INDIAN MINERAL EXPLORATION POLICY &
REALITY DIVERGENCE
OUTLOOK FOR METALS SECTOR PROMISING: CENTRUM RESEARCH
USHA MARTIN BUY TO DIVERSIFY TATA STEEL' S PRODUCT RANGE:REPORT
#MINING INDIA NEWS
The document discusses India's looming iron ore supply crisis by 2020 if mining leases are not efficiently handled. It warns that unless exploration is increased and expired leases are renewed, iron ore production will decline. It also discusses issues facing the mining industry like government policies and taxes that discourage production and expansion. India has dropped in an investment attractiveness index for the mining sector due to issues like unclear regulations and legal uncertainty.
Indian Mining and Exploration - Newsletter Issue January 2015Geonesis Gemcokati
The document discusses proposed changes to mining laws and regulations in India. Key points:
- The Indian cabinet was considering an ordinance that would introduce auctioning of mining leases for critical minerals, changing how mining rights are allocated. However, the ordinance was still being examined.
- States like Odisha and Goa were rushing to renew existing leases before the potential new rules around auctions came into effect.
- The proposed ordinance would give a 5-10 year grace period for existing leases over 50 years old before they would need to be auctioned.
- The changes aim to increase revenue and investment in the mining sector but existing leases held by large companies would still be protected to some extent
INDIA’S MINING INDUSTRY TURNING A CORNER....
After several years of contraction, the Indian mining industry
has turned the corner, marking a highlight of Prime Minister
Narendra Modi’s two years in office.
According to official data, the mining industry notched up
8.2% growth during the first eleven months of the 2015/16
financial year, which is now being touted as a considerable
achievement by the Modi government against the backdrop of
four consecutive years of contraction until 2014/15.
The mining industry also contributed significantly to bolstering
the Index of Industrial Production (IIP), which registered
an average growth of 2.6%
during the first 11 months of
the financial year. Mining has
a 14% weightage in the IIP.
The document discusses the issue of iron ore mining in Goa, India being shut down by the Supreme Court and efforts by the government to restart mining. It is reported that the federal government is considering an ordinance to resume mining in Goa due to rising unemployment and pressure from upcoming elections. Sources say a group of ministers has been tasked with resolving the issue and is seeking legal opinion on promulgating an ordinance to circumvent the Supreme Court order banning mining. Restarting the 88 mines that were shut down is an urgent priority for the state government and its political partners.
The author visited key coal producing states in India and identified several challenges to achieving Coal India's production target of 1 billion tons by 2020:
1) Complex land acquisition processes with different challenges in each state such as outdated land records, high forest cover, and laws protecting tribal lands. This is expected to significantly slow mining and transportation projects.
2) Slow progress on improving coal transportation infrastructure like rail lines due to land acquisition and financing difficulties. Critical projects are expected to be delayed.
3) Difficulties obtaining environmental and forest clearances for projects given high forest cover and opposition from local communities.
4) A trust deficit has developed between local communities and corporations due to perceived violations of laws and poor implementation of reset
OPEN SKY POLICY FOR EXPLORERS ...
OPEN SKY POLICY: MINES MIN TO ROPE IN PRIVATE FIRMS FOR EXPLORATION...
GOVERNMENT TARGETS AUC TIONS OF 120 GREENFIELD MINES THIS FISCAL...
NO MONETARY INCENTIV ES FOR MINERAL EXPLORATION...
VEDANTA HOPES TO RESUME MINING IN GOA AFTER RAINS...
MINING IN GOA MAY RE SUME IN OC TOBER: CM LAXMIKANT PARSEKAR...
PV T SEC TOR MAY BE ROPED IN ROCK PHOSPHATE MINING : RAJASTHAN...
MONNET ISPAT TO SURR ENDER ODISHA COAL BLOCK BAGGED IN AUCTION...
KIOC L, MECL SIGN MOU FOR JOINT EXPLORATI ON OF MINERAL ASSETS...
MINERS MAY NOT HAVE TO PAY 100% OF ROYALTY AS
FOUNDATION CONTRIBUTION...
RAJASTHAN TO GRANT L EASES FOR MINING OF BASE AND NOBLE METALS BY DECEMBER...
COAL MINISTRY SITTING ON A GOLD MINE, PLANS UNIFORM MODEL FOR COAL INDIA...
COAL INDIA TO GIVE UP THREE-FOURTHS OF MOZAMBIQUE MINE...
India’s economy is charting rough waters, with virtually every sector facing growth concerns. The mining sector is among the worst hit, with seemingly-unending bad news impacting it deeply. Despite large reserves of iron ore and coal, India’s imports of these precious raw materials have been increasing. The cover story of MSLGROUP in India’s Public Affairs Round-up, or PAR, explores what lies in store for mining as India enters a crucial election year.
The other important debate in business circles centres around the new Companies’ Act that mandates corporate social responsibility (CSR) on companies of a certain size. Amrita Choudhary, deputy head of content at MSLGROUP in India, argues that the law will alter India Inc’s social approach and prove to be a big opportunity for CSR consultancies.
The document summarizes news from Mongolia in the areas of business, economy, and politics. Some of the key highlights include:
- Mongolia sees only a few remaining issues to resolve regarding the Oyu Tolgoi mining deal.
- Turquoise Hill Resources says inventory is building at the Oyu Tolgoi mine as some copper and gold sales have been deferred.
- Erdenes Tavan Tolgoi plans to significantly increase its coal exports to 11 million tons in 2014 with the goal of exporting 35 million tons annually once rail infrastructure is improved.
- The Mongolian government introduces its 2014 work plan while parliament works to meet international anti-money laundering standards.
The document discusses India's looming iron ore supply crisis by 2020 if mining leases are not efficiently handled. It warns that unless exploration is increased and expired leases are renewed, iron ore production will decline. It also discusses issues facing the mining industry like government policies and taxes that discourage production and expansion. India has dropped in an investment attractiveness index for the mining sector due to issues like unclear regulations and legal uncertainty.
Indian Mining and Exploration - Newsletter Issue January 2015Geonesis Gemcokati
The document discusses proposed changes to mining laws and regulations in India. Key points:
- The Indian cabinet was considering an ordinance that would introduce auctioning of mining leases for critical minerals, changing how mining rights are allocated. However, the ordinance was still being examined.
- States like Odisha and Goa were rushing to renew existing leases before the potential new rules around auctions came into effect.
- The proposed ordinance would give a 5-10 year grace period for existing leases over 50 years old before they would need to be auctioned.
- The changes aim to increase revenue and investment in the mining sector but existing leases held by large companies would still be protected to some extent
INDIA’S MINING INDUSTRY TURNING A CORNER....
After several years of contraction, the Indian mining industry
has turned the corner, marking a highlight of Prime Minister
Narendra Modi’s two years in office.
According to official data, the mining industry notched up
8.2% growth during the first eleven months of the 2015/16
financial year, which is now being touted as a considerable
achievement by the Modi government against the backdrop of
four consecutive years of contraction until 2014/15.
The mining industry also contributed significantly to bolstering
the Index of Industrial Production (IIP), which registered
an average growth of 2.6%
during the first 11 months of
the financial year. Mining has
a 14% weightage in the IIP.
The document discusses the issue of iron ore mining in Goa, India being shut down by the Supreme Court and efforts by the government to restart mining. It is reported that the federal government is considering an ordinance to resume mining in Goa due to rising unemployment and pressure from upcoming elections. Sources say a group of ministers has been tasked with resolving the issue and is seeking legal opinion on promulgating an ordinance to circumvent the Supreme Court order banning mining. Restarting the 88 mines that were shut down is an urgent priority for the state government and its political partners.
The author visited key coal producing states in India and identified several challenges to achieving Coal India's production target of 1 billion tons by 2020:
1) Complex land acquisition processes with different challenges in each state such as outdated land records, high forest cover, and laws protecting tribal lands. This is expected to significantly slow mining and transportation projects.
2) Slow progress on improving coal transportation infrastructure like rail lines due to land acquisition and financing difficulties. Critical projects are expected to be delayed.
3) Difficulties obtaining environmental and forest clearances for projects given high forest cover and opposition from local communities.
4) A trust deficit has developed between local communities and corporations due to perceived violations of laws and poor implementation of reset
OPEN SKY POLICY FOR EXPLORERS ...
OPEN SKY POLICY: MINES MIN TO ROPE IN PRIVATE FIRMS FOR EXPLORATION...
GOVERNMENT TARGETS AUC TIONS OF 120 GREENFIELD MINES THIS FISCAL...
NO MONETARY INCENTIV ES FOR MINERAL EXPLORATION...
VEDANTA HOPES TO RESUME MINING IN GOA AFTER RAINS...
MINING IN GOA MAY RE SUME IN OC TOBER: CM LAXMIKANT PARSEKAR...
PV T SEC TOR MAY BE ROPED IN ROCK PHOSPHATE MINING : RAJASTHAN...
MONNET ISPAT TO SURR ENDER ODISHA COAL BLOCK BAGGED IN AUCTION...
KIOC L, MECL SIGN MOU FOR JOINT EXPLORATI ON OF MINERAL ASSETS...
MINERS MAY NOT HAVE TO PAY 100% OF ROYALTY AS
FOUNDATION CONTRIBUTION...
RAJASTHAN TO GRANT L EASES FOR MINING OF BASE AND NOBLE METALS BY DECEMBER...
COAL MINISTRY SITTING ON A GOLD MINE, PLANS UNIFORM MODEL FOR COAL INDIA...
COAL INDIA TO GIVE UP THREE-FOURTHS OF MOZAMBIQUE MINE...
India’s economy is charting rough waters, with virtually every sector facing growth concerns. The mining sector is among the worst hit, with seemingly-unending bad news impacting it deeply. Despite large reserves of iron ore and coal, India’s imports of these precious raw materials have been increasing. The cover story of MSLGROUP in India’s Public Affairs Round-up, or PAR, explores what lies in store for mining as India enters a crucial election year.
The other important debate in business circles centres around the new Companies’ Act that mandates corporate social responsibility (CSR) on companies of a certain size. Amrita Choudhary, deputy head of content at MSLGROUP in India, argues that the law will alter India Inc’s social approach and prove to be a big opportunity for CSR consultancies.
The document summarizes news from Mongolia in the areas of business, economy, and politics. Some of the key highlights include:
- Mongolia sees only a few remaining issues to resolve regarding the Oyu Tolgoi mining deal.
- Turquoise Hill Resources says inventory is building at the Oyu Tolgoi mine as some copper and gold sales have been deferred.
- Erdenes Tavan Tolgoi plans to significantly increase its coal exports to 11 million tons in 2014 with the goal of exporting 35 million tons annually once rail infrastructure is improved.
- The Mongolian government introduces its 2014 work plan while parliament works to meet international anti-money laundering standards.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia in Issue 281 dated July 5, 2013. It includes over 50 brief news highlights on topics like mining projects, transportation, tourism, and economic indicators. Some of the key stories include Rio Tinto postponing the first shipment from the Oyu Tolgoi mine due to a dispute with Mongolia over revenue, Turquoise Hill securing a $225 million loan from Rio Tinto to fund OT operations, MMC expanding its coal processing capacity to 15 million tons annually, and a Mongolian firm preparing to launch a new oil enterprise in North Korea.
The Prime Minister of Mongolia discussed Mongolia's economic outlook and challenges in an interview. He stated that Mongolia expects around 8% GDP growth in 2010 and over 10% growth for the next 5 years. Mongolia is a major exporter of coal and copper to China and aims to increase processing industries to create jobs. The main economic problem is managing mining wealth to reduce poverty levels and potential social tensions. The Prime Minister aims to channel wealth to combat poverty and is considering economic models of resource-rich nations like Canada, Chile and hybrid models.
- The document summarizes news from the Business Council of Mongolia newsletter, including highlights on business, economic, and political news in Mongolia. Some of the business news included SouthGobi shares falling due to fears a deal with Chalco would be derailed, an investigation into Ivanhoe Mines sinking its stock price, and Draig Resources reporting its thickest coal seams yet at its Teeg license. Economic news included updates on roads development, food safety, and China looking to Mongolia for iron ore. Political news included progress on a foreign investment law and the election process.
Coal auctions: Modi govt's policy push to private miners will cost Chhattisgarh Rs 900 crore a year
Odisha mining auction: 123 companies in race for 11 mineral blocks
Proposed amendments to Coal Bearing Areas Act will change
land acquisition for mining: Experts
JSW Steel seeks consent to surrender Gonua iron ore
mine in Odisha
MSMEs’ SOS to Odisha govt. over iron ore scarcity
NMDC, Ministry of Steel assists NINL to start iron ore mining
Atomic Minerals Directorate looks for lithium in
Karnataka, Rajasthan
Australian High Commissioner meets Chhattisgarh CM; holds
talks on mutual cooperation
Exercise due diligence in clearing mining leases, former
bureaucrat urges A.P. govt
Govt relaxes green norms for projects connecting mines
39 mining projects of Coal India face delays
The document provides updates on mining and exploration in India. Key points include:
- The government eased rules to allow 60 mining companies to obtain mining leases by the January 11th deadline despite delays in approvals.
- Iron ore exports from India increased nine-fold to 9 million tonnes due to higher global prices and protectionist measures for the domestic steel industry.
- Cement production growth in India is forecast to slow to 4% in 2017 from earlier estimates of 4-6% due to the impact of demonetization on construction sectors and higher petcoke prices increasing costs.
- The Ministry of Mines took initiatives in 2016 such as using satellite imagery to curb illegal mining, instituting a star rating
Ultratech Cement is the largest cement producer in India with an annual capacity of 67 million tonnes as of 2017. It has recently acquired the cement business of Jaiprakash Associates, making it the third largest player globally. The company plans to expand its capacity further to 71 million tonnes through brownfield and greenfield expansion projects involving investments of over $1 billion. It aims to leverage India's growing cement demand driven by housing and infrastructure development.
The document summarizes business news from Mongolia. It discusses several topics:
- Transport firms halting coal exports from Tavan Tolgoi due to unpaid fees. Erdenes-TT seeking a $400-500 million government loan to repay debt and fund infrastructure projects.
- Rio Tinto inviting bankers to arrange $4 billion in project financing for the Oyu Tolgoi copper-gold mine.
- Exploration companies reporting positive drilling results at iron ore projects in Mongolia, confirming wide zones of mineralization.
- Other news items on mining, coal shipping, airline routes, and proposed industry consolidation.
The document summarizes business and economic news from Mongolia. It discusses ongoing negotiations between Mongolia and Rio Tinto over the Oyu Tolgoi mining project. It also mentions that Aspire Mining has identified potential savings of $200 million by selecting a new route for a proposed rail line. Additionally, it provides updates on various mining and infrastructure projects throughout Mongolia.
Another Issue of Geonesis monthly newsletter with sensational exclusive news.
MINING: A COMPLETE OVERHAUL IS NEEDED
ILLEGAL MINING, POLI C Y REFORMS AMONG PRIORITIES
ONE MINISTRY FOR STEEL & MINES IS A RECIPE TO REDEEM BOTH
India is the second largest refiner in Asia and the fourth largest LNG importer globally. India's energy demand is projected to double by 2035, with oil and gas accounting for over one-third of total energy consumption. State-owned companies dominate India's oil and gas sector, however private companies have gained considerable market share in refining. Oil consumption has grown at a CAGR of 3% from 2008-2017 to reach 4.13 million barrels per day. Similarly, gas consumption has increased at a CAGR of 2.3% from 2007-2016 to 1,227 billion cubic meters. However, India remains reliant on imports for its oil requirement, with imports meeting 82% of demand in FY
This document provides an overview of the cement industry in India. Some key points:
- India is the 2nd largest cement producer globally with a production capacity of nearly 420 million tonnes as of 2017. Capacity is expected to reach 550 million tonnes by 2025.
- The industry is dominated by large private players who account for around 70% of total production. The top 20 companies control a majority of the market.
- Key growth drivers for the industry are the housing sector which accounts for 67% of cement demand, and large infrastructure projects from the government including the smart cities initiative.
- Major opportunities exist in expanding capacity to meet rising demand, utilizing alternative fuels to reduce costs and emissions,
This document summarizes news from the Business Council of Mongolia newsletter for August 2, 2013. Major stories include Rio Tinto delaying underground development at the Oyu Tolgoi mine until it receives parliamentary approval for project financing. The majority shareholder of Savings Bank blamed receiving bad information about the Olon Ovoot mine for defaulting on loans. Aspire Mining's Ovoot coal mine resource estimates were upgraded, increasing reserves by 10.3%. Tests showed blending opportunities for coal from Ovoot and the Tavan Tolgoi mine.
The document summarizes business and economic news from Mongolia. It reports that Rio Tinto announced 1,700 redundancies at its Mongolian operations due to delays in underground expansion of the Oyu Tolgoi copper mine. Mongolia wants this expansion funded through cash flow from the mine until disputes over costs are resolved. Mongolia is also studying an IPO of its 34% stake in Oyu Tolgoi to give citizens ownership and help fund the expansion. Additionally, Prophecy Coal signed coal export deals to restart shipments to Russia.
The document discusses India's draft National Mineral Policy which proposes to offer mineral exploration companies the right of first refusal to mine any area they have explored. It also discusses upcoming expirations of mining leases in India and the risks to mineral production if new leases are not issued on time. Additionally, it provides updates on Vedanta Resources bagging bauxite mines in Odisha, their plans to expand aluminum production, and venturing into specialty glass manufacturing.
Banks have agreed to extend funding for the underground expansion of the Oyu Tolgoi mine by six months. Erdenes Tavan Tolgoi reported $50 million in coal sales in Q1 2014. An investors' group is urging Mongolians who chose cash instead of shares in Erdenes Tavan Tolgoi to reconsider and take the shares instead. Petro Matad confirmed two new oil prospects in its blocks with estimated reserves of 60-100 million barrels and 22-24 million barrels respectively. Xanadu Mines has $10 million in financing to advance exploration at its Kharmagtai copper and gold project. Consolidation Services appointed a former Hertz Equipment Rental executive to its advisory board to
PM DISCUSSES ECONOMIC REFORMS IN MINING SECTOR
MINERS SEEK MORATORIUM ON DUES AS LOCKDOWN CRIPPLES OPERATIONS
PROPOSED CHANGES IN MINING POLICY TO HIT STEEL COMPANIES WITH CAPTIVE LEASES
The document summarizes news from the Business Council of Mongolia newsletter. It covers business, economic, and political news highlights from Mongolia. Some of the key points included are that the Prime Minister said the government will have to review policies and subsidies due to falling copper prices. A Japanese firm expressed interest in mining uranium. The economy is expected to be impacted by slowing foreign investment and rising prices, though direct effects of the global financial crisis are seen as limited due to Mongolia's isolation from international markets. An IMF team visited to discuss strengthening the Mongolian economy.
The document discusses several topics related to mineral exploration and mining in India:
1) The Indian government is working to increase private sector participation in non-coal mineral exploration and is preparing policies to incentivize exploration.
2) Industry groups are calling for amendments to allow those with reconnaissance permits to directly obtain prospecting and mining licenses without needing to go through auctions.
3) The government is cracking down on states to complete exploration of 288 mineral blocks by the end of 2018 so that new auctions can begin in 2019 before current leases expire in 2020.
4) Options being considered for a new mineral policy include granting reconnaissance permit holders first right of refusal in auctions or bundling permits with
The Indian government plans to auction 19 coal mines this quarter after cancelling previous auctions twice due to poor response. The Coal Secretary says 6 mines have been identified for the steel sector and 13 for other industries like cement. The government is considering providing some relaxations to attract more bidders while maintaining transparency. Odisha has identified 4 iron ore and manganese blocks for its next auction. Poland is looking to partner with West Bengal to boost trade, particularly in mining technology, hardware and coking coal. The Bombay High Court has reserved its order on a PIL related to mining in Goa after hearing arguments from various parties.
Singareni Collieries, India's second largest coal producer, will open the country's largest underground mine next month with an annual capacity of 2.8 million tonnes. This will help Singareni exceed its coal production target for the current fiscal year and ensure sufficient supplies to power plants in South India. Allocating natural resources requires balancing economic growth with environmental and social concerns. While auctioning resources can increase transparency and revenues, proper exploration is needed beforehand and conditions must be established to prevent discrimination. The role of central and state governments in allocating resources also needs clarification to resolve ongoing debates.
The document is a newsletter from the Business Council of Mongolia covering business and economic news from Mongolia in Issue 281 dated July 5, 2013. It includes over 50 brief news highlights on topics like mining projects, transportation, tourism, and economic indicators. Some of the key stories include Rio Tinto postponing the first shipment from the Oyu Tolgoi mine due to a dispute with Mongolia over revenue, Turquoise Hill securing a $225 million loan from Rio Tinto to fund OT operations, MMC expanding its coal processing capacity to 15 million tons annually, and a Mongolian firm preparing to launch a new oil enterprise in North Korea.
The Prime Minister of Mongolia discussed Mongolia's economic outlook and challenges in an interview. He stated that Mongolia expects around 8% GDP growth in 2010 and over 10% growth for the next 5 years. Mongolia is a major exporter of coal and copper to China and aims to increase processing industries to create jobs. The main economic problem is managing mining wealth to reduce poverty levels and potential social tensions. The Prime Minister aims to channel wealth to combat poverty and is considering economic models of resource-rich nations like Canada, Chile and hybrid models.
- The document summarizes news from the Business Council of Mongolia newsletter, including highlights on business, economic, and political news in Mongolia. Some of the business news included SouthGobi shares falling due to fears a deal with Chalco would be derailed, an investigation into Ivanhoe Mines sinking its stock price, and Draig Resources reporting its thickest coal seams yet at its Teeg license. Economic news included updates on roads development, food safety, and China looking to Mongolia for iron ore. Political news included progress on a foreign investment law and the election process.
Coal auctions: Modi govt's policy push to private miners will cost Chhattisgarh Rs 900 crore a year
Odisha mining auction: 123 companies in race for 11 mineral blocks
Proposed amendments to Coal Bearing Areas Act will change
land acquisition for mining: Experts
JSW Steel seeks consent to surrender Gonua iron ore
mine in Odisha
MSMEs’ SOS to Odisha govt. over iron ore scarcity
NMDC, Ministry of Steel assists NINL to start iron ore mining
Atomic Minerals Directorate looks for lithium in
Karnataka, Rajasthan
Australian High Commissioner meets Chhattisgarh CM; holds
talks on mutual cooperation
Exercise due diligence in clearing mining leases, former
bureaucrat urges A.P. govt
Govt relaxes green norms for projects connecting mines
39 mining projects of Coal India face delays
The document provides updates on mining and exploration in India. Key points include:
- The government eased rules to allow 60 mining companies to obtain mining leases by the January 11th deadline despite delays in approvals.
- Iron ore exports from India increased nine-fold to 9 million tonnes due to higher global prices and protectionist measures for the domestic steel industry.
- Cement production growth in India is forecast to slow to 4% in 2017 from earlier estimates of 4-6% due to the impact of demonetization on construction sectors and higher petcoke prices increasing costs.
- The Ministry of Mines took initiatives in 2016 such as using satellite imagery to curb illegal mining, instituting a star rating
Ultratech Cement is the largest cement producer in India with an annual capacity of 67 million tonnes as of 2017. It has recently acquired the cement business of Jaiprakash Associates, making it the third largest player globally. The company plans to expand its capacity further to 71 million tonnes through brownfield and greenfield expansion projects involving investments of over $1 billion. It aims to leverage India's growing cement demand driven by housing and infrastructure development.
The document summarizes business news from Mongolia. It discusses several topics:
- Transport firms halting coal exports from Tavan Tolgoi due to unpaid fees. Erdenes-TT seeking a $400-500 million government loan to repay debt and fund infrastructure projects.
- Rio Tinto inviting bankers to arrange $4 billion in project financing for the Oyu Tolgoi copper-gold mine.
- Exploration companies reporting positive drilling results at iron ore projects in Mongolia, confirming wide zones of mineralization.
- Other news items on mining, coal shipping, airline routes, and proposed industry consolidation.
The document summarizes business and economic news from Mongolia. It discusses ongoing negotiations between Mongolia and Rio Tinto over the Oyu Tolgoi mining project. It also mentions that Aspire Mining has identified potential savings of $200 million by selecting a new route for a proposed rail line. Additionally, it provides updates on various mining and infrastructure projects throughout Mongolia.
Another Issue of Geonesis monthly newsletter with sensational exclusive news.
MINING: A COMPLETE OVERHAUL IS NEEDED
ILLEGAL MINING, POLI C Y REFORMS AMONG PRIORITIES
ONE MINISTRY FOR STEEL & MINES IS A RECIPE TO REDEEM BOTH
India is the second largest refiner in Asia and the fourth largest LNG importer globally. India's energy demand is projected to double by 2035, with oil and gas accounting for over one-third of total energy consumption. State-owned companies dominate India's oil and gas sector, however private companies have gained considerable market share in refining. Oil consumption has grown at a CAGR of 3% from 2008-2017 to reach 4.13 million barrels per day. Similarly, gas consumption has increased at a CAGR of 2.3% from 2007-2016 to 1,227 billion cubic meters. However, India remains reliant on imports for its oil requirement, with imports meeting 82% of demand in FY
This document provides an overview of the cement industry in India. Some key points:
- India is the 2nd largest cement producer globally with a production capacity of nearly 420 million tonnes as of 2017. Capacity is expected to reach 550 million tonnes by 2025.
- The industry is dominated by large private players who account for around 70% of total production. The top 20 companies control a majority of the market.
- Key growth drivers for the industry are the housing sector which accounts for 67% of cement demand, and large infrastructure projects from the government including the smart cities initiative.
- Major opportunities exist in expanding capacity to meet rising demand, utilizing alternative fuels to reduce costs and emissions,
This document summarizes news from the Business Council of Mongolia newsletter for August 2, 2013. Major stories include Rio Tinto delaying underground development at the Oyu Tolgoi mine until it receives parliamentary approval for project financing. The majority shareholder of Savings Bank blamed receiving bad information about the Olon Ovoot mine for defaulting on loans. Aspire Mining's Ovoot coal mine resource estimates were upgraded, increasing reserves by 10.3%. Tests showed blending opportunities for coal from Ovoot and the Tavan Tolgoi mine.
The document summarizes business and economic news from Mongolia. It reports that Rio Tinto announced 1,700 redundancies at its Mongolian operations due to delays in underground expansion of the Oyu Tolgoi copper mine. Mongolia wants this expansion funded through cash flow from the mine until disputes over costs are resolved. Mongolia is also studying an IPO of its 34% stake in Oyu Tolgoi to give citizens ownership and help fund the expansion. Additionally, Prophecy Coal signed coal export deals to restart shipments to Russia.
The document discusses India's draft National Mineral Policy which proposes to offer mineral exploration companies the right of first refusal to mine any area they have explored. It also discusses upcoming expirations of mining leases in India and the risks to mineral production if new leases are not issued on time. Additionally, it provides updates on Vedanta Resources bagging bauxite mines in Odisha, their plans to expand aluminum production, and venturing into specialty glass manufacturing.
Banks have agreed to extend funding for the underground expansion of the Oyu Tolgoi mine by six months. Erdenes Tavan Tolgoi reported $50 million in coal sales in Q1 2014. An investors' group is urging Mongolians who chose cash instead of shares in Erdenes Tavan Tolgoi to reconsider and take the shares instead. Petro Matad confirmed two new oil prospects in its blocks with estimated reserves of 60-100 million barrels and 22-24 million barrels respectively. Xanadu Mines has $10 million in financing to advance exploration at its Kharmagtai copper and gold project. Consolidation Services appointed a former Hertz Equipment Rental executive to its advisory board to
PM DISCUSSES ECONOMIC REFORMS IN MINING SECTOR
MINERS SEEK MORATORIUM ON DUES AS LOCKDOWN CRIPPLES OPERATIONS
PROPOSED CHANGES IN MINING POLICY TO HIT STEEL COMPANIES WITH CAPTIVE LEASES
The document summarizes news from the Business Council of Mongolia newsletter. It covers business, economic, and political news highlights from Mongolia. Some of the key points included are that the Prime Minister said the government will have to review policies and subsidies due to falling copper prices. A Japanese firm expressed interest in mining uranium. The economy is expected to be impacted by slowing foreign investment and rising prices, though direct effects of the global financial crisis are seen as limited due to Mongolia's isolation from international markets. An IMF team visited to discuss strengthening the Mongolian economy.
The document discusses several topics related to mineral exploration and mining in India:
1) The Indian government is working to increase private sector participation in non-coal mineral exploration and is preparing policies to incentivize exploration.
2) Industry groups are calling for amendments to allow those with reconnaissance permits to directly obtain prospecting and mining licenses without needing to go through auctions.
3) The government is cracking down on states to complete exploration of 288 mineral blocks by the end of 2018 so that new auctions can begin in 2019 before current leases expire in 2020.
4) Options being considered for a new mineral policy include granting reconnaissance permit holders first right of refusal in auctions or bundling permits with
The Indian government plans to auction 19 coal mines this quarter after cancelling previous auctions twice due to poor response. The Coal Secretary says 6 mines have been identified for the steel sector and 13 for other industries like cement. The government is considering providing some relaxations to attract more bidders while maintaining transparency. Odisha has identified 4 iron ore and manganese blocks for its next auction. Poland is looking to partner with West Bengal to boost trade, particularly in mining technology, hardware and coking coal. The Bombay High Court has reserved its order on a PIL related to mining in Goa after hearing arguments from various parties.
Singareni Collieries, India's second largest coal producer, will open the country's largest underground mine next month with an annual capacity of 2.8 million tonnes. This will help Singareni exceed its coal production target for the current fiscal year and ensure sufficient supplies to power plants in South India. Allocating natural resources requires balancing economic growth with environmental and social concerns. While auctioning resources can increase transparency and revenues, proper exploration is needed beforehand and conditions must be established to prevent discrimination. The role of central and state governments in allocating resources also needs clarification to resolve ongoing debates.
- The Indian mining sector has struggled with bureaucratic hurdles and regulations that have slowed growth, but PM Modi is trying to attract private and foreign investment to revive the sector. Measures include allowing more foreign investment, auctioning mining licenses, and extending mining concessions to 50 years.
- Bhushan Power & Steel emerged as the preferred bidder for the Netrabandha Pahar iron ore block in Odisha, agreeing to share 87.15% of revenue with the state government. Adani Cementation plans to set up cement grinding and clinker facilities worth 3000 crore rupees in Gujarat and Karnataka to meet growing demand.
- A survey found that Indian mining
A transformation time for Indian tax system GST which was born out of patience & struggle; the uniformed tax system which is expected to roll out on 1st of July is a turning point in the Indian tax regime. The implementation of GST will bring lot more benefits at the consumer end. The main objective of GST is to eliminate excessive taxation. In the run-up to one of the biggest tax reforms in the country, the market is abuzz with new rules and guidelines about the Goods and Services Tax (GST).
Steel 360 Magazine June'17 Issue.
Geonesis volume 3 issue 1 december 2015Lijin Sunil
Geonesis
Celebrating 2 years of success...
Introducing new Mobile App for Android: Visit play store or click this link: https://goo.gl/X39lTR
INDIA NEEDS MORE FOREIGN INVESTMENT IN MINING
SECTOR....
FIRMS STRUGGLE TO GE T CLEARANCES AT ‘READY TO MINE’ COAL BLOCKS
GOVT TO AUCTION 12 COPPER MINES , EXPECTS 15 MT OF ORE SUPPLY
RARE EARTH DIPLOMACY: INDIA AND JAPAN MA KES STRATEGIC PARTNERSHIP TO EXPLORE STAKES IN DEEP - SEA MINING
FIVE STATES ISSUE NOTICES TO AUC TION 28 OF 70 MINES IN FIRST PHASE
The document summarizes news from the Business Council of Mongolia newsletter. It reports that six groups have been shortlisted to develop the Tavan Tolgoi coal field, including ArcelorMittal, Vale, Peabody Energy, Xstrata, a Mitsui & Shenhua joint venture, and a Russia-Japan-Korea consortium. It also provides updates on exploration and drilling programs from several mining companies operating in Mongolia.
The document summarizes business and economic news from Mongolia. It reports that Khan Resources received notice from Mongolia's State Property Committee to increase state ownership of its uranium project to 51%. It also reports that Centerra Gold forecasts gold production of 640,000-700,000 ounces in 2010. Additionally, it mentions that Ivanhoe Mines plans to spend $758 million on development work at its Oyu Tolgoi copper-gold mine in 2010.
The Indian government has further amended mineral auction rules to simplify the auction process and increase participation. Key changes include reducing the net worth requirement for bidders, allowing disposal of 25% of mining waste, and giving states flexibility to allocate blocks with less than 3 bidders. The steel ministry has suggested developing transport infrastructure, streamlining iron ore supply through long-term agreements, and creating special mining zones to ensure adequate iron ore availability for steel production, which is important to achieve India's steel production targets.
This document provides a summary of metals markets and major company news. It discusses copper being at the centre of a new metal age, with prices of copper and other base metals rebounding from lows. It notes mining companies cutting costs amid lower prices. Major projects for copper producers like Codelco are discussed. The document also summarizes M&A activity, funding news, and provides commentary on other base metals markets and lithium/tantalum sectors.
The document discusses several topics related to mining in India:
1) India ranks poorly (97th out of 104 countries) on investment attractiveness for mining according to the Fraser Institute due to frequent bans and restrictions that have pushed the country out of the top 91.
2) The Supreme Court's ruling on mining leases in Goa will further damage India's image as an investment destination for mining.
3) The government has opened coal mining to private companies for commercial use, ending the monopoly of Coal India. This is expected to increase competition, investment, and jobs in the mining sector.
4) Allowing commercial coal mining is a possible but not guaranteed game changer due to various challenges around project sites,
The document discusses proposals in India's draft National Mineral Policy (NMP) 2018, including according exploration companies the right of first refusal to mine areas they explored. It aims to encourage private participation in mineral exploration. The policy also proposes a long-term export policy and industry status for mining to incentivize investment. It focuses on improving transportation infrastructure for the mining sector and using cluster approaches for small, scattered deposits.
This document is a newsletter from Terra Studio that provides a weekly summary and analysis of base metals, precious metals, and specialty metals markets. It includes summaries of company production reports and project developments, as well as discussions of macroeconomic influences and industry trends. The newsletter disclaims liability for any actions taken based on its analysis and advises readers to consult financial advisors.
The document is an issue of Oz Metals, a report published by Terra Studio, that provides information on base and precious metal markets and mining industry news. It includes a disclaimer, and discusses zinc treatment charges being 23% lower in 2016, Fortescue Metals looking to invest in lithium, graphite and copper, and updates on various mining projects and companies around the world.
The document is a newsletter from the Business Council of Mongolia providing summaries of business and economic news from Mongolia. It discusses several stories including: OT expanding its mining operations and hiring hundreds of Mongolians starting in July; OT shipping over 2 million tons of copper concentrate in Q1 2016; a Mongolian development bank inking an oil loan with Russia; and mines leading tax payments in Mongolia in 2014 and 2015. It also briefly summarizes other mining, economic, political and business stories from Mongolia.
Top Headlines:
KGF: India’s gold bowl that the British looted for 121 years
Minister Pralhad Joshi urges states to increase pace of exploration of mines
Minister for Mines Pralhad Joshi urges GSI to reduce time frame in submitting mineral exploration reports
#IndianMiningNews #MineralExploration #Geonesis
Mining sector growth provides the right fillip to Indian economy:
Pralhad Joshi
Ensure greater transparency in mineral concession auction:
Parliament panel
Minister for Mines Pralhad Joshi urges GSI to reduce time frame
in submitting mineral exploration reports
India to invest in exploring lithium, cobalt mines in Australia
Govt opens up mining of new set of minerals to reduce imports
New tech makes eco-mining a reality for Rare Earths
Ministry of Coal puts 122 mines on auction
Set up special courts to punish illegal mining, Odisha advocate
general to govt
Taliban using Afghanistan's natural resources as bargaining chip for international recognition
Mining sector has critical role in the green energy transition
Unearthing foreign elements from the Good Earth.
Aluminium business of Vedanta to bring two mines into operation.
Orissa HC directs state government to set up special courts for
cases of illegal mining.
Coal Ministry receives 26 bids for auction of 11 mines
India aims to reopen discontinued coal mines; seeks
private participation
42 mines auctioned till date for commercial mining:
Coal Ministry
India should focus on procuring minerals crucial for powering
EVs: study
Sarda Mines moves SC to direct Odisha govt to execute mining
lease deed in its favour
GSI stumbles upon lithium reserves in Anantapur
The trials of Goa’s mining industry: A problem of politics, people
and private industry
Navigating from one problem to the next gracefully in the best
possible way......
North-East States of Assam & Arunachal Sets Prices of Coal on Fire with Aggressive Bids of 288.75 & 344.75% placed by State Mining Corporations
Centre firm on auctioning of Singareni coal mine blocks
4 coal conversion projects to help achieve gasification
by 2030: Joshi
Privatisation is the way forward to regulate coal industry hit by
price hike, shortages, say experts
Tata Steel arm to buy govt stake in NeelachalIspat for
Rs 12,100 crore
Restrictions on iron ore industry hampers socio-economic growth of Karnataka
Amendment in mineral auction rules will encourage
more participation: Govt
Current round of commercial coal block auction got good
response: Coal secy
Govt may push more reforms in mining sector
'very shortly': Joshi
Steel ministry panel calls for exploration of
manganese ore reserves
Year-end Review-2021: Centre takes measures in mining sector to facilitate ease of doing business
Brazil's Vale sells coal assets to Jindal's Vulcan
Minerals for $270 mn
Centre gets bids for Neelachal Ispat, sale moves to
'concluding stage'
Bihar govt to allow exploration of mineral reserves
worth Rs 14,594 cr
Govt offering up to 50% discount to commercial
miners for coal gasification
2021 Review of Indian Mining Sector
4th Tranche of Auction for Commercial Mining of Coal – Technical Details (99 Coal Mines)
Government panel approves mining on non-forest land
without lease clearance
Government panel approves mining on non-forest land
without lease clearance
Odisha government to auction six more mineral blocks
The document provides an analysis of the Mines and Minerals (Development and Regulation) Amendment Act 2021 in India. Some key points:
- The amendment aims to simplify mining operations in India by increasing leniency in the industry and enhancing efficiency.
- It allows captive mines to sell up to 50% of minerals produced after meeting end-use plant needs. It also allows statutory clearances to be transferred with mining leases.
- Private entities are now eligible to undertake mineral exploration, aimed at increasing exploration.
- Other changes include non-exclusive reconnaissance permits, definitions added around production and dispatch, and lapsing of rights for some concession holders.
- The amendment seeks to boost the mining sector
1. Govt looks to further amend MMDR Act
Coal ministry mulls scheme to allow coal block owners to
surrender mines.
Odisha Iron Ore Mine Block Auction Summary—Phase II
Unlocking Huge Potential of Mineral Exploration;
Odisha’s decision to auction virgin mines raises environmental concerns
‘Single window’ process for all environment clearances on anvil
A possible link basin between Bamer basin & Jaisalmar Basin
and minerals of economic importance - V.P. Laul
Field work experience in Guyana (South America) for
Gold – A travelogue - Dr. Vivek Laul
Workshop on Enhancing Mineral Exploration Through National
Mineral Exploration Trust (NMET)
Need for increase in mineral exploration activities in
eastern States, says Centre
Odisha to offer five more mines for auction
Bid Takers or Market Makers? The Effect of Auctioneers
on Auction Outcomes - Mr. Mihir Kumar Senapati
MMDR amendment bill 2021 a game changer for natural
resources sector: Anil Agarwal, Chairman, Vedanta
Large stocks of limestone in Jaisalmer
Limestone's at different stratigraphic levels in Jaisalmer basin
and their applications - V.P. Laul
Mining: Digitisation can wait no longer
Gold Reserves In India: Min Of Mines Informs Parliament
Largest Resources Located In Bihar
India launches lithium exploration
Odisha issues notice inviting tender for e-auction of
11 mineral blocks
Sustainable growth of mining & metal industry:
A key to achieve $5 tn vision
1. What lies beneath: Mineral mining in India
2. Understanding the Mines and Minerals (Development and Regulation) Amendment Act, 2021
3. Centre usurping powers of mineral-rich states by amending Mines and Minerals Act
4. Iron Ore Pricing - A Juggernaut - By Mantu Biswas
5. A SIGNIFICANT SOURCE OF STEEL GRADE LIMESTONE IN LOWER TERTIARY SEQUENCE, JAISALMER DISTRICT, RAJASTHAN Discovery, investigations, resources and mineability - By V.P. LAUL
6. MMDR, Amendment Act 2021, Mining Industries Perspective
7. India to explore if there can be co-development of mining and ecology
8. Government Likely To Frame Policy On Project Financing In
Coal Mining: Official
9. Odisha Mining industries seek public hearing through online mode
10. GOA: Mining corp before May 30
11. India’s Iron Man: The Unsung Pioneer Who Made JN Tata’s
Industrial Dream A Reality!
12. Amendment- 21 astructured approach to revamp mineral sector
13. IMPACT OF COVID-19 ON INDIAN MINING INDUSTRY: A
SPOTLIGHT - Abhay Kumar Soni
India’s new mining reforms explained
India’s mining industry is currently going
through it’s greatest legislative shake up
in a generation, with India’s Government
claiming that reforming the sector is vital
for the country’s economic growth. We
look at what India’s mining reforms
could mean for the industry.
Speaking at the Global Mining Summit in
December 2020, India’s Minister of
Mines Pralhad Joshi reaffirmed the na-
tion’s commitment to “structural re-
forms” to its mining sector, “to increase
participation of the private sector in min-
eral exploration and redefine the norms of
exploration for auction of mineral blocks,
to ensure a seamless transition from ex-
ploration to production”.
Mining reform: What the government got right…
Bolstering the ongoing mining reforms
India’s mining reforms juggernaut continues despite concerns
Did Ministry of Mines Disregard Critical Suggestions
on Mining Reforms?
One way to make Bharat, Atmanirbhar is be self reliant in
mineral resource by making Industry friendly policy---FIMI
Saltpetre & saline groundwater of Nagaur- Ganganagar area (Rajasthan) -New possible targets for potash salts and other evaporites - V.P. Laul
Role of private explorers in mineral exploration
to make India truly atmanirbhar – by Uday Pratap Singh
Govt plan to take over mine auctions faces
opposition from a few states
Coal India not to give a push to labour intensive
new mines: Chairman
Long-term impact of Budget on Metals & Mining sector –
A review of last two decades
'Discriminatory': Goa in Supreme Court on mining
leases renewal cancellation
Non-coal mining leases: Pace of auction slows in 2020-21
Workshop on ‘Enhancing Exploration through NMET’ organised
Mountain With 60-90% Gold Soil Discovered In Congo, Villagers Flock With Shovels
Mining sector — unburdening the legacy issues
To boost mineral exploration, GSI developing repository of
all geological data of country
Govt assures Coal India of 'full support', stresses learning
'new things'
Decade after scam, Odisha imposes penalty of ₹2056 cr
for illegal mining
Three years on, Goa's stalled mining sector still gathers rust
Boost to production and pvt investment as mining
reforms get green signal
Deep mining: Over 500 non-coal mineral blocks up for grabs
Prospects of Phosphorite in Jurassic Sequence of Jaisalmer
Basin, Western Rajasthan
How Long Will Coal Remain King in India?
India’s mining reforms ignore the livelihood and rehabilitation of
those affected by the industry
Policy Watch: India’s blighted vision about gold mining..
Policy Watch: A colonial outlook has stunted India’s gold-mining sector
India’s mining sector to witness reforms, flurry of activities in 2021
Goa’s iron ore mining stuck at a crossroad
Mining and Exploration: Socio-Economic Development
Govt looks to acquire forest land for mining in Korba
Commercial mining won’t unsettle us: Coal India chief
China's ban on Australian coking coal to benefit India's steel
producers, says India Ratings and Research
Financing commercial coal mining: Banks to look into
multiple factors
Why SBI is under the spotlight to reject a billion-dollar loan to Adani’s Australia mine
Deocha Pachami coal block will generate 1 lakh jobs:
Mamata Banerjee
No Bauxite mining in Visakhapatnam Agency, panel exploring other options
Government moots raising floor price for iron ore as steel prices shoot up
The Indian government plans to announce new mining reforms within the next 6-8 weeks. This will include opening up commercial coal mining to private players and auctioning 500 mineral blocks. The coal ministry is expected to award leases for 19 coal mines auctioned for commercial mining within 7-10 days of due diligence. These mines have a combined capacity of 50 million tonnes per year and were bid on primarily by companies like Adani, Aditya Birla, Vedanta, and Jindal. The new reforms aim to enhance productivity, reduce environmental impact, and make mining operations more sustainable to support Aatmanirbhar Bharat.
The mining industry has responded swiftly to COVID-19 by prioritizing health and safety, and supporting economic recovery. Companies have collaborated through the ICMM to share guidance and accelerate learning. Key themes include health and safety as a fundamental value, communicating mining's role, and commitment to building forward better. Companies have implemented strict protocols like screening, testing, distancing and increased hygiene to safely operate. The response necessarily differs across countries and regions based on varying guidance, and continued information sharing is important.
Whose minerals are they anyway?
Over the past few months, the government of India has been focus-ing on the mining sector to revive the country’s economy but it is feared that it could mean a troubled time ahead for communities in-volved and environment. However, the major question is whether such a push is in line with the National Mineral Policy 2019 of India which talks about the concept of inter-generational equity as far as mineral wealth is concerned. The organisations involved with the communities that are impacted by the mining believe that protection and welfare of tribal people and poor are rarely the focus area of mining plans which are heavily fo-cused on higher revenues. To tackle the already slowing econ-omy, whose condition further dete-riorated after COVID-19 pandemic, the Indian government is pushing for more mining. But is this push for more revenue in line with the prin-ciples in India’s mining policy that talk about sustainable mining and minerals being a part of shared in-heritance with future generations? Over the past few months, Prime Minister Narendra Modi and vari-ous other ministers in his govern-ment have emphasised that the push for mining including coal will result in additional investments and reve-nue worth hundreds of billions of rupees. The government has already unveiled more reforms in the min-ing sector.
Contents & Articles
• India Desperately Needs the Mining Industry : By Jayant Bhandari
• Indian Mineral Exploration Sector “Potential & Promise” & Reforms Needed: By Robert Nigel Chapman
• Point of View towards Proposed Mining Reforms : Abhinav Sengupta
• India proposes overhaul of mining sector amid concerns over legality and social impact
• Mining reforms: Industry vocal against ‘premature’ repeal of existing leasesrio planning matters more than ever in mining
• Steel companies, miners tussle over Mining Act amendment
• Need to streamline regulatory process to facilitate timely approvals for mining projects: FIMI
The document discusses reforms needed for India's mining sector based on inputs from the mining industry. It calls for simplifying rules to rapidly grow mineral exploration by classifying minerals into fewer categories. It urges clearing long pending license approvals to boost the economy. It recommends lowering entry barriers for exploration by making it easy to obtain concessions online with secure tenure. It proposes liberalizing rules around transfers, joint ventures, and fundraising to bring India's regulatory environment in line with global best practices for a standalone exploration industry.
Here is Gabe Whitley's response to my defamation lawsuit for him calling me a rapist and perjurer in court documents.
You have to read it to believe it, but after you read it, you won't believe it. And I included eight examples of defamatory statements/
El Puerto de Algeciras continúa un año más como el más eficiente del continente europeo y vuelve a situarse en el “top ten” mundial, según el informe The Container Port Performance Index 2023 (CPPI), elaborado por el Banco Mundial y la consultora S&P Global.
El informe CPPI utiliza dos enfoques metodológicos diferentes para calcular la clasificación del índice: uno administrativo o técnico y otro estadístico, basado en análisis factorial (FA). Según los autores, esta dualidad pretende asegurar una clasificación que refleje con precisión el rendimiento real del puerto, a la vez que sea estadísticamente sólida. En esta edición del informe CPPI 2023, se han empleado los mismos enfoques metodológicos y se ha aplicado un método de agregación de clasificaciones para combinar los resultados de ambos enfoques y obtener una clasificación agregada.
Essential Tools for Modern PR Business .pptxPragencyuk
Discover the essential tools and strategies for modern PR business success. Learn how to craft compelling news releases, leverage press release sites and news wires, stay updated with PR news, and integrate effective PR practices to enhance your brand's visibility and credibility. Elevate your PR efforts with our comprehensive guide.
04062024_First India Newspaper Jaipur.pdfFIRST INDIA
Find Latest India News and Breaking News these days from India on Politics, Business, Entertainment, Technology, Sports, Lifestyle and Coronavirus News in India and the world over that you can't miss. For real time update Visit our social media handle. Read First India NewsPaper in your morning replace. Visit First India.
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Acolyte Episodes review (TV series) The Acolyte. Learn about the influence of the program on the Star Wars world, as well as new characters and story twists.
An astonishing, first-of-its-kind, report by the NYT assessing damage in Ukraine. Even if the war ends tomorrow, in many places there will be nothing to go back to.
1. Geonesis
OCTOBER 2018
(A GEMCO KATI INITIATIVE)
Indian Mining & Exploration Updates
VOLUME 5,ISSUE 11
INDIAN MINERAL EXPLORATION POLICY
&
REALITY DIVERGENCE
2. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 1
OUTLOOK FOR METALS SECTOR PROMISING: CENTRUM RESEARCH
A strong air of optimism rules the outlook for metals sector as
a whole led by solid demand environment, favourable pricing
scenario, strong cash flow generation and focus on deleverag-
ing to improve the balance sheet, according to Centrum Re-
search. The brokerage hosted an exclusive investor conference
titled ‘The Metal Medley’ on the
metals sector in Mumbai recently,
which brought together some 16
companies covering all sub-sectors
like ferrous, non-ferrous, pipes,
refractories, graphite electrodes
and other ancillaries.
Listing out the highlights of the
meet, Centrum said in a report that
large cap ferrous names sounded optimistic on demand and
signaled strong focus on capacity creation. While investors
were concerned that deleveraging would be taking a backseat
with renewed focus of the companies in undertaking capex for
both organic and inorganic expansions, companies sounded
confident of balancing the cash flows and also expected the
current cycle to sustain in medium term. Pipe companies were
confident about sustenance of strong order inflow and robust
earnings which is expected to result in strong cash flows. This
will be utilised for either deleveraging or expansion of product
basket, the report added. Ferrous consumables like electrodes
and refractories indicated robust volumes and strong earnings
growth driven by strong un-
derlying demand and solid
entry barriers in their busi-
nesses, while strong midcap
ferrous companies were in the
midst of finalising their ex-
pansion plans as they boast of
strong balance sheets and are
running at optimum utilisa-
tions, it added Sharing its recommendation, the Centrum report
said: “In largecaps, we remain positive on Tata Steel and
Hindalco in ferrous and nonferrous pack respectively. We like
Coal India in the large cap mining space. Among midcaps, we
like Vesuvius India and IFGL and are positive on select ferrous
midcap stocks like Tata Metaliks and Kirloskar Ferrous due to
their strong business model and growth prospects.”
USHA MARTIN BUY TO DIVERSIFY TATA STEEL'S PRODUCT RANGE:REPORT
Tata Steel's acquisition of Usha Martin's speciality steel busi-
ness will improve the share of long steel products in its busi-
ness at no additional leverage, says a report.
Tata Steel, which has a capacity of 27.5 million tonne, has a
disproportionate skew towards flat steel products now while
Usha Martin has an integrated steel-making business with
predominantly long steel products
which get better margins.
In one of the largest debt resolution
plans outside the NCLT process, the
Usha Martin board had signed an
agreement with Tata Steel on Sep-
tember 22 to sell the Kolkata based
company's steel and wire rope busi-
ness for a cash consideration of up
to Rs 4,300-4,700 crore in a slump
sale.
Usha Martin, which had a debt of
over Rs 3,700 crore and a revenue of
Rs 3,441 crore in the last fiscal year, had informed the exchang-
es that the sale would bring down the debt significantly. SBI is
the lead banker for the group's debt.
"At the proposed transaction value of Rs 4,300-4,700 crore, we
do not expect the acquisition to have a material negative im-
pact on Tata Steel's financial profile or leverage. We expect the
company to pay in cash for the acquisition, which is through a
slump sale. The acquisition will also improve its product port-
folio," S&P said in a note Tuesday. Given the robust prices and
strong volume outlook for the domestic steel market, S&P
expects "Tata Steel to continue with its strategy of bidding for
bankrupt steel assets as it strives to maintain leadership in a high
growth market."
Last Saturday, Tata Steel had said it had agreed to snap up the
Usha Martin said they fund use from slump sale But Monday,
the promoters Basant and Prashant Jhawar, sought transparency
on fund utilisation from the board of
the company saying as of now there is
no clarity on who'll get how much
from the sale proceeds.
"Though we are encouraged by the
Tatas signing an agreement with the
current management of Usha Martin,
the end use of the funds is opaque,"
Usha Martin founder Basant Jhawar
and his son Prashant, who together
own 25 per cent stake in the company,
said in a statement Monday.
The deal is expected to be completed
over the next two-three quarters. Usha Martin's steel business
comprises the specialised one-million tonne alloy-based manu-
facturing capacity in long products segment in Jamshedpur, a
producing iron-ore mine, a coal mine under development and
captive power plants. Usha Martin is amongst the top five wire
rope manufacturers in the world and a leading speciality steel
producer in the country. In May, Bamnipal Steel, a wholly-
owned subsidiary of Tata Steel, completed the acquisition of
controlling stake of 72.65 per cent in Bhushan Steel, for a consid-
eration of Rs 35,200 crore, though the insolvency auction process.
3. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 2
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INDIAN MINERAL EXPLORATION POLICY AND REALITY DIVERGENCE
The Indian government’s ostensible policy is to double miner-
al exploration every year with participation of domestic and
foreign private players, but foreign participation in domestic
non-coal mineral exploration is on a downtrend.
“We are preparing a document for increasing the participation
of the private sector in mineral exploration and [will] even allo-
cate money for certain sectors of private mineral exploration,”
Mines Ministry joint secretary Bipul
Pathak, said in a recent statement.
“ I n m y o p i n i o n m i n e r -
al exploration should double every
year as there is a limit to what the
government can do,” he said.
“To increase exploration the private
sector has to come in and that is the
only way. The government is trying
every level of private participation,
mineral majors and junior compa-
nies from all over the world to come
to India,” Pathak said.
The official was referring to the Mines Ministry working on a
new mineral policy expected to be unveiled within the next two
months with a focus on mineral exploration by the private sec-
tor.
However, despite the optimism over policy initiatives, the reali-
ty is that during 2017/18, foreign direct investment (FDI) in the
Indian mining industry fell to its lowest level in recent years at a
mere $36-million down from a peak of $659-million touched in
2014/15.
The previous FDI low in mining industry was in 2013/14 when it
hit $13-million.
As a share of total FDI inflow into the country, the miningsector
accounted for just 0.8% of the total FDI during 2017/18 against a
share of 2.06% in 2014/15, and an indication
of unattractiveness of the domes-
tic miningindustry to overseas investors.
This, even though 100% FDI is permitted by
the government in all miner-
al exploration and mining except for atomic
minerals and few other strategic minor min-
erals.
The proposed new mineral policy will aim
to address issues like exploration companies
not getting right of first refusal at the time
of auctioning of a mineral block discovered
by the exploration company, and
a composite exploration and mining licence was expected to be
put on offer under the new policy.
However, industry analysts said that measures like these were
unlikely to address the key issues that kept global players away
from investing in the country, such as taxation, which stood at
64% – the highest globally.
RAJASTHAN SITS ON 20,000 MT OF POTASH RESERVE BUT EXPLORATION
CAUGHT IN RED TAPE: STUDY
Despite having the world’s biggest reserves of potash in Raja-
sthan, India has failed to explore the huge deposit even 45 years
after its discovery, costing US$1,400 million every year to im-
port the mineral, according to the Central Institute of Mining
and Fuel Research (CIMFR), Roorkee.
Rajasthan sits over nearly 20,397 million
tonnes (MT) of probable potash deposits,
mostly concentrated in Nagaur-
Ganganagar basin of the north-west Raja-
sthan, almost three times the world re-
serve, according to Indian Minerals Year
Book-2016.
According to a research paper published
by CIMFR, potash exploration was carried out by the Geologi-
cal Survey of India (GSI) from 1974 to 1991 in Nagaur, Churu,
Bikaner, Hanumangarh and Ganganagar districts. GSI reported
a 350-km-long and 200-km-wide potash-bearing deposit. This
basin has been considered the southeastern extension of the salt
range of Pakistan.
Based on this exploration, GSI identified
deep-seated (about 600 to 740 metres from
the surface) occurrences of potash miner-
alisation in Nagaur-Ganganagar basin,
sufficient for next 4,000 years with the
current annual requirement of 4.6 MT.
Experts believe that the available grades of
potash deposits are based on the core re-
covery. GSI asdditional director general
(Continued on page 3)...
4. Page 3
VOLUME 5, ISSUE 11 — OCTOBER 2018
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Brij Kumar said the policy for exploration is yet to be finalised.
“GSI has just completed the drilling and the amount of deposits
is also not calculated. The numbers available are from tentative
calculation.” He refused to share further details, saying “we are
working on it.”
Sources said the Mineral Exploration Corporation Limited
(MECL), an autonomous public sector company under the un-
ion ministry of mines, is working on identifying blocks at a few
sites.
Union and state government officials, sources said, hold meet-
ings with the mining department, experts from the Bureau of
Mines and agencies interested in exploration, and submit their
recommendations but nothing tangible in terms of prospecting
has happened.
Even Niti Aayog held a discussion, titled ‘Prospecting of potash
deposits in India -- MMDR Act-2015 provisions’, on May 9 last
year with officials of Rajasthan, ministry of mines, representa-
tives from the Federation of Indian Mineral Industries (FIMI)
and scientists from CIMFR, and expressed concern over the
delay in intensive exploration.
According to the minutes of the meeting – HT has access to this
– held under the chairmanship of Dr VK Saraswat, Niti Aayog
member, he said casual approach is being adopted by the min-
istry of mines and department of mining and geology, Raja-
sthan, in the grant of prospecting licences.
“Failure and abnormal delay in bringing up the deposit for
commercial exploration has resulted in importing the mineral
costing Rs 10,000 crore per year,” Saraswat said.
Sources said potash has not been covered under the schedules of
the MMDR amendment act, 2015 which makes the case compli-
cated as to who will grant the prospecting licence – the Centre or
the state government.
Additional director, state department of mines and geology, RK
Nalwaya informed the Niti Aayog and experts that without clear
-cut instructions, the matter cannot be processed. “Due to lack of
mineral contents for auctions of prospecting licence, it is mandat-
ed to establish at least a G2 level of exploration to indicate the
mineral resources; Rajasthan government is not in position to
undertake auction,” Nalwaya said.
Rajasthan has, however, decided to mine potash in 878 hectares
area in Hanumangarh district through a joint venture involving
51% stake of the State Mines and Minerals Limited, according to
a notice inviting expression of interest (EoI).
For selecting a partner for the remaining 49% stake, presenta-
tions were made by the Steel Authority of India, Rio Tinto, Zuari
Industries Ltd, Raj Mineral Ltd, and Kaushalaya Infrastructure
Development Corp but no significant progress has been made.
Dr JK Mahnot, chief scientist with CIMFR, said the state govern-
ment has not risen above mining building materials. “Mining
policies made by every government dominates the mining auc-
tion politics. Thus valuable research outputs continue to lie in
cold storage.”
Aparna Arora, state principal secretary of the mines and petrole-
um department, asked for questions on email but refused to re-
spond to the queries
KEY MINERS IN ODISHA LOOK TO RAMP UP IRON ORE PRODUCTION ON FIRM DEMAND
Key merchant miners in Odisha are looking at scaling up their
iron ore mining capacities because of robust demand. Apart
from the firm demand from end-use industries, buoyancy in
prices is spurring miners to expand out-
put.
KJS Ahluwalia, a major non-captive
miner, has sought green clearance to
raise capacity at its Nuagaon iron ore
mines from 5.62 million tonnes per an-
num (mtpa) to 7.99 mtpa. The miner is
also keen to install a beneficiation plant
with two-mtpa capacity along with
crusher and screen plants. The facilities
are to come up within the miner's leasehold area.
Aditya Birla Group-owned Essel Mining & Industries Ltd, too,
has proposed to enhance the capacity of its Koira iron ore mines
from four to six mtpa. The public hearing for the proposed ex-
pansion is scheduled for October 30. Be-
sides,
Thakurani Iron Ore Mines, under the lease-
hold of Kaypee Enterprises, has sought to
expand its production capacity from 5.5 to
7.99 mtpa. "Demand continues to be strong
in both the domestic and international mar-
kets. Miners are scaling up to meet the en-
hanced demand as outlook is firm", said a
mining industry source.
(Continued on Page 4)...
5. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 4
According to a recent report by CARE Ratings, iron ore produc-
tion in the country is projected to strengthen by two-to-five per
cent in this financial year on
stable demand from infra-
structure and automobile
industries. Iron ore produc-
tion in the last financial
year was 210 million
tonnes, a growth of nine per
cent year-on-year.
Of late, iron ore prices have
been on a rampage in the
domestic market. NMDC
Ltd, the largest producer, announced its second price hike for
September recently. The central PSE raised the price of lumps by
8.4 per cent to Rs 3,850 per tonne, and those of fines by 6.43 per
cent to Rs 3,310 a tonne. The company ascribed the price hike to
lower production due to rains, robust demand for ore and firm-
ing up of steel and sponge iron prices. Iron ore fines prices have
soared 80 per cent in Odisha between June and September de-
spite international prices staying range bound.
Fines prices till the last round of hike soared from Rs 1,862 to Rs
3,350. Lumps prices, too, had moved up 29 per cent in the period
under review, increasing from Rs 4,094 to Rs 5,300 per tonne. By
contrast, prices of benchmark
Fe-62 grade fines inched up
moderately from $63.95 to
$66.2 per tonne. Some end-
user industries in Odisha feel
merchant miners were pres-
suring iron ore prices by pro-
ducing below the approved
EC (environment clearance)
limits. Odisha is the biggest
iron ore producer- the state
logged 102 million tonnes of output in 2017-18. The state has an
approved iron ore mining capacity of 163.8 mtpa. Of this, the
merchant or non-captive lessees have approvals to mine 118.35
mt. In FY18, 26 non-captive miners in the state despatched 67 mt,
denoting 65.79 per cent of their approved EC (environment clear-
ance) limit of 101.96 mt. Iron ore despatches have been well be-
low the agreed EC limits as between FY14 and FY18, they never
exceeded 70 per cent.
10 STATES OFFER 102 MINERAL BLOCKS FOR AUCTION IN FY19, JHARKHAND TOPS LIST
Ten mineral-laden states have queued up 102 blocks for elec-
tronic auctions in this financial year. With 20 blocks, Jharkhand
has the largest number of deposits on offer. Rajasthan comes
second with 16 blocks, while Madhya Pradesh and Maharashtra
have readied 13 each.
Among the queued blocks, 42 are of limestone, followed
by bauxite (19), manganese ore (11), copper (8), iron
ore (6), graphite (6), zinc (3) and two each for emerald and gold.
Since the enactment of the amended Mines and Minerals
(Development & Regulation), 2015, and framing of Mineral
Auction Rules, 50 blocks have been successfully auctioned. Kar-
nataka has auctioned 12 iron ore blocks, the most by any miner-
al-rich state. Six blocks have been auctioned apiece in Raja-
sthan, Jharkhand and Madhya Pradesh. The new MMDR Act
killed the long-standing practice of discretionary allotments of
mineral leases, switching to a transparent system of allocations
through auctions.
Data by the Union mines ministry show total revenue to accrue
to states from these auctioned blocks over the 50-year leasehold
tenure is estimated at Rs 1.81 trillion. The revenue projection
envisaged includes royalty and contributions by lessees to-
wards District Mineral Foundation (DMF) and Nation-
al Mineral Exploration Trust (NMET).
Auctions of mineral blocks have hit the slow lane. Rules man-
date that only those blocks that have been explored up to the
G2 level are eligible for online auctions. Given the sluggish pace
and scale of mineral exploration in the country, numerous iden-
tified blocks do not make the grade for auctions. Steel and other
end-use industries have been feverishly pitching for relaxing
this norm, which has held up the pace of auctions. They feel the
G2 level norm is a detriment to the smooth conduct of
e-auctions by states. Instead, they have suggested that the rigidi-
ty of the G2 norm needs to be reviewed since there is a provision
contained in Rule 8 of Minerals (Evidence of Mineral Contents)
Rules, 2015. As a remedy, they have suggested that mineral
blocks of adequate dimensions can be put up for auctions and
the onus should rest on the lessee to ensure G1-level compliance
within five years.
"A lot of technological advancement in geophysical, geochemical
and aerial electromagnetic survey with deep penetration level
has proved the existence of mineral resources below surface up
to 70-80 per cent accuracy level. Even G2 level exploration does
not provide reserve estimation so accurately," said a senior offi-
cial with a steel company.
Most of the available mineral blocks in the country could not be
upgraded to G2 or G3 level because of constraints in exploration.
India figures among the least explored countries where mineral
exploratory activity is limited to two central government agen-
cies -- Geological Survey of India (GSI) and Mineral Explora-
tion Corporation Ltd (MECL). Though the state directorates
of mining and geology are also tasked with exploration work,
most of them are wanting in expertise, manpower or both.
Mineral block auctions in the pipeline
Jharkhand: 20 Rajasthan: 16
Madhya Pradesh: 13 Maharashtra: 13
Chhattisgarh: 9 Gujarat: 8
Karnataka: 8 Assam: 4
Telangana: 3
Total: 102.
6. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 5
JSW STEEL, KIRLOSKAR FERROUS WIN IRON ORE MINES IN KARNATAKA AUCTION
Five iron ore mines were auctioned in Karna-
taka over the past three days. JSW
Steel and Kirloskar Ferrous were among the
winners, as was Minera Steel & Power.
Names of the other two were not available.
The auction started on Tuesday and contin-
ued till late evening on Thursday. The total
capacity of these mines is 5.73 million tonnes
per annum.
Industry sources say Mysore Minerals Ltd
was bid for by JSW Steel for 95.2 per cent over
the base price. Minera and Kirloskar bagged Nidhi Min-
ing and Bharat Mines & Minerals, respectively.
The base price is based on estimated
reserves.
In April 2013, the Supreme Court had
directed the state government to can-
cel 51 C-category leases, for involve-
ment in illegal mining. And, to re-
allot these to end-users through a
transparent bidding mechanism.
The Centre recently decided to put
eight more mines on e-auction in Kar-
nataka. These five had qualified. Each
mine is to get at least three applications to qualify for auctioning.
COAL INDIA, SINGARENI COLLIERIES COMPANY OFFER POWER FIRMS OPTION
TO SWAP FUEL SOURCES
Coal India and Singareni Collieries Company are offering in-
dependent power producers the option of swapping their
sources of fuel supply to cut the cost of transportation and
generation.
The Central Electricity Authority will oversee the one-time
offer for power generators willing to pass on the savings to
customers. This would also require regulatory approval.
“The plan is to change source of coal
for as many independent power
producers as possible, keeping the
quality of coal at almost same levels
after the swap. It is expected to re-
duce distance over which coal is
sent, reducing transport costs, cost
of generation and finally electricity
bills for consumers,” said a senior
Coal India executive.
The scheme is being offered to pow-
er companies that receive coal from
state-owned suppliers by rail. At
present, coal supplies are based on allocations made over the
years to power plants and they are not necessarily the shortest
distance between the mines and the generation units.
A similar scheme for state-owned power units helped save
almost Rs 6,000 crore three years ago. The scheme is not being
offered to plants that receive coal by road as they are already near
pitheads.
If several plants compete for the same pithead, the one with the
largest cost savings would be offered the swap. The saving would
be assessed using a CEA formula that also accounts for change in
energy content if the source is changed.
Coal currently travels 477 km from a
mine to a plant, with some power sta-
tions located up to 1,000 km away.
The voluntary scheme would work on
the basis of availability of mines and a
consumer’s willingness to accept the
quality of coal from another source, the
executive said. “An interministerial task
force has been formed to resolve issues
private companies may face while im-
plementing it,” the executive said.
Coal India, based in Kolkata, produces
about 84% of the country’s coal. Singare-
ni Collieries operates in four districts of northern Telangana and
supplies coal to most customers in the state and parts of south
India and Maharashtra. The company produced 62.01 million
tonnes of coal during 2017-18.
MINERAL MINING RIGHTS LIABLE TO GST: AAR
Mineral mining rights granted by the government will be lia-
ble to the goods
and services tax (GST) at the rate applicable on the supply of
the extracted raw material,
the Haryana Authority for Advance Rulings has ruled.
The decision should ease the mining sector’s tax burden and
clear the ambiguity over whether such rights are liable to be
taxed at the rate applicable to the supply of these minerals or at a
higher residual rate of 18%.
The ruling was given on an application filed by Pioneer Partners,
engaged in mining of boulders and extraction of minerals, which
had
secured a mining licence from the Haryana government in lieu of
(Continued on page 6)...
7. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 6
which royalty was being paid.
The applicant sought to know whether such royalty payment on
account of mining rights was liable to tax in the hands of the
applicant under the reverse charge mecha-
nism — where the recipient of goods/
services is required to pay tax instead of
the supplier — and if so, the rate applica-
ble — 5% valid on supply of minerals or
the residual 18%.
The AAR held that such rights granted by
the government would qualify as a service
liable to tax at the rate applicable to the
supply of the mineral being mined, which
is 5% in the present case.
In light of the specific notification providing for reverse charge
liability on services received from the government, it also held
that the applicant must pay tax on such royalty or rent paid.
In many cases, GST paid became a cost for the businesses where
the products were either outside the ambit of the tax — such as
petroleum products — or were used for activities exempt from
GST, such as power generation.
Companies that have paid tax on such rights at 18% may explore
the possibility of claiming a refund of the
excess amount if it has not been claimed as
input credit. “This is one of the rare rulings
in favour of industry and it would be inter-
esting to see if the authorities would appeal
against it or consider making changes in the
rate schedule itself,” said Siddharth Mehta,
indirect tax partner at PwC India.
“Royalty paid to the government for vari-
ous rights, amount paid for telecom spec-
trum, etc., are generally perceived as non-
taxable payments by dealers. This ruling
obviates doubts about their taxability and has rightly held that
royalty paid for mining rights is eligible to tax,” said Harpreet
Singh, a partner at KPMG.
The Authority for Advance Rulings is a quasi-judicial body that
assesses the potential tax liabilities for transactions beforehand.
HCL GETS GOVT NOD FOR MINING EXPANSION
State-owned Hindustan Copper Ltd (HCL) has received govern-
ment approval to increase its mine expansion plans to 20 million
tonne from the earlier planned level of 12.4 million tonne at an
investment of Rs 5,500 crore in the next six years.
“Our mining capacity will be increased by around six times
from its present production capacity
in next six years. Total capital outlay
of the above expansion projects is Rs
5,500 crore,” HCL chairman Santosh
Sharma told shareholders during its
51st annual general meeting.
To meet the company’s funding
needs for these projects, Cabinet
Committee on Economic Affairs, has
already given its approval to HCL
for issuing some 13,87,82,700 fresh
equity shares to the extent of 15% of
paid up equity capital of face value
of Rs 5 each through the Qualified Institutional Placement (QIP)
route. HCL will use the proceeds of QIP to meet its capex plan,
the official said.
He said about half of the work on the company’s flagship pro-
ject, Malanjkhand underground mine of annual capacity of 50
lakh tone has been completed. Plans have been firmed up to
commence ore production from the underground mine in the
coming fiscal year.
Similarly, tenders have been issued for construction and opera-
tion of Chapri- Sidheswar, a new mine at Ghatsila with an annual
production capacity of 1.5 million tonne. HCL has also earmarked
Rs 200 crore has to undertake in-depth
exploration across the company’s mining
lease areas, he added.
While investment in upcoming infrastruc-
ture projects and increased government
spend on housing, rural and railway elec-
trification, is tipped to raise rate of
growth of copper consumption to around
6-7% in 2018, the domestic copper indus-
try is facing a major challenge due to a
surge in imports of refined copper from
the countries we have Free Trade Agree-
ments. The imports have increased to
around 2.5 lakh tonne in 2017-18 or roughly around a third of the
domestic demand from 65,000 tonne in the 2010-11
While refined copper production during 2017-18 was at 8.43 lakh
tonne as compared to 7.98 lakh tonne in FY 2016-17 the consump-
tion of refined copper was around 6.6 lakh tonne in 2017-18 com-
pared to 6.5 lakh tonne in 2016-17.
HCL GETS GOVT NOD FOR MINING EXPANSION
State-owned Hindustan Copper Ltd (HCL) has received gov-
ernment approval to increase its mine expansion plans to 20
million tonne from the earlier planned level of 12.4 million
tonne at an investment of Rs 5,500 crore in the next six years.
“Our mining capacity will be increased by around six times
from its present production capacity in next six years. Total capi-
tal outlay of the above expansion projects is Rs 5,500 crore,” HCL
chairman Santosh Sharma told shareholders during its 51st an-
nual general meeting.
(Continued on page 7)...
8. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 7
To meet the company’s funding needs for these projects, Cabi-
net Committee on Economic Affairs, has already given its ap-
proval to HCL for issuing some 13,87,82,700 fresh equity shares
to the extent of 15% of paid up equi-
ty capital of face value of Rs 5 each
through the Qualified Institutional
Placement (QIP) route. HCL will use
the proceeds of QIP to meet its
capex plan, the official said.
He said about half of the work on
the company’s flagship project,
Malanjkhand underground mine of
annual capacity of 50 lakh tone has
been completed. Plans have been
firmed up to commence ore produc-
tion from the underground mine in
the coming fiscal year.
Similarly, tenders have been issued for construction and opera-
tion of Chapri- Sidheswar, a new mine at Ghatsila with an an-
nual production capacity of 1.5 million tonne. HCL has also
earmarked Rs 200 crore has to undertake in-depth exploration
across the company’s mining lease areas, he added.
While investment in upcoming infrastructure projects and in-
creased government spend on housing,
rural and railway electrification, is
tipped to raise rate of growth of copper
consumption to around 6-7% in 2018,
the domestic copper industry is facing
a major challenge due to a surge in
imports of refined copper from the
countries we have Free Trade Agree-
ments. The imports have increased to
around 2.5 lakh tonne in 2017-18 or
roughly around a third of the domestic
demand from 65,000 tonne in the 2010-
11.
While refined copper production dur-
ing 2017-18 was at 8.43 lakh tonne as compared to 7.98 lakh tonne
in FY 2016-17 the consumption of refined copper was around 6.6
lakh tonne in 2017-18 compared to 6.5 lakh tonne in 2016-17.
COMMERCIAL COAL MINING IN INDIA POTENTIALLY HEADING FOR BACKBURNER
Signs are emerging that commercial coal mining in India, sans
any end-use restrictions and permitting free merchant sale,
will be put on the backburner, if not die a slow death altogeth-
er.
Although no official acknowledgement of the same is forth-
coming from any of the departments involved in opening up
of the coal mining sector to private miners, the fact is that gov-
ernment has not initiated any
moves to even start the process of
auctioning coal blocks to private
miners, despite the rules having
been changed six months ago.
Industry sources said that govern-
ment internal memos have been in
circulation that operational subsidi-
aries of Coal India Limited (CIL),
which accounted for more than 80%
of domestic coal supplies, were not
happy at the imminent advent of
private coal miners as competitors
and have communicated that com-
petition risked impacting on production levels of these CIL
subsidiaries and, in fact, on the long-term financial health of
these government mining companies.
At the same time, all trade unions representing the workforce
engaged in the domestic coal mining industry have opposed
entry of private coal mining, which they fear will result in the
privatisation of the coal sector over the long term
An indication of government’s backtracking on opening up of
the coal sector is that the Coal Ministry has rejected a proposal
from a high-power government committee that suggested that
all coal mines, except for those earmarked for specific sectors like
steel, cement and power, be put up for auction with private min-
ers eligible to bid.
A section in the government said that entry of private miners to
the coal sector entailed political risk, as privatisation as part of
overall economic reforms still did not enjoy unanimity across the
political spectrum.
They said that with Indian national
elections slated next year, no govern-
ment could risk the political fallout
from holding coal block auctions for
private investors and the risk of any
direct industrial action from trade un-
ions in CIL, which would not only
worsen the existing coal shortage in
the country, but also alienate a signifi-
cant number of voters in the coal in-
dustry.
Besides the political risk, a poor re-
sponse from investors if auctions were
to be held now would give the wrong signals about government’s
economic management, in electioneering season, the sources add-
ed.
It was pointed out that response during the first, second and
third tranche of coal block auctioning for captive mining by end-
user industries had evoked a lukewarm response and following
two rounds of auction were cancelled by the government owing
to a lack of response from investors.
Hence, putting commercial coal mining on the backburner, and
ultimately burying it quietly, were options before the government
for both political and economic reasons, the sources said.
9. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 8
Adani group incorporates a
wholly owned subsidiary
"Bailadila Iron Ore Mining Pri-
vate Ltd" as a special purpose
vehicle for Adani Enterprises
Limited (AEL).
"The company has incorporated
a wholly owned subsidiary
namely, "Bailadila Iron Ore
M i n i n g P r i v a t e L i m -
ited" ("BIOMPL") on September
20, 2018," the company said.
AEL is a successful bidder for mine developer-cum-operator
(MOO) for Bailadila Iron Ore
Deposit, Dantewada District,
Chhattisgarh, by NMDC-CMDC.
"As per tender, Iron Ore Mining
Services Agreement (IMSA) has
to be signed within 60 days from
issuance of LOA and AEL may
form 100 per cent owned SPV to
act as the MOO and sign the IM-
SA with NCL and such SPV shall
be formed within 30 days from
the date of issue of the LOA by
NCL," the company said.
ADANI GROUP FORMS NEW SUBSIDIARY BAILADILA IRON ORE MINING
INDIA, RUSSIA DISCUSS WAYS TO DEEPEN COOPERATION IN MINING, AGRICULTURE
India and Russia discussed ways to increase economic coopera-
tion in areas such as mining and geological exploration in gold
and diamond, and agriculture, the commerce
ministry said Tuesday.
The issues were discussed during the meeting
between Russian Deputy Prime Minister Yury
Trutnev and Commerce Minister Suresh Prab-
hu.
Prabhu is in Vladivostok, Russia, to attend the
Far Eastern Economic Forum being held from
September 11-13.
The commerce minister invited regional governors of the Far
East to visit India with business delegations in order to explore
areas of cooperation.
India was the first country to establish a resident consulate in
Vladivostok in 1992.
However, India’s existing engagement
with the region is limited to isolated
pockets, it said.
“In order to bolster the trade ties it is
imperative that connectivity between
India and Vladivostok have to be sim-
plified, affordable and time efficient,”
it said.
It added that ease of connectivity will
not only provide access to the resource rich, unexplored Far East
but will also strengthen India’s geo-political stature.
LOGISTICS COST & INFRA BOTTLENECKS BLUNT INDIAN MINING INDUSTRY'S EDGE
Steep logistics cost and infrastructure bottlenecks are weaning
away the competitiveness of Indian mining.
India's logistics cost as a percentage of its GDP is 14 per cent,
against 10 per cent in America and
Japan, and 11 per cent for the Europe-
an Union. The cost of moving steel in
India is 2.3 times that of China.
Another reason is infrastructure con-
straints. Railway freight traffic has
more than doubled over two decades
while the total route length has grown
by only five per cent. Mineral-laden
areas continue to grapple with
a cramped rail network.
On the roads, congestion is equally pronounced for mineral
movement. National Highways constitute only two per cent of
the network but handle 40 per cent of road traffic.
Ports, another key component of transport infrastructure, are
marked by slow evacuation of cargo, escalating transportation
cost. There are cases when the turnaround time is double the
time at the ports in Colombo or Singapore.
A mining industry source sug-
gests iron ore areas get separate
road networks, as in Australia or
South Africa.
"State governments can become
nodal agencies to create common
facilities for closed-belt conveyors
from a cluster of mines to public
sidings," he said. "Also, one could
envisage a common government
investment programme for a slur-
ry pipeline grid, for the benefit of
multiple players, not a single beneficiary."
A big tax burden is also blunting the mining sector's competitive
edge. The royalty charged on iron ore is 15 per cent, the highest
in the world. Australia has 6.5-7.5 per cent while Brazil has two
(Continued on page 9)...
10. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 9
per cent. It is 0.5-7 per cent in South Africa and 0.5-4 per cent
in China.
In addition, Indian mining entities also must contribute to
their District Mineral Foundation and National Mineral Explo-
ration Trust. With royalty, this adds to 19.8 per cent of the sale
price.
"The royalty regime in India does not promote beneficiation of
low-grade ore, a costly proposition," the source said.
INDIA MUST TAKE CRITICAL MINERALS AS PART OF ITS STRATEGIC GROWTH
AGENDA: EY
The growing use of electric vehicles and renewable energy in
addition to increasing share of televisions, mobile phones in
our consumption basket coupled with the government’s Make
in India initiative with ambitious growth plans in 25 sectors, is
tipped to enhance the need for critical minerals that these
gadgets use. In a just-released report EY has said India must
assess its needs against the supply of these critical minerals
and take it up as a part of its strategic growth agenda. Like
many other countries, India
needs a holistic and collaborative
approach from policy makers,
mining companies and user in-
dustry groups to achieve re-
source security.
The plan targets to add 227GW
of renewable power by 2022 with
electric vehicles (EVs) expected
to account for 30% of all new
vehicles by 2030. While introduc-
tion of EVs and telematics is
changing the landscape of the
automobile sector, growth in
renewables and technology for battery storage is transforming
the power and utilities sector. While EVs are dependent on
rechargeable batteries, solar energy is dependent on solar pan-
els and solar cells, flat panel displays and LEDS are important
components of the electronics and telecommunications indus-
try. All of these components require minerals with very specific
properties and characteristics. Such critical minerals or as EY
refers to them, “new world” commodities are central to the
production of a variety of high tech and green technologies
ranging from batteries, smartphones and laptops to advanced
defence systems. However, lack of secured supply chain would
substantially restrict the growth of the ‘new world’ industries,
the report says.
Due to the very nature of the critical/strategic minerals and
their relative smaller volumes, their market prices see large
distortions triggered by demand-supply mismatch even for a
small volume. This impairs a miner’s capacity to develop a
sustainable project plan for these minerals which strains their
supply sources.
The EY report touches upon sectors such as automobiles (electric
vehicles), aerospace and defence, electronics and renewable ener-
gy which are a part of the Make in India policy and will also need
most of the critical or rare minerals in some form. “Most of these
industries are still in nascent stages in India and thus their cur-
rent consumption of these minerals is low. Additionally, for few
of the industries, current focus appears to be sourcing and assem-
bling components instead of indigenous production. It is ex-
pected the strategy will move
towards more indigenous
production and as that hap-
pens, the need for these criti-
cal minerals will increase
exponentially,” the report
says.
Anjani K Agrawal, Partner
and Leader – Metals & Min-
ing, EY: “A number of initia-
tives like EV, renewables
energy, Make in India, de-
fence & aerospace etc. need
several minerals. Many of
those minerals are not yet discovered/available or produced in
India. Securing their supply will be critical for success of those
programs.” However, known sources of minerals are finite and
there is significant concentration of reserves in a few countries.
Several such countries in conflict zones. Risks are further com-
pounded due to the governments of resource rich countries
adopting a conservation approach for their own future needs.
To help identify the strategically critical minerals in the Indian
context, EY analysed the global concentration of reserves and
production and developed a supply confidence score for such
sources viz a viz India’s import dependence for those minerals.
“Resources of many critical minerals relevant to modern industri-
alisation and sustainability goals are concentrated in few coun-
tries. The risk is aggravated further either due to their own devel-
opment needs or the geopolitical risks in many resource rich
countries. It would be an imperative for India’s progress to take
this as a strategic agenda. For items where we have resource scar-
city, strategic M&A, off-take arrangements may be the path to
secure success,” according to Agrawal
11. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 10
India's Vedanta Ltd is investing $4.1 billion to boost oil output
from its flagship Barmer block in the desert state of Rajasthan to
over 400,000 barrels per day (bpd) in 2021, its chairman Anil
Agarwal said.
Agarwal said oil output from the block would rise next year to
more than 300,000 bpd from about 250,000 bpd currently.
"In 2-3 years it will be 450,000 bpd. We are investing almost 300
billion rupees to reach
there," Agarwal told report-
ers.
India, the world's third big-
gest oil importer, ships in 80
percent of its oil needs from
overseas as its local output
has stagnated for years. The
country produces an average
of 720,000 bpd oil.
The conglomerate on Mon-
day bagged 41 of the 55
blocks offered by India under the new eased rules that offer the
freedom to bidders to carve out areas for drilling.
For the new blocks, the company plans to invest 30-40 billion
rupees in the exploration phase, Agarwal said.
Vedanta, the Indian unit of diversified mining group Vedanta
Resources Plc, wants to scale up its operations to be able to con-
tribute at least 1 percent to the nation's planned $5 trillion econ-
omy by 2025, he said.
In contrast to Vedanta's aggressive bidding for the latest auction,
key foreign players continue to shy away from participating.
"I am looking for more and more competition to come. I want at
least 10 more players to come … This market will be better than
foreign markets," he said.
India's strong economic growth and the demographic advantage
of having a pool of young people will remain key drivers in its
energy demand growth.
India's crude oil demand is forecast to
grow to 500 million tonnes per year
by 2040, according to the country's
top refiner Indian Oil Corp.
Agarwal, however, said India need to
ease policies further to attract foreign
majors to exploration.
India bars exports of crude which
means producers are limited to who
they can sell their oil, often at a dis-
count.
"Foreign players will not come until and unless they get interna-
tional prices … Today also they (the government) set the price,
and which is so discouraging for the international players
to come," he said.
Vedanta is currently selling its oil to local refiners at 10-12 per-
cent discount to global benchmark Brent, he said, adding
the company's current cost of production is $7/barrel.
VEDANTA TO INVEST $4B IN INDIA BLOCK TO BOOST OUTPUT
CIL AIMS ASPIRATIONAL PRODUCTION OF 652 MILLION TONNE FOR FY19
Coal India Ltd is optimistic about an aspirational production
target of 652 million tonne for the fiscal year 2018-19,
the mining major's Chairman A K Jha said on Wednesday.
The state-run company is also planning to rationalise costs by
closing down 53 underground mines this fiscal, Jha said the side-
lines of the company's 44th AGM here.
Supply to the power sector is estimated at 525 million tonne for
the fiscal, as against 454 million tonne in 2017-18, Marketing Di-
rector S N Prasad said.
COAL INDIA COULD CLOSE 53 UNDERGROUND MINES THIS FISCAL
Coal India, which is looking to rationalise its underground mines
in view of safety and financial viability, could close about 53
such mines this year, its Chairman Anil Kumar Jha said on
Wednesday.
"About 43 underground mines were closed last year on grounds
of safety and viability. We have inherited many underground
mines at the time of nationalisation. That time there were more
than 700 mines. Now with each passing day we are trying to
rationalize mines which are small and not financially viable. For
some of the mines we are trying to amalgamate and turn some of
them into opencast," he said.
"We have given a project to Indian School of Mines to give us a
solution about how the underground mines can be managed by
closing or by amalgamating or converting into opencast. This
exercise is going on," said Jha, adding that a report is expected in
six months.
Coal India Ltd (CIL) has undertaken rail infrastructure projects
for planned growth in production and sales and as many as 13
projects for coal evacuation have been identified, he said.
He said two coking coal washeries were commissioned and plans
are on the anvil to set up a non-coking coal washery in Odisha's Ib
-Valley for which a letter of intention was issued.
"Coal India is tasked with meeting challenging targets in the years
ahead. Going forward in order to meet the production targets, it
needs to step up its growth rate.
"In order to achieve the planned growth in production and
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12. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 11
extraction in future, the company has undertaken major rail
infrastructure projects," Jha said.
Out of the identified projects, three would be funded by coal
companies, four by special purpose
vehicles and six by railways, the min-
er said.
The miner is pursuing an aspirational
production target of 652 million
tonnes in the current fiscal while it
had produced 567.36 million tonnes
in 2017-18.
At the 44th Annual General Meeting,
Jha informed shareholders that annu-
al grade declaration of the current
fiscal was finalised by the Coal Con-
troller Office.
"A total of 386 mines were reassessed and out of these, 61
mines were downgraded and 42 mines were upgraded," he
said in his speech.
Jha also said, "A total of 11 coal blocks have been allotted to
Eastern Coalfields, Bharat Coking Coal and Western Coalfields
and these new blocks will help these subsidiaries produce
more than 100 million tonnes of coal per annum in the near future.
"He said four coal mining projects with an ultimate capacity of
24.6 million tonnes per annum and a total capital investment of Rs
4,155.46 crore were approved.
In order to monitor coal quality, Jha
said, a portal UTTAM (unlocking
transparency by third party assess-
ment of mined coal) was launched by
the miner to capture the entire life
cycle of sample.
According to him, coal reserve stood
at 319 billion tonnes upto a depth of
1,200 metres as on April 1, as per the
estimated geological resource of In-
dia.
CIL is planning to set up a coal-based
methanol plant at Dankuni Coal Complex (DCC) of South Eastern
Coalfields Limited.
"The methanol to be produced at DCC will likely to find a defini-
tive market in the eastern states of India, once the policy of the
government for blending of methanol with petrol comes into prac-
tice," he said.
ORISSA HIGH COURT STAYS MINING OF THREE AUCTIONED MINES TO NCLT COMPANIES
The Orissa High Court on Monday stayed mining of three de-
posits, won by Essar Steel Ltd, Bhushan Steel Ltd (BSL) and
Bhushan Power and Steel Limited (BPSL).
The interim order came during the hearing of a public interest
litigation that questions the state’s de-
cision two years ago to allow the three
companies to participate in auctions of
iron ore deposits, even as they had
defaulted on loans and were then pos-
sibly headed towards bankruptcy.
The writ, filed by activist Chitta Ranjan
Sahoo, seeks cancellation of the auc-
tions and their outcomes, or the letters
of intent granted to Essel Steel, BSL
(now acquired by Tata Steel) and BPSL
(for which JSW Steel recently emerged
as the highest bidder). He questioned
“the due diligence and conduct” of
Naveen Patnaik’s government and the decision of the Odisha
steel and mines department in granting mineral blocks to com-
panies that went bankrupt within months of winning those.
The deposits, auctioned after mining laws were amended in
2015, are not yet operational. All three companies have plants
in the state and are chasing clearances that will enable them to
get a mining grant.
“The matter was still pending in court and we will be submit-
ting our counter very soon,” said a senior government official,
declining to comment further.
The state is expected to point out to the court that the deposits
were auctioned as per the Mineral Auction Rules 2015 laid out by
the Centre. “If these companies qualify, under the criteria laid out
by the rules, submitting audited balance sheets and tax returns
and emerge as the highest bidder, how is the state to predict their
future insolvency,” asked an official
of the steel and mines department,
speaking on condition of anonymity.
The Indian Bankruptcy Code 2016
recognises the companies as continu-
ing concerns, even while their pro-
moters are changing, and the state
would take a call when conditions of
the letters of intent were met, he
added.
Essar Steel won the Ghoraburhani
Sagasahi block in March 2016 com-
mitting to pay 44.35 per cent of the
value of ore to the state. At this point of time, the steelmaker’s
debt totalled Rs 45,000 crore, while its wholly owned subsidiary
Essar Steel Offshore had failed to repay Standard Chartered
Bank’s $413 million (as principal amount) and State Bank of In-
dia’s Rs 14,860.82 crore loans, the PIL alleges. The banks moved
the National Company Law Tribunal in Ahmadabad, which de-
clared Essar Steel a defaulter in July of 2017, while holding that
“there appears no scope for Essar Steel to be repaying its debt for
another 25 years”, the petition says.
“It is difficult to believe how the state government, its agencies
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13. VOLUME 5, ISSUE 11 — OCTOBER 2018
Page 12
and instrumentalities could have lost sight of such developments
with regard to insolvency proceeding initiated against the re-
spondent (Essar Steel),” says the petition. Counsels for petitioner
were senior advocate Yasobant Das, Ashok Das and Matrugupta
Mishra.
Bhushan Steel won the Kalamanga West deposit in May 2017
with a very aggressive quote of 100.05 per cent of the value of
the ore.
BPSL quoted 87.15 per cent for the Netrabandha Pahar deposit.
A month after both companies received their LoIs from the state,
the NCLB in New Delhi initiated corporate insolvency resolution
processes against them. The PIL alleges that BPSL had defaulted
on repaying Punjab National Bank in February of 2016.
Tata Steel, through its subsidiary Bamnipal Steel, recently ac-
quired a 72.65 per cent stake in BSL with the financial creditors
taking a 37 per cent haircut. JSW is likely to take over BPSL.
“How come the valuable resources are allotted to bidders whose
financial stability is not only questioned but insolvency proceed-
ings are initiated and the assets of such bidders are auctioned for
sale,” says the PIL.
MINING LEASE: CONGRESS SEEKS FIR AGAINST MANOHAR PARRIKAR, EX-CM
LAXMIKANT PARSEKAR
The Congress party on Wednesday demanded that the Direc-
torate of Vigilance should register an FIR against chief minister
Manohar Parrikar and ex-CM Laxmikant Parsekar for “undue
haste” in granting the second renewal of mining leases in the
state.
The Congress party met acting chief secretary W. V. R Murthy
and submitted a memorandum which also demanded an FIR
against the secretary of the department of mines and geology
Pawan Kumar Sain, then director of mines Prasanna Acharya
and the Secretary to chief minister Krishna Murthy.
“The state government acted in undue haste in granting en-
masse second renewals to mining leases to circumvent the pro-
posed amendment to the Mines and Minerals (Development and
Regulations) Act, said Goa Pradesh Congress President Girish
Chodankar. “The government only wanted to defeat the intro-
duction of the auction process.”
Along with Chodankar, the Congress delegation comprised op-
position leader Chandrakant Kavlekar, MLAs Nilkant Hal-
dankar, Dayanand Sopte and Aleixo Reginald Lourenco.
Kavlekar said that Parsekar and Parrikar had manipulated the
renewal of the leases “which is mostly illegal, dishonest and in
utter breach of trust” which warranted a criminal investigation.
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