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 2nd largest producer of coal. Coal production grew at CAGR 4.6% over FY14-FY19 (to 730.35 MT) and is expected to grow 6-7% Y-o-Y over FY20 as miners focus on the 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 74.1 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

  • MT

    Domestic steel production capacity by 2030

  • $ bn

    FDI equity inflows into the Metallurgical and mining (April 2000-June 2019)

  • $ mn

    FDI equity inflows into coal production (April 2000-June 2019)

  • MMT

    Aluminium production growth forecast (by FY20)

A

Second largest crude steel producer in the world

C

Second largest coal producer in the world

B

Fourth largest iron ore producer in the world

Industry Scenario

With the launch of the National Mineral Policy 2019, 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 as well as the rise in infrastructure development.

Growth Drivers

  • Cost advantage

    Cost advantage in steel and alumina production-conversion

  • Rising demand from infrastructure and transportation sectors

    Schemes such as Housing for all by 2022 and expansion of railway network

  • Unexplored mines

    Only 20% of the total reserves have been mined till now

  • Supportive government policies

    Permission granted to captive mines to sell coal in open market

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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.

Who grants mineral concessions in India?

The State Governments grant the mineral concessions for all the minerals located within the boundary of the State, under the provisions of the MMDR Act, 1957, and Mineral Concession Rules (MCR), 1960. Under the provisions of the MMDR Act, 1957 and MCR, 1960, prior approval of the Central Government is required in the several cases.

For more information, click here.

 

Who has the authority to grant mining license?

Mineral Resources Department & respective State Government is empowered to sanction Prospecting License/Mining Lease.

For more information, click here.

What are the precautions to be taken for filing applications for obtaining Mineral Concessions?

The application must be filled within the prescribed format as per Mineral Concession Rule 2016. Entries must be complete in all respect and should be supported with documentary evidences as per the Rule.

For more information, click here.

What kind of mines does Central Government own?

The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India.

For more information, click here.

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Authored By:
Strategic Investment Research Unit (SIRU)

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