{"id":3989,"date":"2011-04-22T21:28:29","date_gmt":"2011-04-22T15:58:29","guid":{"rendered":"http:\/\/greenworldinvestor.com\/?p=3989"},"modified":"2011-04-22T21:28:29","modified_gmt":"2011-04-22T15:58:29","slug":"indias-mining-industry-controlled-by-handful-of-mining-companies-vedantahindalconmdccil-indias-mineral-production-policies-and-issues","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2011\/04\/22\/indias-mining-industry-controlled-by-handful-of-mining-companies-vedantahindalconmdccil-indias-mineral-production-policies-and-issues\/","title":{"rendered":"India's Mining Industry controlled by handful of Mining Companies (Vedanta,Hindalco,NMDC,CIL) – India's Mineral Production, Policies and Issues"},"content":{"rendered":"

Mining Industry in India<\/strong> is an important economic sector which contributes significantly to the economy of India. India’s minerals range from both metallic and non-metallic types.The total working mines were 2,854 in 2007-08 with\u00a0 569 mines belonged to coal and lignite, 676 mines to metallic minerals and 1,609 mines to non-metallic minerals.There were 755 mines in public sector and the remaining 2,099 mines in private sector.India is an important exporter of\u00a0 iron ore, titanium, manganese, bauxite, granite, and imports cobalt, mercury, graphite etc. India mineral resources of the country are surveyed by the Indian Ministry of Mines, which also regulates the manner in which these resources are used. The ministry oversees the various aspects of industrial mining in the country.Note Mining in India comes under both the ferderal and state supervision.Coal Mining Companies in India<\/a> are almost exclusively\u00a0 government owned because of the government coal mines nationalization act in the 1970s. <\/sup><\/p>\n

Mineral Production of India<\/strong><\/p>\n

The total value of mineral production (excluding atomic minerals) was around $25 billion\u00a0 during\u00a0 2007-08 .In the total value of mineral production, the fuel minerals contributed the major share of Rs.70,336 crore or 61%. The rest was accrued from metallic minerals Rs. 24,038 crore or 21 %, nonmetallic minerals Rs. 3,446 crore or 3% and minor
\nminerals Rs.16,695 crore or 15% (source India Bureau of Mines)<\/a><\/p>\n

Fuel Minerals<\/strong><\/p>\n

The value of fuel minerals in 2007-08 at Rs. 70,336 crore.The production of coal at 457 million tonnes,lignite at 34 million tonnes,petroleum (crude) at 34 million tonnes and natural gas (utilised) at 32,274 m cu m<\/p>\n

Metallic Minerals<\/strong><\/p>\n

Among the principal metallic minerals, iron ore contributed Rs. 18,495 crore or 77%, chromite Rs. 2,020 crore or 8%, manganese ore Rs. 1,098 crore or 5%, lead (concentrate) & zinc (concentrate) Rs. 1,080 crore or 4%, bauxite Rs. 526 crore and copper (concentrate) Rs. 383 crore or about 2% each, gold Rs. 283 crore or 1%, while the remaining was jointly shared by silver and tin concentrates. The production of iron ore at about 206.45 million tonnes,Manganese Ore was 2.6 million tons,Gold only 2.8 tons,Bauxite 23.1 million tons,Chromite 4.8 million tons and Copper concentrate at 159 thousand tons.<\/p>\n

Mining Reserves of India<\/strong><\/p>\n

India has significant sources of coal (fourth-largest reserves in the world), bauxite, titanium ore, chromite, natural gas, diamonds,\u00a0 and limestone. India ranks 3rd in production of coal & lignite, 2nd in barites, 4th in iron ore, 5th in bauxite and crude steel, 7th in manganese ore and 8th in aluminum (source Wikipedia).In India, 80 per cent of mining is in coal and the balance 20 per cent is in various metals and other raw materials such as gold, copper, iron, lead, bauxite, zinc and uranium.<\/p>\n

Mining Industry in India Issues<\/strong><\/p>\n

One of the most challenging issues in India’s mining sector is the lack of assessment of India’s natural resources<\/strong>. A number of areas remain unexplored and the mineral resources in these areas are yet to be assessed. The distribution of minerals in the areas known is uneven and varies drastically from one region to another. The accidents in mining are caused both by man-made and natural phenomenon, for example explosions and flooding. The main causes for incidents resulting in serious injury or death are roof fall, vehicular accidents, falling\/slipping and hauling related incidents. In recent decades, mining industry has been facing issues of large scale displacements, resistance of locals, environmental issues like pollution, corruption, deforestation, dangers to animal habitats.<\/p>\n

India Mining Policies<\/strong><\/p>\n

The Government of India has enunciated National Mineral Policy, 2008<\/strong> which includes policy measures like assured right to next stage mineral concession, transferability of mineral concessions and transparency in allotment of concessions New Exploration Licensing Policy (NELP)-VIII<\/strong> was announced by the Government of India\u00a0 in 2009 offering\u00a0 70 oil and gas blocks covering a sedimentary area of about 163,535 sq km comprising 24 deep water, 28 shallow water and 18 on-land blocks<\/p>\n

MINING COMPANIES<\/strong><\/p>\n

Privately owned Indian Mining Companies<\/strong><\/span><\/p>\n

Hindalco Industries Ltd.<\/strong> – With a market cap of Rs.29,000 crores, revenue Rs.5,900 crores & NPM 7.7% (Dec’10), Hindalco Industries is an industry leader in aluminium and copper. The metals flagship company of the Aditya Birla Group is the world’s largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia. Its copper smelter is the world\u2019s largest custom smelter at a single location. It is a metals powerhouse with high-end rolling capabilities and has a global presence in 12 countries. The company’s copper unit, Birla Copper, produces copper cathodes, continuous cast copper rods and other by-products, such as gold, silver and DAP fertilisers. Birla Copper also produces precious metals, fertilisers and sulphuric and phosphoric acid. Hindalco’s major products include standard and speciality grade aluminas and hydrates, aluminium ingots, billets, wire rods, flat rolled products, extrusions and foil.<\/p>\n

In 2007, Hindalco Industries Limited acquired Novelis (a spin-off from Alcan Inc). Novelis Inc. is the world\u2019s leading aluminium rolled products producer based on shipment volume. The company produces an estimated 19 per cent of the world\u2019s flat-rolled aluminium products and is the number one producer in Europe and South America, and the second largest in North America and Asia. Novelis is also the world leader in the recycling of used aluminium beverage cans. Hindalco Industries Ltd, also owns 51% of Aditya Birla Minerals Ltd. Hindalco-Almex Aerospace Limited (HAAL) is a joint venture between Hindalco Industries Limited and Almex USA Incorporated. The company manufactures high-strength aluminium alloys for applications in the aerospace, sporting goods and surface transport industries. Hindalco holds 70% equity while the balance 30% is held by Almex.<\/p>\n

VEDANTA GROUP COMPANIES<\/strong><\/p>\n