Rajiv Awas Yojana to begin in 250 Cities 

States Want Liberal Financial Norms given the Fund Constraints of States / Urban Local Bodies

 
A one day conference on Rajiv Awas Yojana (RAY) with the State Ministers of Housing, Urban Development, Municipal Administration and Local Self Government was organised by the Union Ministry of Housing and Urban Poverty Alleviation (HUPA) here today. The conference was inaugurated by Kumari Selja, Minister of Housing and Urban Poverty Alleviation and Minister of Culture.

RAY envisages a ‘Slum-free India’, where every slum dweller and urban poor will have access to basic civic and social services and decent shelter. It will bring existing slums within the formal system and enable them to avail the same level of basic amenities as the rest of the town; redressing the failures of the formal system that lie behind the creation of slums; and tackling the shortages of urban land and housing that keeps shelter out of reach of the urban poor.

Speaking at the conference Kumari Selja pointed out that RAY has been designed with a “vision of creating a Slum- Free India – an India comprising of inclusive and equitable cities, where every citizen has access to the basic civic and social services and decent shelter.”

Bringing in the comparison between the number of people staying in the urban and rural areas in India the Minister said that the urban population of India will double itself over the next two decades and around 31.16% of the total population will stay in the urban areas. She said, “Rajiv Awas Yojana has the potential to radically transform the urban landscape of India and the living conditions of the urban poor.”

To address the growing needs of urbanisation, Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was launched in 2005. She added, “This mission made massive capital outlays for both city infrastructures as well as for integrated slum development and provision of basic services. Under the components of integrated slum housing and provision of basic services, my Ministry is supporting construction of about 16 lakh houses across the country at a cost of Rs 40,000 Crores and the feedback and response from the States and the experience from JNNURM have been important inputs into the design of RAY.”

As in JNNURM, the central assistance is conditional to reforms by the states. The reforms required here are directly linked to the objectives of the scheme, and necessary for the scheme to be successful. These reforms include the enactment of law and the assignment of property rights, as also reforms to policy to ease the land and affordable housing shortages, due to which we see this rapid proliferation of slums.

She further added, “The first set of reforms are related to legal empowerment of the poor, with the bedrock being the commitment and willingness of the State to assign property rights to Slum Dwellers through a legislation. The other reforms in this category are the other pro-poor reforms of JNNURM. These are, earmarking of 25% of the municipal budget into a non-lapsable fund for the urban poor and the earmarking of 20-25% of developed land for EWS and LIG housing.” She requested the states to address the reforms holistically by proper planning, institutional monitoring and adequately incentivising the private sector.

The minister assured her colleagues from the states that RAY would be executed as a “partnership between communities, urban local bodies, state governments and the Government of India”. She also added that the government will be establishing a new policy instrument called ‘Credit Risk Guarantee Fund’ to work in tandem with RAY. “This fund is expected to catalyse upto Rs. 20,000 crores of credit for housing in the coming years”, she added.

The scheme is expected to begin in 250 cities which have an estimated 32.10 million people living in slums. They will benefit by way of property rights and access to decent shelter, basic amenities and a dignified life. The inclusive city growth process will lead to enhancement of productivity at the bottom of the pyramid and will sustain the contribution of cities to the Gross Domestic Product (GDP).

Central Government will bear 50% of the costs of slum redevelopment. To encourage creation of affordable housing stock, the existing schemes of Affordable Housing in Partnership and Interest Subsidy Scheme for Housing the Urban Poor have been dovetailed into RAY. To encourage private sector participation in slum redevelopment, Central Government assistance can be used by the states and cities towards viability gap funding.

Shri Arun Maira, member Planning Commission who spoke on the occasion highlighted the need to demonstrate innovative and replicable models involving all Stakeholders and also said community participation is a sine quo non for the success of RAY.

The conference was attended by State Ministers, Principal Secretaries / Secretaries of the concerned State departments, Mayor of Kolkata, Representatives from Central government departments like Defence, Civil Aviation, Environment, Health etc, Eminent NGOs, eminent experts and academia.

Eminent social workers such as Madhu Kishwar, Sheela Patel, Vasimalai also welcomed the bold steps of the Government Of India in launching the path-breaking initiative and stressed the need to involve the communities from the planning stage till execution and post maintenance.

The states welcomed the initiatives taken by the Central Government and expressed support for the new programme. Focus was on larger cities, states requested that programme should be extended to smaller cities as well. The representatives from special categories states highlighted the need to keep in view special environment requirements while framing norms under projects. States also highlighted need to closely integrate livelihood opportunities into the programme and also wanted to have liberal financial norms given the fund constraints of states/ Urban Local Bodies.

The Minister of HUPA&C also released two statistical compendiums on Housing in India and Slums in India- 2011 and RAY guidelines.

Concluding the one day deliberations Kumari Selja reiterated that RAY in a joint venture between Centre, State and Urban Local Bodies with communities as a central driving force to achieve the ambitious objective of slum free India.

SHRIRAM EPC SUBSIDIARY WINS Rs.75 CRORE ORDER FROM GAIL

Chennai, 28 July, 2011: Shriram EPC Limited (SEPC), a leading service provider of integrated design, engineering, procurement, construction and project management services for power plants, renewable energy projects, process and metallurgical plants and municipal service sector projects throughout India and manufacturer of wind turbine generators, has announced that its subsidiary - Hamon Shriram Cottrell Pvt. Ltd (HSCL) has been awarded a contract amounting to Rs. 75 crore from the Gas Authority of India Ltd. (GAIL) for the construction of a Cooling Tower and Cooling Water Treatment Plant for the Pata petrochemical complex in Uttar Pradesh. The contract will be executed in 20 months.

HSCL specializes in the execution and construction of cooling towers and air pollution control systems and has positioned itself as one of the foremost suppliers in the business. It has been a pioneer in introducing new technology to the business and was responsible for the advent of fibreglass cooling towers in India. HSCL has also recently forayed into natural draft cooling towers. HSCL is a joint venture between Shriram EPC and the Hamon Group of Belgium.

Commenting on the contract, Mr. T. Shivaraman, Managing Director & CEO of Shriram EPC Limited, said, “This contract is another milestone for Hamon Shriram Cottrell as we aim to increase market share in the cooling tower solutions business in India. We are broadening our range of solutions to include air-cooled condensers and natural draft cooling towers amongst other products.

The opportunity for the business in India is vast as cooling towers serve to substantially decrease the operational costs of power plants. We expect power plant operators that aim to drive down costs to enlist HSC’s ability and expertise in the segment, which will contribute to Shriram EPC’s continued overall growth.

About Shriram EPC

Shriram EPC (NSE: SHRIRAMEPC, BSE: 532945) is one of the leading service providers of integrated design, engineering, procurement, construction and project management services for power plants, renewable energy projects, process and metallurgical plants and municipal service sector projects throughout India and overseas, and is also a leading manufacturer of wind turbine generators (WTG).

The EPC business is focused on providing integrated turnkey solutions for biomass-based power plants, process and metallurgy plants (including cement & thermal power plants), water and wastewater treatment plants, water and sewer infrastructure and pipe rehabilitation. The WTG business is focused on manufacturing, erecting and commissioning of MW Class and KW class WTGs.

Shriram EPC is headquartered in Chennai with offices in Mumbai, New Delhi, Kolkata and Beijing; and WTG and cooling tower factories in Puducherry, Chennai and Umbergaon (Gujarat). Their EPC project experience and footprint reaches across 16 states in India, and internationally in Zambia and France, while their WTG business has completed wind energy projects throughout India.

Kumari Selja inaugurates State Ministers’ Conference on Rajiv Awas Yojana

The Housing and Urban Poverty Alleviation Minister Kumari Selja has said that the Rajiv Awas Yojana is a ‘RAY’ of hope to the Urban Poor and Slum dwellers of the country. Inaugurating the State Ministers’ Conference on Rajiv Awas Yojana here today she said, RAY envisions an inclusive and equitable urban India where every citizen has access to the basic civic and social services and decent shelter. The Minister said, in the Government of India, we are now following a rights based approach to address the fundamental inequities affecting the poor. We have already enacted Right to Education and Right to Minimum Employment in rural areas, and are working on food security legislation. She said, RAY builds on that holistic rights based framework and establishes the rights of urban poor and slum dwellers for decent shelter and basic services in the cities.

Here is the full text of Minister’s speech:

“I extend a warm welcome to all the State Ministers, Mayors and other distinguished participants to this very important Conference on the Rajiv Awas Yojana. Rajiv Awas Yojana which is called RAY in short has the potential to radically transform the urban landscape of India and the living conditions of the urban poor. I am happy to inform you that our Government under able leadership of Hon’ble Chairperson UPA Smt. Sonia Gandhi and Hon’ble PM Dr. Manmohan Singh has approved this ambitious scheme. This scheme is a ‘RAY’ of hope to the Urban Poor and Slum dwellers of the country. RAY envisions an inclusive and equitable urban India where every citizen has access to the basic civic and social services and decent shelter.

RAY has been conceived in response to the need expressed by many of you present here especially from the State Governments, to graduate to a comprehensive scheme to address the gamut of issues relating to slums and affordable housing for the poor. I would like to thank you all for your support and active engagement with us in designing the scheme. The task before us now is to make this vision of Slum Free cities come to life. This Conference has been organized precisely for the purpose of deliberating and discussing on the approaches and strategies for the way forward.

The world is urbanizing rapidly and India is also experiencing this demographic and economic transformation. As countries grow economically they also tend to urbanise. And India is no exception. India’s urban population is expected to double itself, growing from 286 million in 2001 to 573 million by 2030. Already provisional figures from the Census 2011 operations place India’s current urban population at 377 million, representing 31.16% of the total population.

Cities contribute to the GDP in a ratio which is more than double the ratio of population residing in them. This contribution is only expected to grow in future. The importance of cities in the future growth of the country thus, cannot be overemphasized.

To fully harness the potential of this urban growth, we also need to address the challenges of urban poverty. As per NSSO estimates although the percentage of the urban poor declined from around 49% in 1993-94 to 25.7% in 2004-05, yet the urban poor have grown in absolute numbers from 76.3 million to 80.7 million in this period. Majority of these urban poor live in slums and squatter settlements in conditions of squalor and deprivation. Slums are growing with the cities’ growth. The slum population in India is projected to be 95 million by next year, and 104 million by the year 2017. Census 2011 would give more robust data about the slums very soon as it has collected the data of all the notified and non-notified slums about the availability of housing and other basic services to slum-dwellers.

We must recognize that the people that are counted as the urban poor today play a significant role in the functioning, productivity and competitiveness of cities. At present the wealth and prosperity generated in urban centers is hardly ever shared with these people. This trend has to be changed.

The UN-HABITAT reports in their latest “State of the World’s Cities” that the lives of 172 million slum-dwellers in Asia have been improved through various policies and programmes. It also reports that this has been achieved chiefly through the efforts of countries such as India and China.

In India, credit for these achievements must be given to the efforts at all levels of government responsible for making this possible through various initiatives. The most important amongst them being the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) initiated in 2005. This mission made massive capital outlays for both city infrastructures as well as for integrated slum development and provision of basic services. Under the components of integrated slum housing and provision of basic services my Ministry is supporting construction of about 16 lakh houses across the country at a cost of Rs 40,000 Crores.

JNNURM has been successful in achieving the aim of focusing attention on the problems of inequity in urban areas. There is now an acceptance at policy levels, both at the state and municipal level, that the emergence of new slums can only be prevented if we create sufficient affordable housing stock.

The feedback and responses from the States and the experience under JNNURM have been important inputs into the design of RAY. RAY seeks to not only address the problem of existing slums but also aims to redress the failures of the formal system that lie behind the creation of slums. RAY builds upon the foundation laid by JNNURM by endowing the urban poor with the legal right to land or dwelling space in the cities. This bold and new approach aims to move the urban poor from the informal to the formal economy and give them an equitable stake in the growth of the city.

In the Government of India, we are now following a rights based approach to address the fundamental inequities affecting the poor. We have already enacted Right to Education and Right to Minimum Employment in rural areas, and are working on food security legislation. RAY builds on that holistic rights based framework and establishes the rights of urban poor and slum dwellers for decent shelter and basic services in the cities.

RAY is envisaged as a reform driven scheme, consolidating and building on the reforms initiated under JNNURM. The first set of reforms are related to legal empowerment of the poor, with the bedrock being the commitment and willingness of the State to assign property rights to Slum Dwellers through a legislation. The other reforms in this category are the other pro-poor reforms of JNNURM. These are, earmarking of 25% of the municipal budget into a non-lapsable fund for the urban poor and the earmarking of 20-25% of developed land for EWS and LIG housing. The states are requested to address the last reform holistically by proper planning, institutional monitoring and adequately incentivising the private sector.



The second set of reforms emanate from the understanding that we need to address the causes which constrain the creation of affordable housing stock and lead to emergence of slums. Under this arm of the reform package we are looking at amendments in Rent Control Acts to enable more rental housing stock entering the housing market. We are also seeking review of land conversion, land development and land use policies and will like to facilitate the simplification of building approval processes for housing and other developments to increase the supply of developed land and reducing the transaction costs and delays.

The key reform that binds all the efforts under RAY is ensuring entitlement to shelter and universal basic services by unlocking the potential of the poor through the assignment of property rights to the slum dwellers. To catalyse this, my Ministry has circulated a “Model Property Right to Slum Dwellers Act, 2011” to all the States/UTs for suggestions and comments. This model bill mandates the right to an affordable dwelling space, either in the name of the female head of household or, jointly in the name of the male head of household and his wife. Through this, we hope to be able to give every slum dweller a legal document of entitlement to the dwelling space and by extension, the provision of basic civic services and amenities. It is desirable that such rights be in-situ, as far as possible, to ensure linkage with livelihoods.

I hope during the course of the day, we will have fruitful discussions on the contours of the legal framework which is most suitable for the specific conditions prevailing in your States and Union Territories. Here, I would like to assure you that we are aware of the problems you are facing in dealing with the slums on central government lands. We have actively taken up the matter with the concerned Ministries so as to arrive at a policy approach which will take into account the requirements of the concerned Ministries and also be in consonance with the inclusive spirit of RAY.

As requested by the states during the consultations, RAY has been designed to be sufficiently flexible and decentralized. Crucial decisions regarding the pace, modalities and institutional arrangements for implementation are to be made by the States and Union Territories. RAY is expected to cover a total of 250 cities by the end of the 12th Five Year Plan, and the Ministry would encourage you to include cities based on your aspirations and financial or resource capabilities in consultation with us. I would like to share with my colleagues that at the operational level RAY is to be executed as a partnership between communities, urban local bodies, state governments and the Government of India.

RAY builds on a number of lessons learned during the implementation of JNNURM. At the structural level, RAY moves from an ad-hoc project-based approach of JNNURM to a whole city, all slums and whole slum approach. Although the planning has to be done for all slums, the interventions could be undertaken in a phased manner. The State and City Slum Free Plans of Action are expected to lay down the road map for such implementation. In this context, I would urge you to think innovatively and design models which are suitable to different categories of the poor. Models giving various housing options to the urban poor ranging from outright ownership, rental and rental to ownership, etc will be encouraged.



Another key departure from previous initiatives is the strong focus and central role being given to slum communities. Under JNNURM we have seen that the projects having strong community involvement right from the planning stage were most successful in terms of timely completion, lower costs and better designs etc. RAY therefore advocates strong community involvement in planning, decision-making, implementation, monitoring and then asset maintenance. To institutionalize greater involvement of the urban poor and granting them greater ownership of the mission, my Ministry will promote a beneficiary and community-led construction model under RAY. Through this, we anticipate that the quality of construction will be greatly improved and the post-construction management and maintenance issues will be holistically tackled. With greater beneficiary involvement in the construction process, the dialogue between urban poor communities and the ULBs will be strengthened to allow for greater mutual accountability and an equal partnership and stake in the mission. This approach may seem a little tough initially, but we all would admit that it is the most inclusive and sustainable approach.

RAY also envisages convergence of existing livelihood promotion schemes with it. SJSRY, the only employment scheme aimed at urban poor, could be immediately converged with RAY. The allocations under SJSRY are continuously increasing and I would advise the states and Union Territories to target it to RAY beneficiaries than to thinly spread it.

It is clear from the magnitude of the problem that Government funds alone will not be sufficient to cover the projected needs. The design of the RAY mission therefore has, built into its architecture, the support for Public-Private-Partnerships and other innovative models for slum up-gradation, redevelopment and new projects. Towards this end, the two existing schemes of Affordable Housing in Partnership and the Scheme for Interest Subsidy for Housing the Urban Poor have been dovetailed with RAY and are being revised to make them more effective.

We need to recognize in this context that housing is typically a continuum; with people gradually moving from dormitory or temporary shelters to rental or leased accommodation and from small one roomed to two or three roomed houses. We therefore need supply of diverse types of housing such as rental, transit, dormitories and lease-hold housing, through the Housing Boards and other public and private agencies. We also need to ensure timely and easily accessible credit flows that can enable the EWS and the poor to incrementally upgrade their homes in line with their needs and resource capabilities.

A new innovative instrument to trigger credit markets for the urban poor called the Mortgage Risk Guarantee Fund is also being formulated to work in tandem with RAY .This fund will cover the risks of banks lending to the poor. We expect that this Fund would catalyse up to Rs 20,000 Cr of credit for housing in the coming years. We have also been successful in getting Affordable Housing Projects included under Section 35AD of the Income Tax Act, 2010 which provides tax incentives to the developers. This would incentivize private developers to invest in affordable housing projects.

RAY is a new age scheme which has necessarily to be executed as a partnership between the communities, industry, financing institutions, Cities, State governments and the Government of India if it is to succeed. For this we would have to develop adequate capacity in the functionaries, at all levels, entrusted with its implementation. We must specially bring the political executives and officials, starting from the small municipal town to the municipal corporations, out of the confines of thinking within the existing municipal framework. We have to giving them exposure, training and make them aware of the best practices in India and outside. We have to create new Resource Centers and strengthen the existing ones. Unless we create strong institutions, delivery would not be able to match the expectations of the people. I can assure you that funds are no constraints for these efforts.

RAY is nothing short of a Mission for urban reconstruction. It is ambitious, but achievable, with our joint efforts. I look forward to the deliberations of this conference with expectation, and am confident that we will arrive at definite plans of action for the State and the cities.”

SAIL Q1 turnover jumps 20% y-o-y

New Delhi:   The unaudited financial results of Maharatna Steel Authority of India Limited (SAIL) for April-June (Q1) of the current financial year, showed 19.7% growth in sales turnover at Rs. 11,891 crore, over the corresponding period last year (CPLY). However, due to sharp increase in input costs, profit after tax (PAT) at Rs. 838 crore was lower by 29% compared to CPLY. During Q1, SAIL had to bear additional expenditure of nearly Rs. 580 crore on cost of coal alone. Of this, around Rs. 422 crore was on account of higher cost of imported coking coal, with prices rising from $200 per tonne in Q1 last year to $330 in Q1 of FY ’12. The company registered profit before tax (PBT) of Rs. 1,229 crore, 29.7% lower than CPLY. The results were taken on record here today by the company’s Board of Directors.

The impact of higher cost was, however, partially neutralised by better product-mix, higher sales and savings achieved through management initiatives. Operating at 110% of rated capacity, SAIL plants maintained production of saleable steel at the same level of 3.044 million tonnes as achieved in Q1 last year despite shutdown of two blast furnaces for capital repairs during April-June ’11. Higher production was recorded in items such as HR plates (12%), ERW pipes (14%), CR coils/sheets (9%), medium structurals (7%), HR coils (6%), rails (2%), etc. Thrust was also laid on production of crude steel through the energy-efficient continuous casting route. As a result, highest-ever Q1 production of crude steel through this route was achieved at 2.35 million tonnes, showing a growth of 5% over CPLY.

At 2.75 million tonnes, sales of steel by SAIL were 18% higher than CPLY, with domestic sales growing at 17% to 2.67 million tonnes and 131% increase in exports at 84,000 tonnes. Q1 saw sales growth in value-added items such as wire rods (65%), galvanized products (43%), HR coils (30.6%), pipes (28.5%), railway materials (10%), etc. Growth of 21% in sales through the company’s countrywide dealer network also contributed handsomely. Branded products such as SAIL-JYOTI (galvanized plain & corrugated sheets) and SAIL-TMT (rebars) witnessed sales growth of 57% and 9.5% respectively through this distribution channel. During Q1, 51 new dealers were added to SAIL’s ever-expanding dealer network.

Responding to the Q1 results, SAIL Chairman Mr. C.S. Verma said: “With coking coal prices expected to moderate in the coming months due to stabilization of production in Australian mines that were affected by floods, we are hopeful that our cost burden will ease in the following quarters of this financial year. Also, though steel prices have remained stable and demand for steel subdued so far, we are looking at domestic demand growing progressively in the latter half of FY ’12.”

Index of Eight Core Industries (Base: 2004-05=100) June 2011


The Index of Eight core industries having a combined weight of 37.90 per cent in the Index of Industrial Production (IIP) with base 2004-05 stood at 138.98 in June 2011 and registered a growth of 5.2% compared to 4.4% registered in June 2010. During April-June 2011-12, eight core industries registered a growth of 5.0% as against 6.8% during the corresponding period of the previous year 2010-11.

Coal

Coal production (weight of 4.38% in the IIP) registered a growth of (-) 3.3% in June 2011 compared to growth of 0.8% in June 2010. Coal production grew by 0.2% during April-June 2011-12 compared to an increase of (-) 0.6 during the same period of 2010-11.

Crude Oil

Crude Oil production (weight of 5.22% in the IIP) registered a growth of 7.7 % in June 2011 compared to a growth of 6.8% in June 2010. The Crude Oil production registered a growth of 9.5% during April-June 2011-12 compared to 5.9% during the same period of 2010-11.

Natural Gas

Natural Gas production (weight of 1.71% in the IIP) registered a growth of (-) 11.7% in June 2011 compared to growth of 25.4% in June 2010. The Natural Gas production registered a growth of (-) 10.2% during April-June 2011-12 compared to 37.0% during the same period of 2010-11.

Petroleum Refinery Products

Petroleum refinery production (weight of 5.94% in the IIP) registered a growth of 4.7% in June 2011 compared to growth of 2.9% in June 2010. The Petroleum refinery production registered a growth of 5.3% during April-June 2011-12 compared to 5.3% during the same period of 2010-11.

Fertilizers

Fertilizer production (weight of 1.25% in the IIP) registered a growth of (-) 2.4% in June 2011 compared to (-) 6.7% in June 2010.Fertilizer production grew by 1.1% during April-June 2011-12 compared to an increase of (-) 2.6% during the same period of 2010-11.

Steel

Steel production (weight of 6.68% in the IIP) registered a growth of 12.5% in June 2011 compared to 4.3% in June 2010. Steel production grew by 7.8% during April-June 2011-12 compared to an increase of 8.6% during the same period of 2010-11.

Cement

Cement production (weight of 2.41% in the IIP) registered a growth of (-) 0.8% in June 2011 compared to 3.7% in June 2010. Cement Production grew by (-) 0.9% during April-June 2011-12 compared to an increase of 7.0% during the same period of 2010-11.

Electricity

Electricity generation (weight of 10.32% in the IIP) registered a growth of 8.2% in June 2011 compared to a growth of 3.8% in June 2010. Electricity generation grew by 8.3% during April-June 2011-12 compared to 5.7% during the same period of 2010-11.

U.S. Economy Slowly Recovers from Worst Recession on Record

By MacKenzie C. Babb

Staff Writer

 

Washington - The U.S. economy has grown for the eighth straight quarter, showing an increase in the gross domestic product at a 1.3 percent annualized rate from April to June, according to the Commerce Department.

 

The growth came in below private-sector expectations of 1.8 percent, according to the latest GDP report from the Commerce Department's Bureau of Economic Analysis. The statistics, released July 29, revised growth for January to March from 1.9 percent down to 0.4 percent, indicating a near stagnation of the U.S. economy.

 

Another notable revision was to 2009 figures. GDP for that year was revised down 0.9 percentage points, which Commerce Secretary Gary Locke said in a July 29 statement indicated that "the recession was even more severe than initially estimated." The recession is already recognized as the deepest since official quarterly estimates began in 1947, according to the White House.

 

The GDP measures a country's total output of goods and services and serves as a primary indicator of economic health.

 

Locke said the economy "isn't growing as fast as it needs to" and called on U.S. leaders to build on progress made toward financial recovery since 2009 by enacting legislation to reduce the country's debt while strengthening job-creating capacities and enhancing global competitiveness for the future.

 

Austan Goolsbee, chair of President Obama's Council of Economic Advisers, said the United States is "at a fragile moment in the world economy and cannot afford to do anything to undermine our recovery." He said the unemployment rate remains "unacceptably high" and that faster growth is needed to replace jobs lost in the economic downturn.

 

Goolsbee said the report "underscores the need for bipartisan action to help the private sector and the economy grow," through measures to create jobs, extend unemployment insurance and continue the payroll tax cut. He also called on Washington to pass pending free trade agreements, to create an infrastructure bank to help create American jobs and to take a "balanced" approach to deficit reduction.

 

Goolsbee said increases in net exports, fixed investment and federal government spending contributed to the second quarter growth. But the gains were partly offset by a decline in spending by state and local governments, a sharp drop in motor vehicle purchases and an increase in imports, he said.

 

The Commerce Department will release its revised second quarter growth estimates August 26.

 

(This is a product of the Bureau of International Information Programs, U.S. Department of State.) 

Statement at the Conclusion of the IMF Co-Sponsored Tenth Regional Conference on Central America, Panama, and the Dominican Republic

 

July 29, 2011

The following statement was released today in Managua, Nicaragua, by the Deputy Managing Director of the International Monetary Fund (IMF), Ms. Nemat Shafik, the Director of the Western Hemisphere Department, Mr. Nicolás Eyzaguirre, the vice-president of the Central American Monetary Council, Mr. Rodrigo Bolaños Zamora, the President of the Central American Council of Finance Ministers, Mr. Alberto José Guevara Obregón, the Secretary General of the Central American Council of Financial Sector Superintendents, Mr. Victor Urcuyo, and Mr. Antenor Rosales Bolaños, President of the Central Bank of Nicaragua and host of the conference:

“The ministers of finance, central bank governors, and financial sector superintendents of Central America, Panama and the Dominican Republic, jointly with representatives of IMF management and staff, and representatives of other international financial institutions, met in Managua, Nicaragua, during July 28–29 to discuss the regional economic outlook and identify policies to consolidate macroeconomic and financial stability and raise growth. This year’s conference focused on the prospects for the global economy and its impact on the region, the fiscal policies that would be most appropriate for the region in the current juncture as well as on the structural reforms that would help boost economic growth over the medium term.

“The conference took place against the backdrop of a global expansion that remains unbalanced. Growth in many advanced economies is still weak, while growth in much of the emerging and developing world continues to be strong. The US economy is not likely to grow at very fast rates on the coming years. Similarly, commodity and food prices are expected to remain relatively high though stable. Participants agreed that greater risks are also posed by the depth of the fiscal challenges in Europe and United States.

“The economies of Central America, Panama, and the Dominican Republic are gradually recovering from the global economic crisis of 2008–09. In most countries, prudent fiscal policies in the years leading up to the crisis allowed to mitigate the impact of the global slowdown by letting fiscal deficits widen. Participants in the conference emphasized that, as the region recovers, fiscal policy should aim to rebuild the buffers used during the global recession, including ensuring sustainability of debt and public finances. Participants agreed that in most countries the consolidation process should focus on keeping government expenditure in check, increase its efficiency, and redoubling efforts to increase tax revenues.

“Participants agreed that further strengthening the monetary policy frameworks of the non dollarized economies of the region would help increase the effectiveness of monetary policy and achieve lower and more stable inflation rates. In this context, it was discussed how to improve other monetary control instruments, and the importance of increasing exchange rate flexibility to help reinforce price stability as the main objective of monetary policy. Another key step to strengthen monetary policy frameworks would be to further strengthen central banks, particularly as some countries aim at enhancing or moving towards inflation targeting regimes.

“The key medium-term challenge for Central America is to raise economic growth and consolidate macroeconomic stability, at the same time reducing poverty. In addition to rebuilding the fiscal space and strengthening monetary frameworks, the region would benefit from implementing a broad agenda of structural reforms. Participants agreed that, over the long-term, fostering private and public investment and strengthening human capital could increase economic growth substantially. Moreover, it is essential to further increase the flexibility of the Central American economies and consolidating financial sector reforms, including macro-prudential measures. The financial superintendents underscored that, while there has been important progress in recent years, there is ample scope for further strengthening supervisory practices, particularly risk-based supervision and expansion of the supervisory perimeter.

“Participants commended the continued support provided by the IMF to the countries in the region and the close policy dialogue. Participants also commended the strengthening of technical assistance and training activities in the region provided by the Central America-Panama-Dominican Republic Regional Technical Assistance Center (CAPTAC-DR). Participants also conveyed their thanks to the governments of Canada, Germany, Mexico, and Spain, as well as to the European Commission, the Inter-American Development Bank, and the Central American Bank for Economic Integration for their financial support to the Center.

“Participants agreed that the next annual conference would take place in July 26-27, 2012, and expressed their gratitude to the Dominican Republic for offering to host the Eleventh Regional Conference”.

Formation Metals Receives Commitment for Financing of Idaho Cobalt Project

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Vancouver, B.C., July 29, 2011, Formation Metals Inc. (FCO-TSX) ("Formation") is pleased to announce that it has received and accepted a commitment (the "Commitment") from BNP Paribas for the financing of its 100% owned Idaho Cobalt Project ("ICP").

The Commitment contemplates a US$79,500,000 Senior Secured Letter of Credit Facility (the "Facility") consisting of a US$58.5 million project financing letter of credit in support of the Lemhi County Recovery Zone Facility Revenue Bonds (the "Lemhi Bonds") and a $21 million financial letter of credit in support of the Shoshone County Recovery Zone Facility Revenue Bonds (the "Shoshone Bonds") issued for the construction and development of the greenfield cobalt mine located in Lemhi County Idaho, and the related hydrometallurgical plant located in Shoshone County, Idaho, and together constituting the ICP.

Under the terms of the Commitment, negotiated between BNP Paribas and Formation through its financial advisor, Auramet Trading, LLC, BNP Paribas has, subject to certain terms and conditions, agreed to act as mandated lead arranger, sole and exclusive book-runner, sole issuing bank and administrative agent for the entire Facility in support of the Lemhi and Shoshone Bonds. Having completed extensive technical, legal and cobalt market due diligence, BNP Paribas is preparing to launch the syndication of the Facility.

"Signing of this Commitment brings us one step closer to bringing this exciting and important project into production," said Mari-Ann Green, CEO of Formation Metals, Inc. "Equipment is on site and construction is underway."

About Formation Metals Inc.
Formation Metals Inc. is a well established, mineral exploration, development and refining company that is dedicated to the principles of environmentally sound mining and refining practices, and believes that environmental stewardship and mining can co-exist. Formation trades on the Toronto Stock Exchange under the symbol FCO.


About BNP Paribas
BNP Paribas (www.bnpparibas.com) is one of the strongest banks in the world (rated AA by Standard & Poor's i.e. 3rd rating level on a scale of 22.) The Group has a presence in more than 80 countries and more than 200,000 employees, including more than 160,000 in Europe. It ranks highly in its three core activities: Retail Banking, Investment Solutions and Corporate & Investment Banking. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the leader in consumer lending. BNP Paribas is rolling out its integrated retail banking model across the Europe-Mediterranean zone and boasts a large network in the western part of the United States. In its Corporate & Investment Banking and Investment Solutions activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas and solid and fast-growing businesses in Asia.


About Auramet Trading, LLC
Auramet is a global physical precious metals merchant run by experienced professionals providing a full range of services to all participants in the precious metals chain, from extraction and production to manufacturing and consumption. Auramet prides itself on building strong and loyal relationships and provides physical metal merchant, merchant banking and structured finance and advisory services for its clients.

Indian court suspends all iron ore mining in Bellary region


The Indian Supreme Court on Friday ordered immediate suspension of all iron ore mining in the Bellary region of the southern state of Karnataka. This follows from reports submitted by the court’s Central Empowered Committee (CEC) highlighting environmental damage brought about by rampant illegal mining in the region, local sources tell Steel Business Briefing.

Bellary’s ore production used to average 25-30m tonnes/year of iron ore or 60-70% of the state’s average ore output of 45m t/y, SBB is told. However, ongoing investigations by the CEC into illegal mining operations in the state, following Karnataka’s ban on ore exports, had already resulted in several mines in the region being shut down since early May.

Nevertheless, the court’s order is lending more fear and uncertainty to the ongoing crisis in the state pertaining to illegal mining. “These orders could very well be extended to the entire state,” a Bangalore-based source fears. “We don’t know what will happen next.”

SBB learns the Supreme Court has enlisted the assistance of the ministry of environment and forests to table the ore requirements of the domestic steel industry and identify how much ore would need to be imported in view of the shortfall in supplies from Bellary.

Friday’s order would also impact the operations of state-owned miner, NMDC, which operates a 4.5m t/y iron ore mine at Donimalai in Bellary. Sources also suggest JSW Steel, which now has 10m t/y of installed crude steelmaking capacity at its Vijayanagar works in the state and little captive ore supply, would be adversely impacted by the directive, which remains in effect until further notice.

From SBB 

Lokpal Bill government’s top priority,will be introduced in Lok Sabha in first three days: Session begins on Aug.1



The Union Parliamentary Affairs Minister Shri P K Bansal has said that The Lokpal Bill 2011 will be introduced in Lok Sabha by Aug.3. Speaking to the Media at the Parliament house the Minister said that the government has prepared a comprehensive Lokpal bill for the consideration and passing by both houses of Parliament.

The Monsoon Session, 2011 of Parliament (8th Session of Fifteenth Lok Sabha and the 223rd Session of the Rajya Sabha) is scheduled to commence on Monday, the 1st of August, 2011 and subject to exigencies of Government Business, the Session will conclude on Thursday, the 8th of September, 2011. The Session will provide 26 sittings spread over a period of 39 days.



The Session will mainly be devoted to essential Government legislative and other business, including financial business relating to Supplementary Demands for Grants for the year 2011-12 in respect of Railway and General Budgets.



To finalise the Government Business for the Monsoon Session, 2011, Minister of Parliamentary Affairs and Water Resources took a meeting with the Secretaries/Senior Officers of the various Ministries/Departments on Monday, the 25th of July, 2011. The Ministers of State in the Ministry of Parliamentary Affairs co-chaired the meeting. During the meeting, 72 items (2 Bills for Introduction, Consideration and Passing, 35 Bills for Consideration and Passing, 33 Bills for Introduction and 2 Financial Business) were identified for being taken up during the Monsoon Session. This includes two Bills in replacement of two Ordinances. A list of Bills identified to be taken up during the 8th Session of Fifteenth Lok Sabha and the 223rd Session of Rajya Sabha is as under:-



I – Bills for Introduction, Consideration and Passing
1.
The Indian Medical Council (Amendment) Bill, 2011 – To replace an Ordinance

2.
The Indian Institute of Information Technology, Design and Manufacturing, Kancheepuram Bill, 2011– To replace an Ordinance




II – Bills for Consideration and Passing
1
The Seeds Bill, 2004.

2.
The Constitution (One Hundred and Eleventh Amendment) Bill, 2009.

3.
The Pesticides Management Bill, 2008.

4.
The Company Secretaries (Amendment) Bill, 2010.

5.
The Chartered Accountants (Amendment) Bill, 2010.

6.
The Cost and Works Accountants (Amendment) Bill, 2010.

7.
The National Commission for Heritage Sites Bill, 2009.

8.
The State Bank of India (Subsidiary Banks Laws) Amendment Bill, 2009.

9.
The Coinage Bill, 2011, as passed by Lok Sabha

10
The Jawaharlal Institute of Post Graduate Medical Education and Research, Pudducherry (Amendment) Bill, 2010.

11.
The Transplantation of Human Organs (Amendment) Bill, 2009.

12
The National Institute of Mental Health and Neurosciences, Bangalore, Bill, 2010.

13.
The New Delhi Municipal Council (Amendment) Bill, 2010.

14.
The Orissa (Alteration of Name) Bill, 2011 (as returned by Rajya Sabha with amendments)

15.
The Constitution (One Hundred Thirteenth Amendment) Bill, 2011 (as returned by Rajya Sabha with amendments)

16.
The Central Educational Institutions (Reservation in Admission) Amendment Bill, 2010.

17.
The Educational Tribunals Bill, 2010.(as passed by Lok Sabha)

18.
The Institute of Technology (Amendment) Bill, 2011. (as passed by Lok Sabha)

19.
The Architects (Amendment) Bill, 2010.

20.
The National Institute of Technology (Amendment) Bill, 2010

21.
The Copyright (Amendment) Bill, 2010.

22.
The Right of Children to Free and Compulsory Education (Amendment) Bill, 2010.

23.
The National Council for Teacher Education (Amendment) Bill, 2010.

24.
The Prasar Bharati (Broadcasting Corporation of India) Amendment Bill, 2010.

25.
The Constitution (One Hundred and Fourteenth Amendment) Bill, 2010.

26.
The Constitution (One Hundred and Eighth Amendment) Bill, 2010. (as passed by Rajya Sabha)

27.
The Commercial Division of High Courts Bill, 2009. (as passed by Lok Sabha)

28.
The Constitution (One Hundred and Tenth Amendment) Bill, 2009.

29
The Constitution (One Hundred and Twelfth Amendment) Bill, 2009.

30.
The Petroleum and Minerals Pipelines (Acquisition of Right to User in Land) Amendment Bill, 2010.

31.
The Railway Property (Unlawful Possession) Amendment Bill, 2008.

32.
The Academy of Scientific and Innovative Research Bill, 2010.

33.
The Juvenile Justice (Care and Protection of Children) Amendment Bill, 2010.

34,
The Chemical Wepons Convention (Amendment) Bill, 2010.

35.
The Motor Vehicles (Amendment) Bill, 2007.




III – Bills for Introduction



The Lokpal Bill, 2011.


The National Food Security Bill, 2011.


The Narcotic Drugs and Psychotropic Substances (Amendment) Bill, 2011.


The Prevention of Money Laundering (Amendment) Bill, 2011


The Benami Transactions (Prohibition) Bill, 2011


The Constitution (Scheduled Tribes) Order (Amendment) Bill, 2011.


The Indecent Representation of Women (Prohibition) Amendment Bill, 2011


The Agriculture Bio-Security Bill, 2011.


The Nuclear Regulatory Authority Bill, 2011


The Biotechnology Regulatory Authority of India Bill, 2011.


The Regional Centre for Biotechnology Bill, 2011.


The Electronic Service Delivery Bill, 2011.


The Warehousing Corporation (Amendment) Bill, 2011.


The Companies (Amendment) Bill, 2011.


The Wildlife (Protection) Amendment Bill, 2011.


The Indian Stamp (Amendment) Bill, 2011


The National Commission for Human Resources for Health Bill, 2011


The Customs Law (Amendment and Validation) Bill, 2011


The Boarder Security Force (Amendment) Bill, 2011


The National Academic Depository (Amendment) Bill, 2011.


The National Council for Higher Education and Research Bill, 2011


The Universities for Innovation Bill, 2011


The Press and Registration of Books and Publications Bill, 2010


The Inter State Migrant Workmen [Regulation of Employment & Conditions of Service] (Amendment) Bill, 2011.


The Administrator’s General (Amendment) Bill, 2011


The Mines and Minerals (Development and Regulation) Bill, 2011.


The Emigration Management Bill, 2011


The Damodar Valley Corporation (Amendment) Bill, 2011


The Passengers Security Bill, 2011


The Rajiv Gandhi National Institute of Youth Development Bill, 2011


The National Sports Development Bill, 2011


Bill relating to Land Acquisition, Rehabilitation and Resettlement.




IV – Financial Business





1.
Discussion and Voting on First Supplementary Demands for Grants (General) for the year 2011-2012.

2
Discussion and Voting on Supplementary Demands for Grants (Railways) for 2011-12.

STEEL INDUSTRY SUPPORTS LOW CARBON VEHICLE PARTNERSHIP STUDY HIGHLIGHTING LIFE CYCLE EMISSIONS TO PROPERLY ASSESS FUTURE VEHICLE CARBON FOOTPRINT

BRUSSELS, 29 June 2011 – According to a new study, “Preparing for a Life Cycle CO2 Measure”, vehicle manufacturing emissions can represent 23 to 46 percent of total vehicle emissions.  These findings, recently released by the Low Carbon Vehicle Partnership (LCVP), an advisory group working to accelerate the shift to low-carbon vehicles and fuels, and conducted by Ricardo, a global engineering firm, demonstrate that emissions other than tailpipe emissions are significant and therefore need to be included in future vehicle regulations.

“Our own research also has brought into sharp focus that tailpipe-only emissions regulations can lead to engineering decisions that have the unintended consequence of negating emissions reduction in the whole life cycle or, worse yet, increasing  emissions,” said Cees ten Broek, director, WorldAutoSteel, the automotive group of the World Steel Association. “That’s why WorldAutoSteel strongly supports the efforts of the LCVP in recommending life cycle assessment (LCA) as a part of vehicle design and regulatory processes moving forward.  We also are committed to the consideration of the entire life cycle as key to ensuring that emissions from future vehicles are reduced.”  

When life cycle emissions are considered, steel-intensive designs of future vehicles can provide the lowest total emissions.  This is because Advanced High-Strength Steels (AHSS) produce low emissions during material and vehicle manufacturing, especially compared to other structural materials.  Further, AHSS grades reduce emissions during the driving phase and are 100 percent recycled at the end of the vehicle’s life.  Steel’s properties and value reflect one of the LCVP/Ricardo study conclusions, that LCA can drive reductions in both cost and carbon footprint.

WorldAutoSteel is actively pursuing the life cycle approach in all its programs and studies, the most recent one being the FutureSteelVehicle (FSV) program, launched on 18 May 2011.  FSV demonstrates the design of a low-emitting vehicle on an LCA basis at essentially no additional cost.  FSV is designed based on new materials and technologies overlapping the future regulatory period to reduce body structure weight by 35 percent and life cycle emissions by nearly 70 percent over a benchmark conventional gasoline vehicle.  The FSV results offer low emissions solutions to automakers at a time when vehicle emissions regulations are being strengthened. 

About WorldAutoSteelWorldAutoSteel, the automotive group of the World Steel Association, is comprised of 17 major global steel producers from around the world. WorldAutoSteel’s mission is to advance and communicate steel’s unique ability to meet the automotive industry’s needs and challenges in a sustainable and environmentally responsible way.  WorldAutoSteel is committed to a low carbon future, the principles of which are embedded in our continuous research, manufacturing processes, and ultimately, in the advancement of automotive steel products, for the benefit of society and future generations. 

June Crude Steel Production 2011

20 Jul 2011

Brussels - World crude steel production for the 64 countries reporting to the World Steel Association (worldsteel) was 128 million metric tons (mmt) in June. This is 8% higher than June 2010.

World crude steel production in the first six months of 2011 was 757.8 mmt, 7.6% higher in comparison with the same period of 2010. All major steel-producing regions showed increased production.

China’s crude steel production for June 2011 was 59.9 mmt, an increase of 11.9% compared to June 2010.

Elsewhere in Asia, Japan produced 8.9 mmt of crude steel in June 2011, down -5% compared to the same month last year. India produced 6.0 mmt for June 2011, an increase of 7.3% over June 2010. South Korea’s crude steel production for June 2011 was 5.7mmt, 19% up compared to June 2010.

In the EU, Germany’s crude steel production for June 2011 was 3.9 mmt, an increase of 0.2% on June 2010. Italy produced 2.6 mmt, 15.2% higher than the same month in 2010. Spain’s crude steel production for June 2011 was 1.5 mmt, up 4.5% on June 2010. France produced 1.4 mmt of crude steel in June 2011, a decrease of -6.1% compared to June 2010.

Turkey produced 2.8 mmt of crude steel in June 2011, 12.3% higher than June 2010.

The US produced 7.2 mmt of crude steel in June 2011, an increase of 1.7% compared to June 2010.

Brazilian crude steel production was 3.0 mmt, 3.9% higher than June 2010.

The world crude steel capacity utilisation ratio of the 64 countries in June 2011 was 82.8%, 1.2 percentage points higher than in May 2011. Compared to June 2010, the utilisation ratio in June 2011 increased by 2.5 percentage points.

 Editors:

• The monthly crude steel capacity utilisation ratio is calculated based on crude steel production and capacity information available at worldsteel. The capacity information is based on publicly-available data, updated twice a year and verified through worldsteel’s membership.
• The World Steel Association (worldsteel) is one of the largest and most dynamic industry associations in the world. worldsteel represents approximately 170 steel producers (including 18 of the world's 20 largest steel companies), national and regional steel industry associations, and steel research institutes. worldsteel members produce around 85% of the world's steel.

Industry award for worldsteel Director General

21 Jun 2011

Ian Christmas, Director General of the World Steel Association, was given the Willy Korf/Ken Iverson Steel Vision Award at the 25th Steel Success Strategies Conference in New York on 21 June.

The award recognises the contribution of Ian Christmas over the last 12 years in bringing steelmakers together from around the world to address the issues of sustainability, safety and the promotion of new applications for steel.

Previously the award has been given to Lakshmi Mittal of ArcelorMittal, Sajjan Jindal of JSW Steel, Jorge Gerdau Johannpeter of Gerdau, Madam Xie Qihua of Baosteel and Dr Irani of Tata Steel.

worldsteel top producers 2010

worldsteel member companies: crude steel production over 3 mmt

Rank	Member company (1)	mmt	Rank	Member company (1)	mmt
1	ArcelorMittal	98.2	24	IMIDRO	11.4
2	Baosteel	37.0	25	Techint	8.8
3	POSCO	35.4	26	Metinvest	8.7
4	Nippon Steel (2)	35.0	27	Kobe	7.6
5	JFE	31.1	28	CELSA	7.4
6	Jiangsu Shagang	23.2	29	voestalpine (8)	7.3
7	Tata Steel  (3)	23.2	30	Usiminas	7.3
8	U. S. Steel	22.3	31	Erdemir	7.1
9	Ansteel (4)	22.1	32	BlueScope	6.8
10	Gerdau	18.7	33	JSW	6.4
11	Nucor	18.3	34	Metalloinvest	6.1
12	Severstal	18.2	35	Essar	6.0
13	Wuhan (5)	16.6	36	SSAB	5.8
14	ThyssenKrupp (6)	16.4	37	CSN	5.5
15	Evraz	16.3	38	Salzgitter	5.2
16	Shougang (7)	14.9	39	HKM	5.2
17	Riva	14.0	40	Hadeed	5.0
18	SAIL	13.6	41	Ezz	4.5
19	Sumitomo	13.3	42	Duferco	4.1
20	Hyundai	12.9	43	Nisshin	3.8
21	China Steel	12.7	44	AHMSA	3.7
22	NLMK	11.9	45	CMC	3.5
23	Magnitogorsk	11.4	46	Vizag	3.2

Note: Handan iron and Steel Group (12.9 mmt) consolidated with Hebei Steel Group in 2010.

(1) does not include member companies that are part of consolidations with non-members (2) includes Osaka Steel and Nippon Steel & Sumikin Stainless Steel Corporation, but does not include Usiminas (3) includes NatSteel (4) does not include Panzhihua (5) does not inlcude Kunming and Echeng (6) includes share of HKM (7) does not include Caofeidian and Changzi (8) includes Böhler Udelholm

Vice President Confers National Communal Harmony Awards

The Vice President of India Shri M. Hamid Ansari has said that the state has no choice but to intervene in instances of communal disharmony. Such interventions can either be preventive or corrective in nature. Addressing after conferring “National Communal Harmony Awards for the years 2009 and 2010” to Dr. Mohammad Hanif Khan Shastri, Acharya Lokesh Muni and the Centre for Human Rights and Social Welfare for their outstanding work in the field of communal harmony and national integration at a function here today, he has said that the general focus has remained on corrective steps due to the intense focus and interest in the wake of incidents of communal disharmony. While this is necessary, it is not sufficient. We need a pervasive preventive approach to communal disharmony and a conscious programme of fostering communal harmony. Today’s function is an important link in the efforts of the government in this regard.

Following is the text of the Vice President’s address :

“It gives me a great pleasure to participate in today’s presentation ceremony of the National Communal Harmony Award for the years 2009 and 2010. As the Chairperson of the Jury for the Awards, I extend my heartiest congratulations to Dr. Mohammad Hanif Khan Shastri, Acharya Lokesh Muni and the Centre for Human Rights and Social Welfare for their outstanding work in the field of communal harmony and national integration for which they have been given the National Communal Harmony Award.

The conscious promotion of communal harmony by the State among the citizenry is not just a historical legacy. It is a fundamental necessity to preserve a social reality that existed for centuries before the State came into being.

The Preamble of our Constitution notes that the people of India would secure to all citizens “FRATERNITY assuring the dignity of the individual and the unity and integrity of the Nation”. Article 51A stipulates that it is a fundamental duty of every citizen to “promote harmony and the spirit of common brotherhood amongst all the people of India transcending religious, linguistic and regional or sectional diversities”.

The state has no choice but to intervene in instances of communal disharmony. Such interventions can either be preventive or corrective in nature. The general focus has remained on corrective steps due to the intense focus and interest in the wake of incidents of communal disharmony. While this is necessary, it is not sufficient. We need a pervasive preventive approach to communal disharmony and a conscious programme of fostering communal harmony. Today’s function is an important link in the efforts of the government in this regard.

As a polity and as a society, we must recognise the efforts of extraordinary individuals and organizations to enhance our collective commitment to fraternity and promotion of basic human rights and values. The prevalent mood of cynicism towards public service should not eclipse the achievement and efforts of today’s awardees. I would like to say that the nation salutes you and wishes you all success in your future endeavours.

I thank the Home Minister for inviting me to participate in today’s function and wish the National Foundation for Communal Harmony all success. “

ALTONA HITS MULTIPLE MILESTONES

The Company was firing on all cylinders during the June quarter. The highlights for the quarter listed below illustrate the progress during the period. Altona is in the middle of a tremendous period of growth and is determined to stay focused and deliver additional value for our shareholders throughout the rest of the year.

· Offtake - A five-year copper-gold concentrate off-take contract has been agreed with local Finnish copper smelter, New Boliden.

· Financing - Completion of US$20M debt facility from Credit Suisse to provide the financial flexibility to aggressively advance both Outokumpu and Roseby.

· Mine Development - Kylylahti mine decline is approaching the 1,000 metres of advance mark and is scheduled to hit first ore in October.

· Mill Refurbishment - The Luikonlahti mill refurbishment programme is approximately 40% complete and on track for an early 2012 start up.

· Resource Upgrade - The first resource update at Roseby delivers a new global resource exceeding 1 million tonnes of contained copper and almost 300,000 ounces of gold, based upon a new and larger Resource at Little Eva.

· Spectacular Drilling Results - Drilling at the Little Eva Deposit at Roseby has delivered spectacular drill intersections, drilling continues and highlights potential for further increases in the resource.

· Improved Capital Structure - Converting Notes matured on 30 June with 46.5 million new shares issued. This simplifies the capital structure of the Company. Half of the shares issued were on-sold to Australian institutional investors.

The key milestones for the second half of 2011 are:

· First ore production – Intersecting first ore in the Kylylahti mine in October.

· Resource upgrades - Targeting a resource of between 200 and 300Mt at Roseby.