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INDIA 2018

Best of Germany 2014 - Mining Equipment and Mining Technology

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)INDIA 2018 "Time is short. If you have to achieve much, you've got to run," said Peter Munk, founder and former chairman, Barrick Gold. The Indian mining industry promised to achieve much. But it is definitely not running and time is running out too. Gaps between enunciation of lofty potential and policy procrastinations, delays and actual performance of the sec- tor, including investments on the ground have become glaring. The adage sometime attributed to Thomas Edison, "Vision without implementation is just hallucination," could well describe the Indian mining sector in recent times. A grandiosely titled report, "Unlocking potential of Indian Mineral Sector," of the federal Ministry of Mines laid out a vision of adding investments of $250 billion and 6%-7% of GDP with collateral benefit of creating 15 million additional direct and indirect employment by 2025. The vision statement was in 2011. Seven years down the line, the mining industry has not exactly inched towards such a goal. In fact contribution of the Indian mining sector to Gross Domestic Product (GDP) has been on a downward trend from 3.2% in 2012 to 2.2% in 2018, according to data sourced from the government's Ministry of Statistics and Program Implementation. Data on Index of Industrial Production (IIP) released by the government in October 2018, showed that industrial production growth in August 2018 was at a three- month low at 4.3% with the mining sector proving to be the primary drag, recording a negative growth of 0.4% in August com- pared to 9.3% same month a year ago. The mining industry has the second highest weightage in IIP at 14.6%. The Exploration Logjam The vision: the government outlining it, stated its intention of publishing a new national mineral policy which inter alia laid down the road map of doubling min- eral exploration every year with participa- tion of private investment — domestic and foreign direct investment (FDI). It was reckoned private investments would plug the huge gap as exploration projects solely through government public expenditure had been sorely inadequate and a new policy would woo global resource majors to invest in such projects in the country. A reality check: The policy framework for years allowed 100% foreign direct investments in mining and mineral projects in the country barring atomic minerals. Optimism over a new policy attracting fresh foreign investments into exploration is tempered by recent data. In 2017-2018 FDI in the Indian mining industry fell to lowest level in recent years at a mere $36 million down from a peak of $659 million touched in 2014-2015. The previous low of FDI in mining industry was in 2013-2014 when it hit a low of $13 million. As a share of total FDI inflow into the country, the mining sector accounted for just 0.8% of the total FDI during 2017- 2018 against a share of 2.06% in 2014- 2015, and an indication of unattractive- ness of the domestic mining industry to overseas investors. Underlining 'under exploration' the government policy think-tank reports that Indian exploration expenditure averaged around $17/km 2 against $5,850/km 2 in Australia and $5,310/km 2 in Canada. In terms of global share of exploration expenditure, Canada was ranked in first in the pecking order with 14%, Australia at 13%, China 6% and Europe 5% and India lagging at 0.2%. Information from the Indian Bureau of Mines (IBM), the government regula- tory body, of India's entire Obvious Geological Potential (OGP), area of 570,000 km 2 , identified by state-run, Geological Survey of India (GSI), only 10% has been explored and mining oper- ational in 1.5% to 2% of this area. Years of under-exploration was begin- ning to tell on mineral industries with imports rising despite abundant mineral reserves. The compounded annual aver- India Mining Report An Overview of Mining in India One step forward, two steps back By Ajoy K Das Indian Production and Imports in Value Value of Value of Year major minerals minerals produced imported 2013-2014 499.06 3,364.51 2014-2015 444.05 3,364.51 2015-2016 411.93 3,668.38 2016-2017 474.31 3,458.11 2017-2018 607.30 3,500.00 • All figures in billion Rupees • Source; Ministry of Mines The Indian Government has set a ambitious goal of 300 million mt/y of iron ore.

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