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Jharkhand Network is the first ever biggest network of entire Jharkhand region i.e. spreading over North Eastern Part of India. It's target groups are Development Professionals, Media & IT experts, Researchers & University Students, Policy makers, Bureaucrats and NGOs Officers those could really hold the power to affect professionally to bring change at great land of Jharkhand. Click here to know more....
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Jharkhand Region has been an origin of various languages such as Hindi, Nagpuri, Mundari, Kharia, Kurux, Khortha, Santhali, Ho, Sadri, Oraon, Bengali, Bhojpuri, Maithli & Oriya etc; Here, Jharkhand Online Network is trying to connect native speaker of above languages to grow an online community. To know more please click here...
Jharkhand Minerals
Mineral rich Jharkhand Region has mines of following minerals - Apatite, Asbestos, Barytes, Bauxite, China clay, Chromite, Cobalt, Copper ore, Dolomite, Feldspar, Fireclay, Garnet, Gold ore, Granite, Graphite, Iron ore, Hematite, Magnetite, Kyanite, Limestone, Manganese ore, Mica, Nickel ore, Quartz, Quartzite, Sillimanite, Sillimanite, Talc, Stealite, Soapstone, Titanium, Tmenite, Rutile, Vermiculite & Coal etc. To know more please click here...
Coal Cant Fill Worlds Burning Appetite
Long considered an abundant, reliable and relatively cheap source of energy, coal is suddenly in short supply and high demand worldwide.

An untimely confluence of bad weather, flawed energy policies, low stockpiles and voracious growth in Asia’s appetite has driven international spot prices of coal up by 50 percent or more in the past five months, surpassing the escalation in oil prices.

The signs of a coal crisis have been showing up from mine mouths to factory gates and living rooms: As many as 45 ships were stacked up in Australian ports waiting for coal deliveries slowed by torrential rains. China and Vietnam, which have thrived by sending goods abroad, abruptly banned coal exports, while India’s import demands are up. Factory hours have been shortened in parts of China, and blackouts have rippled across South Africa and Indonesia’s most populous island, Java.

Meanwhile mining companies are enjoying a windfall. Freight cars in Appalachia are brimming with coal for export, and old coal mines in Japan have been reopened or expanded. European and Japanese coal buyers, worried about future supplies, have begun locking in long-term contracts at high prices, and world steel and concrete prices have risen already, fueling inflation.

In the United States, the boom in coal exports and prices has helped lower the trade deficit, which declined last year for the first time since 2001. The value of coal exports, which account for 2.5 percent of all U.S. exports, grew by 19 percent last year, to $4.1 billion, the National Mining Association said. An even bigger increase is expected this year.

That means that, in a small way, higher revenues for U.S. coal exports indirectly helped the U.S. economy cover the cost of iPods from China, flat-screen TVs from Japan and machinery from Germany. The still-gaping trade deficit of the world’s largest industrial power at the dawn of the 21st century was slightly eased by a fuel from the era and pages of Charles Dickens.

Big swings in the prices of coal and other commodities are common. But while the price of coal has slipped slightly in recent weeks, many analysts and companies are wondering whether high prices are here to stay. As increasing numbers of the world’s poor join the middle classes, hooking up to electricity grids and buying up more manufactured goods, demand for coal grows. World consumption of coal has grown 30 percent in the past six years, twice as much as any other energy source. About two-thirds of the fuel supplies electricity plants, and just under a third heads to industrial users, mostly steel and concrete makers.

Meeting rising demand will prove difficult. To maintain its role as the world’s producer of last resort, the United States will need to make major investments in mines, railways and ports.

“We think the current world markets have legs,” said Thomas F. Hoffman, senior vice president of external affairs at Consol Energy, one of the biggest U.S. coal producers. Consol is trying to decide whether to expand output at its Appalachian mines and to add capacity in Baltimore’s harbor.

“We’re at a point where we’re running through the capacity,” said David Khani, a coal analyst at Friedman, Billings, Ramsey Group. He compares the coal market to the oil market. For coal, he added, “it is unprecedented.”

If high prices last, that would raise the cost of U.S. electricity, half of which is generated by coal-fired powered plants.

Expensive or not, coal is almost always dirtier to burn than are other fossil fuels. Although its use accounts for a quarter of world energy consumption, it generates 39 percent of energy-related carbon dioxide emissions. Climate change concerns could lead to legislation in many countries imposing higher costs on those who burn coal, forcing utilities and factories to become more efficient and curtail its use. Climatologists warn that without technology to capture and store carbon dioxide emissions, burning more coal would be disastrous.

China’s Ravenous Appetite

China, the world’s largest consumer of coal, is burning through more than the United States, European Union and Japan combined. And its consumption is increasing by about 10 percent a year. In 2006, it installed power plants with more capacity than all of Britain.

China has vast coal resources, but its growing appetite has outstripped production. In January 2007, it imported more coal than it exported for the first time, according to government figures.

Logistics compound China’s coal woes. The biggest deposits lie inland and in the north while most of the fast-growing industries are in the south and along the coasts. Transporting all that coal strains the railways, half of which are devoted to coal transport.

When blizzards hit this winter, shipments were held up, reserves dwindled to half their normal levels, and the government suspended exports for two months. On Friday, it issued its first export license of 2008. Because of shortages, electricity was rationed in 17 provinces, most of them in the south.

Guangdong Taini Cement said it was not allowed to use electricity from 7 a.m. to noon or from 5 p.m. to midnight. “The electricity we were getting at that time was only 60 percent of what we usually get,” said Chen Jijing, director of the company’s manufacturing department.

Even before the storms, blackouts were common, as a result of China’s muddled energy policies.

China has done little to contain demand. Indeed, the government has limited electricity rate increases for years, encouraging greater use. Concerned about climbing inflation, Beijing on Jan. 10 turned once again to Communist-style measures, freezing electricity prices even as coal and oil prices soared.

“The current price policy encourages people and companies to consume electricity because electricity is so cheap. There’s no pressure for them to use energy resources efficiently,” said Ping Xinqiao, a professor of economics at Beijing University.

Strong coal demand has created incentives for small illegal coal mine operations that are extremely dangerous and highly polluting. The government has shut down 11,155 such mines since 2005, further crimping supplies.

In India, Policy vs. Demand

India also relies on outdated energy policies while trying to keep pace with booming demand. The economy is growing at 8 to 9 percent a year, and by 2012 India expects to add 76,000 megawatts of power, according to Upendra Kumar, a member of the mining committee at the Confederation of Indian Industries.

But 94 percent of India’s coal mining is in the hands of government-owned companies. The biggest, Coal India, produces four-fifths of the country’s coal. Because the government is worried about social unrest, the prices for coal and electricity are kept low.

“Today our coal prices are about 40 percent lower than international coal prices,” said K. Ranganath, Coal India’s director of marketing. And, he notes, the “lower the prices, the higher the demand.”

That discourages investment, too. Although India’s coal reserves are vast, they haven’t been fully developed. The government hopes to boost coal production by 50 percent by 2012 and quadruple it by 2030. Yet that would require massive investment. Experts note that India’s coal deposits are deep and difficult to mine. The dilapidated rail infrastructure is another obstacle; India’s coal has to travel an average of 435 miles to reach plant and industrial users, said D.P. Seth, additional secretary in India’s coal ministry.

As a result, India expects to import 51 million tons by 2012, nearly as much as U.S. exports last year. By 2022, imports could climb to 136 million tons, Kumar said.

Developing countries aren’t the only ones using more coal. Throughout the 1980s and 1990s, British coal consumption declined as new sources of oil and natural gas were discovered in the North Sea. However, the trend has reversed and coal consumption has climbed steadily over the past six years, including a 9 percent jump from 2005 to 2006. Coal has now surpassed gas once again as the leading fuel for electricity plants.

However, the British mines that George Orwell described 70 years ago as “like my own mental picture of hell” are much smaller than they once were. Mine production capacity declined during the ’80s and ’90s “dash for gas.” Now Britain imports coal from Russia, Australia, Colombia, South Africa and Indonesia.

At the Mercy of Nature

Sometimes it takes an act of nature to uncover human and policy flaws. The fragile balance of coal supplies in Asia has been exposed this winter to flash floods and torrential rains in Asia’s top coal-producing nation, Australia. The floods caused six big coal producers in Queensland to declare “force majeure,” a contractual option that allows them to miss coal deliveries because of events outside their control. The companies include Rio Tinto, BHP Billiton and Xstrata.

At two major coal ports in Australia, about 45 ships are stacked up, waiting for deliveries from the mines. Loading delays running between 20 and 28 days. The industry is expected to take months to recover. Workers are still draining water and mud that pooled in open pits and repairing machinery and roads.

Australia’s problems have contributed to a surge in Asian spot prices, meaning prices for immediate delivery, for coking coal, used for iron and steel production. They are running at three times the current contract price of $98.

South Africa, which might ordinarily have come to Asia’s rescue, was wrestling with its own supply problems. The state-owned utility, Eskom, let coal reserves dwindle, and power plants simply ran out. Power outages crippled the country. Heavy rain also dampened coal piles, making it harder to burn the tiny reserves efficiently.

Rolling power outages forced the mining industry to shut down for several days. Amid this political debacle, Eskom vowed to replenish its coal stockpiles, a push that will eat into supplies available for export.

Australia’s gridlock also coincides with deep cuts in coal exports by Vietnam, a key supplier to Japan and China. Vietnam will raise tariffs on coal exports to slash them by about a third this year. The goal is to keep coal at home for domestic needs. Last year, Vietnam exported 32.5 million tons of its total production of 41.2 million tons.

Vietnam’s Industry Ministry has reportedly recommended to the country’s prime minister a total halt in coal exports after 2015.

Prices Squeezing Asia

The consequences of tight supplies are being felt throughout the region and are not limited to developing countries.

Rising coal prices are squeezing Japan and South Korea, which depend largely on imports for energy. Hardest hit, so far, are steel companies. It takes about 1.5 tons of coking coal to make a ton of steel. Steel makers, in turn, are raising prices for carmakers and other manufacturers, who at some point will pass some of the costs on to customers.

Japan’s Nippon Steel and JFE Holdings, and South Korea’s Posco agreed last month to a 65 percent increase in coal prices, paying Brazilian mining giant Vale $78.90 a ton, up from $47.81. It was the industry’s first major deal of the year and could set a global benchmark for material to make steel; a day after the deal was announced, Japanese Industry Minister Akira Amari announced that he was worried about the country’s growth.

Japanese steel makers were also buying on the spot market last month, purchasing U.S. coking coal for the first time since 2005, according to Nihon Keizai Shimbun, a Japanese business paper. It reported that mills were paying about $350 a ton for U.S. coal, which is about three times the price of coal purchased from Australia last year.

Nippon Steel has said it plans to raise prices for steel sheet and plate by 10 to 20 percent, reflecting the higher costs of iron ore and coal. Shipbuilders have been passing higher steel costs on to their customers. And in the construction machinery industry, Shin Caterpillar Mitsubishi and Kobelco Construction Machinery raised prices across the board in January, citing higher materials costs.

Jackpot for Mining Firms

For coal mining companies, the coal crisis is a bonanza.

The price hike has revived long-neglected mines in Hokkaido, a region in northern Japan that has been producing coal for more than a century. As global coal prices have more than doubled, the Japanese mines have suddenly become competitive and they are attracting the attention of utilities and companies that use coal for power.

Hokkaido Electric Power Company this year doubled its coal order from the Hokkaido mines, from 500,000 to 1 million tons. The mines cannot produce enough coal to meet new requests.

In the United States, it is getting harder to license and borrow money to build new coal plants. But Peabody Energy’s chief executive Gregory H. Boyce says foreign demand will sustain mining output. “Coal is the sustainable fuel best able to close the gap of growing demand vs. scarce and expensive alternatives,” he said at a conference last month.

Khani, the FBR analyst, said that “coal use has expanded beyond steam and steel into coal-to-liquids in China and coal-to-chemicals,” which he said would link coal prices to oil as well as natural gas. Given recent oil price levels, that could mean higher prices for coal too.

That could slow U.S. and worldwide economic growth and contribute to a renewed bout of stagflation. Rising commodity prices are “producing real limits on the future of economic growth in the U.K. and overseas,” said Shaun Chamberlin, a specialist in energy and climate change at the Lean Economy Connection, an research institute in London. “In terms of industry, we’re running out of ways of generating energy. We’ve jumped around from one energy source to another, and now we’re running out.”

All this is especially bad news for those worried about climate change. Germany, for example, is caught between its pledge to eliminate nuclear power and its pledge to slash carbon emissions. Because nuclear energy accounts for a quarter of the country’s electricity needs, utilities have filed applications for permits to build two dozen coal-fired plants over the next few years.

“You reach a point where people say you have to stop burning coal,” said Per Nicolai Martens, director of the Institute of Mining Engineering at the Aachen Technical University in Germany. “But when you reach that point, you are forced to ask the question of what happens when you shut it off?”

In the developing world, where growth is paramount, there is no thought of shutting off coal, especially when, on average, a person in China emits about one-sixth and an Indian less than one-tenth as many greenhouse gases as an American “Coal will continue to be king in India. There is no way out,” said Kumar, of the Confederation of Indian Industries. “The other choice is asking the country to stay poor. . . . The question is, are we going to allow poverty or allow a little bit of pollution?”

morganwrites.wordpress.com/2008/03/22/coal-cant-fill-worlds-burning-appetite/
Managing the Economics of Minerals
At long last, proactive reforms seem in the offing for the minerals and mining sector, after years of policy dithering and plain inaction. The Cabinet has reportedly okayed the revamped national mineral policy, so as to fast-forward policy change. What’s envisaged is independent oversight, more realistic ad valorem royalty rates, and, generally speaking, a rule-based policy regime.

High time, really. A transparent investment environment in mining and minerals would actively coagulate funds, with huge payoffs right across the board. The policy objective needs to be to overcome the large investment backlog in minerals and mining, vouch for sustainable development and move towards market-determined domestic ore prices.

The value of mineral production, other than petroleum and natural gas, was estimated at Rs 30,675 crore for 2000-2001, going by official figures. But the real value would clearly be far higher, given the panoply of distortions in the mineral economy. There’s also much potential as well. India, after all, is “endowed with significant mineral resources.” We produce 85 minerals at the last count, including 11 metallic and 52 non-metallic extracts. However, the fact remains that there is much under-investment in mining capacity and productivity levels here remain much too low, seen against global norms.

It is in this context that proactive policy makes perfect sense. Note that the long-run availability of mineral resources is fundamentally a geological and technical issue. But the short-to-medium-term reliability of supplies is primarily an economic and political issue. Besides, in the here and now we are no longer seeing stagnating demand, surplus capacity, and inevitably falling mineral and metal prices over the secular period, as happened in the late 1980s and 1990s. In-stead, there’s surprisingly large and continuing growth in demand for most minerals and metals. Hence the real prospects for an extended period of relative hardening of sectoral prices.

The policy framework does need to explicitly consider minerals as wealth. We do need to junk the extant system of rock-low royalty rates, which remain unrevised for years. Minerals, after all, have considerable potential to create well being. The way ahead is to mine and develop mineral resources that are technically appropriate and environmentally sound. Also, the entire process needs to be fair to all “stakeholders,” including those affected by mining.

As for “sustainability,” the fact remains that mineral wealth needs to be created before it can be sustained. Undeveloped mineral resources represent no more than potential wealth. And even if mining itself is not quite sustainable at a specific location, the economic benefits can certainly be made wholly self-sustaining, with proper policy design.

The point is that a non-renewable mineral resource can be made into a completely renewable resource, by diverting a portion of mining revenues for investing in human capital, and social and physical in-frastructure. Which is why the move to levy ad valorem royalty, cess and other levies, of rates linked to ore value, is not a day too soon. In any case, for development to be sustainable, wealth—broadly defined to include both natural and human—ought to surely increase.

Fortunately, income-poor states like Orissa, Jharkhand and Chhattisgarh are well endowed with mineral resources. What’s needed is political consensus to concretise long-pending investment proposals and end the dither. It’s been going on for years.


The mineral policy now in the works needs to streamline the process of approvals for reconnaissance, exploration and on to grant of mining lease, in reasonable time. We cannot continue with the present ground reality of constant delays and everyday opacity in minerals.

The overhaul of mineral mining norms in the offing is billed to include institutional mechanism for independent oversight and dispute resolution, when it comes to policy follow through. In tandem, what’s required is well-drafted legislation and sound legal provisions for investor comfort. Otherwise, a panoply of litigation and long-winded court procedures may put a spanner in the works, in minerals and metals.

It’s not farfetched to say that the world will never really run out of non-renewable resources. This is partly due to the fact that metals like aluminium and steel are 100% recyclable. But more importantly, long before the last tonne of bauxite or ferrous ore is extracted from the earth’s crust, demand would doubtless fall to zero.

The standard models in mineral economics do suggest sharp rise in production costs as high quality, low-cost deposits are exhausted. Concurrently, new technology would likely shift demand toward cheaper substitutes.

Given the distinct economics of minerals, the long-run trends in prices, production costs, or other societal measures of the costs involved in obtaining an extra unit of a mineral resource do provide better indicators of availability. Instead of endlessly worrying about resource depletion and on best husbanding ores, we need to mine, value-add and industrialise with renewed gusto.

economictimes.indiatimes.com/articleshow/msid-2890116,flstry-1.cms
Jharkhand: Mining & Mineral Sector
MINERAL BASED INDUSTRIES

The availability of abundant mineral resources has led to the setting up of a number of industries in the State which include, inter alia, iron & steel, cement, coke ovens, washeries, refractories, alumina, sponge iron, ceramic, graphite processing, granite cutting and polishing etc.

The State Industrial Policy (SIP) has categorized the mineral based industries as a thrust area. The SIP also lays down the policy instruments, strategy and infrastructural support for establishment of such projects.

COAL
The State of Jharkhand is endowed with 72.2 Billion Tonnes of coal of all categories. This is distributed in 12 Major Coalfields. The maturity of coal varies from meta lignitous coal of low rank to Semi anthracitic coal. Jharkhand is the only State, which is having prime coking coal, which with or without washing can be directly fed to Coke oven for making metallurgical coke. Jharkhand State Mineral Development Corporation Ltd., (JSMDC Ltd.), and four major Companies of Coal India Ltd., viz Central Coalfields Limited, Bharat Coking Coal Ltd., Eastern Coalfields Limited and Central Mine Planning & Design Institute Ltd. are contributing to the production of coal. Other entrepreneurs like Tata Steel, Tenughat Vidyut Nigam Ltd. and Damodar Valley Corporation are also having their captive mines in the State. As is well known, the major resources of coal in the country are with high ash contents. As per the guidelines of MOEF, the coal to be transported beyond 1000 Km has to be washed to 34% ash. The State supplies about 70 MT of coal for Thermal Power Stations located in various parts of the country. There is a vast scope for establishing washeries both for the Coking coal and Non-coking coal in the State. For this, JSMDC is being geared up for entering into a joint venture with private entrepreneur. The washing of the coal is also required for supply of 24-25% ash coal to Sponge Iron Plants, which are being set up on large scale in the State. The State has vast resources of deep-seated coal deposits which are being tapped for Coal Bed Methane. The future lies in the underground gasification of coals which are difficult to reach physically. The technologies like coal liquefaction are also on anvil and there is a scope to develop it.

IRON & STEEL
Iron Ore: The state is endowed with deposits of Iron Ores of both, Hematite & Magnetite. The Hematite deposits are mainly located in the West Singhbhum District and have a resource base exceeding 3700 Million Tonnes. These have been explored only in pockets by large industry houses in their lease hold. There is a very good scope of enlarging this resource base by further exploration. The Magnetite Deposits are located in the East Singhbhum, Latehar & Palamu districts. They comprise lenticular ore bodies as well as Schist rocks with 80 to 36% magnetic. The exploration of these bodies is yet to be taken up. The existing steel mills are sourcing their iron ore (Hematite) from West Singhbhum. The Magnetite ore is being used in heavy media coal washeries & paints.

ALUMINA & ALUMINIUM
Jharkhand holds a very large potential of bauxite amounting to a reserve of 68.1 MT. Though most of the mined bauxite is targeted for metallurgical purposes for the extraction of metal aluminium, it has variety of uses in other industries, such as, abrasive, alloy-steel, aluminium, cement, ceramic, chemical, ferro-alloys, iron and steel, petroleum refining, refractory and vanaspati products, creating opportunities for various industries in small, medium and large scale.

LIMESTONE
Limestone mining in India takes its place next to coal mining. It is mainly utilized for the manufacture of cement. Next to cement industry, its potential consumers are the chemical and Iron & Steel industries. Total reserve of Limestone in Jharkhand is 511.104 MT. The deposits occur in Hazaribagh, Singhbhum, Pakur, Garhwa, Ranchi, Giridih and Bokaro districts. Production of Limestone during 2001-02 in Jharkhand was 2.13 million tonnes.

GEM STONE
There is good scope for setting up a number of gem based industries in the State.

MINOR MINERALS
There is scope for value addition activities in respect of minor minerals, such as stone crushing, brick making, etc. in SSI sector.

STATUS OF OTHER MINERALS IN STATE THAT CREATE SEVERAL OPPORTUNITIES

Barytes
Barytes occurs in the shape of narrow veins and lenticular patches in Singhbhum and Ranchi Districts. It also occurs as thin veinlets in Palamau district within silicified shale of Lower Vindhyans. Jharkhand has a total known resources of 15 thousand tonnes of Barytes. Barytes production In Jharkhand is only 0.2% of total production in India. So, there is ample potentiality of small scale mining in Jharkhand.

Clay
a. China clay: Jharkhand is an important china clay producer in India and it has great potential with total reserve of 45.335 MT.

b. Fire clay: Fireclay beds are associated with coal seams in Gondwana rocks of Chhotanagpur terrain. The fireclays of Jharia coalfield are of good refractory quality. Fireclay is also reported from Dhanbad, Dumka, Giridih, Hazaribagh, Palamu, Singhbhum and Ranchi districts. Total reserve of fireclay in Jharkhand is 03.45 MT.
Felspar

Felspar occurs as abundant mineral in pegmetites of Bihar-Jharkhand mica belt. Total reserve of feldspar in Jharkhand is 2.19 MT. The major feldspar reserves in Jharkhand are Hazaribagh, Palamau, Kodarma, Deoghar, Giridih and Dhanbad districts. Production of Felspar can be boosted through small-scale mining and industries developed locally.

Garnet
Occurrences of major massive garnet (granitite) rock at isolated localities in Chhotanagpur granite gneiss terrain were earlier reported. Massive garnet rock occurs in concentrated clusters at several places to the east of Hazaribagh. Total reserve of garnet in Jharkhand is 72 thousand tonnes and entirely confined in Hazaribagh district.

Graphite
Graphite, is a soft crystalline form of naturally occurring carbon. Occurrences of Graphite in Jharkhand are entirely confined to Palamu, Garhwa & Latehar district. Its grade few places interms of fixed carbon varies from 20% to 75%. In most of the occurrences, it occurs as dissemination in graphite schist and its content in the rock varies from 15% to 30%. Jharkhand has a reserve of 6.39 MT of graphite ore.

Kyanite
Kyanite occurs in Jharkhand in East Singhbhum and Kharsawan- Saraikela districts and its reserve in this region is 0.90 MT. It occurs either in massive form or as Quartz-Kyanite rock.

Dolomite
The reserve of Dolomite in Jharkhand has been estimated at 29.86 MT. This deposit is confined in Garhwa and Palamau districts.

Mica
Kodarma Mica Belt is the biggest mica track in the country and occupies about 145.74 Sq.Km of area and lies nearly north of Kodarma Railway Station. The major area of mica deposits is in Kodarma, Giridih and Hazaribagh districts. The production during the year 1999-2000 was 267 tonnes of mica crude and 222 tonnes of mica waste & scrape.

Quartz and Silica Sand
Jharkhand has got a reserve of 0.96 MT of quartz and silica sand. It occurs in Dhanbad, Ranchi, Deoghar, Palamau, Dumka, Giridih, Kodarma and Hazaribagh districts.

Quartzite
The entire quartzite deposit is confined in East Singhbhum, West Singhbhum (Chaibasa) and Seraikella-Kharsawan districts. Total reserve of quartzite is 37.22 MT. Total production of quartzite during the year 1999-2000 was 11,725 tonnes which is 18.72% of total quartzite production in India.
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