India's largest coal handling agency - Mjunction

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government pacify the land users unless they are duly compensated. Otherwise, law and order problem will continue to grow in such places leading to rebellious activities,” conceded the minister. A few concerns The ministry’s firm resolve to go ahead with the proposal comes hand in hand with a few concerns of the domestic coal users in the country. The major concern expressed by the industry and not ruled out by the minister is, of course, the possibility of an increase in domestic coal prices. “There may be a price rise,” the minister said, but insisted that the ministry will go ahead with the proposal anyway. “The government has taken this bold and important decision because it is only by compensating land losers adequately that you can pacify the unrest created by the Maoists and other such outfits.” “If this issue continues to be neglected, the situation may go out of control in the next few years,” he added. It is to be noted that Coal India Ltd (CIL), which accounts for 82 percent of the total domestic coal production, last increased its prices in October 2009, after a two-year gap. The domestic price of coal is currently quoted at about 40 percent lower than the current global prices. The other major concern, as pointed out by Tata Sons chairman, Ratan Tata, is that the coal mining companies may be tempted to under-report their profits. “This,” Jaiswal said, “the government is aware of”. Even if the miners indulge in misreporting their financial positions, they cannot escape the 10 percent royalty charge, he clarified. Moreover, since the proposal will be applicable to the captive coal block allocattees as well, this may come as a disincentive for prospective lease holders, many of whom expect to benefit from sale of excess coal production in future. The ministry is already easing the norms relating to such sale. Yet another concern is that contrary to the government’s hopes, such provisions may deter foreign companies who might be looking for an entry into the sector. Allaying such apprehensions, mines secretary, S. Vijay Kumar, said “The new Mining Act puts emphasis on the need for a social license to mine. We want them (the affected community) to feel that mining is not a threat to their existence but is possibly an opportunity for their development.” Lacking clarity The proposal, as it has been put forth, lacks clarity regarding which projects will come under its purview. While the minister asserts that “all coal mining projects – new and old” will be brought under the proposal, questions are being raised on how and whom to compensate in case of projects that were taken up decades ago. “While the government’s intention is good, it is not clear how people, displaced long ago, will actually benefit from this” asked the secretary-general of the Federation of Indian Mineral Industries (FIMI), R.K. Sharma. It is also not clear if the 26 percent profit sharing will come from the overall balance sheet of the mining companies or from individual projects. There is also doubt as to how far the spending by miners will actually reach the targeted community, they said. Vijay Kumar, however, defers in his views. “There is a very large set of people that now feel that the act is sufficiently reformist, and sufficiently detailed in respect to environmental and social issues, which the old act did not address,” he said. COAL INSIGHTS 48 October 2010
INTERNATIONAL Forum seeks Canada-India mining ties Coal Insights Bureau In order to exchange sector specific intelligence and develop strategies for cooperation in the mining and metals sector, a three-day Canada-India Mining and Metals Forum was held from September 27 to September 29, 2010, at Toronto. The forum offered a unique opportunity to connect with senior government and corporate executives from India and Canada on a one-on-one basis. Senior Indian executives and officials grabbed the opportunity to offer the latest market intelligence & layout latest regulatory framework for attracting Canadian mining companies. Canada India Foundation, a non-profit organisation dedicated to foster support for stronger bi-lateral relations between Canada and India, organised the conference in cooperation with the Prospectors and Developers Association Canada (PDAC). CIF had earlier organised the highly successful Canada India Energy Forum 2009. The plenary and panel speakers in the conference included the likes of S. Vijay Kumar, secretary, ministry of mines, government of India, one of the key policy-makers behind these regulations, along with Dr. Abdul Kalam, former President of India, Hon. Sandra Pupatello, minister of economic development and trade, government of Ontario, Hon. Michael Gravelle, minister of mines, government of Ontario as well as senior executives/officials from PDAC, Cameco, Worley Parsons, Avalon Rare Metals, Argex Mining, SENES, Toronto Stock Exchange, Deloitte, NRCAN, Mining Association of Canada, CAMESE, Process Research ORTECH, Borden Ladner Gervais LLP, Canaccord Genuity from Canada and ministry of mines, Steel Authority of India Ltd (SAIL), Hindustan Copper, National Aluminium Corporation (NALCO), National Mineral Development Corporation (NMDC), Coal India Ltd (CIL), Federation of Indian Mining Industries, Gem and Jewelry Export Promotion Council, Dept. of Mines and Geology, Andhra Pradesh, Kotak Mahindra, Electronics Recycling Association and Fifth Generation from India. Speakers from several other major Canadian and Indian companies also graced the occasion and offered valuable advice and feedback. The potential for trade in minerals and metals between Canada and India still remains largely unexploited. CIF organised the Mining and Metals Forum 2010 with a hope to change this scenario. The Forum sought to demystify the challenges surrounding the emerging investment opportunities flowing in and out of India, with Canadian mining investors and corporate leaders expected to hear first-hand from senior Indian government officials on the latest regulatory and policy developments in this regard. It also aimed at promoting Canada's knowhow, experience and technical expertise across the entire value chain of mining activities including mining finance, M&A, governance and sustainable development. According to the co-chair of the Forum and Partner at Borden Ladner Gervais LLP, Manoj Pundit, "If a Canadian mining company or investor is seeking to better understand what the Indian market is looking for, this is the conference for them. It offers the necessary information as well as the connections." He also said that “India is one of the world’s strongest economies with a rapidly burgeoning demand for natural resources and commodities, an emerging industrial base and technology/knowledge-based economy. Canada and India are natural partners within the mining sector”. He further added, “The potential for these two countries to share their resources and expertise for mutual benefit is immense as evidenced by recent acquisitions of Canadian companies Dofasco and Algoma Steel, respectively, by ArcelorMittal and Essar Steel, two global giants with origins in India”. Another co-chair of the Forum and Vice-Chairman/CEO, Process Research ORTECH Inc., Dr. V.I. Lakshmanan, said that "India offers a burgeoning demand for non-ferrous, precious metals, uranium, coke and potash. Indian conglomerates are also investing globally to acquire new resource bases. As mining leaders, Canadians need to better understand the opportunity India offers and make the most of it." According to him, Canada is the world’s largest repository of end-to-end domain knowledge and expertise within the mining and metals sector, covering the full range of resourcerelated activities from prospecting and exploration to mining operations, commodities and market development and world class legal, M&A and financing capabilities. Canadian mining history is rich with examples of explorers starting as prospectors and becoming mining magnates controlling and running global mining companies. The Toronto Stock Exchange (TSE) is the leading market for mining and natural resource stocks with more than 60 percent of the world’s public mining companies being listed in it. Canada India Mining and Metals Forum 2010 was an excellent attempt to provide the framework for the development of enabling strategies and policies by stakeholders from both countries in the mining sector. The Forum was preceded by an evening reception and comprised focus sessions on iron and steel, non-ferrous and light metals, uranium, coal, gold and diamond, metals trading, sustainable development, recycling, governance and public policy concluding with a panel session to develop Going Forward strategies, which will be summarised in a report to be presented to all stakeholders. Canada India Foundation aims to continue to highlight opportunities for Canada India collaboration through thematic Forums such as the Energy Forum and the Mining and Metals Forum, in the coming years. COAL INSIGHTS 49 October 2010
Page 3 and 4: Chief Editor Rakesh Dubey, Tel: +91
Page 5 and 6: India’s largest coal handling age
Page 8: Cover Story INDUSTRIAL GROWTH INDIC
Page 12: Cover Story India, China lead globa
Page 16: Cover Story Beml plans to double tu
Page 20: Cover Story complete longwall minin
Page 23 and 24: coal market fundamentals Coking coa
Page 25 and 26: Feature Competitive bidding: Will i
Page 27 and 28: Feature allotment of captive coal b
Page 29 and 30: Feature Coal ministry puts illegal
Page 31 and 32: Feature Coke shortage may hamper st
Page 33 and 34: Feature How coke making evolved Tho
Page 35 and 36: Feature Cement makers to hike price
Page 37 and 38: Feature increased imports, which is
Page 39 and 40: Feature Forestry clearance delays m
Page 41 and 42: Feature embarked on a massive affor
Page 43 and 44: Feature India misses Sept power gen
Page 45: government Coal ministry firm on pr
Page 51 and 52: INTERNATIONAL UAE 269,462 331,688 1
Page 53 and 54: INTERNATIONAL EIA raises 2010 US co
Page 55 and 56: Expert Speak Heat recovery chinese
Page 57 and 58: Expert Speak Refractory lining work
Page 59 and 60: Expert Speak and in a hard copy for
Page 61 and 62: CORPORATE We have already commissio
Page 63 and 64: CORPORATE Cil in top league after i
Page 65 and 66: CORPORATE Banks not tapped for capt
Page 67 and 68: Logistics down rates and increased
Page 69 and 70: Power sector update PROGRAMME AND P
Page 71 and 72: Power sector update CAPACITY ADDITI
Page 73 and 74: Power sector update Northern WESTER
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Page 84: E-Auction data Month Details of e-A
Page 88 and 89: All India coal data - August 2010 N
Page 90: port DATA Major Ports Through Which

India's largest coal handling agency - Mjunction

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