"Most productivity increases in the past century have been achieved through the ability to process lower grade ores through more efficientmineral processing and the use of ever larger scale equipment.“Mine production has undergone important changes during the 20th century with a shift from underground to open pit mining techniques. Early in the century, underground mining dominated in developed countries, and as mining evolved in emerging economies, open-pit mining became more common ( see Below Figure ).
Manufacturing the future: The next era of global growth and innovation, a major report from the McKinsey Global Institute, presents a clear view of how manufacturing contributes to the global economy today and how it will probably evolve over the coming decade. Our findings include the following points:Manufacturing’s role is changing. The way it contributes to the economy shifts as nations mature: in today’s advanced economies, manufacturing promotes innovation, productivity, and trade more than growth and employment. In these countries, manufacturing also has begun to consume more services and to rely more heavily on them to operate. Manufacturing is not monolithic. It is a diverse sector with five distinct groups of industries, each with specific drivers of success.Manufacturing is entering a dynamic new phase. As a new global consuming class emerges in developing nations, and innovations spark additional demand, global manufacturers will have substantial new opportunities—but in a much more uncertain environment.But the manufacturing sector’s relative size in an economy varies with its stage of development. We find that when economies industrialize, manufacturing employment and output both rise rapidly, but once manufacturing’s share of GDP peaks—at 20 to 35 percent of GDP—it falls in an inverted U pattern, along with its share of employment. The reason is that as wages rise, consumers have more money to spend on services, and that sector’s growth accelerates, making it more important than manufacturing as a source of growth and employment.The sector is also evolving in ways that make the traditional view—that manufacturing and services are completely separate and fundamentally different sectors—outdated. Service inputs (everything from logistics to advertising) make up an increasing amount of manufacturing activity. In the United States, every dollar of manufacturing output requires 19 cents of services. And in some manufacturing industries, more than half of all employees work in service roles, such as R&D engineers and office-support staff.As advanced economies recover from the Great Recession, hiring in manufacturing may accelerate, and some nations may even raise net exports. Manufacturers will continue to hire workers, both in production and nonproduction roles (such as design and after-sales service). But in the long run, manufacturing’s share of employment will remain under pressure as a result of ongoing productivity improvements, faster growth in services, and the force of global competition, which pushes advanced economies to specialize in activities requiring more skill
India’s manufacturing segment is a crucial cog in the wheel of economic progress; the sector’s contribution to the gross domestic product (GDP) being 16 per cent. With the passage of time post 1990-economic liberalisation era, India has well realised the importance of manufacturing for the overall industrial development. In this wake, the Government has also been very pro-active, especially during the last decade.The recent initiative counts back to the Manufacturing Policy that was announced in 2010. It was followed by the introduction of a systematic Manufacturing Plan for the country, designed with extensive involvement of industry. Now India Inc and the Government are focussing their energies on implementation of this Plan.
Role of Business Research in Mining & Metal industry
Role of Business Research in
Mining & Metal Manufacturing
By- Vipul Saxena
Business Research Quotes
“Research is to see what everybody else has seen, and to think what nobody else
“Research is that it tells you what people were thinking about yesterday, not
tomorrow. It's like driving a car using a rear-view mirror.”
“To steal ideas from one person is plagiarism, to steal ideas from many is
“Business Research is all about finding out answer to questions that deal with
their local or national or international market for product & services.”
Business Research Quotes
Business research can give you new up to date powerful information that could help
you break into a market or take a market to a higher level.
Business Research is a process of planning ,acquiring, analyzing and disseminating
relevant data, information and insight to decision makers in a way that mobilize to
organization to take a appropriate action that in turn , maximize business
Business Research is creating new knowledge.
Business Research’s Goal is to inspire senior management to move to the front end of
Objectives of Business Research
To make sound business decisions, we need accurate, up-to-date insights about our
Business , customers, markets and competitors.
• Short term and long term infrastructure
• Approximate Volume Growth
• Approximate increase in installed capacities
• Approximate Profitability
• Possibility of Transition to Global Market
• Production capacity & Lead Time
• Transit Time
• Currency fluctuation
Market & competitors Centric;
• Market size & share
• Profitability ratios
• Growth Prospective
• Economic conditions – Policies etc
• Technological breakthroughs
Changes in any of above could enhance or reduce Business opportunities.
Global Mining Production–Metal wise Share
Total production value : Only 20 Countries in the world accounted is for 417,867 US$ million (88% of total
world production value)
Australia being the 1st with production value of 71,955 US$ million
(15.6% of world total production value)
India is ranked 7th with production value of 26,042 US$ million
(5.6% of world total production value)
The scale of production every year :
Iron ore , Gold & copper is accounted for 68% of total
metal mining Production
Silver, Potash, Nickel,
Phosphate, Zinc, PGM
in millions Tones
The total production value of the world mining industry has Increased from US$ 112,211 Million in 2000 to
US$ 474,848 Million by 2010
Updates in Mining Industry
The trends of Mine production moving upward to the emerging economies will
The two major land Africa and the Arctic including Siberia, Alaska, northern
Canada, Greenland and the Nordic countries.
In addition to this, there are opportunities for mineral extraction at the bottom of
the deep seas.
The first mining permits have recently been given in Papua New Guinea for mining
at a water depth of 1,500 meters.
Looking ahead, it is possible to get an idea of where mine production in the next
decade will be located by analyzing investment flows.
Mining & Metal Manufacturing industry in INDIA
Minral Prodcution trend in India
State wise Mineral production
India ( % )
The Mining & Mineral industry constitutes an important segment of the Indian economy. The GDP
contribution of the Mining & Manufacturing industry varies from 2 % to 5%.
West Bengal , 3.89 other State, 5.79
Size of the industry
Maharashtra , 4.47
India is the seventh largest country which extensively spreads over an area of 3.29 million square
Mining Products in India
Rajasthan , 12.03
India produces as many as 89 minerals, which includes 4 fuel, 10 metallic, 48 nonmetallic, 3 atomic and
Odisha, minerals(including building and other materials)
24 minor 5.63
Andhra Pradesh being the leading state in term of Mining Production with contribution of 18.76% of
total productionAtomic by Rajasthan (12.03%) and Gujarat (11.26%).
Gujarat , 11.26
Indian Mining Industry is classified under the category of "Red" for pollution which represents highly
Tamil Nadu , 9.04
Indian Mining Industry provides job opportunities to around 0.7 million individuals.
Mining & Metal industry in INDIA contd..
India's contribution in the mineral production in world
Indian Mining Industry ranks 2nd in barites, and talc/steatite/pyrophillite;
India ranks 3rd in coal & lignite ,chromite and Zinc;
India ranks 4th in iron ore and kyanite/sillimanite & steel (crude);
India ranks 5th in Manganese ore
India ranks 6th in Bauxite and aluminum
India ranks 10th in Copper
India Degree of self sufficiency in Principal Minerals (Demand & Supply)
Global Trends of Contribution of Manufacturing
Sector in GDP of Large Developing Economies
Manufacturing’s role is changing : in today’s advanced economies, manufacturing
promotes innovation, productivity, and trade more than growth and employment.
Manufacturing is not monolithic :It is a diverse sector with five distinct groups of
industries, each with specific drivers of success.
Contribution in GDP : Manufacturing Share in China GDP is accounts for
approximately 33% , Indian being at 10th rank with contribution of 13% from
Scenario 1--Segment wise Market Share in
Scenario 2(1)—Geographical concentration of
Auto, Chemical, Pharma etc Segment in Manufacturing
Scenario 2(2)—Geographical concentration of Regional
processing (Food, Plastic etc) Segment in Manufacturing Sector
Scenario 2(3)—Geographical concentration of
Energy, Rubber, Petroleum etc Segment in
Scenario 2(4)—Geographical concentration of
R & D, Semi-conductors etc Segment in
Scenario 2(5)—Geographical concentration of
Textile, Garment, Furniture etc Segment in
Broad Outlook of Manufacturing Sector in India
Manufacturing enterprises are operating in the country in a large variety of sectors —
they are competing with one another and with enterprises abroad.
The first category is the sector of strategic alliance like industries in defense
equipment, capital goods and ship building etc.
The second category is for basic inputs like steel, cement, fertilizers, exploration and
development of minerals, and these depend on availability of high quality raw material.
The third category sector for depth and value addition are knowledge and technology-based
industries with high growth potential. This comprises
automobiles, drug, pharmaceutical, petrochemical, electronics, chemical, paper and medical
The fourth category sector is for employment generation like textile,
food processing, leather, gems and jewellery.
Mining industry contribution in Indian GDP
Mining sector Contribution in Indian GDP
Manufacturing sector contribution in Indian GDP (%)
Manufacturing sector contribution in Indian GDP (%)
Contribution of Mining & Manufacturing industry
in Indian GDP
Mining & Manufacturing Industry Contribution in
contribution in Indian 10.28
contribution in Indian 3.69
he top 10 business risTopks for Mining and Metals
Top 10 Business Challenges for Mining and
1. Resource nationalism
2. Skills shortage
3. Infrastructure access
4. Cost inflation
5. Capital project execution
6. Maintaining a social license to operate
7. Price and currency volatility
8. Capital management and access
9. Sharing the benefits
10. Fraud and corruption
Human Resources challenges for Mining & Manufacturing