The document discusses proposed changes to mining laws and regulations in India. Key points:
- The Indian cabinet was considering an ordinance that would introduce auctioning of mining leases for critical minerals, changing how mining rights are allocated. However, the ordinance was still being examined.
- States like Odisha and Goa were rushing to renew existing leases before the potential new rules around auctions came into effect.
- The proposed ordinance would give a 5-10 year grace period for existing leases over 50 years old before they would need to be auctioned.
- The changes aim to increase revenue and investment in the mining sector but existing leases held by large companies would still be protected to some extent
The document discusses India's looming iron ore supply crisis by 2020 if mining leases are not efficiently handled. It warns that unless exploration is increased and expired leases are renewed, iron ore production will decline. It also discusses issues facing the mining industry like government policies and taxes that discourage production and expansion. India has dropped in an investment attractiveness index for the mining sector due to issues like unclear regulations and legal uncertainty.
INDIAN MINERAL EXPLORATION POLICY &
REALITY DIVERGENCE
OUTLOOK FOR METALS SECTOR PROMISING: CENTRUM RESEARCH
USHA MARTIN BUY TO DIVERSIFY TATA STEEL' S PRODUCT RANGE:REPORT
#MINING INDIA NEWS
India’s economy is charting rough waters, with virtually every sector facing growth concerns. The mining sector is among the worst hit, with seemingly-unending bad news impacting it deeply. Despite large reserves of iron ore and coal, India’s imports of these precious raw materials have been increasing. The cover story of MSLGROUP in India’s Public Affairs Round-up, or PAR, explores what lies in store for mining as India enters a crucial election year.
The other important debate in business circles centres around the new Companies’ Act that mandates corporate social responsibility (CSR) on companies of a certain size. Amrita Choudhary, deputy head of content at MSLGROUP in India, argues that the law will alter India Inc’s social approach and prove to be a big opportunity for CSR consultancies.
The document summarizes several stories related to mining in India:
1) The Indian government has decided to stop coal imports for state-run power producers by March 2017 due to an abundance of domestic coal. It has also put plans to award new coal blocks to the private sector on hold for the same reason.
2) The Orissa state government has issued notices to auction 4 new mines, including blocks of limestone, manganese, and iron ore.
3) Many major mining companies' applications for mining licenses are stuck awaiting environmental or forest clearances, putting them at risk of lapsing if not issued by a January 2017 deadline.
4) 33 miners trapped in a Chinese coal mine after an
Geonesis volume 3 issue 1 december 2015Lijin Sunil
Geonesis
Celebrating 2 years of success...
Introducing new Mobile App for Android: Visit play store or click this link: https://goo.gl/X39lTR
INDIA NEEDS MORE FOREIGN INVESTMENT IN MINING
SECTOR....
FIRMS STRUGGLE TO GE T CLEARANCES AT ‘READY TO MINE’ COAL BLOCKS
GOVT TO AUCTION 12 COPPER MINES , EXPECTS 15 MT OF ORE SUPPLY
RARE EARTH DIPLOMACY: INDIA AND JAPAN MA KES STRATEGIC PARTNERSHIP TO EXPLORE STAKES IN DEEP - SEA MINING
FIVE STATES ISSUE NOTICES TO AUC TION 28 OF 70 MINES IN FIRST PHASE
The Indian government plans to announce new mining reforms within the next 6-8 weeks. This will include opening up commercial coal mining to private players and auctioning 500 mineral blocks. The coal ministry is expected to award leases for 19 coal mines auctioned for commercial mining within 7-10 days of due diligence. These mines have a combined capacity of 50 million tonnes per year and were bid on primarily by companies like Adani, Aditya Birla, Vedanta, and Jindal. The new reforms aim to enhance productivity, reduce environmental impact, and make mining operations more sustainable to support Aatmanirbhar Bharat.
- The Indian mining sector has struggled with bureaucratic hurdles and regulations that have slowed growth, but PM Modi is trying to attract private and foreign investment to revive the sector. Measures include allowing more foreign investment, auctioning mining licenses, and extending mining concessions to 50 years.
- Bhushan Power & Steel emerged as the preferred bidder for the Netrabandha Pahar iron ore block in Odisha, agreeing to share 87.15% of revenue with the state government. Adani Cementation plans to set up cement grinding and clinker facilities worth 3000 crore rupees in Gujarat and Karnataka to meet growing demand.
- A survey found that Indian mining
The document discusses India's looming iron ore supply crisis by 2020 if mining leases are not efficiently handled. It warns that unless exploration is increased and expired leases are renewed, iron ore production will decline. It also discusses issues facing the mining industry like government policies and taxes that discourage production and expansion. India has dropped in an investment attractiveness index for the mining sector due to issues like unclear regulations and legal uncertainty.
INDIAN MINERAL EXPLORATION POLICY &
REALITY DIVERGENCE
OUTLOOK FOR METALS SECTOR PROMISING: CENTRUM RESEARCH
USHA MARTIN BUY TO DIVERSIFY TATA STEEL' S PRODUCT RANGE:REPORT
#MINING INDIA NEWS
India’s economy is charting rough waters, with virtually every sector facing growth concerns. The mining sector is among the worst hit, with seemingly-unending bad news impacting it deeply. Despite large reserves of iron ore and coal, India’s imports of these precious raw materials have been increasing. The cover story of MSLGROUP in India’s Public Affairs Round-up, or PAR, explores what lies in store for mining as India enters a crucial election year.
The other important debate in business circles centres around the new Companies’ Act that mandates corporate social responsibility (CSR) on companies of a certain size. Amrita Choudhary, deputy head of content at MSLGROUP in India, argues that the law will alter India Inc’s social approach and prove to be a big opportunity for CSR consultancies.
The document summarizes several stories related to mining in India:
1) The Indian government has decided to stop coal imports for state-run power producers by March 2017 due to an abundance of domestic coal. It has also put plans to award new coal blocks to the private sector on hold for the same reason.
2) The Orissa state government has issued notices to auction 4 new mines, including blocks of limestone, manganese, and iron ore.
3) Many major mining companies' applications for mining licenses are stuck awaiting environmental or forest clearances, putting them at risk of lapsing if not issued by a January 2017 deadline.
4) 33 miners trapped in a Chinese coal mine after an
Geonesis volume 3 issue 1 december 2015Lijin Sunil
Geonesis
Celebrating 2 years of success...
Introducing new Mobile App for Android: Visit play store or click this link: https://goo.gl/X39lTR
INDIA NEEDS MORE FOREIGN INVESTMENT IN MINING
SECTOR....
FIRMS STRUGGLE TO GE T CLEARANCES AT ‘READY TO MINE’ COAL BLOCKS
GOVT TO AUCTION 12 COPPER MINES , EXPECTS 15 MT OF ORE SUPPLY
RARE EARTH DIPLOMACY: INDIA AND JAPAN MA KES STRATEGIC PARTNERSHIP TO EXPLORE STAKES IN DEEP - SEA MINING
FIVE STATES ISSUE NOTICES TO AUC TION 28 OF 70 MINES IN FIRST PHASE
The Indian government plans to announce new mining reforms within the next 6-8 weeks. This will include opening up commercial coal mining to private players and auctioning 500 mineral blocks. The coal ministry is expected to award leases for 19 coal mines auctioned for commercial mining within 7-10 days of due diligence. These mines have a combined capacity of 50 million tonnes per year and were bid on primarily by companies like Adani, Aditya Birla, Vedanta, and Jindal. The new reforms aim to enhance productivity, reduce environmental impact, and make mining operations more sustainable to support Aatmanirbhar Bharat.
- The Indian mining sector has struggled with bureaucratic hurdles and regulations that have slowed growth, but PM Modi is trying to attract private and foreign investment to revive the sector. Measures include allowing more foreign investment, auctioning mining licenses, and extending mining concessions to 50 years.
- Bhushan Power & Steel emerged as the preferred bidder for the Netrabandha Pahar iron ore block in Odisha, agreeing to share 87.15% of revenue with the state government. Adani Cementation plans to set up cement grinding and clinker facilities worth 3000 crore rupees in Gujarat and Karnataka to meet growing demand.
- A survey found that Indian mining
1. Govt looks to further amend MMDR Act
Coal ministry mulls scheme to allow coal block owners to
surrender mines.
Odisha Iron Ore Mine Block Auction Summary—Phase II
Unlocking Huge Potential of Mineral Exploration;
Odisha’s decision to auction virgin mines raises environmental concerns
‘Single window’ process for all environment clearances on anvil
A possible link basin between Bamer basin & Jaisalmar Basin
and minerals of economic importance - V.P. Laul
Field work experience in Guyana (South America) for
Gold – A travelogue - Dr. Vivek Laul
Workshop on Enhancing Mineral Exploration Through National
Mineral Exploration Trust (NMET)
Need for increase in mineral exploration activities in
eastern States, says Centre
Odisha to offer five more mines for auction
Coal auctions: Modi govt's policy push to private miners will cost Chhattisgarh Rs 900 crore a year
Odisha mining auction: 123 companies in race for 11 mineral blocks
Proposed amendments to Coal Bearing Areas Act will change
land acquisition for mining: Experts
JSW Steel seeks consent to surrender Gonua iron ore
mine in Odisha
MSMEs’ SOS to Odisha govt. over iron ore scarcity
NMDC, Ministry of Steel assists NINL to start iron ore mining
Atomic Minerals Directorate looks for lithium in
Karnataka, Rajasthan
Australian High Commissioner meets Chhattisgarh CM; holds
talks on mutual cooperation
Exercise due diligence in clearing mining leases, former
bureaucrat urges A.P. govt
Govt relaxes green norms for projects connecting mines
39 mining projects of Coal India face delays
Salient Features of India's Mineral (Auction) Rules, 2015Gouranga Sen
Following the successful initiation of auctioning coal blocks, the Central Government of India has framed the Mineral (Auction) Rules, 2015 for auctioning other minerals like iron ore, bauxite, limestone etc. The article shows the overview of the process and implications.
INDIA’S MINING INDUSTRY TURNING A CORNER....
After several years of contraction, the Indian mining industry
has turned the corner, marking a highlight of Prime Minister
Narendra Modi’s two years in office.
According to official data, the mining industry notched up
8.2% growth during the first eleven months of the 2015/16
financial year, which is now being touted as a considerable
achievement by the Modi government against the backdrop of
four consecutive years of contraction until 2014/15.
The mining industry also contributed significantly to bolstering
the Index of Industrial Production (IIP), which registered
an average growth of 2.6%
during the first 11 months of
the financial year. Mining has
a 14% weightage in the IIP.
Geonesis - Indian Mining and Exploration update, November Issue released !Geonesis Gemcokati
The government has enforced an ordinance to allow private companies to bid for 204 coal blocks cancelled by the Supreme Court. The prior owners of operational coal blocks can continue mining operations and participate in the upcoming auction. The government will appoint an authority to take control of mining land and operations to ensure continuity of coal production. Meanwhile, the National Green Tribunal has restricted the Centre and Odisha from granting new mining leases in Keonjhar district due to water pollution from mining activities. Posco India's chairman also reaffirmed that the company will not abandon its proposed 12 million tonne steel plant project in Odisha despite a 10-year delay in implementation.
The Prime Minister of Mongolia discussed Mongolia's economic outlook and challenges in an interview. He stated that Mongolia expects around 8% GDP growth in 2010 and over 10% growth for the next 5 years. Mongolia is a major exporter of coal and copper to China and aims to increase processing industries to create jobs. The main economic problem is managing mining wealth to reduce poverty levels and potential social tensions. The Prime Minister aims to channel wealth to combat poverty and is considering economic models of resource-rich nations like Canada, Chile and hybrid models.
Another Issue of Geonesis monthly newsletter with sensational exclusive news.
MINING: A COMPLETE OVERHAUL IS NEEDED
ILLEGAL MINING, POLI C Y REFORMS AMONG PRIORITIES
ONE MINISTRY FOR STEEL & MINES IS A RECIPE TO REDEEM BOTH
Policy Watch: India’s blighted vision about gold mining..
Policy Watch: A colonial outlook has stunted India’s gold-mining sector
India’s mining sector to witness reforms, flurry of activities in 2021
Goa’s iron ore mining stuck at a crossroad
Mining and Exploration: Socio-Economic Development
Govt looks to acquire forest land for mining in Korba
Commercial mining won’t unsettle us: Coal India chief
China's ban on Australian coking coal to benefit India's steel
producers, says India Ratings and Research
Financing commercial coal mining: Banks to look into
multiple factors
Why SBI is under the spotlight to reject a billion-dollar loan to Adani’s Australia mine
Deocha Pachami coal block will generate 1 lakh jobs:
Mamata Banerjee
No Bauxite mining in Visakhapatnam Agency, panel exploring other options
Government moots raising floor price for iron ore as steel prices shoot up
- The document summarizes news from the Business Council of Mongolia newsletter, including highlights on business, economic, and political news in Mongolia. Some of the business news included SouthGobi shares falling due to fears a deal with Chalco would be derailed, an investigation into Ivanhoe Mines sinking its stock price, and Draig Resources reporting its thickest coal seams yet at its Teeg license. Economic news included updates on roads development, food safety, and China looking to Mongolia for iron ore. Political news included progress on a foreign investment law and the election process.
The document summarizes business news from Mongolia. It discusses several topics:
- Transport firms halting coal exports from Tavan Tolgoi due to unpaid fees. Erdenes-TT seeking a $400-500 million government loan to repay debt and fund infrastructure projects.
- Rio Tinto inviting bankers to arrange $4 billion in project financing for the Oyu Tolgoi copper-gold mine.
- Exploration companies reporting positive drilling results at iron ore projects in Mongolia, confirming wide zones of mineralization.
- Other news items on mining, coal shipping, airline routes, and proposed industry consolidation.
- Bhavnagar is a district located in Gujarat with 11 talukas. Its major industries include diamond cutting and polishing, cement, chemicals, and shipbuilding.
- The economy is driven by investments in infrastructure, food processing, and its proximity to other industrial hubs. Small industries provide many jobs.
- Major investments have been in infrastructure, cement, chemicals, and food processing. Key industrial estates include Chitra and Vartej.
- The district has good road, rail, port and airport connectivity supporting its industries. Power supply and other infrastructure are well developed.
This document summarizes news from the Business Council of Mongolia newsletter. Key points include:
- The Prime Minister wants the Tavan Tolgoi coal deposit to remain fully state-owned rather than developed as a joint venture.
- China's CNNC will buy Canadian uranium explorer Khan Resources for $52.9 million, gaining access to deposits in Mongolia.
- SouthGobi Energy dropped 12% in its Hong Kong stock debut due to high valuation and poor market conditions.
- A Canadian consultancy said the Tavan Tolgoi deposit could support multiple mining operations to export coal to China, South Korea, and Japan.
The document discusses several topics related to mineral exploration and mining in India:
1) The Indian government is working to increase private sector participation in non-coal mineral exploration and is preparing policies to incentivize exploration.
2) Industry groups are calling for amendments to allow those with reconnaissance permits to directly obtain prospecting and mining licenses without needing to go through auctions.
3) The government is cracking down on states to complete exploration of 288 mineral blocks by the end of 2018 so that new auctions can begin in 2019 before current leases expire in 2020.
4) Options being considered for a new mineral policy include granting reconnaissance permit holders first right of refusal in auctions or bundling permits with
The Indian government plans to auction 19 coal mines this quarter after cancelling previous auctions twice due to poor response. The Coal Secretary says 6 mines have been identified for the steel sector and 13 for other industries like cement. The government is considering providing some relaxations to attract more bidders while maintaining transparency. Odisha has identified 4 iron ore and manganese blocks for its next auction. Poland is looking to partner with West Bengal to boost trade, particularly in mining technology, hardware and coking coal. The Bombay High Court has reserved its order on a PIL related to mining in Goa after hearing arguments from various parties.
The Indian government has further amended mineral auction rules to simplify the auction process and increase participation. Key changes include reducing the net worth requirement for bidders, allowing disposal of 25% of mining waste, and giving states flexibility to allocate blocks with less than 3 bidders. The steel ministry has suggested developing transport infrastructure, streamlining iron ore supply through long-term agreements, and creating special mining zones to ensure adequate iron ore availability for steel production, which is important to achieve India's steel production targets.
A transformation time for Indian tax system GST which was born out of patience & struggle; the uniformed tax system which is expected to roll out on 1st of July is a turning point in the Indian tax regime. The implementation of GST will bring lot more benefits at the consumer end. The main objective of GST is to eliminate excessive taxation. In the run-up to one of the biggest tax reforms in the country, the market is abuzz with new rules and guidelines about the Goods and Services Tax (GST).
Steel 360 Magazine June'17 Issue.
Mining sector — unburdening the legacy issues
To boost mineral exploration, GSI developing repository of
all geological data of country
Govt assures Coal India of 'full support', stresses learning
'new things'
Decade after scam, Odisha imposes penalty of ₹2056 cr
for illegal mining
Three years on, Goa's stalled mining sector still gathers rust
Boost to production and pvt investment as mining
reforms get green signal
Deep mining: Over 500 non-coal mineral blocks up for grabs
Prospects of Phosphorite in Jurassic Sequence of Jaisalmer
Basin, Western Rajasthan
How Long Will Coal Remain King in India?
India’s mining reforms ignore the livelihood and rehabilitation of
those affected by the industry
The document provides information about the coal allocation scam in India that occurred from 2004-2009. Some key points:
- The CAG accused the Indian government of inefficiently allocating coal blocks and providing "undue benefits" totaling over $1 trillion to private companies.
- Historically coal mining was nationalized but exemptions allowed private companies in power, steel and cement to obtain coal blocks. The allocation process lacked transparency and clear criteria.
- Several political figures and their associates faced allegations of influencing allocation of valuable coal blocks to certain private companies, causing significant losses to the public exchequer.
- The scandal grew substantially amid media coverage, opposition attacks and a court-ordered CBI investigation
OPEN SKY POLICY FOR EXPLORERS ...
OPEN SKY POLICY: MINES MIN TO ROPE IN PRIVATE FIRMS FOR EXPLORATION...
GOVERNMENT TARGETS AUC TIONS OF 120 GREENFIELD MINES THIS FISCAL...
NO MONETARY INCENTIV ES FOR MINERAL EXPLORATION...
VEDANTA HOPES TO RESUME MINING IN GOA AFTER RAINS...
MINING IN GOA MAY RE SUME IN OC TOBER: CM LAXMIKANT PARSEKAR...
PV T SEC TOR MAY BE ROPED IN ROCK PHOSPHATE MINING : RAJASTHAN...
MONNET ISPAT TO SURR ENDER ODISHA COAL BLOCK BAGGED IN AUCTION...
KIOC L, MECL SIGN MOU FOR JOINT EXPLORATI ON OF MINERAL ASSETS...
MINERS MAY NOT HAVE TO PAY 100% OF ROYALTY AS
FOUNDATION CONTRIBUTION...
RAJASTHAN TO GRANT L EASES FOR MINING OF BASE AND NOBLE METALS BY DECEMBER...
COAL MINISTRY SITTING ON A GOLD MINE, PLANS UNIFORM MODEL FOR COAL INDIA...
COAL INDIA TO GIVE UP THREE-FOURTHS OF MOZAMBIQUE MINE...
1. Govt looks to further amend MMDR Act
Coal ministry mulls scheme to allow coal block owners to
surrender mines.
Odisha Iron Ore Mine Block Auction Summary—Phase II
Unlocking Huge Potential of Mineral Exploration;
Odisha’s decision to auction virgin mines raises environmental concerns
‘Single window’ process for all environment clearances on anvil
A possible link basin between Bamer basin & Jaisalmar Basin
and minerals of economic importance - V.P. Laul
Field work experience in Guyana (South America) for
Gold – A travelogue - Dr. Vivek Laul
Workshop on Enhancing Mineral Exploration Through National
Mineral Exploration Trust (NMET)
Need for increase in mineral exploration activities in
eastern States, says Centre
Odisha to offer five more mines for auction
Coal auctions: Modi govt's policy push to private miners will cost Chhattisgarh Rs 900 crore a year
Odisha mining auction: 123 companies in race for 11 mineral blocks
Proposed amendments to Coal Bearing Areas Act will change
land acquisition for mining: Experts
JSW Steel seeks consent to surrender Gonua iron ore
mine in Odisha
MSMEs’ SOS to Odisha govt. over iron ore scarcity
NMDC, Ministry of Steel assists NINL to start iron ore mining
Atomic Minerals Directorate looks for lithium in
Karnataka, Rajasthan
Australian High Commissioner meets Chhattisgarh CM; holds
talks on mutual cooperation
Exercise due diligence in clearing mining leases, former
bureaucrat urges A.P. govt
Govt relaxes green norms for projects connecting mines
39 mining projects of Coal India face delays
Salient Features of India's Mineral (Auction) Rules, 2015Gouranga Sen
Following the successful initiation of auctioning coal blocks, the Central Government of India has framed the Mineral (Auction) Rules, 2015 for auctioning other minerals like iron ore, bauxite, limestone etc. The article shows the overview of the process and implications.
INDIA’S MINING INDUSTRY TURNING A CORNER....
After several years of contraction, the Indian mining industry
has turned the corner, marking a highlight of Prime Minister
Narendra Modi’s two years in office.
According to official data, the mining industry notched up
8.2% growth during the first eleven months of the 2015/16
financial year, which is now being touted as a considerable
achievement by the Modi government against the backdrop of
four consecutive years of contraction until 2014/15.
The mining industry also contributed significantly to bolstering
the Index of Industrial Production (IIP), which registered
an average growth of 2.6%
during the first 11 months of
the financial year. Mining has
a 14% weightage in the IIP.
Geonesis - Indian Mining and Exploration update, November Issue released !Geonesis Gemcokati
The government has enforced an ordinance to allow private companies to bid for 204 coal blocks cancelled by the Supreme Court. The prior owners of operational coal blocks can continue mining operations and participate in the upcoming auction. The government will appoint an authority to take control of mining land and operations to ensure continuity of coal production. Meanwhile, the National Green Tribunal has restricted the Centre and Odisha from granting new mining leases in Keonjhar district due to water pollution from mining activities. Posco India's chairman also reaffirmed that the company will not abandon its proposed 12 million tonne steel plant project in Odisha despite a 10-year delay in implementation.
The Prime Minister of Mongolia discussed Mongolia's economic outlook and challenges in an interview. He stated that Mongolia expects around 8% GDP growth in 2010 and over 10% growth for the next 5 years. Mongolia is a major exporter of coal and copper to China and aims to increase processing industries to create jobs. The main economic problem is managing mining wealth to reduce poverty levels and potential social tensions. The Prime Minister aims to channel wealth to combat poverty and is considering economic models of resource-rich nations like Canada, Chile and hybrid models.
Another Issue of Geonesis monthly newsletter with sensational exclusive news.
MINING: A COMPLETE OVERHAUL IS NEEDED
ILLEGAL MINING, POLI C Y REFORMS AMONG PRIORITIES
ONE MINISTRY FOR STEEL & MINES IS A RECIPE TO REDEEM BOTH
Policy Watch: India’s blighted vision about gold mining..
Policy Watch: A colonial outlook has stunted India’s gold-mining sector
India’s mining sector to witness reforms, flurry of activities in 2021
Goa’s iron ore mining stuck at a crossroad
Mining and Exploration: Socio-Economic Development
Govt looks to acquire forest land for mining in Korba
Commercial mining won’t unsettle us: Coal India chief
China's ban on Australian coking coal to benefit India's steel
producers, says India Ratings and Research
Financing commercial coal mining: Banks to look into
multiple factors
Why SBI is under the spotlight to reject a billion-dollar loan to Adani’s Australia mine
Deocha Pachami coal block will generate 1 lakh jobs:
Mamata Banerjee
No Bauxite mining in Visakhapatnam Agency, panel exploring other options
Government moots raising floor price for iron ore as steel prices shoot up
- The document summarizes news from the Business Council of Mongolia newsletter, including highlights on business, economic, and political news in Mongolia. Some of the business news included SouthGobi shares falling due to fears a deal with Chalco would be derailed, an investigation into Ivanhoe Mines sinking its stock price, and Draig Resources reporting its thickest coal seams yet at its Teeg license. Economic news included updates on roads development, food safety, and China looking to Mongolia for iron ore. Political news included progress on a foreign investment law and the election process.
The document summarizes business news from Mongolia. It discusses several topics:
- Transport firms halting coal exports from Tavan Tolgoi due to unpaid fees. Erdenes-TT seeking a $400-500 million government loan to repay debt and fund infrastructure projects.
- Rio Tinto inviting bankers to arrange $4 billion in project financing for the Oyu Tolgoi copper-gold mine.
- Exploration companies reporting positive drilling results at iron ore projects in Mongolia, confirming wide zones of mineralization.
- Other news items on mining, coal shipping, airline routes, and proposed industry consolidation.
- Bhavnagar is a district located in Gujarat with 11 talukas. Its major industries include diamond cutting and polishing, cement, chemicals, and shipbuilding.
- The economy is driven by investments in infrastructure, food processing, and its proximity to other industrial hubs. Small industries provide many jobs.
- Major investments have been in infrastructure, cement, chemicals, and food processing. Key industrial estates include Chitra and Vartej.
- The district has good road, rail, port and airport connectivity supporting its industries. Power supply and other infrastructure are well developed.
This document summarizes news from the Business Council of Mongolia newsletter. Key points include:
- The Prime Minister wants the Tavan Tolgoi coal deposit to remain fully state-owned rather than developed as a joint venture.
- China's CNNC will buy Canadian uranium explorer Khan Resources for $52.9 million, gaining access to deposits in Mongolia.
- SouthGobi Energy dropped 12% in its Hong Kong stock debut due to high valuation and poor market conditions.
- A Canadian consultancy said the Tavan Tolgoi deposit could support multiple mining operations to export coal to China, South Korea, and Japan.
The document discusses several topics related to mineral exploration and mining in India:
1) The Indian government is working to increase private sector participation in non-coal mineral exploration and is preparing policies to incentivize exploration.
2) Industry groups are calling for amendments to allow those with reconnaissance permits to directly obtain prospecting and mining licenses without needing to go through auctions.
3) The government is cracking down on states to complete exploration of 288 mineral blocks by the end of 2018 so that new auctions can begin in 2019 before current leases expire in 2020.
4) Options being considered for a new mineral policy include granting reconnaissance permit holders first right of refusal in auctions or bundling permits with
The Indian government plans to auction 19 coal mines this quarter after cancelling previous auctions twice due to poor response. The Coal Secretary says 6 mines have been identified for the steel sector and 13 for other industries like cement. The government is considering providing some relaxations to attract more bidders while maintaining transparency. Odisha has identified 4 iron ore and manganese blocks for its next auction. Poland is looking to partner with West Bengal to boost trade, particularly in mining technology, hardware and coking coal. The Bombay High Court has reserved its order on a PIL related to mining in Goa after hearing arguments from various parties.
The Indian government has further amended mineral auction rules to simplify the auction process and increase participation. Key changes include reducing the net worth requirement for bidders, allowing disposal of 25% of mining waste, and giving states flexibility to allocate blocks with less than 3 bidders. The steel ministry has suggested developing transport infrastructure, streamlining iron ore supply through long-term agreements, and creating special mining zones to ensure adequate iron ore availability for steel production, which is important to achieve India's steel production targets.
A transformation time for Indian tax system GST which was born out of patience & struggle; the uniformed tax system which is expected to roll out on 1st of July is a turning point in the Indian tax regime. The implementation of GST will bring lot more benefits at the consumer end. The main objective of GST is to eliminate excessive taxation. In the run-up to one of the biggest tax reforms in the country, the market is abuzz with new rules and guidelines about the Goods and Services Tax (GST).
Steel 360 Magazine June'17 Issue.
Mining sector — unburdening the legacy issues
To boost mineral exploration, GSI developing repository of
all geological data of country
Govt assures Coal India of 'full support', stresses learning
'new things'
Decade after scam, Odisha imposes penalty of ₹2056 cr
for illegal mining
Three years on, Goa's stalled mining sector still gathers rust
Boost to production and pvt investment as mining
reforms get green signal
Deep mining: Over 500 non-coal mineral blocks up for grabs
Prospects of Phosphorite in Jurassic Sequence of Jaisalmer
Basin, Western Rajasthan
How Long Will Coal Remain King in India?
India’s mining reforms ignore the livelihood and rehabilitation of
those affected by the industry
The document provides information about the coal allocation scam in India that occurred from 2004-2009. Some key points:
- The CAG accused the Indian government of inefficiently allocating coal blocks and providing "undue benefits" totaling over $1 trillion to private companies.
- Historically coal mining was nationalized but exemptions allowed private companies in power, steel and cement to obtain coal blocks. The allocation process lacked transparency and clear criteria.
- Several political figures and their associates faced allegations of influencing allocation of valuable coal blocks to certain private companies, causing significant losses to the public exchequer.
- The scandal grew substantially amid media coverage, opposition attacks and a court-ordered CBI investigation
OPEN SKY POLICY FOR EXPLORERS ...
OPEN SKY POLICY: MINES MIN TO ROPE IN PRIVATE FIRMS FOR EXPLORATION...
GOVERNMENT TARGETS AUC TIONS OF 120 GREENFIELD MINES THIS FISCAL...
NO MONETARY INCENTIV ES FOR MINERAL EXPLORATION...
VEDANTA HOPES TO RESUME MINING IN GOA AFTER RAINS...
MINING IN GOA MAY RE SUME IN OC TOBER: CM LAXMIKANT PARSEKAR...
PV T SEC TOR MAY BE ROPED IN ROCK PHOSPHATE MINING : RAJASTHAN...
MONNET ISPAT TO SURR ENDER ODISHA COAL BLOCK BAGGED IN AUCTION...
KIOC L, MECL SIGN MOU FOR JOINT EXPLORATI ON OF MINERAL ASSETS...
MINERS MAY NOT HAVE TO PAY 100% OF ROYALTY AS
FOUNDATION CONTRIBUTION...
RAJASTHAN TO GRANT L EASES FOR MINING OF BASE AND NOBLE METALS BY DECEMBER...
COAL MINISTRY SITTING ON A GOLD MINE, PLANS UNIFORM MODEL FOR COAL INDIA...
COAL INDIA TO GIVE UP THREE-FOURTHS OF MOZAMBIQUE MINE...
The document summarizes the key details of the Indian coal allocation scam that was uncovered in 2012. It discusses that the CAG accused the government of allocating coal blocks between 2004-2009 without a transparent and competitive bidding process, resulting in estimated losses of Rs. 1.86 lakh crore. It outlines the process of coal allocation to private and public firms, and lists some of the major beneficiaries of the scam, including Tata Group, Jindal Steel, and others estimated to have gained billions of rupees. The BJP strongly criticized the government and a CBI investigation was launched into the scandal.
The document summarizes the key issues in India's coal allocation scam from 2004-2009. It describes how coal deposits were historically allocated by the government to public and private firms, and the process the Coal Ministry used to screen applications and allocate blocks. The CAG draft report from 2012 alleged major irregularities and losses worth Rs. 1.06 trillion due to blocks being allocated without a transparent bidding process. This sparked significant political controversy, with investigations launched into various firms' allocations.
Mining reform: What the government got right…
Bolstering the ongoing mining reforms
India’s mining reforms juggernaut continues despite concerns
Did Ministry of Mines Disregard Critical Suggestions
on Mining Reforms?
One way to make Bharat, Atmanirbhar is be self reliant in
mineral resource by making Industry friendly policy---FIMI
Saltpetre & saline groundwater of Nagaur- Ganganagar area (Rajasthan) -New possible targets for potash salts and other evaporites - V.P. Laul
Role of private explorers in mineral exploration
to make India truly atmanirbhar – by Uday Pratap Singh
Govt plan to take over mine auctions faces
opposition from a few states
Coal India not to give a push to labour intensive
new mines: Chairman
Long-term impact of Budget on Metals & Mining sector –
A review of last two decades
'Discriminatory': Goa in Supreme Court on mining
leases renewal cancellation
Non-coal mining leases: Pace of auction slows in 2020-21
Workshop on ‘Enhancing Exploration through NMET’ organised
Mountain With 60-90% Gold Soil Discovered In Congo, Villagers Flock With Shovels
The document provides updates on mining and exploration in India. Key points include:
- The government eased rules to allow 60 mining companies to obtain mining leases by the January 11th deadline despite delays in approvals.
- Iron ore exports from India increased nine-fold to 9 million tonnes due to higher global prices and protectionist measures for the domestic steel industry.
- Cement production growth in India is forecast to slow to 4% in 2017 from earlier estimates of 4-6% due to the impact of demonetization on construction sectors and higher petcoke prices increasing costs.
- The Ministry of Mines took initiatives in 2016 such as using satellite imagery to curb illegal mining, instituting a star rating
The document discusses India's draft National Mineral Policy which proposes to offer mineral exploration companies the right of first refusal to mine any area they have explored. It also discusses upcoming expirations of mining leases in India and the risks to mineral production if new leases are not issued on time. Additionally, it provides updates on Vedanta Resources bagging bauxite mines in Odisha, their plans to expand aluminum production, and venturing into specialty glass manufacturing.
MINERAL-RICH,PRODUCTIVITY-POOR?
AN OVERVIEW OF INDIA’S MINING SECTOR
WHAT IS THE MINERAL LAWS (AMENDMENT) BILL, 2020?
DURING A LOCK DOWN, WHY IS THE MINING INDUSTRY CONSIDERED 'ESSENTIAL'?
POST AUCTION STRATEGIES IN MINERAL SECTOR
Amendment in mineral auction rules will encourage
more participation: Govt
Current round of commercial coal block auction got good
response: Coal secy
Govt may push more reforms in mining sector
'very shortly': Joshi
Steel ministry panel calls for exploration of
manganese ore reserves
Year-end Review-2021: Centre takes measures in mining sector to facilitate ease of doing business
Brazil's Vale sells coal assets to Jindal's Vulcan
Minerals for $270 mn
Centre gets bids for Neelachal Ispat, sale moves to
'concluding stage'
Bihar govt to allow exploration of mineral reserves
worth Rs 14,594 cr
Govt offering up to 50% discount to commercial
miners for coal gasification
2021 Review of Indian Mining Sector
4th Tranche of Auction for Commercial Mining of Coal – Technical Details (99 Coal Mines)
The Mines Ministry deadline of December 2018 for all states to complete exploration of 329 mineral blocks where mining leases are scheduled to expire on March 31, 2020, is largely going to be missed.
The document discusses the issue of iron ore mining in Goa, India being shut down by the Supreme Court and efforts by the government to restart mining. It is reported that the federal government is considering an ordinance to resume mining in Goa due to rising unemployment and pressure from upcoming elections. Sources say a group of ministers has been tasked with resolving the issue and is seeking legal opinion on promulgating an ordinance to circumvent the Supreme Court order banning mining. Restarting the 88 mines that were shut down is an urgent priority for the state government and its political partners.
PM DISCUSSES ECONOMIC REFORMS IN MINING SECTOR
MINERS SEEK MORATORIUM ON DUES AS LOCKDOWN CRIPPLES OPERATIONS
PROPOSED CHANGES IN MINING POLICY TO HIT STEEL COMPANIES WITH CAPTIVE LEASES
The document summarizes news from the Business Council of Mongolia newsletter. It reports that six groups have been shortlisted to develop the Tavan Tolgoi coal field, including ArcelorMittal, Vale, Peabody Energy, Xstrata, a Mitsui & Shenhua joint venture, and a Russia-Japan-Korea consortium. It also provides updates on exploration and drilling programs from several mining companies operating in Mongolia.
Similar to Indian Mining and Exploration - Newsletter Issue January 2015 (20)
The document summarizes recent developments in India's mining and steel industries. It discusses how Prime Minister Modi's "Make in India" initiative aims to boost domestic manufacturing but is facing challenges from surging steel imports from China. It also covers agreements signed by Canada's Canpotex potash producer to supply millions of tonnes of potash to India, and an impending civil nuclear agreement between India and Australia that would allow uranium exports.
Singareni Collieries, India's second largest coal producer, will open the country's largest underground mine next month with an annual capacity of 2.8 million tonnes. This will help Singareni exceed its coal production target for the current fiscal year and ensure sufficient supplies to power plants in South India. Allocating natural resources requires balancing economic growth with environmental and social concerns. While auctioning resources can increase transparency and revenues, proper exploration is needed beforehand and conditions must be established to prevent discrimination. The role of central and state governments in allocating resources also needs clarification to resolve ongoing debates.
"We specialize in the development of process-driven, conceptual models to identify and improve the understanding of your mineral targets.
The spearhead of our services is delivering core drilling service in prompt and efficient manner.
A world of experience, technical knowledge, and understanding. That’s what Geonesis brings to your project. Profitable mining demands an independent, experienced, long-term perspective that gives you real clarity.
Whether its advice on project feasibility, property acquisitions or disposals, financing, geotechnical stability, sustainability or mine closure, we have an extensive breadth of knowledge and depth of experience to ensure you get the right advice, where and when you need it most."
We specialize in the development of process-driven, conceptual models to identify and improve the understanding of your mineral targets.
The spearhead of our services is delivering core drilling service in prompt and efficient manner.
A world of experience, technical knowledge, and understanding. That’s what Geonesis brings to your project. Profitable mining demands an independent, experienced, long-term perspective that gives you real clarity.
Whether its advice on project feasibility, property acquisitions or disposals, financing, geotechnical stability, sustainability or mine closure, we have an extensive breadth of knowledge and depth of experience to ensure you get the right advice, where and when you need it most.
This document discusses where future mining opportunities may be located. It notes that exploration spending is now split evenly between greenfield (new) and brownfield (existing mine) sites, down from a previous focus on greenfield. High taxation, costs, and difficulties raising capital make Australia less competitive for mining investment. The quality of Australia's geoscience database is praised but challenges remain such as deeper, more remote deposits and workforce issues. The Northern Territory is highlighted as having competitive policies and rising exploration but more certainty is still needed to encourage investment. A national response is required to improve competitiveness through tax reform and other policies.
El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
An astonishing, first-of-its-kind, report by the NYT assessing damage in Ukraine. Even if the war ends tomorrow, in many places there will be nothing to go back to.
Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
Indian Mining and Exploration - Newsletter Issue January 2015
1. Geonesis
JANUARY 2015
(A GEMCO KATI INITIATIVE)
Indian Mining & Exploration Updates
VOLUME 2,ISSUE 2
Future of mineral industry...
2. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 1
MINING ORDINANCE SET TO CHANGE RULES OF THE GAME FOR MINING
SECTOR
BHUBANESHWAR: Developments during the past week has
kept the mining sector on its toes. If the "Mines and Minerals
(Development and regulation) (Amendment) Ordinance
2014", in the form in which it was examined by the Cabinet
on January 5, becomes law, it will change how and who gets
to mine in India.
While the Goa government is busy renewing mining leases it
was already committed to, in Odisha the government has
started the process of cancelling leases of some companies.
Both states, significantly dependent on mining for revenues,
are racing against time to beat the possible promulgation of
the ordinance introducing auction of minerals critical to steel,
aluminum and cement makers. There has been confusion
over whether the ordinance has been cleared by the cabinet.
While a number of papers, including ET, reported on January
6 that the cabinet had cleared the ordinance it has subse-
quently emerged that certain objections have been raised to
some of the amendments during the cabinet meeting. It is
currently being examined by the PMO, according to some
sources.
The ministry, pointing out that production
of the mineral sector had dropped from 218
mt at its peak in 2009-10 to 152 mt in 2013-
14, had argued for the urgency of an ordi-
nance. With no formal announcement on the
Cabinet's decision, there has been specula-
tion over the outcome of the last Monday
meeting.
To ease migration to the new regime and
with the larger economic interest in mind,
the ordinance gives a grace period of five
years to leases which are more than 50 years
old before they come up for bidding. The
grace period is 15 years in case of some captive mines.
Last Monday even as the Modi cabinet sat to discuss the or-
dinance, the Odisha government, headed by chief minister
Naveen Patnaik, announced it would auction all future leas-
es.
Since then it has moved to deny renewals on the basis of Sec-
tion 8(3) orders to 18 such mines, including one of Tata Steel,
Stemcore, Mesco and a couple belonging to the Rungta
group.
Section 8(3) of the MMDR Act allows the government to cer-
tify that the grant of a lease was in the interest of mineral
development. The Odisha government has now asked repre-
sentatives of these companies to explain why their mining
leases should not be cancelled. These companies will be pray-
ing for the ordinance to become law at the earliest as their
mining leases will be protected for some years.
Goa, which under former chief minister Manohar Parrikar had
agreed to allow families such as Salgaocars, Timblos and
Chowgules to continue mining leases granted to them as con-
cession during Portuguese rule, has been extending these leas-
es. Once the proposed ordinance becomes law, these mines will
be put up for auction at some stage.
50 YEAR LEASES
Under existing laws, after 30 years, leases were to be renewed
for another 20 years, then another 20 and so on. This more often
than not did not happen. A Supreme Court appointed panel,
has concluded that this moment of reckoning for leases became
an opportunity for blackmail and corruption. In many cases the
renewals never happened and companies continued mining
without forest and environment clearances.
In two separate judgements, the SC has clarified that only the
first renewal could be sought as matter of right. Guided by this
interpretation, first renewals have been done away with in the
ordinance, allowing existing leases to run for 50 years from the
date they were granted. Baldota Group's Ramgard Minerals
and Mining can now run its gold mine until 2058 for example.
SUBSEQUENT RENEWALS
After these court orders, mines waiting for second and subse-
quent renewals found these hard to come by. Unable to get
states to grant them fresh leases, some like Hindustan Copper
had moved court.
The PSU's Surda Copper mines linked to the Indian Copper
Complex in Jharkhand could now get a15-year extension if the
ordinance is promulgated.
ACC Cements has reportedly been granted fresh leases to lime-
stone mines in Chaibasa, Jharkhand, possibly for 20 more
years. It will, however, retain for 15 years its mines in Bargarh,
Odisha under the proposed ordinance.
Tata Steel similarly may retain until 2030 the under exploited
Khondbondh mine which the state government was reluctant
(Continued on page 2)...
3. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 2
to regrant. Odisha though has agreed to let it retain rights to
three other iron ore and its chrome mines in Sukinda. Tata Steel
did not respond to emailed questions.
PENDING APPLICATIONS
Unless they have a prior central government approval, under
Section 5 (1) of the MMDR, or a letter of intent from the state,
all pending applications will stand cancelled as per the ordi-
nance. So while Posco India stands to lose it prospecting lease
for Kandhadhar iron ore deposit, JSW and ArcelorMittal may
retain rights to areas in Jharkhand. As will Nalco to the Potangi
bauxite deposit it has spent years in waiting for.
This also gives Sesa Sterlite a chance to directly bid for the Kar-
lapat bauxite deposit that Odisha had sought for Orissa Mining
Corporation, essentially to supply ore to the company's Lanjigarh
aluminium refinery. ArcelorMittal did not respond to e-mailed
questions.
MINING BAN IN GOA, KARNATAKA LED TO LOSS OF 1 MN JOBS: STUDY
More so as recent judicial and regulatory developments in the
sector have further dried up new funding areas from banks, the
study said.
Limited geological and exploration expenditure, weak law en-
forcement, lack of coordinated approach in decision making, hu-
man resource and technological gaps, insufficient investments are
certain key challenges being faced by Indian mining industry, the
study pointed out.
A time-bound plan to closely monitor mining activities, introduc-
tion of a single-
window system to
centralise functions of
all ministries / agen-
cies to expedite ap-
proval processes, offer
transparent infor-
mation to boost inves-
tor confidence, ena-
bling local community
participation, initiate
training programmes
to develop skilled
manpower, adoption
of world-class technol-
ogy and equipment
with the latest emis-
sion norms are certain feasible solutions to the problems faced by
the industry, the study highlighted.
As per the Ministry of Mines, there are 321 applications for recon-
naissance permits, prospecting licenses and mining leases pend-
ing for decision at the Centre. The corresponding figure for vari-
ous State Governments stood at 63,395 on 5th May 2014. Evident-
ly, decision making processes need to be expedited and the most
viable solution is the introduction of Single window clearances
that could increase operational efficiency through reduced costs
and time involved.
India’s mining industry currently lacks the required workforce
comprising of engineers, diploma holders and skilled/semi-
skilled workers. This has been a major deterrent in enhancing
workforce strength and efficiency. There is therefore a pressing
need to divert investments towards expanding the human capital
pool to bolster the expected growth in future.
Ban on iron ore mining and exports in Karnataka and Goa led
to job losses to the tune of about 1 million, directly and indi-
rectly in recent years, a joint study conducted by Yes Bank and
the Associated Chambers of Commerce and Industry
(Assocham) said.
“After the global meltdown and export ban in Goa and Karna-
taka, a significant decline was registered in the production of
minerals. This had a major consequence on iron ore exports
that declined markedly from over 117 million tonnes (mt) in
2009-10 to about 14 mt in 2013-14 thereby
leading to massive job loss,” noted the study:
‘Mining: Building a Sustainable Develop-
ment Framework For Inclusive Growth’.
“Recent issues of illegal mining, together
with regulatory challenges, policy gridlocks,
inadequate supporting infrastructure and
others are significant hurdles in the growth
of India’s mining sector,” said D S Rawat,
secretary general of Assocham.
The Assocham-Yes Bank study has suggest-
ed that the government take progressive
policy initiatives like single window clear-
ances for greenfield and brownfield projects
to encourage private sector participation by
enhancing domestic availability of major raw
materials, improving financing avenues
across mineral value chain and initiating steps to promote sus-
tainable practices through larger community engagements and
responsible mining.
Rapid urbanisation, coupled with growth in manufacturing
sector would fuel up to 9-11 per cent annual growth in demand
for various metals and minerals which is further expected to
grow 4-5 times during the next decade, added the study.
“India’s mining sector is saddled with logistic inefficiencies,
economic, bureaucratic, environmental and a host of capacity
issues owing to a lack of co-ordination between various agen-
cies, besides, lack of central planning has resulted in procure-
ment delays,” Rawat said.
The Indian mining industry, which largely comprises small and
medium enterprises (SMEs) involved in surveying, exploration
and other mining activities, needs to evaluate and tap into
some innovative funding sources accessed by its global peers.
4. The proposed auction will not apply to those leases that have
already been issued grant orders and are awaiting execution of
lease deed by the state government provided all such lease deeds
are executed within the specified period.
Those mining leases awaiting approval of first renewal will also
be out of the purview of auction.
The Cabinet decision on auction will not be applicable to all the
existing leases of state-run miner Odisha Mining Corporation
and all other central and state public sector undertakings.
Also, the auction would not apply to such leases for which the
state government has already recommended prospecting license
(PL) or mining lease (ML) to the Government of India in pursu-
ance of an agreement or memorandum of understanding (MoU)
for allocation of PL/ML provided the applicant had substantially
fulfilled its obligations. The auction would invariably apply to all
other leases of major minerals awaiting second and subsequent
renewal along with determined and lapsed leases.
In order to encourage competition and to ensure a more broad
based and equitable distribution of mineral resources, the area of
ML allocated to a single non-captive entity would be limited to a
reasonable extent even below the ceiling of 1,000 hectares pre-
scribed in the MMDR Act. The exact ceiling would be decided
after the modalities are worked out by the committee. The Cabi-
net decision is expected to generate more revenue, create job
avenues, attract investments for large, medium and small miner-
al based industries and facilitate ancillary and downstream in-
dustries.
VOLUME 2, ISSUE 2 — JANUARY 2015
Page 3
The Odisha Cabinet on Monday decided to dispose off all ma-
jor mineral leases, captive and non-captive, except coal,
through auction. It could add Rs 10,000 crore annually to the
state exchequer. The policy would be applicable to mineral
leases awaiting second and subsequent renewals, including
the 18 iron ore and manganese mines that were awaiting ex-
press orders from the state government for reopeing after their
closure on the basis of the Supreme Court order in May last
year.
The court, in its interim order, held that operations of such
leases are illegal unless the state government passed express
orders under Section 8 (3) of the Mines and Minerals- Devel-
opment & Regulation Act (MMDR), 1957.
“The state Cabinet has taken a historic decision to auction all
mineral leases, both captive and non-captive, barring coal. The
auction will be made applicable to all leases awaiting second
and subsequent renewal,” said Parliamentary Affairs Minister
Bikram K Arukh after the Cabinet meeting.
The leasing of major minerals will be done through public
auction after obtaining leave of the Supreme Court by filing a
petition.
Chief secretary G C Pati said, “The modalities for the auction
will be worked out by a high-level committee to be chaired by
the development commissioner. The auction will not be appli-
cable to the eight iron ore and manganese mines for which the
state government has already passed express orders pending
renewal of their leases.”
MINES MIRED IN CONTROVERSY ARE THE MOST ATTRACTIVE
In the coming e-auctions of cancelled but operational coal
blocks, the ones with most controversy are likely to witness
the stiffest fight from bidders.
From the seven operational blocks allocated to the power sec-
tor, Gare Palma-IV/2 & IV/3 and Talabira-1 stand out as the
most attractive. Gare Palma in Chhattisgarh has the largest
amount of reserves; Talabira, in Odisha, boasts of ready infra-
structure and close proximity to evacuation facilities.
However, Gare Palma was earlier owned by Jindal Steel &
Power and Talabira was with Hindalco. Both companies are
being probed for irregularities in award of blocks.
"Legal cases against the promoters notwithstanding, these two
blocks are the best of all. We would see new players with min-
ing expertise contesting hard with the original owners,
who'd make the most of the second chance to get their lost
mines back," said a power sector expert.
Experts said new entrants such as Sterlite Energy, Essar, GVK
and Larsen & Toubro are the ones to watch. "These companies
have technical capabilities and ready infrastructure to put to use
the mined coal. They would compete hard for getting an opera-
tional block," said an industry executive.
Gare Palma is part of a cluster of four mines in Chhattisgarh
owned by JSPL which are under litigation. The charges against
JSPL are of criminal conspiracy, excess mining and selling to a
third party from the captive block. By the Supreme Court's di-
rective, JSPL would also pay the highest amount of penalty,
close to Rs 3,000 crore, for its four cancelled blocks
METAL STOCKS GAIN ON HOPES OF ORDINANCE ROUTE FOR MINES SECTOR
REFORMS
Metal shares firmed up on hopes that the government may
take the ordinance route to pave the way for auction of iron
ore and other minerals.
Following the ordinances to implement coal and insurance re-
forms, the Ministry of Mines is hoping that the government
(Continued on page 4)...
ODISHA TO AUCTION MINE LEASES EXCEPT COAL
5.
6. Page 4
VOLUME 2, ISSUE 2 — JANUARY 2015
would adopt the same for the mines sector which could offer a
much wider decentralisation of power to states for allocation
of resources.
Meanwhile, the Ministry of Mines has made some changes to
the draft amendent Bill which seeks to implement competitive
bidding through the auction route for iron ore and other min-
erals.
Sesa Sterlite was the top Sensex gainer up 4% after Kotak Secu-
rities upgraded the stock to 'buy' from 'reduce'earlier with a
target price of Rs 250.
Among other metal majors, Jindal Steel and Power, Hindalco,
Hindustan Zinc, JSW Steel, Hindalco, Tata Steel and Coal
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India were up 2.4-3.7% each.
COAL BLOCK AUCTION - GOVT INVITES BIDS FOR 24 MINES IN CHHATTISGARH,
MP, WB, MAHARASHTRA, AP, ODISHA
In the first tranche of coal block auction, government invited
bids for 24 mines, including 7 in Chhattisgarh.
According to the bid document avail-
able in public domain, besides 6
blocks are being offered in Madhya
Pradesh, three each in West Bengal,
Maharashtra and Jharkhand and one
each in Andhra Pradesh and Odisha.
The Union Cabinet on December 24th
had approved re-promulgation of the
coal ordinance and necessary guide-
lines for mine allocations.
Entire auction process will be trans-
parent, efficient and conducted
online, Coal and Power Minister Mr
Piyush Goyal had said while launch-
ing the portal for e-auction of 24 coal
mines.
An official statement said that “With this, the registration pro-
cess has been started and interested bidders with end use
plants could visit MSTC website for the purpose. The registra-
tion process will be as per KYC norms.”
Mr Goyal said that the auction process will comprise techno-
commercial bid for qualification and financial bid (e-auction) for
selection of successful bidder.
The statement said that “Only
50% of the qualified bidders
from technical stage (subject to
a minimum of 5 bidders) will
be allowed to participate in the
e-auction process.”
It said that mines set aside for
iron & steel, cement and CPPs
would be auctioned through
‘ascending forward auction’,
where qualified bidders would
quote incremental bids above
the pre- determined floor
price.
It added that “Mines to be allocated for power sector will be auc-
tioned through ‘descending reverse auction’ to minimise impact
on power tariffs of end use plants. Last date for receiving tech-
nical bids will be January 31st and list of qualified bidders will
be placed on February 12th.”
7. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 5
There have been proposals to split CIL into five separate compa-
nies, to improve efficiency. The previous government supported
the idea. However, Piyush Goyal, minister for coal, power and
renewable energy, has said he feels splitting is not a solution,
efficiency improvement is.
“Several options regarding the restructuring of Coal India were
discussed. It was agreed that no major restructuring was re-
quired, at least in the short term,” said the report.
In the new set of targets for the energy sector, the Narendra
Modi government wants CIL to raise its production to one bil-
lion tonnes by 2019. This would entail increasing the rate of an-
nual output growth to 18-20 per cent from the current seven-10
per cent. “In the subsequent two quarters, growth rates of 15 per
cent could be a big challenge. It would, therefore, be necessary
that specific action plans on various identified constraints be
made and monitored,” said the report.
For enhancing production, the report suggested hiring of
‘Mining Development Operation (MDO)’ agencies and re-
opening of abandoned underground mines. “The coal ministry
should give a target to each subsidiary to engage at least two
MDOs (10 million tonne annual output) each, within six
months.”
The committee has also asked for close monitoring of CIL targets
for 2014-15, on a fortnightly basis, and engaging an experienced
consultative agency to help monitor performance.
On availability, the report underlines the need for swapping of
coal, rationalisation of coal linkages and monitoring the sale of
surplus coal from captive mines. Among the other major sugges-
tions are improving coal evacuation facilities by forming a sepa-
rate CIL subsidiary for logistics services, including rail connec-
tivity. The report pushes the idea of private investment and joint
ventures by CIL and its subsidiaries in rail-linkage projects, to
reduce dependence on Indian Railways. It also mentions setting
up a dedicated common rail corridor for clusters of mines in coal
-rich areas.
(continued on page 6)...
PRABHU-LED PANEL BATS FOR MORE EMPOWERED PLAYERS IN COAL MINING
As the government prepares ground for overhaul of the coal
mining sector, the Suresh Prabhu-led ‘Advisory group for inte-
grated development of power, coal and renewable energy’ has
quashed the idea of restructuring Coal India Ltd (CIL), which at
present has a monopoly in the sector. In a report it gave the
government last month, the group has instead recommended
empowerment of the company’s subsidiaries.
“(The) subsidiaries may be given adequate delegation of power,
capital expenditure and operational flexibility, along with com-
mensurate accountability, so that their dependence on CIL for
decision making does not hamper fulfilment of targets set out
for them,” said the advisory group’s report, which Business
Standard has reviewed.
CHANGES WE NEED
Highlights of the advisory group’s sugges-
tions
For more coal
Improvement in parameters for performance of
CIL subsidiaries — CCL, MCL, SECL, ECL, WCL
Hiring of at least two mining development oper-
ators within six months
Close monitoring of CIL’s annual targets
Fast-tracking production from captive coal mines
For better availability
Separate CIL subsidiary for building evacuation,
including rail lines
Joint venture with private companies to build rail
links
Dedicated rail corridor for a mine cluster
Indian Railways, RITES, IDFC asked to give sug-
gestions
A word of caution on auctions
Reserve bid price vulnerable to controversies &
cartelisation
Power rate should be cost-reflective
8. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 6
The committee was headed by Suresh Prabhu, Union railways
minister who formerly was power minister in the Atal Bihari
Vajpayee government. The other members were R V Shahi
(former Power Secretary), as member-convenor, Pratyush Sinha
(former chief vigilance commissioner), Anil Baijal (former home
secretary), Anil Khandelwal (former chairman, Bank of Baroda),
K K Nohria (former chief executive officer of Crompton
Greaves), Partha Bhattacharya (former chairman of Coal India),
and Vallabh Bhansali (former CEO of ENAM).
After the Supreme Court cancelled 204 block allocations made
over two decades, the government in October promulgated
the Coal Ordinance (Special Provisions) Bill, 2014. Through
this, it will re-allocate the cancelled blocks and open the sector
for commercial mining by the private sector. For the upcom-
ing e-auction, the committee has issued a word of caution on
reserve bid prices, against cartelisation in tenders. The report
also emphasises getting a regulator for the sector.
NTPC SEEKS LION’S SHARE OF COAL MINES
In what could severely hamper plans of private sector power
project developers to get coal blocks of their own under the
new auction process, the country’s largest power producer
NTPC has proposed that the company be allotted 52 of the 130
coal blocks in the
schedule-I of the
coalmine ordinance.
Schedule-I mines in-
clude blocks that are
open to bidding by any
company that may or
may not have end use
plants in cement, pow-
er or steel sectors. Sub-
ject to government’s
approval, even a min-
ing company can bid
for these blocks for
own consumption or
sale in the open mar-
ket.
In a representation to
the power ministry,
NTPC said the 52
mines/blocks were identified on the basis of the locations of
company’s generating units. It would help the company pro-
duce an additional 210 million tonnes of coal per year by 2032
to feed 128gw of generation that it aims to reach by then.
In addition, the company has also requested the ministry to
reallocate five other blocks: Chatti-Bariatu, Chatti-Bariatu
(South), Kerendari, Dulanga and Taipalli, which had been
allotted to it earlier but were cancelled after the recent Su-
preme Court order.
If the company’s proposal is accepted, captive coalmines
would not be available for a large number of stranded power
projects in the private sector. The deallocation of 204 captive
coal blocks has affected 24,000 mw power projects. In addi-
tion, about 20,000-30,000 mw power projects of companies
such as Jindal Steel and Power, Adani,
Tata Power are stranded due to lack of any fuel linkage. These
project developers could be potential bidders in the auction pro-
cess.
“We have asked the power ministry for allotment of additional
mines to reduce
dependence on
coal imports and
make our power
plants competi-
tive by offering
cheaper tariff to
consumers,” said
an NTPC official
asking not to be
named.
NTPC aims to
become a 128gw
generation capaci-
ty company by
2032. To be able to
achieve this tar-
get, it will need to
produce an addi-
tional 210 million
tonnes of coal a year by then. The company would require 360
million tonnes a year for its power plants in 2032.
At present, NTPC needs about 160 million tonnes of coal to run
its 35,000 mw coal-based capacity. About 17 million tonnes of
this is imported at prices almost two-and-a-half times the aver-
age coal price of Rs 1,300 per tonne offered by CIL. As the com-
pany’s coal-based capacity is expected to rise to 52,000 mw by
2017, production from captive blocks is important to maintain a
competitive edge in the market.
The government has already started auctioning the deallocated
coal blocks by putting up 24 mines in the first tranche. It plans to
auction/allot 101 coal blocks before the end of this financial
year. Sources said the NTPC proposal could be considered in the
next financial year depending on the response the government
gets in the first phase of auction.
9. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 7
TATA STEEL RESTARTS KEY IRON MINES AMID SHORTAGE
Tata Steel Ltd resumed production from two of its four iron ore
mines on Tuesday, a company source and a government official
said, cutting a shortage that had forced the company to import
the raw material for the first time
Court restrictions over the past three years to curb illegal min-
ing have stifled iron ore output in India, which used to be the
world's third largest supplier. As a result, Tata Steel and JSW
Steel are turning to imports even as international prices lan-
guish
Tata Steel reopened the iron ore
mines in Odisha after a court di-
rected the local government to let
the company operate them until a
hearing on January 28, Odisha's
mines director, Deepak Kumar
Mohanty, told Reuters on
Wednesday. A company source,
who did not want to be named,
also confirmed the reopening.
Shares in Tata Steel were up 3
percent at Rs 401.65 in afternoon
trade on Wednesday. The stock has fallen about 20 percent in
the past three months, compared with a 0.38 percent gain in the
wider market.
The company was asked to stop production from the two mines
last month pending the renewal of their leases. One other mine
in Odisha is shut since May and the state was considering a re-
quest to let that open as well, Mohanty said.
Tata Steel produces about 10 million tonnes from the mines in
Odisha state.
The company is also close to reopening its top mine Noamundi
in neighbouring Jharkhand state. The mine, which has a capacity
of 10 million tonnes a year, stopped operations in September
pending the renewal of its lease.
Mumbai-based Tata Steel needs
more than 20 million tonnes of un-
processed iron ore per year to run
its 10-million-tonnes-a-year steel
plant in Jamshedpur. Most of its
steelmaking capacity of 29 million
tonnes is in Europe.
The mine closures have forced Tata
Steel to resort to iron ore imports
for the first time in its 107 years. It
has bought 3 million tonnes this
fiscal year that began in March,
mostly from overseas and from India's top producer NMDC .
But iron ore transportation costs are a concern for the company
as most steel plants are located away from the coasts.
MMDR ORDINANCE A BLOW FOR GOAN MINERS
The Mines and Minerals Development and Regulation Amend-
ment Ordinance 2014 is set to prove a big hurdle for 31 iron
ore mining companies in Goa. These entities had signed a min-
ing pact with the government
of Goa under which the lease
was allocated for 20 years. But,
the Ordinance restricts them
to mine for five years. Allk the
companies are reportedly big
ones.
The ordinance allows a 15-year
lease for captive users and the
mining industry has urged this
period for all miners. “Also,
the right of first refusal should
be given to existing lessees at
the time of auction of the leas-
es,” said R K Sharma, secretary
-general, Federation of Indian
Mineral Industries. Companies will have to vacate the mining
area after completion of their respective lease periods and apply
afresh. The ordinance also paves way for new mining auctions,
which may be allocated on lease for up to 50 years.
An independent iron ore mining and exporting company, with a
two million tonne annual shipment volume, said of the lease
periods specified: “This is too short a period for independent
iron ore miners and export-
ers. There is almost negligi-
ble captive iron ore use in
Goa. Hence, all mineral allo-
cations will go to new play-
ers or the existing miners
will have to set up steel mills
just for mineral allocation.”
Goa had 90 million tonnes of
annual output till recently.
Mining was suspended in
September 2012 on recom-
mendations from the Su-
preme Court-appointed M B
Shah commission. While the
state is rich in natural re-
sources, it lacks processing units and steel mills. Hence, all min-
erals were transported for processing to other states or exported,
to China, before suspension of mining.
(Continued on page 8)...
10. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 8
holding of the same mine which they may or may not get allo-
cated. The Ordinance also paves way for new mining auctions
which may be allocated to lease holders for upto 50 years. Re-
newals of these mines, however, could be for a period between
20 and 30 years. Under the renewals, however, over 60 iron ore
mines that were operational before suspension in September
2012, would be impacted.
An independent iron ore miner and exporter with over two mil-
lion tonnes of annual shipment volume, said, "This is too short a
period for independent iron ore miners and exporters. There is
almost negligible captive iron ore user in Goa. Hence, all mineral
allocations will go to the new players or the existing miners will
have to set up steel mills just for mineral allocation."
The Ordinance also empowers states to handle illegal mining
through all possible channels.
The mining industry, however, has urged the government to
make moratorium period of 15 years for both captive and non-
captive miners.
"From the various recent pronouncements, it is clear that the
government has decided the auction of mineral concessions is
the only route to be adopted. Taking this as a fait accompli, we
suggest that the period of moratorium should be uniform 15
years for captive and non-captive mines since investment in
upgradation of mining technology and development of mines
being same and is a continuing process, whether they are cap-
tive or non-captive. Also, the right of first refusal should be
given to existing lessees at the time of auction of the mining
leases," said R K Sharma, Secretary General, Federation of
Indian Mineral Industries (FIMI)
These miners will have to vacate the mining area after comple-
tion of their respective periods and apply afresh for lease
COAL BLOCK REALLOTMENT HITS BENGAL-EMTA WALL
The Centre, anxious to conclude the process of reallocation of
captive coal mines, is facing a hurdle in the form of refusal of
the West Bengal government and a private miner having joint
ventures with three state governments to pay the penalty im-
posed by the Supreme Court in lieu of the coal already mined
from the cancelled blocks.
If West Bengal and the private miner — Eastern Minerals and
Trading Agency (EMTA) — carry out their threat, the Centre
would end up collecting over R4,400 crore less than the esti-
mated R10,494 crore as penalty. Of course, it is doubtful
whether West Bengal and EMTA’s stance would stand the
scrutiny of judicial review, although resorting to such a reme-
dy could potentially delay the reallocation process.
The SC ruling read with the ordinance promulgated by the
Centre provide for the penalty to be paid by the third party
(like EMTA) as the prior allottee, in case the mining lease is
executed by it, subsequent to the allocation of Schedule
1 (producing) mines.
EMTA has been engaged in mining from the coal blocks allot-
ted to the West Bengal, Punjab and Karnataka governments
with a majority stake of 74% in the respective joint ventures.
These state governments — each with a 26% stake in their
respective ventures — will pay penalty corresponding to their
stakes, as per the Coal Mines (Special Provision) Ordinance.
Interestingly, EMTA and West Bengal are refusing to pay the
penalties, while the Punjab and Karnataka state governments
have already paid their dues.
After the apex court’s order on cancellation of 204 blocks, it
was estimated that West Bengal, Punjab and Karnataka (along
with the third party) would pay
R1,567 crore, R1,533 crore and R449 crore, respectively, in lieu
of coal already mined.
EMTA has so far refused to pay over R2,600 crore as its share
of penalty.
A coal ministry official told FE that EMTA being a private min-
er, it is not eligible to participate in the upcoming e-auction,
which is restricted to end-use entities. As for payment of fine,
the Supreme Court may have to deal with the matter, he added.
So far, the government has mopped up over Rs 6,000 crore as
levy from companies for coal extracted.
On its part, the West Bengal government has refused to pay any
fine and has argued that EMTA, which was the mining partner
of the state with a 74% stake in the mining JV, should pay the
entire amount on account of its majority holding. As for West
Bengal’s eligibility for allotment of coal blocks, the coal ministry
official couldn’t confirm whether the delay in payment has al-
ready made the state ineligible for allotment of coal blocks. “A
right decision will be take at the time when we allot blocks to
public sector entities,” he added.
Apart from EMTA and West Bengal, the state-run Damodar
Valley Corporation is also yet to pay an estimated fine of Rs 220
crore.
It not clear whether EMTA can continue to work as a mine de-
veloper and operator with the states without paying the levy,
but a coal ministry official said the allottees will be provided
with a model document to select a mining development operator
through a transparent bidding process and not through an arbi-
trary selection process that existed earlier.
As per the Supreme Court order, the companies had to pay the
penalty for coal extracted till October by December 31 to be eligi-
ble to participate in the auctions. For operational mines, which
have been allowed to operate till March 31, the order had de-
creed that the penalty for excess coal mined till March 31, 2015,
will have to be paid by June 30.
The lower fines for the states (with the third party paying higher
amounts) has brought good news for consumers as the states
can now absorb the penalty hit without any significant hike in
power tariff.
11. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 9
NMDC TO INCREASE PRODUCTION, EXPLORE MINING
The National Mineral Development Corporation (NMDC) aims
to increase its production by 70 percent within the next 10 years
and has received approval from the central government to ex-
plore mining in India.
The NMDC will work in association with the Ge-
ological Survey of India (GSI) and Navayuga En-
gineering Co Ltd (NECL).
"We had approached the government for explora-
tion at free of charges. The NMDC has plans to
start an extensive exploration process now,"
NMDC chairman and managing director Naren-
dra Kothari said on the sidelines of a programme
here Wednesday.
The NMDC has recently bought a sizeable stake
in an Australian mineral exploration company
and is expected to use it for both domestic and global opera-
tions.
India has 12 percent of the global reserve of coal, but only 18
percent of the Indian mainland has been explored so far.
"The per capita mineral consumption in India is the lowest
among BRIC countries," Kothari said.
Stating that minerals are the backbone of the
economy, Kothari highlighted the need for ex-
tensive development of infrastructure and re-
search and development temperament and facili-
ties.
Commenting about the target and the volume of
business, Kothari said; "By 2019, we will be
reaching 60 million tonnes and by 2025 we
would touch 100 million tonnes."
The NMDC is also coming up with a steel plant
in Bastar in Chhattisgarh by 2016 and is invest-
ing Rs.16,000 crores for the project.
As production increases on the domestic front, the state owned
company is also planning to increase its exports from about 6
percent to 10 percent in the next two years.
NMDC TO START TRIAL PRODUCTION OF PELLETS AT KARNATAKA PLANT IN
MARCH
Public sector mining company NMDC Limited is all set to start
trial production at its new pellet plant at Donimalai in Bellary
district of Karnataka by March this year.
As part of its value addition and diversification plans, NMDC
has set up a 1.2 million tonne per annum pellet plant at an in-
vestment of close to Rs 600 crore at Donimalai.
The company has also signed an Operation and Mainte-
nance (O&M) contract with another public sector compa-
ny KIOCLLimited, which has a considerable experience in
operating pellet plants. Both the companies under the min-
istries of steel signed an agreement for O&M contract last
week.
"We have started deploying our engineers at Donimalai to
take over the operation of the pellet plant. We will com-
mence trial production in March this year and the full com-
mercial production would begin in the next fiscal," KIOCL
sources toldBusiness Standard.
Pellet is a value-added form of low-grade iron ore and is used
as a raw material in making steel. NMDC will produce blast
furnace-grade pellets with 65% iron content in sizes between six
and 16 mm.
Steel plants across the country have been using pellet as raw
material due to shortage of raw material.
For KIOCL, which has operated its pellet plant for nearly four
decades, it would be a new business opportunity. The company
had to shut down its iron ore mine in Chikkamagaluru district
following the Supreme Court order in 2005. It recently it set up
a new O&M vertical.
"The contract will facilitate KIOCL to gainfully utilise its experi-
enced manpower for operating the NMDC plants for mutual
benefit of both the Central PSUs," Malay Chatterjee, Chairman
and Managing Director of KIOCL said.
Besides operating the pellet plant, KIOCL will also manage the
iron ore beneficiation plant of
NMDC, which is also being
commissioned this year at Doni-
malai.
NMDC, which was till now
exporting and selling its low-
grade ore, will feed it to the
beneficiation plant and enrich it
for use in its pellet plant.
Apart from Karnataka, NMDC
is also setting up a 2 million tonne per annum pellet plant at
Bacheli in Chhattisgarh.
Currently, an estimated 60 million tonne per annum pellets are
produced in the country and hardly any material is exported.
The government has levied a 5% export duty on iron ore pellets,
which has discouraged many private sector players. Howev-
er, KIOCL exports pellets from its Mangaluru plant to Iran.
NMDC is also setting up a 3 MTPA Steel Plant at Nagarnar in
Chhattisgarh, for which most of the major packages have been
finalized and awarded.
It is presently producing about 30 million tonne of iron ore from
its Bailadila sector mines in Chhattisgarh and Donimalai sector
mines in Karnataka.
12. VOLUME 2, ISSUE 2 — JANUARY 2015
Page 10
other companies, including Managing Directors of Balaji Mines
Minerals (January 22), Shantilal Kushaldas & Bro Pvt Ltd
(January 23), Tungbhandra Minerals Pvt Ltd (January 28) and
Salitho Ores Pvt Ltd (January 27), the official said.
These names are on a list of firms which were issued notices by
ED in connection with possible money laundering linked to al-
leged illegal mining in the coastal state.
ED had earlier questioned Radha Timblo, former Director of
Timblo Pvt Ltd. Timblo's name had figured in the first list of
"black money holders" submitted by CBI to the Supreme Court
late last year.
Enforcement Directorate (ED) has summoned Goa mining
magnet Anil Salgaocar to appear before it on January 21 and
some other company chiefs in connection with its investiga-
tion into the money laundering aspect of the mining scam.
The central agency is probing 16 companies, including Sal-
gaoncar Mining Industries, for allegedly carrying out illegal
mining and their suspected involvement in money launder-
ing. A senior ED official today said Salgaoncar has been asked
to be present before investigating authorities here on January
21.
The Directorate has also summoned representatives of some
ED SUMMONS GOA'S MINING BARON ANIL SALGAOCAR ON JANUARY 21
GOVERNMENT OPENS A NEW CHAPTER IN COAL SECTOR; PROCESS OF
E-AUCTION GETS UNDERWAY
To usher in the much awaited reforms in the coal sector, soon
after the Supreme Court judgment, the government swiftly
promulgated the Coal Mines (Special Provisions) Ordinance
2014 for the management and reallocation of all the cancelled
coal blocks through a transparent process . The Government
took this as an opportunity to rationalize coal sector for mining
operations, consumption and sale. The need of the ordinance
was felt to overcome the acute shortage of coal in core sectors
such as steel, cement and power utilities, which are vital for the
development of the nation. In order to implement the provi-
sions of the ordinance, rules were also notified so that efficient
utilization of coal assets of the country in the national interest
could be ensured. It led to a sense of certainty to the business
environment and enhances credibility of the process.
In order to replace the Ordinance, the government introduced
the Coal Mines (Special Provisions) Bill 2014 in the winter ses-
sion of Parliament and got the
approval of the Lok Sabha .
The Bill envisages allocation of
coal mines and vesting of the
right, title and interest in and
over the land and mine infra-
structure, together with mining
leases, to successful bidders
and allottees through a trans-
parent bidding process thereby
eliminating discretion. The
allocation of coal blocks would
now be made in pursuance of
the provisions of Ordinance
and Rules made there under in
a time bound manner to ensure that there is no disruption in
supply of coal. To ensure transparency the entire auction pro-
cess has been brought in the public domain. For the power sec-
tor, the methodology for e-auction of coal blocks will be com-
pletely transparent , encourages greater competition and
efficiency and optimizes power tariffs. On 24th December ,2014,
the government re-promulgated the Coal Mines (Special Provi-
sions) Ordinance 2014 to pave the way for the auction process for
24 coal mines , which began on 25th December.
The focus of the Government is to increase coal production to the
maximum extent possible by facilitating Environment & Forest
clearances expeditiously, pursuing with State Government for
assistance in land acquisition and coordinated efforts with Rail-
ways for movement of coal.
Coal India Limited (CIL) has been asked to ensure adequate sup-
ply of coal, accordingly it has committed to a target of 1 billion
tonnes of coal production by 2019, from the current levels of 500
million tonnes. As for enhancing from existing mines a whole
host of efficiency and productivity improvement initiatives, tech-
nological up gradation and better evacuation are being executed
in a mission mode. In an effort to expe-
dite laying out of three critical railway
lines for coal transport in Jharkhand,
Odisha and Chhattisgarh, both Minis-
tries of Coal and Railways are working
in tandem and monitoring the projects
frequently. In addition the Coal India
has decided to purchase 250 additional
rakes worth Rs 5000 crore to evacuate
greater quantities of coal primarily to
power plants expeditiously. The pro-
cess of rationalization of coal linkages
was also to bring in efficiency and link
power plants to nearest coal mines. A
policy was also announced to allow
automatic transfer of old and inefficient
plants (more than 25 years old) to new super critical plants with a
view to maximize power generation from minimum usage of
coal. In order to resolve the disputes regarding quality of coal
supplied to the power plants, CIL has agreed to provide an op-
tion to test at third party laboratories with test data being
(Continued on page 11)...
13. Page 11
VOLUME 2, ISSUE 2 — JANUARY 2015
collected at unloading points. In order to clamp down coal pil-
ferage, the government has proposed to establish a national coal
dispatching centre and RFID tag for all coal movements.
The Central Mine Planning & Design Institute Limited
(CMPDIL) which does the detailed exploration for CIL has
signed an MoU with Mineral Exploration Corporation to en-
hance exploration capacity. Exploration in some blocks is also
envisaged with the help of out sourcing agencies.
Some of the major initiatives of the Ministry of Coal are:
Coal Bill & Rules :
The government promulgated Coal Mines (Special Provisions)
Ordinance 2014 in October to facilitate auctioning or allotment
on of 204 coal blocks following the Supreme Court judgement.
The Ordinance details the process the central government will
follow in taking over the mines that had been allocated to pri-
vately-owned and public sector power, steel and cement compa-
nies between 1993 and 2010. It lays the provisions for public auc-
tion of the mines by way of competitive bidding thereby elimi-
nating discretion. The ordinance provides that all the firms that
had their coal blocks cancelled by the Supreme Court, barring
those convicted for offences related to the allotment of mines,
can bid in the e-auction after paying an additional levy. Firms
running specified end-use plants like steel, cement and power,
including the ones having coal linkages also qualify for the e -
auction. A nominated authority will ensure the transfer of rights,
interests and titles of these blocks and the auction money will
accrue to it. A central government appointed officer not below
the rank of Joint Secretary will be the nominated authority. In
order to implement the provisions of the ordinance, Rules for
auction or allotment of 204 Coal Blocks cancelled by the Su-
preme Court were notified after receiving comments from all
stakeholders. The entire revenue from auction of mines will go
to coal bearing states which are predominantly in the eastern
parts of the country . This will help generate revenue for devel-
opment of states like Jharkhand, Odisha, West Bengal and Chat-
tisgarh as per stated objectives of the government.
Coal Production:
The annual target of the coal production for the year 2014-15 has
been enhanced to 630.25 Mte. The production of raw coal in the
country during the first half (April-September) of 2014-15 was
264.3 Mte compared to 246.4 Mte during the corresponding peri-
od of previous year. The overall growth in Coal production dur-
ing April-September 2014 was 7.3 %.
The Production from CIL grew at 5.1% during April-September
of 2014-15 to reach 210.7 Mte. This was 95.7% of the target set
out of CIL for this period.
Rationalization of Coal Linkages:
To address the issues of dispute between coal companies and
power utilities/developers and to bring about improvement in
the quality of coal supply, the system of Third Party Sampling
was further improved. Now, in addition to the Agency engaged
by CIL a panel of reputed third party sampler has been jointly
drawn up by a Committee consisting of representatives from
power utilities and CEA with the concurrence of CIL and noti-
fied by CIL. Power utilities/developers will select and appoint
the third party sampler from this panel. However, for billing
purposes, sampling and analysis shall be done at the loading end
by the agency. Payment for sampling shall be made by the pow-
er utilities/developers. 25 Agencies have been empanelled for
Third Party Sampling. Power utilities like NTPC and others are
in the process of selecting the third party agencies through ten-
dering process.
Coal Washeries:
It has been decided that coal companies will ensure 100% supply
of (-)100 mm size crushed coal to the power sector by strengthen-
ing the existing infrastructure for crushing coal and also through
deploying mobile crushers through outsourcing. It has also been
decided that coal companies would ensure supply of less than
34% ash coal (on quarterly average basis) to the power sector
covering the thermal power plants located at 750kms away from
pitheads and that located at 500 kms away from pitheads w.e.f
1st Jan ,2015 and 5th June ,2016 respectively through implemen-
tation of new washeries also through rationalization of linkages
and utilizing washery capacities available in the private sector in
consultation with consumers in a transparent manner.
Policy on transfer of linkage in case of scrapping of old units by
replacing them with new plants:
Based on the recommendations of the Standing Linkage Com-
mittee (Long-Term) for Power, new plants will come up in a
staggered way by the end of the 13th plan and may also spill
over to the 14th plan, After implementation of this policy, it shall
be possible to scrap old inefficient plants and replace them with
modern efficient plants with super critical technology, having
assured coal linkage. It would lead to more optimal use of coal.
Grant of the similarly placed power plants expected to be com-
missioned by March2015 requiring tapering linkage:
Six projects which were expected to be commissioned by March,
2015 were categorized under the similarly place power plants.
These six projects are in the states of Punjab, Maharashtra,
Madhya Pradesh and Odisha.
Study Group for Royalty constituted:
Royalty on minerals including coal is payable under the Mines
and Mineral (Development and Regulation) Act, 1957 by the
holder of a mining lease. A Study Group has been constituted to
consider revision of rates of royalty on coal under the Chairman-
ship of Additional Secretary MOC and representatives from
Ministry of Power, Mines, ClL, FlCCl, FlMMl and CMPDlL as
member. The Study Group will give its report within six months.
14. DISCLAIMER: This is a compilation of various news appeared in different sources. In this issue we have tried
to do an honest compilation. This edition is exclusively for information purpose and not for any commercial use.
Your suggestions are most valuable.
Your suggestions and feedback is awaited at :-
editor@geonesis.org
Tata Steel will deposit rupees 302 crores in a day or two with the
state government. According to the agreement
the steel companywill deposit 3600 crores in
instalments with the state on account of iron ore
mining.
Political advisor to the chief Minister, Ajay Ku-
mar said that the lease had expired in 2011 and
mining was continuing in anticipation of further
renewal of lease. But in the meantime due to an
order of3rd September 2014 by the Supreme
Court, mining had to be withdrawn.
Due to the closer of mines, thousands of families were affected
and because of sincere intervention of Chief Minister Raghubar
Das the officials came out with a solution.
The state government in an important resolution today ap-
proved the lease renewal of Noamundi iron ore mines
to Tata Steel.
Raghubar Das after taking oath as the chief Minister
took the lease matter of Noamundi mines with great
concern as directly or indirectly seventy five thousand
families were affected due to the closer of mines.
He ordered immediate action in the matter and called
for the chief secretary finance and mining secretaries
along with the government solicitor and Tata Steel
officials to finalise the matter in forty eight hours.
After two days of meetings and discussions the state govern-
ment gave approval for the renewal of Noamundi iron ore
mines in favour of Tata Steel.
TATA STEEL GETS LEASE APPROVAL FOR NOAMUNDI MINES
Page 12
VOLUME 2, ISSUE 2 — JANUARY 2015
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Wishing all our readers a very
HAPPY NEW YEAR 2015