Changing Face of the MINING INDUSTRY

Going forward the Indian mines are expected to be 'digital /smart mines', meeting global standards, writes Alok Kumar Verma.

Minerals and metals have always been part of our life and we need it in every aspect of life, be it anything. History reveals that mining is one of the oldest industries  on earth. The large-scale mining and use of metal can be dated back to Mesopotamia around 3500 BCE, Egypt 300- BCE and in India during the Harappan period, as shown by evidences. In India, mining is undertaken particularly for major minerals like coal, iron, copper, zinc and gold. These major minerals have a long history in India and have been a part of our everyday life, including household pots, jewelleries, weapons, etc

In India, we saw the beginning of large and commercial scale mining before independence. Mining was started under the British Raj and majorly enhanced the commercial production of gold, copper, zinc, iron ore and coal. During the period mining was either owned by British companies or private business houses. Post-independence, mining continues in same way, however, government has started to promote mining through government and public sector companies to improve the safety of the people working in industry and to support mining industry and social welfare in the sector. Post-independence, the initial reformation happened when the government in India came-up with Metal Regulations Act 1957.

The major acquisitions by the government happened between 1971-73 when government of India decided to nationalize the coal mining and formed a public sector company, Coal India Limited. However, some of captive coal producing companies and few other government  PSUs & private company like SCCL, SAIL & Tata Steel, etc. are not part of this nationalization.

Reformations in Indian Mining Industry

A major reformation started in 1993, when government decided to allocate coal blocks to private companies for captive purpose. This was done to support industrial and infrastructural growth of the country and to meet the growing demands for coal and minerals in the country. Between 1993 and 2010 approximately 200+ new coal blocks were allocated to various companies in India for captive mining. However, very few could start production because of various reasons including high capital requirements, cumbersome mining licensing process and many other footraces. There were also a lot of storms and finally most of the coal blocks allotment was cancelled by the Honorable Supreme Court of India.

Meanwhile there have been many reforms and amendments in Mining Act, rules and regulations including MMDR Act, 2015 & Coal Mines Regulations 2017 etc. With a new strategy, Government of India decided to go ahead with the allotment of coal blocks through 'Open Auctions', which started few years back. Government has also formulated National Mineral Policy, 2019 for a vibrant and forward-looking mineral sector. India will further open for commercial coal mining, with revenue share arrangement, to boost the coal production in the country. Subsequently, to attract investments in coal mining, the government has also approved the announcement of Mineral Laws (Amendment) Ordinance, 2020. This allows coal mining by any company present in sectors other than steel and power and scrapped the captive end-use criteria.

Current Scenario

India has expanded in mining and currently it is one of the major mining countries having significant presence on global mining map. It is listed in the top 10 countries in production of many minerals including mica blocks, coal, iron ore, bauxite etc. India is one of the rich countries when it comes to mineral reserves and we product 80+ different types of fuel, metal and non-metal minerals.

In current scenario mining and quarrying industry sector contributes to around 2.4% of gross domestic product of the country and index of industrial production indicates approximately 2.9% growth in mining Sector. The recent economic reforms and changes have propelled the Indian mining industry in to a new and competitive environment. India, being growing economy and in order to achieve the desired economic growth, these economic reforms and sector growth, legislative changes are to facilitate the mineral sector in the country.

India has the world's fourth-largest coal reserves but still imports about 200+ million tones of coal worth $24-25 billion every year. This is really a tough scenario and Indian government is serious about this and taking all steps to ensure that we should become self-sufficient in this aspect.

Future of Mining in India

The central government has taken various steps for development of mining sector in the country. Further reforms in the mineral sector will not have distinction between the captive and non-captive mines. The other proposed measures include promoting coal gas gasification through rebate in revenue share, auctioning 50 new coal and 500 mineral blocks, and an investment of Rupees 50,000 crore to create transportation infrastructure. The revenue share mechanism is being also allowed instead of fixed payment per ton to promote coal mining.

The government has also proposed to bring in policy reforms to fast-track investment in mining. With recent reforms and government's attention, the future of Indian mining sector looks bright. This would attract Foreign Investments, global attention and leading mining companies like BHP, Rio Tinto to India. They would look forward to joint ventures with Indian mining companies. These are expected to change the face of India mining industry as the market will become more competitive and in order to be competitive in the market, companies will bring in new  and cost efficient mining technologies, focus will increase on safety, efficiency and productivity, which would further bring in new mining equipment,  Machinery and process technology, promote use of digital technology and going forward the Indian mines are expected to be 'digital /smart mines', meeting global standards.

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