History

 First Indian mining operations begun in 1774.

 Development of steam engine in 1850’s spurred

coal demand.

 World War I created another surge in demand.

 National Coal Development Corporation (NCDC) –

1956 formed.

 Steel industry growth in 1950’s and 1960’s sent

coal demand to all time highs.
 Overview of Mining Sector
 The Mining sector – Back Bone of the Indian economy

 India produces 90 minerals of which 4 are fuel minerals, 11 metallic, 52 non-

metallic and 23 minor minerals.

 90 minerals from 3100 mines, 73% of mining is in coal

 India's major mineral resources include coal, iron, manganese, mica,

bauxite, titanium, chromite, limestone and thorium

 India meets most of its domestic energy demand through its 92 billion tones
of coal reserves (~ 10% of world's coal reserves).

 11 states account for 90% of operational mines

 Industry growth rate in 2008: 9% annually

 Overview of Mining Sector
 Estimated market for mining and mineral processing Equipment : $3 bn.

 Total value of mineral production - ~ Rs. 99,533.10 crore(2008) ▲9%

 Global market: around $ 21 billion

 India's oil reserves, meet 25% of the country's domestic oil demand

 Industry turnover projection: $30 billion by 2012 (2.5% of GDP)

 Mining sector employs 2.1 million people

 Deposits- iron ore 25.2 billion tons (13% of global), coal 257.4 billion tons
(10% of global), bauxite 3.3 billion tons (7.5% of global resources)
 Location of Mining Sources
RESOURCES LOCATIONS (STATE WISE)
Petroleum Bombay High Field, Gujarat and Assam
Coal Tamil Nadu, Chhatisgarh, Maharashtra, Orissa, West
Bengal and Andhra Pradesh
Iron Ore Andhra Pradesh, Bihar, Goa, Karnataka, Madhya
Pradesh, Maharashtra, Orissa, Rajasthan
Diamonds Panna Mines in MP, Andhra Pradesh and Orissa
Gold & silver Kolar fields in Karnataka, Dona block in Andhra Pradesh,
Bansawar district Rajasthan and MP.
Bauxite Orissa, Andhra Pradesh, Madhya Pradesh, Gujarat,
Maharashtra, and Bihar
Chromite Byrapur, Karnataka, Boula, Kathpal, and Orissa
Manganese Ore MP, Goa, Maharashtra, AP, Bihar, Gujarat, West Bengal
Lead and Zinc Rajasthan, AP, Bihar, Gujarat, Maharashtra, Sikkim,
Tamil Nadu, UP
Source: Indian Bureau of Mines
GLOBAL RANK MINERAL RESOURCES
1st Mica
2nd Barytes
3rd Coal & Lignite
4th Iron ore
5th Chromite
6th Bauxite & Manganese ore
10th Aluminum
11th Crude Steel

SOURCE: Indian Commerce Department

 MARKET DRIVERS
 Growth in energy demand => growth in coal-based thermal power
generation

 Growth in infrastructure sector => tremendous growth in demand for

steel

 Government relaxing controls and inviting private participation in mining

 Backward integration of manufacturing companies in to mining for

security of supply

 Easy options running out; technology and productivity becoming more

important
Private and Public industry employment

In millions
Production Companies Involved
Coal Coal India Limited, Neyveli Lignite Corporation,
IISCO etc.

Metals (Copper, Bauxite, Copper NALCO, BALCO, Mineral Exploration

Iron Ore, Chromite, Corporation Ltd, Sterlite, Hindalco, Bharat Gold
Lead- Zinc): Mines Ltd, ONGC, Ircon, Hindustan Zinc Ltd,
Hindustan Copper Ltd, Sikkim Mining
Corporation

Aluminium National Aluminium Company.

Iron Ore NMDC, Kudremukh Iron Ore Co, Orissa Mining
Corporation, NMDC, SAIL, Essel Mining &
Industries Ltd. (EMIL)
Uranium Uranium Corporation of India Limited
 Foreign Companies in India
 Transworld Garnet Co., Canada  Meridian Peak Resources
Corpn,Canada
 Metdist Group, UK
 Pebble creek Resources Ltd.,
Canada
 Phelps Dodge Exploration
Corpn, USA
 BHP Billiton,Australia
 De-Beers Consolidated mines
ltd., South Africa  Rio-Tinto Minerals Development
Ltd., UK
 Anglo American Exploration
(India) BV, Netherlands
 Export and Import of India
IMPORTS EXPORTS
 Coking Coal, Brass,  Bauxite, Iron ore, Coal,
Bronze, Tin, Platinum, Mica, Chromite, Lime
Crude Oil, Uranium, stone, Zinc, Manganese
Tungsten ore, Aluminium, Diamond,
Thorium,
 According to 2008, the
Import went upto Rs.  According to 2008, the
81,265 crores. export went upto Rs.
49,911 crores.
 Ministry of Mines (Mines Act 1957)
 Survey and Exploration:

 Geological Survey of India (GSI): GSI has provided vital earth science input
into all facets of national economic development.

 Mineral Exploration Corporation Ltd (MECL) : MECL is carrying out

mineral exploration activities and has added 129130 million tones of mineral
reserves to the National Mineral Inventory.

 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,
 Reforms in Mining Sector
 Infrastructure Development
 Mineral deposits generally occur in remote and backward areas with poor
infrastructural facilities
 A major thrust needs to be given to development of infrastructural
facilities in mineral bearing areas with special emphasis on Linking
Infrastructure.

 RESEARCH AND DEVELOPMENT

 Research and development - activities from geological survey,
exploration, mining, beneficiation, concentration of minerals to
development of materials.
 R&D efforts shall be directed to find new and alternative uses for minerals
whose traditional demand is on the wane.
 REFORMS
 Mining Equipment and Machinery
 Indigenous industry for manufacture of mining equipment and
machinery shall be strengthened
 Use of equipment and machinery which improve the efficiency,
productivity and economics of mining
 Import of such equipment and machinery shall be freely allowed.

 Manpower Development
 Specialized training shall be constantly reviewed and upgraded from
time to time
 Emphasis shall be laid on mechanization, computerization and
automation of the existing and new mining units.
 The man power development programme shall be suitably reoriented
for the purpose
Reforms in Mining Sector
 Mine Safety

 Relief & Rehabilitation of Displaced and Affected Persons

 Deep Sea Mining

 Coordination Of Research Organizations

 Foreign Trade

 Allow more FDI

 FDI in Mining Sector
 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 Geosciences Working Group

 CONCLUSION
 Considering the growing future needs and security of the supply of
minerals,

 India has to enhance its resource base considerably through various

options including intensive exploration drive, improving the recovery and
production from the existing resource base and ensuring supplies
through imports.

 While technically robust approaches to managing and mitigating the

environmental impacts of mining are well developed, socioeconomic
issues associated with mining present significant unresolved challenges.
 BIBLIOGRAPHY
 WEBSITES  NEWS PAPERS
 Ministry of Mines: www.mines.nic.in
 DNA money
 Economic Times
 Ministry of Coal: www.coal.nic.in

 Coal India Limited: www.coalindia.nic.in

 Customs Duty: http://www.cbec.gov.in/

 India Mining: www.infomine.com/countries/india.asp

 Indian Bureau of Mines: www.ibm.nic.in

 IFC Doing Business Report: www.doingbusiness.org

 USCS Market Research Reports:

www.export.gov/mrktresearch