Karnataka Steel & Mineral Industry

[Krishnamoorthy K]

Ajith Athrady, New Delhi, june 23, 2012, DHNS:

* Agency told to complete survey of iron ore mines

Eager to restart iron ore mining at the earliest in Karnataka, the Ministry of Mines has directed the Indian Bureau of Mines (IBM) to expedite the process of surveying of iron ore mines in co-ordination with different agencies, including the state government.

Ministry of Mines Secretary Vishwapati Trivedi, who chaired the review meeting of the IBM recently here, is learnt to have advised the organisation to survey dump yard and spill over areas also to ensure that the mining companies restricted their activities only to leased areas.

The ministry is under pressure from steel industry to take steps for resumption of iron ore mining in Karnataka to meet the industry demand. Iron ore mining in Karnataka was banned due to complaints of illegal mining and only state run NMDC is allowed to excavate ore and supply to steel plants.

Earlier, the Central Empowered Committee (CEC) appointed by the Supreme Court to probe illegal mining in Karnataka told the Ministry of Mines that resumption of mining operations would be possible only after Indian Bureau of Mines approved the mining leases. In a letter to the Mines Secretary, the CEC said following the Supreme Court order, preparation and implementation of reclamation and rehabilitation (R&R) plans in respect of leases of 50 hectares and above in Bellary Chitradurga and Tumkur districts have been undertaken by the Karnataka government through the Indian Council of Forestry Research and Education (ICFRE). The R&R plans are being executed under the supervision of the Central Empowered Committee.

As per the information provided to the Central Empowered Committee in respect of a large number of mining leases, the period of the approved plan/scheme has either expired or nearing expiry. Therefore, the mining operations in respect of such leases can be allowed to be re-started only after their mining plans are approved by the IBM, the Central Empowered Committeesaid in the letter.

In Karnataka, the Central Empowered Committee had classified the mining leases in the three ore rich districts into three categories: Category A comprises 45 mines where there is no illegality. Category B comprises 72 leases, where the Central Empowered Committee found illegal mining with mining pits extending 10 per cent beyond sanctioned areas and in areas where waste dumps are outside the lease. Category C comprises 49 leases with maximum violations of the Forest Conservation Act.

As part of checking illegal mining, the IBM has also intensified the process of registration of miners, stockists, traders, exporters and end-users of mineral to prevent illegal mining activities.

So far out of 5,931 lease holders of all types of minerals, registration number numbers have been allotted to 4,976 and remaining are under process.

DHNS

[Krishnamoorthy K]

GIM-2012 Iron & Steel MOUs

Originally Posted by avinash2060

image hosted on flickr

[engineer.akash]

Karnataka seeks to mobilise Rs 10,000 cr from mining

Government is looking to mobilise close to Rs 10,000 crore from the iron ore mining sector which will be transferred to a special purpose vehicle (SPV) to undertake social infrastructure development works in the three mining districts where large scale environment degradation has taken place due to iron ore mining, a top government official said.

“As directed by the Supreme Court, based on the recommendations of the Central Empowered Committee (CEC), the state government has set in motion the process of forming an SPV. The chief secretary has held a meeting in this regard on June 4 and June 5. The government proposes to mobilise this money from various sources,” H R Srinivasa, director, department of mines and geology, said here on Wednesday.

Talking to reporters on the sidelines of a two-day 2nd annual conference organised by OreTeam, a Delhi-based mining research firm, here, he said the government would mobilise funds from the auctioning of Category C mines (which had carried out substantial portion of illegal mining). There are about 49 mining leases in the ‘C’ category and the CEC has recommended cancellation of these licences.
The government would also collect about 20 per cent from the sale of iron ore through e-auction (about Rs 1,200 crore) and Rs 5 crore penalty for every hectare of encroachment and Rs 1 crore for dumping mineral waste outside the dump area.

The state government has sold about 22 million tonnes of iron ore of the 25 million tonnes stockpile released for e-auctions. The sale value of this ore was about Rs 6,000 crore, he said adding that iron ore would be sold in the state only through e-auctions till April 2014 as recommended by the CEC.

All these funds would be put into the SPV which will take up various social infrastructure creation measures in the mining districts of Bellary, Chitradurga and Tumkur. The state chief secretary would be heading the SPV as directed by the Apex Court, he said.

The government is presently waiting for the Supreme Court to pronounce its order on the ‘C’ Category mines and the government would go ahead with the formation of the SPV only after that, Srinivasa added.

[Krishnamoorthy K]

Karnataka's scam-hit mining industry has been urged to ensure sustainability for safeguarding the interests of stakeholders and the environment.

"Sustainability should be the first priority of the mining industry, which suffered enormously due to illegal mining and export of iron ore over the years. The industry should put in place a fool-proof mechanism to safeguard the interests of all, including stakeholders, environment and the people," former Karnataka Lokayukta (ombudsman) Justice (retd.) N. Santosh Hegde said at a conference in Bangalore.

Expressing grave concern over the huge damage caused to environment and basic and social infrastructure in the mineral-rich districts of the state, especially Bellary due to the multi-crore mining scam in the past decade, the former Supreme Court judge said the natural resources should be used only for domestic consumption and not for raking money by exports.

Bellary, Chitradurga and Tumkur in north, central and southern region of the state are the main districts which boast of mineral reserves, especially iron ore and manganese.

"In my investigation reports on the mining scam, I have recommended to the state government to ban trading in iron ore, including its export as the mineral should be reserved only for domestic consumption by steel producers and end-users, as illegal mining and illegal exports not only caused huge loss to the exchequer, but also damaged infrastructure and the environment," Hegde said at the OreTeam's second annual conference on 'Karnataka's Iron Ore Mining & Steel making Capabilities'.

"The state government should change the mining policy to ensure the natural resources are not exploited for profit trading and exports but mined for value addition by manufacturers through transparent bidding process. It is the responsibility of the industry to protect the fragile environment and secure the welfare of the people living in the region," Hegde told about 100 delegates, including captains of the industry, experts, policy makers and state government officials attending the two-day conference.

The forest bench of the apex court headed by Chief Justice S.H. Kapadia, which banned mining activity across the state in July-August 2011 following the mining scam, partially lifted the ban April 20 in the three districts in the state with stiff conditions.

Sharing the industry's concerns on huge loss of jobs and revenue due to the mining ban, Hegde said it was the price the industry and its stakeholders were paying due to the crimes of a few greedy mining firms, which flouted every rule in the book to make a quick buck at the expense of genuine people.

SME TIMES

Reserve iron ore only for domestic consumption: Justice Hegde‎
e-auction causing mining monopoly: Justice Santosh Hegde
K'taka mines may start ops from mid-Aug: Kalyani Steel‎
JSW Steel a victim of illegal mining in Karnataka: Sajjan Jindal
JSW Steel keen on bidding for iron ore mines‎
Illegal mining in state was like Mahabharata
Apex court order enables ore beneficiation, value-addition in Karnataka

[engineer.akash]

Six companies plan to invest in Chitradurga district

They will inspect the land identified for the proposed units soon
Of the 17 companies that expressed their intention to open their units in the district in the Global Investors Meet 2012, six companies have signed memorandums of understanding (MoUs) and have agreed to inspect the land indentified by the District Industries Department shortly. According to official sources, Atria Power Corporation Ltd. will set up a 25 MW solar thermal power plant by investing Rs. 416 crore and provide employment to 375 people, and Chitradurga Steel and Power Private Ltd. will set up a mini-steel plant by investing Rs. 145 crore and provide employment to 220 people.

M/s Mineral Enterprises Ltd. will establish a steel plant with an investment of Rs. 247 crore that would create employment for 2,964 people, a 0.15 MTPA steel plant and a 20 MW power plant, (coal 7.5 MW and waste heat recovery 12.5 MW) at an investment of Rs. 265 crore.

This would generate employment for 2,270 people.

Power plant

Sources said that Prakash Sponge Iron and Power Private Ltd. would set up a gas-based power plant with an investment of Rs. 690 crore, that would provide employment to 170 persons and the Vani Vilas Cements Private Ltd. has decided to set up a cement plant by investing Rs. 800 crore that would provide employment to 1,500 people.

Apart from these six, 11 companies that had shown interest in investing in the district are assessing the available facilities such as transport and water for their plants. In the GIM in 2010, Reliance Industries had shown interest in setting up a cement unit in the district. However, the company withdrew its proposal owing to lack of infrastructure as per its requirements.


11 more companies have also expressed interest in investing in the district

Reliance had proposed to set up a cement plant during GIM 2010 but backed out

[Krishnamoorthy K]

GIM-2012 MOUs/RoIs/EoIs for Steel






Taken from Karnataka Udyoga Mitra & Advantage Karnataka.

GIM = Global Investors Meet
MOU = Memorandum Of Understanding
RoI = Registration of Interest
EoI = Expression of Interest

[Krishnamoorthy K]

Mahesh Kulkarni / Chennai/ Bangalore Jul 16, 2012, 00:24 IST

JSW Steel Limited, the country’s lowest-cost steel producer, plans to set up a 2.3 million tonne per annum (mtpa) cold rolling mill complex to manufacture high-grade automotive steel at Toranagallu in Bellary district. The project is being implemented in phases at an estimated cost of Rs 4,500 crore with Phase-I getting operational by March 2013 and Phase II by December 2013.

In addition to the CRM complex, JSW has also signed an MoU with the state government for setting up a 3.42 MTPA coke dry quenching (CDQ) plant to produce steel. The third new investment project planned by the company is a 1.20 MTPA DRI (direct reduced iron) plant. The total investment on the two plants is Rs 2,400 crore.

Seshagiri Rao, joint managing director and group CFO of JSW, said the company would explore the option of ECA (export credit agencies) backed loans, available at competitive rates to fund about 50 per cent of the cost. “As 50 per cent of the project involves import of technology and equipment, the ECAs in Japan and Europe would be available for us to raise loans. We are looking to raise about Rs 3,000 crore from Japanese Exim Bank to fund our project. We are importing technology from JFE Steel Corp of Japan for the CRM project and the equipment will come from companies both in Japan and Europe,” he said.

He said the ECA loans are available at a competitive interest rate of 3.2 per cent for Dollar denominated loans for a longer tenure of 10-13 years. The loans would be drawn as and when the import of equipment happens, he said, adding the company has placed orders for the equipment for CRM project.

Though the company can access funds at lower rates, it would result in its debt position further going up close to Rs 20,000 crore. Presently, its net debt stands at Rs 16,600 crore. The company has already tied up finance from domestic banks for its DRI project, Rao added.

“We have signed an MoU with Karnataka to set up three projects at the global investors’ meet recently. There will be a lot of demand for automotive grade steel in India in the coming years. Presently, the country requires about 6-8 MTPA automotive steel and JSW Steel intends to produce a third of the requirement once we commission our new plant next year,” Vinod Nowal, Director and CEO, JSW Steel, told Business Standard.

The project includes a 1.9 MTPA cold-rolled annealed and skin passed coils plant and a 400,000 tonnes per annum hot dip galvanised coils plant. The major features of the CRM complex are: pickling-cum-coupled tandem cold rolling mill, continuous annealing line, galvanising-cum-galvannealing line, Auto packaging line and Coil Tracking and Transport System and Yard Management systems.

JSW Steel, presently, operates a 10-mtpa steel plant at Vijayanagar in Bellary district. In 2010, it entered into an agreement with Japan’s JFE Steel Corp to collaborate in automotive steel manufacturing.

“Companies like Tata Steel, SAIL and Essar Steel are in the process of setting up facilities to produce automotive grade steel. Tata Steel is the first mover in this field, which is likely to commission its facility next year ahead of JSW Steel. These companies would produce about 5-6 MTPA of automotive steel in the next two years,” Ritesh Shah, senior analyst, Espirito Santo Securities, said.

BS

[engineer.akash]

Originally Posted by Krishnamoorthy K

JSW to raise Rs 3,000 cr debt for auto steel plant

BS

[Krishnamoorthy K]

TE Narasimhan & Gireesh Babu / Chennai Jul 13, 2012, 00:28 IST

BSE-listed Surana Industries Limited (SIL) is planning to invest over Rs 4,500 crore in expanding its steel manufacturing capacity and in power projects. To support the investment, the company is planning to raise around $120 million from private equity (PE) companies, including Sycamore Ventures LLC (Sycamore), New York.

Mauritius-based investor IndiaStar (Mauritius) Limited, a PE fund managed by Sycamore Ventures, currently holds around 24 per cent of the capital of SIL, post the conversion of the foreign currency convertible bonds (FCCBs) worth $25 million issued to it in 2007.

“The company has, among others, engaged Sycamore to tie-up the funding of $60 million for the steel expansion project,” said a source.

SIL has embarked on an expansion programme for addition of 1.4 million tonne of steel production a year at its existing facilities at Raichur in Karnataka and Gummindpondi in Tamil Nadu. The present aggregate steel manufacturing capacity of the company is 0.4 million tonne a year in these facilities.

The company has already been allocated 99.4 acre at Raichur for the proposed expansion and the total production at the project site is expected to go on stream by March 2014.

Of the total Rs 1,253-crore investment, the promoters and private equity investors would infuse Rs 401 crore, while the company will pump in Rs 100 crore from internal accruals and Rs 752 crore by way of debt, according to a senior official of the company.

The company’s subsidiary Surana Power Limited (SPL) is also planning to raise $60 million through the private equity route to support its Rs 2,400-crore, 2x210-Mw thermal power plant at Raichur. SIL has already infused a capital contribution of Rs 375 crore and the foreign PE investors and their associates and others are expected to bring in their share of Rs 300 crore in due course, the company official said.

The company has achieved financial closure, and as on March 31, 2012, it has spent around Rs 1,030 crore in the project. This has been met out of the equity contribution of Rs 300 crore and a term loan of Rs 770.84 crore. The project implementation is on schedule and is expected to go on stream by April 2013.

SIL’s step down subsidiary, PT Borneo Mines and Minerals, has acquired mining rights in the Sassanga coal mines in Indonesia. This will ensure regular supply of coal to both SPL as well as SIL. The price of coal will be very competitive and this will ensure greater viability for the company.

Surana Green Power, the renewable energy company of SIL, is planning to set up wind mills, which can generate 101 Mw of power. Meanwhile, the company has ruled out any possibility of entering the solar energy space.

The company has clocked revenues of Rs 1,351.42 crore during the year ended March 31, 2012, as compared to Rs 1,223.02 core a year ago. Its net profit stood at Rs 32.76 crore, as against Rs 56.55 crore.

BS

[Krishnamoorthy K]

Ronald Anil Fernandes, Kudremukh, (Chikmagalur dist), Jul 26, 2012, DHNS :

Nearly seven years after the Kudremukh Iron Ore Company Limited (KIOCL) plant in Kudremukh was closed following a Supreme Court order, the giant machinery at the plant stand mute witness to the glorious past when the mini-ratna ruled the roost.



Not one or two, but hundreds of huge machines, mostly imported from Canada in 1976, are gathering dust.

In fact, the machines waiting for a potential buyer.

They include eight massive shovels (each can take out 32 tonnes of ore in a single scoop) costing more than Rs 25 crore (at present market value) each, 32 dumpers (trucks) each with a whopping 120-tonne capacity, five drills (with 58 feet depth and 12.25 dia), six track dozers (the tyre diameter is nine feet), five rubber tyre dozers, five front end loaders, four motor graders and seven huge water sprinklers (dumpers), to mention a few.

Though a global tender was invited four years ago, it did not yield any result as the mining giant wanted to sell the entire equipment to one firm and not in pieces. Sources said that the equipment was estimated to be worth around Rs 2,000 crore, a few years ago.

Speaking to Deccan Herald, KIOCL Chairman and Managing Director Malay Chatterjee (who assumed charge on July 1, 2012) said that if the global tender failed to yield positive results this time, the entire machinery might be auctioned to scrap in a year.

Noting that he held a discussions with Chief Minister Jagadish Shettar, he said that the chief minister had promised to look into the issue after the Assembly session.

He said the entire plant may be relocated. However, he did not elaborate on the same.

Stating that the firm requires a minimum of Rs 30 crore a year to maintain the equipment (that includes salaries of CISF and other staff at the plant), Chatterjee termed it as a sheer waste of national resources.

It was Rs 48 crore two years ago and much more in earlier years. The government for the past seven years has spent over Rs 250 crore just to maintain the equipment.

To a query, he said that the present number of employees in Kudremukh plant was less than 240 (it was 1,260 when the plant was in operation). It is also interesting to note that almost every day, the employees start the machines so that they are kept in good condition, he added.

DHNS

When will Karnataka government give KIOCL alternative mines? Handover non-controversial ones where mining could be started immediately.

[Krishnamoorthy K]

PTI Aug 6, 2012, 09.50PM IST

Bangalore: BMM Ispat Ltd today announced it will complete the setting up of a two MTPA fully integrated steel plant within next three-four years.

The project is being financed by a consortium of 16 banks led by SBI and includes PNB and Exim bank, the company said in a statement.

"The total investment will be around Rs 6,700 crore for this project. In addition, we are progressing on the three MTPA, gas based ISP which will be set up at a cost of Rs 16,300 crore," BMM Ispat Managing Director and CEO Dinesh Singhi said.

The company has signed an MoU with the state government at GIM 2012, he said, adding that once the expansion is completed, the plant will produce five MTPA of steel, which will cater to the south and western parts of the country.

"We will also be supplying low alloy steel for specialist sectors like automobiles in Chennai, Pune and other cities," Singhi said.

Commenting on the challenging times faced by the industry for the past two years, Singhi said the country will have to soon restart the ailing industry by providing the requisite impetus.

"The consumption is bound to increase and industry needs to gear up and look for opportunities that will give them an edge when impediments will be cleared," he said.

SBI's S B Nayar said the availability of captive mines is the strongest point of this unique venture which makes it a strong case for success.

"The importance of infrastructure growth for the economy is being felt all over the country and will surely reflect in easing of the policy hurdles currently plaguing this sector," he said.

BMM Ispat currently produces two million tonnes of steel per annum and is the second-largest steel maker in Karnataka, the company said.

ET

[Krishnamoorthy K]

Mahesh Kulkarni / Chennai/ Bangalore Aug 06, 2012, 00:52 IST

The recent decision of the Supreme Court capping iron ore production at 30 million tonnes per annum in Karnataka has not deterred iron and steel companies from expanding their capacities. Both the existing and new steel companies have lined up expansion plans as well as set up greenfield steel plants in the ore-starved Karnataka state.

While, the new-comers like Arcelor Mittal and Posco are still awaiting allotment of captive mining leases before commencing work on their respective six million tonne per annum Greenfield steel plants in the state, existing manufacturers like JSW Steel Ltd, BMM Ispat Ltd and Kalyani Steel among others have planned expansion.

During the recent Global Investors’ Meet (GIM 2012) organised by state government as many as eight companies have signed memorandum of understanding to make a combined investment of Rs 91,782 crore in the iron and steel sector in Karnataka. These are NMDC, JSW Steel Ltd, JSW Projects Ltd, BMM Ispat Ltd, Mukand Ltd, Zeenath Transport Company, Tata Steel Ltd and Kalyani Steels Ltd. Among these companies, JSW Steel Ltd, BMM Ispat Ltd and NMDC are in various stages of implementing their projects. While, NMDC and BMM Ispat have their own captive mining assets, JSW Steel Ltd, which is the single largest investor in the private sector in Karnataka, does not have captive mines.
JSW Steel currently operates a 11 million tonne per annum steel plant at Toranagallu in Bellary district of Karnataka, BMM Ispat Ltd operates a 2.4 million tonne per annum steel plant at Hospet in Bellary district. BMM Ispat Ltd, the second largest steel producer in Karnataka, has proposed to set up a 3 million tonne per annum natural gas-based steel plant and a 440-Mw gas-based captive-cum-merchant power plant. It presently operates a 2.4 MTPA steel plant at Hospet. “We are presently setting up a 1.3 MTPA beneficiation plant along with blast furnace, coke oven and sinter plants with an output of 2 MTPA. We have tied up with a consortium of banks led by State Bank of India for a loan of Rs 4,200 crore for this project,” an official spokesperson of BMM Ispat said.

He said the company has already received an approval from the State High Level Clearance Committee for its project and would approach the ministry of environment and forests (MoEF) once the Supreme Court settles all mining issues. BMM requires about 4.8 million tonnes of iron ore to meet its expansion plans. It already procures about 4 million metric tonnes of iron ore per annum for its existing plants.

BS

Iron ore crunch spreading in Karnataka
Easing iron-ore supplies lift JSW Steel's prospects‎
Post-turnaround, JSW Ispat to be merged with JSW Steel
NMDC Joint Venture Steel Plant with Russian Company

[engineer.akash]

Originally Posted by Krishnamoorthy K

BMM Ispat to set up steel plant in 3-4 years

ET

[engineer.akash]

K'taka begins process to allot mining lease to Arcelor Mittal

Mahesh Kulkarni / Chennai/ Bangalore Aug 18, 2012, 00:14 IST

Even as decks are being cleared for recommencement of iron ore mining in Karnataka, following the clearance from a Supreme Court panel, the Karnataka government has initiated the process of allotting fresh mining lease to Arcelor Mittal India.

Arcelor Mittal has proposed to set up a six million tonne per annum steel plant and a 750-Mw captive power plant at an investment of Rs 30,000 crore in Bellary district. It signed a memorandum of understanding with the state government during the Global Investors’ Meet in June 2010.


“We have once again started the process of identifying a suitable mining lease for Arcelor Mittal after they withdrew their earlier application for captive iron ore mining lease citing poor quality of ore. We would be conducting the hearing once again with the company before sending our recommendation to the Centre for approval,” MN Vidyashankar, principal secretary, department of commerce and industries, told Business Standard.
He said the government would conduct a fresh survey of mining belt in Bellary before finalising the new mining lease to the company.

Earlier, the Karnataka government had earmarked an area in the Donimalai region of Bellary district for allocating to Arcelor Mittal and had also sent a recommendation to the government of India for approval in mid-2010. However, the company surrendered the proposed area stating its exploration in the deposits found very low-grade iron ore (below 35 per cent Fe grade) and was not suitable to make steel.

In an official communication to the state government last year, Arcelor said it found poor quality of iron ore in the area with Fe (iron) content ranging between 30 per cent and 38 per cent, which was unfit to make steel.

“We have carried out substantial exploratory programme in the area and the studies have revealed that the Fe content (iron) in the ore is between 32 per cent and 38 per cent. The ore found here is mainly haematitie quartzite. It is not feasible for us to use such low-grade ore to produce steel and we have requested the state government to allot captive mines in some other location where the iron content is higher,” Arcelor Mittal India spokesperson said.

Meanwhile, the state government has acquired and transferred around 1,828 acres to Arcelor Mittal India at Kuditini village in Bellary district to set up its steel plant. The company requires about 4,000 acres land to set up its plant and it has deposited Rs 260 crore with the Karnataka Industrial Areas Development Board (KIADB) for land acquisition. Of this, 2,786 acres is enough to build the steel plant, while the remaining land would be used for the power plant and township, the company had said.

There are 166 mining leases operational in Karnataka. The Supreme Court, in a recent judgement, ordered for cancellation of 49 leases after it found rampant illegal mining by them. The court has also cleared 16 mining leases to restart mining and fixed a combined capacity of 8.24 million metric tonnes per annum.

Last year, the state government also recommended to the Centre for allotting captive mining leases to JSW Steel, Posco, KIOCL and Bhushan Steel among others. All these companies have plans to set up mega steel plants in Karnataka.

http://www.business-standard.com/ind...mittal/483556/

[Krishnamoorthy K]

The Supreme Court on Friday took a tough stand over the resumption of mining in Karnataka and asserted that unless it was sure that the reclamation and rehabilitation (R & R) steps are “hundred per cent” complied with, operations cannot be allowed.

“There is an assumption that operations can start and R& R will follow,” the Bench headed by Justice Aftab Alam observed. But it is a wrong assumption, the three-judge Bench clarified.

Various associations of miners and manufacturers tried to persuade the court to permit them to resume mining at least in the A category mines. This category of 16 mining companies, considered to be the lest environmentally predatory, were hoping for a long time that they will be allowed to resume excavations. But their hopes were dashed by on Friday’s hearing.

In fact, the public interest petitioner’s counsel, Prashant Bhushan, told the judges that even A category mines were operating in forest areas, destroying the ecology and reducing agricultural cultivation by 25 per cent. There are allegations of criminal activities and smuggling as well. The judges asked the petitioner, Samaj Parivartana Samudaya, to file a detailed affidavit on this aspect by Monday.

The judges further asked the centrally-empowered committee (CEC) to state what are the permissions required to operate the mines, what are the statutory clearances and how R& R should be implemented at least in the A category mines. The court wanted a “comprehensive report” on these aspects at the next hearing. There was no question of taking up the issue of B and C category mines now, the judges said.

Amicus curiae (“friend of the court”) Shyam Divan, appointed by the court, submitted that the Indian Bureau of Mines should examine the mines before giving approval for starting operations for five years. Moreover, permissions under the water and air pollution laws are also mandatory for mining operations. Whether the mines have fulfilled these conditions should be examined, he said.

C S Vaidyanathan, representing the manufacturers, told the court that some of the metal industries will have to shut soon if ore is not available. There is hardly two million tonnes stock now and it is not sufficient to run the industry. The workers also will have to be paid.

Arvind Datar, counsel for National Mineral Development Corporation (NMDC), said that it can provide 7.5 million tonnes per month. But the corporation’s problem was that there were not enough rakes to clear the stock.

The court accepted the recommendations in the latest report of its CEC. According to it, the meeting held by NMDC with interested parties on August 13 has yielded positive results and the Karnataka government has also approved the recommendations.

The court will hear next Thursday and Friday arguments pursuant to the CEC report of April 27 recommending CBI investigation into theft of iron ore from Belekere port in Karnataka in which the Adanis are involved. Lokayukta of Karnataka had also found massive theft and bribery at Belekere port and had indicted the Adani group of companies.

BS

[engineer.akash]

JFE to share tech with JSW for auto steel

MUMBAI, AUG. 20:
JFE Steel Corporation said it has signed an agreement with its strategic partner JSW Steel to provide technology for the production of automotive steel in India.

JSW Steel is setting up a 2.3-million-tonne a yera cold rolling mill complex to manufacture high-grade automotive steel at its Vijayanagar plant in Bellary.

The project, which is estimated to cost Rs 4,500 crore, is expected to go on stream by March.

JSW Steel operates a 10-mt a year steel plant in Bellary. JFE Steel holds 15 per cent stake in JSW.

The automotive steel is used to make the body parts of passenger cars.

The auto grade steel is largely imported. India requires about 6-8 mt a year of automotive steel.

PROVIDE ASSISTANCE

On Monday, JFE said in a press release that it would provide assistance to develop various grades of steel, including steel for external panels for automobiles in high strength viz JFE-Hiten, Jaz, zinc-coated steel sheets with lubrication and so on, to meet demands from automakers with production bases in India.

Besides providing technical assistance for 2.3 mt a year cold rolling mill, JFE will also assist in 1.9 mt a year continuous annealing lines and 400,000 tonnes a year continuous galvanizing line.

JFE is one of the large suppliers of steel to Japanese automobile companies such as Toyota Motor Corporation and Nissan Motor Company.

JSW Steel need not go through the entire process of qualifying to supply steel to these companies in India since it will be using JFE’s technology, said an analyst.

JFE Steel would also strive to leverage its strategic collaboration with JSW Steel in providing steel products and pursue its growth strategy in the Indian automotive steel sheet market, JFE said in the press release.

http://www.thehindubusinessline.com/...cle3799852.ece

Good old days are back in bellary.

[engineer.akash]

[Krishnamoorthy K]

New Delhi, Aug 23, 2012 (PTI)

Expressing shock at the magnitude of the alleged illegal export of 35 lakh metric tons (MTs) of iron ore by private firms in Karnataka, the Supreme Court today said it wants to explore the possibility if the guilty could be punished within six months.

A three-judge forest bench headed by Justice Aftab Alam asked the Central Empowered Committee(CEC) to suggest viable alternatives to ensure that those involved in illegal mining are convicted within six months and posted the matter for further hearing on September 7.

"Assuming there is a CBI probe, it will take months or years to complete the probe. They will be examining hundreds of witnesses and placing tons of material. But we want the investigation to be completed within six months.

"Let us have some results. See if these cases can be segregated. So far the charge sheet filed in some cases are under Section 379 (punishment for theft) and 406 (criminal breach of trust) of the IPC. The whole thing seems to be an eye-wash," said the bench, also comprising K S Radhakrishnan and Swatanter Kumar.

The apex court turned furious after senior counsel and amicus curiae Shyam Divan informed it that eight lakh out of the 35 lakh MTs of iron ore were actually seized by the authorities and kept in custody as per the orders of a judicial magistrate, yet the seized consignments were exported out of the country.

Citing the CEC report, Divan termed the loss to the exchequer as "huge and enormous" and the illegal export of the huge consignment as "the rarest of rare" in the annals of the country.

"If the state machinery were working properly without turning a blind eye, all this would not have happened. See the magnitude," the apex court remarked while dealing with NGO Samaj Parivartana Samudaya's PIL on illegal mining and encroachment in the forest areas of the state.

The CEC report of April 27 had recommended CBI probe into the illegal export of the iron ore from the state's Belekere port with the alleged involvement of various business houses.

As the irregularities were huge, the apex court today said to senior counsel Shyam Divan, "As an amicus, we want you to tell us how to speed up the probe. Show us the way." The bench then posted the matter for September 7.

At the last hearing, the apex court had said it would not allow resumption of mining activities of iron ore in Karnataka unless there is a statutory compliance and full implementation of reclamation and rehabilitation measures.

The bench had also asked the CEC to file a comprehensive report detailing the steps taken for the statutory compliance and implementation of R&R measures and the permission needed for the resumption of mining.

The Supreme Court on April 13 had accepted the CEC's recommendations, which had suggested that no new mining leases should be granted in Bellary, Tumkur and Chitradurga districts of Karnataka unless rehabilitation plans for the existing leases were executed.

The bench had also asked the CEC to examine if the works in the category 'A' mines, with the least irregularities in them, could be commenced.

In its earlier report, the CEC had distinguished the mines in the area in three categories as A, B and C.

The mines in which there was least or no irregularities were categorised as 'A' and those with maximum illegalities were put in 'C' category.

Karnataka Iron and Steel Manufacturing Association had also sought immediate steps for opening of 16 iron and ore mines in which the apex court appointed expert panel, central empowered committee (CEC), had found minimum irregularities.

DHNS

[Krishnamoorthy K]

Initiates steps to resolve teething problems and procedural delays
Mahesh Kulkarni / Bangalore Aug 22, 2012, 00:29 IST

The Karnataka government has initiated steps to resolve some of the teething problems and procedural delays coming in the way of smooth transportation of iron ore sold through e-auction by the monitoring committee.

It has decided to issue round-the-clock transit permits to NMDC’s mines in Bellary district’s Donimalai. Besides, the government will continue to issue transit permits between 6 am and 10 pm for NMDC’s Kumaraswami mining lease in Bellary district.

To ensure the availability of iron ore for the steel and allied industries, the Supreme Court had, in its order dated August 5 last year, permitted NMDC to produce one million tonnes per month in Donimalai and Kumaraswami mining leases and sell it through the e-auction route. The state’s forest department has said a system has been put in place to streamline the process. It has also decided to deploy additional foresters for this purpose. The principal chief conservator of forests is regularly reviewing this matter and additional manpower would be deployed, wherever required.

In its latest report submitted to the apex court on August 16 this year, the Central Empowered Committee (CEC) said: “It is expected the production, sale and dispatch of iron ore from the two mining leases of NMDC will take place smoothly, following certain steps taken by the Karnataka government.”

At a meeting convened by CEC on August 13, the Karnataka government clarified it had taken a slew of measures to streamline the issue of transit permits by the forest department (Form 27 and 29) for the iron ore sold through e-auction from the mining leases of NMDC and other lessees, and to expedite the preparation of reclamation and rehabilitation (R&R) plans.

The deputy conservator of forests (DCF), Bellary, on the basis of the bulk permits issued by the mines department, would authorise the issue of Form 27 and 29, without insisting on applications by the buyers concerned. The foresters would issue forest permits on the basis of authorisations from the DCFs. The system of endorsement of these by the range forest officers had been dispensed with, the forest officials told CEC.

In the absence of the DCFs, the assistant conservators of forests concerned would authorise the issue of forest permits. The forest permit fee for the mineral sold through e-auction would be accepted from the monitoring committee (out of the contingency funds recovered from buyers), and not from individual buyers.

As regards the implementation of R&R plans, the government said the principal secretary for forests and the principal chief conservator of forests had taken steps to ensure no further problems were faced in the transportation of iron ore sold through e-auctions.

The officers concerned have been asked to ensure the R&R plans approved by the lessees are implemented immediately. CEC has also clarified that the respective lessees are responsible for the implementation of the approved R&R plans, even if the lease period has expired.

CEC also impressed upon the Karnataka government to speed up the process of the preparation of R&R plans, as the current pace of progress was disappointing. “The Karnataka state has agreed to take urgent remedial measures in this regard, including, if found necessary, identification of an alternative agency,” it said.

It has decided that the system of advance or long-term e-auction will be made operational without delay.

BS

[engineer.akash]

Baldota group set to start gold mining in Karnataka next year

Will become the first private company to mine the yellow metal in the country
Mahesh Kulkarni / Bangalore Aug 31, 2012, 00:07 IST

Hospet-based Ramgad Minerals and Mining Ltd (RMML), a Baldota Group company, is in advanced stages of beginning gold mining operations in the Gadag district of Karnataka. The company is awaiting forest permits from the state government to execute its lease for one of the eight gold mining blocks explored in the district, a top company official said.

“We have secured approvals from the state government for setting up a 1,000 tonnes per day (TPD) gold ore processing plant in Gadag district. The plant is being set up in technical collaboration with a South African gold mining company, Turnberry. It will come up at Attikatti village in Gadag district at an initial investment of Rs 300 crore. We are planning to start operations at Sangli village by July 2013,” B L Jain, vice-president, told Business Standard.

The company has been granted mining rights in an open cast mine at Sangli village, about 32 km from Gadag. The mine is spread over 98 hectares.
As operations begin next year, RMML would become the first private sector gold mining company in India. Presently, only one public sector company, Karnataka government-owned Hutti Gold Mines Company Ltd, is operating a gold mine in the Raichur district of Karnataka. The other gold mining company, Bharat Gold Mines Ltd (BGML) has wound up operations at Kolar Gold Fields near Bangalore.

Jain said the exploration carried out by the company in eight villages of Gadag have shown that 2.8 grams of gold could be extracted from every tonne of ore. “We will be operating one of the low-grade gold mines in the country. Due to very high prices of gold in the market, it makes sense for us to extract gold at these deposits,” he said. Hutti Gold Mines extracts about five grams of gold per tonne of ore.

Established in 1961, the Baldota Group has been in the business of exploration, mining and marketing of minerals. It operates a 1.2 million tonnes per annum pellet plant in Koppal district and is also in the process of setting up a 1.2 MTPA integrated steel plant.

The company has been exploring in the Gadag district for the last six years and has been allotted eight villages to explore. It is now in the final stages of securing mining lease for one of these. Other gold mining blocks in the region are Kabuliyatkatti south and main blocks, Mysore mines, block 23, Nabhapur south, central and north blocks.

“The Sangli mine is estimated to contain 2.4 million tonnes of gold ore and each tonne is expected to yield 2.8 grams of gold. At this rate, we will produce 8,000 kg of gold from this mine alone,” Anirban Sen, deputy general manager, MSPL Ltd, another Baldota group company said. MSPL extracts and exports iron ore.

http://business-standard.com/india/n...t-year/484915/