Market Research Report : Mining Industry in India 2011


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The total mineral production in India has been growing strongly over the last few years and was valued at INR 2.01 tr in 2010-11. In the same year, mining industry’s contribution accounted for 2.26% of the country’s GDP. Rising demand from various sectors and high scope for mining exploration will provide strong growth avenues to the mining industry. Increasing role of the government to support mining activities in India and growing investment potential of the sector will also drive the industry.

The report begins with the market overview section that gives an insight into the global mining scenario and the total world exploration budget. The countrywise and sectorwise share of the global mining exploration budget is also included. The overview of the mining industry in India along with the growth in mineral production and share of minerals is provided. The share of mineral production, both statewise and sectorwise follows next. It moves on to provide insights into the mining scenario in India including the number of mines, along with the economic impact of mining and its contribution to the total GDP in India. The status of mineral reserves in India and the quality of minerals in India is also included in this section. Additionally, mineral exports and imports of India have also been covered, both in terms of value and volume. Imports of minerals have grown rapidly in the recent past and are much higher than mineral exports.

This is followed by a section on the mining scenario in India which is split into two parts, the first part consisting of the mining and metal scenario beginning with a geographical distribution of selected minerals in different parts of the country. The section proceeds with an overview, various exploration activities and future outlook of minerals such as bauxite, coal, copper, gold, iron ore, mica, petroleum and natural gas, silver, and zinc. The production in terms of value and volume, along with the exports and imports of each mineral is also provided in this section. The second part of the section gives a brief outlook of the various minerals and their performance indicators across the states of Andhra Pradesh, Chattisgarh, Gujarat, Jharkhand, Karnataka, Maharashtra, Orissa and Rajasthan.

An analysis of the drivers and challenges explains the factors leading to the growth of the industry including abundant mineral reserves, ample exploration opportunities which can be tapped by players, increasing investment potential, growing demand from other sectors and government concessions. The key challenges identified are lack of mining infrastructure, lack of support to exploration activities and environmental degradation.

The government regulations have been highlighted and include legislation framework, Ministry of Mines, National Mineral Policy 2008, mineral concessions and FDI policy. Rise in illegal mining activities have been cover

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Market Research Report : Mining Industry in India 2011

  1. 1. Insert Cover Image using Slide Master View Do not distortMining Industry –Mining Industry IndiaOctober 2011
  2. 2. Executive Summary  India produces a minerals, which include b fuel minerals, c metallic, d non–metallic, e atomic and f minor  minerals  Total value of mineral production was pegged at INR g tr in 20‐‐, an increase of h% over 20‐‐  Contribution of mining and quarrying industry to GDP of India during 20‐‐ was INR i bn Market  In 20 j mines were involved in extraction of coal and lignite k in metallic minerals and l in non metallic In 20‐‐, j mines were involved in extraction of coal and lignite, k in metallic minerals and l in non–metallic  minerals  Export value of ores and minerals during 20‐‐ increased by m% over 200‐‐ while export volume grew by n% in  the same period and import value of minerals have grown by o% between 200‐ and 20‐‐ Drivers Challenges g – Abundant mineral reserves – Lack of mining infrastructure Drivers &  – Ample exploration opportunities – Lack of support to exploration activities Challenges – Increasing investment potential – Environmental degradation – Growing demand from other sectors – Government concessions Government concessions  Legislation Framework  Ministry of MinesGovernment   National Mineral Policy 2008Regulations g  Mi Mineral Concessions lC i  FDI Policy Major PlayersCo pet t oCompetition Player 1 Player 2 Player 3 Player 4 Player 5 Player 6 MINING INDUSTRY IN INDIA 2011.PPT 2
  3. 3. •Industry Overview y•Exports and Imports•Mining Scenario Mining Scenario•Drivers & Challenges•Government Regulations•Government Regulations•Competition•Strategic Recommendations•Strategic Recommendations•Appendix MINING INDUSTRY IN INDIA 2011.PPT 3
  4. 4. Mining industry in India has been growing consistently on  account of rich reserves and increasing demand Mining Industry in India – Overview Growth in Mineral Production • India produces a minerals, which include b fuel  INR tr minerals, c metallic, d non–metallic, e atomic and f  minor minerals X% • It has abundant reserves of iron ore, bauxite,  dolomite, gypsum, limestone, mica and adequate  reserves of chromite, manganese, zinc and graphite  It is a leading producer of key minerals such as iron ore,  coal and bauxite 0.0 2006‐07 2007‐08 2008‐09 2009‐10 2010‐11 • Total value of mineral production (excluding atomic  Note: Figures are for the respective financial year ending 31st Mar minerals) during 20‐‐ has increased by g% over that  of 20‐‐ f Share of Minerals – Share of Minerals Value • Fuel minerals, especially coal, comprise of the  majority of total mineral production in India j% k% Segment 1 • Rich reserves of minerals in India make it very  Segment 2 S t2 conducive for the growth and development of the  i% Segment 3 mining sector in India Segment 4 • Increasing domestic demand and supportive  h% government participation will drive the mining  industry in IndiaSource: MINING INDUSTRY IN INDIA 2011.PPT 4
  5. 5. India occupies sixth place in the world for total bauxite  resources SAMPLE  Mineral and Metal Scenario – Bauxite Overview Exploration Activities Future Outlook • Bauxite is primarily used to produce  • d mn tonnes of metal grade bauxite  • India ranks M in the world for total  alumina which accounted for a%  resources have been estimated in City  bauxite resources 1 and City 2 • Eastern Ghats region of State 1 and  consumption in 20‐‐ • e mn tonnes of bauxite and f mn  State 2 are likely to be the hubs for  • There are b reporting bauxite mines in  tonnes of laterite resources were  mining activities in future 20 as against c in 20 20‐‐ as against c in 20‐‐ estimated in City 3  • There is scope for increasing mining of  • Orissa and Andhra Pradesh account for  • g sq km in City 4 have been found to be  metallurgical grade bauxite with  majority of bauxite reserves in India mineralized implementation of Mega Projects Production Foreign Trade Value Volume Exports Imports ‘000 tonnes INR bn INR bn 0 0 2006‐07 2007‐08 2008‐09 2009‐10 2006‐07 2007‐08 2008‐09 2009‐10Source: MINING INDUSTRY IN INDIA 2011.PPT 5
  6. 6. Statewise Scenario (1/x) State 1 Major Minerals Performance Indicators Coal, natural gas, iron ore,  Mineral Production INR a bn limestone, petroleum  (crude), chrysotile,  Year‐on‐year Change b% asbestos, barytes, mica,  Share in Total Mineral Production c% felspar, vermiculite, quartz,  laterite, silica sand,  Number of Mines Number of Mines d dolomite and limestone Mineral Production Index e State 2  State 2 Major Minerals Major Minerals Performance Indicators Performance Indicators Coal, iron ore, limestone,  Mineral Production INR f bn tin concentrate, bauxite,  dolomite, diamond, gold,  Year‐on‐year Change g%  quartzite, steatite,  Share in Total Mineral Production h% corundum, fluorite, emerald  and granite Number of Mines i Mineral Production Index j Note: Figures are for the financial year ending 31st Mar 2010Source: MINING INDUSTRY IN INDIA 2011.PPT 6
  7. 7. Drivers & Challenges – Summary  Drivers Challenges Abundant mineral reserves Lack of mining infrastructure Ample exploration opportunities Lack of support to exploration  activities Increasing investment potential Environmental degradation Growing demand from other sectors Government Concessions MINING INDUSTRY IN INDIA 2011.PPT 7
  8. 8. Government Regulations – Summary Legislation Framework Ministry of Mines Key Initiatives National Mineral Policy 2008 Mineral Concessions FDI Policy MINING INDUSTRY IN INDIA 2011.PPT 8
  9. 9. Players in the Market (1/x) Company Snapshot: Player 1 Corporate Information Financial Performance Headquarters City 1 City 1 Total Revenue Net Profit INR bn INR bn Founded ‐‐‐‐ Products and  Product 1 Services Key People Mr. X – Chairman 0 0 2007 2008 2009 2010 Business Highlights • Player is the single largest coal producer in the world, operating through a mining areas with b wholly owned coal  producing subsidiaries and c mine planning and consultancy company spread over 8 provincial states of India • Plans to invest up to INR d bn in the 12th Plan Period ending 20‐‐ towards mines’ development for augmenting  production • It has set aside INR e bn for acquisitions in 20‐‐ and is looking at acquiring mines in Indonesia, Australia and the United  States • Was conferred the “Company of the Year Award” by Indian Chamber of Commerce and Department of Public  Enterprises in 20‐‐ Enterprises in 20Source: MINING INDUSTRY IN INDIA 2011.PPT 9
  10. 10. Thank you for the attentionThe Mining Market ‐ India report is part of Research on India’s Manufacturing Industry Series. For more detailed information or customized research requirements please contact:Gaurav Kumar Gagan Uppal Gagan UppalPhone: +91 33 4064 6214 Tel:  +91 22 4098 7530E‐Mail: Email:  gagan.uppal@netscribes.comResearch on India is a product of Netscribes (India) Pvt. Ltd. Research on India is dedicated to disseminating information and providing quick Research on India is a product of Netscribes (India) Pvt Ltd Research on India is dedicated to disseminating information and providing quickinsights on “hot” industries in India and other emerging markets. Track our new releases and major updates in these industries onAbout NetscribesNetscribes is a knowledge‐consulting and solutions firm with clientele across the globe. The company’s expertise spans areas of investment &  g g f g p y p p fbusiness research, business & corporate intelligence, content‐management services, and knowledge‐software services. At its core lies a true value proposition that draws upon a vast knowledge base. Netscribes is a one‐stop shop designed to fulfil clients’ profitability and growth objectives.Disclaimer: This report is published for general information only. Although high standards have been used the preparation, Research on India, Disclaimer: This report is published for general information only Although high standards have been used the preparation Research on IndiaNetscribes (India) Pvt. Ltd. or “Netscribes” is not responsible for any loss or damage arising from use of this document. This document is the sole property of Netscribes (India) Pvt. Ltd. and prior permission is required for guidelines on reproduction. MINING INDUSTRY IN INDIA 2011.PPT 10