Report on Sustainable Mining & Development

8/8/2019 Report on Sustainable Mining & Development

1/19

1 | P a g e

qwertyuiopasdfghjklzxcvbnmqwerty

uiopasdfghjklzxcvbnmqwertyuiopasd

fghjklzxcvbnmqwertyuiopasdfghjklzx

cvbnmqwertyuiopasdfghjklzxcvbnmq

wertyuiopasdfghjklzxcvbnmqwertyui

opasdfghjklzxcvbnmqwertyuiopasdfg

hjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmq



hjklzxcvbnmqwertyuiopasdfghjklzxc

vbnmqwertyuiopasdfghjklzxcvbnmq



hjklzxcvbnmrtyuiopasdfghjklzxcvbn

mqwertyuiopasdfghjklzxcvbnmqwert

yuiopasdfghjklzxcvbnmqwertyuiopas

Development at What Cost?

Mines v/s Environment

9/10/2010

Raja Debashis


2/19

2 | P a g e

Contents

1. INTORDUCTION ................................ ................................ ................................ ..................... 3

2. INDIAN MININGINDUSTRY................................ ................................ ................................ .. 4

3. IMPACTOF MINING ................................ ................................ ................................ .............. 4

i.

Impact of Mining on Forest................................ ................................ ................................ . 5

ii. Impact of Mining on Local Inhabitants ................................ ................................ ............... 6

iii. Impact of Mining on Pollution ................................ ................................ ............................. 6

iv. Impact of Mining on River System ................................ ................................ ................. 7

v. Mining and Development ................................ ................................ ................................ .... 7

4. MININGRELATED RULES & REGULATION ................................ ................................ ...... 9

5. RECENT CONTROVERSIAL MINING PROJECTS ININDIA ................................ .......... 12

i. Vedanta mining project in Orissa ................................ ................................ ..................... 12

ii. POSCO Steel Project in Orissa ................................ ................................ ........................ 146. TOWARDS SUSTAINABLE MINING and DEVELOPMENT ................................ ............. 16

7. CONCLUSION................................ ................................ ................................ ....................... 18

8. REFERENCES ................................ ................................ ................................ ...................... 19


3/19

3 |P a g e

1. INTO

UCTION

v lopm nt t W t Co t? Min v/ Environm nt

The

ess

f the N

i t

i

e i

the J

es

s

l

k

sterH

ll

w

ie Avataar wasrepli

ated i

real

life

f

ria K

dh tri

e

f Orissawhen!

inistry

f

Environment and Forest rejected thecontroversial Vedanta

auxiteminingproject in Orissa. Thegroundofrejectionof the

project wasviolationofvariousrules & regulations including

Forest RightsActs. Thisdecision is

einghailedas the

triumphof thepowerless local tri

es (prominently

ogria Kondh

and Kutia Kondh)overamulti

illionmininggiant (Vedanta). So,

Niyamgiri Hills,oneof theprominent sourcesofBauxite, isnot going to

eminednow. The floraand faunaof the

areahas

eensaved fromdestruction. The local tri

es will continue livingselfsustained lifeasusual.

However, thestoryof the triumphant local tri

e isonlyonesideof thecoin,anotherside

eing the lossofoneof

the

iggest miningproject inIndia (worth $ " .7

illion). Theproject couldhave

rought economicdevelopment to

oneof themost under-developedandmalnourisheddistrictsof Orissa. Kalahandi district is infamous forits

hunger,malnutrition, lack ofeducationandotherdevelopment indicators. Thestateexchequerwill also lose

significant revenuestream theproject wasexpected toget. So,now themilliondollar(in theVedantacase

illion

dollarperhaps)question is,canIndiaand inparticularmineral resourcesrichstates likeOrissa, Jharkhand,

hhattisgarh,!

adhya Pradesh,Andhra Pradesh,and Karnatakaafford tomisssuchgoldenopportunity.!

ining

isoneof themainsourcesofrevenue forthesestates. Adevelopingcountry likeIndia, which isalsorich in

mineral resources,cannot doaway withsuch

ig-ticket projects. Theseprojects

ring lot ofrevenue which is

needed fortheoverall development of thecountry. At thesame timedevelopment need to

esustainable. So

how do webalance thisapparently lopsidedequation?

Themoot questionnow is

v

lopm

nt

t W

t Co

t?

Thisreport isaneffort to find theanswerto thecritical questionand lessen thegapbetween the twoobjectives,

evelopment and Environment

onservation. However,Iamconvincedof the fact that due to theverynatureof

themining industryonecannot make theperfect balancebetweenminingactivityandenvironment sustainability.

Anyminingactivity isbound topollute theenvironment, isbound to leaveunwantedresidueasaby-product,and

isbound toaffect the flora & fauna in thevicinity. Although wecanbridge the widegap tosomeextent by

adopting Sustainable!

ining which will lead tosustainabledevelopmentandnot destructivedevelopment.

Inorder to find thesolution first weneed tostudy thepresent mining industryscenario inIndiaand its impact on

various factors likeourEnvironment, the#

ocal Inhabitants, Flora & Fauna,and$

aterresource.$

ealsoneed to

briefly look throughouradministrativeand legal provisions to findout how equipped theseare tohandle the

various issuesarising fromminingactivities. Furtherwe will studycontroversial miningproject cases, like

Vedantaproject,and POS

O project indetail inorder to findout various waysofsustainablemining leading to

sustainabledevelopment.


4/19

4 | P a g e

2. I% DIA% &

I% I% G I% D' S(

RY

Globally, the mining industry is in boom time. World prices of minerals, ores and metals have soared to record

levels than)

s to unprecedented demand from the resource and po0

er hungry China. And India is not behind in

the race.

After services and manufacturing, the mineral sector in India is fast emerging as the next boom sector. According

to gro0

th figure given by Department of Mining,In India, the value of mineral production has increased more than

three times since the sector0

as liberalised, from about Rs 25,000 crore in 1993-94 to more than Rs 84,000

crore in 2005-06. Production of coal, lignite, natural gas, bauxite, chromite, iron ore and limestone has been

ramped up.

1 o0

ever, minings contribution to the nations GDP has stagnated at a mere 2.2-2.5% for more than a decade

no0

. The sector contributes very little to the exchequer through royalties and taxes, as the minerals are cheap,

and royalties lo0

. Also, royalties are rarely used for the benefit of the mined regions. All these put a big question

on the necessity of mining activity in Indian economy, especially0

hen the sta) es are so high.

Indian mining is characterised by a large number of small mines, dominated by the public sector,0

hich accountsfor75% of the total value of mineral production. 1 o

0

ever, lately private sector including foreign multinational

companies has been poc)

eting big mining projects.National Mineral Policy 2 NMP), announced in March 1993,

introduced for the first time the idea of encouraging private investment in exploration and mining. Thirteen major

mineralsiron ore, manganese ore, chrome ore, sulphur, gold, diamond, copper, lead, zinc, molybdenum,

tungsten, nic)

el, and platinum group of mineralshitherto reserved exclusively for the public sector0

ere opened

up to the private sector. The Mining policy is pushing the industry to move to0

ard privately o0

ned, large-scale,

mechanised mines. Foreign direct investors and multinational mining companies are being0

elcomed.This

means decreasing employment generation capability of the sector and comparatively larger drain of0

ealth a0

ay

from the country.

According to an estimate the formal mining industry in India employs just 5.6 la ) h people and this number is

coming do0

n. Bet0

een 1991 and 2004, the number of people employed in mining came do0

n by 30%,0

hereas

the value of mineral production0

ent up four times.

3. I&

PACT3

F&

I%

I%

G

4

Rich Lands, Poor People, a seminal report brought out by the centre for Science and Environment2

CSE) in

2008, addresses the issue of mining in different states and its impact on the environment and people. Key

observations of the report are0

orth mentioning here. The report presented a horrific picture of the devastation

brought about by mining in the country.

The report calculated that for every 1 per cent of the mining sectors contribution to countrys gross domestic

product2 GDP), the activity displaced 3 to 4 times more people than all development projects put together.

On diversion of land the report estimated 1.64 la ) h hectares of forest land already been diverted for mining in the

country. The report further highlights0

ater and air pollution in the mining hotspots. Iron ore mining in India used

up 77 million tonnes of0

ater in 2005-06, enough to met the daily0

ater needs of more than 3 million people.


5/19

5|P a g e

Miningofmajormineralsgeneratedabout 5 .86

billion tonnesof waste in7 8 8 9

.@

oal being thebiggest polluter,

every tonneofcoal extractedgenerates 3 to6

tonnesof waste.

If wemap (shownbelow)1Indias forests,mineral-bearingareas,regionsof tribal habitationand watersheds

togetherwe findastartling fact thecountrysmajormineral reserves lieunder itsrichest forestsand in the

watershedsof its keyrivers. These landsarealso thehomesofIndiaspoorest people, its tribes (among them

are PrimitiveTribal Groupsalso).

Themining industryhasalways tried toconvince that suchactivity would lead todevelopment,employment and

economicgrowth. But, thingsappear tobedifferent. Mining is linked withpoverty,poordevelopment outcomes

and low economicperformance. Of the 58

majorminingdistricts,9 8

% figureamong the158

most backward

districtsof thecountry. Mining-dependant statessuchas Jharkhand,@

hhattisgarhand Orissa,demonstrate low

percapita incomes, lowergrowthratesandhigher levelsofmortality,andmalnutritionascompared tostates

whichdonot dependcompletelyon theirmineral wealth (forexampleTamil Nadu,Maharashtraand Gujarat).

i. Imp A ct of Mining on B orC D t

The followingmapshows thespatial distributionofmineral reserves inIndiaand itsoverlap with forests.

1Source: Centre for Science and Environment


6/19

6|P a g e

Overall, the total forestedarea in the 5E

majormineral-producingdistrictsamounts to18%ofIndias total forest

cover. Suchoverlapbetween the tworesources threatensIndiasalreadyvulnerable forests. Thegovernment

estimates that the total forested landdiverted forminingbetween198E

andF E E

5 was95,003 hectare,but it has

beenestimated tobeashighas1,G H

,610hectare. Fromastrictlyecological perspective this figure isvery

disturbingbecause forestsare important natural habitatsandarecrucial tostabilising the landscape.I

ithout

adequate forest coverage,Indiasother invaluablenatural resources,suchas waterand wildlife,areat risk.

ii. Imp P ct of Mining on Loc P l In Q P R it P nt S

Not onlydoesdeforestation wreak havocon theecosystem,but it alsodestroyspeoples livelihoods. In fact,90%

ofIndiascoal and 80%of itsothermineralsare found in tribal areas. Typical miningprojectsneed largeareaof

land for itsvariousactivities likeexploration,mining (bothopenpit &underground),refinery,and tailing

dam/pond. It leads todisplacement of the traditional settlers from their lands. Although theyaregiven

compensation in lieuof their landorareresettled insomeotherareas,most of the times thecompensation

amount ismeagreand incaseofrelocation theyaredevoidof theirageold wayofselfsufficient lifestyle. The

compensationamount isusuallyonetimepayment which isgivenaftertakingawayhis/herconstant sourcesof

livelihood.

Thesedisplacement conflictshelp Naxals inspreading their tentaclesamong thealienated,angryandhelpless

local tribes. And today Naxalism isoneof thebiggest headaches forIndianpolicymakersand theadministration.

According to Ranchi-basedBindrai Instituteof Research StudyandAction (BIRSA)and the JharkhandMines

AreaT

oordination (JMACC), thespreadofMaoist extremism inmanypartsof thecountry is theresult o this

large-scaleravagingofnatural resources. Tribals live inalmost halfof the 50mineral-producingdistricts.

According toanestimateF

.5 million (among them 5F

% tribals)people weredisplacedbyminingprojectsbetween

1951and1990. Naxalism-affectedareahasnow spread toH

0%of themineral-richdistricts in the topsixmineral-

producingstates.

iii. Imp P ct of Mining on Pollution

Apart from the land issue therehabilitatedvillages in thevicinityof theminingproject alsosuffers fromvarious

kindsofpollutantsandharmful radioactivematerialsemitted in theminingprocess.

Pollution inall possible forms isseen invarious

miningareas:Airpollution,I

aterpollution,

Noisepollution,andharmful radioactive

radiation. Take thecaseof Jaduguda in

Jharkhand, themost important sourceof

U ranium inIndia.V

ue to increaseddemandof

U ranium fornuclearpowergenerationand its

use innuclearweapons worldoverunabated

exploration work isgoingon in Jaduguda. The

valuablemineral which washidden in the womb

of the landhasbecomecurseof the local tribal

inhabitants.

Forsmall quantityofU

raniumoneneed tons

and tonsof itsore whichalsocontainsotherharmful elements likeArsenic,Argon, Kryptonandayellow coloured

sand. Thesand loaded withharmful radioactiveelements (of 3 types:Alpha,Beta,and Gamma) isvery


7/19

7 | P a g e

dangerous to human and animals health. The yelloW

sand in liquid form is collected in a tailing dam/pondW

hich

is supposed to beX

ept out of any living beings reach. But due to carelessness of the mining corporations the

ignorant and unaW

are local tribals come in contactW

ith the harmful radioactive elements through variousW

ays.

Sometimes its seepage into nearbyW

ater streamsW

hich is consumed by the locals. During hot summer days the

liquid sand gets dry and engulfs theW

hole village in the form of dust. Its direct effect has been seen in reduced

agricultural output in affected areas and various hereditary diseases prevalent among the villagers. Infertility,

Birth of Mentally and Physically challenged children, SX

in and Lung Cancer,TB, andRespiratory problems are

some of the diseases associatedW

ith the radioactive elements.

Apart from the invisible radioactive radiations there are other visible pollutants in the form of suspended dust

particle in the airW

hich the local villagers breathe, contaminatedW

ater consumed by them. NoW

contrast all

theseW

ith their pre-mining environmentW

ith fresh air to breathe, pure naturalW

ater to drinX

, comparatively

healthier lifestyle devoid of all the deadly diseases. Its scary to me at least.

iY . Im

aa tofb

iningon RiY ec System

Significant portions ofIndias mineral reserves are in areas that are either near the origins or in the catchments of

rivers. These rivers floW

through nature in a cycle. It shapes landscapes and supports ecosystems. The same

hilly, forested areas that produce the hard rocX s fromW

hich minerals are mined also form the catchment zones

that feed the rural India. Rivers propel groW

th asW

ell as hold a revered status in Indian society. d oW

ever,

Pollution and landscape degradation as a result of mining affect both the quantity and quality ofW

ater in rivers.

When mineW

astes are casually dumped into the river valleys, it pollutes rivers; increases silt loads and bring

harmful pollutants into theW

ater. Due to the silt accumulation natural floW

of the rivers gets disrupted and results

in destructive floods.

In addition to threatening the natural course ofW

aterW

ays, mining near river basins, especially in underground

coal mines, putsW

orX

ers at risX

of accidents due to inundation. In 1975, for example, over350 minersW

ereX

illedW

henW

ater gushed into coal mines in Chasnala,JharX hand.

Y

.

b

ining and DeY

elopmentUndoubtedly mining is a source of revenue for the exchequer and thus contributes to countrys Gross Domestic

Product. It creates job opportunities in mines and mining related industries, li X e refining, metallurgy etc.

Sometimes it also results in better infrastructure li X e road and rail lin X s to the mine areas and other amenities.

There are countries liX

e MongoliaW

here mining contributes to approximately 25% to the countrys GDP.But

mining activity is not as crucial forIndian economy as its contribution to Indias GDP is meagre 2.5%. While its

long term cost in the form of environmental repercussion and social crisis outW

eigh the economic benefits.

While mining companies and politicians espouse the default connection betW

een industrial development and

economic groW

th, the reality is not so rosy. Mining producesW

ealth, not for thoseW

hose homes are uprootedW

ho have been devoid of their lands and other rights on forest andW

ater sources but for theW

ealthy mining

corporate. In Keonjhar, for example,Orissas most mined district, 60% of the population lives beloW

the povertyline and only 39% have access to safe drin X ing

W

ater. It is no accident that the people most reliant on the land

bear the brunt of minings disregard for the environment. They are bothW

itnesses and victims of the plunder of

Indias natural resources.

The exchequer also does not get its share in form of taxes and royalty commensurateW

ith the rates prevalent in

many other countries, liX

e Australia, Canada, U.S.A. Illegal mining is yet another menace associatedW

ith the

mining industry. According to a government agency estimate there are about 15000 illegal mines spread across


8/19

8 | P a g e

the country as against 8700 legal mines. Many times the miners encroach upon neighbouring areas of their

allotted land thus mae

ing the boundaries betf

een legal and illegal mining blurred. This insatiable greed off

ealth

of a fef

individuals and organisations is causing enormous environmental problem and social crisis.


9/19

9 | P a g e

4. g Ih

Ih

G REi

ATED Rpi

ES & REGpi

ATIqh

Having discussed various problems associatedr

ith the mining activity and its adverse impact on all its

stas

eholdersr

e are nor

ready to loos

into the lar

of the land associatedr

ith mining activity. There are certain

rules & regulations stipulated by Indian Constitution in form of various acts and other statutes to tas

e care of the

interest of all the stas

eholders in mining activity. Most prominent among them are:

1. Mines and Mineralst

Development and Regulation) Act, 1957

2. National Mineral Policy, 1993

3. Ner

Draft Mines and Mineralst

Development and Regulation) Bill, 2010

4. Forest Rights Act 2006

5. Forestt

Conservation) Act, 1980

6. Environment t Protection) Act, 1986

1.g

ines andg

ineu

als (Dev

elopment and Regulation) Aw

t, 1957

The Mines and Minerals t Development and Regulation) Act, 1957, came into force at a timer

hen governments

required much discretionary por

er to regulate a nascent mining sector. The rise of the mars et economy in the

early 1990s brought about a fundamental change in the governments attitude to mining. The actr

as first

amended in 1972, enhancing government control over mining.

In 1988, the Mineral Conservation and DevelopmentRulest

MCDR)r

ere revised to enable Indian Bureau of

Mines to monitor and regulate mining activity. Thex

Environment section of MCD rule boos

contains detailed

guidelines to be follor

ed by the mining companies for:

y Removal and utilisation of top soil

y Storage of overburden,y

aste roc

, etc.

y Reclamation and rehabilitation of lands

y Precaution against ground vibrations

y Control of surface subsidence

y Precaution against air pollution

y Discharge of toxic liquid

y Precaution against noise

y Permissible limits and standards

y Restoration of flora

2.

ational

ine

al Poli

y, 1993

Alongside the economic liberalisation introduced by the government in 1991, a comprehensive mineral policy

aimed at encouraging the flo

of private investment and introduction of state-of-the-art technology in exploration

and mining

as planned. TheNational Mineral Policy, 1993, recognised the need to encourage private

investment, including foreign direct investment FDI), and to attract state of-the-art technology in the mineral

sector. But these objectives remained largely unfulfilled in the absence of a favourable investment climate.


10/19

10 | P a g e

Consequent to the NMP1993, amendments

ere carried out in the Mines and Minerals Regulation and

Development)Act in January 1994 to attract large investment through private sector participation. The increased

private participation including big tic

et projects of multinational companies li

e Vedanta, POSCO can be

attributed to the Mineral Policy.

Ho

ever, in spite of increased private participation

e do not find international best mining practices geared

to

ards sustainable mining. These companies are here only for their profit maximization and least concerned

about the

elfare of local population and environmental aspects.

3.

ew draft

ines and

inerals (De

elopment and Regulation) bill,2010

The draft bill explicitly addresses the issues of alienation of host of population by

ay of formation of

y Co-operatives,

y Implementation of sustainability development frame

or , and

y Equity participation of the population.

Union minister of Mines, Mr. B. K. Handique, stated that a special mission

as being tas ed to examine feasibility

of ne

and green technologies for bauxite mining dealing

ith

astes in a sustainable manner.

Government ofIndia constituted a Group of Ministers GoM) to address the issues thro

n up by the draft Mines

and Minerals

Development and Regulation) Bill, 2010, formulated by the Ministry of Mines.

The draft bill is an attempt to meet the social costs of the mining projects by ensuring greater involvement of the

local community in the projects and ma ing it legally binding for the miners to provide 26 per cent of the profits to

the local community. The draft bill also stipulates compulsory consultation

ith the gram sabhas and district

panchayats in the tribal areas before the notification of an area for grant of concessions. Necessary inclusion of

employment and s ill enhancement of the local population in the resettlement and rehabilitation pac age is also

proposed in the bill. Moreover it also see s to adopt the best principles of sustainable development of mines and

mining areas from existing global experience.

4. Forest Rights A

t2006

The Forest Rights Act, 2006, also no

n as the Scheduled Tribes and OtherTraditional Forest D

ellers

Recognition ofForest Rights) Act, see s to ac no

ledge community rights on forest land.

Forest Rights Act is a special la

in contrast to Forest Conservation Act, a more general la

.

As per the Preamble of the Forest Rights Act, forest d

ellers are integral to the very survival and sustainability of

the forest ecosystem. Therefore, in la

, forests no

include forest d

ellers and are not limited to trees and

ildlife.

Section 5(c) has authorized the Gram Sabhas to ensure that their habitat is preserved from any form ofdestructive practices affecting their cultural and natural heritage.

According to section 4(5) ofFRA, there can be no removal or eviction of people from forest land unless the tribal

rights underFRA have been recognized and the verification procedure is complete.

Ho

ever, there is little effort to implement the provisions of the Forest Rights Act. As

e have seen in the case of

Vedanta bauxite mining project in Niyamgiri hills,Orissa, ho

openly the regulations

ere flouted in collusion

ith


11/19

11 | P a g e

the local administration. The District Admininstration did not attach the letters from Gram Sabhas

ith their

certificates

ith the malicious intention of getting the clearance illegally.

5. The Forest (Conservation) A tof1980

Ever since the subject of forests

as transferred from the State List to the Concurrent List under the Constitution

in 1976, the Centre's po

ers to act directly in managing the country's forests have been recognised.

The Forest (Conservation)Act of 1980 prevented the cutting of trees in forests

ithout the Central government's

approval. Ho

ever, the definition of forest itself became contentious ma ing room for Supreme Court to decide

on case-to-case basis.

Forest Act 1980 puts restrictions on state governments or any other authority:

y On use of forest land for

non-forest purpose, i.e., any purpose other than reforestation and

ildlife

conservation

y On assigning / leasing any forest land to any private person or corporation not managed or controlled by

Government

y On clearing of naturally gro

n trees in the reserved forest land

Other provisions of the Forest Act (with amendments introduced in 1988) in reference to mining activity are:

y Construction of dams and reservoirs, mining and industrial development and expansion of agriculture

should be consistent with the needs for conservation of trees and forests.

y Beneficiaries who are allowed mining and quarrying in forest land and in land covered by trees should

be required to repair and re-vegetate the area in accordance with established forestry practices.

y No mining lease should be granted to any party, private or public,without a proper mine management

plan appraised from the environmental angle and enforced by adequate machinery.

Contravention with the above guidelines is punishable with simple imprisonment for a period which may extend to

fifteen days.

6. Environment (Prote

tion) A

t, 1986

The Environment Protection Act stipulates various guidelines to be followed by various industrial activities before

the commencement of the project. Among them mining and refinery are also covered. The said act divides all

mining activities into two categories:

Category A(with more than 50 hectare of mining lease area), and

Category B(with mining lease area between 5 and 50 hectare)

Under the guidelines an Environment Impact Assessment (EIA) is done for each proposed project. It also

provides a mandatory Environmental guidelines confirmation checj

list to be completed with mandatory

information in order to get green signal from the Environment and Forest department.

The EIA also details the procedure for conduct of public hearing in a systematic, time-bound and transparent

manner ensuring widest possible public participation at the project site(s) or in its close proximity District -wise


12/19

12 |P a g e

5. k ECENT CONTk OVEk SIl

L MININ m P k OJECTS IN IN n Il

i. V o d nt mining proj o ct in Ori

TheVedanta issue in Nanjigarh, Orissa isnot anew one. it started in

003, whenVedantaAlumina,a Sterlite

Groupcompany,signed joint ventureagreement (7

:26) with the OrissaMiningCorporation (OMC) for

developingbauxiteminesat the Niyamgiri hillnear

anjigarh in Kalahandi district and the Khambasi hill in

adjoining Rayagadadistrict, foruse in itsone-million-tonnealuminarefinery.

In2005 the Orissagovernment forwardeda

proposal to the nionMinistry forEnvironment

and Forests (MoEF) forthediversionof660.7

9

hectaresof forest land forminingbauxite in

favourof the OrissaMiningCorporation (OMC) in

Kalahandi and Rayagadadistricts.

The Forest AdvisoryCommittee (FAC) in the

MoEF recommended inprincipleapproval on

October27,2007,stipulatingcertainconditions. SupremeCourt alsoruled in favourof theproject andgavego-

ahead.

Here thepoint tonote is that theapproval granted wasonly inprinciple,subject to fulfilment ofsomeconditions,

andnot final one. BeingoverlyoptimisticVedantabuilt abauxiterefinerynear the

ongriasmountainbefore

getting legal clearance tomine. It alsoconstructedaconveyorbelt fromhill top to therefinery to transport the

minedore,encroachingon thereserved forest areaof thehills without legal permission.

Thestategovernment gave full support to theproject. According to thechiefminister,Mr. Naveen Patnaik,

"These investments in Orissa weremeant togenerate jobs for thepeopleandadd to thestate'srevenue.

Therefore, theyshouldbegivengoahead," hesaid,adding that tribal dominatedbackwarddistrict like Kalahandi

hadneverreceivedsuchahuge investment in thepast.

But all this wasnot acceptable to the local tribal

population (prominent among themare

ongria Kondh,

Kutia Kondh,andMajhi Kondh) who inhabit in the

forest areasurronding the Niyamgiri hill. Forthem

Niyamgiri hills (reverredby themas Niyam Raja) is

theirGod. Theystatedprotesting tosave their forest,

mountain,and theirgods. The local inhabitantsare

content with theirself-sustaining lifestyle. Theygrow

variouscrops in the fieldssurrounding the Niyamgiri

hills. Variousherbs found in thehill forestsareusedas

medicine, theydont needanyhospital formedical treatment. But theproposedBauxitemininghas threatened

the wholeeco-systemof theregion.

Avideoshot bySurvival International,anorgani

ationsupporting tribal peoples worldwide,depicts thegrave

situationand theconditionof the local tribesverysuccinctly.

ocal tribal leaders,halfclad in loincloth withanaxe

on theirshoulder,areshownprotestingencroachment on theirmother land. Theyarequiteangryanddetermined

in theiroppositionready tosacrifice themselves forthecause.

ado SikakaMajhi,

ongria tribe leadersaid,


13/19

13 | P a g e

"Vedanta is going to harm ourNiyamgiri hill which is the place of ourNiyamraja God.OurGod has got angry and

that is why our prayers and herbs,which used to have magical cure earlier is not worz

ing anymore."

Red mud, toxic slurry - refinerys main waste product, is shown in the video which dries in the sun to become a

fine dust that villagers say engulfs and suffocates their crops. Government pollution inspectors have described

ground water contamination caused by alarming and continuous seepage of red mud. Locals are shown with

sores developing on their bodies afterwashing in rivers close to the refinery. Cattle are said to have died after

drinz

ing the same water.

However, in the village of Phuldumur that has a school and a centre for vocational training , built by Vedanta,

some seem in favour of the project. Kalti Majhi of Dongria tribe said,{

We earn around three to four thousand per

month by selling these stiched z endu leaves. We wantVedanta to remain here."

But thats the crux of the mining debate - the number of people economically displaced by the mining project , is

far greater than those whowill enjoy the benefits.

Dogria Konds are one of the rarest primitive tribal group (PTG). Their lives are intimately connected with the

mountains, forest and forest produce. According toN. C. Saxena committee report (committee constituted by the

Environment Ministry to examine the Mining activity) the proposed mining lease (PML) area is intimately lin z ed,

by way of economic, religious, and cultural ties, to 28 Kondh villages with a total population of5,148. The affected

include 1,453 Dongria Kondhs,who constitute 20 per cent of the total population of this tribe. Mr. Saxena said in

the report that, loss of forest coverwill cause a substantial decline in their economic well-being. Also mentioning

about{

Landless Dalits in his report,who are not covered in the Forest Right act, Mr. Saxena said the dalits are

also bound to suffer as they are dependent on Kondhs.

Following are the salient findings of theN. C. Saxena Committee,which influenced the MoEF's decision not to

grant the final clearance:

y The project would severely disturb important wildlife habitat that has been proposed as part of the

Niyamgiri Wildlife Sanctuary.

y More than 1.21 la z h trees would need to be cleared for mining besides many more la z h shrubs and

herbal flora.

y Mining on the scale proposed in this habitat would severely disturb elephant habitats and threaten the

important tasz

of elephant conservation in south Orissa.

y The mining operations involve stripping of more than seven square z ilometres of the Niyamgiri hilltop,

which would drastically alter the region's water supply.

y Mining-related activities will deny Dongria Kondh access to their cultivable lands. Mining activities will

also adversely affect the surrounding slopes and streams that are crucial for agriculture.

y The MoEF cannot grant the clearance unless the process of recognition of rights under the Forest

Rights Act is complete and satisfactory; the consent of the concerned community has been granted; and

both points have been certified by the gram sabha of the area concerned.

y The mining activities at the PML site will have limited relevance to the refinery now under a six fold

expansion as the 72 million tonne ore deposit here would last only about four years for the increased

needs of the expanded refinery. In balance against this are the adverse consequences on the primitive

tribal people, the environment and the wildlife of these forests.

y Allowing mining in the PML area would sha z e the faith of the tribal people in the laws of the land and

have serious consequences for the security and well-being of the entire country.


14/19

14|P a g e

y Fateof the PrimitiveTribal Groups (PTGs)neededsomeemphasis,asvery few communities inIndia in

general and Orissa inparticularcameunder theambit ofsuchacategory. Theirdependenceon the

forest beingalmost complete, theviolationsof thespecificprotectionsextended to theirhabitat and

habitationsby the FRA wereunacceptable.

ii. POSCO St | | l Proj | ct in Ori } } ~

Posco,oneof the world'sbiggest steel makers,signedadeal with the

Orissagovernment on June22,2005 toset up the $12billionproject near

theport townof Paradipby2016.

Thesteel makerrequiresabout

,004acres,mostlygovernment land, for

theproject of which2,900acresare forest land. Poscoand thestate

government say theplant, in Jagatsinghpurdistrict, will create jobs inan

impoverishedpart of thecountry.

However, thousandsofvillagershavebeenprotesting theproject,saying it

will displace them from theirhomelandandruin theirbetel-leaf farms. Theagitatorsdon't seem tobesatisfiedby thegovernment'sassurances. Villagerssay theplant will force themout of

their farmlandanddisplaceabout 20,000people. "If thegovernment wants tobuild Poscoby killingus, weare

ready todie. But, wouldnot giveour land to Posco," says fifty-five-year-oldBharat Chandra who was injured

during Saturday'sclash. Beetle farmers like RanjanMohantyearn Rs10,000permonthbysellingbeetle leaves.

Mohanty fears that if Posco takesawayhis land, thecompensationhe wouldget wouldbe less than Rs2 lakh. "If

I take Rs2 lakhcompensationgivenby Posco then that money will get spent inoneortwoyears. IfI losemy

livelihood frommy land thenmy family will soonstarve," saysMohanty.

The Poscosite inBalithuthahasseenclashesbetween thepoliceand theanti-Poscoactivists,supportedby the

eft partyand NGOs, which left dozens injured. Seeinganopportunity to widen theirbase Naxalsstepped inand

called forabandh in fivestates following theclashes.

Surprisingly though,not all villagersareagainst the Poscoplant. Around 52 familiesofpro-Poscovillagers, who

havebeendrivenaway from theirhomebyagitators, live ina transit camprunby thecompany Posco. The

situationat groundzerostill remainsvolatileasbothsidesprepare forthenext confrontation.

A four-memberMeena GuptaCommitteeconstitutedby theMinistryof Environment and Forest isvisited the

Poscosteel plant site togatherviewsof thepeopleaffectedby theproject in Jagatsinghpur. TheCommittee is to

ascertain if the forest rightsact wasproperly followed. "

earehearing theview point ofall thepeopleandafter

making thepropersurveyandverifyingall therecords, we will submit ourreport to theministry," saidMeena

Gupta, Headof theMoEF committee.

Thevisit of the SaxenaCommittee followedby theMeena GuptaCommitteehasgivenaboost to theanti-

POSCO movement. Theyseenew hope in theMeena GuptaCommitteeaftertheproject at Vedanta wasstalled

onsimilargrounds.

Poscorequires20million tonnesof ironoreperyearover30years forsteel productionat itsplanned Orissa

project at full capacity. Thestategovernment hadgrantedpermission to Posco forprospectingover2,500


15/19

15 | P a g e

hectares in the Khandadhar hills in the district of Sundergarh but it faced a setbac

after a court set aside the

decision.

therProje

ts

Apart from the Vedanta and Posco projects there are many more mining related projects in India which are

shrouded with controversy. Recently a bauxite mining proposal was stalled inVisha

hapatnam district ofA.P.

which will affect the refining businesses ofAndhra Pradesh Mineral Development Corporation (APMDC) and

National Aluminium Company (Nalco), both Indian public sector companies and Jindal South West Holdings Ltd.,

a private venture.

Mining operations in the picturesque hill ranges of Kudremu

h, 110 m west of Mangalore in Karnata a caused

many problems. The dust pollutant from the mining operation has led to decreased paddy production in the

valley.


16/19

16 | P a g e

6. TOWARDS S STAI AB E I I G and DEVE OP E T

Now that we have seen the various facets of mining operations and also studied the cases of two large mining

projects in Indiawe are ready to explore

Sustainable Mining concept.

Famous economics scholar Samuelsons defined study of economics as follows:

Economics is

soci

lsci

nce

concernedchiefly with the w ysocietychooses toemploy itsresources, whichhavealternativeuses, toproduce

goodsandservicesforpresentandfutureconsumption. Here theemphasis isonma ing choice under

conditions of scarcity, and sustainable consumption.

According to thewidely accepted theory any society must ma

e choices about three important problems. They

are:

1. What to produce and in what quantities? (e.g.,Food orweapons; if so, in what quantities?

Is it more food and less weapons or vice versa)

2. How shall goods be produced? (e.g., Electricity from thermal power or from hydro power?)

3. Forwhom shall the goods be produced? (A few rich and many poor or most people in modest comfort)

These problems are common to all economies but every economic system attempts to ma

e its own choice. The

answer to the above three questions basically determine the development model of any country.

We can extrapolate the above model to our discussion and try to find answer to our moot question of sustainable

development. To the first question we dont have any alternative other than carrying on mineral production

because of its demand in the international mar

et and as well as utility in the domestic mar et. For a developing

country li

e India mineral resources are indispensable. The government of the day and economists are also quite

clear about it. Does that mean one can go on mining indiscriminately? No.

The answer to the second question

How goods shall be produced addresses this issue. Given the meagre

contribution of mining in the total output, i.e.,Gross Domestic Product, of approximately 2.5%, the mining activity

can be strategically designed to minimize its impact on the ecology and the local inhabitants. Mine spots with less

forest or no local settlers can be target primarily. We now that its easier said than done. But we do not have

much choice ifwe are serious about sustainable development. After all target of at least 33% forest coverage

(which is presently below 18%) is equally, if not more, important.Also there are various remedial measures li

e

harnessing

green technology to minimize adverse impact of mining, reclamation of the land after mining,

reforestation, resettlement of the local inhabitants, etc. which can go a long way in balancing mining and its

impact.

The third question brings us to the conflict of interest between a few rich individuals/corporations and the local

land holders (prominent among them are Primitive Tribal Groups). The local land holders should be given

adequate compensation along with alternative sources of livelihood. As proposed in the new Mines and Mineral

(Development and Regulation) bill, the profit from mining activity should be shared with the displaced people.

Existing provision of ta

ing consent of the affected population in mining decisions should be implemented

properly. The miners cannot just come, stri

e the gold and vanish after their motive is fulfilled.

The following diagram presents essential elements of sustainable mining. Society, Economy, and Environment

are the three

ey elements in sustainable mining, as mining itself cannot be sustainable. The area of intersection

of the three elements in the diagram represents sustainable mining.


17/19

17|P a g e

L

rning

from Int

rn

tion

l

t Pr

ctic

Beingadevelopingcountryand thusa latestarterinvariousdevelopment activitieshassomebenefitsalso. As

wehavemanysuchreal lifeminingcasesbeforeus to learn fromandadopt thebest time testedbest practices

followed inothercountries. Followingaresomeof thesustainableminingpractices worthemulating inIndia.

y External verification/audit report.

y Environment management Systemcertification (ISO 14001).

y Improve theplantsenergyefficiency.

y Meet futureregulatoryrequirements forreducing Green House Gases (GHG)emissions.

y Re-vegetationof landssurrounding thecompanys tailings facilities.

y Formalizing itsengagement framework and itsrelationships withcommunitiesof interest.

y

ildlifemanagement plan.

y

orkerhealthandsafetyguidelines,etc.

Society

En ironmentEconomy


18/19

18|P a g e

7. CONCLUSION

Afterstudying themining industry inIndiaand its impact on theenvironment and local inhabitants wecansay

that many times thecost (tangibleas well as intangible)ofsuchminingoperationsoutweighs itsprofit. However,

wecannot ignore theroleofmining industry inourcountrysdevelopment altogether. So weneed toset our

prioritiesstraight and follow adevelopmental model which issustainable.

Theneedof thehour is tostrategicallyplananddesignall

miningrelated industries tominimizeenvironmental

degradationandavoidclash with the local population. The

Miningministryalong withMinistryof Environment and Forest

can identifyandearmark biodiversityrich forest landand tribal

villagesas No Go area, wherenomining lease will be

permitted. Thisconcept ofearmarking Go and No Go area

blocks isalready inpractice incoal mining. Thesamecanbe

extended tootherminingactivitiesas well.

Also thenew MinesandMineral (

evelopment and Regulation)

Bill need tobeadoptedand implementedproperly. Consent of

the local population inall developmental activities inand

around theirhabitationsandprofit sharing with theaffected

population will goa long way in inclusivedevelopment. All the

rulesandregulationsshouldbe implemented in letterandspirit.

Furtheradoptingbest practices from international miningand

useofgreen technology will lead tosustainabledevelopment.

The Niyamgiri episodeshouldbeanyeye-opener fortheIndiangovernment. Following the

ongria Kondh tribes

successful movement ourprimeministerhascreatednew National Council forTribal

elfare which will review

andguideIndiaspoliciesaffecting theover80million tribal people living in thecountry. Itscertainlya welcome

move. Howeverneedof thehour is tobemoreproactive inourapproach towards thissensitive issueratherthan

just reacting late. Otherwise the tribals wouldnot beable toassociate themselves with independent Indias

growthstoryand theymayalsoequate IndianConstitution withapieceofToilet paper.


19/19

19|P a g e

8. E E ENCES

1. http://www survivalinternational.org/(an international organizationsupporting tribal peoples

worldwide)

2. http://www.survivalinternational.org/films/mine(Thisvideo link contains footage from Niyamgiri,

interviews with

ongria Kondh leadersandan interview witha Survival campaigneron themining

decision)

3. N.C.SaxenaCommittee Report

4. http://www.mining.ca/www/Towards_Sustaining_Mining/Performance_Indicators/Biodiver

sity_Conservation_Management.php

5. http://old.cseindia.org/programme/industry/mining/forest_minerals.htm(Centre forScience

and Environment)

6. CNN IBN News Footages

Report on Sustainable Mining & Development

Documents

Transcript of Report on Sustainable Mining & Development