China renews trade links: Bellary Black Gold fields starts booming again
By Shivakumar G Malagi
Bellary, Dec 12: With the major buyer of brand-Bellary iron ore-China renewing its trade links with India and governments move to cut export duty on ore as part of its economic stimulus package, iron ore mining industry in this ore-rich region is all set to pick up after spending a 'three-dry months' since September.
Post-September, scores of people depended directly or indirectly on mining related activities were hit worst when the mining activities and transportation of iron ore came to a standstill with the effect of global economic meltdown coupled with China's decision to stop importing ore from India.
Mass layoffs in 60-odd mining firms, seizure of trucks and earth movers by the banks, closure of service and new age business firms and ports lying idle on eastern and western coasts have started unfolding the tragic trail of Bellary mining mania.
Much to the relief of Bellary-economy, the reports from "China Industry Research and Investment Analysis: Iron Ore Mining Industry, 2008" stated that by 2010, China's import of iron ores will increase from 275 million tons in 2005 to 540 million tons. Besides, its dependence on imported iron ores will also be raised from 52.5 percent to 62.9 percent in the same period.
With China's ongoing construction of infrastructures such as power stations, ports, highways, and railways, insiders in ore export business says the China needs more iron ores in the coming three-four years, in turn, Bellary miners, produce 40 million tonnes per year are much sure to get supply orders again from China.
Close on the heels of the governments' decision to cut export duty on iron ore to 0% on fines and 5% on lumps in December first week, the price of ore at international market has increased $ 5-6 further from $ 60, which remained same for almost three months.
Rahul Baldota, president of Federation of Indian Mineral Industries says that in good times of the industry, before September, ore prices stood around $ 125-130 and then, dollar was hovering between Rs 40-42. With the recent dollar appreciation that is around Rs 50, the mining industry at present is not a business under loss for those who have direct trade links with China as prices reached up to $65-70.
"We can not see the peak prices again at international market, but things will improve further with China renewing its interest in placing orders. However, by this fiscal year end, ore export will come down by 25-30 per cent compared with the previous year due to last three dry months", remarks Rahul Baldota.
To confirm the restart of `shut-down' mining industry, the transporting of ore through railways to the ports has gradually increased from six rakes per day in October to 16 rakes in current month and local banks started receiving cheques from international buyers.
Friday, December 12, 2008
Govt gives `rosy picture' on Bellary Steel-Hub
Govt gives `rosy picture' on Bellary Steel-Hub
By Shivakumar G Malagi
Bellary, Dec 12: Going by the hard realities, particularly the severe shortage of water and non-agricultural land, plan of the BJP-led government to develop this iron ore rich region as a major hub of steel industry appears `rosy'.
The proposed project is expected to be permitted in the jurisdiction of the newly created Vijayanagar Area Development Authority (VADA) covering Bellary, Hospet and Sandur mining belt. Besides, the government braced up to promoting several iron ore value addition industries, including townships under the new mining policy unveiled recently.
The government wants the proposed Bellary Steel Hub to come up on the lines of Hazira Township in Gujarat in order to boast steel mills capable to produce at least 20 million tones per annum (mtpa) banking on the abundant availability of iron ore. Already, the regions' total steel production is hovering around 9 mtpa with the operation of steel major JSW Steels and nearly, 50 sponge and pig iron mills.
The governments plan to go ahead with steel hub project, in all probabilities sure to confront with farmers while providing water to industrialists as estimated 20 mtpa Steel Hub requires the minimum 7- tmcft water.
The Tungabhadra reservoir is the only major source of water in region. With the entire available in the reservoir committed for agriculture, there has been no special allocation for industrial use in Tungabhadra inter-state (Karnataka:138.990 tmcft and Andhra:73.010 tmcft) project.
However, the government has allocated 7.617 tmcft of water to about nine industries on either side of the reservoir in Koppal and Bellary districts.
Nevertheless, the applications seeking allocation of 1.321 tmcft of water by three more industries, though approved by the Tungabhadra Board has been rejected by the Tungabhadra Irrigation Circle at Munirabad.
Besides, the proposals to put up steel plants by major players, RM Steel Limited, Aaress Iron and Steel Limited, MSPL Limited have been cleared by the high power committee and of late, the PSU mining major NMDC is seeking approval to set up a 5-mtpa five plant in region.
Even the government's assurance to industrialists to get water from Almatti reservoir in Bagalkot, which is around 300 km away, is sure to draw the wrath of farmers, as it was evident recently when JSW Steels laid pipelines to draw water. Here, also no specific industrial allocation of water as per the Krishna Tribunal Award.
Being the situation so, government's new mining policy focused on value addition projects may reach nowhere. "Let government to give at least 300 acres of land at the government price and ensure sufficient water supply, every mine owner of Bellary will put steel plants" remarks VSL Mining Company Ltd managing director Anil Lad.
However, the district in charge and infrastructure development minister Gali Janardhana Reddy is confident of overcoming the every hurdle to see Steel Hub a reality. "We have taken the services of Centre for Enivironmental Protection and Technology, Ahmedabad to prepare a roadmap for developing Steel Hub and the Cabinet has approved the formation of VADA. One has to wait and see how the face of Bellary will change into a Steel zone of the country in near future".
By Shivakumar G Malagi
Bellary, Dec 12: Going by the hard realities, particularly the severe shortage of water and non-agricultural land, plan of the BJP-led government to develop this iron ore rich region as a major hub of steel industry appears `rosy'.
The proposed project is expected to be permitted in the jurisdiction of the newly created Vijayanagar Area Development Authority (VADA) covering Bellary, Hospet and Sandur mining belt. Besides, the government braced up to promoting several iron ore value addition industries, including townships under the new mining policy unveiled recently.
The government wants the proposed Bellary Steel Hub to come up on the lines of Hazira Township in Gujarat in order to boast steel mills capable to produce at least 20 million tones per annum (mtpa) banking on the abundant availability of iron ore. Already, the regions' total steel production is hovering around 9 mtpa with the operation of steel major JSW Steels and nearly, 50 sponge and pig iron mills.
The governments plan to go ahead with steel hub project, in all probabilities sure to confront with farmers while providing water to industrialists as estimated 20 mtpa Steel Hub requires the minimum 7- tmcft water.
The Tungabhadra reservoir is the only major source of water in region. With the entire available in the reservoir committed for agriculture, there has been no special allocation for industrial use in Tungabhadra inter-state (Karnataka:138.990 tmcft and Andhra:73.010 tmcft) project.
However, the government has allocated 7.617 tmcft of water to about nine industries on either side of the reservoir in Koppal and Bellary districts.
Nevertheless, the applications seeking allocation of 1.321 tmcft of water by three more industries, though approved by the Tungabhadra Board has been rejected by the Tungabhadra Irrigation Circle at Munirabad.
Besides, the proposals to put up steel plants by major players, RM Steel Limited, Aaress Iron and Steel Limited, MSPL Limited have been cleared by the high power committee and of late, the PSU mining major NMDC is seeking approval to set up a 5-mtpa five plant in region.
Even the government's assurance to industrialists to get water from Almatti reservoir in Bagalkot, which is around 300 km away, is sure to draw the wrath of farmers, as it was evident recently when JSW Steels laid pipelines to draw water. Here, also no specific industrial allocation of water as per the Krishna Tribunal Award.
Being the situation so, government's new mining policy focused on value addition projects may reach nowhere. "Let government to give at least 300 acres of land at the government price and ensure sufficient water supply, every mine owner of Bellary will put steel plants" remarks VSL Mining Company Ltd managing director Anil Lad.
However, the district in charge and infrastructure development minister Gali Janardhana Reddy is confident of overcoming the every hurdle to see Steel Hub a reality. "We have taken the services of Centre for Enivironmental Protection and Technology, Ahmedabad to prepare a roadmap for developing Steel Hub and the Cabinet has approved the formation of VADA. One has to wait and see how the face of Bellary will change into a Steel zone of the country in near future".
Bellary emerging big in wind power production sector
Bellary emerging big in wind power production sector
By Shivakumar G Malagi
Bellary, Dec 5: Bellary district, which recently emerged on the map of thermal power generation plants with the operation of the state's first 500 MW plant at Kudithini here is now going big way into the `green energy' sector using a renewable source like wind energy.
State-owned Karnataka Renewable Energy Development Limited (KREDL) and on the other side, giant private players in wind energy sector MSPL Group and Suzlon Energy have taken big leap towards pollution-free energy independence and switch away from fossil fuels.
KREDL which search for areas suitable for tapping non-conventional energy to generate power, found that the hills along the side of villages in Hoovinahadagali taluk of district bordering Harapanahalli of Davanagere had high wind speed. The hills at Sogi, Jogimatti and Jajikalgudda are at 850, 1120 and 750 meters respectively from the mean sea level.
KREDL set up six towers in Sogi and Jajikalgudda villages in 2005, each tower having a capacity to generate 1.25 MW, on a pilot basis.The project began generating power in 2006, and today power to the extent of 6 MW is being generated.
On the same hill belt, Suzlon Energy had power plants at Sogi- 52.5 mw, at Gujanur-18.75 mw and Ayinahalli – 16.05 mw.
While, MSPL Limited, a flagship Company of the Baldota Group and India's largest wind energy producer had already wind energy farms-140.1 MW in state and has registered 125 MW in Karnataka with the United Nations Frame Work Convention on Climate Change (UNFCCC) one of the largest Clean Development Mechanism (CDM) Projects in the World.
According to MSPL sources, today, 70 towers have been set up by MSPL in the Sogi and the Jajikal hills, taking the total production capacity to around 100 MW.
"Power generation depends upon the wind speed. The wind speed is high during June to November, when maximum power generation can be achieved. On an average, around 40 MW can be generated," said an official, in charge of the project.
"Our Country needs substantial increase in renewable energy like Wind & Solar, if we are to deal with generating electricity on the one hand and protecting environment on the other. Government should come forward with incentives and support to the investors in these two sectors which will help in increased investment in renewable energy sector to switch away from fossil fuels," says Shrenik N Baldota, executive director, MSPL Ltd and vice-president, India Wind Power Association.
By Shivakumar G Malagi
Bellary, Dec 5: Bellary district, which recently emerged on the map of thermal power generation plants with the operation of the state's first 500 MW plant at Kudithini here is now going big way into the `green energy' sector using a renewable source like wind energy.
State-owned Karnataka Renewable Energy Development Limited (KREDL) and on the other side, giant private players in wind energy sector MSPL Group and Suzlon Energy have taken big leap towards pollution-free energy independence and switch away from fossil fuels.
KREDL which search for areas suitable for tapping non-conventional energy to generate power, found that the hills along the side of villages in Hoovinahadagali taluk of district bordering Harapanahalli of Davanagere had high wind speed. The hills at Sogi, Jogimatti and Jajikalgudda are at 850, 1120 and 750 meters respectively from the mean sea level.
KREDL set up six towers in Sogi and Jajikalgudda villages in 2005, each tower having a capacity to generate 1.25 MW, on a pilot basis.The project began generating power in 2006, and today power to the extent of 6 MW is being generated.
On the same hill belt, Suzlon Energy had power plants at Sogi- 52.5 mw, at Gujanur-18.75 mw and Ayinahalli – 16.05 mw.
While, MSPL Limited, a flagship Company of the Baldota Group and India's largest wind energy producer had already wind energy farms-140.1 MW in state and has registered 125 MW in Karnataka with the United Nations Frame Work Convention on Climate Change (UNFCCC) one of the largest Clean Development Mechanism (CDM) Projects in the World.
According to MSPL sources, today, 70 towers have been set up by MSPL in the Sogi and the Jajikal hills, taking the total production capacity to around 100 MW.
"Power generation depends upon the wind speed. The wind speed is high during June to November, when maximum power generation can be achieved. On an average, around 40 MW can be generated," said an official, in charge of the project.
"Our Country needs substantial increase in renewable energy like Wind & Solar, if we are to deal with generating electricity on the one hand and protecting environment on the other. Government should come forward with incentives and support to the investors in these two sectors which will help in increased investment in renewable energy sector to switch away from fossil fuels," says Shrenik N Baldota, executive director, MSPL Ltd and vice-president, India Wind Power Association.
NMDC takes a big leap into value-addition projects in Bellary
NMDC takes a big leap into value-addition projects in Bellary
By Shivakumar G Malagi
Bellary, Dec 6: The National Mineral Development Corporation (NMDC) Limited, the public sector mining major in the country is taking a big leap into value-addition projects in this ore-rich district when other private mining giants have stumbled by the shockwaves of global meltdown.
NMDC that has high grade, 65+ Fe iron ore mines in Donimalai, Kumaraswamy hill and Ramdurg of Sandur mining belt is all set to venture into value addition projects including a 5 million tonne per annum (mtpa) steel plant and nation's first banded hematite quartzite (BHQ) demonstration pilot plant here.
The company which produces around 6.98 million tonnes per annum from Bellary sector is set go for modernized and scientific exploration of mines with setting up of pelletisation plant with slime beneficiation facilities to achieve `zero-waste management'.
NMDC, Donimalai authorities said techno economic feasibility report for installation this plant has been done by major mining consultant; M N Dastur Company Ltd and land is also earmarked.
"Besides, nations first BHQ demonstration pilot plant will come up in Donimalai sector by next one year, where we could extract iron even from the mining dust and that would certainly come to help other mining firms in region to increase the capacity of production and waste-management", said Subimal Bhose, general manager, NMDC, Donimalai.
After these projects, he said, NMDC will go for 5-mtpa steel plant plan in Bellary region. While, the company sources said it is already into the venture of 3 mtpa steel plant in Chattisgarh.
District in charge minister Gali Janardhana Reddy said " NMDC has submitted a proposal for 5 mtpa steel plant in region to state government and is under the consideration".
He said, government is firm to make region, which already boasts three major steel and more than 50 sponge iron factories into a Steel-Hub with international standards by setting up Vijayanagara Area Development Authority that is already approved in the Cabinet.
By Shivakumar G Malagi
Bellary, Dec 6: The National Mineral Development Corporation (NMDC) Limited, the public sector mining major in the country is taking a big leap into value-addition projects in this ore-rich district when other private mining giants have stumbled by the shockwaves of global meltdown.
NMDC that has high grade, 65+ Fe iron ore mines in Donimalai, Kumaraswamy hill and Ramdurg of Sandur mining belt is all set to venture into value addition projects including a 5 million tonne per annum (mtpa) steel plant and nation's first banded hematite quartzite (BHQ) demonstration pilot plant here.
The company which produces around 6.98 million tonnes per annum from Bellary sector is set go for modernized and scientific exploration of mines with setting up of pelletisation plant with slime beneficiation facilities to achieve `zero-waste management'.
NMDC, Donimalai authorities said techno economic feasibility report for installation this plant has been done by major mining consultant; M N Dastur Company Ltd and land is also earmarked.
"Besides, nations first BHQ demonstration pilot plant will come up in Donimalai sector by next one year, where we could extract iron even from the mining dust and that would certainly come to help other mining firms in region to increase the capacity of production and waste-management", said Subimal Bhose, general manager, NMDC, Donimalai.
After these projects, he said, NMDC will go for 5-mtpa steel plant plan in Bellary region. While, the company sources said it is already into the venture of 3 mtpa steel plant in Chattisgarh.
District in charge minister Gali Janardhana Reddy said " NMDC has submitted a proposal for 5 mtpa steel plant in region to state government and is under the consideration".
He said, government is firm to make region, which already boasts three major steel and more than 50 sponge iron factories into a Steel-Hub with international standards by setting up Vijayanagara Area Development Authority that is already approved in the Cabinet.
FIMI head Baldota says State's mining policy is a positive step.
FIMI head Baldota says State's mining policy is a positive step.
By Shivakumar G Malagi
Bellary, Dec 6: The new Karnataka State Mineral Policy 2008 that has come in for criticism from opposition leaders seems to have not disturbed much the mining lords in this ore-rich district, which is seen as the `prime reason' for redrafting the eight-year old state mineral policy.
Former CM H D Kumaraswamy claimed that policy was tailored to safeguard the interests of `some' ministers in Cabinet and leader of opposition in State Legislative council V S Ugrappa stated that Policy was hurriedly formed to push in the interests of Bellary mining lobby ahead of the by-elections.
Both have indirectly referred the `influence' of Bellary Reddy Brothers on drafting the new policy, which was criticized for lacks on issues related to environment protection.
Even there were contrasting versions that Cabinet did not approve the policy, but decided to send it back to the Department of Mines and Geology to come out with a final draft.
But, Bellary district in charge minister and mining czar Gali Janardhana Reddy said "The Cabinet has approved the Policy that is a model mineral policy gives priority to industries for value addition and total development of mineral-bearing areas".
While, Rahul N Baldota, president, Federation of Indian Mineral Industries told Deccan Chronicle that the new Karnataka mineral policy has pro-actively considered notifying mineral bearing lands. This is a very positive step towards mineral development.
"It has also decided to apportion revenue generated from mining towards development of mining areas. This will go a long way in infrastructure development", he remarked.
On proposed ban on export of iron ore, particularly iron ore, VSL Mining Company MD and Rajya Sabha MP Anil Lad said " How can a state government ban export of a Scheduled Mineral. Let government ensure water supply and 300 acres of land at the government rate, every mine owner of Bellary will set up steel plant. When it was unable to give a captive mines to regions major steel mill-JSW Steels since 14 years, then how could it make law forcing every miner to establish steel factories".
However the policy which states no new licences would be granted or renewed to export minerals without value addition is welcomed by the steel and sponge iron sector in region.
The sponge iron industrialists said the country must discourage iron ore export if it is to develop its steel industry. Steel consumption in the country was growing at the rate of 12 percent a year and the demand trend showed that this figure would rise to 13 percent this year even as production was still increasing at only 5.5 percent.
" Mine owners do not want to sell raw product to domestic market, but to international market at high price. Now they have shut down plants due to sharp slump in prices at international market, as a result we are forced to close our mills" says a owner of sponge iron factory which was shut down since October.
By Shivakumar G Malagi
Bellary, Dec 6: The new Karnataka State Mineral Policy 2008 that has come in for criticism from opposition leaders seems to have not disturbed much the mining lords in this ore-rich district, which is seen as the `prime reason' for redrafting the eight-year old state mineral policy.
Former CM H D Kumaraswamy claimed that policy was tailored to safeguard the interests of `some' ministers in Cabinet and leader of opposition in State Legislative council V S Ugrappa stated that Policy was hurriedly formed to push in the interests of Bellary mining lobby ahead of the by-elections.
Both have indirectly referred the `influence' of Bellary Reddy Brothers on drafting the new policy, which was criticized for lacks on issues related to environment protection.
Even there were contrasting versions that Cabinet did not approve the policy, but decided to send it back to the Department of Mines and Geology to come out with a final draft.
But, Bellary district in charge minister and mining czar Gali Janardhana Reddy said "The Cabinet has approved the Policy that is a model mineral policy gives priority to industries for value addition and total development of mineral-bearing areas".
While, Rahul N Baldota, president, Federation of Indian Mineral Industries told Deccan Chronicle that the new Karnataka mineral policy has pro-actively considered notifying mineral bearing lands. This is a very positive step towards mineral development.
"It has also decided to apportion revenue generated from mining towards development of mining areas. This will go a long way in infrastructure development", he remarked.
On proposed ban on export of iron ore, particularly iron ore, VSL Mining Company MD and Rajya Sabha MP Anil Lad said " How can a state government ban export of a Scheduled Mineral. Let government ensure water supply and 300 acres of land at the government rate, every mine owner of Bellary will set up steel plant. When it was unable to give a captive mines to regions major steel mill-JSW Steels since 14 years, then how could it make law forcing every miner to establish steel factories".
However the policy which states no new licences would be granted or renewed to export minerals without value addition is welcomed by the steel and sponge iron sector in region.
The sponge iron industrialists said the country must discourage iron ore export if it is to develop its steel industry. Steel consumption in the country was growing at the rate of 12 percent a year and the demand trend showed that this figure would rise to 13 percent this year even as production was still increasing at only 5.5 percent.
" Mine owners do not want to sell raw product to domestic market, but to international market at high price. Now they have shut down plants due to sharp slump in prices at international market, as a result we are forced to close our mills" says a owner of sponge iron factory which was shut down since October.
Friday, December 5, 2008
The mining downtrend has punched a hole even in marital plans of Bellary youth
The mining downtrend has punched a hole even in marital plans of Bellary youth
By Shivakumar G Malagi
Bellary: Dec 4: The global economic meltdown that is reverberating from Wall Street's fallen banks to factories in China to iron ore mines in Bellary has punched a hole even in marital plans of youth here.
In 2001, the commodity Bull Run was still two years away. However, a construction boom in China and other emerging economies had begun. By 2002, the linkages and the supply chains had firmly got established and the mining boom was fully in motion in this ore-rich district.
Over the next few years, a mining frenzy took over the region. Large companies, small businessmen, farmers, politicians, migrants and even the groups of college drop-outs all jumped in. They dug for iron ore everywhere in Sandur-Hospet-Bellary.
"Digging" became the only English word commonly understood by everybody in the district. A class of newly rich middle-class youth in their 25 plus emerged from mining profits within a span of three years entering mainly into mineral trading and transportations. Flashy houses and swanky cars revealed them to the world. They were only away of one good-looking bride from `high society' to marry.
When it came in this July, it came without a warning. Just when the global iron ore industry was getting used to a record price of $175 per tonne tanked to $50 a tonne as the Chinese demand started evaporating. The US financial markets started stumbling from one crisis to another.
These distant events, proved a fatal to the elaborate web of businesses segments depending on the ore money and silently, spell a gloom on marital plans of youth in mining business.
They were in demand on par with white-colored professions here since 2004. Even the parents of brides settled in big cities in Andhra and Karnataka were also not wary of such proposals.
When it was the case of youth dependent on mining industry, youth from the families of big mine owners and logistic firms have made it in big way. Many have got married with daughters of reputed business tycoons, politicians and IAS officers. For instance, a daughter of Shivalinga Murthy, Director of Department of Mines and Geology was married to a youth from Gogga Bros., mining company in Hospet previous month.
But, the partying has slowed down in this marriage season and there is a feeling of a bad hangover all over the district. Siddesh, who owns two 15-ton vehicles which are gathering dust on the roadside of Papinayakanahalli since three months was now told 'sorry, we are not interested in proposal' by brides parents who earlier discussed up to the fixation of marriage date.
"we can't find a bride in these times. Brides' parents are now wary of marrying their daughters to us. They say we are in trouble and insecured", Siddesh remarks.
In July, I had set around 40 brides for youths into mining related occupations and even marriages were fixed in this December's Kartheeka maasa, says Durgesh, who runs a matrimonial house since two decades in Hospet.
"But by the October, half of the parents of those brides have intimated me that they are not quite happy with the proposal and got a better well settled guy and even some told me to wait another six months", he remarked.
Eom/Shivakumar G Malagi/Bellary
By Shivakumar G Malagi
Bellary: Dec 4: The global economic meltdown that is reverberating from Wall Street's fallen banks to factories in China to iron ore mines in Bellary has punched a hole even in marital plans of youth here.
In 2001, the commodity Bull Run was still two years away. However, a construction boom in China and other emerging economies had begun. By 2002, the linkages and the supply chains had firmly got established and the mining boom was fully in motion in this ore-rich district.
Over the next few years, a mining frenzy took over the region. Large companies, small businessmen, farmers, politicians, migrants and even the groups of college drop-outs all jumped in. They dug for iron ore everywhere in Sandur-Hospet-Bellary.
"Digging" became the only English word commonly understood by everybody in the district. A class of newly rich middle-class youth in their 25 plus emerged from mining profits within a span of three years entering mainly into mineral trading and transportations. Flashy houses and swanky cars revealed them to the world. They were only away of one good-looking bride from `high society' to marry.
When it came in this July, it came without a warning. Just when the global iron ore industry was getting used to a record price of $175 per tonne tanked to $50 a tonne as the Chinese demand started evaporating. The US financial markets started stumbling from one crisis to another.
These distant events, proved a fatal to the elaborate web of businesses segments depending on the ore money and silently, spell a gloom on marital plans of youth in mining business.
They were in demand on par with white-colored professions here since 2004. Even the parents of brides settled in big cities in Andhra and Karnataka were also not wary of such proposals.
When it was the case of youth dependent on mining industry, youth from the families of big mine owners and logistic firms have made it in big way. Many have got married with daughters of reputed business tycoons, politicians and IAS officers. For instance, a daughter of Shivalinga Murthy, Director of Department of Mines and Geology was married to a youth from Gogga Bros., mining company in Hospet previous month.
But, the partying has slowed down in this marriage season and there is a feeling of a bad hangover all over the district. Siddesh, who owns two 15-ton vehicles which are gathering dust on the roadside of Papinayakanahalli since three months was now told 'sorry, we are not interested in proposal' by brides parents who earlier discussed up to the fixation of marriage date.
"we can't find a bride in these times. Brides' parents are now wary of marrying their daughters to us. They say we are in trouble and insecured", Siddesh remarks.
In July, I had set around 40 brides for youths into mining related occupations and even marriages were fixed in this December's Kartheeka maasa, says Durgesh, who runs a matrimonial house since two decades in Hospet.
"But by the October, half of the parents of those brides have intimated me that they are not quite happy with the proposal and got a better well settled guy and even some told me to wait another six months", he remarked.
Eom/Shivakumar G Malagi/Bellary
Wednesday, December 3, 2008
The other side of Bellary Sriramulu
The other side of Sriramulu
BY SHIVAKUMAR G. MALAGI /DC
BELLARY
After the murder of his brother-in-law Railway Babu, Sriramulu, then a Congress councillor, ended his association with his mentor Mundloor Diwakar Babu and joined hands with his childhood friend Janardhan Reddy who was then running a financial firm
He has gone to jail, was allegedly a ‘rowdy-sheeter’ and has many criminal cases pending against him. But the people in Bellary and Gadag offer prayers to his photograph that they keep in their homes! The health and family welfare minister and Man Friday of Bellary Reddy troika — B. Sriramulu, 37 — is the most talked about politico at the moment, emerging from the shadows of the Reddy brothers after he was projected as the ‘next Chief Minister' by ‘mining czar’ and the most influential minister in Chief Minister B. S. Yedd-yurappa’s cabinet, Gali Janardhan Reddy. But he has also played an important role in the establishment of the Reddy dynasty in Bellary. The son of a D Group employee in Railways, he has been friends with Janardhan Reddy since the age of 12.
Hailing from Valmiki community, which is a dominant force in Bellary, he grew in popularity with his aggressiveness and fearlessness.
After the murder of his brother-in-law Railway Babu, Sriramulu, then a Congress councilor ended his association with his mentor Congress leader Mundloor Diwakar Babu and joined hands with childhood-friend Janardhan Reddy, who was then running a financial firmEnnoble India.
The year 1999 brought the Reddys and Sriramulu to the forefront when they campaigned for BJP senior leader Sushma Swaraj against AICC supremo Sonia Gandhi in the fiercely fought Parliamentary elections.
Both Ms Swaraj and Sriramulu, who contested for Bellary assembly seat against Diwakar Babu lost the elections, but the foursome earned her affection and confidence.
The Olympics in China brought about the Bellary boom and iron ore rates spiralled from Rs 200-300 to Rs 2,000 per tonne in region which subsequently propelled the Reddys, who had bought the Obulapuram Mines in Andhra Pradesh to the hot seat of state politics. The Reddys did not forget to elevate Sriramulu as one of the directors of their mining company.
Mr Sriramulu won the 2004 Assembly elections and went on to become a minister in the JD(S)-BJP coalition. In 2008, he won again without much difficulty and became something of a ‘cult figure’ of Valmiki community in region.
On Sunday, tourism minister Janardhan Reddy stated in a Valmiki community convention in Bellary, “Sriramulu is next CM. No one can stop this as his leadership acceptance among the Valmiki community and downtrodden is not restricted to any one region, but across the state.” This utterance has shaken the corridors of power in state politics raising questions on a leadership change at the top, only weeks ahead of key bypolls which would have cemented the BJP’s hold on the state.
Mr Sriramulu has strong support. Says Bellary city MLA Somashekhar Reddy “Sriramulu is born to uplift poor and always thinks and concerned of downtrodden. State will progress if such a person becomes the CM.” He adds, “Let CM Yeddyurappa complete his term and continue in the seat of power until he wants to. After this, if there is any opportunity for Sriramulu to become Chief Minister, then I personally would be very happy to see him becoming CM.” On whether Mr Sriramulu is still a rowdy sheeter, all superintendent of police Seemanthkumar Singh would say is this: “I am outside the office, let me check up.” But, police sources say his name is still in the list of rowdy-sheeters as fresh cases of ransacking vehicles, threatening Congress leader Anil Lad and absconding during recent assembly elections were registered in addition to a number of pending criminal cases.
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BY SHIVAKUMAR G. MALAGI /DC
BELLARY
After the murder of his brother-in-law Railway Babu, Sriramulu, then a Congress councillor, ended his association with his mentor Mundloor Diwakar Babu and joined hands with his childhood friend Janardhan Reddy who was then running a financial firm
He has gone to jail, was allegedly a ‘rowdy-sheeter’ and has many criminal cases pending against him. But the people in Bellary and Gadag offer prayers to his photograph that they keep in their homes! The health and family welfare minister and Man Friday of Bellary Reddy troika — B. Sriramulu, 37 — is the most talked about politico at the moment, emerging from the shadows of the Reddy brothers after he was projected as the ‘next Chief Minister' by ‘mining czar’ and the most influential minister in Chief Minister B. S. Yedd-yurappa’s cabinet, Gali Janardhan Reddy. But he has also played an important role in the establishment of the Reddy dynasty in Bellary. The son of a D Group employee in Railways, he has been friends with Janardhan Reddy since the age of 12.
Hailing from Valmiki community, which is a dominant force in Bellary, he grew in popularity with his aggressiveness and fearlessness.
After the murder of his brother-in-law Railway Babu, Sriramulu, then a Congress councilor ended his association with his mentor Congress leader Mundloor Diwakar Babu and joined hands with childhood-friend Janardhan Reddy, who was then running a financial firmEnnoble India.
The year 1999 brought the Reddys and Sriramulu to the forefront when they campaigned for BJP senior leader Sushma Swaraj against AICC supremo Sonia Gandhi in the fiercely fought Parliamentary elections.
Both Ms Swaraj and Sriramulu, who contested for Bellary assembly seat against Diwakar Babu lost the elections, but the foursome earned her affection and confidence.
The Olympics in China brought about the Bellary boom and iron ore rates spiralled from Rs 200-300 to Rs 2,000 per tonne in region which subsequently propelled the Reddys, who had bought the Obulapuram Mines in Andhra Pradesh to the hot seat of state politics. The Reddys did not forget to elevate Sriramulu as one of the directors of their mining company.
Mr Sriramulu won the 2004 Assembly elections and went on to become a minister in the JD(S)-BJP coalition. In 2008, he won again without much difficulty and became something of a ‘cult figure’ of Valmiki community in region.
On Sunday, tourism minister Janardhan Reddy stated in a Valmiki community convention in Bellary, “Sriramulu is next CM. No one can stop this as his leadership acceptance among the Valmiki community and downtrodden is not restricted to any one region, but across the state.” This utterance has shaken the corridors of power in state politics raising questions on a leadership change at the top, only weeks ahead of key bypolls which would have cemented the BJP’s hold on the state.
Mr Sriramulu has strong support. Says Bellary city MLA Somashekhar Reddy “Sriramulu is born to uplift poor and always thinks and concerned of downtrodden. State will progress if such a person becomes the CM.” He adds, “Let CM Yeddyurappa complete his term and continue in the seat of power until he wants to. After this, if there is any opportunity for Sriramulu to become Chief Minister, then I personally would be very happy to see him becoming CM.” On whether Mr Sriramulu is still a rowdy sheeter, all superintendent of police Seemanthkumar Singh would say is this: “I am outside the office, let me check up.” But, police sources say his name is still in the list of rowdy-sheeters as fresh cases of ransacking vehicles, threatening Congress leader Anil Lad and absconding during recent assembly elections were registered in addition to a number of pending criminal cases.
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It’s Valmiki raj in Bellary
It’s Valmiki raj in Bellary
BY SHIVAKUMAR G. MALAGI
BELLARY
‘ ‘ It’s quite natural that political- ly empowered Valmikis should appoint their men
The Valmiki com munity dominates key administrative posts from the deputy commissioner downwards in this ore-rich district.
The deputy commissioner, additional SP, deputy conservator of forest, CEO of the Zilla Panchayat, the commissioner of the Bellary Municipal Corporation, assistant commissioner (revenue, Hospet), resident medical officers and many more sub-ordinate officers in almost every department belong to the tribal Valmiki community.
The increasing number of officers from the community is seen as an offshoot of the recommendations of the Delimitation Commission, which had also suggested reservation of five-Assembly seats out of nine in the district and the Bellary Lok Sabha seat for the scheduled tribes.
Consequently for the fist time since Independence five candidates from the Valmiki community were elected to the state Assembly in the May 2008 elections and one MLA, B Sriramulu became minister in the B.S. Yeddyurappa government.
“Valmikis are in large number in the district, but they were used as merely vote-banks. It is quite natural now that politically empowered Valmikis should appoint officers from their own community to key posts. We cannot call this casteism, but a matter of placing confidence and trust. For decades bureau cratic posts have been occupied by upper castes,” says a senior district BJP partyman.
However, the community in which the Devadasi system is still in vogue, does not seem greatly benefited from the battery of its officers in key positions.
“We have four MLAs in the ruling party and of them one is a minister. But I don’t think the purpose of uplifting the backward Valmikis through political empowerment has been served as the elected MLAs have become mere puppets in the hands of upper caste miners, turned politicians. The officers are also not an exception,” says V K Basappa, president, Valmiki Rakshana Vedike, Bellary.
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BY SHIVAKUMAR G. MALAGI
BELLARY
‘ ‘ It’s quite natural that political- ly empowered Valmikis should appoint their men
The Valmiki com munity dominates key administrative posts from the deputy commissioner downwards in this ore-rich district.
The deputy commissioner, additional SP, deputy conservator of forest, CEO of the Zilla Panchayat, the commissioner of the Bellary Municipal Corporation, assistant commissioner (revenue, Hospet), resident medical officers and many more sub-ordinate officers in almost every department belong to the tribal Valmiki community.
The increasing number of officers from the community is seen as an offshoot of the recommendations of the Delimitation Commission, which had also suggested reservation of five-Assembly seats out of nine in the district and the Bellary Lok Sabha seat for the scheduled tribes.
Consequently for the fist time since Independence five candidates from the Valmiki community were elected to the state Assembly in the May 2008 elections and one MLA, B Sriramulu became minister in the B.S. Yeddyurappa government.
“Valmikis are in large number in the district, but they were used as merely vote-banks. It is quite natural now that politically empowered Valmikis should appoint officers from their own community to key posts. We cannot call this casteism, but a matter of placing confidence and trust. For decades bureau cratic posts have been occupied by upper castes,” says a senior district BJP partyman.
However, the community in which the Devadasi system is still in vogue, does not seem greatly benefited from the battery of its officers in key positions.
“We have four MLAs in the ruling party and of them one is a minister. But I don’t think the purpose of uplifting the backward Valmikis through political empowerment has been served as the elected MLAs have become mere puppets in the hands of upper caste miners, turned politicians. The officers are also not an exception,” says V K Basappa, president, Valmiki Rakshana Vedike, Bellary.
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Tuesday, December 2, 2008
Anegundi area fit to become biosphere reserve
Anegundi area fit to become biosphere reserve
Shivakumar G Malagi | TNN
Anegundi: Referred to as the cradle of the Vijayanagar empire in history books, Anegundi is perhaps the only place in the world with human settlements from the Microlithic, Megalithic and Neolithic ages.
Anegundi is located on the banks of the river Tungabhadra and falls in the core zone of Hampi, declared a World Heritage Site by UNESCO in 1986. The Hampi-Anegundi area is more than what is commonly considered the ruined kingdom of 15thcentury Vijayanagar empire. Here, tourists find 500-year-old monuments of high degree of engineering skill at every step.
It is said to have one of the oldest plateaus on the planet, estimated to be 3,000 million years old. So, only local story-tellers refer to Anegundi as the maternal home of Bhoodevi (Mother Earth).
Anegundi has been identified as the capital of the mythical kingdom of Kishkinda, mentioned in the epic Ramayana. It is the birthplace of God Hanuman.
Neolithic history is represented in this region by Mourya Mane, a several thousand-yearold ‘Stone Age Colony’. Several Neolithic dwellings still bear paintings that are clear and intact even to this day. “This is the rare human settlement where we will find traces of Microlithic, Megalithic and Neolithic age of human life at one same spot. Anegundi area is much more than the Vijayanagar empire, and as is old as the planet. Till date, this village is a living heritage site in its true sense,” says Cheluvaraj, head of the department of tribal studies, Kannada University, Hampi.
Since Ashoka’s rule in the third century to that of the Nizam of Hyderabad in the 20th century, Anegundi was under the rule of various dynasties.
Apart from the huge boulders and grand monuments, this is an astonishingly unique area, which is home to rare and endangered species of flora and fauna. Langurs, monkeys, turtles, bears and leopards abound, apart from nearly 200 varieties of birds.
This area, that stretches up to Daroji forest, is also an example of “dry deciduous scrub jungle” indigenous to the Deccan plateau. Such vegetation is highly underrepresented in today’s Indian National Parks System. “Hence, I see many strong reasons to declare Hampi, a World Heritage Site, into a UNESCO Biosphere Reserve. The unique biodiversity, fragility and the threat faced by the region, make Hampi a good contender to be decl UNESCOUnesco Biosphere Reserve,” remarks Shama Pawar, founder trustee, The Kishkinda Trust (TKT) in Anegundi, which is considering working with the Hampi World Heritage Site Management Authority on this.
UNESCO Biosphere Reserve
The Bureau for Man and Biosphere (MAB) Programme of UNESCO, examines new proposals for recognition and approval of biosphere reserves. The site demands an international approach to the definition of heritage —- one that will take into account the spectacular landscape, vernacular buildings of the nearby villages, traditional understanding of sacred sites, monuments and ruins. There are 13 existing biosphere reserves in India. Considering the unique biodiversity, fragility and threat faced by Hampi area, TKT is proposing conserving this as a biosphere reserve.
The major threat posed to the monuments is from the mining industry, located hardly 35 km from the heritage site. Besides, the impact of granite extraction takes away its most striking features — the monolithic boulders, that take thousands of years to heal. The building of new concrete premises without any archaeological context, is resulting in inappropriate construction at the World Heritage Site.
The release of molasses from the industries and growth of weeds, reduces the oxygen level in the Tungabhadra river and leads to the death of marine life. So Pawar feels it is imperative to declare the Hampi-Anegundi area as a UNESCO Biosphere Reserve to preserve genetic resources, species, ecosystems and landscapes.
Shivakumar G Malagi | TNN
Anegundi: Referred to as the cradle of the Vijayanagar empire in history books, Anegundi is perhaps the only place in the world with human settlements from the Microlithic, Megalithic and Neolithic ages.
Anegundi is located on the banks of the river Tungabhadra and falls in the core zone of Hampi, declared a World Heritage Site by UNESCO in 1986. The Hampi-Anegundi area is more than what is commonly considered the ruined kingdom of 15thcentury Vijayanagar empire. Here, tourists find 500-year-old monuments of high degree of engineering skill at every step.
It is said to have one of the oldest plateaus on the planet, estimated to be 3,000 million years old. So, only local story-tellers refer to Anegundi as the maternal home of Bhoodevi (Mother Earth).
Anegundi has been identified as the capital of the mythical kingdom of Kishkinda, mentioned in the epic Ramayana. It is the birthplace of God Hanuman.
Neolithic history is represented in this region by Mourya Mane, a several thousand-yearold ‘Stone Age Colony’. Several Neolithic dwellings still bear paintings that are clear and intact even to this day. “This is the rare human settlement where we will find traces of Microlithic, Megalithic and Neolithic age of human life at one same spot. Anegundi area is much more than the Vijayanagar empire, and as is old as the planet. Till date, this village is a living heritage site in its true sense,” says Cheluvaraj, head of the department of tribal studies, Kannada University, Hampi.
Since Ashoka’s rule in the third century to that of the Nizam of Hyderabad in the 20th century, Anegundi was under the rule of various dynasties.
Apart from the huge boulders and grand monuments, this is an astonishingly unique area, which is home to rare and endangered species of flora and fauna. Langurs, monkeys, turtles, bears and leopards abound, apart from nearly 200 varieties of birds.
This area, that stretches up to Daroji forest, is also an example of “dry deciduous scrub jungle” indigenous to the Deccan plateau. Such vegetation is highly underrepresented in today’s Indian National Parks System. “Hence, I see many strong reasons to declare Hampi, a World Heritage Site, into a UNESCO Biosphere Reserve. The unique biodiversity, fragility and the threat faced by the region, make Hampi a good contender to be decl UNESCOUnesco Biosphere Reserve,” remarks Shama Pawar, founder trustee, The Kishkinda Trust (TKT) in Anegundi, which is considering working with the Hampi World Heritage Site Management Authority on this.
UNESCO Biosphere Reserve
The Bureau for Man and Biosphere (MAB) Programme of UNESCO, examines new proposals for recognition and approval of biosphere reserves. The site demands an international approach to the definition of heritage —- one that will take into account the spectacular landscape, vernacular buildings of the nearby villages, traditional understanding of sacred sites, monuments and ruins. There are 13 existing biosphere reserves in India. Considering the unique biodiversity, fragility and threat faced by Hampi area, TKT is proposing conserving this as a biosphere reserve.
The major threat posed to the monuments is from the mining industry, located hardly 35 km from the heritage site. Besides, the impact of granite extraction takes away its most striking features — the monolithic boulders, that take thousands of years to heal. The building of new concrete premises without any archaeological context, is resulting in inappropriate construction at the World Heritage Site.
The release of molasses from the industries and growth of weeds, reduces the oxygen level in the Tungabhadra river and leads to the death of marine life. So Pawar feels it is imperative to declare the Hampi-Anegundi area as a UNESCO Biosphere Reserve to preserve genetic resources, species, ecosystems and landscapes.
The MAHATMA’s WINNING ways
The MAHATMA’s WINNING ways
Even a century later, Mahatma Gandhi is remembered for his unique efforts to establish peace and win hearts through simple methods. Much-needed Gandhigiri in our short-tempered times.
Shivakumar G Malagi
Bellary: The world knows the role of South Africa’s Pietermaritzburg railway station in the life of Mahatma Gandhi, and the civil disobedience movement. Few know that he also protested at the lesser known Bellary railway station, but to solve a factional feud of sorts in the Congress party.
The incident at Bellary’s station platform provided Gandhi a chance to understand the internal bickerings, which prevailed even then at the grassroot level in the Congress, and which later helped him establish an unparalleled leadership of the party.
Having assumed leadership of the Indian National Congress in 1921, Gandhi began a nationwide campaign to ease poverty, expand women’s rights to build religious and ethnic amity, end untouchability, increase economic self-reliance, and above all, achieve Swaraj — the independence of India from foreign domination. As part of his tour, Gandhi visited Bellary, but had to spend about eight hours on the railway platform on October 1, 1921, a very disgusted man.
Not many are aware that an unhappy Gandhi just waited at the station for his next train, even as the factions of the Congress — the Andhra State Congress and Mysore State Congress — bickered and refused to assemble in one place to meet the party leader. Both factions had invited him to their offices.
According to a passage from Discovering Tekur Subramanyam, a commemoration volume brought out by Kannada University at Hampi, “Mahatma Gandhi, during his visit to Bellary in 1921, was disgusted with the factions in the district unit of the Congress. Gandhiji refused to visit the offices of the factions, and preferred to rest at the Bellary railway station platform for eight hours.”
The age-old differences on linguistic lines within the Congressfold might have led Gandhiji to refuse offers by both groups in his unique ‘silent protest’. The incident, which happened early in Gandhiji’s life, is said to had led him to understand the ‘grassroot’ Congress workers, and turn them into a committed cadre-based force to fight British rule.
The merger issue of Bellary, which was part of the erstwhile Madras province till October 1, 1953, later led to the existence of two Congress units in Bellary district on linguistic lines: Andhra Pradesh Congress Committee and Karnataka Pradesh Congress Committee. However, not much light has been thrown on what Gandhiji did in those ‘historic eight hours’ on the railway platform.
Even a century later, Mahatma Gandhi is remembered for his unique efforts to establish peace and win hearts through simple methods. Much-needed Gandhigiri in our short-tempered times.
Shivakumar G Malagi
Bellary: The world knows the role of South Africa’s Pietermaritzburg railway station in the life of Mahatma Gandhi, and the civil disobedience movement. Few know that he also protested at the lesser known Bellary railway station, but to solve a factional feud of sorts in the Congress party.
The incident at Bellary’s station platform provided Gandhi a chance to understand the internal bickerings, which prevailed even then at the grassroot level in the Congress, and which later helped him establish an unparalleled leadership of the party.
Having assumed leadership of the Indian National Congress in 1921, Gandhi began a nationwide campaign to ease poverty, expand women’s rights to build religious and ethnic amity, end untouchability, increase economic self-reliance, and above all, achieve Swaraj — the independence of India from foreign domination. As part of his tour, Gandhi visited Bellary, but had to spend about eight hours on the railway platform on October 1, 1921, a very disgusted man.
Not many are aware that an unhappy Gandhi just waited at the station for his next train, even as the factions of the Congress — the Andhra State Congress and Mysore State Congress — bickered and refused to assemble in one place to meet the party leader. Both factions had invited him to their offices.
According to a passage from Discovering Tekur Subramanyam, a commemoration volume brought out by Kannada University at Hampi, “Mahatma Gandhi, during his visit to Bellary in 1921, was disgusted with the factions in the district unit of the Congress. Gandhiji refused to visit the offices of the factions, and preferred to rest at the Bellary railway station platform for eight hours.”
The age-old differences on linguistic lines within the Congressfold might have led Gandhiji to refuse offers by both groups in his unique ‘silent protest’. The incident, which happened early in Gandhiji’s life, is said to had led him to understand the ‘grassroot’ Congress workers, and turn them into a committed cadre-based force to fight British rule.
The merger issue of Bellary, which was part of the erstwhile Madras province till October 1, 1953, later led to the existence of two Congress units in Bellary district on linguistic lines: Andhra Pradesh Congress Committee and Karnataka Pradesh Congress Committee. However, not much light has been thrown on what Gandhiji did in those ‘historic eight hours’ on the railway platform.
Mine in Andhra, dump waste in Karnataka
Mine in AP, dump waste here
Firms Violate Notification, Pose Threat To Border Villages
Shivakumar G Malagi | TNN
Bellary: With the Andhra Pradesh government approving large-scale mining operations across the border, Karnataka villages are losing ecobalance and becoming dumping yards for mining waste.
Living condition has deteriorated in Gangalapur, Vitalapur, Tumati, Belagal, Honnali and Halkundi in Karnataka,which adjoin the Malapanagudi, Obulapuram and Siddapura iron ore belts in Andhra Pradesh.
As per the Environment Impact Assessment Notification (EIAN)-2006 of the Union ministry of environment and forests, the mining companies, located in whole or in part, within 10 km of the inter-state border should hold public hearings in both states.
“Of course, the firms do mining as per the granted leases in AP. But, they dump the ore waste in our villages. This accumulated ore waste is proving fatal to people and livestock. They don’t even hold a public hearing to raise our objections,” said a resident of Tumati village.
According to Bellary district forest officer S Muttaiah, there are three or four mining leases (ML) on the state border. Only few forest hamlets in Andhra fall within 10 km of the mining leases, while many villages on the Bellary-Sandur range along the interstate border have been vulnerable to ill-effects of mining in AP. “An experts’ report and objections of residents on both sides of the border have to be obtained to get environmental clearance for new MLs,” says K R Baig, regional director (environment).
“Going by EIAN-2006, it would be mandatory for an Andhra company to conduct public hearings in state’s villages. As per my knowledge, we have not received any intimation and documentation on public hearings conducted by the AP Pollution Control Board in our border villages,” says K B Kotresh, deputy environmental officer, Karnataka State Pollution Control Board. “Environmental issues of MLs, irrespective of the mining stretch, fall within the ambit of MoEF and KSPCB has no power to act on mining leases in Andhra Pradesh taking cognizance of environmental sensitivity in border villages,” he said.
Firms Violate Notification, Pose Threat To Border Villages
Shivakumar G Malagi | TNN
Bellary: With the Andhra Pradesh government approving large-scale mining operations across the border, Karnataka villages are losing ecobalance and becoming dumping yards for mining waste.
Living condition has deteriorated in Gangalapur, Vitalapur, Tumati, Belagal, Honnali and Halkundi in Karnataka,which adjoin the Malapanagudi, Obulapuram and Siddapura iron ore belts in Andhra Pradesh.
As per the Environment Impact Assessment Notification (EIAN)-2006 of the Union ministry of environment and forests, the mining companies, located in whole or in part, within 10 km of the inter-state border should hold public hearings in both states.
“Of course, the firms do mining as per the granted leases in AP. But, they dump the ore waste in our villages. This accumulated ore waste is proving fatal to people and livestock. They don’t even hold a public hearing to raise our objections,” said a resident of Tumati village.
According to Bellary district forest officer S Muttaiah, there are three or four mining leases (ML) on the state border. Only few forest hamlets in Andhra fall within 10 km of the mining leases, while many villages on the Bellary-Sandur range along the interstate border have been vulnerable to ill-effects of mining in AP. “An experts’ report and objections of residents on both sides of the border have to be obtained to get environmental clearance for new MLs,” says K R Baig, regional director (environment).
“Going by EIAN-2006, it would be mandatory for an Andhra company to conduct public hearings in state’s villages. As per my knowledge, we have not received any intimation and documentation on public hearings conducted by the AP Pollution Control Board in our border villages,” says K B Kotresh, deputy environmental officer, Karnataka State Pollution Control Board. “Environmental issues of MLs, irrespective of the mining stretch, fall within the ambit of MoEF and KSPCB has no power to act on mining leases in Andhra Pradesh taking cognizance of environmental sensitivity in border villages,” he said.
Bellary steel firms spark layoff fears
Bellary steel firms spark layoff fears
Shivakumar G Malagi TNN
Bellary: Thanks to the global recession coupled with government’s decision to allow import of melting scrap, there is no single feel-good factor for employees of steel and sponge iron firms in this ore-rich region. They are counting their days as many steel firms are closing down and set to serve layoff notices to their employees soon.
Industry sources said the region’s major steel plant -JSW Steels, which had planned to expand its production capacity from the present four million tonnes per annum (mtpa) to seven mtpa by October and up to 10 mtpa by 2010, has shut down its 1.2-mtpa capacity blast furnace. After Diwali, the ghost of mass layoff began looming large over the employees.
Calling the furnace shutdown as ‘advanced maintenance shutdown’, Vinod Nowal, managing director (commercial), JSW, Torangal, says, “Now, the steel is not selling at global market. We decided to reduce production for at least two months since, we do not know the days ahead are good or bad.’’
But, insiders say that 20 percent of the production has been cut short.
On mass layoff speculations, Nowal said, “so far, we have not sacked a single person, but embarked upon optimizing the manpower by holding back all the fresh recruitment process for next two months.’’
According to labour union leaders nearly 20,000 skilled workers, most of them engineering graduates in their mid-30s working with steel plants set up on the bank of river Tungabhadra in Bellary and Koppal districts, may get pink slips if the recession does not show any sign of recovery
in the next fiscal quarter. After Diwali, mass lay-off has become a speculation among workers in many sponge iron firms in this steel zone that houses around 50 plants. “Apart from the sharp slump in steel offtake in global markets, Indian government’s decision to let import of melting scrap has virtually ‘killed’ the sponge iron plants,” says Mohammed Iqbal, MD, Hothur Ispat in Bellary. The firm has already shut down one of its two plants.
“Where would you sell the sponge iron when melting scrap is available for $ 150 which is little costly to sponge and a better quality commodity. Government should put 10-15 per cent import duty on importing melting scrap to give life to sponge iron units,” Iqbal explained.
Shivakumar G Malagi TNN
Bellary: Thanks to the global recession coupled with government’s decision to allow import of melting scrap, there is no single feel-good factor for employees of steel and sponge iron firms in this ore-rich region. They are counting their days as many steel firms are closing down and set to serve layoff notices to their employees soon.
Industry sources said the region’s major steel plant -JSW Steels, which had planned to expand its production capacity from the present four million tonnes per annum (mtpa) to seven mtpa by October and up to 10 mtpa by 2010, has shut down its 1.2-mtpa capacity blast furnace. After Diwali, the ghost of mass layoff began looming large over the employees.
Calling the furnace shutdown as ‘advanced maintenance shutdown’, Vinod Nowal, managing director (commercial), JSW, Torangal, says, “Now, the steel is not selling at global market. We decided to reduce production for at least two months since, we do not know the days ahead are good or bad.’’
But, insiders say that 20 percent of the production has been cut short.
On mass layoff speculations, Nowal said, “so far, we have not sacked a single person, but embarked upon optimizing the manpower by holding back all the fresh recruitment process for next two months.’’
According to labour union leaders nearly 20,000 skilled workers, most of them engineering graduates in their mid-30s working with steel plants set up on the bank of river Tungabhadra in Bellary and Koppal districts, may get pink slips if the recession does not show any sign of recovery
in the next fiscal quarter. After Diwali, mass lay-off has become a speculation among workers in many sponge iron firms in this steel zone that houses around 50 plants. “Apart from the sharp slump in steel offtake in global markets, Indian government’s decision to let import of melting scrap has virtually ‘killed’ the sponge iron plants,” says Mohammed Iqbal, MD, Hothur Ispat in Bellary. The firm has already shut down one of its two plants.
“Where would you sell the sponge iron when melting scrap is available for $ 150 which is little costly to sponge and a better quality commodity. Government should put 10-15 per cent import duty on importing melting scrap to give life to sponge iron units,” Iqbal explained.
Mining giants making the best of adversity
Mining giants making the best of adversity
Shivakumar G Malagi | TNN
Bellary: Sweet are the uses of adversity, is how mining giants in this ore-rich region, where several mining companies have shut down owing to a slump in iron ore export trade, are looking at it. They are acquire the mining leases of small and medium players at “realistic” prices.
With iron ore prices dropping to around Rs 500 from a high of Rs 2,500 by the end of October, small and medium scale mining firms with a leased area of 25 to 50 hectares, have closed down their mining activities and major players with three or four plants are reduced to one-plant operation and oneshift working schedule.
Of the total 102 mining leases in the Sandur-Hospet-Bellary mining belt, VSL Mining Company, Baldota’s MSPL Ltd, VESCo., Sesa Goa and public sector units —- NMDC, MML and TML —- were the giants in mining industry.
Apart from the near total closure in the China-bound export trade, small and medium miners have been affected badly by the 15% export duty and huge-margin increase in rail freight charges. Now, some new entrants into mining are said to be considering transferring their leases to big players to get onetime big returns.
“We will not see the price peak again, but it will pick up. So, it is a good time to acquire mining leases. Earlier, there was hype about prices and people’s expectation were high. With the fall in ore trade, a realistic valuation will come to mining leases now,” says Rahul N Baldota, president, Federation of Indian Mineral Industries. Asked whether his Baldota Groups MSPL Ltd had joined this bandwagon, he said: “It is a continuous process.”
With the strong hope of ore prices picking up, not only the region’s mining lords, but even agents of mining barons in Gulf-countries are camping in Bellary and Hospet and giving calls to miners whom they have studied and found to have been interested in leasing out their area for big money in bad times.
Industry sources say that prior to the year 2000, a 20-hectare lease in a forest area, was valued around Rs 50 lakh to Rs 1 crore and the same lease escalated to Rs 60 crore to Rs 80 crore post-2004, with the China-created boom in iron ore mining and increase in the forest department’s Net Present Value. “Now, also the mining lease prices have not come down too much and there is only a difference of 10%-20%, as every miner knows that prices will go up in the near future,” says Nizam, a mining consultant.
Shivakumar G Malagi | TNN
Bellary: Sweet are the uses of adversity, is how mining giants in this ore-rich region, where several mining companies have shut down owing to a slump in iron ore export trade, are looking at it. They are acquire the mining leases of small and medium players at “realistic” prices.
With iron ore prices dropping to around Rs 500 from a high of Rs 2,500 by the end of October, small and medium scale mining firms with a leased area of 25 to 50 hectares, have closed down their mining activities and major players with three or four plants are reduced to one-plant operation and oneshift working schedule.
Of the total 102 mining leases in the Sandur-Hospet-Bellary mining belt, VSL Mining Company, Baldota’s MSPL Ltd, VESCo., Sesa Goa and public sector units —- NMDC, MML and TML —- were the giants in mining industry.
Apart from the near total closure in the China-bound export trade, small and medium miners have been affected badly by the 15% export duty and huge-margin increase in rail freight charges. Now, some new entrants into mining are said to be considering transferring their leases to big players to get onetime big returns.
“We will not see the price peak again, but it will pick up. So, it is a good time to acquire mining leases. Earlier, there was hype about prices and people’s expectation were high. With the fall in ore trade, a realistic valuation will come to mining leases now,” says Rahul N Baldota, president, Federation of Indian Mineral Industries. Asked whether his Baldota Groups MSPL Ltd had joined this bandwagon, he said: “It is a continuous process.”
With the strong hope of ore prices picking up, not only the region’s mining lords, but even agents of mining barons in Gulf-countries are camping in Bellary and Hospet and giving calls to miners whom they have studied and found to have been interested in leasing out their area for big money in bad times.
Industry sources say that prior to the year 2000, a 20-hectare lease in a forest area, was valued around Rs 50 lakh to Rs 1 crore and the same lease escalated to Rs 60 crore to Rs 80 crore post-2004, with the China-created boom in iron ore mining and increase in the forest department’s Net Present Value. “Now, also the mining lease prices have not come down too much and there is only a difference of 10%-20%, as every miner knows that prices will go up in the near future,” says Nizam, a mining consultant.
Mining boom Crash to change political equations?
Crash to change political equations?
The economic downturn has impacted companies worldwide and the mining sector in Bellary is also facing the heat
Shivakumar G Malagi | TNN
Bellary: The global meltdown in commodity prices is likely to have a discernible impact on the political map of Karnataka, which has been redrawn recently by the power of Bellary’s mining lobby.
It isn’t just the ruling BJP party — riding on Operation Lotus orchestrated by the famed Reddy troika — that swept to power for the first time in the South on the back of surging iron ore prices. The Congress also has strong links to the power that flows from the bowels of the mines.
However, the dramatic fall in the fortunes of the ore — prices down from Rs 2000-2400 per tonne in 2004 to Rs 1,225 per tonne in July 2008, and to a shocking Rs 425 crore in mid-October; fall in mining activity by 50% in the Bellary-Hospet region, millions of tonnes of unsold stock — will have consequences that will play out in the political theatre in the coming months.
If the trend of depressed demand for commodities,combined with global financial upheaval, extends for a year or more, many political observers believe that the current Raj of miners-turnedpoliticians in state politics might wane dramatically by the next parliamentary elections. While it is too early to sing hosannas to the demise of mining money in state politics — after all, reserves built over a nearly decade-long boom in the iron ore industry will not dissipate overnight — it is inevitable that power equations will re-align.
And its impact will be felt across parties. The stakes are the highest for BJP, due to the role played by the Reddy brothers in pitchforking the party to power. Tourism minister Janardhan Reddy, revenue minister Karunakar Reddy, Bellary city MLA Somashekhar and their Man-Friday health minister B Sriramulu are currently the ‘mostinfluential’ miners-cumpoliticians.
None deny that the mining boom helped the Reddy brothers build the saffron party in a district that had previously elected a record 13 Congress MPs in succession. In the last assembly elections, eight of the nine constituencies voted BJP. The wheel of fortune — make it oretune — had come full circle. Interestingly, it was the Congress that spotted this opportunity first. It had a clutch of rich miners in its stable since before the mining boom in 2000. The fall in iron ore prices in Hospet is also likely to impact the Singh brothers — MLA Anand Singh of BJP and Deepak Kumar Singh of the Congress (who unsuccessfully fought as a rebel candidate in the polls), besides H R Gaviyappa of Congress who comes from a family of mining pioneers.
At Sandur, the hot-bed of rich ore deposits, it will affect the fortunes of Anil Lad, the Ghorpade family and MLA Santosh Lad.
It isn’t the Bellary MLAs alone, but some in neighbouring Koppal, Raichur, Chitraduraga, Gadag and Dharwad districts who owed much to the Bellary mining lords for their electoral victory, who will be monitoring the London Metal Exchange rather carefully these days.
The economic downturn has impacted companies worldwide and the mining sector in Bellary is also facing the heat
Shivakumar G Malagi | TNN
Bellary: The global meltdown in commodity prices is likely to have a discernible impact on the political map of Karnataka, which has been redrawn recently by the power of Bellary’s mining lobby.
It isn’t just the ruling BJP party — riding on Operation Lotus orchestrated by the famed Reddy troika — that swept to power for the first time in the South on the back of surging iron ore prices. The Congress also has strong links to the power that flows from the bowels of the mines.
However, the dramatic fall in the fortunes of the ore — prices down from Rs 2000-2400 per tonne in 2004 to Rs 1,225 per tonne in July 2008, and to a shocking Rs 425 crore in mid-October; fall in mining activity by 50% in the Bellary-Hospet region, millions of tonnes of unsold stock — will have consequences that will play out in the political theatre in the coming months.
If the trend of depressed demand for commodities,combined with global financial upheaval, extends for a year or more, many political observers believe that the current Raj of miners-turnedpoliticians in state politics might wane dramatically by the next parliamentary elections. While it is too early to sing hosannas to the demise of mining money in state politics — after all, reserves built over a nearly decade-long boom in the iron ore industry will not dissipate overnight — it is inevitable that power equations will re-align.
And its impact will be felt across parties. The stakes are the highest for BJP, due to the role played by the Reddy brothers in pitchforking the party to power. Tourism minister Janardhan Reddy, revenue minister Karunakar Reddy, Bellary city MLA Somashekhar and their Man-Friday health minister B Sriramulu are currently the ‘mostinfluential’ miners-cumpoliticians.
None deny that the mining boom helped the Reddy brothers build the saffron party in a district that had previously elected a record 13 Congress MPs in succession. In the last assembly elections, eight of the nine constituencies voted BJP. The wheel of fortune — make it oretune — had come full circle. Interestingly, it was the Congress that spotted this opportunity first. It had a clutch of rich miners in its stable since before the mining boom in 2000. The fall in iron ore prices in Hospet is also likely to impact the Singh brothers — MLA Anand Singh of BJP and Deepak Kumar Singh of the Congress (who unsuccessfully fought as a rebel candidate in the polls), besides H R Gaviyappa of Congress who comes from a family of mining pioneers.
At Sandur, the hot-bed of rich ore deposits, it will affect the fortunes of Anil Lad, the Ghorpade family and MLA Santosh Lad.
It isn’t the Bellary MLAs alone, but some in neighbouring Koppal, Raichur, Chitraduraga, Gadag and Dharwad districts who owed much to the Bellary mining lords for their electoral victory, who will be monitoring the London Metal Exchange rather carefully these days.
MINING MELTDOWN
MINING MELTDOWN
Demand for iron ore slumps across globe
Shivakumar G Malagi £ tnn
Bellary: “Sell at $60 per tonne or dump it in the sea” — this is what Bellary miners are hearing from global buyers for their hitherto prized commodity, iron ore.
At ports in China and Hong Kong, millions of tonnes of Bellary ore is lying idle. The scene is eerily similar in domestic ports; at Chennai, Visakhapatnam, Krishnarajapatnam, Goa, Karwar and Mangalore, almost every major miner has ‘unsold’ stock of 3-4 million tonnes of ore.
Bellary-Sandur-Hospet ore belt that annually produced an average of 40 million tonnes of ore since 2003 has witnessed a sharp decline in production over the past three months. “Average production of ore in this region was 3-4 million tonnes per month, but after July 2008, it was around 1.5-2 million tonnes. This includes domestic consumption and exports. Mining activity has come down nearly 50% in the last three months,” says B N Shankar, deputy director, DMG, Hospet.
Not many Bellary miners envisaged a slowdown in China’s import of iron ore, partly due to constraints from domestic factors like increase in rail freight rate and restriction by ports in handling ore.
Insiders say the export of ore could drop by 10-15% a year, given the demand slump, especially with China completing its Olympic related-infrastructure projects. “Now, we are left only with the option of dumping ore in the sea as we can’t bear the international port charges. I do not see Bellary ore getting high rates again within a year,” was the rather dramatic statement of the manager of a mining firm in Sandur who toured Chinese and Hong Kong ports.
Steel producers are looking to cut costs, further affecting ore producers. “We are rigorously working to reduce costs. With ore prices coming down 50%, suppliers are not responding to the situation, they are in shock. Everybody has to reduce costs and face the crisis to survive. Otherwise, it leads to demoralization,” said Vinod Nowal, director (commercials), JSW Steels.
Mines and Minerals Transport Corporation’s prices for ore it buys from miners for export had ranged between Rs 2,400 to Rs 2000 per tonne since 2004. Post July 2008, it fell sharply to Rs 1,225 and on October 16, it was a mere Rs 425, almost the price of sand.
Apart from general economic slowdown, miners blame the ‘steel lobby’ for the crash in the Bellary boom. “The strong steel lobby succeeded in pressuring the Union ministry of commerce, mines and steel to levy a 15% export duty on ore, that has literally killed the mining industry,” remarks Hothur Abdul Wahab, former president of All India Mine Owners and Suppliers Association.
In fact, miners says, steel companies had no reason to demand restriction on exports and it was only lower-grade ore — fines — that was being exported which domestic steel makers don’t use.
Demand for iron ore slumps across globe
Shivakumar G Malagi £ tnn
Bellary: “Sell at $60 per tonne or dump it in the sea” — this is what Bellary miners are hearing from global buyers for their hitherto prized commodity, iron ore.
At ports in China and Hong Kong, millions of tonnes of Bellary ore is lying idle. The scene is eerily similar in domestic ports; at Chennai, Visakhapatnam, Krishnarajapatnam, Goa, Karwar and Mangalore, almost every major miner has ‘unsold’ stock of 3-4 million tonnes of ore.
Bellary-Sandur-Hospet ore belt that annually produced an average of 40 million tonnes of ore since 2003 has witnessed a sharp decline in production over the past three months. “Average production of ore in this region was 3-4 million tonnes per month, but after July 2008, it was around 1.5-2 million tonnes. This includes domestic consumption and exports. Mining activity has come down nearly 50% in the last three months,” says B N Shankar, deputy director, DMG, Hospet.
Not many Bellary miners envisaged a slowdown in China’s import of iron ore, partly due to constraints from domestic factors like increase in rail freight rate and restriction by ports in handling ore.
Insiders say the export of ore could drop by 10-15% a year, given the demand slump, especially with China completing its Olympic related-infrastructure projects. “Now, we are left only with the option of dumping ore in the sea as we can’t bear the international port charges. I do not see Bellary ore getting high rates again within a year,” was the rather dramatic statement of the manager of a mining firm in Sandur who toured Chinese and Hong Kong ports.
Steel producers are looking to cut costs, further affecting ore producers. “We are rigorously working to reduce costs. With ore prices coming down 50%, suppliers are not responding to the situation, they are in shock. Everybody has to reduce costs and face the crisis to survive. Otherwise, it leads to demoralization,” said Vinod Nowal, director (commercials), JSW Steels.
Mines and Minerals Transport Corporation’s prices for ore it buys from miners for export had ranged between Rs 2,400 to Rs 2000 per tonne since 2004. Post July 2008, it fell sharply to Rs 1,225 and on October 16, it was a mere Rs 425, almost the price of sand.
Apart from general economic slowdown, miners blame the ‘steel lobby’ for the crash in the Bellary boom. “The strong steel lobby succeeded in pressuring the Union ministry of commerce, mines and steel to levy a 15% export duty on ore, that has literally killed the mining industry,” remarks Hothur Abdul Wahab, former president of All India Mine Owners and Suppliers Association.
In fact, miners says, steel companies had no reason to demand restriction on exports and it was only lower-grade ore — fines — that was being exported which domestic steel makers don’t use.
The Bellary ‘gold fields’
The Bellary ‘gold fields’
Shivakumar G Malagi | TNN
Bellary: Post-2003, Bellary’s iron ore mines have turned into ‘gold fields’. Thanks to the mining boom and sky-rocketing prices, miners here extract an average of 40 million tonnes annually.
Whenever there is talk about Bellary mining barons, names of the Lad cousins Santosh and Anil, and the Reddy brothers crop up. But, the fact is they are new entrants here, while several bigwigs are in business from before Independence. H G Ranganagoud family of Hospet, Maharaja of Sandur M Y Gorphade’s family and the Singh family of Hospet are some major players.
In 1900, British geologist Bruce Forte announced that the Bellary-Hospet-Sandur region
had huge deposits of iron ore. The district has eastern plain forests over 97,017 hectares (as of 2005-06) and ‘legal’ mining of iron ore and manganese is carried out on 6,012 hectares, which mainly falls under forest land and smaller portions of revenue land. According to the department of mines and geology (minerals) (DMG), Hospet, as many as 88 mining leases are allotted in Sandur-Hospet range.
In 1964, the annual ore production from the region was 4 lakh tonnes and the same continued till 2000. The policy allowing miners to export ore directly, coupled with huge demand from China at unbelievable rates — more than Rs 2,000 from Rs 200 per tonne of 65+ fe content iron ore — turned iron ore mines into gold fields. According to DMG statistics, the region annually produced an average of 40 million tonnes of ore since 2003. In 2007-08, 18 million tonnes was exported and 20 million supplied to domestic market.
Environment: Several years of mining has had an adverse impact on the environment of the region. A government-commissioned study by National Environment Engineering Research Institute (NEERI) in 2003 revealed that the levels of heavy metals in water and dust-related particulate matter in air exceeded national health standards. According to the report, the region’s wildlife, which once included robust populations of sloth bears, leopards, monitor lizards and white storks — all threatened or endangered species — “is now observed to be very poor”.
Apart from affecting wildlife and agriculture, the mining dust has produced a “significant rise’’ in bronchitis and other respiratory infections. It is also responsible for a staggering incidence of eye problems, mainly conjunctivitis.
L H Shivashankar, a localite, recalls his childhood hunting foxes and deer in Sandur’s sandalwood forests and Billikallu forest which was declared Daroji Bear Sanctuary. “The hilly area once inspired great movie director Puttanna Kanagal to shoot classic Kannada movie Manasa Sarovara. Now we can’t even grow maize here,’’ he said.
Illegal mining: Legal miners admit illegal mining has become rampant over the past five years. They allege that DMG officers overlap maps of lease holders and this leads to disputes among owners. Following a direction from the district in-charge minister G Janardhan Reddy, a task force headed by deputy commissioner B Shivappa has started raids on patta lands, where illegal mining is done. Four lakh tonnes of iron ore dug out of patta lands illegally was recently seized.
Nationalization: As expected, legal miners oppose nationalization of mines. Former president of All India Mine Owners and Suppliers Association Hothur Abdul Wahab, who is in the business since the 1960s, said: “Nationalization of coal mining is a big example as it proved to be a wrong decision. Of all the deposits in the country, coal mining forms around 60 per cent. With the nationalization, production under NMDC and MMTC units has drastically come down and illegal mining has reached its peak
Shivakumar G Malagi | TNN
Bellary: Post-2003, Bellary’s iron ore mines have turned into ‘gold fields’. Thanks to the mining boom and sky-rocketing prices, miners here extract an average of 40 million tonnes annually.
Whenever there is talk about Bellary mining barons, names of the Lad cousins Santosh and Anil, and the Reddy brothers crop up. But, the fact is they are new entrants here, while several bigwigs are in business from before Independence. H G Ranganagoud family of Hospet, Maharaja of Sandur M Y Gorphade’s family and the Singh family of Hospet are some major players.
In 1900, British geologist Bruce Forte announced that the Bellary-Hospet-Sandur region
had huge deposits of iron ore. The district has eastern plain forests over 97,017 hectares (as of 2005-06) and ‘legal’ mining of iron ore and manganese is carried out on 6,012 hectares, which mainly falls under forest land and smaller portions of revenue land. According to the department of mines and geology (minerals) (DMG), Hospet, as many as 88 mining leases are allotted in Sandur-Hospet range.
In 1964, the annual ore production from the region was 4 lakh tonnes and the same continued till 2000. The policy allowing miners to export ore directly, coupled with huge demand from China at unbelievable rates — more than Rs 2,000 from Rs 200 per tonne of 65+ fe content iron ore — turned iron ore mines into gold fields. According to DMG statistics, the region annually produced an average of 40 million tonnes of ore since 2003. In 2007-08, 18 million tonnes was exported and 20 million supplied to domestic market.
Environment: Several years of mining has had an adverse impact on the environment of the region. A government-commissioned study by National Environment Engineering Research Institute (NEERI) in 2003 revealed that the levels of heavy metals in water and dust-related particulate matter in air exceeded national health standards. According to the report, the region’s wildlife, which once included robust populations of sloth bears, leopards, monitor lizards and white storks — all threatened or endangered species — “is now observed to be very poor”.
Apart from affecting wildlife and agriculture, the mining dust has produced a “significant rise’’ in bronchitis and other respiratory infections. It is also responsible for a staggering incidence of eye problems, mainly conjunctivitis.
L H Shivashankar, a localite, recalls his childhood hunting foxes and deer in Sandur’s sandalwood forests and Billikallu forest which was declared Daroji Bear Sanctuary. “The hilly area once inspired great movie director Puttanna Kanagal to shoot classic Kannada movie Manasa Sarovara. Now we can’t even grow maize here,’’ he said.
Illegal mining: Legal miners admit illegal mining has become rampant over the past five years. They allege that DMG officers overlap maps of lease holders and this leads to disputes among owners. Following a direction from the district in-charge minister G Janardhan Reddy, a task force headed by deputy commissioner B Shivappa has started raids on patta lands, where illegal mining is done. Four lakh tonnes of iron ore dug out of patta lands illegally was recently seized.
Nationalization: As expected, legal miners oppose nationalization of mines. Former president of All India Mine Owners and Suppliers Association Hothur Abdul Wahab, who is in the business since the 1960s, said: “Nationalization of coal mining is a big example as it proved to be a wrong decision. Of all the deposits in the country, coal mining forms around 60 per cent. With the nationalization, production under NMDC and MMTC units has drastically come down and illegal mining has reached its peak
Olympics rises on Bellary ore
Olympics rises on Bellary ore
Shivakumar G Malagi | TNN
Bellary: The miners of Bellary are cheering China as it pulls out all stops to make Beijing Olympics a success. For, their ore has gone into building the incredible infrastructure required for the Games.
Many mammoth structures which have come up in Beijing over the past few years were built with steel made from iron ore mined in the Sandur-Hospet-Bellary belt. And, some mining lords plan to visit Beijing during the Games to see it for themselves.
Around the turn of the millennium, many miners were debt-ridden and many lease holders were not ready to pay the small amount for lease renewal as they thought it a ‘waste of money’. That’s also when construction for the Dragon Games took off in right earnest. Overnight, iron ore deposits turned into a goldmine. Bellary iron ore, which was quoted around Rs 150-200 per tonne till the end of 2003, shot up to over Rs 2,000 per tonne with Chinese ore traders eyeing the high quality ore. In 2005 alone, mine owners reportedly made profits of Rs 3,100 crore and illegal miners caused Rs 25,000 crore loss to the exchequer. The iron ore was trucked to Mangalore and Karwar ports and shipped to China.
In 1965, around 4 lakh tonnes ore was exported from this region through National Mineral Develoment Corporation and MMTC channels and the same system was followed till 2000 following the Mines and Minerals (Rules and Development) Act which banned direct ore export by miners. After these restrictions were removed and China’s demand soared, Bellary has exported around 40 million tonnes of ore every year since 2004. China’s steel mills and Hong Kong ore traders were big buyers and they stocked ore in huge amounts in ports and sold it to mills which supplied steel for construction of the Games Village and venues for sporting events.
Now, following speculation of a slump in ore prices after the Olympics, miners have reportedly stocked ore and accelerated excavation to cash in on the boom.
P S Prasad, deputy director, department of mines and geology, Hospet, said, “Any boom has to end some day. Currently, there’s no discernible decrease in exports. Last year, we exported 40 million tonnes and over the past three months alone, we exported 5 million tonnes. Of late, exports to Romania and Japan are picking up and other countries too are importing Bellary ore in small amounts,” he said.
Former president of All India Mine Owners and Suppliers Association Hothur Abdul Wahab said, “Rumours of the drastic decrease in ore exports will certainly not affect legal mine owners. Domestic ore consumption is witnessing a big surge with many steel plants coming up across the country.”
Shivakumar G Malagi | TNN
Bellary: The miners of Bellary are cheering China as it pulls out all stops to make Beijing Olympics a success. For, their ore has gone into building the incredible infrastructure required for the Games.
Many mammoth structures which have come up in Beijing over the past few years were built with steel made from iron ore mined in the Sandur-Hospet-Bellary belt. And, some mining lords plan to visit Beijing during the Games to see it for themselves.
Around the turn of the millennium, many miners were debt-ridden and many lease holders were not ready to pay the small amount for lease renewal as they thought it a ‘waste of money’. That’s also when construction for the Dragon Games took off in right earnest. Overnight, iron ore deposits turned into a goldmine. Bellary iron ore, which was quoted around Rs 150-200 per tonne till the end of 2003, shot up to over Rs 2,000 per tonne with Chinese ore traders eyeing the high quality ore. In 2005 alone, mine owners reportedly made profits of Rs 3,100 crore and illegal miners caused Rs 25,000 crore loss to the exchequer. The iron ore was trucked to Mangalore and Karwar ports and shipped to China.
In 1965, around 4 lakh tonnes ore was exported from this region through National Mineral Develoment Corporation and MMTC channels and the same system was followed till 2000 following the Mines and Minerals (Rules and Development) Act which banned direct ore export by miners. After these restrictions were removed and China’s demand soared, Bellary has exported around 40 million tonnes of ore every year since 2004. China’s steel mills and Hong Kong ore traders were big buyers and they stocked ore in huge amounts in ports and sold it to mills which supplied steel for construction of the Games Village and venues for sporting events.
Now, following speculation of a slump in ore prices after the Olympics, miners have reportedly stocked ore and accelerated excavation to cash in on the boom.
P S Prasad, deputy director, department of mines and geology, Hospet, said, “Any boom has to end some day. Currently, there’s no discernible decrease in exports. Last year, we exported 40 million tonnes and over the past three months alone, we exported 5 million tonnes. Of late, exports to Romania and Japan are picking up and other countries too are importing Bellary ore in small amounts,” he said.
Former president of All India Mine Owners and Suppliers Association Hothur Abdul Wahab said, “Rumours of the drastic decrease in ore exports will certainly not affect legal mine owners. Domestic ore consumption is witnessing a big surge with many steel plants coming up across the country.”
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