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OVERVIEW | OPPORTUNITIES
Metal
Ores
OVERVIEW
SIZE
- India is rich in mineral resources with large reserves of several primary metal ores like iron ore, bauxite, chromium, manganese and titanium
- India has
- 24 billion tonnes of iron ore reserves - the fifth largest reserve base in
the world
- 2.4 billion tonnes of bauxite reserves - the fourth largest reserve base in
the world
- 240 million tonnes of manganese reserves - the second largest reserve base in the world
- 57 million tonnes of chromium reserves - the third largest reserve base in
the world
- Indian deposits of bauxite and iron ore are among the best in the world in terms of quality and mineability
STRUCTURE
- Mining has a large presence of public sector companies which account for over 80% of the total value of minerals produced
- Large integrated players with interests from mining to metallurgy and processing like SAIL and Tata Steel in steel and Hindalco and Nalco in aluminium, dominate the metal and mining industry
- Sesa Goa (a subsidiary of Vedanta Resources) is one of the largest companies in mining and export of iron ore
- Orissa, Jharkhand and Chhattisgarh are the key mineral-rich states of India
- Orissa has over 50% of India’s bauxite reserves and over 20% of India’s reserves of iron ore
POLICY
- 100% FDI is allowed under the automatic route for mining of metal ores
- Government keen to encourage investments for value added metal manufacturing
- 100% FDI is allowed in Titanium bearing minerals and ores and its value addition
- The 2008 National Mining Policy has made it attractive for prospectors and mining companies to invest in mineral exploration and development in India
Mineral production in India
| Mineral |
Production
2005-06 (MMTPA) |
World Rank |
| Bauxite |
12.3 |
5 |
| Chromite |
3.4 |
3 |
| Iron ore |
154 |
3 |
| Manganese ore |
2.0 |
6 |
Source: Indian Bureau of Mines, EIU
OPPORTUNITY
 |
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India is rich in mineral
resources with large reserves
of several primary metals
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India is an attractive
destination for metal-making |
OUTLOOK
- Indian mineral production is expected to grow rapidly in the coming years – driven by growth in metal manufacturing
- Iron ore production is expected to grow at a CAGR of 10-12% over the next 5 years, in step with rapid growth in the steel industry
- Bauxite production is expected to double to over 23 million tonnes by 2010
- High growth expected in the consumption of manganese and chromium
POTENTIAL
- India has several advantages, making it an attractive destination for mining and value addition
- India is relatively under-explored in terms of mineral prospecting
- Large quantity of high-quality reserves
- Low labour and conversion costs
- India is among the lowest cost producers of steel and alumina
- Large and growing domestic demand
- Strategic location: proximity to the developed European market and the fast-developing Asian markets for export of steel, aluminium
- India presents substantial mining opportunities across all metal ores
- Estimated 82 billion tonnes of reserves of various metals yet to
be tapped
- Large scope for investments in mining of iron ore and bauxite
- While India has 7.5% of the world’s total bauxite deposits, aluminium production capacity is only 3% of world capacity, indicating the scope and need for new capacities
- Recent acquisitions by Indian companies (Tata Steel and Hindalco) in the metals space auger well for increased mining activity in India
- National Mineral Policy will encourage mineral prospecting and mining investments in India
For additional information:
Ministry of Mines (http://mines.nic.in), Planning Commission, Government of India (planningcommission.nic.in)
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