Mining Industry In India
Mining industry deals with the process or business regarding extraction of ore or minerals from mines. Mining industry business is basically concerned with the trading of mines. The act of extracting is normally done by the government authority, individual entrepreneurs or maybe by small business owners. Government agencies, multinational companies or any public sector company generally take the responsibility of extracting mines as the entire process of extraction requires a large amount of capital. India holds a fair advantage in cost of production and conversion costs in steel and alumina. Its strategic location enables convenient exports to develop as well as the fast-developing Asian markets.
India produces 95 minerals– 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals (including building and other minerals).
The rise in infrastructure development and automotive production are driving growth in the sector. Power and cement industries are also aiding growth in the metals and mining sector. Demand for iron and steel is set to continue, given the strong growth expectations for the residential and commercial building industry.
Market Size
India is the 3rd largest producer of coal. Coal production stood at 676.51 million tonnes in FY18. India has the 5th largest estimated coal reserves in the world, standing at 308.802 billion tonnes in FY16.
India ranks 4th in terms of iron ore production globally. In FY18, production of iron ore stood at 210 million tonnes. India has around 8 per cent of the world’s deposits of iron ore.
India stood as the third largest crude steel producer with an output of 101.4 million tonnes in 2017. Crude steel production in the country rose to 102.34 million tonnes in FY18.
According to the Ministry of Mines, India has the 7th largest bauxite reserves- around 2,908.85 million tonnes in FY17. Aluminium production stood at 1.60 million metric tonnes during Apr-Sept 2017 and is forecasted to grow to 3.33 million tonnes in FY20.
Employment: With respect to employment, there are a huge number of persons who are directly or indirectly engaged with the mining industry. The persons involved directly with this mining industry are workers who are engaged in activities like digging, extracting etc. The other directly involved workers are engineers, lab technicians, geologists, environmental specialists etc. and the personnel who are indirectly linked with this mining industry are accountants, lawyers, sales representatives, personal relation officers etc.
Machinery: Mining industry is intemperately dependent on heavy machines, which are needed to break or remove rocks, drilling, for carrying out explosions, digging, etc. Besides all these, for conveyance purpose, the specially designed wagon is used which runs on tracks in a mine to transport mineworkers, minerals and wastes.
Safety: One of the most important events of the mining industry is the safety issue, because poor ventilation, some poisonous gases and toxicants can severely harm miners health. These can also cause trauma or even death to the miners. The common ailments are silicosis, pneumonia, lung diseases etc. The condition is comparatively safer now, because of the advantages of modern technologies. The other danger of this mining industry is the presence of methane gas, which can cause explosion inside the mines.
Investments/ Developments:
- Cumulative FDI inflows into the metals and mining sector between April 2000 and June 2018 stood at US$ 14.33 billion as per Department of Industrial Policy and Promotion (DIPP).
- Under the Mines and Minerals (Development and Regulation) Act of 1957, FDI up to 100% under Automatic route is allowed for the mining and exploration of metal and non- metal ores including diamond, gold, silver and precious ores, while FDI up to 100% under Government route is allowed in for mining and mineral separation of titanium bearing minerals and its ores.
- The Government of India is taking steps boost the country's domestic steel sector and raise its capacity to 300 million tonnes (MT) by 2030-31.
Government Initiatives:
- FDI caps in the mining and exploration of metal and non-metal ores have been increased to 100 per cent under the automatic route.
- In July 2018, Union Minister of Coal, Railways, Finance & Corporate Affairs launched a mobile application ‘Khan Prahari’ and Coal Mine Surveillance & Management System (CMSMS) developed by Central Mine Planning and Design Institute (CMPDI).
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