A Guide to Investment in India’s Mineral Sector
A BRIGHT FUTURE India’s mining industry certainly has a bright future. The government’s new economic policies have stimulated both foreign investment and the expansion of the country’s private sector. There are numerous plans under way to modernize and expand existing facilities, many of which will require overseas investment. The government is very keen to encourage initiative in the private-sector, both from domestic and foreign companies. Modern, environmentally-friendly technology is required, along with foreign expertise in exploration, mining and processing. India is an emerging market with an enormous mineralogical potential. The lack of detailed exploration programmes in the past, coupled with the abundance of recent discoveries using modern techniques, demonstrates the high possibility of discovering new deposits, as well as expanding the reserves of existing mines.
India - Mineral Potential Vs Achieved Potential Commodity
India – 1980
India – 2008
Australia – 1980
Australia 2008
Iron Ore Reserve (Hematite)
11 billion tonnes
14 billion tons
15 billion tons
50 billion tons
Diamond Reserve
Majhgawan
2.6 million carats (Majhgawan)
0
230 million carats
Gold Reserve
55 metric tons
325 metric tons
400 metric tons
6000 metric tons
Coal Reserve
111 billion tons
240 billion tons
29 billion tons
42 billion tons
(Measured + Indicated)
(Measured + Indicated)
(Measured)
(Measured)
Bauxite Reserve
2.5 billion ton
2.6 billion ton
3 billion dry tons
9 billion dry tons 18
Source: Paper presented by Nik Senapati, Managing Director, Rio Tinto India Pvt. Ltd. In FIMI Seminar at Bangalore on 16 September, 2009
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