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Press Note on Illegal Mining and Exports from Goa: 43% of ore exported in 2010-2011 was illegally extracted (12.1.2012)

As official figures from two separate and independent government sources  viz., Director of Mines and Geology (DMG) and Indian Bureau of mines (IBM) are now available, it is clear that more than 43% of iron ore exports from Goa in the year 2010-11 actually came from illegal or unauthorized mining operations. In the year 2009-10 the illegal ore exported was to the tune of 33%.

Table 1: All Figures in M.T. (million tons)

Year Illegal dump ore as per DMG* (A) Fresh Ore as per DMG (B) Fresh Ore produced in excess of EC limit as per GF (excluding dumps) (C) Legal Ore(D) = (B) – (C) Exports as per DMG(E) Derived illegal Ore exported (F) = (E)-(D) Percentage of illegal ore exported
2009-10 12.60 34.93 4.57 30.36 45.69 15.33 33.55
2010-11 15.45 32.93 2.23 30.70 54.03 23.33 43.18

(*DMG – Director of Mines and Geology, Government of Goa)
(*GF – Goa Foundation)

In response to the Goa Foundation PIL on illegal mining, the Director of Mines and Geology (DMG) has provided an affidavit giving details of the production and exports for the year 2009-10 and 2010-11 (table 2 annexed).

The Union Ministry of Mines in its communication dated 25-10-11 to the Secretary (Mines) Goa government gives data sourced from the Indian Bureau of Mines for the 4 years ending 2009-10.

The information provided by the DMG affidavit and IBM data has enabled GF to arrive at the following conclusions:

I)  Number of working leases:

The DMG under RTI has stated that 91 leases operated in 2009-10, whereas IBM data discloses that 114 leases operated in that year (see table 3). This means that the DMG of Goa government was not aware of the existence of 23 working leases. What happened to the ore produced by these leases, their royalty payments, etc? How can two departments overseeing the same mining activities in the State of Goa provide such divergent data?

II) Exports in excess of production

According to the DMG affidavit, in the year 2010-11 the total production (fresh + from dumps) was 48.38 M.T (million tons) of iron ore while the exports were 54.03 M.T., i.e., exports exceeded production by 5.65 M.T. The DMG affidavit does not disclose the sources from where unaccounted 5.65 M.T. was obtained. Obvously no royalty was paid on this ore. The sources of this ore are very important to ascertain that it was not extracted from illegal mines.

III) Production from reject dumps

The IBM table (3) clearly and unambiguously declares that production from so called “reject dumps” is “excess production” which is outside and beyond permitted production.  In plain words – it does not have the sanction of IBM which is the concerned statutory authority and is therefore illegal.

The DMG affidavit acknowledges that 12.60 M.T. of ore was produced from reject dumps in the year 2009-10. The corresponding IBM figure for that year is only 7.11 M.T. The huge difference of 5.49 M.T reported by these two statutory authorities is truly astonishing. Whose figures are correct? It appears that the mining companies are reporting different quantities to the different statutory authorities or else these wide variations would not occur.

The IBM data also shows that ore was produced from dumps as far back as 2006- 07 while the DMG has provided data for only the year 2009-10 and 2010-11 and is silent on earlier years.

IV) Production (including dumps) in excess of EC limits

The DMG in its affidavit has given a consolidated figureof EC limits and production for the year 2009-10 and 2010-11 (table -2). This creates an impression that the illegal excess ore produced by the industry as a whole is only 2.23 M.T in the year 2009-10 and 2.32 million in the 2010-11.

The reality is far different.  Many leases did not achieve the EC production limits set for them while a few leases were over exploited and produced far in excess of the EC limit which is illegal. Based on the information provided by DMG in 2009-10, 39 mining leases with EC limit of 17.31 M.T, on their own produced 24.64 M.T i.e., an excess of 7.33 M.T.

In 2010-11, though the number of mines involved in excess production reduced from 39 to 31, the excess production increased compared to the earlier year! The combined EC limit of 31 leases was 14.82 M.T while they actually produced 27.06 M.T – an excess of 12.24 M.T.

Even data from IBM confirms that in 2009-10, 31 mining leases exceeded their ROM target by 3.26 M.T while the dumps production in excess was 7.11 M.T, i.e. a total of 10.37 M.T.

The DMG says his figure of illegal extraction is 6,000 tonnes from a single mine in the year 2010-2011! This information he states on oath is based on records available in his office. No further comment is necessary in these circumstances.

V) Conclusion

Table 1 for the year 2009-10 and 2010-11 has been prepared by the Foundation to disclose the percentage of illegal ore exported from these official figures released. The fresh ore extracted in excess of EC limits has been reworked individual lease- wise to ensure that the figure of illegal dump ore is not considered twice.

These facts themselves indicate the huge scale of illegal mining that is going on in the state of Goa despite this activity being under the supervision and control of the DMG and his entire department and the IBM. In fact this is a fit case for a high level CBI enquiry considering the extent of loot of public resources over several years with consequent large-scale environmental damage.

(Table 2)

(Information submitted by Director of Mines via affidavit in Goa Foundation PIL on illegal mining PIL WP 34/2011)

 

SUMMARISED DATA OF EXPORTS, PRODUCTION/DUMPS HANDLING AND EC LIMITS FOR THE YEAR

2009-10 TO 2010-11

 

YEAR E.C. LIMITS (in M. Tons) PRODUCTION (in M. Tons) EXPORTS
2009-10 45.30 47.53 45.69
2010-11 46.06 48.38 54.03

 

BREAK UP OF PRODUCTION FIGURES FOR THE YEAR

2009-10 & 2010-11

 

Year Fresh Production Dumps Handling Total
2009-10 34.93 12.60 47.53
2010-11 32.93 15.45 48.38

 

ILLEGAL MINING CRISIS CREATED BY MINE OWNERS AND MINING COMPANIES: ONLY THEY SHOULD BE HELD ACCOUNTABLE FOR THE CONSEQUENCES OF CLOSURE (23 November 2011)

There is a widespread consensus today among all people, including those from the mining industries, trucking associations, political and civil society, that illegal mining should not be permitted and only sustainable legal mining be supported.

However, the extent of illegal mining is so vast that there are reasonable apprehensions that significant sections of the mining industry will have to shut down as required actions are taken, once the report of the Shah Commission of Enquiry into Illegal Mining is made public. Download English. Download Marathi.

GOA POLLUTION CONTROL BOARD ISSUES SHOW CAUSE TO 45 MINES FOR SUSPENSION OF MINING OPERATIONS

Pursuant to a judgement of the Bombay High Court dated 12.8.2011 in Writ Petition No.6/2011, the Goa Pollution Control Board has now issued show cause notices to more than 40 mining leases, asking them why their consents to operate should not be withdrawn and mining operations on the leases suspended. Download pdf

Goa Foundation Press Note on Vedanta’s Mulgao Mining Disaster

The Goa Foundation today criticised Vedanta/Sesa Goa company (owners of Dempo Mining Corporation mines at Bicholim/Mulgao) as well as the statutory authorities for their collective negligence which led to the Mulgao mining disaster on 16 July 2011. It urged the village community to take steps for irrevocable closure of all the Sesa Goa mines in the area as they are being operated in unsafe conditions and in violation of environment laws. Download PDF

Goa Foundation Condemns Assault on Nilesh Gaonkar by Mining Company

The Goa Foundation today condemned the assault against anti-mining activist Nilesh Gaonkar of Caurem by goons hired by Shaikh Salim mine and said it signalled the desperation of the mine owner who could not operate the mine due to persistent resistance from the village adjoining the lease. Download PDF

High Court Stalls Forest Destruction for InternationalCricket Stadium at Thivim, Goa

The Bombay High Court bench at Goa, comprising Justices A S Oka and F.M. Reis, has disposed of a public interest petition filed by the Goa Foundation and three Thivim farmers challenging permissions granted by the Ministry of Environment and Forests to destroy a natural forest comprising 2500 trees, while at the same time directing the Ministry of Environment and Forests, which has already initiated inquiry into the forest clearance, to consider the representation of the petitioners on all the issues raised in the petition. In the meanwhile, the High Court has directed no trees from the forest will be felled. Download PDF.

Vedanta (Sesa Goa) To Remove Illegal Mining Dumps From Advalpal Village

Vedanta’s lawyers on January 6th assured the High Court of Bombay at Goa that the company would remove several illegal dumps it had created at the edge of their mining lease at Advalpal village in north Goa and which threatened the safety of the village settlement. Download PDF

Goa Foundation Approaches Supreme Court Against Pollution Control Board Appointments Countrywide

The Goa Foundation today filed a detailed writ petition under Article 32 of the Constitution for directions to State Governments to justify their present appointments to posts of Chairpersons and Member Secretaries of their Pollution Control Boards.

As per data made available in the petition, only five states out of 34 have Pollution Control Boards that are headed by persons who are adequately qualified to hold their posts. Of the remaining, 12 Boards have neither Chairpersons nor Member Secretaries that are qualified. In 13 other Boards, either the Chairperson or the Member Secretary is unqualified to hold the post. Download PDF

High Court Adjourns PMCA/Goa Foundation Application for CBI Inquiry into Aldeia de Goa Forgeries to October 13 2009

A division bench of the Bombay High Court comprising Justices S.B.Deshmukh and N.A.Britto today adjourned till October 13 an application filed by the Peoples’ Movement for Civic Action (PMCA) and the Goa Foundation pressing for a CBI inquiry into the disappearance of all files containing approvals relating to the construction of the Aldeia de Goa complex coming up at Bambolim, Goa. Download PDF

Union Environment Secretary Fined Rs.10,000 by Court

A division bench of the Bombay High Court comprising of Justices S.D. Deshmukh and U.D. Salvi has imposed a fine of Rs.10,000 on the present Secretary, Ministry of Environment and Forests, Govt. of India for not filing an affidavit the High Court had asked for in a petition on forest protection pending before it. Download PDF

High Court Checkmates Sesa Mining at Advalpal

A division bench of the Bombay High Court comprising Justice S.B. Deshmukh and U.D. Salvi today passed a brief order restraining Sesa Goa from mining Face 1 & Face 2 of the company’s iron ore mining lease at Advalpal village, near Assonora, Bardez.

The Court found the company had been mining in violation of its mining plan. After the restraint order, the Court posted the matter to October 8 to take on board the company’s proposal to remove within a specific time-frame the huge illegal mining dumps it had created along the Advalpal nallah. Download PDF

Supreme Court issues notice on Cidade de Goa contempt

The Supreme Court today issued notice to Ms. Anju Timblo, Director & MD of Fomento Resorts & Hotels (Owners of Cidade-de-Goa), Shri J.P. Singh, former Chief Secretary and Shri Sanjay Kumar Shrivastav, present Chief Secretary, on a contempt petition filed by the Goa Foundation for gross and willful disregard of the directions given by the Hon’ble Supreme Court in its judgment dated 20th January , 2009. Download PDF.