MLA Sweet Talks Locals Into Giving Away Land For French Giant Lafarge

By Kunal Majumder

IN APRIL this year, the Supreme Court directed the Ministry of Environment and Forests to conduct a probe into French cement giant Lafarge’s limestone mines in Meghalaya. Lafarge was alleged to have been operating on forest land without proper clearance. Now it turns out the allegations against the Paris-headquartered multinational are graver.

DIRECT CONNECTION The Nongtrai mines (left); Signboards (right) mark the company’s presence

Bangladesh-based Lafarge Surma Cement Ltd — a joint venture between Lafarge Group and Spanish cement company Cementos Morlins — raised $153 million as mortgage against its assets from six international banks. While Lafarge claims that the mining operations in Meghalaya only guarantee $3 million, it agrees the limestone mines in Nongtrai, Meghalaya, are the only source of raw material for the firm’s cement factory in Chhatak, Bangladesh. “Thus, a prime asset,” says BM Doloi of Shella Joint Action Committee, a group of locals who have filed a PIL in the Gauhati High Court demanding a probe.

In fact, the villagers of Shella, on which the conveyor belt that carries Rs 90 crore worth limestone each year to Bangladesh was built, did not mind leasing out their land for a reasonable rent when the project first started, sometime in 2004. The company leasing their land, after all, was Lum Mawshun Minerals Pvt Ltd (LMMPL) set up by their own former MLA Galmender Singh Lyngdoh.

Lyngdoh, who negotiated with the durbar (village council) of both the villages, then transferred the land lease deeds to Lafarge Umian Mining Pvt Ltd (LUMPL), a wholly-owned subsidiary of Lafarge’s Bangladesh company. Now it turns out Lafarge Surma Cement Ltd has 74 percent stake in Lyngdoh’s company and is registered at the same address — Hotel Polo Tower, Shillong. A company spokesperson claims there is nothing wrong in this. “The land was transferred from LMMPL to LUMPL duly approved by the authorities concerned,” he says.

However, the villagers feel cheated. “The land was leased to a local person but it now turns out he was actually involved with Lafarge,” says Doloi. Lyngdoh is now chairman emeritus of Lafarge Umian Mining and his original company is non-functional.

Deputy Chief Minister of Meghalaya and minister in charge of mines and minerals Bindo Lanong says, “It is not illegal to lease out land in Meghalaya.” But he admits, “There are issues about the land, the mortgage and the environment. Now it is for Supreme Court to decide.” No wonder, many hopes are pinned on the next hearing in August.

150.6
HECTARES
In 2002, Meghalaya’s revenue department gives permission to transfer 150.6 hectares in Nongtrai and Shella to Lum Mawshun Minerals, founded by a former MLA SG Lyngdoh
100
PERCENT
In 2004, Lum Mawshun Minerals Pvt Ltd transfers the land lease to Lafarge Umium Mining Pvt Ltd, a 100 percent subsidiary of Lafarge Surma Cement Ltd, Bangladesh
153
MILLION DOLLARS
In 2005, Lafarge Surma Cement Ltd raises $153 million against its assets, which includes the land in Meghalaya, from six international banks including ADB, IFC and European Investment Bank
2
MILLION TONNES
In 2006, Lafarge Umium starts commercial mining in Nongtrai and exports 2 million tonnes of limestone every year using the conveyor belt that connects the mines to the cement factory in Bangladesh
17
KILOMETRES
In 2010, the Supreme Court stops mining by Lafarge and directs the MOEF to conduct a fresh environmental impact study. This brings the 17 km conveyor belt, used to transfer limestone from Nongtrai mines to Lafarge’s factory in Bangladesh, to a halt

**WRITER’S EMAIL: KUNAL@TEHELKA.COM