Indian Mining Sector - Overview

4 are fuel minerals
- 11 metallic
- 53 non-metallic and
- 22 minor minerals
The mining leases occupying about 0.7 million hectares which is 0.21 per cent of the total land mass of the country.
The Indian mining industry provides employment to about 1.1 million persons.
Operates more than 3100 mines which consist of 572 coal mines, 2500 metalliferrous mines and a score of other small mines.
India produces 90 minerals out of which

Indian Natural Resources as % Global

In Million Tonnes
India's Resources as a % of World Resources	Key Resources	India Resources
10	Coal (including lignite)
13	Iron Ore
7	Chromite
3	Manganese Ore
0.3	Copper
4	Bauxite
11	Kaolin
1	Lead
30	Ilmenite

Mineral Production & Export Value

Mineral	2002-03	2003-04	2004-05	2005-06	2006-07
Coal	341	361	383	407	430
Bauxite (000 tonnes)	9867	10957	11964	12335	13075
Iron Ore	99	121	146	154	172
Chromite (000 tonnes)	3069	3199	3621	3423	4101
Copper (000 tonnes)	152	143	137	124	115

The Total Value of Mineral Production for the period 2006-07 estimated to be Rs. 87866 crores a 4.67% increase over the previous year.

Fuel Mineral including coal, oil and lignite accounts for 72% of total value of mineral production

Iron ore exports accounts for 21% of total export value for the year 2006-07

Mining Industry - GDP Contribution

	2002-03	2003-04	2004-05	2005-06	2006-07
GDP growth rate of Country	3.8%	8.5%	7.5%	9.0%	9.4%
GDP growth rate of Country	8.8%	3.1%	7.5%	3.6%	5.1%
GDP growth rate of Country	2.8%	2.5%	3.0%	2.8%	2.7%
Contribution to GDP : 2015 ~ USD 75 to 85 Bn [Current is at 27Bn]

Source: Compiled from Planning commission reports

India's Demand Forecast

Projected Mineral and Metal Output

Policy Reforms in Indian Mining Industry

Constituted High Power committee to Review the National Mineral Policy and recommend possible amendments.
- New Mineral Policy expected in Q2 of 2008.
Key recommendations:
- Thrust on commercial mining
- Free market regime
- Speedy approvals and Clearances - Seamless transfer of licences
Central Govt. has taken initiatives for reforming the sector
- Step up thrust on:
  - Increase reserves through scientific and systematic exploration
  - Maximize resource utilization through ~ Adoption of world's best practices - Beneficiation, Large-scale mining ventures
  - Development of Infrastructure - Road, Rail, Port and Power

Mineral Policy favours development of Mining Industry

Investment Opportunities

Coal sector ~ US$40 billion in next 10 yrs
Metal Ore ~ US$15 billion in next 5 yrs
Oil and Natural Gas ~ US$10 billion by 2010
Mining Equipment ~ US$5 billion in next 5 yrs

Total Investment Potential - USD 75Billion

Opportunities ~ Mineral Exploration

Land Mass for Mineral exploration ~ 1.82 Million Sq kms
- Geo physical mapping ~ 56,000 Sq kms (3%)
- Geo chemical mapping ~ 73,000 Sq kms (4%)
Annual spending is only USD 5Million; mostly on Coal
Likely positive paradigm shift in exploration policies
- Thrust on Exploration
- Thrust on Mineral Development
- Encouragement of private sector investment

Mineral Exploration ~ Huge opportunities likely to be in offing

Investment and FDI Policy in India

Non-Coal mining sector has been fully opened up to private investment; Coal sector is been liberalized gradually
FDI liberalized
- 100% allowed via automatic route - for processing of minerals and metallurgy
- 100% foreign equity holdings allowed, both for mining and exploration; except for atomic minerals where
- FDI of 74% is allowed (100% for Titanium)
  - Higher FDI needs to be routed through FIPB

Roadblocks in the growth of Mining Industry

Indian Mining Equipment Industry

Over 100 companies manufacturing mining equipment present in India.
71 % of the sector is comprised of PSUs while the remaining 29% comprises of private limited, JVs and closely held private limited companies.
75% of the companies manufacturing in India were involved in the entire range of activities like design and engineering, manufacturing, erection, servicing and commissioning. There are only a few companies who act as selling agents for international players. There are others who manufacture and also import complete equipment or in SKD condition from their principals abroad and market them.
The technology leaders in the mining equipment sector are: Sandvik, Caterpillar, Atlas Copco, Terex, Volvo, Case, Joy Mining, Liebherr, Bomag, John Deere, Tega, JCB, Poclain, Bitelli, Kobelco, Hyundai and Daewoo.

IMME 2008

9th International Mining & Machinery Exhibition (IMME 2008) - the largest mining exhibition in Salt Lake Stadium Kolkata, India is being held between 5-8 November 2008.
Partner country is Germany
IMME 2008 will focus on the opportunities, international and national, provided by the shift of mining companies towards customer satisfaction and expectations. It examines all the elements that make up the industry like the mission, vision, culture, leadership, management, human resources, products and services, process and systems of various ventures, providing a comprehensive look at Indian mining companies and endeavors.
IMME 2008 will feature exhibitors, professionals, buyers and delegates who share a common outlook towards joint ventures, technology transfers and strategic business-to-business alliances.
As Indian mining moves into the 21st century with new technologies and innovations, we are witness to an unparallel growth in the industry. Mining companies are now driven by customer satisfaction and expectations. And the expectations of sophisticated and educated customers have risen in the respect of demand for quality and services. The Indian mining world is a cave full of golden opportunities. IMME 2008 explores these opportunities in detail, giving an in-depth analysis of the Indian mining industry.
IMME 2008 is expected to be visited by more than 20,000 visitors from various countries.
More than 200 exhibitors are expected to take part in IMME 2008.
A Global Mining Summit will be held concurrently between 6-7 November at Hyatt Regency Hotel, Kolkata.
A buyer-seller meet will also be organised by CII to enhance B2B opportunities.