Iron ore rich Karnataka is fast emerging as a hub for steel industries. This thread is to track development activities related to iron and steel all across Karnataka including Bellary-Hospet-Koppal region.

I am starting the thread with this old breaking news on steel corridor:

Karnataka govt plans 300-km 'steel corridor' (http://www.business-standard.com/india/storypage.php?autono=366314)

The Karnataka government is planning to develop a 300-km ‘steel corridor’, which they hope will attract investment worth Rs 20,000 crore from the steel majors. As part of the development, the idea is for a nuclear power plant, a port and high-speed train connectivity.

The corridor is planned around the iron ore-rich Bellary-Hospet area in eastern Karnataka. Speaking to Business Standard at the sidelines of CII’s Suminfra 2009 meet, V Madhu, principal secretary, infrastructure development, said the state wanted to move from just exporting ore to value-added production of steel.

Minng and steel majors have been spoken to — NMDC, Tata Steel, JSW, Brahmani, to name some — and all have shown a lot of interest. The idea is that each steel manufacturer could erect a manufacturing unit of at least two million tonnes. Infrastructure development is on — new roads, identifiication of 500 sq km of land for an industrial park (tender for development to be floated in two months) and so forth. Work is already on for a 120 km rail link between Hubli and Ankola in the region, which ties in with the plan.

The industrial park, it is hoped, will attract Rs 20,000 crore of investment, with creation of jobs, direct and indirect, to be around two lakh.There wil also be a township.

Madhu says the government also wants a nuclear power unit in the corridor. “We met the Chairman of the Atomic Energy Commission, and gave our recommendation to set up a nuclear plant at Tadri.” The government is also promoting a port at Tadri, on the western coast.



ArcelorMittal, Karnataka talk plant (http://www.dnaindia.com/money/report_arcelormittal-karnataka-talk-plant_1299546)
NMDC to set up steel plant in Bellary (http://www.hindu.com/2009/09/23/stories/2009092354580400.htm)
MSPL to set up two iron ore plants (http://www.business-standard.com/india/news/mspl-to-settwo-iron-ore-plants/370171/)
Tata Metaliks may push Karnataka steel plan next year (http://www.business-standard.com/india/news/tata-metaliks-may-push-k%5Ctaka-steel-plan-next-yr/370240/)
JSW Steel seeks iron ore mine in Karnataka (http://www.business-standard.com/india/news/jsw-steel-seeks-iron-ore-mine-in-karnataka/370636/)
Eleven industrial projects cleared (http://www.thehindu.com/2009/09/01/stories/2009090155450500.htm)


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
JSW Electrical Steel, Ballari - 0.6 MTPA
JSW coils, Bellary - 1.9 MTPA, Rs 4,190 crore, -- MOU signed during GIM-2012
JSW Projects, Bellary - 1.20 MTPA DRI, 3.42 MTPA CDQ, 70 Mw captive power plant, Rs 2,400 crores, -- MOU signed during GIM-2012
Bhushan Steel Limited (+Sumitomo), Bagalakote/Koppala/Ballary - Steel Plant - 6 MTPA (+ 600 MW Captive Power Plant) -- MOU signed during GIM-2010 - withdrawn the proposal?
NMDC, Bellary - Steel Plant 5 MTPA (intially 2 MTPA), 2500 acres, Rs.25,000 crores -- MOU signed during GIM-2010, updated in GIM-2012 as EoI
NMDC - Planned Iron Ore Concentrate Plant - 0.03 MTPA
NMDC - Pellet Plant u/c 1.2 MTPA
Tata Metailks, Haveri - 6 MTPA, Rs.20,000 crores -- MOU signed during GIM-2010, updated in GIM-2012 as EoI
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 - 3 MTPA, 1134 acres, Rs 16,800 crores.
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
Kalyani Steels, Koppala - Steel plant - 3 MTPA, Rs 7,500 crores, 2000 acres, -- MOU signed during GIM-2012
Kalyani Steels, Yadagiri - Steel plant - ? MTPA, Rs 12,000 crores, 2200 acres-- MOU signed during GIM-2012
Hospet Steels (Kalyani & Mukund JVC) had capacity of 2.4 MTPA and now after expansion is it ~3 MTPA?
Mukand, Koppala - 700,000 tonnes per annum integrated steel plant, Rs 2,892 crore
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)
Zeenath Transport Company, Bellary - 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



Tadadi Port with handling capacity of 34.1 MTPA

Bangalore, Nov. 17 With iron ore prices on the decline since May 2008, a number of mining companies are getting into steel production, particularly in Karnataka.

The drop in demand for iron ore from China, which accounts for over 90 per cent of India’s iron ore exports, has led the industry to explore other markets such as Japan, South Korea, Pakistan, Turkey and the UAE, sources in the Federation of Indian Mineral Industries (FIMI) said. “While the problem of defaults in China has abated, Pakistan is not a reliable option in view of the law and order situation,” they said.

Pointing to the trend of mining companies getting into steelmaking, FIMI sources said that Xinxing Group and China National Metal, which have entered into a joint venture with three Indian partners, are planning to set up an iron ore pellet plant at Koppal in Karnataka. The Indian partners in the joint venture are Manasara Investments, Kelachandra group and Sigma Minmet.

Similarly, MSPL Ltd, a Bellary-based iron ore mining company, is planning to set up two iron ore beneficiation plants in Bellary district. MSPL also plans to utilise the iron ore fines as the basic raw material for its pellet plant at Koppal, now under construction.

Mineral Enterprises Ltd, an exporter of medium grade iron ores, is also in the process of setting up an integrated steel plant in the Chitradurga-Hassan area, hoping to use gas from Dabhol for its project, FIMI sources said.

FIMI sources said that the global prices for iron ore with 63.5 per cent Fe content had fallen from $170 a tonne in May 2008 to $56.5 a tonne in March 2009. At present, iron ore prices are in the region of $100 a tonne.

Increase in taxes

While decrying the increase in taxes on the mining sector, they said the average cost of extraction was about Rs 500 a tonne ($11-12). “When iron ore prices were at rock bottom at the turn of the century, steel industry players did not want to get into mining. Now the wheel has turned full circle,” they said.

Underlying the emergence of the state as a steelmaking centre, Essar Steel recently unveiled plans to set up a $4.2- billion steel plant with a production capacity of six million tonnes per annum in Bagalkot.

The project will be set up in two phases. The first phase, with a production target of three million tonnes per annum, includes the construction of a coke-oven plant, a battery unit and a pellet plant. At the end of the second phase, the production capacity is expected to touch six million tonnes per annum, FIMI representatives said.

Essar Steel plans to lease an iron ore mine in the area to ensure a steady supply of raw material and is in talks with the State, they elaborated.


Source: The Hindu Business Line (http://www.thehindubusinessline.com/2009/11/18/stories/2009111850931700.htm)

Tata Metaliks sparkles on expansion plans (http://www.business-standard.com/india/news/tata-metaliks-sparklesexpansion-plans/78689/on)

Mumbai: ArcelorMittal's Indian unit has sought approval from the Karnataka government to set up a steel plant, the company said in a statement on Monday.

The Karnataka project will be in addition to ArcelorMittal's existing plans to build steel plants in Orissa and Jharkhand, the company said. Earlier ET Now television reported the Karnataka steel plant would have a capacity of 6 million tonnes a year.

The company statement did not mention the plant's capacity. ArcelorMittal said it would disclose more details on cost, capacity and a timeline after it completes technical studies in three to four months.


Source: DNA (http://www.dnaindia.com/money/report_arcelormittal-plans-a-new-steel-plant-in-karnataka_1315526)

London, Nov 20 (PTI): British structural steel major Severfield-Rowen has announced the signing of its second joint venture in India to establish a structural metal decking company in Mumbai and Bellary, Karnataka.

Based in Thirsk, Yorkshire, the company has reached an agreement between JSW Severfield Structures and SMD Asia.

JSW Severfield Structures is a 50:50 joint venture between Severfield-Rowen and JSW Steel in November 2008 for design, production and erection of structural steelwork to principally service Indian markets.

SMD Asia is a limited liability partnership formed by the directors of SMD, a British company which specialises in design, production and installation of metal decking for construction projects.


Source: PTI (http://www.ptinews.com/news/385911_British-structural-steel-co-inks-second-Indian-JV)

^^ great krishnamoorthy :cheers:

BANGALORE: Karnataka has always been the preferred destination for miners, especially iron ore extractors. Thirty minerals are extracted from 1.69 lakh hectares across 20 districts of the state.

Iron ore has a lion’s share of this — 96,000 hectares. Limestone and manganese follow at 24,837.01 and 14,932.96 hectares respectively. Most iron ore and manganese extraction is in Bellary, and limestone is in Gulbarga.

According to the department of mines and geology, iron ore is the only mineral in the state that is exported. Of the whopping 473.16 lakh tonnes produced, 271.35 lakh tonnes are exported.

PALTRY REVENUE NO MORE

All these years, the government used to obtain a small amount as tax from mining. The state used to get 4% as VAT and royalty, while the Centre got 15% export duty on every tonne of iron ore.

For iron ore, royalty varied from Rs 4 per tonnne to Rs 27 per tonne, depending on Fe content. If it’s 40%, the rate was Rs 4 per tonne, and Rs 27 for more than 65%.

This meant that iron ore miners earned between Rs 3,000 and Rs 5,000 per tonne, but paid the government only Rs 135 (if sold in domestic market) and Rs 540 (exports).

However, on August 13, 2009, the Indian Bureau of Mines (IBM) fixed royalty based on ore’s grade and sale value. "The IBM comes out with a monthly bulletin on sale-value prices. The royalty will be 10% of that," said an official from the mines and geology department.


Source: TOI (http://timesofindia.indiatimes.com/city/bangalore/Miners-mint-crores-in-ironclad-Bellary/articleshow/5265702.cms)

Karnataka seems to be striking gold with steel. Roiled by land acquisition problems in other states, cash flush steel majors are queuing up at Karnataka’s doorsteps with mega steel project proposals.

Close on the heels of ArcelorMittal expressing intentions of putting up a mega steel plant, envisaging investments to the tune of Rs 30,000 crore, it is now understood that lighting products & steel pipes manufacturer Surya Roshni Ltd too is planning a steel manufacturing plant in Karnataka through its 51 per cent subsidiary — Surya Global Steel Tubes Limited.

Official sources confirmed to Deccan Herald that senior officials of Surya Roshni have filed a proposal for setting up a 5 million tonne per annum steel plant in Bellary evisaging an investment of Rs 7,500 crore on a 848 acre plot.

Surya Global of the Rs 1,750-crore Surya Roshni group, has set up a steel pipe plant in Gujarat, and will be doing so in Karnataka once the modalities are formalised. Incidentally, South Korean steel major Posco too has sounded with a Rs 40,000 crore plan with confirmation expected shortly, they added.

Formal clearance

Further, sources said these companies are being shown various sites in the proposed steel corridor, such as Bellary, Bagalkot, Hubli, Koppal and Bijapur among other districts. They observed that State-level screening committee will be holding its meeting on November 27 to discuss these proposals as also other projects lined up in different sectors before placing the same before the State High Level Clearing Committee sits to formally take a call on clearances.

Incidentally, sources said, team of State officials had visited New Delhi last week to hold talks with ArcelorMittal officials on the latter’s investment plans in Karnataka and discuss their requirements. ArcelorMittal is said to have narrowed down to Hubli-Dharward and Koppal regions for 4,000 acre plant, after State showcased its proposed steel corridor, sources said. The firm plans to set up an integrated steel plant (through pig iron & pellets route) with six million per annum capacity besides captive power generation unit of 750 MW capacity.

Incidentally, during 2008-09, iron & steel sector topped the list of SHLCC approvals, with seven new projects envisaging an estimated investment of Rs 77,571.25 crore. Recently, Surya Roshni Chairman & Managing Director Jaiprakash Agarwal, is learned to have expressed intentions of setting up a lighting and steel pipe plant in South India, as not only they enjoyed handsome market share, but also help it cut down freight costs, besides spanning footprint.

At that time Agarwal had observed that they were seriously scouting for land somewhere between Tamil Nadu and Karnataka, which could help it it serve both markets.


Source: DHNS (http://www.deccanherald.com/content/37719/state-strike-steel-gold-majors.html)

:banana:

This is a great news and according to this news in TOI, POSCO is also setting up a 60,000 crore steel plant in Karnataka, yet I don't see any information in this forum about POSCO's steel plant in Karnataka.

http://timesofindia.indiatimes.com/biz/india-business/ArcelorMittal-plans-plant-in-Ktaka-for-Rs-30k-cr/articleshow/5262617.cms

These two projects would be the first step towards rapid industrialization in Karnataka. I am thrilled about the number of families that would be empowered through these industries.

Cheers!

This is a great news and according to this news in TOI, POSCO is also setting up a 60,000 crore steel plant in Karnataka, yet I don't see any information in this forum about POSCO's steel plant in Karnataka.

http://timesofindia.indiatimes.com/biz/india-business/ArcelorMittal-plans-plant-in-Ktaka-for-Rs-30k-cr/articleshow/5262617.cms

These two projects would be the first step towards rapid industrialization in Karnataka. I am thrilled about the number of families that would be empowered through these industries.

Cheers!

True north karnataka's potential is being exposed and tapped to the fullest??....and much more is to be done............:cheers:

Jai North Karnataka

The Karnataka state government has approved ArcelorMittal’s proposal for a Rs 30,000 crore steel plant of 6 million tonne. It has assured the global steel behemoth of land, water, and power support. "We have shown them three sites, of which they will finalise one."

The plant is expected to generate employment for 10,000 people. It will require 4,000 acres and will have a captive power plant also.

Commenting on the same, L N Mittal, Chairman and CEO, ArcelorMittal, says, "Our team had a constructive and positive meeting in response to an invitation from the Karnataka government. Karnataka is one of the most progressive states in India and therefore is an ideal place to build a world class steel plant. The state government understands that India will continue to have a growing demand for steel and is keen to participate in this growth potential. We look forward to working closely with the state government as the project progresses. It will be an honour for ArcelorMittal to be a part of Karnataka’s industrial development.”


Source: CNBC-TV18 (http://www.moneycontrol.com/news/business/karnataka-govt-approves-mittal-rs-30k-cr-steel-plant_427775.html)


Bangalore, Nov 27 (PTI) The world's largest steel producer ArcelorMittal has short-listed some sites in northern Karnataka for its proposed steel plant involving nearly Rs 30,000 crore investment, ArcelorMittal India chief executive Vijay Bhatnagar said here today.

"We have gone and done the survey. We have short-selected some sites. We have to get into much more details", Bhatnagar, who is the also CEO of ArcelorMittal China told reporters after a preliminary meeting with chief minister BS Yeddyurappa and senior state government officials here.

He said the incentives that Karnataka would offer for setting up the plant have not been worked out, but noted that the state's 2009-14 industrial policy offers some.


Source: PTI (http://www.ptinews.com/news/397524_ArcelorMittal-short-lists-sites-in-Karnataka)

Arcelor Mittal proposes steel plant in State


V. Sridhar

Six-million-tonne steel unit and 750-MW power plant planned in Koppal-Bellary-Hospet area

The project will require 4,000 acres of land

Investment for the project to be about Rs. 30,000 crore

http://www.hindu.com/2009/11/28/images/2009112854310401.jpg
— Photo: G.R.N. Somashekar
Welcoming investment: Chief Minister B.S. Yeddyurappa greeting a delegation from Arcelor Mittal during a meeting in Bangalore on Friday.

Bangalore: Senior officials from Arcelor Mittal India, the Indian subsidiary of Arcelor Mittal, the world’s biggest steel producer, met Chief Minister B.S. Yeddyurappa on Friday to hold “preliminary discussions” on the company’s proposal to establish an integrated steel plant in north Karnataka.

Emerging from the 45-minute meeting with company officials, Mr. Yeddyurappa said Arcelor Mittal proposed to establish a six-million tonne steel plant and a 750-MW power plant in the Koppal-Bellary-Hospet area. He said the company has “evinced interest” in three sites in the region. However, he refused to divulge more details, saying the discussions were still in the early stages. The project would require 4,000 acres of land, which would be made available to the company by the Karnataka Industrial Areas Development Board.

Reiterating the Government’s “full support” to the project, Mr. Yeddyurappa said the investment in the project was likely to be about Rs. 30,000 crore, resulting in 10,000 jobs.

Chief Secretary S.V. Ranganath said the project could commence within six months of receiving all clearances, including environmental clearances, from the Centre. “The project can take off within four years from groundbreaking,” he said.

The Arcelor Mittal India team was led by its CEO Vijay Bhatnagar; Sudhir Maheshwari, member of the Group Management Board of the parent company; and Sanath Mishra, CEO (Greenfield Projects, India).
Mining leases

Earlier in the day, on the sidelines of a conference organised by the Federation of Indian Chambers of Commerce and Industry, V.P. Baligar, Principal Secretary, Industry and Commerce, told The Hindu that although the Government had received more than 200 applications for mining leases (for iron ore), “the Government would prefer to issue the leases to investors who add value within the State.” Prior to the meeting between the company officials and the Chief Minister, the Screening Committee of the Industries and Commerce Department considered the company’s proposal.

Minister for Large and Medium Industries Murugesh Nirani said: “Further discussions with the company will resume in about 15 days.”
Invitation

In a statement issued from London, L.N. Mittal, Arcelor Mittal Chairman and CEO, said the company’s proposal came as a result of “an invitation from the Karnataka Government.” He said the State would be “an ideal place to build a world-class steel plant.” “We look forward to working closely with the State Government as the project progresses,” he added.

http://www.hindu.com/2009/11/28/stories/2009112854310400.htm

^^


Steel giant ArcelorMittal on Saturday agreed to invest Rs50,000 crore to set up a six million-tonne mega steel plant in North Karnataka in response to an invitation from chief minister BS Yeddyurappa.


The plant is expected to generate employment for at least 20,000 people. The Rs30,000 crore phase-I will also include a 750 MW thermal power plant. The phase-II of the project will cost Rs20,000 crore.


Source: DNA (http://www.dnaindia.com/bangalore/report_mittal-says-yes-to-north-karnataka_1317484)

Phase-II is not clear. Whether it is expansion or manufacturing of other products?

Recession seems to be no dampener for India Inc. For, if the line-up of investment proposals knocking on Karnataka doors is any indicator, corporate India seems to have been resilient to stave off any after-effects of recession and is well on track for expansion as also new investments.

Highly placed official sources told Deccan Herald that nearly Rs 69,000 crore investment from as many as 28 project proposals is now awaiting the State High Level Clearance Committee (SHLCC).

Sources said, these projects are over and above the Rs 30,000 crore plus investments proposed by ArcelorMittal.

They pointed out that besides a captive gas-based power project, the Mittals have also promised investments of another Rs 15,000 crore to Rs 20,000 crore for expansion of their project by 2 to 3 metric tonne per annum, once their proposed project gets underway.

Posco defers proposal

In this regard, they said, South Korean major Posco, which too was scouting for alternative site and had zeroed in on Karnataka, has now temporarily deferred their plans to February. They pointed out this development could be in the light of the Mittals’ proposed foray into Karnataka and they would like to wait and watch how this spans out before taking a call on the viability. Sources said nearly as many as 10 cement projects worth investments of Rs 55,000 crore have been vetted by the screening committee. Likewise, they said, among them are ACC with a Rs 3,500 crore proposal, Grasim with Rs 3,500 crore naming a few.

Incidentally, confirming State government’s claims that Surya Roshni Limited’s subsidiary Surya Global Steel & Gen Power was looking at Karnataka, Surya Roshni Limited Deputy Managing Director (Project & Corporate Management) Vineet Garg, in a letter to Deccan Herald, stated the company has indeed proposed an integrated steel plant in Karnataka, following an informal meeting with Chief Minister B S Yeddyurappa.

Feasibility report

Garg said once the State government clears their proposal, the company would thereafter undertake feasibility report and appropriate investments would be made after due approval from the company’s board. Among proposals placed before the screening committee includes the Rs 7,440 crore Surya Global project, Rs 250 crore PET jar project, Rs 450 crore IT & ITeS project by Wipro Ltd, Rs 450 crore aerospace project, Rs 250 crore sugar project, Rs 4,500 crore rectified spirits and alcohol project by Zuari Fertilisers & Chemicals Ltd, Rs 90 crore biscuit project by Kolkata-based company, logistic support proposal of Rs 700 crore, sources said.
These proposals would be shortly placed before the SHLCC for formal clearance sources said, following which companies would go in for detailed project reports among other formalities before final roll outs of implementation milestones.


Source: DHNS (http://www.deccanherald.com/content/38408/big-ticket-investments-knock-karnatakas.html)

Wow! Cement corridor is also shaping up with 10 proposals amounting to Rs. 55000 crores!

Krishnomoorthy that Zuari fertilizers is due to come up in Belgaum right??

I hope with all those investments flight service from belgaum resumes. :)

Steel major Posco in talks with Karnataka for setting up plant

Special Correspondent

Company expected to invest Rs. 20,000 crore in the State

Posco to be allotted captive mines

Final round of talks to be held soon

BANGALORE: After the agreement with the world’s largest steel maker, Arcelor Mittal, to set up a major steel plant in one of the northern districts of Karnataka, discussions are now on with yet another major steel manufacturer, Posco, and this is expected to fructify in about a fortnight.

Discussions are on between the State government and the top management of Posco and a final discussion in the presence of Chief Minister B.S. Yeddyurappa is expected to be held in about a fortnight.

Posco is expected to invest Rs. 20,000 crore in a plant to manufacture four million tonnes initially and eight million tonnes after expansion.

Briefing presspersons after a daylong high-level meeting with senior officials of the Department of Industries and Commerce, the Minister for Large and Medium Industries, Murugesh Nirani, said, “We are confident of finalising the agreement with Posco and the discussions are now at an advanced stage. Both Arcelor Mittal and Posco will have captive mines in their respective joint ventures with the State government-owned Mysore Minerals Ltd.”

Enough iron ore

The Industries Department has estimated that the State has enough iron ore reserves for two major steel plants. “The State government is committed to value addition to the iron ore mined in the State.” A senior management team from Arcelor Mittal has visited five districts — Bagalkot, Bijapur, Bellary, Koppal and Dharwad — to finalise the location for the steel plant. The company has sought 4,000 acres of land and the State government has agreed to provide the land in any of the five districts. The land will be acquired by the Karnataka Industrial Areas Development Board (KIADB).

At the preparatory meeting held at the Global Investors’ Meet in June this year, it was decided to acquire one lakh acres of land in and around all the second tier cities, apart from around 2,000 acres adjoining Bangalore. As such, the KIADB has taken steps to acquire 50,000 acres of land.

A preliminary notification has been issued for the acquisition of 30,000 acres and the government will be paying market value to the owners to hasten the acquisition.

http://www.hindu.com/2009/12/01/stories/2009120155630700.htm

:banana:

No news on talks with other major steel producers like:

Nippon Steel, Baosteel, Hebei Steel, JFE, Wuhan Steel, Jiangsu Shagang, U.S. Steel, ...

Refer to wikipedia link below for list of steel producing companies:
http://en.wikipedia.org/wiki/List_of_steel_producers

Accolades for BSY govt
Bangalore, Dec 3, DHNS:

The Yeddyurappa Government has received accolades from the global steel entrepreneur Lakshmi N Mittal, who has proposed to set up a steel plant in Karnataka. Mittal, Chairman & CEO of ArcelorMittal, has written to the CM appreciating the Government’s policies to attract investments for the State.

He added he would look forward to meet the CM in the near future.


http://www.deccanherald.com/content/39333/accolades-bsy-govt.html

Steel-production hub planned

Staff Correspondent

20,000 acres of land to be acquired

Cable car facility to come up at Bellary fort

BELLARY: The process of acquiring around 20,000 acres of land in and around Sandur and Hospet taluks in Bellary district for the purpose of developing a major steel-production hub will commence soon, Minister for Tourism and Infrastructure G. Janardhan Reddy has said.

Mr. Reddy, accompanied by Director of Tourism Vishwanath Reddy and Joint Commissioner Sriramaiah, was here to inspect the site where a cable car facility is proposed to be set up. The cable car will enable tourists to visit the Bellary fort. He said the Bellary fort would be developed as a major tourist attraction at an estimated cost of Rs. 25 crore.

The Minister said the 20,000 acres had already been identified and a notification for acquisition would be issued shortly. Efforts were now on to provide other facilities such as drinking water, railway, road and port connectivity for the project.

“Basavaraj Bommai, Minister for Water Resources, has already issued an order allotting 0.5 tmcft of water to the Vijayanagara Area Development Authority which will implement the projects. The Cabinet on Thursday approved a plan to develop the Tadari port.

The Government is also keen on constructing reservoirs with the help of industrialists so that water can be conserved and distributed to farmers,” he said.

The Tourism Department had released Rs. 1.20 crore for silt removal from the Nagala Kere, he added.

The Minister also said that the work on fencing the Sangankal Hills had begun.

http://www.hindu.com/2009/12/05/stories/2009120552750300.htm

NEW DELHI: Karnataka is doing everything to ensure the proposed Rs 30,000-crore investment in the state by steel giant ArcelorMittal, including easy clearances for mining lease and land acquisition by the end of December.

The state has formed a special screening committee to expedite regulatory clearances and has targeted to give these approvals within this month.

"We welcome ArcelorMittal to set up their 6 million tonnes per annum (MTPA) venture here in the state and will clear all necessary approvals in December," Karnataka's Commissioner for Industrial Development Raj Khatri said.

ArcelorMittal has identified Karnataka as a possible location for their project, but is yet to disclose the size of the project in terms of capacity or investment.

"A screening committee, constituted by Chief Minister BS Yeddyurappa for expediting the proposals of the steel giant, has cleared the mining lease application of the ArcelorMittal and we will provide all necessary clearances to it this month," Khatri, who is also the Member Secretary of the Screening Committee, said.

The steel giant had last month short-listed sites in the iron ore-rich Bellary region in north Karnataka for the integrated plant.


Source: ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Karnataka-to-grant-approvals-to-ArcelorMittal-project-this-month/articleshow/5307353.cms) :)

New Delhi, Dec 4 (ANI): Union Government on Friday clarified that it will not initiate mining activities in the Kudremukh area of Karnataka without specific clearance from the Supreme Court.

In written reply to the Rajya Sabha Union Minister of State for Steel A. Sai Pratap also ruled out fixing a time frame for the relaunching of the Kuderemukh Iron Ore Company (KIOCL).

The apex court ordered that no mining activities could take place in the biologically rich Kuduremukh area following its declaration as a National Park.

Pratap informed the House that the KIOCL has written off Rs. 61.65 crores during 2005-06, being the written down value of plant and machinery and building, as on the date of closure of the mine.

The KIOCL is incurring an expenditure of around Rs. 60 crores per annum on Kudremukh site towards salary and other amenities of employees posted at Kudremukh, security of plant and machinery and for maintenance of plant and equipment at Kudremukh.

The mining activities in the Kuduremukh region was opposed by people of the area including tribals and intellectuals.

In the year 2000, the movement was divided and took a violent turn paving way for the entry of Maoists in the region. (ANI)


Source: Track.in (http://trak.in/news/centre-rules-out-revival-of-kudremukh-iron-ore-mines/31386/)

L&T in race for KIOCL's Rs 300 crore order (http://www.business-standard.com/india/news/lt-in-race-for-kiocls-rs-300-crore-order/22/13/366080/)
Re-tender for KIOCL pipes project a board decision (http://www.thehindubusinessline.com/2009/03/17/stories/2009031751140500.htm)
KIOCL likely to post loss in Q4 (http://www.blonnet.com/2009/03/19/stories/2009031950670200.htm)
Suitable rehab package for KIOCL labourers (http://www.deccanherald.com/content/26992/suitable-rehab-package-kiocl-labourers.html)
KIOCL eyes mining revival (http://timesofindia.indiatimes.com/city/mangalore/KIOCL-eyes-mining-revival/articleshow/4894874.cms)
KIOCL plans to set up steel plant (http://www.thehindu.com/2009/01/25/stories/2009012554520400.htm) - 5 MT in Ramanadurga(?), Karnataka
KIOCL issue will be sorted out with CM: Minister (http://timesofindia.indiatimes.com/city/mangalore/KIOCL-issue-will-be-sorted-out-with-CM-Minister/articleshow/4886907.cms)
High-powered panel not in favour of NMDC-KIOCL merger (http://www.business-standard.com/india/news/high-powered-panel-not-in-favournmdc-kiocl-merger/17/00/73829/on)
Roadmap for KIOCL (http://steelguru.com/interview/detail/22/Roadmap_for_KIOCL.html)

KIOCL has Pelletization and high grade Pig Iron (of capacity 2.3 MT) complex at Bykampady, Mangalore. It has a proposal for ductile iron and steel pipe (DISP) project (of capacity 1 MT) near its existing complex.

KIOCL problems started when supreme court ordered closure of mining works at Kudremukha. Now KIOCL does not have its own mine hence purchasing ore from NMDC. No idea why no alternative mine is allocated to KIOCL so far. :(

http://www.kudremukhore.co.in/

The cabinet has also given its nod to the development of Hagari port (Tadadi or Tadri port) at the cost of Rs 3,000 crore through PPP (public private partnership) model, he (Tourism minister G Janardhan Reddy) said. He welcomed the move by Mittal, NMDC, JSW groups' move to acquire land in Bellary for the establishment of steel plants. Steel plants at the total capacity of 33 million tons would be established in Bellary by the Mittal, JSW and other groups.

As minerals are not allowed to be transported to other parts as per the mining norms, many mining companies have shown interest in setting up steel plants in Bellary.


Source: TOI (http://timesofindia.indiatimes.com/city/hubli/Bellary-fort-to-get-facelift/articleshow/5308514.cms)

33 million tons in Bellary district alone? The limit go upto around 50 million tons all over Karnataka.

With steel majors flocking to Karnataka in droves bringing mega project proposals envisaging massive investments, the State is turning Bellary district a Steel City a la Jamshedpur, to roll the red carpet.

Incidentally, Bellary district houses India’s second largest steel plant JSW Steel Limited which boasts of a capacity of 7.8 million tonnes. Official sources told Deccan Herald that a blueprint to make Bellary district — Steel Manufacturing Hub has been put in place. Styled as Vijayanagar Area Development Authority (VADA), sources said a massive investment of Rs 80,000 crore is envisaged for the proposed project. The VADA vision, sources said, is to develop the area as India’s steel hub and key engine of economic growth with world class infrastructure and social facilities to enhancement of quality of life in and around Bellary district.

To benefit 43 villages

Sources said the project, which envisages regional economic prosperity of Rs 50,000 crore annually, will see development of 43 villages notified for the Steel City, with 2,00,000 beneficiaries. The master plan will see orderly and planned development of 582 sq km region in the district. The VADA plan was conceived, sources said, taking into consideration availability of rich iron ore deposits, presence of existing operating and expanding industrial units in the Bellary belt, for planned and integrated development of steel-driven industrial urban complex. Sources said consultants have been identified to convert VADA into India’s best industrial area for steel, mining, township and ancillaries.

The Vijayanagar Area Development Authority, sources said, will be engaged in planning and providing infrastructural support to industrial investments, besides associated urban and social infrastructure in the area.

Apart from acquisition and development of land, the authority, will spearhead setting up of social infrastructures like housing, townships, parks and centres of recreation while being engaged in creating investor friendly environment.

From speedy allotment of land, VADA, sources said, will boast of excellent road, water and rail connectivity given its proximity to VADA Port (Tadari Port). A slew of financial incentives and subsidies will be provided as stipulated by the State and Centre, and single window clearance facilitation for prospective investors, sources said. Incidentally, the government, through a Gazette, has notified Vijayanagara Development Area Authority comprising total area of 580.70 Sq Km (58070.12 hectares), covering 43 villages from Bellary, Hospet and Sandur taluks. Bellary district is renowned for its rich natural resources specially minerals in three talukas of Sandur, Hospet and Bellary.

The annual production of iron ore is over 2.75 to 4.5 million tonne. There are 23 units of large and medium scale industries with investment of Rs 447.76 crore. Besides Sathavahana Ispat Ltd, Kirloskar, other major industries include Mukund Steels, NMDC and Kalyani Steels.


Source: DHNS (http://www.deccanherald.com/content/40220/state-turns-bellary-steel-city.html)

Major steel makers are facing inordinate delays in acquiring land in the east.

It’s Destination Karnataka for steel companies. Having faced inordinate delays in land acquisition in the traditional mineral belt of the east, the companies are now betting big on Karnataka.

Last month, the world’s largest steel maker, ArcelorMittal, sought approval from the Karnataka government for a six-million-tonne steel plant, four years after signing a memorandum of understanding (MoU) with the Jharkhand government for setting up a plant, which hasn’t happened. Earlier this month, Posco, the South Korean steel major, did a recce of the southern state and may look at setting up a 4-6 mt plant.

The proposed projects would be part of at least 35 mt capacity lined up for Karnataka, putting it close behind the mega projects of Jharkhand, Orissa and Chhattisgarh, though its iron ore reserves are half that of each of these states.

NMDC, Essar Steel and Tata Metaliks are looking at the Bellary-Hospet region of Karnataka. JSW Steel will more than double its capacity at Vijaynagar (Bellary) to 16 mt. The additional capacity across the state’s northern districts of Bagalkot, Bellary and Koppal would be in excess of 35 mt, while the iron ore reserves are around 1.2 billion tonnes, about 40 per cent short of what the projects would require.

Currently, around 42 mt of iron ore is mined, of which 30 mt is exported. JSW Steel consumes 12 mt of iron ore a year.

Karnataka has 10 per cent of the country’s haematite (high grade) iron ore resources, compared to 19 per cent in Chhattisgarh, 27 per cent in Jharkhand and 33 per cent in Orissa. Ironically, Karnataka has 73 per cent of total magnetite (low grade) iron ore resources, but in the ecologically and environmentally sensitive region of the Western Ghats.

Says Vinod Nowal, JSW Steel’s director and chief executive officer of the Vijaynagar works: “If the government wants to bring in investors, it will have to change the mining policy, ban exports and reserve the ore for value addition. Also, it should explore whether mining can be done in the Western Ghats.”

The state too had a plan to ban exports, said an investor, and hence the initiative to bring in investors. “The Karnataka government has decided not to issue or renew mining leases if the ore is exported,” said the source. But there was no clarity on existing leases. Thirty million tonnes of exports would deplete about 75 per cent of the region’s reserves.

If the government fails to ban exports, then the resource crunch will hit the projects. The lessons learnt in the past four-five years have taught companies to exercise caution.

Harsh K Jha, managing director, Tata Metaliks, said, “We are not making investments till the state recommendssupply of iron ore.” This is understandable, given that JSW Steel has not been allocated mines in the past 15 years.

Tata Metaliks plans to set up a 3-5 mt plant and moved to Karnataka after facing delays in land acquisition in West Bengal.

The other problem that could impact steel projects was water. “The only source of water is Almati. It’s unlikely to be able to cater to so many plants,” said a source.

However, the silver lining is that unlike their experience in other states, the companies are confident that land will not be a problem. The state government is following the model prescribed in the proposed Land Bill for some projects. The companies will have to get consent from 75 per cent of the land losers and the government would step in for the balance.

After waiting for years in other states, the industry is hoping that Karnataka too does not land in the MoU heap, where projects remain only on paper.


Source: BS (http://www.business-standard.com/india/news/it%5Cs-destination-k%5Ctaka-for-steel-firms/379816/)

^^ Water is the main necessity for the steel plants,whether our Almattii dam is capable of serving the plants is a big question.There is no guarantee on the water supply.Power shortage is the second big thing & our state is in dire crisis.:ohno:

Only now power plants have been approved on a major scale in the North east Karnataka.It may take some 4 years for the power plants to get operational,Steel plants also need nearly 5+ years to be setup and start production so time is there to address the power shortage.

Something must be done to ensure interruption free water supply.

Karnataka can change its policy on banning the export but however in no way it will allow mining in western ghats.:ohno:

BANGALORE: The Karnataka government has approved steel major Posco’s steel plant with an investment of over 32,000 crore rupees, this comes in addition to the approval for Arcelor-Mittal’s 30000 crore rupee project and the state government expects to sign these agreements by June 2010.

Two gas pipeline projects which were also cleared include Reliance owned Relogistics which has come forward to lay the gas pipeline between Chennai-Bangalore and Mangalore. Also Gail will be laying the gas pipeline from Dhabol to Belgaum and Bangalore.

Petroleum major Shell will set up their R & D Centre in Bangalore and Zuari Fertilizers will set up their urea plant in Belgaum.

IT majors Wipro and Tata Elxsi will expand their facilities near the Bangalore International Airport.

More than 70% of these new investments will be made in North Karnataka which will boost economic activity in that region. Posco and Arcelor Mittal are currently surveying the feasibility of the project in the state and the government is leaving no stone unturned to ensure these big ticket investments don’t go away.


Source: UTV (http://www.bloombergutv.com/industry-news/other-industry-news/41761/big-investments-cleared-by-k-taka-govt.html)

Bellary will be a steel hub: Janardhan Reddy

Express News Service
First Published : 05 Jan 2010 04:08:00 AM IST
Last Updated : 05 Jan 2010 07:13:24 AM IST

BELLARY: Bellary would become a future steel hub, said District In-Charge Minister G Janardhan Reddy on Monday inaugurating a ACC cement plant at Kuditini.

He said that world players in the sector such as Tata and ArcelorMittal have shown interest in setting up steel plants in the district. In view of the government’s continued assistance to set up new industries, Bellary would become a leading industrial centre in the state, he said. Managing Director of ACC Ltd Sumit Banerjee spoke on the occasion. MLC Mrityunjaya Jinaga, president of the Bellary Urban Development Authority Gurulingana Gowda, Mayor K Basavaraj and others were present.

http://www.expressbuzz.com/edition/story.aspx?Title=Bellary+will+be+a+steel+hub:+Janardhan+Reddy&artid=bdu6kPy7Y/Y=&SectionID=7GUA38txp3s=&MainSectionID=fyV9T2jIa4A=&SectionName=zkvyRoWGpmWSxZV2TGM5XQ==&SEO=

My only apprehension is from where will they get water for such huge projects???

Source: http://www.deccanherald.com/content/45314/after-state-may-turn-steel.html

After IT, State may turn into steel capital of India
Bangalore, Jan 6, DHNS:

With cash flush global and domestic steel majors coming to Karnataka, the State, thanks to its pro-active investor-friendly policies, may soon upstage others in the country to turn into steel capital of India.


Spearheaded by world number one steel conglomerate ArcelorMittal, world’s fourth largest steel producer Korean chaebol’s Posco India Private Limited, nearly 11 high profile steel proposals received ‘in principle’ clearance on Tuesday.

While Arcelor Mittal India Limited, yet to zero in on its site and has conducted recce of Bagalkot, Bijapur and Bellary belt, for its six million tonne per annum plant, will bring in whopping Rs 30,000 crore investments generating 10,000 jobs once its goes on stream.

Company officials said the integrated steel, pig iron and pellets plant has proposed a 750 mw captive power plant, sought 4,000 acre of land, 360 metric tonne of iron ore for its ambitious project.

Meanwhile, it is learnt that Steel tycoon Lakshmi N Mittal is likely to meet Chief Minister B S Yeddyurappa in New Delhi to announce ArcelorMittal’s project. Company sources told Deccan Herald that the project will be funded through internal accruals. Likewise, Posco India Pvt Ltd, which plans to put up its six million tonne per annum finex steel plant with 400 mw captive power generation at Bellary, will bring in investment of Rs 32,336 crore creating over 20,000 jobs.

Pointing out that their intention currently is exploratory in nature company officials told Deccan Herald that they are focussing on the 12 MTPA green field steel plant near Paradip, Jagatsinghpur District, in Orissa with investment of US$12 billion. Stating they would set up their Karnataka project in two phases, sources said it was incumbent on few conditions being met.

Slew of proposals

Similarly, domestic diversified leader in lighting and steel pipes business Surya Roshni Limited is putting up a 5 MTPA steel plant — styled as Surya Vijayanagar Steels & Power Limited, and may zero in on VADA Region in Bellary or Bagalkot, pumping Rs 20,000 crore and generating employment of 10,000. Besides these biggies, Kolkata-based Adhunik Metaliks Limited has proposed Rs 5,568 crore integrated steel plant in Raichur, with 2.2 MTPA capacity resulting in employment for 2,187.

Other big ticket proposals include Bangalore-based companies like VIC Steels Pvt Ltd’s Rs 6,515 crore 2MTPA integrated steel plant at Torangallu Village in Hospet, Bellary creating 4,000 jobs; VSL Mining Company Ltd 1 MTPA plant in Bellary costing Rs 2,510 crore envisaging creation of 724 jobs. Mineral Enterprises Ltd’s 0.6 MTPA integrated steel plant in Hassan at a cost of Rs 1,993 crore generating 870 jobs. PMB Metaliks’ Rs 1,400 crore 0.50 MTPA integrated steel plant in Tumkur resulting in 1,600 jobs. Krishi Technologies’ mini integrated steel plant in Tumkur with investment of Rs 135 crore to create 2,000 jobs.

Bellary-based RBSSN Ferrous Industries Pvt Ltd’s 0.6 MTPA iron oxide pellets plant at Vardapur in Bellary at a capex of Rs 266.8 crore generating 160 jobs. New Delhi-based Bhadrashree Steel & Power Ltd’s Rs 146.83 crore 2x100 tonnes per day sponge iron plant at Kunikere Village in Koppal district and see jobs for 425. Official sources said once formal MoUs are inked in June during Global Investors’ Meet it will be full speed towards fruition of the intentions.

Good news for NE Karnataka. Now, government has to seriously focus on improving road infrastructure along with rail. Bellary, Gulbarga airport are also important. Hope that farmers issue will be solved amicably.

In what appears to be an undisguised means to woo global steel magnate ArcelorMittal chairman Laxmi N Mittal, the Karnataka Government has notified 300 hectares of mining area in Bellary district.

The State Government’s decision is clearly aimed at rolling out the red carpet to Mittal and a signal that ArcelorMittal must now quickly take steps to set up the six million tonne per annum integrated steel plant with an investment of Rs 30,000 crore in an investor-friendly country. The Government’s move on issuing the notification ahead of crucial meeting with the steel baron is termed as the Chief Minister’s keenness to show his government’s commitment towards the project.

According to the latest gazette notification issued by the Government, land was notified at three locations in the Donimalai range in Sandur taluk of Bellary. This move comes in the wake of representatives of ArcelorMittal already having toured Bagalkot, Bijapur and Bellary to identify a location for their proposed steel plant. The steel baron has sought large tracts of mining area required to produce the targeted steel.

The entire area is government land and is rich in iron ore deposits and land will be allotted to companies which wished to set up captive steels plants in Karnataka, State Heavy Industries Minister Murugesh Nirani told Deccan Herald here.

Mittal, who has met Yeddyurappa recently, is believed to have expressed satisfaction over the prospects for the new venture.

“There are a lot of assurances from the Karnataka Government and there is a clear commitment on its part. This is my first meeting with the Chief Minister. We are very impressed with the kind of support and co-operation we are receiving from them,“ Mittal told reporters here.

ArcelorMittal representatives have inspected two places in Karnataka – Kolhara in Basavana Bagewadi taluk of Bijapur district and Toranagallu in Bellary district – for setting up their proposed plant and the company is likely to finalise one of them soon.

As there is no government land available at these two places, the Government promised to allot 4,000 acres of private land, mostly farmland, as the site for the proposed plant.

“The government will provide best prices to farmers in consultation with company officials and the compensation will be higher than the market rate” Nirani said. ArcelorMittal has also promised to provide job to one person from each of the displaced families. However, there was no problem of rehabilitation in Kolhara and Toranagallu as no human settlement exists there.

Besides land, the Yeddyurappa government is also willing to provide ArcelorMittal 40 MGD water which will be drawn either from Alamatti or Tungabhdara reservoir in accordance with the demands of the company wishes to set up a captive power plant with a capacity of 750 MW.

Yeddyurappa, who held talks with Mittal on Thursday, promised to clear the project in 90 days of its submission. After the meeting, the Chief Minister told reporters that “providing land for the project will not be a problem as the people of the state have already agreed to it.”

Mittal, whose ArcelorMittal controls over 10 per cent of global steel production, said good progress would be made in the next two months. “After that we will decide on signing of the MoU”.


Source: DHNS (http://www.deccanherald.com/content/45606/wooing-mittal-govt-notifies-bellary.html)


Lakshmi for Karnataka (http://www.dnaindia.com/bangalore/report_lakshmi-forkarnataka_1332227)

Chief minister Yeddyurappa, however, said problems such as land acquisition would be dealt with by the new rehabilitation policy. “Land will be valued at more than market price, we will only acquire land with consent, and at least one member of each oustee family will be provided employment.”

Yeddyurappa said Mittal would be promoting 20-30 companies downstream, as part of the steel project. “We have cleared the project on January 5th and two sites have got a preliminary nod by the company. These sites are Hospet in Bellary district and a site in Bijapur district,” he added.

Mittal, however, refused to commit to the Karnataka project, apparently disheartened by his experience in other projects in other states. Referring to his plans in Karnataka, he said: “This is a work in progress. We have received good co-operation from them. This is my first meeting with the chief ministers and if this continues then we can have an MoU in two months.”

Mittal has also been invited as chief guest for the state government-sponsored Global Investors Meet to be held in June this year.



LNM says India hasn't been able to handle surge in big investments (http://economictimes.indiatimes.com/articleshow/5422217.cms)

Gold mineral found in many districts of Karnataka

BANGALORE, January 7, 2010: With prices of the yellow metal skyrocketing much so often, the State owned Hutti Gold Mines Company Ltd (HGML), the only gold extraction company in the country, has discovered availability of gold in Davangere, Tumkur, Gulbarga, Chitrdurga Shimoga and Dharwad districts.

The company is contemplating to sign joint ventures with National Mineral Development Corporation, Indo-Australian Company, Australian firm Cluff, and Deccan Mines to commence mining in districts where gold minerals are found. Now, gold mining is confined only to Hutti in Raichur district of Karnataka.

With just two months to complete the current financial year, it has set a target of producing 2,578 kg gold in 2009-10, with an average 4.11 gram of gold per tonne of ore. The company has produced 2420.33 kg gold in 2008-09.

The HGML has decided to invest Rs. 352.11 crore in the next five yeas on various expansion plans. The company, which is producing 7 to 8 kg of gold daily, has set a target to earn net profit of Rs. 98.21 crore in the current fiscal year against Rs. 93.05 crore in 2008-09. The companys total turnover in 2009-10 is expected to reach Rs. 319.78 crore against Rs. 316.02 crore in the previous year.

Minister for Excise M P Renukacharya, who is also the Chairman of the HGML, told reporters that the company has been extracting 4.11 gram of gold per tonne of ore against with an average recovery of 4.24 grams a tonne of ore in 2008-09.

The existing capacity of the ore milling unit is expected to be expanded to 2,000 tonnes per day when the ongoing work on the new milling plant (Snag Ball Mill) would be completed. As of now, about 90 per cent of the building work on the plant and the assembling of the milling plant have been completed.

A sum of Rs 14.85 crore would be spent on Ooti Gold Unit (open pit mine) development, Rs. 25 crore on ore milling unit.

The Minister said the HGML has earmarked Rs.12.09 crore to take up gold mining in Chitradurga, Davangere and Shimoga districts where the preliminary survey work has already been completed.

http://mangalorean.com/news.php?newstype=local&newsid=163584

Yellow steel found that is a great news,Huti can now think of exporting again. :happy:

Surya Vijayanagar plans steel plant in Karnataka

Nagesh Prabhu

Bangalore, Jan. 9

Surya Vijayanagar Steels and Power Ltd, a subsidiary of Surya Roshni, plans to invest Rs 20,000 crore to establish a five million tonnes per annum (mtpa) integrated steel plant, along with a 500 MW captive power plant in Bagalkot district in north Karnataka.

The group, which is in the steel and lighting business for the last 35 years, would set up the plant on 4,000 acres in Bagalkot district, which has several historical monuments. The company would identify the land and it would be acquired by the Karnataka Industrial Areas Development Board (KIADB), a State government undertaking. The exact location has not yet been finalised, according to officials in the Industries Department.

Jobs for 10,000

The project, which was cleared by the State High-Level Clearance Committee (SHLCC) chaired by the Chief Minister, Mr B.S. Yeddyurappa, would provide employment to 10,000 persons. The company has a turnover of Rs 1,700 crore. It will invest Rs 4,120 crore on land and building, Rs 13,880 crore on plant and machinery, Rs 1,000 crore on working capital margin and Rs 1,000 crore as contingency.

The company, which has applied for the mining lease, would mobilise Rs 6,700 crore from the promoters' contribution and raise term loans of Rs 13,300 crore.

The proposed steel plant would get 15 MGD water from the Ghatapraba and Krishna rivers subject to the approval of the Water Resources Department. The SHLCC has advised the promoters to adopt rain harvesting and to adopt water conservation facilities.

Till the establishment of the 500 MW power plant by the company, the Gulbarga Electricity Supply Company (GESCOM) would supply 90 MW of power. The officials in the Industries Department said that based on the request of the company, the extra concessions could be considered.

http://www.thehindubusinessline.com/2010/01/09/stories/2010010952531700.htm

Water is a major hindrance.

http://www.thehindubusinessline.com/2010/01/09/images/2010010953180101.jpg

* No formula yet for arriving at price for land for ArecelorMittal project

The Karnataka Government will take the "consent value" based on consensus between farmers and the Government for arriving at the price for acquiring land for ArcelorMittal's Rs 30,000-crore steel project in the State.

A top Karnataka official told Business Line that the consent value will be decided by a committee headed by the Deputy Commissioner of the district where the project will be based.

No short-changing farmers

The Committee will consist of farmers' representatives and other Government officials.

"We will not short-change the farmers and care will be taken not to hurt their interests," Mr V. P. Baligar, State's Principal Secretary for Commerce and Industries, said.

The world's largest steel-maker has sought 4,000 acres for setting up a steel project in the State.

The Government is willing to extend to ArcelorMittal more tax concessions than those stated in the State's industrial policy. But sources said the steel-maker has not approached the State Government for more concessions.

Mr Baligar said there is enough dry land in Bellary and Bijapur, the districts shortlisted for setting up the project. He said the Government does not have a fixed formula for arriving at the price for buying land from farmers.

"We will go by consensus on this issue," he said.

ArecelorMittal is expected to decide on the site by the end of this month, Mr Baligar said.

The delay in land acquisition has been a major hurdle for the world's largest steel maker for setting up its $20-billion steel projects in Orissa and Jharkhand.

Once ArcelorMittal selects the site for setting up the 6-million-tonne steel project, the Government will fast-track the approval process, Mr Baligar said.

All the approvals will be given within 90 days as promised by the Chief Minister, Mr B.S. Yeddyurappa, to ArcelorMittal's Chairman, Mr Lakshmi Mittal. The land acquisition might take some more time. The MoU for the project will be signed during the Global Investors' Meet in June in Bangalore.

Sources in the Government said ArcelorMittal's officials have carried out technical evaluation at Kudithini village, 25 km from Bellary, and at Mulwad village in Bijapur - the two possible sites for the project.

Resources

While Bellary is rich in iron ore, Bijapur has enough water resources as the Almatti Dam is located there. Kudithini is also close to the 500-MW Bellary power project.

The State Government is also grappling with some of the land acquisition issues concerning an airport and a power project.

Sources in the Government said the land acquisition for setting up a greenfield airport on 900 acres in Bellary has run into hurdles because some farmers are not willing to part with their fertile land and have apparently filed a case in the district court against the acquisition. They have asked the Government to drop the project itself or set up the airport on dry land.

In Bijapur, some farmers have accused the Government of not honouring its commitment of giving double the market rate for their land for a power project.


Source: The Hindu Business Line (http://www.thehindubusinessline.com/2010/01/09/stories/2010010953180101.htm)

KOLKATA: Arcelor Mittal is hoping to finalise a site for its proposed 6-million tonne (mt) steel project in Karnataka shortly as the company is
tipped to ink a memorandum of understanding (MoU) with the Karnataka government in three months.

The company executives are learnt to have shortlised a few sites for its Rs 30,000-crore ($6.6-billion ) project after visiting potential locations in Bellary, Bagalkot and Bijapur districts.

Bellary, incidentally, houses Karnataka’s iron ore reserves, a key steelmaking input. “At present , technical feasibility studies are being undertaken on these shortlited sites. Based on the report, the company hopes to firm up the location in the next 2-to-3 months,” a company source familiar with the matter said.

“The key to site selection would be accessibility of raw material and water. Hence any potental site in and around the Almatti dam is likely to find favour,” the source added.

ArcelorMittal, it is learnt, is satisfied with the swift progress in Karnataka. “Between November and now, we have moved quite a distance with regard to our plans in Karnataka. Within the company, the internal feeling is that ArcelorMittal may break ground in Karnataka much earlier than in Orissa and Jharkhand ,” the source pointed out.

An official close to the developments conceded that it was quite uncharacteristic of Mr Mittal to give vent to his disappointment. He is committed to setting up steel projects in India. But his frustration stems from the inordinate delays to the proposed $22-billion worth projects in Jharkhand and Orissa. Which is why, he is now pinning hopes on Karnataka.

The systems and procedures with regard to infrastructure in the state are encouraging and the Karnataka government too has reacted fast to the company’s proposal.

For instance, ArcelorMittal will require 4,000 acres for its project. The state’s nodal agency for infrastructure development, Karnataka Industrial Areas Development Board (KIADB), will acquire the land on behalf of the company, which is in contrast to the situation in Jharkhand where the company is facing stiff resistance over the land acquisition.


Sourcce: ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Arcelor-Mittals-Karnataka-project-on-fast-track/articleshow/5431819.cms)

http://www.thehindubusinessline.com/2010/01/09/stories/2010010952531700.htm

Water is a major hindrance.

Water wont be a major hindrance. Why can't they establish Sea water desalination plants along west coast like chennai is doing now.

Going by their investements like 30,000 crores, sea water desalination plant wont cost more than 1,000 crores and can supply 100MLD. They should not exploit rivers and river belts. :ohno:

Govt. should make it compulsory for these steel plants to establish desal plants. This is the least they can do for the people of Karnataka.

Water wont be a major hindrance. Why can't they establish Sea water desalination plants along west coast like chennai is doing now.

Going by their investements like 30,000 crores, sea water desalination plant wont cost more than 1,000 crores and can supply 100MLD. They should not exploit rivers and river belts. :ohno:

Govt. should make it compulsory for these steel plants to establish desal plants. This is the least they can do for the people of Karnataka.

First of all Kewl batty,Coastal Karnataka is bio diverse rich and densely forested/Western Ghats it is impossible to think of Industries there.

Iron ore rich belt extends from Bellary region to Bijapur area which are far away from the coast.

Second of all 90% of low grade iron ore in India is trapped in the forested region of coastal Karnataka.Which is impossible to extract that.

Mining depts are thinking of an alternative ways of extraction if need arises without disturbing the ecology I am not sure of how that can be done.Best left to the Mining Engineers/experts.

^^ I see. I'm against deforestation. They shouldn't move the plants to coastal areas. But they can put the desal plants alone along the coast where ever possible and put pipelines for even 700km to reach the steel plants. Thats a huge task but worth it.

^^ Good suggestion Kewl Batty.

Atleast KIOCL steel plant proposed in Mangalore can use desalinated water. Even for other petroleum and chemical industries coming up in Mangalore SEZ they have the option of using desalinated water. For the time being MSEZ is planning to use treated waste water of the city.

^^ Good suggestion Kewl Batty.

Atleast KIOCL steel plant proposed in Mangalore can use desalinated water. Even for other petroleum and chemical industries coming up in Mangalore SEZ they have the option of using desalinated water. For the time being MSEZ is planning to use treated waste water of the city.

KIOCL steel plant in Mangalore.??? Krishnamoorthy I was unaware of that,so Mangalore apart from its chemical industries will play host to Steel industries.??? Great Mangalore keep going. :happy:

^^ First of all Karnataka state government has to allocate iron mines to KIOCL. The project is listed in first post of this thread.

Bangalore: Karnataka Chief Minister BS Yeddyurappa on Monday set a three-month deadline to his officials to give all clearances to the proposed mega steel plant being planned by ArcelorMittal in Bagalkot with an investment of Rs 30,000 crore.

Speaking to reporters here today, Yeddyurappa said he discussed the project details today with Chief Secretary SV Ranganath and asked him to ensure that all the required clearances are granted within three months to the world's largest steel company.

The steel giant's chief Lakshmi N Mittal has himself appreciated the speed with which the state acted on approving the project when the two met in New Delhi last week, said Yeddyurappa.

"There are a lot of assurances from Karnataka, and there is also a clear commitment from them. We are very impressed with the kind of support and cooperation we are receiving from the state administration," Mittal had told the press after his meeting with Yeddyurappa.

ArcelorMittal had signed MoUs with Orissa and Jharkhand as early as 2005 for setting up identical 12mtpa plants in the two states involving Rs one lakh crore, but the projects are yet to take off due to land acquisition trouble, among others.

"Really not satisfied" was how Mittal had reacted when asked about the progress of the Jharkhand and Orissa projects.


Source: Zee News (http://www.zeenews.com/news594950.html)

So, Bagalakote will be Bhagyadakote and Ukkinakote of Karnataka Steel Corridor!

Source: Zee News (http://www.zeenews.com/news594950.html)

So, Bagalakote will be Bhagyadakote and Ukkinakote of Karnataka Steel Corridor!

Krishnamoorthy, when did Arcelor zero in on Bagalkote??They were shown land at Kuduthini in Bellary and Mulwad in Bijapur,when did they decide on Bagalkote and the company officials said it will take them three months to decide as the company is still evaluating and analysing the feasibility of the project.

Krishnamoorthy, when did Arcelor zero in on Bagalkote??They were shown land at Kuduthini in Bellary and Mulwad in Bijapur,when did they decide on Bagalkote and the company officials said it will take them three months to decide as the company is still evaluating and analysing the feasibility of the project.

ArcelorMittal executives have visted three sites in Bellary, Bijapura and Bagalakote districts. Read post #32 instead of post #31. They might have favoured Bagalakote as it is close to Alamatti dam. Bagalakote is much closer to industrially developed regions of Belgaum and Hubballi-Dharwada.

Mittal has a plan for even downstream industries of steel. Hope that Bagalakote-Gadaga-Dharwada-Belgaum region becomes a hub of industries like Automobile, Machinery, Appliances, etc.

Mumbai: After global giants ArcelorMittal and Posco, domestic major Tata Steel has set its sights on Karnataka.

“The plant will come up in Haveri district with an investment of Rs 6,100 crore. The project was cleared in September 2009 and the state government has taken all the steps for its smooth implementation,” a senior official in the Karnataka industries and commerce department said.

Sanjay Choudhry, spokesperson for Tata Steel, concurred. “The empowered committee has given its nod for the land,” Choudhry said.

Another company official said Tata Steel’s priority is the Orissa project. In Orissa, the steelmaker is building the plant on 2,000 acres.

Karnataka government sources said the state is also planning to set up a steel complex in Bellary district on 50,000 acres.

It will have shared infrastructure for all steel plants in the vicinity.

“This will include common railway lines, water connections and iron ore mines,” said an official close to the development.


Source: DNA (http://www.dnaindia.com/money/report_tata-metaliks-will-also-set-up-karnataka-plant_1334122)

A steel plant right on G-Q corridor.

New Delhi: On the heels of Karnataka clearing the ArcelorMittal and Posco projects worth Rs 62,300 crore in a very short while, the Government-owned NMDC is planning to appoint a consultant by the month-end to speed up its Rs 20,000-crore project in the state.

"NMDC is in talks with a few consultants and would finalise one by the month-end. The consultant would scout and finalise a site in Karnataka for the steel project," a senior NMDC official said here today.

The development comes a week after Karnataka cleared one proposal each from ArcelorMittal and Posco, within a month and promised them all necessary clearance within three months.

The country's largest miner has been pursuing its plan to diversify into steel making. The proposed venture in Karnataka, which the company estimated to be around Rs 20,000 crore, would be its second such project after the Rs 13,000-crore steel plant in Chhattisgarh.

Significantly, unlike Posco and ArcelorMittal, the Central PSU has not met with any major hurdles yet.

As per the MoU signed with Karnataka early last year, NMDC would set up 5mtpa steel plant. The firm intends to set up the project through a joint venture and would start looking for a partner, domestic or global firm, the source said.

"NMDC will initially set up a 2mtpa plant in Karnataka in a joint venture and ultimately scale up the capacity to 5mtpa," the source added.


Source: Zee News (http://www.zeenews.com/news595625.html)/PTI

Karwar: Minister for Fisheries Anand Asnotikar, has said that the Mittal company, which proposed to set up a steel plant in the state, was keen on developing Tadadi near Gokarna as a major port.

He told reporter on Tuesday that a high-level team of the company visited Tadadi and Madangeri for an inspection of the site on Tuesday.

He said nearly 1,800 acres of land was in possession of Karnataka Industrial Area Development Board at Madangeri, Out of the, 600 acres of land had been earmarked to establish a gas-based power plant by the government.

The remaining 1,200 acres of land could be utilized to develop Tadadi port.

Asnotikar said that the team also visited Karwar port and was much impressed by the natural advantage that it enjoyed.

He said that the team members, during an interaction with him expressed the desire of the company to develop Karwar port too.


Source: SahilOnline (http://www.sahilonline.org/english/news.php?catID=coastalnews&nid=7213&viewed=0)

What about Hubli-Ankola rail connectivity?

Mumbai, Hyderabad: NMDC Ltd, in which the government is selling 8.38% stake through a follow-on public offer, is in talks with ArcelorMittal, the world’s largest steelmaker, for a possible joint venture, two sources familiar with the development told DNA.

“Yes, ArcelorMittal is interested in the project and talks at some level are currently on,” said one of them.

An ArcelorMittal spokesperson denied there are talks.

Rana Som, chairman and managing director of NMDC, said, “There is no such plan at this point in time.”

“But we have already announced that we will go with a partner for our project,” Som told DNA Money on Saturday.


Read full news on DNA (http://www.dnaindia.com/money/report_mittal-nmdc-talk-karnataka-plant_1335929).

NMDC scales 52-week high on plan to strike JV for steel plant (http://www.bloombergutv.com/stock-market/stocks/commentary/365840/nmdc-scales-52-week-high-on-plan-to-strike-jv-for-steel-plant.html)

Bellary: ArcelorMittal Plant to Come Up at Kudithini Village

Daijiworld Media Network – Bellary (SP)

Bellary, Jan 22: ArcelorMittal, the global giant in steel manufacture, has chosen Kudithini village in the district to set up its multi-crore steel plant.

The company officials, who met the officials of the state government on Thursday January 21, said that they have selected this site on the basis of its nearness to the ore mines of Bellary and also the Tungabhadra reservoir.

The 4,000 acres of land the company needs at the village, is located in the agricultural lands, where only a single crop is raised every year. The state government is planning to acquire the land by offering highest possible price, sources in the government disclosed.

It may be recalled that Lakshmi N Mittal, who owns the company, had told the state Chief Minister, B S Yeddyurappa, that the company will invest a sum of Rs 30,000 crore in Karnataka.

Daijiworld (http://www.daijiworld.com/news/news_disp.asp?n_id=71162&n_tit=Bellary%3A+ArcelorMittal+Plant+to+Come+Up+at+Kudithini+Village)

Gold deposits confirmed at a village near Bagepalli

Special Correspondent

CHICKABALLAPUR: With laboratory analysis reports indicating the presence of gold in the soil samples collected from Kapuchinnapalli village in Bagepalli taluk of Chickaballapur district, the Department of Mines and Geology has taken up a study in this regard.

After the preliminary soil sample analysis conducted at the Department of Mines and Geology laboratory in Bangalore confirmed the presence of gold in the soil, the samples have been sent for further tests to the Indian Bureau of Mines (IBM) and the Hutti Gold Mines Ltd. in Raichur district.

Sources in the Department of Mines and Geology told The Hindu here on Monday that the gold content was found in the soil samples collected from the land bearing survey number 141/4 at Kapuchinnapalli, situated six km north-east of Bagepalli on Guloor Road. The said land belongs to Byra Reddy, a marginal farmer.

In all, 18 soil samples collected from Kapuchinnapalli and surrounding areas had been sent for a study after conducting preliminary analysis in Chickaballapur.

The Department of Mines and Geology was ascertaining the origin and the extent of the gold available in the particular belt. Only a detailed study would confirm whether it would be economically viable to take up gold mining in the area, the sources said.

The routine soil samples analysis conducted by the department in Chickaballapur district had led to the discovery. Besides, the land owner Byra Reddy himself had brought the soil samples to the department for testing as he found that the physical features of the soil was some what unusual.

Kapuchinnapalli is situated around 120 km north of Kolar Gold Fields (KGF). Bharat Gold Mines Ltd, which was operating the Asia’s largest and deepest gold mines at KGF, closed operations in April 2000.

The Hindu (http://www.hindu.com/2010/01/23/stories/2010012352040500.htm)

National Mineral Development Corporation (NMDC) and steel major Tata Steel, on Friday, signed a MoU for forming one or more than one joint ventures to explore opportunities for acquiring and developing mines in India and abroad besides venturing into setting up of greenfield steel plant in India.

Briefing reporters, NMDC Managing Director Rana Som, said a joint working group has been set up to decide within a couple of months on the details of areas of joint business and mining exploration. The report is expected within two months.

On details of equity structure of new joint venture, Som said since there could be one or more than one joint ventures with Tata Steel, total investment and pattern of equity structure would be worked out once the group submits its report.

Equal stakes

It is likely that the partners would have equal stakes in those companies. A joint steering group is also to be formed to monitor the progress and operation of the joint venture.

“Both are cash-rich companies and the joint venture will result in unprecedented synergy,” he pointed out. “We’re setting up a demonstration plant in Karanataka, showcasing new mining technology developed at our R & D centre.The joint venture can utilise it for new areas,” he added.

Asked whether the proposed joint venture would consider setting up an integrated steel plant in Karnataka which is a virgin territory,Tata Steel Managing Director H M Nerurkar said “We can think of it.” Som, however, sounded extremely positive on the idea.

Knowledge sharing

While Tata Steel will bring in its expertise to produce steel, NMDC would contribute by way of sharing knowledge in use of low-grade iron ores, Nerurkar said. Tata Steel has major plans of expansion within the country and has been looking at enhancing its iron ore resources and developing technology for lower grades of iron ore in India. NMDC plans to look beyond its iron ore business and establish a presence in steel making to add value to its mining operations.

NMDC, largest iron ore producer in Asia and 8th largest in the world, is diversifying into manufacturing of steel and pellets.

The central PSU which is setting up an integrated steel plant in Chattisgarh, plans to act on a three-pronged strategy by entering into wind and solar energy besides fertiliser.


Source: DHNS (http://www.deccanherald.com/content/48296/nmdc-amp-tata-steel-form.html)

NMDC finds traces of diamond deposits in Gulbarga district (http://beta.thehindu.com/business/article83125.ece)

On the other hand, Essar, which entered into a memorandum of understanding with the Karnataka government last year for setting up a greenfield steel plant in the southern state, is yet to finalise the details of the proposed project.

According to Amin, the project plans were still at a discussion stage. The company is looking for iron ore mines and the project details will be finalised only after the raw material sources are secured.


Source: BS (http://www.business-standard.com/india/news/essar-steel%5Cs-hazira-expansion-by-year-end/383832/)

Bangalore: A team of officials from South Korean steel major Posco would visit Karnataka in mid-February to appraise the land parcels available in the state in order to set up their proposed integrated steel plant, a top Karnataka government official said.

Talking to FE on the sidelines of a CII event on corporate social responsibility in Bangalore on Thursday, principal secretary of commerce and industries department of Karnataka VP Baligar said, “Posco requires approximately 5,000 acres but has not yet decided on the location.”

Posco is interested in North Karnataka like Bellary, Koppal and Bijapur. “We have already notified 4,000 acres in Bijapur. Another 4,000 acres would be notified in Bellary region very soon,” he said.

Earlier this month, the state government formally cleared the steel plant proposals of Posco and ArcelorMittal, the world’s largest steel maker. Posco would pump in Rs 32,300 crore to establish a steel manufacturing facility to produce 6 million tonne per annum (mtpa) while ArcelorMittal would invest Rs 30,000 crore for 6-mtpa capacity plant in Karnataka.

The land notified in Bijapur is free to be allotted to any company, either to Posco or to ArcelorMittal, he said. However, he indicated that ArcelorMittal, which requires 4,000 acres, prefers to set up its plant in Bellary that is rich in iron ore deposits. He said, “ArecelorMittal already asked 4,000 acres there (in Bellary). If Posco also requires land in the same area, we will issue another notification.”

According to sources, the government had earlier notified the lands in Bijapur, expecting that ArcelorMittal would set up its project in Bijapur. The government was also ready to allocate water from the Upper Krishna project. However, ArcelorMittal is more keen on getting lands in iron ore-rich Bellary region, where Sajjan Jindal-lead JSW Steel is already operating an integrating steel plant.


Source: FE (http://www.financialexpress.com/news/Posco-team-to-visit-K-taka-in-Feb--ArcelorMittal-eyes-land-in-Bellary/572688/)

POSCO team coming to scout for location

New Delhi, Jan 29, DHNS:The South Korean steel giant Posco is sending a technical team to Karnataka next month to scout for a suitable location to set up a Rs 32,000-crore plant.

Disclosing this to reporters, Karnataka Industry Minister Murugesh Nirani said the representatives of the company have already held talks with the State government.

The company has proposed to establish a steel plant with a capacity to produce six million tonnes of steel per annum. The state government has, in principle, given approval for the mega project. Another global steel major ArcelorMittal proposes to set up a plant at Kudthini in Bellary. The State government has already sent a team of officials from Karnataka Industrial Areas Development Board (KIADB), the State’s nodal agency for facilitating infrastructure facility to industries, to Bellary to inspect the areas.

Arcelor’s choice

Company representatives recently met government officials in Bangalore and informed them that considering the proximity of mining areas in Bellary as well as the Tungabhadra reservoir, Arcelor decided to set up the plant at Kuduthini. Earlier, the company officials conducted techno-feasibility studies at Kudthini in Bellary and Kolhara in the Basavana Bagewadi taluk of Bijapur district.

“The 4,000 acres sought by the company in Kuduthini is a private farmland. Only single crop is being grown there,” the minister said. However, there is no displacement of families as there is no human settlement in these lands. The company has promised to provide job to one person to each family which may lose land for the project,” said the minister.

The company has claimed that the project can generate 10,000 jobs. The state government has promised to provide water from either the Alamatti or Tungabhadra Reservoirs.

DHNS (http://www.deccanherald.com/content/49706/posco-team-coming-scout-location.html)

BANGALORE: The Rs 50,000-crore steel plant project proposed by ArcelorMittal in Karnataka has run into rough weather with the government unable to identify the project site due to problems in acquiring land.

The government is finding it increasingly difficult to ensure dedicated power and water supply for the 6-million tonne plant.

Though sources in the Commerce and Industries Department say that the process of identifying the required 4,000 acres has started, they admit that it is a difficult task.

“The problem is not with the compensation. We are ready to offer prevailing market rates. But farmers are not willing to part with their land,” sources in the Karnataka Industrial Area Development Board (KIADB), the nodal agency for land acquisition in the state for industrial projects, said.

CM B S Yeddyurappa, who had met ArcelorMittal CEO L N Mittal in Delhi earlier this month, had stated that all the formalities would be completed within three months. However, it appears to be a daunting task.

ArcelorMittal’s plans to set up steel plants in Jharkhand and Orissa have also not materialised due to resistance from the local people over land acquisition.

It is for these reasons that Mittal is said to have restrained from signing a MoU with the state government.

Later, the state government promised to put everything in place by notifying the land, water source and power supply before the MoU is inked.

The government had offered land for the project in eight locations with rich iron ore deposits across North Karnataka. It had short-listed three sites in Bellary, Koppal and Raichur districts in concurrence with the steel giant.

Preliminary discussions with the farmers have not been favourable as small and medium farmers, for whom agriculture is the only source of income, own a significant portion of land in the areas identified for the project.

“Negotiating with such farmers takes time and is difficult. We are looking at alternative sites in the neighbouring Bagalkot district,” the sources pointed out.

Besides, the mood of the farming community in the state is against land acquisition.

In the last one month, farmers’ agitations against acquisition of agricultural land have intensified. At least two projects — Hankon thermal power project and the proposed layout on the outskirts of Davanagere — had to be called off due to a farmers’ movement. In Bellary, farmers are protesting the acquisition of land for proposed airport.

A mega project of the kind proposed by ArcelorMittal requires abundant water.

Alamatti dam, built across Krishna river in Bagalkot, is the only source. But allocation of water for irrigation from the dam is still not finalised.

The dam supplies water for irrigation to six districts in North Karnataka.

The government has not yet finalised these issues, sources in the state’s Major Irrigation Ministry said


Source: EB (http://www.expressbuzz.com/edition/story.aspx?Title=Land+for+ArcelorMittal:+Govt+hits+rough+patch&artid=isxSB/kCaf8=&SectionID=7GUA38txp3s=&MainSectionID=7GUA38txp3s=&SEO=&SectionName=zkvyRoWGpmWSxZV2TGM5XQ==)

^^ I had anticipated -water as a major problem and also the land acquisition.

Karnataka-based KIOCL (formerly Kudremukh Iron Ore Company Ltd), a wholly state-owned enterprise operating under the Union steel ministry with Miniratna status, was struggling to run its pellet plant after shutting its captive iron ore mine covering 4,065 hectares in the Kudremukh belt in Karnataka following a Supreme Court directive in 2005. Since then, KIOCL, once the largest iron ore exporter in the country, has started procuring the material from the outside market. Now the company has taken new steps to diversify its business while also acquiring new iron ore mines in different states to ensure the cheap supply of raw material to its pellet plant. KIOCL has also taken a few steps to bring down the cost of production at its pellet and blast furnace plants through expansion programmes. In an interview to FE’s Jaishankar Jayaramiah, KIOCL’s chairman & managing director K Ranganath discusses the company’s future plans. Excerpts:

How are you managing raw material supply after shutting your captive iron ore mines in Karnataka following the Supreme Court order?

It’s little difficult to run our pellet production facility as it requires iron ore as a major raw material. The input cost increased as we were forced to procure the material from outside after closing our captive mines in 2005. We are procuring iron ore through long-term contract with NMDC, but still the prices are higher compared with ore supplied from our own captive mines earlier. Currently, NMDC supplies iron ore at around $50 per tonne against the spot market price of $95-118. But if we have captive mines, ore can be availed at $15 per tonne.

What steps have you taken to come out of this crisis?

We have applied to the Karnataka government to allot iron ore sites as our major plants—pellet and pig iron production facilities—are operating in the state. We have also applied to the governments of Orissa, Chhattisgarh and Rajasthan for mine allotment. The Karnataka government has recommended iron ore mining lease in an area covering 116 hectares in Chikkanayakanahalli taluk in Tumkur district. The Union government has granted us prior approval of mining lease and we also have the environment clearance. We are now waiting for the forest clearance. The Chikkanayakanahalli mining area has around 10 million tonnes of iron ore deposits. If we are through with this project, iron ore mined from here would meet the requirements of our manufacturing plants for another three years. In addition, Karnataka government has given formal approval to mine in the Ramanaduraga region that contains around 150 million tonnes of iron ore. But the state government has not given the final approval to mine in the region because a petition regarding mine allotments in this area is pending before the Supreme Court for disposal.

Are you looking to diversify the company’s business?

The company has decided to establish a spun pipe plant to use the hot metal running into blast furnace unit (BFU) that currently produces pig iron. Currently, we are running into losses by producing pig-iron, as the cost of the basic raw material—coke—has increased. We are incurring the loss because the current market price for pig-iron is a meagre Rs 18,000 per tonne against the coke price of Rs 21,000 per tonne. The current capacity of BFU is 2 lakh tonnes. A part of hot metal produced for BFU could be diverted to manufacture spun pipes. The spun pipe manufacturing plant will have a capacity of 1 lakh tonne per annum. Pipe manufacturing would be more lucrative than producing pig-iron. This project would require an investment of Rs 300 crore.

What are your other plant-level expansion plans?

The company has decided to set up a coke oven plant. This is to convert coal into coke. Instead of buying coke from the outside market at a high price, we can buy locally available coal and convert it into coke for our usage at a lower cost. This would bring down the cost of coke to $150 per tonne. Moreover, we don’t have our own sidings. Our pig-iron customers are located in the hinterlands of Tamil Nadu and Gujarat and a small quantity of pig-iron could be moved through railings. So, we are planning to construct a railway line between Toukur and our plant in Mangalore. A detailed project report is in progress and Konkan Railway is attending to the project. Besides, the company has plans to instal a pressure filter plant to reduce moisture in the pellets. While reducing moisture, this process will add strength to the pellet, enabling us to fetch a higher price in the international market. For all these expansion programmes we have lined up and the new spun pipe plant, the company would require an investment of Rs 1,000 crore. We have enough internal resources to meet this investment need—the company currently has a cash reserve of Rs 1,200.

KIOCL has proposed to set up a steel plant. What is the status of that?

Yes. We have plans to set up an integrated steel plant in Karnataka. The plant would be a joint venture with another partner. The cost of the project would be around Rs 8,000 crore. In the first phase, the integrated steel plant will have an annual capacity of 2.5 million tonnes of steel, which could be expanded to 5 million tonnes in the second phase. We are working out the project to expand the manufacturing capacity in the proposed plant to up to 15 million tonnes. We are making progress in identifying partners who have the expertise in steel manufacturing. After finalising partners and other parameters of the project, we will apply to the government to allot captive iron ore mines for the steel plant, as we will be adding value to the iron ore mined from the state.

Last year, you shut your pellet plant for some period. Why?

Yes, we closed the pellet plant operations during different periods in the last year due to a decline in global pellet prices. In fact, the pellet plant accounts for 90% of the total revenue of KIOCL. The company exports 50% of the pellet manufactured in the plant while the remainder has been supplied to the domestic market. Pellet prices, which touched its peak of $245 per tonne in September 2008, tumbled to $54 in December 2008. Generally, we used to produce 2.65 million tonnes of pellet against the plant’s total capacity of 3.5 million tonnes. Due to recession, the pellet production declined to 1.31 million tonnes in 2008-09. Hence, we halted operations for some time. Now, since December 2009, the pellet plant is continuously running as prices in the international market are moving up. Currently, pellet prices are hovering at around $118 and it may stabilise at $135 levels in the next four to five months.


Source: FE (http://www.financialexpress.com/news/we-plan-to-set-up-an-integrated-steel-plant-in-karnataka/573722/3)

State-run KIOCL has shortlisted an equity partner for its proposed joint venture for setting up integrated steel plant in Karnataka at an estimated investment of Rs 8,000 crore, a top company official said today.

"Due diligence is taking place on that. Consultant is going through the papers," KIOCL Chairman and Managing Director K Ranganath told PTI here.

He expects the joint venture agreement to be signed in a month or two. "We are looking for (setting up) a plant within Karnataka".

"We will start with 1.5 million tonnes (capacity annually in the proposed plant) expandable to three milllion ... Five million and later to 15 million tonnes".

On the extent of equity participation by the joint venture partner, Ranganath said: "I do not want anything less than 26 per cent".

He said he is in discussion with CMD of certain coal fields in Orissa. "They are in the process of giving one of their coal mines to us to do the mining", Ranganath said, adding, the final capacity of this mine is likely to be 15 million tonnes.

On the government reportedly looking for "synergy" between KIOCL and NMDC, he said discussions have been held and both companies have given their opinion. "I presume that KIOCL will continue to be an independent company".


Source: BS (http://www.business-standard.com/india/news/kiocl-shortlists-jv-partner-for-rs-8000-cr-steel-plant-in-ktk/85042/on)

ArcelorMittal picks new site for K'taka plant

By Team Mangalorean Bangalore

Bangalore Feb 5: ArcelorMittal, the world's largest steelmaker, will set up an integrated steel plant at Kudithini in the iron ore mining Bellary district of north Karnataka at an estimated cost of Rs.300 billion (Rs.30,000 crore/$6.5 billion), an official said Friday.

"The Indian subsidiary of ArcelorMittal has decided to set up the six-million tonnes per annum (TPA) steel plant at Kudithini in Bellary district instead of a site near Mulwad village in Bijapur district," state's Principal Secretary Industry V.P. Baligar told reporters.

A team of the company's officials inspected the new site last week and agreed to set up the plant, as the state water resources department has assured about 400 million litres of water per annum from the nearby Tungabhadra river.

"The government is allotting 4,900 acres of land to the company on lease for locating the steel plant and a township," Baligar said on the margins of a conclave on small and medium enterprises (SMEs), organised by the Confederation of Indian Industry (CII).

http://mangalorean.com/images/newstemp24/20100205mittal1.jpg
The plant will be located adjacent to the 1000mw thermal power station of the state-run Karnataka Power Corporation Ltd (KPCL) at Kudithini, around 25km from Bellary and 330km from Bangalore.

The state-run Karnataka Industrial Areas Development Board (KIADB), which holds the land bank in the steel corridor, will allot the land to the steel major on a long-term lease.

The company has also applied for 300 hectares of captive mining area for sourcing iron ore in the district where the ferric (iron) content is high (around 63 percent). The application will be considered once the steel plant project takes off," Baligar noted.

To ensure sufficient water supply for the steel plant round the year, especially during the lean season (summer), the government has offered to lay down pipes from the Almatti dam across the Krishna river in Bagalkot district.

"Once commissioned, the steel plant is expected to create a vast industrial base for ancillary units and generate $6 billion (Rs.276 billion/Rs.27,600 crore) indirect business per annum and thousands of direct/indirect jobs," Baligar added.

Mangalorean (http://mangalorean.com/news.php?newstype=broadcast&broadcastid=167896)

If KIADB has the land bank then why did Economic times report of land acquisition problems??

KIOCL to set up steel plant in Ktaka

Public sector Kudremukh Iron Ore Company Ltd (KIOCL) would be seeking partnership for its three-million tonne integrated steel plant in Karnataka for which it had shortlisted an equity partner, a top official today said.

Speaking to reporters on the sidelines of a function here, KIOCL Chairman and Managing Director K Ranganath said the JV agreement would be signed within two months.

''We are proceeding through the due diligence now and our consultant is on the job. ''The plant, to come up at a cost of Rs 8,000 crore, would have an initial capacity of 1.5 million tonne of steel annually which would be expanded to three million tonne in due course,'' he said.

"We will start with 1.5 million tonnes (capacity annually in the proposed plant) expandable to three milllion ... Five million and later to 15 million tonnes". On the extent of equity participation by the joint venture partner, Ranganath said: "I do not want anything less than 26 per cent".

The company had also talks with a certain coal fields in Orissa and it was likely it would get a captive coal mine with a deposit of about 15 million tonne.

He said there was no move to merge KIOCL with National Mineral Development Corporation (NMDC). However, the Union Government wanted the company to have some sort of tie up with NMDC.

Mangalorean (http://mangalorean.com/news.php?newstype=broadcast&broadcastid=167896)

State notifies land for ArcelorMittal plant

Staff Reporter

The Rs. 30,000-crore steel plant will come up at Kudutini in Bellary district

It will generate employment for about 10,000 people

BANGALORE: The State Government on Friday issued the preliminary notification to acquire 4,800 acres of land in Kudutini in Bellary district for a six-million-tonne steel plant worth Rs. 30,000 crore to be set up by the global giant ArcelorMittal.

“The representatives of the ArcelorMittal group inspected the site at Kudutini for the third time on Thursday and have informed us of their approval of the site. The preliminary notification for land acquisition was issued today (Friday),” said Principal Secretary, Department of Industries and Commerce, V.P. Baligar on the sidelines of the SME Conclave here organised by the Confederation of Indian Industry (CII).

The steel plant is expected to generate employment for about 10,000 people besides providing opportunities for ancillary units, Mr. Baligar said and added that a team from South Korean steel maker Posco was also in discussion with the State Government to set up a Rs. 32,000-crore steel plant in Bellary district.

The Government had also notified for acquisition 4,500 acres in Bijapur for the proposed steel plant, he pointed out.

On the availability of water resources for the steel plant, he said that water would be supplied partially from the Upper Krishna Project and the Tungabhadra Dam if it is dredged.

“The water resources department has indicated that it would supply water to the steel plant,” Mr Baligar said. Three hundred acres of land have been notified in the area to mine iron ore for the plant, he added.

The State will enter into an agreement with ArecelorMittal during the Global Investors’ Meet (GIM) in June to which the Chief Minister B.S. Yeddyurappa has invited the group Chairman, Lakshmi Mittal, as chief guest, Mr. Baligar said.

Meanwhile, representatives from Hero Honda have visited three sites in Hubli-Dharwad region to locate their Rs. 2,000-crore plant. “The company has sought at least 400 acres. But, their application has not yet come before the high level committee,” he said.

The Hindu (http://www.hindu.com/2010/02/06/stories/2010020654330400.htm)

Posco too in talks

The steel plant is expected to generate employment for about 10,000 people besides providing opportunities for ancillary units, Mr. Baligar said and added that a team from South Korean steel maker Posco was also in discussion with the State government to set up a Rs. 32,000-crore steel plant in Bellary district. The government had also notified for acquisition 4,500 acres in Bijapur for the proposed steel plant, he pointed out.

The Hindu- http://www.hindu.com/2010/02/06/stories/2010020655240600.htm

KIOCL to set up steel plant in Ktaka


Mangalorean (http://mangalorean.com/news.php?newstype=broadcast&broadcastid=167896)

Any idea of the location?

Any idea of the location?

Bangalore: KIOCL to Set Up Steel Factory in State

Bangalore, Feb 6: The Kudremukh Iron Ore Company Limited (KIOCL) is planning to set up steel factory investing Rs 8,000 crore in the state.

Company president K Ranganath said that the factory will be started on a partnership basis, the location for which has not yet been finalized. He was addressing the reporters at the second annual day celebrations of Vigilance Study Circle here.

Daijiworld (http://www.daijiworld.com/news/news_disp.asp?n_id=71840&n_tit=Bangalore%3A+KIOCL+to+Set+Up+Steel+Factory+in+State)

^^ KIOCL is planning to have DISP plant of capacity 1 lakhs tons in Mangalore in their existing land. I don't think they have got enough land in Mangalore for an Integrated Steel Plant of the size 15 MTA. It looks like they need more land also for downstream and ancillary industries. And also there is environmental problem for another 8 months.

But in case they are planning for export then they can even think of having a separate port along coast. Water should not be a problem. As pointed out by Arul Murugan coastal regions have option of using desalinated water.

Karnataka to notify land for Mittal plant at Bellary today

Bangalore, Feb 5 (PTI) :Karnataka will set in motion today the process of acquiring 4,800 acres in Bellary for the mega steel plant being set up by ArcelorMittal, a top official said.

"The government has approved the land acquisition at Kudathini in Bellary district and the preliminary notification will be issued tomorrow in the state gazette", state principal industry secretary VP Baligar told reporters on the sidelines of a function here.

ArcelorMittal plans to set up a Rs 30,000-crore steel plant with 6mtpa capacity and also a 750mw captive power generation unit, he said.

"We had kept everything ready. Their team visited the place for third time yesterday and said these villages are fine. As soon as they gave me the green signal this morning, we got the approval from chief minister BS Yeddyurappa and we have notified these lands", he said.

Mittal had evinced interest in 4,800 acres located near a Karnataka Power Corporation project, Baligar said adding the land is ready and "we will lend immediately to Mittal."

The Mittal investment would entail job generation of over 10,000 in the long-term, he said.
Mittal's firm had earlier evinced interest to locate their plant at Bijapur, but later chose Bellary, an iron ore rich district, which the government accepted.

Replying to a question on Korean Posco Steel's interest in setting up a plant in the state, Baligar said, "a team had come, they had discussions and we are hopeful. The company was looking at land around Bellary. "But they have not decided".

On mines for these steel plants, he said some mining area in Bellary has been notified. Other mines are also open for application. "They have applied and it has to be decided," he said. In terms of provision of water, he said part of it will come from the Tunghabadra dam and other from the Upper Krishna.

Meanwhile he also said Hero Honda evinced interest to set up a plant entailing an investment of Rs 200 crore, he said, "a team had come, they have seen three sites, one in Hubli and two in Dharwad".

The Hero Honda would require 100 acres for themselves, and 200 acres for ancillaries and may be 100 acres for a township in the long term too, he said, adding however that nothing has been finalised.

Egyptian company Kapsci Coating, which was interested in seeting up a plant for paints, had also been looking for land near Bangalore. "They have seen two-three sites, they will get back to us", he said.

DHNS (http://www.deccanherald.com/content/51152/karnataka-notify-land-mittal-plant.html)

What does he mean by land is ready and we will lend them soon??Are the lands under KIADB's possession or they still have to negotiate with the farmers and face JD(S) wrath??

MUMBAI/BANGALORE: Sumitomo Metal and Bhushan Steel, which had recently agreed to build a steel project jointly in West Bengal, are now understood to be looking at Karnataka as a second destination, as the southern state is increasingly seen as being easier to operate compared to other traditional steelmaking states. If successful, the Sumitomo-Bhushan Steel duo may join a growing list of large steelmakers, including ArcelorMittal and Posco, who have opted for Karnataka after being frustrated in their efforts to build a steel plant in eastern states Jharkhand and Orissa, respectively.

“There is an invitation from the Karnataka government and we are evaluating the proposal ,” said Bhushan Steel chief financial officer Nittin Johari. “But we are also progressing reasonably well in West Bengal and are in the process of acquiring land there,” he added.

Japan’s Sumitomo, the world’s sixthlargest steel producer, had signed a technology transfer agreement with Bhushan Steel in December last and had also expressed interest in jointly building the proposed 6-million tonne steel plant in Asansol in West Bengal.

But inordinate delays for various proposed steel projects in states such as Orissa, Jharkhand and Chhattisgarh due to lack of clear rehabilitation policies from the state governments and slow mine and water linkages, have prompted companies such as Arcelor-Mittal and Posco to relook at other options, including Karnataka. Sources familiar with the developments at Sumitomo said this factor may also have led the Japanese company to agree on the quantum of equity participation in the West Bengal project.

Karnataka with an estimated 3.5 billion tonnes of iron ore reserves located largely in the three districts of Bellary, Raichur and Koppal , hasn’t seen any mega steel plant, except the Sajjan Jindal-controlled JSW Steel that is located at Thoranagallu, in Bellary.

ArcelorMittal and Posco have expressed interests of putting up 6 MT plants each in Karnataka and have already entered into negotiations with the state government. The estimated investments by both these companies is likely to cross Rs 60,000 crore. A Karantaka government official told ET that Sumitomo might also look at setting up a steel plant with a capacity in the range of 3-6 MT.

However, the process of setting up steel plants in Karnataka is expected to be lengthy as the government has to meet supplies on three vital criteria: captive iron ore mines, large tracts of land and abundant water. These parameters could become vexing as the government faces challenges on all these counts. Both ArcelorMittal and Posco have sought steady access to a captive iron ore mine, while there is already a long list pending with the state government, with companies such as NMDC, Kudremukh Iron Ore and JSW already waiting for mine allocation.

Similarly, availability of water could also become another challenge as the three districts where iron ore reserves are located, are traditionally rainfall deficient. However, the state government official said that Arcelor-Mittal has already agreed to build its plant on 4,000 acres land in Bellary district.


Source: ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Sumitomo-JV-heads-to-Karnataka/articleshow/5550553.cms)

NEW DELHI: Lighting major Surya Roshni today said it will invest Rs 20,000 crore in the next few years for setting up steel manufacturing and power plants, through an associate company.

"We are planning huge expansions for the Surya Group. We are planning to set up a 1,000 MW power plant and a steel plant with a capacity of 5 MT per annum, both in Karnataka," the company's Chairman and Managing Director J P Agarwal told reporters here.

He said the total investment in these two projects would be around Rs 20,000 crore, which the company will raise through a mix of debt and equity.

"We will also bring an IPO (initial public offering) for these projects which will be operated through a different company called Surya Vijaynagar Power and Steel and we will also rope in foreign investors for the purpose," Agarwal said.

However, he declined to give further details saying that specifics are yet to be worked out.

Surya Roshni also announced the launch of energy efficient T5 and T8 tubelights, which it claims can save up to 85 per cent power.

Speaking about the company's other plans, he said Surya is also setting up two steel pipe manufacturing plants in Gujarat and Madhya Pradesh with a total investment around Rs 550 crore.


Source: ET (http://economictimes.indiatimes.com/news/news-by-industry/energy/power/Surya-Roshni-to-invest-Rs-20k-cr-to-set-up-steel-power-plants/articleshow/5555925.cms)

Mostly in Ballari.

Source: ET (http://economictimes.indiatimes.com/news/news-by-industry/energy/power/Surya-Roshni-to-invest-Rs-20k-cr-to-set-up-steel-power-plants/articleshow/5555925.cms)

Mostly in Ballari.

Krishnamoorthy has it been mentioned that it would come up in Bellary??

Krishnamoorthy has it been mentioned that it would come up in Bellary??

Check my first post where all steel companies are listed. In one of news reports I found that it would be in Ballari.

Mr. Nirani, who visited the Tata’s Steel Plant at Jamshedpur, said Tata Metaliks Ltd would set up a three-million-tonne capacity steel plant in Haveri district with an investment of Rs. 15,000 crore on 2,000 acres of land. The State High Level Clearance Committee (SHLCC) in its meeting held last month has approved the project.


Source: The Hindu (http://www.hindu.com/2010/02/11/stories/2010021159080300.htm)

Bangalore: The Union steel ministry may not go ahead with the proposal to merge KIOCL (formerly Kudremukh Iron Ore Ltd) with another PSU NMDC, sources in the ministry said. The ministry has decided to revive the ailing KIOCL by getting a new captive iron ore mine.

‘‘Although it has not been announced officially, the ministry has decided not to merge the two companies,’’ a top official attached to the steel ministry told FE, requesting anonymity. The ministry’s decision comes after the Ganesan committee submitted its report advising against the merger in September 2009, the official added.

The steel ministry had accorded top priority to the revival of KIOCL in its 100-day agenda unveiled in June 2009 and accordingly, the committee was formed under the leadership of P Ganesan, former chairman & managing director of KIOCL, to come out with a report on the possibilities of merger of a few sick PSUs.

The ministry’s proposal was to merge KIOCl with NMDC through a share-swap arrangement. In line with the proposal, both KIOCL and NMDC should divest stake in each other and the former will become the subsidiary of the later.

Talking to FE, KIOCL chairman & managing director K Ranganath said, “I think merging of NMDC and KIOCL is a closed chapter. So far, we did not receive any communication from the steel ministry regarding the merger. Ganesan committee clearly told that there is no synergy in merging the two companies.”

KIOCL suspended iron-ore mining at Kudremukh site located in Western Ghats in December 2005 following a Supreme Court directive. Since then, the company has been procuring iron-ore from NMDC to run its pellet plant in Mangalore.

However, with the steel ministry shelving off its plans on merging the company with NMDC, KIOCL has taken a step to ensure survival on its own. The company has identified a potential partner to set up an integrated steel plant in Karnataka. Once the joint venture agreement was signed, the company would approach the Karnataka government to get captive iron-mines for the steel plant in the state, the CMD of KIOCL added. Already, the KIOCL has applied to the Karnataka government to allot mines in Ramanadurga and Chikkanayakanahalli taluks in the state to run its existing pellet plant.

The state government has approved KIOCL for mining in Chikkanayakanahalli, but the company is waiting for some other environmental clearance to mine there.


Source: FE (http://www.financialexpress.com/news/Steel-ministry-to-revive-KIOCL--merger-plan-shelved-for-now/578644/)

http://i49.tinypic.com/or35g3.jpg

Bangalore: The world’s largest steel makers, ArcelorMittal and South Korean steel giant Posco, are likely to get bumper sops for their proposed mega integrated steel plant projects in Karnataka.

“As per the existing state industrial policy, standard incentives are available. In addition to these, for mega projects investing more than Rs 1,000 crore, special incentives can be given,” VP Baligar, principal secretary, commerce & industry, Karnataka government, told FE. “They (Arcelor Mittal and Posco) did not ask us, but the government will offer them possible incentives,” he added.

Baligar also said the government would consider giving tax incentives like refund of tax and that the government would decide the period and volume of concession based on the investment. “The higher the investment, the higher the concession,” he said.

The state government had last month formally cleared the steel plant proposals of Posco and ArcelorMittal. Posco would invest Rs 32,300 crore to establish a steel manufacturing facility to produce 6 million tonne per annum (mtpa) while ArcelorMittal would invest Rs 30,000 crore for a 6-mtpa capacity plant in Karnataka.

While the state government had earlier allotted 4,000 acre in Bijapur district to Arcelor Mittal, the state had later increased the allocation to 4,900 acre at Kudithini, Bellary district. Arcelor Mittal, on its part, was keen on securing land in the iron-rich Bellary district.

A special package of incentives, over and above the standard package, will be offered to mega projects, based on the recommendations of a state high-level committee, headed by the chief minister, said an official in the Karnataka Udyog Mitra, the government-owned single window agency promoting industries in the state, requesting anonymity. The chief minister will announce the special packages for the ArcelorMittal project during the global investors’ meet, to be held in Bangalore in the fist week of June, the official added.

ArcelorMittal and Posco are the two largest projects (in the above-Rs 30,000-crore category) coming to Karnataka after the state government had announced its 5-year industry policy in 2009.

According to the Karnataka Industrial Policy 2009-14, the government offers concessions and incentives by dividing each taluk in the state into four zones. Kudithini village in Bellary taluk, where ArcelorMittal had been allotted land, comes under Zone 3 category—under the backward taluk class, the Udyog Mitra official said.

ArcelorMittal’s project would get 100% exemption from payment of entry tax on plant, machinery and capital goods for an initial period of 3 years from the date of commencement of the project. The entry tax exemption on raw materials, component parts and consumables is offered for a period of five years from the date of commencement of commercial production. In addition, any project with an investment of more than Rs 3,000 crore and with over 1,250 employees in zone 3 (Bellary taluk) would get an interest-free loan on VAT. In this case, it would be 25% of assessed gross VAT for the initial 12 years, subject to a maximum of 50% of the total value of fixed assets. The loan should be repayed in in five annual installments after 12 years.

In the case of Posco, the company has not yet chosen the land. However, the government expects the South Korean steel major to select a site in any one of the districts like Bellary, Koppal, Bagalkot, Haveri, Gadag and Raichur. Taluks in all these districts are categorised either under the backward or the most backward classes—and this will mean a higher benefit for manufacturing projects.


Source : FE (http://www.financialexpress.com/news/ArcelorMittal--Posco-likely-to-get-mega-sops-for-Karnataka-projects/579055/)

Farmers take out padayatra

Staff Correspondent

BELLARY: Farmers from Kuditini and Haraginadoni villages in Bellary taluk, under the banner of Land-losers’ Action Committee, took out a padayatra from Kuditini to Bellary here on Monday to draw attention to their plight.

Preliminary notification

U. Basavaraj, district secretary of the Karnataka Pranta Raitha Sangha, on behalf of the committee, told The Hindu that the Government had issued a preliminary notification to acquire 5,000 acres of land around Kuditini to be handed over to the Mittal group to set up a steel plant.

According to him, the identified land has been divided among the family members while the change in khata had not yet taken place. At present, 1,500 families had been tilling the land and in the event of land acquisition, without sub-division and change in khata, around 1,200 farmers will be severely affected.

He said that the committee was not against the acquisition of their lands but wanted the Government to take note of the plight of farmers and initiate steps that would not deprive them of their livelihood. He suggested that the Government bring in modifications to the process of land acquisition so as to ensure that farmers were not left high and dry.

Mr. Basavaraj said that the committee, in a memorandum to the Chief Minister, had demanded that the Government get the khata changed and guarantee employment to each family.

The Hindu (http://www.hindu.com/2010/02/16/stories/2010021651220300.htm)

A very good trend that farmers are not opposed to their land acquisitions but want better life after losing their lands,hope the govt takes care of it appropriately.

^^ Everyone of them should get job in the steel corridor. Before acquisition of land itself they should get appointment letter.

Hyderabad, Feb 17 (PTI) The state-owned mining giant NMDC is looking at clocking Rs 30,000 crore turnover by 2014-15--when its various projects worth Rs 26,000 crore would start be operational.

According to NMDC finance director S Thiagarajan, the company will not mind going to the equity markets to raise funds for these projects if situation requires. He, however, added the company will have cash reserves of over Rs 13,000 crore by the end of this fiscal.

Giving a break-up of its massive investment plans, Thiagarajan said the company will invest Rs 16,000 crore in a 1.2-million tonne per annul steel plant at Donimalai in Karnataka. It would also pump Rs 4,000 crore into the proposed 2mtpa pellet plant at Bacheli in Chhattisgarh.


Source: PTI (http://www.ptinews.com/news/523066_NMDC-eyes-Rs-30k-cr-turnover--to-invest-Rs-26k-cr)

* The farmers have demanded 50 per cent of the cost of the land as cash and the rest in the form of equity in the project

Farmers in Karnataka whose land is expected to be acquired for setting up the six-million-tonne steel plant of ArcelorMittal have come out with a unique demand for selling their land to the promoters: They want equity in the project.

Mr U. Basavaraj, the State Vice-President of the Karnataka Prantha Raitha Sangha (Karnataka region farmers' union) which represents the farmers in Kudithini and Haraginadoni in Bellary district where the Rs 32,000-crore steel project will come up, told Business Line that they have demanded 50 per cent of the cost of the land as cash and the rest in the form of equity in the project.

If the company is not agreeable for such a demand, they will still offer the land but only on yearly lease to the promoters.

“We will not agree to part with the land if these demands are not met,” Mr Basavaraj said. The demand has found a supporter in the Karnataka Minister for Infrastructure Development and Tourism, Mr G. Janaradhan Reddy.

He told reporters in Bellary on Wednesday that for his steel project in the district, he would be willing to offer equity to the farmers whose land will be acquired for the plant.

“Being an industrialist myself, I am confident that all other industrialists would be willing to accept the proposed idea,” he said.

On February 4, the Karnataka Government issued a preliminary notification to acquire 4,800 acres in Kudithini and Haraginidoni in Bellary district for the steel project.

According to the Land Reforms Act, farmers are allowed to give their land on lease to any industrial project but after 10 years, the ownership gets transferred to the promoters. Hence the farmers want this Act to be amended so that the ownership remains with them.

Mr Basavaraj also pointed out that the preliminary notification for acquisition of land was flawed. He said the Government has identified only about 310 families whose land will be acquired for this purpose which means only about 310 farmers will get a job in the steel project according to the State Government's policy.

But Mr Basavaraj said that this was not true because each of the land holdings are divided among other members of the farmers' families as well but are not registered separately.

“Hence it does not truly reflect the number of people who actually own and till those lands,” he said.

In this case, at least over 1,500 families will be affected, he said.


Source: The Hindu Business Line (http://www.thehindubusinessline.com/2010/02/18/stories/2010021852310100.htm)

Farmers becoming businessmen. kya bath hai! (KBH - poor hindi, like kanndada, does not have internet slangs. should have smilies also).

State-run mining major NMDC is in talks with ArcelorMittal for its proposed 10-million tonne steel plant in Karnataka. NMDC sources claimed there had been preliminary discussions with the steel major for the proposed plant. “It is at a nascent stage,” they said.

However, ArcelorMittal, which has also shown interest in setting up a six-million tonne plant in the same state, denied of any such development. A spokesman of the company said, “We have not received such a request.”

NMDC sources pointed out that all projects in Karnataka would hinge on mine allocation.

The state-owned miner is the first applicant for the Ramandurga mine in a case, which has been pending for the last 41 years in court. The Ramandurg mine has reserves of around 300 million tonnes of iron of the one-billion tonne reserves in the Bellary-Hospet region, where most of the companies are looking to set up plants.

NMDC is also the first company to come forward to set up a steel plant in Karnataka. NMDC’s Donimalai mines are in Karnataka, but the proposed steel plant is linked to the allocation of Ramandurg mine. NMDC has also been invited to set up a deepwater port in the state.

However, NMDC’s partnership talks for the steel plant is not exclusive to ArcelorMittal. Sources said, “We are doing a market survey right now.” The miner is in talks with Tata Steel, Japanese and Chinese players as well.

Last month, NMDC and Tata Steel signed an MoU to examine the possibility of strategic alliance for acquisition, exploration and development of mines and setting up integrated steel plants.

Tata Metaliks, promoted by Tata Steel, on the other hand has proposed a 3-5 million tonne plant in Karnataka after facing delays in land acquisition in West Bengal.

While Karnataka has emerged as an alternative destination for steel companies that have faced inordinate delays in the traditional mineral belt in the east, scarcity of water is driving them away.

Industry sources said investors would not invest in the state unless they are allocated iron ore mines. “It does not have coal and there is water scarcity. The only source of water is Almati,” said sources.

Karnataka has 10 per cent of the country’s haematite (high grade iron ore resources), compared to 19 per cent in Chhattisgarh, 27 per cent in Jharkhand and 33 per cent in Orissa. Ironically, Karnataka has 73 per cent of total magnetite (low grade iron ore resources), but in the ecologically and environmentally sensitive region of the Western Ghats.

Government-owned miner NMDC is in talks with ArcelorMittal for an iron ore project in Senegal, a move likely to pave the way for a likely co-operation not just in minerals, but steel as well.

NMDC sources said, some preliminary discussions had been held for NMDC’s proposed 10 million tonne steel project in Karnataka. “It is at a nascent stage,” they said. An ArcelorMittal spokesperson in India said, “We have not received such a request.”

ArcelorMittal has already evinced interest in setting up a six million tonne plant in Karnataka. However, NMDC pointed out that all projects in Karnataka would hinge on mine allocation.

The state-owned miner is the first applicant for the Ramandurga mine, which has been pending for the last 41 years, and is in court. Ramandurga has reserves of around 300 million tonnes of the one billion tonne reserves in the Bellary-Hospet region, where most of the companies are looking to set up plants.

NMDC happens to be one of the first companies to come forward in setting up a steel plant in Karnataka. NMDC’s Donimalai mines are in Karnataka, but the proposed steel plant is linked to the allocation of Ramandurga. NMDC has also been invited to set up a deepwater port in the state.

However, NMDC’s partnership talks for the steel plant is not exclusive to ArcelorMittal. Sources said, “We are doing a market survey right now.” The miner is in talks with Tata Steel, Japanese and Chinese players.

Last month, NMDC and Tata Steel signed a memorandum of understanding to examine the possibility of strategic alliance for acquisition, exploration and development of mines and setting up integrated steel plants.

Tata Metaliks—promoted by Tata Steel—on the other hand has proposed a 3-5 million tonne plant in Karnataka after facing delays in land acquisition in West Bengal.

While Karnataka has emerged as an alternative destination for steel companies that have faced inordinate delays in the traditional mineral belt in the east, lacks adequate water to cater to all the proposed projects and coal.

Industry sources said, investors would not put in money in the state unless allocated iron ore mines. “It does not have coal and there is water scarcity. The only source of water is Almati,” said sources.

Karnataka has 10 per cent of the country’s haematite (high grade) iron ore resources, compared to 19 per cent in Chhattisgarh, 27 per cent in Jharkhand and 33 per cent in Orissa. Ironically, Karnataka has 73 per cent of total magnetite (low grade) iron ore resources, but in the ecologically and environmentally sensitive region of the Western Ghats.

State-run mining major NMDC is in talks with ArcelorMittal for an iron ore project in Senegal, a move that is likely to pave ways for likely co-operation not just in minerals, but steel as well.


Source: BS (http://www.business-standard.com/india/news/nmdc-in-talksarcelor-for-karnataka-steel-plant/386095/)


HL Nathurmal, headquartered in Goa, is planning to build an integrated steelworks in the southern state of Karnataka by 2012-13 (http://www.steelbb.com/us/?PageID=157&article_id=72407).

Minister backs ‘equity for farmers’ idea

Staff Correspondent

Janardhan Reddy confident industries too will accept it

BELLARY: Minister for Tourism G. Janardhan Reddy has welcomed the idea mooted by a section of farmers, whose lands have been marked for acquisition for the setting up of a steel plant, that 50 per cent of the value of the land should be converted into equity in the proposed plant.

“Being an industrialist myself, I am confident that other industrialists will accept the idea,”he told presspersons here on Wednesday.
Proposed plant

The idea had been proposed by farmers of Kuditini and Harginadoni villages, whose land has been identified for acquisition for the setting up of a steel plant by the Mittal group.

The farmers, in a memorandum to the Chief Minister, demanded employment for the family of land-losers, payment of 50 per cent of the market value of the land and conversion of the remaining 50 per cent as shares. “This is a very good proposal. However, farmers need to be convinced about its advantages. I will take up the matter with the Government which would be in the common interest of all”, he said.

Reservoirs

Mr. Reddy, replying to another question, said that four sites had been identified downstream of the Tungabhadra reservoir for construction of balancing reservoirs to meet the water requirement of mega steel industries that would soon come up in the district. The water stored in these reservoirs, the construction of which would be taken up under public-private partnership, would be shared between the farmers and the proposed industries. Water would also be drawn from the Alamatti dam in Bagalkot district to meet the requirement of the industries, the Minister added.

The Hindu (http://www.hindu.com/2010/02/19/stories/2010021953500300.htm)

Bangalore, Feb 20 (PTI) The Karnataka government today decided to allow mining in 14 blocks, including those in Bellary, Shimoga and Mysore, subject to certain conditions.

Mining in these blocks would be allowed if it is for value addition and creation of jobs, and if it is approved by the forest and environment departments, central government and high-level committee of the state, Home Minister V S Acharya told reporters after a cabinet meeting.

The decision is in tune with the state's mining policy, he added.

The government also gave the green signal to four charitable organisations to acquire agricultural land as per powers vested in it by the exemptions in the Karnataka Land Reforms Act.

These include more than six acres for Brahmakumaris, who are setting up a university in Belgaum district.


Source: PTI (http://www.ptinews.com/news/527966_Karnataka-govt-allows-mining-in-14-blocks)

Arcelor Mittal and POSCO are into politics & are not really interested in Karnataka.

Take it,they wont come.

Bank on only surya roshini,KIOCL,TATA metalliks and the rest.

* There is no proposal to approve mining in reserve forests
* Tata iron and steel and a South Korean major want to set up steel plants in the State
* Efforts are on to purchase power from other States and other agencies, including Jindal

Bangalore: The State Government has ruled out issuing iron ore mining licences purely for export and will accord its approval only for those adding value to the ore — primarily iron and steel plants.

Chief Minister B.S. Yeddyurappa, after a meeting with senior Ministers, told presspersons on Tuesday that the recent decision of the State Cabinet was not intended to promote exports but restricted to adding value to the iron-ore mined in the new areas. Exports fetch the State and the Union Governments only a small revenue by way of royalty compared with steel plants which will enable wealth generation and also provide employment to a large number of people.

Further, there is no proposal to approve mining in reserved forest areas or in the Bandipur Tiger reserve, the Chief Minster clarified. Of a mining area of 813 sq km in Mysore district, 11 sq km come within the purview of the Bandipur forest reserve and there is no question of granting a licence in this region. Further, rules governing national parks and sanctuaries also state that there will be no major industry or mining within a radius of 25 km from a national park.

He said mining licences would be recommended for approval by the Centre subject to several conditions — value addition, clearance by the State high-level committee on investments, clearances from the Ministry of Environment and Forests and that of the Union Government. “We have only de-reserved some mining blocks in the districts of Mysore, Bellary and Shimoga and it is primarily aimed at attracting investments in the steel sector. Apart from ArcelorMittal and Posco, Tata iron and steel and another South Korean major have also evinced interest in setting up steel plants in the State,” he said.

The Chief Minister said all out efforts were on to purchase power from other States and other agencies, including Jindal which has agreed to supply 200 MW of power, the power trading corporation which has agreed to sell 300 MW and NTPC 300 MW. From March 1, the State will firm up a power purchase agreement for two months which will involve an expenditure of around Rs. 800 crore for about 850 MW of electricity. The Government, Mr. Yeddyurappa said, was committed to adding 5,000 MW of power to the State grid before its term comes to an end. “I stand by my promise given to the people two years ago. Around 1,000 MW will be added to the grid in about a year from now and several other projects are also under implementation.” Meanwhile, the Government will come out with a load-shedding schedule soon, he said.


Source: The Hindu (http://www.hindu.com/2010/02/24/stories/2010022462790600.htm)

Which is the other South Korean company?

South Korean steel major Posco is trying to mount pressure on the Karnataka government to secure iron ore mining licences, before it agrees to zero in on the site for its proposed integrated steel plant in the state.

Recently a high-level team of officials from the company had visited Karnataka, but did not finalise the site for the proposed steel plant despite the state trying to convince them to do so. Sources close to the development told FE that although the state government has recommended a few sites, the company is delaying the finalisation of the site in a bid to exert pressure on the state for obtaining recommendations for a couple of iron ore mining licenses.

Talking to FE, VP Baligar, principal secretary of commerce and industries department of Karnataka, said the Posco team held meetings with the government but did not visit any site recommended for them in various districts in the state.

“They came here and discussed about mining licenses. The government will consider their application,” he said. The company has applied for mining licenses to mine iron ore in various areas in the state, where iron ore content is high.

“In one area, the company has applied for 300 hectares and in another it has applied for 500 hectares for mining iron ore,” the principal secretary said. “The state government can only recommend, as the Centre has to approve iron ore mining licenses,” he added.

“Meanwhile, they have to decide at their corporate level about the site for the steel plant. I’m sure they will come again,” he said. The company is considering places like Bellary and the Koppal belt for the steel plant..

Earlier last month, the state government had formally cleared the steel plant proposals of Posco and ArcelorMittal, the world’s largest steel maker. Posco would pump in Rs 32,300 crore to establish a steel manufacturing facility to produce 6 million tonne per annum (mtpa) while ArcelorMittal would invest Rs 30,000 crore for 6-mtpa capacity plant in Karnataka. According to analysts, Posco is cautious with its Karnataka project due to its bitter experience in Orissa, where the company over the past four years could not establish its proposed Rs 54,000 crore steel plant project due to problems of land acquisition and regulatory approvals.

However the Karnataka government is keen on completing all official procedures, including notification of land, for Posco before the commencement of the global investors meet scheduled in June. It believes that deals with Posco and ArcelorMittal will create a conducive industrial climate in the state that would help the government to canvas larger industrial investments during the investors meet.

While Posco has not made any progress till-date, the state government has already notified around 4,900 acres for ArcelorMittal’s steel project at Kudithini village in the iron ore rich Bellary district. This is the second notification by the state government for ArcelorMittal. Earlier in January, the government notified 4,000 acres in Bijapur district for ArcelorMittal. But the company has not accepted it and was keen on getting lands in iron ore rich Bellary district. As per the wish of ArcelorMittal, the state government notified lands for them in Bellary district in the first week of February.


Source: FE (http://www.financialexpress.com/news/Posco-scouts-for-mining-licences-in-Karnataka/584114/)

BANGALORE, February 24, 2010: Chief Minister B S Yeddyurappa on Wednesday conveyed to the Centre that the state's decision to allow mining in certain reserved forests was subject to certain conditions, including permission from the Union Environment ministry.

He was responding to a letter written by Union Minister of State for Environment and Forests Jairam Ramesh, who told the State government not to approve mining projects in forest areas without his Ministry's approval. Mr Yeddyurappa said that the State can only make recommendations to the Centre on mining projects and it can't take a decision on its own. “Clearance is left to the Centre; we don't have any right to clear mining projects” Mr Yeddyurappa said.

The state cabinet's decision to permit mining in certain reserved forests carries four conditions. The State Cabinet allowed mining in 14 blocks of Bellary, Shimoga and Mysore districts.

Yeddyurappa said necessary permissions under the Forest Act and environmental clearance from the Environment and Forests ministry had to be obtained. Besides, approval was necessary under the Mines Act and Rules and Mining lease proposals would be considered only in case of companies who would add value within the state like steel plants. Investment proposals had to be cleared by the High Level Clearance of the state in this industry, he said.

Chief Minister B.S. Yeddyurappa, after a meeting with senior Ministers, told presspersons on Tuesday that the recent decision of the State Cabinet was not intended to promote exports but restricted to adding value to the iron-ore mined in the new areas. Exports fetch the State and the Union Governments only a small revenue by way of royalty compared with steel plants which will enable wealth generation and also provide employment to a large number of people.

Further, there is no proposal to approve mining in reserved forest areas or in the Bandipur Tiger reserve, the Chief Minster clarified.

Of a mining area of 813 sq km in Mysore district, 11 sq km come within the purview of the Bandipur forest reserve and there is no question of granting a licence in this region. Further, rules governing national parks and sanctuaries also state that there will be no major industry or mining within a radius of 25 km from a national park.

He said mining licences would be recommended for approval by the Centre subject to several conditions - value addition, clearance by the State high-level committee on investments, clearances from the Ministry of Environment and Forests, and that of the Union Government.


Source: Mangalorean (http://mangalorean.com/news.php?newstype=broadcast&broadcastid=170560)


Mining in these blocks would be allowed if it is for value addition and creation of jobs, and if it is approved by the forest and environment departments, central government and high-level committee of the state, Home Minister V S Acharya told reporters after a cabinet meeting


I think forest and environment department is going to reject it.

Centre reprimands Karnataka CM on mining issue

Feb. 27 (Bloomberg) -- Bhushan Steel Ltd., an Indian maker of automotive steel, plans to spend 280 billion rupees ($6.1 billion) to set up a plant in the southern state of Karnataka to tap demand from carmakers.

The proposed plant will have capacity of 600,000 metric tons and be set up on a debt-to-equity ratio of 2:1, Neeraj Singal, managing director of the New Delhi-based company, said in a phone interview today without giving details.


Bhushan hopes to start building the plant in the fiscal year starting April 1, 2011, and has approached the Karnataka state government mine ministry about procuring iron ore, Singal said when contacted on his mobile phone.


Source: BusinessWeek (http://www.businessweek.com/news/2010-02-27/bhushan-steel-to-invest-6-1-billion-in-india-mill-update1-.html)

‘Fix price of land before survey’

Staff Correspondent

BELLARY: Farmers from Kuditini and Haraginadoni villages in Bellary taluk, whose lands have been identified for acquisition for a steel plant by ArcelorMittal, were unanimous in urging the Deputy Commissioner that the price of the land be fixed before beginning a survey of the land.

Participating in a meeting convened here on Tuesday by Deputy Commissioner B. Shivappa, who is the District-level Price Fixation Committee president, the farmers also opposed the setting up of residential layouts near the village, and asked for an assurance that the plant would be located at least 2 km away from the village.

They also drew the attention of the Deputy Commissioner that mutation of the land proposed for acquisition had not been done. Family members, after division, had been cultivating their share of lands, they said.

Mr. Shivappa told the farmers that he would convey the views of the farmers to the Government.

Later, he told presspersons that the Government had already issued a preliminary notification for the acquisition of the land.

The meeting had been convened to discuss some of the other issues related to the acquisition such as mutation, cultivation undertaken on government land, non-issue of pattas, the allotment of one site for each land loser in the company township, among others. Another meeting would be convened to discuss the matter in detail with the farmers, he said.

The Hindu (http://www.hindu.com/2010/03/03/stories/2010030352300300.htm)

Bangalore: Chief Minister B.S. Yeddyurappa has said that the Government will take necessary steps to permit the Kudremukh Iron Ore Company Ltd to undertake mining operations in 116.55 hectares of land at Hombala Ghatti and Hosahalli villages of Chikkanayakanahalli in Tumkur district.

Mr. Yeddyurappa told the Legislative Assembly that the Union Mining Ministry had granted permission for mining in two villages on June 12, 2008. But since the area falls under the forest region, the State had to obtain clearances from the Ministry for Environment and Forests.


Source: The Hindu (http://www.thehindu.com/2010/03/04/stories/2010030464980800.htm)

KOLKATA, March 5 (Reuters) - India's top iron ore miner NMDC (NMDC.BO: Quote, Profile, Research) is planning to set up a 2-million tonne steel plant in the Southern Karnataka state with an estimated investment of 160-180 billion rupees ($3.5 billion-$3.9 billion), a senior company official said.

"The Karnataka state government has already allocated 2500 acres of land in the Bellary/Hospet area. We have also obtained the power and water connectivity for the plant," Joint General Manager N. Srinivasan told reporters on Friday.

The integrated plant would be state-run NMDC's second steel facility after the proposed 3-million tonne plant in the central Chhattisgarh state, expected to be operational by 2014, he added.

NMDC would look at a combination of debt and equity to fund the project, but the amount to be raised would be finalised after the completion of a detailed project report, he said.

The federal government plans to raise about $3 billion by selling an 8.38 percent stake in NMDC, bringing its public float in the company to 10 percent. It owns more than 98 percent in the firm.

The stake sale will open on March 10 and close on March 12.

The sale is part of the government's plan to offload stakes in 60 state-run firms over the next few years as it tries to raise funds for welfare programmes without stretching an already wide fiscal gap. ($1 = 45.6 rupees) (Reporting by Niladri Bhattacharya; editing by Malini Menon)


Source: Reuters (http://in.reuters.com/article/domesticNews/idINSGE6240DO20100305)


NMDC may raise Rs.5,000 crore for Karnataka project (http://www.thaindian.com/newsportal/business/nmdc-may-raise-rs5000-crore-for-karnataka-project_100330366.html#ixzz0hJSlgejS)

NMDC to invest Rs 17,000 cr to set up steel plants


BANGALORE, March 6, 2010: National Mineral Development Corporation Limited, the largest iron ore producer by volume in India, would invest Rs 17,000 crore to set up steel plants in the country, its top official said on Friday.

We are looking at diversifying into steel making and power generation in a big way and will invest Rs 17,000 crore for establishing steel plants in the country, C Hanumanth Rao Joint General Manager (commercial), NMDC told reporters here.

Announcing NMDC Limited's FPO (Further Public Offer) which opens on March 10, he said, we plan to set up two steel plants with an annual capacity of 3 million tonnes each in Nagarnath in Madhya Pradesh and Karnataka in three years.

As part of horizontal expansion, NMDC Ltd would also set up a pellet plant in Donimalai (Karnataka) and Chhattisgarh, Rao said. The navaratna PSU, with total iron reserves of 1,212.7 million tonnes as on January 1,2010, would expand annual production capacity from 30 million tonnes to 50 million tonnes by 2015. NMDC is looking at developing three new mines, two in Chhattisgarh and one in Karnataka with an annual capacity of 7 million tonnes each, he said.

Our Correspondent

Source (http://mangalorean.com/news.php?newstype=local&newsid=171783)

NMDC plans to set up steel plant in Karnataka

Kolkata, March 8 (IANS) Mining major National Mineral Development Corporation Limited (NMDC) is planning to set up a two million tonne per annum steel plant in Karnataka, a top company official said here Monday.

"The Karnataka state government has promised to allocate 2,500 acres of land for construction of a steel plant. This would be NMDC's second steel facility after the proposed three million tonne per annum steel plant in Chhattisgarh," N. Srinivasan, joint general manager (finance) of the company, said.

He said: "A consultant is to be appointed for the Karnataka steel plant for necessary techno economic feasibility. Other reports will be prepared after which construction will start.

"Any shortfall in the required investment may be raised by a combination of debt or equity based on the circumstances prevailing at that time."

Talking about the Chhattisgarh steel plant, the official added that the company is already in possession of 995 acres and permission from the state government has been obtained for drawing water and power required for the construction of the steel plant.

Mangalorean (http://mangalorean.com/news.php?newstype=local&newsid=172071)

BANGALORE, INDIA--March 10, 2010--Researched by Industrial Info Resources (Sugar Land, Texas)--Leading Indian manufacturer of auto-grade steel Bhushan Steel Limited (BSE:500055) (New Delhi) plans to invest $6.1 billion to develop a value-added steel mill at Bellary in the southern Indian state of Karnataka. Company officials from Bhushan Steel told Industrial Info that the proposed mill will have the capacity to produce 6 million tons per year of hot-rolled coil.

More on INDUSTRIAL INFO (http://www.industrialinfo.com/showAbstract.jsp?newsitemID=157053)

ArcelorMittal, Pasco, Bhushan all are with 6 MTPA starting capacity. :) All are in Ballari. :cheers:Ballari!!!

Firm had sought close to 5,000 acres for their steel plant

Karnataka has taken one more step towards facilitating ArcelorMittal’s efforts to set up their 6 million tonne per annum capacity steel plant in the state. The government has issued preliminary notification to acquire some 4,994 acres at Kudithini and Haraginadoni villages in Bellary district for the proposed steel plant.

Murugesh R Nirani, Karnataka minister for large and medium industries, announced at the state legislative council on Wednesday that Karnataka Industrial Area Development Board (KIADB) has issued a preliminary notification to the landholders on February 5 for the purpose. ArcelorMittal has sought close to 5,000 acres for their steel plant and 750 Mw power plant.

While, 4,000 acres would be given to the company for the steel plant, remaining land would go for setting up of ancilliary industries and their township, he said. The landholders in these villages have been issued notification under the section 28(2) of KIAD Act.

Some of the farmers have expressed certain objections and the state government would consider them during the public hearing, the minister said.

A team of officials from the company had informed the government of its choice of Kudithini last month for setting up the Rs 30,000 crore steel plant. This place is closer to Tungabhadra dam in Hospet, from where the required for the plant will be supplied. The state government has identified 300 hectares of iron ore mine for the company in Bellary district.

ArcelorMittal is expected to sign a memorandum of understanding with the state government during the forthcoming global investors’ meet on June 3, 2010. The high-level clearance committee (HLCC), headed by the chief minister had cleared ArcelorMittal proposal in January.


BS (http://www.business-standard.com/india/news/kiadb-to-acquire-4994-acres-for-arcelormittal-in-bellary/388174/)

Industry Minister Murugesh Nirani said on Wednesday that the Government tried to persuade ArcelorMittal to set their steel plant in Bijapur or Koppal, but gave in to the steel giant’s demand for land in Bellary.

“We requested the technical committee of ArcelorMittal to select either of Bijapur or Bagalkot. But they chose Bellary. Considering the reputation of the company, the government did not want to miss the opportunity and notified the land in Bellary”, he told the Legislative Council.

The Council witnessed strong criticism by the Opposition to the government’s move to allot 4,000 acres of land in Bellary to ArcelorMittal for setting up a steel plant.

A section of the members of the Congress and the JD(S) alleged that the government is providing facilities for the investor at the cost of public inconvenience. Congress member K C Kondaiah said seven steel plants were already functioning in Bellary and Koppal districts. In the next 10 years, the collective capacity of steel plants will go up to 20 million tonnes a year. A power plant had already been established. Supply of raw material to all these industries would be a difficult task in the coming years.

The heavy concentration of industries at one place would increase pressure on road infrastructure. It would be better if the ArcelorMittal’s plant is shifted to either Chitradurga or Tumkur where iron ore is available, Kondaiah said.

Minister for Industries Murugesh Nirani defended the government’s move. He said ArcelorMittal was a globally renowned industrial house. Its entry would help the state to attract investments from other global corporates.

He said, the State government was aware that heavy concentration of industries would pose serious challenges in future.


DHNS (http://www.deccanherald.com/content/57376/govt-gave-mittals-land-bellary.html)

Lighting products maker Surya Roshni plans to set up a steel plant in Karnataka and double the capacity in the sector from 25 lakh units to 50 lakh units each year.

"We are planning to set up a steel plant in Karnataka. It is in planning phase. Investment and tonnage capacity is being worked out," Executive Director Surya Roshni Utkarsh Dwivedi told reporters here today.

He said the company also intends to expand infrastructure in sectors like cement, power and PVC pipes in Gujarat, Madhya Pradesh, Chattisgarh and Uttarakhand.

He further said that a highmast street light would also be manufactured at Gwalior in Madhya Pradesh.

Recently, Surya Group has undertaken expansion of 550 crore mainly in steel pipes for water, oil and gas and also for lighting which is expected to generate employment for 6,000 more people, Dwivedi said.

Source: BS (http://www.business-standard.com/india/news/surya-roshni-to-setsteel-plant-in-k%5Ctaka/88140/on)

Tata Steel (BSE:500470) on Thursday said it plans some investments in Karnataka's in Haveri district where the group has also taken up relief measures for the people ravaged by the recent floods.

"Tata Steel has a major investment proposal for Haveri district. This would create employment opportunities for the youth and generate additional revenues for the state," a company release, quoting its managing director HM Nerurkar said here on Thursday. The group did not, however, elaborate on the financial details of the proposed investment.

The Tata Relief Committee, the salt-to software conglomerate's welfare arm, is building 144 houses for those affected by the recent floods at Mannur village of Haveri district. The project also includes setting up a school and primary health centre.

The foundation stone for the project was laid by chief minister YS Yeddyurappa, the statement said.

Trading Markets (http://www.tradingmarkets.com/news/stock-alert/tatly_india-s-tata-steel-to-invest-in-flood-ravaged-karnataka-district-885674.html)

JSW Steel aims for 11mt/y next year (http://www.steelbb.com/us/?PageID=157&article_id=73532)
Karnataka government in new talks on Posco project (http://www.steelbb.com/us/?PageID=157&article_id=74381)

ArcelorMittal's investment plans in Karnataka are on in full swing, sources told CNBC-TV18. The steel behemoth plans to set up a 6 mtpa plant at a total investment of Rs 60,000 crore in Karnataka.

The Karnataka government is likely to transfer land to the company by June. It is likely to acquire nearly 5,000 acres, including 4,000 acres for the plant. The remaining 1,000 acres is to be equally divided for ancillary units and townships. The government has issued preliminary notification for the land acquisition.

It has deposited 40% of the land cost or Rs 60 crore with Karnataka Industrial Areas Development Board (KIADB) in March. The government has identified land in Kudutini and Haraginadoni villages.

News Center (http://www.moneycontrol.com/news/advertising/k%E2%80%99taka-to-transfer-land-to-arcelormittal-by-june-sources_449759.html)

Total land price is Rs. 133 crores. Per acre around Rs. 2.6 lakhs?

Karnataka approves Tata Metaliks plan for steel plant

Tata Metaliks Ltd, a manufacturer and supplier of pig iron, has received the Karnataka government’s approval for its revised proposal to set up a 3 million tonne per annum (MTPA) iron and steel plant in two phases in Haveri district of North Karnataka.

The investment is estimated at Rs 6,101 crore, of which Rs 2,033 crore will be put in by the promoters and Rs 4,067.6 crore will be arranged through term loans. Currently, the company has a debt of Rs 300 crore. It operates five furnaces with an annual capacity of 650,000 tonnes.

“The company had earlier planned to establish an iron and steel plant of 700,000 tonne per annum at an investment of Rs 984 crore. However, they came up with a revised proposal to expand their capacity to 3 MTPA. The state high level clearance committee has approved the proposal with several incentives and tax concessions,” Murugesh R Nirani, minister for medium and large industries, Karnataka government, said.

He added the government has also agreed to give stamp duty exemption, electricity tax exemption for captive and power supply for 10 years from Karnataka Power Transmission Corporation Ltd, 50 per cent of the cost of an effluent treatment plant and 100 per cent of the cost of a water supply scheme.

In addition to this, the government has agreed to provide a soft loan at 1 per cent towards value-added tax for 10 years. Entry tax exemptions for 10 years on plant and machinery and all inputs, such as raw materials and consumables as well as exemption of royalty on water, he said.

A Tata Metaliks spokesperson said: “We are happy that the Karnataka government has approved our proposal and our board will soon meet to work out the details of the project’s commencement date.”

The plant will be spread over an area of 900 acres in Ganajur, Devagiri and Yallapura villages of Haveri district. The state high level clearance committee has recommended to the Karnataka Industrial Area Development Board (KIADB) to acquire land on consent basis from the lawful land owners with a condition to submit consents for minimum 70 per cent of total extent of land proposed for the project to KIADB before it initiates acquisition.

The project will draw 56 MLD (million litres per day) of water from Tungabhadra and Varada rivers. The state has also sanctioned 166 MVA of power required for the project.

Apart from these concessions and incentives, the company has sought some other incentives from the state government, like grant of a captive iron ore mine with a mineable reserve of 320 million tonnes, railway siding facility, right of way for water pipeline and power transmission, a road up to the plant site, a railway line between Kotturu and Harihar and berthing facility at Karwar and Mangalore ports.

“We will provide all possible incentives as per the state’s industrial policy in order to help the company set up their plant,” Nirani added.

For the year 2008-09, Tata Metaliks reported a turnover of Rs 1,106 crore and a loss of Rs 149 crore due to currency fluctuations and a pile up of inventory. During 2009-10, it projected a growth of 66 per cent in its top line and a net profit of Rs 100 crore.

TATA Metaliks (http://www.tatametaliks.com/common/newsroom/reports-karnataka.asp)

Nirani said the world’s largest steel manufacturer Arcelor Mittal has recently deposited Rs 60 crore to the State Government as an initial cost for land acquisition for its proposed Steel Plant in Bellary. The land acquisition process has already begun. Preliminary notification has been issued. The company has plans to set up its steel plant at Toranagal in Bellary district, he added.

DHNS (http://www.deccanherald.com/content/61643/mumbai-roadshow-attracts-ppp-railway.html)

Press Trust of India / Mumbai April 02, 2010, 14:57 IST

Leading steel-maker JSW Steel plans to expand the steel manufacturing capacity at its Bellary plant in Karnataka at an investment of $5-6 billion, a top company official said.

"We have decided to expand steel manufacturing capacity at our Bellary plant from 10 million tonnes to 16 million tonnes at an investment of $5-6 billion (around Rs 20,000-25,000-crore) in the next three-years," JSW Steel's Vice-Chairman and Managing Director, Sajjan Jindal, told reporters on the sidelines of an event here.

"We are also looking at investing in infrastructure to develop roads, railways and power plants at our Bellary unit," Jindal said, adding that the company is currently working on the details of these investments.

"We have already invested close to Rs 40,000-crore in the Bellary plant and will continue to invest in Karnataka due to the proactive policy of the Karnataka Government," he said.

"Our investment in Karnataka is the largest compared to other units," he said.

"The upcoming ports and extensive railway networks will help industries to grow in the state. The new mineral policy by the Karnataka Government is also a positive initiative," he said.

Steel prices could go up, he said, as raw material prices have risen substantially.



Business Standard (http://www.business-standard.com/india/news/jsw-steel-to-invest-6-billion-at-bellary-plant/90150/on)

Krishnamoorthy, expansion of JSW steel plant to 16 million tons is as good as a new steel plant worth 25k-35 k crores.

So steel corridor is near to materializing so is cement industry and not to forget Hubli-Dharwad as the Auto hub.Truly North Karnataka is showing up.

K.V. Subramanya

CHICKBALLAPUR: Hutti Gold Mines Company Ltd. (HGML) has taken up a detailed survey to ascertain the extent of gold deposits in a village in Bagepalli taluk of Chickballapur district.

The survey was undertaken after preliminary laboratory analysis reports, two months ago, had indicated the presence of gold in the soil samples collected from Kapuchinnapalli village in Bagepalli taluk.

Sources in the Department of Mines and Geology told The Hindu here on Thursday that a team of scientists from HGML in Raichur district recently visited Kapuchinapalli for the survey. The team collected 72 soil and rock samples from an area spread over 1sq.km. in the vicinity of the village. The detailed survey would ascertain the origin, the extent and the quality of the gold available in the particular belt to confirm whether it would be economically viable to take up gold mining in the area, sources said.

Sensitive issue

HGML, sources said, had decided to keep its findings confidential as the matter was a sensitive one. The Department of Mines and Geology was also awaiting a report from the Indian Bureau of Mines (IBM).

After the preliminary soil sample analysis conducted at the Department of Mines and Geology laboratory in Bangalore, the samples were sent for further tests to the IBM and HGML.

Gold content was found in the soil samples collected from land bearing survey number 141/4 in Kapuchinnapalli, situated six km northeast of Bagepalli town on Guloor Road. The said land belongs to Byra Reddy, a marginal farmer. The possible presence of gold in the soil came to light in December last after bricks burnt at Byra Reddy's kiln glittered. The farmer found that the physical features of the soil were unusual, and he took soil samples to the Department of Mines and Geology in Chickballapur for testing.

Kapuchinnapalli, which was part of the erstwhile undivided Kolar district, is situated around 120 km north of Kolar Gold Fields (KGF). Bharat Gold Mines Ltd., which had gold mines at KGF, closed operations in April 2000.

The Hindu (http://www.hindu.com/2010/04/02/stories/2010040262501400.htm)
Jogada siri Belakinali.........Nityotsava Nityotsava Rightly said Karnataka is back again with Gold.

Staff Correspondent
http://www.hindu.com/2010/04/06/images/2010040651280601.jpg
A file photo of the cold rolling mill complex at JSW Steel at Tornagal in Bellary district.

TORNAGAL (BELLARY DISTRICT): Steel major JSW in Tornagal in Bellary district, which is on an expansion spree, has drawn up plans to produce 16 million tonnes of steel per annum.

Giving this information to The Hindu here on Monday, Vinod Nowal, Chief Executive Officer of JSW, said that the present production was around seven million tonnes per annum and work to increase production to 10 million tonnes was on in full swing.

“We plan to achieve 10 million tonnes by March 2011. In addition, we have planned to take up the expansion programme to produce around 16 million tonnes per annum (MTPA) for which we have obtained clearance from the State High Level Committee,” he said.

The JSW has invested around Rs. 40,000 crore for an eco-friendly integrated steel plant that has come up on 7,000 acres of land.

An estimated Rs. 10,000 crore was being pumped in to increase production to 10 million tonnes. An additional Rs. 25,000 crore would be invested to take the annual production of steel to 16 million tonnes per annum, he said. Dr. Nowal said that JSW ranked eighth among the 32 steel plants in the world surveyed by the World Steel Dynamics keeping in view 23 parameters.

Dr. Nowal also said that JSW was the only steel plant which was using low grade (56 to 58) iron ore available here for producing steel. According to him, JSW had adopted a new technology to make use of low grade ore, through beneficiation and mixing it with high grade (63 plus) ore that would help expand the life of mines in the district by at least three folds going by the present rate of extraction (38 million tonnes during the year 2009-10).

JSW has planned to create awareness among the mine owners to extract all grades of ore and the company was ready to procure them.

With regard to water requirement for its expansion programme, Dr. Nowal said that in addition to the 32 million gallons per day (mgd) from the Tungabhadra Dam, the State Government had allotted 40 mgd from the river Krishna at Alamatti.

The work of laying the 180-km pipeline to draw water, at an estimated cost of Rs. 800 crore, was in progress. It was expected to be completed in June/July this year.

The Hindu (http://www.hindu.com/2010/04/06/stories/2010040651280600.htm)

A technical team from South Korean steel major Posco would visit Karnataka soon for exploring mining linkages to its proposed Rs 32,300 crore steel plant in the state.

A Karnataka delegation, led by Minister for Large and Medium scale Industries, Murugesh R Nirani, met top management executives of Posco at the company headquarters in Seoul, an official statement said here today.

"They (the executives) expressed their happiness for having approved the projects for establishment of six million tons per annum integrated steel plant with finex technology in Karnataka with investment of Rs 32,300 crore," it said.

They held discussions on the investment plan and mining lease for their unit, and informed that they would be sending a technical team to Karnataka for exploring mining linkages.

The minister assured the company all support from Karnataka government for establishing their plant.

The delegation is in Seoul as part of Karnataka's roadshow for the Global Investors' Meet to be held here on June 3 and 4.

BS (http://www.business-standard.com/india/news/posco-team-to-visit-karnataka-to-explore-mining-linkages/90451/on)

M. Ahiraj

‘It will help minimise the dependence on road transportation'

BELLARY: JSW, a steel major having a multi-crore mega integrated steel plant in Tornagal in Bellary district, has volunteered to lay three new rail lines on private-public partnership (PPP) model in the district to minimise the dependence on road for movement of iron ore.

A proposal has been sent to the Railways and also to the State Government for approval, according to Vinod Nowal, Chief Executive Officer of JSW.

The three new rail lines proposed are between Sushilnagar and Bannihatti (one of the loading points), Kumarswamy, Nandihalli and Bannihatti and Daroji and Swamyhalli.

Sandur and Hospet taluks in Bellary district have rich deposits of high-grade iron ore. Lakhs of tonnes of ore from the region is being transported to various parts of the country by rail and also by road.

As the bulk of ore is transported by lorries, roads in Sandur and also in other parts of the district have been severely damaged. The dust pollution has led to health hazards and there has been an increase rise in the number of road accidents.

“If the three new rail lines are laid, it would help minimise the dependence on road for transportation of ore. It will help prevent damage to roads while bringing down the level of pollution, besides saving diesel. With this in mind, we have sent a proposal to the Railways and the State Government,” he said.

JSW has also come forward to improve a stretch of the State Highway No 40 between Kudligi-Tornagal, including the bypass to Sandur, the National Highway 63 between Hospet (including the bypass) and Bellary.

It has proposed to lay a new road from Bannihatti to Sultanpur, linking the National Highway 63 near Bellary Thermal Power Plant (BTPS) on private-public partnership model.

The Hindu (http://www.hindu.com/2010/04/07/stories/2010040763490500.htm)

Press Trust of India / Mumbai April 7, 2010, 16:41 IST

Homegrown steel major JSW Steel today said it earmarked a capex of Rs 7,000 crore for the current financial year and plans to increase capacity of its Bellary plant in Karnataka from 7 million tonne per annum (mtpa) to 10mtpa by the end of this year.


"We have earmarked Rs 7,000 crore as our capex for the current financial year," JSW Steel joint managing director and group chief financial officer Seshagiri Rao told reporters on the sidelines of a function organised by Dun and Bradstreet here today. "We will also be increasing the capacity of our Bellary plant from 7mtpa to 10mtpa by the end of this fiscal," he added.

Group chairman Sajjan Jindal had earlier announced that the company would first increase capacity to 10mtpa and then up it further to 16mtpa over the next three years.

The company would require 5mt coal for the year, Rao said. "We need 5mt coal, both semi-hard and hard and have tied up with companies for volumes," he said, adding the company is looking at acquiring coal mines in Australia, South Africa, the US and Canada.

Rao further said there is a strong raw material cost pressure at present.

When asked whether the Maoist issue is affecting the company, he said, "the Maoist issue is a concern...The challenge is there".

He said the company would go ahead with its West Bengal project for which it has set up a special purpose vehicle called JSW Bengal Steel.

BS (http://www.business-standard.com/india/news/jsw-steel-plans-rs-7000-cr-capex/90573/on)

Higher cost of tie-up with private firm pushes PSU into fellow PSU’s arms

KIOCL Ltd, a 100 per cent export-oriented unit under the ministry of steel and mines, has dropped plans to go with a private firm for setting up a Rs 330 crore ductile iron spun pipe (DISP) plant in Mangalore as part of its diversification programme.

The company, instead, has decided to form a 50:50 joint venture with the Rashtriya Ispat Nigam Limited (RINL), the flagship company of the Visakhapatnam Steel Plant to set up the plant in Mangalore with a capacity of 100,000 tonnes per annum.

“We have dropped the plans to go with the private firm due to the higher cost, and also with the thought of roping in another PSU. Meanwhile, RINL has shown interest in joining us for the project. We have already discussed about this with the CMD of RINL and he has agreed to a JV. The boards of both companies will meet shortly and approve the JV formally,” K Ranganath, chairman-cum-managing director, KIOCL said.

KIOCL plans to build the DISP plant adjacent its existing pig iron plant in Mangalore on the west coast. The proposed plant will utilise the superior pig iron with low phosphorus and low sulphur, already produced by the company.

KIOCL had floated global tenders for this project twice in the last two years and both the occasions, Larsen & Toubro had emerged as the L1 bidder. But last week the KIOCL decided to drop the plan of going with the private player to build the DISP plant, he said.

“The main reason for dropping the earlier plan was purely on the grounds of high cost involved in it. At this juncture, when we don’t have captive iron ore mines, we did not want to invest a higher amount. The proposed JV requires us to invest only Rs 150-175 crore as equity and works out better for us,” Ranganath told Business Standard.

He said the company would form a separate company to take up the project with RINL. Apart from selling the ductile iron spun pipes in the domestic market, the JV company will also export to European countries as there is a big demand for it. “We already have a captive jetty at New Mangalore Port and it will be cost-effective for us to export our products,” he said.

L&T had quoted around Rs 330 crore for the ductile iron spun pipe plant. The KIOCL board will meet early next week to approve the proposal formally, he said.

KIOCL, as of March 31, 2009, had a cash reserve of Rs 1,468 crore.

Ductile iron spun pipes are used in advanced and developing countries because of its superiority over cast iron spun pipes. Even in India, there is a huge demand for spun pipes from various state governments, urban development bodies. They are used in irrigation projects, drinking water supply and sewerage projects and other large infrastructure projects.

BS (http://www.business-standard.com/india/news/kiocl-mulls-jvrinl-for-rs-330-crore-plant/391314/)

Mumbai: Tata Steel and NMDC, the country’s largest private sector steelmaker and largest iron-ore miner, respectively, will team up to develop the latter’s two steel projects in Karnataka and Chhattisgarh.

The companies had signed a memorandum of association on January 22 for a possible strategic alliance.

But now sources told DNA Money that they have started initial talks
on the nitty gritties of projects. The companies have formed a joint steering committee for developing the plants.

Rana Som, chairman cum managing director, NMDC, said the public sector miner is assessing opportunities. “No, nothing has been decided as yet. We have formed a committee and I can’t say anything until the process is complete,” he told DNA.

Som, however, confirmed that the Tata’s could be the partner for the proposed plant at Bellary in Karnataka. “The fate of the Bellary steel plant depends on when the iron ore mines are given to us by the government. Till then the project is in limbo. Once we are given linkages, we will look for a partner, and Tata Steel definitely will be given a priority and it would make for a very stable partner.”

An e-mail sent to Tata Steel on April 7 remained unanswered, but sources close to the talks confirmed that building the steel plants with NMDC is high on the agenda.

“Yes, talks are on and Tata Steel is keen to join NMDC in building its 3 million tonne steel plant in Jagdalpur, Chhattisgarh,” a Tata Steel official said.

A tie-up will be useful for both companies. Tata Steel is looking to enhance its iron-ore resources and wants to develop technology for using lower grades of iron ore.

NMDC, on the other hand, is looking beyond its iron-ore business and wants to establish its presence in steel-making.

After the January deal, Tata Steel had said in a statement, “Both NMDC and Tata Steel have agreed to co-operate to explore possibilities of entering into joint ventures for the purpose of acquisition, exploration and development of mines, extraction and processing of minerals, setting up integrated steel plants and any other business which is of mutual interest to both organisations.”

It added that it’s a wonderful opportunity for both companies to work together, given that the steel policy talks of doubling capacity over the next decade. “Tata Steel and NMDC plan to jointly address mining and steel-making opportunities,” the statement said.

NMDC is looking to set up a 3 million tonne steel plant in Jagdalpur district of Chhattisgarh at an estimated cost of Rs 16,781 crore.

The company has obtained the environmental clearance for the project and land acquisition is underway.

Out of the 1775 acres required, NMDC has acquired around 1000 acres of land and hopes to complete the project in four years time from the day of beginning the construction.

In Karnataka, the state government has offered 2500 acres of land in the Bellary/Hospet area to NMDC. The iron ore miner will be building the first phase of a 2 million tonne plant at a cost of Rs 10,000 crore.

However, iron ore mine linkages are not offered as yet and NMDC is not ready to begin construction till the mines are allocated.

DNA (http://www.dnaindia.com/money/report_tata-nmdc-set-to-build-steel-plants_1369101)

Karnataka plans to freeze iron ore exports by 2013 (http://www.steelbb.com/us/?PageID=157&article_id=74723)

Mahesh Kulkarni / Chennai/ Bangalore April 10, 2010, 0:44 IST

Higher cost of tie-up with private firm pushes PSU into fellow PSU’s arms.

KIOCL Ltd, a 100 per cent export-oriented unit under the ministry of steel and mines, has dropped plans to go with a private firm for setting up a Rs 330 crore ductile iron spun pipe (DISP) plant in Mangalore as part of its diversification programme.

The company, instead, has decided to form a 50:50 joint venture with the Rashtriya Ispat Nigam Limited (RINL), the flagship company of the Visakhapatnam Steel Plant, to set up the plant in Mangalore with a capacity of 100,000 tonnes per annum.

“We have dropped the plans to go with the private firm due to higher cost, and also with the thought of roping in another PSU. Meanwhile, RINL has shown interest in joining us for the project. We have already discussed this with the CMD of RINL and he has agreed to a JV. The boards of both companies will meet shortly and approve the JV formally,” K Ranganath, chairman-cum-managing director, KIOCL, said.

KIOCL plans to build the DISP plant adjacent to its existing pig iron plant in Mangalore on the west coast. The proposed plant will utilise the superior pig iron with low phosphorus and low sulphur, already produced by the company.

KIOCL had floated global tenders for this project twice in the last two years and on both the occasions, Larsen & Toubro emerged as the L1 bidder. But, last week KIOCL decided to drop the plan of going with the private player to build the DISP plant, he said.

“The main reason for dropping the earlier plan was purely on the grounds of high cost involved in it. At this juncture, when we don’t have captive iron ore mines, we did not want to invest a higher amount. The proposed JV requires us to invest only Rs 150-175 crore as equity and works out better for us,” Ranganath told Business Standard.

He said they would form a separate company to take up the project with RINL. Apart from selling the ductile iron spun pipes in the domestic market, the JV company will also export to European countries as there is a big demand for it.

We already have a captive jetty at New Mangalore Port and it will be cost-effective for us to export our products,” he said.

L&T had quoted around Rs 330 crore for the ductile iron spun pipe plant. The KIOCL board will meet early next week to approve the proposal formally, he said.

KIOCL, as of March 31, 2009, had a cash reserve of Rs 1,468 crore.

Ductile iron spun pipes are used in advanced and developing countries because of its superiority over cast iron spun pipes.

Even in India, there is a huge demand for spun pipes from various state governments, urban development bodies. They are used in irrigation projects, drinking water supply and sewerage projects and other large infrastructure projects.


BS (http://www.business-standard.com/india/news/kiocl-mulls-jvrinl-for-rs-330-cr-plant/391376/)

TNN, Apr 15, 2010, 10.11pm IST

BIJAPUR: Industries minister Murugesh Nirani has said that two steel factories will be set up in the twin districts of Bijapur and Bagalkot within three years.

Addressing reporters for the first time after taking charge as the district minister here on Wednesday, Nirani said two big companies have come forward to set up the factories. "Each factory, to be set up at a cost of Rs 30,000 crore, will have a production capacity of 6 million tonnes. About 4,000 acres of land will be given to set them up. Around 50,000 people will be given jobs there," he added.

Speaking on the mega Food Park proposed near Ittangihal village, the minister said nearly 75 acres of land have been reserved for the purpose. Nirani said the land acquisition process has commenced for the airport proposed near Buranpur village. Around 727 acres have been earmarked and Rs 29.56 crore has been released for the project, he added.

TOI (http://timesofindia.indiatimes.com/city/hubli/Steel-factories-in-Bijapur-Bagalkot/articleshow/5804775.cms)

T.S. Ranganna

The company decides to sink a new shaft at a cost of Rs. 204 crore

The new shaft can carry 100 workers at a time

Horizontal digging to be taken up to extract gold

BANGALORE: Hutti Gold Mines Company Ltd. (HGML), one of the few profit-making State government undertakings, has decided to sink a new main circular shaft at its mines in Lingsugur taluk of Raichur district at a cost of Rs. 204 crore. It had obtained the State Government's approval for it.

Managing Director of the company V. Chandrasekhar told The Hindu that the shaft would help increase gold ore production from five lakh tonnes to six lakh tonnes through improved mechanisation and productivity. The company produces 2.5 tonnes of gold a year and the extra one lakh tonne ore would yield another 500 kg of gold.

HGML is the country's only gold mining company and India produces the lowest quantity of all gold producing nations. HGML is a member of the World Gold Council.

Dr. Chandrasekhar said that the Central Mine Planning Development Institute, Ranchi, would prepare the tender documents.

The company would seek global competitors for the task.

The process of tendering and selection of the contractor would take three months.

The main work of digging the six diameter shaft would begin.

According to General Manager M.L. Patil, the company has three shafts, all of smaller diameters that can lower up to 16 workers at a time into the mine.

Dr. Patil said the proposed shaft would accommodate 100 persons at a time. At every 100 feet in the new shaft, horizontal digging would be undertaken to approach other shafts, so that gold ore in between with more yield could be collected.

Dr. Chandrashekar said it was launching surface exploration by trenching, geophysical and geochemical survey at Ajjanahalli, Muttagadahalli, Ambarapura, Hosahalli, Haragondana Halli, Barasiddana Halli and Kotegalla in Tumkur district, two places in Ingaldal and Guddada Rangana Halli in Chitradurga district, Kudurekonda (Kulehalli), Palavana Halli (Kodekoppa) and Hire Gonigere in Shimoga district, Chinmulgund and Kengod-Kalledevar in Haveri district and Hutti-Maski schist belt blocks in Raichur district.

Dr. Chandrasekhar said that these regions might yield only a small quantity, but for the company, an yield of even two grams of gold was worth setting up mining operations. HGML earned a net profit of Rs. 95 crore in 2009-10.

The company donated Rs. 32 crore for constructing houses for flood-affected families in Lingsugur taluk. It bagged the Chief Minister's Rathna Award with a cash prize of Rs. 99,999 in 2009-10 and had been adjudged one of the 10 best managed State undertakings.

The Hindu (http://www.hindu.com/2010/04/17/stories/2010041756800400.htm)

JSW House, Karnataka

http://img512.imageshack.us/img512/1505/jswh.jpg (http://img512.imageshack.us/i/jswh.jpg/)

http://www.burthill.com/projects/pages/jsw_office_tower

Looks like having 17 floors? Location Bellary? If so deserves a separate thread.

JSW Corporate Office Tower
JSW Steel Limited
Karnataka, India
200,000 square feet

The office tower is located on the grounds of the largest steel manufacturing facility in India. It will house all departments and offices associated with the production facilities for JSW. The tower will serve as a beacon from miles away, welcoming the plant's many visitors from all over India and abroad and offering panoramic views of the surroundings. JSW corporate office is at Bellary

http://www.burthill.com/FILES/projects/413_x_550/Karnataka_main.jpg

http://www.burthill.com/FILES/projects/733_550/Karnataka_4.jpg



Krishnamoorthy JSW's biggest Steel plant in India is in Bellary,Karnataka.So no doubt the tower will come up in Jindal Bellary plant.

The site mentions its in Karnataka so it has to be Bellary only.:banana:

ArcelorMittal confident India projects will take off soon

Press Trust of India / New Delhi April 30, 2010, 17:15 IST

Months after mounting a blistering attack on the Indian system of governance that prevented big ticket projects, global steel giant ArcelorMittal today exuded confidence that its mega Rs 1.30 lakh crore investment would take off soon as some states were very "proactive".

"There is a light. We are coming nearer the light. Overall I am seeing the light. I do not know which one will start whether Karnataka or Jharkhand," ArcelorMittal CEO L N Mittal told PTI when asked if he was still pessimistic about his projects taking off in India.

The company is also working on a project in Orissa.

"I am satisfied with the progress what we have made in Karnataka...Let's hope," he said when asked if the world's largest steel maker could shortly sign a Memorandum of Understanding for the steel project in Karnataka.

"Karnataka is definitely moving very fast. I am pleased with the progress we have made so far. We have tremendous cooperation from politicians and bureaucrats."

ArcelorMittal had entered into a pact with Jharkhand government way back in 2005 to set up a steel plant with an annual production capacity of 12 million tonnes. It unveiled similar plans for Orissa in 2006.

However, the plans have failed to take off till now amid problems in land acquisition and regulatory hurdles. Faced with inordinate delays, the world's largest steel maker had earlier this year expressed interest for setting a Rs 30,000 crore steel plant in Karnataka.

At present, the company is in the process of finalising a site for the proposed plant. The state government in January had expressed hope that an agreement could be reached with the steel giant by June this year for building the steel plant.

"I find that few state governments are very proactive. They like to help us to make progress in our projects. They are taking a lot of correct decisions. They have expedited the approvals. They also do not like to be defamed in the media.

"They do realise that investments are important and they have to come quickly or swiftly otherwise capital allocation will change. I have been saying to all the governments that if you will process our plans faster than our capital allocation will stay in your country otherwise our capital allocation could move to different countries," he said.

In February this year, Mittal had slammed administrators in India for not being equipped to handle big ticket investments.

In the meanwhile, to mark its first operational presence, ArcelorMittal entered into a partnership with domestic firm Uttam Galva. At present, it is scouting for more such partnerships to grow its business locally.

PTI-BS (http://www.business-standard.com/india/news/arcelormittal-confident-india-projects-will-take-off-soon/92962/on)

Surya Roshni to set up steel pipe plant in K'taka
Press Trust of India / Chandigarh May 12, 2010, 14:05 IST

Diversified business entity Surya Group today said that it will set up a new steel pipe plant, with an expected investment of Rs 50-60 crore, in Karnataka by the end of this year.

This project is in sync with the company's plans to attain sales to the tune of Rs 3,500 crore from its steel business by 2012.

“We have decided to set up a steel pipe facility in Karnataka, which may involve a capital infusion of Rs 50 to 60 crore,” Surya Roshni executive director Utkarsh Dwivedi today told PTI, adding that the plant's location is expected to be finalised by next month.

“The main objective behind having a plant in Karnataka is to consolidate our southern markets, such as Andhra Pradesh, Chennai and Bangalore, where we have a strong presence in the steel pipe business,” he said.

The new plant would be the company’s fourth steel facility. Post-expansion, the total capacity of its steel pipe business is expected to touch eight lakh tonnes per annum.

“The Karnataka plant will have a production capacity of 1 lakh tonnes per annum,” he said.

Surya Group currently has steel pipe facilities in Bhuj (Gujarat), Gwalior (Madhya Pradesh) and Bahadurgarh (Haryana), with an annual manufacturing capacity of seven lakh tonnes. The company manufactures GI and ERW pipes for various sectors, including infrastructure, real estate and the oil and gas industry.

BS (http://www.business-standard.com/india/news/surya-roshni-to-setsteel-pipe-plant-in-k%5Ctaka/94045/on)

ArcelorMittal’s mega project on track
Ajith Athrady, New Delhi, May 13, DHNS:

Global steel giant ArcelorMittal’s proposed multi-crore steel plant for Karnataka is gathering pace with the State government issuing final notification to acquire 5,000 acres of land at Kudutini in Bellary district.

“The State government issued final notification on May 7 and soon the job of measuring the land will jointly carried out by the department of survey and land owners,” Murugesh Nirani, State Heavy Industries Minister told Deccan Herald here on Wednesday.

A committee headed by Bellary deputy commissioner will decide on the compensation to be paid to the land losers. The Government has proposed to give 20 per cent above the current market value, as compensation. Besides, the Government will also ensure that one person from each land losers’ family gets a job in the upcoming plant, he said.

Of the 5,000 acre land, 4,000 acres will be given to the company and the remaining will be set apart for township and ancillary units.

The company has already paid Rs 60 crore to the Government towards the cost of the land as the first installment and has agreed to pay the rest of the amount, once the remaining process of acquisition is completed, which is likely to take place by this month-end.

Chief Minister B S Yeddyurappa has invited ArcelorMittal Chairman Lakshmi Mittal as the chief guest for the Global Investors’ Meet scheduled in the first week of June. The State government hopes to enter into an agreement with ArcelorMittal during the event.

DHNS (http://www.deccanherald.com/content/69386/arcelormittals-mega-project-track.html)

India’s third uranium mining unit at Gogi
Srinivas Sirnoorkar, Gulbarga, May 13, DHNS:

The Uranium Corporation of India Ltd (UCIL), a Government of India enterprise under the Department of Atomic Energy is all set to start the long-awaited uranium mining at Gogi in Shahapur taluk of Yadgir district.

After having successfully carried out a series of field trails the UCIL has now come to the final stage and the uranium processing unit will be established at the nearby Diggi village.

Based on positive results of exploration activities performed near Gogi, UCIL has prepared a feasibility report and has sent a proposal to the Centre seeking clearnace for putting up a 500-TPD (tonnes per day) mine and a uranium processing unit, UCIL Executive Director N M Bahl has stated in a communication to Ramannagouda Kollur, a resident of Gogi.

The actual mining and processing of uranium is likely to start in about two years after completing all the formalities. Uranium deposits sufficient for mining for a period of 15 years are available in Gogi. In future, UCIL plans to utilise the uranium deposits in the Bhima belt from Sedam in Gulbarga to Muddebihal in Bijapur.

Unit to cost 550 crore

The Gogi unit, estimated to cost Rs 550 crore, is expected to make the country self-sufficient in uranium. The clearances from the State and the Central governments are expected to be obtained in October this year. Gogi uranium unit is the third in the country, after Jadugudd in Jharkhand and Pulivendula in Andhra Pradesh.

Rich uranium deposits have been found in the Gogi belt covering the villages of Gogi, Ukkinal, Darshanapur in Shahapur taluk, and Thinthini and other places in Surapur taluk. Uranium processed here will be used for defence and power generation purpose.

The UCIL has sent a proposal for acquiring 200 acres of land of Saidapur and Umaradoddi villages and 4 (1) notification has already been issued. The site surrounded by hillocks on three sides is stated to be ideal for processing. In Gogi village trial mining has been done in an area of 4.27 acres.

DHNS (http://www.deccanherald.com/content/69372/indias-third-uranium-mining-unit.html)
I am posting the yellow metal news here :)

http://www.thehindubusinessline.com/2010/04/29/stories/2010042951792100.htm
‘Water, a major hurdle to Karnataka's industrialisation'

Govt to encourage water harvesting and recharging.

— G.R.N. Somashekar

Inviting global investments:Mr Aroon Raman, Chairman, CII Karnataka State Council (left), and Mr Murugesh Nirani, Minister for Industries, at a press conference to announce the Global Investors' meet in Bangalore on Wednesday.

Our Bureau

Bangalore, April 28

The Karnataka Government has identified water as the biggest problem area, ahead of power, as it seeks to invite global investment in steel, investment, pharmaceuticals, food processing, textiles, mining and power.

Addressing newspersons here on Wednesday on preparations for the Global Investors' Meet (GIM) to be held on June 3-4, Principal Secretary, Commerce and Industries, Mr V.P. Baligar, said, “Water will be a big issue, not power. But we are trying to find innovative solutions.”

Steel projects need lot of water. Andhra is better positioned here.

The Karnataka Government expects to hand-over the required 4,800 acres of land to Arcelor Mittal for setting up a six-million-tonne steel plant near Bellary, ahead of the Global Investors Meet (GIM) in the first week of June.

“The government has issued a final notification on May 7 for acquiring 4,800 acres of land near Kudthini in Bellary district. We expect to complete all the formalities and hand over the land to Arcelor Mittal ahead of the GIM,” the Karnataka Industries Minister, Mr Murugesh Nirani, said Thursday. The two day event being organised by the state begins on June 3. The state government would pay compensation higher than the market price to those whose land is being acquired, Mr Nirani said. The compensation price would be soon arrived at taking into consideration the market price and the government price for past three years, he said. Besides, the company has agreed to provide employment to a person from each land losing family, he added.

Arcelor Mittal, which proposes to invest Rs 30,000 crore in the proposed integrated steel plant near Kudithini, has already deposited Rs 60 crore with the State Government towards the land acquisition costs, Mr Nirani said.

During the meet, the state government expects to sign memorandum of understanding with Arcelor Mittal and over 100 other companies such as Lafarge, Surya Roshni and Hero Honda that are keen on investing in the state. The cumulative investment proposal of these companies exceeds Rs 3 lakh crore.

Nearly a third of the new investment proposals were in iron and steel, followed by cement and energy sectors. The government also proposes to set up a financial district near the Bengaluru International Airport at Devanahalli, Mr Nirani said.

IFCI, which has shown keen interest in the concept, has been asked to form a consortium to set up the proposed financial district spread over an area of 150 acres, he added.

Business Line (http://www.thehindubusinessline.com/2010/05/14/stories/2010051451550300.htm)

ArcelorMittal may buy Bellary Steels - Report (http://www.steelguru.com/news/index/MTQ2MjQ1/ArcelorMittal_may_buy_Bellary_Steels_-_Report.html)
Bellary has about 1,150 acres and its purchase will give the world’s largest steel maker a head start in Karnataka, where it plans to set up a 6 million tonnes per year steel plant.


Arcelor Mittal's project in Karnataka very much on: Minister (http://www.hindustantimes.com/Arcelor-Mittal-s-project-in-Karnataka-very-much-on-Minister/Article1-545819.aspx)

Japan steel maker's plan to buy stake in JSW comes close (http://www.business-standard.com/india/news/japan-steel-maker%5Cs-plan-to-buy-stake-in-jsw-comes-close/395411/)

ArcelorMittal pays up to acquire land in Bellary
Bangalore: May19, DH News Service:

Steel giant ArcelorMittal has deposited Rs 268 crore with the State Government to acquire land for its proposed steel plant in Bellary district, Industries Minister Murugesh Nirani said on Wednesday.

ArcelorMittal, which has come up with a project to invest Rs 32,000 crore for setting up a six million tonne per annum capacity steel plant, recently deposited Rs 208 crore with the KIADB. The company had initially deposited Rs 60 crore for acquiring 4,800 acre at Kudathini in Bellary district, he added.

Nirani also said the Government has promised to grant mining leases to the company to meet nearly 50 per cent of its iron ore requirement, besides ensuring water and other facilities.
DHNS (http://www.deccanherald.com/content/70484/arcelormittal-pays-up-acquire-land.html)

May 25: Mining baron turned minister G Janardhan Reddy , who is hoping to transform the mineral rich district of Bellary into a major steel hub of the country , is looking at the soon to be held Global Investors' Meet (GIM) to pave the way. He exuded confidence on Tuesday that Bellary would corner a major chunk of the Rs 2 lakh crore investment expected to pour into the state during the event slated for June 3 and 4 in Bengaluru

The minister felt Bellary was bound to be on the radar of biggies like ArcelorMittal and South Korean steel major Posco and the country's own JSW Steel would expand its capacity from 6.8 million tonnes to 16 million tonnes per annum in a couple of years in the district. To make sure that investor interest remained high in Bellary the newly formed Vijayanagar Area Development Authority (VADA), covering the Bellary-Sandur-Hospet mining belt, would act as a single window agency to allow companies easier access to land, water and power in the district, he explained.

Mr Reddy, who is setting up his own plant, Brahmini Steels in Kadappa, Andhra Pradesh, announced he planned to set up a steel plant in Bellary district as well to do his bit for its development as a steel hub.

Meanwhile, industry sources said Posco was trying to secure iron ore mining licences before zeroing in on the site for its proposed integrated steel plant in the state. The company is expected to pump in Rs 32,300 crore to establish a steel manufacturing facility producing 6 million tonnes per annum (mtpa) in Karnataka while ArcelorMittal is supposedly planning to invest Rs 30,000 crore on a similar capacity plant on 4,900 acres in Kudithini village, where land has already been notified for its benefit by the government. The company is said to have deposited Rs 208 crore with the authorities for the required land.

Dr Vinod Nowal, director and CEO, JSW Steel maintained that all existing steel plants should be assured 30 years' supply of iron ore from the existing reserves to be able to carry on their operations without interruption. “Sanctioning of steel plants without taking into account the long term availability of their iron ore resources is too risky,” he added.

Deccan Chronicle (http://www.deccanchronicle.com/bengaluru/bellary-will-be-steel-hub-reddy-948)

Mandya: Welspun eyes June start for new spiral-weld pipe mill (a greenfield 100000 tonnes/year helical submerged arc welded (HSAW) pipe plant ) (http://www.steelbb.com/us/?PageID=157&article_id=76489)

Suzlon Energy expects its steel requirement to rise to 1.5 million tonnes annually from the present 0.5 million tonnes over the next 3-4 years, a top company official said today.

"We are expecting our steel requirement to increase from 0.5 MT to 1.5 MT annually over the next 3-4 years. It will be utilised for our own requirements in India and Germany," Suzlon's Chief Financial Officer Robin Banerjee told reporters on the sidelines of an industry conference here.

The company, which currently imports steel to manufacture wind turbines, expects the quantum to rise proportionately with a rise in manufacturing capacity, he said.

Suzlon requires 85 tonnes of steel plate for every mega watt of wind turbine capacity it manufactures. As on January 30, the wind turbine-maker had an order book of 1,460 Mw or Rs 8,128 crore.

The firm has received approval from the Karnataka government to set up an integrated steel plant but has not yet been allotted iron ore mines, Banerjee said. Earlier, the company invested around Rs 50,000 crore to set up an integrated steel plant in Bijapur district of Karnataka.

BS (http://www.business-standard.com/india/news/suzlon-sees-its-steel-demand-rising-threefold/95759/on)

I think in the last sentence it should be 'interested in investing' instead of 'invested'.

State govt declines to give written commitment on allotment of iron ore mines to the steel giant.

Posco is unlikely to set up a steel plant in Karnataka, as the state government has not accepted certain conditions put forth by the South Korean steel giant.

Posco had sought a written commitment from the state government on the allocation of iron ore mines, land and water required for setting up its 6 million tonne per annum (MTPA) plant before selecting a location.

The govt could not give written commitment and it was open to treat all the applicants on equal footing, said Murugesh R Nirani, minister for large and medium industries, Karnataka. “Posco officials had asked us to give advance commitment on the allocation of water, land and iron ore required for setting up their plant. We told them that we couldn’t give them preferential treatment keeping other applications pending. We have assured them that we will treat all the applicants equally and give the same kind of facilities to all applicants like the Tatas, ArcelorMittal and Bhushan Steel.”

The Karnataka government has already given an in-principle approval to Posco for setting up its steel plant at an investment of Rs 32,300 crore in the Bellary-Hospet steel corridor.

Nirani said the company was yet to give consent on participating at the global investors’ meet, organised by the state government on June 3 and 4. “This does not mean that they will not come to invest in the state. But going by the current indications, we are not sure of their investment in the state. ArcelorMittal has already shown firm commitment to invest in the state by depositing Rs 270 crore to acquire land for their project,” Nirani told Business Standard.

“I personally feel that Posco may not participate at the global investors’ meet scheduled for June 3 and 4.”

An official spokesperson of Posco India Pvt Ltd said: “We are looking at business opportunities across many states. We have also visited Karnataka a few months ago on the invitation from the state government. But, we have not selected any location for setting up the steel plant there.” He, however, refused to divulge any further details on their prospects of investing in Karnataka.

During Nirani’s recent visit to South Korea to conduct roadshows for global investors’ meet, senior management officials of Posco informed him that the company would send a team of technical officials to Karnataka to finalise the location for their proposed 6 MTPA integrated steel plant in April. However, the company is yet to visit the state to finalise the location.

He said the state government was in the process of working out a mechanism for allotment of land, water and iron ore to all the applicants who were looking at setting up steel mills in the state. “We have iron ore resources available for producing 45 million tonnes of steel per annum. We will make the allocation suitably,” he added.

BS (http://www.business-standard.com/india/news/posco-unlikely-to-invest-in-karnataka/11/15/396129/)

Karnataka Government will not entertain proposals for new steel and cement industries in the State, Industries Minister, Murugesh Nirani, said here on Saturday.

Even at the Global Investors’ Meet scheduled for June 3 and 4 in Bangalore, Memorandum of understandings (MoUs) will be signed only for those projects in these two sectors that have already been cleared.

Murugesh Nirani, who visited Deccan Herald office on Saturday, said there was no point in allowing more steel industries, as conserving natural resources–iron ore–was essential. Similarly in the cement sector, the Government had already cleared sufficient number of projects.

Asked whether South Korea-based Posco would invest in Karnataka, Nirani said the government would not entertain the company even if it was ready. Earlier, there was a proposal from the company for investment in the State.
The minister said the Government would give preference for domestic industrialists and was expecting to sign MoUs worth at least Rs four lakh crore. “Even if 60 per cent of investors set up industries, the State would get Rs 2.5 lakh crore. That is a huge investment,” he said.

Nirani also said that supplying power to new industries would not be a problem. Many mega projects, coming up in the state, would establish captive generation plants. As per a new rule, it was compulsory for private power generators to provide 30 per cent of the power they produce to the home state. The Government would benefit from this, he said.
The minister admitted there were some issues with providing water for industries. The Government was working out a module to lift water from the west-flowing rivers during the rainy season. Industries would be allotted parts of river courses for desilting. Besides, rainwater harvesting and water conserving mechanism would be made compulsory.

Inviting DH for the GIM, Nirani said top industrialists including Lakshmi Mittal of ArcelorMittal and Kumara Mangalam Birla of Aditya Birla group would attend the global meet. Mittal would land in a special flight and spend a few hours at the GIM.

The department had assigned senior IAS officers to accompany top industrialists during their stay in Bangalore.

DHNS (http://www.deccanherald.com/content/72371/karnataka-not-have-more-steel.html):lock:

Karnataka to discourage iron ore exports (http://www.business-standard.com/india/news/karnataka-to-discourage-iron-ore-exports/396577/) :cheers:

Karnataka, which is seeking huge investments in the iron and steel sector in the state through the global investors’ meet (GIM), aims to put a brake on export of iron ore from the state in the days to come.

The state has so far cleared 40 proposals in the steel sector. The state has a capacity to produce 45 million tonnes of steel per annum, Murugesh R Nirani, minister for large and medium industries, said.

“Our aim is to encourage value addition in the steel sector. Henceforth, we will allot iron ore mines to only those who will manufacture value-added products and sell finished products. There will be no more exports from the state,” he told reporters here today.

Presently, Karnataka is exporting around 45 million tonnes of iron ore annually and the revenues from this to the state by way of royalty and surcharge is about Rs 400 crore.


Posco may exit Karnataka project, Tatas seek entry (http://www.livemint.com/2010/05/31224811/Posco-may-exit-Karnataka-proje.html)
Tatas are keen on investing in Karnataka (http://www.business-standard.com/india/news/12-tata-group-firms-keeninvesting-in-karnataka/396578/)

BENGALURU: The mining barons, who brought Chief Minister B.S.Yedyurrappa's government to its knees by their revolt last november, are now seeking a pound of flesh from steel investments into Bellary.

The Yeddyurappa government as now directed all steel companies like Arcellor Mittal, Surya Roshini, Bhushan Steels to buy half of the iron ore from local exporters.

Read more on Sakal Times (http://www.sakaaltimes.com/SakaalTimesBeta/20100601/4823655455180208382.htm).

Bangalore, June 3 (PTI) Steel companies such as ArcelorMittal, JSW Steel Limited and Hazira Steel Limited today signed MoUs with the Karnataka Government for investment of more than Rs 1 lakh crore on new projects in the state.

ArcelorMittal, the world's biggest steel producer, proposed to invest Rs 30,000 crore on setting up a six million tonnes per annum integrated steel plant, along with a 750-MW captive power plant, in Bellary district. The project will generate employment for 10,000 locals.

The MoU was inked in the presence of Karnataka Chief Minister B S Yeddyurappa and the Chairman and CEO of ArcelorMittal, Lakshmi N Mittal, at the two-day Global Investors&aposMeet organised by the Karnataka government.

JSW Steel proposed to invest Rs 15,131.70 crore to enhance the installed capacity of its integrated steel plant in Bellary district from 10 MTPA to 16 MTPA, as well as set up a 600-MW captive power plant.

With a proposed investment of Rs 17,760 crore, Hazira Steel Limited plans to establish a plant for carbon steel products with a capacity of six million tonnes per annum in Bagalkot district.

In addition, Brahmani Industries Karnataka Limited plans to set up a Rs 36,000 crore integrated steel plant with six million tonnes per annum capacity and a captive power plant in Bellary district, which will generate employment for 25,000 people.

Furthermore, with an investment of Rs 24,000 crore, Surya Vijayanagar Steel & Power Limited proposed to set up a 6-MTPA steel plant with a 500-MW captive power plant in Bagalkot district.

At the inaugural session on the first day of the GIM, 29 companies signed 41 MoUs with the Karnataka government. These included Rajshree Cements' Rs 3,000 crore capacity expansion of its cement and captive power plants and Infosys Technologies Limited&aposs proposed Rs 2,250 crore software development centre. Wipro signed an MoU to set up a Rs 537 crore software development centre and employees residential facility here.

Speaking at the inaugural function, Chief Minister B S Yeddyurappa said:"Nearly 400 investors (all sectors put together) will be signing the MoUs with us today and tomorrow for implementation of their projects with an investment of over and above Rs 3.5 lakh crore and employment for about 6.5 lakh people

IndiaReport (http://www.indiareport.com/India-usa-uk-news/latest-news/838045/National/1/20/1)

NMDC Ltd -- India's largest iron ore miner by output -- said it plans to invest INR92 billion setting up a 5 million tons a year plant in the state. Chairman Rana Som said the company would seek a partner for the project, although it is wiling to go alone.

The telecom-to-petrochemicals conglomerate Essar group also plans to set up a 6 million tons a year steel plant in the state, with an investment of INR220 billion, Chairman Shashi Ruia said.

Mid-sized domestic company Bhushan Steel also signed an agreement to invest INR279.3 billion to build a steel factory.

Capital.gr (http://english.capital.gr/news.asp?id=983267)

BANGALORE: World's largest steelmaker ArcelorMittal will give priority to its steel project in Karnataka, as its two other similar projects in
Jharkhand and Orissa are bogged down by land issues and other approvals, a top company official said Thursday.

"If we see that our progress in Karnataka is ahead of others, our steel project in this state will get the first priority," ArcelorMittal chief executive Lakshmi N Mittal told reporters here.

As the company's steel projects in the other two states have been hanging fire over the last five years, Mittal hinted that priorities would change depending on the approvals and market development.

"What is happening is priorities will change depending on approvals and market development. Once we have made progress in Karnataka ahead of others, we may start here first and then wait and see what's happening in the other two states," Mittal said on the margins of the Global Investors Meet (GIM 2010).

Noting that progress on the steel projects in Jharkhand and Orissa was slow, Mittal said the company was facing a lot of issues in connection with land, environmental clearances and protests by civic bodies.

"There are lots of milestones to be achieved before we can say that we are happy with the progress in the other two states. In Jharkhand, we have started working on different land sites in the last few weeks," Mittal said but did not elaborate on the status of the steel project in Orissa.

On his maiden visit to this tech hub, Mittal signed an agreement with the state government to set up a six million tonnes per annum steel plant in the mining district of Bellary, about 300 km from here, at an estimated cost of Rs 30,000 crore ($6.5 billion).

"In Karnataka, we have already got the land allocation and we have been assured by the state government that other requirements will be processed speedily. That is why we believe that the progress here will be better," said Mittal.

Though the state government has allocated water for the proposed steel plant and a captive power plant at the site, the company is yet to have coal linkages.

"We have signed the MoU (memorandum of understanding) with the state government. We are at the preliminary stage of progress. The real progress has to be made now. We are also working with the state-run power corporation for the power project in joint venture," Mittal said.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Mittals-steel-project-in-Karnataka-to-get-first-priority/articleshow/6008129.cms)

LN Mittal looking at mining leases in Karnataka (http://beta.profit.ndtv.com/news/show/ln-mittal-looking-at-mining-leases-in-karnataka-68757?u=1531)

June 3 (Bloomberg) -- Essar Steel Ltd., India’s fourth- biggest producer, plans to invest 220 billion rupees ($4.7 billion) to build a steel plant in the southern state of Karnataka, Chairman Shashi Ruia said.

The plant will have annual capacity of 6 million metric tons, Ruia said today at a global investor conference in the state capital of Bangalore. The mill, to be located in Bagalkot district, will be commissioned in the year ending March 31, 2015, spokesman Manish Kedia said today.

Essar plans to add steel capacity as India spends 1.74 trillion rupees to set up road, port and power infrastructure by March. Steel demand is expected to grow at 9 percent this fiscal year as higher income pushes up demand for housing, cars and appliances, G. K. Basak, executive secretary of the steel ministry’s joint plant committee, said on April 6.

Essar aims to double production capacity to 14 million tons this calendar year, Chief Executive Officer Malay Mukherjee said on Feb. 16.

BW (http://www.businessweek.com/news/2010-06-03/essar-plans-to-spend-4-7-billion-in-india-steel-mill-update1-.html)

Essar through Hazira Steels.

The Surya Group of Companies today signed four MoUs with the Karnataka government at the Global Investors Meet for a total investment of around Rs 27,000 crore on projects related to steel, cement, power and lighting.

In Bagalkot district, Surya Vijayanagar Steel and Power plans to set up of a 6-MTPA integrated steel plant along with a 500-Mw captive power plant through an investment of Rs 24,000 crore.

In the Bagalkot and Gulbarga districts, Surya Vijayanagar Cement plans to set up a 5-MTPA slag and clinker-based cement Plant with an investment of Rs 2,690 crore.

In Shimoga District, Surya Global Steel Tubes is setting up a 2-lakh tonne ERW steel black and GI pipes plant.

In Shimoga, Surya Roshni will set up a fluorescent tube lights, CFL, GLS lamps, PCB and LED lamps manufacturing plant.

With the establishment of these four plants, Surya Group expects to generate employment for approximately 15,000 locals.

As part of its corporate social responsibility (CSR) activities, Surya Group will set up ITIs for vocational training at Shimoga and Bagalkot to impart industrial training to the people. It has also started adopting 500 villages in Karnataka, where it will impart education, health and other skill-building activities.

BS (http://www.business-standard.com/india/news/surya-groupcompanies-signs-four-mouskarnataka/96731/on)

Adhunik Metaliks (AML), one of the fastest growing steel manufacturers in the country, today signed a memorandum of understanding (MoU) with the government of Karnataka to set up a green-field steel plant at Deosugur village in Raichur district.

The plant will have a total capacity to produce 2.2 million tons of steel and auto-grade steel per annum and will be providing employment to about 5000 persons, directly and indirectly. It also plans to set up a 220 MW power plant for captive purpose.

The company plans to invest Rs 55.68 billion in this project. AML expects the steel plant to be operational within five years.

myiris (http://www.myiris.com/newsCentre/storyShow.php?fileR=20100603195215194&dir=2010/06/03&secID=livenews)

http://www.deccanherald.com/images/editor_images/June%202010/June%204%202010/steel-investors-meet.jpg
Steel industries are queuing up what about water and mining leases?? :?Lets wait and watch

Renuka Infra to invest Rs 12,000 cr
Bangalore, June 3,dhns:

Shree Renuka Infra Projects Limited will invest Rs 12,000 crore –– Rs 6,000 crore for a 1,000 MW power plant in Belgaum and Rs 6,000 crore into its 200 MT steel plant in Vijayanagara.

Executive Chairperson Vidya Murkumbi said the Government has already allotted 13,050 acre of land for the steel plant and 650 acre in Belgaum out of 2,000 acre requested.
While the steel plant is expected to be commissioned in the next three and a half years, she said the power plant would be commissioned in four years time. Further, the steel plant would be expanded to a capacity of 600 MTPA over time.

She said the investment is currently funded through internal accruals and the company will go in for an IPO soon. The firm would generate about 200 MW of captive power, of which about 100 MW would be sold to the power grid.

She further said group firm Renuka Sugars has bought a sugar firm for Rs 500 crore and is in the process of renegotiation to buy another one. Previous valuation of the deal under negotiation was at Rs 15,000 crore, she said.
DHNS (http://www.deccanherald.com/content/73267/renuka-infra-invest-rs-12000.html)

Varun Industries, a leading Indian stainless steel manufacturing company today announced that it has entered into a pact with the government of Karnataka to set up a new steel plant in the state at a cost of Rs 3.04 billion.

It has been allotted 500 acres of land to set up the plant. The pact also makes the firm eligible for mining licenses in Karnataka.

The company offers products such as houseware, cookware, storeware, hotelware, bar accessories, petware and other items.

myiris (http://www.myiris.com/newsCentre/storyShow.php?fileR=20100604153542194&secID=fromnewsroom&secTitle=From%20the%20News%20Room&dir=2010/06/04)

Bangalore: Although Lakshmi N. Mittal, Chairman and CEO of the biggest steel conglomerate, stole the thunder on Thursday morning by signing the first MoU at the Global Investors Meet, the MoU for the highest investment proposal for a single project was by Bramhani Steels.

The company, which is promoted by Minister for Tourism and Infrastructure G. Janardhan Reddy, has proposed to establish an integrated steel plant with a capacity of six million tonnes per annum, at a cost of Rs. 36,000 crore. Lakshmi Aruna, who is managing director of the company, signed the MoU on behalf of the company.

Industries Minister Murugesh Nirani said the Government had signed more than 40 MoUs by early evening on Thursday, involving an investment of about Rs. 2.30 lakh crores.

Among the other projects involving an investment of more than Rs. 3,000 crore, for which MoUs were signed, are JSW Steel's proposal to expand its existing capacity in Bellary district (Rs. 15,131.70 crore), Surya Vijayanagar Steel and Power Ltd.'s proposal to establish a six-million tonnes per annum steel plant and a 500 MW power generating unit (Rs. 24,000 crore), Surya Vijayanagar Cement's plan to establish a cement plant in Bagalkot and Gulbarga districts (Rs. 26,900 crore), Sree Renuka Infra Projects' proposal for a 1,100 MW thermal power in Belgaum district (Rs. 5,500 crore) and Bhushan Steel's plant at Bellary district for producing six mtpa of steel (Rs. 27,928 crore).

Among the MoUs to be signed by public sector units was that by BEML for designing and manufacturing components for the aerospace industry. BEML proposes to invest Rs. 3000 crore in the project, wich is to be located at the Aerospace SEZ at Devanahalli.

Hindustan Aeronautics Ltd proposal to establish a unit at the Aerospace SEZ for manufacturing aircraft engines and to service aircraft engines and manufacture helicopters. The project is estimated to cost Rs. 2,095 crore.

Finance

Canara Bank has announced that it is “committing” an initial amount of over Rs. 20,000 crore in the next two years for financing “feasible projects” that are identified at the meet.

The bank is to sign an MoU on Friday.

The Essar Group plans to invest Rs 17,760 crores in a 6 mtpa steel plant in the State.

The Hindu (http://www.hindu.com/2010/06/04/stories/2010060453150400.htm)

The Government-owned NMDC plans to set up a five-million tonne integrated steel plant in Karnataka at an investment of Rs 92 billion.

The company has approached the State government regarding the same, said Rama Som, Chairman and Managing Director, NMDC. ``Initially, we would start with two million tonnes,`` he added.

``We are a cash-rich company with about Rs 140 billion in our kitty. We can substantially finance this project from our resources,`` said Som. However, the company is on the look out for a joint venture partner. ``We are talking to companies in Japan and other countries. We would like to join hands with the one that offers a better technology,`` said Som.

According to him, the Karnataka Government has in principle agreed to give 2,500 acres for the project. On the location of the plant, he said, ``We are yet to decide on the location and are currently working on that.``

Som said that the company was using about six million tonnes of iron ore from Karnataka and plans to secure an additional mine for the proposed project. The company, he said, was also setting up a plant in Chhattisgarh.

myiris (http://www.myiris.com/newsCentre/storyShow.php?fileR=20100604040042500&secID=fromnewsroom&secTitle=From%20the%20News%20Room&dir=2010/06/04)

South Korean based steel major POSCO has signed an agreement with the Karnataka government for setting up six million tones steels plants, said Murugesh R. Nirani, Major Industries Minister.

The company has signed a Memorandum of Understanding to set up steel plant at an investment of Rs 30,000 crore.

"POSCO officials have signed a memorandum of understanding (MoU) with the state government to set up a steel plant in the state at a cost of Rs.30,000 crore (Rs.300 billion/$6.4 billion) without insisting on captive mines," Nirani said.

"Though POSCO earlier insisted in writing for captive mines, land, water and power before clearing its project, it relented after we prevailed on it to first sign the agreement on the terms and conditions that were applied to ArcelorMittal and other steel firms," Nirani clarified.

POSCO is the second largest steel making company in the world to enter Karnataka prior to which Arcelor Mittal has signed a deal to establish a steel plant in the state. ArcelorMittal has plans to set up plant with capacity of six million tons every year at an investment of Rs. 300 billion, sources said.

POSCO also has issues in establishing its steel plant in Orissa and is facing severe opposition from the local farmers there since five years.

The Karnataka government has clarified POSCO officials that as per the revised mining policy, the government can allot captive mines only if a steel plant is set up in the state and it is the central government that has to permit license for captive mines.

"We have explained to POSCO officials that as per our revised mining policy, captive mines will be allotted only if a steel plant is set up in the state. Under the Indian Mining Act, it is the central government which has to grant license to captive mines. We are ready to recommend POSCO as we have done in the case of ArcelorMittal and other steel firms," Nirani said.

The government has allocated land for POSCO in Bagalkote district of North Karnataka and ArcelorMittal has been allocated land in Bellary while other smaller steel plants were also been allocated land.

indiaserver (http://www.india-server.com/news/posco-signs-mou-to-set-up-steel-plant-27697.html) :)

* State presents investment opportunities in mineral, cement sectors at GIM
* ‘Potential waiting to be tapped in granite sector'
* Plan to make northern districts a ‘cement zone'

On mineral wealth:Minister for Urban Development S. Suresh Kumar and Chief Secretary S.V. Ranganath at the Global Investors Meet in Bangalore on Thursday.

BANGALORE: Presenting investment opportunities in the State's steel sector, Urban Development Minister S. Suresh Kumar on Thursday said Karnataka would set up a “steel city” in Bellary with an investment of Rs. 80,000 crore.

Participating at a session on the mineral and cement sector at the two-day Global Investors Meet being organised by the Government in Bangalore, the Minister said the project would bring regional economic prosperity. Besides, it would help develop 43 villages and benefit two lakh people.

He pointed out that Karnataka was the third largest producer of steel in the country besides being the largest exporter of iron ore. It had the resources and capabilities to manufacture more than 100 million tonnes of steel a year.

Referring to the potential of the cement manufacturing sector in the State, he reiterated that the Government had identified several districts in north Karnataka such as Gulbarga, Bagalkot, Chitradurga and Bellary for developing as the “cement zone”.

Speaking on the occasion, Chief Secretary S.V. Ranganath said the State provides good opportunities for investment in the mineral sector. There was a huge potential to be tapped in the granite sector as only 10 million cubic metres of the total 800 million cubic metres granite wealth of the State had been exploited, he said.

V.N. Vasudev, exploration director of Geo Mysore Services India Pvt. Ltd., said Karnataka, which has got the highest gold deposits in the country, could open up a golden opportunity in the field of gold mining for investors as the prices of this precious yellow metal had touched a new high. Stressing the need for investing more on exploration activities of gold, including deep-drilling, he said there was a possibility of exploring 14 to 15 new gold mines in the State.

Value-addition

Mines and Geology Director M.E. Shivalingamurthy said the Government would give priority to value-addition of minerals while clearing investments.

Confederation of Indian Industries' Karnataka State Council Vice-Chairman S. Chandrashekhar also spoke.

The HIndu (http://www.hindu.com/2010/06/04/stories/2010060460360600.htm)

Bangalore: The Karnataka State Pollution Control Board (KSPCB) will soon conduct environmental impact assessment and carrying capacity study of Bellary district in view of interest shown by a large number of companies, including steel industries, to set up their plants in the district.

Talking to presspersons after announcing the State Environment Awards for 2009-10 here on Wednesday, KSPCB Chairperson A.S. Sadashivaiah said an agency having expertise would be chosen to conduct the study.

The study would have separate components: one related to impact of mining and another related to carrying capacity and environmental impact on the region while allowing major steel plants and other industries, he said adding that the Central Pollution Control Board would also be involved in the study. It will take about two years to complete the study.

The Hindu (http://www.hindu.com/2010/06/03/stories/2010060358600400.htm)

The Karnataka State Pollution Control Board (KSPCB) will establish an air monitoring facility at Bellary district at a cost of Rs one crore. (http://www.deccanherald.com/content/73114/air-monitoring-facility-bellary.html)

* Spotlight on mining sector and not IT sector

http://www.hindu.com/2010/06/06/images/2010060653190401.jpg

Bangalore: Karnataka may be positioned by the State Government as the IT hub of Asia but it is iron and steel that investors seem to be after. The proposed investments in the iron and steel sector at the just-concluded Global Investors Meet account for almost two-thirds of the total for which MoUs were signed, even though MoUs for these projects accounted for less than one-seventh of the 361 MoUs that were signed.

Significantly, five sectors — iron and steel, power, cement, petroleum and IT hardware and software — accounted for 93 per cent of the proposed investment of Rs. 3.91 lakh crore.

In fact, three sectors — iron and steel, power and cement — stand out in terms of the quantum of investment proposed, accounting for more than 84 per cent of the value of investments proposed. The proposed investments in software and hardware projects were a distant fifth, accounting for only 4.2 per cent of the total investment planned. Petroleum was at fourth place, accounting for 4.73 per cent of the proposed investments.

There were 38 power projects proposed, involving an investment of Rs. 44,152 crore.

These accounted for 11.28 per cent of the quantum of investment proposed. Cement was at the third place with 12 projects for a total investment of Rs. 41,196 crore. Investments in cement projects accounted for 10.53 per cent of the value of investment proposed.

The figures belie the claims of the State Government and industry captains that Karnataka is a regional hub for the automotive sector.

There were only 10 MoUs in the automotive sector with a promise of total investment of Rs. 381 crore. Even the aerospace sector, for which Bangalore and Karnataka have been recognised as a natural destination for investors, attracted only eight projects with a potential investment of Rs. 951 crore.

The Hindu (http://www.hindu.com/2010/06/06/stories/2010060653190400.htm)

The HIndu (http://www.hindu.com/2010/06/04/stories/2010060460360600.htm)
He pointed out that Karnataka was the third largest producer of steel in the country besides being the largest exporter of iron ore. It had the resources and capabilities to manufacture more than 100 million tonnes of steel a year.
:cheers:

Essar to invest $4.7 bn in steel plant in K’taka
Bloomberg
Posted: Friday, Jun 04, 2010 at 2340 hrs IST
Updated: Friday, Jun 04, 2010 at 2340 hrs IST

Essar Steel, India’s fourth-biggest producer, plans to invest Rs 220 billion to build a steel plant in Karnataka, chairman Shashi Ruia said. The plant will have annual capacity of 6 million metric tonne, Ruia said on Thursday at the global investor conference in Bangalore. The mill—to be located in Bagalkot district—will be commissioned in the year ending March 31, 2015, spokesman Manish Kedia said.

Essar plans to add steel capacity as India spends Rs 1,74,000 crore to set up road, port and power infrastructure by March. Steel demand is expected to grow at 9% this fiscal year as higher income pushes up demand for housing, cars and appliances, GK Basak, executive secretary of the steel ministry’s joint plant committee, said on April 6. Essar aims to double production capacity to 14 million tonne this calendar year, chief executive officer Malay Mukherjee had said on February 16.
FE (http://www.financialexpress.com/news/Essar-to-invest-4-7-bn-in-steel-plant-in-Ktaka/629217/)

Surya group plans major investment in Karnataka
BS Reporter / Chennai June 12, 2010, 0:04 IST

Surya group of companies is planning to invest around Rs 25,000 crore for setting up steel and cement plants along with a power plant in Karnataka. The company said that it was looking at various funding options, one of which could be private equity (PE).

Arvind Bansal, deputy managing director (operations and corporate management), Surya Roshni Ltd, said the company originally planned to set up a steel plant with a capacity of six million tonnes per annum. “Slag, a by-product of steel making, is very difficult to despatch from the proposed steel plant. However, this can be can be used as a raw material for cement. That is how the idea of setting up a cement plant came.” The proposed cement plant would have a capacity of four million tonnes per annum.

To support these two plants, the company was planning to set up a power plant with an initial capacity of 100 Mw. The power would be used for captive purpose, and the surplus would be sold in the market, said Bansal, adding it could take three to four years for the work to commence.

Bansal said, “We are evaluating all the avenues to fund the project, one of which could be PE.”

Besides, the group is also investing Rs 100 crore for pipe and bulb plants in Shimoga district, also in Karnataka. The pipe facility would have a capacity of 100,000 tonnes per annum. These are expected to go on stream by the beginning of next fiscal and were likely to generate around Rs 500 crore of revenues in the next two years.

Bansal said the group had set a target to reach Rs 5,000 crore turnover by the end of 2012 from the current around Rs 2,000 crore.

“Our focus and presence, in both the pipe and bulb, has now become regional. We invested Rs 500 crore, recently to set up manufacturing facilities in Gujarat, Haryana, Madhya Pradesh and now in Karanataka. These units will take care of each region and it will give boost to our turnover.”
Business Standard (http://www.business-standard.com/india/news/surya-group-plans-major-investment-in-karnataka/397914/)

A gold rush awaits the state. The State government will soon invite applications for exploring 8,000 sq km spread across the State for the precious yellow metal including locations surrounding the now defunct mines Kolar Gold Fields.

The State has a huge greenstone belt rich in gold deposits covering an area of 38,800 sq km. The State government now wants tap the gold mine by inviting applications for reconnaissance permits (RPs) for gold mining prospects. The move comes at a time when gold has hit an all-time high.

The plan is to open up schist belts in Kolar, Gadag, Dharwad, Shimoga, in Krishna basin (Raichur and Gulbarga districts), Tungabhandra basin (Bellary), Hagari basin (Chitradurga) and Kaladgi basin (Bagalkot) for gold mining prospects.

Schist belts are geological formation rich in gold-quartz mineralisation. “It is estimated that the total gold reserve in the State is about 189 tonnes. A large part of the State still remains unexplored. There is a huge potential for mining prospects,” B S Ramaprasad, Secretary, Commerce and Industries said.

Karnataka is the only State to produce primary gold and commands 84 per cent of the country’s share. Recent survey by the Geological Survey of India had found gold deposits in a total of 15 block spread across the districts of Raichur, Dharwad, Chitradurga, Hassan and Haveri.

Ramaprasad said the KGF area had potential for new exploration. KGF was the premier gold mine in India before it was closed in 2003 due to reducing deposits and increasing costs. The site also has the ‘champion mine’ the second deepest gold mine in the world.

The Government also proposes to invite applications for processing 35 million tonnes of tailings left behind at KGF after more than a century of gold mining. Tailings are residue left after majority of the gold deposits are extracted from the ore. Modern techniques have now been developed which can recover any fraction of the valuable metal from the tailings. There are some legal hurdles which the government is trying to sort out before offering the tailings for processing, Ramaprasad said.

Glittering future

* 8,000 sq kms to be opened up for gold mining prospects
* Gold reserve in state is 189 tonnes
* Locations surrounding KGF promises potential for new exploration
* Recent survey by GSI finds gold deposits in 15 blocks
* Processing of gold tailings also to be offered

DHNS (http://www.deccanherald.com/content/75768/time-another-gold-rush.html)

BANGALORE: Given the rush of investment proposals from steel firms to set up plants in Karnataka and their requirement for captive iron ore mines, the state government is likely to fulfill only half their demand.

VP Baligar, principal secretary, industry & commerce, Karnataka, said the government is most likely to meet only 30-50% requirement of the steel companies. Steel companies will have to purchase the rest from independent mining companies. This means steel companies, hoping to get assured and full supply of iron ore, will have to depend upon other mining firms for bulk of their supplies.

At the recently concluded global investors meet in Bangalore, the Karnataka government displayed investment proposals of over Rs 2 lakh crore from steel majors, with ArcelorMittal and Posco accounting for over Rs 30,000 crore each.

Given the large capacities of these steel plants, these companies have also sought captive iron ore mining leases. After two years gap, the government has recently started granting leases.

Mr Baligar said larger players will be given priority as they will provide greater value addition. The government, in its latest industrial policy, has accorded highest priority of granting mining leases to those companies engaged in value addition i.e., setting up of steel plants. This move is to discourage export of iron ore from the state, which currently stands at around 90-95% of the total output.

Mr Baligar said that the state government has notified some new areas for mining activity with more such locations in the offing. The grant of mining leases has seen applications put forward by large players such as ArcelorMittal, Jindal, Tata Metaliks, Bhushan Steel, NMDC and even Brahmini Industries.

On the plans of South Korean steel major Posco setting up their plant in Karnataka, Mr Baligar said that their team would be looking at four locations - Bagalkot, Gadag, Bellary and Bijapur, before finalising on the particular district.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Ktaka-steel-rush-may-hit-ore-hurdle/articleshow/6061007.cms)

New Delhi, June 20 (PTI) India will soon join an elite league of countries, including Australia and Canada, where investors can apply online for mining rights -- getting data on free mineral blocks at the click of a mouse.

"We have asked all mineral-bearing states to work in tandem with the Land Resource Department, Ministry of Rural Development, for faster digitisation of cadastral maps (map showing detailed record of land)," Mines Joint Secretary Ajita Bajpai Pande told PTI.

The Land Resource Department has provided over Rs 600 crore for the digitisation process while the Mines Ministry has earmarked an initial funding of Rs 21 crore for "computerised on-line register of the Mining Tenement System."

Pandey said that all mineral-rich states have been asked to replicate a pilot project carried out at iron-ore rich Bellary in Karnataka and Durg in Chattisgarh to digitise information relating to mining resources, including available blocks.

PTI (http://www.ptinews.com/news/728787_India-to-get-advanced-mining-system-soon-)

Geodesic sets up new manufacturing facility in Bidar

Press Trust of India / Bangalore June 24, 2010, 15:53 IST

Geodesic Techniques, a leading provider of steel-intensive structures in India, today said it has set up a manufacturing facility in Bidar, Karnataka, at an investment of Rs 200 crore.

The company projected a revenue of Rs 1,000 crore over the next three years.

Majority of the investment is focused on the Bidar facility, which is already operational and would be formally inaugurated by the end of this calendar year, the company's founder and CEO, Srinidhi Anantharaman, told reporters here today.

"The new facility is designed to serve Geodesic's high volume large infrastructure projects like airport terminals, high rise steel buildings, signature structures, bridges and urban transportation initiatives," Anantharaman said.

Strengthening its manufacturing capabilities, the facility would position the company as a leading integrated design and build player and was expected to provide employment opportunities for nearly 5,000 people, he said.

The facility has a peak capacity of 65,000 metric tonnes per annum.
Business Standard (http://www.business-standard.com/india/news/geodesic-setsnew-manufacturing-facility-in-bidar/99130/on)

http://www.flonnet.com/images/20100716271401404.jpg
Workers in the illegal mines at Hospet in Karnataka's Bellary district do not even have basic amenities while the mine owners make their billions.

Frontline (http://www.flonnet.com/stories/20100716271401402.htm)

ArcelorMittal, the world’s largest steel maker, is likely to be the first among 53 steel companies that signed a memorandum of understanding (MoU) with the state government a month ago to secure captive iron ore mines in Karnataka. If everything goes as planned by the government, the company could get a mining licence for 521 acres of mines in the ore-rich Ramanadurga region of Bellary district.

The state government, which recently signed an MoU with ArcelorMittal for its proposed 6 million tonne per annum (MTPA) steel plant at Kuditini in Bellary district, has put on fast track the process to issue necessary approvals to the company. Arcelor Mittal had stated that this capacity will envisage an investment of Rs 30,000 crore.

In less than a month after signing the MoU with the steel giant, the B S Yeddyurappa government has recommended to the central government for according approval for allotment of captive iron ore mines spread over 521 acres in Ramanadurga.

This comes ahead of existing applicants for iron ore mines like Jindal Steel, NMDC, KIOCL, among others. Jindal Steel, which produces 7 MTPA of steel at Toranagal in Bellary district has been waiting for allotment of captive mines for the past decade. Its expansion to 16 MTPA will largely depend on allotment of captive mines.

The state government had signed an MoU with L N Mittal, chairman of ArcelorMittal on June 3, during the global investors’ meet for its steel plant and a 750-Mw captive power plant.

Confirming the development, State Industries Minister Murugesh R Nirani told Business Standard: “The chief minister’s office has sent a recommendation to the Centre for allotment of captive iron ore mines in Ramanadurga region. The exact quantity of iron ore that will be available in this area is yet to be ascertained.”

In reply to an email query from this paper, an official spokesperson from ArcelorMittal did not comment on the exact extent of iron ore mines required for them. As regard to water, the company said it requires around 40 million gallons per day of water for its steel plant.

As a first step towards facilitating the company to set up its plant, the government had issued final notification for acquisition of 4,500 acres at Kuditini in Bellary district. ArcelorMittal India has already deposited Rs 268 crore with the Karnataka Industrial Area Development Board for acquisition of land.

In November last year, a high-level team led by ArcelorMittal group board member Sudhir Maheshwari and Executive Vice-President Vijay Kumar Bhatnagar had held discussions with the chief minister, Nirani, Industries Secretary V P Baligar and other officials to discuss the project proposals. The team had also visited three locations. Subsequently, the state high-level clearance committee had given an in-principle clearance in January.

In addition to an MoU with ArcelorMittal, the Karnataka government had signed MoUs with 52 other steel companies for a total investment of Rs 2.56 lakh crore, including Posco of South Korea.

BS (http://www.business-standard.com/india/news/k%5Ctaka-puts-arcelormittal-projectfast-track/399978/)

Karnataka to acquire land for ArcelorMittal by September (http://news.google.com/news/url?sa=t&ct2=in%2F0_0_s_7_0_t&ct3=MAA4AEgHUABqAmlu&usg=AFQjCNH9oMuSJ6HOLzEYwH5LXBmYVCZS4w&cid=0&ei=KW8xTJqeHcKSkAXbr7SsAQ&rt=SEARCH&vm=STANDARD&url=http%3A%2F%2Fwww.steelbb.com%2Fus%2F%3FPageID%3D157%26article_id%3D78707)

State-owned miner NMDC today said it is in talks with Japanese companies Nippo Steel and Kobe for two separate projects in India, which will see an investment of at least 10,000 crore.

"Nippo Steel is negotiating with us on behalf of Japanese Steel Mills for the proposed two million tonnes per annum steel plant in Karnataka. It will be JV project and likely to cost Rs 10,000 crore," NMDC chairman and managing director Rana Som told reporters here.

The company also said it is talking to another Japanese steel make Kobe for a project in Andhra Pradesh.

BS (http://www.business-standard.com/india/news/nmdc-in-talksnippo-kobe-for-two-ventures-in-india/100412/on)

Octamec Group a leading player in the steel construction sector announced that its group subsidiary Octamec Building Systems will be investing Rs. 175 crore towards the setting up of a Pre Engineered Metal Building unit in the Dobbaspet region on the outskirts of Bangalore.

The plant for which the land has already been acquired will have an annual capacity of 80,000 MTPA making it one of the largest facilities in the country and its first phase is likely to be commissioned by the first quarter of 2011. When fully commissioned it is expected to have equal distributed capacities dedicated to the manufacture of PEB’s and on-line structural steel fabrication with a state of the art engineering and R&D Center.

businesswireindia (http://www.businesswireindia.com/PressRelease.asp?b2mid=23145)

Surya Roshni's Karnataka facility to begin production this fiscal
2010-07-14 17:30:00


Surya Roshni, the country's largest manufacturer and exporter of GI (galvanised iron) pipes, Wednesday said its Karnataka facility will start production by the end of this fiscal, a top company official said here Wednesday.

'Our pipe manufacturing facility at Shimoga in Karnataka would be operational by end of this financial year. For this, the company is investing Rs.150 crore,' executive director Utkarsh Dwivedi told IANS.

He said the plant would annually produce one lakh tonnes of GI pipes.

'With the commissioning of this plant, the company would annually produce around seven to eight lakh tonnes of pipes,' he added.

The company has steel pipe facilities in Bhuj in Gujarat, at Gwalior in Madhya Pradesh and at Bahadurgarh in Haryana.

Dwivedi said Surya Vijayanagar Steels and Power Ltd, a subsidiary of Surya Roshni, has signed an memorandum of understanding with the Karnataka government in June this year at the Global Investors Meet to set up a steel plant with an outlay Rs.20,000 crore in Bagalkot district.

'The proposed steel plant would annually produce six million tonnes of steel,' he added.

Surya Roshni's officials were in Shimla to launch the company's programme to educate consumers on the hazards of using substandard pipes.
Sify (http://sify.com/finance/surya-roshni-s-karnataka-facility-to-begin-production-this-fiscal-news-default-khor4cjjbia.html)

Bangalore: Kudremukh Iron Ore Company Ltd (KIOCL), a wholly state-owned enterprise mini-ratna under the steel ministry, will join hands with Bangalore-based United Telecom to set up an integrated steel plant in Karnataka at an investment of Rs 9,000 crore.

K Ranganath, CMD, KIOCL, said that company is in the process of forming a joint venture with URSIPL, a sister concern of United Telecom .

KIOCL would acquire 26% equity stake, while the remaining will be owned by URSIPL, he added.

For 26% stake in the joint venture, KIOCL should invest around Rs 2,250-Rs 2,600 crore, he said. The company will raise this investment through 1:2 equity debt ratio. The company may require to invest Rs 900 crore from the internal accruals, while the remaining would be raised as debt, he added.KIOCL’s cash reserve stood at Rs 1,200 crore.

Earlier, KIOCL had called for Expression of Interest from interested companies to jointly up an integrated steel plant in Karnataka. URSIPL has expressed its interest to KIOCL for the proposal. URSIPL has already approached the Karnataka government for the allotment of land and water in the northern part of the state to set up the steel plant. Recently, the KIOCL board approved a joint venture with URSIPL, the KIOCL chairman said.

The initial capacity of the integrated steel plant would be 1.5 million tonne per annum (MTPA) and it can be upgraded to 5 MTPA.

The chairman added that setting up of steel plant will help the company get captive iron ore mining lease as the state government has a policy of granting mining lease to the entrepreneurs.

FE (http://www.financialexpress.com/news/Kudremukh-Iron-Ore-to-set-up-Rs-9k-cr-plant-in-Karnataka/649924/)

FC reported that ArcelorMittal has been allotted 521 acres of mines in the iron ore rich Ramanadurga region of Bellary district in Karnataka for its proposed six million tonne per annum steel plant in the state

Mandakini Sood an ArcelorMittal spokesperson confirmed to Financial Chronicle that “The proposal has been sent by the state government to the mines ministry. The process of a final allotment should take about four to six months.”

The allotment makes ArcelorMittal first among 53 steel companies that signed a MoU with the state government a month ago to secure captive iron ore mines in Karnataka. The Karnataka government had signed a MoU with ArcelorMittal on June 3. As per the recommendation of the state government, the company could get a mining licence for 521 acres of mines in the ore rich Ramanadurga region.

The Karnataka government, which recently signed an MoU with ArcelorMittal for its steel plant at Kuditini, has put on fast track the process to issue necessary approvals to the company. ArcelorMittal had stated that this capacity would envisage an investment of INR 30,000 crore. State industries minister Murugesh R Nirani told Financial Chronicle that the chief minister's office has sent a recommendation to the centre for allotment of captive iron ore mines in Ramanadurga region.

The exact quantity of iron ore that will be available in this area is yet to be ascertained. The okay for ArcelorMittal comes ahead of some prominent applicants for iron ore mines like Jindal Steel and NMDC, among others. Jindal Steel, which produces 7 million tonne per annum of steel at Toranagal in Bellary district, has been waiting for allotment of captive mines for the past decade. Its expansion to 16 million tonne per annum will largely depend on allotment of captive mines. As a first step towards facilitating the company to set up its plant, the government had issued final notification for acquisition of 4,500 acre at Kuditini in Bellary district.

Steelguru (http://www.steelguru.com/indian_news/ArcelorMittal_to_start_Karnataka_steel_plant_soon/156177.html)

NEW DELHI: NRI billionaire L N Mittal-led ArcelorMittal has paid Rs 600 crore to the Karnataka government for land in Bellary, state Chief Minister B S Yeddyurappa said here on Saturday.

"ArcelorMittal's plant is to come up in Bellary. It has given us Rs 600 crore for land," Yeddyurappa told reporters here after the meeting of the National Development Council, the highest policy making body comprising Chief Ministers and the Planning Commission.

The world's largest steel maker had last month entered into a pact with the Karnataka government to set up a Rs 30,000-crore plant and expressed hope that the progress on the project would be faster than that at its plants in Jharkhand and Orissa.

Mittal had entered into an initial agreement with Karnataka government to set up an estimated six million tonnes steel plant and got about 4,000 acres of land in the iron ore rich belt.

The company has been struggling to launch its proposed Rs 1 lakh crore steel project in Orissa and Jharkhand (12mpta each) for about five years now. The project has been stuck due to regulatory hurdles and problems in land acquisition.

The world's largest steel maker is now looking for an alternative site in Jharkhand while going slow on its proposed project in Orissa.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/ArcelorMittal-pays-Rs-600-crore-to-Ktaka-govt-Yeddyurappa/articleshow/6211544.cms)

KIOCL JV for steel plant
Bangalore, July 23, DHNS:

Kudremukh Iron Ore Company Limited (Kiocl) has signed up URSIPL, belonging to Bangalore-based United Telecom Limited to form a 26:74 per cent joint venture company.

The JV has been formed for setting up an integrated steel plant in Bellary district with an investment of Rs 9,000 crore for a 5 million tonne per annum capacity integrated steel plant.
According to Chairman & Managing Director K Ranganath a detailed project report is being prepared and the company will fund its portion of the JV (Rs 2,340 crore) from its internal accruals.

DHNS (http://www.deccanherald.com/content/83393/kiocl-jv-steel-plant.html)

While the mine barons of Bellary and their political friends fight ugly battles, a recent study by the mines and geology department shows that high-quality iron ore of the region will all be gone in less than two decades, thanks to the rapacious exploitation of the ore in the past few years when booming demand in China fetched the mine magnates sky-high prices.

A 2003-04 government-commissioned study by the National Environment Engineering Research Institute, Nagpur, had estimated that the Bellary- Hospet-Sandur (BHS) area had some 1,100 million tonnes of iron ore. Estimating an annual consumption rate of 27-30 million tonnes of ore, which approximates to the current demand from existing steel plants such as Kalyani, Kirloskar, JSW and 55 sponge iron units, the NEERI study had said the ore would last some 40 years.

But the recent annual report of the mines and geology department says the BHS area has only 700 million tonnes of ore left, which implies that ore has been extracted at nearly double the expected rate.

Official sources said that in 2006-07, for instance, against a projected 25 million tonnes, some 41 million tonnes of ore was extracted and sent off to China as demand in that country soared in the run up to the Beijing Olympics.

“Some pits owned by the National Mining Development Corporation are already empty. And this is going to be the fate of most pits in Bellary within the next 15-20 years,” the sources said.

The BHS region boasts of high-quality iron ore – Grade 65+ -- that is on par with what’s available in Congo, Brazil, Madagascar and South Africa. It’s the quality of iron used in atomic power plants and high-end equipment.

The falling reserves raise an important question: Global steel majors, and the Reddy brothers of Bellary, have promised to pump in over Rs 2 lakh crore to set up mega-steel plants. ArcelorMittal, Essar Steels, the Reddy brothers and South Korea’s Posco have all asked for captive ore supplies of seven million tonnes or more annually for each for the next 40 years. Will the government be able to give such commitments?

Lokayukta Santosh Hegde’s report on illegal mining had drawn the attention of the state government and called for a limit to how much ore could be extracted annually from each mine.

State-owned KIOCL Ltd, an exporter of iron ore pellets, is all set to acquire Hospet-based Tungabhadra Steel Products Ltd (TSPL), a sick PSU engaged in the business of structural fabrication, for an estimated cost of Rs 150 crore.

K Ranganath, chairman and managing director, KIOCL, said, “The department of heavy industries, government of India, has approached us for acquisition of TSPL which has a liability of Rs 245 crore. We have conducted the due diligence and informed the ministry that we are ready to buy out the company provided the balance sheet of the company is cleaned up.”

He said, acquisition of TSPL would be in favour of KIOCL as the company is looking for a presence in north Karnataka. “The acquisition of TSPL will give us a presence in north Karnataka as we are looking to establish our steel plant there. It will also help us source steel structures from this company for our future requirements,” he told Business Standard.

Presently, TSPL has 88 acres at Hospet, which can be gainfully utilised in case the mining lease for the Ramanadurga iron ore deposit is obtained by KIOCL, he said.

TSPL has a mini hydel plant, which generates 5.5 million units of power per year. It has 100 employees in its rolls, which have not been given wage rise since 1992.

Ranganath said KIOCL was ready to pay wage arrears to the employees of TSPL from the day of the acquisition. KIOCL has asked the government to waive off TSPL’s loan amounting to Rs 227 crore and repay another Rs 18 crore loan taken from State Bank of India.

KIOCL has a cash reserve of Rs 1,200 crore and it aims to acquire TSPL with its own funds.

TSPL was incorporated in 1960 by the state government of then Mysore and Andhra Pradesh with a purpose of fabricating steel structures like gates and hoists for building Tungabhadra dam at Hospet. Presently, the company is supplying steel structures to power and irrigation projects. BHEL and SAIL are among its customers

BS (http://www.business-standard.com/india/news/kiocl-set-to-buy-tungabhadra-steel/402543/)


^^ sharifyaseen, it is better to provide reference to the source:
http://www.deccanchronicle.com/bengaluru/20-years-bellary%E2%80%99s-ore-will-all-be-gone-379

Currently countries like the UK are using mainly scrap for running their steel plants by recycling. We may have also to switch over to scrap technology say after 20 to 30 years. We have to see that all our iron ores are converted to steel or any other value added product within India itself. We may switch over to recycling once we reach a stage of collecting enough scrap. First of all better to save our precious ore reserves for our future generation by banning export totally.

Japanese steelmaker JFE Steel has bought a $1 billion stake in India's JSW Steel under an extensive cooperation agreement, the Japanese company said in a statement Tuesday.

JFE will subscribe to a preferential allotment of JSW shares at a cost of Rupees 48 billion ($1.02 billion). JFE hopes to acquire 14.99% of voting rights and will continue to invest to reach this target.

"JFE Steel, through its partnership with JSW Steel, now expects to participate on a full scale in the emerging market of India," the Japanese steelmaker said.

JFE will also provide technical assistance to JSW in the field of automotive steel, and will support operational improvements at JSW Steel's
Vijayanagar Works in Karnataka province.

This includes work on energy efficiency, environmental management, improvement of production process, quality and yield, production capacity analysis and indices benchmarking, JFE said.

This also involves the supply of technology for the production of hot- and cold-rolled coil, and of substrates. In addition, the companies will cooperate in providing automotive customers with application engineering and product development support, JFE said.

JFE and JSW had originally signed a strategic collaboration agreement in November 2009.

JSW Steel plans to expand its production capacity and increase its share of captive iron ore.

platts (http://www.platts.com/RSSFeedDetailedNews.aspx?xmlpath=RSSFeed/HeadlineNews/Metals/7900535.xml)

State bans export of iron ore (http://www.deccanherald.com/content/84137/state-bans-export-iron-ore.html)

"We believe that in 2011 in one of the projects we will break the ground, we don't know which one...it is our hope that it should be in the first quarter or the second quarter," Mittal said.

He was optimistic about the Karnataka project, for which he signed an MoU with the state government last month saying, "We are very satisfied with the progress we are making in Karnataka."

"Before we start ground breaking we have to have the resources and infrastructure in place. In fact, we have made progress in acquiring land near Bellary... we have paid the money required this time for land acquisition... I don't know whether it is Rs 600 crore or what, but whatever was needed we have paid," he said.

Last month, Karnataka Chief Minister B S Yeddyurappa, who had invited Mittal as the chief guest during a global investors meet at Bangalore, had said that the company has already paid the initial Rs 600 crore for land acquisition. The company is said to require a total of 4,000 hectares land.

Read more details at ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/ArcelorMittal-may-start-work-on-India-projects-in-2011/articleshow/6228750.cms)

Karnataka plans iron ore transport ban (http://economictimes.indiatimes.com/news/economy/policy/Karnataka-plans-iron-ore-transport-ban/articleshow/6227925.cms)

^^Good to hear that,some more big steel industries in the North eastern part of our state would do its bit in elevating the socio-economic status of the people.

Sandur Manganese & Iron Ores Ltd has announced that the Board of Directors of the Company at its meeting held on July 29, 2010, inter alia, has taken on record the in-principle approvals received from the Government of Karnataka (GoK) for the Company to set up a 2.5 lakh tonnes per year medium sized special alloy steel plant, iron ore beneficiation plant of an optimum feed capacity of 1.7 million tones of Run of Mines and a Ropeway over a length of 4 km from Mines to Railway siding.

The Board has taken note of the allotment of 75 lakh fully paid equity shares of Rs. 10/- each at a premium of Rs. 10/- per share aggregating to Rs. 15 crore made by Star Metallics and Power Private Limited (SMPPL), a subsidiary of the Company. With this allotment the Company holds 3.25 crore equity shares constituting 74.29% of SMPPL's paid up equity share capital.

The stock closed the day at Rs.557.55, up by Rs.2.55 or 0.46%. The stock hit an intraday high of Rs.564.90 and low of Rs.543.05.

The total traded quantity was 10294 compared to 2 week average of 8728.

Equity Bulls (http://www.equitybulls.com/admin/news2006/news_det.asp?id=78468)

No more mineral transport permits in Karnataka (http://www.indianexpress.com/news/No-more-mineral-transport-permits-in-Karnataka/653243)

VISAKHAPATNAM: RINL-VSP and Kudremukh Iron & Steel Company Limited (KIOCL) are contemplating a joint venture for production of ductile iron spun pipes, used in irrigation and water works utilising the blast furnace unit of KIOCL after revamping in Mangalore. RINL Chairman-cum-Managing Director P.K. Bishnoi and KIOCL Chairman-cum-Managing Director K. Ranganadh held discussions at VSP with the officials of the two companies.

Mr. Bishnoi evinced interest in joining the joint venture that KIOCL proposed for an integrated steel plant in North Karnataka.

The Hindu (http://www.hindu.com/2010/07/30/stories/2010073060950700.htm)

Spot iron ore prices rise to $140-142 cfr (http://www.metalbulletin.com/Article/2641621/Iron/Spot-iron-ore-prices-rise-to-140-142-cfr.html)

New Delhi:July 30, DHNS:

The Centre has proposed to set up a national mineral regulatory authority to monitor mining-related activities and take steps to curb illegal mining in the country.


The government decision follows suggestions from the Group of Ministers (GoM) headed by Union Finance Minister Pranab Mukherjee constituted to vet the proposed Mines and Minerals (Development and Regulation) Bill, which is likely to come up in the ongoing monsoon session of Parliament.

The proposal to set up the mining regulatory authority will be included in the Bill and tabled in Parliament for its approval.

The members of the GoM, including Union Law Minister M Veerappa Moily and Minister for Commerce Anand Sharma, have favoured setting up a strong regulatory mechanism to prevent plundering of mineral wealth, especially by those in power. Karnataka’s case, where three ministers from the BJP-led State government were facing charges of involvement in illegal iron ore mining, was among the examples given to press the need for a monitoring authority.

The regulatory body, to be formed by the Ministry of Mines, should oversee mining-related activities, including management of mineral wealth, by curbing illegal mining and proper auctioning of ore. The GoM also urged the Mines Ministry to probe the possibility of giving 26 per cent stake in mining companies to people whose lands had been acquired for the activity. This will ensure that the benefits of mining reach the impoverished tribal population, the panel said.

The GoM’s suggestion to share the inclusive growth in the mining sector with affected people may help decrease the influence Maoists have among the tribals of mineral-rich states, a senior Ministry official told Deccan Herald. The panel has also asked the Ministry to work out the modalities on how the stake could be given to those who lost land to mining activities.
DH News Service

The proposals
*GoM headed by Pranab Mukherjee constituted to set up regulatory body
*Mines and Minerals (Development and Regulation) Bill likely to be introduced in
Parliament
*Karnataka’s mining scam taken as example for need to protect mineral wealth
*Regulatory body to be formed by Ministry of Mines
*GoM proposes 26 per cent stake in companies to people whose lands had been acquired for mining


www.deccanherald.com/content/85071/centre-set-up-mining-authority.html

KIOCL set to buy Tungabhadra Steel

Jaishankar Jayaramiah

Posted: Saturday, Jul 31, 2010 at 2356 hrs IST
Updated: Saturday, Jul 31, 2010 at 2356 hrs IST

Bangalore: KIOCL (formerly Kudremukh Iron Ore Ltd), a state-owned enterprise run by the steel ministry, is considering acquisition of Tungabhadra Steel Products (TSPL), another Karnataka-based public sector firm. TSPL is a sick unit under the heavy industries ministry.

KIOCL CMD K Ranganath said the company might be required to invest Rs 150 crore to acquire TSPL and take care of its 100 employees.

“The ministry of heavy industries has approached us. We are in talks to have clear picture on various aspects in connection with the acquisition,” he said. KIOCL would acquire TSPL only if it was free from any liabilities, he added.

Ranganath added that TSPL had a government loan of Rs 227 crore and a loan of Rs 18 crore from the SBI. The union government is considering waiving its loan along with interest.

The company should negotiate with SBI to arrive at some decision over its loan. KIOCL will not take responsibility to settle wage arrears between 1992 to 2010, he added.

“We can acquire the company provided its balance sheet is clear, without any liabilities,” he said. If all these demands are met, the company will go for valuing TSPL for acquisition, he added.

If TSPL were to be acquired, he said its employees experienced in structural fabrication work would be helpful to the company. TSPL also has a mini hydel power plant with a capacity of 4 mw.

TSPL was established in 1960 to supply structural fabrications to Tungabhadhra dam under construction near Hospet in Karnataka. After the dam was completed, the business volumes to TSPL declined and it turned sick.

TSPL is doing structural fabrication work on contract basis.

He said TSPL has a fabrication facility, dedicated railway line cum sidings along with 88 acres.

KIOCL is looking at expansion plans at its Mangalore Pellet Plant. It is also weighing options on setting up an integrated steel plant in a joint venture with Bangalore-based United Telecom.

KIOCL, which has a cash reserve of about Rs 1,200 crore, reported a loss of Rs 177 crore last fiscal, compared with Rs 24 crore profit the previous year.

The company's turnover also declined to Rs 992 crore from Rs 1,228 crore during the same period. The loss was due to a shutdown in its captive iron mining facility in Kudrehmukh in 2005, following directions from the SC.
FE (http://www.financialexpress.com/news/KIOCL-set-to-buy-Tungabhadra-Steel/653999/)

The central government is planning to ban iron ore exports or restrict the quantum of export to protect the rich mineral wealth of the country, Steel Minister Virbhadra Singh said Saturday.

'We will ban iron ore exports. If that is not possible, we will restrict it,' Singh told reporters at the Jindal steel plant in Tornagal near Bellary, about 320 km from here.

Endorsing the Karnataka government's decision to ban iron ore export from the state, he said it was imperative to ensure that the mineral reserves were first used for value addition to produce steel.

The government has set a production target of 140 million tones of steel for this fiscal (2010-11) to meet the growing demand for the metal by multiple sectors.

Welcoming the state ban on iron ore export, JSW Steel Ltd vice-chairman and managing director Sajjan Jindal said the government should encourage setting up new steel plants for first use of the rich iron ore in the region.

'The ban should be in phases of five years so that new steel plants can come up to utilise the iron ore for value addition,' Jindal said.

In a related development, the central government has proposed to set up a national mineral regulatory authority to monitor mining related activities and curb illegal mining.

The decision is based on the suggestion by the group of ministers headed by Finance Minister Pranab Mukherjee.

'The government has decided to introduce the Mines and Minerals (Development and Regulation) Bill in the current session of Parliament,' Law Minister M. Veerappa Moily told reporters here.

The amendment will enable the government to set up the regulatory authority and check illegal mining.

sify (http://sify.com/finance/central-government-in-favour-of-banning-iron-ore-exports-news-default-kh5sOciecif.html)

BELLARY: A delegation of Indian steel companies would soon meet Prime Minister Manmohan Singh to discuss their problems, including availability of raw material and allotment of mining leases.

JSW Steel Company MD Sajjan Jindal told reporters here on Saturday that the steel plants have been facing a lot of problems with regard to the raw material. Mining lobby has become a threat to these companies. This lobby opposes establishment of steel plants and only intends to export the extracted iron ore, he said.

He said that the Karnataka government’s decision to ban export of iron ore is good. The steel companies here should have their own mining leases to sustain their production facilities. Importing or purchasing of iron ore to run steel industries would be a costly and risky affair, he said.

EB (http://expressbuzz.com/states/karnataka/Steel-companies%E2%80%99-delegation-to-meet-PM/194540.html)

Dr. Nowal, in his welcome note, threw light on the achievements & future plans of JSW.

Virbhadra Singh, Minister of Steel, Govt. of India dedicated the new state-of-the-art Hot Strip Mill at JSW Steel Vijayanagar Works to the Nation today, 31st July 2010. This is the widest and largest Hot Strip Mill in the Country.

Sajjan Jindal, VC&MD of JSW; Dr. Vinod Nowal, Director& CEO, JSW Steel, C.S Verma, Chairman, SAIL and several other dignitaries were also present on the occasion.

On this occasion, Steel Minister also handed over the Steel Minister’s Trophy for the best operating Integrated Steel Plant for the year 2007-08 to Sajjan Jindal. The panel of judges comprising of technologists, economists, consumers of steel and workers’ representative based on a set of criteria covering operational, financial, market, export, quality, customer satisfaction, environment and HR related parameters adjudged JSW Steel the ‘Runners Up’ amongst the best performing integrated steel plants in India.

Dr. Nowal, in his welcome note, threw light on the achievements & future plans of JSW. He said that when the whole world was reeling under the pressures of global economic downturn, JSW went ahead to commission one of the Country’s largest Blast Furnaces. He also spoke about the Company’s plans to commission the largest Sinter Plant, the largest Coke oven plant and the largest beneficiation plant of the Nation in the time to come. Dr.Nowal expressed his happiness on receiving the Steel Minister’s Trophy and complimented all employees and their family members on the occasion.

Sajjan Jindal in his address said, “This is a historical day for the steel industry in India. We are happy to be a partner in the progress of India. The commissioning of new HSM facility at Vijayanagar will enable us to introduce high value products for the automotive sector and specialized steel for the energy sector in India, in addition to strengthening our processes in line with global benchmarks”. Mr. Jindal also congratulated the JSW employees and other stakeholders on being conferred with the Steel Minister’s Trophy for the year 2007-08. He said “Employees are My Strength, Who Convert My Dreams into Reality”.

Addressing a huge gathering at JSW’s Vijayanagar Bellary Works, the Hon’ble Steel Minister, Govt. of India, Shri Virbhadra Singh congratulated JSW Steel for its achievement. He further added, “India is the third largest producer of crude steel in the world, surpassing developed countries like USA and Russia”. He termed JSW as the youngest and the fastest growing Integrated Steel Plant in the Country with novel technologies like Corex and non-recovery coke ovens. He commended JSW for its green and clean environs.

This is the second Hot Strip Mill (HSM) at Vijayanagar. This state-of-the-art HSM at Vijayanagar was completed in March 2010 and the Mill commenced commercial production on April 10, 2010. The new mill has 2250 mm width and a 1.5 mm – 25 mm thickness range, widening the product basket. The increased product basket will facilitate Company’s entry in high-value products including carbon structure steel, high quality carbon steel, IF steel, low alloy steel, API steel (X-80) and structural steel for high growth segments such as oil & gas, shipbuilding & tubing, automotive sector (dual phase steel and trip steel) among others.

Salient features of HSM:-

* Widest and largest HSM in India (of 2250 mm width) and among the few of its kind in the world.
* Capacity – 5 MTPA, on completion of phase 2. (current capacity – 2 MTPA)
* Use of Japanese technology for the first time in India.
* Make HR coils of 25 mm thickness at full width.
* Yield from the HR mill is the highest in the Indian steel industry.

JSW Steel’s Vijayanagar Plant has the current production capacity of 7 Million Tonnes Per Annum and it will become the 10 MTPA capacity plant in 2011, making it the single largest Integrated Steel Plant at a single location in India. JSW Steel has been ranked as the 2nd best operating Integrated Steel Plant in the World among top 35 ‘World Class’ steel makers by World Steel Dynamics as per their latest report of June 2010, based on weighted average score on different parameters.

indiainfoline (http://www.indiainfoline.com/Markets/News/JSW-Steel-commissions-new-Hot-Strip-Mill-at-Vijayanagar/4896523632)

Indian mining industry has dubbed the Karnataka government’s action of imposing ban on transport of iron ore for export as a move to indirectly help those into illegal mining.


The industry is of the view that the Chief Minsiter, instead of punishing those into illegal activities, has only robbed business from those who are into legal business.
R K Sharma, Secretary-General, Federation of Indian Mineral Indutry (FIMI), said those who are into illegal mining don’t need permit to carry on their business.

“In Karnataka all are into legal mining except some people. Instead of taking administrative measures to set right the system, the Chief Minister has stopped giving permits for transport of ore. He lacks political will to provide good governance. This action will not help in curbing illegal mining as those who are into illegal never take any permits, be it for mining, transport or shipping,” he said.

Sharma said that of the 40 million tonnes of iron ore extracted annually in the State, only 15 per cent is used domestically and the rest is exported. Both the Centre and the State will lose revenue while illegal trade will thrive, he argued.

Sharma said the South Indian chapter of the Association will meet shortly to take a decision on this issue.

Congress’ Santosh Lad, partner of V S Lad Mining Company, said the Chief Minister should justify the reasons for imposing such unreasonable restriction. “We are into mining from last three decades. How can the Chief Minister assume that we are all into illegal mining? We will meet him to educate how the industry works. If we are not heard, then we will approach court,” he said. Lad is an active participant in the Congress padayatra against illegal mining.

He said that mine owners may resort to selling ore to steel plants in other states and later export. There is no restriction on steel industry to export ore. “None can trample my right to conduct legal business. We will find ways of carrying on our business”, he asserted.

K Raghavacharyulu, senior counsel for OMC owned by the Reddy brothers, said trade policies come under the domain of Parliament and the Centre. The prohibiting the exports is unconstitutional and violative of fundamental rights granted under the Constitution.
The counsel said that the state government has jurisdiction over only minor minerals and not major minerals like iron ore.

“Having banned export of iron ore, why doesn’t the Chief Minister ban export of steel and finished product manufactured within the State? The Chief Minister has erred. He is trying to help a particular steel company of Bellary,” he said.
However, the Reddys, on record, have welcomed the Chief Minister’s decision.
The Reddys are mining in Andhra Pradesh and the mainly export through Krishnapatnam port.

Rahul Kumar Baldota of Hospet-based MSPL mining company said that no one takes permit for illegal mining, and hence the Reddys would continue their illegal business through Andhra Pradesh.

Domestic needs

However, Dr Vinod Nowal, Director of Commercial at JSW Steel Ltd, has welcomed the government’s decision.

“Steel industry is purchasing ore at international level. Government should first cater to the domestic needs. Continuous export will exhaust the resources. What will be left for those industries who put up steel plants in future?”, he asked.


www.deccanherald.com/content/84758/ban-iron-ore-export-ploy.html

Karnataka high court orders revival of Kolar gold mines
Published: Wednesday, Aug 4, 2010, 9:40 IST
By Odeal D'Souza | Place: Bangalore | Agency: DNA

A division bench of the Karnataka high court on Tuesday ordered the Union government to take all steps to revive the the once world famous Bharat Gold Mines Limited (BGML) in Kolar Gold Fields (KGF). No global tenders should be floated for the revival, the court ruled.

The division bench comprising justices DV Shylendra Kumar and N Ananda categorically stated that the KGF gold mines should not be handed over to any foreigner for revival. The court also said that the revival of the mines should not be entrusted to the workers’ co-operative of the BGML.

Directing the Union government to explore all possibilities to revive the now defunct mines, the division bench said that if needed, assistance and technical advice must be taken from mining experts.

The bench passed the order while hearing an appeal filed by the BGML challenging a single-judge bench order passed by justice BV Nagarathna on July 3, 2009, stipulating that only global miners should participate in the revival of the mines.

The single judge order had also made it clear that only companies involved in gold mining should be considered, while providing technical help to the workers’ co-operative could be examined.

The case arose after the BGML filed an application in the high court seeking permission to float a global tender to revive the mines. BGML wanted the tender to be opened to all mining companies and not merely gold mining firms.
DNA (http://www.dnaindia.com/bangalore/report_karnataka-high-court-orders-revival-of-kolar-gold-mines_1418576)

http://www.thehindu.com/multimedia/dynamic/00158/BELLARY_158797f.jpg
A file picture of iron ore mining activity in Bellary, Karnataka. Photo: M. Ahiraj, The Hindu

Assocham welcomes Karnataka decision to ban iron ore export (http://www.thehindu.com/news/states/karnataka/article559328.ece)

India's MSPL eyes September commissioning for pellet works (http://news.google.co.in/news/url?sa=t&ct2=in%2F0_0_s_0_0_t&ct3=MAA4AEgAUABgAWoCaW4&usg=AFQjCNGk0vKeU5rIX7ANeFnEf3nGEv1Obw&cid=0&ei=lzRZTKDuOYG4caKCt6YD&rt=SEARCH&vm=STANDARD&url=http%3A%2F%2Fwww.steelbb.com%2Fus%2F%3FPageID%3D157%26article_id%3D80079)
Chinese traders keep eye on Karnataka ore export ban (http://news.google.co.in/news/url?sa=t&ct2=in%2F0_0_s_1_1_aa&ct3=MAA4AEgBUAFgAmoCaW4&usg=AFQjCNFBbwiX6MCYBLpvXUYFlh2j6Pjr_g&cid=17593783815936&ei=zDVZTOCqEYS8ceSitaYD&rt=SEARCH&vm=STANDARD&url=http%3A%2F%2Fwww.steelbb.com%2Fus%2F%3FPageID%3D157%26article_id%3D80059)
JSW Steel 1QFY2011 performance highlights and results update (http://www.stockmarketsreview.com/recommendations/jsw_steel_1qfy2011_performance_highlights_and_results_update_20100804_28444/)

This might me the donimalai range,the climate here is very different from the rest of the bellary district

Karnataka state aims to permanently ban iron ore exports to conserve the raw material for steel makers such as ArcelorMittal, which will be given land for its plant this month, Chief Minister BS Yeddyurappa told Reuters on Monday.

Karnataka, the second largest iron ore producing state in India, banned exports of the commodity from 10 ports in the last month and said it would stop issuing permits to transport ore to other ports for exports.

Karnataka wants iron ore for local use
RELATED NEWS

* Debate: Should India ban iron ore export?

"So many important steel companies have come (to Karnataka) because they are going to get rich iron ore here," Yeddyurappa, told Reuters in an interview in New Delhi.

"They are going to value add to the iron ore here... we are not in favour of permitting it for outside (exports)."

Yeddyurappa said land acquisition for ArcelorMittal's steel plant in the mineral-rich Bellary district of the state was almost complete.

In June, ArcelorMittal, the world's largest steel maker, signed an initial agreement to spend Rs 30000 crore (USD 6.5 billion) to build a 6-million-tonnes-a-year steel plant in the southern Karnataka state.

The southern region of Federation of Indian Mineral Industries had said it would challenge the state's decision in court this week.

moneycontrol (http://www.moneycontrol.com/news/business/karnataka-wants-iron-ore-for-local-use_476537.html)

Almost complete?


Yeddyurappa said land acquisition for the planned ArcelorMittal steel plant in the mineral-rich Bellary district of the state was almost complete and that other facilities and approvals would be expedited.

"They need not require even four years (to start production). It could be even earlier," the chief minister said.


Yeddyurappa said Karnataka, well-known for its software exports, aimed to raise its own steel output to 40 million tonnes in the next three to four years from the current 12 million tonnes.

REUTERS (http://in.reuters.com/article/idINIndia-50725720100809)

Surya group aims Rs 5000 cr turnover by 2012

Vimukt Dave / Mumbai/ Rajkot August 11, 2010, 0:05 IST

Company’s current turnover is Rs 2000 cr

Surya group, one of the leading companies of steel pipes and lighting products is targeting a turnover of Rs. 5000 crore by 2012. The company’s present turnover is Rs 2,000 crore per year.

“In a bid to reach a new turnover target, Surya is investing around Rs 550 crore. The company has started pipe manufacturing at Kutch in Gujarat with an investment of Rs 450 crore. Also an investment of Rs 100 crore has been made at Shimoga in Karnataka where the company will produce both pipes and lighting products. The manufacturing unit for this will commence by next financial year,” said Prateek Singhal, General Manager — Marketing, Surya Roshni Ltd.

The company has steel pipe facilities at Bhuj, Gwalior and at Bahadurgarh. The company manufactures steel pipes at a capacity of 1 million tonnes, which will be doubled in next couple of years. Apart from that, the company’s Bahadurgarh unit manufactures around six lakh tonnes of pipes every year, while the production capacity of Kutch plant is four lakh tonnes per annum.

“The company intends to set up a steel plant in Karnataka apart from infrastructure, cement, power and PVC pipes in the states of Gujarat, MP, Chattisgarh and Uttarakhand. The projected turnover of Surya Group will be Rs 5,000 crore after all the expansions by the end of 2012," said company officials.

Meanwhile, Surya Vijayanagar Steels and Power Ltd, a subsidiary of Surya Roshni, has also signed an memorandum of understanding with the Karnataka government in June this year at the Global Investors Meet to set up a steel plant with an outlay Rs 20,000 crore in Bagalkot district.
BS (http://www.business-standard.com/india/news/surya-group-aims-rs-5000-cr-turnover-by-2012/404127/)

MYSORE: The global steel giant Arcelor-Mittal's project to build a steel plant in Karnataka will take off shortly, CM's economic advisor K V Raju said on Wednesday.

Pointing to the launch of three projects signed during the global investors meet in June on a single day by CM B S Yeddyurappa, the economist said the state government is focused on following them up. He indicated that the land acquisition for the mega projects will not be a problem.

Senior officers are appointed as nodal officers and are tasked to follow-up these projects. The Arcelor-Mittal project will begin later this month, he said addressing industrialists during an interaction hosted by the Mysore zone of the Confederation of Indian Industry (CII). According to him, 166 large projects have got nodal officers to track their progress.

Referring to issue of land and water available to base these projects, he stated: "We have worked out details regarding land and water. There will be power available too with the plans for gas-based thermal plants."

CII Karnataka chief Aroon Raman, who partnered with the government during GIM, said the projects are moving forward. Im happy. The government is focused on development, he stated in his opening remarks. Raju added: Rs 5 lakh crore worth projects were signed during the GIM and even if 50 per cent of them materalise, it will be big. I know there are apprehension as to how many projects will get underway and how soon. Even if 50 per cent of the investment flows here, it will be huge, he said matter-of-factly.

Explaining as to how the government is going about to improve economy, Raju, in his session for over an hour, said: Focus in on job-oriented growth. Many of the projects signed during the GIM will get the state there. We need to shift from agriculture to non-agri sector for generation of jobs as 61 per cent employed in the agri sector are contributing 19 per cent to GSDP. There is also a need to increase rural income. A pilot project in 24 taluks spread in six districts has increased the yield owing to a programme. We have extended this to 12 districts now.

He said 2.40 lakh have been trained in skill development and another 4 lakh are in the loop this fiscal. The BJPs promise of 10 lakh jobs in five years will be met this way.

TOI (http://timesofindia.indiatimes.com/city/mysore/Arcelor-Mittal-project-to-take-off-this-month-end/articleshow/6295169.cms)

KIOCL Ltd (formerly Kudremukh Iron Ore Company Ltd) has urged the Karnataka Government to allocate iron ore mine for the company's steel plant at Mangalore in Karnataka.

Speaking at a function to lay the foundation stone for the raw material storage silo at KIOCL's steel plant in Mangalore on Friday, Mr S. Machendranathan, Additional Secretary in the Union Ministry of Steel and Director of KIOCL Ltd, urged the Karnataka Chief Minister, Mr B.S. Yeddyurappa – who was present at the function – to allocate mine to it on a preferential basis.

Stating that the Karnataka Government had organised a global investors' meet at Bangalore in June, where it had sought investments in various sectors, including in the steel industry, Mr Machendranathan said: “Here is an investment looking for a mine. We have already made a lot of investments and request you to allot a mine on a preferential basis. This investment is lying unutilised.”

(KIOCL stopped its mining activities in the Kudremukh region on January 1, 2006, following a Supreme Court directive.)

Mining lease

Mr Ranganath said the Karnataka Government should grant mining lease in Ramanadurga iron ore deposit of Bellary district. In 2003, the Government had decided to allot 50 per cent of the area available in Ramanadurga, he said.

Replying to this, Mr Yeddyurappa said that the existing steel companies in the State and those companies that have signed MoUs to invest in steel industries in the State at the recently concluded global investors' meet will not face any problem for their requirements.

However, the Government will not allow illegal mining, and the export of such ore from the State.

He urged the Prime Minister to convene a meeting of the Chief Ministers of ore-rich States to discuss the issue and come out with a national policy on this matter.

iStockAnalyst (http://www.istockanalyst.com/article/viewiStockNews/articleid/4408903)

Bangalore, August 16, DHNS:
The State Government on Monday submitted to the High Court that nearly 30 million tonnes of iron ore has been exported without any valid permit during the period 2004-2010.


In its objections to the batch of petitions challenging the ban on export of iron ore, the government has contended that the cost of extracting a tonne of ore comes to Rs 300 as against the profit of Rs 5,000.

The mining industry would earn Rs 25,000 crore per annum on the export of 50 million tonne of iron ore, whereas the State would get a meagre Rs 100 crore as royalty.

However, if the ore is converted into steel the Stae would earn Rs 16,000 crore in the form of Central Excise Taxes and Rs 4,000 crore as VAT. This apart, it would also help in the creation of jobs for locals, according to the objection statement.

The government has further contended that the mining industries earned Rs 60,000 crore in 2007-08 by selling 120 million tonne of ore, whereas the domestic profit was Rs 15,000 crore. It has contended that it is inappropriate to let such huge wealth to be amassed by a a select few mining lease holders. In addition, about 60 mining lease holders have flouted all rules by encroaching upon forest land.

Arguing strongly against the exports, the government has stated that there is no provision for the lease holders to export ore in its raw form. The National Mineral Policy 2008 and the Karnataka Mineral Policy of 2008 had no provision providing for export and hence the mining lease holders cannot contend that they have an absolute right to sell the ore in the manner they liked.

Even the Mines and Minerals (Development and Regulation) Act, 1957 and Mineral Concession Rules and Karnataka Forest Act allows the State to regulate exports, the statement said. Stating that the question of export arises only when the country is self-sufficient, the government submitted that India is far from attaining self-sufficiency with the steel production short of demand.

One more petition

Another petition was filed in the High Court on Monday seeking the removal of ban on the export of iron ore. Deccan Mining, Kumaraswamy Exports, S B Minerals and Kareganur Express have contend that the exports were allowed under Foreign Trade (Development and Regulation) Act, 1992 enforced by the Central government. They have argued that the State cannot interfere with the Act by imposing a ban on exports.

www.deccanherald.com/content/89179/30-million-tonnes-ore-exported.html

Aug. 16: Steel major Arcelor Mittal’s plans to invest Rs 30,000 crore in the state have run into rough weather with around 3,000 farmers here resolving not to let the company occupy their land unless they are given a compensation of Rs 77 lakh for every acre acquired for the project.

Chief Minister B.S. Yeddyurappa had announced that the foundation stone for the six million tonne per annum integrated Arcelor Mittal steel plant would be laid by the month end. But farmers from Kuditini and Hagarinadoni villages of Bellary taluk warn that Arcellor Mittal will not be allowed to lay the foundation stone unless they are given higher compensation.

Farmers staged a dharna before the deputy commissioner’s office on Monday under the umbrella of the Bhoo Santrastara Horata Samiti to protest the government’s failure to give them a higher price.

The agitation is a fallout of several failed rounds of talks between farmers and authorities. Deputy commissioner B. Shivappa had announced a compensation of Rs 12 lakh per acre would be given for land acquired along the roadside and Rs 8 lakh per acre for land in the interior, for the steel plant. But this has not satisfied the farmers, who find the offer very inadequate.

U. Basavaraj of Karnataka Prantha Raitha Sangha says compensation announced does not reflect the steep rise in land value in the area and surrounding villages located alongside national highway 63, between Bellary and Hospet.

“The government must fix Rs 77 lakh per acre as compensation considering how valuable the land is here,” he says, warning that if the government does not give in to their demad, Arcellor Mittal will not be allowed to lay the foundation stone for its steel plant as planned.

Mr Shivappa, meanwhile told the agitating farmers that he had conveyed their demand to the minister for industries Murugesh Nirani and the high level committee constituted to clear GIM projects and was waiting to hear from them.

DC (http://www.deccanchronicle.com/bengaluru/mittal%E2%80%99s-bellary-mill-sees-rough-weather-617)

People are ready to part with land if better compensation is provided. That should be fine, only some more negotiation needed.

Future cast in iron (http://www.downtoearth.org.in/node/1739)

Farmers of Agadi and Budaghatti in the taluk staged a massive protest on Monday against the acquisition of agricultural land for setting up an industry of Tata Steel.

The farmers, who took out the protest rally from the Purasiddeshwara temple on tractors and bikes, raised slogans against the State Government’s “anti-farmer policies”. Former minister Basavaraj Shivanna, organic agriculture expert Nigalingappa Baseganni and leader Jagadish Baseganni declared that the farmers have decided to give up their lives but not their lands.

“We have been dependent on agriculture for so many years and now if you decide to snatch our lands for setting up an industry, we will all end up on the streets,” they said. The farmers also pointed that the lands in Agadi and Budaghatti were fertile plains and never failed to produce an yeild even during years of failed monsoon.

The protestors threatened to go on a violent struggle if their land is acquired by force.

DHNS (http://www.deccanherald.com/content/89214/well-sacrifice-our-lives-not.html)

I think this is a tougher case. Fertile lands should be spared.

The typical mistake is they do not issue appointment letter along with land acquisition notice.

NEW DELHI: Taking forward the proposal to jointly set up a steel plant in Karnataka with Japanese steel major Nippon Steel, state-owned NMDC is learnt to have offered land and iron ore for setting up about Rs 9,500-crore project.

"NMDC, in a recent communication with Nippon Steel, has said it will provide about 2,500 acres of land, which the Karnataka government has promised to give it in the Bellary- Hospet region of the state, for the proposed steel plant.

"In addition, NMDC said it can provide iron ore as well. In lieu of the land and iron ore, it has asked Nippon Steel to bring its technology to India and fund the JV project," a senior government official said.

Neither, NMDC nor Nippon Steel could be contacted for their comments.

However, last month NMDC Chairman had confirmed that the country's largest iron ore producer is in talks with the world's fourth-largest steel firm for setting up a steel plant with an initial annual production capacity of 2 million tonnes in Karnataka.

The official, however, said the talks between the companies have not reached any advanced stage. Earlier, NMDC was also reported to be in talks with Tata Steel for the JV project in Karnataka. State-owned RINL had also offered to partner the company for the venture, the official said.

NMDC had earlier signed a deal with the Karnataka government to set up a steel plant in the state.

Besides Nippon, NMDC is also talking to another Japanese firm Kobe Steel for a joint venture project to produce iron nuggets in Andhra Pradesh at the premises of Sponge Iron India (SIIL), which has been amalgamated with it last month. SIIL has an annual capacity to produce of 60,000 tonne of sponge iron.

The mining firm is already in process of starting construction work for its over 15,000 crore integrated project in Chhattisgarh by November-December this year, Som had earlier said. The Chhattisgarh plant to come up in backward district of Bastar, will have an annual production capacity of 3 million tonnes.

NMDC will be the second steel PSU, after SAIL, to be in talks with Japanese companies. SAIL is in talks with Posco to set up over Rs 11,000-crore integrated steel plant in Jharkhand. SAIL is also considering setting up downstream mills to produce specialised steel products with Posco in Maharashtra.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/NMDC-offers-land-iron-ore-to-Nippon-for-Rs-95K-cr-JV-project/articleshow/6337651.cms)

Which one is first? ArcelorMittal or Nippon?

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/NMDC-offers-land-iron-ore-to-Nippon-for-Rs-95K-cr-JV-project/articleshow/6337651.cms)

Which one is first? ArcelorMittal or Nippon?

Bellary region is getting investment only in the form of iron and steel ???

Secretary to the Union Ministry of Steel Atul Chaturvedi will be meeting the State Chief Secretary to discuss about problems related to KIOCL.

Addressing a press meet at the KIOCL premises here on Sunday, Chaturvedi said that it is difficult for KIOCL to expand its operations without State government’s help.

“The Supreme Court order, which stopped mining in Kudremukh, is a major setback for the KIOCL Limited. We have already written to the State government and we will hold discussion with Chief Secretary on Monday,” he added.

“We are not going to mine in Kudremukh again. However, we will move curative petition at the Supreme Court to remove 24 million tonnes of iron ores, which is lying in withered condition at Kudremukh after the Apex Court stopped mining activities in Kudremukh in 2003,” he said adding that it will create environment issues as the withered ore is being washed away to the Bhadra river every rainy season.

He said that the Ministry was striving to re-establish KIOCL for the past one-and-a-half year. However, KIOCL Limited is not a loss making company, he added. Talking about the proposals of opening a police commando training centre and an eco-tourism project at Kudremukh, Chaturvedi said, “we will consider the State government’s proposals. However, the State also should give us back due co-operation to re-establish the company.”

Desilting

Chaturvedi said that the desilting work being taken up in Lakhya dam is not a non-forest activity. “We are not doing any non-forest activity. Once the desilting work was done, water can be supplied to Mangalore City too. Moreover, desilted materials can be used for other purposes too,” he said.

Conservation of ore

Chaturvedi said that there is need of taking steps to conserve iron ore for future as the demand increases every year. “The current requirement of iron ore in the nation is 70 million tonnes per year. While the requirement of iron ore will be 120 million tonnes by 2012, the demand may cross 200 million tonnes by 2020,” he explained.

Talking about the machineries lying idle in Kudremukh, Chaturvedi said that the Ministry is in touch with the Steel Authority of India (SAIL) to lease those equipment to them. “We will ask the SAIL to send a team to conduct survey in Kudremukh,” he added.

Secretary to the Union Ministry of Steel George Elias and KIOCL Chairman and Managing Director K Ranganath were present.

DHNS (http://www.deccanherald.com/content/90658/union-secy-meet-cs-discuss.html)

The discussions will also primarily focus on the steps the state government could initiate and take to boost the fortunes of KIOCL Ltd, as well JSW Steel at Bellary and VISL at Bhadravathi. (http://timesofindia.indiatimes.com/city/mangalore/Meet-on-health-of-steel-industry-in-state/articleshow/6395068.cms#ixzz0xP1e6PyY)

Concern over iron ore lying unused at Kudremukh (http://www.hindu.com/2010/08/23/stories/2010082360930300.htm)

Subhash Chandra N S, Bangalore, Aug 23, DHNS:

Asia’s first sloth bear sanctuary at Daroji in Bellary district is under severe threat as the State Government, by violating environmental norms, has granted permission for a major steel plant around its vicinity. It has also begun the process of land acquisition.

Less than 16 years of its establishment, the Daroji sanctuary already has its fate in jeopardy.

A mega steel plant is likely to come up at Gadiganur village, located just 500 meters away from the Sanctuary. Shaken wildlife enthusiasts in and around Bellary district have now written to Union Environment Minister Jairam Ramesh requesting him to mediate.

“It has come as a shock for us. We never even imagined that a huge steel industry is being planned adjacent to this sanctuary. We realised only when local people informed us about this,” said K S Abdul Samad, President, Society for Wildlife Adventure and Nature (Swan).

Some of the wildlife enthusiasts who tried to dig out the information had another shock when they found that a notification has already been issued in this connection.

“We were appaled to find out that the Gadiganur village and a portion of the sanctuary has been earmarked for the steel plant,” said Samad. Another wildlife enthusiast, Santosh Martin, who is also the honourary wildlife warden, Bellary said the six million-tonne capacity plant is being planned at a total area of 5,500 acres.

“The Gazette notification is over, acquisition may begin anytime. Though officials say it will come up at a distance of three to four kms away from the sanctuary, their map says a different story. We are planning a protest to save the sloth bear sanctuary,” he said.

The plant, according to some official sources, falls between the bear sanctuary and the World Heritage site, Hampi and is also said to be detrimental even to the latter.

Daroji

The sloth bear sanctuary, being an unique one and the first of its kind in the country is a rock-strewn hillock that stretches between Daroji of Sandur taluk and Ramasagar of Hospet Taluk in Bellary district. The place has been an abode of Indian sloth bears since ages.

The entire hill ranges around Hampi vicinity are believed to be the mythological ‘Kishkinda’ valley, an abode of Lord ‘Hanuman’ and ‘Jambavantha’ (the bear). Following the efforts of former Minister and Congress leader M Y Ghorpade, the state declared 5,587.30 hectares of Bilikallu reserve forest as the Daroji Bear Sanctuary.

Apart from 120 sloth bears, the place is home to leopards, hyena, jackals, wild boars, porcupine, pangolins, star tortoise, monitor lizard, mongoose, pea fowls, partridges, painted spur fowl and quails. This unique ecosystem also hosts over 200 species of birds and 50 species of butterflies.

DHNS (http://www.deccanherald.com/content/90980/asias-first-sloth-bear-sanctuary.html)

Better to provide alternate site for the plant?

JSW begins work on iron ore railway project

26 Aug, 2010, 03.50PM IST,PTI

MUMBAI: The country's third largest steel producer, JSW Steel, today said it expects to commission the first unit of the new Vijaynagar plant in Karnataka by next month.

"We expect to start the first unit of our new plant at Vijaynagar in Karnataka in September this year," JSW Steel Director and Chief Executive Officer Vinod Nowal told reporters on the sidelines of an extraordinary general meeting here to get the shareholders nod for inducting the Japanese steel major JFE Steel as partner with a tad less than 15 per cent stake.

"We will start full operations of the 3.2-million tonne per annum plant by next February. After completion, our overall annual capacity is expected to top 10 million tonne," Nowal said.

To a query on the ban on Vedanta in Orissa and its impact on the overall industry sentiment in general and those of the steel industry in particular from an aggressive environment ministry, Nowal said, "I cannot comment on the government decision now".

On steel price, Commercial and Marketing Director Jayant Acharya said, "We are not increasing our prices now. Demand situation is reasonable but we are not increasing our prices now." He added that since the European banks cleared their stress test end-July, there has been an overall improvement on the demand front globally.

To a question on whether the company would re-bid for the ailing state-run Zimbabwean steel major Zisco, Acharya refused to comment.
He further said the work on the proposed Bengal unit will begin within the next six months.

Earlier, Sajjan Jindal had said the company would start construction of its 10-million-tonne Salboni plant in West Bengal before the end of the current fiscal.

"The work of boundary wall has already started. We are doing the designing of the steel plant," Jindal said.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Vijayanagar-plant-to-start-next-month-JSW-Steel/articleshow/6439221.cms)

You can see the airstrip on the top left of the image

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Airport Terminal

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well planned Nagar

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JSW sports club

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PHOTOCOPYRIGHT- PRADEEP KAUSHIK (http://www.panoramio.com/user/682228?with_photo_id=37950749) on Panoramio

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3D Digital theatre-Multiplex

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Copyright Pradeep Kaushik (http://www.panoramio.com/photo/37941563)

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great pics salman :cheers:

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Chennai/ Bangalore August 26, 2010,
The recent ban on the export of iron ore by Karnataka government has thrown life out of gear in Tumkur and Chitradurga districts where only low-grade iron ore is available. The ban has severely affected the livelihoods of people depending on the mining industry and close to 10,000 persons are rendered jobless since the ban was imposed.

The iron ore mining companies engaged in the extraction and export of low-grade iron ore in these two districts are in deep trouble as their losses are running into several crores on account of possible penalty from the buyers abroad, but also due to the heavy investment in infrastructure.

As many as 25 of the 90 operational mining companies in the state export over 10 million tonnes of low-grade iron ore from these two districts for which there is no market in the country. These companies have collectively invested over Rs 200 crore in the last couple of years on setting up support infrastructure like cranes, sheds for storing ore, railway sidings and port equipment for exports. In addition to this, companies like Sesa Goa, MSPL, Bharat Mines and S K Modi have also invested Rs 100 crore to buy railway rakes to transport ore to the ports.


“Ever since the ban was imposed, the entire infrastructure has been lying idle and we are forced to store large quantity of lose ore in our mines which is leading to environmental hazard. In Chitradurga and Tumkur area only low-grade iron ore is available and it would be useless if not exported. There is no market for this low-grade ore in the Indian market. It’s a total waste of national wealth,” said Basant Poddar, managing director, Mineral Enterprises Limited, one of the miners hit by the ban.

Low-grade iron ore accounts for 50 per cent of the total exports from Karnataka at 15 million tonnes per annum and a majority of this comes from mines in Chitradurga and Tumkur. Presently, 25 companies operate mines on over 1,000 hectares of revenue land in these districts.

“It’s not only a loss for us, but also for the country as it gains foreign exchange apart from royalty revenue to the state government. Over Rs 6,000 crore investment is needed to set up 1 tonne per annum steel mill and also import high-grade coke to use the low-grade iron ore. So far, there is no proper technology available in the country to make use of low-grade iron ore,” Poddar said.

The only market for low-grade ore is China. Over the last 50 years nobody has tried to make use of this ore as already high-grade ore is available in other places for steel making, he said. There has been no investment in the steel sector in Chitradurga which is starved of water. In fact, the only steel mill present nearby is at Bhadravati of public sector Visvesvaraya Iron and Steel Ltd, which is also not consuming low-grade iron ore. Instead, it is exporting 20 per cent of the ore it buys from the NMDC after using the cream of it, Poddar added.

The Federation of Indian Mineral Industries (FIMI) fear that if the ban stays these mines may have to be closed permanently causing job loss to more than 10,000 persons. Already, 2,500 trucks are off the roads due to the ban.

Shantesh Gureddi, chairman, FIMI-southern region, said, “Investments made not only in private railway sidings, but also in infrastructure projects like Hassan-Mangalore Rail Development Corporation, a special purpose vehicle between Government of India, the Government of Karnataka and a private company, will be rendered infructuous. Besides, iron ore of less than 62 per cent grade iron content are not consumed by domestic industry.

“However, India is only a swing supplier filling the gap but if we lose this market, Australia and Brazil will fill as they have ample surplus capacity and India will lose this market forever,” he said.

^^

We had discussed this issue earlier also. Most of the Karnataka's ore reserve are of low grade. You had earlier posted a comment that these reserves will be depleted in a span of 20-30 years if ore is exported continuously (legal or illega). For that I suggested export should be banned.

Now imagine what happens after 30 or 40 years if export is not banned? Definitely all these people will go jobless at that time as we are left with no more mines. So, it is the question whether it is going jobless now or later.

Now imagine a situation were ore is used within Karnataka or India. Then these people can continue working in either mining or steel industries. And allied steel indiustries will generate further jobs to them including truck drivers. If we are using enough iron or steel ourselves then we are left with enough scrap to recycle and hence there will not be much job losses.

One immediate solution is to use these people on new steel plant construction works. So, we need to complete the land acquistion process fast. Of course with proper compensation to farmers and villagers. Even restricting mining and export to government mining companies may mitigate job loss to some extent and also illegal mining.

Bangalore, September 5, DHNS:
The State Government imposed a toll of Rs 500 on trucks transporting iron ore in the mining district of Bellary beginning Saturday.


Acting on a Government Order the Public Works Department officials have begun collecting the toll in Sandur. However, they could collect the tax from only two trucks as they received the GO late in the day.

On Sunday, Rs 2.5 lakh was collected on Mylar-Torangal State Highway 40. The officials camped near Banahatti village to stop the trucks and collect the tax. The collection was carried out from 9.30 am to 6.30 pm, according to Syed Ismail, Assistant Executive Engineer, PWD, Sandur.

He said that by evening, the collection had to be stopped because of lack of proper arrangements. In addition, stopping of trucks on the highway impeded vehicular traffic. He said in Sandur taluk, the toll would be collected at four points.

“But, today we could collect the toll at only one place. The department will be opening two toll collection desks in Bellary taluk, one each in Hospet and Kudligi,” he said.

Passing the buck

Asked whether there was any resistance by the operators to pay the new tax, the officer said while transporters argue that the tax should be paid by mine owners, mining lease holders insist that the tax should be paid by the transporters. “But we are doing our duty. We are issuing receipts for collecting the tax from truck drivers/owners. We will not allow movement of trucks with ore without paying the toll.”

Official sources said that on the second day after introduction of the toll, there was severe pressure on the PWD officials not to collect the toll. Ore movement is maximum during nights. Unfortunately, the toll collection stopped in the evening and the department is yet to make preparations for collecting the toll. People involved in the mining business are not even aware of the new toll levied by the government, sources said.

The PWD was supposed to establish toll collection plazas in districts where mining is taking place. But they are yet to materialise.

http://www.deccanherald.com/content/94269/ore-trucks-pay-rs-500.html

Gallantt Metal Ltd has announced that the Board of Directors of the Company at its meeting held on September 06, 2010 has considered and approved the expansion plan of the Company : -

The Board approved the expansion plan of the Company at village-Halavarthi, Taluke & District - Koppal, Karnataka and to come out with Steel and Power projects.

Further the Company has announced that it has acquired a land of 106 acres (approx.) for the expansion plan at the above stated site. The Company has also obtained clearance for the expansion plan from the Karnataka Government and Ministry of Environment and Forests.

Further, the Project size and shape shall be decided in the due course of time and shall be informed accordingly.

IIFL (http://www.indiainfoline.com/Markets/News/Gallantt-Metal-plans-Steel-and-Power-projects./4925080776)

Mahesh Kulkarni / Bangalore September 07, 2010, 1:13 IST

Events seem to be moving in the right direction for ArcelorMittal’s project in Karnataka. The state government, which had promised speedy clearances late last year for the company, the world’s largest steel maker, has finalised the compensation and rehabilitation package for those whose land will be taken over.

This follows the state’s recommendation on June 15 to the Centre for prior approval for grant of an iron ore mining lease to ArcelorMittal. The land prices have been finalised close to a month after the first dialogue with farmers, a top bureaucrat said.

The B S Yeddyurappa government has prepared a compensation package of Rs 8-16 lakh per acre. ArcelorMittal has asked for 4,500 acres at Kuditini in Bellary district to set up their 6-million tonne per annum unit, at an intended investment of Rs 30,000 crore.

“The state government has finalised the rehabilitation package for the land losers in Kuditini. The Karnataka Industrial Area Development Board (KIADB) has already released Rs 50 crore to the district administration to acquire land. The acquisition process will start in a few days,” V P Baligar, principal secretary, commerce and industries, told Business Standard.

He said by and large, the land losers had accepted the package. In addition to cash compensation, the government would give five per cent reservation in admissions to children of the land losers in ITI (Industrial Training Institute) and GTTC (Govt Toolroom and Training Centre) diploma courses. The eligible candidates will also be given jobs once the steel plant comes up, he said.

Baligar said ArcelorMittal has also come forward to set up an ITI in Bellary district exclusively for the children of land losers. The company has already deposited an initial amount of Rs 270 crore with KIADB for the acquisition. The government has recommended grant of 211.25 hectares of mining area in the Donimalai range of Sandur taluk. The project has also got forest clearance and water allocation has been made from the Tungabhadra dam.

Apart from ArcelorMittal, the state government has also recommended to the Centre for prior approval in grant of mining lease to some other steel companies, which had signed agreements during the Global Investors’ Meet on June 3 and 4. The state has identified 79.3 hectares of mining area for Bhushan Steel Ltd and 16.2 hectares for Kalyani Steel Ltd in the Donimalai range.

BS (http://www.business-standard.com/india/news/compensation-fixed-for-arcelormittal-project-in-k%5Ctaka/407263/)

S. Rajendran

* Farmers to be well compensated for land
* Firms seek land in Bellary, Gadag, Bagalkot, Haveri, Raichur and Koppal districts
* Final notification for acquisition of land for ArcelorMittal and Brahmani Steels issued

Bangalore: That giant steel manufacturers are expected to set up base in Karnataka is now certain given the fact that they have remitted to the State Government a major part of the money that they have to pay towards the cost of land acquisition.

Sources in the State Government told The Hindu here on Monday that the steel manufacturers have sought lands in the districts of Bellary, Gadag, Bagalkot, Haveri, Raichur and Koppal, and several taluks of all these districts are known for iron ore deposits. Each of the steel units have sought between 1,000 acres to 5,000 acres of land.

Chief Minister B.S. Yeddyurappa, who is keen on banning iron ore exports from the State, is himself closely monitoring the implementation of the memorandum of understanding signed with the steel manufacturers and others during the Global Investors Meet held some time ago. The State Government is stated to have constituted a high-level committee under the leadership of Chief Secretary S. V. Ranganath and Principal Secretary, Department of Commerce and Industries, V.P. Baligar to hold a regular review with the firms and serve as a facilitator to their requirements. It is a weekly review with them.

ArcelorMittal and Brahmani Steels (floated by the family of Minister for Tourism G. Janardhan Reddy) are being provided with lands in Bellary taluk and both of them have each sought about 4,000 acres. The Government has now issued the final notification for the acquisition of these lands and the two companies have been asked to pay the total amount for the lands being acquired for them by the Karnataka Industrial Areas Development Board. While ArcelorMittal has so far deposited around Rs. 350 crore, Brahmani Steels has deposited Rs. 270 crore and has been asked to pay another Rs. 57 crore for the total cost.

Asked on the implementation of the MoUs signed with the steel manufacturers during the Global Investors Meet, Mr Baligar said the State Government was in the process of acquiring nearly 40,000 acres for several giant steel manufacturers, including ArcelorMittal, Posco and Tatas, in the Bellary and adjoining districts. Farmers will be paid a compensation higher than the market value of the land and according to reports from the Deputy Commissioners in the districts, barring a few instances, there has been an overwhelming response from the farming community to part with their land. Of the one lakh acres being acquired (to serve as a land bank for the benefit of industries) , a half of the acquired lands will be made over to the steel manufacturers.

In the meanwhile, sources said, Posco which had earlier sought to establish a steel mill at Gadag has now opted for Koppal, and Hazira Steel limited of the Essar group has opted for lands in Gadag district. The Tata steel plant will come up at Haveri. Of the Rs. 1,050 crore received by the State Government from various manufacturing units , steel manufacturers alone have paid about Rs. 800 crore and a major part of this has come from ArcelorMittal and Brahmani steels. It takes about four years or more for commissioning a major steel plant and the Government is working at tying up for electricity and water supply to these units.

The Hindu (http://www.hindu.com/2010/09/07/stories/2010090761550600.htm)

Haveri: We are not ready to handover land: farmers (http://timesofindia.indiatimes.com/city/hubli/We-are-not-ready-to-handover-land-farmers/articleshow/6508107.cms)

Gallantt Metal plans Steel and Power projects

India Infoline News Service (http://www.indiainfoline.com/Markets/News/Gallantt-Metal-plans-Steel-and-Power-projects./4925080776) / 09:13 , Sep 07, 2010
Further the Company has announced that it has acquired a land of 106 acres (approx.) for the expansion plan at the above stated site.

Gallantt Metal Ltd has announced that the Board of Directors of the Company at its meeting held on September 06, 2010 has considered and approved the expansion plan of the Company

The Board approved the expansion plan of the Company at village-Halavarthi, Taluke & District - Koppal, Karnataka and to come out with Steel and Power projects.

Further the Company has announced that it has acquired a land of 106 acres (approx.) for the expansion plan at the above stated site. The Company has also obtained clearance for the expansion plan from the Karnataka Government and Ministry of Environment and Forests.

Further, the Project size and shape shall be decided in the due course of time and shall be informed accordingly.

Mahesh Kulkarni / Bangalore September 07, 2010, 1:13 IST

Events seem to be moving in the right direction for ArcelorMittal’s project in Karnataka. The state government, which had promised speedy clearances late last year for the company, the world’s largest steel maker, has finalised the compensation and rehabilitation package for those whose land will be taken over.

This follows the state’s recommendation on June 15 to the Centre for prior approval for grant of an iron ore mining lease to ArcelorMittal. The land prices have been finalised close to a month after the first dialogue with farmers, a top bureaucrat said.

The B S Yeddyurappa government has prepared a compensation package of Rs 8-16 lakh per acre. ArcelorMittal has asked for 4,500 acres at Kuditini in Bellary district to set up their 6-million tonne per annum unit, at an intended investment of Rs 30,000 crore.

“The state government has finalised the rehabilitation package for the land losers in Kuditini. The Karnataka Industrial Area Development Board (KIADB) has already released Rs 50 crore to the district administration to acquire land. The acquisition process will start in a few days,” V P Baligar, principal secretary, commerce and industries, told Business Standard.

He said by and large, the land losers had accepted the package. In addition to cash compensation, the government would give five per cent reservation in admissions to children of the land losers in ITI (Industrial Training Institute) and GTTC (Govt Toolroom and Training Centre) diploma courses. The eligible candidates will also be given jobs once the steel plant comes up, he said.

Baligar said ArcelorMittal has also come forward to set up an ITI in Bellary district exclusively for the children of land losers. The company has already deposited an initial amount of Rs 270 crore with KIADB for the acquisition. The government has recommended grant of 211.25 hectares of mining area in the Donimalai range of Sandur taluk. The project has also got forest clearance and water allocation has been made from the Tungabhadra dam.

Apart from ArcelorMittal, the state government has also recommended to the Centre for prior approval in grant of mining lease to some other steel companies, which had signed agreements during the Global Investors’ Meet on June 3 and 4. The state has identified 79.3 hectares of mining area for Bhushan Steel Ltd and 16.2 hectares for Kalyani Steel Ltd in the Donimalai range.
BS (http://www.business-standard.com/india/news/compensation-fixed-for-arcelormittal-project-in-k%5Ctaka/407263/)

* Subcommittee of State Wildlife Board to meet stakeholders
* Bhushan Steel seeks NOC from the Assistant Conservator of Forests
* Activists urge authorities to protect wildlife habitat in and around the bear sanctuary

Bellary: The subcommittee of the State Wildlife Board, headed by cricketer Anil Kumble, will examine the proposal of the Bhushan Steel to set up a steel plant in Gadiganur village, adjacent to the Daroji Bear Sanctury, according to B.K. Singh, Principal Chief Conservator of Forests (Wildlife).

Mr. Singh, who was on a day's visit to the Bear Sanctury for routine inspection, told The Hindu on Monday that the Assistant Conservator of Forests (ACF) Ravindranath had received a proposal from Bhushan Steel seeking a No Objection Certificate (NOC) for setting up of its six million tonne steel plant.

“On getting the proposal forwarded by the ACF, it would be placed before the sub-committee to examine as to whether the NOC could be issued or not for setting up of the steel plant. Then, its recommendation would be forwarded to the State Committee on Wildlife, which is headed by the Chief Minister. The State Committee will have to forward its decision/recommendation to the National Committee on Wildlife, which is the final authority to clear the proposal”, he said.

It may be mentioned here that the State Government move to allot land to Bhushan Steel for setting up of its mega steel plant at Gadiganur and surrounding villages had come as a shock to nature lovers and wildlife activists in Bellary district. The activists felt the move is a threat to ‘Karadidham', Asia's first and the biggest Sloth Bear Sanctury, located near Hampi in Bellary district.

They have also expressed concern over the ecologically sensitive area getting disturbed with the setting of the steel plant close to the sanctuary.

Mr. Singh said that the sub-committee may visit the proposed plant site and interact with the stakeholders before taking a decision in the matter.

“The process would commence immediately after the proposal is tabled before the sub-committee”, he said adding that the department had received only one proposal so far seeking the NOC.

To a question, Mr. Singh said that certain area around the bear sanctuary has to be declared as eco-sensitive zone.

“What should be the minimum distance between the ecologically sensitive area and the proposed steel plant will have to be fixed after making a proper study. The matter would be forwarded to the Ministry of Environment and Forests (MoEF) to issue a notification in this regard.

Naturalists Santosh Martin, who is also honorary wildlife warden in the district, and Samad Kottur of Society for Wildlife and Nature, met Mr. Singh and submitted a memorandum with a request to protect the wildlife habitat in and around the bear sanctuary.

The Hindu (http://www.hindu.com/2010/09/07/stories/2010090758160300.htm)

^^ & ^^^^ are repetation.

NEW DELHI: The Karnataka Government today said ArcelorMittal has agreed to pay Rs 350 crore to farmers whose land is being acquired for its Rs 30,000 crore steel project in the state.

"The company has already deposited Rs 267 crore with the Karnataka Industrial Area Development Board (KIADB) and we expect to transfer the land to it soon after disbursing the the amount among 1,000 farmers in the next two months," State Principal Secretary, Industries, VP Baligar told PTI over phone.

The state government is acquiring about 4,000 acres in Bellary district for the six million tonnes per annum (MTPA) project being put up by global steel major.

He said the land price has been fixed between Rs 8 lakh -Rs 16 lakh per acre.

"We have reached an understanding on the price for land. This is a significant progress on the project," ArcelorMittal spokesperson said, adding the ground breaking ceremony would take place soon after physical transfer of land.

The company's mega Rs 1 lakh crore steel project in Orissa and Jharkhand is stuck in delays and controversies over land acquisition and it has been scouting for investment in other destinations.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/ArcelorMittal-to-pay-Rs-350-cr-for-land-in-Karnataka/articleshow/6514572.cms)

Press Trust of India / New Delhi September 08, 2010, 13:25 IST

Hindustan Copper is in talks with the Karnataka-based Hutti Gold Mines to form a joint venture for reviving copper mining activities, which are abandoned by the state PSU almost a decade ago.

"With rising copper prices, Hindustan Copper Ltd (HCL) has given a proposal to Hutti Gold Mines to revive copper mining activities in a joint venture. The state PSU used to earlier supply copper concentrates to Hindustan Copper," a government official said.

The proposal from HCL for resuming copper mining at Chitradurga reserves of the Hutti Gold Mines in Karnataka, where mining was abandoned in 2001, comes at a time when the state-owned firm is in process of augmenting production and revive operations. The Chitradurga mines is estimated to house about 7.8 million tonnes of copper ore.

Hutti Gold Mines abandoned copper mining, as it focussed more on producing gold, its core business. Also it lacked sophisticated mining equipment and monetary resources to continue the activity at Chitradurga.

Analysts said HCL is working towards diversifying its portfolio and expanding operations, before its 20 per cent share sale hits the capital market in the November-December this year.

Hindustan Copper, the sole government-run producer of the metal, is seeking controlling stake in the joint venture, the official said.

Copper prices were hovering in the range of around USD 800-900 a tonne in 2001, when copper mining was abandoned by Hutti Gold Mines. At present, copper prices are at around USD 8,000 a tonne. Since May this year, prices have surged by about $2,500 a tonne.

"Hindustan Copper is preparing the draft red herring prospectus for the FPO, which is expected to be filed with market regulator Sebi by the September-end or early next month. It is hopeful of forming the JV before the FPO," the official added.

The company could not be contacted for comments.

HCL had earlier said it would embark on increasing its mining capacity from the present 3.2 million tonne annually to 12 million tonne in the next five-six years, at a capital investment of Rs 4,580 crore.

The company is also eyeing copper assets in countries like Chile and Namibia, Afghanistan.
BS (http://www.business-standard.com/india/news/hindustan-copper-in-jv-talkskarnataka-psu/108050/on)

ArcelorMittal may get land for $6.4 bln Karnataka plant by Dec

(Reuters) - ArcelorMittal(ISPA.AS), the world's top steelmaker, can start building its $6.4 billion steel plant in Karnataka by December after local authorities compensate displaced farmers, a senior government official said on Wednesday.

"First we have to pay the compensation to the farmers. That process has begun. Then we will take over the land," V.P. Baligar, principal secretary of commerce and industry in the Karnataka government told Reuters from Bangalore.

Farmers and tribesmen, reluctant to surrender their land, have opposed several projects including Vedanta Resources'(VED.L) plans to mine bauxite, an expressway that will connect New Delhi with Agra and POSCO's(005490.KS) planned steel plant in Orissa.

Baligar said he expects farmers to accept the compensation as it offered them a price they would not easily get from crop cultivation.

"We have prior experience in acquiring land for industrialisation. The only hesitation may come on the extent of the compensation. We are giving them much more than they now get," the official said.

Baligar said that most of the land was currently used for growing one rain-fed crop in a year such as barley.

"Paying compensation will take about a month's time. Hope so ... by November-December, at least land will be handed over to them (ArcelorMittal) and they can start the civil works."

Baligar said ArcelorMittal has deposited 3.5 billion rupees ($75 million) with the state which was being used for payments to the farmers at the rate of 800,000 rupees to 16,00,000 rupees for one acre.

In an interview in August, Karnataka's chief minister B.S. Yeddyurappa told Reuters the land acquisition was almost complete for ArcelorMittal's 6-million-tonne steel plant in Bellary district and other facilities and approvals would be expedited.

Baligar said about 1,000 farmers would be getting the compensation and he expected most of them to sell out without resistance.

He said the state government was also helping several other steel companies including POSCO to acquire land totalling to 40,000 acres.

"POSCO has already deposited the money.... They are sending one more technical team to finalise the land location," he said. POSCO plans to spend 300 billion rupees for a 6-million-tonne steel plant in the state.

The state government was keen to push new projects and was convincing people to accept it, the official said.

"We are saying industrialise and flourish."

http://in.reuters.com/article/idINIndia-51361820100908
:cheers:

NEW DELHI: A day after Karnataka government announced about Rs 350 crore compensation to be paid by steel major ArcelorMittal for land acquired for its Rs 30,000 crore project in the state, the farmers staged protests demanding higher compensation.

"About 500 farmers in Bellary staged protests against the prices fixed by us for land acquired for ArcelorMittal's project. The farmers are demanding Rs 50-60 lakh an acre against Rs 8 lakh-Rs 16 lakh an acre fixed by us," Deputy Commissioner Bellary B Shivappa told PTI over the phone.

The global steel major had entered into a pact with the Karnataka government in June this year to set up a Rs 30,000 crore plant with a capacity of 6 million tonnes per annum (MTPA) in the state.

"We are holding meeting with the farmers to convince them over pricing issue. We have fixed the prices on the basis of distance of land from National Highways," State's Principal Secretary Industries VP Baligar told PTI.

While the price of land within 500 metres of NH 17 has been fixed at Rs 16 an acre, the stretches beyond it have been rated at Rs 12 lakh per acre and Rs 8 lakh per acre, he said.

Baligar added that nearly 4,000 acres of land has already been acquired for the project and the compensation would be disbursed among nearly 1,000 farmers as soon as they agree over the prices.

The steel major has already deposited Rs 267 crore with the Karnataka Industrial Area Development Board (KIADB) and would soon pay the remaining, he said, adding, "We expect to accomplish physical transfer of land to ArcelorMittal soon."

"We have reached an understanding on the price for land and expect to get its possession soon. This is a significant progress on the project," ArcelorMittal spokesperson said, adding that the ground breaking ceremony would take place soon after physical transfer of land.

The company has been struggling to launch its proposed Rs 1 lakh crore steel projects in Orissa and Jharkhand (12mpta each) for about five years now.

The projects have been stuck due to regulatory hurdles and problems in land acquisition and it has been scouting for investment in other destinations.

ET (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/metals--mining/Farmers-protest-over-land-prices-for-ArcelorMittal-project/articleshow/6519750.cms)

Need more rounds of negotiations.

BS Reporter | 2010-09-09 01:41:00


Surya Roshni, exporter galvanised iron (GI) pipes and the flagship company of Rs 2,000-crore Surya group, will begin commercial production of GI pipes form its Shimoga plant in a year. The company has begun construction and has already ordered for machinery.

The project, which would have a capacity of 1 million tonne, is being taken up at an estimated cost of Rs 100 crore. It would cater to the Tamil Nadu, Karnataka and Andhra Pradesh markets.

Apart from setting up a unit at Shimoga, the Surya group is adding two more units at its Bahadurgarh factory in Haryana to augment the GI pipe production capacity to meet increasing global demand.

It now has plants at Gwalior in Madhya Pradesh and Bhuj in Gujarat producing over three lakh tonne per annum, according to Surya Roshini Limited chairman and managing director JP Agarwal.

He was here on Wednesday to announce a consumer awareness programme.

He said spurious pipes made up for 30 per cent of the total steel pipe market, which was estimated to be around Rs 10,000 crore per annum.

http://sify.com/finance/surya-roshni-to-produce-gi-pipes-from-shimoga-news-news-kjjbFvfdfaf.html

BANGALORE: Rejecting Karnataka government's plea, the Centre today ruled out the possibility of banning iron ore exports, saying such move would result in massive unemployment, revenue losses and social tensions.

Union Commerce and Industry Minister Anand Sharma said Indian mines produced close to 230-235 million tonnes annually and the domestic consumption was 85- 90 million tonnes, leaving an exportable surplus of over 140 million tonnes.

He said this surplus could not be stored because it was environmentally hazardous.

Sharma pointed out that mining was done in poor, backward areas of the country and the mining industry contributed substantially to the country's economy. "This industry employs tens of thousands, may be millions. If the export is stopped, it would lead to massive unemployment leading to social tensions", he said.

The Minister questioned the Karnataka government's move to ban export of iron ore from 10 minor ports of the State.

"I don't think that when you allow illegal mining....just stopping movement from minor ports is going to help", Sharma told reporters here.

Stressing that legal and illegal mining were different issues, he said: "It would be better for the Government of Karnataka, for the Chief Minister of Karnataka (B S Yeddyurappa) not to confuse the issue.

"They should check illegal mining. That's the real issue, that's the core", Sharma said, adding, "those enaged in legal mining cannot be punished along with those who are into illegal mining."

He noted that what India exported primarily was the iron ore fines and not the lumps because the lumps were consumed by the domestic steel industry.

Karnataka in recent weeks has repeatedly pleaded with the Centre to ban export of iron ore, to help curb illegal mining.


it would lead to massive unemployment
This is what happening in bellary region :ohno:

http://expressbuzz.com/states/karnataka/centre-rules-out-banning-iron-ore-export/205946.html

KIOCL unveils multi prong expansion plans
Wednesday, 15 Sep 2010

FE reported that Kudremukh Iron Ore Company Limited has chalked out multiple programs to expand its presence in various business sectors. The company is in the process making major investments as part of its diversification exercise while increasing the efficiency of its pellet manufacturing facility.

The company would utilize its entire cash reserves of INR 1,200 crore for the programs. Besides, it plans to raise some debt as it has identified at least four projects including one to set up a mega integrated steel plant in north Karnataka. While investing in Brownfield projects, the company has also finalized a few Greenfield projects through JV.

Mr K Ranganath CMD of KIOCL said that the company would modernize its existing pellet plant and set up a ductile iron spun pipe plant at its blast furnace unit in Mangalore. It would also establish coke oven battery and captive power plant in the same BFU complex. The integrated steel plant project is also taking shape as the company has identified the JV partner.

Mr Ranganath said that the company would invest around INR 120 crore this financial year to modernize its pellet plant by installing horizontal pressure filters to increase output and quality. The pellet production level would increase to 3.5 million tonnes from the current 1.5 million tonnes to 2.5 million tonnes.

He said that the company would set up INR 330 crore DISP plant as part of its diversification program. The plant would be set up as JV with another PSU, Rashtriya Ispat Nigam Limited, the flagship company of Visakhapatnam Steel Plant. The capacity of the plant will be around 0.1 million tonnes per annum. It would be 50:50 ventures between KIOCL and RINL. Further, the company is in the process of establishing INR 300 crore COB and CPP projects. All these projects would come up in the company's blast furnace unit in Mangalore.

Currently, the company is trying to fix an agency for valuation of BFU assets in this connection. Another major investment would be for its INR 9,000 crore proposed integrated steel plant to be set up in JV with URSIPL. KIOCL will pick up 26% equity stake in the JV while the remaining stake will be owned by URSIPL. For the 26% stake, KIOCL should invest around INR 2,250 crore to INR 2,600 crore.
FE
Source (http://www.steelguru.com/indian_news/KIOCL_unveils_multi_prong_expansion_plans/165333.html)

(Sourced from Financial Express)

^^
India's KIOCL, RINL continue talks for ductile iron pipes (http://www.steelbb.com/login/?r=%2F%3FPageID%3D157%26article_id%3D81716)

Panama Group has plan for a 5000 tons per day steel plant in Karnataka (http://news.google.co.in/news/url?sa=t&ct2=in%2F0_0_s_0_2_aa&ct3=MAA4AEgAUAJgAmoCaW4&usg=AFQjCNGdG8w4lmg45d5CBc2_u2LuBD2M4Q&cid=8797590156834&ei=AJOQTOjOEsuccbHmyZ0B&rt=SEARCH&vm=STANDARD&url=http%3A%2F%2Fmangalorean.com%2Fnews.php%3Fnewstype%3Dlocal%26newsid%3D196837)

^^^^
A delayed comment


it would lead to massive unemployment
This is what happening in bellary region :ohno:

http://expressbuzz.com/states/karnataka/centre-rules-out-banning-iron-ore-export/205946.html
Media is reporting two problems as a consequence of export ban namely unemployment and illegal mining. If there is massive illegal mining then there can not be massive unemployment problem as people are still employed by illegal miners. To me it seems only one of these problem can occur in massive scale. The unemployment problem I have already discussed in my previous posts and some additional unemployment problems are discussed below.


BANGALORE: Rejecting Karnataka government's plea, the Centre today ruled out the possibility of banning iron ore exports, saying such move would result in massive unemployment, revenue losses and social tensions.

From jobloss point of view we have to not only worry about unemployment due to stoppage of mining but also unemployment, revenue losses and social tensions generated due to unavailability of mines to public sector companies like KIOCL also. Note that KIOCL pellet production plant was shut for a long time due to unavailability of mines.

Any idea how many public sectors companies and their employees are suffering due to preference given to mining by private sector companies?

And also we have to consider how many tribal families have become homeless and jobless due to mining in their zones.


He said this surplus could not be stored because it was environmentally hazardous.

On one hand people and media are worried about environmental problems caused by excessive mining. This is the other aspect of environmental problem caused by storing ore.

If mining is stopped completely then where is the issue of storing iron ore to cause environmental hazard? (Of course, there is problem of unemployment if mining is stopped). Whatever in store already could be handed over to public sector companies which are running short of ore.


He noted that what India exported primarily was the iron ore fines and not the lumps because the lumps were consumed by the domestic steel industry.

Karnataka in recent weeks has repeatedly pleaded with the Centre to ban export of iron ore, to help curb illegal mining.

I have a question here. If export ban on low-grade iron ore result in illegal mining then why export ban on high-grade iron ore does not result in illegal mining and export of high-grade iron ore?


As many as 25 of the 90 operational mining companies in the state export over 10 million tonnes of low-grade iron ore from these two districts for which there is no market in the country. These companies have collectively invested over Rs 200 crore in the last couple of years on setting up support infrastructure like cranes, sheds for storing ore, railway sidings and port equipment for exports. In addition to this, companies like Sesa Goa, MSPL, Bharat Mines and S K Modi have also invested Rs 100 crore to buy railway rakes to transport ore to the ports.

Any public sector company can easily invest Rs.200 to 300 crores and take over these assets. In this way revenue generated by export will be with the government itself. Once the steel plants start functioning either mines can be handed over to them or iron ore can be sold to them.


By looking at various media reports it appears that there are differences between Union Commerce and Industry Ministry & Mining ministry, Environment Ministry and Steel Ministry. I just hope that Union government will come up with just one cohesive view so that our industries and employment will grow and at the same time environment is not polluted.

OK. There is some good news on converting low-grade iron ore to high-grade iron
Mangalore youth will show WEF a way to make ore export more profitable (http://www.dnaindia.com/bangalore/report_mangalore-youth-will-show-wef-a-way-to-make-ore-export-more-profitable_1436609)

If we look globally China (having almost our population) is consuming about 10 times steel compared to India. So we require more steel plants and ore to grow to the level of China. Hope that innovations like benefaction plants can help India to use its iron resources for its own growth. Also if China can export finished steel products India can also do that...

Thursday, September 16, 2010 8:23:54 PM by IANS ( Leave a comment )

ArcelorMittal London, Sep 16 (IANS) Facing delays in land acquisition and protests by tribals in India for its proposed units, top global steel producer AreclorMittal has revised its strategy and will now focus on smaller plants with annual production capacities of 1.5-3 million tonnes.
The $65-billion group led by London-based industrialist L.N. Mittal, which had proposed two mega steel units in India of 12 million tonnes each in Jharkhand and Orissa, now views Karnataka as the state with the least implementation risk.

“For Karnataka greenfield project, land acquisition is expected to be completed by the end of this year. We are also expecting to get some mining leases in Karnataka,” the group’s chief financial officer Aditya Mittal told an investor conference Thursday.

He said the group will consider factors beyond iron ore deposits for future projects like logistics, proximity to markets, infrastructure, execution time, social factors, business friendliness and a downstream presence which could supply to its global network of mills.

“Our strategy in India has changed. We are now on the ground selling branded steel. Our first domestic production is expected by 2013,” Mittal, who is also member of the group management board, told the conference simultaneously from here and New York.

ArcelorMittal has a 34 percent stake in Indian steel producer Uttam Galva and is a co-promoter of the firm.

After becoming the market leader in South America, Central Asia and Africa, and establishing joint venture projects in the Middle East and China, India and Brazil will be the company’s focus markets.

AreclorMittal expects India's steel demand to triple to 150 million tonnes by 2020 and feels the its portfolio can be balanced by establishing a presence in the country, which it called one of the most growth-oriented markets in the world.

Mittal said even though progress had been been made in getting licenses for mines and land in Jharkhand and Orissa, the plans had been slowed due to what he described as “high tribal influence”.

He said progress on land acquisition had been especially slow in Orissa.

According to the presentation, the stake in Uttam Galva has given the group not just access to a large downstream network but also a partner for a potential greenfield project in western India.

Mittal did not did not mention the state in which it proposes to set up a unit, but said: “The project locations will be well spread across east, west and south India. There will be a mix of captive and partially bought-out iron ore projects.”

There were reports of a possible stake sale by steel company Ispat Industries to ArcelorMittal.

Ispat is incidentally owned by L.N. Mittal’s younger brothers Pramod and Vinod and has a huge Rs.6,700 crore of long-term debt with 15 creditors, including banks and other financial institutions.

Ispat Thursday announced a strategic sale of 10 percent of its equity to Stemcor, the world’s largest independent steel trader, for an undisclosed amount.

Source (http://www.thaindian.com/newsportal/business/arcelormittal-changes-india-strategy-focus-on-smaller-units_100429751.html)

Krishnamoorthy I feel its good if they ban export of iron ore and instead set up steel mills in India itself.We need to grow in the coming decades--Steel for a country is like what protein is for a body.Steel-Cement-Oil basic Vitamins/Minerals for any country to develop.

What India is doing with its steel is the same what gulf countries are doing with their oil...:gunz:

^^ Golf countries may not face much problem as they are thinking of constructing huge solar plants and selling power to other countries in future.

China,Japan and USA are doing a good job by increasing the stockpile which they have in abundant....

BANGALORE: The High Court on Thursday issued notice to the State, Centre and few mining companies on a petition seeking the nationalisation of iron ore in the state.

While hearing the public interest litigation (PIL) flied by Arun Kumar Agarwal, a citybased advocate, the division bench comprising Chief Justice J S Khehar and Justice S A Nazir issued notice to the state and the Centre. The bench also asked mining companies to file their reply on the matter.

The petitioner sought the Centre's direction to regulate the use of iron ore for national interest and also the quashing of the provisions of the Mines and Minerals Development and Regulation Act which gave limited power to the state, to regulate illegal mining.

The petitioner pointed that the present method of allotting mining lease was discriminatory as it provides a token of royalty to the state government and results in making the rich, super rich.

"The MMDR Act permits the foray of public assets by selected private persons and so, it violates the fundamental rights of the Constitution. The private profiteers engaged in legal mining have not declared their profits honestly," the petitioner argued.

In the past ten years, the profit of iron ore has shot up from Rs 50 per tonne to `5,000 per tonne but the royalty remained fixed to less than 0.5 per cent per tonne. Despite the large scale illegal mining prevalent in the state for several years, the state government has failed to keep check, the petitioner said.

Meanwhile, the same bench granted permission to Arun Kumar Agarwal to make ArcelorMittal and Posco as respondents in another PIL, challenging the action of the state in granting principle approval to both companies, to start steel plants in Bellary.

The petitioner contended that the state had given mining lease to outsiders, instead of giving the same to public sector units.

http://expressbuzz.com/states/karnataka/nationalisation-of-iron-ore-notice-to-state/207469.html

BANGALORE: The state government on Friday finally came up with a proposal to settle the disputes with mining owners regarding the issuance of mineral despatch permits.

In a proposal submitted to the High Court, the state refused to issue bulk permits, but it agreed to issue one permit for one vehicle for a bulk quantity to a single applicant.

After High Court suggestions, the state had a discussion with mine owners regarding the issuance of mineral despatch permits and to clarify the Karnataka Mineral Regulation of Transport Rules 2008, regarding issuance of mineral dispatch permits and validity period of said permits.

The proposal was placed before a division bench comprising Chief Justice JS Khehar and Justice SA Nazir, which is hearing a batch of petitions challenging the 2008 rules.

The state has allowed a maximum of eight days of validity period for mineral despatch permits and the forest way permits after calculating for a distance of 100 kilometres per day and a total distance of 500 kilometres for a vehicle for transporting iron ore.

In respect of transport of the entire iron ore by way of railways, from the loading point to the destination, mineral despatch permits will be issued for a period of 15 days, the state submitted before the High Court.

The mines and geology department will issue an order of release of permits after due verification and ensuring that the royalty has been paid for the quantity of ore.

The forest department has agreed to complete all the necessary enquiries within a period of three days from the date of issue of release order of the department of mines, the state said.

The mineral despatch permits and forest way permits are issued simultaneously at the mine head and permits will clearly show details like mining lease number, details of lessee, vehicle number, actual quantity loaded into the vehicle, duration of validity, destination and other details, the state said.

One permit will be issued for railway transportation of ore of quantity of 3,800 metric tonnes. It would be issued with a validity period of 15 days, the state said.

Transportation of mineral would be regulated by an authorised officer who would collect permits and ensure the quantity of mineral transported is legal, the state submitted in the HC.

For this proposal, the petitioners have taken time to reply. The division bench adjourned the hearing to next Friday.

Meanwhile, the state has submitted the lists of mining companies which are facing cases. Many cases have been filed against VS Lad and Sons company.

The entire mining industry is indulging in illegal activities. It is difficult for the state to differentiate between legal and illegal mining. So the ban order on export of ore, the advocate general submitted.

http://expressbuzz.com/states/karnataka/state’s-no-to-bulk-mineral-permits/207857.html

* Modernisation of VISL will help in meeting present requirements

SHIMOGA: Shimoga MP B.Y. Raghavendra said that there was a proposal to modernise the Visvesvaraya Iron and Steel Limited (VISL), a unit of the Steel Authority of India Ltd (SAIL), at a cost of Rs. 2,000 crore.

Speaking after commencing the crushing of sugarcane for the year 2010-11 at the MPM Sugar Factory in Bhadravati on Sunday, he said that a discussion was held with the SAIL authorities in this regard.

He said that the modernisation of the VISL would help in meeting the present requirements.

The Hindu (http://www.hindu.com/2010/09/20/stories/2010092050590300.htm)

Bangalore: South Korea-based Posco, the world’s fifth largest steel maker, has deposited an initial instalment of Rs 60 crore with the state government of Karnataka, thereby committing itself to the Rs 32,336-crore integrated steel plant in the state.

The state government will use the fund to compensate the farmers, who are offering their lands for the project. With this, Posco has joined the list of companies including ArcelorMittal, which have deposited funds, showing the green signal for the state government to proceed further with the land acquisition process.

Talking to FE, Karnataka minister for large and medium scale industries Murugesh Nirani said, “Posco has deposited Rs 60 crore with the state government as first instalment to initiate preliminary land acquisition procedure.”

They have seen sites in three districts in the state namely Bagalkot, Koppal and Gadag. In a week, he said the official team from Posco will visit Karnataka to finalise the site location, after which the state government will notify the land for acquisition. “We have asked Posco to choose the site in districts other than Bellary,” he said. This is to avoid pollution in the mining district of Bellary and expand industrial activities in other districts, he added.

However, these three districts are located adjoining Bellary, which has rich iron-ore content. Already JSW has 7-mtpa capacity steel plant in Bellary district, where ArcelorMittal will also set up their greenfield Rs 30,000-crore steel facility. KIADB would acquire 5,000 acres for Posco, which would build 6 mtpa integrated steel plant with 400 mega watt (mw) captive power generation station with an investment of Rs 32,336 crore. The proposed steel facility would require power of 2.30 lakh kilovolt-amphere (kVA) and 2-lakh kilo litre per day of water, said an official attached to Karnataka Udyog Mitra, the state-owned single window agency involved in industrial promotions in Karnataka.

Earlier in January, the steel giant has agreed to its steel manufacturing facility in Karnataka. But the company had put a condition on the government to sanction captive mines before setting up the plant. The state government has not accepted for it, resulting in the company withdrawing its investment proposal within a month. However, the company has singed an MoU with the government in the Global Investors Meet (GIM) held in June to invest in Karnataka. Already, ArcelorMittal has deposited Rs 267 crore with the Karnataka Industrial Area Development Board (KIADB) for acquiring.

4,000 acres from the farmers in Kudithini village in Bellary district. The total compensation to be paid by Arcelor Mittal is estimated at Rs 350 crore.

FE (http://www.financialexpress.com/news/posco-deposits-rs-60-cr-with-ktaka-commits-to-rs-32-336cr-steel-plant/686227/2)

HALIYAL: Western Ghats Task Force (WGTF) chairman Anant Hegde Ashisara asserted that mining activities would not be encouraged in the Western Ghats region and that there was no proposal for any major project in the region.

He was speaking after inaugurating the coordination meeting of EcoDevelopment Committees (EDC) at the Kulagi Nature Camp, near here on Wednesday. The programme was held under the joint auspices of the Department of Forest and the WGTF. He said that the implementation of the Project Elephant programme would reduce the incidents of manelephant conflict in the region. He said the 24 ECDs formed in the DandeliAnshi Tiger Reserve territory would strive for development of ecotourism in the area.

To minimise the dependence of forest dwellers on firewood, solar energy and the Astra (smokeless) chullahs were made available at subsidised rates, he said. He claimed that an expert committee is studying the exact causes of landslides in the region. The paper mill in Dandeli has been asked to take steps to avoid pollution and to fulfil its social obligations.

Ashisara handed over compensation cheques worth `42,000 for the loss of crops and cattle due to wild animals to 14 beneficiaries. He also gave cheques worth `2 lakh to ECDs as assistance.

Deputy Conservator of Forests Sunil Panwar disclosed that the state government had sanctioned `5 lakh for creation of facilities of solar energy and gobar gas for farmers and forest dwellers.

Tiger Conservation Foundation member Nandu Teli, EDC members Shridha Desai and Krishna Desai and ACF BG Nayak were present.

http://expressbuzz.com/states/karnataka/‘no-mining-in-western-ghats’/209216.html..:cheers:

Capacity Expansion

JSW Steel plans to double capacity to 16 million metric tons by 2015, Rao said. It aims to spend 145 billion rupees in the next five years to add 2 million tons of capacity at its Vijayanagar plant in the southern state of Karnataka and build a 3 million ton plant in the eastern state of West Bengal.

Source (http://www.businessweek.com/news/2010-09-23/jfe-jsw-may-jointly-set-up-high-grade-steel-plant.html)

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2010-09-24 22:50:00


Kolkata, Sep 24 (IANS) Steel major Tata Steel is likely to implement the three million tonne steel project of Tata Metaliks (TML) in Karnataka, a senior TML official said here Friday.

'If you look at the balance steel size, the project has to be done by someone with financial muscle,' TML's chief financial officer Koushik Chatterjee said on the sidelines of its annual general meeting.

TML is an associate company of Tata Steel with the later holding 46.66 percent in the company.

This decision has been taken as the parent company has better financial strength.

Tata Metaliks in June signed a pact with Karnataka government for an integrated 3 million tonne steel project at Haveri district during the Global Investors Meet.

'The final configuration of the project and its size would be decided after carrying out a feasibility study,' Chatterjee said.

Sify (http://sify.com/finance/tata-steel-to-implement-tata-metaliks-karnataka-project-news-default-kjywObfdbid.html)

NEW DELHI: Iron ore exports in August fell by 35.55 per cent to 4.38 million tonnes mainly due to the ban imposed by mineralrich state Karnataka on iron ore shipments and the prevalent monsoon season.

“The decline is mainly due to the Karnataka ban and the monsoon,” Federation of Indian Mineral Industries (FIMI) secretary general RK Sharma said.

According to the data compiled by FIMI, the country shipped 6.8 million tonnes of iron ore in the same period last year.

India, the world’s third largest iron ore exporter, had produced 218 million tonnes of iron ore in the last fiscal and exported almost half of it.

Of the total exports, more than 80 per cent was channelised to China, the world’s largest steel producer. Iron ore is a vital steel making raw material.

Karnataka had, during the last quarter, announced banning exports of iron ore from some of its ports in an attempt to curb illegal mining of the mineral.

On the outlook, Sharma said the demand has improved and so the prices.

“It is hard to predict the demand and price scenario which is mainly dependent on China. But for last few weeks demand and prices of iron ore have improved,” he said.

The prices are hovering at $145-150 a tonne at present, which has fallen from this year’s high of about $180 a tonne to s80 a tonne, Sharma said.

Indian Express (http://expressbuzz.com/states/karnataka/iron-ore-exports-fell-by-3555-percent/213489.html)

10 Oct, 2010, 10.17AM IST,PTI

MUMBAI: Surya Roshni, the flagship company of Surya Group, has earmarked an investment of Rs 100 crore to produce both pipes and lighting products at Shimoga in Karnataka .

"As part of our ambitious growth plan, we are investing Rs 100 crore to produce both pipes and lighting products at Shimoga in Karnataka. Production is set to begin by the start of the next financial year," Surya Group's executive director, Utkarsh Dwivedi said in Mumbai.

Surya Roshni as the biggest G I pipes producer in the country has steel pipe manufacturing units spread across a number of locations such as Bahadurgarh in Haryana, Gwalior in Madhya Pradesh, Bhuj in Gujarat and the new one in Shimoga.

Surya Roshni has recently set up a new pipe manufacturing unit at Kutch in Gujarat involving an investment of Rs 450 crore, Dwivedi said.

The company's quest for expansion of its production facilities for steel pipes is an ongoing process to meet rising demand. The plants at Bahadurgarh will augment G I capacity to meet increasing demand and it has installed a gas generator set from the UK to ensure continuous electricity supply.

ET (http://economictimes.indiatimes.com/news/news-by-industry/cons-products/durables/Surya-Roshni-earmarks-Rs-100-cr-investment-for-new-unit-in-Karnataka/articleshow/6722561.cms)

K'taka begins acquiring land for ArcelorMittal steel project

Acquisition of land for the mega steel plant of ArcelorMittal, the world’s largest steel maker, has commenced in Kuditini village of Bellary district in north Karnataka. With the farmers accepting the cash compensation package fixed by the state government, the Karnataka Industrial Area Development Board (KIADB) has started taking possession of the land.

The farmers had been asking for a higher cash compensation. They have since accepted the Rs 8-16 lakh per acre decided by the land fixation committee, headed by the deputy commissioner of the district.

The committee has fixed Rs 8 lakh per acre for land in the interior, Rs 12 lakh per acre if adjacent to the main road and Rs 16 lakh per acre for converted land. The prices are double the prevailing market value. Presently, an acre of land in the interior costs Rs 3-4 lakh and near the national highway, Rs 6-7 lakh an acre.

source (http://sify.com/finance/k-taka-begins-acquiring-land-for-arcelormittal-steel-project-news-equity-kktbE0heijc.html)

Karnataka rich in platinum deposits

New Delhi, Oct 19, DHNS:

Huge deposits of minerals of precious Platinum Group of Elements (PGE) such as platinum, palladium and nickel have been found in Davangere and Uttar Kannada districts of Karnataka, a Union Mines Ministry statement said on Tuesday.

The PGE ore was found in Hanumalapura, Tavaregere, Mesanikere and Magyathahalli in Davangere district and Kaiga, Mothimakki, Biroligudda and Suryakalyanigudda areas in Uttara Kannada district.

In Hanumalapura area alone, the Geological Survey of India (GSI) has estimated 0.84 million tonne of resources of PGE ore with an average grade of 1.79 gram per tonne. The GSI is the nodal agency under the ministry to regulate the minerals.

Another region in India where high PGE deposits were found was in Baula–Nuasahi region in Orissa, which had around 14.2 million tonne of PGE ore.

Reconnaissance permits

The Centre has granted 114 reconnaissance permits (RPs) to explore minerals like PGE, gold, silver, iron ore, cobalt and copper in 1.31 lakh square kilometres of the country for the
last three years.

This is as per a government policy to encourage private companies for exploration of PGE minerals. In Karnataka, the Centre has granted RPs to five companies to explore 5,031 sq km area.

The State Government had recently invited companies to invest in mining of the precious minerals at the Global Investors Meet in Bangalore. No investors have, however, come forward for exploration of the ore.


DHNS (http://www.deccanherald.com/content/106000/karnataka-rich-platinum-deposits.html)

ArcelorMittal's Bellary steel project passes farmers' test

BANGALORE: Arcelormittal’s plans to set up a six million tonne per annum (mtpa) steel plant in Bellary district of Karnataka is on track, with farmers coming forward to accept the compensation package for land acquisition.

The world’s largest steel producer had zeroed in on Kuditini in Bellary district to set up its plant and laid out a land requirement of around 4,000 acres. However, these plans were opposed by some farmer groups who were seeking a compensation higher than what was fixed by the government.

According to a senior state government official, a few farmers have already accepted the compensation amount and more are expected to join them in the coming days. The state government had fixed land prices in three slabs of Rs 8 lakh, Rs 12 lakh and Rs 16 lakh, depending on the accessibility to the main road.

The official said that it is only a small minority of farmers who are still opposed to the land acquisition as they were seeking prices five times higher than what had been fixed by the government.

To further incentivise the farmers to agree to the land compensation, priority would be given to them in providing jobs in the proposed steel plant, the official said.

ArcelorMittal has been the first to get off the block in setting up its steel plant in Karnataka and has already put in an application for securing captive iron-ore mines.

The state government has invited fresh applications for issuing iron-ore mining licences, with ArcelorMittal being one of the applicants, and this is expected to be given by the end of November this year.

During the Global Investors Meet held in June this year, Karnataka received investment proposals worth Rs 2 lakh crore from the iron and steel sector, which includes companies such as Posco, Bhushan Steel and Essar.

Besides ArcelorMittal, the companies which have deposited money with the government to acquire land include Posco, Essar Steel and Brahmani Steel. Posco has deposited Rs 60 crore with the Karnataka Industrial Area Development Board (KIADB) and sought 2,500 acres in Koppal district of the state to set up its plant. Essar Steel has deposited Rs 25 crore to acquire 1,500 acres in Gadag district for its 6 mtpa plant.

Besides these steel majors, others who have deposited the money towards the land acquisition include Brahmani Steel , seeking 5,000 acres in Bellary district and Bhushan Steel for 4,000 acres in the same district. Surya Vijaynagar Steel has sought 500 acres in Bagalkot district.

The state has earmarked Bellary, Raichur, Koppal, Bagalkot, Gadag and Haveri for proposed steel zone.

source (http://economictimes.indiatimes.com/news/news-by-industry/indl-goods-/-svs/steel/Arcelors-Bellary-project-passes-farmers-test/articleshow/6777622.cms)

if all these plants in more than 17,000 acres are built in 6-7 yrs then there will be acute shortage of power in karnataka
these are hell lot of plants these alone total more than 25 million tonne....
:cheers:

ArcelorMittal to face delay for mining licences in Karnataka

Jaishankar Jayaramiah
Posted: Saturday, Oct 30, 2010 at 2146 hrs IST
Updated: Saturday, Oct 30, 2010 at 2146 hrs IST

Bangalore: ArcelorMittal, the worlds largest steel maker which is in the process of setting up the Rs 30,000 crore integrated steel plant in Karnataka, may face delay in getting iron ore mining licences as the state government has not yet recommended its mining applications to the Union government.

The state government can make recommendation to the Centre to grant mining license to ArcelorMittal or any other steel companies only after hearing all the applications pending with the state, said VP Baligar, principal secretary for commerce and industry, Karnataka. There are around 1,200 fresh and 1,000 old applications pertaining to mining permits, pending for disposal with the state. Baligar did not give details about how long the state government would take in this matter.

The delay has been caused due to several pending applications, he said. Currently the mining applications are being heard by the secretary of mining and soon as the hearing is over, he will recommend the applications to the central government, Baligar added.

Several firms have applied for multiple mining applications in two iron ore blocks in Bellary region. Hundreds of firms are showing interest for mining in Ramanadurga belt, official sources said. ArcelorMittal made two applications to get mining license in Ramanadurga and another region in Bellary district, sources added.

ArcelorMittal is currently in the process of acquiring land for its project at Kudithini region in iron ore rich Bellary district. The company has already paid Rs 350 crore to the government for the allotment of land to set up its project, which will have a production capacity of 6 mt per annum. The project site will also house 750 megawatt captive power generation plant. The project, which will require 4,000 acres of land, is expected to generate 10,000 jobs.

Along with ArcelorMittal, more than fifty companies including South Korean-steel major Posco and Brahmani have signed MoUs with the K’taka state in recently held GIM to set up steel manufacturing facilities in the state.

ET (http://www.financialexpress.com/news/ArcelorMittal-to-face-delay-for-mining-licences-in-Karnataka/704571/)

JSW Steel seeks 1,100 acres more in Bellary

JSW Steel Ltd, the flagship company of the JSW Group that operates a 6.8 million tonne per annum (mtpa) steel plant at Toranagallu in Bellary district of Karnataka, has sought 1,100 acres of land more from the Karnataka government to expand its steel mill capacity.

The company is currently in the process of completing its ongoing capacity-expansion programme to reach 10 mtpa by March 2011. This would see an investment of Rs 10,000 crore. Starting from the next financial year, Jindal Steel plans to further expand the capacity to 16 mtpa and set up a 600 Mw captive power plant at an investment of Rs 15,137 crore. The high-level clearance committee of the state government has already approved this proposal, a top official in the state government said.


The company has signed a memorandum of understanding with the state government during the global investors’ meet held on June 3 this year to expand its capacity. They have also sought captive iron ore mines and the state government would be making a recommendation to the Centre in due course of time for prior approval to allot them captive mines, V P Baligar, principal secretary, department of commerce and industries, told Business Standard.

He said the land audit committee has been asked to evaluate the company’s request for additional land. Jindal has sought 900 acres adjacent to its existing steel plant in Toranagallu to store water for its steel plant. It has also sought another 150-200 acres for the purpose of laying a railway line from the mine head to its steel plant. JSW Infrastructure Ltd, a JSW Group company has already signed a MoU with the Karnataka government for laying the railway siding and railway line in Bellary district.

Despite repeated calls, company officials in Toranagallu were unavailable for comments.

At present, JSW Steel owns 3,700 acres in Toranagallu, where it runs its steel plant. The capacity of the plant will reach 10 million tonnes by March 2011. The company buys iron ore from private mine owners near its plant and the new railway line will be used to transport ore to its steel plant.

The government is ready to give them additional land, but subject to scrutiny by the land audit committee, Baligar said.

Recently, the state government has completed the hearing of 1,200 applications for allotment of iron ore mines including an application from Jindal. However, the government was yet to make a recommendation to the Centre for prior approval to allot mines, he said.

JSW Steel manufactures flat and long products such as HR coils, CR coils, galvanised products, auto grade/white goods grade CRCA steel, bars and rods

BS (http://www.business-standard.com/india/news/jsw-steel-seeks-1100-acres-more-in-bellary/412976/)

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FLSmidt & Co : h awarded order for iron ore crushing plant in India

11/08/2010 | 07:35 am

PRESS RELEASE

FLSmidth has received a contract worth approximately USD 30m (DKK 175m) for the supply of an iron ore crushing plant with a capacity of 1,800 tonnes per hour from Indian M/s National Mineral Development Corporation Limited (NMDC Limited) for their Kumaraswamy iron ore project, located in the Bellary District, Karnataka in India.

The scope of the supply includes design, engineering, manufacture, fabrication, shop testing, packing and transportation to the mine along with electrical-, civil- and structural work as well as erection and commissioning of the plant. The contract comprises the following equipment; one gyratory crusher, one apron feeder, one belt conveyor, two scalping screens and one secondary cone crusher.

FLSmidth's ability to be the customer's One Source in this project was a decisive factor in awarding the order to FLSmidth - reducing delivery time and optimising equipment performance.

"This is FLSmidth's first order for an iron ore crushing plant on turnkey basis in India. Furthermore, the order includes a gyratory crusher which is very central equipment in our product portfolio," Group CEO Jørgen Huno Rasmussen comments.

State-owned NMDC Limited is the single largest iron ore producer and exporter in India. The
company's cost of production is competitive with those of the leading iron ore producers in the world and is continually aiming to lower it across all its operations. Factors contributing to NMDC Limited's ability to lower its costs of production include the mechanization of its mines, its focus on continually reducing mining cost and seeking operation efficiency improvements. It presently produces approximately 30 million tonnes of iron ore from its three fully mechanized mines, all located in India. NMDC Limited is also involved in exploration of a wide range of other minerals.


Source (http://www.4-traders.com/FLSMIDT-CO-1412901/news/FLSMIDT-CO-h-awarded-order-for-iron-ore-crushing-plant-in-India-13497763/)

Nice pics there :)

Posco may shift to Karnataka


A senior government official told reporters here on Thursday that Posco might shift to Karnataka, which was making active overtures to the Korean company.

This gives a new twist to the ongoing tussle between the Ministry of Environment and Posco.

The Ministry had recently asked Posco to stop work in Orissa, where the company has been trying to start operations for many years.

Asked about the delays and Posco's predicament, the official said Posco “had no option but to wait… Where else will it get 600 million tonnes of high grade ore?

He said the Koreans understood the issue involved, but would consider the Karnataka option.

The Hindu (http://www.thehindu.com/news/national/article880373.ece)

Centre pushes for mining iron ore mining lease to KIOCL


Bangalore, Nov 14 (PTI) The Karnataka Government should expedite the process of granting iron-ore mining leases to Kudremukh Iron Ore Company Limited (KIOCL), Union Minister of Steel Virbhadra Singh today said.
"KIOCL has been functioning without captive mines for the past five years, after the Supreme Court stayed its mining operations and the absence of captive mines was a major impediment in the company''s growth prospects," he said here.
"The state government must therefore take action (on granting of iron-ore mining leases to KIOCL) if they do not want to lag behind in the process of capacity expansion and economic growth", he added.
He was speaking after laying the foundation stone for the joint operation wing for mining and value addition products in Karnataka by KIOCL and Rashtriya Ispat Nigam Limited (RINL)
Singh said the ministry had "redoubled its efforts on the matter and written a number of letters to Chief Minister B S Yeddyurappa and the response has been favourable. However, there has to be a time frame and the entire matter has to be solved quickly."
On Karnataka government''s ban on iron ore exports, Singh said, "personally I am for total ban on iron ore exports. Time has come to save these precious resources in our country for our future use.
However, as far as total ban in the country is concerned, The matter is still under discussion. The union government has to take a larger view. This objective of (total ban) can be achieved by increasing taxation on iron-ore."
He said the ministry was looking at ramping up the annual steel production to 120 million tonnes by December 2012. All public sector units involved in manufacture of steel have to undertake massive capacity expansion programmes and adopt modern technology to achieve this target.

* It will be difficult for the firm to compete if expansion is not taken up now: Virbhadra Singh

BANGALORE: The Karnataka Government should issue mining permits to Kudremukh Iron Ore Company Ltd (KIOCL) within a timeframe to enable expansion plans of the company, said the Union Steel Minister Virbhadra Singh.

“Karnataka is home for iron ore and yet companies such as KIOCL and Rashtriya Ispat Nigam Ltd. (RINL), do not have assured supply,” the Union Minister lamented after launching the joint operation for mining and value addition projects in Karnataka by KIOCL and RINL, here on Sunday.

He said: “It is not social justice for an iron ore company not to have a captive mine. It will be difficult for KIOCL to catch up with other companies if expansion is not undertaken now.” The States should give first preference to public sector undertakings while awarding mining leases, Mr. Singh said.

Iron ore export ban

The Union Government is yet to take a larger view on banning iron ore exports and consultations were taking place between various ministries, the Minister said. “Personally, I am of the view that iron ore exports should be banned totally to conserve resources for our future needs. Even countries around the world are doing the same,” said the Minister when his views were sought on the issue of banning iron ore exports by the Karnataka Government. He ruled out any action against Karnataka Government for banning iron ore exports. “We have to wait for the court's verdict also.”

Steel Output

The country's annual steel production capacity is set to increase from the present 64 million tonnes to about 120 million tonnes by December 2012, he said. “The Steel Authority of India, which has five units, is spending Rs. 70,000 crore and RINL is investing Rs. 20,000 crore on its unit.

Earlier, Home and Transport Minister R. Ashok said that KIOCL's demand for mining lease would be considered by the Government and he would take up the matter with Chief Minister B.S. Yeddyurappa.

The wing will help in gainful utilisation of resources of KIOCL and RINL by pooling their resources suitably. There is a scope for synergising operations of existing plants by way of utilising coke from RINL plant at KIOCL Pellet Plant and KIOCL pellets at RINL plant.

The Hindu (http://www.hindu.com/2010/11/15/stories/2010111562180600.htm)


K'taka told to expedite granting mining lease to KIOCL (http://sify.com/finance/ktaka-told-to-expedite-granting-mining-lease-to-kiocl-news-news-klpbEmehbbc.html)
KIOCL, RINL set up joint operation wing (http://www.deccanherald.com/content/112825/kiocl-rinl-set-up-joint.html)

He said, 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.



Shri Sai Prathap said, the fund spent during the last three years and current year upto October, 2010 on Modernisation and Expansion plan of SAIL and on VISP, Bhadravati, Karnataka is as follows:



(Rs./Crore)
Modernisation and VISP, Bhadravati,

Expansion plan of SAIL Karnataka



2007-08 1060 7.80

2008-09 4195 52.63

2009-10 9495 19.84

2010-11 (upto October, 2010) 5577 6.78


The Minister said, 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.

PIB (http://pib.nic.in/release/release.asp?relid=67108)

BANGALORE: If things work to plan, the Posco story may get a twist, and the Korean steel giant may come home to Karnataka. After a long-drawn battle with agencies to get environmental clearance for a Rs 50,000-crore integrated steel plant and captive port at Jagatsinghpur in Orissa, now it has set its sights on the state.

"One-third of the required ore will be mined in Karnataka. Posco officials met me recently and I told them that showing interest is not enough, there has to be some movement. They have deposited some funds with the government. The land for the factory will have to be cleared by the forest department,'' chief secretary S V Ranganath told TOI.

While there were talks about the company being wooed by the state government, now land acquisition for the project is under way.

Interestingly, the CS confirmed that the company would source one-third of the ore from ore-rich areas of the state.

"One-third will be their own and one-third will be from us. The mines will have to get environmental clearance before anything else, so I don't see why we will have an experience like Orissa. Land acquisition is under way in two or three districts,"he added.

After they deposited Rs 60 crore just before the Global Investors' Meet (GIM) in June, their mining leases are in the process of being finalized. "They haven't got any leases yet but have a preference for five places — Gadag, Koppal, Bagalkot, Bijapur and Bellary. Once they tell us where, we will go ahead. They have applied for 2,000 acres of mining land,"principal secretary of the department of commerce and industries V P Baligar told The Times of India.

Posco's Orissa project uncertain

After a long-drawn battle with agencies to get environmental clearance for a Rs 50,000-crore integrated steel plant and captive port at Jagatsinghpur in Orissa, Korean steel giant Posco may well be coming to Karnataka.

After opposition from local communities and people who cited the Forest Rights Act violation in Orissa, the Union environment ministry-appointed Meena Gupta Committee pointed to grave violations of the Environment Protection Act, Forest Conservation Act and Forest Rights Act, and stated that clearances given so far were illegal and demanded their revocation.

The N C Saxena Panel, had demanded revocation of conditional forest clearance. The project's fate in Orissa is still undecided. The proposed project has been pending for five years. Posco officials recently announced in Seoul that Karnataka is an equally good option because it of its rich ore deposits.

Read more: Posco now looks to set up shop in Karnataka - The Times of India http://timesofindia.indiatimes.com/city/bangalore/Posco-now-looks-to-set-up-shop-in-Karnataka/articleshow/6939026.cms#ixzz15VdBcZFC

^^
POSCO already had a plan for setting up a steel plant in karnataka i think..

RINL forms joint operation wing with KIOCL

BS Reporter / Chennai/ Visakhapatnam November 18, 2010, 0:24 IST

To set up mining, value addition projects in Karnataka

Rashtriya Ispat Nigam Ltd (RINL) and Bangalore-based KIOCL Ltd, the public sector units under the ministry of steel, have come together to set up a joint operation wing for the establishment of mining and value addition projects in Karnataka.

Union steel minister Virbhadra Singh inaugurated the wing. Chairman and managing director of RINL, PK Bishnoi, said the joint operation wing was a right step for ensuring raw material security for both the companies as they do not have captive iron ore mines, a VSP release said.

According to an understanding worked out between both the companies, to begin with, they are working on setting up a ductile iron spun pipe (DISP) plant in Mangalore, where KIOCL has a pellet plant and blast furnace unit.

The DISP plant, which will have a capacity of 100,000 tonnes per annum, will see an investment of Rs315 crore. Both KIOCL and RINL are working out the equity structure for the new company to take up this project, a KIOCL official said.

KIOCL is in the process of preparing a detailed project report for the DISP plant. The new plant will be located at its existing land in Mangalore. There is a huge demand for spun pipes from various state governments, urban development bodies. They are used in irrigation projects, drinking water supply and sewerage projects and other large infrastructure projects.

“KIOCL has strengths in carrying out low-grade iron ore mining and pelletisation process, while RINL has expertise in making steel. We will make use of these strengths and explore opportunities in mining and value addition in the iron and steel sector,” the official said.

The joint operation wing will also explore other opportunities like scouting for new iron ore deposits in the state of Karnataka and setting up of coke oven battery plant.

KIOCL is also in need of coke for its blast furnace unit, which it plans to source from RINL. At the same time, RINL may look for sourcing pellets from KIOCL, the sources said.

KIOCL has already applied for fresh mining lease in Ramanadurga region in the iron ore rich Bellary district of Karnataka.

The Karnataka government is in the process of making a recommendation to the Centre for prior approval to allot iron ore deposits to new steel mills coming up in the state including KIOCL.

BS (http://www.business-standard.com/india/news/rinl-forms-joint-operation-wingkiocl/415219/)

JSSL starts commercial production of fabricated steel in K'tka

Press Trust of India / Bangalore November 17, 2010, 20:55 IST

Steel plantJSW Severfield Structures (JSSL), an equal joint venture between JSW Steel and UK-based Severfield Reeve Structures, today started its commercial production of fabricated steel with an initial capacity of 35,000 tonnes per annum at Vijayanagar.

It plans to invest Rs 100 crore over the next two years.

"With the commencement of commercial production of this fabricated steel plant at Vijayanagar in Karnataka, we have started a new phase for promoting the greater usage of structural steelwork in the country.

The facility will provide customers with a total package from design through to erection on site," JSW Steel's Vice-Chairman and Managing Director Sajjan Jindal told reporters after inaugurating the new plant at Vijayanagar.

The company has already invested Rs 200 crore to have an initial capacity of 35,000 tonnes per annum and plans to ramp-up it to 90,000 tonnes in the next two-years.

"We have already invested Rs 200 crore in JSW Severfield Structures and plan to invest another Rs 100 crore to expand capacity to 90,000 tonnes per annum by 2012. We would set up more facilities in the country in the coming years," he said, adding "they would come up in West Bengal and Delhi in the future."

The company, which entered into a JV with UK-based Severefield Reeve Structures two-years ago, has started commercial production.

Referring to the current order-book of JSSL, Jindal said that it stood at around Rs 70 crore.

"We have received large orders from four clients but as of now the order book stands at Rs 70 crore of this fabricated steel," he said.

BS (http://www.business-standard.com/india/news/jssl-starts-commercial-productionfabricated-steel-in-k%5Ctka/116317/on)

@Sharif

Yes you are right bro they have plans to set up smaller units in Karnataka and Maharashtra...

Yes you are right bro they have plans to set up smaller units in Karnataka and Maharashtra...

i don't think smaller but a 6mt plant in karnataka and a JV with SAIL in jharkhand

Seeing a huge potential in the infrastructure growth in India especially in the structural steel space JSW Steel and UK's top steel Severfield have launched a new plant which will have investments of Rs 1000 crore in two years.
CNBC-TV18’s Swati Khandelwal Jain reports that JSSL, which is the 50-50 JV between JSW Steel and Severfield, which is UK's top structural steel fabricator has launched and inaugurated a new steel plant.

Swati reports that the two companies have invested over £25 million in the Bellary production lines and plans to have an annual capacity of 35,000 tonne fabricated steel. The JSW- Severfield project is said to have been financed in the 2:1 debt-equity ratio and is expected to generate an annual revenue of around Rs 400 crore. The target market will initially be commercial structures and simple highway bridges.
Severfield- Rowen has four production facilities in the north of England and Ireland and has an order book of £244 million with a 20-23% UK market share as on August 2010.
The JSW- Severfield plants will be the first fabricated steel plant in India. The plant capacity will be hiked to 70,000 units per annum by 2012.




Thu, Nov 18, 2010 at 10:34 | Source : CNBC-TV18

24/11/2010
KIOCL earmarks up to Rs 9k-cr to set up steel plant in K''taka

Mumbai, Nov 24 (PTI) Bangalore-based Kudremukh Iron Ore Company (KIOCL), today said it plans to set up an integrated steel plant in Karnataka at an investment of Rs 8,000-9,000 crore which is expected to be commissioned in the next two years.
"We will set up a new steel plant in Karnataka at an investment of Rs Rs 8,000-9,000 crore and it is expected to be commissioned by 2012," KIOCL''s Chairman and Managing Director K Ranganath told reporters on the sidelines of an event here.
The initial capacity of the integrated steel plant will be 1.5-million tonnes per annum (MTPA) and it can be upgraded to 5 MTPA, Ranganath said, adding the plant will be set up as a joint venture with URSIPL, a sister concern of United Telecom.
Ranganath said the steel plant would help the company get captive iron ore mining lease as the Karnataka government has a policy of granting mining lease to entrepreneurs.
KIOCL has already applied for four iron ore blocks in Karnataka, he added.
KIOCL, which is a state-owned enterprise with mini- ratna status, had earlier called for expressions of interest from companies to jointly set up an integrated steel plant in Karnataka.
URSIPL has expressed its interest in the proposal and has approached the State government for allotment of land to set up the plant with an initial capacity of 1.5-million tonnes per annum.

MSN (http://news.in.msn.com/business/article.aspx?cp-documentid=4622412)

Kolar Gold Fields to shine again

Estimated to still have reserves of over 3 million tonnes, there are plans are afoot to revive the old gold mine that played an important part in the prosperity of the British Empire.
Author: Shivom Seth
Posted: Tuesday , 30 Nov 2010

MUMBAI -

The Kolar Gold Fields are set to have their day in the sun soon. After serving India for 121 years, Kolar Gold Fields is estimated to still have reserves that could yield more than 10 tonnes of gold per year - for the next 15 years.


India's famed gold field, which is said to have an unexploited reservoir of some 3 million tonnes of gold reserves, at a depth below 3,200 metres,may have another run, with the Ministry of Mines setting out a month's agenda to decide on restarting the Kolar Gold Fields (KGF).

Shut in 2001 by public sector firm, Bharat Gold Mines after being found unviable due to the high cost of underground mining and the low gold yield, the whole area has since worn a deserted look.

At the time of closure, the mine was producing just over 10 grams of gold per one tonne ore.

At present, BGML has no workers on its rolls. The mines will require substantial investment in dewatering and installation of new equipment, officials said.

Other than the mine, BGML's key assets include dumps presumably containing 90 tonnes of gold (according to a study conducted in 1999) amidst 12,000 acre of land.

According to BL Bagra, managing director of Bharat Gold Mines, the mine ministry is considering appealing against the Karnataka High Court order that closed the mine.

Bagra added that the government could also opt for a consortium of public sector undertakings like the National Mineral Development Corporation, National Aluminium Company Ltd, Hindustan Copper Ltd and Manganese Ore India Ltd.

Incidentally, state-run Manganese Ore India Ltd's initial public offering (IPO) to raise up to $276 million was fully covered by mid-morning on Monday, November 29, the second day of the issue launch.

The firm, which is the largest producer of manganese ore in India, plans to invest $168 million over the next five years to boost capacity at its existing mines by about 40%.

While this firm is looking to an IPO for funds, the defunct Bharat Gold Mines could also be restarted with a little help from cash-rich National Aluminium Company Limited (Nalco).

Nalco has rich experience in mining activities and has a capital of Rs 4000 crore.(US$869.2 million) Bagra, who is also director, finance, National Aluminium Company Ltd (Nalco) said that as per the assurance given to the Karnataka High Court, the Centre was weighing several options.

http://www.mineweb.com/mineweb/view/mineweb/en/page34?oid=115949&sn=Detail&pid=102055

State readies to allot captive iron ore mines to steel majors
Mahesh Kulkarni / Chennai/ Bangalore December 02, 2010, 0:26 IST

Steel majors ArcelorMittal, Posco, Tata Metaliks, JSW Steel, Bhushan Steel, NMDC and KIOCL among others are likely to be allotted captive iron ore mines in the iron ore-rich Bellary district of Karnataka as the state government has taken another step in this direction, a top government official said.

“We had identified two blocks of iron ore mines in Ramanadurga and Kumaraswamy hill ranges in Bellary for allotment under the new mining policy of the state. There were over 1,000 applications for mining lease and we have just completed the hearing of all applicants. The government will send the list of eligible applicants to the Centre for prior approval within a month,” B S Ramaprasad, secretary to government, mines, SSI and textiles told Business Standard.

He said this is the first time in the last decade that the government has done such large-scale hearing for two major blocks of iron ore in the state. The department of mines has identified 1,560 hectares of iron ore mines in block 13/1 of Ramanadurga region which is rich in iron ore reserves. It is estimated that this block of mines contains over 200 million tonnes of iron ore. The second block of iron ore mines, spread over 1,000 hectares in block 13/2, is located in the Kumaraswamy Hill range. The extent of iron ore in this block is yet to be ascertained.

Ramaprasad said the department was in the process of listing out the eligible candidates for the allotment of iron ore mines and the list will be prepared in a month and sent for approval of the chief minister who looks after the mines department. Once the chief minister approves, the list will be sent to the Centre for its prior approval, he said. It is expected that the process of getting a prior approval from the Centre would take around six months.

However, the state government has already recommended to the Centre to allot mining lease to ArcelorMittal, which is seeking over 250 hectares of mine area in the Ramanadurga region.

Other major steel companies that are seeking iron ore deposits in the state include Brahmani Industries, Essar Steel, the state-owned Visveshwaraya Iron and Steel Limited, Surya Roshni, MSPL among others.

All these companies had signed a memorandum of understanding with the state government for setting up steel mills in the state during the global investors’ meet held in June this year. The state government has already initiated land acquisition process in the case of ArcelorMittal and Tata Metaliks, which plan to set up 6 million tonne per annum steel plant each in Bellary and Haveri districts respectively.

On the possibility of extent of mine area each applicant would get, Ramaprasad said the government would be able to provide only about 30 per cent of the iron ore requirement and the balance ore has to be procured by them from the open market.

Presently, 320 out 600 lease holders are active in the mining of iron ore in Karnataka. The state cabinet recently approved the forming of a joint venture between state-owned Mysore Minerals Ltd (MML) with three private sector companies for supply of limestone.

Karnataka produces around 40-50 million tones of iron ore annually and exports about 30 million tonnes and makes up one-third of the country’s total exports.

http://www.business-standard.com/india/news/state-readies-to-allot-captive-iron-ore-mines-to-steel-majors/416806/

do anyone know the iron ore reserves of karnataka and india??

‘Land acquisition process completed'

Staff Correspondent

BELLARY: The Karnataka Industrial Area Development Board (KIADB) has completed the process of acquiring 4,865.64 acres of land at Kuditini and Harginadoni villages of Bellary taluk for the ArcelorMittal to set up a mega integrated steel plant.

The board has also released Rs. 50 crore for payment of compensation to land-losers, according to Mahantesh Bilgi, Special Land Acquisition Officer of the board.

Compensation

As per the agreement, the compensation has been fixed at Rs. 16 lakh an acre for lands already converted to non-agricultural purpose, Rs. 12 lakh an acre for lands which are at 500 metres away from the National Highway 63 and Rs. 8 lakh an acre for others.

Notices have been sent to land-losers through the tahsildar of Bellary for claiming the compensation by submitting relevant records. Mr. Bilgi said that 68 of the 89 claims had been cleared so far and compensation of Rs. 19.71 crore paid to claimants.

Caution

The land-owners had been told not to rely on middlemen but approach the board directly, if there were any complaints related to payment of compensation, Mr. Bligi said.
The Hindu (http://www.hindu.com/2010/12/06/stories/2010120660970300.htm)

^^ very good news :cheers:

NMDC, Severstal to sign JV for steel plant

New Delhi:State-run mining behemoth National Mineral Development Corporation (NMDC) has roped in Russia’s biggest steel maker OJSC Severstal to set up a Rs 25,000 crore, 5 million tonne steel plant in Karnataka. The two companies will formally ink a Memorandum of Understanding (MoU) on Friday.
Posted: Thu Dec 09 2010, 01:26 hrs

“The steel plant will come up at Bellary in Karnataka. It will initially have a capacity of 2 million tonnes (MT) and will be later taken up to 5 MT,” chairman and managing director Rana Som told The Indian Express. It will be a 50:50 joint venture and the project will have a 3:1 debt equity ratio. Given the funding pattern, the JV will have a paid up capital of Rs 6,250 crore.

The navratna giant has secured 2,500 acres and has sought an additional 1,000 acres. This will be NMDC’s second steel plant in India. It has already commenced ground work for a 3 million tonne plant at Chhattisgarh.

Indian Express (http://www.indianexpress.com/news/NMDC--Severstal-to-sign-JV-for-steel-plant/722280)

NMDC inks deal with Severstal

NEW DELHI: The country’s biggest iron ore miner NMDC today inked a pact with Russia’s Severstal to set up a five-million tonnes steel plant in Karnataka.

The joint venture company proposes to have its captive coking coal mining subsidiary in Russia and iron ore mining subsidiary in India, which will ensure long term supply of the critical steel making raw material to the proposed plant.

“The plant will have an initial capacity of 2 million tonnes per annum (MTPA), which is expandable to 5 MTPA,” NMDC Chairman, Mr Rana Som said at an memorandum of understanding (MoU) signing ceremony here.

Both NMDC and Severstal will have a 50 per cent shareholding each in the joint venture and will appoint the senior management team.

“The signing of this MoU is an important strategic development for us as it will establish the steel plant in one of the most attractive growth markets in the world with India poised for 9 per cent growth,” Severstal CEO, Mr Alexey Mordashov said.

“The Karnataka government has already allotted 2,500 acres of land to NMDC for the project,” Mr Som added. He said that coking coal will be imported from Severstal for the JV. – PTI

The Hindu (http://www.thehindubusinessline.com/businessline/blnus/03101606.htm)

NMDC, Severstal in JV for 5-mln-tonne India steel plant

NEW DELHI | Fri Dec 10, 2010 4:08am EST

NEW DELHI Dec 10 (Reuters) - India's top iron ore miner NMDC (NMDC.BO) will form a joint venture with Russia's largest steelmaker Severstal (CHMF.MM) to build a steel plant in southern India, the Indian firm said in a statement.

The two companies will set up a plant with initial annual capacity of two million tonnes in Karnataka, with the ability to expand to five million tonnes.

The JV will also have a captive coking coal mining unit in Russia, and an iron ore mining unit in India, the company said.

Reuters (http://www.reuters.com/article/idUSBMA00910220101210)

Centre imposes freeze on mining leases in Bellary (http://www.deccanchronicle.com/bengaluru/centre-imposes-freeze-mining-leases-bellary-984)

December 15th, 2010
DC


Dec. 14: In a fresh jolt to mining giants and as well to the BJP government, the Centre has decided to impose moratorium on all fresh mining lease applications in Bellary district to check illegalities.

The Centre’s decision comes even as the state government has promised captive iron ore mines in Bellary to internationally-famed steel makers in the recent Global Investors Meet (GIM). In a letter dated October 18, Mr Umakant, assistant inspector general of forests in the ministry of environment and forests, has conveyed to the principal secretary (forests) of Karnataka that the Centre was concerned about reports on rampant illegal mining in Bellary.

“In the furtherance to the objective of controlling illegalities in mining areas, the Central government has decided to impose moratorium on all fresh mining lease applications in Bellary district with immediate effect,” said the letter. Mining industry insiders say that the decision will hit the prospects of the Arcellor Mittal, POSCO, Essar Steels, Bhushan Steels and other mega buck steel makers who were already into building steel plants in Bellary and other northern districts of state hoping for allotment of captive mines.

They also pointed out that the decision would create major socio-economic problems since the mining industry is a lifeline for lakhs of people in the district.

Forest officials, however, said that it was the state government’s inability to check illegal mining in reserved forests of Bellary that forced the Centre to take the decision. Chief Minister B.S. Yeddyurappa had forwarded a mining lease application of M/s N. Rathnaiah Iron Ore Mines from the controversial Bellary Reserved Forests on September 29, seeking environmental clearance.

“Without curbing illegal mining, the state government has rushed to seek fresh sanctions and clearances from the Centre,” said a source.


Today or tomorrow Iron ore will have to be extracted,it is inevitable then what is center waiting for?Just a gimmick to malign BJP govt over illegal mining issue.

^^ Do M/s N. Rathnaiah Iron Ore Mines have any plan to put up steel plant? Hope that center will allow Arcellor Mittal, POSCO, Essar Steels, Bhushan Steels and other mega buck steel makers projects to take off.

^^ Do M/s N. Rathnaiah Iron Ore Mines have any plan to put up steel plant? Hope that center will allow Arcellor Mittal, POSCO, Essar Steels, Bhushan Steels and other mega buck steel makers projects to take off.

Center is taking double standards here, the same steel ministry which requested Mittal to look at Karnataka as an alternative, now takes U turn only on the behest of Sonia ji.Center urff Congress wants to screw up BJP's lone govt in the south.
Let us not forget Bellary has the richest high quality iron ore fields in India,It accounts for 1/3 exports,well If India fails to utilize this for its own good then forget thinking about a developed India.Steel is the growth ingredient for a nation to develop.
Other places land acquisition is a problem here when land has been acquaired for a couple of mills center pulls the trigger what rubbish.India needs steel if at all it has to call itself a super power.No point in exporting high grade iron ore.
As I told today or tomorrow it has to get mined,so don't waste time and expedite things fast keeping politics aside.:cheers:

Let us not forget Bellary has the richest high quality iron ore fields in India,It accounts for 1/3 exports,well :

were the exports not banned?

were the exports not banned?

Well what more can the state govt do?Yes exports stand banned.Now they want the state to clean up the mining mess before any new licenses are allotted.Center is playing political games that is it.If congress comes to power next day you will find the mines allotted.

Well what more can the state govt do?Yes exports stand banned.Now they want the state to clean up the mining mess before any new licenses are allotted.Center is playing political games that is it.If congress comes to power next day you will find the mines allotted.

Mr anil lad of congress is having a huge mountain of iron ore in sandur.......centre should stop mining in that area too...

Well what more can the state govt do?Yes exports stand banned.Now they want the state to clean up the mining mess before any new licenses are allotted.Center is playing political games that is it.If congress comes to power next day you will find the mines allotted.

arre bhae fikar not ....thoda khaana peena pilana padega center ko(steel ministry and all) and this will be done by big corporates... and believe me when the steel capacity of india will become 200MTPA by 2017 all the iron exports from the country will be banned
:cheers:

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