DUBLIN--(BUSINESS WIRE)--Dublin - Research and Markets (http://www.researchandmarkets.com/research/0cd52fc7/india_mining_repor) has announced the addition of the "India Mining Report Q2 2012" report to their offering.
India hosts a wide range of globally significant mineral resources, including: four fuel minerals (such as coal and uranium); 11 metallic minerals (such as iron); 22 minor minerals; and 52 non-metallic minerals (such as clay). The country ranks among the world's top five nations for its core competency commodity reserves of coal and iron ore. Iron ore reserves are estimated in the region of 23bnt (bn tonnes) and account for 6% of global reserves, while coal reserves are reported to be around 255bnt.
India is the world's third-largest producer of coal, fourth-largest producer of iron ore and the fifth-largest producer of bauxite. However, only 10% of the country's landmass has been explored due primarily to significant regulation and bureaucratic obstacles.
India's mining industry is set to reach US$36.2bn by 2016, as output growth of key minerals remain strong. However, growth in 2012 and beyond will continue to be curtailed by India's poor operating environment. A bright spot, however, is the increasing number of Indian companies venturing overseas to secure stable, long-term supplies of minerals such as coal and iron ore in a bid to meet fast-rising domestic demand.
India's regulatory environment is prohibitive for investors although recently proposed legislation is a step in the right direction. In the past, mining permits/licences are issued contingent on success in the reconnaissance phase. This practice exposes firms to high levels of risk. However, the proposed 2011 mines and minerals development and regulation (MMDR) bill allows for the granting of non-exclusive reconnaissance licences and high-tech reconnaissance/exploration licences based on ability and intention to develop an area.
The new bill also calls for a system for bidding licences, which can create a market for these licences, increasing transparency. A negative for the proposed MMDR bill will be the additional taxes to be levied for community development.
Companies Mentioned:
- Hindustan Copper
- Coal India Limited (CIL)
- NMDC
- Vedanta Resources
For more information visit http://www.researchandmarkets.com/research/0cd52fc7/india_mining_repor