Coal

The mineral industry comprises an important segment of the Indian economy with India being highly endowed with vast mineral resources. The mineral sector plays a crucial role in the industrial development of the country. India's accelerated growth rate warrants a rapid development of the mining sector, on which most of the basic industries in the manufacturing sector depend. India produces 89 minerals of which 4 are fuel minerals, 11 metallic, 52 non-metallic and 22 minor minerals.
Mineral Production
The total value of mineral production (excluding atomic minerals) during the year 2006-07 is estimated at Rs. 87,866.35 crores. The composition of the sector is as follows:

  • Fuel minerals:Rs. 63,938.76 crore (73 per cent)
  • Metallic minerals: Rs. 12,858.71 crore (15 per cent)
  • Non-metallic minerals: Rs. 11,068.88 crore (13 per cent)

Exports
During the period April-September 2006-07, the export for ores and minerals stood at US$ 2895.90 million (prov.) as compared to US$2677.40 million during the same period in the year 2005-06, registering a growth rate of 8.2 per cent.
Government in the Mining Sector
Survey and Exploration:

  • Geological Survey of India (GSI): A premier organisation of earth science studies was set up in 1851. It is a subordinate office of the Ministry of Mines; Govt. of India. GSI has provided vital earth science input into all facets of national economic development.
  • Mineral Exploration Corporation Ltd (MECL): Since its inception in the year 1972, MECL is carrying out mineral exploration activities and has added 129130 million tonnes 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, 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.
Major Players
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): NALCO, BALCO, Mineral Exploration Corporation Ltd, Bharat Gold Mines Ltd, ONGC, Ircon, Hindustan Zinc Ltd, Hindustan Copper Ltd, Sikkim Mining Corporation
  • 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 - Phoshate and Barytes Mining: Rajasthan State Mines and Minerals Ltd, Andhra Pradesh Mining Development Corporation.

Global Mining Companies in Indian Mining Sector

  • 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

Advantage India

  • World's largest producer of mica blocs and splittings
  • Ranks third among global chromite producers.
  • Ranks third in the production of coal, lignite, barytes.
  • Ranks fourth in the production of iron -ore.
  • Ranks sixth in the production of bauxite and manganese ore.
  • Ranks tenth in the production of aluminium
  • Ranks eleventh in the production of crude steel.
  • Favourable climate for the rapid development of the mineral industry.
  • Heritage in mining and mineral processing
  • Potential of large deposits of minerals.

Investment Opportunities
Foreign participation in Mineral Exploration and mining of high value and scarce minerals.

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.
International Cooperation in the Mining Sector
of Mines , Federation of Indian Mineral Industries with Western Australia on 25th May, 2005 on Cooperative Staff Development related to Environmental Governance and Mine Rehabilitation.
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