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Research and Markets: As Reported In the Economic Times in September 2009, the Indian Government May Be Increasing the Maximum Area Permissible For Iron-Ore Mining



Buzz up! 0 Print..Press Release Source: Research and Markets On Friday January 22, 2010, 11:54 am
DUBLIN--(BUSINESS WIRE)--Research and Markets(http://www.researchandmarkets.com/research/0139cd/india_mining_repor) has announced the addition of the "India Mining Report Q1 2010" report to their offering.

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As India's economy continues to grow, its electricity demands are expanding and consequently the country continues to look for ways to satisfy its energy requirements. State-owned companies such as Steel Authority of India (SAIL) and Coal India (CIL) are being put forward for disinvestment as both require capital injections to fund expansion plans, and with India's current budget deficit, this cannot come from the government. CIL is actively seeking overseas mine acquisitions as well as joint ventures and equity partnerships to secure stable long-term coal supplies. The country is also eager to grow its uranium market as an answer to energy demands; India is looking to build significant partnerships with countries such as Canada and Australia to help them develop their uranium industries. In August 2009 the Australian government said it would consider supplying uranium to India for joint venture purposes - the country currently has a no-supply policy for any country that has not signed the Nuclear Non-proliferation Treaty.

As reported in the Economic Times in September 2009, the Indian government may be increasing the maximum area permissible for iron-ore mining as a means to enable a better supply of raw materials for domestic steel companies. Currently, the maximum area permitted is 25km2 and it is proposed that this be increased to 100km2. Many mining companies find the current area limit restrictive, acting as a hindrance to production and investment opportunities. Should the legislation pass, it would be included in the current Mines and Minerals (Scientific Development and Regulation) or MMDR bill. The decision to increase the maximum area comes as many governmental and non-governmental organisations suggest that the current surplus of iron ore production could become a deficit unless reserves are identified and preserved for future exploitation.

Meanwhile, the Indian government is keen to reform the coal mining sector and open it up to private firms to boost domestic production and attract investment into the industry. In August 2009 Coal Minister Sriprakash Jaiswal said that India would begin auctioning off coal blocks for exploitation in 2010. Despite having 10% of the world's coal reserves, economic growth is accelerating power demand, with imports of coal forecast to reach 211mn tonnes by 2011/12. Currently, 201 blocks with reserves of 45bn tonnes have been set aside for mining, with 97 blocks with an estimated 27mn tonnes of reserves being allocated to government firms, and the rest allocated to private companies. Out of the 201 blocks allocated, only 25 have begun production, and the government is hoping that the auctioning of the blocks will spur more production.

In October 2009, UK-based mining firm Vedanta faced public condemnation from the British government for its treatment of the Dongria Kondh tribe residing in the Orissa area where the company intends to begin production of a bauxite and alumina mine. In addition to concerns about devastation to the eco-system in the area, the company has been accused of disregarding the needs and wishes of the indigenous tribe. The proposed mining area provides the people with food as well as their religion - the Dongria Kondh tribe view the hills as being sacred. After a nine-month investigation, the British government ruled that the company had not 'put in place an adequate and timely consultation mechanism' and concluded that 'A change in the company's behaviour' is 'essential'. The case against Vedanta seems to be growing and attracting more high-profile figures such as Bianca Jagger and Booker Prize winner Arundhati Roy, who are lending their names to the cause.

In 2009, the Indian mining industry is expected to contract by 2.0% as the global economic crisis impacts on exports in key sectors such as iron ore, bauxite and copper. The market should return to strength in 2010, and by 2014 the author forecasts that the mining industry will reach a total value of US$60.27, approximately 2.22% of GDP, after growing at an average rate of 8% per year in real terms.

Key Topics Covered:


•Executive Summary
•SWOT Analysis
•Special Focus: Outlook For Global Mining
•Table: Biggest Chinese Acquisitions In Australia Since 2005
•Industry Trends And Developments
•Market Overview
•Regulatory Structure
•Key Projects
•Mining Business Environment
•Regional Overview - Asia Pacific
•Political Environment
•Industry Forecast Scenario
•Metal Prices Outlook
•Aluminium To Average US$1,700/Tonne In 2009
•Table: BMI Aluminium Forecast
•Table: Aluminium
•Copper To Average US$4,800/Tonne In 2009
•Table: BMI Copper Forecast
•Table: Copper
•Commodities Forecast - Gold To Average US$920.00/oz In 2009
•Table: BMI Gold Forecast
•Global Industry Overview
•Regional Analysis
•India - Mining Industry Forecast
•Table: Mining Industry Indicators 2004-2014
•Competitive Landscape
•Table: India Mining - Key Players
•Company Monitor
•Appendices

Companies Mentioned:


•Coal India (CIL)
•Hindustan Copper (HCL)
•National Mineral Development Corp (NMDC)
•Vedanta Resources

For more information visit http://www.researchandmarkets.com/research/0139cd/india_mining_repor