___________

Following is an excerpt from a report in Telegraph.

… According to the draft bill, a mining company has to “allot free shares equal to twenty six per cent in the company… in case the holder of the lease (the land being taken over) is a company”. If the holder of the lease is a person, “an annuity equal to 26% of the profit after tax” has to be given as “annual compensation”.

The draft Mines and Minerals (Development & Regulation) Act, 2010, also proposes that the mining company has to provide employment and/or other assistance in accordance with the rehabilitation and resettlement policy of the state government concerned.

Government sources said they hoped the draft bill would address these issues through the “partnership” plan. “Their (tribals’) home is being taken away so how will they feel. The point is being driven home,” said an official with the mines ministry.

… The sources said the bill could come up before the cabinet for clearance in a few weeks.

The bill envisages the involvement of gram sabhas or district councils or panchayats — as the case may be — who would identify the families to be affected by mining projects, directly or indirectly, before the commencement of operations to “ensure appropriate benefits”.

“A mining welfare fund will be set up, funds from which will be only for tribal land,” sources in the government said. The plan is to create “model villages”, added an official.

The bill also proposes a mandatory Corporate Social Responsibility document to be attached to the mining plan. The document envisages a scheme for annual expenditure by the mining company on socio-economic activities in and around the mine area to facilitate self-employment opportunities.

P. Chidambaram’s home ministry, too, has come up with a plan to assuage tribal sentiments. It has proposed free power for villages within a certain radius of power plants. “People should not feel that the power generated from their land is benefiting only the rich in cities,” said a home ministry official.

…  Home ministry officials said the focus was now on “micro-management” to understand the problems of tribals. On April 30, MPs from 34 districts most affected by Maoist violence will be briefed by home ministry officials. “We can put things right in the bureaucracy, but it is the duty of MPs to go and talk to affected people,” said a source.

On policing, the ministry wants to deploy police personnel “sympathetic” to tribals.  …

Following is an excerpt from a report in sify.in.

The state owned Orissa Mining Corporation (OMC) today paid a dividend of Rs 250 crore to the Orissa government for the year 2008-09. …

OMC has been paying dividend continuously for last five years with the dividend increasing from Rs 60 crore in 2004-05 to Rs 200 crore in 2007-08.

…  OMC was able to prove its resilience with the highest turnover of Rs 2085 crore during the year.

The profit before tax (PBT) of OMC increased from Rs 528.04 crore to Rs 1890.22 crore in 2008-09.

(Thanks to Umashankar babu for the tip.)

Following is an excerpt from a report in the Wall Street Journal.

India’s federal government has approved an increase in mining royalties for various minerals including iron ore, copper, zinc and lead, government officials said Wednesday.

Two mining ministry officials, who didn’t want to be named, told Dow Jones Newswires that India’s cabinet committee on economic affairs has approved the proposal for changes in royalties on minerals other than coal, and a formal notification with immediate effect is expected this week.

…  The change in rates will increase states’ annual revenue from royalties to 46.3 billion rupees ($968.6 million) from 22.88 billion rupees.

… The officials said the government will levy a 10% value-added or ad valorem royalty on iron ore mining.

For iron ore miners, the new royalty will mean switching to a tax regime under which they will be charged based on the market value of the minerals compared with the existing system of flat rates based on weight, the officials said.

At present, the government charges a fixed royalty of up to 27 rupees a metric ton on different grades of iron ore.

Iron ore spot prices in the local market may rise by about 10% in the near future, … said Rahul Baldota, …  But he added that iron ore producers in India, the world’s third-largest supplier of the commodity, will absorb the cost for exports in order to remain competitive.

…  India already charges value-added royalty rates for zinc, copper and lead, but the rates charged will now increase.

The government will charge an 8% royalty on zinc ore, up from 6.6% earlier, while the rate on copper will rise to 4.2% from 3.2%. The royalty on lead ore will go up to 7% from 5%.

On bauxite used for other than alumina and aluminum extraction and exports, a royalty of 25% will be charged. For use in alumina and aluminum extraction, the rate will be 0.5%. Previously, no royalties were charged.

Following is an excerpt from a report in Economic Times.

… The new structure will result in a 10% royalty payout on iron ore of all grades instead of the Rs 13-27 per tonne that states have been getting, depending on the quality of the ore. Revenue for states from the vital input for steel is likely to increase from Rs 250 crore to over Rs 1,500 crore per year.

“Higher royalty payments will certainly impact our expansion projects as lower realisations and even lower margins now leave little with the companies,” said an official of a leading private sector steel company.

The mines ministry estimated the total value of mineral production during 2008-09 at Rs 1.14 lakh crore. Orissa, Chhattisgarh, Jharkhand and Madhya Pradesh are India’s top mineral producing states and they have been pressing the Union government for about two years now to revise the royalty rates.

…Along with iron ore, the new system will lead to changed royalty rates for limestone, zinc, bauxite, manganese, diamond and uranium.

States’ royalty earnings on non-coal minerals are expected to double from level Rs 2,014 crore (at 2006-07 production levels) because of the new structure.

Royalty rates were last modified nearly five years ago and a change has been due since 2007.

Following is from http://pib.nic.in/release/release.asp?relid=46319.

The CCEA has approved the revision of the rates of royalty for uranium as per recommendations of the Study Group. Accordingly, royalty rates for Uranium would be levied on ad-valorem basis on the basis of compensation amount paid to the Uranium Corporation of India Limited (UCIL), at the rate of 2% of the compensation amount received by the UCIL, to be apportioned on state wise basis as per the details provided by the Department of Atomic Energy.

The Government has taken several initiatives to streamline exploration and mining of mineral Uranium in the country. One of the issues pertained to providing a fair compensation tot he State Governments for the mineral mined out from their territory. While the Government is working out a proposal for revision of royalty rates for all minerals, a considered decision has been taken to enhance the royalty rates of mineral Uranium immediately, keeping the fact in view that uranium is a strategic mineral and mining operations in this sector is restricted to Public Sector only. Royalty on minerals is payable to the State Governments by a holder of a mining lease in respect of any mineral removed or consumed by him from the leased area.

In terms of the provisions of the Mines and Minerals (Development and Regulation) Act, 1957, the rates of royalty can not be enhanced more than once in a period of three years. The existing rates of royalty for minerals including Uranium, other than minor minerals, coal, lignite of royalty for Uranium can be enhanced any-time after 14.10.2007.

In order to review the rates of royalty and dead rent the Government constituted a Study Group under the Chairmanship of the Additional Secretary (Mines) with the representatives of the State Governments of Chhattisgarh, Jharkhand, Karnataka, Orissa, Rajasthan, Ministry of Steel, Department of Atomic Energy, Indian Bureau of Mines, and the Federation of Indian Mineral Industries as members. The Study Group noted that the details on domestic production and domestic pricing of uranium are not available in public domain. Further the mining operations of uranium are exclusively done by public sector, with limited captive use. Thus for the sake of transparency, the Study Group recommended that the compensation paid by the Government to the public sector undertakings involved in mining and processing of uranium, would be used as the reference point for determining royalty payable to the State Governments.

*****

AD/SH/LV

In http://www.orissalinks.com/orissagrowth/archives/1616 we discussed a report regarding auctioning of minerals. The following article in Sambada illusrtates with numbers that the best way to go would be to decide the winner of the auction based on evaluating the financial and technical bid together and determining which one offers the state the maximum revenue. (Later when time permits I will translate the article into English.)

Business standard reports that Posco near Paradip in Orissa has received a major boost with people of two grampachayats, out of three panchayats affected by the project, writing to the district collector pledging their support to the project. Excerpts:

“For its steel project, Posco had sought 4,004 acres of land spreading over three panchayats — Nuagoan, Gada Kujanga and Dhinkia. Of the total land, 3,566 acres are government land while the remaining 438 acres are privately owned.

However, the company was unable to acquire land due to stiff opposition by the local people to the project even after lapse of two years of signing of a memorandum of understanding (MoU) with the Orissa government in June 2005 and issue of 4/1 notification for land acquisition in May 2006.

The recent submission by the village committees of Nuagaon and Gada Kujanga to the Jagatsinghpur district collector, pledging their support to the project, has brightened up the prospect of its establishment, pointed out an official of the district administration.

The two panchayats account for 238 acres, out of 438 acres of private land slated to be acquired for the project. Similarly, of the 471 families likely to be displaced by the project, 275 families belong to these panchayats.

Further boosting up the company’s moral 40 betel vine owners, who are among the most affected villagers, have recently surrendered their betel vines and accepted compensation while 250-300 others are waiting to surrender their vines.

In their letters, the respective village committees have expressed their willingness to part with land for the project and offered their participation in the peripheral development work to be undertaken by the government, the sources added.

However, the Dhinkia panchayat, which is the nerve centre of anti-Posco movement, is yet to reconcile though fissures have appeared in stitching up a united front by the people of this panchayat against the company. Seventy-two families from Patna village under Dhinkia gram panchayat have offered their land to the project.

Similarly, the people of Gobindpur village under this gram panchayat pledged their support to the project in September 2007, and invited the district collector to visit them to discussion on land acquisition and compensation packages.

The growing support for the Posco plant was further demonstrated when over 5,000 people attended a rally and public meeting under the leadership of local MLA and senior BJD leader Damodar Rout at Balitutha, the entry point to the troubled site on November 1.

This was the first show of strength by the pro-project groups whose support to the project was often muted by the vocal and often violent opposition mounted the anti-project brigade in the area. To counter the pro-Posco rally, the project opponents had organised a demonstration just across the Balitutha bridge. However, they were hugely outnumbered with about 1,000 people participating in it.

But the leaders of the Posco Pratirodh Sangram Samiti (PPSS), spearheading the agitation against the proposed plant, are willing to accept defeat just on the basis of this headcount.

Most of the people who participated in the pro-Posco rally were outsiders who were transported to the venue by the ruling party, says Abhaya Sahoo, the president of PPSS.

“We will continue our fight and not allow the company to set up its plant here,” he added.“

This looks positive.
Just to summarize

• GadaKujang and Nuagaon are supporting the project.
• Some villages in Dhinkia Panchayat seem to be favouring POSCO like Patna village and Gobindpur village.
• 5000 people supported POSCO in the rally, but , 1000 went against it.
• 72 families from Patna village have already offered land.
• This was the first show of strength by the pro-project groups whose support to the project was often muted by the vocal and often violent opposition mounted the anti-project brigade in the area

Pioneer reports that Ersama MLA and former Minister Damodar Rout on Sunday has initiated a joint political move in favour of the Posco project proposed near Paradip in his constituency.

Excerpts

“Under no particular party’s banner, political leaders met in Jagatsinghpur to chart out a strategy for a show of strength with a slogan Aage maati pare party, literally meaning land first, party later. Presiding over the meeting, Rout harped on the fact that 85 per cent people in Kujang tehsil, where the South Korean steel major wants to set up its greenfield project, were supporting the 12-million-tonne per annum plant. As they are not united, their voice is cowed down by a handful of agitators. Rout sought to prove the point that the anti-Posco brigade was a minority group making tall claims. It was decided to organise a mass meeting on Tuesday at Balitutha, which leaders cutting across party lines would address. Rout’s move follows Chief Minister Naveen Patnaik’s instructions to him to extend his support for the Posco project in his constituency.

Rout, in his turn, has asked the Jagatsinghpur district authorities to help in smooth conduct of the Tuesday meeting, to which Collector Pramod Kumar Mehrada and SP RP Singh have reportedly agreed.

More than 60 representatives from various political parties participated in the deliberations on Sunday. A few of them suggested to organise the mass meeting at a later stage, but Rout said, “Strike the iron when it is hot.”

A section of political observers, however, feels that there may be a scuffle between the anti- and pro-Posco supporters on the day”

Following is an excerpt from New Indian Express on this.

… Chief Minister Naveen Patnaik has demanded that the royalty be fixed on ad valorem basis.

In a letter to Prime Minister Manmohan Singh, the Chief Minister said that the manner in which the Centre is going to revise the royalty, the State will be a loser. The State has already sustained a huge loss because of two-year delay in the revision.

He urged the Prime Minister to compensate the revenue loss of the State and delete the provision of adjusting the cess collected by the State during payment of royalty. As per the Supreme Court ruling, the collection of cess by the State for the development of the people in the mining areas is justified, he argued.

Under the new ‘hybrid formula,’ the State will get Rs 10 more per tonne of coal which is nothing given the delay in the revision of royalty, he said.

As per the Mines and Mineral (Development and Regulation) Act, 1957, the Centre is bound to revise royalty on coal and other minerals every three years. The Act provides that the State should be compensated accordingly for the delay in revision of royalty.

The latest revision was made on August 1 after five years, the Chief Minister reminded and urged the Prime Minister to compensate the State for the last two years.

I wonder if Naveen is referring to the supreme court judgment regarding Vedanta where the supreme court asks Vedanta to give 5% of its profits for spending towards tribal development and environmental safe guards.

Kalinga times reports that a new squad has been formed to check the theft of minerals from rich regions in Orissa. Excerpts:

… Orissa government has finally decided to constitute a special enforcement squad to conduct frequent raids to check theft and illegal transportation of various minerals in different parts of the State.

The decision about formation of the special squad was taken at a review meeting organised by the Steel and Mines Department of the State government here on Wednesday.

The squad, to be named State Mining Enforcement Squad, will be headed by a Mining Department official. It will also have an official of the Forest Department and 12 security personnel.

The squad will be put in place within a month, the meeting decided.

Steel and Mines Minister Padmanabha Behera who presided over the meeting has requested the Forest and Homes Departments to depute their staff for the squad.

In fact, it took the Steel and Mines Department seven months to take a formal decision on the formation of the special squad.

In a statement issued after a similar review meeting held in February this year, the Department had announced that it would constitute a squad to check smuggling of minerals.

Smuggling of minerals has been growing in the State in the recent years.

A total of 322 persons were booked by the Mines Department from April 1, 2006 to January 31 this year and fine amount of Rs 3.25 crore was collected from them.

Besides, 191 vehicles used in illegal transportation of different minerals were also seized during the period.”

I hope this does not get lost in bureaucratic hassles.

Financial express reports on this. Following are some excerpts.

‘We are planning to take up further exploration of mineral resources with a view to accessing the deposits of different ores’’, says … Padmanabha Behera. …

Geologists in the state believe that estimates of proven deposits are only the tip of the iceberg. …

As per the present estimation of the state directorate of geology, Orissa has 4,177 million tonnes (mt) of iron ore, 1,530 mt of bauxite, 60,983 mt of coal, 2,224 mt of limestone and 111 mt of chrome ore. …

The state government has signed memoranda of understanding (MoU) with 44 steel companies for an investment of Rs 1.97 lakh crore for built-up steel-making capacity of 74.66 mt. As many as 25 companies have gone in for production. Besides, 13 MoUs in the power sector, four in the aluminium sector have also been signed. …

Iron ore deposits have been explored up to 25 to 30 metre depth and the government is contemplating deeper exploration, he added.

J N Das, an expert on Orissa minerals, however, cautioned the state government that mining of iron ore below 25-30 metres would not be economically viable.

‘‘Oxidisation is the ultimate cause of the precipitation of iron oxides in the upper crust. Two rules which govern the fixation and mobilisation of iron in aqueous solution are: (1)oxidising conditions promote the precipitation of iron ore, reducing conditions promote the solution; (2)acid conditions generally promote the solution of iron, alkaline conditions and promote the precipitation of iron. Thus, iron ore is accumulated towards the surface. Iron ore is not expected below banded iron silica rocks (BHQ/BH)/Quartzite in a normal deposit cycle. Even if it occurs due to structural disturbances like folding etc., it can’t be mined economically for use in steel industries”, he says.

The government is also preparing a mining policy with emphasis on maximum value addition in the state, optimum use and conservation of minerals. The policy will also encourage further exploration of existing mines and ew deposits.

‘‘Once the Centre announces its mining policy on the basis of the Hoda Committee report, the state will put in place its first-ever mining policy’’, says the steel and mines minister.

The state is at present following the policy of value addition for recommending mining lease for companies. It is in favour of a ban on export of iron ore, which has touched 17 m.t out of the total production of 61 m.t in 2006-07. 

From the Ministry of Mines mineral concession web page we have the following data:

• Currently under process

  • Shri Prabhu Dayal Agarwal

    ML

    Manganese Ore

    106.133 Hect.

    Query to State Govt. on 24.6.2005. Reminders issued on 3.10.2005, 27.2.2006 and 14.7.2006.

  • M/s. O.M.C. Ltd.

    ML

    Iron Ore and Manganese Ore

    416.835 Hect.

    Query to State Govt. on 11.9.2006.

  • M/s. Sita Cement Ltd.

    ML

    Lime Stone and Dolomite

    26.265 Hect.

    Query to State Govt. on 18.4.2006. Reminder on 14.7.2006.

  • M/s. SMC Power Generation Ltd.

    ML

    Iron Ore

    246.039 Hect.

    Query to State Govt. on 11.5.2007.

  • M/s. POSCO-India Pvt. Ltd.

    PL

    Iron Ore

    6204.352 Hect.

    Under consideration in Ministry of Mines.

  • M/s. Orissa Mining Corpn. Ltd.

    ML

    Iron Ore

    1011.5 Hect.

    Under process in MoM.

  • M/s. Action Ispat & Power Pvt. Ltd.

    PL

    Iron Ore

    235 Hect.

    Under process in MoM.

• Approvals after 1st April 2007 (3 out of 125 are in Orissa)

  • 19.

    M/s Rungta Mines Ltd.

    RP

    Gold,Silver and Platinum

    1941 Sq.Km.

    ORISSA

    13/4/2007

  • 20.

    M/s. Sree Metalliks Ltd.

    ML

    Iron Ore

    35.774 Hect.

    ORISSA

    13/4/2

  • 21.

    M/s. Deepak Steel and Power Ltd.

    ML

    Iron Ore

    38.687 Hect.

    ORISSA

    13/4/2007

• Approvals in 2006-07 (6 out of 142 are in Orissa)

  • 14.

    M/s. Neepaz Metalliks Pvt.Ltd.

    ML

    Iron Ore

    109.791 Hect.

    ORISSA

    1/6/2006

  • 23.

    M/s. Indian Metals & Ferro Alloys Ltd.

    PL

    Iron Ore and Manganese Ore

    57 Hect.

    ORISSA

    14/6/2006

  • 24.

    M/s. Balasore Alloys Ltd.

    PL

    Iron Ore and Manganese Ore

    284 Hect.

    ORISSA

    14/6/2006

  • 56.

    Shri Pratap Kumar Mishra

    PL

    Manganese Ore

    30.44 Hect.

    ORISSA

    22/8/2006

  • 119.

    M/s. Rungta Mines Ltd.

    RP

    Gold

    1007.612 Sq.Km.

    ORISSA

    2/2/2007

  • 121.

    M/s. Rungta Mines Ltd.

    RP

    Gold and Platinum

    1818.627 Sq.Km.

    ORISSA

    8/2/2007

• Approvals in 2005-06 (6 out of 128 are in Orissa)

  • 2.

    M/s. HINDALCO Industries Ltd.

    ML

    Bauxite

    268.11 Hect.

    ORISSA

    20/4/2005

  • 5.

    M/s. AMIL Mining India Pvt. Ltd.

    RP

    Precious Stones

    2000 Sq.Km.

    ORISSA

    25/5/200

  • 9.

    M/s. AMIL Mining India Pvt. Ltd.

    RP

    Precious Stones

    1870 Sq.Km.

    ORISSA

    6/6/2005

  • 10.

    M/s. AMIL Mining India Pvt. Ltd.

    RP

    Precious Stones

    631.8 Sq.Km.

    ORISSA

    6/6/2005

  • 11.

    M/s. AMIL Mining India Pvt. Ltd.

    RP

    Precious Stones

    1930 Sq.Km.

    ORISSA

    6/6/2005

  • 12.

    M/s. AMIL Mining India Pvt.

    RP

    Precious Stones

    550 Sq.Km.

    ORISSA

    6/6/2005

  • 82.

    Shri Saligram Khirwal

    PL

    Iron Ore and Manganese Ore

    93.741 Hect.

    ORISSA

    26/9/2005

• Approvals in 2004-05 ( 4 out of 119 in Orissa)

  • 11.

    M/s. AMIL Mining India Pvt. Ltd.

    RP

    Base Metals,Precious Stones and Associated Minerals

    2600 Sq.Km.

    ORISSA

    19/7/2004

  • 40.

    M/s. N.M.D.C. Ltd.

    PL

    Heavy Mineral Sand,Rutile,Siliminite and Garnet

    665.883 Hect.

    ORISSA

    3/9/2004

  • 44.

    M/s. Orissa Mining Corporation Ltd.

    ML

    Bauxite

    1073.389 Hect.

    ORISSA

    13/9/2004

  • 47.

    M/s. FAC0R Ltd.

    ML

    Platinum

    187.03 Hect.

    ORISSA

    28/9/2004

• Approvals in 2003-04 ( 17 out of 121 in Orissa)

  • 14.

    M/s. Phelps Dodge Exploration India Pvt. Ltd.

    RP

    Copper, lead, zinc, gold, silver, cobalt nickel and associated minerals

    3409.80 Sq. Kms.

    Orissa

    30.5.2003

  • 15.

    M/s. A.C.C. Rio Tinto Exploration Ltd.

    RP

    Diamond & associated minerals

    1760 Sq. Kms.

    Orissa

    30.5.2003

  • 16.

    M/s. BHP Minerals India Pvt. Ltd.

    RP

    Nickel, copper, lead, zinc, gold & associated minerals

    2605 Sq. Kms.

    Orissa

    30.5.2003

  • 17.

    M/s. BHP Minerals India Pvt. Ltd.

    RP

    Nickel, copper, lead, zinc, gold & associated minerals

    2435 Sq. Kms.

    Orissa

    30.5.2003

  • 52.

    M/s. ACC Rio Tinto Exploration Ltd.

    RP

    Diamond and associated minerals

    798 Sq. Kms.

    Orissa

    30.7.2003

  • 68.

    M/s. Mangalam Carbide Ltd.

    PL

    Bauxite

    93.767 hects.

    Orissa

    27.8.2003

  • 71.

    M/s. ACC Rio Tinto Exploration Ltd.

    RP

    Diamond & associated minerals

    1360 Sq. Kms.

    Orissa

    28.8.2003

  • 72.

    M/s. ACC Rio Tinto Exploration Ltd.

    RP

    Diamond & associated minerals

    265 Sq. Kms.

    Orissa

    28.8.2003

  • 77.

    Shri Dhiranirod Paida

    PL

    Iron and manganese

    7.31 hects.

    Orissa

    10.9.2003

  • 85.

    Sri Santi Bardhan Mishra

    PL

    Iron & manganese ore

    18.240 hects.

    Orissa

    24.10.2003

  • 86.

    Shri Jitendranath Patnaik

    ML

    Iron Ore

    57.50 hects.

    Orissa

    24.10.2003

  • 104.

    Shri K.C. Pradhan

    ML

    Iron ore

    27.794 hects.

    Orissa

    5.12.2003

  • 105.

    Shri Miter Sen

    ML

    Manganese ore

    21.347 hects.

    Orissa

    5.12.2003

  • 106.

    M/s. Saraf Aencies Ltd. of Chariat Cement Co.

    ML/relaxation

    Limestone and dolomite

    33.104 hects.

    Orissa

    5.12.2003

  • 119.

    M/s. Hindalco Industries Ltd.

    PL

    Bauxite

    239.053 hects.

    Orissa

    6.1.2004

  • 120.

    M/s. BHP Minerals India Pvt. Ltd.

    RP

    Nickel, copper, lead, zinc, gold & associated minerals

    2249.071 Sq. Kms.

    Orissa

    6.1.2004

  • 121

    M/s. BHP Minerals India Pvt. Ltd.

    RP

    Nickel, copper, lead, zinc, gold & associated minerals

    1278.160 Sq. Kms.

    Orissa

    6.1.2004

• Approvals during 2002-03 ( 24 out of 135 are in Orissa)

  • 2.

    Shri Bimal Prasad Patnaik

    PL

    Iron and manganese ore

    68.00 hects.

    Oissa

    3.4.2002

  • 3.

    M/s. Usha (India) Ltd.

    PL

    Iron and manganese ore

    60.00 hects.

    Orissa

    3.4.2002

  • 4.

    Shri Prabodh Mohanty

    PL

    Iron and manganese ore

    61.00 hects.

    Orissa

    3.4.2002

  • 5.

    Shri Jitendranah Patnaik

    PL

    Iron and manganese ore

    52.00 hects.

    Orissa

    3.4.2002

  • 6.

    M/s. Utkal Mining & Sales (P) Ltd.

    PL

    Iron and manganese ore

    65.00 hects.

    Orissa

    3.4.2002

  • 7.

    M/s. Sun Alloys & Mining Ltd.

    PL

    Iron ore

    77.00 hects.

    Orissa

    3.4.2002

  • 8.

    M/s. Sun Alloys & Mining Ltd.

    PL

    Iron Ore

    25.00 hects.

    Orissa

    3.4.2002

  • 17.

    M/s. De Beers India Minerals Pvt. Ltd.

    RP

    Diamond & associated minerals

    2000 Sq. Kms.

    Orissa

    19.4.2002

  • 18.

    M/s. De Beers India Pospecting Pvt. Ltd.

    RP

    Diamond & associated minerals

    2000 Sq. Kms.

    Orissa

    19.4.2002

  • 19.

    M/s. De Bees India Minerals Pvt. Ltd.

    RP

    Diamond & associated minerals

    2000 Sq. Kms.

    Orissa

    19.4.2002

  • 20.

    M/s. De Beers India Prospecting Pvt. Ltd.

    RP

    Diamond & associated mineals

    1880 Sq. Kms

    Orissa

    19.4.2002

  • 21.

    M/s. De Beers India Prospecting Pvt. Ltd

    RP

    Diamond & associated mineals

    1733 Sq. Kms.

    Orissa

    19.4.2002

  • 22.

    M/s. Prakash Industries Ltd.

    PL

    Iron & manganese ore

    95.00 hects.

    Orissa

    19.4.2002

  • 29.

    M/s. Indian Rare Earths Ltd.

    RML/condition

    Ilmenite & associated minerals

    2618.49 hects.

    Orissa

    20.5.2002

  • 38.

    Shri Naresh Kumar Agrawal

    PL

    Iron & manganese ore

    32.045 hects.

    Orissa

    12.6.2002

  • 42.

    Smt. Meenati Mohanty

    PL

    Iron ore

    38.22 hects.

    Orissa

    26.6.2002

  • 48.

    M/s. Orissa Sponge Iron Ltd.

    ML

    Iron ore

    459.00 hects.

    Orissa

    17.7.2002

  • 74.

    M/s. Mangilal Rungta

    ML/inclusion

    Iron Ore

    715.637 hects.

    Orissa

    13.9.2002

  • 85.

    M/s. AMIL Mining India Pvt. Ltd.

    RP

    Copper, lead, zinc (basemetals), precious stones & associated minerals

    128.06 Sq. Kms.

    Orissa

    1.10.2002

  • 87

    Shri Tarini Prasad Mohanty

    ML

    Iron & manganese ore

    48.117 hects.

    Orissa

    9.10.2002

  • 102.

    Shri Vijaya Kumar Ojha

    PL

    Iron & manganese ore

    14.00 hects.

    Orissa

    3.12.2002

  • 103.

    Shri Banwari Lal Newatia

    PL

    Iron & manganese ore

    20.00 hects.

    Orissa

    3.12.2002

  • 104.

    M/s. Mayur Electro Cermics Pvt. Ltd.

    PL

    Iron & manganese ore

    46.00 hects.

    Orissa

    3.12.2002

  • 112.

    Shri K.C. Pradhan

    ML

    Manganese Ore

    16.791 hects.

    Orissa

    8.1.2003

• Approvals during 2001-02 (8 out of 114 are in Orissa)

  • 26.

    M/s. Nava Bharat Ferro Alloys Ltd.

    ML

    Chromite

    84.881 hects.

    Orissa

    9.7.2001

  • 40.

    M/s. M.G. Mohanty

    ML

    Iron Ore

    14.00 hects.

    Orissa

    26.9.01

  • 41.

    M/s. M.G.M. Mohanty

    ML

    Iron Ore

    28.397 hects.

    Orissa

    26.9.01

  • 62

    M/s. OMDC Ltd.

    2nd RML/ relaxation

    Iron and manganese ore

    1276.79 hects.

    Orissa

    26.11.2001

  • 64.

    Shri Jitendranath Patnaik

    ML

    Iron Ore

    4.916 hects.

    Orissa

    19.12.2001

  • 111.

    M/s. Neelachal Minerals Ltd.

    PL

    Iron & Manganese Ore

    27.98 hects.

    Orissa

    27.3.2002

  • 112.

    Shri K.B. Pahi

    PL

    Iron, Manganese & Bauxite

    205.50 hects.

    Orissa

    27.3.2002

  • 113.

    Shri K.B. Pahi

    PL

    Iron, Manganese & Bauxite

    226.26 hects.

    Orissa

    27.3.2002

• Approvals during 2000-01 (19 out of 176 are in Orissa)
• Approvals during 1999-2000 ( 19 out of 219 are in Orissa)
• Approvals during 1998-99 ( 35 out of 339 are in Orissa)
• Rejections
• Approval for aerial prospection of large areas

Following are some of the objections raised by CM Naveen Patnaik on the Hoda committee recommendations on national mines policy. These are excerpts from a Statesman article.

• The recommendations of the committee treat the nation as a unit instead of the state, as far as value-addition is concerned. This means that ore from Orissa can go to any other part of the country to feed the industries of that particular state.
  If this is the case, what would happen to the jobs and the revenue that ought to have developed in Orissa, and why would a Posco or a Mittal come to Orissa to set up industries, the CM remarked.
  
• The Hoda Committee has also recommended that the export of ore should be freely allowed, at least for the next 10 years. This is again contrary to the principle that the export of ore should be phased out. Moreover, the export duty goes to the coffers of the centre and the royalty earned by the state is a pittance, Mr Patnaik observed.
  
• It seeks to abolish the provision, which empowers the state to recommend the cases of applicants who want to set up industries, without sticking to the first come first serve principle. The Centre has to be vested with powers to allot the mines to anybody, without value additional within the state as is the policy in Orissa now. The state governments are the custodians of the minerals located within their boundary and therefore any attempt to take away this right by the centre is unconstitutional, the CM charged.
  
• Another objectionable recommendation is that there should be seamless transition from reconnaissance permit to prospecting licence and further to the grant of mining lease.

Following are some tables from Pratisruti Plus May 1-15th issue.

Following is from Samaja epaper. It gives the reaction of Orissa on the mining policy recommended by the GOM.

Livemint reports the view of miner’s on the iron ore export duty levied by many states. Following are excerpts of that report.

Miners on 8 July demanded the duty on iron ore exports be rolled back, saying it could result in revenue loss of Rs4,554 crore if exports slumped by 30%.
“Iron ore export duty has since been reduced to Rs50 a tonne on fines of 62% and below only. In this context, we feel export duty has achieved none of its objectives,” …

… said there could be a revenue loss of Rs4,554 crore in case of a 30% reduction in exports and a loss of Rs2,642 crore in case exports dipped 20%.

“We also feel imposition of export duty will roll back and throttle all initiatives taken by the mining industry. In fact, ore exporters are losing between Rs200 to Rs300 a tonne owing to rupee appreciation,” …

… argued that the current system of computing the mineral royalty ad valorem is unreasonable. He sought its abolition and suggested the government instead introduce a ‘fixed price’ method to calculate royalty.

Besides the royalty, mineral-rich states have imposed an additional burden on mining industry by levying land tax and peripheral development tax, Sahni said and pointed out that the Jharkhand government has levied land tax at 5% of the commercial value whereas Orissa government has asked the miners to pay 5% of their annual profits for the peripheral development fund.

Similarly the Rajasthan government also has levied mineral-wise land tax at rates varying from Rs10 to Rs100 per sq m, Sharma said. “We feel prima facie, such taxes are not legally in line with the provisions of MMDR Act and may deserve reconsideration,” he pointed out.

Low spending on exploration, delays in clearing applications and difference in fiscal policies pursued by the Centre and states were key impediments to foreign investment in the mining sector. Baldota said the government would have to expeditiously clear applications for prospecting licences and reconnaissance permits.
“The emphasis should be to increase the mineral production rather than enhancing the rates of royalty as being advocated by the states. While computing royalty on ad valorem basis, states add 20% of benchmarked value in royalty to be paid by the miners,” Sahni said.

“This practice is not reasonable and has no basis,” he said. “FIMI would like to request the Mines Ministry for deletion of 20% of the benchmark value in the royalty payable by the mine owners,” he said.

Baldota said no mining lease should be granted without first granting prospecting licence and ensuring prospecting operations within the granted area are duly carried out.

The FIMI is of the opinion that leases which are due for renewal and have total surface area of up to 50 hectares should not attract the provision of public hearing that environmental clearance should not be insisted upon for prospecting licence as the forest degradation at this stage is nil or minimal, he added.

The miner’s demands as stated above is completely against the interest of states.

The economic times reports that the new mineral policy has been announced. Excerpts are mentioned in another post. Here, we list it’s salient features.

• The GoM has accepted the views of the mining industry while recommending no changes in the guidelines for exports.[This decision supports POSCO’s case for captive mines]
• More powers provided to state government. The state governments will be able to give preference to companies undertaking value addition within the state while allotting iron ore mines. This will reduce standalone mines.
• The policy will provide captive mines to all steel units in operation up to July 2006.[I’m not sure about it’s implications for POSCO]
• The policy will now aim towards procedural simplification for attracting investments in the sector.
• It will also benefit the states as under the new policy, the present system of specific rate royalty will shift to ad valorem rate of 7.5%.[This will have great benefits for Orissa and other mineral rich states]. Once notified, the proposal will increase royalty earnings by almost six times.
• The states sitting over mining applications of companies will be penalised as delays will transfer their powers to the Centre.
• Another important aspect of the new policy is that a process of competitive bidding can be initiated for allocation of captive coal blocks. This is presently done by a screening committee within the coal ministry. The bidding process will also be started for all other major minerals.
• Besides, the government will auction mining areas where full prospecting has to be done.
• Companies will have to earmark 3% of turnover for undertaking rehabilitation and resettlement of displaced people under a sustainable development model. However, the ministry of environment and forests will work out fresh guidelines separately to introduce environment-friendly mining practices in the industry.

The economic times states that mining areas will be auctioned for prospecting but the Telegraph says that Auctions mean global giants such as Posco and ArcelorMittal will not be allowed to negotiate for leases with Jharkhand and Orissa on the basis of plans for units in these states. Of course, this statement is speculative. But the states need to be careful before agreeing to this proposal.

Perhaps, We will have to wait and watch for the final notification on the policy.

Following are excerpts from the Economic Times report on this:

A GROUP of ministers (GoM) on Friday cleared the National Mineral Policy that retains the freedom of mining companies to export iron ore without restrictions on quantity or quality. …

The decision also clears the cloud over Posco’s proposed steel project in Orissa that has proposed to export some portion of ore from its captive mines. The company has proposed the exports to enable it to import high-grade ore required for mixing.

However, in order to facilitate value addition within the country and boost steel production, the new policy has given more powers to the state. The state governments will be able to give preference to companies undertaking value addition within the state while allotting iron ore mines. This will mean standalone mining activities will be disincentivised. However, the entire country will be treated as one economic region and states will have to permit transfer of ore outside the state if no one is willing to put up a plant there.

Moreover, the GoM has decided that a balanced policy will be followed while granting captive iron ore mines to steel companies. The policy will, therefore, provide captive mines to all steel units in operation up to July 2006 . It will also benefit the states as under the new policy, the present system of specific rate royalty will shift to ad valorem rate of 7.5%. Once notified, the proposal will increase royalty earnings by almost six times. For example, royalty earnings from iron ore of five ore producing states work out to Rs 250 crore. This will increase to Rs 1,250 crore under the new regime.

However, the new policy will also clip some of the powers of the states. The states sitting over mining applications of companies will be penalised as delays will transfer their powers to the Centre.

Another important aspect of the new policy is that a process of competitive bidding can be initiated for allocation of captive coal blocks. This is presently done by a screening committee within the coal ministry. The bidding process will also be started for all other major minerals.

Besides, the government will auction mining areas where full prospecting has to be done. This will require amendments to the Mines and Mineral (Development & Regulation) Act, 1957, that is likely to be introduced during the monsoon session of Parliament.

Under the new policy, companies will have to earmark 3% of turnover for undertaking rehabilitation and resettlement of displaced people under a sustainable development model. However, the ministry of environment and forests will work out fresh guidelines separately to introduce environment-friendly mining practices in the industry.