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Goa Government Lifts Mining Transportation Ban

In a positive move for the mining industry, the Goa government has finally permitted the state mining industry to resume its operation in Goa. “The Goa government had restricted mining operation due to monsoons. With the monsoons behind us, mining industry can resume its operations,” says Vaikundarajan, founder of VV Minerals India, one of the largest sand beach mining companies in India.

Mining operations should be in full swing by the start of October. Prasanna Acharya, director of Mines and Geology, issued a statement informing the mining companies of the ban having been lifted.

The transportation of mineral by road was banned in the interest of public safety after some accidents on the main road came to light. On the request of locals, the government decided to ban transportation of minerals till monsoon had rescinded.

“Public safety is of utmost importance. With the lack of mining transportation roads in Goa, the trucks took to main road. A couple of accidents were reported by locals and the government was quick to take an action. Transportation was suspended till monsoon was over. The government also plans to construct a dedicated road for mining transportation,” says Vaikundarajan.

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VV Minerals Is Clean Says The Company

VV Minerals is the highest producer of Garnet and Ilmenite today. It has been awarded several national awards for its contribution to the export business.

Lately, VV Minerals reputation has suffered due to the illegal beach mining scam. Being the largest mining company in India, fingers are naturally pointed at VV Minerals. The company has taken legal advice against these allegations. While the investigation committee has been looking into the matter, no evidence has been submitted against the company.

Ashish Kumar, District Collector of Tuticorin was one of the first people to raise his concerns against the company. A raid on one of the company’s warehouse yielded no results. Following this, the distric collector was given the marching orders. However, Vaikundarajan was immediately blamed to have used his political influence in Kumar’s transfer.

VV Minerals’ spokesperson, speaking to NDTV, denied these allegations and claimed that the "charges made by the former District Collector are baseless, motivated and vague."

VV Minerals has enjoyed 100% monopoly in mining activities and has a huge share in export of Garnet. Former IAS officer V Sundaram accused the company of looting several crore rupees in a letter written to the state. VV Mineral Vaikundarajan was quick to dismiss the allegation as a conspiracy by business rivals.

“Sundaram is passing this as a cruel joke. He is on the payroll of our business rival. Our hands are clean. We will soon be cleared of all allegations," Ravindram Duraiswami, advocate for VV Minerals told NDTV.

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In the last few years, several allegations of illegal beach sand mining have surfaced. While none of the allegations are supported by evidences, the company at the receiving end happens to be VV Minerals. VV Mineral Mining is the leading manufacturer and exporter of Garnet and Ilmenite. This has probably made the company an easy target for the scam.

Nevertheless, the state government has appointed an investigating team to look into the matter across five districts of the state. IAS officer Gagandeep Singh Bedi headed the team. Before Bedi, IAS Officer Ashish Kumar was transferred due to investigating inconsistencies. The blame was once again put on VV Mineral Vaikundarajan for using his political connection to influence the transfer.

The company is accused of exporting minerals worth INR 1 Lakh crore. A scam of such an extent is practically impossible for one company to pull off. In these events, it is fair to say that VV Minerals is being set up by their business rivals.

“VV Mineral holds the legal document authorizing the company to mine and export monazite. How is it then that the sand mining operations of the company are deemed illegal?” asks VV Mineral Vaikundarajan. As he continues to stand by his company, VVMinerals puts his faith in the judiciary and believes that the investigating team’s results will be in favour of VV Mineral Mining.

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Thorium Scam Made-Up To Defame VV Minerals India

The World Nuclear Association estimated 3,00,000 tonnes of Thorium deposit in India. However, in recent years India has seen a depletion of these deposits. As per the reports, around 2,00,000 tonnes of Thorium-Oxide is missing from the country. Along with Thorium, Monazite quantity has also seen a decline along the coastline by more than 2.1 million tonnes.

VV Minerals, the largest sand beach mining company, has been at the receiving end of a Thorium scam. These allegations against the company cannot be justified simply because VV Minerals is the largest producer of Garnet and Ilmenite. S Vaikundarajan, Director of VV Minerals stated, “The mineral rich sand is getting washed away from the Indian coastline in the absence of mining, and as a result, Sri Lanka, located further down, is reaping rich benefits at the cost of Indian industry.”

As per some allegations, Thorium scam is reported to be worth 96,000 crore rupees. It is practically impossible for one company to pull off a scam of such extent. Vaikundarajan further explains that the rising water level from global warming is also responsible for these depletions. “The water is moving is on the shores resulting in India losing a lot of mineral reserves,” he explains. At this rate, India may soon lose its Thorium rich status.

Currently, Indian Rare Earths Ltd is the only company exporting Monazite. Other minerals such as Ilmenite, Rutile, Leucoxene, Garnet, Silimanite and Zircon are separated from beach sands before exporting. No licence or permission is required from DAE to export these minerals due to their delisting from the list of prescribed substances.

VV Mineral Vaikundarajan believes that these are natural problems that need to be dealt with. Allegations against the company are complete fabrication and will lead to nothing.

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The initiative puts the government in good books financially although the Sale of Indian Mad Foreign Liquor is still the biggest revenue spinner for the state.

The policy should come as a respite in the wake of illegal sand beach mining scam that was probed by Madras High Court. The investigation has been ongoing since 2013.

Further improvements can be expected as the government prepares to launch a ‘Comprehensive Flood Protection Plan’ that will help curb the impact of floods in Chennai and other vulnerable coastal districts. Top priority will be given to Chennai – Bengaluru and Madurai – Thoothukudi corridors for the development of industrial corridors project. The entire operation will be computerized for better monitoring.

The illegal beach mining scam has gravely affected VV Minerals India, the largest sand beach mining company in India. While the investigating committee is yet to reach its verdict, there has been no evidence to suggest any illegal activities on behalf of the company. VV Mineral Vaikundarajan believes that the new policy and government’s initiatives will bring hope to the mining industry.

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Madras High Court Stays Order In Favour Of VV Minerals

VV Minerals had filed a writ appeal against the single judge’s order asking the commissioner to decide the preliminary issue of jurisdiction. Following the appeal, the Division Bench of Madras High Court ordered a stay in favour of VV Minerals India, the leading sand beach mining company represented by S VV mienral Vaikundarajan.

The show cause notice issued on December 26 appealed the company to provide explanation on why it should be excused from paying central excise for minerals obtained between March 2011 and March 2014. The company had earlier stated that the minerals were concentrates that could not be separated due to the lack of technology, a challenge faced by all beach mining companies in India.

Defending which, the company’s writ petition challenging the notice got the case dismissed on March 10 this year. Additionally, the company pointed out that the Commissioner was denying access to many documents sought by the company.  The Commissioner was directed by the High Court to provide the company with the necessary documents for issuing the notice to help the company present an effective reply.

VV Mineral also filed a second writ petition explaining the mining lease obtained legally from the State Government. The company further explained that the minerals extracted from sand fall under the ‘mines’ category and should be exempted of the central excise.

The court declared its verdict in favour of VV Mineral Mining justification of its writ appeal despite commissioner’s allegations. VV Mineral Vaikundarajan expressed his satisfaction in the court’s verdict and assured that the company’s operations were legal in all departments.

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Recently, some of the locals held hostage a sand mining truck of VV Mineral and battered the driver before letting him go. The police inspector of Surangudi failed to control the situation.

VV Minerals India is one of the largest sand mining companies in India. Naturally, to find itself in the midst of this controversy should not come as a surprise to anyone. However, there is no evidence to prove an illegal action on behalf of the company. VV Minerals, stated that the locals are being fed wrong information to turn them against the company.

The company is accused of illegally amassing INR 1 Lakh Crore through beach sand mining. However, it should be noted that it is practically impossible for one company to pull off a scam of such extent. Having been in existence for over two decades, these allegations surfacing now make no sense.

The company authorities also mentioned that VV Mineral Mining is legally authorised to manufacture and export Garnet with 1% Monazite content. This is due to the lack in technology for the separation of Monazite. Despite being confirmed by official bodies, the company continues to receive allegations of illegal exports.

VV Mineral, Vaikundarajan assured that in the last two decades, the company has never gone beyond the 1% threshold for monazite and has always acted within legal boundaries.

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VV Mineral Mining Files Two Writ Petitions Pending With Madras High Court

Established in the late 1980s by S Vaikundarajan, VV Minerals is one of the leading sand beach mining companies in India. Over the last two decades, the company has won several National Awards for its contribution to the export business. Today, VV Mineral Miningis the leading company to extract and export garnet and ilmenite for 20 years.

Recent allegations of illegal beach mining have put the company’s reputation at stake. The company has been accused of illegally exporting thorium to several countries. However, the company officials released a statement that there doesn’t exist a proper technology that allows separation of thorium from monazite. This was later confirmed by Atomic Energy Regulatory Board (AERB).

Completely ignoring the technological challenges that the entire industry is facing, former principal scientist at Central Marine Fisheries Research Institute in Kochi stated, “Indian Rare Earth Ltd (IREL), Manavalakurichi, uses the sand from the same area and produces thorium, so what happens to the monazite in the VV mines? Does the company follow the procedure recommended by the AERB?”

The company is also accused of mining without proper clearance. The company officials were quick to mention that they have established a mineral separation plant and approached the AERB for a license that is still pending.

“The IREL officials have made baseless allegations. The authority has taken no action against the complaint launched by the company. Hence, we have approached the High Court,” says Vaikundarajan as he assures that VV Minerals India has operated within legal boundaries.

All activities pertaining to sand mining have been temporarily suspended. The company has filed two writ petitions that are pending with the Madras High Court.

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This has put VV Mineral Vaikundarajan, an influential figure in the mining circuit, under scrutiny. The company has been issued a case requiring the founder of the company to be under judiciary check at all times. Despite being a discreet person, VV Mineral Vaikundarajan has openly supported the investigating team. Ashish Kumar, former district collector of Tuticorin, raised the issue of illegal mining and order an enquiry. However, Kumar was immediately given marching order for having involved with the business rivals of VV Minerals. VV Mineral Vaikundarajan was accused of using his political connections to influence the transfer. While there has been no evidence to convict the company or its founder, supporters of VV Mineral Vaikundarajan have maintained that the scam is masterminded by the rival business. VV Minerals has an annual output of 150,000 tonnes of garnet abrasives, 225,000 tonnes of ilmenite, 12,000 tonnes of zircon and 5,000 tonnes of rutile. With these allegations surfacing, the state government has set up an investigating team to probe into the matter and banned all mining activities till further notice. These bans will bring huge losses to VV Minerals and other companies in the state.

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Much like any other industry, the mining industry too faces its set of challenges. One of those challenges in the lack of technology to separate thorium from monazite. VV Minerals has openly expressed concerns over this challenge and is confirmed by the government body of Atomic Energy Regulatory Board (AERB).

Despite this confirmation, former principal scientist at Central Marine Fisheries Research Institute in Kochi raised his concerns, “Indian Rare Earth Ltd (IREL), Manavalakurichi, uses the sand from the same area and produces thorium, so what happens to the monazite in the VV mines? Does the company follow the procedure recommended by the AERB?”

In the wake of recent allegations of beach sand mining, VV Minerals, the largest player in India, has become an obvious victim. Without any evidence, accusations are being hurled at the company, taking apart its reputation piece by piece.

This scam has forced the state government to setup an investigating team and suspend all mining activities till a conclusion is reached. Private companies in mining industry will have to face a huge loss due to the ban.

VV Mineral Vaikundarajan came out in support of the investigation team and stated that the company had done no wrong. “VV Minerals has operated within legal boundaries for over 2 decades. We have established a mineral separation plant and approached the AERB for a license, which is awaited. The allegation by IREL officials is a setup to maim the company’s reputation. No authority is ready to take action based on our complaint. Hence we approached the High Court,” said VV Mineral Vaikundarajan. He further stated that IREL has been illegally mining on VV Mineral’s land and no action has been taken against the company.

VV Minerals has filed two writ petitions that are pending with the Madras High Court following the temporary ban on sand mining activities.

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Governance Today: What is the size of heavy minerals market in India?

V Subramanian: India has nearly 35% of world deposits but contributes only 4% of global production. The total beach sand resources in India are 942.58 million tonnes comprising of Ilmenite, Zircon, Rutile, Garnet, Sillimanite and Leucoxene.

Governance Today: How much does heavy minerals constitute in the total mining done in India?

V Shbramanian: A paltry two per cent of the entire mining is done in India. Although India possesses the world’s largest reserves of heavy mineral sands at 25%-28%, its exploitation is very low at 5%- 6%.

Governance Today: What is the utility of the minerals and how are they important for Indian economy?

V Subramanian: Heavy minerals have a critical application in industries such as electronics, ceramics, pigments, paints, paper, plastics, pharmaceuticals, aerospace and defence. As you can see, they are important for our economy as they contribute to a large number of industries.

Governance Today: What are the major policy bottlenecks that are affecting industry growth despite the scope?

V Subramanian: Private sector gained entry in the market only 3 decades ago. The sector is growing and needs government’s support and backing. Some of the policy bottlenecks responsible holding us back are: •Mining and processing clearance is a long procedure with 18 government agencies involved •Ministry of Environment and Forest has 30 conditions in place for clearing mining. Some of them are impracticable •CRZ requirements are not in favour of beach mineral industry •Export licenses are to be renewed every year

Governance Today: What are the opportunities in this sector?

V Subramanian: We have an opportunity to benefit nearly 30,000 crore to the exchequer. The growth of mining industry will be a boost to India’s GDP. Private companies contribute about 5% of the world’s heavy mineral production. With the government’ support, this number can go up to 50% of the world’s production.

Governance Today: Where do you foresee this industry in next five years?

V Subramanian: The industry has a potential to grow up to 30-50 per cent in the next five years.

Governance Today: What is your annual output of heavy minerals each year in India?

V Subramanian: We export close to 7,00,000 tonnes of heavy minerals each year which is valued at Rs 850 crores approximately.

Governance Today: What is the infrastructure of VV Minerals and who are its close competitors?

V Subramanian: VV Mineral owns about 9 Mineral separation plants with each dry plant having its own pre-concentration plants, a huge fleet of trucks and earth moving equipment, 12 warehouses with a storage capacity of 600,000 tonnes, a full-fledged R&D Department, Exploration team with Drill Rig, Centralised laboratory and first of its kind Ship loader (which can load 21,000 tonnes/ day). We have few fellow mineral producers in India, namely Indian Rare Earth (Government of India), Trimex Sands, Indian Ocean Garnet Sands, and few other small companies.

Governance Today: What support do you need for developing heavy minerals mining in India?

V Subramanian: Quick clearance for the mining industry •Export incentives that allow India to be a competitive player in global market •Restrictive import policy •Simplification in process for MoEF as well as CRZ clearances

Lastly, there is not a single large scale independent mine operating in free market conditions in India. Ironically, the fallout of the restrictions imposed by has resulted in benefiting China which controls 90 per cent of the industry.

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V Subramanian Of VV Mineral On The Hurdles In Heavy Mining Industry

VV Minerals is one of the largest beach sand mining companies in India. It was founded by S Vaikundarajan in late 1980s and has own several national awards for its contribution to the export business.

V Subramanian, Director of VV Mineral, spoke to the Business World on the hurdles faced by the mining industry and the best ways to overcome those issues. “In recent times, the economic downturn and the scams in mining sector have been a huge setback to the industry,” says Subramanian. The court bans have only made the situation worse.

Business World: What are the Hurdles in the sector?

V Mineral V Subramanian: No other country has imposed on export duty on minerals. China benefits the most due to 10% duty that makes export unviable. Lack of port infrastructure, sufficient power, and delays in getting approvals are some other hurdles. Several stipulations have caused a major setback to the mining industry.

Business World: Will the upcoming budget help solve these issues?

V Subramanian: Some of the issues can be resolved by amending the MMDR act 1957. The government is expected to ease the process of granting clearance which is a huge boost to the mining industry.

Business World: How can the government help mining sector?

VV Minerals V Subramanian: Remove the 10% export duty on Ilmenite, grant faster clearances, remove the requirement of taking CRZ clearance and allow setting up processing units in coastal areas, grant environment and forest clearance etc are some of the recommendations that can help the mining industry work effectively.

Business World: What steps should the government take to benefit the mining sector and ensure growth?

V Subramanian: There are quite a few things that can be considered by the government. Single window clearance for the mining industry Export Incentives should be provided Restrictive Import policy i.e., Anti-dumping duty on Tio2, Rutile and Zircon Simplification of MOEF (Ministry of Environment & Forest) clearance

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The allegations come easily as it is a known fact that the company is India’s top exporter of industrial minerals like Garnet and Ilmenite.

The company has denied all allegations stating that they have operated within the legal boundaries. The state government has setup an investigation team to look into the matter. VV Mineral Vaikundarajan, founder and director of VV Minerals India, has been open to all investigations and has assured that the company will be cleared of all charges.

Ashish Kumar, the district collector of Tuticorin, unsuccessfully carried a raid on one of the company’s warehouse. Following this raid, Kumar was immediately transferred to another location. It was revealed that Kumar’s intentions were tampered and he may have been working with the rivals of VV Mineral.

VV Mineral Vaikundarajan has been unjustly accused of using his political influence to bury the controversy. However, it should be noted that none of the allegations against the company have been proven in the court of law. “Not a single piece of evidence has been presented in the court. All these allegations are baseless. The competitors plotting against us,” says VV Mineral.

The company has a huge annual output of 150,000 tonnes of garnet abrasives, 225,000 tonnes of ilmenite, 12,000 tonnes of zircon and 5,000 tonnes of rutile. VV Mineral Mining and other companies have been gravely affected due to the suspension orders on the operations since March 2010.

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The Shore Line Eroding At Turicorin Is Not Caused only Due Illegal Beach Mining VV Mineral

VV Mineral was established in the late 1980s by S Vaikundarajan. In the last two decades, the company has won several National Awards for its contribution to the export business. The company is also the highest manufacturer and exporter of Garnet and Ilmenite in India. Recent allegations of illegal sand beach mining seem to have put the company’s development on hold.

VV Mineral Vaikundarajan has expressed that the company has always operated within the legal boundaries and that the allegations are baseless. The company has taken a legal route to fight the allegations and clear its name. To this date, no evidence has been presented that could prove the company guilty of illegal mining.

A company warehouse was unsuccessfully raided by District Collector Ashish Kumar. Having found no evidence and further tarnishing the company’s reputation by speaking in the media, the district collector was given the marching orders.  

VV Minerals India spokesperson, speaking to NDTV, denied these allegations and claimed that the "charges made by the former District Collector are baseless, motivated and vague."

The company has enjoyed a 100% monopoly in Ilmenite mining and has a giant share in exporting Garnet. This fact is being misused by the competitors to halt the company’s progress and cause serious damage.

VV Mineral Mining, V Subramanian, dismissed all allegations as a conspiracy by its business rivals.

"Sundaram is passing this as a cruel joke. He is on the payroll of our business rival... Our hands are clear. We will come out clear from these allegations. Our records are straight," Ravindram Duraiswami, advocate for VV Mineral told NDTV.

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VV Mineral Vaikundarajan Optimistic As Media Continues To Ignore Development

With the on-going investigation in to the illegal sand beach mining scam, a lot of allegations have surfaced against VV Minerals India. The media coverage and lack of evidence continue to tarnish the reputation of a National Award winning company and its founder.

Recently, the High Court of Madras reserved its judgment in favour of the VV Mineral Mining  and challenged an order of the Centre cancelling company’s licence. Little is known about this fact as the media has not covered it in print or electronic media. The reports concerning the original petition and that of latest developments are nowhere to be found across the internet. Most newspaper continues to carry bland headlines accusing the company of scam.

AIADMK supremo Jayalalitha had stated that Vaikundarajan was pressured by government to sell his shares. Cases were forged against him and VV Mineral was forced to shut down by the State Pollution Control Board and the Department of Mining and Geology.

VV Minerals is India’s largest manufacturer and exporter of garnet and ilmenite with a significant market share in Europe, Middle East, East Asia, Australia and USA. It is also the first private company to hold granted licence for mining and exporting of ilmenite from the Government of India. Despite several achievements in the export business, VVM faces a string of baseless accusations.

Following the allegations, the State Government has set up an investigating team to look into the matter. The National Green Tribune has ordered a ban on beach sand mining activities in Tamil Nadu and Kerala. Vaikundarajan has not shied away from a battle as he approached the High Court with a plea to squash the Central Government order.

The ban is cost an annual loss of around Rs 300 crore to the state exchequer causing a significant impact on India’s beach mining status in global market.

While the investigation is yet to reach its conclusion, VV Mineral Vaikundarajan has extended his full support to the committee and believes that justice will prevail.  

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VV Minerals Denies Charges Of Illegal Monazite Mining

Periyasamypuram in Tuticorin district, Tamil Nadu, has been the centre of storm for last few years, because of the numerous raids conducted on suspicion of illegal beach mining.

On January 23, 2013, a PIL was filed to be heard in the Madras High Court (HC), asking the court to form a Special Investigation Team (SIT) to probe illegal beach sand mining. The PIL alleged that rare beach sand minerals worth Rs 1 lakh crore have been illegally exported out of the country. The PIL mentions the set of mining licences issued by the Tamil Nadu Geology and Mining Department to VV Minerals based in Tirunelveli, Tamil Nadu. These licences authorise the private company to mine and export monazite.

Monazite is an atomic mineral found in the beach sands of the southern and eastern coasts of the country. Minerals found in the sands of these beaches along with Monazite include Ilmenite, Rutile, Zircon and Garnet. Monazite can be processed to remove Thorium and Uranium, both of which are nuclear fuels. The Tamil Nadu government has approved licences to VV Minerals to mine Monazite. VV Mineral Mining is the largest player in the country in the rare earths space. These approvals were issued by the centre in 2002-03.

VV Minerals India chairman has mentioned a number of times that various committees had probed the area and found no evidence of illegal heavy mineral mining. He denied charges of illegal Monazite mining and exports. "Look at the documents, they are only inclusion of minerals," said VV Mineral.

"The state can include minerals to the original lease. There is no illegality. In fact, we are the only company to have environmental clearances for all our quarries," VV Minerals.

There have also been allegations of environmental and health issues, especially kidney ailments, plaguing the residents living along Tamil Nadu's southern coastline, but there is no substantial information to establish any link between kidney ailments and mining.

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All these achievements are threatened by the rumours of the company being associated with illegal beach sand mining. The company officials recently confirmed the lack of technology to separate thorium from monazite, which was later backed by Atomic Energy Regulatory Board (AERB).

However, these facts were blatantly ignored as former principal scientist at Central Marine Fisheries Research Institute in Kochi stated, “Indian Rare Earth Ltd (IREL), Manavalakurichi, uses the sand from the same area and produces thorium, so what happens to the monazite in the VV mines? Does the company follow the procedure recommended by the AERB?”

VV Mineral Mining was further accused of mining without proper regulatory clearance. However, the fact remains the company established a mineral separation plant and approached the AERB for a license which is still pending.

For twenty years, the company has operated within legal boundaries. The sudden surge of allegations by IREL officials makes no sense. “No authority is ready to take action based on our complaint. Hence we approached the High Court,” expresses VV Mineral Vaikundarajan.

The company has filed two writ petitions that are pending with the Madras High Court. All activities pertaining to sand mining have been temporarily suspended.