HISTORY

Indian Mining Industry has been a major mineral producer in Asia and
globally. Currently it is the global producer of chromite, coal, iron ore and
bauxite while enjoying economic growth during the nineties. Mining is
over 6000 years old in India. The oldest mines include lead-zinc mineral
deposits at Zawar, copper deposits at Khetri, and gold deposits in
Karnataka. The mining techniques used back then were much ahead of
their time and technology specially the smelting techniques. A timeless
example and monument of the mastery of the old times craftsmen is the
Iron Pillar in the Qutab Minar complex in New Delhi. India's current state
owned mining and benefitted companies have been facing drastic
production cuts, resulting in operations becoming uneconomical which
has eventually resulted in the closure of several mining operations.
Reasons have been given as lower grade reserves and excessive
manpower quotas for poor results.
Since the initiation of National Mineral Policy in 1993, India has made
good progress in attracting foreign investment in its mining sector, along
with attractive incentives. The National Mineral Policy was revised again
in 1994 and as a result, private investment (both domestic and foreign),
has been permitted for the exploration and exploitation of the following
minerals: Iron - ore, Copper, Manganese, Lead, Chrome ore, Zinc,
Sulphur, Molybdenum, Gold, Tungsten ore, Diamond, Nickel and
Platinum group of metals.
Due to all these efforts of the Indian Mining Industry several foreign
companies have begun investing in India, with the majority usually
coming from Canada and the USA, Australia, UK and South Africa. Mostly
the demand is for base metals, diamond, mineral sands and gold sectors.

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To assist in the development of the country's mineral resources India has
set up several governmental agencies like the The Geological Survey of
India (GSI) which is the principal agency responsible for the assessment
of geological and regional mineral resources of the country established
in 1851 and is one of India's oldest investigative agencies in the field of
earth sciences. Its areas of operation help the scientific surveys and
research, for locating mineral resources. GSI office operates through six
regional offices and four specialized wings - marine, coal geophysics,
airborne surveys and training.
Other one is The Indian Bureau of Mines (IBM) which is the principal
government agency responsible for compiling exploration data and
mineral maps and for providing access to the latest information in
respect of mineral resources in the country. IBM has both regulatory as
well as service functions.

BRIEF INTRODUCTION
For any nation, Minerals constitute the back-bone for economic growth
and India has been eminently and enormously endowed with this gift of
nature. Since long time there are many evidences that exploitation of
minerals like coal, iron-ore, copper, lead-zinc has been going on in the
country from time immemorial. The first recorded history of mining in
India dates back to 1774 when English Company was granted permission
by the East India Company for mining coal in Raniganj. In 1880 M/s John
Taylor & Sons Ltd. started gold mining in Kolar Gold Fields in Karnataka.

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In Digboi, Assam the first oil well was drilled in the year 1866 which was
just seven years after the first ever oil well was drilled anywhere in the
world viz in Pennsylvania State, USA in 1859. Mining activities in India
remained primitive in nature and modest in scale until the beginning of
the current century. Therefore, with progressive industrialization the
demand for the production of various minerals gradually went up. After
India became independent, growth of mining under the impact of
successive Five Year Plans has been very fast and huge. There are
ambitious plans in coal, metaliferous and oil sectors to increase
production of minerals during the 8th Five Year Plan and thereafter.

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MARKET CAPITALIZATION
The GDP contribution of mining industries varies from 2.2% - 2.5% but
going by the GDP of total industrial sector it contributes around 10% to
11%. Even mining done on small scale contributes to 6% to the entire
cost of mineral production. Indian mining companies provide jobs to
around 0.7 million individuals.

SIZE OF THE INDUSTRY

India is the seventh largest country which extensively spreads over an
area of 3.29 million square kilometers. The Indian mining industry is the
backbone of Industries in the country. The mining industry is the main
source of raw material for most of the industries producing as many as
84 minerals comprising 4 fuels, 11 metallic, 49 non metallic and 20 minor
minerals. Today India has resources of 12745 MT of iron ore, 2,525 MT
of bauxite, 233 MT of magnesite, 76446 MT of limestone, 70 MT of
barites, 167 MT of lead & zinc ore, 176 MT of manganese ore and 90 MT
of chromite.
India has the largest reserves of barites in the world. Total value of
mineral production of Indian Mining Industry is Rs. 568070 million in
2000-2001. The metallic production constitutes the iron-ore, chromite,
copper-ore, zinc concentrates, manganese ore, gold, bauxite, lead
concentrates. Amongst the non-metallic minerals, 90% of the aggregate
value is contributed by the limestone, gypsum, barites, magnesite,
dolomite, kaolin, apatite & steatite, phosphorite and fluorite.

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MINING PRODUCTS IN INDIA
Indian Mining Industry produces many products which include a total of
84 minerals consisting of, 49 non-metallic industrial minerals, 11 metallic
minerals, 4 fuels and 20 minor minerals. The products are like
molybdenum, nickel, oil sands, palladium, Aluminium, coal, cobalt,
copper, chromium, tantalum, tin, titanium, diamond, gold, iron ore, lead,
manganese, platinum, silver, vanadium, tungsten, uranium, zinc, etc.

COAL: DEPOSITS AND EXPLORATION

The major workable coal deposits in India occur in two distinct
stratigraphic horizons - Permian, commonly known as "Gondwana" coals
and the Tertiary. India's 99% coal resources are found within a great
succession of fresh water sediments. The Indian major coalfields are
represented by isolated basins which occur along prominent present day
river valleys, viz., Damodar, Koel, Sone-Mahanadi, Pench-Kanhan, and
Pranhita-Godavari. Country's nearly 50 coalfields, varying in size from a
few km to to as much as 1500 km are known today, barring the small
occurrences of coal along the Himalayan foothills.
There are two categories of Indian bituminous coals namely, coking and
non-coking. Coal exploration in India today is largely being carried out by
conventional methods of systematic geological mapping followed by
drilling, core drilling playing a dominant role. Today due to the modern
exploration techniques like photo-geology, remote sensing, and non-
coring drilling, geophysical surveys etc. are used for detailed and precise
exploration.

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DOMESTIC AND EXPORT SHARE
In the year 2007-08, the Export value of ores and minerals was US$ 20.44
billion. Diamond (mostly cut) was the principal item of exporting which
accounted for 60 per cent, followed by iron ore with a contribution of
24.6 per cent, granite 4.51 per cent, Zinc ore and concentrate 1.35 per
cent, chromite 1.29 per cent, Bauxite 1.24 per cent and alumina 1.07 per
cent. In the year 2007-08 important minerals being exported were
building and monumental stones, emerald, coal (including lignite),
marble, etc.

MINING COMPANIES IN INDIA

NCDC - National Coal Development Corporation of India
NMDC - National Mineral Development Corporation of India
BALCO - Bharat Aluminium Company
PPCL - Pyrites, Phosphates and Chemicals Ltd.
HZL - Hindustan Zinc Ltd.
NLCL - Neyveli Lignite Corporation Limited
HCL - Hindustan Copper Ltd.
BGML - Bharat Gold Mines ltd.
SAIL - Steel Authority of India Limited (formerly Hindustan Steel Ltd.)

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EMPLOYMENT OPPORTUNITIES

This sector has opportunities knocking at the door for skilled

professionals who would be very much familiar with the Mining patterns
of the Country. Due to the amendments in the MM (R&D) Act & Mines
and Minerals (Regulation and Development) Act in 1996, opening up of
private players by the government has taken various steps to encourage
the investments in the sector. With the recent formation of the New
National Mining Policy in place, the Ministry of Mines plans to attract
investments of Rs 1,00,000 crore in the mining sector.

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POLLUTION
Indian Mining Industry is classified under the category of "Red" for
pollution which represents highly polluting industries.
India's contribution in the mineral production in world
India today has the capacity to produce 86 minerals which include 4
fuels, 10 metallic, 46 non-metallic, 3 atomic and 23 minor minerals & si
the leading producer of mica blocks and splitting.
Indian Mining Industry ranks 2nd in barites, chromite and
talc/steatite/pyrophillite;
India ranks 3rd in coal & lignite and bauxite;
India ranks 4th in iron ore and kyanite/sillimanite;
India ranks 5th in manganese ore and steel (crude);
India ranks 7th in zinc; and
Ranks 8th in aluminium

LATEST DEVELOPMENTS

NEW EXPORT TAX ON IRON ORE RETARDING INDIA-CHINA

TRADE
The powerful economies in world around Asia, India and China are trade
partners in some of the most vital metals, minerals and other such
resources are very much needed for the economic growth.
The financial year 1999-2000 saw 60% increase in the exports of iron ore
to China by India. China's top imports include Mineral fuel and oil, Iron &
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steel, Ore, slag and ash & Copper and related articles. The major portion
of the India's import to China constitutes primary products like ores.
Indian exports to China the top export items that account for the
maximum percentage of transactions. The following figures of 2003-04
reveal this:
Top 3 export items accounted for 58.7% of total exports
Top 5 export items accounted for 70.1% of total exports
Top 10 export items accounted for 83.9% of total exports

FDI IN INDIAN MINING AND MINERALS INDUSTRY

Ministry of Mining formulated the National Mining Policy by raising the
level of domestic and foreign direct investments in the sector to Rs
1,00,000 crore. This new policy of Indian Mining Industry aims at
promoting growth of the Industry. The Industry plans to create
employment for about 5 lakh skilled and unskilled labour force in the
industry which currently employs 1.1 million people

INDIAN COMPANIES GOING ABROAD

India today has been able set up companies by going abroad and
acquiring other firms with similar profiles and is also investing in their
assets overseas. Indian Mining Industry is making its presence felt across
the globe, for instance from an offshore oil field in Australia to a steel
company in Thailand. Amongst the Indian private players, Reliance
Energy Limited (REL) owned by Anil Ambani is exploring the options of
getting the coal mines in Indonesia and Australia. These efforts usually
meet the requirements of coal as raw material for its upcoming projects
in Uttar Pradesh and Maharashtra. REL's total investment would be of
around $ 500 million if this deal under consideration gets finalized.