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MINES
The metallurgical and mineral industries constitute
the bedrock of industrial development as they
provide the basic raw materials for most of the
industries. The country is endowed with huge resources
of many metallic and non-metallic minerals. The
wide availability of the minerals in the form
of abundant rich reserves made it very conducive
for the growth and development of the mining sector
in India.
India's Position in
Minerals & Mining Sector
India produces as many as 86 minerals which include
4 fuels, 10 metallic, 46 non-metallic, 3 atomic
and 23 minor minerals (including building and
other materials);
India ranks 2nd in barytes, chromite and talc/steatite/pyrophillite;
India ranks 3rd in coal & lignite and bauxite;
India ranks 4th in iron ore and kyanite/sillimanite;
India ranks 5th in manganese ore and steel (crude);
India ranks 7th in zinc; and
Ranks 8th in aluminium
Mineral Sector
Minerals are valuable natural resources being
finite and non-renewable. They constitute the
vital raw materials for many basic industries
and are a major resource for development. Mining
sector is an important segment of the Indian economy.
Since Independence there has been a pronounced
growth in mineral production in terms of quantity
and value.
Mining Sector
Indian mining industry is characterized by a
large number of small operational mines. The number
of mines which reported mineral production (excluding
minor minerals, petroleum (crude), natural gas
and atomic minerals) in India was 2954 in 2008-09
as against 2854 in the previous year. During 2007-08,
the Public Sector continued to play a dominant
role in mineral production accounting for 67 per
cent or US$ 15.67 billion in the total value.
Small mines, which were mostly in the private
sector, continued to be operated manually either
as proprietary or partnership ventures.
Production Trends
Minerals
Based on the overall trend so far, the index
of mineral production (base 1993-94=100) for the
year 2008-09 is estimated at US$ 37.66 million
as compared to US $ 36.84 million for 2007-08
showing a positive growth of 2.34 per cent. The
total value of mineral production (excluding atomic
minerals) during 2008-09 is estimated at US$ 24.89
billion, which shows an increase of about 7.10
per cent over that of the previous year. During
2008-09, value for fuel minerals accounted for
US$ 15.68 billion or 62.25 per cent metallic minerals,
US$ 6.27 billion or 25.17 per cent of the total
value and non-metallic minerals including minor
minerals US$ 2.95 billion or 11.84 per cent of
the total value.
Metallic Minerals
The value of metallic minerals in 2007-08 at
US$ 5.16 billion increased by about 31 per cent
over the previous year. Among the principal metallic
minerals, iron ore contributed US$ 3.97 billion
or 76.9 per cent, chromite US$ 433.86 million
or 8.4 per cent, lead & zinc (concentrate)
US$ 231.89 million or 4.5 per cent, manganese
ore US$ 235.79 million or 4.6 per cent, copper
(concentrate) US$ 82.26 million or 1.6 per cent,
bauxite US$ 112.98 million or 2.2 per cent, gold
US$ 60.83 million or 1.17 per cent, while the
remaining was jointly shared by silver and tin
concentrates.
Exports
Export value of ores and minerals during 2007-08
was US$ 20.44 billion. Diamond (mostly cut) was
the principal item of export during 2007-08, which
accounted for 60 per cent, followed by iron ore
with a contribution of 24.6 per cent, granite
4.51 per cent, Zinc ore and concentrate 1.35 per
cent, chromite 1.29 per cent, Bauxite 1.24 per
cent and alumina 1.07 per cent. Building and monumental
stones, emerald, coal (including lignite), marble,
etc. were the other important minerals exported
during the year 2007-08.
Government in the Mining
Sector
- Survey and exploration
o Geological Survey of India (GSI)
o Mineral Exploration Corporation Ltd (MECL)
- Regulation and conservation
o Indian Bureau of Mines (IBM)
- Mining and processing
o Hindustan Copper Limited
o National Aluminium Company Ltd
Major Players in the Mining
Sector
The major players in the mining sector are classified
on the basis of the minerals produced by them
namely,
- Exploration and production of coal/lignite:
Coal India Ltd, Neyveli Lignite Corporation,
IISCO, etc.
- Exploration of metals (copper, bauxite,
iron ore, chromite, lead - zinc): National
Aluminium Company Limited (NALCO), Bharat Aluminium
Company Limited (BALCO), Mineral Exploration
Corporation Ltd, Bharat Gold Mines Ltd (BGML),
Oil and natural gas Corporation (ONGC), Hindustan
Zinc Ltd, Hindustan Copper Ltd (HCL), etc.
- Iron Ore Sector: National Mineral Development
Corporation, Kudremukh Iron Ore company, Steel
Authority of India Ltd, Orissa Mining Corporation.
- Bauxite mining and aluminium production:
National Aluminium Company.
- Copper-ore mining: Hindustan Copper
Ltd.
- Rock-phosphate and barites mining: Rajasthan
State Mines and Minerals Ltd, Andhra Pradesh
Mining Development Corporation.
Global Mining Companies
Operating in India
- Transworld Garnet Co., Canada
- Meridian Peak Resources Corpn, Canada
- Pebble Creek Resources Ltd., Canada
- BHP Billiton, Australia
- Rio-Tinto Minerals Development Ltd., UK
- Metdist Group, UK
- Phelps Dodge Exploration Corpn, USA
- De-Beers Consolidated Mines Ltd., South Africa
- Anglo American Exploration (India) BV, Netherlands
Investment Opportunities
- Vast opportunities for private and foreign
investors to set up production facilities and
tap large domestic market and export potential.
- Induction of foreign technology.
- Private participation in exploration and
mining of high value and scarce minerals is
being encouraged.
Regulation and Conservation
The Indian Bureau of
Mines (IBM): IBM is a subordinate office
under the Ministry of Mines. It is engaged in
the promotion and conservation of minerals, protection
of mines environment and scientific development
of mineral resource of the country, other than
coal, petroleum and natural gas, atomic mineral
and minor minerals.
Mining and Processing
Hindustan Copper Limited (HCL)
HCL was incorporated on 9th November 1967, under
the Companies Act, 1956. It was established as
a Government of India enterprise to take over
all plants, projects, schemes and studies pertaining
to the exploration and exploitation of copper
deposits, including smelting and refining from
National Mineral Development Corporation Ltd.
National Aluminium Company
Ltd (NALCO)
NALCO was incorporated in 1981 and is Asia's
largest integrated alumina- aluminium complex,
comprising bauxite mining, alumina refining, aluminium
smelting and casting, power generation, rail and
port facilities. NALCO enjoys the status of a
Star Export House and a Miniratna company.
Foreign Direct Investment
(FDI) in the Mining Sector
Foreign equity holding is allowed upto 100 per
cent on the automatic route for all non-fuel and
non-atomic minerals including diamonds and precious
stones.
FDI up to 100 per cent is allowed with prior
Government approval in mining and mineral separation
of titanium bearing minerals & ores, its value
addition and integrated activities subject to
sectoral regulations and the Mines and Minerals
(Development and Regulation Act 1957).
FDI for separation of titanium bearing minerals
and ores will be subject to the following additional
conditions,viz.:
(a) FDI up to 100 per cent shall be allowed for
mineral separation only if value addition facilities
are set up within India along with transfer of
technology.
(b) Disposal of tailings during the mineral separation
shall be carried out in accordance with regulations
framed by the Atomic Energy Regulatory Board such
as Atomic Energy (Radiation Protection) Rules,
2004, and the Atomic Energy (Safe Disposal of
Radioactive Wastes) Rules, 1987.
Policy Framework
NATIONAL MINERAL POLICY,
2008 (For non - fuel and non - coal minerals)
Preamble
Minerals are a valuable natural resource being
the vital raw material for infrastructure,capital
goods and basic industries. As a major resource
for development the extraction and management
of minerals has to be integrated into the overall
strategy of the country’s economic development.
The exploitation of minerals has to be guided
by long-term
national goals and perspectives. Just as these
goals and perspectives are dynamic and responsive
to the changing global economic scenario so also
the national mineral policy has
to be dynamic taking into consideration the changing
needs of industry in the context of the
domestic and global economic environment. It is,
therefore, necessary to revisit the National
Mineral Policy, 1993, as provided in para 4 of
the same, and to spell out in a revised statement
the different elements of policy, including elements
newly evolved, for the development of the mineral
resources of the country.
Full
text of the policy
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