Indian Mineral Sector To Emerge Stronger

President, Federation of Indian Mineral Industries

Minerals and mineral-based products are an integral part of the economic and social fabric of modern society. Minerals are basic inputs for the production of metals, cement, building/construction materials, ceramics, fertilisers, chemicals, and a wide variety of other vital commodities. Energy minerals such as coal, petroleum and natural gas are equally essential for the sustenance of life as we know it.

The Indian minerals industry has played an unassuming yet indispensable role in facilitating the country's strong industrial growth in its five decades of independence. As a result India is a leading global producer of a number of minerals and mineral based products.

 

India has a long and rich heritage of exploration and exploitation of minerals dating as far back as 1260 B.C. The Indian Precambrian Shield, like that of Canada and Australia, is richly endowed with a wide variety of minerals and has vast geological potential. Aside from the minerals mentioned earlier there are also very large reserves of dolomite,mica, zircon, granite and marble. The country also has abundant reserves of zinc and wollastonite, as well as resources of gold and platinum groupmetals. There are over 20,000 knownmineral deposits and 84 minerals being mined with an aggregate annual production of about500 million tonnes.

Indian mineral ores and products, besides supplying domestic industry, are also becoming increasingly significant export earners. Exports of these commodities totaled approximately Rs. 3,444 crores in 1995-96. The major contributors were iron ore (50%), granite (17.8%), alumina (9.5%), chromite (4.7%), coal (2.8%), marble (2.7%) and ilmenite (2.1%). As a result of its abundant supply of comparatively cheap, highly skilled craftsmen, India has established itself as a global leader in the processing of precious and semi-precious stones. As a result Indian exports (almost entirely re-exports) of precious and semi-precious stones were in excess of Rs.15,800 crores in 1995-96.

The Indian mining sector is characterised by tremendous diversity in unit size and technology used. Contrary to its stereotypical image as a destroyer of nature, the mining industry is one of the most proactive industries in the protection and reahbilitation of the environment. The mining industry is highly conscious of its responsibility, not only to preserve forests, but also to plant and nurture new forest growth in mined out and surrounding areas. According to the Indian Bureau of Mines, between the years 1990 and 1995, in addition to fulfilling their statutory compensatory afforestation obligations, the nations metaliferrous mines planted almost 40 million trees over an area of 14,000 hectares. Mining areas in most parts of the country present a picture of forest growth having local species and greenery all around. Mining is also a unique industry from the environmental angle in that it is a temporary use of land. There is now growing awareness in the industry that following exhaustion of the deposit,

the site should be rehabilitated and reclaimed, which will leave the mining sites in a better condition than at the start of the mining operations. Minerals are generally available in remote areas which have little or no infrastructure. Consequently mining activities are often the first investments of any kind in the economic development of these areas. This ultimately results in the attraction of further investment in ancillary industries which stimulates considerable development of economic and social infrastructure. In many of these backward and tribal areas mining and ancillary industries are the only source of employment and income generation for the indigenous peoples. It is estimated that the average daily employment in the non-fuel mining industry in the range of one million people, and around five times that number in secondary and tertiary industries.

While concerns about depletion of mineral resources are natural it is important to understand that with the requisite financial and technological commitment to exploration, levels of known mineral reserves can be increased to keep pace with and even exceed exploitation. India has favourable geology, terrain and a large mineral data-base. Out of a total land area of 3.28 million sq. km approximately 2.42 million sq. km comprises hard rock while the rest lies covered under a thick alluvial cover. In view of the geological possibilities, about 20-25 % of the hard rock areas hold potential for solid non-fuel and fuel mineral resources. Presently about 8,000 sq. km is under mineral lease which forms about 50% of the total area of the known mineral prospects and deposits.

While large portions of the Indian subcontinent have already been covered by prospecting activities it is significant to note that most of the successful mineral exploration programmes conducted to date have been through conventional techniques and/or focused around historical mineral bearing areas. It is therefore very likely that the use of more advanced geochemical, geophysical and aeromagnetic exploration techniques could locate potential world class concealed or sub-surface deposits, which were previously undetected.

While India has performed fairly well in the field of conventional mineral exploration we have lagged behind in developing exploitation operations of our resources to optimum capacity. As a result, a number of low grade deposits are currently being considered commercially unviable even though many of them are exploitable as per global standards. Hence the induction of modern technology and required capital in the mining sector through private sector participation, both domestic and foreign, can reap rich dividends within a short time. This participation could either be through independent investment or through the vehicle of joint ventures.The Indian minerals indurstry is now standing on the threshhold of a new era in its develpoment. with the Govt. actively encouraging pvt. investment in this sector like never before. The need of the hour is liberal doses of capital and the induction of state-of-the-art technologies in exploration, mining, processing, metallurgy, and other mining services etc.

By S.V. Salgaocar

President, Federation of Indian Mineral Industries

Minerals and mineral-based products are an integral part of the economic and social fabric of modern society. Minerals are basic inputs for the production of metals, cement, building/construction materials, ceramics, fertilisers, chemicals, and a wide variety of other vital commodities. Energy minerals such as coal, petroleum and natural gas are equally essential for the sustenance of life as we know it.

The Indian minerals industry has played an unassuming yet indispensable role in facilitating the country's strong industrial growth in its five decades of independence. As a result India is a leading global producer of a number of minerals and mineral based products.

India has a long and rich heritage of exploration and exploitation of minerals dating as far back as 1260 B.C. The Indian Precambrian Shield, like that of Canada and Australia, is richly endowed with a wide variety of minerals and has vast geological potential. Aside from the minerals mentioned earlier there are also very large reserves of dolomite,mica, zircon, granite and marble. The country also has abundant reserves of zinc and wollastonite, as well as resources of gold and platinum groupmetals. There are over 20,000 knownmineral deposits and 84 minerals being mined with an aggregate annual production of about500 million tonnes.

Indian mineral ores and products, besides supplying domestic industry, are also becoming increasingly significant export earners. Exports of these commodities totaled approximately Rs. 3,444 crores in 1995-96. The major contributors were iron ore (50%), granite (17.8%), alumina (9.5%), chromite (4.7%), coal (2.8%), marble (2.7%) and ilmenite (2.1%). As a result of its abundant supply of comparatively cheap, highly skilled craftsmen, India has established itself as a global leader in the processing of precious and semi-precious stones. As a result Indian exports (almost entirely re-exports) of precious and semi-precious stones were in excess of Rs.15,800 crores in 1995-96.

The Indian mining sector is characterised by tremendous diversity in unit size and technology used. Contrary to its stereotypical image as a destroyer of nature, the mining industry is one of the most proactive industries in the protection and reahbilitation of the environment. The mining industry is highly conscious of its responsibility, not only to preserve forests, but also to plant and nurture new forest growth in mined out and surrounding areas. According to the Indian Bureau of Mines, between the years 1990 and 1995, in addition to fulfilling their statutory compensatory afforestation obligations, the nations metaliferrous mines planted almost 40 million trees over an area of 14,000 hectares. Mining areas in most parts of the country present a picture of forest growth having local species and greenery all around. Mining is also a unique industry from the environmental angle in that it is a temporary use of land. There is now growing awareness in the industry that following exhaustion of the deposit,

the site should be rehabilitated and reclaimed, which will leave the mining sites in a better condition than at the start of the mining operations. Minerals are generally available in remote areas which have little or no infrastructure. Consequently mining activities are often the first investments of any kind in the economic development of these areas. This ultimately results in the attraction of further investment in ancillary industries which stimulates considerable development of economic and social infrastructure. In many of these backward and tribal areas mining and ancillary industries are the only source of employment and income generation for the indigenous peoples. It is estimated that the average daily employment in the non-fuel mining industry in the range of one million people, and around five times that number in secondary and tertiary industries.

While concerns about depletion of mineral resources are natural it is important to understand that with the requisite financial and technological commitment to exploration, levels of known mineral reserves can be increased to keep pace with and even exceed exploitation. India has favourable geology, terrain and a large mineral data-base. Out of a total land area of 3.28 million sq. km approximately 2.42 million sq. km comprises hard rock while the rest lies covered under a thick alluvial cover. In view of the geological possibilities, about 20-25 % of the hard rock areas hold potential for solid non-fuel and fuel mineral resources. Presently about 8,000 sq. km is under mineral lease which forms about 50% of the total area of the known mineral prospects and deposits.

While large portions of the Indian subcontinent have already been covered by prospecting activities it is significant to note that most of the successful mineral exploration programmes conducted to date have been through conventional techniques and/or focused around historical mineral bearing areas. It is therefore very likely that the use of more advanced geochemical, geophysical and aeromagnetic exploration techniques could locate potential world class concealed or sub-surface deposits, which were previously undetected.

While India has performed fairly well in the field of conventional mineral exploration we have lagged behind in developing exploitation operations of our resources to optimum capacity. As a result, a number of low grade deposits are currently being considered commercially unviable even though many of them are exploitable as per global standards. Hence the induction of modern technology and required capital in the mining sector through private sector participation, both domestic and foreign, can reap rich dividends within a short time. This participation could either be through independent investment or through the vehicle of joint ventures.The Indian minerals indurstry is now standing on the threshhold of a new era in its develpoment. with the Govt. actively encouraging pvt. investment in this sector like never before. The need of the hour is liberal doses of capital and the induction of state-of-the-art technologies in exploration, mining, processing, metallurgy, and other mining services etc.

The Federation of Indian Mineral Industries (FIMI) is an all-India body representing mineral industries and is the apex body representing the non-fuel mining sector of the nation. FIMI was formed in 1965 with the objective of advancing and promoting the commercial and economic interests of companies dealing in minerals and mineral-based products. The Federation, which came into existence with a small membership of 40, now has around 350 direct members, and represents, through its association members, over 1000 companies. FIMI envelopes in its fold public, private and joint-sector companies engaged in mining (including the dimension stone industry), mineral processing, metal making, cement and other mineral-based industries, including refractories and ceramics.