Minerals | SabrangIndia News Related to Human Rights Wed, 02 Aug 2023 08:41:50 +0000 en-US hourly 1 https://wordpress.org/?v=6.2.2 https://sabrangindia.in/wp-content/uploads/2023/06/Favicon_0.png Minerals | SabrangIndia 32 32 Behind the violence, strip-mining hills and forests for minerals: Manipur https://sabrangindia.in/behind-the-violence-strip-mining-hills-and-forests-for-minerals-manipur/ Tue, 01 Aug 2023 04:41:01 +0000 https://sabrangindia.in/?p=28841 There is clearly another environment-related sinister angle to the three-month long Manipur violent conflict that will have a huge impact on the ecologically fragile hill lands of Manipur; extractive mining on lands controlled by indigenous people (vast majority of them Christian) for high profit: mining limestone, chromite, nickel, copper, malachite, azurite, magnetite in violation of Forest Rights Act, 2006 and the statutory rights of indigenous peoples of the state

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It appears to be clearly a political game to not just gain power, but also make big money, and secure permanent political positions in the state. The March 2023 high court decision, unilaterally granting ST status to the majority Meiteis (presently stayed by the courts, deferred by the government after violence erupted) would have allowed them to purchase land in the hills, previously restricted for them.

Indigenous communities, Kuki-Zo and Nagas, have opposed selling their land to corporations for mining and other activities, as is their constitutional right. The legitimate and prevalent fear is that after obtaining ST status, the Meitei community, being wealthier and more stable, could then lease acquired land to corporations, which is against the interests of the environment, ecological stability and the land and cultural rights of Manipur’s indigenous peoples. There are concerns that the government might grant ST status to the Meitei to enable their influence in these resource-rich areas, benefitting both parties and corporate allies of the Biren Singh government and the union government. Presently under the Forest Conservation (amendment) Act 2023, passed by the Lok Sabha and awaiting deliberations in the Rajya Sabha, the union government has been granted unilateral (some argue, unchecked authority) to ciphon off prescious forest land. Similarly, uncontested 2015 and 2021 amendments to the Mines and Minerals Development and Regulations Act, (MMDRA) 1957 have taken away the unqualified rights of indigenous peoples over the surface lands they have lived on for generations

Extractive industries and their impact

Over recent decades, the pursuit of extractive industries has become increasingly evident in the state of Manipur, as several mining companies have engaged in survey work and exploration processes. This development has been facilitated by India’s Act East Policy and the relaxation of investment and environmental norms governing mining. The focus has been and is is primarily on mining Chromite and Limestone in the eastern section of the state, specifically in Ukhrul, Kamjong, Tengnoupal, and Chandel districts, which border Myanmar.

The Geological Survey of India (GSI) and the Department of Industries and Commerce (DIC), Government of Manipur, have intensified their survey efforts to locate minerals in the region. To promote and support extractive industries in the state, the Manipur government developed the Industrial and Investment Policy of Manipur in 2013, which was re-notified in 2017. The policy aims to create robust infrastructure facilities, provide incentives, and offer marketing support to industries. It also seeks to enhance the availability of raw materials, optimize the utilization of the state’s natural and human resources, and attract investments. In addition, the Manipur Minor Mineral Policy was formulated in 2018 to further address these objectives.

Mineral resources in Manipur 

The Geological Survey of India (GSI), under the Ministry of Mines and Minerals, Government of India (GOI), has conducted comprehensive geological mapping of Manipur. This endeavour has led to the identification of several valuable minerals in the region, including limestone, chromite, nickel, copper, malachite, azurite, magnetite, and various platinum group elements (PGE).

According to GSI estimates, there are substantial limestone deposits in Manipur, amounting to around 20 million metric tonnes. These deposits are found in villages such as Hundung, Phungyar, and Mailiang in Ukhrul district, as well as in Toupokpi, Chakpikarong, Pallel, Nungphura, Nungpal, Sajik Tampak, and Haikot in Tengnoupal and Chandel Districts. The data suggests that potential Mineral resources are concentrated in areas with over an 80% Christian population. This section has been –not necessarily coincidentally—the targeted community in the present violence. The areas that have experienced the most intense targeted violence are hilly districts and the population concentration in these districts are predominantly Christian at around 80-85%.

Layered motives behind the violence

Manipur erupted into sectarian targeted violence on May 3. The divisions between local ethnic tribes and communities have been exacerbated by an insensitive, callous state. On a closer and deeper look at the deep pockets and economic interests eyeing land and hill control, it is clear that sinister games are being played behind the ongoing conflict in Manipur, that foster hatred and division but also go beyond.

Regarding chromite resources, the Indian Bureau of Mines’ 2013 report indicates that Manipur holds 6.66 million tonnes of chromite within the ophiolite belt. The distribution includes approximately 5.5 million tonnes in Ukhrul and Kamjong Districts and 1.1 million tonnes in Tengnoupal and Chandel districts. Notable chromite reserves are located in Phangrei, Lunghar, Singcha-Gamnon area of Ukhrul District, and Kwatha, Sibong, Khudengthabi, Minou-Mangkang, etc., in Tengnoupal and Chandel areas.

Mining leases and environmental unconcern

Between 2007 and 2012, the Indian Bureau of Mines and the Ministry of Mines granted mining leases to private companies in the ophiolite belt of Ukhrul and Chandel districts in Manipur. The MoUs signed between the Government of Manipur (GOM) and these companies involved significant land transfers and mining rights. In November 2017, during the Northeast Business Summit in Imphal, several MoUs were signed for mining activities, leading to intensified survey works and extraction efforts. Nine private companies signed MoUs with the GOM for chromite and limestone exploration and mining.

2012-2023

Prior to 2012, mining contracts in Manipur were awarded to various companies such as Anand Exports Ltd, Odisha (Jitendra Mohapatra and Mohammad Kutabuddin), Visa Steel Ltd, Odisha (owned by Vishambar Saran), and Balasore Alloys Ltd, Odisha, mainly in Ukhrul and Kamjong districts. Later, additional companies like Gulf Natural Resources Pvt Ltd, Rourkela Minerals Pvt. Ltd (owned by Sambhu Dayal Agarwal and Rabindra Bisvas Chandra), and Sarvesh Refractories Pvt. Ltd (owned by Ashok Agarwal) were also granted contracts for chromium mining in Manipur.

In November 2018, the Directorate of Trade, Commerce, and Industries (DTCI) of the GOM submitted a draft Cabinet Memo proposing a 47-acre area of the former Hundung Cement Factory to be leased to M/s. Ramung Enterprises Imphal, for establishing a 400 Tonnes Per Day (TPD) Cement Plant. A cabinet decision on February 18, 2019 authorized the setup of two cement plants, with capacities of 500 TPD and 400 TPD, respectively, through Public Private Partnership. Ramung Enterprises, Imphal, and Sukhdev Mining & Industries Private Limited, Madhya Pradesh, applied for operating the cement plant.

Facor Alloys Ltd from Andhra Pradesh had its prospecting license for chromite in Lunghar, Sihai Khullen, Nungbi, Ukhrul District renewed for two years from 6 April 2018 by DTCI, Manipur. They also applied for a mining lease for chromite in Lunghar on 14 December 2018, recommended by DTCI to the Ministry of Mines after scrutiny by the State Level Committee. DTCI signed mining agreements with M/s. Sarvesh Refractory Pvt. Ltd for mining at Lunghar village and with M/s. Rourkela Mineral Company Pvt. Ltd at Shingcha-Gamnom on 23 February 2019 to commence chromite mining operations. The mining agreements made by the Government with companies lack the free, prior, and informed consent of villagers.

The Forest Conservation Act, 1980 (FCA, 1980) regulates the diversion of forests for non-forest activities, necessitating prior clearances from the Ministry of Environment and Forest – Climate Change (MoEFCC). The FCA, 1980 (before the 2023 amendments) , along with the Forest Rights (Recognition of Scheduled Tribe & Other Traditional Forest Dwellers on forest) Act, 2006 (FRA, 2006), operates through corresponding rules and guidelines. Under Section 2 of the FCA, 1980, specific guidelines state that the State Government cannot proceed without the Central Government’s approval in activities such as de-reservation of reserved forest land, non-forestry use of forest land, assigning forest land to any private entity not owned/managed/controlled by the state government, and clearing naturally grown trees in a forest land for reforestation purposes.

Conflicting legislation & Indian Constitution

There have been several areas of confrontation between acts that allow mining (mining acts) and court’s judgments with regard to ownership of mineral resources and implementation of environmentally-friendly ‘Green laws’. These contestations are the reasons why so many controversies have dogged this sector. Section 24A (2) of the Mines and Minerals Development and Regulations Act, (MMDRA) 1957 states that it is Adivasi (the tribal) or indigenous peoples are the occupiers of surface of the land in the context of social, cultural, religious, economic, tradition and usufructs of tribal forested land.

On the other hand, constitution of India under Sl. No. 54 of the Central list in the VIIth Scheduled, circumscribes the states on legislation but will be bound by the Central legislation. Overall power of controlling and decision making for major minerals are vested with the Central govt. Rules 15 of the MMDR Act, 1957 that also gives power to the state Govt. to make rules in respect of minor minerals only.

The legal issues and conflicts relating to mining do not end there. The Supreme Court (SC) of India, in an order dated July 16, 2013 stated that, “Ownership of minerals should be vested with the owner of the land and not with state govt.” It is also worth mentioning the SC judgment on Samata Bauxite Mining case, 1997, clearly recognised the rights of the tribal on land stating non-transferable to non-tribal and so cannot be leased or handed over for mining.

In another relevant case, the National Green Tribunal (NGT) halted the Odisha Bauxite Mining project based on forest rights of the Scheduled Tribe & Other Traditional Forest Dwellers in the line of socio-cultural and religious perspective. Moreover, as per provision of V & VIth Scheduled of the Indian constitution, it is the Autonomous District Council (ADC) has the absolute right to decide in this regard.

But a union government that cares little for the environment and or the Constitution, has, first in 2015 and then in 2021 simply amended the law through its existing brute majority in Parliament.
First, amendments of MMDRA, 1957 have been made in 2015 known as MMDR Act 2015. This act was countered for empowering central govt over states. State Governments are entitled to only clerical paperwork making the states more dependent on central govt. Also there has been various criticisms on the introduction of the MMDR Amendment Bill 2021. The act faces stiff opposition from quarters because of allowing the government to overrule the FRA 2006 and provide a short cut system of mining license for mineral exploration and clearances.

This amendment provides rights to take up any mining activities immediately as soon as gas, oil and other ores are discovered. The Act of 2021 has utterly diluted the powers of Gram Sabhas to give consent or stop mining in its respective areas. Thus, all the amendment acts of 2015 and 2021 enhanced the controlling attorney of the Central Govt., more freedom given to mining companies and casted out the rights of the communities who literally owned resources.

Who benefits?

In Kwatha Village, Gulf Natural Resources Pvt Ltd (GNRPL) (Dina Chandra Singh and Abdallah Al Hady owns the company) based in Gurgaon signed a deed of agreement for chromite mining on October 5, 2016, where the village was conditioned to hand over the surface rights of about 15 sq. Km of land containing the chromite bearing Ophiolite belt to the private company, GNRPL, spanning from Namchumpha Lok in the South to Sadangching in the North and lying in the East and West of Kwatha village.

On February 23, 2019, Rourkela Minerals Company Pvt Ltd (ROMCO) (Sambhu Dayal Agarwal and Rabindra Bisvas Chandra owns the company) signed a 20-year mining lease agreement with the Government of Manipur for an 85.0-hectare area in Shingcha-Gamnom village, Ukhrul district. The mining project, costing approximately Rs 50 crore, had its approvals and lease granted by DTCI, Manipur, and the Ministry of Environment and Forest and Climate Change (MoEFCC).

Sarvesh Refractory Pvt Ltd (owned by Ashok Agarwal) has been contracted by GOM to mine Chromite from Lunghar and Sirohi Villages of Ukhrul District. The mining lease area is 132.781 hectares in Shirohi-Lunghar Village with a targeted production capacity of 10,531 tons per annum. The company is in the process of seeking environment clearance from the MOEFCC for mining.

The GOM has leased out the limestone quarry to M/S Super Ores and Mines Private Limited (owned by Sanjay Sharma and Suresh Sharma), based in Guwahati, for 20 years. The firm aims to extract at least 500 tons of limestone daily. Additionally, the Satyam Group of Industries has proposed to set up a cement factory at the site of the former Hundung Cement Factory. The DTCI of GOM granted an area of 47 acres to Ramung Enterprises, Imphal, for setting up a 400 TPD Cement Plant on November 18, 2018.

Mailiang Village, inhabited by the Tangkhul tribe in Kamjong district, Manipur, has been targeted for limestone mining and the establishment of a factory. The Satyam Company and the Government of Manipur have conducted testing and survey work to assess the limestone deposit for mining in the village. The survey works have intensified since 2012, and the DIC, Manipur, has already established a store and a workers’ camp with basic machinery for the mining project covering an area of approximately 50 square kilometers.

However, villagers lack essential information about the mining activity, such as the Detailed Project Report and Environment Impact Assessments. In the significant judgment of the Principal Bench of the National Green Tribunal (NGT) in Om Dutt Singh Vs. State of Uttar Pradesh and Ors. (in O.A. No. 521 of 2014), May 7, 2015, projects of vast magnitude and impact should be appraised in terms of its environmental impact. Mining, including underground mining is a non-forestry activity, the Forest Conservation Act, 1980 (FCA, 1980) regulates the diversion of forests for non-forest activities, necessitating prior clearances from the Ministry of Environment and Forest – Climate Change (MoEFCC). The FCA, 1980, along with the Forest Rights (Recognition of Scheduled Tribe & Other Traditional Forest Dwellers on forest) Act, 2006 (FRA, 2006), operates through corresponding rules and guidelines. Under Section 2 of the FCA, 1980, specific guidelines state that the State Government cannot proceed without the Central Government’s approval in activities such as de-reservation of reserved forest land, non-forestry use of forest land, assigning forest land to any private entity not owned/managed/controlled by the state government, and clearing naturally grown trees in a forest land for reforestation purposes. The proposed amendments to FCA 2023 passed rather undemocratically in the Lok Sabha (pending discussions in the Rajya Sabha) bequeath powers to the union of India related to land within 100 kilometres of the international borders making Manipur and the rest of India’s north eastern states extremely vulnerable.

Health & environmental impact

The pre-feasibility study report (PFR) prepared by the mining company wrongly claimed that the mining lease area at Lunghar is devoid of forest and agricultural land, despite it being one of Manipur’s most forested regions[1]. The area is ecologically sensitive, with rare species like the “Siroy Lily” found nearby. Similarly, the EIA falsely stated the absence of forest and community land. Manipur is among the ecologically sensitive regions in India as per the reports of international union of conservation of nature. Significantly two

The Indigenous communities are heavily depend on this land for their survival and livelihoods. The PFR also overlooked the settlement and livelihood dependence of the Tangkhul and Kuki tribes, recognized as tribals by the Government, raising concerns about disregarding the impacts of mining on them. Additionally, the mining plan should have sought consent from the Hill Area Committee (HAC) under Article 371 C of the Indian Constitution, but this process was neglected in hill areas, leading to land grabbing issues.

Mining plans in Manipur lack proper environment and forest clearances by companies, M/s Rourkela Minerals Company Pvt Ltd. from Odisha, M/s Sarvesh Refractory Pvt Ltd., M/s Gulf Natural Resources Private Limited including the project in Singcha, were reportedly approved without receiving such clearances. RAMCO’s pre-feasibility study for chromite mining in Singcha – Gamnon allegedly erroneously stated the absence of forest areas. Extensive mining operations in various regions like Kwatha, Singcha – Gamnon, Mailiang, Hundung, Phangrei, and Lunghar have the potential to seriously impact villagers’ livelihoods while benefiting mining companies.

Health impacts, especially related to Chromium mining, have, too, not been adequately addressed (Chronic inhalation of Cr (VI) compounds raises the likelihood of lung, nasal, and sinus cancer. Contact with Cr (VI) compounds can cause severe dermatitis and painless skin ulcers. Additionally, chromium compounds can act as both sensitizers and irritants[2]).

Adivasi, Indigenous peoples protest

The abandoned Chromium mining plan in Phangrei faced local protests On September 27, 2020, the villagers of Shingcha, Kamjong district, convened an Emergency Assembly and decided to oppose the proposed chromium mining plan in their village. Similarly, on October 3, 2020, the Rilram Area Maring Organisation (RAMO), Tengnoupal district, unanimously resolved to disallow any No Objection Certificate (NOC) or activities related to mass chromite mining.

Furthermore, on October 8, 2020, the village chiefs of Molnoi, along with representatives of students’ and women’s organizations in Tengnoupal district, resolved to oppose any mining in Manipur without acknowledging the people’s rights over their land, resources, and consent. Adding to this, on November 27, 2020, the Tangkhul Naga Long (TNL) expressed serious concern and called for an end to mining in Ukhrul and Kamjong districts on health, social, and environmental concerns. As Jejo Themson writes, “In yet another development, the Tangkhul Naga Long (TNL) on 27th November, 2020 expressed its grave concern and called to desist mining in Ukhrul and Kamjong districts…. and concerned villagers in Manipur especially in the hill districts against the proposed chromium and limestone mining. The main reason behind is either due to fraudulent clearance undermining the rights of the resource owners or due to complete absence of such mandatory clearance. The concerned villagers neither have detail knowledge about mining plan nor were consulted, confirming that no consent ever sought from the indigenous community so far.”

“This is the prime factor why the villagers of Shingcha, Kamjong district, in its Emergency Assembly held on September 27, 2020, resolved to stand against the proposed chromium mining plan at Shingcha village. Further, the Rilram Area Maring Organisation (RAMO), Tengnoupal district on October 3, 2020 unanimously resolved to prohibit any forms of No Objection Certificate (NOC) or agencies or departments related to mass mining of chromite. There is clearly another environment-related sinister angle to this conflict that will have a huge impact on the ecologically fragile hill lands of Manipur.

Assessing impacts from Chromium mining in India, especially in Sukinda, Odisha, where the largest operations exist, would be beneficial in understanding potential impacts in Manipur. Sukinda’s chromite mines have caused severe pollution and contamination, with toxic hexavalent chromium posing cancer risks[3]. Companies involved in contamination in Sukinda, like Balasore Alloys Ltd., have signed MoUs for chromite mining in Manipur.

India’s fast deregulation of policies on land, forest rights, environment clearances, and mining, along with privatization of the mining sector, reflects the government’s neoliberal approach in extractive industries. The 2015 Mining and Minerals (Development and Regulation) Amendment Bill granted more privileges to mining companies, including an automatic extension of mining leases to 50 years without provision for community consultation.

The 2020 draft Environment Impact Assessment exempts mining activities from assessments before mining, while the Mining Notification 2020 incentivizes mining companies, disregarding traditional laws, tribal safeguards, and existing environmental measures. This pursuit of mining, leading to land, forest, and water body destruction, not only impoverishes communities but also contributes to climate change through deforestation, a significant source of greenhouse gas emissions, further undermining sustainable development goals.

Relying on chromite, limestone, and other mining for Manipur’s economic uplift is not a viable solution.

The negative impact of mining operations worldwide, especially in mineral-rich states like Odisha, Chhattisgarh, and Jharkhand, highlights the failure to benefit local communities. Experiences with companies like Vedanta show wealth consolidation among the rich while leaving affected communities impoverished and in conflict. Ownership of minerals should be vested with the owner of the land and not with state govt.”

It is also worth mentioning the SC judgment on Samata Bauxite Mining case, 1997, clearly recognized the rights of the tribal on land stating non-transferable to non-tribal and so cannot be leased or handed over for mining.

In the case of state of Kerela vs Jenins 2013 7SCR 863 where it was decided that the resources embedded in earth vests in owner of the land and state can not claim on it. As per the judgment of the Principal Bench of the National Green Tribunal (NGT) in Om Dutt Singh Vs. State of Uttar Pradesh and Ors., projects of vast magnitude and impact should be appraised in terms of its environmental impact. Mining, including underground mining is a non-forestry activity. In the case of Common Cause vs Union of India (Writ Petition N.o 114 of 2014), a decision by Justice S.A Bobde held that it is the duty of the mining company to re green the land with the resources that have been extracted out of it after the lease ends. On April 18, 2013, another significant Supreme Court ruling in the case of Orissa Mining Corporation Limited vs Ministry of Environment and Forest (Writ Petition Number 180 of 2011), declared that forest clearance for the mining project, previously revoked by the Environment Ministry in 2010, could only be granted with the consent of the Gram Sabhas, the local village councils. This judgment upheld the decade-long movement, drawing global attention, as Vedanta Ltd, an affiliate of billionaire Anil Agarwal’s Vedanta Resources Plc (FY 2017 revenue: $11.5 billion), was involved. The anti-mining protest was further bolstered by the popularity of the 2009 film Avatar, which depicted a ruthless mining corporation seeking to extract a valuable mineral from a moon inhabited by humanoid beings.

It has been well established worldwide that, mining companies often neglect community rights, leading to land grabbing, resource depletion, and exploitation of cheap labour, deepening poverty, and inequality among Indigenous peoples.

Manipur’s political economy will ultimately weaken with the plunder of land and resources, as the limited benefits from mining primarily benefit powerful elites, disproportionately compared to the loss for Manipur. Mining operations will exacerbate conflicts and human rights issues in the region.

Recognising the self-determined rights of Indigenous peoples to sustainably manage their land and resources is crucial, as corporate bodies tend to conceal profits and evade contributing to local economies. According to Article 26 of the United Nations Declaration on the Rights of Indigenous Peoples. They possess the right to the lands, territories, and resources that they have historically owned, inhabited, or utilized. They are entitled to ownership, utilisation, development, and governance of these resources

The government’s plan to extract mineral resources in Manipur through collaboration with corporations lacks proper impact assessment and disregards the free, prior, and informed consent of Indigenous peoples.

Before targeting Indigenous peoples’ land and resources for mining, oil exploration, or dam building, thorough assessments should be conducted with rightful community involvement to understand the wider and long-term implications.

The government should halt all mining plans until these processes align with the rights and development wishes of the Indigenous peoples of Manipur.


[1] An article, Mining and fraudulent clearances in Manipur Jajo Themson; http://epao.net/epSubPageExtractor.asp?src=news_section.opinions.Mining_and_fraudulent_clearances_in_Manipur_By_Jajo_Themson

[2] A paper by Alok Prasad Dad and Shikha Singh, Occupational health assessment of chromite toxicity among Indian miners, on the website of the National Library of Medicine (of the National Center for Biotechnology Information) details this deleterious impact.

[3] Ibid; https://pubmed.ncbi.nlm.nih.gov/21808494/


(The story has been authored by an intern with the organization, Nabeel Masood)


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Jharkhand Polls: Where Is the Mineral Wealth Going? https://sabrangindia.in/jharkhand-polls-where-mineral-wealth-going/ Thu, 21 Nov 2019 06:05:31 +0000 http://localhost/sabrangv4/2019/11/21/jharkhand-polls-where-mineral-wealth-going/ The state has 40% of the country’s mineral resources but it continues to be home to poorest people.

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Mining

According to various estimates, Jharkhand has 40% of the country’s mineral resources. It has 27.3 per cent of India’s coal reserves, 26 per cent of iron ore, 18.5 per cent copper ore, besides having deposits of uranium, mica, bauxite, granite, limestone, silver, graphite, magnetite and dolomite. It also has large quantities of stone, limestone and sand. Almost 20% of the state’s revenue arises from mining activities.

But despite this abundance, and despite mining having started as far back as the first decade of the 20th century, Jharkhand continues to be one of the poorest states in the country ranking low on various economic and social indicators. It was thought that after the state was carved out of Bihar in 2000, development will take place. But that also doesn’t seem to have happened. Why?

 

Disastrous Model

The main reason for this is that mineral resources were seen by the political rulers as something that has to be appropriated, or rather seized, and sold off. The people living on those lands were mostly seen as encumbrances – obstacles that had to be duped or coerced into giving way for big mining companies. Thus mining became an activity that was hostile to the people. They were evicted, turned into serfs, forced to migrate, or survive in inhuman conditions. This naturally led to resistance to mining and all the problems that follow.

Besides this, the other major fault in policy lay in handing over mines to private entities. The contradiction with people intensified as 3963 lessees and 6647 dealers took over mining and trading operations in the state. These were unscrupulous operators with only one objective – to make profit, come what may. As a result, the distance between mineral resources and people became even greater and the relations even more fraught.

Some may argue that the state government does earn royalties and fees from leasing out the mines, so what is wrong with this model? The answer is very simple: the state government (this one and previous ones) have fixed the game in such a way that only a small amount of royalties and other fees finally accrue to it, leaving the operators with even larger profits. As it is, royalty rates are low and mostly levied on pit mouth prices or even cost of production prices for captive mines. Even the CAG has castigated the Jharkhand state govt. for non- or short levy of royalties by applying incorrect rates, under-estimating production, not penalising late payments etc.

As a result, the richest mineral state is earning a paltry sum from various fees it charges from companies that are exploiting the minerals and selling them off for big profits. According to the latest Budget presented by the BJP ministry that rules Jharkhand, in 2018-19, Rs.6783 crore was the revenue (revised estimate) accruing to the Mines Dept. from various fees and rents. In 2019-20, the Budget hoped to collect Rs.8042 crore. In addition, sand extraction yielded revenue of Rs.299 crore in 2018-19 and was expected to yield Rs.362 crore in the current year.

These are paltry sums, nowhere near the actual final sale value of minerals that are being relentlessly extracted from the land in Jharkhand. Partly, they reflect the clout of mining industrialists who keep such rates low by pressurising the govts. But partly they also result from the rather low level of mineral extraction because of not taking the people in confidence and hence facing resistance to mining.

 

District Mineral Fund Sham

In 2016, the Modi govt. announced that in order to plough back some of the profits that mining activities generate, the mining operators will have to pay 10% of the royalties to a trust set up in each district. It was called the District Minerals Foundation (DMF). The funds thus collected would be used for such development work like providing piped water supply to communities, building roads and toilets, and so on.

Have a look at the fate of this program – called Pradhan Mantri Khanij Kshetra Kalyan Yojana or PM Mining Sector Welfare Programme – in Jharkhand. Remember, the state has been ruled by BJP since 2014, so there is complete political convergence with the BJP led central govt. in Delhi. No questions of any dissonance.

jhrknd.png

As you can see, just 24% of the funds thus collected have been used for the ‘developmental work’. This data is taken from the PMKKKY portal hosted by the Indian Bureau of Mines, under the Ministry of Mines. There is considerable confusion about the data with the Jharkhand mines dept. showing some other figures and not showing complete data. Expenditure figures are available only on the above quoted source.

Clearly, the whole thing has turned into a macabre joke. It seems all the projects sanctioned till date in Jharkhand – some 25,000 odd – are still in progress! In three years not a single one has been completed.

Meanwhile the state’s inhabitants continue to get ground down in abject poverty, face joblessness and the state has reported some of the most shocking numbers in terms of malnutrition, even starvation deaths. The coming elections may see the BJP state govt. dislodged, going by the widespread discontent, but a deeper relook is necessary at the mining and mineral policy if the people are ever to get the benefit of these resources.

Courtesy: News Click

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Chhattisgarh’s Mineral Wealth Not Benefiting People https://sabrangindia.in/chhattisgarhs-mineral-wealth-not-benefiting-people/ Tue, 13 Nov 2018 05:29:10 +0000 http://localhost/sabrangv4/2018/11/13/chhattisgarhs-mineral-wealth-not-benefiting-people/ The people of the state remain trapped in poverty as natural resources flow into corporate pockets.   Chatti Bariatu Mines   As the people of Chhattisgarh go to polls to elect another state Assembly and government, dominant political parties have completely ignored a vital question: what are they going to do about the state’s rich […]

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The people of the state remain trapped in poverty as natural resources flow into corporate pockets.
 
Chatti Bariatu Mines
 
As the people of Chhattisgarh go to polls to elect another state Assembly and government, dominant political parties have completely ignored a vital question: what are they going to do about the state’s rich natural resources? That’s because the current model of unbridled private exploitation of minerals, land and water, and the blind denudation of forests, is the favourite model of choice. And there is no plan of changing it.

Remember: Chhattisgarh has deposits of 28 minerals, including over 52 billion tonnes of coal (18% of India’s deposits), 2.7 billion tonnes of high-quality iron ore (19% of India’s deposits), and over 37% of India’s tin ore deposits, besides bauxite, limestone, dolomite, quartzite, etc. In 2016-17, some Rs 23,339 crore worth of mineral wealth was extracted from the state.

What do the state’s people get out of this? Have a look at the chart below which shows the value of minerals extracted and the revenue that the state government earned for the past few years.

CG%20Value%20of%20Minerals.png

As can be seen, roughly 16-17% of the value flows to state government coffers only. The rest of it is swallowed up by the predatory mining companies that had been granted leases of over 24,000 hectares of mining blocks till 2016, as per the Indian Bureau of Mines.  
India’s political establishment has created the impression that this is normal. How else will natural resources be managed if not by giving leases to private companies who will mobilise resources to extract the minerals and process them? But this is not the only way!
Consider this: the extraction of natural resources could have been executed and managed – in a much more sustainable way – by state agencies so that its benefits could have directly belonged to the people. After all, before the current hysteria for private sector began, India was mining coal and iron and all the other mineral resources.

This would have given an additional benefit: the coercive displacement of people from lands in order to get at the rich stores of minerals below it would have been – perhaps – tempered. It would definitely have been more subject to accountability and oversight.
But currently, such is the overwhelming desire of the state government – held by the Bharatiya Janata Party (BJP) since the state was hived off from Madhya Pradesh – to please powerful private entities that all rules and laws are reportedly broken to grab land from hapless villagers.

Perhaps, the state government has been spending a lot on social sector (education, health, etc.) or on general development programmes? A quick look at theRBI’s data on social sector expenditure as a share of the gross state domestic product (GSDP) shows that this spending has stagnated at around 11-12% for the past several years. So, the great growth rate of Chhattisgarh’s economy by over 10% in the last decade, spurred by mining and power plants and cement factories, has not meant any relief from grinding poverty in the state’s vast hinterland. Naya Raipur is, of course, on the road to becoming a smart city (whatever that means!) but in distant tribal hamlets and Dalit habitations, there is no change in life.

Chhattisgarh has also done well in terms of agricultural production, yet its farmers are seething with anger because their back-breaking labour is not worth much. The prices they get for their produce barely meet expenses.  The rural job guarantee scheme (MGNREGS) provides a daily wage of Rs.174 only. Last year, some 42 lakh persons worked at this wage in the scheme.

Had the resources of Chhattisgarh been used more equitably, 38% of children under 5 would not have been stunted, 42% would not be anaemic, nor would a stunning 47% of all women be anaemic, as per the latest data from National Family Health Survey-4. Female literacy rate in the state is just 66% and only 27% of women have had 10 years of schooling.

If the ongoing elections throw up a strange result, see it as a cry for help from the state’s people – they hardly have any choices as the dominant narrative is tilted against them.

Courtesy: Newsclick.in

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SC bats for Adivasis’ rights over natural resources, Govt disagrees https://sabrangindia.in/sc-bats-adivasis-rights-over-natural-resources-govt-disagrees/ Mon, 22 Jan 2018 12:20:47 +0000 http://localhost/sabrangv4/2018/01/22/sc-bats-adivasis-rights-over-natural-resources-govt-disagrees/ Some facts: The Central Indian States of M.P, Chattisgarh, Jharkhand, Odisha, Bengal are blessed with enormous amount of minerals, water sources and forests;                                                                    Adivasicommunities have for centuries lived, owned and used these natural resources; While enormous wealth is extracted from Adivasiland by the state and private companies, the people are being deprived of their rights […]

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Supreme Court

Some facts:

  1. The Central Indian States of M.P, Chattisgarh, Jharkhand, Odisha, Bengal are blessed with enormous amount of minerals, water sources and forests;                                                                   
  2. Adivasicommunities have for centuries lived, owned and used these natural resources;
  3. While enormous wealth is extracted from Adivasiland by the state and private companies, the people are being deprived of their rights over their natural resources;
  4. Many tribals are falsely implicated and arrested for daring to protest against the violation of their constitutional and human rights like the right to possess and protect their land and livelihood resources. Label given to them ‘naxal’ / ‘maoists’;
  5. 90% of so-called naxals are adivasis… but  90% of adivasis are not naxals;
  6. Currently thousands of Adivasi youth are languishing in the jails of Jharkhand as under-trials prisoners;
  7. Fake encounters and fake surrenders have become a norm;
  8. Trial of under-trial prisoners is deliberately prolonged because if they are tried, most will be acquitted.
  9. At long last, admitting a PIL on under-trial prisoners, Jharkhand  HC has directed state govt to provide detailed information about all under-trial prisoners in all the jails of Jharkand by January 2018

How does theJharkandgovt deal with so-called ‘naxals’?

  • Either make the naxals surrender or shoot them down in encounters” [the Internal Security Adiviser’s order to the police/para-military forces on April 2, 2015 at Rania, Jharkhand ]    In obeying this order, Jkd police and para-military forces claim that during 2017 they have arrested 608 ‘maoists’, 47 surrendered their arms and, and 12 maoists have been gunned down. They also have announced that they are all set to confiscate the property owned by top 40 Maoist leaders. The DGP rewarded each of the twenty Jharkhand Jaguar personnel with Rs, 10,000 cash and congratulated them for gunning down a maoist splinter group area commander a few days ago. [ Hindustan Times, Ranchi ed., Jan. 20, 2018].What a reward for killing people!

How does SC analyse the ‘naxal’ question?

  1. In the context of a writ against the purchase of tribal land in violation of CNT Act in Jharkhand  the SC observed “If tribals’ land is being sold illegally, then they (tribals) will turn into Naxalites…” [ SC verdict on , March 25 2014 on a PIL on illegal transfer of tribal land]
  2. In yet another judgment against Chattisgarh State arming some tribal youth as Special Police Officers to fight their fellow tribal brothers under the tag of SalwaJudum the SC observed  “ the fight against Maoist/Naxalite violence could not be conducted purely as a mere law and order problem to be confronted by whatever means the State could muster…The primordial problem lies deep within the socio-economic policies pursued by the State on a society that was already endemically, and horrifically, suffering from gross inequalities. Consequently, the fight against Maoists/Naxalites is no less a fight for moral, constitutional and legal authority over the minds and hearts of our people.” [NandiniSundar and Ors vs. the State of ChattisgarhSC/0724/2011]
  3. In reference to a case of a young tribal woman being paraded naked by the powerful section of a village in Maharashtra, the lower courts failed to give her justice, finally the SC came to her rescue and ordered severe punishment to the accused. The apex court observed: “ the most disadvantaged and marginalized in India are the Adivasis (STs), the descendants of the original inhabitants of India, and are the most marginalized and living in terrible poverty…They were slaughtered in large numbers, and the survivors and their descendants were degraded, humiliated, and all kinds of atrocities inflicted on them for centuries. They were deprived of their lands, and pushed into forests and hills where they eke out a miserable existence of poverty, illiteracy, disease, etc. And now efforts are being made by some people to deprive them even of their forest and hill land where they are living, and the forest produce on which they survive.” [SC:Kailas &Orsvs State Of Maharashtra, Criminal Appeal No. 11/2011]

The above testimonies are self-explanatory. They do not need any further comment.

May the conscience of the nation awake!
 

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How Every Goan Can Get Rs 9,000 Each Year https://sabrangindia.in/how-every-goan-can-get-rs-9000-each-year/ Sun, 21 Aug 2016 10:47:17 +0000 http://localhost/sabrangv4/2016/08/21/how-every-goan-can-get-rs-9000-each-year/ Citizens Rights and Exploitation of Resources: The Goan Case It doesn’t happen often but doesn’t it feel wonderful when occasionally your bank account gets credited by the government? Some of us will have enjoyed this sensation with our LPG subsidies (now withdrawn for many), or the occasional income tax refund.   But what I’m positing […]

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Citizens Rights and Exploitation of Resources: The Goan Case

It doesn’t happen often but doesn’t it feel wonderful when occasionally your bank account gets credited by the government? Some of us will have enjoyed this sensation with our LPG subsidies (now withdrawn for many), or the occasional income tax refund.
 

But what I’m positing is not occasional. It is a steady amount, paid every year, year after year, ad infinitum (well, for as long as you live!).
 
Sounds far fetched? Not really. Here’s how it would work –
 
Let’s start with a few facts. First is the fact that under Indian law, state government’s are the owner’s of mineral resources. However, governments own these in their capacities as Trustees for the people. In other words, the true beneficial owners of the resources are the people of the state.
 
Second, under Article 21 of the constitution future generations must have as much access to resources as our own. In other words, we are merely custodians of inherited resource wealth and cannot deplete the country of its resources leaving none of the value for our children. 
 
Now, as we know, Goa has rich deposits of iron ore. While much of these have already been extracted (the first mining concessions were granted by the Portuguese as early as 1929, though relatively modest amounts were extracted till the last decade), estimates of mineable reserves currently remaining in the ground are in the region of just under 600 million tons. In the years immediately prior to a 2012 Supreme Court judgment, huge amounts were being mined each year, which if continued at the same pace in future could have resulted in no ore being left after 10 years. However, the judgment limited future iron ore mining in Goa to 20 million tons per year. Now using this cap on the amount that could be mined per year in the future, and simply selling the right to mine for just (say) the next 12 years, based on long term average iron ore sale prices and percentages of value historically obtained by efficient governments, the Goa government could reasonably expect to earn approximately Rs 45,000 crores from the sale of future mining rights over this period (these estimates are taken from a letter sent to the Chief Vigilance Officer by the NGO Goa Foundation in June, 2015). If the money thus collected was conservatively invested to earn a return of (say) 3% above the rate of inflation, with just this 3% ‘real’ (i.e. excess) return being distributed to citizens as an annual dividend (and the remainder retained in the fund to effectively ‘inflation proof’ the principal amount for the benefit of future generations), an annual dividend of Rs 9,000 could be paid to each man, woman and child living in Goa today (assuming a population of 1.5 million). Voila, it’s as simple as that!
 
And this will not be the first time that such a thing has been done. The concept of permanent funds for mineral wealth is a well established one. Take the case of the US state of Alaska. Soon after the Trans-Alaskan pipeline system was opened, allowing Alaska’s vast reserves of oil to find their way to market, and on the back of a popular perception that the government had historically not managed the revenue from these reserves well, the state set up a permanent fund in 1976. This fund started distributing an annual dividend to residents in 1982 and has done so in every year since then. The most recent annual payment was USD 2,072 per head. To be eligible for the dividend an individual needs to establish that he or she has physically lived in the state for at least 185 out of 365 days of the calendar year preceding the date of the relevant dividend distribution (which typically happens in October each year).
 
By law, at least 25% of the Alaskan state’s oil revenues must be paid into the fund. The revenues of the fund go towards meeting the expenses of administering it (this is done by a state owned company which is operated at arms-length from the government of the day), retaining a portion within the fund as a hedge against inflation, and paying the annual dividend to residents.
 
Now let’s get back to Goa. During the years of peak iron ore prices (2004-2012) the state secured for its coffers approximately 3% of the (declared) value of iron ore extracted by private parties from within its boundaries. This came from levying royalties on miners, set as a percentage of the value of the ore that they sold. This very low percentage of the total value that was secured by the owners of the resource compares extremely unfavorably with instances where reasonably efficient owners have secured between about 50 and 75% of the value. 
 
Naturally, it would be wrong to assume that the full value of the resource can accrue to the state. After all it costs money to extract ore from the ground and sell it. Those doing so also need to earn a ‘reasonable profit’. So some of the value must accrue to the extracting parties. Taking this into account and assuming a generous profit to those parties, The Goa Foundation has estimated that during this 8 year period over Rs 50,000 crores (about 7.5 billion US Dollars) of value was lost to Goans due to the revenue system used by the state government. This is about twice the revenue that the Goa government earned from all sources during the period. Had this money been secured and invested in a permanent fund with 3% per year paid to residents as a dividend, it would have resulted in each Goan receiving Rs10,000 per year. The Rs 9,000 per year receivable from the sale of future mining rights, as previously mentioned, would of course come on top of this – so the dividend would grow as the pot grew. In short, what has happened in Goa in recent years amounts to a raw deal for the people on a massive scale.
 
But much of this is fairly well known.
 
In September 2012, following the report of a judicial commission (the so called ‘Justice Shah Commission), the Supreme Court banned mining in Goa. The judgment in April 2014 stated that a number of illegalities had occurred including mining after the expiry of leases (all mining leases expired by November 2007, yet mining continued until the Supreme Court order nearly 5 years later) and dumping waste outside mining lease areas, among others. It also specified that for mining to resume in the state fresh leases and environmental clearances would be required, an interim cap of 20 million tons per annum was placed on the amount that could be extracted each year, the government was required set up a permanent fund and to investigate and prosecute those who had broken the law.
 
Less than a year later, in January 2015 the central government issued an ordinance stating that henceforth all mining leases must be auctioned and no leases can be renewed on expiry (if desired, fresh leases could be granted following a fresh auction). However, in the weeks before the ordinance was promulgated, the government of Goa renewed the leases of 88 mines, extending them till 2027 while effectively backdating the renewals to 2007. It thus substantially weakened its position in recovering damages from parties that had been deemed to have mined illegally after 2007 as per the Supreme Court order.

Incidentally 56 out of these 88 leases were approved in the week before the ordinance was promulgated, presumably in the knowledge of the impending legislation. No auction was conducted.

So far so depressing.
 
But we should not be completely despondent. Much has been lost but there is still some hope for the future. If this (or a subsequent) government follows the orders of the Supreme Court it could attempt to recover at least some damages from those who acted illegally (bearing in mind that the Supreme Court pointed out several illegalities). Charges imposed could swell to nearly double the principal amounts if interest were taken into account. It could also cancel existing leases on the basis of current illegalities and auction new leases. This has recently been done in the case of coal blocks. The full proceeds from both sources of revenue could be put into a permanent fund. 
 
A local movement called Goenchi Mati (see www.goenchmati.org) has as its chief aim the persuasion of political parties to do precisely this. It is asking politicians contesting the upcoming state elections to sign a petition saying that they promote this course of action. For the sake of our children it deserves our support.

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