mining business plan in india

For Our Products Enquiry Call US ! +91-941-420-6679

• UCM Quartz Grits & Powder
• UCM Quartz Granules
• UCM Quartz Sand
• UCM Potassium Feldspar
• Infrastructure
• Quartz Exporters
• Top 20 Quartz Exporting Countries
• Quartz Stone Manufacturing Process: Everything You Need to Know

How To Start A Mining Business In India (And Small Business Opportunities)

• Quartz Mines In India: An Overview Of Quartz Resources And Reserves
• Quartz Applications & Uses In Different Industries
• How To Start A Mining…

Are you looking for a new business opportunity? Then you can think about starting a mining company. According To InvestIndia , The mining industry in India was valued at $41.7 billion in 2014-15 and is estimated to reach $125 billion by 2025. Moreover, Mining contributes significantly to the Indian economy.

It usually requires extensive capital to start a mining company anywhere in the world and so it is in India, but you can receive amazing rewards from it at the end of the day. Also, there are many small businesses in the mining industry, which require fewer resources and capital. We will be focusing on them as well.

Small Business Opportunities

According to Wikipedia, Mining carried out on small scale contributes 6% to the entire cost of mineral production in India. Also, The Indian mining industry which ranges from large scale mineral drilling businesses to small scale equipment leasing businesses provides jobs to around 7 lakh individuals. Starting a mining business doesn’t necessarily mean that you should acquire a mineral mining region such as a quartz mine in Rajasthan. However, you will be able to provide a range of other services to small and large mining industries, which are essential for mining.

There are small to medium scale services and businesses in the mining industry, which require less capital and resources to be profitably functional and can help mining industries. Some of them are:

A) Equipment Based Services

• Equipment Sales: Mining requires lots of different types of tools and machinery. By dealing in equipment sales, you can choose the type of equipments or machinery you want to trade and build a business around it.
• Equipment Leasing Services: If you want to set up equipment based business on a small to medium scale, you can set up equipment leasing services.
• Equipment Repairing Services: To start this type of business, you require much less capital and resources. You would mostly need highly skilled labor to start equipment repairing services.

B) Transportation Services

• Logistic Services: Transporting minerals from mining sites is a huge challenge for any mining company. The mined minerals are loaded in huge trucks, rails or ships from the remote mining sites and sent to the industry for processing. You can start a transportation service to help mining industries with mineral transportation. At UCM LLP, we use local transportation services for transporting quartz from different mines to our industrial plant in Kishangarh.
• Labor Transportation Services: Mining companies need to work in remote areas such as ocean beds, deserts or forests. Labors and staff are required to be transported to such remote areas via helicopters, boats or ships. You can think of providing offshore transportation services.

C) Drilling Services

• Borehole Drilling Services: Sometimes Boreholes are drilled in order to mine the minerals. In such cases, high-pressure water jets are used to extract the minerals. By specializing in Borehole Drilling services, you can help the mining companies with mining through hydraulic channels.
• Mineral Exploration Services: Exploration is a popular niche in the mining industry. Mineral Explorers help the mining industries in locating mineral rich areas.

D) Consulting Business

• Recruitment Consultants: It is difficult to find the right employees for the mining industry and the traditional recruitment agencies usually can not help in recruiting specialized labors or staff for the mining industry. Hence you can open your own Mining Recruitment Consultancy.
• Financial Consulting: Financial consultants help the mining industry is seeking the right mining opportunities and earning a profit in the long term. They have financial consultants and analyzers who help the mining company in cost-effective and profitable mining.
• Project Consulting: Mining is carried out in different areas and changing the locations often can be daunting for the miners. In such cases, the company often takes help of mining consultants who help with the A-Z of the mining project and provide different information such as geological information, mineral information, exploration information and other information which is essential for mining minerals effectively.

E) Technological Services

• Software Development & Maintenance
• Equipment Testing
• Data Mining

F) Other Services

• Waste Management Services
• Medical Services
• Risk Assessment Services
• Power Supply
• Temporary Development
• Security And Safety

Mining companies are in need of these services to move forward with their business operations. Therefore, you will be able to offer them one or many of these services and make a decent amount of money. Since the mining companies don’t hesitate before they go ahead with massive financial transactions, you need to make sure that you document everything legally.

What is needed to start a mining company?

You should do heavy research before you start a mining business. During the research, you will need to speak to the right people and gather all the information needed to start business operations.

If you are thinking about drilling and manufacturing minerals, You should initially learn how to register your mining business . Then you will need to focus on how to supply and export the mined products in the local market. The export of minerals is generally essential for any minerals manufacturing industry. That’s where you need to take a look at the export license and the regulations associated with it. Export licenses are not too difficult to acquire if you are exporting mineral products because any government and likewise the Indian government usually encourages the export of most minerals because of an increase of foreign currency in the domestic government reserves.

At Unique Crystal Minerals LLP, a large scale quartz manufacturer in Rajasthan , We have been exporting quartz globally for the last many years, and we have not faced any major difficulties with Indian government norms or regulations. We are also proud to be one of the largest quartz exporters in India .

If you are not looking forward to drilling for the mineral directly, you can get in touch with mining companies and ask for the issues that they face. Then you will be able to provide the previously listed services, which mining companies can use to overcome the problems.

Mining Equipment

Once you decide to go ahead with mining, you should purchase appropriate mining equipment. This is where you should think about getting the best quality industrial pumps, drills and construction vehicles. At Unique Crystal Minerals LLP, we use most of the vehicles from JCB. We also rent some of the machinery to reduce expenses. These aren’t all the tools. You can get in touch with a professional service provider and figure out what tools you need. You can also learn more about them from the research you do. However, you must also make sure that you don’t go over your budget at the time of purchasing tools.

Hiring Employees

Once you purchase tools, you need to hire skilled employees to work for your mining company. You will need to hire a lot of people due to the nature of the work that you have to do. A lot of employees will be working for a manual labor job, who can assist you mine materials. However, you will also come across the need to hire experienced employees.

After hiring employees, you will have to provide them with accommodation near the mining site. You can find accommodation or build accommodation for them in a nearby town. In addition to that, you will also need to develop an office, where you can manage all administrative work.

Health And Safety

You should understand what health and safety measures you need to practice before you start the mining business. You should also provide appropriate training to all employees on how to use the tools and how to ensure their own safety.

How to make profits from the mining business?

Now you are all set to go ahead with your mining business. This is where you should understand how to make profits out of your business. There is a high possibility for you to make profits out of your business because you will be spending a relatively little amount of money on mining the minerals needed. You just need to mine minerals and sell them in the market at a higher price tag.

To maximize profits, you can figure out what the high demand minerals available for you to mine are. Then you will be able to receive higher profits out of what you sell. Minerals that generate higher profits are changing along with time as well. Therefore, you need to make sure that you have an up to date knowledge about them.

You will also have to come across a lot of challenges when you are managing the mining business. If you can strategically plan to overcome those challenges, the mining company you create can provide you with rewarding results at the end of the day.

Mining Challenges

There are many problems that you may face while starting a mineral mining business. From extensive capital to fluctuating mineral prices and from resource nationalism to frequently changing government policies, Drilling Minerals is definitely not for the weak-spirited person.

1) Initial Costs & Contacts

The costs required to set up a mineral mining business is quite high. You would need heavy capital for purchasing or leasing different equipment, hiring experienced labor, build relevant infrastructures such as processing plants, energy plants, and transportation models. In India, it’s very difficult to acquire mining licenses without contacts at different government levels.

2) Skilled Labour & Staff

Mining business requires highly skilled labor and staff to operate efficiently. Also, many people are not willing to work at mines or remote areas due to health hazards, accidental risks and low quality of life.

3) Fluctuating Mineral Prices

Mineral prices depend on different factors such as demand and supply, the cost of production, the global economy, etc. Varying mineral prices may make it difficult to always trade the minerals profitably.

Water is important for mining minerals at several sites. Such mining is usually carried out through hydraulic channels. Lack of water and implausibility of borehole drilling makes mining challenging in several areas in India.

5) Power Supply

It requires a huge amount of power supply to power the mining equipment. Lack of power supply in certain mining areas makes it difficult to mine minerals.

6) Government Regulations

With changing government policies, sometimes it gets really difficult to acquire a license to operate on a mine. Also, the government imposes certain rules and regulations for its own control of mines. This is popularly known as Resource Nationalism.

Some other challenges include

• Ensuring Worker safety and all legal procedures pertaining to them.
• Ensuring the waste is managed properly and the surrounding environment has not been harmed.

Starting a mineral mining business in India or anywhere in the world is interesting but quite challenging at the same time. Although if you are interested to start a business in this field, you can look at smaller business opportunities as well. If you are not well acquainted with the mining industry, you can start by providing smaller services required for the mining industry and then, later on, switch to drilling and mining minerals. You can contact me personally if you are interested in setting up a quartz manufacturing business in Rajasthan or nearby areas.

Author:  Dinesh Agarwal

Dinesh Agarwal is the founder chairman of Unique Crystal Minerals LLP. He is working in the minerals industry for more than a decade now and is widely known in the Inidan state of Rajasthan for his industrial expertise.

Related Posts

Quartz Stone Manufacturing Process: Everything You Need to Know September 26, 2019

Top 20 Quartz Exporting Countries September 6, 2019

sir i want to gain knowledge in this industry . i want to do startup in my village . and there is already so many concrete mining so i also want to open a mining field and i don’t have any knowledge in this field so what to do can you help me out sir

Hello Faiz,

Please contact me at 9414206679

sir i want to start mining business in India, i am already working for mining company, what are the formalities to get into business

That was a beautiful description of the entirety of mining industry. I would like to know what I as a geology graduate can find easy, as compared to other guys from different backgrounds, willing to start this business. I s there any advantage a geology student can avail?

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

Post comment

• WeChat: BADAL

• Screen Reader
• Skip to main content
• Text Size A
• Language: English

Case Studies

• EXIM Procedure

Media & Events

• Image Gallery
• Media Coverage

Other Links

• GI of India
• Experience India
• Indian Trend Fair 2022
• India Organic Biofach 2022
• Gulfood Dubai 2023

Metals and Mining

Metals & mining industry in india, india is the 2nd largest aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world., advantage india, demand growth.

* Being the third largest energy consuming country in the world, there is always increased demand for power and electricity in the country, and hence the surge in demand for coal.​

* Demand for steel is likely to grow by ~10% as the government’s augmented focus on infrastructural development continues with increased construction of roads, railways, airports, etc.​

* India has set the targets of achieving a total crude steel capacity of 300 million tonnes per annum (MTPA) and total crude steel demand/production of 255 MTPA by 2030-31.​​

* The demand of zinc is expected to double in India in the next five to 10 years on the back of huge investments in infrastructure sector, including steel, International Zinc Association.​​

Attractive Opportunities

* By becoming Aatmanirbhar in producing specialty steel, India will move up the steel value chain and come at par with advanced steel making countries like Korea and Japan.​

* Under the PLI Scheme for Specialty Steel, 57 MoUs with 27 companies have been signed, attracting investments of US$ 3.55 billion (Rs. 29,500 crores), creating an additional capacity of 25 MT and generating employment for 17,000 people by FY 2027-28. As of December 2023, companies have invested US$ 1.55 billion (Rs.12,900 crores), with an expected investment of US$ 360 million (Rs. 3,000 crores) in FY'24. Five units have already commenced production, and nine more are set to begin operations in the last quarter of FY24.​

Policy Support

* Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 enabled captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market.​

* In December 2023, the Ministry of Mines proposed capping performance security and upfront amounts for mining critical minerals to attract more bidders, reduce barriers to participation in auctions and expedite the process for mining leases.​

Competitive Advantage

* India holds a fair advantage in cost of production and conversion costs in steel and alumina.

* As of FY22, the number of reporting mines in India were estimated at 1,319, of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 775.​

* India is the second-largest crude steel producer in the world.​

* India is the 2nd largest Aluminium producer, 3rd largest lime producer and 4th largest iron ore producer in the world.​​

Metals and Mining Industry Report

Introduction.

India holds a fair advantage in production and conversion costs in steel and alumina. Its strategic location enables export opportunities to develop as well as fast-developing Asian markets. As of FY22, the number of reporting mines in India were estimated at 1,319, of which reporting mines for metallic minerals were estimated at 545 and non-metallic minerals at 774.

Minerals are precious natural resources that serve as essential raw materials for fundamental industries, so the growth of the mining industry is essential for the overall industrial development of a nation. The vast resources of numerous metallic and non-metallic minerals that India is endowed with serve as a foundation for the expansion and advancement of the nation's mining industry. India is largely self-sufficient in metallic minerals including bauxite, chromite, iron ore, and lignite as well as mineral fuels like coal and lignite. The industry has the potential to significantly impact GDP growth, foreign exchange earnings, and give end-use industries like building, infrastructure, automotive, and electricity, among others, a competitive edge by obtaining essential raw materials at reasonable rates.

Rise in infrastructure development and automotive production are driving growth. Power and cement industries are also aiding growth for the sector. Demand for iron and steel is set to continue given the strong growth expectations for the residential and commercial building industry.

Market Size

Production level of important minerals in February, 2024 were: Coal 966 lakh tonne, Lignite 42 lakh tonne, Natural gas (utilized) 2886 million cu.m., Petroleum (crude) 23 lakh tonne, Bauxite 2414 thousand tonne, Chromite 400 thousand tonne, Copper conc. 11 thousand tonne , Gold 255 kg, Iron ore 244 lakh tonne, Lead conc. 27 thousand tonne, Manganese ore 295 thousand tonne, Zinc conc. 149 thousand tonne, Limestone 387 lakh tonne, Phosphorite 218 thousand tonne, and Magnesite 10 thousand tonne.

Important minerals showing positive growth during February, 2024 over February, 2023 include: Gold (86%), Copper Conc.(28.7%), Bauxite (21%), Chromite (21%), Phosphorite (19%), Limestone(13%), Coal (12%), Natural gas (U) (11%), Petroleum(crude) (8%), Manganese Ore (6%), Magnesite (3%), Lignite(2.8%), and Zinc Conc.(2.8%). Other important minerals showing negative growth include Iron Ore (-0.7%) and Lead Conc.(-14%).

The index of mineral production of the mining and quarrying sector for the month of February 2024 at 139.6, was 8% higher compared to the level in the month of February 2023.

India's overall coal production has seen a quantum jump to 893.08 MT in FY23 as compared to 728.72 MT in FY19 with a growth of about 22.6%.

In FY24, the coal production stood at 997.25 MT, registering a growth of 12% from last year.

In April FY25, the production of crude steel stood at 1.838 MT and that of finished steel was 11.215 MT.

In FY23, production of crude steel stood at 125.32 million tonnes (MT), finished steel at 121.29 MT and consumption of finished steel at 119.17 MT has exceeded their respective levels achieved over the corresponding period of not only COVID affected last two years but also pre COVID years as well.

India's iron ore production is estimated to stand at 257.85 MT in FY23, while it stood at 253.97 MT in FY22 - a sharp increase of 23% compared with 205.04 MT in FY21. India's iron ore production stood at 202.64 MT during April-December 2023.

In 2022-23, exports of iron ore stood at US$ 1.75 billion as compared to US$ 3.18 billion in 2021-22.

The production of aluminium was 4.07 MT in FY23.

The index of mineral production of mining and quarrying sector for the month of December 2023 (Base: 2011-12=100) stood at 139.4, 5.1 % higher compared to the level in the month of December 2022. According to provisional data from the Indian Bureau of Mines (IBM), the cumulative growth for the period April- December, 2023-24 over the corresponding period of previous year is 8.5 % percent.

In FY23, mineral production is estimated at Rs. 1,18,246 crore (US$ 14.37 billion). In FY22, mineral production was estimated at Rs. 1,32,747 crore (US$ 16.04 billion). India ranks fourth globally in terms of iron ore production. India's iron ore production is estimated to stand at 257.85 MT in FY23, while it stood at 253.97 MT in FY22, up 23% from FY21. In FY22, India had a total number of 901 steel plants producing crude steel. In April-January FY24, the production of crude steel stood at 118.372 MT and that of finished steel was 113.848 MT. India’s steel production is estimated to grow 4-7% to 123-127 MT in FY24. In April-January FY24, production of hot metal, crude steel and saleable steel by SAIL stood at 16.97 MT, 15.94 MT and 15.30 MT, respectively. Aluminium production in India stood at 3.47 MT between April-January FY24. The world production of primary Aluminium during the same period was about 59.562 MT. The share of India in the world primary Aluminium production was around 5.8% during this period.

Investments/ Developments

Some of the investments/ developments in the Metals & Mining sector in the recent past are as follows:

• As per data from the Ministry of Statistics and Programme Implementation (MOSPI), India's mining GDP increased from Rs. 76,877 crore (US$ 9.25 billion) in the third quarter of FY23 to Rs. 82,680 crore (US$ 9.95 billion) in the third quarter of FY24.
• In February 2024, an MoU has been signed between India and the Republic of Cote d'lvoire, for collaboration in field of Geology and Mineral Resources.
• The index of mineral production of mining and quarrying sector for the month of December 2023 stood at 139.4, 5.1% higher as compared to the level in the month of December 2022.
• In FY24 (until January 2024), the combined index of eight core industries stood at 156.0 driven by the production of coal, refinery products, fertilizers, steel, electricity, and cement industries.
• Between April 2000-March 2024, FDI inflows in the metallurgical industry stood at US$ 17.51 billion, followed by the mining (US$ 3.50 billion), diamond & gold ornaments (US$ 1.27 billion), and coal production (US$ 27.73 million) industries.
• In March 2024, Karnataka and Rajasthan initiated the auction of Exploration Licences (EL) for critical and deep-seated minerals, marking the first such auction in India. Under the amended Mines and Minerals (Development and Regulation) Act, 1957, introduced by the MMDR Amendment Act, 2023, 29 critical minerals are eligible for exploration and mining concessions.
• In January 2024, India and Argentina signed an agreement to undertake the exploration and development of five lithium blocks, enhancing India's efforts in sourcing lithium. Khanij Bidesh India Limited (KABIL) has obtained exploration and exclusivity right for these five blocks.
• On August 3, 2023, the Rajya Sabha passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill, 2023 which seeks to make amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002 (‘OAMDR Act’). The Bill was passed by Lok Sabha on August 1, 2023.
• In July 2023, the Union Cabinet approved amendments to the Mines and Minerals (Development and Regulation) Act-1957 to allow the mining of lithium and other minerals.
• Coal production from captive mines increased by 18.67% y-o-y in FY24 (April- September 2023) and contributed 14.96% to the total coal production.
• In February 2023, Tata Steel and Central Building Research Institute (CBRI), a constituent of the Council of Scientific and Industrial Research (CSIR), signed an MoU to collaborate on research, academic growth, and sustainable solutions in mining.
• In February 2023, ArcelorMittal - Nippon Steel is investing Rs. 60,000 crore (US$ 7.3 billion) to expand its steelmaking capacity in Hazira to 15MT a year from 9MT.
• In February 2023, NMDC signed an agreement for collaborative research with CSIR-IMMT, Bhubaneswar on “Feasibility Studies for Preparation of Fused Magnesia from Kimberlite Tailings” at its Head Office in Hyderabad.
• In November 2022, IIT Bombay and JSW Group entered into an exclusive strategic agreement to establish first-of-its-kind, state-of-the-art JSW Technology Hub in India for steel manufacturing in India.
• In August 2022, Tata Steel signed a MoU with the Government of Punjab for setting up a 0.75 MnTPA long products steel plant with a scrap-based electric arc furnace.
• In July 2022, Hindalco Industries Limited has signed an MoU with Phinergy and IOC Phinergy Private Limited (IOP) on R&D and pilot production of aluminium plates for Aluminium-Air batteries, and recycling of aluminium, after usage in these batteries.
• In October 2022, Coal India Limited (CIL) signed a MoU with Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUNL), for setting up 1,190 MW solar power project.
• In January 2023, Vedanta announced that its board had approved the sale of its international zinc assets in South Africa and Namibia to subsidiary Hindustan Zinc (HZL) for US$ 2.98 billion.
• In March 2022, MOU with detailed collaborative framework was between KABIL, India, and Critical Mineral Office (CMO), Department of Industry, Science and Resources (DISER), Govt. of Australia for carrying out joint due diligence and further joint investment in Li & Co mineral assets of Australia.
• In February 2023, JSW Group announced to build a steel plant in Andhra Pradesh's YSR Kadapa district with an investment of Rs. 8,800 crore (US$ 1 billion).
• In 2021, an Indian state committee recommended the expansion of Vedanta Ltd.’s Lanjigarh Alumina refinery from 1 million tonnes to 6 million tonnes, an investment that would cost the company Rs. 6,483 crore (US$ 993 million).
• In February 2023, Essar Capital Limited, investment manager of Essar Global Fund Limited, announced to set up steel plants in Odisha and a facility to import liquefied natural gas (LNG) at Hazira in Gujarat.
• On 2nd September 2022, Steel Authority of India Ltd. (SAIL) has supplied about 30000 tonnes of the specialty steel for nation’s first indigenously built Aircraft Carrier INS Vikrant for Indian Navy which commissioned at Cochin Shipyard Ltd.
• Innovative mineral exploration activities using state-of-the-art technology by Geological Survey of India (GSI), stepped up efforts by Khanij Bidesh India Limited (KABIL) to source strategic minerals from countries like Australia, Argentina, and Chile.
• Production of metallic minerals in the country increased from US$ 6.96 billion in FY18 to US$ 12.88 billion in FY23P. In the same period, production of non-metallic minerals increased from US$ 1.16 billion in FY18 to US$ 1.48 billion in FY23P.
• India's iron ore production stood at 257.85 MT in FY23, an increase of 1.52% compared with 253.97 MT in FY22.
• ICRA has estimated the domestic aluminium demand growth to remain healthy at around 9% in the next two fiscal years, given the Government’s thrust on infrastructure development.
• Between April 2000-December 2023, FDI inflows in the metallurgical industry stood at US$ 17.46 billion, followed by the mining (US$ 3.50 billion), diamond & gold ornaments (US$ 1.27 billion), and coal production (US$ 27.73 million) industries.
• In FY23, Vedanta's aluminium division will focus on backward integration and will put two of its mines in Odisha into production.
• Iron and steel imports stood at US$ 14.17 billion during April-December 2023.
• NMDC’s cumulative iron ore production (April-January FY24) stood at 36.32 MT as compared to 31.14 MT (April-January FY23).
• As of January 2024, India’s total installed electricity generation capacity stood at 429.96 GW.
• In 2021-22, India’s iron and steel export was valued at US$ 17.62 billion. During FY16-22, India’s export of iron and steel grew at a CAGR of 17.15%.
• In November 2021, JSW Steel announced that the company registered a 6% YoY surge in crude steel production at 1.42 million tonnes in October 2021.
• In November 2021, AMNS India announced that it is planning to manufacture specialty steel under the production-linked incentive (PLI) scheme.
• Vedanta Limited is planning a US$ 20 billion investment across its operations, including increase silver production and steel capacity.
• In June 2021, Mr. T.V. Narendran, the CII President, and Managing Director of Tata Steel, stated that steel firms have firmed up plans to invest ~Rs. 60,000 crore (US$ 8 billion) over the next three years in this sector.
• In May 2021, Vedanta Ltd. announced its plan to invest Rs. 10,000 crore (US$ 1.34 billion) in setting up an aluminium park in Odisha to facilitate companies that use metal to set up their manufacturing units in the facility.
• In May 2021, ArcelorMittal Nippon Steel (AMNS) signed a contract with Total (a France-based energy company) for supply of up to 500,000 tons of liquefied natural gas (LNG) per year until 2026.
• In February 2021, ArcelorMittal-Nippon Steel India, in agreement with the Odisha government, has planned to set up an integrated steel plant (with 12 MT capacity) in the state’s Kendrapada district for Rs. 50,000 crore (US$ 6.89 billion)
• In February 2021, two new iron ore mines were inaugurated in Odisha, with a production capacity of 15 lakh tonnes per month and ~275 million tonnes of consolidated iron ore reserves. These mines will bring in ~Rs. 5,000 crore (US$ 679.28 million) in annual revenue for the state and employment opportunities for locals.

Government Initiatives

The Government of India has adopted few initiatives in the recent past, some of these are as follows:

• In February 2024, the Union Cabinet approved the amendment to the Mines and Minerals (Development and Regulation) Act,1957 specifying royalty rates for 12 critical minerals, thus completing the rationalization process for all 24 strategic minerals. This move aims to streamline the mining sector and auction processes, aligning with recent amendments to the MMDR Amendment Act, 2023.
• In December 2023, the Ministry of Mines proposed capping performance security and upfront amounts for mining critical minerals to attract more bidders. Currently based on a percentage of the Value of Estimated Resources (VER), the move aims to reduce barriers to participation in auctions and expedite the process for mining leases.
• In October 2023, the Union Cabinet approved the amendment of the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, specifying royalty rates for three critical minerals: Lithium, Niobium, and Rare Earth Elements (REEs) paving the way for the auctioning of blocks for these minerals, as outlined in the MMDR Amendment Act, 2023.
• The government plans to monetize assets worth Rs. 28,727 crore (US$ 3.68 billion) in the mining sector over 2022-25.
• In 2022, PLI Scheme for domestic production of specialty steel has been approved with an outlay of Rs. 6,322 crore (US$ 762.4 million) by the Cabinet.
• Mines and Minerals (Development and Regulation) Amendment Act, 2021, notified on 28.03.2021, for giving boost to mineral production, improving ease of doing business in the country and increasing contribution of mineral production to GDP.
• Enactment of Mines and Minerals (Development and Regulation) Amendment Act, 2021 enabled captive mines owners (other than atomic minerals) to sell up to 50% of their annual mineral (including coal) production in the open market.
• Import duty on Anthracite/Pulverized Coal Injection (PCI) coal, Coke, and Semi-coke and Ferro-Nickel were reduced to zero.
• Export duty on Iron ores/ concentrates and iron ore pellets was raised to 50% and 45%, respectively.
• In addition, 15% export duty was imposed on pig iron and several steel products.
• District Mineral Foundation (DMF) has been established in 622 districts of 23 States and a total of Rs. 71,128.71 crore (US$ 8.5 billion) has been collected till October 2022 under DMF.
• In November 2022, the government removed export duties on steel and stainless steel to strengthen the nation's steel sector and allow it to firmly establish its position in the global market.
• The government plans to monetise assets worth Rs. 28,727 crore (US$ 3.68 billion) in the mining sector over 2022-25.
• The Ministry of Mines of the Government of India has signed MoUs with different nations. 
• The Ministry of Mines notified the Mineral Conservation and Development (Amendment) Rules in November 2021 to provide rules regarding conservation of minerals, systematic and scientific mining, and development of minerals in the country for environment protection.
• Steel Authority of India Ltd. (SAIL) and Central Public Sector Enterprises (CPSEs), under the Ministry of Steel, supplied 48,200 tonnes of steel for the Purvanchal Expressway, which was inaugurated by Prime Minister Narendra Modi on November 16, 2021.
• As part of unlocking India’s vast mineral potential by exploration this year, the Ministry of Mines has handed over 152 mineral block reports to different state governments until November 2021. Also, 52 potential G-4 mineral blocks approved by the Geological Survey of India (GSI) have been handed over to 15 state governments.
• In July 2021, the Odisha government approved five key industrial projects worth Rs. 1.46 lakh crore (US$ 19.60 billion) that are expected to boost capacity of steel production by 27.5 million tonnes.
• In June 2021, the Union Cabinet, chaired by the Prime Minister Mr. Narendra Modi approved the memorandum of understanding (MoU) to be signed between the Ministry of Mines and the Secretariat of Mining Policy of the Ministry of Productive Development of the Argentine Republic. The MoU will provide an institutional mechanism for cooperation in the field of mineral resources.
• In Union Budget 2021, the government reduced customs duty to 7.5% on semis, flat and long products of non-alloy, alloy, and stainless steels to provide relief to MSMEs.
• To boost recycling of copper in India, the government announced reduction of import duty on copper scrap from 5% to 2.5% in the Union Budget 2021.
• The National Steel Policy aims to boost per capita steel consumption to 160 kgs by 2030-31. The government has a fixed objective of increasing rural consumption of steel from the current 19.6 kgs per capita to 38 kgs per capita by 2030-31.

There is a significant scope for new mining capacities in iron ore, bauxite and coal and considerable opportunities for future discoveries of sub-surface deposits. Infrastructure projects continue to provide lucrative business opportunities for steel, zinc, and aluminium producers. Iron and steel make up a core component for the real estate sector. Demand for these metals is set to continue given strong growth expectations for the residential and commercial building industry.

The Government of India has also helped in the development of the metals and mining sector in India by launching key policy initiatives. The National Mineral Policy, which was approved by the government in February 2019, has ensured improved regulation and enforcement, more transparency, balanced social and economic growth, and sustainable mining techniques. The policy grants industry status to the mining activities and boost private sector funding.

Additionally, it aims to facilitate the merger and acquisition of mining companies, entice private sector involvement in exploration, and permit the transfer of mineral corridors created specifically for metals and mining leases.

In the future, both increased domestic demand and exports are projected to play significant roles in driving the industry's expansion and its contribution to GDP growth in a post-covid environment.

References: Media Reports, Press Information Bureau (PIB), Union Budget 2020-21, Ministry of Mines, Ministry of Coal, Ministry of Steel, Central Electricity Authority, Ministry of New and Renewable Energy, DPIIT

Related News

India's zinc consumption is set to exceed 2 million tonnes in the next decade, doubling from the current 1.1 million tonnes, says IZA’s Mr. Andrew Green.

The IIP for July 2024 shows a 4.8% growth, driven by strong performance in Electricity and Manufacturing sectors.

India's steel value chain investments in process and digital technologies are projected to reach US$ 2.7 billion by 2030, driving efficiency and sustainability in the industry.

Commerce and Industry Minister Mr. Piyush Goyal highlighted plans to double India-Africa trade to US$ 200 billion, focusing on key sectors like agriculture and critical minerals.

India's steel demand is set to grow 8% in 2024-2025, driven by infrastructure development and rising consumption.

Major Mining States

• Andhra Pradesh
• Madhya Pradesh
• Maharashtra

Industry Contacts

• SAIL - Steel Authority of India Ltd.
• Federation of Indian Mineral Industries
• Indian Stainless Steel Development Association

IBEF Campaigns

Aatmanirbhar Bharat Utsav 2024

Union Minister of External Affairs, Dr. S. Jaishankar and Union Commerce an...

Bharat Mobility 2024

Bharat Mobility Global Expo 2024 1 – 3 Feb 2024, Bharat Mandapam, ...

Unlocking Potential: The Rise of the Recommerce Market in India

With technology progressing quickly in line with Moore’s law and technology companies, such as Apple, Dell, Lenovo, Samsung, stirring up gadgets...

Revolutionising Connectivity: The Surge of India’s Telecom Sector

The Indian telecom sector has evolved during last two decades in terms of growth and competition. From being dominated by a state owned monopoly carri...

India’s Gems and Jewellery Sector Going Global

India’s gems and jewellery (G&J) sector is an indispensable part of its culture and economy and has contributed immensely to enhancing the n...

The Future of Artificial Intelligence in Healthcare: Transforming Patient Care

The relentless march of Artificial Intelligence (AI) is reshaping many indu...

Surge in Credit Card Spends: Understanding Key Drivers and Implications

India's evolving financial landscape has transformed credit cards from ...

Soaring High: Record-Breaking Domestic Air Traffic Signals a Booming Indian Tourism Industry

Travel and tourism sector was one of the severely affected sectors during t...

Not a member

India's Mining Sector: Towards a Sustainable and Equitable Future

Mining is an important activity for India. With 3527 mining leases for 40 major minerals, extending a total lease area of roughly 315,986 hectares, India is a major producer of crucial minerals. The mineral resource sector has the potential to impact environmental sustainability, social inclusion, and economic development.

The Mineral resource sector has played a vital role in the world economy and human development from time immemorial. The achievement of the United Nations' Sustainable Development Goals (SDGs) and the execution of the Paris Agreement is dependent on the sector. While the sector is diverse, it has the opportunity and potential for positive contribution to all 17 SDGs and the execution of the Paris Agreement. The sector's contribution to SDGs encompasses both, its role in advancing several SDGs as well as hindering the achievement of the SDGs and related targets. The world's population estimated to rise from over 7.8 billion to 9.6 billion by 2050 presents additional challenges on the sector in meeting the demands of the rising population and growing per capita consumption. While the introduction of global, national regulations and legislation in the last two decades has been remarkable, the implementation of the same varies greatly between regions, particularly in developing countries such as India.

Mining is an important activity for India. With 3527 mining leases for 40 major minerals, extending a total lease area of roughly 315,986 hectares, India is a major producer of crucial minerals such as chromite, iron ore, coal, and bauxite, among others. Mining contributes to 2.5 per cent of the Gross Domestic Product (GDP). The total mineral production is valued at 1,299,500 million, and 18,963,480 million of mineral exports in 2020. The mining sector plays a vital role in the national economy, employs more than half a million persons, and contributes to the country's revenue through exports, royalty (tax paid in return to the right to use), dead rent, cess, sales tax, and duties. Yet, the environmental (land degradation, land conversion, mine wastes, air pollution, groundwater depreciation, and pollution of water bodies) and social externalities associated with mining are of severe concern. 1 Land-use-related impacts, population displacement and resettlement, health-related impacts, social and cultural disruption, inequality, and conflicts appear to be the most concerning social impacts of mining in India. 2

The fact that much of the country's natural resources are located in forest-covered areas raises further environmental and socio-economic concerns. As one of the fastest-growing economies of the world, there is increased pressure for metals/minerals to meet the demands of an estimated 6 per cent growth in GDP, in the following decade. India's commitment to the Paris Agreement entails the requirement of crucial minerals for the transition to a lower-carbon economy. The 'Make in India' initiative for expansion of the industrial sector would further increase the mineral resources demand. Depletion of mineral reserves is an issue of concern already. Reports indicate a 15 per cent drop in iron ore production in 2018, with reserves in Goa expected to exhaust within a decade and an anticipated reduction in production from Odisha. 3 All these, demand the incorporation of sustainability and equity in the sector.

Mineral Resources and Sustainable Development

The mineral resource sector has the potential to contribute significantly to the achievement of the SDGs through socio-economic benefits, foreign exchange earnings, employment and livelihood, development of infrastructure, communication, provision of vital services, and supply of raw materials for green technologies. As mentioned earlier, the mineral resource sector has the potential to impact environmental sustainability, social inclusion, and economic development. The impacts on water, land, climate and humans as well as on flora, fauna that are reliant on these resources impacts environmental sustainability. The SDG6 (Clean Water and Sanitation), SDG15 (Life on Land), SDG7 (Energy Access and Sustainability), and SDG13 (Climate Action) are affected by this sector.

The mineral sector can pose challenges in terms of impact on livelihoods and human rights, provide economic opportunities to communities near the mines and beyond. An inclusive and equitable approach will help the sector towards achieving SDG1 (End Poverty), SDG5 (Gender Equality), SDG10 (Reduced Inequalities), and SDG16 (Peace, Justice and Strong Institutions). Generation of economic opportunities is also the key towards achieving SDG8 (Decent Work and Economic Growth). There are several direct and indirect economic benefits that can be accrued through this sector. The sector can drive innovation and result in the development of infrastructure for transportation, communication and help to develop energy and water infrastructure contribution to the SDG9 (Infrastructure, Innovation and Industrialization) targets. As the sector provides raw materials critical for development there is an opportunity for collaboration (SDG17: Partnership for the Goals) within and beyond the sector to minimize waste and act as a driver for reuse and recycle (SDG16: Responsible Consumption and Production) through a circular economy approach.

The main challenge in the integration of sustainable development in mineral resource extraction and production is on account of the non-renewable and finite nature of mineral resources further exacerbated by the dependence on other resources such as water, energy, land, etc., for extraction/processing. Global primary materials consumption is expected to increase two-fold by 2060, from 89 gigatonnes (Gt) in 2017. 4 Much of the mineral resource extraction is in developing countries and regions with poor human development indicators. Reinvestment of the revenue earned from mining for equity, sustainable development, maintaining the value of natural resources extracted and ensuring inter-generational equity is essential. Several studies reinforce non-renewable exhaustible mineral resources as finite shared inheritance and framing and accounting the proceeds from mineral exploitation can result in major improvements in natural resource management. 5 The three principles of physical sustainability, generational equity, and global equity for achieving sustainable development are thus imperative.

Environmental Legislations and Regulations Supporting Sustainable Development in the Indian Mining Sector

The Indian mining sector is mainly governed by the Mines Act, 1952 and the Mines and Minerals Development and Regulation Act, 1957, ('MMDR'). While the amendment of the MMDR, 1957 has been a watershed moment in the country in line with the Sustainable Development Framework, several environmental regulations existed since the 1970s. Some of the early enactments towards environmental protection have been the first steps in paving the path for sustainable development in the mining sector. The government policy in India in the initial years after independence considered minerals as a 'basic' and 'strategic' importance for the country. Hence, the sector was led in the absence of many environmental and social regulations. The environmental and social considerations gained impetus in the country with the participation of India in the UN conference on Human Environment, Stockholm, 1972. Several environmental enactments were a response to the implementation of the recommendations at the Stockholm Convention.

The Coal Mines (Conservation & Safety) Act, 1974, aimed at improving efficiency of coal, promoting technology for reducing damage to environment, conservation of coal resources and others. Some Acts (along with their associated rules) for management of the environment, applicable to the mines include—i) The Water (Prevention and Control of Pollution) Act, 1974; ii) The Water (Prevention and Control of Pollution) Cess Act, 1977; and iii) The Air (Prevention and Control of Pollution) Act, 1981. The introduction of the Environment Protection Act (EPA), 1986 (amended in 2006) and the Forest (Conservation) Act, 1980 aimed at monitoring mining activities for the protection of the environment during all the phases of a mineral resource extraction cycle including planning, production process, and closure. These paved the first step for acknowledging natural resources and society, incorporating two of the pillars of sustainable development. The National Environmental Policy, 2006, aimed at conserving environmental resources by increasing resource efficiency, promoting intergenerational equity, safeguarding the principles of good environmental governance, and promoting environmental protection.

Globalization, other developments internationally, and the country's commitment to Agenda 21, initiated the discourse on sustainable development in various sectors of the economy. Since 1994, Environmental Impact Assessments (EIA) and Clearances were made statutory for 29 activities including mining. The Forest (Conservation) Act, 1980; the Forest Right Act, 2006; and the Land Acquisition Act, 2013 are also important regulations. The Noise Pollution Rules, 2000; Ozone Depleting Substances Rules, 2000; Hazardous and Other Wastes Rules, 2016; Solid Waste Management Rules, 2016 are applicable for environmental management of the sector.

The Sustainable Sand Mining Guidelines (2020) aim to maintain and restore the ecology of the river and other sand sources through sustainable and environment-friendly management practices. The need of circular economy for the achievement of sustainable development, gained recognition. To expedite the transition from a linear to a circular economy, 11 committees led by the respective ministries (for addressing 11 focus sectors, one of them being scrap metals) have been formed.

Benefit Sharing for Sustainable Development and Equitable Future

Benefit sharing addresses the mismanagement of resource wealth in the mineral resource-rich districts of India that continue to rank low in human development indicators, widening adverse socio-economic externalities, 6 lacking alternate opportunities for economic development. Effective implementation of benefit-sharing strengthens the case for inclusive mineral development, retaining significant economic benefits in the region of mineral extraction and investing for the future. 7

From the mining companies' perspective, the Company's Act, 2013 mandated companies to share profit through Corporate Social Responsibility on developmental challenges and thus contribute towards development activities for building the social capital of the region.

The Mineral Foundation of Goa (MFG), a non-profit organization founded by nine Goan mining corporations to address social and environmental externalities in the State's mining belt, has completed several development projects and worked with the State for the benefit of the mining communities in Goa.

Sustainable development in the mining sector in India was first formally mandated with the MMDR amendment in 2015, following the recommendations of the Committee led by Anwarul Hoda in 2005. This led to the development of the District Mineral Foundations (DMFs) for driving sustainable development of the region and the people affected by mining. The creation of the DMF has been one of the most important steps towards institutionalizing benefit sharing in the Indian mining sector. The Act was further amended in 2020 to sustain mineral production and in 2021 to further boost mineral extraction.

The National Mineral Policy, 1993, an important legal framework for the mines and mineral sector stipulates provisions for regulation of minerals, reviewed as the National Mineral Policy, 2008 for the first time incorporated the need for sustainable mining to preserve and augment the exhaustible mineral reserves and optimal utilization of natural resources. It established all mining to be undertaken within the comprehensive Sustainable Development Framework, which includes guiding principles for effective closure of mines, with appropriate reclamation/rehabilitation for maintaining the ecological condition. The National Mineral Policy approved in February 2019 incorporates the public trust doctrine, intergenerational equity principle, and ownership of natural resources as commons. It holds the State as the trustee on behalf of the people to ensure future generations receive the benefit of inheritance calling for stringent regulations to ensure environmentally sustainable mining practices incorporating social and economic considerations.

Several jurisdictional deliberations have also led to the suspension of mining leases, compensation, and reassessment of environmental and social considerations often promoting sustainable development. These include the amendment of the MMDR, 1957; formulation of the National Mineral Policy (2019); incorporation of sustainable development activities in mining regions through the Maharashtra Mineral Development Fund (MDF), 1999; Odisha Mineral Bearing Areas Development Corporation (OMBADC), 2014; the Comprehensive Environmental Plan for Mining Impact Zone (CEPMIZ), 2014; the Goa Mineral Ore Permanent Fund Trust Scheme (2014) among several others. To ensure Intergenerational Equity (IE) and Sustainable Development, Goa's Permanent Fund—the first-of-its-kind in India, obligating the State and the Legislature on behalf of present-day and future generations to protect current resource wealth and ensure biological survival.

The Supreme Court judgment (1997), of 'Samata vs. State of Andhra Pradesh,' for the first time mandated 20 per cent of profits from mining for the development of mining-affected regions.

The Way Forward

Despite India's longstanding institutions for environmental protection, regulatory violations, poor implementation of environment and community rights, over-extraction, and illegal mining continue to anguish the sector. 8 Modest experience with benefit-sharing highlights inefficient management of funds, underutilization, inadequate participation of mining communities, lack of transparency, and need for enhancing governance. 9

The central role of political and administrative bodies has led to DMF funds to be considered as Government funds leading to poor utilization for the benefit of the mining regions. Several funds including the DMF, CEPMIZ, OBMADC, etc., suffer from the above. Transfer of DMF funds for other activities has led to the Government order (2021) reiterating the allocation of DMF funds for mine-affected regions and people. These demand adequate participation of the community affected by mining especially in decision making, transparency in the use of funds, enhanced capacities of local institutions, and good governance. Local institutions are inadequately represented or lack the capacities in decision making, planning, implementation, and monitoring. The Ministry of Mines in January 2019 recommends the engagement of Gram Sabhas in the planning activities of the DMF and several state DMF laws necessitate the same. Mining-affected people in most remote areas of India often lack access to technology, adequate information of these funds/initiatives, 10 and are unaware of their rights. Local institutions have low awareness, and lack the capacities to engage. While the legal institutions are in place enhancing the capacities of local institutions, and human capability is crucial and needs to be mandated within the sustainable development initiatives.

Transparency in the use of the funds for sustainable development is also questionable with very less information on the public domain regarding funds such as the Goa Mineral Ore Permanent Fund Trust, the CEPMIZ and even the DMF in many states. India is yet to adopt the Extractive Industries Transparency Initiative (EITI), the global standards of good governance ensuring transparency and accountability of the sector.

Regulations mandate socio-economic rehabilitation and environmental restoration of mined-out areas, especially post-closure of mines. Yet, there is a lack of evidence on the implementation of the same. Adequate funding provisions for post-mining rehabilitation and strict regulation of the same should be ensured. Appropriate monitoring mechanisms with community-based monitoring at the regional level are recommended in the mineral production, environmental and social regulation and sustainable development initiatives.

Stringent regulatory mechanisms are required in the sector. Illegal mining is a violation of Section 21 of the MMDR Act. Reports estimate the existence of almost 115,000 illegal mines. Poor implementation of environmental regulations in the legal mines continues.

Resource efficiency and circular economy can reduce the pressure on mineral resources through structural changes and technology while maintaining the growth potential. Life cycle management addresses the renewability of minerals and associated environmental issues during extraction, production, use, and waste management. Closing the resource loop through recycling, remanufacturing, slowing the resource loop through reuse, narrowing the resource flow through increased material productivity, improving assets, and changing the individual behaviour is necessary for the protection of virgin resources and efficient management of supporting resources.

To conclude, a holistic approach harmonizing all the facets of sustainable development in the mining sector must be aligned by the Government and the Industry.

[1] Ghosh, 1989; Bina Agarwal, 1992; Tiwari & Dhar 1994; Dhar, 2000; Ghose, 2000 [2] Saha et al., 2011; Singh & Singh, 2016; Bisht & Gerber, 2017 [3] FICCI, 2018 [4] OECD, 2021 [5] Basu & Pegg, 2020 [6] Basu and Pegg, 2020; CSE, 2011 [7] Söderholm & Svahn, 2015 [8] Shreshta Banerjee, 2020 [9] CSE, 2018; OXFAM, 2018; Joyita Ghose, 2018 [10] CSE, 2018

Article contributed by Ms Mary Abraham, Mu Gamma Consultants Pvt Ltd.

Subscribe to our Newsletter!

Asking the better questions that unlock new answers to the working world's most complex issues.

Trending topics

AI insights

EY Center for board matters

EY podcasts

EY webcasts

Operations leaders

Technology leaders

EY helps clients create long-term value for all stakeholders. Enabled by data and technology, our services and solutions provide trust through assurance and help clients transform, grow and operate.

EY.ai - A unifying platform

Strategy, transaction and transformation consulting

Technology transformation

Tax function operations

Climate change and sustainability services

EY Ecosystems

EY Nexus: business transformation platform

Discover how EY insights and services are helping to reframe the future of your industry.

Case studies

Advanced Manufacturing

How a manufacturer eliminates cost and value leakages with AI-ML

03 Jul 2024 Vinayak vipul

How a young cement company grew 2.5x with organizational and functional transformation

05 Apr 2024 EY India

How a state government transformed into an ecotourism haven

12 Mar 2024 EY India

We bring together extraordinary people, like you, to build a better working world.

Experienced professionals

EY-Parthenon careers

Student and entry level programs

Talent community

At EY, our purpose is building a better working world. The insights and services we provide help to create long-term value for clients, people and society, and to build trust in the capital markets.

India needs robust datasets to progress towards agentic future: EY Report

24 Sep 2024 EY India

August 2024 recorded PE/VC Investments worth US$2.9 billion across 92 deals: EY-IVCA Report

20 Sep 2024 EY India

India needs to develop a content tracking system for Gen AI: EY - FICCI Report

19 Sep 2024 EY India

No results have been found

Recent Searches

Identifying AI generated content in the digital age: The role of watermarking

Explore the future of AI content and the critical role of digital watermarking in protecting creators' rights and ensuring content authenticity.

Unlocking low-grade iron ore: Role of beneficiation in India's steel sector

Explore the urgency of iron ore beneficiation to meet industry demand and improve eco-efficiency in our comprehensive guide on modern techniques.

Money in motion: Enabling the evolving finance sector with wealthtech

Explore how wealthtech is transforming finance, offering innovative solutions for a dynamic industry and enhancing customer wealth management. Learn more.

Select your location

How sustainable practices can drive inclusive growth in modern business

• Link Copied

Download the full pdf

The future of mining in india lies in tech innovations, propelling the nation towards self-reliance and sustainable growth. .

• Automation and digitalization enhance mining efficiency, minimizing environmental impact.
•  Collaboration among the mining industry, policymakers, and researchers is crucial in this tech shift.

I ndia's mining and coal sectors serve as the foundation for a thriving industrial base in the country. With abundant mineral resources, India is a global leader in the production of iron ore and coal. Despite its significant reserves, India continues to import a substantial portion of its mining needs with several challenges hindering the realization of a self-reliant mining sector. Seasonal fluctuations, stringent environmental regulations, and the labor-intensive nature of mining operations further complicate the industry landscape.

EY and Confederation of Indian Industry’s (CII) recent report titled ‘Utkrisht Bharat in Mining’ highlights the technological interventions needed to transform the growth of the Indian mining sector. It further sheds light on the urgent need to adopt advanced methods, such as in-pit crushing, conveyorization, automation, and digitalization. These technologies not only promise immediate benefits but also pave the way for a greener, more efficient future for the mining industry in India.

Technological innovations: A glimpse into the future

The mining sector can achieve a significant boost by implementation of key technologies. In-pit crushing, facilitated by semi or fully mobile crushing plants, and conveyorization of mines promise enhanced operational efficiency. Automation and digitalization play pivotal roles, offering seamless integration and real-time data analysis.

Electrification and sustainability: Redefining mining operations

One of the major benefits of embracing advanced technologies is the increased electrification of mining operations. By reducing diesel consumption and incorporating electricity sourced from renewable sources, the sector can significantly reduce its environmental footprint. Moreover, these technologies enhance operational reliability, ensuring continuous mining even in adverse weather conditions. Automation and digitalization further bolster system reliability, ensuring high throughput throughout the year.

Financial impact: Driving efficiency and reducing expenses

Beyond environmental benefits, adopting these technologies directly impacts the financial landscape of mining operations. Efficient resource utilization and streamlined processes, there is a potential for a substantial reduction in operational expenses. The report suggests that successfully applying these technologies can result in a remarkable  20-30 % decrease in operational costs. This reduction not only enhances profitability, but also improves the overall financial attractiveness of mining operations in India.

Collaboration for a prosperous future

Considering these technological advancements, it is imperative for all stakeholders to collaborate effectively. The growth of the mining sector is intertwined with the nation's progress, and a collective effort is essential to fully leverage the benefits of these innovations.

The report presents a twelve-point action agenda for mining in India, serving as a roadmap for stakeholders to navigate the challenges and opportunities ahead.

India's mining sector stands at a pivotal juncture, with the potential to drive economic growth and contribute significantly to the vision of an 'Atmanirbhar Bharat' (self-reliant India). By addressing challenges through technological innovation, sustainable practices, and community engagement, the sector can unlock its true potential. As the industry evolves, strategic reforms and a collective effort from all stakeholders will be instrumental in shaping a competitive, eco-friendly, and socially responsible mining sector for India's future.

About this article

How EY can help

Enhanced Corporate Reporting and Accounting

Through enhanced corporate reporting, EY can support finance teams to meet demands for high-quality enhanced financial and nonfinancial information.

• Connect with us
• Our locations
• Legal and privacy
• Open Facebook profile
• Open X profile
• Open LinkedIn profile
• Open Youtube profile

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

Switch language:

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.

• Share on Linkedin
• Share on Facebook

Speaking at the Global Mining Summit in December 2020, India’s Minister of Mines Pralhad Joshi reaffirmed the nation’s commitment to “structural reforms” to its mining sector, “to increase participation of the private sector in mineral exploration and redefine the norms of exploration for auction of mineral blocks, to ensure a seamless transition from exploration to production”.

India’s mining industry forms a major part of the nation’s economy, both in terms of its own contribution to GDP and its supplying the raw materials that underpin India’s considerable manufacturing and infrastructure industries. India is home to the fourth largest coal reserves in the world and also hosts significant sources of bauxite, diamonds, and titanium ore. 

Go deeper with GlobalData

India Mining Industry Fiscal Regime Analysis including Governing Bo...

Data insights.

The gold standard of business intelligence.

Find out more

Why is India’s mining sector important?

India has ambitious plans for economic growth. Addressing the World Economic Forum in January 2018, Indian Prime Minister Narendra Modi expressed his driving desire: to make India a $5tn economy by 2025. It was a claim optimistically restated towards the end of 2020, following what could be considered a slight stumbling block to economic growth in the form of the Covid-19 pandemic.

“Today, our country is optimistic of the future, it is optimistic of reaching the $5tn target,” Modi said during an interview with India’s Economic Times . 

“India is the third largest economy in terms of purchasing power parity. We want India to become the third largest in terms of current US dollar prices as well. The $5tn target will help us achieve that.”

It’s a bold target – becoming a $5tn economy in 2025 would require almost doubling the size of India’s economy in just five years – and it’s a target that the mining industry must play a key role in. The mining sector’s contribution to India’s GDP has been diminishing in recent years, which the Federation of Indian Mineral Industries attributed to the under-exploration of the nation’s “obvious geological potential” and a decreasing expenditure on exploration activities in the country.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

Joshi said that the mining industry will be core to reaching the $5tn goal, both in terms of its direct contribution to GDP as well as its ability to grow downstream industries and employment. But growing India’s mining industry to a point where it can support a wider push for rapid economic growth requires hefty capital investment from private players, underpinned by renewed support from the state.

Why are changes needed?

India’s mining law has remained relatively unchanged since the initial legislation governing the sector was introduced in 1957, with the Mines and Minerals (Development and Regulation) Act, or the MMDR Act. MMDR provides a regulatory framework that categorises minor minerals – those governed by state governments in accordance with delegated powers – and major minerals, the commodities overseen by India’s Central Government. Minor minerals include stones for building, clay, and sand, whereas major minerals include all minerals other than mineral oils, petroleum, and natural gas. 

The pursuit of rapid economic growth in the next five years will require a strengthening across all of India’s industries. Currently, India imports coal from countries such as Australia, Indonesia, and South Africa – despite being host to globally significant sources of the fossil fuel itself. The country has already begun to open commercial coal mining to private players, in a move that will aim to keep coal imports at a low level and strengthen domestic production.

More general reforms to the mining law will hope to foster this competitiveness between public sector undertakings and private projects more broadly across the sector – something that has been missing from India’s industry. 

“Our aim is to encourage industry players to adopt sustainable technology solutions including green mining, coal ash ponds, and other newer technology vehicles that can further accelerate the productivity with the economy of scale and also better environmental performance,” Secretary at the Ministry of Coal Anil Kumar Jain told a virtual CEO roundtable in November 2020.

What changes are being made?

India is moving quickly with plans to revamp its mining sector. The flurry of reforms proposed include amending two provisions in the MMDR Act that would free up around 500 potential mining sites that have been rendered inaccessible by existing regulatory frameworks. 

Under current legislation, these potential leases have either surpassed the legal timeframe for the granting of a mining lease or cannot be reallocated at auction due to legislative red tape. These moves would essentially streamline the transition process between the various stages of mine development work, from exploration right through to production. 

There are further proposals to create a better statutory definition of illegal mining. Previously, there has not been a distinction between illegal mining done outside a leasehold area and mining in violation of approvals and clearances within a mining lease area. Under new amendments, illegal mining and the government’s powers in tackling the practice will only apply to mining committed outside a lease area, rather than mining that breaches regulations within an otherwise permitted lease area.

Who wins, and what are the concerns?

India’s cabinet approved the mining reforms at a cabinet meeting in January 2021 chaired by Modi. The winners, simply, are mining companies. These reforms are largely targeted at streamlining the processes and opening up more sites in India to mine, while also levelling the playing field between private enterprise and state-owned endeavours. 

Government-backed companies will be charged levies on the extension of mining leases, and the reforms also pave the way for the reallocation of non-producing blocks owned by government companies.

The changes to the definition of illegal mining also provide a somewhat controversial boon to mining companies. India’s mining law enables the government to recover 100% of the value of illegally extracted minerals. 

Mining within a lease area will become exempt, meaning any violation within that area, be that over-extraction beyond the mining plan or otherwise, will no longer be considered illegal mining in the same sense. Critics fear this could be abused, with private enterprises potentially facing little pushback on poor environmental records or over-extraction.

The government has repeatedly pledged that these reforms will reduce environmental damage from the mining industry and will embed sustainability at the core of all operations. It hopes that a more competitive industry will stimulate innovations and promote the use of new technologies to enhance sustainability. 

Modi’s government has also been criticised for proceeding with such sweeping reforms to the mining industry with minimal consultation. Proposals were publicly released in late August 2020, with the notice from the Ministry of Mines inviting comments from the public, states and territories, industry, and other stakeholders – but the timeframe given for feedback was just 10 days.

The Mineral Inheritors Rights Association, formed in March 2020 to push for transparency and accountability in India’s extractive industries, asserted that the 10-day period was a violation of India’s Pre-Legislative Consultation Policy.

“We are anguished to note that only 10 days have been provided for the proposed mining reforms that… would have huge implications across the country,” the association said in a statement. “What is even more disturbing and dangerous is that the state governments have not yet been consulted and a 10-day period for the states to respond undermines the federal spirit of this nation.”

Sign up for our daily news round-up!

Give your business an edge with our leading industry insights.

More Relevant

UK and Indonesia sign agreement on critical minerals 

Copper potential: september issue of mine australia out now, cunningham signs $152m deal to buy out american creek resources, can ai mitigate the global shortage of geologists, sign up to the newsletter: in brief, your corporate email address, i would also like to subscribe to:.

MINE Australia : Mining Technology Focus (monthly)

MINE : Mining Technology Focus (monthly)

Thematic Take (monthly)

I consent to Verdict Media Limited collecting my details provided via this form in accordance with Privacy Policy

Thank you for subscribing

View all newsletters from across the GlobalData Media network.

Mining Plan Received

Total Visitors:  2 4 4 9 3 3 4

• Chemicals & Resources ›
• Mining, Metals & Minerals

Industry-specific and extensively researched technical data (partially from exclusive partnerships). A paid subscription is required for full access.

Leading mining M&A deals in India 2023-2024, based on value

In India, the most valuable merger and acquisition (M&A) deal in the mining industry between January 2023 and March 2024 was an asset transaction from Zinc Intertational Assets to an undisclosed acquirer for nearly three billion U.S. dollars. This deal was announced in February 2023. The biggest deal in the first quarter of 2024 was the acquisition of Vedanta by an undisclosed buyer for 209 million U.S. dollars.

Leading mining industry merger and acquisition deals in India in 2023 and 2024, based on value (in million U.S. dollars)

• Immediate access to 1m+ statistics
• Incl. source references
• Download as PNG, PDF, XLS, PPT

Additional Information

Show sources information Show publisher information Use Ask Statista Research Service

2023 to March 2024

Other statistics on the topic

Net profit margin of the top mining companies 2002-2024

Combined revenue of the top mining companies 2005-2024

Global list of leading mining companies 2024, based on revenue

Largest gold mining companies Australia 2024, by market capitalization

To download this statistic in XLS format you need a Statista Account

To download this statistic in PNG format you need a Statista Account

To download this statistic in PDF format you need a Statista Account

To download this statistic in PPT format you need a Statista Account

As a Premium user you get access to the detailed source references and background information about this statistic.

As a Premium user you get access to background information and details about the release of this statistic.

As soon as this statistic is updated, you will immediately be notified via e-mail.

… to incorporate the statistic into your presentation at any time.

You need at least a Starter Account to use this feature.

• Immediate access to statistics, forecasts & reports
• Usage and publication rights
• Download in various formats

* For commercial use only

Basic Account

• Free Statistics

Starter Account

• Premium Statistics

The statistic on this page is a Premium Statistic and is included in this account.

Professional Account

• Free + Premium Statistics
• Market Insights

1 All prices do not include sales tax. The account requires an annual contract and will renew after one year to the regular list price.

• Personal Finance
• Today's Paper
• Partner Content
• Web Stories
• Entertainment
• Social Viral

India reports first case of Mpox Clade 1b strain that triggered WHO alert

The clade 1b strain has been found in a 38-year old man from kerala's malappuram district who had tested positive last week.

(Photo: Shutterstock)

Listen to This Article

More from this section.

Assembly polls highlights: Modi only talks about his 'Mann ki Baat', not 'kaam ki baat,' says Rahul

LIVE: PM's principal secy chairs meet to analyse plans for tackling air pollution in Delhi-NCR

Bhagwant Mann govt inducts five AAP MLAs as Cabinet ministers in Punjab

FM Sitharaman clarifies remarks on EY employee's death: 'No victim shaming'

Rau's IAS case: Court grants interim bail to coaching's CEO, coordinator

Mpox patient discharged from Delhi's LNJP Hospital after 12 days: Report

Mpox: How Africa's scientists are protecting the world from contagion

Gold mining town in Congo becomes mpox hot spot as new strain spreads

Suspected mpox infection reported from Kerala, samples sent for testing

21-day quarantine, tests: Bengaluru airport sets up Mpox testing stations

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Sep 23 2024 | 6:45 PM IST

Explore News

• Suzlon Energy Share Price Adani Enterprises Share Price Adani Power Share Price IRFC Share Price Tata Motors Share Price Tata Steel Share Price Yes Bank Share Price Infosys Share Price SBI Share Price Reliance shares
• Latest News Company News Market News India News Politics News Cricket News Personal Finance Technology News World News Industry News Education News Opinion Shows Economy News Lifestyle News Health News
• Today's Paper About Us T&C Privacy Policy Cookie Policy Disclaimer Investor Communication GST registration number List Compliance Contact Us Advertise with Us Sitemap Subscribe Careers BS Apps
• ICC T20 World Cup 2024 Business Standard at 50 Paralympics 2024 Jammu Kashmir Elections 2024 Haryana Elections 2024 ICC Women's T20 World Cup 2024

Fresh off a cenbank ban, India's IIFL Finance plans $1.2 bln fundraise via bonds, official says

• Medium Text

Sign up here.

Reporting by Siddhi Nayak and Dharamraj Dhutia; Editing by Savio D'Souza

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

German Greens leadership quits after series of election blows

The joint leaders of the German Greens, Omid Nouripour and Ricarda Lang said they would step aside, making way for a new leadership to be elected at the next party congress.

• Your Profile
• Your Subscriptions
• Support Local News
• Payment History
• Sign up for Daily Headlines
• Resources & Agriculture

B.C. NDP releases mining support plan

• Share by Email
• Share on Facebook
• Share on LinkedIn
• Share via Text Message

On the heels of a B.C. Conservative platform on mining released earlier today, the B.C. NDP followed this afternoon with the release of their own plan for mining, with an emphasis on critical minerals.

One thing the two plans agree on: More than a dozen critical mineral mine proposals in B.C. need to be fast-tracked through the regulatory process.

“Northwest B.C. has the critical minerals that are in high demand worldwide, giving us a huge advantage in the global movement to a clean economy,” Premier David Eby said in a press release. “Our plan will get mining projects moving that grow B.C.’s economy, create good jobs across the Northwest, and benefit communities directly.

“There are currently 16 new or expanded critical mineral mines proposed in B.C., and we'll fast-track priority projects to grow the economy and create jobs.”

Eby also pledged support to cities and towns in Northwestern B.C. with $250 million through the Resource Benefits Alliance for infrastructure, with the money to be spent over five years.

“For too long, communities across B.C.’s Northwest saw the impacts of resource projects -- like more wear and tear on roads and highways, increased demand on local services – but they weren’t seeing enough of the benefits,” Eby said.

“We took action to change that. We’re investing money directly back into infrastructure communities like Terrace and Vanderhoof while building up the economy.” Eby’s platform for mining includes guaranteed permitting review timelines for “priority critical mineral projects.” Critical mineral mines proposed for B.C. include copper and nickel.

Presumably gold mines and metallurgical coal mines will not get the same consideration of guaranteed timelines, as neither gold nor metallurgical coal are considered to be critical minerals by the B.C. government.

Eby is promising to create a new Critical Minerals Office, which will support First Nations engagement and reduce duplication with the federal government. He is also pledging to continue to build out B.C.'s electrical grid to electrify mines. Eby’s mining platform also pledges union training programs to help build the skilled workforce needed by the mining sector.

Like Eby's plan, the B.C. Conservatives also released a mining platform today that includes a pledge to speed up permitting.

“We are pleased to see both main parties recognize the urgent need for permitting reform for our industry,” said Michael Goehring, president of the Mining Association of B.C. “Every permit granted to a mining project is a permit to prosperity -- prosperity that will improve the quality of life for people and communities across our province.

“Both main parties clearly understand BC’s critical minerals potential.”

[email protected]

twitter.com/nbennett_biv

• Oldest Newest

This has been shared 0 times

More resources & agriculture.

• Business News
• India Business News

India tops global demand for data analytics jobs

About the Author

A business journalist with around two decades of experience tracking key consumer-focussed sectors like consumer durables, retail, consumer goods, aviation, automobiles and advertising, as well as economic ministries of the Union government. Now, writes primarily on pharmaceuticals and healthcare, and on issues of consumer interest. Besides also looks at trends that are shaping consumer behaviour and the broad consumer landscape. \nYou can follow Rupali on Twitter@Rupalijee. Read More

Visual Stories

PPF Calculator

This financial tool allows one to resolve their queries related to Public Provident Fund account.

FD Calculator

When investing in a fixed deposit, the amount you deposit earns interest as per the prevailing...

NPS Calculator

The National Pension System or NPS is a measure to introduce a degree of financial stability...

Mutual Fund Calculator

Mutual Funds are one of the most incredible investment strategies that offer better returns...

Other Times Group News Sites

Popular categories, hot on the web, trending topics, living and entertainment, latest news.

The Economic Times daily newspaper is available online now.

7 in 10 indian companies plan to cut costs to cope with market uncertainty: survey.

The most popular cost-cutting measures amongst respondent businesses include automation and using AI and consolidating the technology stack or reducing the amount of vendors within each business.

Artificial Intelligence(AI)

Java Programming with ChatGPT: Learn using Generative AI

By - Metla Sudha Sekhar, Developer and Lead Instructor

Basics of Generative AI : Unveiling Tomorrow's Innovations

Generative AI for Dynamic Java Web Applications with ChatGPT

Mastering C++ Fundamentals with Generative AI: A Hands-On

Master in Python Language Quickly Using the ChatGPT Open AI

Office Productivity

Zero to Hero in Microsoft Excel: Complete Excel guide 2024

Vastu Shastra Course

By - Sachenkumar Rai, Vastu Shashtri

Data Science

SQL for Data Science along with Data Analytics and Data Visualization

Web Development

A Comprehensive ASP.NET Core MVC 6 Project Guide for 2024

Mastering Microsoft Office: Word, Excel, PowerPoint, and 365

Digital marketing - Wordpress Website Development

By - Shraddha Somani, Digital Marketing Trainer, Consultant, Strategiest and Subject Matter expert

Mastering Full Stack Development: From Frontend to Backend Excellence

Financial Literacy i.e Lets Crack the Billionaire Code

By - CA Rahul Gupta, CA with 10+ years of domain experience, trainer

Business Storytelling Masterclass

By - Ameen Haque, Founder of Storywallahs

Future of Marketing & Branding Masterclass

By - Dr. David Aaker, Professor at Haas School of Business

Human Potential and the Future of Employment

By - Lynda Gratton, Co-chair of the World Economic Forum Council on Work, Wages and Job Creation, Professor of Management Practice

ESG and Business Sustainability Strategy

By - Vipul Arora, Partner, ESG & Climate Solutions at Sattva Consulting Author I Speaker I Thought Leader

Financial Reporting and Analytics

By - Dr. C.P. Gupta, Professor: Department of Finance and Business Economics, University of Delhi

Read More News on

India’s sedan king is losing power. Things it needs to do before it’s too late.

Taken to duck Houthi attacks, Cape of Good Hope now gives shipping firms a sinking feeling

Will investors force a government rethink on gold bonds?

Moving mountains and markets: 20 stocks that have been through peaks and troughs

5 problems SpiceJet needs to fix to be competitive again

Alcobev firms undergo a hangover in Q1 FY25 despite premium push

Find this comment offensive?

Choose your reason below and click on the Report button. This will alert our moderators to take action

Reason for reporting:

Your Reason has been Reported to the admin.

To post this comment you must

Log In/Connect with:

Fill in your details:

Will be displayed

Will not be displayed

Share this Comment:

Uh-oh this is an exclusive story available for selected readers only..

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Login using your ET Prime credentials to enjoy all member benefits

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

To read full story, subscribe to ET Prime

₹34 per week

Billed annually at ₹2499 ₹1749

Super Saver Sale - Flat 30% Off

On ET Prime Membership

Unlock this story and enjoy all members-only benefits.

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Get 1 Year Free

With 1 and 2-Year ET prime membership

Get Flat 40% Off

Then ₹ 1749 for 1 year

ET Prime at ₹ 49 for 1 month

Market Savvy Offer

Get flat 20% off on ETPrime

90 Days Prime access worth Rs999 unlocked for you

Exclusive Economic Times Stories, Editorials & Expert opinion across 20+ sectors

Stock analysis. Market Research. Industry Trends on 4000+ Stocks

​Get 1 Year Complimentary Subscription of TOI+ worth Rs.799/-​

Stories you might be interested in

• Business Today
• India Today
• India Today Gaming
• Cosmopolitan
• Harper's Bazaar
• Brides Today
• Aajtak Campus

• Budget 2024
• Magazine Cover Story Editor's Note Deep Dive Interview The Buzz
• BT TV Market Today Easynomics Drive Today BT Explainer
• Market Today Trending Stocks Indices Stocks List Stocks News Share Market News IPO Corner
• Tech Today Unbox Today Authen Tech Tech Deck Tech Shorts
• Money Today Tax Investment Insurance Tools & Calculator
• Mutual Funds
• Industry Banking IT Auto Energy Commodities Pharma Real Estate Telecom
• Visual Stories

INDICES ANALYSIS

Mutual funds.

• Cover Story
• Editor's Note
• Market Today
• Drive Today
• BT Explainer
• Trending Stocks
• Stocks List
• Stocks News
• Share Market News
• Unbox Today
• Authen Tech
• Tech Shorts
• Tools & Calculator
• Commodities
• Real Estate
• Economic Indicators

MMRDA approves Rs 58,000-cr plan to build ring roads encircling Mumbai: Report

Mumbai's rs 58,000-cr ring roads plan: the network of ring roads would help in decongesting the city, ease traffic jams and cut travel over the next five years..

• Updated Sep 23, 2024, 8:40 AM IST

The Mumbai Metropolitan Region Development Authority (MMRDA) has plans to encircle Mumbai with a network of ring roads to be constructed at an outlay of Rs 58,000 crore. According to reports the plan has been approved for the network of roads, bridges and tunnels that will cover around 90 km.

Related Articles

• 'A simple internet search...': Madhabi Buch, husband respond to claims on Mumbai apartment rental income
• Coldplay India tour 2025: Band adds 3rd Mumbai show amid ticket chaos on BookMyShow. Details here

According to a report in The Indian Express, the network of ring roads would help in decongesting the city, ease traffic jams and cut travel over the next five years. The plan includes covering the city from all sides, providing connectivity to suburban habitations, and giving easy access to the Gujarat border, Konkan Maharashtra and Western Maharashtra. 

The seven outer and inner ring roads that form the centre of the plan are currently in various stages of development and tendering, the report added. The MMRDA will be joined by various development authorities such as Brihanmumbai Municipal Corporation (BMC), Maharashtra State Road Development Corporation (MSRDC) and National Highways Authority of India (NHAI). 

Most of these new roads will be tolled, stated the report quoting MMRDA Commissioner Dr Sanjay Mukherjee. This plan is in line with the vision of ‘Mumbai in Minutes’. Mukherjee said that it should not take more than 59 minutes to travel from one end of the city to the other.

This new project is also expected to manage the increasing traffic that is expected in the coming years due to other major projects such as Navi Mumbai International Airport and Wadhwan Port. 

Mukherjee said that the comprehensive plan included several key projects such as the Versova-Bandra Sea Link, Versova-Dahisar and Mira Bhayander-Dahisar Link Road, Alibaug-Virar Multi Modal Corridor and the Vadodara-Mumbai Expressway among others, forming a ring around the city. 

The network of ring roads would traverse through “sea, creek, forests, and urban highways, using tunnels and elevated bridges”, said Mukherjee. The projects totalling Rs 3 lakh crore from MMRDA are part of the a larger infrastructure push, supported by international agencies, including from Japan. 

TOP STORIES

• Advertise with us
• Privacy Policy
• Terms and Conditions
• Press Releases

Copyright©2024 Living Media India Limited. For reprint rights: Syndications Today

Add Business Today to Home Screen