Strategy of Mineral Development

As per the National Mineral Policy, the strategy for development of any mineral should keep in view its ultimate end uses. The guiding principle in the strategy of development of any mineral or mineral deposit at any location shall ordinarily be the economic cost. The State may, however, undertake the development of any mineral or mineral deposit in public interest to ensure unhindered availability of mineral raw material for the realisation of national goals.

As minerals are exhaustible and non-renewable resources, their exploitation has to be done keeping in view not only the present but the long term needs. The strategy for exploitation and development of each mineral shall be formulated and reviewed periodically on the basis of available resources. A thrust is to be given to exploitation of mineral resources in which India is well endowed so that industries based on these resources can come up to meet the needs of industrial materials for which we have now to depend on external sources. An optimal depletion rate shall be worked out in respect of each mineral, keeping in view the domestic and global resource position, the international market situation and the needs for stable and sustained economic development.

The best use of available mineral resources shall be ensured by adopting, during mining operation, effective measures for conservation and beneficiation, recovery of associated minerals and later by efficient processing of minerals. There shall be adequate and effective legal and institutional framework and commitment to prevent sub-optimal and unscientific mining.

Conservation of minerals shall be construed not in the restrictive sense of abstinence from consumption or preservation for future use, but as a positive concept leading to augmentation of resource base through improvement in mining methods, beneficiation and utilisation of low grade ore and rejects, recovery of associated minerals, reduction in the requirements of minerals per unit of material output, etc.

Foreign Trade

Minerals continue to be an important source of foreign exchange earnings. The policy of export keeps in view the mineral inventory position and the long term needs of India. Efforts are made to export minerals in value added form as far as possible. Whenever it becomes necessary to export minerals and ores the strategy is to make such exports competitive.

The provisional value of export of ores and minerals during 2004-05 was Rs.69342 crores. Diamond (mostly cut) was the principal item of export during 2004-05, which accounted for 67.1 percent of the total exports, followed by iron ore with a contribution of 20.1 percent, granite with a contribution of 3.7 percent, alumina with a contribution of 1.8 percent, chromites contributed for 1.2 percent and precious & semi-precious stones with a contribution of 1.1 percent. Building and monumental stones, emerald, coal (including lignite), marble and bauxite were the other important minerals exported during the year 2004-05.

The imports of mineral based material is co-ordinated as far as possible with the indigenous development of mineral based industries. Areas of co-operation with countries with complementary resource base are developed for mutual advantage. The basic approach is to make available the mineral based materials to the domestic users at reasonable prices.

The provisional value of import of ores and minerals during 2004-05 was Rs.182710 crores. Petroleum (crude) was the main constituent of mineral import during 2004-05, which accounted for 65.1 percent of the total value of imports, followed by diamond (uncut) with 22.9 percent. Coal, coke, copper ores and concentrate, rock phosphate, sulphur and iron ore were the other important minerals imported during 2004-05. Key

Challenges facing the Sector

The critical issues facing the sector are:

Lack of Investments in Mining

In spite of the economic liberalization of 1991 the mining sector has not seen major investments. This is possibly due to the problems such as government policy, land acquisition, development of infrastructure, transportation system, social engineering and community development involved in major green field site projects. There is a need to re-look at the total management solution for attracting investment in new mines. The solution has to lead to the creation of joint venture institutions with central government, state government and private sector as partners.

The facilitation for the project through provision of land, infrastructural development, community development etc, can be done by the government agencies whereas the investment in the mine and the associated technological inputs can come from the private sector. In addition, the private sector must have the freedom to run the mine in a cost effective manner. This may be a long term solution for future mines in India and it will have unique opportunities for both the government and private sector to work together for India's development.

Scientific Methods of Exploitation

Historically, opencast mining has been favored over underground mining. This has led to land degradation, environmental pollution and reduced quality of mineral as it tends to get mixed with other matter. In addition, current economic mining practices are generally limited to depths of 300 meters and 25 percent of the reserves of the country are beyond this depth.

Mine development and mineral conservation as governed by the rules and regulations should be on sound scientific basis, with the regulatory agencies closely interacting with R&D organisation, scientific and professional bodies. Conditions of mining leases regarding tenure, size, shape, disposition with reference to geological boundaries and other mining conditions should be such as to favourably predispose the leased areas to systematic and complete extraction of minerals.

Productivity Norms

Mining in India is associated with poor employee productivity. The output per miner per annum in India varies from 150 to 2,650 tonnes compared to an average of around 12,000 tonnes in the USA and Australia.

Studies for fixation of productivity norms and goals should be taken up to promote productivity of men, machines and to improve the consumption norms of fuel and materials. Regular maintenance, replacement and upgradation of mining machinery and equipment should be undertaken.

Mineral Processing and Beneficiation

Research organisations, including the National Mineral Processing Laboratories of the Indian Bureau of Mines should be strengthened for development of processes for beneficiation and mineral & elemental analysis of ores & ore dressing products. There should be co-operation between and co-ordination among all organisations in public and private sector engaged in this task.

Recycling of Metallic Scrap and Mineral Wastes

As an important conservation measure, recycling of metallic scrap like steel, copper, aluminium, zinc, lead etc. should be encouraged and facilitated by fixation of appropriate standards for classification and grading of scrap and adoption of fiscal measures. Similarly, utilisation of low grade minerals, mineral wastes and rejects should also be encouraged through appropriate incentives.

Mining Equipment and Machinery

Indigenous industry for manufacture of mining equipment and machinery should be strengthened. Wherever necessary, imports of machinery and equipment may be permitted to improve the efficiency, productivity and economics of mining operations and safety and health of persons in the mines and the surrounding areas.

Manpower Development

Existing facilities for basic and specialised training should be constantly reviewed and upgraded from time to time to ensure that adequately trained manpower at all levels is available for the development of mines and minerals industries. In order to improve the competitive edge of the national mining industry, emphasis should be laid on mechanisation, computerisation and automation of the existing and new mining units. The manpower development programme should be suitably reoriented for the purpose.

Linkages

Development of mineral resources and their utilisation in the end products have distinct stages which are closely interlinked. Failure in the performance at any one stage eventually affects both the mining and the mineral industry and the units dependent on it. The mineral processing unit should not only get an assured supply of the mineral raw material but should also have close links with the production and marketing agencies of the mineral based end products.

Dissemination of Information on Technological Changes

Information about technological changes leading to substitution of the mineral or the products made out of such a mineral should be compiled and disseminated from time to time to enable the mineral industry to adapt itself. A close linkage should be established between the changes taking place in material science, product character and the availability of mineral resources.