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 2628 in 2010-11 as against 2999
in the previous year.
Out of 2628 reporting mines, 377 were located in Gujarat followed by Andhra Pradesh (372), Jharkhand (288), Madhya Pradesh (251), Rajasthan (215), Karnataka (211), Orissa (159), Tamil
Nadu (156), Maharashtra (142), Chhattisgarh (135) and
West Bengal (111). These 11 States together accounted
for 91.97% of total number of mines in the country in
2010-11. The number of reporting mines are given below:
Number of Reporting Mines
|Coal (including Lignite)
*Excluding atomic minerals, petroleum (crude), natural gas (utilized) and minor minerals.
Source:Ministry of Mines,Government of India
Major Players in the Mining Sector
Exploration and Production of Coal/Lignite
- Coal India Ltd.,
- Neyveli Lignite Corporation
Exploration of Metals
- National Aluminium Company Ltd. (NALCO)
- Bharat Aluminium Company Ltd. (BALCO)
- Mineral Exploration Corporation Ltd. (MECL)
- Bharat Gold Mines Ltd.
- Oil and Natural Gas Corporation Ltd. (ONGC)
- Hindustan Zinc Ltd.
- Hindustan Copper Ltd. (HCL)
- Sikkim Mining Corporation
Iron Ore Sector
- National Mineral Development Corporation (NDMC)
- Kudremukh Iron Ore Company
- Steel Authority of India Ltd. (SAIL)
- Orissa Mining Corporation
Bauxite Mining and Aluminium Production
- National Aluminium Company Ltd. (NALCO)
Copper Ore Mining
- Hindustan Copper Ltd. (HCL)
- Phosphate and Barytes Mining
- Rajasthan State Mines and Minerals Ltd.
- Andhra Pradesh Mining Development Corporation
Global Mining Companies Operating
- 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
- 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 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
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
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)
As per Department of Industrial Policy and Promotion (DIPP),the FDI in the mining sector during the current year (2011-12) has been reported to USD 103.03 million upto September 2011.
India-Canada Geosciences Working Group
Ministry of Mines and the Department of Natural Resources, Canada entered into a cooperation
programme in field of geosciences by signing a Memorandum of Understanding (MoU) in April, 2003. A
Joint Working Group (JWG) was formed to implement the MoU and five meetings have so far been held.
The fifth meeting was held on 27th May, 2008 in Canada. The main projects are study on Arsenic
Toxicity in the ground water of West Bengal and monitoring of landslides at selected sites in India, etc. With a view to enhance the cooperation programme between the two countries a Memorandum of
Understanding (MoU) was signed between India and Canada on 27th June, 2010, for cooperation in the
field of Geology and Mineral Resources during the visit of Hon'ble Prime Minister of India to Canada.
MOU with Chile
A Memorandum of Understanding (MOU) was signed between India and the Republic of Chile on 17th
March, 2009, for cooperation in the field of Geology and Mineral Resources during the visit of President
of Chile to India.
MOU with Nambia
Ministry of Mines has signed a Memorandum of Understanding (MoU) with the Republic of Namibia on
cooperation in the field of geology and mineral resources, in New Delhi on 31st August, 2009. The MoU
was signed by then Hon'ble Minister of Mines and Development of North Eastern Region on behalf of the
Government of India and the Minister of Mines and Energy, on behalf of the Republic of Namibia.
MOU with Ontario
The Province of Ontario in Canada is considered very advanced in the mining sector. The mining
tenement system and laws/procedures of the provincial Government of Ontario for grant of prospecting
licences and mining leases, are among the most modern and transparent in the world. These can be useful
for India for an exposure and for considering adopting good practices .Keeping the above in mind,Ministry of Mines has signed a Memorandum of Understanding (MoU) with the Ministry of Northern
Development, Mines and Forestry, Province of Ontario, Canada, for cooperation in the field of Geology
and Mineral Resources on 8th July, 2010.The MoU will provide an umbrella framework for development of mutual cooperation in the field of
geology and mineral resources between India and Ontario Province, Canada. It will facilitate exchange of
information on research and development, training and human resources development in geology and
mineral resources, promote investment in mining and mining related activities and encourage transfer of
technology between the two countries.
MOU with Mozambique
Mozambique's mining sector has been opened up to private initiative and international investors. The
mineral potential of Mozambique includes gold, base metals, mineral sands, diamonds, graphite, coal, etc.
Mozambique has extensive mineralized middle to late orogenic belts, divided by younger basins and
major shear zones which host gold, copper, iron, chromites, beryl-tantalite-graphite, asbestos etc.
To facilitate cooperation between the two countries, Ministry of Mines entered into a Memorandum of
Understanding (MoU) on 30th September, 2010, with the Ministry of Natural Resources and Energy of the
Republic of Mozambique for cooperation in the field of Mineral Resources, during the visit of the
President of Mozambique to India.
MOU with Malawi
Malawi has mineral resources of coal, precious and semi precious stones, graphite, phosphate, nickel,
copper, platinum group of elements etc. There exists a definite possibility of increasing India's
involvement in the mining sector of Malawi. Indian mining companies can explore the possibilities of
joint collaboration with their counterparts in Malawi to exploit Malawi's mineral resources.
To facilitate cooperation activities, Ministry of Mines and Ministry of Natural Resources, Energy and
Environment of the Republic of Malawi signed a Memorandum of Understanding for cooperation in the
field of Geology and Mineral Resources on 3rd November, 2010, during the visit of the President of
Malawi to India.
Co-operation with Mongolia
Mongolia has undergone a rapid increase in mineral exploration. Mongolia has extensive and largely
untapped mineral resources. Coal, copper, gold, fluorspar are the major mineral products that are produced
in Mongolia. Silver and molybdenum are also being produced. Gold mining in Mongolia has also
increased significantly. The Minerals Law has played an important role in attracting foreign exploration
companies into Mongolia. One of the possible area for cooperation identified is in the field of copper
mining, copper beneficiation and smelting. While the Minerals Law has played an important role in
attracting foreign exploration companies into Mongolia, the rapid increase in the number of exploration
licenses has been largely due to the abolition of the 10 percent gold tax.
To enhance cooperation with mineral rich Mongolia a Joint Working Group (JWG) on Geology, Mines
and Minerals was set up and the first meeting was held on 7-9 June, 2010.
Co-operation with Columbia
Colombia is endowed with varieties of minerals, which includes gold, coal, bauxite, copper, iron ore,
lead, silver, zinc, nickel, platinum and other industrial minerals like salt, asbestos, clays, feldspar,
gypsum, magnetite, mica, calcite, dolomite, limestone, etc. Historically, the country has been
recognised as an important producer and leading exporter of emerald. In addition, the country Is an
important producer of ferronickel and the only producer of platinum in Latin America.
A delegation from Colombia led by H.E.Mr. Hernan Martinez Tores, Minister of Mines and Energy,
Republic of Colombia had a meeting with Hon'ble Minister of State for Mines in September 2008. A
Memorandum of Understanding between India and Colombia on cooperation in the field of Geology and
Mineral Resources has been finalized.
Co-operation with Afghanistan
India and Afghanistan bilateral relations which is underpinned by a long history of friendship and cultural
affinity have attained new level of intensity and cooperation. India has undertaken, in partnership with
the Afghan government, projects in virtually all parts of Afghanistan and a whole range of sectors
including hydro-electricity, road construction, agriculture, industry, telecommunications, information &
broadcasting, education and health. In the next phase of Indian assistance programme, focus would be on
development of the infrastructure sector, including road construction, hydroelectricity and power
transmission.Afghanistan has significant amounts of undiscovered non-fuel mineral resources.
Estimates for cooper and iron ore resources were found to have the most potential for extraction in
Afghanistan. Scientists also found indication of abundant deposits of colored stones and gemstones,
including emerald, ruby sapphire, peridot. Other examples of mineral resources available for extraction in
Afghanistan include gold, mercury, sulphur, chromite, talc-magnesite, potash, graphite and sand & gravel.
H.E. Mr. Waheedullah Shaharani, Minister of Mines, Afghanistan called on the Hon'ble Minister of
Mines & DONER on 17th June, 2010 and emphasized the need of India's assistance in training of
geosciences personnel of Afghanistan by India. He also invited Indian business fraternity to participate in
Afghan mineral industry through value addition.
Co-operation with Quebec Province, Canada
His Excellency Mr. Clement Gignac, Minister of Economic Development, Innovation and Export Trade,
Quebec Province, Canada met Hon'ble Minister of State for Mines (IC) Shri Dinsha Patel on 3rd February,
2011. The discussions were focused on possibility of entering into a memorandum of understanding for
cooperation between India and Quebec province in the field of Geology and Mineral Resources.
National Mineral Policy, 2008
(For non-fuel and non-coal minerals)
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 countrys
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
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,
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
text of the policy
Useful Web link
Ministry of Mines,Government of India: www.mines.nic.in