Mining Industry in India
India is a major mineral producer in Asia and globally. It is currently a global producer of chromite, coal, iron ore and bauxite. India’s mining industry is anticipated to grow further by 1% in the coming times. Several of India’s current state owned mining and beneficiation companies have been faced with drastic production cuts, resulting in operations becoming uneconomical. This has resulted in the closure of several mining operations. Reasons for poor results have been given as lower grade reserves and excessive manpower quotas. Since the enunciation of the National Mineral Policy, 1993, India has made good progress in attracting foreign investment in its mining sector, with attractive incentives.
The National Mineral Policy was revised in 1994 and as a result, private investment (both domestic and foreign), has been permitted for the exploration and exploitation of the following minerals: Iron ore, Copper, Manganese, Lead, Chrome ore, Zinc, Sulfur, Molybdenum, Gold, Tungsten ore, Diamond, Nickel and Platinum group of metals. As a result, several foreign companies have begun investing in India with the majority coming from Canada and the USA, followed by Australia, the UK and South Africa.
Most interest has been shown in the base metals, diamond, mineral sands and gold sectors. India has several governmental agencies that have been set up to assist in the development of the country’s mineral resources. The Geological Survey of India (GSI) is the principal agency responsible for the assessment of geological and regional mineral resources of the country. It operates through six regional offices and four specialized wings - marine, coal geophysics, airborne surveys and training.
India's mining sector is highly fragmented, with a large number of small and inefficient mines, many of them illegal. Almost 95% of operating mines in India produce only about 50% of the country's mineral output. Given the sector's strategic and economic importance, there is significant government involvement, with the sector dominated by state-owned companies or Public-Sector Undertakings (PSUs) such as National Aluminum Corp (NALCO), SAIL, National Mineral Development Corp (NMDC) and Coal India. Indeed, according to the USGS, PSUs contribute about 85% of India's total value of mineral production and are the main producers of key commodities such as coal, iron ore, aluminum, copper and gold.
The Indian Bureau of Mines (IBM) is the principal government agency responsible for compiling exploration data and mineral maps and for providing access to the latest information is respect of mineral resources in the country. IBM has both regulatory as well as service functions. India's regulatory environment is prohibitive for the global investor. The present practice in the Indian mining industry involves issuing a mining permit/license contingent on success in the reconnaissance phase. This practice exposes firms to high levels of risk.
Moreover, Indian states hold the sole licensing authority for most minerals, leaving aside a few such as iron ore and uranium, which require prior consent from the central government. In spite of best efforts to maintain a degree of uniformity in licensing norms across states, many areas of difference still exist across states.
In this industry scenario, Taiyou Research analyzes the Indian Mining Industry. The report covers the following:
The National Mineral Policy was revised in 1994 and as a result, private investment (both domestic and foreign), has been permitted for the exploration and exploitation of the following minerals: Iron ore, Copper, Manganese, Lead, Chrome ore, Zinc, Sulfur, Molybdenum, Gold, Tungsten ore, Diamond, Nickel and Platinum group of metals. As a result, several foreign companies have begun investing in India with the majority coming from Canada and the USA, followed by Australia, the UK and South Africa.
Most interest has been shown in the base metals, diamond, mineral sands and gold sectors. India has several governmental agencies that have been set up to assist in the development of the country’s mineral resources. The Geological Survey of India (GSI) is the principal agency responsible for the assessment of geological and regional mineral resources of the country. It operates through six regional offices and four specialized wings - marine, coal geophysics, airborne surveys and training.
India's mining sector is highly fragmented, with a large number of small and inefficient mines, many of them illegal. Almost 95% of operating mines in India produce only about 50% of the country's mineral output. Given the sector's strategic and economic importance, there is significant government involvement, with the sector dominated by state-owned companies or Public-Sector Undertakings (PSUs) such as National Aluminum Corp (NALCO), SAIL, National Mineral Development Corp (NMDC) and Coal India. Indeed, according to the USGS, PSUs contribute about 85% of India's total value of mineral production and are the main producers of key commodities such as coal, iron ore, aluminum, copper and gold.
The Indian Bureau of Mines (IBM) is the principal government agency responsible for compiling exploration data and mineral maps and for providing access to the latest information is respect of mineral resources in the country. IBM has both regulatory as well as service functions. India's regulatory environment is prohibitive for the global investor. The present practice in the Indian mining industry involves issuing a mining permit/license contingent on success in the reconnaissance phase. This practice exposes firms to high levels of risk.
Moreover, Indian states hold the sole licensing authority for most minerals, leaving aside a few such as iron ore and uranium, which require prior consent from the central government. In spite of best efforts to maintain a degree of uniformity in licensing norms across states, many areas of difference still exist across states.
In this industry scenario, Taiyou Research analyzes the Indian Mining Industry. The report covers the following:
- An industry definition.
- A brief analysis of the Asia Pacific mining industry. We look at the mining industries in Australia, China, Indonesia, India, and Philippines.
- An analysis of the Indian mining industry includes a market profile, industry statistics, market value and volume analysis, an industry segmentation and a regional market share analysis.
- Analysis of the regulatory framework governing the mining industry in India. We also look at the tax regime in India, along with the legal framework as well as other regulations impacting the metals and mining industry in India.
- An analysis of the various commodity markets in India. Markets analyzed include the market for bauxite, coal, iron ore, lead, uranium and zinc. For each commodity, we analyze production statistics, new projects, existing projects, major producers, and the industry profile.
- Competition in the industry is analyzed through competitive landscape, the strategic importance of the sector, and an analysis of the major companies.
- Major players are analyzed through a company overview, analysis of the major business segments, and a SWOT analysis.
Contents
1. EXECUTIVE SUMMARY2. INDUSTRY DEFINITION
3. GLOBAL MINING INDUSTRY
4. ASIA PACIFIC MINING INDUSTRY
4.1 Australia
4.2 China
4.3 Indonesia
4.4 India
4.5 Philippines
5. INDIA MINING INDUSTRY
5.1 Market Profile
5.2 Industry Statistics
5.3 Market Value & Volume Analysis
5.4 Industry Segmentation
5.5 Regional Market Share
6. INDUSTRY TRENDS
7. REGULATORY FRAMEWORK
7.1 Industry Regulations
7.2 Legal Regulations
7.3 FDI Policy
7.4 Intellectual Property Laws
7.5 Foreign Trade Policy
7.6 Property Laws
7.7 Corruption and Red Tape
7.8 Tax Regime
8. BAUXITE MARKET IN INDIA
9. COAL MARKET IN INDIA
10. IRON ORE MARKET IN INDIA
11. URANIUM MARKET IN INDIA
12. LEAD MARKET IN INDIA
13. ZINC MARKET IN INDIA
14. COMPETITION IN THE INDUSTRY
14.1 Competitive Landscape
14.2 Strategic Importance of the Sector
14.3 Major Companies
15. MAJOR INDUSTRY PLAYERS
15.1 Coal India Limited
15.1.1 Company Overview
15.1.2 Business Segments
15.1.3 SWOT Analysis
15.2 Tata Steel Limited
15.2.1 Company Overview
15.2.2 Business Segments
15.2.3 SWOT Analysis
15.3 Vedanta Resources
15.3.1 Company Overview
15.3.2 Business Segments
15.3.3 SWOT Analysis
15.4 Hindalco Industries Limited
15.5 Hindustan Copper Limited
15.6 National Mineral Development Corporation
15. INDUSTRY FORECAST
16. GLOSSARY Skip to top