Mining & Minerals

Due to shortage of availability of high grade iron ore, producers should concentrate on beneficiation and pelletization of iron ore fines.
Challenges of the Indian mining industry are manifold. There are increasing raw material cost, complex land acquisition process, delays in forest and environmental clearance, and hiked community demand of social responsibility. The cost of doing business rises due to changes in fiscal, regulatory, and judicial policies. Secondly, with 100% royalty to be paid the mining companies are under profit sharing scanner from the
government. Thirdly, there is shortage of skills in mining sector for upcoming underground mining blocks. Finally, rising project cost, limited access to financing, and lack of proper infrastructure in green field project areas are the major hindrance to growth for this sector.

The trends in this sector are increasing production capacity to meet growing demand, and
adoption of various modes of PPP for accelerating development. The government has permitted 100% FDI with opportunities for competitive auction. There are opportunities for exploration at proposed zones, value added projects in agglomeration plants for utilization of fines, and scope for PPP.