'Good Scope For Export Of Industrial Minerals'

Business Standard: What are the types of minerals produced in India? What are their uses and current position in the domestic market ?

N Shah: The country is rich in minerals. These are divided mainly into two types: metallic minerals and industrial minerals.

Metallic minerals consist of iron ore and manganese ore, whereas industrial minerals contain bentonite, china clay, barities, calcite, silica, talc powder etc.

Of these, bentonite occupies a prominent place, particularly in the export market. Again bentonite is of two kinds--sodium bentonite which is in natural form, and calcium bentonite which is produced through various artificial methods. Sodium bentonite deposits are found in large quantities at Kutch in Gujarat.

BS: What are the qualities of bentonite ? Where is it found ? What are its uses ?

NS: Bentonite is a clay mineral consisting predominantly of mineral montmoorillonite family, mixed with minerals like nontronite and beidellite. There are three layered aluminosilicate with molecules of water between layers. For natural sodium bentonite, exchangeable sodium cations are dominant rather than other cations like calcium, magnesium etc.

In calcium bentonite, calcium cations are dominant. In fact, in all types of bentonite available in the world, only the natural sodium variety has the high swelling and gelling properties along with viscosity. Also, the liquid limit is also on the higher side and hence its usefulness is enhanced to a great extent.

In Kutch, bentonite occurrence is in scattered and disconnected pockets of different sizes. Due to the natural characteristic of these particular volcanic ashes, the chemical composition of this bentonite is somewhat different from other parts of the world. Due to very fine particles, this bentonite shows extraordinary swelling capacity and bonding powers.

Most of these deposits are of natural sodium bentonite. But Ashapura Minechem Ltd could also locate some highly colloidal calcium bentonite which showed very high base exchange capacity. And when activated with acid, it gives one of the best bleaching clay comparable to the best-known brands of the world. The colour of most of these deposits is darker than that available in other parts of the world.

This may be due to the higher iron content in the natural magma.

The formation is compact and the resulting bentonite excavated from this area are slightly harder to grind as compared with similar deposits of Europe and America.

Natural sodium bentonite deposits are found in the US, Japan, China and Argentina. In ancient times, bentonite was mainly used as a cleaning agent or detergent for cotton and woolen clothes.

It was also used for the manufacture of fine potteries, roofing tiles etc. In the recent past, with drilling for oil and gas starting in western of the country, the requirement of bentonite become predominant.

After independence, engineering industries developed in various parts of India.

As a result, demand for bentonite as a bonding clay increased.

The survey conducted by National Metallurgical Institute, Jamshedpur in 1968, says that though bentonite is found in various parts of the country, including Kashmir, Bihar, only bentonite from the Kutch/Saurashtra region can be developed for various uses and exports.

BS: What is India's share in world market for industrial minerals?

NS: At present, the country's share of industrial minerals in the international market is very negligible.

However, if the government gives proper attention to the development of industrial minerals and provides incentives and help to this industry, India can export industrial minerals worth more than Rs 1,000 crore during next five years, as against the present level of below Rs 300 crore. The exports of minerals mainly include bentonite, barytes, feledspar etc.

BS: Is the country's bentonite competitive in the world market?

NS: Yes, Indian bentonite is quite competitive in the international market.

The best advantage we get is of its transport cost.

The geographic location of Kutch is such that bentonite produced here can be easily transported by the sea route to all the parts of the world. As Kutch is in the westernmost part of the country, the mineral requirement of all the parts of the country is met through railway transport, which is comparatively expensive.

Also, transportation by truck is also convenient and cheaper when the material is to be handled within a radious of say about 800 kilometers.

For instance, transportation of one tonne of bentonite by rail route from Bhuj (Kutch) to Calcutta may cost about Rs 1200 (about $33/34), while the transport cost of the same quantity by sea route from Kandla or Mandvi (nereby ports in Kutch) to Mangalore will cost about Rs 650 to 700 (about $22/23).

The freight charges from Kandla or Mandvi to the Middle East or the Far East are roughly about $20/25 a tonne.

And the transportation up to South America or North America in bigger vessels costs nearly $30/35 a tonne. Another reason is the dry weather of the producing zone, which provides about 300 days per year for drying bentonite in natural sun light. This avoids the high capital cost of mechanical drying system.

BS: What is the state government's policy vis-a-vis the minerals industry ?

NS: The delay tactics by the state government are the biggest impediments in the export of industrial minerals.

The processing of mining lease applications sometimes take years together.

There are some cases when applications were made by the father, and the sanction was not even granted until his son joined the business. Such type of hurdle is faced not in a particular state, but in most of the states in the country.

BS: What is your opinion about the present port facilities available for the shipments of minerals in the country ?

NS: At present, the port facilities look adequate because of the absence of exports of wheat and rice from the Indian ports.

But if we have to develop total exports of the country, especially industrial minerals, the loading and unloading facilities require modification and additions by three-fold than the present situation.

BS: What are the emerging trends in the international minerals market?

NS: The coming days will see increased competition in the international minerals market, especially with new entrants like Vietnam and China.

But I feel that India has very large minerals deposits waiting to be tapped.

New entrepreneurs should come forward to develop this industry. I see an annual growth of 10 per cent for this industry.