India, a big mart for the mining industry. Coal India Ltd (CIL) and its eight subsidiaries are vigorously looking out for suitable suitors to develop its 18 abandoned coal mines. Arcelor Mittal, Anglo Australian major Rio Tinto, and Essar Mineral Resources are among the top 10 contenders for the post. These mines having estimated reserves, exceeding 1,600 million tonnes, had been abandoned because they were water-logged and CIL apparently lacked resources to develop them.

India literally is a gold mine, in terms of rich mineral resources. India’s unprecedented higher growth trajectory, demands rapid development of the mining sector, on which manufacturing sector largely depends and sustains. India in toto, produces 89 minerals; of which 4 are fuel minerals, 11 metallic, 52-non-metallic and 22 minor minerals. Even the world markets have being heavily banking on the Indian Mining Industry.

Why world can’t undermine India’s mining industry’s potential?

• India is the largest producer of mica blocs and splittings

• Third among global chromite producers.

• Third in the production of coal, lignite, barytes.

• Fourth in the production of iron -ore.

• Sixth in the production of bauxite and manganese ore.

• Tenth in the production of aluminum

• Eleventh in the production of crude steel

Mines: An Overall scenario

India, a big mart of Mineral and Metals Industry

Mineral Production

In the year, 2007-08, the total value of mineral production in the country has been nothing short of spectacular as it was projected at around Rs. 99533.10 core-an increase of 9 percent over the previous year. This projection excludes the revenue generated from atomic minerals. In 2007-08, the provisional value of fuel minerals was around Rs. 68,229.40, metallic minerals Rs. 19,755.66 crore and non-metallic minerals Rs.11, 548 crore.

Exports

The major item of export during 2006-07 was cut diamonds, which comprised 59.2 percent, iron ore’s contribution was 21.8 percent, granite 5.8 percent, alumina 2.3 percent, precious and semi-precious stones 1.0 percent and chromite contribution’s was of 0.98 percent. Building and monumental stones, emerald, coal, marble and bauxite are the other important minerals exported during the year 2006-07.

Government Initiatives

Survey and Exploration initiatives by Govt. of India:

• Geological Survey of India (GSI): An organization that is into earth science studies was established in 1851. It is a subordinate office of the Ministry of Mines; Govt. of India

• Mineral Exploration Corporation Ltd (MECL): Since its incorporation in the year 1972, MECL is into mineral exploration activities and so far has added 129130 million tonnes of mineral reserves to the National Mineral Inventory.

• The Indian Bureau of Mines (IBM): It is a subordinate office under the Ministry of Mines. It is primarily into promotion and conservation of minerals, protection of mines, environment and scientific development of mineral resources of the country.

• Hindustan Copper Limited (HCL): Set up in 1967, it was established to take over all plants, projects, schemes and studies relating to the exploration and exploitation of copper deposits, including smelting and refining from National Mineral Development Corporation Ltd.

• National Aluminium Company Ltd (NALCO): Incorporated in 1981 it is Asia’s largest integrated alumina- aluminium complex, comprising bauxite mining, aluminium smelting and casting, alumina refining, power generation, rail and port facilities.

Performance of Non-Ferrous Minerals/Metals

Aluminium

From April-November 2007, the total world aluminum supply was around 25.614 million tonnes as against the world consumption of 25.387 tonnes, thus showing an excess of around 0.227 million tonnes.

Copper

The copper production in India is on the upswing, from a meager 47,500 tonnes per year in 1997, it has increased to 9,47,500 tonnes in 2007-08, thus transforming India into net exporter of refined copper.

The estimated production, consumption and export of refined copper from India for the year 2007-08 are as follows:

• Refined Copper Production: 7, 20,000 MT

• Refined Copper Consumption: 7, 00,000 MT

• Refined Copper Export: 2, 00,000 MT

Lead & Zinc

Lead & Zinc production is also showing upward spiral. From 2, 53,461 tonnes in 2006, zinc production rose to 2, 89,678 tonnes in 2007. The production of saleable lead increased from 31,952 tonnes in April-December 2006 to 41, 258 tonnes in April-December 2007.

Major Indian Players in the Indian Mining Sector

The prominent players in the Mining sector are segregated on the basis of the minerals manufactured by them namely,

• Exploration and Production of Coal / Lignite: Coal India Ltd, Neyveli Lignite Corporation, IISCO etc.

• Rock - Phoshate and Barytes Mining: Rajasthan State Mines and Minerals Ltd, Andhra Pradesh Mining Development Corporation.

• Exploration of Metals (Copper, Bauxite, Iron Ore, Chromite, Lead- Zinc): NALCO, BALCO, Mineral Exploration Corporation Ltd, Bharat Gold Mines Ltd, ONGC, Ircon, Hindustan Zinc Ltd, Hindustan Copper Ltd, Sikkim Mining Corporation.

• Copper - Ore Mining: Hindustan Copper Ltd.

• Bauxite Mining and Aluminium Production: National Aluminium Company.

• Iron Ore Sector: National Mineral Development Corporation, Kudremukh Iron Ore Company, Steel Authority of India Ltd, Orissa Mining Corporation.

Global Companies in Indian Mining Sector

• Transworld Garnet Co., Canada

• Anglo American Exploration (India) BV, Netherlands

• Phelps Dodge Exploration Corpn, USA

• BHP Billiton,Australia

• Pebble creek Resources Ltd., Canada

• Meridian Peak Resources Corpn,Canada

• Rio-Tinto Minerals Development Ltd., UK

• Metdist Group, UK

• De-Beers Consolidated mines ltd., South Africa

Foreign Direct Investment (FDI) in the Indian Mining sector

Cent percent foreign equity holding is allowed on the automatic route for all non-fuel and non-atomic minerals including diamonds and precious stones.

International Cooperation in the Mining Sector

India has signed number of MOU in an endeavor to promote the Indian mining industry.

The list is as follows:

• MOU with Uzbekistan

• MOU with China

• India-Australia joint working group on energy and minerals

• Indo-French Working Group on Mineral Exploration and Development

• India-Canada Geoscsiences Working Group