04 September, 04:15 PM
Growth in automotive
Automotive growth driving demand for steel and aluminum
This page has been last updated on - Nov 06, 2019
Snapshot
Mining the future
India is home to 1,531 operating mines and produces 95 minerals – 4 fuel-related minerals, 10 metallic minerals, 23 non-metallic minerals, 3 atomic minerals and 55 minor minerals. India is the 3rd largest producer of coal. Coal production grew at CAGR 5.17% over FY14-FY19 (to 739.36 MT) and is expected grow 6-7% Y-o-Y over FY20 as miners focus on surface mining of coal. Coal’s share in India’s primary energy consumption is expected to be 48% in 2040. India is the 2nd largest crude steel producer in the world, generating an output of 106.5 MT in 2018, a growth of 3.7% Y-o-Y. India’s steel consumption rose 7.5% Y-o-Y and 7.9% Y-o-Y over the last 2 years, outpacing a 2.1% to 5% growth globally.
- Over 2030-31, crude steel demand/production forecasted to reach 255 MT
- Per capita finished steel consumption also expected to rise to 158 kg by 2030-31 (from 73.3 kg in 2018)
The country’s FDI Policy allows:
100% FDI through automatic route in the steel and mining sectors
100% FDI for coal and lignite under automatic route
For further details, please refer FDI Policy
300 MT
Domestic steel production capacity by 2030
$14.02 bn
FDI equity inflows into the Metallurgical and mining (April 2000-June 2019)
$27.73 mn
FDI equity inflows into coal production (April 2000-June 2019)
20 %
Total reserves in India that have been mined until now
Second largest crude steel producer in the world
Third largest coal producer in the world
Fourth largest iron ore producer in the world
Industry Scenario
With barely 20% of reserves mined, India presents a major opportunity for investors.
India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts.
The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification and a focus on building renewable energy projects under the National Electricity Policy.
Growth Drivers
Cost advantage
Cost advantage in steel and alumina production-conversionRising demand from infrastructure and transportation sectors
Schemes such as Housing for all by 2022 and expansion of railway networkUnexplored mines
Only 20% of the total reserves have been mined till nowSupportive government policies
Permission granted to captive mines to sell coal in open market
Recent Announcements
ArcellorMittal SA has bid INR 48 bn to acquire Essar's 1200 MW power plant in Madhya Pradesh. It is also known as the Mahan power plant, and will help ArcelorMittal gain a strong foothold in the Indian market.
Vedanta Ltd to set up a 4.5 bn tonne steel production plant in Jharkhand at an investment of about $ 4 bn as part of its newly acquired Electrosteel Steels Ltd. The final production capacity of the plant is expected to be 7 bn tonnes.
Vedanta Resources Chairman Anil Agarwal announced the company’s plan to inject INR 15,000 crore to raise the alumina refinery capacity at Lanjigarh in Odisha
NLC India to invest INR 1.29 lakh crore to increase mining, power capacity
Adani Enterprises Ltd announced that it is ready to start work on the $ 16.5 bn Carmichael mine. The project is expected to commence production in FY 2020-21 with an output of 25 mn tonnes in the first phase.
JSW Steel proposed constructing a slurry pipeline project to transport iron ore and coal at competitive prices in Karnataka with an investment of $ 3.3 bn. JSW Steel is currently operating a 12-MMTPA integrated steel plant in the area.
Hindustan Zinc announced that it will set up its first Zinc Fumer Plant in Rajasthan by 2018 with an investment of $ 83.2 mn. This plant will extract metals from waste and will have an annual production capacity of 3,000 tonnes.
Mangal Credit and Fincorp announced plans of diversifying in iron ore mining by acquiring a mine near Goa. The 21 ha mine consists of iron ore reserve worth $ 223.1 mn.
Growth in steel production
Expected to reach 300 MT by 2030
Opening up of mining sector
Provision of longer mining leases (20-30 years) and greater transparency in mine allocation
Investible Projects
Investment Opportunities in Metals & Mining
-
Projects
4
-
Opportunity
$1.89 bn
-
Promoters
3
-
District
4
-
Private Projects
2
-
Govt. Projects
2
Major Investors
Data on Map
Latest in Metals & Mining
Event
Namaskar Eurasia, Kyrgyz Republic, 9-11 Octob…
Event
24th International Engineering and Technology…
Report
India Surging Ahead - 2019
Report
Setting up Business in India
FAQ
Frequently
Asked Questions
Who grants Mining Leases (ML) and Prospecting License-cum-Mining Lease (PL-cum-ML)?
As per the Mines and Minerals (Development & Regulation) Act (MMDR) Amendment Act 2015, the grant of Mining Leases (ML) and Prospecting License-cum-Mining Lease (PL-cum-ML) happens only through an auction process.
For more information, click here.
How can Mineral Concession (PL/ML) in Forest Land be obtained?
No concessions can be granted without prior approval under Forest Conservation Act, 1980. After obtaining in principle consent from State Government and prior approval by Central Government as per the provision of Mines and Minerals (Development & Regulation) Act 1957.The applicant has to take necessary steps to obtain permission under Forest Conservation Act, 1980. After getting clearances, the grant of concession is done by State Government.
Who is responsible for sanctioning Prospecting License/Mining Lease in India?
Mineral Resources Department, State Government is empowered to sanction Prospecting License/Mining Lease.
For more information, click here.
After filing application for Prospecting License/Mining Lease at District Collector Office, what are the steps taken to process applications under mining sector?
1) After ensuring correctness of application, internal reports from different departments are sought:
a) Revenue Department.
b) Forest Department.
c) Gram Panchayat Report.
d) If applied area falls near by the restricted land as per provision of Mineral Concession Rule 1960 then report is sought from concerning State/Central authority.2) After scrutiny of application it is forwarded to State Government for further action.
What are the precautions to be taken for filing applications for obtaining Mineral Concessions?
The application must be filed within prescribed format of Mineral Concession Rule 1960, available in GOI, Ministry of Mines website link. Entries must be complete in all respect and should be supported with documentary evidences as per provisions of rule 9, 22 of Mineral Concession Rule 1960. In absence of all documents, disposal of application may be delayed. Further, incomplete applications are liable to be cancelled.
Stakeholders
-
-
-
-
-
By: Invest India26 June, 03:56 PM
-
-
-
-
-
