MINING

SECTOR IN
INDIA .

WHAT IS MINING?

Mining is the extraction of valuable minerals or

other geological materials from the earth.
There are various typea of Ores recovered by
mining include metals, coal , limestone
Mining is required to obtain any material
that cannot be grown through agricultural
processes, or created artificially in a
laboratory or factory.
Mining in a wider sense includes extraction of any
non-renewable resource such as petroleum,
natural gas, or even water.

MAJOR MINING STATES

Orissa
Jharkhand
Chattisgarh
Karnataka
Maharashtra
Andhra Pradesh
Tamil nadu
Madhya Pradesh
West Bengal
Goa
Rajasthan

INDIAN MINING SECTOR

India is endowed with significant mineral resources.

India produces 89 minerals.
In India, 80% of mining is in coal and the balance 20% is
in various metals and other raw materials such as gold,
copper.
India ranks 3rd in production of coal & lignite
production.
11 the in crude steel in the World.
Over 1.1 million people are employed in the
Indian mining industry. With over 2,326 private and
292 public operating mines in the country, minerals
form 16 percent of India's exports.

MINE LIFECYCLE

1.
2.
3.
4.
5.
6.

Exploration Phase
Design Phase
Construction Phase
Production Phase
Post Closure Phase
Closure Phase

WHAT IS THE POLICY FOR

FOREIGN DIRECT INVESTMENT
IN THE MINING SECTOR

The entrepreneurs desirous of bringing in

foreign direct investment in the non-fuel
and non-atomic mineral mining sector
are eligible to bring in the foreign equity just
by informing the Reserve Bank of India,
termed as automatic approval.
Automatic approval of foreign direct
investment up to 100% is permissible for
exploration and exploitation of all non-fuel
and non-atomic minerals.

FACTORS AFFECTING MINING

Geological availability - a successful mine or quarry

must be based on a deposit that has value.
Stable ownership regime - Mines require substantial
investment. Investors will need to be assured that their
investment won't be confiscated by governments or
others who shared none of the risks.
Exploration - the geologic concentration needs to be
found.

Transport - some bulk materials need to be close to

markets or at least to low cost transportation. For
example iron ore deposits need to be within a few
hundred miles of steel mills or ocean transportation.

IMPACT OF MINING

The environmental impact of mining includes

erosion, formation of sinkholes, loss of biodiversity,
and contamination of soil, groundwater and surface
water by chemicals from mining processes.
Besides creating environmental damage, the
contamination resulting from leakage of chemicals
also affect the health of the local population.
mining may cause destruction and disturbance of
ecosystems and habitats.
In urbanised environments mining may produce
noise pollution, dust pollution and visual pollution.

CHALLENGES IN INDIAS MINING SECTOR

Social license to operate

Sharing the benefits
Margin protection and productivity
improvement
Capital project execution
Infrastructure access
Competition for land usage
Fraud & Corruption
Regulations

FUTURE OF THE MINING INDUSTRY IN INDIA

Despite the slowdown, India is still the second-fastest growing

economy, after China.
Demand for minerals, as well as for mining services, is robust in the
country.
Mining in India is becoming more structured, and companies have
started outsourcing part of the project to mining service companies.
The largest mining company in India, i.e., Coal India Limited (CIL),
plans to invest around INR254 billion during the Twelfth FYP (2012
17).
Contract mining could prove to be a solution to the on-going current
coal deficit in country.
As the industry focuses on adapting international levels of
technology, there exists untapped potential in the Indian mining
equipment sector.