Displaying items by tag: Mining
Minor mineral mining, including gypsum, now under state control
06 February 2015India: The Centre of Mining has decided to put 31 minerals under the control of state governments by scaling down their status from major to minor as part of a mining policy change, according to Mines minister Narendra Singh Tomar. This allows states to decide the mining lease of the minerals, which account for about 60% of the total leased area in the country.
The decentralised minerals include gypsum, quartz, chalk and china clay. The change in policy will let states decide the rate of royalty, contribution to the district mineral foundation, procedure for grant of mineral concessions and rules. The Mines Ministry will allow states' public sector undertakings to explore minerals in areas under their jurisdiction.
"It is an important step in fulfilling the minimum government, maximum governance motto of our government," said Tomar. "This is being done to devolve more power to the states and expedite the process of mineral development in the country." States cannot lease out major minerals such as coal and iron ore without mandatory clearances from central ministries. High revenue earners, coal and iron ore, retain their positions as major minerals even after the policy shift.
The decision to broaden the list of minor minerals should drastically shorten the lease approval process because the state would be dealing with all the paperwork. Production should also increase. However, India could be treading on a minefield of environmental degradation if adequate protection measures are not taken.
Zimbabwe: Plans to build a cement plant in Zvishavane by Chinese investors have been challenged as it has emerged that the mining rights in the area belong to Shabanie Mashaba Mines (SMM). This may delay the project as SMM is still the subject of an ownership dispute between the government and South African-based businessman Mutumwa Mawere.
The project was intended to be built 30km from the Zvishavane along the Zvishavane-Mbalabala road, according to local press. It was part of the deals made with China after President Robert Mugabe's visit to China in 2014 as well as negotiations between the Joint Zimbabwe-China Permanent Commission.
Tanzania Portland Cement agrees prisoner labour limestone deal
19 November 2014Tanzania: The Tanzania Portland Cement Company (TPCC) and the Tanzanian government have agreed to start producing limestone from mines within Boko prison territory in early 2015. Permanent Secretary at Ministry of Home Affairs Mbaruk Abdulwakil, Commissioner General of Prisons John Minja and TPCC Managing Director Alfonse Rodriguez have announced that a final agreement on the partnership will be sealed by the end of 2014.
"In principle, the government has approved this public private partnership, which is part of reforming and modernising the prison services," said Abdulwakil. The government will receive 1200 cement bags and US$58,000 to build Boko prison staff quarters and office facilities. In return TPCC will mine limestone within the Boko prison premises for use as raw material at its Wazo hill plant.
Nigeria’s Dangote to invest in Tanzania’s coal mine
24 October 2014Tanzania: The chairman and president of Dangote Group, Alhaji Aliko Dangote, is set to invest in developing the Mbinga Coal Mine in west Tanzania to power the Mtwara cement plant. The sale of excess coal will be used to finance cement exports from Tanzania.
According to reports, Dangote Cement plans to take advantage of the surge in local demand for cement amidst increased construction activity in the region using its 3Mt/yr capacity Mtwara cement plant when it is completed. Dangote Cement expects cement demand in Tanzania to surge in the near future due to the country's improving economic performance.
India: Spectrum Meghalaya Cement Company is planning a 2Mt/yr limestone mining project in West Kameng District, Arunachal Pradesh. The limestone will be used for its cement plant, which is being constructed adjacent to the mine. The project is waiting for its mining lease and mining work is expected to commence in 2015.
India: Shree Cement is planning an expansion of its captive limestone-mining project at Baloda Bazar, Raipur District, Chhattisgarh from 4.8Mt/yr to 8.6Mt/yr on 5.31km2 of land. The project will be part of its integrated cement plant and will be designed by JM Enviro Net. The expansion is currently waiting for environmental clearance. Mining work is expected to commence within two years.
Ethiopia: The Ministry of Mines (MoM) has granted a mining license to Habesha Cement for the excavation of minerals for the company's cement production.
The contract allows Habesha to mine limestone, gypsum, clay and sandstone from 1.12km2 of land in the West Shoa Zone, Oromia Region, at four different locations. The mining operations will be undertaken with a capital of US$1.38m. The land that Habesha requested for pumice is reserved for forestation and wildlife development and it has asked for a replacement.
The mines will provide raw materials for the Habesha cement plant, which will have a production capacity of 1.4Mt/yr of cement. The company is expected to begin production in November 2015.
The mining contract will be valid for 60 years, until the minerals are fully excavated. Habesha is expected to produce over 100Mt of limestone in that time. When the company starts cement production, it is expected to use 1.1Mt/yr of limestone, 70,000t/yr of gypsum, 288,000t/yr of clay, 72,000t/yr of sandstone and 450,000t/yr of pumice.
"To get the approval, we conducted a feasibility study and environmental assessment on the areas and paid US$1.55m as compensation to the former owners of the land," said Mesfin Abi, CEO of Habesha.
Habesha Cement was established in September 2008 by 30 shareholders with an initial capital of US$30,671. Construction of the cement plant, which will cost US$120m, is underway in Beketa and Koro Odo Kebele, Oromia Region, Ethiopia.
Hima appeals limestone rights
17 April 2013Uganda: Hima Cement says it has successfully challenged the loss of its limestone mining rights in Kasese, western Uganda.
David Njoroge, the General Manager of the Lafarge subsidiary, stated that the company had challenged the move during an Administrative Review process that was conducted in accordance with the Mining Act. It cited various instances of breach of the requirements of the law in the handover of its mining rights to the third party. Njoroge said the matter went to the High Court and has now progressed to the Court of Appeal.
"A stay of the orders of the High Court has been applied for and the appeal process has been commenced seeking to overturn the ruling of the High Court," said Njoroge. Hima lost the rights in early April 2013 to the East African Gold Sniffing Company following a Ugandan High Court ruling.
Hima loses limestone rights in Uganda
03 April 2013Uganda: Hima Cement has lost its mining rights to limestone deposits in Uganda following a High Court decision. The court transferred the rights to limestone deposits in Kasese, western Uganda, from the subsidiary of Lafarge to the East African Gold Sniffing Company.
The court ruled that Hima's lease was for 21 years, ending on 31 December 2011, and it had already lapsed without any renewal in accordance with Section 47 of the Mining Act. East Africa Gold Sniffing contested a decision by the Ministry of Energy that restored Hima's mining rights after Hima managed to secure an exploration licence over the same area. The ruling means that mining of limestone and processing of cement must cease until and if an appellate court overturns the decision.
Ultratech interested in limestone mine in Mozambique
25 April 2012Mozambique: Indian firm Ultratech Cement is negotiating the purchase of a limestone mine in southern Mozambique for about US$286m. According to media reports, negotiations between the Mumbai conglomerate and the mine's owner began in February 2012 and the deal may result in the construction of a cement factory in Mozambique, a country where the demand for construction materials has been growing at an annual rate of 8 - 9%/yr.
The mine is located in the Magude region of southern Mozambique near the capital Maputo and has estimated reserves of 700 – 800Mt of high quality limestone.
In April 2010, UltraTech Cement acquired the ETA Star Cement company, a Dubai producer with capacity of 2.3Mt/yr US$324m, opening access to markets in the United Arab Emirates, Bahrain and Bangladesh.