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Development at What Cost?
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Mines v/s Environment
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Raja Debashis

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Contents
1. INTORDUCTION.........................................................................................................................3
2. INDIAN MINING INDUSTRY.....................................................................................................4
3. IMPACT OF 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. MINING RELATED RULES & REGULATION.........................................................................9
5. RECENT CONTROVERSIAL MINING PROJECTS IN INDIA............................................12
i. Vedanta mining project in Orissa........................................................................................12
ii. POSCO Steel Project in Orissa...........................................................................................14
6. TOWARDS SUSTAINABLE MINING and DEVELOPMENT...............................................16
7. CONCLUSION..........................................................................................................................18
8. REFERENCES..........................................................................................................................19

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 1. INTORDUCTION

Development at What Cost? – Mines v/s Environment

The success of the Na’vi tribe in the James Camaroon’s

blockbuster Hollywood movie “Avataar” was replicated in real
life of Dongria Kondh tribe of Orissa when Ministry of
Environment and Forest rejected the controversial Vedanta
bauxite mining project in Orissa. The ground of rejection of the
project was violation of various rules & regulations including
“Forest Rights Acts”. This decision is being hailed as the
triumph of the powerless local tribes (prominently Dogria Kondh
and Kutia Kondh) over a multibillion mining giant (Vedanta). So,
Niyamgiri Hills, one of the prominent sources of Bauxite, is not
going to be mined now. The flora and fauna of the area has been saved from destruction. The local tribes will
continue living self sustained life as usual.

However, the story of the triumphant local tribe is only one side of the coin, another side being the loss of one of
the biggest mining project in India (worth $ 1.7 billion). The project could have brought economic development to
one of the most under-developed and malnourished districts of Orissa. Kalahandi district is infamous for its
hunger, malnutrition, lack of education and other development indicators. The state exchequer will also lose
significant revenue stream the project was expected to get. So, now the million dollar (in the Vedanta case billion
dollar perhaps) question is, can India and in particular mineral resources rich states like Orissa, Jharkhand,
Chhattisgarh, Madhya Pradesh, Andhra Pradesh, and Karnataka afford to miss such golden opportunity. Mining
is one of the main sources of revenue for these states. A developing country like India, which is also rich in
mineral resources, cannot do away with such big-ticket projects. These projects bring lot of revenue which is
needed for the overall development of the country. At the same time development need to be sustainable. So
how do we balance this apparently lopsided equation?

The moot question now is “Development at What Cost?”

This report is an effort to find the answer to the critical question and lessen the gap between the two objectives,
Development and Environment Conservation. However, I am convinced of the fact that due to the very nature of
the mining industry one cannot make the perfect balance between mining activity and environment sustainability.
Any mining activity is bound to pollute the environment, is bound to leave unwanted residue as a by-product, and
is bound to affect the flora & fauna in the vicinity. Although we can bridge the wide gap to some extent by
adopting “Sustainable Mining” which will lead to sustainable development and not destructive development.

In order to find the solution first we need to study the present mining industry scenario in India and its impact on
various factors like our Environment, the Local Inhabitants, Flora & Fauna, and Water resource. We also need to
briefly look through our administrative and legal provisions to find out how equipped these are to handle the
various issues arising from mining activities. Further we will study controversial mining project cases, like
Vedanta project, and POSCO project in detail in order to find out various ways of sustainable mining leading to
sustainable development.

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4|Page
 2. INDIAN MINING INDUSTRY

Globally, the mining industry is in boom time. World prices of minerals, ores and metals have soared to record
levels thanks to unprecedented demand from the resource and power 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 growth figure given by Department of Mining, In India, the value of mineral production has increased more
than three times since the sector was ‘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.

However, mining’s contribution to the nation’s GDP has stagnated at a mere 2.2-2.5% for more than a decade
now. The sector contributes very little to the exchequer through royalties and taxes, as the minerals are cheap,
and royalties low. 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, especially when the stakes are so high.

Indian mining is characterised by a large number of small mines, dominated by the public sector, which accounts
for 75% of the total value of mineral production. However, lately private sector including foreign multinational
companies has been pocketing big mining projects. National Mineral Policy (NMP), announced in March 1993,
introduced for the first time the idea of encouraging private investment in exploration and mining. Thirteen major
minerals—iron ore, manganese ore, chrome ore, sulphur, gold, diamond, copper, lead, zinc, molybdenum,
tungsten, nickel, and platinum group of minerals—hitherto reserved exclusively for the public sector were opened
up to the private sector. The Mining policy is pushing the industry to move toward privately owned, large-scale,
mechanised mines. Foreign direct investors and multinational mining companies are being welcomed. This
means decreasing employment generation capability of the sector and comparatively larger drain of wealth away
from the country.

According to an estimate the formal mining industry in India employs just 5.6 lakh people and this number is
coming down. Between 1991 and 2004, the number of people employed in mining came down by 30%, whereas
the value of mineral production went up four times.

3. IMPACT OF MINING

“Rich Lands, Poor People”, a seminal report brought out by the centre for Science and Environment (CSE) in
2008, addresses the issue of mining in different states and its impact on the environment and people. Key
observations of the report are worth 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 sector’s contribution to country’s gross domestic
product (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 lakh hectares of forest land already been diverted for mining in the
country. The report further highlights water and air pollution in the mining hotspots. Iron ore mining in India used
up 77 million tonnes of water in 2005-06, enough to met the daily water needs of more than 3 million people.

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Mining of major minerals generated about 1.84 billion tonnes of waste in 2006. Coal being the biggest polluter,
every tonne of coal extracted generates 3 to 4 tonnes of waste.

If we map (shown below)1 India’s forests, mineral-bearing areas, regions of tribal habitation and watersheds
together we find a startling fact – the country’s major mineral reserves lie under its richest forests and in the
watersheds of its key rivers. These lands are also the homes of India’s poorest people, its tribes (among them
are Primitive Tribal Groups also).

The mining industry has always tried to convince that such activity would lead to development, employment and
economic growth. But, things appear to be different. Mining is linked with poverty, poor development outcomes
and low economic performance. Of the 50 major mining districts, 60% figure among the 150 most backward
districts of the country. Mining-dependant states such as Jharkhand, Chhattisgarh and Orissa, demonstrate low
per capita incomes, lower growth rates and higher levels of mortality, and malnutrition as compared to states
which do not depend completely on their mineral wealth (for example Tamil Nadu, Maharashtra and Gujarat).

i. Impact of Mining on Forest

The following map shows the spatial distribution of mineral reserves in India and its overlap with forests.

1
Source: Centre for Science and Environment

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Overall, the total forested area in the 50 major mineral-producing districts amounts to 18% of India’s total forest
cover. Such overlap between the two resources threatens India’s already vulnerable forests. The government
estimates that the total forested land diverted for mining between 1980 and 2005 was 95,003 hectare, but it has
been estimated to be as high as 1, 64,610 hectare. From a strictly ecological perspective this figure is very
disturbing because forests are important natural habitats and are crucial to stabilising the landscape. Without
adequate forest coverage, India’s other invaluable natural resources, such as water and wildlife, are at risk.

ii. Impact of Mining on Local Inhabitants

Not only does deforestation wreak havoc on the ecosystem, but it also destroys people’s livelihoods. In fact, 90%
of India’s coal and 80% of its other minerals are found in tribal areas. Typical mining projects need large area of
land for its various activities like exploration, mining (both open pit & underground), refinery, and tailing
dam/pond. It leads to displacement of the traditional settlers from their lands. Although they are given
compensation in lieu of their land or are resettled in some other areas, most of the times the compensation
amount is meagre and in case of relocation they are devoid of their age old way of self sufficient life style. The
compensation amount is usually onetime payment which is given after taking away his/her constant sources of
livelihood.

These displacement conflicts help Naxals in spreading their tentacles among the alienated, angry and helpless
local tribes. And today Naxalism is one of the biggest headaches for Indian policymakers and the administration.
According to Ranchi-based Bindrai Institute of Research Study and Action (BIRSA) and the Jharkhand Mines
Area Coordination (JMACC), the spread of Maoist extremism in many parts of the country is the result o this
large-scale ravaging of natural resources. Tribals live in almost half of the 50 mineral-producing districts.
According to an estimate 2.5 million (among them 52% tribals) people were displaced by mining projects
between 1951 and 1990. Naxalism-affected area has now spread to 40% of the mineral-rich districts in the top
six mineral-producing states.

iii. Impact of Mining on Pollution

Apart from the land issue the rehabilitated villages in the vicinity of the mining project also suffers from various
kinds of pollutants and harmful radioactive materials emitted in the mining process.

Pollution in all possible forms is seen in various

mining areas: Air pollution, Water pollution,
Noise pollution, and harmful radioactive
radiation. Take the case of “Jaduguda” in
Jharkhand, the most important source of
Uranium in India. Due to increased demand of
Uranium for nuclear power generation and its
use in nuclear weapons world over unabated
exploration work is going on in Jaduguda. The
valuable mineral which was hidden in the womb
of the land has become curse of the local tribal
inhabitants.

For small quantity of Uranium one need tons

and tons of its ore which also contains other
harmful elements like Arsenic, Argon, Krypton and a yellow coloured sand. The sand loaded with harmful

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radioactive elements (of 3 types: Alpha, Beta, and Gamma) is very dangerous to human and animal’s health. The
yellow sand in liquid form is collected in a tailing dam/pond which is supposed to be kept out of any living being’s
reach. But due to carelessness of the mining corporations the ignorant and unaware local tribals come in contact
with the harmful radioactive elements through various ways. Sometimes its seepage into nearby water streams
which is consumed by the locals. During hot summer days the liquid sand gets dry and engulfs the whole 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,
Skin and Lung Cancer, TB, and Respiratory problems are some of the diseases associated with the radioactive
elements.

Apart from the invisible radioactive radiations there are other visible pollutants in the form of suspended dust
particle in the air which the local villagers breathe, contaminated water consumed by them. Now contrast all
these with their pre-mining environment with fresh air to breathe, pure natural water to drink, comparatively
healthier lifestyle devoid of all the deadly diseases. It’s scary to me at least.

iv. Impact of Mining on River System

Significant portions of India’s 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 rocks from which minerals are mined also form the catchment zones
that feed the rural India. Rivers propel growth as well as hold a revered status in Indian society. However,
Pollution and landscape degradation as a result of mining affect both the quantity and quality of water in rivers.
When mine wastes are casually dumped into the river valleys, it pollutes rivers; increases silt loads and bring
harmful pollutants into the water. Due to the silt accumulation natural flow of the rivers gets disrupted and results
in destructive floods.

In addition to threatening the natural course of waterways, mining near river basins, especially in underground
coal mines, puts workers at risk of accidents due to inundation. In 1975, for example, over 350 miners were killed
when water gushed into coal mines in Chasnala, Jharkhand.

v. Mining and Development

Undoubtedly mining is a source of revenue for the exchequer and thus contributes to country’s Gross Domestic
Product. It creates job opportunities in mines and mining related industries, like refining, metallurgy etc.
Sometimes it also results in better infrastructure like road and rail links to the mine areas and other amenities.
There are countries like Mongolia where mining contributes to approximately 25% to the country’s GDP. But
mining activity is not as crucial for Indian economy as its contribution to India’s GDP is meagre 2.5%. While its
long term cost in the form of environmental repercussion and social crisis outweigh the economic benefits.

While mining companies and politicians espouse the default connection between industrial development and
economic growth, the reality is not so rosy. Mining produces wealth, not for those whose homes are uprooted
who have been devoid of their lands and other rights on forest and water sources but for the wealthy mining
corporate. In Keonjhar, for example, Orissa’s most mined district, 60% of the population lives below the poverty
line and only 39% have access to safe drinking water. It is no accident that the people most reliant on the land
bear the brunt of mining’s disregard for the environment. They are both witnesses and victims of the plunder of
India’s natural resources.

The exchequer also does not get its share in form of taxes and royalty commensurate with the rates prevalent in
many other countries, like Australia, Canada, U.S.A. Illegal mining is yet another menace associated with the

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mining industry. According to a government agency estimate there are about 15000 illegal mines spread across
the country as against 8700 legal mines. Many times the miners encroach upon neighbouring areas of their
allotted land thus making the boundaries between legal and illegal mining blurred. This insatiable greed of wealth
of a few individuals and organisations is causing enormous environmental problem and social crisis.

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 4. MINING RELATED RULES & REGULATION

Having discussed various problems associated with the mining activity and its adverse impact on all its
stakeholders we are now ready to look into the law of the land associated with mining activity. There are certain
rules & regulations stipulated by Indian Constitution in form of various acts and other statutes to take care of the
interest of all the stakeholders in mining activity. Most prominent among them are:

1. Mines and Minerals (Development and Regulation) Act, 1957

2. National Mineral Policy, 1993
3. New Draft Mines and Minerals (Development and Regulation) Bill, 2010
4. Forest Rights Act 2006
5. Forest (Conservation) Act, 1980
6. Environment (Protection) Act, 1986

1. Mines and Minerals (Development and Regulation) Act, 1957

The Mines and Minerals (Development and Regulation) Act, 1957, came into force at a time when governments
required much discretionary power to regulate a nascent mining sector. The rise of the market economy in the
early 1990s brought about a fundamental change in the government’s attitude to mining. The act was first
amended in 1972, enhancing government control over mining.

In 1988, the Mineral Conservation and Development Rules (MCDR) were revised to enable Indian Bureau of
Mines to monitor and regulate mining activity. The “Environment section” of MCD rule book contains detailed
guidelines to be followed by the mining companies for:

 Removal and utilisation of top soil

 Storage of overburden, waste rock, etc.
 Reclamation and rehabilitation of lands
 Precaution against ground vibrations
 Control of surface subsidence
 Precaution against air pollution
 Discharge of toxic liquid
 Precaution against noise
 Permissible limits and standards
 Restoration of flora

2. National Mineral Policy, 1993

Alongside the economic liberalisation introduced by the government in 1991, a comprehensive mineral policy
aimed at encouraging the flow of private investment and introduction of state-of-the-art technology in exploration
and mining was planned. The National 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.

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Consequent to the NMP1993, amendments were 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 ticket projects of multinational companies like Vedanta, POSCO can be
attributed to the Mineral Policy.

However, in spite of increased private participation we do not find international best mining practices geared
towards sustainable mining. These companies are here only for their profit maximization and least concerned
about the welfare of local population and environmental aspects.

3. New draft Mines and Minerals (Development and Regulation) bill, 2010

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

 Co-operatives,
 Implementation of sustainability development framework, and
 Equity participation of the population.

Union minister of Mines, Mr. B. K. Handique, stated that a special mission was being tasked to examine
feasibility of new and green technologies for bauxite mining dealing with wastes in a sustainable manner.

Government of India constituted a Group of Ministers (GoM) to address the issues thrown 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 making 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 with 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 skill enhancement of the local population in the resettlement and rehabilitation package is also
proposed in the bill. Moreover it also seeks to adopt the best principles of sustainable development of mines and
mining areas from existing global experience.

4. Forest Rights Act 2006

The Forest Rights Act, 2006, also known as the Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, seeks to acknowledge community rights on forest land.

Forest Rights Act is a special law in contrast to Forest Conservation Act, a more general law.
As per the Preamble of the Forest Rights Act, forest dwellers are ‘integral to the very survival and sustainability of
the forest ecosystem’. Therefore, in law, forests now include forest dwellers and are not limited to trees and
wildlife.
Section 5(c) has authorized the Gram Sabhas to ensure that their habitat is preserved from any form of
destructive practices affecting their cultural and natural heritage.
According to section 4(5) of FRA, there can be no removal or eviction of people from forest land unless the tribal
rights under FRA have been recognized and the verification procedure is complete.

However, there is little effort to implement the provisions of the Forest Rights Act. As we have seen in the case of
Vedanta bauxite mining project in Niyamgiri hills, Orissa, how openly the regulations were flouted in collusion

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with the local administration. The District Admininstration did not attach the letters from Gram Sabhas with their
certificates with the malicious intention of getting the clearance illegally.

5. The Forest (Conservation) Act of 1980

Ever since the subject of forests was transferred from the State List to the Concurrent List under the Constitution
in 1976, the Centre's powers 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 without the Central government's
approval. However, the definition of forest itself became contentious making room for Supreme Court to decide
on case-to-case basis.

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

 On use of forest land for “non-forest purpose”, i.e., any purpose other than reforestation and wildlife
conservation
 On assigning / leasing any forest land to any private person or corporation not managed or controlled by
Government
 On clearing of naturally grown trees in the reserved forest land

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

 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.
 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.
 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 (Protection) Act, 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 checklist 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

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 5. RECENT CONTROVERSIAL MINING PROJECTS IN INDIA

i. Vedanta mining project in Orissa

The Vedanta issue in Nanjigarh, Orissa is not a new one. it started in 2003, when Vedanta Alumina, a Sterlite
Group company, signed joint venture agreement (74:26) with the Orissa Mining Corporation (OMC) for
developing bauxite mines at the Niyamgiri hill near Lanjigarh in Kalahandi district and the Khambasi hill in
adjoining Rayagada district, for use in its one-million-tonne alumina refinery.

In 2005 the Orissa government forwarded a

proposal to the Union Ministry for Environment
and Forests (MoEF) for the diversion of 660.749
hectares of forest land for mining bauxite in
favour of the Orissa Mining Corporation (OMC) in
Kalahandi and Rayagada districts.

The Forest Advisory Committee (FAC) in the

MoEF recommended “in principle” approval on
October 27, 2007, stipulating certain conditions.
Supreme Court also ruled in favour of the project and gave go-ahead.

Here the point to note is that the approval granted was only “in principle”, subject to fulfilment of some conditions,
and not final one. Being overly optimistic Vedanta built a bauxite refinery near the Dongria’s mountain before
getting legal clearance to mine. It also constructed a conveyor belt from hill top to the refinery to transport the
mined ore, encroaching on the reserved forest area of the hills without legal permission.

The state government gave full support to the project. According to the chief minister, Mr. Naveen Patnaik,
"These investments in Orissa were meant to generate jobs for the people and add to the state's revenue.
Therefore, they should be given go ahead," he said, adding that tribal dominated backward district like Kalahandi
had never received such a huge investment in the past.

But all this was not acceptable to the local tribal

population (prominent among them are Dongria Kondh,
Kutia Kondh, and Majhi Kondh) who inhabit in the
forest area surronding the Niyamgiri hill. For them
Niyamgiri hills (reverred by them as “Niyam Raja”) is
their God. They stated protesting to save their forest,
mountain, and their gods. The local inhabitants are
content with their self-sustaining life style. They grow
various crops in the fields surrounding the Niyamgiri
hills. Various herbs found in the hill forests are used as
medicine, they don’t need any hospital for medical
treatment. But the proposed Bauxite mining has threatened the whole eco-system of the region.

A video shot by “Survival International”, an organization supporting tribal peoples worldwide, depicts the grave
situation and the condition of the local tribes very succinctly. Local tribal leaders, half clad in loin cloth with an
axe on their shoulder, are shown protesting encroachment on their mother land. They are quite angry and
determined in their opposition ready to sacrifice themselves for the cause. Lado Sikaka Majhi, Dongria tribe

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leader said, "Vedanta is going to harm our Niyamgiri hill which is the place of our Niyamraja God. Our God has
got angry and that is why our prayers and herbs, which used to have magical cure earlier is not working
anymore."

Red mud, toxic slurry - refinery’s 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 after washing in rivers close to the refinery. Cattle are said to have died after
drinking 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 kendu leaves. We want Vedanta to remain here."

But that’s the crux of the mining debate - the number of people economically displaced by the mining project, is
far greater than those who will 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 to N. C. Saxena committee report (committee constituted by the
Environment Ministry to examine the Mining activity) the proposed mining lease (PML) area is intimately linked,
by way of economic, religious, and cultural ties, to 28 Kondh villages with a total population of 5,148. 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 cover will 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 the N. C. Saxena Committee, which influenced the MoEF's decision not to
grant the final clearance:

 The project would severely disturb important wildlife habitat that has been proposed as part of the
Niyamgiri Wildlife Sanctuary.
 More than 1.21 lakh trees would need to be cleared for mining besides many more lakh shrubs and
herbal flora.
 Mining on the scale proposed in this habitat would severely disturb elephant habitats and threaten the
important task of elephant conservation in south Orissa.
 The mining operations involve stripping of more than seven square kilometres of the Niyamgiri hilltop,
which would drastically alter the region's water supply.
 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.
 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.
 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.

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  Allowing mining in the PML area would shake 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.
 Fate of the Primitive Tribal Groups (PTGs) needed some emphasis, as very few communities in India in
general and Orissa in particular came under the ambit of such a category. Their dependence on the
forest being almost complete, the violations of the specific protections extended to their “habitat and
habitations” by the FRA were unacceptable.

ii. POSCO Steel Project in Orissa

Posco, one of the world's biggest steel makers, signed a deal with the
Orissa government on June 22, 2005 to set up the $12 billion project near
the port town of Paradip by 2016.

The steel maker requires about 4,004 acres, mostly government land, for
the project of which 2,900 acres are forest land. Posco and the state
government say the plant, in Jagatsinghpur district, will create jobs in an
impoverished part of the country.

However, thousands of villagers have been protesting the project, saying it

will displace them from their homeland and ruin their betel-leaf farms. The
agitators don't seem to be satisfied by the government's assurances.
Villagers say the plant will force them out of their farmland and displace about 20,000 people. "If the government
wants to build Posco by killing us, we are ready to die. But, would not give our land to Posco," says fifty-five-year-
old Bharat Chandra who was injured during Saturday's clash. Beetle farmers like Ranjan Mohanty earn Rs
10,000 per month by selling beetle leaves. Mohanty fears that if Posco takes away his land, the compensation he
would get would be less than Rs 2 lakh. "If I take Rs 2 lakh compensation given by Posco then that money will
get spent in one or two years. If I lose my livelihood from my land then my family will soon starve," says Mohanty.
The Posco site in Balithutha has seen clashes between the police and the anti-Posco activists, supported by the
Left party and NGOs, which left dozens injured. Seeing an opportunity to widen their base Naxals stepped in and
called for a bandh in five states following the clashes.

Surprisingly though, not all villagers are against the Posco plant. Around 52 families of pro-Posco villagers, who
have been driven away from their home by agitators, live in a transit camp run by the company Posco. The
situation at ground zero still remains volatile as both sides prepare for the next confrontation.

A four-member Meena Gupta Committee constituted by the Ministry of Environment and Forest is visited the
Posco steel plant site to gather views of the people affected by the project in Jagatsinghpur. The Committee is to
ascertain if the forest rights act was properly followed. "We are hearing the view point of all the people and after
making the proper survey and verifying all the records, we will submit our report to the ministry," said Meena
Gupta, Head of the MoEF committee.

The visit of the Saxena Committee followed by the Meena Gupta Committee has given a boost to the anti-
POSCO movement. They see new hope in the Meena Gupta Committee after the project at Vedanta was stalled
on similar grounds.

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Posco requires 20 million tonnes of iron ore per year over 30 years for steel production at its planned Orissa
project at full capacity. The state government had granted permission to Posco for prospecting over 2,500
hectares in the Khandadhar hills in the district of Sundergarh but it faced a setback after a court set aside the
decision.

Other Projects

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 in Vishakhapatnam district of A.P.
which will affect the refining businesses of Andhra 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 Kudremukh, 110 km west of Mangalore in Karnataka caused
many problems. The dust pollutant from the mining operation has led to decreased paddy production in the
valley.

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 6. TOWARDS SUSTAINABLE MINING and DEVELOPMENT

Now that we have seen the various facets of mining operations and also studied the cases of two large mining
projects in India we are ready to explore “Sustainable Mining” concept.
Famous economics scholar Samuelson’s defined study of economics as follows: “Economics is a social science
concerned chiefly with the way society chooses to employ its resources, which have alternative uses, to produce
goods and services for present and future consumption”. Here the emphasis is on making choice under
conditions of scarcity, and sustainable consumption.
According to the widely accepted theory any society must make choices about three important problems. They
are:
1. What to produce and in what quantities? (e.g., Food or weapons; 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. For whom 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 make 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 don’t have any alternative other than carrying on mineral production
because of its demand in the international market and as well as utility in the domestic market. For a developing
country like 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 know that it’s easier said than done. But we do not
have much choice if we 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 like 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 taking consent of the affected population in mining decisions should be implemented
properly. The miners cannot just come, strike 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 key elements in sustainable mining, as mining itself cannot be sustainable. The area of intersection
of the three elements in the diagram represents sustainable mining.

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 Society

Economy Environment

Learnings from International Best Practices

Being a developing country and thus a late starter in various development activities has some benefits also. As
we have many such real life mining cases before us to learn from and adopt the best time tested best practices
followed in other countries. Following are some of the sustainable mining practices worth emulating in India.

 External verification/audit report.

 Environment management System certification (ISO 14001).
 Improve the plant’s energy efficiency.
 Meet future regulatory requirements for reducing Green House Gases (GHG) emissions.
 Re-vegetation of lands surrounding the company’s tailings facilities.
 Formalizing its engagement framework and its relationships with communities of interest.
 Wildlife management plan.
 Worker health and safety guidelines, etc.

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 7. CONCLUSION

After studying the mining industry in India and its impact on the environment and local inhabitants we can say
that many times the cost (tangible as well as intangible) of such mining operations outweighs its profit. However,
we cannot ignore the role of mining industry in our country’s development altogether. So we need to set our
priorities straight and follow a developmental model which is sustainable.

The need of the hour is to strategically plan and design all

mining related industries to minimize environmental
degradation and avoid clash with the local population. The
Mining ministry along with Ministry of Environment and Forest
can identify and ear mark biodiversity rich forest land and tribal
villages as “No Go” area, where no mining lease will be
permitted. This concept of earmarking “Go” and “No Go” area
blocks is already in practice in coal mining. The same can be
extended to other mining activities as well.

Also the new Mines and Mineral (Development and Regulation)

Bill need to be adopted and implemented properly. Consent of
the local population in all developmental activities in and
around their habitations and profit sharing with the affected
population will go a long way in inclusive development. All the
rules and regulations should be implemented in letter and spirit.

Further adopting best practices from international mining and

use of green technology will lead to sustainable development.

The Niyamgiri episode should be any eye-opener for the Indian government. Following the Dongria Kondh tribe’s
successful movement our prime minister has created new ‘National Council for Tribal Welfare’ which will review
and guide India’s policies affecting the over 80 million tribal people living in the country. It’s certainly a welcome
move. However need of the hour is to be more proactive in our approach towards this sensitive issue rather than
just reacting late. Otherwise the tribals would not be able to associate themselves with independent India’s
growth story and they may also equate “Indian Constitution with a piece of Toilet paper”.

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 8. REFERENCES

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

worldwide)
2. http://www.survivalinternational.org/films/mine (This video link contains footage from Niyamgiri,
interviews with Dongria Kondh leaders and an interview with a Survival campaigner on the mining
decision)
3. N.C.Saxena Committee 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 for Science
and Environment)
6. CNN IBN News Footages

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