Indian Mining Industry overview India is a mineral rich country and produces
about 89 minerals. However, around 80 percent of the mining activity is confined
to coal. The other minerals and metals mined include zinc, gold, lead, copper,
iron, bauxite and uranium. The majority of the country’s mines (292 in public
sector and 2,326 in private sector) are located in the states of Karnataka,
Andhra Pradesh, Orissa, Bihar, Gujarat, Madhya Pradesh and Rajasthan. Since
2001, the Indian mining sector has been growing between three and four percent
annually. Moreover, the introduction of new mining policies of the government
such as competitive bidding for all natural resources, specifically coal blocks,
profit sharing with project affected people (PAF) sends out mixed signals to the
market. While the first come first serve policy was discarded by the supreme
court, there is intense pressure on the Government to look into this matter.
Investors are closely looking at policy directives from the Government side.
Competitive bidding for captive coal block allocation, new MMDR bill and several
others policy interventions are expected to give a further boost to the mining
sector. On the other hand, as mining becomes intensive, the demand for
mechanisation and highly productive, safe, efficient and cost effective
machinery will increase.