Prospecting means: search for mineral deposits, especially by drilling and excavation.geochemical surveys A survey involving the chemical analysis of systematically collected samples of rock, soil.
RP- Recognised permit.
Mining sector in India
BY NISHA CHAUHAN.
WHAT IS MINING?
Mining is the extraction of valuable minerals or other
geological materials from the earth.
There are various typea of Ores recovered by mining
include metals, coal , limestone
Mining is required to obtain any material that cannot be
grown through agricultural processes, or created
artificially in a laboratory or factory.
Mining in a wider sense includes extraction of any nonrenewable resource such as petroleum, natural gas, or even
INDIAN MINING SECTOR
India is endowed with significant mineral resources. India
produces 89 minerals.
In India, 80% of mining is in coal and the balance 20% is in
various metals and other raw materials such as gold, copper.
India ranks 3rd in production of coal & lignite production.
11 the in crude steel in the World.
Over 1.1 million people are employed in the Indian
mining industry. With over 2,326 private and 292 public
operating mines in the country, minerals form 16 percent of
WHO IS THE OWNER OF
MINERALS IN INDIA?
The State (provincial) Governments are the owners
of minerals located within the boundary of the State
concerned. The Central Government is the owner of the
minerals underlying the ocean within the territorial
What is a Recognized Permit?
It Is granted for preliminary prospecting of a mineral
through regional , aerial, geophysical or geochemical
surveys and geological mapping.
WHAT IS THE PERIOD AND TENURE FOR
WHICH A ‘RECONNAISSANCE PERMIT’ IS
A RP for any mineral or prescribed group of associated
minerals is granted for 3 years and for a maximum area
of 5,000 square kilometer.
At the end of 3 years, area held under a RP should be
reduced to 25 square kilometer.
A RP cannot be renewed.
In a State (Province), a person can be granted a
maximum area of 10,000 square kilometer in 2 or more
WHO GRANTS MINERAL CONCESSIONS
AND WHO CAN GET CONCESSION ?
The State Governments grant the mineral
concessions for all the minerals located within
the boundary of the State, under provisions of the
Mines and Minerals (Development and Regulation)
Act, 1957 and Mineral Concession Rules, 1960.
Any ‘person’ who is either an Indian national or a
company registered in India Companies Act, 1956 is
eligible to obtain mineral concessions. While in case
of an individual, the ‘person’ should be a citizen of
India, in case of a firm or other association of
individuals, all members of the firm or members of
the association should be citizens of India
Post Closure Phase
• Once construction is complete and systems have been
tested, mineral production can begin
• It involves recovering, processing and transporting the
minerals this process last depending on the size and type of
the mineral deposit.
• Upon closing operations, measures must be taken to address
environmental impacts that include water, vegetation and
• a mine has a finite life span, and each site has a mine closure.
• includes dismantling the facilities and returning the mine
site to a safe, stable and reclaimed state.
• Mine closure takes, on average, one to five years.
• It Involve land issues
• bring an influx of a few job.
Exploration • some economic development through the purchase of local
goods and services.
• This phase helps mining companies determine if and how
a project can be safe, environmentally sound
• socially responsible, while meeting or exceeding
• This may take two years or more and involves building
roads, processing facilities
Constructio • environmental management systems, employee
housing and other facilities
CONTRIBUTION TO THE PUBLIC SECTOR
The public sector contributes over 85 percent of the
total value of mineral production.
Public sector enterprises like the National Mineral
Development Corporation, Kudremukh Iron Ore
company, Steel Authority of India Limited and Orissa
Mining Corporation dominate the iron ore sector.
Coal Mining is predominantly a public sector activity - Coal
India Ltd. (CIL) accounts for 85% of total coal
WHAT IS THE POLICY FOR FOREIGN
DIRECT INVESTMENT IN THE MINING
The entrepreneurs desirous of bringing in foreign
direct investment in the non-fuel and non-atomic
mineral mining sector are eligible to bring in the
foreign equity just by informing the Reserve Bank of
India, termed as ‘ automatic approval’.
Automatic approval of foreign direct investment up to
100% is permissible for exploration and exploitation of
all non-fuel and non-atomic minerals.
A SWOT ANALYSIS OF INDIAN
The government offers a wide range of concessions
to investors in India, engaged in mining activity.
Mining in specified backward districts is eligible for a
complete tax holiday for a period of 5 years from
commencement of production and a 30 percent tax
holiday for 5 years thereafter.
Environment protection equipment, pollution control
equipment, energy saving equipment and certain other
equipment eligible for 100 percent depreciation.
2. Labors easily available
3. Low labor and conversion costs.
4. Large quantity of high quality reserves.
5. Strategic location .
Poor infrastructure facilities
2. Mining technology is outdated
3. Low innovation capabilities
4. Labor force is highly un-skilled and inexperience.
High rate of accidents.
5. Lack of R&D programs and training and
India has an estimated 85 billion tones of mineral
reserves remaining to be exploited.
Potential areas for exploration ventures include
gold, diamond, copper, lead, tin, silver, platinum group of
The main opportunities in the mining sector (excluding
coal and industrial minerals) are in the development and
production of surplus commodities such as iron ore and
bauxite, mica, potash, few ores, mining of small gold
Mining companies and equipment suppliers are under the
constant threat of being taken over by foreign companies.
2. Politicians undervalue the industry's contributions to the
3. Stricter environment rules restricting mining activities.
FACTORS AFFECTING MINING
Geological availability - a successful mine or quarry must
be based on a deposit that has value.
Stable ownership regime - Mines require substantial
investment. Investors will need to be assured that their
investment won't be confiscated by governments or others
who shared none of the risks.
Exploration - the geologic concentration needs to be found.
Transport - some bulk materials need to be close to
markets or at least to low cost transportation. For
example iron ore deposits need to be within a few
hundred miles of steel mills or ocean transportation.
FACTORS AFFECTING MINING
Mining methods - some methods are much cheaper than
Environmental factors - almost all countries require an
analysis of environmental impacts before mining can start.
Management skills - some people can manage mines better
National Mineral Development Corporation
Corporate office – Hyderabad, Andhra Pradesh.
A government of India organization and comes under
the Ministry of steel, it is the largest iron ore producer
in the country.
2. Hindalco Industries
Corporate office – Mumbai, Maharashtra .
Hindalco Industries is a company of Aditya Birla and
one among the top 10 mining companies in India.
3. Gujarat Mineral Development Corporation
Corporate office – Ahmadabad, Gujarat .
Gujarat mineral development corporation limited is a
leading mining company in India The organization is
engaged in production of lignite, bauxite.
4. Vedanta Resource
Corporate office – London, UK .
Among the top mining companies in India, Vedanta
resource is a metal and mining organization . The company
is operating in many countries including India
IMPACT OF MINING
The environmental impact of mining includes
erosion, formation of sinkholes, loss of
biodiversity, and contamination of
soil, groundwater and surface water by chemicals
from mining processes.
Besides creating environmental damage, the
contamination resulting from leakage of
chemicals also affect the health of the local
mining may cause destruction and disturbance of
ecosystems and habitats.
In urbanised environments mining may produce
MINING SECTOR IS CYCLIC
The cyclical nature of the mining industry poses a unique
challenge for education and training institutions. Changing
market conditions not only affect enrolment rates but also
alter requirements for new training.
Cyclical downturns in the mining, oil and natural gas
industries, or in the oilfield and mining services
businesses, may have a
material adverse effect on the financial condition or
results of operations.
The total mineral potential area in India covers 5.75
lakh sq. km., of which an area of only 75,000 sq. km.
has been explored in detail so far.
According to industry estimates, the mining industry
turnover is projected at $30 billion by 2012. The future
demand for mining products will be driven by a
growing Indian economy, resurging industrial
production & rapid infrastructure development.