarnataka_555111.html)

KIOCL plans iron ore processing plant in Hospet

Mahesh Kulkarni / Bangalore June 14, 2011, 1:05 IST
To source low-cost raw material for its pellet plant in Mangalore.

State-owned KIOCL Ltd, that exports iron ore pellets, is looking at setting up an ore beneficiation plant at Hospet in the iron ore-rich Bellary district. The enriched ore will be used as raw material to run its pellet plant in Mangalore.

“We are looking at processing low-grade hematite iron ore having Fe content of 51-53 per cent with a capacity to produce close to two million tonnes per annum (MTPA) of iron ore concentrate. We will procure the low-grade ore from nearby sources in Bellary-Hospet region and enrich it to 63 per cent Fe content before transporting it to our pellet plant in Mangalore,” said K Ranganath, chairman and managing director, KIOCL.
He said the company will procure low-grade ore at a cheaper rate in Bellary district and use it for its pellet plant after enriching it at a much lower cost compared to the what it buys from NMDC. “By doing this, we will be able to reduce at least 15-20 per cent of our raw material costs.”

The beneficiation process involves removal of impurities in iron ore and enriching low-grade ore to high-grade for using it as a raw material in steel making.

The plant would be set up on 62 acres out of the 100 acres of land available with Tungabhadra Steel Products Limited (TSPL) in Hospet. “At present, we are in talks with the ministry of steels and ministry of heavy industries for the merger of TSPL with KIOCL Limited. We have appointed M N Dastur & Company (P) Limited to prepare the Techno Economic Feasibility Report (TEFR) to set up the plant. Once they submit the report, we will approach our board and the steel ministry for the final approval,” Ranganath told Business Standard.

The investment for setting up the beneficiation plant would be decided based on the TEFR, he said, adding, “Once both the ministries give their approval the proposal would go to the Cabinet committee on economic affairs for final approval. We expect to receive all approvals within six months.”

TSPL, a sick PSU engaged in structural fabrication, has a liability of Rs 325 crore and is currently waiting for the government to clean up its balance sheet. Post merger, KIOCL is ready to absorb all the employees of TSPL to run the beneficiation plant, he said.

At present, KIOCL sources around 2.25 MTPA iron ore from NMDC to run its pellet plant in Mangalore. The proposed iron ore beneficiation plant would help the company increase its capacity utilisation to 3.5 MTPA, said Ranganath.

BS (http://www.business-standard.com/india/news/kiocl-plans-iron-ore-processing-plant-in-hospet/439044/)

Hill of herbs to make way for steel plants

HUBLI: The Forest Department had recently declared Kappata hill of Gadag as south India’s first medicinal plants sanctuary. But the same government now plans to acquire 7,182 acres in the same belt to be handed over to private steel mills.


Farmers of Mundargi taluk in Gadag district are a worried lot as the Karnataka Industrial Areas Development Board (KIADB) has issued notices to 350 of them for acquiring land.

KIADB special land acquisition officer Mahantesh Beelagi told Express that according to the state government’s instructions, around 7,000 acres will be acquired in Mundargi taluk. After the government gave 30 days’ time to farmers to file objections, several objections have been already filed. After negotiations with land owners, the report will be submitted to the government after which acquisition process will commence in keeping with the government’s directions, he added.

However, farmers are not willing to give up their land.

Siddappa Mudalapur, a farmer of Halligudi village, told Express that no officer or politician had asked them to give the land. “We were surprised when the land acquisition office sent us a notice,” he said.

Sources in the Industries Department told Express that the land will be handed over to Posco India Private Ltd (3,382 acres), SR Group (3,000 acres) and Adhunik Metallic (800 acres). These companies will install steel plants by 2014, they added.

The steel mills have been eyeing Kappata hill, which is rich in natural resources, and can hence source raw material easily. The hill has 56 grade iron ore in Mudaragi taluk area. Though the area lacks connectivity, the companies have shown interest in installing their plants.

Farmers’ leader Venkatesh Dasar alleged that the state government and the companies were conspiring to loot Kappata hill, which is known for rare medicinal plants.

“It also boasts of high grade iron ore, which is why the government is keen on acquiring the land without discussions with farmers,” he alleged

© expressbuzz (http://expressbuzz.com/states/karnataka/hill-of-herbs-to-make-way-for-steel-plants/284105.html)

Varun Industries aims to complete new steel, pig iron units by 2015

ML: The company has said that it will not make any capital expenditure towards the pig iron plant in the Bagalkot district of Karnataka,though it has land approved for the project. When is the project expected to start?

Varun Industries, the multi-dimensional conglomerate with investments in steelware, raw steel, oil & gas, wind energy, mining, gems and jewellery, is setting up two units in Jodhpur and Karnataka. The company, which earns the bulk of its revenues from the export of stainless steel kitchenware, registered a 65% growth in net profit at Rs39.34 crore last year from Rs23.81 crore in the previous year and is working to consolidate its position in the premium segment at home. In an interview to Moneylife, Kiran Mehta, chairman and managing director, discussed the company's growth and future prospects in India and abroad.


How much has the company invested in it?

KM: The land acquisition for the Karnataka project is still going on as it is a bigger area of around 500 acres. This happens in two ways-one way is to ask the government to allot the land, which could take up to four years; another is to identify the land and hand over with the consent of the owners to the government. We have taken the second route.

About capex, what we said was for 2012-13, as there would not be any capex other than land acquisition. The total investment would be Rs2,200 crore, in three phases.

The pig iron plant has two phases. First, to put up a plant; second is to get the required iron ore, that is allotment of mines. The Karnataka government has changed its mines policy and it is now allotting mines only for actual users. So we need to get the mines allotment and put up a unit. Both these processes have to synchronise. The Karnataka and the second Jodhpur project will start simultaneously. Both have a deadline of 2015.

Source (http://www.moneylife.in/article/varun-industries-aims-to-complete-new-steel-pig-iron-units-by-2015/17312.html)

NMDC & Severstal to set up 2 mtpa steel plant near Bellary

Submitted by Prashant Duggal on Thu, 06/16/2011 - 19:27

NMDC, the country's largest iron ore producer and Russian steel maker OJSC Severstal to float a 50:50 joint-venture company that would set up a five million tonne steel plant in Bellary, Karnataka, at a total cost of Rs 9,000 crore.

Initially the plant will have a capacity of two million tonnes per year and will source coal from Russia and iron-ore from near Bellary.

It will produce superior grade steel used in sectors such as automobiles. Construction of the proposed plant is likely to start in 2012 and would be completed within 36 months, the government of India said.

Severstal is one of the top 10 steel makers in the world and has units in Russia, the US and Europe.

NMDC, a government of India enterprise, has already applied for the land from Government of Karnataka and has got in principle agreement for around 2,800 acres.

Source (http://rtn.asia/682_nmdc-severstal-set-2-mtpa-steel-plant-near-bellary)

High grade steel will lure Automobile industries to set up units in and around bellary region.

Steel Minister Reviews The Performance of KIOCL Limited for 2010-11


Shri Beni Prasad Verma, Union Minister of State for Steel (Independent Charge) reviewed the performance of KIOCL Ltd. for the year 2010-11 yesterday in the Steel Room of Udyog Bhawan, Ministry of Steel, New Delhi. Shri K Ranganath, CMD, KIOCL was also present on the occasion. Shri Ranganath apprised the performance of the Company and highlighted its significant achievements as well as the challenges before the Company.

KIOCL Ltd. despite not having any captive mines and despite depending on procured iron ore fines from M/s NMDC, made a record production of 2.124 million tonnes of Pellets during 2010-11 as compared to 1.273 million tonnes in 2009-10. This has been a turnaround year for KIOCL Ltd. It earned a substantial profit before tax of Rs.99.95 crores and has proposed a dividend of Rs.15.86 crores to the Govt. of India during 2010-11 as against a loss of Rs. 194 crores during the previous financial year.

Shri Ranganath informed that KIOCL has also undertaken various measures for increasing production and technology up-gradation which includes installation of Pressure Filters, Derrick Screening Systems, Construction of Storage Silo. In addition, major capacity expansion programme like setting of Ductile Iron Spun Pipe plant, Coke Oven Battery Project have been undertaken.

Shri Ranganath cited some of the challenges before KIOCL which included obtaining allotment of captive mines, ensuring uninterrupted water supply to the pellet plant at Mangalore and gainful utilization of mining and beneficiation assets held with the Company.

The export duty on pellets was reduced by the Govt. of India to 0% from 20% with effect from 1st March 2011 which has also provided a significant boost to the company for improving its pellet sales and profitability.

Source (http://pib.nic.in/newsite/erelease.aspx?relid=72735)

JP Steel Plantech to supply continuous annealing and galvanizing line to JSW Steel

JP Steel Plantech Co announced in May 2011 that they have successfully concluded, with JFE Shoji Trade Corporation, a contract for equipment supply regarding continuous annealing line of 1,000,000 tonnes and continuous galvanizing line of 400,000 tonnes) with JSW Steel Limited.

These two lines will be installed in JSW Steel’s Vijayanagar Works in Karnataka as part of its planned second cold rolling plant.

The two lines are the first full scale cold rolling process equipment in India for producing steel sheets for automobile bodies, which JSW Steel will introduce for the first time.

JP Steel Plantech will design, manufacture and deliver a set of machinery/electrical instrument equipment for two lines, both of which are to start operation in April 2013.

Source (http://www.steelguru.com/indian_news/JP_Steel_Plantech_to_supply_continuous_annealing_and_galvanizing_line_to_JSW_Steel/210189.html)

Most of these steel plants and other units will materialise only by 2013 :nuts:

JSW Steel to commission 2.8 million tpy blast furnace next week at Vijayanagar (http://www.metalbulletin.com/Article/2853313/Flat-products/JSW-Steel-to-commission-28-million-tpy-blast-furnace-next-week-at-Vijayanagar.html)


India’s JSW Steel will commission its 2.8 million tpy blast furnace by next week at its integrated facility at Vijayanagar in Southern Indian state of Karnataka, company joint md Seshagiri Rao told MB

India’s JSW Steel will commission its 2.8 million-tpy blast furnace by next week at its integrated facility at Vijayanagar, in the southern Indian state of Karnataka, company joint md Seshagiri Rao told MB.

JSW Steel has already commissioned the associated facilities for the blast furnace.
JSW is currently producing at a capacity of close to 6.9 million tpy of crude steel and will reach a capacity of 10 million tpy once the new blast furnace is started.

http://www.deccanheraldepaper.com/pdf/2011/06/01/20110601aA001100006.jpg

Wonder if this will be seamless or will it witness similar protests as in Orissa?

Wonder if this will be seamless or will it witness similar protests as in Orissa?

The problem with Posco's site is that, it is located close to a hill which was recently tagged as a medicinal value hot spot.Also add to it,POSCO ended up last among all other steel makers who signed MOU with the government.So as per first come first serve basis POSCO lost out good lands to its competitors,I guess GOK is basically not interested in POSCO,they have also hit it hard by saying they will not allow POSCO to use water from a reservoir which is close to its land.:lol:

Gadag farmers oppose Posco steel plant unit (http://timesofindia.indiatimes.com/city/bangalore/Gadag-farmers-oppose-Posco-steel-plant-unit/articleshow/8985152.cms)
Vincent D'SouzaVincent D'Souza, TNN | Jun 25, 2011, 05.35am IST
HUBLI: Land acquisition by the Karnataka Industrial Areas Development Board for the proposed steel plant by South Korean steel giant Posco in Gadag district has run into rough weather.

The main reasons for the villagers' opposition are that 3,300 acres identified for the project in Halligudi village off National Highway 63, about 500km from Bangalore, are fertile land and agriculture is the villagers' only source of income. KIADB special land acquisition officer Mahantesh Bilgi said notices have been served on 536 farmers who own over 3,382 acres. About half of them have filed objections.

Y N Goudar, former chairman, Sheep and Wool Development Corporation, is heading the Bhoo Swadheena Prakriye Virodhi Samiti, a committee against land acquisition. He told The Times of India: "Posco is a matter of life and death for the villagers."

The Samiti leader said ever since KIADB issued notices to them, people have become very apprehensive because they know nothing other than agriculture. The Samiti, which held its first round of agitation in Mundargi, plans to intensify it in the near future with a protest in front of the Gadag deputy commissioner's office next month, followed by a march to Bangalore.

http://i54.tinypic.com/23u6as4.jpg
-- Udayavani

Posco's India plans hit new hurdle, now in Karnataka
(http://www.thehindubusinessline.com/companies/article2139652.ece?homepage=true)
Farmers oppose land acquisition for 6 mpta steel plant, 400 MW project

NEW DELHI, JUNE 27:
After Jagatsinghpur in Orissa, Gadag in Karnataka could be the new flashpoint for Posco in India.

Farmers in Halligudi village of the north Karnataka district, close to the Bellary-Hospet iron ore belt, are said to be preparing for a confrontation with the State Government over its move to acquire 3,382 acres for the Korean steel giant.

Posco India Pvt Ltd had, in June 2010, signed an MoU with the Karnataka Government for setting up a six million tonne per annum (mtpa) steel plant and a 400 MW captive power unit at an investment of Rs 32,300 crore. It had asked the State to provide for the required land, which was initially assessed at 5,000 acres before being scaled down to 3,382 acres.

The Karnataka Industrial Area Development Board (KIADB) was mandated to acquire the land identified in Halligudi, which is strategically located on National Highway-63 with access to the Guntakal-Hubli rail link.

KIADB has already issued a preliminary notification and served notices to 536 farmers in the village having a population of 5,000. Notices have also been served to farmers in two nearby villages of Shirur-Jantli and Mevundi, though this land is for other industrial projects.

However, the landowners in these three villages are not keen on selling out and have formed an alliance against the acquisition. As many as 275 farmers of Halligudi have already filed their objections with the KIADB and also submitted two memorandums to the Gadag District Collector. Their cause has also found the backing of the pontiffs of two influential local religious institutions (mutts).

“There's no way to give up that easily. We are going to fight it out,” said Mr S.S. Bevoor, a farmer, who says he would lose 17 acres. Farmers in this rainfed black soil region mainly grow jowar, wheat, bengal gram, green gram, onion and cotton.

“We were till now waiting for the already sanctioned Huligudda-Singatalur lift irrigation project to irrigate our fields. And now all of a sudden, from nowhere, this project has cropped up, threatening to take our livelihoods,” said Mr Siddappa Mudlapur, whose 12 acres fall in the notified area.

The KIADB is scheduled to hear objections to the proposed land acquisition from July 4 at its office in Dharwad, which is about 100 km from Halligudi.

The Karnataka Industries Minister, Mr Murgesh Nirani, was, however, hopeful that the land acquisition will be “smooth” as had been in the case of ArcelorMittal's steel project near Bellary for which the KIADB had only recently acquired about 3,000 acres.

“We are in the process of acquiring one lakh acres for various industrial projects with the farmers' consent. Final notification has been issued for 36,000 acres. Farmers are not opposed to giving up land; what they are seeking is higher compensation,” he claimed. The Korean company, he added, had deposited Rs 120 crore towards initial land acquisition costs and would pay more once the compensation to be paid to farmers was finalised. Posco officials were not available for comment.

Govt to go ahead with Posco plant in Gadag

The Government has no second thoughts about allowing the Posco steel plant to come up in Mundargi taluk of Gadag district, as it is a well-planned project that will not appropriate fertile agricultural land, Industries Minister Murugesh Nirani said on Wednesday.

Fertile agriculture land in Mundaragi will be acquired for the proposed Posco steel plant. DH PhotoThe minister said the farmers’ agitation against the proposed acquisition of land in Mundargi was politically motivated.

As much as 75 per cent of the land meant to be notified for the plant is dry and there is no irrigation facility, he insisted when this newspaper sought his reaction to the simmering discontent among farmers over the project.

Nirani said nearly 3,380 acres were required for the steel plant and the entire land proposed to be acquired, spread across three villages in the taluk, is in private hands, he clarified.

“It will take not less than six months to fix the price for the land. Farmers are not reluctant to part with their land, but they expect a good compensation from the government. The government guidelines say that the land price should be on a par with the market rates. Farmers will eventually get 25 per cent more than the market rate. In addition, suitable jobs will be provided for the family members of those who part with their land,” Nirani said.

Asked whether public hearings have been held before serving notices to farmers directing them to sell their land for the plant, the minister replied in the negative. He said officials of the State Pollution Control Board and the deputy commissioner will conduct hearings only after issuing preliminary notification on land acquisition. Farmers will not be compensated in terms of land but only through cash, he replied to a query.

“There are some complaints that ash generated from the steel plant may affect the medicinal herbs and organic farms coming up in Kappadagudda. There is no such threat because the steel plant will be located at least 25 km from the farmlands,” he said.

To another question, the minister said Posco had deposited Rs 120 crore with the government for land acquisition. The total expected investment by the company is Rs 30,000 crore, he said.

Sources said though the company required 3,300 acres of land, the government, through KIADB, was planning to acquire 5,630 acres of private land in the taluk. Each farmer has been served two notices indicating the government’s intention of purchasing their land for setting up the steel plant, they said.

While the farmers argue that they have been cultivating crops for eight to 10 months in a year, the government claims the land is infertile.

Farmers who have begun agitating are not organised at the moment, but a local JD(S) leader has now taken up their cause.

©DHNS (http://www.deccanherald.com/content/172586/govt-go-ahead-posco-plant.html)

http://img847.imageshack.us/img847/7641/yo134.jpg (http://www.skyscrapercity.com/showthread.php?t=419068)

Tata to take Haveri farmers to Jamshedpur

Basavaraj F Kattimani, TNN | Jun 30, 2011, 11.42pm IST


HUBLI: Even as farmers of Halligudi vilage of Gadag district are up in arms against the government's move to acquire land for the Posco steel plant, the Tata group, which plans to set up its Tata Metaliks plant in Haveri, will take 300 farmers to its Jamshedpur steel plant.

The group will take farmers of Agadi and Budagatti and other villages of Haveri district in batches in August or September so that they can see for themselves its welfare programes for farmers.

"We wanted farmers to know that Tata is not going to destroy their lives but it's helping them by setting up the plant. So, farmers should see what progress we have achieved in villages around our plant in Jameshdpur," S B Kolar, Tata Metaliks adviser for the Haveri project, told TOI.

After the Global Investors' Meet last June, the group was keen to set up its steel plant on 2,500 acres near Haveri. Its plan ran into rough weather when farmers, whose land will be acquired, opposed it and organized protests. A few months ago, KIADB officials failed to convince farmers to part with their land for the plant.

Kolar told TOI: "Haveri farmers can interact with farmers of Jamshedpur to know their views. The Tata group has changed the lives of hundreds of tribal farmers and developed villages by providing education, water, power and other basic needs after setting up the Jamshedpur unit. The group has generated a lot of employment opportunities for farmers' children in Jamshedpur. We expect Haveri farmers to realize this after the visit."

He added: "We won't force anyone to give up their land but we hope farmers will voluntarily give it after realizing we can change their lives for the better."
TOI (http://timesofindia.indiatimes.com/city/bangalore/Tata-to-take-Haveri-farmers-to-Jamshedpur/articleshow/9056194.cms)

ArcelorMittal starts acquiring land in Karnataka

LUXEMBOURG: The world's largest steel-maker ArcelorMittal has made some headway on its projects in India, particularly in Karnataka, where it intends to set up a small mill with a capacity of about 3 million tonnes per annum, a top official of the company said.

"There is some progress... land acquisition has started, licencing process for water is on... so there has been small progress... We are moving ahead step by step and taking smaller steps," a Member of ArcelorMittal's Group Management Board and the Head of its Long Carbon Products division, Michel Wurth, told PTI here.

He, however, refused to comment on how much land has been acquired so far in the iron-ore rich state.

In its quest to set up a steel plant in India, the world's largest steel maker is now banking on Karnataka, where it intends to set up a 6-mtpa steel mill in two phases alongside a captive 750-MW power plant at an estimated investment of Rs 30,000 crore (USD 6.5 billion).

".... More than 4,000 acres of land has already been acquired by the Karnataka Industrial Areas Development Board (KIADB), while we need about 4,500 acres of land. We are waiting to get the possession," a senior company official said.

However, the going has not been so good for ArcelorMittal's big ticket investment plans for two steel mills of 12-mtpa capacity in Jharkhand and Orissa.

The projects, which would have attracted an estimated investment of over USD 10 billion each, are yet to see the light of the day due to land acquisition problems and regulatory hurdles. The company even had to shift the site of the proposed project to Bokaro, in Jharkhand, from Khunti-Gumla.

"You should ask Indian authorities... We want to invest, but the process is extremely lengthy," Wurth said when asked about the proposed 12-mtpa steel mills of the company in Jharkhand and Orissa.

He added, "At the beginning, we thought of having big projects, but it is extremely difficult to get all authorisations at one place. Now we are focusing on smaller projects in different states... The progress is not the way as we would have liked."

According to its annual report for 2010, ArcelorMittal has shifted its focus in the country to setting up smaller plants due to implementation challenges associated with large greenfield projects in India.

"The company in the medium term intends to take a modular approach and also evaluate smaller projects in various Indian states, with potential individual investments estimated in the USD 1.5 to USD 3.0 billion range," the report said.


ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals-mining/arcelormittal-starts-acquiring-land-in-karnataka/articleshow/9064017.cms)

'Land acquisition for ArcelorMittal, Posco plants on track'

BANGALORE, JULY 1:
The Rs 32,000-crore ArcelorMittal integrated steel project being set up in Karnataka seems to be on track with the State Government acquiring about half of the 4,000 acres for the 6-million-tonne plant without any hitch.

The Government has also decided to go ahead with the Rs 32,000-crore Posco integrated steel project. The Government said it will protect the interest of farmers who agree to give away the land for the plant and may even increase the compensation amount, if required.

The State Industries Minister, Mr Murgesh R. Nirani, told Business Line that ArcelorMittal had deposited with the Government about Rs 700 crore towards land acquisition in Bellary district, north Karnataka, where it is setting up the plant.

The compensation was divided into three slabs for the farmers who gave away land. Those farmers whose land was in the interior got about Rs 8 lakh an acre, and those whose land was closer to the highway received about Rs 12 lakh and those whose land was adjoining the highway received about Rs 16 lakh. The Minister claimed that there was no hitch in acquiring the land for the project. A total of 1,600 farmers were identified for acquisition of land.

The mining lease issue for both the steel projects has also been resolved with the Government taking a decision to give only half the installed capacity of each of the steel plants while for the rest, they will have to source it from the private sector.

POSCO PLANT

Mr Nirani said even for the South Korea-based Posco which is setting up the plant in Gadag district, preliminary hearing for acquisition of 3,382 acres will take place within six months. “Most of the farmers whose land has been identified for acquisition are keen (to give away land) because of the benefits they will receive,” Mr Nirani said. He said nearly 75 per cent of the total land for the project is dry. Hence, he claimed, farmers are not opposed to offering their land. “Farmers are going to get jobs apart from the huge compensation for offering their land,” he pointed out. Posco has deposited Rs 60 crore towards acquisition of the land.

WATER FROM ALMATTI DAM

The State has also decided to give water from the Krishna Basin near the Almatti dam for the ArcelorMittal project. It has agreed to give about 40 MLD a year for the project but most of it would be from the overflow of water from the basin.

THBL (http://www.thehindubusinessline.com/companies/article2150460.ece?homepage=true)

Posco could run into water trouble too

BANGALORE: Did South Korean steel major Posco err in locating its Rs 36,000-crore steel plant in Gadag?

It appears so going by the ongoing resistance from farmers in Halligudi over land acquisition and the possibility of resentment among farmers along the Krishna basin in north Karnataka over water allotment for industries.

This was apparent following a recent meeting of Posco land acquisition struggle committee office-bearers who plan to meet various farmers' leader in Bijapur, Bagalkot and Gulbarga districts through which the Krishna flows to take up their cause too.

According to Karnataka Industrial Areas Development Board ( KIADB) officials, Posco chose to set up the plant in Halligudi, hoping the government would allot water from the Tungabhadra, about 100km away, in Bellary district. But the government turned down the proposal citing possible inter-state ramifications since water from the Tungabhadra reservoir is shared both by Karnataka and Andhra Pradesh.

To stop the company from withdrawing its investment, the government has assured Posco it will allot water from the Almatti dam, about 150km from Halligudi. But drawing water from this dam is easier said than done. This was evident in state water resources minister Basavaraj Bommai's statement: "We have already exceeded the limit of 5tmcft allocated by irrigation consultative committee for industrial use.''

Moreover, a new rule of the Central Water Commission (CWC) stipulates that water from dams built for irrigation cannot be used for industries. Almatti and Narayanapura dams under Krishna and Tungabhadra reservoir are built exclusively for irrigation.

Echoing similar views, industries minister Murugesh R Nirani said: "We have to find new ways to allot water to industries if the state has to progress. We are working on all possibilities. Creating small lakes in the vicinity of the dam to store excess water from Almatti dam at company cost is one such method."

Posco struggle committee leader Y N Goudar disagreed: "Why is the state government spending a huge amount of money for construction of a dam for irrigation when river water was to be given for industrial use?'

©Times of India (http://timesofindia.indiatimes.com/city/bangalore/Posco-could-run-into-water-trouble-too/articleshow/9069017.cms)


http://img847.imageshack.us/img847/7641/yo134.jpg (http://www.skyscrapercity.com/showthread.php?t=419068)

JSW Steel to halt expansion of Vijayanagar unit (http://www.business-standard.com/india/news/jsw-steel-to-halt-expansionvijayanagar-unit-/442014/)

BS Reporter / Bangalore July 8, 2011, 0:31 IST

JSW Steel will not go ahead with its proposed expansion plans at its Vijayanagar (Bellary) unit until it receives approval for captive iron ore mine in Karnataka. :doh:

It had earlier evinced interest to expand the capacity of the Vijayanagar facility to 16 million tonnes (mt) from 10 mt.

Vinod Nowal, chief executive officer and director of the company, said, “We will not expand the capacity to 16 mt until there is a captive iron ore source available to us.” He was speaking to reporters on the sidelines of a seminar organised by the Bangalore Chambers of Commerce and Industry here.
The Supreme Court yesterday refused to entertain a plea of the company to direct the Karnataka government to lease a captive mine for the plant. The court was not convinced by JSW’s submission that it made an investment of Rs 10,000 crore by setting a steel plant on the assurances of the state government that a captive mine would be allotted to it. It, however, allowed the company to appeal in the Karnataka High Court with its grievances.

“Our legal department is examining the case and we will appeal in the high court,” he said. Despite operating a 10-mt steel plant in Karnataka, the company doesn’t have any captive iron ore source in the state. It is procuring iron ore from Orissa, Chhattisgarh and Jharkhand to feed the plant. Nowal said the supply situation with respect to iron ore was tight and the company had stocks for 10 days only.

It reported a 29.8 per cent growth in net profit at Rs 793.6 crore for the fourth quarter of the last financial year. Net sales rose 32.5 per cent to Rs 7,209.3 crore from Rs 5,441.3 crore in the previous corresponding period.

Fucking central govt is responsible for this

KIOCL to invest Rs 452 cr on coke oven battery plant

BS Reporter / Chennai/ Bangalore July 13, 2011, 0:36 IST

The KIOCL Ltd, the public sector exporter of iron ore and pellets, is planning to set up a 300,000 tonnes per annum coke oven plant through a non-recovery route with 25 Mw captive power plant at a cost of Rs 452 crore in Mangalore.

“The board of directors has approved the proposal to set up the new plant at our blast furnace unit in Mangalore. The project is intended mainly for supply of low ash metallurgical coke for the existing blast furnace and the surplus coke would be sold in the market,” K Ranganath, chairman and managing director, KIOCL said.

The project also envisages generation of 25 Mw electricity by utilising the sensible heat of hot flue gases from the ovens. The part power generated would be consumed in blast furnace and the balance in the adjacent pellet plant. Surplus power, as available, if any, will be wheeled to the grid depending upon the comparative advantages, he said in his address to the annual general meeting, here today.
The cost of the project will be funded with a debt : equity ratio of 1:2. KIOCL has already initiated the action for getting the necessary clearances from the ministry of environment and forests (MoEF) and KSPCB for the project. Parallely, action is being taken for the appointment of a consultant for providing engineering services for the project.

He said the KIOCL board has also agreed in principle to the formation of a joint venture between KIOCL and RINL towards setting up a ductile iron spun pipe (DISP) plant and oxygen plant among others under forward and backward integration in blast furnace unit.

“A detailed project report for setting up of DISP plant of 100,000 tonnes per annum capacity to produce pipes of sizes ranging from 100 mm dia to 1,000 mm dia. at our blast furnace unit has been prepared by Mecon Ltd and the same will be placed before the KIOCL Board in the forthcoming meeting for approval and implementation,” Ranganath said.

As per the DPR and the market study report, there is good market potential for this value-added products. KIOCL has to implement the same on a fast track basis in order to reap the benefits. Statutory approvals are in place for the project.

To facilitate the movement of inward goods for the plants without any problems, the company is proposing to set up bulk material handling and permanent railway siding system at Mangalore for a capital investment of Rs 303 crore. Land required for the said projects has already been acquired and registered in the name of KIOCL Ltd.

The company has already obtained necessary clearances from the MoEF and Karnataka State Pollution Control Board for the project. However, the board’s approval is awaited for the project, he said.

For year-ended March 31, 2011, KIOCL has reported a net profit of Rs 76.2 crore, showing a year-on-year growth of 143 per cent on a turnover of Rs 1,803.46 crore, a year-on-year growth of 81.67 per cent.

http://www.business-standard.com/india/news/kiocl-to-invest-rs-452-crcoke-oven-battery-plant/442483/

http://www.deccanheraldepaper.com/pdf/2011/07/14/20110714aA001100004.jpg

http://www.deccanheraldepaper.com/pdf/2011/07/14/20110714a_007100005.jpg

INVESTMENTS IN IRON SECTOR

Smooth run for ArcelorMittal

It’s A Victory For Halligudi Farmers Even As Other MNCs Continue To Acquire Lands In Karnataka First Company To Get Off The Block In State
Anil Kumar M | TNN

Bangalore: While the South Korean steel giant Posco is facing hurdles in Karnataka, Lakshmi Nivas-owned ArcelorMittal is quietly making progress in the state. More than 50% of the land acquisition process has been complete.

ArcelorMittal, the world’s largest steel producer which plans to set up a 6 million tonne per annum (MTPA) plant at Kuduthini and Haraginadoni villages in Bellary district with an estimated investment of Rs 30,000 crore, has completed acquisition of more than 2,200 acres of the required over 5,000 acres. “By God’s grace, land acquisition process has been smooth and is more than 50% complete. Farmers are coming forward to accept the compensation for their land. Once we reach about 60%, the firm will get into building the layout plan,’’ ArcelorMittal representative told TOI.

Initially, some farmer groups in Bellary had opposed land acquisition as they were seeking compensation higher than what was fixed by the state government. “Now, the government has fixed compensation in three slabs — Rs 8 lakh, Rs 12 lakh and Rs 16 lakh per acre. The response from the land owners is overwhelming,’’ a senior Karnataka Industrial Areas Development Board (KIADB) official said. The steel company has deposited over Rs 267 crore with KIADB towards compensation.
When the company entered into an agreement with industries department during the Global Investors’ Meet (GIM) last year, it needed 4,864 acres of land. As the firm is planning to build its own railway network to transport iron ore from the mining site to the plant, the company now has sought additional 324 acres land. On the progress from the Union government front, ArcelorMittal has obtained terms of reference from environment and forest ministry and the firm has commissioned environmental impact study. “This study would take nearly a year. Later it has to be submitted to the ministry,’’ spokesperson of the company said.

CAPTIVE MINES

While the land acquisition process has been smooth, ArcelorMittal is facing the problem of captive mines. The director of mines and geology had recommended to the Union government to grant iron ore mining lease in an area of 211 hectares in Donimalai range in Bellary district, but the company after preliminary survey found that deposits available in the range were of inferior quality. “We have sought for allotment of alternative mines in Ramadurg range. The hearing is over and the company is awaiting government’s nod,’’ the company spokesperson said.

JV FOR THERMAL PLANT

ArcelorMittal proposes to have joint venture with Karnataka Power Corporation (KPC) to establish 700 MW of thermal power plant in Kuduthini village. “While the company wishes to utilize 350 MW of power, the rest will be given to the corporation,’’ the spokesperson said.

TOI

POSCO

Government itself can initiate one acre to three acres exchange programme. (Three land for one land compensation scheme.) I have seen in a TV news many women protesting against the land acquisition saying that as far as land is with them they can make some livelihood by working in field but, once land is acquired their husbands will use all compensation money for purchasing alcohol. So my suggestion is to transfer the extra two acres of land in wives' name. A few of NGOs working in women welfare area can help government to accomplish this task ensuring that land in compensation is not totally barren and inaccessible. In addition, the evacuees should get proper houses as compensation instead of money.

Along with this environmental clauses are also important. As per my notion Tata Steel is doing good job of protecting environment wherever they mine or put up steel plants. So may be Mittal but, they should do it in India also. I am not sure on Posco culture of protecting environment.

Posco's Karnataka steel plant plans in doldrums (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/poscos-karnataka-steel-plant-plans-in-doldrums/articleshow/9223657.cms)

BANGALORE: South Korean giant Posco's plan to set up a six million tonnes per annum steel plant in Karnataka is in doldrums with the state government dropping plans to acquire land, in the face of opposition from farmers and religious leaders.

"Even if the farmers agree to give land, we will not acquire it in Gadag district," Chief Minister B.S. Yeddyurappa told reporters Thursday.

"If Posco is interested in setting up the plant elsewhere in the state and if farmers willingly give their land, we will give in to the company," he said.

Yeddyurappa had announced late Wednesday that land will not be acquired in north Karnataka's Gadag, about 400 km from here.

After Gadag was chosen as the preferred site, the firm had deposited Rs.60 crore with the Karnataka Industrial Area Development Board (KIADB) to start the land acquisition process.

The KIADB had identified over 3,000 acres in and around Halligudi in Gadag and had sent notices to land owners, most of them farmers, for acquisition.

However, with a number of farmers opposing takeover of their land, three religious leaders, including Sri Siddhalinga Swami of Thontada Math (religious institution), joined their protests and warned Yeddyurappa of state-wide agitation if the move was not given up.

The Congress and Janata Dal-Secular had also joined the protest by Gadag farmers. Besides Gadag district, Posco had identified Bagalkot and Bijapur districts of north Karnataka, as potential sites for its plant in which it proposed to invest around Rs.30,000 crore.

Farmers in Bagalkot and Bijapur are also likely not to give up their land as religious leaders like Sri Siddhalinga Swami are urging farmers to oppose the acquisition.

The religious leaders are demanding that the government take over only barren land unfit for agriculture to set up industries.

The chief minister Tuesday dropped plans to acquire over 2,000 acres of land for a special economic zone in the coastal town of Mangalore after Sri Vishwesha Tirtha Swami of Pejawar Math threatened indefinite fast. Pejawar Math is in Udupi, 350 km away from Bangalore.

Only Bellary is fit for steel industries.But with Arcellor,Jindal,NMDC plants bellary will become overcrowded :nuts:

Karnataka Ferro Concentrates to invest in Bellary


Karnataka Ferro Concentrates is investing Rs 225 core for setting up of 1 million tonne per annum iron ore pelletisation plant in Sandur taluk of Bellary district.

BS (http://www.business-standard.com/india/news/state-clears-28-proposalsrs-8622-cr-investment/442721/)

New site for Posco project in a week: CM

The Posco steel plant is out of Gadag district, but not out of Karnataka, with Chief Minister B S Yeddyurappa on Thursday announcing that the new location for the plant sought by the company will be announced in a week.

Faced with opposition from farmers and a number of Liingayat mutt heads in Gadag district, for the Rs 32,000-crore steel project, Yeddyurappa a day earlier had announced that there will be no forcible acquisition of land from farmers in Gadag.

He had also directed the deputy commissioner of Gadag to stop land acquisition process.
Speaking to reporters in Bangalore after a ‘curtain raiser’ function for Global Investors Meet 2012, the Chief Minister reiterated that the Korean steel major will not get land in Gadag.

“There is no rethink on Gadag. Following protest from farmers, we have put a full-stop. The government will relocate the project (Posco) elsewhere, where farmers voluntarily give land. Even if farmers of Gadag come forward to give land, the plant will not come up in that district”.

The chief minister said the company has sought a new location for setting up their steel plant. “We are searching and will be announcing the new location in a week’s time”, he said.

Industries Minister Murugesh Nirani had recently stated that if not Gadag, then land will be provided either in Bagalkot, Bijapur or Dharwad district.

Earlier in the day, Yeddyurappa, at a separate venue, said, “We are not going to acquire land unless all the 3,000 farmers and the seers agree. The farmers and seers must reach a consensus first,” said Yeddyurappa at his home office “Krishna.”

For the past few days Gadag district is resembling a political battlefield with farmers launching an agitation to fight against government’s attempt to acquire farmland for the steel plant. The issue took a political twist with former chief minister and JD(S) leader H D Kumaraswamy lending support to the anti-Posco movement.

Indirectly attacking Kumaraswamy, Yeddyurappa said he had not acquired land for setting up any resort.

“I have not acquired land for Eagleton resort project near Bidadi as done by a previous government,” Yeddyurappa said.

© DHNS (http://www.deccanherald.com/content/176220/site-posco-project-week-cm.html)

JSW Steel to become largest steel makers in India soon

JSW Steel is set to become the biggest steel maker in the country surpassing state owned Steel Authority of India Ltd by this month end after a key blast furnace is commissioned at its Vijayanagar of Karnataka, plant.

The company has already fired up the fourth blast furnace which will increase the capacity of the plant by 3.2 million tonne per annum to 10 million tonne per annum. Full scale production will begin by this month end.

A company spokesman said that “The blast furnace is not yet commissioned. Once it is done, we will make a formal announcement.”

The expansion will increase the total capacity of JSW to 14.3 million tonne per annum ahead of 14 million tonne per annum of SAIL. JSW has 1 million tonne per annum capacity at Salem and 3.3 million tonne per annum through its acquisition of Ispat Industries in December 2010, where the company owns up to 45%.

DNA (http://www.steelguru.com/indian_news/JSW_Steel_to_become_largest_steel_makers_in_India_soon/214745.html)

Indian steelmaker JSW Steel is progressing with plans to produce automotive-grade sheet at its Vijayanagar works in the southern state of Karnataka. The firm has begun supplying samples of cold rolled coils to domestic automakers.

MUMBAI | NEW DELHI | BANGALORE: The Supreme Court's exasperation with the Karnataka government's response to the fast-spreadingmining scandal turned into outright anger on Friday with the court banning all mining across the iron ore-richBellary region.
The ban will be effective in Bellary, nearby Hospet and Sandur, a region accounting for a third of the iron ore produced in India. Production of about 25 million tonnes of steel across the country is expected to be affected, including operations at JSW, India's biggest private sector steel firm.

Companies are likely to either cut production, or scramble to find iron ore from other parts of the country, knocking down margins and profitability. India's steel production, which lags behind that of China and Russia, is also likely to be affected.

"We are of the view that the mining of iron ore in Bellary be suspended immediately till further orders," a special bench headed by chief justice SH Kapadia said. The order is expected to put enormous pressure on the beleaguered Karnataka government to act swiftly and decisively against rampant illegal mining.

Just two days ago, the Karnataka Lokayukta, a quasi-judicial body, issued a report laying bare the activities of businessmen and politicians indulging in illegal mining. The report called for the prosecution of chief minister BS Yeddyurappa and the sacking of some ministers from the state cabinet.

The court has been consistently taking a tough stance against illegal mining in Bellary. In May this year, it asked the central empowered committee, an arm of the forest bench of the court tackling environmental issues, to examine the illegal mining and submit a report. Friday's order was based on the committee's findings.

Steelmakers Stunned

Steelmakers, who depend on ore from these areas, have been left stunned. "The worst has happened," JSW joint managing director Seshagiri Rao told ET. "Today the options for us are limited. Since iron ore for steelmaking is not replaceable by any other mineral, we are working on supplies from alternative arrangements."

JSW shares fell 5.5% to Rs 774.20. On Thursday, the stocks had fallen 5% after the Lokayukta accused them of paying bribes to the family of chief minister Yeddyurappa in return for government favours.

The ban is expected to affect about 100 iron ore mining leases but mining from 45 of these leases had already been banned by the court through an earlier order.

Companies that will be affected include JSW Steel, which recently expanded its capacity to 10 million tones, making it India's largest by capacity. Others such asKalyani Steel,Jindal Saw,Tata Metaliks,Kirloskar Ferrous Industries will also be hit.
The Bellary district contributes close to 80% of the total iron ore output from Karnataka. The state's annual output of iron ore is around 45 million tonnes with around 70-75% of it being exported. About 6-6.5 lakh are employed by the industry.

Earlier, before making arrangements from Chitradurga and Tumkur,JSW Steel CEO Vinod Nowal had said the company's daily iron ore requirements was 53,000 tonnes. Since the company has stock of 150,000 tonnes, operations at the plant could be stopped.

The same was the situation at Tata Metaliks, India's largest producer of foundry grade pig iron which supplies to automobile and engineering companies. "Abrupt closure of mining in Bellary will result in complete stoppage of production at the plant," vice-president Sudhin Mitter had written in a representation to central empowered committee chairman PV Jayakrishnan.

The situation is likely to impact steel production from India. In the first half of 2011, production totalled 35.636 million tonnes, which is a tenth of China's production for the same period. India's steel production in the first six months, according to figures released by the World Steel Association, increased by 4.8% to 35.636 million tonnes from 33.994 mt in the corresponding period of 2010. China grew 9.6% to 350.543 mt in the same period.

India has already lost its fourth place to Russia. During 2010, India was the fourth-largest producer which was again a fall from the position in 2009 when it was the third-largest producer.

India's steel secretary said that the government has received a copy of the order. "The court has asked for the steelmaker's requirement and we will be providing that to the ministry of environment and forest. TheSupreme Court has said it will take into consideration the requirements of the steelmaker," P K Misra, said.

"The situation will lead to a cut in production as availability of ore will be restricted," said Abhisar Jain, a steel analyst with Centrum Broking. "The ban will result in just 10-15 million tonnes of iron ore from Karnataka, which will not be sufficient to meet steel production," he added.

According to the Lokayukta report, which was released on July 28, 29 million tonne of illicit iron ore, valued at Rs 12,200 crore, was exported between 2006-07 and 2010. The report further states that, out of the five financial years (between 2006 and 2010), the highest quantity of exports of illicit iron ore was in 2009-10, which is approximately 12.7 million tonnes.

JSW Steel cuts Vijayanagar production by up to 40%

JSW Steel today said it has cut its productions from its Vijayanagar plant in Karnataka's Bellary district by 35-40% due to paucity of iron ore, a key steel making raw material.

"We have reduced our steel production from Vijayanagar by about 35-40% as we don't have much iron ore inventory left," Sajjan Jindal-led JSW Steel's Joint Managing Director MVS Seshagiri Rao told PTI.

http://www.moneycontrol.com/news/business/jsw-steel-cuts-vijayanagar-production-byto-40_572288.html


Centre to plead to SC against blanket ban on Bellary mining

The Centre is likely to plead before the Supreme Court that there should not be a blanket ban on iron ore mining in Bellary in Karnataka and that only the violating companies should be dealt with, when it presents its interim report this week.

This view emerged at today's inter-ministerial meeting, where Secretaries in the ministries of Environment and Steel were also present, a mines ministry official said.

While imposing blanket ban on iron ore mining in Bellary last week, the Apex Court has also asked the Environment Ministry to come out with an interim report by friday on the requirement of the iron ore for the domestic steel industry.

The government will present a fact sheet to the apex court at the next hearing scheduled on Friday, where-in it would argue that a blanket ban on iron ore mining would lead to closure of several steel mills, including those in the SME sectors, in the area, the official added.

"Cost of transporting iron ore will be too much for the smaller players Kalyani Steel , Mukund Steel and Kirloskar Ferrous ," the official further said, adding, "Karnataka has 16 steel companies of different scales and minus JSW Steel , no one can survive if the ban continues for more than 15 days.

Moreover, there will be a question mark on JSW sustaining the regular production levels, if the bans continues beyond Friday, the official said, adding that the government has not yet been informed about its inventory levels.

Besides this, several sponge and pig iron mills and allied industries in Bellary, Koppal, Chitradurga and Tumkur regions may have to shut down their businesses due to heavy reliance on Bellary's iron ore, the official further said.

The report was to be prepared in consultation with other concerned ministries like mines, steel and commerce.

However, for the record, Steel Secretary P K Misra, who was part of today's inter-ministerial deliberations on the issue, said "we will put forward whatever facts the Supreme Court has asked for".

He added that the Apex Court is aware of the problems faced by the local steel manufacturers and could soon take a decision.

"As you see the order of the Supreme Court, it is going to consider all these issues," Misra said.

Unlike JSW, which has its main plant in the vicinity of Bellary, other top producers like SAIL , Tata Steel and Essar Steel are unlikely to get impacted with the ban, industry sources said, adding that their iron ore requirements are met from other sources.

http://www.moneycontrol.com/news/current-affairs/centre-to-plead-to-sc-against-blanket-banbellary-mining_572097.html

Bangalore/Mangalore: While politicians allowed mining licences to private enterprises and individual companies, they denied permission to Karnataka government-owned Kudremukh Iron Ore Company Limited (KIOCL). The mini-ratna firm, after expiry of its licence in 2005, had applied six times seeking mining lease in one of three places — Hospet, Sandur or Bellary. Former KIOCL executives say the Mangalore-based company's request was rejected as it could not grease the palms of greedy politicians.

"We started applying for lease in Hospet, Sandhur and Bellary in Ramanadurga range in 1999 as we knew that the mining would come to an end in Kudremukh range in 2005. There was a big block of ore in Ramanadurga range in Sandhur but the government had not given us the permission as a result the company lost its captive mines," said a former executive of KIOCL.

KIOCL carried out mining in Kudremukh in Aroli range of Western Ghats from 1975 to 2005 under licence from the central government, spending no amount towards transport. Mining began as a result of an MoU between India and Iran.

It was the first steel company in India and was the first in the world to transport ore in a pipeline in slurry form, fully utilising the elevation of the Western Ghats.

"The government went head over heels to clear the private companies to mine by opening a single-window system for them, while they closed the doors for KIOCL. Our unions BMS, HMS and INTUC fought tooth and nail with the government. But nothing moved the government as a result over 60% of the workforce moved out of KIOCL either on voluntary retirement or on resignation. Today, the mini-ratna company is fully dependent on the morsels thrown by the National Mineral Development Corporation based in Hyderabad," said the ex-KIOCL executive.

Union leader of the company said politicians could not satisfy as the firm was owned by the government. A former of KIOCL, N Nagaraj, who now works with a private company in Bellary, said that mining operation in government sector was minimised and private operators given the control as it would turn out to be new cash machine for the political parties.

"I remember, all these politicians named in the Lokayukta report wanted the KIOCL mining operations to be closed and later lobbied with the government to allow private enterprises to mine in Hospet, Bellary and Sandur," said Nagaraj.

"There were environmental concerns also in the mining sites in Aroli range like Gangamoola and Gangadikal. Environmental activists had raised a hue and cry about the impact on environment from mining in Kudremukh. But that is not the reason why the government stopped mining there. It was done to benefit the private sector," he said.

dailybhaskar (http://daily.bhaskar.com/article/BAN-revealed-how-private-companies-took-control-of-mining-2329245.html)

Tata Steel to move forward with Karnataka project (http://www.thehindu.com/business/companies/article2328380.ece)

Notwithstanding the turmoil in Karnataka over the iron ore issue, Tata Steel will move forward with its proposed investment in the State which it is jointly implementing with Tata Metaliks, a subsidiary.

Stating this while addressing a pressmeet, Tata Steel Managing Director H. M. Nerurkar said that it was also unfortunate that those who followed the law of the land suffered due to the misdeeds of some bad elements.

The Tatas plan to set up a three million tonne integrated steel plant in Haveri district in the Bellary-Hospet iron ore belt. The project's estimated investment is Rs.6,000 crore and it would need 2,500 acres. The MoU for the project was signed in June 2010.

Mr. Nerurkar said that land had already been identified and iron ore linkage was being awaited. “We have been promised iron ore,” he said adding “as soon as things are formalised we will move ahead as we feel Karnataka has potential”. On another proposed greenfield expansion, he said that the 6-million tonne Orissa project was progressing well and equipment were in place. The company is expecting to get additional iron ore mines for this project which would come up in two phases. The first phase is expected to be commissioned by 2013-14.

He said that the company was investing Rs.8,000 crore in 2011-12 in Jamshedpur where crude steel capacity was being increased from 6.8 million tonnes to 9.7 million tonnes. Mr. Nerurkar regretted that new capacity plans were getting tied down saying that even if growth rates were estimated conservatively at around 7 per cent annually, steel demand would grow at 9 per cent and India would become an importer of steel. He expected prices to increase by around Rs.1,000 a tonne within the next six months.

He said that the funds raised from Riversdale would be utilised for the capital expenditure plans. On raw materials issues, he said that efforts were on to reduce consumption of critical items such as coking coal through improved technologies. The direct shipping ore project in Canada (New Millennium Steel Capital Corporation) will yield around four million tonnes annually by march 2014.

Iron ore mining ban: Auto parts sector fears raw material shortage

CHENNAI, AUG. 7:
The auto components industry fears that a crisis situation might emerge in terms of raw material shortage as a consequence of the iron ore mining ban in Karnataka.

Cylinder blocks and cylinder heads that form the bulk of automobile engines are made in foundries whose key raw material is pig iron. Three large pig iron manufacturers, Tata Metaliks, Kirloskar Ferrous Industries and Sesa Goa, are fed by ore from Karnataka.

The automotive industry needs 150,000 to 200,000 tonnes of pig iron a month, says Mr Srivats Ram, President, Automotive Components Manufacturers Association (ACMA). This translates to about 3 million tonnes of ore a year.

Major (casting) companies have raw material stocks that would last till the end of the month, Mr Ram told Business Line. From next month, the situation would turn critical if the shortage of ore continues.

BASIS OF THE BAN

Mr R. Seshasayee, Chairman, Hinduja Foundries Ltd, the country's largest castings company, says that the industry can understand the basis of the ban.

To first determine who is mining illegally and who is not, might be time consuming and therefore a blanket ban is well founded.

However, this welcome step must be followed with quick action in terms of allowing those who are not violating the law to go ahead with mining, he said.

Pointing out that the castings industry was already facing hurdles, mainly in terms of slowdown in the automobile industry, Mr Seshasayee said, any shortage of raw material would “exacerbate the problem”.

Mr Srivats Ram said that it would help a little if the 5 per cent import duty on pig iron is removed, but stressed that it would not solve the problem.

Meanwhile, the industry is studying other options, in case there is no change in status quo.

To what extent can the public sector NMDC – the only company allowed to mine iron ore in Karnataka – come the industry's aid? Is steel scrap an option?

Source (http://www.thehindubusinessline.com/industry-and-economy/economy/article2333931.ece?homepage=true)

Mines closure in Karnataka may force JSW, Tatas to halt work

KOLKATA | MUMBAI: Last week, when Sesa Goa, India's largest iron ore exporter, cut its revenue guidance for the current fiscal year due to tight ore supply from Karnataka, it spoke volumes about production problem at one of the largest mineral producing states of the country.

Karnataka, which accounts for a third of India's iron ore output, had to suspend operations in about 50 mines affecting supplies to a host of steelmakers and prompting large players such as JSW Steel and Tata Metaliks to consider a stoppage in production.

The shuttering of the mines followed a survey by a court-appointed panel that found most of these mines, owned by private owners, operating without clear boundary sites, encroaching on forest land and dumping mineral waste outside their mines. This was in addition to an earlier directive by the state government to ban exports.

The closure has led to uncertainity about supplies of about 40 million tonnes of iron ore that comes from the region. Karnataka supplies iron ore to several steel plants such as JSW Steel, Tata Metaliks, Jindal Saw, Kirloskar Ferrous Industries and Kalyani Steel. In his representation to the Karnataka government, JSW Steel CEO Vinod Nowal said that as the company's daily iron ore requirements is 53,000 tonnes and the company has stock of only 150,000 tonnes, operations at the plant could likely be stopped.

Tata Metaliks, the largest producer of foundry grade pig iron which supplies to automobile and engineering companies, said the closure notices issued by the department of mines and geology is ultra vires the Supreme Court order dated May 6, 2011, which did not stipulate stoppage of mining activities. "Iron ore has no substitute for the production of pig iron and our stock level will last for a very short period. The abrupt closure of mining in Bellary will result in complete stoppage of production at the plant," vicepresident Sudhin Mitter wrote to Central Empowered Committee chairman PV Jayakrishnan.

According to the Federation of Indian Mineral Industries, iron ore shipments from India, the world's third-largest exporter of the mineral, will fall to 64 million tones in the current fiscal year. Karnataka has 9 billion tonnes of reserves accounting for nearly 38% of India's deposits. The crackdown on illegal mining has come at a time when Karnataka has emerged as a much sought-after location for major global steel sector companies planning to make inroads into India.

The world's largest steelmaker ArcelorMittal and South Korea's Posco, which have faced delays in the progress of their greenfield projects in other states, have been considering Karnataka due to its pro-industrial policies. Several medium-size companies such as Adhunik Metaliks and Varun Industries too have laid out plans to set up steel and pig iron plants in the state. According to an Assocham report the Indian steel industry has invested about .`70,000 crore based on supplies of ore from the Bellary-Hospet region.

The tight supplies of iron ore have already led to a steep rise in the prices of iron ore. This will put a pressure on the margins of the steel and consumer goods companies which are grappling with expensive coking coal, another key element for steelmaking.

Source (http://articles.economictimes.indiatimes.com/2011-07-25/news/29812644_1_iron-ore-indian-mineral-industries-crackdown-on-illegal-mining)

:ohno:

Muralidhara Khajane

Findings called the situation in Bellary ‘alarming'

http://www.thehindu.com/multimedia/dynamic/00750/08bg06bgkpm_CEC-REC_750441e.jpg
Annual production in the mining belt increased to 44.39 million tonnes in 2008-09 from 12.4 million tonnes at the time of the NEERI study. — file photo

The apathy of the State Government in implementing the recommendations of the National Environmental Engineering Research Institute (NEERI) in 2004, resulted in degradation of the environment due to illegal mining in Bellary.

The Central Empowered Committee (CEC), constituted by the Supreme Court to investigate illegal mining in the State, in its report submitted on July 28, blamed successive governments for the havoc wrought by illegal mining in Bellary.

Ban on mining

The CEC report, based on which the Supreme Court imposed a ban on mining in Bellary district, noted that the Ministry of Environment and Forests (MoEF) in April 2001 decided that no fresh iron mining leases or renewals would be granted in Bellary and Hospet region till the State got a detailed Environmental Impact Assessment (EIA) study done for the entire region, and a master plan for systematic and scientific mining was prepared. The Government asked the NEERI to undertake a regional EIA study for preparing an effective Environmental Management Plan (EMP) in August 2001, and the institute submitted a report in April 2004.

However, the recommendations made in the NEERI report were not implemented, and in the meantime ecology was damaged due to reckless mining. The annual production in the area increased to 44.39 million tonnes in 2008-09 compared to 12.4 million tonnes at the time of the NEERI study.

The NEERI report said that the situation was alarming and called for immediate radical remedial measures. More importantly, compared to the economic loss that has been pegged at Rs. 16,085 crore, the damage to the environment was huge. Of the total forest area, only 8 per cent of the recorded such area had a moderately dense forest cover, while 92 per cent was either degraded or there was no forest cover at all, the report added.

The report recommended that “irrespective of any other corrective and punitive measures, it is imperative that immediate effective steps are taken for the reclamation and the rehabilitation of the area found under illegal mining outside the sanctioned lease area and till then the mining operation in such areas, including the transportation of minerals should continue to remain suspended”.

Recommendations

The CEC recommended the setting up of a high-powered committee to prepare a master plan for iron ore mining in Bellary in view of the “disturbing and most unsatisfactory state of affairs” in the district.

It recommended that the committee be headed by Deepak Sharma, Additional Chief Conservator of Forests; U.V. Singh, Chief Conservator of Forests, as a member; and H.R. Srinivas, Director, Department of Mines and Geology, as member-secretary.

• NEERI was asked to take up a study to prepare an Environmental Management Plan

• Report recommended ‘immediate steps for reclamation of area under illegal mining'

The Hindu (http://www.thehindu.com/todays-paper/tp-national/article2345130.ece)

What about arcelor mittal,bhushan steels plans in bellary,will these projects be abandoned..?

What about arcelor mittal,bhushan steels plans in bellary,will these projects be abandoned..?

Mittal plant is going ahead smoothly.Bushan was to get land near bear sanctuary which is scrapped for now.

Posco plant in Gadag not a closed chapter

Mahesh Kulkarni / Bangalore August 17, 2011, 0:18 IST
The Karnataka government is still looking at acquiring land in Halligudi village of Gadag district for South Korean steel maker Posco’s proposed Rs 32,300-crore plant. Last month it had said it would not acquire land forcibly to set up the plant.

“The government is still open to acquiring land at Halligudi for Posco plant, as majority of farmers are ready to sell their land,” said Murugesh R Nirani, large and medium industries minister.

“We have received consent letters on bond paper from around 80 per cent of families identified for land acquisition. They are ready to sell their land, while the heads of religious mutts in the district have opposed. We have only said their land will not be acquired forcibly,” he said, adding If Posco wanted an alternative site, the government would be happy to give it elsewhere.
A senior company director from South Korea is visiting Bangalore on August 23 to hold talks with chief minister D V Sadananda Gowda. The government would also talk to the pontiffs of Tontadarya and Annadaneshwar Mutts, who were against land acquisition in Halligudi, before taking a final decision, he said.

The Karnataka Industrial Areas Development Board (KIADB) has identified 3,382 acres of farmland in Halligudi to set up the six-million tonne per annum plant. It has issued preliminary notices under Section 28 (1) of the KIADB Act to 532 farmers in Halligudi and completed the personal hearing with families opposed to the acquisition. Over 400 families have given consent to sell their land.

Though former chief minister B S Yeddyurappa had said the government had dropped the land acquisition proposal in Halligudi, sources said the special land acquisition office of KIADB in Dharwad was yet to get a communication from Bangalore regarding this.

BS (http://www.business-standard.com/india/news/posco-plant-in-gadag-notclosed-chapter/446081/)

http://www.thehindu.com/multimedia/dynamic/00758/18bgdiv-NAL_G82395H_758827e.jpg
Futuristic: Aircraft models being displayed as part of NAL's Foundation Day celebrations in Bangalore on Thursday. — Photo: V. Sreenivasa Murthy

In the next few days, National Aerospace Laboratories (NAL) will be testing a series of micro air vehicles (MAVs), weighing no more than 300 gm and fitted with cameras, that will eventually be deployed to hover over the Karnataka's infamous mining belts.

NAL Director A.R. Upadhya told presspersons here on Thursday that NAL was working with the Karnataka State Natural Disaster Management Cell to monitor and assess the impact of mining in the State using MAVs that are 30 cm in size.

He was speaking at a press conference following the CSIR-NAL Foundation Day celebrations.

Vice-Chairman and Managing Director, Mahindra Group, Anand Mahindra said a five-seat commercial aircraft, that will cut down travel time phenomenally and cost a passenger just 30 per cent more than an air-conditioned taxi ride, may be a reality as soon as three years.

The NM-5 aircraft, which will be developed by the company along with the NAL, could “dramatically open up the country for a range of clients and services, he said, be they farmers looking for market access; patients in need of medical help, or pilgrims who want an easy ferry to their destination.

The piston-engine plane is under development in Australia and could be tested within six to 12 weeks, said Mahindra Systech president Hemant Luthra. “I would be disappointed if in the next three to five years the production did not touch 100 planes annually,” he added.

Earlier, delivering the 25th CSIR-NAL Foundation Day lecture on ‘Setting Course for a Vibrant, Collaborative Aerospace Future', Mr. Mahindra said the aerospace sector must look beyond traditional technologies and dabble in green technologies that are affordable.

The Hindu (http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/article2371319.ece)

J. Venkatesan

‘Level of illegality in the districts as bad as that in Bellary'

http://www.thehindu.com/multimedia/dynamic/00759/19ndjvn02_SC_CEC_Mi_759704e.jpg
Concern: Of the 687.42 hectares being mined in Chitradurga district, 497.64 hectares is forest area. — FILE PHOTO The Central Empowered Committee (CEC) has recommended to the Supreme Court that it extend the ban on mining in the districts of Tumkur and Chitradurga in Karnataka, as was done in Bellary district.

On July 29, acting on an application from NGO Samaj Parivartana Samudaya, the Forest Bench, comprising Chief Justice S.H. Kapadia, and Justices Aftab Alam and Swatanter Kumar, had asked the CEC to do an Environment Impact Assessment in these two districts and submit a report within three weeks.

On Friday, the CEC submitted a report recommending that the July 29 order — by which the mining operations had been suspended — be extended in respect of the mining leases in the two districts. It said the level of illegality and environmental degradation caused in these districts “are in no way less than that which has taken place in Bellary.”

Further, the CEC wanted a direction to restrain the mining companies from exporting the 12,000 tonnes of ore already mined.

The Bench issued notice to the Centre, Karnataka and the companies concerned and posted it for further orders for next Friday.

The CEC said in the report that in Tumkur a total area of 1,203 hectares was covered in 24 leases, out of which 257.37 hectares fell in forest area. The total production in 2001-02 was 2.03 lakh metric tonnes and in 2008-09, the total production had gone up to 25.30 lakh metric tonnes.

In Chitradurga, the total mining area, out of 18 leases, was 687.42 hectares, out of which 497.64 hectares was in forest area.

The mining production, which was 12.79 lakh tonnes in 2001-02, had increased to 65.63 lakh tonnes in 2008-09. Besides expressing concern over environmental degradation, the CEC reported violations such as illegal mining and production disproportionate to the size of the mine. It, therefore, sought a complete ban on mining in these two districts as well.

The NGO had drawn attention to the large-scale illegal mining in the districts of Bellary, Chitradurga and Tumkur and the serious breakdown of governance in the State.

It said the nexus between politician-miners and officials not only raised serious concerns about ecology and environment, but also on issues concerning transparency and accountability in the functioning of the government.

•Direction sought to restrain firms from exporting 12,000 tonnes of ore already mined
•Production disproportionate to the size of the mines found

The Hindu (http://www.thehindu.com/todays-paper/article2374687.ece)

Xindia's pelletisation plant at Koppal

Bangalore, Aug. 22:
Xindia Steels to dedicate 0.8 mtpa iron ore pelletisation plant and inauguration of construction of 2.5 mtpa integrated iron and steel making facility at Koppal district in Karnataka at 6.30 pm on August 24 at Mysore Hall - ITC Royal Gardenia, Bangalore. — Our Bureau


The Hindu (http://www.thehindubusinessline.com/todays-paper/tp-others/tp-states/article2385864.ece)

Apex court bans mining in 2 more Karnataka districts (http://www.thehindubusinessline.com/industry-and-economy/article2399863.ece)

http://www.thehindubusinessline.com/multimedia/dynamic/00765/BL26_TUMKURMINING_765512f.jpg
THE HINDU Mining area of Chikkanayakana Halli near Tumkur (file photo).
NEW DELHI, AUG 26:
The Supreme Court on Friday suspended mining and transportation of iron ore in/from two more districts of Karnataka — Tumkur and Chitradurga.

This follows the findings of the apex court panel — the Central Empowered Committee (CEC) — of illegal iron ore mining activity in these districts resulting in environmental damage and loss of forest cover.

Also, the level of illegal mining and the consequential environmental degradation in these two districts are in no way less than that of Bellary district in the State, the CEC has found.

The Supreme Court had in July suspended mining and transportation of iron ore in/from Bellary also. Noting that there is a stock of 25 million tonnes of iron ore, the court on Friday sought to know the monthly requirements of the local steel industry so that it can give orders for release of such quantity as well as the modalities for sale and transportation of such stock.

The court has sought a joint report on the domestic requirements from the steel industry, the state government and the Centre by September 2, when the matter would be heard again.

On September 2, the CEC has to submit to the court the name of the government agency that would be in charge of keeping the accounts of sale proceeds of iron ore and royalty from mining.

Meanwhile, the court also sought within three months a macro-level Environment Impact Assessment (EIA) of Tumkur and Chitradurga regions from the Indian Council of Forestry Research and Education (ICFRE) in collaboration with the Wildlife Institute of India, the Forest Survey of India and such domain experts as may be decided by the ICFRE in consultation with the Environment Ministry.

SC order a death blow to steel sector in Karnataka

Mahesh Kulkarni & Shubhashish / Bangalore/ Mumbai August 27, 2011, 0:26 IST

The Supreme Court directive to suspend iron ore mining activities with immediate effect in Karnataka’s Chitradurga and Tumkur districts will be the last nail in the coffin for iron and steel manufacturers in the state. The two southeastern districts account for about 20 per cent of the state’s annual iron ore production of about 45 million tonnes.

Mining operations have already ceased in upstate Bellary district, which contributes 80 per cent of Karnataka’s iron ore production. The ore produced in Chitradurga and Tumkur are of low grade, and mainly exported to China.

The state’s pig iron, sponge iron and steel manufacturers, who were working on a thin supply of iron ore from these two districts, will have to shut down their blast furnaces within a week as the SC has ordered the complete halt to mining, industry sources said. The apex court order is likely to adversely affect JSW Steel. The Sajjan Jindal-led company, after a recent SC ban on mining in Bellary, was depending on supplies from Chitradurga and Tumkur — to the extent of 50 per cent of its requirements. The 1982-founded firm operates a 10-million-tonne-per-annum steel plant at Toranagallu in Bellary.
A JSW Steel official said the company had been operating at less than half of its installed capacity after the supplies dried up from Bellary last month.
“With the suspension of mining in Tumkur and Chitradurga, we cannot continue with the production any more. Our iron ore stocks will last another four to five days. We may have to shut down our blast furnaces,” he added. On the back of the SC order allowing NMDC to produce iron ore from its Bellary iron ore mines, JSW Steel said the company expects to run its plant at 80 per cent capacity. The ban in Chitradurga and Tumkur will now force the company to further cut production.

“Our blast furnaces are not designed to operate at a lower feed of ore,” the official said on condition of anonymity. “They have to be run at 80 per cent capacity or shut down. With the ore supplies drying up, we will be left with no option but to shut down gradually.” Among the major mining companies that will be affected severely by the SC order are Sesa Goa and Mineral Enterprises Ltd, which operate in Chitradurga. About 25 per cent of Sesa Goa’s iron ore production comes from its mine in Chitradurga. Edelweiss, in an August 22 note, said the SC order on mining ban in the region could possibly shut Sesa Goa’s 6-million-tonne-per-year Chitradurga mine.

“Sesa Goa’s mine in Chitradurga had recently ramped up to 6 MTPA and was accounting for 25 per cent of its annualised volume,” said Prasad Baji and Faisal Memon of the leading financial services company.

Presently, in Karnataka alone, as many as 16 steel mills including JSW Steel, Kalyani Steels Ltd, Mukand Steels Ltd, Kirloskar Ferrous, VISL Bhadravathi, MSPL Ltd, BMM Ispat Ltd and Sathavahana Ispat among others source iron ore from Karnataka. Many other sponge iron manufacturers in Tamil Nadu and Goa also source iron ore from Karnataka. “It will be a big blow to the steel sector as there is no other option than closing down the plants completely. The companies will have to either reduce the production significantly or close down due to non-availability of iron ore. It may take long time for NMDC to reach the assured supply of 33,000 tonnes per day. The current supplies are only in the range of 22,000 tonnes as against the industry requirement of 104,000 tonnes per day,” T S Sampath Kumar, secretary general, Bangalore Chamber of Industry and Commerce said.

The Friday’s order of Supreme Court will also affect about 60 sponge iron manufacturers in the state, most of them have already shut down.

“It’s a very sad thing for the industry. The SC order has come as a severe blow to miners. Actually, only 11 per cent of the forest area is under mining in Bellary district. We have taken all possible precautionary measures to protect the environment,” a spokesperson of MSPL, a mining and pellet producer from Bellary said.

There will be a loss of revenue to the exchequer and the overall economic development will be severely affected in the three districts of Bellary, Chitradurga and Tumkur. The impact is so severe that more than 80,000 people working in the sector will be rendered jobless and the livelihoods of over 100,000 people associated directly or indirectly gets affected, Sampath Kumar added.

BS (http://www.business-standard.com/india/news/sc-orderdeath-blow-to-steel-sector-in-karnataka/447199/)

Xindia Steels to set up pellet and steel plant in Karnataka

Xindia Steels Limited announced the setting up of INR 8,500 crore integrated steel making facility of 2.5 million tonne capacity, at Koppal, in Karnataka.

The plan envisages, in the first phase, commissioning of a 0.8 million tonne iron ore pellet plant at the site.

Speaking on the occasion, chief minister Mr DV Sadananda Gowda said the new mineral policy of the state is focused on bringing value addition to such projects. The proposed steel plant at Koppal, he said, would not only bring in big ticket investment for the state but also inclusive growth and development of the district.

In this regard, he said that around 20 projects of the total 389 projects, which received clearances at the Global Investors’ Meet 2010 have been completed and begun their operations. The long term plan of Xindia Steels is to have a 5 million tonne facility in the third phase.

Chinese Ambassador Mr Zhang Yan said that the company currently is providing jobs for 200 persons at the pelletisation plant and by the third phase when the entire project would go on stream, around 10,000 jobs would be generated.

Xindia Steels Limited is promoted by two major Chinese state owned entities Xinxing Cathay International Group and China Minmetals Group. The Indian promoters are Kelchandra Group and the Manasara Group.

DHNS (http://www.steelguru.com/indian_news/Xindia_Steels_to_set_up_pellet_and_steel_plant_in_Karnataka/222522.html)

Mining banned in Karnataka,but why is this company willing to set up plant here?

'Mining ban will cost State Rs.4,000 crore' (http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/article2407403.ece)
How much mining is costing to environment? Is this cost subtracted?
How much people have lost employment due to non-usage of mining resource for generatring employment by putting up industries? Is there any estimation for this?

Bellary mine workers fear job loss (http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/article2410259.ece)
Once the mines are empty they will lose job permanently. We have to have plan for their permanent employment.

'India-China trade volume should go up' (http://www.thehindu.com/todays-paper/tp-national/article2407339.ece)
Instead of exdporting iron ore when we start exporting machineries trade will go up.

SC order a death blow to steel sector in Karnataka



BS (http://www.business-standard.com/india/news/sc-orderdeath-blow-to-steel-sector-in-karnataka/447199/)

I do not like the contradictory views in the article. On the one hand it is telling Tumkur & Chitradurga low grade ore can not be used in India but in China only. On the other hand it also tells that Indian plants are affected by the ban.

I prefer all mines to be handed over to NMDC or any other government sector mining company like KIOCL and they in turn export to other countries. Mining should be allowed for private sector if they have steel plant only.

he final report of the Lokayukta on illegal mining favours the ban on export of iron ore so as “to increase the duration of life of leases for iron ore production”.

The report notes that the production, including illegal extraction, had gone up manifold after submission of the first report in 2008, according to the detailed findings of U.V. Singh. It observed that “there shall be complete ban on the export outside the country”. The observation is based on the details submitted by the Department of Mines and Geology.

Based on the submission on the life of leases by the Deputy Director Mines and Geology, Hospet, the report states that “it is shocking to note that most of the leases will be running out of deposits of iron ore for the ferrous content of 60 grade in a span of 3 to 12 years”.

The consent and approvals from the Ministry of Environment and Forests (MoEF) and the Indian Bureau of Mines (IBM) have been increased irrationally, without keeping in view the total deposition of the ore in the leases and environmental damages. This unscientific and unsustainable extraction has caused serious concern for the existing steel plants and the upcoming plants in the State, the report says.

The IBM plans are being prepared by the lessees themselves and then taken for approval to the IBM. The consent of MoEF under the Environmental Protection Act has been given based on the approval of IBM. The consent given by the MoEF and the Karnataka State Pollution Control Board was found quite arbitrary in many of the cases, the report notes.

RECOMMENDATION

To increase duration of life of leases for iron ore production, the report recommended bringing down per year production of all the leases with a life span of 15 to 20 years to one-fourth of the present production. Similarly, per year production of leases with life span of 10 to 15 years and 1 to 10 years to one-fifth and one-tenth respectively. The other recommendations include: viewing of illegal extraction seriously and cancellation of lease following due procedure if illegal removal is found. The quantification of low and high grade reserve should be done by the Indian Bureau of Mines and Department of Mines and Geology. The quantification should not be left to consultants and lessees under any circumstances.

LEASES

The report suggests that the IBM should consult the State Government before approval of mining plan of any of the leases and all plans should be revisited and modified in accordance of the norms.

The State Government should take immediate action to revive the IBM plans, and the upper limit of despatch in Bellary, Hospet and Sandur region should not exceed 25 million tonnes per year, including low grade ore, it says.

Keywords: illegal mining, Karnataka politics, Lokayukta report, iron ore, Bellary, exports

The Hindu (http://www.thehindu.com/news/cities/Bangalore/article2420694.ece)

ArcelorMittal bets on Karnataka to push India plans

MUMBAI: ArcelorMittal India expects Karnataka to be the mainstay of its India plans and expects the state's pro-industry policies, and faster mine allocation procedures, to push its long-awaited projects off the ground. But the world's largest steel manufacturer will continue to pursue its plans in Jharkhand and Orissa simultaneously, as the company wishes retain its alternative options, said a senior company official.

"Compared to other states, land acquisition is more systematic in Karnataka as the state government has in the past, done a good job of rewarding farmers in large industrial projects," said the senior official who asked not to be named. The suspension of mining in the iron ore-rich districts of Bellary, Chitradurga and Tumkur has not impacted ArcelorMittal India's plans as it expects the issue to be resolved soon.

ArcelorMittal intends to build a Rs 30,000-crore, six million-tonne steel plant in Karnataka in two phases, in line with a revised programme of setting up smaller steel mills in multiple locations.

The company needs about 4,500 acres for the project of which 4,000 acres has already been acquired by the Karnataka Industrial Areas Development Board.

Earlier, ArcelorMittal India wanted to build large steel plants of 12-million-tonne capacity, but was subsequently discouraged by the delay in land acquisition in Jharkhand and Orissa. It came to India in 2007.

Bureaucratic delays and land acquisition programmes have delayed ArcelorMittal India's Jharkhand and Orissa plans. The problems are similar to the ones faced by South Korean major Posco that is also struggling to push through its 12-million-tonne steel project in Orissa, in the face of strong opposition.

"The pace of land acquisition in Jharkhand is not something we like," said the official, referring to the company's move to shift the site of the proposed steel project from Khunti-Gumla to Bokaro in Jharkand. "We also decided that having large projects of 12 million tonnes will delay the projects further. So we now plan to develop the projects through four modules of 3 million tonnes each," he added.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/arcelormittal-bets-on-karnataka-to-push-india-plans/articleshow/10012191.cms)

Envt panel recommends conditional nod to JSW's proj in Bellary

New Delhi, Sep 18, (PTI):

An Environment Ministry panel has recommended conditional nod to Sajjan Jindal-led JSW Steel's Rs 25,000-crore investment proposal for expanding the capacity of steel plant located in Bellary, Karnataka.

Earlier, the Expert Appraisal Committee (EAC) of the Ministry of Environment and Forest (MoEF) in December last year had deferred the decision on green nod to the project seeking certain details.

"After detailed deliberations, the committee recommended the project for environmental clearances subject to specific conditions along with other environmental conditions," the panel has said.

The 28 conditions prescribed by the panel, include an assurance by the company that the plant will obtain its raw material on regular basis from the designated sources for long period to enable the validity of its EMP (Environmental Management Plan) report."

Apart from plans to augment the capacity of its integrated steel manufacturing facility from 10 million tonnes per annum (MTPA) to 16 MTPA, JSW plans to set up a 600 MW captive power plant near Tornagallu village at Bellary.

The conditions for the project include developing a green belt in the plant area, earmarking 5 per cent of the total cost of the project towards enterprise social commitment and providing housing for construction labour within the plant site with all necessary infrastructure facilities.

Besides, the panel has asked the company for "compliance to all the specific and general conditions stipulated for the existing plant".

The project had come up for deliberation in the meeting of Expert Appraisal Committee (EAC) held recently.

Earlier in December, the EAC had deferred the decision on the proposal seeking detailed housing plan for construction workers, exact source and trace element analysis of raw materials, a copy of coal linkage document and CSR plan for five per cent of the project cost.

The expert committee had also asked for an authenticated map showing the location of the project and Daroji Bear Sanctuary and has recommended the project for green nod after sending a sub-committee to the site, which gave its report recently.

JSW's Bellary plant is just about 5 km away from the Daroji Sloth Bear Sanctuary. JSW requires about 700 acres for the proposed expansion, which is within the existing plant area. The company's Bellary plant, including the township, is spread over 7,761 acres and claims that it has reserved 33 per cent greenery within the total plant area.

JSW Steel had already invested close to Rs 40,000 crore in the Bellary plant.


DHNS (http://www.deccanherald.com/content/191729/envt-panel-recommends-conditional-nod.html)

Saint Gobain To acquire Electrotherm's Pipe Division

Saint Gobain may acquire the pipe division of Ahemadabad based Electrotherm for about Rs350Cr. The pipe division has an annual capacity of 200,000 tonnes.

Electrotherm India makes induction melting furnaces and electric arc furnaces for steel industry. The company also manufactures electric scooters, steel products and transformers.

Electrotherm has four divisions - engineering & projects, special steel, electric vehicle and others. The pipe division, a part of special steel contributes 88% to the revenue.

The company has grown its pipe business through acquisitions such as the recent buyout of Karnataka-based Shri Ram Electrocast, with plans to expand the plant, located close to the iron ore mines in Hospet and Bellary, to produce 180,000 tonnes of ductile iron pipes per annum.

Electrotherm also acquired Hans Ispat and it's subsidiary Shree Hans Paper Ltd to expand the steel division.

Other major players in the segment include PSL, Jindal Saw and Tata Kubota - a JV between Tata Metaliks and Japan based Kubota.

Source (http://www.dealcurry.com/20110914-Saint-Gobain-To-acquire-Electrotherm-s-Pipe-Division.htm)

ArcelorMittal’s First Indian Steel Mill May Beat South Korea’s Posco Plant

ArcelorMittal (MT) may beat South Korea’s Posco to become the first overseas steelmaker to build a plant in India, with Karnataka state authorities set to hand over land for the $6.3 billion project in the next six months.

The government of the southern province, where ArcelorMittal aims to build a 6 million-metric-ton-a-year plant, has acquired more than three-quarters of the 4,000-acre site in the Bellary district from farmers, state Industries Commissioner Maheshwar Rao said in a phone interview. Posco, also planning a 6 million-ton plant in the state, has yet to pick a location, according to state Industries Minister Murugesh Rudrappa Nirani.

ArcelorMittal and Posco, which have $32 billion of planned projects in the eastern Indian states of Orissa and Jharkhand, have waited more than six years because of delays in securing approvals and land. While they wait, steel use rises, outpacing global demand. Indian consumption may climb as much as 9 percent in the next two to three years, while world demand may remain short of peak levels until 2013 as construction projects slow in developed nations, Fitch Ratings said in a July 13 report.

“ArcelorMittal is trying to benefit from the Indian steel industry, forecast to continue growing in the coming years,” said Veronique Colas, a financial analyst with a “buy” rating on the stock at Paris-based Alphavalue SAS. “India has ambitious plans for large-scale expansion of power supplies and electricity grids, roads and railways, and all of these are large users of steel.”
Shares Gain

ArcelorMittal, the world’s largest steel producer, rose as much as 2.2 percent to 12.995 euros and traded at 12.725 euros as of 11:19 a.m. in Amsterdam. The stock has dropped 53 percent this year, compared with an 18 percent decline in the benchmark Stoxx Europe 600 Index. Shares of Posco, the world’s third- biggest steelmaker, retreated 0.2 percent to 413,000 won in Seoul.

In June last year, Karnataka invited steelmakers to set up mills in the state, aiming to exploit its iron-ore resources and compete with Orissa and Jharkhand, where projects including steel and power plants have stalled because of protests by villagers unwilling to vacate land.

Karnataka received interest from ArcelorMittal, Posco and five other companies for projects valued at a combined 1.42 trillion rupees ($30 billion). While ArcelorMittal faced no opposition from farmers, the government asked Posco to select a new location after villagers at an earlier site at Gadag raised objections, Press Trust of India said on Aug. 17, citing Nirani.
‘Promising’ Project

“The ArcelorMittal project is one of the most promising greenfield projects announced last year,” Rao said on Sept. 17 from Bangalore. “There’s been no trouble getting the land and we don’t expect any in future. The price has been fixed and we have the consent of most of the farmers.”

A bill aimed at expediting land acquisition in India and increasing compensation to farmers was approved by the cabinet on Sept. 5 and introduced to the lower house on Sept. 7. The bill has been referred to parliament’s standing committee on rural development, which will prepare a report in three months.

“The proposed laws will sharply increase the cost for private buyers and many of the projects may become unviable depending on the area and price of land,” said Niraj Shah, an analyst with Fortune Equity Brokers India Ltd. “I don’t think the bill will be passed anytime soon as it will require the consent of all states.”

Demand Outlook Cut

India’s steel demand, which was forecast by the government to expand 12 percent this fiscal year, grew 1.3 percent in the first five months. The Steel Ministry has cut its consumption growth forecast for the year through March to 6 percent as soaring interest rates damp purchases of cars and homes and delay public-works projects.

Karnataka is among the nation’s top iron-ore producing regions. The provincial government in July 2010 banned overseas shipments of ore to retain the raw material for local steelmakers. While the Supreme Court ended the ban on April 5, exports remained halted following probes into illegal mining.

ArcelorMittal may still have to overcome other hurdles in Karnataka. The company is seeking approval to mine iron ore at Donimalai in Bellary for its proposed plant, according to data on the Mines Ministry’s website. India’s top court on Aug. 26 banned extraction of the ore in two Karnataka districts, extending curbs placed on mining in Bellary region on July 29.

“We are making slow progress in all the three states, but I would say that Karnataka is making better progress in terms of land acquisitions,” ArcelorMittal Chairman Lakshmi Mittal said in a teleconference on July 27. “But there is still lot of work to be done on mining and environment approvals, and a lot of approvals are still pending.”
Local Opposition

A $12 billion mill planned by Posco (005490) in Orissa and two projects valued at $10 billion each by ArcelorMittal in Orissa and neighboring Jharkhand have languished since 2005. While Posco got final approval for its plant in May, it struggled to acquire the land after protests from farmers. Local opposition also prompted ArcelorMittal to relocate its project to a different district in Jharkhand.

Posco is negotiating with the Orissa government to renew a five-year agreement that lapsed in June last year. While the state acquired about 2,000 acres for Posco’s plant, the process had to be halted in June after objections from villagers.

The Indian government proposes to spend about $1 trillion in the five years through 2017 to upgrade the country’s roads, ports and power networks. India is Asia’s fastest-growing major economy after China.

http://www.bloomberg.com/news/2011-09-19/arcelormittal-s-first-indian-steel-plant-may-beat-posco-project.html

NMDC, Severstal for tie-up for Karnataka plant

Kolkata: Iron ore major NMDC and Russia's largest steel maker Severstal are looking at a tie-up in order to meet raw material requirements for their proposed JV steel plant in Karnataka.

"Severstal has a small coking coal mine in Russia. They have suggested for transferring it to the JV with a reciprocal arrangement for iron-ore," NMDC Chairman and Managing Director Rana Som told reporters here on the sidelines of an energy seminar.

Som said they are also evaluating the move to acquire another coking coal block in Russia.

"It's a small asset of 70 million tonne. Our team is already in Russia to take stock of the assets. We are expecting to complete the due diligence process and approach the board over next 10-12 days," Som said.

In addition, NMDC is planning a farm pact with Russian steel major Severstal for building a two million tonne steel plant at Karnataka.

"We will convert the MoU into a MOA (memorandum of association) within a month," he added.

NMDC, Severstal to finalise joint venture by December

28 September 2011

National Mineral Development Corporation (NMDC) will finalise its joint venture with Russia's Severstal by the end of the year. The 50:50 joint venture will set up a three million tonnes per year steel plant in Karnataka.

"By December, we will sign a joint venture agreement with Severstal of Russia to set up a 3 MT steel unit. It will be a 50:50 joint venture," NMDC chairman Rana Som said today.

State-run NMDC is also expected to sign an agreement for acquiring 26 per cent stake in a coking coal mine of Sunflag Iron & Steel in Mozambique. NMDC is currently doing due diligence for three to four mines overseas, Som said.

The Navratna public sector unit had signed a MoU with Severstal for setting up a 3 million tonne steel plant in Karnataka, involving investment of about Rs25,000 crore. The joint venture has a provision to expand capacity to 5 million tonnes in due course.

The first joint venture steel project of the two countries, the partnership would produce auto grade and electrical steel to meet rising demand for specialised steel products in the country.

The joint venture will be supported by two subsidiaries - a captive coking coal mining subsidiary in Russia (a joint venture with Sunflag) and an iron ore-mining subsidiary in India - which would ensure long-term raw material supply for the project.

"We have made advance payment for 2,880 acres of land with the Karnataka government for the project. The source of water is also being identified for the mill with Karnataka government," Som said.

The Karnataka plant will be NMDC's second steel unit in India after its 3-million tonne project in Chhattisgarh.

As far as the pact with Sunflag is concerned, it is a part of NMDC's plan to invest in coking coal and iron ore assets overseas to ensure raw material security for its upcoming steel projects.

NMDC, which is looking more and more overseas for raw material supplies, had, last week, entered into a deal to acquire 50 per cent in Australia's Legacy Iron Ore for A$18.89 million. It is also looking to acquire mining assets in the US.

Source (http://www.domain-b.com/industry/Mining/20110928_severstal_2.html)

New Delhi, Sept. 29: State-owned KIOCL Ltd is looking at iron ore mines in Africa as part of its expansion plans and to address its resource security.

“It is in a preliminary stage. We have received some proposals from owners of land in Mozambique that contain magnetite deposits. We are sending a team of officials next week to look at these deposits,” said Mr K. Ranganath, CMD, KIOCL Ltd.

He was speaking to reporters after the Steel Minister, Mr Beni Prasad Verma, reviewed the company’s quarterly performance.

Further, Mr Ranganath said the company’s proposed expansion plans in India have taken a back seat in the aftermath of disruption of iron ore supplies from NMDC following the ban on mining in Bellary.

The company was looking to set up ductile iron spun pipe plant and install a coke oven battery besides setting up an integrated steel plant.

KIOCL relies on NMDC for its iron ore supplies, which are converted into pellets at its plant in Mangalore. Despite the challenges on the raw material supplies, the company produced 3.96 lakh tonnes of pellets against the targeted 5.16 lakh tonnes.

Meanwhile, MSTC under the Steel Ministry presented a dividend of Rs 1.97 crore to the Government. The e-commerce PSU mainly deals with disposal of reusable scrap.

MSTC has been recently selected by the Supreme Court to conduct e-auctions of iron ore piled up in Karnataka. MSTC will e-auction 1.5 million tonnes from Bellary and 1 million tonne from NMDC per month.

Business Line (http://www.thehindubusinessline.com/companies/article2500752.ece)

http://www.deccanheraldepaper.com/pdf/2011/10/04/20111004d_003100002.jpg

JSW Steel buys 41% of iron ore auctioned

JSW Steel Ltd, the largest producer in India, continues to be the largest buyer of iron ore at e-auctions in Karnataka. The company, which runs a 10-million-tonne steel plant in Karnataka, has picked up 926,000 tonnes of iron ore (with an iron grade of 62 per cent), about 41 per cent of the ore auctioned at the fifth round of e-auctions held yesterday and on Friday in Karnataka.

read full article (http://www.business-standard.com/india/news/jsw-steel-buys-41iron-ore-auctioned/454592/)

NMDC, Severstal sign pact for steel joint venture

HYDERABAD, NOV 12:
India’s largest iron ore miner NMDC and Russian steel maker Severstal signed the Implementation Protocol in Moscow for setting up a joint venture steel plant in Karnataka.

A high level delegation from India, comprising the Minister of Steel, Mr Beni Prasad Verma, the Secretary of Steel, Mr P.K. Mishra, and NMDC’s Chairman and Managing Director, Mr Rana Som, apart from other senior officials, visited Moscow to take the project forward.

The Minister had talks with Mr Viktor Khristenko, the Russian Minister of Industry, during the visit.

The Protocol defines the target initial plant capacity which would be 3 million tonnes of finished steel. It also confirms the intention of NMDC and Severstal to fully meet the joint venture’s captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials.

Until the captive assets are fully developed, NMDC and Severstal would take up the responsibilities to supply iron ore and coking coal to the joint venture from their existing assets or alternative sources, NMDC said in a statement.

Mr Alexey Mordashov, Chief Executive of Severstal, said: “Our joint venture project in India with NMDC provides a good fit with Severstal’s vertically integrated, growth-focused business model”.

Mr P.K.Mishra said: “The joint venture between Severstal and NMDC will be another milestone in India-Russia economic cooperation and will be an important investment for the Indian Steel industry.

The Hindu businessline (http://www.thehindubusinessline.com/companies/article2621595.ece?homepage=true&ref=wl_home)

NMDC,Severstal final agreement for Karnataka plant next month (http://articles.economictimes.indiatimes.com/2011-11-15/news/30401367_1_nmdc-and-severstal-rana-som-nmdc-chairman)

NEW DELHI: Steel Minister Beni Prasad Verma today said the final agreement between NMDC and Russian steel major Severstal for jointly setting up a 3 million tonne per annum (mtpa) steel plant in Karnataka would be signed next month, when the Russian Prime Minister will be visiting India.

"The Russian Prime Minister is scheduled to visit India in December. At that time, the final agreement between NMDC and Severstal would be signed for the steel plant," Verma, who recently came back from Russia, told reporters here.

India's largest iron ore miner NMDC and Russia's second biggest steel maker Severstal had, in December last year, signed a MoU to form an equal joint venture for setting up a steel plant in the Southern state.

During Verma's three-day visit to Russia, starting November 8, the two firms signed an 'Implementation Protocol' to take the venture closer to the signing of the final agreement.

The protocol suggests that NMDC and Severstal would fully meet the joint venture's captive requirements of both iron ore and coking coal so that it becomes fully integrated for these primary raw materials.

"Until the captive assets are fully developed, NMDC and Severstal take the responsibilities to supply, respectively, iron ore and coking coal to the JV at market basis from their existing assets or alternative sources," NMDC had said.

NMDC Chairman and Managing Director Rana Som said total capital expenditure for the proposed facility would be Rs 19,000 crore and it would be funded with a 70:30 debt equity ratio.

Som also said the company was in the final stages of negotiation with two mining companies -- one in Russia and the other in Mozambique -- for acquiring of stake.

However, NMDC has dropped the idea of buying stake in coking coal asset of another Russia company Vincy Coal.

NMDC-Severstal steel plant likely to be commissioned by 2017
(http://www.business-standard.com/india/news/nmdc-severstal-steel-plant-likely-to-be-commissioned-by-2017/456164/)

The 3-million tonne plant entails an investment of $4 billion.

The proposed steel plant to be set up jointly by state owned National Mineral Development Corporation (NMDC) and Russian behemoth Severstal in Karnataka may be commissioned by 2017.

The 50:50 joint venture project will come up over 2,800 acres of land at Bellary in the Southern state.

“The land has already been notified and once the final agreement between the two companies is signed next month, the process of land acquisition would start and we hope that the plant is commissioned by 2017,” NMDC CMD Rana Som told Business Standard here.

The plant is estimated to cost $4 billion and would be funded with 70:30 in debt equity ratio by the Indo-Russian partners.

“While, this would be the biggest Russian investment in the Indian steel sector, it would also bring the latest steel making technology to our shores and assign coking coal linkage to the project,” So added.

On its part, NMDC would assign iron ore linkage to the proposed three million tonnes (MT) annual capacity plant.

Earlier this month, NMDC and Severstal had signed ‘implementation protocol’ during steel minister Beni Prasad Verma’s visit to Moscow. In December 2010, the two companies had signed MoU to form an equal joint venture for the plant.

India, the world’s fourth largest steel producer, is planning its capacity rise to almost 200 MT by 2020.

At present, China is the global leader in steel production followed by USA, Russia and India. By 2020, we would overtake USA and Russia. By 2012-13, India’s installed capacity of steel is likely to be 110-120 MT.

Karnataka to extend support for steel players
(http://www.business-standard.com/india/news/karnataka-to-extend-support-for-steel-players/456172/)

Steel, pig iron and sponge iron manufacturers in Karnataka can now heave a sigh of relief and hope for better days ahead as the state government has agreed to widen the window for transporting the iron ore purchased at the electronic auctions.

At present, the Monitoring Committee, appointed by the Supreme Court to oversee the auctions, has restricted the transportation of iron ore to 12 hours, from 6 am to 6 pm.

“The Karnataka steel manufacturers association had requested the state government to permit the movement of iron ore round the clock. Considering that the delay in the transport of iron ore is affecting production, the committee has agreed to extend the timings from the present 12 hours to 16 hours,” Vinod Nowal, chief executive officer and director, JSW Steel Limited, said.
He said the matter was before chief minister, D V Sadananda Gowda, for his approval. “Unless the government allows transportation of the raw material round the clock, it would be difficult to maintain the production levels and we cannot shut down the furnaces,” he said.

Nowal said of the 4.4 million tonne iron ore won by JSW at the e-auctions, the company could hardly move 1.2 million tonne due to the restrictions. Another 3.2 million tonne iron ore continues to lie at the various mine heads. This has affected the company’s production which is now 50-60 per cent of the installed capacity of 10 million tonnes. The company was hoping to restore the production levels to 80 per cent by the end of October.

As per the new system drawn up by the state’s Department of Mines and Geology (DMG), the successful bidders are issued bulk permits after they pay the royalty, forest development tax and VAT for the ore won at the auctions. Subsequently, they have to get their respective holograms and tripsheets from the deputy director of mines and geology before loading the ore. They can then secure the forest permit from the department of forests before moving the material to their respective steel mills.

The monitoring committee has so far facilitated the auction of 7 million tonnes of iron ore of the 25 million tonnes stockpile lying at the various mines, as allowed by the apex court.

However, he said, the stockpile would not be sufficient for the steel companies to operate their plants in the long run. There is hence a need to resume regular mining in the three districts of Bellary, Chitradurga and Tumkur. The stockpiles are expected to last another six months.

“It is the right time to resume regular mining and unless that happens we cannot ensure non-stop flow of the raw material to steel mills. But, it depends on the state government which is yet to submit the rehabilitation and resettlement plan to the apex court,” Nowal added.

Arcelor Mittal to begin steel plant construction in K'taka (http://www.moneycontrol.com/news/cnbc-tv18-comments/arcelor-mittal-to-begin-steel-plant-constructionktaka_622223.html)

Arcelor Mittal is gearing up to start the construction of its Rs 30,000 crore steel plant in Karnataka, reports CNBC-TV18’s Vineetha Athrey quoting sources.

It is learnt from sources that the company has chalked out plans for the first phase of its 6 MTPA plant in the state. The construction will happen in two phases of 3 MTPA each.

Further, Arcelor Mittal is awaiting official land transfer from the Karnataka government. The government has already acquired 1,827 acres of land towards the first phase which will be officially transferred to the company in two-four weeks.

The company is looking to do some basic construction to indicate land possession about three-four months after taking over the legal possession of the land. The phase one construction is likely to begin in a year as the company is awaiting several clearances including environmental clearances which are expected to come through in about a years time.

Arcelor Mittal has already acquired 2,600 acres of land, it has paid Rs 178 crore as compensation to the farmers. Also, the company has deposited about Rs 268 crore with the Karnataka government. This amount will be used towards compensation.

In a response to CNBC-TV18 query the company said, "Karnataka Industrial Areas Development Board (KIADB) has initiated the transfer process and are securing the requisite permissions to initially handover 1,800 acres to us. We do not envision any delay in construction after land is transferred and necessary resources secured towards building a 6 MTPA plant in Karnataka."

Jindal Aluminium to spend Rs 800cr for two plants in Karnataka

Jindal Aluminium will invest Rs 800 crore to set up two plants to make aluminium sheets and foils, and produce powder coated and anodised materials.

"We are setting both the plants in Karnataka. Work on the first plant, near Bangalore, for manufacturing of aluminium sheet and foils has already started. We are investing Rs 500 crore outlay," Jindal Aluminium CMD Sitaram Jindal told PTI.

The second plant would also come up near Bangalore for production of powder coated and anodised materials with an investment of Rs 300 crore. However, the ground work on the plant would start only after the first plant gets operational in April next year.

While aluminium sheet and foils are used for packaging applications, including food and beverage containers; powder coating is a durable method of providing a decorative finish to metals. Anodising is an electrolytic passivation process used to increase the thickness of the natural oxide layer on the surface of metal parts.

Jindal Aluminium claims to be the largest manufacturer of aluminium extrusion profiles in India commanding around 25% market share. It has 70,000 tonnes per annum installed capacity at its lone plant in Bangalore. However, due to poor demand, the company could only produce 55,000 tonnes aluminium extrusion profiles last fiscal.

Jindal said that the aluminium sheet and foil plant would have the capacity to produce 50,000 tonnes a year and provide direct jobs to 700 people. Jindal Aluminium would spend Rs 300 crore from internal accruals and the remaining from a foreign bank to fund the project.

It would not require any funding requirement from outside for the plant to produce powder coated and anodised materials, he said, adding that cash generated from its existing business would take care of that.

"We have land in possession for the second plant. It will likely to go on stream by June-July, 2013," he said, adding that there was a huge demand for such products overseas.

Jindal said the company had clocked Rs 800 crore turnover last fiscal and after the operationalisation of these plants, its topline would likely to go past Rs 2,000 crore by the end of 2013-14 fiscal.

BS (http://business-standard.com/india/news/jindal-aluminium-to-spend-rs-800cr-for-two-plants-in-karnataka/151634/on)

Belgaum has a better ecosystem for Aluminium plants with HINDALCO already established there with Aluminium resources available in the vicinity.No idea why Jindals chose Bangaluru.

Gallantt Metal sees dent in profits on high imported coal prices

In an interview to CNBC-TV18, Mr Nitin Kandoi director of Gallantt Metal talks about the latest happenings in his company and the road ahead.

Below is an edited transcript of the interview.


Q - Now you have got the clearance for the pellet plant in Karnataka but due to the ban on mining there, when do you expect this to come on-stream?

A - We see the plant in Hospet coming up by mid 2013. The restrictions on iron ore mining is a tentative phase, it's not going to stay for a long time because, there are a lot of steel plants which have come up in the South India based on the mines there. We see this as a temporary phase and expect it to be clear before our plant is due for commissioning.

Steel Guru (http://www.steelguru.com/indian_news/Gallantt_Metal_sees_dent_in_profits_on_high_imported_coal_prices/238722.html)

JSW Steel orders another continuous slab caster from Siemens VAI

Steel producer JSW Steel Ltd has ordered a new continuous slab caster from Siemens VAI Metals Technologies for its steel works in Toranagallu, Karnataka State, India.

The continuous slab caster will have an annual production capacity of 1.4 million tonnes and is to be commissioned in the middle of 2013.

The new continuous slab caster (caster no 4, in steelworks no 1) for the JSW Steel Works in Toranagallu will be able to cast slabs with thicknesses between 220mm and 260mm and widths between 800mm and 1,600mm. It will produce carbon steel, micro and low alloy, as well as HSLA steels, which will be further processed into sheets, strips and pipes.

The new continuous slab caster will be equipped with DynaGap Soft Reduction, like caster no 3 which was supplied by Siemens and then modernized in 2009. This solution enables the taper and thickness to be controlled automatically at every point of the strand guiding system to create the basic conditions for high internal slab quality. This will enable the casting of slabs from high quality, API grades and other micro alloyed steels.

The design and equipment of the new continuous slab caster are similar to those of caster no 3, thus simplifying operation, maintenance and spare part stocking. Smart Segments are used to contain the strand. A number of technology packages ensure an optimal casting process, which produces slabs with both high surface and internal quality. The packages include the Mold Expert breakout detection system, the LevCon mold level control, the DynaFlex mold oscillator and the VAI-Q inline quality assurance system.

JSW Steel is currently operating three continuous slab casters in steel works no 1 in Toranagallu. Casters nos 1 and 2 have been in production since 1999 and Siemens recently retrofitted them with mold level control and breakout prediction systems. Caster no 3 has been equipped with the latest equipment since it went into operation at the end of 2006, and since modernization in 2009 was the first plant in India to be equipped with DynaGap Soft Reduction.

The new continuous slab caster will increase the casting capacity of steel works 1 in Toranagallu to around 4.2 million tons of slabs per annum. The construction of the fourth casting plant is part of JSW Steel’s broad range expansion project.


Source (http://www.steelguru.com/indian_news/JSW_Steel_orders_another_continuous_slab_caster_from_Siemens_VAI/239526.html)

Xinxing Ductile Iron Pipe to expand iron ore pellet capacity in India

Chinese steel pipe producer Xinxing Ductile Iron Pipe Co. a subsidiary of Xinxing Cathay International Group, has announced a plan to invest RMB 9 billion ($1.42 billion) to expand the iron ore pellet production capacity of its joint venture in the state of Karnataka, India.

Xindia Steel Co., jointly established by Xinxing Ductile Iron Pipe and Chinese metals and mineral trading company China Minmetals Corporation, was commissioned in August this year with an annual production capacity of 800,000 mt of iron ore pellets. In line with their latest investment plan, in the coming two to three years, Xinxing Ductile Iron Pipe and China Minmetals aim to expand the annual iron ore pellet production capacity of their Indian joint venture to 3 million mt.

http://www.steelorbis.com/steel-news/latest-news/xinxing-ductile-iron-pipe-to-expand-iron-ore-pellet-capacity-in-india-646272.htm

SAIL may choose Kobe Steel tech to modernise VISL plant

BANGALORE, DEC 15:
Steel Authority of India Ltd is exploring Kobe Steel's technology to modernise Visvesvaraya Iron and Steel Ltd (VISL) plant located in Bhadravati, Karnataka.

At present, SAIL is in talks with Japanese steel maker to float a joint venture to increase its steel output. “The Japanese steel major is doing techno-feasibility study of all our plants, once we get the report, it will help us devise a strategy for VISL plant modernisation,” said Mr C.S. Verma, Chairman, SAIL.

“VISL plant in Bhadravati is well suited for making alloy steel and speciality steel. Also it is located close to the port and is well suited for exports,” he added.

MODERNISATION STRATEGY

A multi-pronged strategy is being put in place for VISL's modernisation. “Under short-term measures, without much capital investments, the deficiencies in the operations would be eliminated, which would give a fillip to the plant. Here, Rs 80-90 crore is to be spent to upgrade the existing machinery to commence steel production immediately,” said Mr Verma.

“Under long-term measures, it is planned to build proper capacity to work at full efficiency by capacity addition. Under this plan, Rs 600-700 crore will be spent to bring in modern steel making technology and machinery for exports,” he added.

After the long-term measures are implemented the capacity of saleable steel is expected to go up to around 320,000 tonnes a year.


For More (http://www.thehindubusinessline.com/companies/article2720479.ece)

NMDC, Russian firm to set up 3m-tonne steel plant in Bellary

NEW DELHI, Dec 15, DHNS:

India’s state-owned NMDC Limited and Russia’s OAO Severstal may on Friday sign the final agreement to float a joint venture company in order to set up a three million tonne per annum steel plant in Bellary in Karnataka.

The NMDCL-Severstal agreement is one of the business deals likely to be clinched during Prime Minister Manmohan Singh’s visit to Moscow to give a boost to bilateral economic relations, which, both the countries agree, are still far below the potential.

The NMDCL and Severstal signed a MoU in December 2010 to jointly set up the steel plant, which would require a capital expenditure of Rs 19,000 crore and would be funded with a 70:30 debt equity ratio.

The prime minister reached Moscow on Thursday. He and his Russian counterpart President Dmitry Medvedev are likely to hold the 12th annual summit on Friday.

Before leaving New Delhi, Singh said that he and Medvedev would discuss “mechanisms to further expand our bilateral cooperation, particularly in the trade, economic and commercial fields.” The two leaders will also jointly address the business leaders from both the countries after the summit on Friday. Incidentally, Russia is also likely to formally join the World Trade Organisation on Friday. Foreign Secretary Ranjan Mathai told journalists that the Joint Study Group set up by New Delhi and Moscow to discuss about the possibility of a bilateral Comprehensive Economic Cooperation Agreement or CECA “would be able to make very concrete progress” after Russia joined the WTO.

To make it easier for business people to visit each other’s country, Russia and India put in place a simplified visa regime that came into effect on December 1 last. New Delhi and Moscow are also studying possibility of setting up a Joint Investment Fund.

The volume of the India-Russia bilateral trade is expected to be around US $ 9 billion this year, but New Delhi and Moscow set a target of US $ 20 billion by 2015 and identified the key sectors like pharmaceuticals, IT, food products and gems for emphasis to attain the target.


http://www.deccanherald.com/content/212110/nmdc-russian-firm-set-up.html

Bharat Mines plans Rs 6,700-cr steel unit
(http://www.hindustantimes.com/business-news/CorporateNews/Bharat-Mines-plans-Rs-6-700-cr-steel-unit/Article1-784944.aspx)

The Bellary-based Bharat Mines & Minerals (BMM) has chalked out plans to set up a greenfield steel manufacturing plant at Hospet in Karnataka at an estimated investment of around R6,700 crore. The plant is expected to have an annual steel manufacturing capacity of around 2.2 million tonnes.

“We have achieved financial closure for the project,” said Dinesh Singhi, managing director BMM. “The total investment of Rs 6,700 crore in the project is being funded through a mix of debt and internal accruals.” Singhi added that a consortium of fourteen banks led by the State Bank of India has extended a loan of Rs 4,200 crore to the company for this project. Other banks in the consortium include Canara Bank and Punjab National Bank.

The greenfield steel-manufacturing unit would be spread across 3500 acres and the plant is expected to be fully functional by 2014. Greenfield projects refer to entirely new projects.

Singhi added that BMM expects to garner revenue of around Rs 2,000 crore during the current financial year and expects the company’s revenue to increase by 25% over the next couple of years.

The company already owns and operates a pelletisation plant, beneficiation plant, sponge iron plant, induction furnace and a steel rolling mill. BMM is also diversifying into cement production and its cement manufacturing plant is set to come up at Anantpur in Andhra Pradesh.

http://www.deccanheraldepaper.com/pdf/2011/12/23/20111223aC004100004.jpg

Rs 30,000 crore Posco project on, says Karnataka Minister

The Karnataka government is reviving Korean steel major Posco's plans to set up a steel plant in the state.

In July this year, the ex-chief minister BS Yeddyurappa had halted the project citing farmer protests; but the industries minister has now confirmed the project is on and land acquisitions issues will be resolved soon.

State Industries Minister, Murugesh Nirani has said that the project will be set up in Halligudi, Gadag district and the opposition from locals across the board has been nearly addressed

“Already about 3,180 acres of land have been identified and preliminarily notification is over. About more than 90 per cent farmers have agreed to give the land to Posco. Farmers and government department have agreed for the price also,” Nirani told NDTV Profit

Posco's troubles started this year when former chief minister, B S Yeddyurappa halted the process of building the plant in the state after stiff opposition from local farmers in Halligudi in Gadag district.

Ironically, it was Yeddyruappa himself who proudly announced the Rs 30,000 crore Posco project during the Global Investors Meet in 2010.

Posco's integrated 6-million steel plant comes in at an investment of 32000 crore rupees. It has already paid Rs 130 crore to the state industrial board to carry out land acquisition. But due to the opposition, Bagalkot and Bijapur districts were considered as alternatives

However, despite the confidence of the Industries Minister, the government will need to rework their strategy to avoid yet another confrontation with farmers. But Posco can breathe easy for now as their project gets back on track again.

http://profit.ndtv.com/News/Article/rs-30-000-crore-posco-project-on-says-karnataka-minister-294672

Hubli, Dec 24, DHNS:

Farmers have approached the High Court of Karnataka on not acquiring their land for the Posco project, according to Major and Medium Industries Minister Murugesh R Nirani.

“Eighty to 90 per cent of the farmers are willing to give their land for the steel plant. They have submitted their land records to the department. A final decision will be arrived at after discussing the matter with Chief Minister D V Sadananda Gowda and his predecessor B S Yeddyurappa,” Nirani said here on Saturday.

The minister was addressing a press meet after an interaction with the representatives of micro and small industries organised by the Karnataka Small Scale Industries Association.

Consent

Nirani said land would be acquired for the project only with the consent of all the stakeholders. There will be no forced acquisition of land and the government would explore other options if farmers are not willing to part with their land.

During the interaction, some farmers from Halligudi (the proposed site for Posco plant) declared that they were willing to give their land for the project. They blamed the media for not reflecting their willingness to give land.

They claimed that of the 536 farmers in Halligudi and Jantli-Shirur villages, 439 have expressed their willingness to part with their land.

DHNS (http://www.deccanherald.com/content/214193/farmers-vouching-posco-plant-says.html)

Steel companies seek early resolution

Iron and steel companies in south India have approached the Supreme Court again, seeking permission for “clean” iron ore mining companies to restart operations in Karnataka.

“The stockpile of 25 million tonnes put up for sale through e-auction would last till April 2012. To ensure continuous supply of to steel mills, it’s essential to restart the mining by at least clean mining companies. So, we have made a request to the apex court through the Karnataka Iron and Steel Manufacturers Association (Kisma) to give permission for clean mining companies,” Vinod Nowal, director and chief executive of JSW Steel, said.

The Supreme Court, in its order on July 29, had ordered suspension of all mining activities in Bellary district. On August 26, the court banned mining in Chitradurga and Tumkur districts. So, 16 steel mills, including JSW Steel, Kalyani Steels Ltd, Mukand Steels Ltd, Kirloskar Ferrous, VISL Bhadravathi, MSPL Ltd, BMM Ispat Ltd and Sathavahana Ispat, are facing shortage of iron ore.

Nowal said Kisma would make another appeal on January 20, when the apex court restarts hearing the case. “There is a need for an urgent action in this regard, as the Karnataka government is yet to submit mine-wise R&R (resettlement & rehabilitation) plan to the court. It would be helpful for the steel industry if the court permits recommencement of mining in selected mines in Karnataka, as the state government may take more time to submit the plan,” Nowal said.

The state government has appointed the Indian Council of Forestry Research and Education (ICFRE) to prepare the plan for each mine in the three districts. It is said ICFRE may take up to six months to complete the plan.

Till mid-December, the monitoring committee appointed by the court has conducted 16 e-auctions and put up 14 mt of iron ore for sale. Of this, 10 mt were sold and JSW Steel picked up 6.6 mt. JSW’s Vijayanagar plant bought 5.9 mt, the Salem plant took 448,000 tonnes and JSW Ispat won 304,000 tonnes. However, the three companies got a delivery of only 2.7 mt.

“Due to logistical reasons we could take a delivery of less than half of what we bought at the auctions. The state government has allowed the movement of iron ore from 6 am to 10 pm and this restriction has affected our production schedule. It would be difficult for us to resume normal production without the continuous movement of ore,” Nowal said.

He said the company would resume normal production by the end of January. Presently, it has achieved a capacity utilisation of 80 per cent at its 10-mtpa steel plant at Toranagal in Bellary. Kalyani Steels, which has shut one of its three furnaces in Hospet, has appealed to the Central Empowered Committee and the apex court to impose a penalty on erring miners and meanwhile allow it to restart.

R K Goyal, managing director of Kalyani Steels, said the company was running with just one-month stock of ore. “The stock of calibrated ore is running out at the mines and if the court does not allow resumption of mining immediately, then we may have to close down our plants by February,” he said.

http://www.business-standard.com/india/news/steel-companies-seek-early-resolution-/459958/

MPIL Steel setting up Rs 170-cr plant in K'taka

MPIL Steel Structures Limited, a Mumbai-based turnkey solution provider for metal building products and integrated structural steel fabrication, is setting up a steel fabrication plant in Bellary district of Karnataka with an incremental investment of around Rs 170 crore to be made over two years.

The facility, coming up on 21 acre, would have an initial annual capacity of 25,000 tonne, which would be scaled up to 100,000 tonne in the next two years. The plant would start production from April 2012, Priyanka Gupta, executive director of MPIL Steel Structures, told Business Standard.

“We have already made an initial investment of Rs 75 crore to kick start the work on the project. The entire project will be funded with 40 per cent promoters’ equity and the remaining through traditional debt from the State Bank Group,” she said.

According to Gupta, the company intends to leverage the freight advantage that Bellary (situated on the Karnataka border adjoining Andhra Pradesh) offers, besides the abundance of hot-rolled steel in the region.

“The new plant will be making only heavy structural steel and will be catering to the soaring demand by the infrastructure sector, including airports and high-rise buildings, in both the states,” she said, adding the new plant was expected to generate revenues of Rs 250 crore in the first year and become a Rs 500-crore entity by itself once it crosses the 100,000 tonne a year capacity.

The over Rs 200-crore company, which currently has an annual production capacity of 60,000 tonne of structural steel at its Tarapur plant in Maharashtra, is now focusing on exploring steel as a solution for supporting the installation of solar farms and other projects pertaining to renewable energy.

Towards this, the company has recently installed solar panels on its factory rooftop, which optimises captive generation of electricity from solar power and seamlessly integrates with the internal power supply of the factory.

The SMART (Solar Mounted Advanced Renewable Technology) building system, for which Hyderabad-based SuRe Energy Systems is the EPC partner, involves mounting of solar panels on the roof of any pre-engineered building. It can be pre-installed or retrofit. Installation of the roof-mounted solar system costs Rs 18,000 per square metre.

With a separate production line of 1,200 tonne a month for the SMART building systems already in place, Gupta said, the company would now commercially offer this solution in the entire southern belt.

“We are looking at making 18 full-fledged installations in 12 months from now,” she said, adding the solar division, being set up independently, was expected to generate Rs 60 crore in revenues in the next one year.

http://www.business-standard.com/india/news/mpil-steel-settingrs-170-cr-plant-in-ktaka-/460035/

JSW Steel shifts UK service centre to Karnataka (http://business-standard.com/india/news/jsw-steel-shifts-uk-service-centre-to-karnataka/460693/)

JSW Steel has shut down its five-lakh-tonnes-per-year capacity in the United Kingdom, and shifted the entire machinery to its Vijayanagar steel plant in southern India.

Seshagiri Rao, joint managing director and group CFO of the company, said the service centre has now been shifted and commissioned at its upstate Karnataka plant. As on date, the JSW Steel has completely exited the UK market, as the service centre was its sole operation in that European country. At present, the company, which is part of the O P Jindal Group, owns only the land where it had its service centre, Rao informed.

The UK company was named JSW Steel Service Centre (UK) Ltd, and had three slitting lines and one multi-strand blanking line. JSW’s 100 per cent Indian subsidiary, JSW Steel Processing Centres Ltd, bought these assets from the UK company for an undisclosed sum.
The plant has an annual hot-rolled and cold-rolled slitter and cut to length facility of 5 lakh tonne at the Vijayanagar facility in Bellary district. In the last fiscal, the company processed 4.9 lakh tonne of steel from this service centre. In FY09, the company processed only 3.04 lakh tonne of steel due to the weak UK steel market.

Service centres are generally set up near the auto and consumer durable production hubs to deliver custom-cut steel to customers.

The 1982-founded company is now expanding its presence in the service centres area in a big way. Apart from shifting the UK plant to India, in October last year, JSW Steel and Marubeni-Itochu Steel Inc Tokyo signed a joint venture agreement to set up a steel processing center in northern India. The JV has been named JSW MI Steel Service Centre Pvt Ltd. JSW will hold half the equity and the other 50 per cent will be held by MISI.

The total cost of the service centre is Rs 130 crore. It will be funded through 50 per cent equity — equally from both the partners. The 50 per cent debt element would be raised from banks. The first phase of the project is expected to come on stream in FY13, with an initial installed capacity of 1.8 lakh tonne per annum.

JSW said the JV company would be equipped to process flat steel products such as hot-rolled, cold-rolled and coated products with a view to offer just-in-time solutions to the automotive, white goods, construction and other value-added segments.

This will be the second service centre of JSW Steel in India. The first was the UK one, which is now shifted to India. Rao said the Vijayanagar service centre would be the mother service centre with the highest capacity of 5 lakh tonne. JSW Steel is not the only company which has shut its overseas plant and shifted the production to India. Earlier, Hindalco Industries also decided to shut its acquisition Novelis Inc’s Rogerstone can-body plant to its Hirakud facility in India.

The machinery has reached Indian shores and is expected to be commissioned in early this year.

JSW Steel shifts UK service centre to Karnataka

JSW Steel has shut down its five-lakh-tonnes-per-year capacity in the United Kingdom, and shifted the entire machinery to its Vijayanagar steel plant in southern India.

Seshagiri Rao, joint managing director and group CFO of the company, said the service centre has now been shifted and commissioned at its upstate Karnataka plant. As on date, the JSW Steel has completely exited the UK market, as the service centre was its sole operation in that European country. At present, the company, which is part of the O P Jindal Group, owns only the land where it had its service centre, Rao informed.

The UK company was named JSW Steel Service Centre (UK) Ltd, and had three slitting lines and one multi-strand blanking line. JSW’s 100 per cent Indian subsidiary, JSW Steel Processing Centres Ltd, bought these assets from the UK company for an undisclosed sum.

The plant has an annual hot-rolled and cold-rolled slitter and cut to length facility of 5 lakh tonne at the Vijayanagar facility in Bellary district. In the last fiscal, the company processed 4.9 lakh tonne of steel from this service centre. In FY09, the company processed only 3.04 lakh tonne of steel due to the weak UK steel market.

Service centres are generally set up near the auto and consumer durable production hubs to deliver custom-cut steel to customers.

The 1982-founded company is now expanding its presence in the service centres area in a big way. Apart from shifting the UK plant to India, in October last year, JSW Steel and Marubeni-Itochu Steel Inc Tokyo signed a joint venture agreement to set up a steel processing center in northern India. The JV has been named JSW MI Steel Service Centre Pvt Ltd. JSW will hold half the equity and the other 50 per cent will be held by MISI.

The total cost of the service centre is Rs 130 crore. It will be funded through 50 per cent equity — equally from both the partners. The 50 per cent debt element would be raised from banks. The first phase of the project is expected to come on stream in FY13, with an initial installed capacity of 1.8 lakh tonne per annum.

JSW said the JV company would be equipped to process flat steel products such as hot-rolled, cold-rolled and coated products with a view to offer just-in-time solutions to the automotive, white goods, construction and other value-added segments.

This will be the second service centre of JSW Steel in India. The first was the UK one, which is now shifted to India. Rao said the Vijayanagar service centre would be the mother service centre with the highest capacity of 5 lakh tonne. JSW Steel is not the only company which has shut its overseas plant and shifted the production to India. Earlier, Hindalco Industries also decided to shut its acquisition Novelis Inc’s Rogerstone can-body plant to its Hirakud facility in India.

The machinery has reached Indian shores and is expected to be commissioned in early this year.

http://business-standard.com/india/news/jsw-steel-shifts-uk-service-centre-to-karnataka/460693/

JSW Steel Fears Supply Crunch if Karnataka Ban Continues

India's JSW Steel Ltd. expects to be well-supplied with iron-ore over the next four months, though the company--and other steel makers--may face a shortage later if a mining ban in south India's Karnataka state isn't partially lifted, a senior executive said Monday.

JSW Managing Director Seshagiri Rao said steel mills in Karnataka state could expect total iron-ore inflow of 10 million-12 million tons from the state's court-mandated auction system, which would meet the needs of the plants for four to five months at the most.

In two separate judgments in July and August, the Supreme Court of India banned mining in three iron-ore-rich districts of Karnataka to prevent further environmental degradation of these areas.

Currently, mines in these districts are allowed to sell stocks through a court-mandated auction system. Also, state-run NMDC Ltd. is allowed to mine a million tons of ore a month and sell it via the auction system.

Steel industry officials have blamed iron-ore exports for the ban on mining.

"The unbridled export of iron-ore by merchant miners just to make quick profits by extracting iron-ore through unscientific methods of mining has been causing irreparable damage to the environment," said a steel company executive who didn't wish to be named.

India's federal government this month raised the export duty on iron-ore to 40% from 30%. Iron-ore exporters have said they have no option but to export low-grade iron-ore since most Indian steel factories don't have the technology to convert it into saleable steel.

Mr. Rao said that they are expecting the Supreme Court to allow mining in at least some of the Karnataka mines when it hears the case later this month.

Turning to iron-ore prices, Mr. Rao said he hopes rates will fall by at least 2,000 rupees ($38) a ton, in line with the global trend.

He added that a recent increase in the iron-ore export duty too would depress domestic prices as it would discourage overseas shipments.

However, an executive at NMDC Ltd.--India's largest iron-ore producer by sales--said the company received a "good price" for its iron-ore sold in a court-mandated auction in Karnataka last week. The executive expects prices to remain robust on strong domestic demand.

NMDC has said it will take a decision on iron-ore pricing later this month.

In the next auction in Karnataka--the date for which isn't known yet--NMDC is likely to offer 200,000 metric tons of iron-ore, the same quantity it offered last week.

http://online.wsj.com/article/SB10001424052970204257504577150292151504970.html?mod=googlenews_wsj

KIOCL plans to set up coke oven battery unit
(http://www.thehindubusinessline.com/companies/article2790694.ece)

MANGALORE, JAN. 10:
Iron-ore mining company KIOCL Ltd is planning to set up a coke oven battery unit to supply coke and to generate power for its blast furnace unit and pellet plant in Mangalore.

Speaking on the sidelines of a function to plant trees in and around Mangalore here on Monday, Mr Subba Rao, Director (Production and Projects), KIOCL (formerly Kudremukh Iron Ore Company Ltd), said the company has a blast furnace unit to manufacture pig iron with a capacity of 2 lakh tonnes a year.

The company has stopped making pig iron as it is not profitable at present. The battery unit will help it produce pig iron at a lower cost and generate power.

The project, which is in initial stages, is before the Department of Environment of the Central Government for permission.

Saying that the project will be continued after the Department gives permission, Mr Rao said this unit will help supply coal to the blast furnace unit at a cheaper rate.

FALLING ORE PRICES

The plant is ready for starting a ductile iron spun pipe plant in Mangalore under a joint venture, he said.

On the activities at the pellet manufacturing unit in Mangalore, he said the plant is dependent on iron ore sourced from Chhattisgarh. The transport cost of the ore from Chhattisgarh and the decrease in prices of the processed commodity are adding to the woes of the company.

The company has got a mine with ores to the tune of 70 million tonnes at Chikkanayakana Halli in Karnataka. But it cannot mine there because of the mining ban in the State, he said.

The company is planting 2,600 saplings in parts of Mangalore. Nearly Rs 20 lakh will be spent for the maintenance of these saplings, he added.

Steel co gives houses, jobs and health care to villagers (http://www.deccanchronicle.com/channels/cities/bengaluru/steel-co-gives-houses-jobs-and-health-care-villagers-555)


Even when several industries in Karnataka are crippled by the ongoing iron ore crisis, a medium-sized business enterprise has the courage and spirit to go beyond. The Bellary-based BMM Ispat Limited is doing its bit in corporate social responsibility, even though it’s on the brink of closing down itself. “We never hesitate to offer assistance in any form when people come in asking for assistance,” said Silas Nerella, head of the company’s Community Outreach and Environment Management department. BMM Ispat is distributing 65 houses to people as part of the ‘Plant Rehabilitation Program’. “People need jobs, roof over their heads and adequate healthcare particularly in remote rural areas. We provide them,” said Dinesh Singhi, managing director.

He said this was not a one-off commitment, but a lifelong one. “This is not the first time the company is aiding the needy. BMM had built 700 houses at Rs 15 crore for flood victims of Kudloor and Motur villages in Bellary,” he said. Now they are holding medical camps for 300 physically handicapped people in Sandur; 23 were fitted with artificial Jaipur legs, 38 patients received Caliper legs and 52 patients received tricycles. In 2007, a free cleft lip and palate surgical correction camp was conducted and 50 patients were screened including children and infants. SDM College of Dental Sciences and Hospital, Dharwad operated some patients.

The company, building an integrated steel plant in Bellary costing Rs.6000 crore, is carrying out a gamut of social activities such as building schools, providing healthcare to the poor and needy. On the healthcare front a foundation, “Anurag Rehabili-tation Programme for Disa-bled Child” set up in 2008 in association with Sanjeevini Hospital of Bellary, is giving free treatment to children with club foot disease.

BMM Ispat, unlike others, is very sensitive and takes initiatives to save the environment. “Steel production, as we all understand, does entail many activities. We burn a lot of coal and release carbon dioxide into the horizon. We need to address this issue,” said Singhi. Having realised his responsibility, Singhi has gone and managed to integrate his company’s economic sustainability, environmental concern with the social needs of its stakeholders.

Concerned over 'tardiness' in govt approvals: L N Mittal

Steel magnate Lakshmi Mittal has expressed concerns over the Indian government's "slowness and tardiness" in giving approvals, especially to projects in the steel sector, but exuded confidence on the country's growth potential.

"Everyone is concerned about the progress and the slowness. Clearly, I am also concerned about the slowness and tardiness in some of the approvals," Mittal told private television channel in an interview here.

He was responding to a query on why he is critical of the way the Indian government has managed certain aspects, particularly regulations in the steel sector.

Mittal chairs the world's largest steelmaker ArcelorMittal which has plans to build 2 mega steel plants of 12MTPA in Jharkhand and Orissa and one 6MTPA plant in Karnataka at a total investment of about Rs 1,30,000 crore ($ 30 billion).

However, marred by regulatory delays and problems in land acquisition, the company has put its Orissa plans on hold. In September, 2010, it shifted the plant site in Jharkhand from Khunti-Gumla to Bokaro.

Mittal said that the company was in constant talks with the government to iron out issues.

"I am very pleased with my discussions with the government. At least, they are they are trying to resolve them. We have lots of other issues, so we need to work through this," he said.

Mittal also said India has great potential and its growth story will continue.

"I am not worried about India's future growth. We are on the right trajectory. We are affected by the global growth story and uncertainty in Europe, but this does not dismay us from growing," he said.

On growth potential of the global steel industry, Mittal said he expects the sector to grow by 2-3 per cent this year, owing to the slow growth all over the world, impacted by Europe and other western nations.

When asked about the US's protectionism stance, which is expected to be a burning topic in the World Economic Forum, Mittal said, "Definitely there are issues on protectionism. When there is no level-playing field between the countries then protectionism comes in.

"For example, if China's product has a lot of incentives and benefits and that we don't have in the Western world. As long as there is no level-playing field, there are issues."

http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/concerned-over-tardiness-in-govt-approvals-l-n-mittal/articleshow/11640614.cms

Logistic bottlenecks hampering supplies for steel industry in India - ASSOCHAM

Apex chamber ASSOCHAM has voiced concern over poor logistics infrastructure for supply of iron ore and coal for the steel industry and said slurry pipelines should be included in the list of industries with infrastructure status to address bulk transportation needs of the sector.

The Associated Chambers of Commerce and Industry of India said that moving iron ore and coal by pipelines in slurry form has advantages like low operating costs, higher availability and environment friendly. Existing railway lines are almost reaching a saturation point.

It said in recommendations for the National Steel Policy being formulated that “While augmenting railways infrastructure is important, slurry pipelines may eventually re invent raw material transportation for the iron and steel industry.”

In 2008 the Planning Commission included pipelines for water and oil and gas eligible for infrastructure status but slurry pipelines were not, despite being recommended by the Rangarajan Committee.

The chamber said road and rail connectivity at the Braganza Ghat section near Goa must be doubled as the port’s capacity is being expanded manifold. Rail connectivity from Jaigarh port should be provided up to Kohlapur so that steel manufacturing units in Hospet Bellary region can benefit.

The ports proposed on Karnataka coast will depend on completion of Hubli-Ankola and Talguppa-Honavar rail lines to service the steel industry efficiently. ASSOCHAM said smaller ports too need to be provided with four lane highways so that movement of imported coking coal can be improved.

It said that “Finished steel products need to be moved expeditiously from the plants to ports as dynamic market conditions place heavy strains on logistic systems to deliver products to consumers in the shortest possible time at economical costs.”

It said that development of national highway 63 and state highways connecting Bellary to Chitradurga, Hubli and Solapur will allow multi axle load vehicles to speedily move freight of finished steel to south India.

Railways and NHAI must give importance to resource rich states and not buckle to political lobbying.

New gold and copper deposits found in India
(http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=144859&sn=Detail&pid=102055)

Hint of significant gold and copper deposits have been found in Rajasthan, Karnataka and Uttar Pradesh, with the gold reserves believed to be world class.
lver

MUMBAI -
Rajasthan, well known for its crude oil will soon be known for its huge gold deposits. The Geological Survey of India (GSI) has struck huge reserves of gold ore in Rajasthan and a new report has indicated the presence of copper and gold deposits as well in Karnataka and Uttar Pradesh.
Internationally, such deposits are considered commercially viable if more than 2 gram of gold can be extracted from every tonne of ore, said officials.
"GSI has made three significant findings. There is the discovery of copper mineralisation at Khera block in Alwar district of Rajasthan and gold mineralisation in Tumkur and Sonbhadra districts in Karnataka and Uttar Pradesh respectively." said mines minister Dinsha Patel.

Earlier, GSI had similarly struck huge reserves of gold ore in Rajasthan's Banswara district. Though the commercial viability of mining there is still under evaluation, GSI had reportedly claimed that nearly 250,000,000 tonnes of gold ore was embedded in a 25 kilometre stretch across the tribal district.

GSI had also announced the finding of platinum and gold in eastern Maharashtra's Chandrapur district. Though gold is extracted at the Kolar Gold Fields of Karnataka from a depth of 13,000 feet, officials said the new findings would ease pressure on imports.

India imports nearly 1,000 tonnes of gold. The start of mining in these regions could also lead to the recovery of copper, zinc and nickel from the site, added officials.

At the 50th meeting of the Central Geological Programme Board, the minister reiterated that the Indian government is committed to providing all the facilities for the development of GSI and has recently approved the proposal for its restructuring. GSI plans to induct as many as 300 geoscientists and significant number of geophysicists and chemists during 2012-13 which will help in achieving goals envisaged under various schemes.

The minister added that the Ministry of Mines is proactively involved in developing the mineral sector. Out of the proposed outlay of $945 million sanctioned to the GSI, officials said a significant share had been apportioned for continuation of modernisation activities.

Officials added earlier exploration for gold in Ajjanahalli Block-C, Tumkur district in Karnataka had given a resource of 0.0995 million tonnes of gold at a cut off of 1g/t and average grade of 2.17g/t. On bringing the cut off down to 0.5g/t the resource was 0.213 million tonnes at an average grade of 1.45 g/t. Moreover, in Delwara West Block, a resource of 1.62 million tonnes of gold ore was augmented. Thus, the total gold ore inferred resource was pegged at 43.73 million tonnes.

GSI, which was founded way back in 1851 with the prime task of locating coal resources of the country, had earlier made three significant findings namely, discovery of copper mineralisation in the Khera Block, in the Mundiyawas-Khera area, Alwar district in Rajasthan and gold deposits with an average grade of 3g/t in the Ajjanahalli schist belt of Tumkur district, Karnataka. Gold mineralisation, with a surface average value of 4g/t had also been made in the Sonbhadra district of Uttar Pradesh.

Kirloskar Ferrous Industries completes installation of Sinter Plant at Koppal, Karnataka

The installation of Sinter Plant has been completed at the works of Kirloskar Ferrous Industries Ltd at Koppal, Karnataka.

The operations of the Sinter Plant have commenced with effect from January 01, 2012 and are under stabilization mode.


http://www.equitybulls.com/admin/news2006/news_det.asp?id=101471

Land acquired for Karnataka plant, says Tata Steel\

The Karnataka government has completed land acquisition for Tata Steel and Tata Metaliks integrated project at Haveri district, an official of the company said on Saturday.

"The Karnataka government has acquired 2,500 acre at Haveri for the integrated plant of Tata Steel and Tata Metaliks," Vice-President Partha Sengupta said here.

He said a 3 million-tonne steel plant would be set up and work would start in two years time.
The entire land was acquired by the government and the company would give compensation to landowners when asked, Sengupta said on the sidelines of Global Investors' Meet, 2012 roadshow of Karnataka industry and tourism ministries.

Sengupta said coal for the plant would be imported, while iron ore would be sourced locally.

BS (http://www.business-standard.com/india/news/land-acquired-for-karnataka-plant-says-tata-steel-/465835/)

‘Process to purchase land for Tata's Karnataka steel plant still on'

KOLKATA, FEB. 25:
The Karnataka Government is yet to complete land acquisition process for an integrated 3 million-tonne steel plant by Tata Steel in the Haveri district, according to Mr M. Maheshwar Rao, Commissioner, Industrial Development, Karnataka. “The land acquisition (for Tata Steel) is going on in an amicable manner. Not completed,” Mr Rao told Business Line in a text message without clarifying the acquisition details. He was in the city in connection with the road show for Global Investors' Meet 2012 at Bangalore later this year.

In June 2010, Tata Steel had signed a memorandum of understanding with Karnataka for setting up the steel plant spread across nearly 2,500 acres with an expected investment of Rs 6,000 crore. Tata Steel is reportedly implementing the project jointly with its subsidiary Tata Metaliks.

Earlier in the day, Mr Partha Sengupta, Vice-President, Tata Steel, said that the Karnataka Government was in the process of acquiring land for the project. Iron ore for the project will be sourced locally, he said, while addressing a media conference at the investors' meet. Other than Tata Steel and Tata Metaliks, Kolkata-based Concast group has entered signed a memorandum to invest in infrastructure projects in Karnataka. The biennial business event received investment commitments worth Rs 3.92 lakh crore from nearly 2,000 companies in 2010.

ArcelorMittal secures 1,827 acre for Karnataka project

NEW DELHI: World's largest steel producer ArcelorMittal has made some headway in India by getting possession of about 1,827 acres for the proposed 6 million tonne plant in Karnataka.

The company said in its annual report for 2011 that it has completed all necessary steps to acquire the land in Karnataka and is expecting to get the remaining 972 acres by May for the Rs 30,000-crore (USD 6.5 billion) project.

"A draft feasibility report for the contemplated steel plant is currently being prepared, and hydrological and environmental impact assessment studies have been initiated," it added.

Along side the steel mill in Karnataka, ArcelorMittal has also proposed to build a 750-MW captive power plant.

Company chief L N Mittal had said earlier this month that ArcelorMittal is not counting on India in its business plans for the next few years largely due to regulatory issues.

"It is very difficult to say anything... When we will start the construction, when we will really make the progress. We are not even counting them in our business plans for the next few years," L N Mittal had said while announcing the results for 2011 in a conference call.

The company's plans to build two mega steel mills of 12 million tonne (MT) each in Jharkhand and Odisha are yet to see the light of the day.

The projects, including the steel plant in Karnataka, would entail an investment of USD 30 billion (Rs 1,30,000 crore).

For the Jharkhand project, where it now intends to set up a 3 million tonne per annum (MTPA) capacity plant in the first phase, the company has sought "adequate land" under the State Government Consent Award Scheme.

"Under this scheme, the state government will facilitate the legal transfer of land for a project after an investor has secured the landowner's consent to the sale of the land," it said.

In 2010, the company had to shift its proposed plant site in Jharkhand from Khunti-Gumla to Bokaro due to problems in land acquisition.

The company has also initiated the process to renew its MoU with the Odisha government, which expired in December.

So far, the company has not been able to make any progress there and is facing problems in acquiring land.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/arcelormittal-secures-1827-acre-for-karnataka-project/articleshow/12041660.cms)

Haveri, Mar 1, 2012, DHNS:

* Farmers not ready to part with their fertile land

Farmers in the taluk have intensified their agitation against the acquisition of land for the setting up of a steel plant by Tata Metaliks.

On Thursday, they arrived from Agadi village in the city in more than 35 bullock carts and held a roadblock protest for more than an hour at the Hosamani Siddappa Circle.
More than 200 farmers raised slogans against the government’s move to acquire land for the steel plant.

Later, they had lunch brought from home squatting on the road, in an indication that they were ready for a prolonged agitation.

The protestors said that hundreds of families have been traditionally dependent on agriculture in their farms at Agadi and Boodagatti villages and have an emotional connect with their land.

Fertile lands

The agitators said that the lands in these two villages were the most fertile in the district. They were not ready to part with such fertile land, said former minister Basavaraj Shivannanavar.

Only a few farmers not ready to cultivate their land have come forward to give their land for the steel plant. The rest of the farmers cannot do any work other than agriculture, he said.

Shivannanavar said while the ministers, MLAs and officials have been claiming that the steel plant would create employment for 10,000 people, no one was thinking about the more than 35,000 people involved in agriculture, who would lose their livelihood.

DHNS (http://www.deccanherald.com/content/231355/anti-steel-plant-stir-intensifies.html)

Surya Vijayanagar Steel withdraws Rs 24,000 cr project in Karnataka

Even as the Karnataka government is going ahead in full steam to hold its second global investors’ meet (GIM) in June this year, some of the big-ticket investors in the steel sector that signed MoUs at the first GIM in 2010 are losing interest in investing due to delay on the part of the state government in allotting land and ban on mining.

While the government is still undecided on allotting land to South Korean steel major Posco at Halligudi in Gadag district due to opposition from farmers, another steel producer, Surya Vijayanagar Steels and Power Limited, a subsidiary of Surya Roshni Group, makers of light bulbs, tube lights and GI pipes, has withdrawn its proposal to set up a 6 million tonne per annum steel plant and 500 Mw captive power plant. The reason cited by the company for withdrawing its proposal is ban on mining in Bellary district.

The company had proposed to invest Rs 24,000 crore in its steel and captive power plant in Bagalkot district. The state high-level clearance committee headed by the chief minister had approved the investment proposal of the company. It had planned to set up the plant in Bagalkot district with water required for the project coming from Ghataprabha and Krishna rivers.

The chairman and managing director of the company had written a letter to the state government in June last year informing the decision of the board to withdraw their investment proposal owing to ban on iron ore mining. They also requested for refund of their initial deposit of Rs 52.80 crore towards the land acquisition cost. The government has accepted their request and approved their request to withdraw from the state, official sources told Business Standard.

Recently, the government has issued an official notification giving its consent to the company to withdraw their proposal.

Meanwhile, the state government has completed acquisition of 2,600 acres at Kuditini village in Bellary district for the 6 MTPA steel plant of Arcelor Mittal India. It, however, is yet to inform Posco that it has dropped Halligudi in Gadag district due to massive protests from the farmers for the project. In July last year, the then chief minister BS Yeddyurappa had announced that the government would not go ahead with the acquisition of land in Halligudi for the steel project.

Sources in Posco India confirmed that the government was yet to inform them officially about the dropping of Halligudi from land acquisition and indicate a new location for their 6 MTPA steel plant.http://www.business-standard.com/india/news/surya-vijayanagar-steel-withdraws-rs-24000-cr-project-in-karnataka/466691/

P M Raghunandan, Bangalore, March 6 2012, DHNS:

Steel giant cites low iron content in mines; move casts shadow on GIM-II
At a time when the State government is preparing for the second edition of Global Investors’ Meet (GIM), it has come to light that the world’s largest steel manufacturer ArcelorMittal has withdrawn its application seeking iron ore mining lease at Donimalai forest range in Bellary, citing inferior ore quality.

In a letter to the Department Industries and Commerce last June, the company said the exploratory works had revealed that the area did not have any significant mineral resources and hence, it was not economically feasible to have captive mines there.

“We undertook an exploratory programme within the allotted area and substantial area was explored. The exploration has revealed that the area is devoid of any significant mineralisation. It mainly has Banded Hematite Quartzite with lower Fe (Iron) content of about 30 per cent to 38 per cent. So, we would like to withdraw the application seeking mining lease,” the company said.

Govt’s worry

But what has caused concern for the government is that the firm - which has signed an MoU with the government to set up a Rs 30,000-crore steel plant (capacity six million tonnes per annum) at Kudatini in Bellary - has so far not submitted a fresh application seeking alternative mining lease.

The State government had, in 2010, recommended to the Centre to allot 211.24 hectares of mining lease in Donimalai range as per its commitment to provide captive mine to the company’s mega steel project. The government had left no stone unturned to woo the steel giant to the State. Of the 38 MoUs signed by the government for setting up iron and steel industries at the GIM in 2010 (GIM-I), ArcelorMittal was the first company to receive the letter of intent from the government promising mining lease (captive mines). ArcelorMittal’s decision, sources said, is likely to cause embarrassment to the government which is wooing investors in a big way for GIM-II, scheduled to be held on June 7 and 8 this year.

At the same time, the process to acquire 4,864 acres of land for the company’s steel plant has made significant progress. About 4,000 acres of land has already been acquired at Kudatini in Bellary and Karnataka Industrial Area Development Board (KIADB) is ready to hand over 3,000 acres to the company. The firm had deposited about Rs 268 crore with KIADB for the purpose.

When contacted, Industries Minister Murugesh Nirani said he was not aware of the company’s decision to withdraw the application. The Mines portfolio comes under the chief minister.

“As far as the project is concerned, it is very much on. KIADB is ready to hand over the land to the company,” he said.

Asked when the company would commence project implementation, he said he was not aware of it.

Project delay

According to official sources, the company’s decision to withdraw the application would delay the project implementation as the process of mining lease allotment has to be started all over again. It is a cumbersome process. The company has to be submit a fresh application and the department has to conduct hearing on it, before recommending to the Centre to allot mines.

Presently, the State government is neither receiving nor processing any application seeking mining leases as there is a blanket ban on iron ore mining in the State.

Besides, the Centre is contemplating to bring in a new and transparent system of mining to prevent illegal extraction of mineral resources, sources said. Allotment of captive mines is one of the company’s conditions to open its steel mill in the State.

DHNS (http://www.deccanherald.com/content/232579/arcelormittal-withdraws-application-bellary-ore.html)

ArcelorMittal seeks alternative captive mining site in Karnataka
(http://business-standard.com/india/news/arcelormittal-seeks-alternative-captive-mining-site-in-karnataka/467195/)
Mahesh Kulkarni / Bangalore Mar 09, 2012, 16:30 IST


Withdraws earlier application for captive mines in Donimalai region citing poor quality of iron ore

The world’s largest steel maker ArcelorMittal, which has proposed to set up a 6 million tonne per annum steel plant at an investment of Rs 30,000 crore in Karnataka’s Bellary district, has withdrawn application for captive iron ore mining lease citing poor quality of ore. The Karnataka government had identified Donimalai region in Bellary district for allocating iron ore mine to the company.

The company in an official letter to the state government has said it has found poor quality of iron ore in the area earmarked for it through an exploration. The exploratory studies conducted by the company in the area have established that the iron ore in that region consists of 30 per cent to 38 per cent Fe (iron) contents and is unfit for making steel.

“We have carried out substantial exploratory programme in the area and the studies have revealed that the Fe content (iron) in the ore is between 32 per cent and 38 per cent. The ore found here is mainly haematitie quartzite. It is not feasible for us to use such low-grade ore to produce steel and we have requested the state government to allot captive mines in some other location where the iron content is higher,” ArcelorMittal India official spokesperson Mandakini Sud told Business Standard.
However, she said the company is waiting for the Supreme Court verdict following the report submitted by the Central Empowered Committee. “Our plan to go ahead and set up the steel plant depends on owning a captive mining lease and also on what the court says on carrying out ecologically sustainable mining. We are very keenly awaiting the SC judgment. Our future is dependent on the verdict. We have to wait and see what the court says on restricting the production of iron ore. If they allow auction of iron ore, the company is ready to buy ore through auction,” she said.

ArcelorMittal had signed a memorandum of understanding with Karnataka government during the global investors’ meet in 2010 for setting up the 6 mtpa steel plant with a 750 Mw captive power plant. Subsequently, the government had recommended to the Centre for prior approval to grant mining lease to the company. It had identified 211 hectares of lease area for the company.

The company had deposited Rs 260 crore with the Karnataka Industrial Area Development Board (KIADB) for acquiring land for the project in Kuditini village in Bellary district. The KIADB has already acquired 1,828 acres land and handed over to the company. It is in the process of acquiring another 872 acres. ArcelorMittal has asked the government to hand over about 131 acres of government land to them, she said.

Sud said 2,786 acres is enough to build the steel plant, while it is yet to submit a detailed project report to the government for building the power plant. It will be done separately, she added.

State-owned Kudremukh Iron Ore Company Ltd. (KIOCL) has signed a memorandum of understanding (MoU) for exploration, development and mining in Akjoujt Iron Ore project at Mauritania in West Africa.

The MoU was signed on Monday with Curve Capital Ventures, a London based proprietary investment company, for the Akjoujt Iron Ore project. The MoU document was signed by Chairman and Managing Director of KIOCL K. Ranganath and Chief Executive Officer of Curve Capital Ventures Vinay Ganga in the presence of Additional Secretary and Financial Adviser to the Ministry of Steel S. Machendranathan.

Quoting Mr. Ranganath, a press release said that following the MoU, KIOCL would initiate the detailed due diligence and exploration activities in the interested area and KIOCL was also planning to acquire a portion of the licensed area for mining and allied activities.

Merger proposal

He added that KIOCL was looking on at a merger and acquisition proposal abroad to widen its raw material base and expand business activities.

The press release said that Curve Capital Ventures had invited bids for selection of a strategic partner to further explore, mine and develop iron ore.

The Hindu (http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/article2968472.ece)

When ores is exported out of India unhindered a public sector company has to search for ore outside the country. What a pity. What is KIOCL's plan? Import this ore for feeding pellet plant?

Proposed, U/C, completed projects

ArcelorMittal, Bellary - Steel Plant - 6MTPA (+ 2 to 3 MTPA per year second phase expansions) (+ 750 MW Captive Power Plant), 4000 acres, Rs. 30,000 crores -- MOU signed during GIM-2010
POSCO, ? - Steel Plant - 6 MTPA ? (4 MTPA expandable to 8 MTPA ???) (+ 400 MW Captive Power Plant), 3382 acres in Gadag, Rs. 32,366 crores
JSW - Steel Plant target 16 MTPA by 2015 existing 7 MTPA + 3 MTPA expansion u/c + 6 MTPA proposed) (+ 600 MW Captive Power Plant) -- MOU signed during GIM-2010
JSW Severfield Structures (JSSL) - planned target 0.09 MTPA by 2012
Bhushan Steel Limited (+Sumitomo), Bagalakote/Koppala/Ballary - Steel Plant - 6 MTPA (+ 600 MW Captive Power Plant) -- MOU signed during GIM-2010
NMDC, Bellary - Steel Plant 5 MTPA (intially 2 MTPA), 2500 acres, Rs.25,000 crores -- MOU signed during GIM-2010
NMDC - Planned Iron Ore Concentrate Plant - 0.03 MTPA
NMDC - Pellet Plant u/c 1.2 MTPA
Tata Metailks, Haveri - 3 to 5 MTPA, Rs.15,000 crores -- MOU signed during GIM-2010
Brahmani?, Bellary - 6 MTPA -- MOU signed during GIM-2010 (this project is taken over by somebody else?)
Mineral Enterprises Limited, Hasana - 0.6 MTPA?, 400 acres, Rs. 1000 crores
Mineral Enterprises Limited, Chitradurga - 3.5 MTPA?? 150 acres, Rs. 200 crores
Essar Steel (Hazira Steel), Bagalkot - 6 MTPA -- MOU signed during GIM-2010
Surya Roshani (Surya Vijayanagar STeel), Bagalakote - Steel Plant - 6 MTPA (+ 500 MW Captive Power Plant), Rs. 24,000 crores -- MOU signed during GIM-2010 - withdrawn the proposal
Surya Roshani, Shivamogga - Steel Pipe Plant - ? MTPA (Rs. 100 crores)
Adhunik Metaliks, Raichur - 2.2 MTPA -- MOU signed during GIM-2010
VIC Steels, Hospet, Bellary - 2 MTPA
VSL Mining, Bellary - 1 MTPA
PMB Metaliks, Tumkur - 0.50 MTPA
Renuka Infra, Bellary - 2 MTPA? -- MOU signed during GIM-2010
Suzlon, ? - Withdrawn?
Xindia Steels, Koppala - Pellete Plant - 0.8 MTPA
Xindia Steels, Koppala - Steel Plant - 2.5 MTPA
KIOCL, Bellary - Steel Plant - 1.5 MTPA upgradable to 5 MTPA
KIOCL, Mangaluru - completed Pellet Production Plant - 1.5 to 2.5 MTPA, targetted plan 3.5 MTPA
KIOCL, Mangaluru - Coke Oven Plant - 0.3 MTPA (+ 25 MW Captive Power Plant)
KIOCL, Mangaluru - planned DISP Plant - 0.1 MTPA
VISL, Bhadravathi - Steel Plant - 0.125 MTPA (~3 MTPA?, Rs 2,000 crores?)
MSPL - completed Pellet Plant - 1.2 MTPA
Karnataka Ferro Concentrates, Bellary - Pellete Plant - 1 MTPA, Rs. 225 crores
Varun Industries, Bagalakote - Pig Iron Plant - 0.35 MTPA, Rs. 2,100 crores
BMM ISPAT, Hosapete - Steel Plant - ? MTPA, 103 acres,
Bharat Mines & Minerals, - Steel Plant - 2.2 MTPA, Rs. 6,700 crores, 3,500 acres?
Saint Gobain, Bellary - Ductile Iron Pipes Plant - 0.18 MTPA
Hospet Steels (Kalyani & Mukund JVC) had capacity of 2.4 MTPA and now after expansion is it ~3 MTPA?
Kalyani Steels, Ginigera, Karnataka and has capacity of producing 650,000 tpa of carbon and alloy steels.
Kariganur Iron & Steel, Hospet - ???
Aaress Iron & Steel, Koppal - 1.2 MTPA ???
Surana, Raichur - ???
Xinxing Ductile, ? 3 MTPA Pellete Plant
MPIL Steel, Bellary - 0.025 MTPA , 21 acres, Rs. 170 crores (scaled up to 0.1 MTPA later)



Tadadi Port with handling capacity of 34.1 MTPA



Hi All, please don't hesitate to inform if I missed any project here.

Steel production dips in Karnataka

oor quality iron ore being supplied as a result of mining ban
New Delhi, March 11:

The multi-crore steel industry in Karnataka is witnessing a drastic fall in production due to supply of poor quality iron ore, as a fallout of ban on mining in the State, industry players said.

The industry says that over 22 million tonnes (MT) of iron ore from the stock of 25 MT has already been auctioned and remaining ore has big presence of alumina, silica and manganese, leading to fall in production as these contents can not be removed.

“We are running our blast furnaces at 70 per cent capacity ... We are hoping to get an immediate relief from the Supreme Court,” JSW Steel's Joint Managing Director and CFO, Mr Seshagiri Rao, told PTI.

He added that “availability of quality iron ore is a challenge ... quality is not good, it contains 5-6 per cent mix of alumina, silica and manganese . This can not be removed.”

The production of JSW Steel, which is the largest producer of the metal alloy in the state, has gone down by over 24 per cent in February, compared to January levels due to inferior quality of iron ore.

Besides, other iron and steel makers in Karnataka, which produces about 16 MT of the metal alloy every year, have also lowered their production “substantially” due to lower quality and depleting stocks of iron ore, industry sources said.

They added that the companies are not willing to risk their high investments on plant and machinery due to inferior quality of the iron ore and are keeping their production low, although did not quantified the fall in iron and steel production.

Last year, the Supreme Court had banned mining in Karnataka due to large scale environmental degradation of the areas. Later, it had allowed sale of 25 MT iron ore, lying at different mines of the state, through e-auction route. An official of the Kirloskar Ferrous, which runs a 50,000-tonne unit for grey iron castings in Karnataka, said: “The grade quality of remaining iron ore's stock is much below the 60 Fe content. We cannot run our plants on that as there are issues like slag formation.”

Expressing similar views, an official of a leading sponge iron manufacturer in the state, said, “Stocks of iron ore has nearly been exhausted and quality of the ore is inferior. Our equipment and machinery would become permanently unusable at the quality. It's better not to produce.”

Both the officials refused to be identified by saying that the matter is sub-judice.

The companies are hoping that the apex court would partially lift the ban, following the submission of final report of Central Empowered Committee (CEC) last month.

The CEC, in its final report, had recommended to cap iron ore mining in the State to 30 MT annually and allow mining in the 45 mines cleared of any wrong doing as soon as the ban is lifted. http://www.thehindubusinessline.com/industry-and-economy/economy/article2985014.ece?homepage=true&ref=wl_home

JSW Steel to set up electrical steel unit in Karnataka

Private steel manufacturer JSW Steel is planning to set up an electrical steel manufacturing facility with an annual capacity of 0.6 million tonne at Vijayanager in Karnataka, the company said here today. "We are planning to set up an electrical steel manufacturing facility of 0.6 mt capacity at our integrated steel works at Vijayanager," the company said in a release. This facility will produce 0.4-0.5 million tonne cold rolled non-grain oriented (CRNO) grade electrical steel, it said without divulging any financial details. The company said the first phase is expected to get commissioned in 24 months from the date of getting approval. The company is targeting production of 0.2 million tonne in the first phase. The company also has plans to produce cold rolled grain oriented (CRGO) grade going forward. JSW envisages becoming the largest electrical steel producer in the country," the press note said. As per estimates, demand for electrical steel at present is about 0.5 million tonne per annum, which is expected to double by 2016-17. "The demand for electrical steel is expected to grow at a CAGR of 15 percent. Commensurate with this rise in demand, JSW expects to cater to the growth by scaling its manufacturing facilities," the company said. JSW Steel had reported consolidated net loss of Rs 47.89 crore for the third quarter due to forex losses, higher raw material costs and the hit taken by group firm JSW Ispat Steel. However, its net sales rose 41 percent to Rs 8,404.66 crore during this period due to higher revenues from the steel business.http://ibnlive.in.com/generalnewsfeed/news/jsw-steel-to-set-up-electrical-steel-unit-in-karnataka/973654.html

JSW Steel forays into electric steel manufacturing with Japanese firmBT

JSW Steel enters electric steel segment

Sajjan Jindal-led JSW Steel on Monday said it is entering the electric steel segment and will set up a facility in collaboration with Japan's JFE Steel in Karnataka.

Electrical Steel is a high grade product and due to the technological constraints involved in its production, the market is largely dependent on imports.

The company plans to set up the 0.6 million tonnes per annum (MTPA) electric steel manufacturing facility at its Vijayanagar plant in Karnataka, the company said in a statement. However, it did not give the details of the investment.

"Initially, this facility shall produce 0.4-0.5 MTPA of Cold Rolled Non-grain Oriented (CRNO) grade electrical steel. The company will also take sight on the production of Cold Rolled Grain Oriented (CRGO) grade in future," JSW said.

It added that production of electric steel will be increased in a phased manner and the company aims to become the largest domestic producer in this category.

"The first phase of the facility shall produce 0.2 million tonnes per annum CRNO and which shall be expected to get commissioned in next 24 months from the date of receiving requisite approvals," said the company, which manufactures a wide range of flat and long steel products.

According to estimates, the present demand of the value-added product is about 0.5 MTPA and it is expected to double by the year, 2016-17.

"The demand of Electrical Steel is expected to grow at a CAGR of 15 per cent. Commensurate with this rise in demand, JSW expects to cater to the growth by scaling its manufacturing facilities," the company said.

JFE, a leading Japanese steel producer, holds about 15 per cent stake in JSW and both the companies also have agreement to collaborate in automotive steel manufacturing.

"JSW aspires to fully equip in order to adhere to the stringent quality standards required Electrical Steel with the support of JFE," the company said.

Shares of the company were trading at Rs 753 a piece on the BSE at 1.30 pm, up 0.75 per cent from the previous close.


http://businesstoday.intoday.in/story/jsw-steel-electric-steel-manufacturing-sajjan-jindal-company/1/23103.html

New Delhi, March 14, 2012 DHNS:

* Committee submits to apex court reclamation and rehabilitation plans

The Supreme Court-appointed Central Empowered Committee (CEC) on Wednesday recommended a 10-year prohibition in mining operations in Bellary, Chitradurga and Tumkur districts, areas under the illegal extraction of natural resources in Karnataka.

In its supplementary report before the apex court, the committee also submitted the reclamation and rehabilitation plans for mining leases in three districts following a “broad consensus” reached between its members, state government, experts from Indian Council for Forestry Research and Education and others.

“The proposed guidelines provide that in the areas found to be under illegal mining (except the areas falling in the sanctioned lease areas of the adjoining lessees), mining operations will be prohibited for next 10 years to ensure that such areas are properly rehabilitated,” the report said.

The committee also submitted that a ceiling of 25 million metric tonnes for total production of iron ore from all the mining leases in Bellary and a ceiling of 5 million metric tonnes for all mining leases in Chitradurga and Tumkur districts may be prescribed.

e-auction

It also suggested that the sale of iron ore should continue through e auction only under the supervision of the monitoring committee, set up by the apex court. The basic objectives of the proposed plan is to carry out time-bound reclamation and rehabilitation of the areas found to be under illegal mining and to ensure scientific and environmentally sustainable extraction, among other things.

The lease-wise reclamation and rehabilitation plans would provide for filling up of the illegal mining pits with the existing over burden waste, soil and conservation measures to stabilize those areas, besides the afforestation drive with indigenous species.

The CEC further proposed that the existing environment clearances, approved mining plans, the consent to operate and other statutory approvals will stand modified to reflect the permissible annual production prescribed in the reclamation and rehabilitation plans for each of the mining leases.

The lease-wise plan would be implemented by the respective lessee at its own cost but if it was found to be unsatisfactory, the plan would be implemented by the state government through its own agency at the cost of the lessee, it said.

The reclamation and rehabilitation plan for about 20 mining leases falling in category A and about 29 mining leases of category B are to be completed in phase one and two respectively within two months.

Recommendations

As far as the mining leases falling in category C are concerned, the CEC recommended that the allotment of those leases could be undertaken only after the reclamation and rehabilitation plans for each lease was prepared and the mining operation was found to be environmentally feasible.

DHNS (http://www.deccanherald.com/content/234556/cec-ban-mining-karnataka-10.html)

Does this mean that proposed steel industries should wait for 10 years to get mines?

Siemens to supply merchant bar mill to India's BMM Ispat

April 27, 2012 - 14:01 GMT Location: London

Plant manufacturer Siemens VAI Metals Technologies will supply a merchant bar mill to Indian steel company BMM Ispat, according to a press release issued this week.

The rolling mill will be located in Hospet, in the southern Indian state of Karnataka. It will have a production capacity of 850,000 tpy and its expected to start production at the end of 2013.

Karnataka steel plant on track, says ArcelorMittal

Bathinda, Apr 28, 2012 (PTI)
Rues that progress has been tad slow

ArcelorMittal today said it has been able to make some inroads for its proposed Rs 30,000 crore Karnataka steel project with the acquisition of a major part of the required land, but rued that the progress has been slow.

"There is some progress in terms of getting land, etc, a lot of approvals are needed but progress is slow," L N Mittal, Chairman, ArcelorMittal, told reporters here.

The world's largest steel maker requires 2,800 acres of land for its six million tonnes per annum (mtpa) steel plant in the southern state. However, so far it has acquired around 1,800 acres.

The company had in its latest annual report said it has completed all necessary steps to acquire the land and was expecting to get the remaining 972 acres by May this year.

"A draft feasibility report for the contemplated steel plant is currently being prepared, and hydrological and environmental impact assessment studies have been initiated," it added.
Along side the steel mill in Karnataka, ArcelorMittal has also proposed to build a 750-MW captive power plant.

ArcelorMittal also plans to build two mega steel mills of 12 million tonne (MT) each in Jharkhand and Odisha. However, both of them are yet to see much progress.

For the Jharkhand project, where it intends to set up three million tonne per annum plant in the first phase, the company has sought "adequate land" under the State Government Consent Award Scheme.

It has also initiated the process to renew its MoU with the Odisha government, which had expired last December.

http://www.deccanherald.com/content/245516/karnataka-steel-plant-track-says.html

:nuts:

^^ No mention of issues of getting license for a new mine.

ArcelorMittal may be putting up some allied steel industries also there. I am expecting ArcelorMittal to come up with a lot of downstream steel industries.

GOK is looking to allot donaimalai mines to mittal.I expect Automobile industries to make a bee line to Hubli-Dharwad once Steel plants of Mittal and posco take off in Hubli's vicinity

Siemens Metals bags BMM Ispat mill order

BANGALORE, MAY 2:
Siemens Metals Technologies has bagged BMM Ispat's merchant bar mill order for its Hospet plant.

The company in a release without disclosing the order amount said, “The order volume ranges in the lower double-digit millions of Euros. Commissioning of this rolling mill with an annual capacity of 850,000 tonnes of merchant bar steel products is scheduled for the end of 2013.”

BMM Ispat Ltd, second largest steel company in Karnataka, has embarked upon capacity addition of 2 million tonnes a year to the existing facilities at Hospet. The iron ore used stems from the group company's own mines in the region.

With the bar rolling mill, the company is expanding its production capacities for structural steels. The new plant is designed for the production of a wide range of end products.

The products include reinforcing steels, round bars, flat and square bars, angles and channel sections. Low and medium-carbon or low-alloy steel grades as well as spring and free cutting steel can be processed, said a company release.

The project will executed jointly by Siemens Metals Technologies Italy and Morgan Construction Company India (a Siemens VAI Business).

http://www.thehindubusinessline.com/companies/article3377313.ece

MUMBAI: Private steel manufacturer JSW Steel has a capital expenditure plan of Rs 6,000 crore in the current financial year for expanding its steel capacity.

"Our capital expenditure plan for the current fiscal is around Rs 6,000 crore, of which Rs 3,500 crore will be debt and the rest will be through the route of equity," Joint Managing Director and Group CFO Seshagiri Rao told reporters here.

JSW Steel, which has a 10 million tonnes steel plant at Vijaynagar in Karnataka, is currently under expansion phase to increase its capacity to 12 million tonnes.

"We hope to complete the expansion of Vijaynagar unit to 12 million tonnes by FY14," Chairman and Managing Director Sajjan Jindal said.

He, however, added that the company would not increase the Karnataka plant capacity to 16 million tonnes as planned earlier, until there is clarity on iron ore supply issue.

The company, which has around Rs 3,200 crore of cash reserve, has a gross debt-equity ratio of 0.98 percent by the end of March 2012.


http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/steel/jsw-steel-has-capex-plan-of-rs-6000-crore-in-fy13/articleshow/13139188.cms

Excellent news,once mining ban is lifted expect karnataka to house India's biggest steel plant with 16 MTPA :banana:

NMDC in Karnataka

Stressing on the importance of R&D, the company is developing process flow sheet for upgrading low grade iron ores such as BHJ from 41.5% Fe to 64% Fe, through setting up of a beneficiation plant at Donimalai, Karnataka. Besides, the company has also embarked upon expansion and diversification plans in India and abroad. It has made 50% acquisition in Legacy Iron Ore Limited, Australia which will give NMDC access to 3 iron ore and one gold deposit at exploration stage. The other upcoming projects of NMDC in India and abroad including 1.2 MTPA Pellet Plant in Donimalai, development of Deposit-11B Mine in Bailadila Sector, Chhattisgarh and Kumaraswamy Mine in Karnataka etc.

PIB (http://pib.nic.in/newsite/erelease.aspx?relid=84462)

Kalyani Steel's Rs 12,000-cr project among 31 plans cleared

High-level panel approves projects worth Rs 1.46 lakh crore
BANGALORE, MAY 23:
Karnataka's state high-level clearance committee (SHLCC) on Wednesday cleared Kalyani Steel's Rs 12,000 crore carbon alloy steel project and JK Cement's Ltd's Rs 2,327 crore new cement plant at its meeting.

A total of 31 projects worth over Rs 1,46,656 crore were cleared by the SHLCC, which was chaired by the Chief Minister, Mr D.V. Sadananda Gowda. These projects will lead to over three lakh jobs in the state.

Prominent projects cleared today are: J K Cement Ltd proposal to set up a plant to produce ordinary Portland cement (OPC), Portland Pozzolana cement (PPC), Portland slag cement (PSC) at Chitapur in Gulbarga district with an investment of Rs 2,326.65 crore.

Shivashankar Minerals Ltd proposes to set up 3.5 million tonne cement plant at Chincholi in Gulbarga with an investment of Rs 2,250 crore.

BMM Isapt plans to set up 3 MW gas-based integrated iron and steel plant at Dhanapura Village, Mariiyammanahalli Hobli, Hospet Taluk, Bellary District at a cost of Rs 16,229.68 crore.

Kalyani Steel Ltd plans to set up plant to make carbon alloy steel and stainless steel at Yadgir district with an investment of Rs 12,000 crore.

http://www.thehindubusinessline.com/industry-and-economy/government-and-policy/article3448852.ece?ref=wl_industry-and-economy

Good Karnataka's most backward district yadgir is seeing some investments.

Industries established are small and medium-scale ones
Contrary to the high expectations raised after the much-hyped first edition of Global Investors' Meet (GIM 2010), Bellary district is yet to become a hub of industrial activity.

As against 35 units, including five mega steel plants proposed to be set up in the district, for which memoranda of understanding (MoU) had been signed besides promising a whopping investment of Rs. 1.39 lakh crore, only five units, that too, of small and medium scale, have been established so far.

Among the five units that have come up four of them — JSW Severfield Structures, Jindal SAW, Sirguppa Sugars and Chemicals, Powernociks Ltd — were extension of the existing units. The total investment has been around Rs. 790.84 crore.

Sources in the District Industries Centre here told The Hindu that six units, approved during the GIM, including the integrated steel plant by ArcelorMittal, near Kuditini, and also NMDC, a Central government undertaking, expansion of existing unit of JSW from the present 10 million tonne per annum (mtpa) to 16 mtpa, JSW Infrastructure Ltd, were under various stages of implementation.

The Karnataka Industrial Areas Development Board (KIADB) has issued possession certificate for 1,827.60 acres of land to ArcelorMittal India Ltd in Kuditini Village for implementing the first stage of the 6 mtpa integrated steel plant, which it proposes to establish at an estimated cost of Rs. 30,000 crore.

Land acquisition

Similarly, the process of acquiring land by KIADB for the NMDC, which has plans to establish a 5 mtpa integrated steel plant and also for JSW Steel Ltd has begun. Distribution of compensation is under progress for the land acquired for JSW Infrastructure Ltd, while Jai Raj Ispat had applied for land conversion for setting up MS Billets of 0.20 mtpa and 30 megwatt captive power plant. “For the rest of 24 units, the process of acquiring land is in various stages,” sources said.

Bhushan Steels Limited, which had proposed to set up 6 mtpa integrated steel plant at an estimated cost of Rs. 27,926 crore near Gadiganur, has withdrawn when permission was denied by the State Wildlife Board as the proposed plant was coming up in close vicinity of the Daroji Sloth Bear sanctuary. Though the authorities from DIC had shown alternate land in Kudligi taluk, where the farmers were also keen to part with their land, the company was yet to respond, sources said.

Similarly, the Brahmini Industries Karnataka Limited, which was floated by the former minister and mining baron G. Janardhan Reddy to set up a 6 mtpa steel plant, withdrew and wanted to transfer the land to another company. Presently the matter is in court.

Had the industrial units, which were approved in the GIM, come up as per the schedule, the district would have seen an investment of around Rs. 1.39 lakh crore providing an employment to around 80,000 people.

http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/article3488252.ece

Such mega projects take time to fructify it is a pan india problem

Mahesh Kulkarni / Chennai/ Bangalore May 31, 2012, 00:15 IST

The Karnataka government has proposed to offer land to South Korean steel major Posco in Bagalkot or Yadgiri districts in north Karnataka to set up their 6 million tonne per annum steel plant. The decision comes after the stiff opposition put forward by farmers of Halligudi in Gadag district last year from acquiring their land for the proposed steel plant.

“The government has decided not to acquire land at Halligudi as some sections of farmers are opposed to parting with their land. We are in possession of sufficient land in Bagalkot and Yadagiri districts and we are ready to provide land to the company in these two places, depending on their choice,” Murugesh R Nirani, minister for large and medium industries, told Business Standard.

He said the government has already issued preliminary notification in Bagalkot district for acquisition of land as part of its land bank project. “We have more than 3,000 acres of land under acquisition process in Bagalkot district, which is near to the Almatti dam. We are ready to offer this land to Posco,” he said.

BS (http://www.business-standard.com/india/news/k%5Ctaka-to-offer-posco-land-in-bagalkot/475821/)

Bangalore: JSW Group Chairman Sajjan Jindal on Thursday said the mining scenario in Karnataka would improve in next two to three months following Central Empowered Committee recommending the Supreme Court that some mines in some districts could be opened up.

"Shortage of ore in Karnataka is getting resolved and the mines are getting operationalise. We expect things to improve in next two to three months," he told reporters on the sidelines of Global Investors Meet (GIM) 2012 here.

Jindal said that JSW's 10 million tonnes per annum (MTPA) Vijayanagar plant in Karnataka is currently running at 85-90 per cent capacity and expects to increase running capacity to 100 per cent once mines are opened up.

JSW Steel has been hit by a severe shortage of iron ore as the Supreme Court banned mining in three districts (Bellary, Chitradurga and Tumkur) of Karnataka last July and August to prevent further ecological damage. Since then, the company has met its requirement by buying ore in court-mandated auctions.

Continuous shortage of iron ore had forced Jindal to state that JSW Steel may close Karnataka plant on input shortage in September last.

"We may have to shut entirely (Vijayanagar plant)... There is a good possibility of that (closure) if the situation does not improve," Jindal had stated.

PTI

Zee News (http://zeenews.india.com/news/karnataka/mining-scenario-in-ktaka-will-improve-in-2-3-mont_780443.html)

Anil Urs

Bangalore, June 11:

The Karnataka Government has filed an affidavit before the Supreme Court seeking 10 million tonnes a year additional iron ore production.

“The State has been getting lot of requests for setting up iron ore benefaction units and also to encourage small and medium industries, we have sought apex court's permission for additional 10 million tonne per annum production,” said the Karnataka Chief Secretary, Mr S.V. Ranganath.

“If this is allowed, then we have will have a total of 40 million tonne per annum production in the state. We hope to get clearances soon,” he added.

The Supreme Court, based on the recommendation of the Central Empowered Committee, to check illegal milling, had capped iron ore mining in the state at 30 million tonne a year.

Bellary district was fixed at 25 million tonnes, whereas for other districts such as Chitradurga and Tumkur, a ceiling of 5 million tonnes had been imposed.

Mr Ranganath said “Currently only four ‘A category' mining companies are permitted to supply ore. In a few months from now, 20 more companies which are in final stage of implementing reclamation and rehabilitation (R&R) plan will go on stream.”

According to the Central Empowered Committee classification, ‘A category' mining companies are working leases where there is marginal illegality. There are 21 such leases in the state.

Under this category of mining, the companies are National Mineral Development Corporation (NMDC), Mineral Enterprises Limited, Veerabhadrappa Sangappa and Company (Vesco) and two leases of state-owned Mysore Minerals Limited.

“For time being, this quantity is sufficient to fulfil the state's needs. There are 20 mining leases of 50 hectares and above in category A. The restarting a few of these will make available around 10 million tonnes,” he added.

anil.u@thehindu.co.in

BL (http://www.thehindubusinessline.com/industry-and-economy/article3516201.ece?homepage=true&ref=wl_home)

New proposals, if realised, would add close to 28 MTPA steel capacity in state
Mahesh Kulkarni / Chennai/ Bangalore Jun 13, 2012, 00:05 IST

The temporary ban on iron ore mining and cap on extraction of ore to 30 million tonnes by the Supreme Court in Karnataka has not deterred the iron and steel industry from investing in the state. At the just-concluded Global Investors’ Meet (GIM 2012) in Bangalore, the state government has managed to attract fresh investment proposals worth over Rs 1 lakh crore to the steel sector.

Top steel producers like JSW Steel, Tata Steel and largest mining firm NMDC are among some one dozen companies that have signed memoranda of understanding or expressions of interest to set up steel plants in Karnataka. These proposals, if realised, would add close to 28 million tonnes of steel and allied products manufacturing capacity in the state. Presently, Karnataka contributes 30 per cent or 16.5 million tonnes of national steel output.

However, unlike in GIM 2010 when the iron and steel sector accounted for 66 per cent of the investment proposals, the sector accounts for just about 15 per cent of the total investment proposls signed at GIM 2012. The state signed MoUs or EoIs for a total of Rs 7.6 lakh crore on June 7 and June 8.
The prominent among the MoUs in the steel sector were that of the NMDC for Rs 25,000 crore to set up a steel plant, a power plant and a pellet plant at a location yet to be decided. Tata Steel Ltd has proposed to enhance the capacity of its proposed integrated steel plant at Haveri from 3 million tonne per annum to 6 million tonne per annum at an investment of Rs 20,000 crore. BMM Ispat has proposed to set up a gas-based steel plant with a capacity of 3 MTPA at Dhanapura village in Bellary district at an investment of Rs 16,230 crore.

Kalyani Steels Ltd has signed two MoUs for setting up a 3 MTPA plant to produce carbon and alloy steels, reinforcement bars and structured steel for an investment of Rs 7,500 crore in Koppal district and another plant to manufacture carbon, alloy and stainless steels among others at a cost of Rs 12,000 crore in Yadgir district.

JSW Steel Ltd, which already operates India’s largest single location steel plant with a 10 MTPA capacity, has proposed to invest Rs 4,190 crore to manufacture cold rolled annealed and skin passed coils with 1.9 MTPA capacity at its plant in Toranagal in Bellary district. JSW Projects Limited has proposed to invest Rs 2,400 crore to set up 1.20 MTPA DRI (Direct Reduced Iron) plant, 3.42 MTPA Coke Dry Quenching (CDQ) plant and 70 Mw captive power plant at Toranagal in Bellary district.

Mukand Ltd has proposed to set up a 700,000 tonnes per annum integrated steel plant at a cost of Rs 2,892 crore in Koppal district. Zeenath Transport Company, an exporter of iron ore, has proposed to set up 1.2 MTPA iron ore beneficiation plant, 1.2 MTPA pellet plant, and 500,000 tonnes per annum integrated steel plant with 140 Mw power plants in Bellary district.

Reliance Cement Company Pvt Ltd has proposed to set up a 2 MTPA cement plant at an investment of Rs 2,000 crore in Bagalkot district.

Meanwhile, the Karnataka government has urged the Supreme Court to rework the cap on iron ore mining and fix the ceiling at 40 million tonnes per annum as against 30 million tonnes recommended by the CEC.

BS (http://www.business-standard.com/india/news/state-attracts-rs-1-lakh-crore-investment-proposals-in-steel/477115/)

Industries dept officials to identify alternate land in northern districts
Bangalore, Aug.17:

Karnataka's industries department has called a meeting on August 23 to discuss issues related to land allotment to Posco's proposed steel mill in the state.

According to the Karnataka Industries Minister, Mr Murgesh Nirani, the department officials will meet to take stock of the recent development revolving around Posco in Gadag district and find alternate land in any one of the north Karnataka districts.

“This time around, the state government is to consult and take into confidence the local community, mutts and farmers,” said Mr Nirani.

After the Halligudi fiasco, the state government has been busy preparing ‘plan B'.

Mr Nirani last month had said ‘Plan B' is to accommodate Posco steel plant in the neighbouring Bagalkot district, for which the Karnataka Industrial Areas Development Board (KIADB) has already identified land in the district.

The state government, in July, had to cancel land allotment to Posco in Halligudi in Mundargi taluk in Gadag district after farmers, led by seers of Gadag district, Sri Annadanishwara Swamiji of Mundargi and Sri Tontada Siddhalinga Swamiji of Gadag resorted to agitation.

Majority of farmers in Jantli-Shirur, Halligudi and Mevundi opposed the land acquisition. A total of 5,685.27 acres proposed to be acquired was to benefit three companies, including Posco, which had plans to set up a Rs 32,366-crore steel project.

BL (http://www.thehindubusinessline.com/companies/article2366171.ece)

Gadag would have been an ideal location so that ancilliary steel units could have come up in Dharwad region. This along with Tata steel coming up in Haveri would have made tremendous contribution towards industrialization of the region. Anyway as the region falls within Ballari-Tadadi corridor chances are still bright for Dharwad to become a hub of ancilliary steel units.

Press Trust Of India / Kolkata/ Jamshedpur Jun 19, 2012, 00:47 IST

The Uranium Corporation of India and the Karnataka government has signed a memorandum of understanding to set up a uranium ore mining and processing plant in Karnataka.

UCIL proposed to invest Rs 550 crore in the plant at Gogi, Saidapur, Diggi and Umardoddi villages at Shahapur taluk of Karnataka's Yadgir district, a release said here on Monday.

The Karnataka government would help UCIL to obtain permissions, registrations, approvals and clearances from the concerned departments as per the existing policies andrules and regulations of the state government, it said.

The project was expected to begin in 2013 and provide employment to 361 persons, it said.

The pact was signed in Bangaluru during the Global Investor’s Meet 2012 held recently.

BS (http://www.business-standard.com/india/news/ucil-karnataka-sign-mou-for-uranium-ore-mining/477720/)

Mods, please change the name of the thread as 'Karnataka Steel & Minerals'.

Bangalore: With Karnataka’s mining industry getting past the worst phase in the wake of partial lifting of the ban, miners, officials, exporters and importers from India and abroad will hold a high-profile two-day brainstorming to rebuild the state’s lucrative mining industry through beneficiation technologies.

The brainstorming, involving senior Karnataka ministers, Central officials, industry leaders and delegates from countries like China, Singapore and Australia, will be held alongside the annual conference of OreTeam, a leading global research house, in Bengaluru on July 4 and 5.

The Karnataka government, hard-pressed to rebuild the mining industry, has shown its intent to encourage investments in the sector. The OreTeam’s conference is happening close on the heels of the recent Global Investors Meet in Karnataka.

“The worst may be over, but the path ahead is trick. Indian iron ore exports were severely affected in the past due to the ban on mining operations in Karnataka which produces close to 70% of magnetite ore in the country and is the third largest producer of steel. With mining expected to take off soon, it is time that all stakeholders come together and work out strategies to find out value additions like pelletisation and rebuild the industry. The event is going to be the perfect opportunity to lay the roadmap for future,’’ said Sachin Seghal, Director of OreTeam.

“The mining industry, on its own, produces nearly 15% of the state’s industrial output and investments of billions of dollars are pouring into the state for setting up new iron and steel making capacities. There are close to 50 DRI plants in the state producing nearly 6 million tons of sponge iron and 16.5 million tons of crude steel. Put together, all these units require nearly 32 million tons of iron ore,’’ he said.

“At this juncture, the miners are looking at beneficiation technologies like pelletization as their only hope of generating income. The miners have gone through immense mental and financial hardships in the last two years and are now planning to come up with these value addition processes which would provide them a sustainable growth,’’ the OreTeam spokesperson said.

“In the existing scenario in Karnataka, the miners appear to have accepted that exports may not be possible anymore for some time and till then they need to find an alternate means of income. Pellet plants can be as small as 0.8 mtpa and an investment of close to Rs 200 crores is required to erect and set them running.

As compared to the integrated steel mills the capital requirement is quite small while setting up pellet plants and the final product (i.e. iron ore pellets) can be easily sold either to the domestic steel mills, DRI plants or even exported if the price is right,’’ pointed out Prakash Duvvuri, senior analyst at Oreteam. The conference will also provide an opportunity for interactions between the miners and traders as many foreign companies are keen to invest and give technology for pelletization.

Siemens from Austria and Kobe from Japan have already set up their bases in India to provide their technologies. “With availability of high grade lump ore increasingly becoming scarce, the demand for beneficiation and pelletizing technologies is growing in importance. These technologies ensure utilization of fines, and are therefore an imperative with respect to Industrial outlook on sustainability of environment and natural resources,’’ said the official spokesperson of Finland-based Outotec, which is sending delegation to the conference.

The conference will dwell upon topics like ‘new opportunities in the state for iron and steel industry,’ ‘resumption of iron ore mining and export potential,’ ‘Steel & Iron ore trade scenario in Karnataka and South India’, ‘studying the future of raw material scenario in the state,’ ‘importance & need of beneficiation, pelletization and coal gasification,’ and ‘investment opportunities.’

An “open debate” between the key officials of the state and centre, along with the delegates and media, will also be a major highlight of the event. A 7-member panel from State’s various divisions and industry experts will preside over the hour-long debate which is expected to set the tone for the future course of the industry.

Major companies like JSW Steel, Frost, RioTinto, Vale, Synergy Group and Posco would be attending the event. Technology providers like Outotec, Naltern, Siemens and Shougang will present their new processes. RioTinto and will be showcasing its core steel making HIsmelt process.

The sessions will see participation of a host of leading officials and miners, apart from senior ministers from the state like Murugesh Rudrappa Nirani (Minister for Large and Medium Scale Industries), Narasimha Nayak (Minister for Small Scale Industries), and Yogishwar (Minister for Forest).

H R Srinivasa (Director, Dept of Mines, Karnataka), Narasimha Nayaka (President, KSSIDC), A C R Das ( Industrial Advisor, Union Ministry of Steel), Kopal Ganesh (Mining Syndicate, Karnataka), A Murail (President, Bellary Mine Owners Association), Manguish Pai Raikar (Secretary General, Goa Chamber of Commerce), Vinod Nowal (CEO, JSW Steel), Sharad Mahendra (Vice President, Sales & Marketing, JSW Steel) and Srinivasan (President, Karnataka SIMA) are some of the leading figures expected to attend the crucial event.

Daily Bhaskar (http://daily.bhaskar.com/article/BAN-karnataka-mining-industrys-future-to-be-discussed-at-oreteams-meet-3446051.html?HF-6=)

I think Karnataka's annual iron ore mining capacity is 40 MTPA. Already steel plants of capacity more than 40 MTPA are proposed. Once the steel plants start functioning all ore & pellets has to go to them.

KOLKATA, FEB. 25:

The Karnataka Government is yet to complete land acquisition process for an integrated 3 million-tonne steel plant by Tata Steel in the Haveri district, according to Mr M. Maheshwar Rao, Commissioner, Industrial Development, Karnataka. “The land acquisition (for Tata Steel) is going on in an amicable manner. Not completed,” Mr Rao told Business Line in a text message without clarifying the acquisition details. He was in the city in connection with the road show for Global Investors' Meet 2012 at Bangalore later this year.

In June 2010, Tata Steel had signed a memorandum of understanding with Karnataka for setting up the steel plant spread across nearly 2,500 acres with an expected investment of Rs 6,000 crore. Tata Steel is reportedly implementing the project jointly with its subsidiary Tata Metaliks.

Earlier in the day, Mr Partha Sengupta, Vice-President, Tata Steel, said that the Karnataka Government was in the process of acquiring land for the project. Iron ore for the project will be sourced locally, he said, while addressing a media conference at the investors' meet. Other than Tata Steel and Tata Metaliks, Kolkata-based Concast group has entered signed a memorandum to invest in infrastructure projects in Karnataka. The biennial business event received investment commitments worth Rs 3.92 lakh crore from nearly 2,000 companies in 2010.

ayan.pramanik@thehindu.co.in

BL (http://www.thehindubusinessline.com/industry-and-economy/article2932501.ece)

Karnataka miners look to diversify into pellet making
(http://www.business-standard.com/india/news/karnataka-miners-look-to-diversify-into-pellet-making-/478584/)

Absence of export duty and relatively low capital requirement make it an attractive option

Iron ore processing plant : Professional Design & Installation. "Mineral Processing Plant"

Iron ore miners in Karnataka, facing uncertainty over possibility of exports in the near future, are increasingly looking at new opportunities to earn higher profits. A large number of miners is exploring the possibility of diversifying into manufacturing and export of pellets, because of the absence of any duty on pellet exports.

At present, the demand for pellets in India is estimated at 37 million tonnes per annum (mtpa) and is projected to double to 76 mtpa by 2016-17. The pellet-making capacity is likely to double to about 30.3 mt in Karnataka over the next three years. Currently, seven pellet-making plants are operating in the state with an installed capacity of 15.4 mt. These include KIOCL, MSPL, Xindia and BMM Ispat.

In addition, JSW Steel has a pellet plant with a capacity of eight to nine mtpa. Karnataka currently contributes about 36 per cent of the national production of pellets. About 14 new pellet plants with a combined capacity of about 15 mt at an estimated investment of Rs 4,000 crore are in various stages of implementation in the state. Mineral Enterprises, KEJ Minerals, RBSSN Ferrous Industries, Doddannavar Nanjinzhao Mining and Metallurgy, Shree Renuka Energy, VSL Mining Company, Kalavati Ispat & Power and Concast Infrastructure are setting up new pellets plants in Karnataka.
“For miners in Karnataka, it makes sense to export pellets, because they cannot export iron ore for now. Also, by exporting pellets miners can earn about $12-15 extra per tonne as the realisation is higher than iron ore,” Basant Poddar, vice-chairman, Federation of Indian Mineral Industries (FIMI), South, said.

Currently, pellets earn an export price of $153-155 per tonne (cost and freight) in China as against $138 per tonne (cost and freight) for iron ore of 63 per cent Fe grade. Export of pellets from India is likely to increase considerably. India’s export of pellets in 2010 stood at 3.7 mt. KIOCL, JSPL and Mandovi are the leading exporters of pellets from India.

The national production of pellets stands at 42 mtpa and another 32.5 mtpa capacity is under implementation. Fresh memorandums of understanding signed for setting up new plants amount to 51.9 mtpa. While the total demand for pellets in India stands at 37 mtpa, the balance is exported. The government had exempted pellet exports from export duty during the last financial year.

“In the existing scenario in Karnataka, miners appear to have accepted that exports may not be possible for some time. Till then they need to find an alternate means of income. Compared to integrated steel mills, the capital requirement to set up pellet plants is quite small and the final product (iron ore pellets) can be easily sold, either to domestic steel mills, DRI plants or even exported, if the price is right,’’ Prakash Duvvuri, senior analyst at OreTeam, a New Delhi-based mining consultancy firm, said.

Pellet plants can be as small as 0.8 mtpa and an investment of close to Rs 200 crore is required to erect and set these running, he pointed out.

He added several miners were looking for joint venture opportunities in technology besides finance from Chinese companies.


:banana:

Ajith Athrady, New Delhi, june 23, 2012, DHNS:

* Agency told to complete survey of iron ore mines

Eager to restart iron ore mining at the earliest in Karnataka, the Ministry of Mines has directed the Indian Bureau of Mines (IBM) to expedite the process of surveying of iron ore mines in co-ordination with different agencies, including the state government.

Ministry of Mines Secretary Vishwapati Trivedi, who chaired the review meeting of the IBM recently here, is learnt to have advised the organisation to survey dump yard and spill over areas also to ensure that the mining companies restricted their activities only to leased areas.

The ministry is under pressure from steel industry to take steps for resumption of iron ore mining in Karnataka to meet the industry demand. Iron ore mining in Karnataka was banned due to complaints of illegal mining and only state run NMDC is allowed to excavate ore and supply to steel plants.

Earlier, the Central Empowered Committee (CEC) appointed by the Supreme Court to probe illegal mining in Karnataka told the Ministry of Mines that resumption of mining operations would be possible only after Indian Bureau of Mines approved the mining leases. In a letter to the Mines Secretary, the CEC said following the Supreme Court order, preparation and implementation of reclamation and rehabilitation (R&R) plans in respect of leases of 50 hectares and above in Bellary Chitradurga and Tumkur districts have been undertaken by the Karnataka government through the Indian Council of Forestry Research and Education (ICFRE). The R&R plans are being executed under the supervision of the Central Empowered Committee.

As per the information provided to the Central Empowered Committee in respect of a large number of mining leases, the period of the approved plan/scheme has either expired or nearing expiry. Therefore, the mining operations in respect of such leases can be allowed to be re-started only after their mining plans are approved by the IBM, the Central Empowered Committeesaid in the letter.

In Karnataka, the Central Empowered Committee had classified the mining leases in the three ore rich districts into three categories: Category A comprises 45 mines where there is no illegality. Category B comprises 72 leases, where the Central Empowered Committee found illegal mining with mining pits extending 10 per cent beyond sanctioned areas and in areas where waste dumps are outside the lease. Category C comprises 49 leases with maximum violations of the Forest Conservation Act.

As part of checking illegal mining, the IBM has also intensified the process of registration of miners, stockists, traders, exporters and end-users of mineral to prevent illegal mining activities.

So far out of 5,931 lease holders of all types of minerals, registration number numbers have been allotted to 4,976 and remaining are under process.

DHNS (http://www.deccanherald.com/content/259213/govt-keen-restart-mining-karnataka.html)

GIM-2012 Iron & Steel MOUs
http://farm9.staticflickr.com/8026/7485345724_b385267292_b.jpg

Karnataka seeks to mobilise Rs 10,000 cr from mining (http://www.business-standard.com/india/news/karnataka-seeks-to-mobilise-rs-10000-crmining/479383/)

Government is looking to mobilise close to Rs 10,000 crore from the iron ore mining sector which will be transferred to a special purpose vehicle (SPV) to undertake social infrastructure development works in the three mining districts where large scale environment degradation has taken place due to iron ore mining, a top government official said.

“As directed by the Supreme Court, based on the recommendations of the Central Empowered Committee (CEC), the state government has set in motion the process of forming an SPV. The chief secretary has held a meeting in this regard on June 4 and June 5. The government proposes to mobilise this money from various sources,” H R Srinivasa, director, department of mines and geology, said here on Wednesday.

Talking to reporters on the sidelines of a two-day 2nd annual conference organised by OreTeam, a Delhi-based mining research firm, here, he said the government would mobilise funds from the auctioning of Category C mines (which had carried out substantial portion of illegal mining). There are about 49 mining leases in the ‘C’ category and the CEC has recommended cancellation of these licences.
The government would also collect about 20 per cent from the sale of iron ore through e-auction (about Rs 1,200 crore) and Rs 5 crore penalty for every hectare of encroachment and Rs 1 crore for dumping mineral waste outside the dump area.

The state government has sold about 22 million tonnes of iron ore of the 25 million tonnes stockpile released for e-auctions. The sale value of this ore was about Rs 6,000 crore, he said adding that iron ore would be sold in the state only through e-auctions till April 2014 as recommended by the CEC.

All these funds would be put into the SPV which will take up various social infrastructure creation measures in the mining districts of Bellary, Chitradurga and Tumkur. The state chief secretary would be heading the SPV as directed by the Apex Court, he said.

The government is presently waiting for the Supreme Court to pronounce its order on the ‘C’ Category mines and the government would go ahead with the formation of the SPV only after that, Srinivasa added.

Karnataka's scam-hit mining industry has been urged to ensure sustainability for safeguarding the interests of stakeholders and the environment.

"Sustainability should be the first priority of the mining industry, which suffered enormously due to illegal mining and export of iron ore over the years. The industry should put in place a fool-proof mechanism to safeguard the interests of all, including stakeholders, environment and the people," former Karnataka Lokayukta (ombudsman) Justice (retd.) N. Santosh Hegde said at a conference in Bangalore.

Expressing grave concern over the huge damage caused to environment and basic and social infrastructure in the mineral-rich districts of the state, especially Bellary due to the multi-crore mining scam in the past decade, the former Supreme Court judge said the natural resources should be used only for domestic consumption and not for raking money by exports.

Bellary, Chitradurga and Tumkur in north, central and southern region of the state are the main districts which boast of mineral reserves, especially iron ore and manganese.

"In my investigation reports on the mining scam, I have recommended to the state government to ban trading in iron ore, including its export as the mineral should be reserved only for domestic consumption by steel producers and end-users, as illegal mining and illegal exports not only caused huge loss to the exchequer, but also damaged infrastructure and the environment," Hegde said at the OreTeam's second annual conference on 'Karnataka's Iron Ore Mining & Steel making Capabilities'.

"The state government should change the mining policy to ensure the natural resources are not exploited for profit trading and exports but mined for value addition by manufacturers through transparent bidding process. It is the responsibility of the industry to protect the fragile environment and secure the welfare of the people living in the region," Hegde told about 100 delegates, including captains of the industry, experts, policy makers and state government officials attending the two-day conference.

The forest bench of the apex court headed by Chief Justice S.H. Kapadia, which banned mining activity across the state in July-August 2011 following the mining scam, partially lifted the ban April 20 in the three districts in the state with stiff conditions.

Sharing the industry's concerns on huge loss of jobs and revenue due to the mining ban, Hegde said it was the price the industry and its stakeholders were paying due to the crimes of a few greedy mining firms, which flouted every rule in the book to make a quick buck at the expense of genuine people.

SME TIMES (http://www.smetimes.in/smetimes/news/indian-economy-news/2012/Jul/06/ensure-sustainability-karnataka-s-mining-industry-urged627600.html)

Reserve iron ore only for domestic consumption: Justice Hegde‎ (http://ibnlive.in.com/generalnewsfeed/news/reserve-iron-ore-only-for-domestic-consumption-justice-hegde/1019592.html)
e-auction causing mining monopoly: Justice Santosh Hegde (http://www.deccanherald.com/content/262166/e-auction-causing-mining-monopoly.html)
K'taka mines may start ops from mid-Aug: Kalyani Steel‎ (http://www.moneycontrol.com/news/business/karnataka-mines-may-start-opsmid-aug-kalyani-steel_726170.html)
JSW Steel a victim of illegal mining in Karnataka: Sajjan Jindal (http://articles.economictimes.indiatimes.com/2012-07-05/news/32551835_1_iron-ore-illegal-mining-vijaynagar-facility)
JSW Steel keen on bidding for iron ore mines‎ (http://www.thehindubusinessline.com/companies/article3606653.ece?homepage=true&ref=wl_home)
Illegal mining in state was like Mahabharata (http://www.dnaindia.com/bangalore/report_illegal-mining-in-state-was-like-mahabharata_1710843)
Apex court order enables ore beneficiation, value-addition in Karnataka (http://www.thehindubusinessline.com/news/states/article3594651.ece)

Six companies plan to invest in Chitradurga district

They will inspect the land identified for the proposed units soon
Of the 17 companies that expressed their intention to open their units in the district in the Global Investors Meet 2012, six companies have signed memorandums of understanding (MoUs) and have agreed to inspect the land indentified by the District Industries Department shortly. According to official sources, Atria Power Corporation Ltd. will set up a 25 MW solar thermal power plant by investing Rs. 416 crore and provide employment to 375 people, and Chitradurga Steel and Power Private Ltd. will set up a mini-steel plant by investing Rs. 145 crore and provide employment to 220 people.

M/s Mineral Enterprises Ltd. will establish a steel plant with an investment of Rs. 247 crore that would create employment for 2,964 people, a 0.15 MTPA steel plant and a 20 MW power plant, (coal 7.5 MW and waste heat recovery 12.5 MW) at an investment of Rs. 265 crore.

This would generate employment for 2,270 people.

Power plant

Sources said that Prakash Sponge Iron and Power Private Ltd. would set up a gas-based power plant with an investment of Rs. 690 crore, that would provide employment to 170 persons and the Vani Vilas Cements Private Ltd. has decided to set up a cement plant by investing Rs. 800 crore that would provide employment to 1,500 people.

Apart from these six, 11 companies that had shown interest in investing in the district are assessing the available facilities such as transport and water for their plants. In the GIM in 2010, Reliance Industries had shown interest in setting up a cement unit in the district. However, the company withdrew its proposal owing to lack of infrastructure as per its requirements.


11 more companies have also expressed interest in investing in the district

Reliance had proposed to set up a cement plant during GIM 2010 but backed out

GIM-2012 MOUs/RoIs/EoIs for Steel

http://www.freeimagehosting.net/newuploads/i4wn8.jpg
http://www.freeimagehosting.net/newuploads/vdw4y.jpg
http://www.freeimagehosting.net/newuploads/zmdb3.jpg
http://www.freeimagehosting.net/newuploads/khfnf.jpg

Taken from Karnataka Udyoga Mitra (http://www.google.com/url?sa=t&rct=j&q=mou+roi+eoi&source=web&cd=6&ved=0CF0QFjAF&url=http%3A%2F%2Fwww.kumbangalore.com%2Fdownload.aspx%3Ffile%3DUploads%2FFileUpload%2FGIM%2520MOU%2520EOI%2520%2520ROI%2520projects.xlsx&ei=iwr4T7u-AY_zrQeq14HEBg&usg=AFQjCNEWhkdB55oaSTmdtGL60AA-azGiRQ&cad=rja) & Advantage Karnataka (http://www.advantagekarnataka.com/).

GIM = Global Investors Meet
MOU = Memorandum Of Understanding
RoI = Registration of Interest
EoI = Expression of Interest

Mahesh Kulkarni / Chennai/ Bangalore Jul 16, 2012, 00:24 IST

JSW Steel Limited, the country’s lowest-cost steel producer, plans to set up a 2.3 million tonne per annum (mtpa) cold rolling mill complex to manufacture high-grade automotive steel at Toranagallu in Bellary district. The project is being implemented in phases at an estimated cost of Rs 4,500 crore with Phase-I getting operational by March 2013 and Phase II by December 2013.

In addition to the CRM complex, JSW has also signed an MoU with the state government for setting up a 3.42 MTPA coke dry quenching (CDQ) plant to produce steel. The third new investment project planned by the company is a 1.20 MTPA DRI (direct reduced iron) plant. The total investment on the two plants is Rs 2,400 crore.

Seshagiri Rao, joint managing director and group CFO of JSW, said the company would explore the option of ECA (export credit agencies) backed loans, available at competitive rates to fund about 50 per cent of the cost. “As 50 per cent of the project involves import of technology and equipment, the ECAs in Japan and Europe would be available for us to raise loans. We are looking to raise about Rs 3,000 crore from Japanese Exim Bank to fund our project. We are importing technology from JFE Steel Corp of Japan for the CRM project and the equipment will come from companies both in Japan and Europe,” he said.

He said the ECA loans are available at a competitive interest rate of 3.2 per cent for Dollar denominated loans for a longer tenure of 10-13 years. The loans would be drawn as and when the import of equipment happens, he said, adding the company has placed orders for the equipment for CRM project.

Though the company can access funds at lower rates, it would result in its debt position further going up close to Rs 20,000 crore. Presently, its net debt stands at Rs 16,600 crore. The company has already tied up finance from domestic banks for its DRI project, Rao added.

“We have signed an MoU with Karnataka to set up three projects at the global investors’ meet recently. There will be a lot of demand for automotive grade steel in India in the coming years. Presently, the country requires about 6-8 MTPA automotive steel and JSW Steel intends to produce a third of the requirement once we commission our new plant next year,” Vinod Nowal, Director and CEO, JSW Steel, told Business Standard.

The project includes a 1.9 MTPA cold-rolled annealed and skin passed coils plant and a 400,000 tonnes per annum hot dip galvanised coils plant. The major features of the CRM complex are: pickling-cum-coupled tandem cold rolling mill, continuous annealing line, galvanising-cum-galvannealing line, Auto packaging line and Coil Tracking and Transport System and Yard Management systems.

JSW Steel, presently, operates a 10-mtpa steel plant at Vijayanagar in Bellary district. In 2010, it entered into an agreement with Japan’s JFE Steel Corp to collaborate in automotive steel manufacturing.

“Companies like Tata Steel, SAIL and Essar Steel are in the process of setting up facilities to produce automotive grade steel. Tata Steel is the first mover in this field, which is likely to commission its facility next year ahead of JSW Steel. These companies would produce about 5-6 MTPA of automotive steel in the next two years,” Ritesh Shah, senior analyst, Espirito Santo Securities, said.

BS (http://www.business-standard.com/india/news/jsw-to-raise-rs-3000-cr-debt-for-auto-steel-plant/480499/)

JSW to raise Rs 3,000 cr debt for auto steel plant

BS (http://www.business-standard.com/india/news/jsw-to-raise-rs-3000-cr-debt-for-auto-steel-plant/480499/)

:banana:

TE Narasimhan & Gireesh Babu / Chennai Jul 13, 2012, 00:28 IST

BSE-listed Surana Industries Limited (SIL) is planning to invest over Rs 4,500 crore in expanding its steel manufacturing capacity and in power projects. To support the investment, the company is planning to raise around $120 million from private equity (PE) companies, including Sycamore Ventures LLC (Sycamore), New York.

Mauritius-based investor IndiaStar (Mauritius) Limited, a PE fund managed by Sycamore Ventures, currently holds around 24 per cent of the capital of SIL, post the conversion of the foreign currency convertible bonds (FCCBs) worth $25 million issued to it in 2007.

“The company has, among others, engaged Sycamore to tie-up the funding of $60 million for the steel expansion project,” said a source.

SIL has embarked on an expansion programme for addition of 1.4 million tonne of steel production a year at its existing facilities at Raichur in Karnataka and Gummindpondi in Tamil Nadu. The present aggregate steel manufacturing capacity of the company is 0.4 million tonne a year in these facilities.

The company has already been allocated 99.4 acre at Raichur for the proposed expansion and the total production at the project site is expected to go on stream by March 2014.

Of the total Rs 1,253-crore investment, the promoters and private equity investors would infuse Rs 401 crore, while the company will pump in Rs 100 crore from internal accruals and Rs 752 crore by way of debt, according to a senior official of the company.

The company’s subsidiary Surana Power Limited (SPL) is also planning to raise $60 million through the private equity route to support its Rs 2,400-crore, 2x210-Mw thermal power plant at Raichur. SIL has already infused a capital contribution of Rs 375 crore and the foreign PE investors and their associates and others are expected to bring in their share of Rs 300 crore in due course, the company official said.

The company has achieved financial closure, and as on March 31, 2012, it has spent around Rs 1,030 crore in the project. This has been met out of the equity contribution of Rs 300 crore and a term loan of Rs 770.84 crore. The project implementation is on schedule and is expected to go on stream by April 2013.

SIL’s step down subsidiary, PT Borneo Mines and Minerals, has acquired mining rights in the Sassanga coal mines in Indonesia. This will ensure regular supply of coal to both SPL as well as SIL. The price of coal will be very competitive and this will ensure greater viability for the company.

Surana Green Power, the renewable energy company of SIL, is planning to set up wind mills, which can generate 101 Mw of power. Meanwhile, the company has ruled out any possibility of entering the solar energy space.

The company has clocked revenues of Rs 1,351.42 crore during the year ended March 31, 2012, as compared to Rs 1,223.02 core a year ago. Its net profit stood at Rs 32.76 crore, as against Rs 56.55 crore.

BS (http://www.business-standard.com/india/news/surana-ind-to-invest-rs-4500-cr/480241/)

Ronald Anil Fernandes, Kudremukh, (Chikmagalur dist), Jul 26, 2012, DHNS :

Nearly seven years after the Kudremukh Iron Ore Company Limited (KIOCL) plant in Kudremukh was closed following a Supreme Court order, the giant machinery at the plant stand mute witness to the glorious past when the mini-ratna ruled the roost.

http://www.deccanherald.com/page_images/thumb/2012/07/27/267286_thump.jpg

Not one or two, but hundreds of huge machines, mostly imported from Canada in 1976, are gathering dust.

In fact, the machines waiting for a potential buyer.

They include eight massive shovels (each can take out 32 tonnes of ore in a single scoop) costing more than Rs 25 crore (at present market value) each, 32 dumpers (trucks) each with a whopping 120-tonne capacity, five drills (with 58 feet depth and 12.25 dia), six track dozers (the tyre diameter is nine feet), five rubber tyre dozers, five front end loaders, four motor graders and seven huge water sprinklers (dumpers), to mention a few.

Though a global tender was invited four years ago, it did not yield any result as the mining giant wanted to sell the entire equipment to one firm and not in pieces. Sources said that the equipment was estimated to be worth around Rs 2,000 crore, a few years ago.

Speaking to Deccan Herald, KIOCL Chairman and Managing Director Malay Chatterjee (who assumed charge on July 1, 2012) said that if the global tender failed to yield positive results this time, the entire machinery might be auctioned to scrap in a year.

Noting that he held a discussions with Chief Minister Jagadish Shettar, he said that the chief minister had promised to look into the issue after the Assembly session.

He said the entire plant may be relocated. However, he did not elaborate on the same.

Stating that the firm requires a minimum of Rs 30 crore a year to maintain the equipment (that includes salaries of CISF and other staff at the plant), Chatterjee termed it as a sheer waste of national resources.

It was Rs 48 crore two years ago and much more in earlier years. The government for the past seven years has spent over Rs 250 crore just to maintain the equipment.

To a query, he said that the present number of employees in Kudremukh plant was less than 240 (it was 1,260 when the plant was in operation). It is also interesting to note that almost every day, the employees start the machines so that they are kept in good condition, he added.

DHNS (http://www.deccanherald.com/content/267286/machinery-worth-crores-rust-kiocl.html)

When will Karnataka government give KIOCL alternative mines? Handover non-controversial ones where mining could be started immediately.

PTI Aug 6, 2012, 09.50PM IST

Bangalore: BMM Ispat Ltd today announced it will complete the setting up of a two MTPA fully integrated steel plant within next three-four years.

The project is being financed by a consortium of 16 banks led by SBI and includes PNB and Exim bank, the company said in a statement.

"The total investment will be around Rs 6,700 crore for this project. In addition, we are progressing on the three MTPA, gas based ISP which will be set up at a cost of Rs 16,300 crore," BMM Ispat Managing Director and CEO Dinesh Singhi said.

The company has signed an MoU with the state government at GIM 2012, he said, adding that once the expansion is completed, the plant will produce five MTPA of steel, which will cater to the south and western parts of the country.

"We will also be supplying low alloy steel for specialist sectors like automobiles in Chennai, Pune and other cities," Singhi said.

Commenting on the challenging times faced by the industry for the past two years, Singhi said the country will have to soon restart the ailing industry by providing the requisite impetus.

"The consumption is bound to increase and industry needs to gear up and look for opportunities that will give them an edge when impediments will be cleared," he said.

SBI's S B Nayar said the availability of captive mines is the strongest point of this unique venture which makes it a strong case for success.

"The importance of infrastructure growth for the economy is being felt all over the country and will surely reflect in easing of the policy hurdles currently plaguing this sector," he said.

BMM Ispat currently produces two million tonnes of steel per annum and is the second-largest steel maker in Karnataka, the company said.

ET (http://articles.economictimes.indiatimes.com/2012-08-06/news/33065705_1_steel-plant-bmm-ispat)

Mahesh Kulkarni / Chennai/ Bangalore Aug 06, 2012, 00:52 IST

The recent decision of the Supreme Court capping iron ore production at 30 million tonnes per annum in Karnataka has not deterred iron and steel companies from expanding their capacities. Both the existing and new steel companies have lined up expansion plans as well as set up greenfield steel plants in the ore-starved Karnataka state.

While, the new-comers like Arcelor Mittal and Posco are still awaiting allotment of captive mining leases before commencing work on their respective six million tonne per annum Greenfield steel plants in the state, existing manufacturers like JSW Steel Ltd, BMM Ispat Ltd and Kalyani Steel among others have planned expansion.

During the recent Global Investors’ Meet (GIM 2012) organised by state government as many as eight companies have signed memorandum of understanding to make a combined investment of Rs 91,782 crore in the iron and steel sector in Karnataka. These are NMDC, JSW Steel Ltd, JSW Projects Ltd, BMM Ispat Ltd, Mukand Ltd, Zeenath Transport Company, Tata Steel Ltd and Kalyani Steels Ltd. Among these companies, JSW Steel Ltd, BMM Ispat Ltd and NMDC are in various stages of implementing their projects. While, NMDC and BMM Ispat have their own captive mining assets, JSW Steel Ltd, which is the single largest investor in the private sector in Karnataka, does not have captive mines.
JSW Steel currently operates a 11 million tonne per annum steel plant at Toranagallu in Bellary district of Karnataka, BMM Ispat Ltd operates a 2.4 million tonne per annum steel plant at Hospet in Bellary district. BMM Ispat Ltd, the second largest steel producer in Karnataka, has proposed to set up a 3 million tonne per annum natural gas-based steel plant and a 440-Mw gas-based captive-cum-merchant power plant. It presently operates a 2.4 MTPA steel plant at Hospet. “We are presently setting up a 1.3 MTPA beneficiation plant along with blast furnace, coke oven and sinter plants with an output of 2 MTPA. We have tied up with a consortium of banks led by State Bank of India for a loan of Rs 4,200 crore for this project,” an official spokesperson of BMM Ispat said.

He said the company has already received an approval from the State High Level Clearance Committee for its project and would approach the ministry of environment and forests (MoEF) once the Supreme Court settles all mining issues. BMM requires about 4.8 million tonnes of iron ore to meet its expansion plans. It already procures about 4 million metric tonnes of iron ore per annum for its existing plants.

BS (http://www.business-standard.com/india/news/steel-firms-in-state-plan-tocapacity/482434/)

Iron ore crunch spreading in Karnataka (http://www.business-standard.com/india/news/iron-ore-crunch-spreading-in-karnataka/482181/)
Easing iron-ore supplies lift JSW Steel's prospects‎ (http://www.business-standard.com/india/news/easing-iron-ore-supplies-lift-jsw-steels-prospects/481951/)
Post-turnaround, JSW Ispat to be merged with JSW Steel (http://www.moneycontrol.com/news/business/post-turnaround-jsw-ispat-to-be-mergedjsw-steel_735380.html)
NMDC Joint Venture Steel Plant with Russian Company (http://pib.nic.in/newsite/erelease.aspx?relid=85917)

BMM Ispat to set up steel plant in 3-4 years

ET (http://articles.economictimes.indiatimes.com/2012-08-06/news/33065705_1_steel-plant-bmm-ispat)
:banana:

K'taka begins process to allot mining lease to Arcelor Mittal

Mahesh Kulkarni / Chennai/ Bangalore Aug 18, 2012, 00:14 IST

Even as decks are being cleared for recommencement of iron ore mining in Karnataka, following the clearance from a Supreme Court panel, the Karnataka government has initiated the process of allotting fresh mining lease to Arcelor Mittal India.

Arcelor Mittal has proposed to set up a six million tonne per annum steel plant and a 750-Mw captive power plant at an investment of Rs 30,000 crore in Bellary district. It signed a memorandum of understanding with the state government during the Global Investors’ Meet in June 2010.


“We have once again started the process of identifying a suitable mining lease for Arcelor Mittal after they withdrew their earlier application for captive iron ore mining lease citing poor quality of ore. We would be conducting the hearing once again with the company before sending our recommendation to the Centre for approval,” MN Vidyashankar, principal secretary, department of commerce and industries, told Business Standard.
He said the government would conduct a fresh survey of mining belt in Bellary before finalising the new mining lease to the company.

Earlier, the Karnataka government had earmarked an area in the Donimalai region of Bellary district for allocating to Arcelor Mittal and had also sent a recommendation to the government of India for approval in mid-2010. However, the company surrendered the proposed area stating its exploration in the deposits found very low-grade iron ore (below 35 per cent Fe grade) and was not suitable to make steel.

In an official communication to the state government last year, Arcelor said it found poor quality of iron ore in the area with Fe (iron) content ranging between 30 per cent and 38 per cent, which was unfit to make steel.

“We have carried out substantial exploratory programme in the area and the studies have revealed that the Fe content (iron) in the ore is between 32 per cent and 38 per cent. The ore found here is mainly haematitie quartzite. It is not feasible for us to use such low-grade ore to produce steel and we have requested the state government to allot captive mines in some other location where the iron content is higher,” Arcelor Mittal India spokesperson said.

Meanwhile, the state government has acquired and transferred around 1,828 acres to Arcelor Mittal India at Kuditini village in Bellary district to set up its steel plant. The company requires about 4,000 acres land to set up its plant and it has deposited Rs 260 crore with the Karnataka Industrial Areas Development Board (KIADB) for land acquisition. Of this, 2,786 acres is enough to build the steel plant, while the remaining land would be used for the power plant and township, the company had said.

There are 166 mining leases operational in Karnataka. The Supreme Court, in a recent judgement, ordered for cancellation of 49 leases after it found rampant illegal mining by them. The court has also cleared 16 mining leases to restart mining and fixed a combined capacity of 8.24 million metric tonnes per annum.

Last year, the state government also recommended to the Centre for allotting captive mining leases to JSW Steel, Posco, KIOCL and Bhushan Steel among others. All these companies have plans to set up mega steel plants in Karnataka.

http://www.business-standard.com/india/news/ktaka-begins-process-to-allot-mining-lease-to-arcelor-mittal/483556/

The Supreme Court on Friday took a tough stand over the resumption of mining in Karnataka and asserted that unless it was sure that the reclamation and rehabilitation (R & R) steps are “hundred per cent” complied with, operations cannot be allowed.

“There is an assumption that operations can start and R& R will follow,” the Bench headed by Justice Aftab Alam observed. But it is a wrong assumption, the three-judge Bench clarified.

Various associations of miners and manufacturers tried to persuade the court to permit them to resume mining at least in the A category mines. This category of 16 mining companies, considered to be the lest environmentally predatory, were hoping for a long time that they will be allowed to resume excavations. But their hopes were dashed by on Friday’s hearing.

In fact, the public interest petitioner’s counsel, Prashant Bhushan, told the judges that even A category mines were operating in forest areas, destroying the ecology and reducing agricultural cultivation by 25 per cent. There are allegations of criminal activities and smuggling as well. The judges asked the petitioner, Samaj Parivartana Samudaya, to file a detailed affidavit on this aspect by Monday.

The judges further asked the centrally-empowered committee (CEC) to state what are the permissions required to operate the mines, what are the statutory clearances and how R& R should be implemented at least in the A category mines. The court wanted a “comprehensive report” on these aspects at the next hearing. There was no question of taking up the issue of B and C category mines now, the judges said.

Amicus curiae (“friend of the court”) Shyam Divan, appointed by the court, submitted that the Indian Bureau of Mines should examine the mines before giving approval for starting operations for five years. Moreover, permissions under the water and air pollution laws are also mandatory for mining operations. Whether the mines have fulfilled these conditions should be examined, he said.

C S Vaidyanathan, representing the manufacturers, told the court that some of the metal industries will have to shut soon if ore is not available. There is hardly two million tonnes stock now and it is not sufficient to run the industry. The workers also will have to be paid.

Arvind Datar, counsel for National Mineral Development Corporation (NMDC), said that it can provide 7.5 million tonnes per month. But the corporation’s problem was that there were not enough rakes to clear the stock.

The court accepted the recommendations in the latest report of its CEC. According to it, the meeting held by NMDC with interested parties on August 13 has yielded positive results and the Karnataka government has also approved the recommendations.

The court will hear next Thursday and Friday arguments pursuant to the CEC report of April 27 recommending CBI investigation into theft of iron ore from Belekere port in Karnataka in which the Adanis are involved. Lokayukta of Karnataka had also found massive theft and bribery at Belekere port and had indicted the Adani group of companies.

BS (http://www.business-standard.com/india/news/full-compliance-needed-to-resume-mining-says-sc/483586/)

JFE to share tech with JSW for auto steel

MUMBAI, AUG. 20:
JFE Steel Corporation said it has signed an agreement with its strategic partner JSW Steel to provide technology for the production of automotive steel in India.

JSW Steel is setting up a 2.3-million-tonne a yera cold rolling mill complex to manufacture high-grade automotive steel at its Vijayanagar plant in Bellary.

The project, which is estimated to cost Rs 4,500 crore, is expected to go on stream by March.

JSW Steel operates a 10-mt a year steel plant in Bellary. JFE Steel holds 15 per cent stake in JSW.

The automotive steel is used to make the body parts of passenger cars.

The auto grade steel is largely imported. India requires about 6-8 mt a year of automotive steel.

PROVIDE ASSISTANCE

On Monday, JFE said in a press release that it would provide assistance to develop various grades of steel, including steel for external panels for automobiles in high strength viz JFE-Hiten, Jaz, zinc-coated steel sheets with lubrication and so on, to meet demands from automakers with production bases in India.

Besides providing technical assistance for 2.3 mt a year cold rolling mill, JFE will also assist in 1.9 mt a year continuous annealing lines and 400,000 tonnes a year continuous galvanizing line.

JFE is one of the large suppliers of steel to Japanese automobile companies such as Toyota Motor Corporation and Nissan Motor Company.

JSW Steel need not go through the entire process of qualifying to supply steel to these companies in India since it will be using JFE’s technology, said an analyst.

JFE Steel would also strive to leverage its strategic collaboration with JSW Steel in providing steel products and pursue its growth strategy in the Indian automotive steel sheet market, JFE said in the press release.

http://www.thehindubusinessline.com/companies/article3799852.ece

Good old days are back in bellary. :cheers:

http://www.deccanheraldepaper.com/pdf/2012/08/22/20120822a_003103001.jpg

:banana:

New Delhi, Aug 23, 2012 (PTI)

Expressing shock at the magnitude of the alleged illegal export of 35 lakh metric tons (MTs) of iron ore by private firms in Karnataka, the Supreme Court today said it wants to explore the possibility if the guilty could be punished within six months.

A three-judge forest bench headed by Justice Aftab Alam asked the Central Empowered Committee(CEC) to suggest viable alternatives to ensure that those involved in illegal mining are convicted within six months and posted the matter for further hearing on September 7.

"Assuming there is a CBI probe, it will take months or years to complete the probe. They will be examining hundreds of witnesses and placing tons of material. But we want the investigation to be completed within six months.

"Let us have some results. See if these cases can be segregated. So far the charge sheet filed in some cases are under Section 379 (punishment for theft) and 406 (criminal breach of trust) of the IPC. The whole thing seems to be an eye-wash," said the bench, also comprising K S Radhakrishnan and Swatanter Kumar.

The apex court turned furious after senior counsel and amicus curiae Shyam Divan informed it that eight lakh out of the 35 lakh MTs of iron ore were actually seized by the authorities and kept in custody as per the orders of a judicial magistrate, yet the seized consignments were exported out of the country.

Citing the CEC report, Divan termed the loss to the exchequer as "huge and enormous" and the illegal export of the huge consignment as "the rarest of rare" in the annals of the country.

"If the state machinery were working properly without turning a blind eye, all this would not have happened. See the magnitude," the apex court remarked while dealing with NGO Samaj Parivartana Samudaya's PIL on illegal mining and encroachment in the forest areas of the state.

The CEC report of April 27 had recommended CBI probe into the illegal export of the iron ore from the state's Belekere port with the alleged involvement of various business houses.

As the irregularities were huge, the apex court today said to senior counsel Shyam Divan, "As an amicus, we want you to tell us how to speed up the probe. Show us the way." The bench then posted the matter for September 7.

At the last hearing, the apex court had said it would not allow resumption of mining activities of iron ore in Karnataka unless there is a statutory compliance and full implementation of reclamation and rehabilitation measures.

The bench had also asked the CEC to file a comprehensive report detailing the steps taken for the statutory compliance and implementation of R&R measures and the permission needed for the resumption of mining.

The Supreme Court on April 13 had accepted the CEC's recommendations, which had suggested that no new mining leases should be granted in Bellary, Tumkur and Chitradurga districts of Karnataka unless rehabilitation plans for the existing leases were executed.

The bench had also asked the CEC to examine if the works in the category 'A' mines, with the least irregularities in them, could be commenced.

In its earlier report, the CEC had distinguished the mines in the area in three categories as A, B and C.

The mines in which there was least or no irregularities were categorised as 'A' and those with maximum illegalities were put in 'C' category.

Karnataka Iron and Steel Manufacturing Association had also sought immediate steps for opening of 16 iron and ore mines in which the apex court appointed expert panel, central empowered committee (CEC), had found minimum irregularities.

DHNS (http://www.deccanherald.com/content/273725/sc-shocked-over-magnitude-karnatakas.html)

Initiates steps to resolve teething problems and procedural delays
Mahesh Kulkarni / Bangalore Aug 22, 2012, 00:29 IST

The Karnataka government has initiated steps to resolve some of the teething problems and procedural delays coming in the way of smooth transportation of iron ore sold through e-auction by the monitoring committee.

It has decided to issue round-the-clock transit permits to NMDC’s mines in Bellary district’s Donimalai. Besides, the government will continue to issue transit permits between 6 am and 10 pm for NMDC’s Kumaraswami mining lease in Bellary district.

To ensure the availability of iron ore for the steel and allied industries, the Supreme Court had, in its order dated August 5 last year, permitted NMDC to produce one million tonnes per month in Donimalai and Kumaraswami mining leases and sell it through the e-auction route. The state’s forest department has said a system has been put in place to streamline the process. It has also decided to deploy additional foresters for this purpose. The principal chief conservator of forests is regularly reviewing this matter and additional manpower would be deployed, wherever required.

In its latest report submitted to the apex court on August 16 this year, the Central Empowered Committee (CEC) said: “It is expected the production, sale and dispatch of iron ore from the two mining leases of NMDC will take place smoothly, following certain steps taken by the Karnataka government.”

At a meeting convened by CEC on August 13, the Karnataka government clarified it had taken a slew of measures to streamline the issue of transit permits by the forest department (Form 27 and 29) for the iron ore sold through e-auction from the mining leases of NMDC and other lessees, and to expedite the preparation of reclamation and rehabilitation (R&R) plans.

The deputy conservator of forests (DCF), Bellary, on the basis of the bulk permits issued by the mines department, would authorise the issue of Form 27 and 29, without insisting on applications by the buyers concerned. The foresters would issue forest permits on the basis of authorisations from the DCFs. The system of endorsement of these by the range forest officers had been dispensed with, the forest officials told CEC.

In the absence of the DCFs, the assistant conservators of forests concerned would authorise the issue of forest permits. The forest permit fee for the mineral sold through e-auction would be accepted from the monitoring committee (out of the contingency funds recovered from buyers), and not from individual buyers.

As regards the implementation of R&R plans, the government said the principal secretary for forests and the principal chief conservator of forests had taken steps to ensure no further problems were faced in the transportation of iron ore sold through e-auctions.

The officers concerned have been asked to ensure the R&R plans approved by the lessees are implemented immediately. CEC has also clarified that the respective lessees are responsible for the implementation of the approved R&R plans, even if the lease period has expired.

CEC also impressed upon the Karnataka government to speed up the process of the preparation of R&R plans, as the current pace of progress was disappointing. “The Karnataka state has agreed to take urgent remedial measures in this regard, including, if found necessary, identification of an alternative agency,” it said.

It has decided that the system of advance or long-term e-auction will be made operational without delay.

BS (http://www.business-standard.com/india/news/karnataka-weeds-out-transport-hurdles/483937/)

Baldota group set to start gold mining in Karnataka next year

Will become the first private company to mine the yellow metal in the country
Mahesh Kulkarni / Bangalore Aug 31, 2012, 00:07 IST

Hospet-based Ramgad Minerals and Mining Ltd (RMML), a Baldota Group company, is in advanced stages of beginning gold mining operations in the Gadag district of Karnataka. The company is awaiting forest permits from the state government to execute its lease for one of the eight gold mining blocks explored in the district, a top company official said.

“We have secured approvals from the state government for setting up a 1,000 tonnes per day (TPD) gold ore processing plant in Gadag district. The plant is being set up in technical collaboration with a South African gold mining company, Turnberry. It will come up at Attikatti village in Gadag district at an initial investment of Rs 300 crore. We are planning to start operations at Sangli village by July 2013,” B L Jain, vice-president, told Business Standard.

The company has been granted mining rights in an open cast mine at Sangli village, about 32 km from Gadag. The mine is spread over 98 hectares.
As operations begin next year, RMML would become the first private sector gold mining company in India. Presently, only one public sector company, Karnataka government-owned Hutti Gold Mines Company Ltd, is operating a gold mine in the Raichur district of Karnataka. The other gold mining company, Bharat Gold Mines Ltd (BGML) has wound up operations at Kolar Gold Fields near Bangalore.

Jain said the exploration carried out by the company in eight villages of Gadag have shown that 2.8 grams of gold could be extracted from every tonne of ore. “We will be operating one of the low-grade gold mines in the country. Due to very high prices of gold in the market, it makes sense for us to extract gold at these deposits,” he said. Hutti Gold Mines extracts about five grams of gold per tonne of ore.

Established in 1961, the Baldota Group has been in the business of exploration, mining and marketing of minerals. It operates a 1.2 million tonnes per annum pellet plant in Koppal district and is also in the process of setting up a 1.2 MTPA integrated steel plant.

The company has been exploring in the Gadag district for the last six years and has been allotted eight villages to explore. It is now in the final stages of securing mining lease for one of these. Other gold mining blocks in the region are Kabuliyatkatti south and main blocks, Mysore mines, block 23, Nabhapur south, central and north blocks.

“The Sangli mine is estimated to contain 2.4 million tonnes of gold ore and each tonne is expected to yield 2.8 grams of gold. At this rate, we will produce 8,000 kg of gold from this mine alone,” Anirban Sen, deputy general manager, MSPL Ltd, another Baldota group company said. MSPL extracts and exports iron ore.

http://business-standard.com/india/news/baldota-group-set-to-start-gold-mining-in-karnataka-next-year/484915/

NEW DELHI: The Supreme Court on Monday allowed 18 mines to resume mining in Karnataka, partially easing a 16-month old ban on iron ore mining due to environment concerns.

The move is expected to add five million tonnes of iron ore supply to steel companies, who have been starved of this crucial raw material for more than a year.

But the decision may not lift the industry out of its gloom as the so-called 18 'category A mines' in Karnataka's Chitradurga, Bellary and Tumkur districts can resume operations only after getting necessary government approvals, a process likely to take many months.

The SC banned mining in the state last year, acknowledging severe environmental damage due to large-scale illegal mining. During the course of the case, its panel on forest matters had divided the leases as per their involvement in illegality; Category A mines is those that have a clean chit.

The court's decision may, however, not pave way for iron ore exports immediately. Miners, equipped with far more stringent R&R (relief and rehabilitation) guidelines will also have to get all their regular clearances from the ministry of environment and forests, the Indian Bureau of Mines and the local pollution control board.

http://www.economictimes.indiatimes.com/photo/16242565.cms

Mining in India has become controversial due to the operation of many illegal mines and the unhealthy manner of their operations. The Reddy brothers of Karnataka, who operated many mines in the state by remote control, were alleged by various investigative bodies to have flouted environmental and mining laws. Their name has become synonymous with corruption in the mining industry leading to the humiliating resignation of their patron and then Karnataka chief minister, BS Yeddyurappa last year.

In Karnataka, the Central Empowered Committee or CEC has also recommended cancellation of licences of as many as 49 iron ore miners, falling into category C. it has further suggested that they then be auctioned off. But the court is yet to decide the fate of these mines. It is also yet to clear those miners, who the CEC had recommended be fined for operating mining pits and burden dumps outside sanctioned areas. JSW Steel, an important stakeholder having a significant exposure in Karnataka declined to comment. "Our legal team is studying the verdict," the spokesperson said.

In a report submitted to the Supreme Court, the forest panel reiterated the need for statutory clearances before mining can resume. The CEC, which assisted the court in forest matters, expects only 4.5 mt of annual capacity to be cleared. A mining lease requires environment and forest clearance, the approval of mining plan by the Indian Bureau of Mines, and clearances from local pollution control boards amongst others.

Karnataka once contributed about 40-45 million tonne iron ore to the country's total production of 200 mt. The ban on iron ore, a key steel input, resulted in several Karnataka steelmakers including JSW Steel curtailing production as it was starved of the crucial input. The apex court later facilitated a small supply of raw material to the state's steelmakers by allowing auction from existing reserves of mined ore which have now been exhausted. And NMDC, the largest Indian producer of iron ore was asked to produce 12 mt, but has managed only about 7 mt.

Welcoming the order, Basant Poddar, owner of Mineral Enterprises said: "As the court pointed out, the state was on the brink of moving into stone age. These current limits will be revised upwards as and when miner revises the estimate of the mineral reserves. My belief is that even the state limit of 30 mt could be revised upwards to 50 mtin a year and half." The Chitradurga lease has been allowed to produce 0.38 MT a year, but Poddar's hoping to spend 10 crore to get reserves at his three leases re-estimated and be allowed to mine more in the future.

ET (http://articles.economictimes.indiatimes.com/2012-09-04/news/33582329_1_ore-miners-illegal-mines-iron-ore)

Supreme Court order will revive steel industry: Karnataka industries (http://ibnlive.in.com/news/sc-order-will-revive-steel-industry-ktaka-industries/288489-62-129.html)
SC's Karnataka mining order: No immediate relief for steel firms (http://www.business-standard.com/india/news/scs-karnataka-mining-order-no-immediate-relief-for-steel-firms/485349/)
Karnataka miners welcome apex court order (http://www.thehindubusinessline.com/industry-and-economy/article3854058.ece)
News of mining ban reversal in Karnataka fails to lift JSW Steel shares (http://articles.economictimes.indiatimes.com/2012-09-03/news/33563190_1_category-a-mines-jsw-ispat-jsw-steel)
SC ruling on Karnataka mines positive for JSW Steel: JP Morgan (http://articles.economictimes.indiatimes.com/2012-09-03/news/33563461_1_category-a-mines-iron-ore-nmdc)
Kalyani Steel, Sesa Goa gain post SC ruling on Karnataka mines (http://articles.economictimes.indiatimes.com/2012-09-03/news/33563340_1_category-a-mines-iron-ore-kalyani-steel)

Supreme Court order will revive steel industry: Karnataka industries

BANGALORE: The Supreme Court order lifting ban partially on mining operations in Karnataka would revive the iron ore production and provide relief toover 10,000 workers who wererendered jobless due to the restrictions, industry has said.
The move may not pave the wayfor iron ore exports immediately, it will provide a relief for over 10,000 mining employees and thousands of transporters, who were rendered jobless due to the ban, and also revive the sponge iron units in and around Bellary,it said.
"The lift would not only increaseproduction of iron and steel and generate employment opportunities but also help in realisation of the investment proposals signed during GIM (global investors' meet) 2010 and GIM 2012 in this sector", President of Federation of Karnataka Chambers of Commerce and Industry (FKCCI) K Shiva Shanmugam said.
"It will also help growth of Bellary and Chitradurga districts and contribute to the exchequer of the state", he added.
Shanmugam thanked CEC and the efforts of the state Government for their report which recommended resumption of operation in these 18 mines.
Partially lifting its ban on miningoperations in Karnataka ordered more than a year back, the Supreme Court on Monday gave its green signal for extraction of iron ores on 18 leases subject to certain conditions being fulfilled.
A three-judge forest bench headed by Justice Aftab Alam accepted the report of the apex court-appointed Central Empowered Committee (CEC) which had said 18 leases be allowed to carry on their business in the districts of Bellary, Tumkur and Chitradurgaas they have not violated any rules.

Source: http://ibnlive.com/news/sc-order-will-revive-steel-industry-ktaka-industries/288489-62-129.html

M. Ahiraj

Need to speed up R&R implementation, statutory clearances

The Supreme Court’s nod for the resumption of mining in 18 A category mines has come as a great relief to all those depending on it directly and indirectly for their livelihood. But it is likely to take some time for the benefits to filter through as mining operations cannot resume immediately.

Of the 18 companies permitted to resume mining, the Reclamation and Rehabilitation (R&R) plan of 16 — 13 in Bellary and three in Chitradurga districts — were prepared and approved by the Central Empowered Committee.

The Supreme Court had directed that these companies could start mining operations only after implementing the R&R plan and also after obtaining all the statutory clearances, including approval of the mining plan by the Indian Bureau of Mines (IBM), clearances from various departments, including Forest, Mines and Geology, Environment, pollution control board, among others.

Official sources in the Forest Department told The Hindu that the implementation of R&R plans had begun in 10 of the 12 mines having leases in forest lands and the progress was in various stages. As per the R&R plan, the works of erecting boundary pillars, dump stabilisation, terrace work around the dump, retaining wall around the dump, geo-textile implementation at slope of dump to develop green belt, plantation along the lease boundary, construction of settling tank, check dams and gully checks, garland drainage around the dump, among other things were in progress.

Mysore Minerals Ltd. (Thimmapanagudi), Nadeem Minerals, Mysore Minerals Ltd. (Subbrayanahalli), B. Kumaragouda, Vesco Mines, S.K.M.E. Mines, Zeenath Transport Co., Shantipriya Mines and Kariganur Minerals and Mining Industries Hospet, were among the nine companies in Bellary district having mining leases on forest land.

R. Praveen Chandra, Sesa Goa Ltd., Mineral Enterprises having leases in forest lands of Chitradurga district had started the implementation of R&R plans. Recently, a team of senior officials of the monitoring committee, including U.V. Singh, Chief Conservator of Forests and Deepak Sarmah, Additional Principal Conservator of Forests, inspected the mining leases to oversee the progress of the implementation of R&R.

Four mines — two leases of RBSSN, Allum Prashant and Tiffin Barryates — falling under A category have mining leases in revenue land of Bellary district.

Mr. Uday Shankar, Deputy Director of Mines and Geology, when contacted, said that there were 35 mining leases in Bellary district falling under A category, and they had been asked to implement R&R plans at the earliest. He reiterated that speedy implementation of the plan and getting statutory clearances would enable them to get early permission to resume mining operations.

Economy down

The economy of the district has taken a severe beating ever since the Supreme Court imposed a total ban on mining activities. People directly or indirectly dependant on mining, including those in the service sector (transport, earthmovers, financial institutions, mechanics and welders) were severely affected. The steel industries were also hard hit due to non-availability of iron ore, the basic raw material. All those dependant on mining activities are eagerly waiting for the mine owners to comply with the statutory formalities so that the extraction of iron ore resumes at the earliest.

* All those relying on mining activities are eagerly waiting for the final ‘go’
* Ban lifted on 18 A category mines

TH (http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/article3868593.ece)

I am for all nationalization of mining activites of iron, coal, etc.

Posco, Severstal cannot have majority stake in proposed JVs with SAIL, NMDC: Steel Ministry (http://articles.economictimes.indiatimes.com/2012-09-25/news/34082444_1_joint-ventures-south-korea-s-posco-steel-ministry)

PTI Sep 25, 2012, 05.30PM IST

NEW DELHI: The Steel Ministry today said Posco and Severstal cannot have majority stakes in their proposed joint ventures with state-run SAIL and NMDC respectively, envisaging a total ivestment of Rs 36,000 crore.

"Talks are going on. There are problems in regards to the shareholding. But, we can't give them land, we can't give them all facilities, and still have the minority shareholdings in the ventures," Steel Minister Beni Prasad Verma told PTI.

He declined to give a time-line as to when the deals are likely to be sealed.

"These can be finalised only when Posco and Severstal agree to give our companies 51 per cent stakes in both the joint ventures," he said.

SAIL had signed a memorandum of understanding (MoU) with South Korea's Posco to form a joint venture company at Bokaro in Jharkhand for setting up a three-million tonne per annum steel-making unit last year with a Rs 16,000 crore investment.

NMDC had inked a MoU with Russia's second largest steel maker Severstal in late 2010 for a three mtpa plant initially in Karnataka involving around Rs 20,000 crore investment.

Differences on shareholding issue continue to come in the way of formation of the two steel-making ventures, as both the foreign firms are insisting on owning majority stakes in them.

While in the case of SAIL-Posco venture, Posco will bring in iron-making technology that is not in use anywhere other than in its own domestic plant, Severstal would only supply coal, the raw material for steel-making, for the plant, if the deals with NMDC come through.

When asked whether the proposed joint ventures to see the light of the day, Verma said, "It is their decision, you have to ask them. Talks are going on. If tomorrow they say, "yes", to our demand, we will go ahead".

Verma said talks can progress further when there is equal eagerness, even if the MoUs expire.

"MoUs can be extended even if the matter is not finalised within the stipulated tenure of the MoU, if both parties find there is a possibility," he added.

Deccan Gold Obtains Prospecting Licence For Mangalagatti Gold Project

Deccan Gold Mines Ltd. said its wholly-owned subsidiary Deccan Exploration Services Pvt. Ltd. had granted a Prospecting Licence for gold over an area of 4 sq. kms. in the Mangalagatti Block located in the Dharwar District of Karnataka.

The Prospecting Licence will be executed with the Karnataka State Government after the completion of the procedural formalities, it said.

The Mangalagatti PL Block forms pat of Dharwar-Shimoga Basin of Archaean Western Dharwar Craton in the State of Karnataka. The Block is located 12 kms north of Dharwar city and is part of the 'Dharwar Cluster' of gold bearing sulphidic chert bands discovered by DESPL.

TH PL Block comprises of Mangalagatti SE, Mangalagatti Main and East Prospects. All these are considered as highly potential like the Ganajur-Karajgi cluster near Haveri.

Initial exploration during the RP tenure in the Mangalagatti SE prospect by RC drilling and channel sampling had revealed significant gold mineralization. An inferred resource of 1.5 million tonnes at 1.63 g/t Au was estimated based upon results of shallow RC drilling programme.

At the BSE, Deccan Gold Mines closed Friday's trading at Rs.22.05, up 5.00 percent from the previous close.

Source (http://www.rttnews.com/1982219/deccan-gold-obtains-prospecting-licence-for-mangalagatti-gold-project.aspx?type=bn&utm_source=google&utm_campaign=sitemap)

Severstal and NMDC officials meet to discuss proposed steel venture partnership in Karnataka

NEW DELHI: Russian steelmaker Severstal, says it is still optimistic of its joint venture with state miner NMDC.

Addressing the first briefing of the World Steel Association's annual conference in Delhi, Severstal CEO Alexey Mordashov said the two companies would meet again later in the day. "For a successful strategy in India it was important to have a good local partner, especially given the complications (legislation and land acquisition)." Mordashov, who owns 83% of Severstal, Russia's second largest steel maker and one of Russia's richest men, didn't commit to whether Severstal would agree to a less than majority stake.

The Russian steel maker and NMDC have been in talks for a 20,000 crore, 3mta flat steel project in Karnataka since late 2010. NMDC which now has two leases in the southern state, would bring iron ore to the JV and Severstal would contribute coking coal to the JV. The talks are stuck over differences over shareholding, with both keen to hold a majority stake in the JV.

On the sidelines of the conference, Mordashov said he was keen to overcome the logjam on issues relating to ownership structure and wasn't ready to walk away yet. NMDC with its abundant raw material (iron ore) resources was a great partner for its India plans according to Severstal.

Mordashov who takes on, as the new chairman of the steel industries most influential body, said his company was bullish about India in the long term. Given the large population and abundant resource, India as an investment destination was obvious. But Mordashov warned that "given the lack of perspective (for growth of the steel sector) and the complicated legislation, the industry participants would require "close attention, careful preparation and perseverance."

ET (http://articles.economictimes.indiatimes.com/2012-10-10/news/34363362_1_nmdc-officials-iron-ore-steel-maker)

Tata Steel awaiting ore mine allocation to start work

NEW DELHI, OCT 14:
Tata Steel has said it will start work on the proposed plant in Karnataka only after getting the allocation of an iron ore mine that has at least 300 million tonnes of reserves.

“We have identified the land, something like 2,400 acres, in Karnataka. People have agreed to give us the land. We are waiting for the iron ore allocation to be done. Unless iron ore is available to us, we are not going to start work,” Tata Steel Managing Director H M Nerurkar told PTI.

In January, the company announced plan to set up a six million tonne per annum (mtpa) steel plant with Rs 30,000 crore investment in Haveri district of the Southern state. It proposed to build the facility in two equal phases.

Nerurkar said the state government was considering the proposal for an iron ore mine which has reserves of at least 300 million tonnes, sufficient to meet the raw material demand for at least 30 years of the plant life.

“The state government is considering our proposal. I think it should happen shortly, that is what our understanding is. Unless we have the surety of raw material supply, we are not going to go (start),” he said.

Tata Steel has 6.8 mtpa capacity at its Jamshedpur plant. It is increasing the capacity at the plant by three mtpa. In addition, three mtpa capacity through a new facility at Kalinganagar in Odisha is set to go on stream in 2014.

Nerurkar hinted that the company is unlikely to face any problem with regard to land acquisition for the plant

He said the people from the identified area of the proposed facility have already visited Tata Steel’s Jamshedpur plant and were satisfied with the way the company looks after the people in areas adjoining the mines and the plant.

“People are comfortable. They know how we will look after them,” Nerurkar said.

Asked what would be the product-mix in the new plant, he said, “We have not finalised that yet. Once we have the surety of iron ore and finalise the land acquisition, we will decide all these.”

The Hindu (http://www.thehindubusinessline.com/companies/tata-steel-awaiting-ore-mine-allocation-to-start-work/article3996700.ece)

Looks like it is coming up in Haveri,It would be a mega steel plant. :banana:

Vishwanath Kulkarni

New Delhi, Oct. 8:

Mega steel investments planned by foreign companies, such as Posco and ArcelorMittal, continue to be dogged by issues relating to land acquisition and resource allocation.

As a result, most of these big projects are in a limbo in States such as Orissa and Karnataka.

Posco project

South Korean steel major Posco, which is setting up an eight million tonne a year plant in Odisha, is still waiting for the State Government to hand over the land acquired for the purpose. The land acquisition efforts by the Industrial Development Corporation of Orissa Ltd (IDCOL) are mired in a controversy, as local people have been protesting the Government’s move to acquire their land.

“IDCOL is yet to hand over the land to us,” said a Posco official in New Delhi. Posco expects to decide on starting construction on the project only when the corporation hands over the land. “We are hoping that the land will be transferred soon,” the official said.

Posco has sought 2,700 acre for its Odisha project, now downsized to eight mt a year from the initial 12 mt a year. It had signed an agreement with the State Government for the proposed project in Jagatsinghpura in 2005. IDCOL has reportedly acquired 2,000 acre, largely forest land, for the project, and is expected to go for an additional 700 acre.

“We continue to protest the land acquisition,” said Prashant Paikary, spokesperson for Posco Pratishod Sangram Samiti, the agency spearheading the agitation against the Korean steel maker.

Posco’s move to set up a plant in Karnataka, too, has not made any progress. “We are waiting for the Karnataka Government to allocate land,” the Posco official said. Efforts to acquire land in Gadag district for a six-mt a year plant with an investment of Rs 30,000 crore also faced strong protests from the farmers, forcing the State Government to look for an alternative location.

Mittal plant

Arcelor Mittal, the other global giant, which has planned a six-mt a year plant at Bellary in Karnataka, has been handed over some 1,800 acre by the Karnataka Industrial Area Development Board. The company, which has sought another 697 acre for the second phase of the project, is waiting for the Government to allot a mineral concession for an assured raw material linkage before proceeding with the project, sources said.

Following the crackdown on illegal mining in Karnataka, there has been a ban on issue of new mining leases. As a result, new steel projects that were hopeful of securing raw material linkages through a mineral concession are in the doldrums.

Severstal-NMDC venture

Russian steelmaker Severstal’s joint venture with NMDC in Karnataka and the proposed joint venture between SAIL and Posco may also face a delay in take-off, with the Government insisting on a majority stake in these ventures. The Severstal-NMDC venture is setting up a three-mt a year project in Karnataka, while the SAIL-Posco JV proposes to set up a three-mt a year plant in Jharkhand.

The steel capacity in India is currently estimated at 90 mt a year and is projected to grow to 126 mt a year by 2014-15.

Vishwanath.kulkarni@thehindu.co.in

BL (http://www.thehindubusinessline.com/companies/article3978772.ece)

Karnataka hands over land to ArcelorMittal for steel plant

Operationally, ArcelorMittal is having a tough time with the world's largest steelmaker slipping into a net loss this third quarter. As per the company's earnings reported today. But there's at least some good news in India. The Karnataka government has finally handing over land to the steel major for setting up its first steel plant in India, reports Vineetha Arthrey of CNBC-TV18.


It is the best Diwali gift the world's largest steel maker ArcelorMittal could have asked for, while its Orissa project remains mired in controversy. It's at least made headway in its Karnataka. Two years after it signed an MoU to set up a 6 MTPA steel plant in Karnataka, the state government has completed the land acquisition process for the proposed Rs 30,000 crore investment and has handed over 2569 acres of land in Bellary to the company.

"We have made progress on land acquisition in Karnataka. The Karnataka Government has transferred the requested private land in the company's name and the process to transfer another 136 acres of government land is underway. The process of getting various clearances including crucial environment clearance is underway. We have also applied for mining leases which are critical for the project. We are focusing on getting all relevant clearances," says spokesperson of ArcelorMittal.

So, with the land possession certificate firmly in its kitty, and environmental clearances expected soon, ArcelorMittal has one thing less to worry about but it's still not all smooth sailing as the steel maker still has to focus on the other big hurdle, getting a captive mining lease following the crackdown on illegal mining in Karnataka, not only has the SC capped mining in the state at 30 million tonne annually but also new mining leases might take a long time to materialize as a result, new steel projects like ArcelorMittal's might not be able to secure adequate raw material linkages anytime soon.

Uncertainty hovers around the mining lease sources in the state mining dept say that while they have started internal discussions with legal experts on this, ultimately both the Center and the Supreme Court have to give their nod to new leases, a process that might not happen in a hurry.http://www.moneycontrol.com/news/cnbc-tv18-comments/karnataka-hands-over-land-to-arcelormittal-for-steel-plant_776013.html

ArcelorMittal gets land in K'taka, steel plant still a long way to go

The company has got the entire 2,700 acres of land near Bellary, Karnataka

Shubhashish / Mumbai Nov 01, 2012, 17:51 IST

ArcelorMittal has finally crossed the biggest hurdle in setting up any project in India -- land. The company has got 2,569 acres of land out of the total need of 2,705 acres near Bellary, Karnataka, required for its steel plant from the state government.

ArcelorMittal spokesperson said, “We have made progress on land acquisition in Karnataka. The Karnataka Government has transferred the 2,569 acres of private land in the company's name and the process to transfer another 136 acres of government land is underway. The process of getting various clearances including crucial environment clearance is underway. We have also applied for mining leases which are critical for the project. We are focusing on getting all relevant clearances.”

Bellary is the rich iron ore district of Karnataka where most of the steel plants, including the 10 million tonne plant of JSW Steel is located. The land has been acquired by the Karnataka government through Karnataka Industrial Area Development Board (KIADB) and the company had deposited Rs 260 crore with the government for the same.

However, construction of the plant is still nowhere near as the company is waiting for a clarity on the iron ore mines allocation policy. Sources said that the construction will not begin unless the company gets a definitive word on iron ore.

In 2010, during the global investors’ meet in Karnataka, ArcelorMittal and various other steelmakers like Tata Steel, NMDC-Severstal, JSW Steel, POSCO, Essar Steel, to name a few had signed the memorandums of understanding (MoUs) with the state government to set up steel plants in the state. However, the iron ore mining ban by the Supreme Court due to the ill-effect of illegal mining in the state slowed down the progress of the MoUs.

Even now, steelmakers, including ArcelorMittal, are yet to get the iron ore leases for their plants. The company has cleared that the steel plant construction will not begin unless the iron ore mine leases are in place. This could particularly continue to delay the Rs 30,000 crore 6 million tonne steel plant by ArcelorMittal and other companies in the state as the debate is currently raging in the country on the future of natural resource allocation.

The Supreme Court has currently put a cap of 30 million tonne of iron ore mining in Karnataka which is sufficient for the 16-19 million tonne steel capacity that is presently installed in the state. Any new capacity, like ArcelorMittal, will need the 30 million tonne cap to be relaxed or iron ore be brought from other states.

ArcelorMittal’s fate in states like Jharkhand and Odisha still hang in air as the company has failed to achieve any progress. It has plans to set up 12 million tonne each steel plants in the two states.

BS
- http://business-standard.com/india/news/arcelormittal-gets-land-in-ktaka-miles-to-go-for-steel-plant-/193928/on

Two Category A mines restart iron ore mining in K'taka

Third likely to restart production next week, bringing about 1.5 million tonne of iron ore to the auction platform
Mahesh Kulkarni / Bangalore Nov 02, 2012, 16:31 IST

Iron ore mining has restarted in Karnataka’s Bellary and Chitradurga districts, one year after it was suspended following the Supreme Court direction. Two mining leases in Category A, which have secured all statutory approvals, have started mining, giving hopes of regular supply of iron ore to the ore-starved steel industry.

According to Federation of Indian Mineral Industries (FIMI) officials, two mining leases – R Praveen Chandra in Chitradurga and B Kumar Gowda in Bellary districts have commenced mining. Nadeem Minerals, which has its mine in Bellary, is likely to restart mining next week. These mines together would bring about 1.5 million tonne of iron ore to the auction platform in about two weeks’ time.

In addition to these, another lease – VESCO - is likely to secure necessary approvals to commence mining in the next one week, FIMI officials said.
On September 3, 2012, the Apex Court cleared 18 Category A mines to restart mining.

Mineral Enterprises Ltd, which was the first mining company to secure all clearances, operated its mine in Chitradurga for one month and produced about 35,000 tonne before shutting down operations as its mining lease expired on October 6, 2012.

Mining had stopped in Karnataka in July 2011 after the Apex Court ordered for suspension after the investigation by the Central Empowered Committee (CEC) found rampant illegalities by several mining companies. However, the Court had allowed e-auction of about 25 million tonne of iron ore from the stockpile to help the steel industry tide over the crisis.

Based on the CEC report, the Supreme Court, in its order on September 2, 2011 permitted monthly auctions of 1.5 million tonne of iron ore from stockpiles in the state. It had allowed public sector mining giant NMDC Ltd to carry out mining at its mines in Bellary district and extract up to one million tonne per month.

Subsequently, the Supreme Court had ordered for setting up of a three member monitoring committee comprising Deepak Sharma, Additional principal chief conservator of forests, H R Srinivasa, director, department of mines and geology and U V Singh, chief conservator of forests to supervise the e-auctions.

The Court also appointed public sector MSTC to conduct the auction. Since the first auction held in September 2011, about 33 million tonne of ore has been auctioned and sold to steel companies in Karnataka that include JSW Steel, BMM Ispat, Kalyani Steels and Kirloskar Ferrous Industries among others. This includes ore from NMDC, which was allowed to conduct mining.

Around 14 million tonne of iron ore from Bellary, seven million tonne from Chitradurga and 4 million tonne from Tumkur districts were put on auction. The buyers of iron ore, however, were restricted from exporting the iron ore as directed by the Supreme Court.

http://business-standard.com/india/news/two-categorymines-restart-iron-ore-mining-in-ktaka/194177/on

Minera Group is coming up with India's first pellet plant for 0.6 MTPA with straight grate technology from VT CORP

Minera Steel and Power Pvt. Ltd., Bellary, Karnataka has placed the order on VT CORP PVT LTD for 0.6 MTPA Iron Ore Pellet Plant on Straight Grate Technology. VT CORP will supply this plant in collaboration with URALMASH, Russia. Technology and Indurating machine will be supplied by URALMASH. Engineering and Supply of other core equipment by VT CORP. The plant is scheduled to be commissioned in 16 month.

VT CORP is focusing on smaller to medium capacity pellet plant based on URALMASH technology. VT CORP offers pellet plant from 0.3, 0.6, 1.2, 2.0 and higher capacity.

NMDC aims 48 MTPA iron ore production capacity by FY15 (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods/svs/metals-mining/nmdc-aims-48-mtpa-iron-ore-production-capacity-by-fy15/articleshow/17264302.cms)

Work is also going on to develop Kumaraswamy deposits in Karnataka. NMDC has not given any expected time-line for the operations from this deposit to start.

"The Kumaraswamy deposit, currently being developed for an annual production of seven mtpa," NMDC said, adding that an additional two mtpa capacity could be developed from existing mines.

Diversification plans of KIOCL (http://www.steelguru.com/indian_news/Diversification_plans_of_KIOCL/289576.html)

3. Establishing Chemical Laboratory at Sandur, Hospet Taluk, Karnataka for Iron ore quality testing services to outsiders beside own usage while participating in e-auction.


KIOCL - Hospet Iron Ore Processing Plant - Karnataka - Construction Project Profile - new market research report published (http://reports.pr-inside.com/kiocl-hospet-iron-ore-processing-r3451697.htm)

MSPL to invest Rs 300 cr for gold mining in Karnataka

MUMBAI, NOV. 21:
MSPL plans to commence gold mining at Gadag in Karnataka by August. The company, through its subsidiary Ramgad Minerals and Mining, is to invest Rs 300 crore for infrastructure development to roll out the business.

Speaking to Business Line here on Wednesday, Shrenik N. Baldota, Executive Director, MSPL, said the company has completed the ground work at the mine after receiving the Government approvals, and production is expected to start from August next year.

“We target to produce one-and-a-half tonnes of gold in the first year of operation. Depending on the progress, we will gradually increase the output,” he said

GOLD ORE PROCESSING PLANT

The Hospet-based company, which will become the first private sector gold mining company in India, plans to set up a gold ore processing plant at Gadag district, in collaboration with a South African gold mining company. MSPL plans to produce about two tonnes of gold a year through the mine life of 20 years. The mine was allotted to MSPL in 2008.

“The Gadag mine area covers about 10 sq. km. We had to drill every 100 km to explore the quantity of gold content in the ore before it could be mined ,” said Baldota.

Though MSPL has expertise in open cast iron ore mining, it has to gain know-how from foreign companies for underground gold mining. Besides, the company has to process a huge quantity of ore to retrieve the gold content. Given the high gold prices, this would still be a profitable proposition, said an analyst.

The Karnataka Government-owned Hutti Gold Mines in Raichur district is the only operational gold mine in the country. HGML, which was the first Indian company to become the member of the World Gold Council, has two plants in Hutti and Chitradurga district of Karnataka.

Kolar Gold Fields, the once most popular mine operated by the State-owned Bharat Gold Mines, had to wind up operations. China is the world’s largest gold producer, followed by Australia and the US. Last year, China produced 361 tonnes of gold, which was six per cent higher than the preceding year. In 2011, over 1,800 tonnes of gold was mined in the top 10 countries.

NMDC urged to step up Karnataka mining

Facing acute shortage of iron ore, steel and sponge iron producers of Karnataka have demanded that state-run NMDC, the only miner allowed to operate in the state, should take steps to increase its production and lower prices.

The industry that constitutes nearly a fourth of all steel produced in India is grappling with high operating costs that has seen 37 units shut shop this year. The average rate of utilisation inside the mills is just 50%.
"There are 37 units which are closed. Some of the units that have not closed down are operating at less than 25% capacity," said Seshagiri Rao, joint managing director, JSW Steel. "Even integrated steel plants like ours are facing shortages. Our plant is operating at just 68% capacity."

The industry has been facing shortages for well over a year after a Supreme Court ruling banned all iron ore mining activity in view of rampant illegal mining and disregard for environmental concerns. Only NMDC was allowed to operate at 12 million tonnes per annum.

"NMDC is not producing at the permitted levels of 12 million tonne per annum. In fact, it is operating at less than half the threshold," said Suketu Shah, joint MD, Mukand Steel. "It has also ignored international market rates and charging higher prices, making things difficult for us."

NMDC's recent two e-auctions of iron ore got less than 7% offtake as industry has stayed away due to high prices.

"In the last few auctions, the offtake has been less than 7%," said RK Goyal, MD, Kalyani Steels. "It shows that the price is too high even for the industry that is starved of iron ore."

Machines back in action in Bellary

Heavy machines spluttered to life after a gap of 18 months in the mines of the district on Saturday.

Activities resumed in the mines belonging to B Kumar Goud Mining Company and Nadeem Minerals, after they undertook reclamation and rehabilitation measures as ordered by the apex court.

Extraction of iron ore had been banned by the Supreme Court, following allegations of illegal mining.

The mining firms had been categorised as ‘A,’ ‘A+,’ ‘B,’ ‘B-1’ and ‘C’ categories, by the Central Empowered Committee (CEC) set up by the Supreme Court, based on the extent of illegality by them.

The CEC had also recommended that steps should be taken to prevent the irregularities and to reclaim areas affected by mining, after conducting extensive surveys of areas ravaged by mining.

A team of the Council of Forestry Research Education had also conducted surveys and recommended that the Supreme Court could grant permission for mining only to those firms that are in the A category and have taken reclamation and rehabilitation measures.

Srinivas, manager of the B Kumar Goud Mining Company, said their 220 employees had not been removed from their jobs, even after the cessation of mining by the firm. Residents from nearby villages were now making enquiries for jobs, he said.

However, permission is yet to be given to transport the mined ore and even the process to distribute permits has not yet been started. Permission would be given for selling ore only through the e-auction process, deputy commissioner A A Biswas said.

While B Kumar Goud Mining Company in the Swamimalai mines in Sandur taluk has been granted permission by the apex court to mine 6.4 lakh tonnes of iron ore a year, Nadeem Minerals can extract 4.5 lakh tonnes.

The Kumar Goud firm earlier used to mine 20 lakh tonnes a year. The Tiffin Barryates, another ‘A’ category company in Bellary taluk has also been given permission to extract ore and it is expected to begin operations soon.

With mining activities likely to resume in nine more A category mines soon, those looking for jobs see a glimmer of hope. Firms in other categories will get the sanction to extract ore after they complete the reclamation and rehabilitation measures.

Category breakup

There are a total of 21 mining companies in category A in the districts of Bellary, Chitradurga and Tumkur. The number of firms in the ‘A+’, ‘B’ and ‘B1’ categories are 24, 65 and seven, respectively.

The Supreme Court had stated that 16 ‘A’ category companies (12 in Bellary, three in Chitradurga and one in Tumkur) could be allowed to resume mining in the initial stages, if they adhered to reclamation and rehabilitation measures.

The licences of companies in ‘C’ category have been recommended for cancellation and allotment to others.

http://www.deccanherald.com/content/295749/machines-back-action-bellary.html

:banana:

Machines back in action in Bellary



http://www.deccanherald.com/content/295749/machines-back-action-bellary.html

:banana:

Means more problem for Ghat roads and Highways of Coastal districts.:bash:

SLR Metaliks' integrated mini steel project at Bellary to be completed by January 2013



BMM Ispat starts civil work for Steel capacity expansion project at Hospet


BMM to commission electricity unit-IV at Hospet integrated steel project by end of December 2012



Aaress Iron & Steel's Koppal Integrated steel (Phase III) project still under plans

Business Beacon

JFE to provide technology for CRNGO to JSW Steel

JSW Steel, an integrated steel manufacturer and Japan's JFE Steel Corporation signed a joint agreement where JFE will provide technology for the production of non-oriented electrical steel sheets (CRNGO) at the JSW's Vijayanagar plant in Karnataka.

By leveraging JFE Steel's well-established manufacturing technology for electrical steel, shall produce CRNGO grade electrical steel and supply to its customers, including local companies as well as Japanese, European and US-affiliated companies doing business in India.

The electrical steel sheet products are primarily imported in India due to technological constraints and JSW Steel shall be in a position to cater to fast growing consumer and industrial applications market.

JSW Steel plans to start up its new annealing and coating line for electrical steel sheets in latter half of 2014. The initial annual output is projected to be 200,000 tonnes, which will be increased to 0.6 million tons per year in phases.
:banana:

The Karnataka State Wildlife Board has rejected a fresh application from Bhushan Steel Ltd. to set up a steel plant in Bellary district near the Daroji sloth bear sanctuary, Forest Minister C.P. Yogeshwar said on Saturday.

The Delhi-based company had proposed a 6-million tonne a year integrated steel plant on 4,000 acres of land during the Karnataka Global Investors’ Meet in June this year. The wildlife board had earlier rejected it on the grounds that it would harm Asia's only sloth bear sanctuary, close to the plant's proposed site.

The board has approved an attractive ‘wildlife hardship allowance’ for forest guards and watchers, the Minister said after a meeting of the board, chaired by Chief Minister Jagadish Shettar. Each staff will get 50 per cent of basic salary as the new allowance.

TH (http://www.thehindu.com/todays-paper/tp-national/tp-karnataka/wildlife-board-rejects-steel-plant-proposal/article4205747.ece)

TNN | Dec 23, 2012, 05.56 AM IST

BANGALORE: In an affidavit filed before the Supreme Court, the state government said it will establish a special purpose vehicle called the Karnataka Mineral-Rich Region Development Corporation.

This follows a November 2, 2012 directive of the Supreme Court accepting a central empowered committee (CEC) report of September 27, 2012. The report recommended that the state not grant any new mining leases in the districts of Bellary , Tumkur and Chitradurga without obtaining the Supreme Court's permission.

The affidavit filed by advocate Anitha Shenoy stated that the fund to the SPV should be routed through the consolidated fund of the state under the overall control of the legislature . The SPV will be established to formulate and implement projects under the chairmanship of the chief secretary.

The affidavit also suggested that the grant of new leases for mining may be allowed in light of the provisions of the Mines and Minerals (Development and. Regulation) Act (MMDR ACT), without having to take prior permission of the Supreme Court.

"The state government may be permitted to fix the annual production limits for the three districts in consultation with the CEC and the present production limits of 30 MMT may be withdrawn. Cancelled mining leases of Category C may be transferred to the M/s Mysore Minerals Limited (MML) and 50% of the sale proceeds from the sale of iron ore from Category C mining leases may be transferred to M/s MML and the rest will go to the SPV through the consolidated fund," the affidavit said.

"In case of Category A and B mines, 50% of mining proceeds may go to the respective lessees and out of the remaining 50 %, 15 % may go to the SPV through consolidated fund and the remaining to the state exchequer. Mechanism for fixing the benchmark price for e-auction of the iron ore produced by the lessees may be put in place," the affidavit stated further.

The affidavit also submitted that the director general of the Survey of India may be directed to identify and demarcate inter-state boundary between Karnataka and Andhra Prdesh. It prayed the court to grant further three months time for processing renewal applications for mining.

TOI (http://timesofindia.indiatimes.com/city/bangalore/Karnataka-to-get-special-mining-corporation/articleshow/17726571.cms)

Mahesh Kulkarni / Chennai/ Bangalore Jan 02, 2013, 00:34 IST

The Comptroller and Auditor General ( CAG (http://www.business-standard.com/india/prof_page.php?search=CAG&select=1)) of India has rapped the Karnataka government for its failure to initiate any time-bound action plan to monitor the implementation of the Karnataka Mineral Policy (http://www.business-standard.com/india/prof_page.php?search=Karnataka+Mineral+Policy&select=1) (KMP), 2008.

“Even after a lapse of three years of formation of the committee under the chairmanship of secretary, commerce and industries department, the government of Karnataka has not formulated any time-bound action plan to monitor the implementation of the KMP so that the desired objectives of the policy are achieved in a time-bound manner,” CAG said in its latest report, ‘Controls and Systems for Sustainable Mining in Karnataka.’

The report was tabled in the winter session of the Assembly held at Suvarna Vidhana Soudha (http://www.business-standard.com/india/prof_page.php?search=Suvarna+Vidhana+Soudha&select=1) in Belgaum last month.

The state government announced its mineral policy in 2008 with the objective to promote transparency in granting mining concessions and maximise value addition to the minerals extracted within the state by encouraging maximum investments in downstream industries. It was aimed to promote indigenous utilisation of iron ore fines and beneficiation of low-grade ores, promote scientific mining and good environmental management and also formulate rules to regulate mineral trade.

According to the CAG report, the state government constituted a state-level coordination-cum-empowered committee under the chairmanship of the chief secretary to speed up allocation of mineral concessions (leases) in respect of raw materials for the steel sector. The functions of the committee included reviewing the implementation of the KMP 2008, building up of a computerised database, streamlining and simplification of grant of mineral concessions and to review action taken by different departments to check illegal mining.

“Though five meetings were held till January 2012, we noticed that action plans were not drawn up for speedy allocation of the mining leases to the steel sector and no efforts for implementation of KMP were found on record,” the CAG report said.

Captive mining leases

The CAG has also pointed out that the state government did not grant any captive mining leases to integrated steel plants despite constituting a high level committee in May 2007 headed by the chief secretary to grant such mining leases.

“The department of mines and geology accepted in September 2012 that no leases were sanctioned to the integrated steel plants after 2007 despite receiving thousands of applications from companies willing to establish steel plants in the state. The government of Karnataka had recommended to the government of India iron ore leases to 11 applications who had established steel plants in the state,” the CAG report said.

The CAG also pointed out that the Karnataka government did not earmark 15 per cent of the annual royalties collected towards the Mineral Development Fund (http://www.business-standard.com/india/prof_page.php?search=Mineral+Development+Fund&select=1) (MDF) for building infrastructure in mining areas. No new railway lines were commissioned, it said.

In its recommendations to the government, the CAG said that the state government might consider putting in place a system for monitoring the implementation of the KMP in a time-bound manner so that desired objectives of the KMP are achieved within a fixed time frame.

“The government may consider creation of a MDF to undertake the task of building infrastructure in mining areas and make efforts to get the railway lines commissioned to augment the transport facilities in mining areas,” the report said.

BS (http://www.business-standard.com/india/news/cag-raps-karnataka-for-failing-to-grant-mining-leases-to-steel-mills/497384/)

Sandur Manganese gets permission for mining in Karnataka

Mumbai, Jan 24, 2013 (PTI)
Karnataka-based Sandur Manganese and Iron Ores Ltd today said it has been permitted today to resume mining immediately in the state by a Supreme Court-appointed monitoring committee after meeting conditions set by them.

However, company's production capacity has been reduced to 0.74 million tonnes per annum (MTPA) for iron ore and 0.1874 MTPA for manganese to meet the apex court fixed upper ceiling of 30 MTPA production from Karanataka, the company said in a filing to the BSE.

The company is among the first few mining lease holders in the state that have secured permission to resume mining.

The resumption of mining is going to increase iron ore availability in the state.
In July-August, 2011, the Supreme Court had banned mining in Karnataka due to environmental degradation of the areas.

Last year, the apex court had lifted ban on 18 mining leases, including Sandur Manganese's leases, subject to certain conditions for better environmental protection.

"The company having complied with the said conditions to the satisfaction of the Monitoring Committee, constituted by the Supreme Court, has been today permitted to resume its mining operations immediately," it said.

Sandur Manganese had a permission of producing 1.6 MTPA of iron ore and 0.6 MTPA of manganese before the ban. The company, which also has a ferro alloy plant, belongs to the royal family of Sandur, led by Murarirao Yeshwantrao Ghorpade.

According to the company, the monitoring committee has reported about the company as "the joint team (appointed by the apex court) has not found any illegality vis-a-vis the sanctioned lease boundaries."

Besides, "the owners of the lessee company have voluntarily handed over more than 2,000 ha of forest land owned by them to the state government and which has no parallel in the state. The lessee company has an excellent track record of undertaking mining operations in accordance with the law," it added.

http://www.deccanherald.com/content/307466/sandur-manganese-gets-permission-mining.html

Malaysian EPC Oil and Gas signs agreement with VTM Group



PTI: CHENNAI, JAN 25 2013, 13:51 IST

Chennai: Malaysia-based EPC Oil and Gas Sdn Bhd, has signed a deal with city-based VTM Ltd to operate six Greenfield Oil Blocks in Russia and set up iron ore pelletisation plant at Bellary in Karnataka.

The company has been appointed as the "exclusive entity to represent EPC Oil and Gas", a VTM release today said.

VTM Group deals with exports and imports, and is also engaged in manufacturing and marketing spice powders, apart from having an iron ore division.

"This collaboration will operate in the oil blocks of Saratov region in Russia with their appointed drilling contractor. EPC Oil and Gas has been appointed by Q Lotus Holdings Incorporated, USA, to manage six blocks of greenfields oil concessions in Saratov," it added.

Further, EPC Oil & Gas Sdn Bhd has agreed to fund VTM Group USD 150 million to finance their Iron Ore Pellet Plant at Bellary in, Karnataka, the company said, adding, the greenfield Oil Blocks in Saratov region in the Volga Ural, are among the prominent oil reserves that will cater to the world's oil requirement in the future.
"This collaboration will authorise all aspects of the project, focusing on finance management and promoting a successful resource development for effective sharing of resources revenue," it said.

Financial Express (http://www.financialexpress.com/news/malaysian-epc-oil-and-gas-signs-agreement-with-vtm-group/1064796)

India’s Karnataka to Resume Iron Ore Supplies From Seven Mines

India’s Karnataka, the nation’s second-richest iron-ore producing state until a court ruling restricted mining in 2011, will resume supplies from seven mines that restarted operations after the ban was lifted.

Initial supplies from the mines will start in the next two weeks, said H.R. Srinivasa, the state’s mining director and head of a committee appointed by the top court. Combined shipments may reach 2.5 million metric tons by March, he said.

The Supreme Court in September partially lifted a year-old ban on mining in Karnataka and allowed 18 mines to restart after securing required approvals. The court had halted mining in August, 2011 to probe violations of environmental norms, allowing only state-run NMDC Ltd. (NMDC) to mine 1 million tons a month and ruling all sales to be conducted via online auctions.

The seven mines have started operations and their current output of about 1 million tons will be sold in phases, Srinivasa said. Three more mines are expected to start this month, he said.

The court-appointed committee has sold about 28 million tons of ore through online auctions last calendar year and is targeting a similar quantity in 2013, enough to meet demand, Srinivasa said. JSW Steel Ltd. (JSTL), which runs its largest plant in the state, expects to operate its factory at 75 percent to 80 percent capacity, enough to achieve 8.5 million tons of production, Seshagiri Rao, group chief financial officer, said in an earnings call on Jan. 28.

The Mumbai-based steelmaker, India’s third-largest producer, is expecting supplies to rise in the coming weeks, should the court allow more mines in the state to start, Rao had said. The court on Feb. 1 said it will hear the Karnataka mining cases on a day-to-day basis from Feb. 18.

http://www.businessweek.com/news/2013-02-04/india-s-karnataka-to-resume-iron-ore-supplies-from-seven-mines

Surya Roshni Ltd has informed BSE that the Board of Directors of the Company at its meeting held on February 05, 2013, inter alia, has considered the following:

2. Setting up of new steel plant at Karnataka

Board of Directors have In-principal approved the setting up of new steel plant at Tumkur in Karnataka. Detailed Project Report will be approved in the next Board Meeting.

http://www.moneycontrol.com/stocks/stock_market/corp_notices.php?autono=637475

ArcelorMittal seeks mining leases in Karnataka (http://www.deccanherald.com/content/312712/arcelormittal-seeks-mining-leases-karnataka.html)

New Delhi, Feb 17, 2013, (PTI):

World's largest steel maker ArcelorMittal has said it has sought mining leases in Karnataka even though new grants have been put on hold in the state.
"The Company has applied for mining leases, although following a recent Supreme Court order relating to illegal mining activities in Karnataka, and new mining legislation proposed by the Government of India, the allocation of new mining leases in Karnataka has been put on hold", the global steel giant said in a recent report.

ArcelorMittal has not been able to make much headway in USD 30 billion (over Rs 1.3 lakh crore) India projects.

The company had explored USD 6.5 billion investment opportunities in Karnataka after its proposed 12 million tonnes (MT) plants each in Jharkhand and Odisha had been been delayed "because of challenges relating to securing necessary mining rights, land and construction permits and regulatory approvals," it said.
ArcelorMittal said it has completed all necessary steps to acquire the land and has received possession certificates for 2,659 acres of private land following the acquisition of 1,827 acres and 832 acres in December 2011 and October 2012, respectively.
"This leaves a balance of 136.33 acres of land owned by the Karnataka government, which is being processed for allocation," it said, adding that the government has also approved the project's use of water from the Tungabhadra River but leases are pending.

"A draft feasibility report for the contemplated steel plant is currently being prepared, and hydrological and environmental impact assessment studies have been initiated," the company has said.

The company had entered into a pact in June 2010, with Karnataka government for construction of a six-million tonne steel plant with a captive 750 megawatt power plant.

The Luxembourg-headquartered company is struggling to move ahead with its USD 30 billion projects in India for last several years.
In 2005 and 2006, it had entered into agreements with Jharkhand and Odisha governments to build large-scale integrated steel plants.

Both the projects have been marred by problems like opposition by the local people on land acquisition and regulatory delays forcing the company to shift focus on Karnataka.
However, the linkages for iron ore, a key steel-making raw material, is still awaited.
In May last year, ArcelorMittal Chief Lakshmi Mittal had said India plans might not materialise for "5 to 10 years".
Supreme court seems to be too slow on this

6 mines resume operations in Karnataka (http://www.business-standard.com/article/markets/6-mines-resume-operations-in-karnataka-113021300847_1.html)

Mahesh Kulkarni | Bangalore February 13, 2013 Last Updated at 22:14 IST

Together, these mines are allowed to produce 3.3 mt of ore a year, about 10% of the iron ore requirement of steel mills in the state

About 10 months after the Supreme Court had approved the resumption of mining operations by 18 category-A mines, six mines have resumed operations in Karnataka. Together, these mines are allowed to produce 3.3 million tonnes (mt) of ore a year, about 10 per cent of the iron ore requirement of steel mills in the state.

Till December 2012, the six mines produced 710,000 mt, which is yet to be e-auctioned. An additional four mines, with a capacity of 1.8 mt, are in various stages of securing approvals. It is expected these would commence production by March-end, said sources in the steel industry.

On April 20, 2012, the court had approved the reopening of 18 category-A mines. The remaining category A and B mines would be allowed to resume operations after these fulfilled the court’s conditions.

The Indian Council of Forestry Research and Education (ICFRE) had filed reclamation and rehabilitation (R&R) plans for 41 category-A and B mines. According to the plans, permissible production for all 41 mining leases is 14.48 mt a year. A central empowered committee (CEC) has approved the R&R plans for 17 mines. Of these, 12 have accepted all the court’s conditions.

“Despite continued representations from the steel industry from early 2012, urging immediate steps for early reopening of the closed mines, the situation has remained totally unsatisfactory. CEC had expected things would improve from August 2012. Unfortunately, this didn’t happen. This has resulted in complete closure of nine mini blast furnaces of 20 such plants. The rest are operating at a reduced capacity of less than 60 per cent,” said R K Goyal, managing director, Kalyani Steels.

He added the situation would deteriorate in the next few months, as it was uncertain how many mines would resume operations.

The steel industry in Karnataka needs about 30 mt of iron ore a year and produces about 16 mt of steel. The entire industry, including sponge iron units, is operating at a reduced capacity of about 50 per cent. Some sponge iron and mini steel mills have been shut due to shortage of iron ore.


Karnataka sees only a few iron ore mines resuming operations (http://articles.economictimes.indiatimes.com/2013-02-14/news/37100431_1_basant-poddar-iron-ore-mines)

While allocating new licenses the government should check up how much value addition is there, producer of steel should be prefered over producer of just pellets.

Record gold production at Hatti Mines (http://www.deccanherald.com/content/311239/record-gold-production-hatti-mines.html)

Based on GIS application system, the department of mines and geology has so far digitised 4,500 mining leases in Karnataka


The Karnataka government has embarked on a project to build a geo database on GIS application for mapping mineralised zones and developing mineral atlas and data on existing leases, which will be helpful in processing the mining applications online.

The department of mines and geology has undertaken this project. Up to the end of October 2012, the department had completed digitisation of 4,500 leases for various minerals in the state, the government said in the Economic Survey of Karnataka for 2012-13.

The main objective of the project is to delineate the mineral belts on various potential zones in the state by adopting remote sensing techniques marking the free hold areas for the benefit of the entrepreneurs, the Survey, which was tabled in the Assembly last week, said.

The data will be fetched to the department website. The existing data displayed on the website will be utilised by industries for filing of online application for mining lease from elsewhere.

According to the directions of the ministry of mines, the department has undertaken a project on online Mining Tenement Registry on a pilot basis in Bellary district. Under this programme, all the village maps/khasra map numbering 599 have been digitised. The work will be extended to Gulbarga district.

The information pertaining to mining lease application and lease details will be incorporated on these cadastral maps using the GIS technology. Further, a data centre and server will be established in the Directorate, Bangalore.

Under this programme, digitisation of maps and other geological data would be undertaken and cadastral maps, computers, related software and other infrastructure would be procured.

The department also intends to use advanced equipment such as GPS mounted magnetometer and high-end computers with software for proving the exploration data. It is also proposed to establish mobile squads and to procure RFID and GPS instruments to curb illegal transportation of minerals.

The department has also established integrated check posts involving forest, police, transport, commercial tax and PWD. “It has been intended to computerise these composite check posts including already working 15 important check posts of the department,” the survey said.

Construction of two modern check posts have been completed at Malappanahatti (Chitradurga district), Chowdlapura (Tumkur district) and further construction work on four check posts such as D B Kere in Chitradurga district, Bannihatti, Metriki, Kallahally in Bellary district is under progress. The department has fixed the tentative target to bring up four new check posts such as Mukka in Dakshina Kannada district, Badri and Ubbalgundi in Bellary district, Satyagala in Chamarajanagar during 2013-14.

Karnataka likely to auction 6 mt of iron ore dumps (http://www.business-standard.com/article/markets/karnataka-likely-to-auction-6-mt-of-iron-ore-dumps-113021900790_1.html)

The Supreme Court-appointed Monitoring Committee, which is supervising the e-auction of iron ore in Karnataka, is likely to bring iron ore dumps for auction later this month. The committee is awaiting final approval from the Central Empowered Committee (CEC) to auction about six million tonnes (mt) of dumps.

“The assessment of dumps in Bellary district has been completed and it is estimated that about six mt of dumps could be auctioned. The CEC recently visited various mines in Bellary district and took on record the dumps available for auction. However, the grading of dumps is still to be completed and once that is done, the ore could be put on auction,” sources close to the development told Business Standard.

The move to auction iron ore dumps follows the exhaustion of iron ore stockpile and the steel mills in and around Karnataka are facing acute shortage of iron ore. The monitoring committee has till now auctioned 37 mt of iron ore. Presently, NMDC is producing about 700,000 tonnes per month.

The steel manufacturers in and around Karnataka, such as JSW Steel, Kalyani Steel, BMM Ispat and pellet makers like MSPL are currently facing severe shortage of iron ore for their mills. The industry requires about 30-35 mt of iron ore per annum for its current installed capacities.

The monitoring committee is conducting assessment of the iron ore at dumps in various mines where the mine owners had not declared their dumps earlier when they were carrying out mining. The mining rules stipulate the miners to give a declaration while conducting mining as to what type of ore they had dumped.

However, not many mine owners had declared their dumps except Mineral Enterprises Limited (MEL), which had preserved its dumps scientifically, the sources said. While the quality of ore available in the dumps is still not known, the industry estimates it to contain ore with iron (Fe) content ranging between 45 per cent and 50 per cent. “This is considered low grade ore and is not suitable for steel making directly. The steel mills will have to beneficiate this ore before using it as raw material,” sources said.

Presently, JSW Steel, BMM Ispat and MSPL have installed technology to beneficiate low grade iron ore. JSW Steel will be the largest beneficiary as it has set up a large-capacity benefication plant, the sources added.

Meanwhile, seven Category A mines have resumed mining operations in the state and have put out close to one mt of fresh ore. These are: SMIORE (two leases), Tiffin Barytes, B Kumar Gouda, R Praveen Chandra, Nadeem Minerals and VESCO. MEL, which was the first mining company to resume mining operations, worked only for a month and has shut down again following the expiry of its mining lease.

The Monitoring Committee has decided to put on auction the fresh stock of iron ore on February 22, 2013. The mining leases are free to fix their own base price based on the cost of mining by individual leaseholders, the sources said.

Kennametal India seeks land for expansion (http://www.thehindubusinessline.com/companies/kennametal-india-seeks-land-for-expansion/article4478374.ece)

BANGALORE, MARCH 5:
Kennametal India promoter Kennametal Inc. (US) has sought land from the Karnataka Government to expand, modernise and relocate its operations.

The company said that it is filing an application with the State Government agency — Karnataka Udyog Mitra — seeking assistance to identify and allot a suitable parcel of industrial land for the purpose of expansion.

The company is seeking land allotment by the Karnataka Industrial Area Development Board (KIADB) within a radius of 40 kilometres of the existing location of the company’s current manufacturing facility.

Bhagya Chandra Rao, Managing Director, said: “This expansion plan would allow us to build on our robust position and serve the growing demand in India’s industrial and infrastructure sectors.”

BMM Ispat order a new combi caster from SMS Concast

BMM Ispat from Hospet, Karnataka Province, India, has ordered a combined-caster from SMS Concast, Switzerland. The caster ensures improved machine availability and increases productivity for BMM Ispat. With the new caster, BMM Ispat will produce 1.1 million tonne of billets and rounds per year.

In the first phase of BMM Ispat’s expansion plan, SMS Concast supplies a high-speed 1 x 5- (optional six- strand) combi-caster, which produces different sections in both square and round formats.

This machine is fully equipped to cast challenging steel grades like spring steel, free-cutting steel, bearing steel, pipe grades, microalloyed and structural steels. High product quality is ensured by using copper mold tubes with CONVEX technology ® by SMS Concast.

The new caster will give BMM Ispat a competitive edge in achieving a lower conversion cost.

The expansion project includes the plan to increase annual steel manufacturing capacity to about 2 million t in two phases. With the capacity expansion, BMM Ispat will become the second largest steel producer in the state of Karnataka, India.

Commissioning of the combi-caster is scheduled for November 2013.

www.steelguru.com/indian_news/BMM_Ispat_order_a_new_combi_caster_from_SMS_Concast/304591.html

JSW Steel to commission 2.3 MT auto grade steel plant in Sep

New Delhi, Mar 10 (PTI) JSW Steel will commission the first phase of its new 2.3 million tonnes plant, which will produce high-grade automotive steel, by September this year, a top company official said.

The new plant is envisaged to get Rs 4,025 crore investment and is being developed in technical collaboration with Japan''s JFE Steel Corporation -- the second largest shareholder of JSW.

"They (JFE) have given us that technology for automotive steel. That plant is coming up in operation in second half of this year, by September," JSW Steel''s Joint Managing Director Seshagiri Rao MVS told PTI.

He added that "out of 2.3 million tonnes (proposed capacity), we are commissioning phase-I of 1 million tonnes in September. The second phase will come in next year at the same time."
In January 2011, the company had announced it will set up a new 2.3 million tonnes per annum (MTPA) cold rolling mill complex while targeting increase in its share in niche market segments like automotive steel, which is used in making body parts of cars and SUVs.

The new capacity will help JSW in meeting the demand of automobile industry for high end products like dual-phase steel and strip steel as well.

Currently, most of the demand for such products is met through imports as there is not enough domestic manufacturing capacity. According to industry estimates, annual domestic demand of automotive steel is around 8-10 million tonnes.

As per the company, the under construction complex will have 2.3 MTPA of pickling cum coupled tandem cold rolling mill, 1.9 MTPA (two lines of 0.95 MTPA each) continuous annealing lines and 0.4 MTPA galvanising-cum-galvannealing line.

The project is being funded with a debt to equity ratio of 2:1. This means that out of Rs 4,025 crore investment, company has taken Rs 2,675 crore debt and is meeting rest of the investments, at Rs 1,350 crore, through internal accruals.

JSW Steel currently has a 10 MTPA capacity at Karnataka''s Vijaynagar and 1 MTPA capacity at Tamil Nadu''s Salem. JSW Ispat''s merger into the company, which was announced in September last year, is awaiting approval of the Bombay High Court.

http://news.in.msn.com/business/article.aspx?cp-documentid=252432458

Karnataka iron ore output seen at 30 million tonnes
New Delhi, April 7, 2013, Reuters:

Karnataka expects to reopen 19 iron ore mines this fiscal year, which were shut by a court in 2011, increasing supplies to local steel mills by 30 million tonnes, the head of its mines department said.

India used to produce 200 million tonnes of iron ore a year and sell about half of that overseas before bans on production aimed at curbing illegal mining in Karnataka and top producer Goa slowed production and exports to a trickle.

Nine mines have already restarted in Karnataka, which used to produce about 50 million tonnes before the Supreme Court imposed a ban on mining there nearly two years ago. “(Another) eight to nine mines can be opened immediately this month, provided the honourable Supreme Court allows that. A decision is expected this month,� said H R Srinivasa, Director, Karnataka Department of Mines and Geology.

Last September, the Supreme Court allowed the reopening of 18 mines of the state’s 170 total as long as operators fulfilled reclamation and rehabilitation criteria. The court is expected to add another 10 mines in the course of this year.

“Many companies are already working on reclamation and rehabilitation,� Srinivasa said, referring to court-mandated steps such as building fort-like walls around the mines and using rain water for sanitation.

The court may eventually allow a total of 120 mines in the state to restart and shut the remaining 50 mines due to illegalities, according to the Federation of Indian Mineral Industries (Fimi), which is also advising the top court.

http://www.deccanherald.com/content/324369/karnataka-iron-ore-output-seen.html

Posco puts Karnataka project on hold
BHUBANESWAR, April 15, 2013, DHNS:

The South Korean steel giant Posco clarified that it has not shelved the proposed project in Karnataka, but only suspended all efforts for its implementation due to the prevailing political uncertainty in the State.

The company, however, stressed that its priority is to the Odisha project.

“We have put a hold on our efforts for implementation of the proposed steel project in Karnataka primarily because of the political uncertainty in the State. But we have no intention of pulling out of the project. We are waiting for political uncertainty to settle down,” Posco India chairman-cum-managing director (CMD), Yong Won Yoon told a group of journalists visiting the Posco facility in Raigarh district of Maharashtra.

Initial payment

Sources in the company said about Rs 60 crore had already been submitted to the Karnataka government in 2010 as the initial payment for land acquisition for the proposed 6 million tonne per annum steel mill. The MoU for the project was signed with the State government in the same year.

......

http://www.deccanherald.com/content/326276/posco-puts-karnataka-project-hold.html

SC permits resumption of iron ore production in nine Karnataka mines

NEW DELHI: The Supreme Court on Thursday permitted resumption of iron ore mining in Karnataka but said it must be carried in strict compliance if the condition is imposed by the court.

But the SC said the illegal iron ore mining on Andhra-Karnataka border by Reddy brothers would remain suspended till demarcation of boundary between the two states.

read more: http://timesofindia.indiatimes.com/india/SC-permits-resumption-of-iron-ore-production-in-nine-Karnataka-mines/articleshow/19610475.cms

Supreme Court cancels 49 mining leases in Karnataka (http://www.thehindu.com/news/national/karnataka/supreme-court-cancels-49-mining-leases-in-karnataka/article4629761.ece)

http://www.youtube.com/watch?v=8Sn_jFlcSYw

http://www.youtube.com/watch?v=8Sn_jFlcSYw

JSW Steel eyes mining leases in Karnataka post SC judgement

JSW Steel is looking to secure mining leases, including bidding for new mines, in Karnataka after last week's Supreme Court judgement lifting the mining ban in the state.

read more: http://www.business-standard.com/article/companies/jsw-steel-eyes-mining-leases-in-karnataka-post-sc-judgement-113042400461_1.html