Mining plays a very vital role in developing an economy in the world today.
With rapid industrialization worldwide and the accent on employment, Mining has come into center point, accelerating the producing sector.
Mining viewed from the economic point has distinctive advantages.
Some of these benefits include:
1. Providing livelihood to local communities.
2. Generating income for the local government thereby directly contributing to its economy.
3. Promoting a more efficient use of energy, saving people money.
4. Promoting environmental awareness through rehabilitation programs resulting in more renewable sources than ever.
MINING IN INDIA.
India accounts for 12% of the world's known and economically available thorium. It is the world's largest producer and exporter of mica, accounting for almost 60 percent of the net mica production in the world, which it exports to the United Kingdom, Japan, United States of America etc. As one of the largest producers and exporters of iron ore in the world, its majority of exports go to Japan, Korea, Europe, and the Middle East.Japan accounts for nearly 3/4 of India's total iron ore exports. It also has one of the largest deposits of manganese in the world and is a leading producer as well as exporter of manganese ore, which it exports to Japan, Europe (Sweden, Belgium, Norway, among other countries), and to a lesser extent, the United States of America.
India holds a fair advantage in cost of production and conversion costs in steel and alumina. Its strategic location enables convenient exports to develop as well as the fast-developing Asian markets.
India produces 95 minerals– 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals (including building and other minerals).
The rise in infrastructure development and automotive production are driving growth in the sector. Power and cement industries are also aiding growth in the metals and mining sector. Demand for iron and steel is set to continue, given the strong growth expectations for the residential and commercial building industry.
India has vast mineral potential with mining leases granted for longer durations of 20 to 30 years. India produces 95 minerals– 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals (including building and other minerals).
Mineral production in India grew at a CAGR of 5.72 percent between 2013-14 and 2017-18 to reach US$ 17.62 billion in 2017-18.
India holds a fair advantage in cost of production and conversion costs in steel and alumina. The country is the 3rd largest steel producer with production of 101.4 million tonnes of crude steel in 2017. Crude Steel and Finished Steel production during 2017-18 were 102.34 million tonnes and 104.98 million tonnes respectively. India is the largest producer of sheet mica in the world and has the 7th largest bauxite reserves at around 2,908.85 million tonnes in FY17. Iron ore production in the country increased from 129.32 million tonnes in FY15 to 210.47 million tonnes in FY18. It is forecasted to grow at the rate of 5 percent in Fy19.
The Government of India has allowed 100 percent Foreign Direct Investment (FDI) in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth in the sector. Power and cement industries also aiding growth in the metals and mining sector. Demand for iron and steel is set to grow, given the strong growth expectations for the residential and commercial building industry.
Market Size
India is the 3rd largest producer of coal. Coal production stood at 676.51 million tonnes in FY18. India has the 5th largest estimated coal reserves in the world, standing at 308.802 billion tonnes in FY16.
India ranks 4th in terms of iron ore production globally. In FY18, production of iron ore stood at 210 million tonnes. India has around 8 percent of the world's deposits of iron ore.
India stood as the third largest crude steel producer with output of 101.4 million tonnes in 2017. Crude steel production in the country rose to 102.34 million tonnes in FY18.
According to the Ministry of Mines, India has the 7th largest bauxite reserves- around 2,908.85 million tonnes in FY17. Aluminum production stood at 1.60 million metric tonnes during Apr-Sept 2017 and is forecasted to grow to 3.33 million tonnes in Fy20.
Geographical distribution
The distribution of minerals in the country is uneven and mineral density varies from region to region. The Mining region can be identified into five mineral 'belts' in the country:
The North Eastern Peninsular Belt,
• Central Belt,
• Southern Belt,
• South Western Belt,
• The North Western Belt.
Road Ahead
There is significant scope for new mining capacities in iron ore, bauxite and coal and considerable opportunities for future discoveries of subsurface deposits.
Infrastructure projects continue to provide lucrative business opportunities for steel, zinc and aluminum producers. Aluminum production is forecasted to grow to 3.33 million metric tonnes by Fy20.
Iron and steel make up a core component of the real estate sector. Demand for these metals is set to continue given strong growth expectations for the residential and commercial building industry.
Government Initiatives
• FDI caps in the mining and exploration of metal and non-metal ores have been increased to 100 percent under the automatic route.
• In July 2018, Union Minister of Coal, Railways, Finance & Corporate Affairs launched a mobile application 'Khan Prahari' and Coal Mine Surveillance & Management System (CMSMS) developed by Central Mine Planning and Design Institute (CMPDI).
Agencies involved in exploration.
In India, systematic surveying, prospecting, and exploration of minerals is undertaken by the
• Geological Survey of India (GSI),
• Central Mine Planning & Design Institute (CMPDI).
• Oil and Natural Gas Corporation (ONGC).
• Mineral Exploration Corporation Limited (MECL).
• National Mineral Development Corporation (NMDC).
• Indian Bureau of Mines (IBM),
• Bharat Gold Mines Limited (BGML) .
• Hindustan Copper Limited (HCL) .
• National Aluminium Company Limited (NALCO).
• Departments of Mining and Geology in various states.
The Centre for Techno Economic Mineral Policy Options (C-TEMPO) is a think tank under the Ministry of Mines which looks at the national exploration policy.
THE SCOPE
• Cumulative FDI inflows into the metals and mining sector between April 2000 and June 2018 stood at US$ 14.33 billion as per Department of Industrial Policy and Promotion (DIPP).
• Under the Mines and Minerals (Development and Regulation) Act of 1957, FDI up to 100% under Automatic route is allowed for the mining and exploration of metal and non- metal ores including diamond, gold, silver and precious ores, while FDI up to 100% under Government route is allowed in for mining and mineral separation of titanium bearing minerals and its ores.
• The Government of India is taking steps to boost the country's domestic steel sector and raise its capacity to 300 million tonnes (MT) by 2030-31.
