Mining: Growth industry’s devastating footprint: what next?

Mining: Growth industry’s devastating footprint: what next?

Sunita NarainDirector

BackgroundOur work:1. Rating of Indian industry: Paper; auto; cement2. Working with media: fellowship 2006

Our understanding:a. Big issue; big politics and current news – from Posco;

Mittal; to Chinab. Challenge to development: industry extracts resources;

does not even provide employment – devastates local environment; people’s lives

c. Regulatory and governance failure – why laws and institutions not able to decide in public interest

d. Huge tensions – from lynching of contractor in Goa; Kalinganagar; to all other cases

Our work

From Green Rating of individual sectors to:a. Work with regulators – paper on state of

regulators (PCB’s) in India; training workshops;b. Work with civil society– provide technical inputs

into EIAs; training workshops;c. Work with cross-cutting issues with industry;

regulators and civil society – to push for policy changes: Book; consultation and briefing on mining

Overview: China factor

• Since 2005

• Huge increase in demand;

• Huge increase in price -- up 48 per cent since the beginning of 2006

• Real price at 15-year high

Impacts on us

Growth industry : between mid 1990s to 2005• Iron ore production increased has doubled in 10

years – from 60 million tonnes annually to 155 million tonnes;

• Bauxite increased from 5 million tonnes to 12 million tonnes;

• Chromite from 1 million tonnes to 3.4 million tonnes

• Coal and lignite from 266 million tonnes to 438 million tonnes

Just the beginning – clear from the gold rush in all states; clear from the players in the field

Big business: Big fights • Steel; Aluminum; cement expected to grow at 9-10 per cent

annually in next 10 years; • Power plants – on coal – on high trajectoryFights:a. Between big players – Indian and multinational only in the

mining area and between Indian players in integrated sectors – steel makers want integrated iron ore fields etc; between export and domestic value addition;

b. Between public sector – which has existing concessions – and new players who want the mining areas;

c. Between small, unorganised miners and big multinational miners;

Left out: a. People who will be displacedb. Environment and forest

Mines and water

Mines and forests

Forest clearance for mining

8,6392,031Avg. forest diversion/ year (ha.)

95,00360,42734,527Forests diverted (ha.)

8012619Avg. leases granted/ year

1198881317Mine leases granted in forest areas

Total

(1980-2005)

1997-2005

1980-1997

Understanding regulations

• 1. Environmental clearances: on what basis? • 2. Public hearing: are people heard?• 3. Forest clearance or forest compensation?• 4. Environment management plan: who

oversees? Who plans? What are the institutions for this?

• 5. Mine restoration? • 6. Watersheds? Is this anyone’s concern

Mines and water

Mines and forests

Forest clearance for mining

8,6392,031Avg. forest diversion/ year (ha.)

95,00360,42734,527Forests diverted (ha.)

8012619Avg. leases granted/ year

1198881317Mine leases granted in forest areas

Total

(1980-2005)

1997-2005

1980-1997

Understanding regulations

• 1. Environmental clearances: on what basis? • 2. Public hearing: are people heard?• 3. Forest clearance or forest compensation?• 4. Environment management plan: who

oversees? Who plans? What are the institutions for this?

• 5. Mine restoration? • 6. Watersheds? Is this anyone’s concern