INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

1 Indian Mineral Industry & National Economy

NATIONAL ECONOMY “technology” of cooperative federalism to apply to
Minerals and Mining Industry are significant to many other policy reforms. Over the medium term,
the National Economy and have their distinct effects three areas of policy focus stand out —Employment:
on other Sectors/Industries that influence the finding good jobs for the young and burgeoning
econony. workforce, especially for women; Education: creat-
ing an educated and healthy labour force; Agricul-
India, looking well into the future, has embarked ture: raising farm productivity while strengthening
upon a slew of reformation initiatives that are aimed agricultural resilience; and above all, India must con-
at rationalising and transforming the Mineral Sector tinue improving the climate for rapid economic growth
in a manner such that all area of development, in on the strength of the only two truly sustainable
terms of contribution to GDP, employment in the Sec- engines, i.e., private investment and exports.
tor, technological upgradation, R & D initiatives,
meeting demands of Infrastructure/Manufacturing The outlook for 2017-18: A final, important factor
sectors, local area development ,etc. get bouyed up explaining the growth recovery is fiscal, which is
for sustainable growth prospects. providing a boost to aggregate demand. For reasons
related to smoothening the transition, GST revenues
The past year has been marked by some major will only be collected for 11 months, which is akin to a
reforms. The transformational Goods and Services tax cut for consumers. Meanwhile, overall revenue
Tax (GST) was launched in July 2017. expenditure growth by the central and state govern-
With a policy change of such scale, scope, and ments remains strong at 11.7% (April-2017 to Novem-
complexity, the transition unsurprisingly encoun- ber-2017). Cyclical conditions may also lead to lower tax
tered challenges of policy, law and information and non-tax revenues, which act as an automatic
technology systems, which especially affected the stabiliser.
informal sector. Expeditious responses followed to The CSO forecast of real GDP growth for 2017-18 is
rationalise and reduce rates, and simplify compliance estimated at 6.5 percent. However, this estimate has not
burdens and the long-festering Twin Balance Sheet fully factored in the latest developments in the third
(TBS) problem were decisively addressed by quarter, especially the greater-than-CSO-forecast ex-
sending the major stressed companies for resolution ports and government contributions to demand. Ac-
under the new Indian Bankruptcy Code (IBC) and cordingly, real GDP growth for 2017-18 as a whole is
implementing a major recapitalisation package to expected to be close to 6.75%. Given real GDP growth
strengthen the Public Sector banks. As a result of of 6% in the first half, this implies that growth in the
these measures, the dissipating effects of earlier second half would rebound to 7.50%, aided by
policy actions and the export uplift from the global favourable base effects, especially in the fourth quarter.
recovery, the economy began to show signs of pick-
Consider the components of demand that will
ing up in the second half of the year. This should
influence the growth outlook. The acceleration of glo-
allow real GDP growth to reach 6.75% for the year as
bal growth should in principle provide a solid boost to
a whole and it is further expected to rise to 7-7.50%
export demand.
in 2018-19. Continuity of this trend will enable India
reclaim its position as world’s fastest growing major Private investment seems poised for rebound, as
economy. Against emerging macroeconomic con- many of the factors that were a drag on growth over the
cerns, policy vigilance will be necessary in the com- past year finally are showing signs of easing off. Trans-
ing year, especially if high international oil prices lating this potential into an actual investment rebound
persist or elevated stock prices correct sharply, pro- will depend on the resolution and recapitalisation pro-
voking a “sudden stall” in capital flows. The agenda cess.
for the next year consequently is critical— stablising Consumption demand, meanwhile, will encounter
the GST, completing the TBS actions, privatising Air different tugs. On the positive side, it will be helped by
India, and staving off threats to macro-economic the likely reduction in real interest rates in 2018-19
stability. The TBS actions, noteworthy for cracking the compared to the 2017-18 average. At the same time,
long-standing “exit” problem, need complementary reforms average oil prices forecast by the IMF are expected to
to shrink unviable banks and allow greater Private Sector be about 12% higher in 2018-19, which will crimp real
participation. The GST Council offers a model incomes and spending—assuming the increase is
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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY
passed on into higher prices, rather than absorbed by ber) export growth picked up further to 12.1 per cent.
the budget through excise tax reductions or by the oil India’s export growth (non-fuel) which has generally
marketing companies. And if higher oil prices require been higher than world export growth (non-fuel) moved
tighter monetary policy to meet the inflation target, real to negative territory in 2014 and was lower or in tandem
interest rates could exert a drag on consumption. with world export growth (non-fuel) since then. Other
Putting all these factors together, a pick-up in BRICS countries also showed similar trends.
growth to about 7-7.50% in 2018-19 can be forecasted India’s positive export growth in 2016-17 was on
and if realised this would re-instate India as the world’s account of positive growth of both POL and non-POL
fastest growing major economy. This forecast is sub- exports at 3.2% and 5.4% , respectively. In 2017-18
ject to upside potential and downside risks. (April-December) export growth was 12.1%, with POL
The biggest source of upside potential will be ex- and non- POL growth at 18.5% and 11.2%, respectively.
ports. If the relationship between India’s exports and India’s export volume growth (3MMA), which moved
world growth returns to that in the boom phase, and if to positive territory since March 2016, showed an up-
world growth in 2018 is as projected by the IMF, then ward trend till April 2017, but started decelerating though
that could add another 0.5 percentage point to growth. it was still broadly in positive territory. Since August
2017, it has again picked up and increased sharply in
Another key determinant of growth will be the
November 2017 in tandem with the sharp increase in
implementation of the IBC process. Here timeliness in
export value growth. However, in December the growth
resolution and acceptance of the IBC solutions must
rate of export volume and value index decelerated. Non-
be a priority to kick-start private investment.
oil export volume index followed a similar trend.
Persistently high oil prices (at current levels) re-
main a key risk. They would affect inflation, the current Imports
account, the fiscal position & growth and force macro- Merchandise imports also fell from a high of
economic policies to be tighter than otherwise. US$ 490.7 billion in 2012-13 to US$ 381 billion in
A key policy question will be the fiscal path for the 2015-16 and registered a mild increase of 0.9% to
coming year. Given the imperative of establishing cred- US$ 384.4 billion in 2016-17. The increase in the value
ibility after this year, given the improved outlook for of imports in 2016-17, despite the decline in gold and
growth (and hence narrowing of the output gap), and silver imports by 17.3%, was due to rise in POL imports
given the resurgence of price pressures, fiscal policy and a small increase in non-POL and non-gold and sil-
should ideally have targeted a reasonable fiscal con- ver imports which had fallen in 2015-16. In
solidation. However, setting overly ambitious targets 2017-18 (April-December), imports grew by 21.8%.
for consolidation especially in a pre-election year based Growth of POL import was 24.2 percent mainly due to
on optimistic forecasts that carry a high risk of not the rise in crude oil prices. Non-POL imports registered
being realized will not garner credibility either. Prag- a growth of 21.1% due to the growth of 52% in gold &
matically steering between these extremes would sug- silver imports, while non-POL and non-gold & silver
gest the following: a modest consolidation that cred- imports grew by 18.1%. Growth in value of gold im-
ibly signals a return to the path of gradual but steady ports has fallen since September 2017 due to decline in
fiscal deficit reductions. the growth of volume of gold imports. Gold import value
Against this overall economic and political back- index has been moving in tandem with gold volume
ground, economic management will be challenging in index.
the coming year. If the obvious pitfalls (such as fiscal Growth of both total import volume index and non-
expansion) are avoided, then the looming risks also oil non-gold import volume index 3 months moving
could be averted which itself would be no mean average (3MMA) which had picked up since January/
achievement. February 2017 started to decelerate from May 2017
though it continued to be in positive territory till De-
India's Merchandise Trade cember 2017.
Exports
Trade deficit
India’s merchandise exports (on customs basis) India’s trade deficit (on custom basis) which had
had reached the level of US$ 314.4 billion in 2013-14. registered continuous decline since 2014-15, widened
Following the global trend of decline in export growth, to US$ 74.5 billion in H1(first half year) of 2017-18 from
India’s exports also declined during 2014-15 and US$ 43.4 billion in H1 of 2016-17. India’s trade deficit
2015-16, by 1.3% and 15.5% , respectively. was US$ 108.5 billion in 2016-17, with the reduction in
India’s export growth continued to be negative in both POL deficit and non-POL deficit. In 2017-18 (April-
the first half of 2016-17 at (-)1.3%. However, in the December) trade deficit (on customs basis) shot up by
second half of 2016-17, it started recovering, resulting 46.4% to US$ 114.9 billion with POL deficit growing by
in exports reaching US$ 275.9 billion with growth of 27.4% and non-POL deficit by 65 percent.
5.2% for the year 2016-17. In 2017-18 (April – Decem-

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Among India’s trading partners, the top five coun- MINING INDUSTRY
tries with which India has negative bilateral trade bal- The index of mineral production (base year 2004-
ance are China, Switzerland, Saudi Arabia, Iraq and 2005=100) for all minerals (excluding atomic minerals)
South Korea while the top five countries with which it stood at 132.2 points in 2016-17 registering an increase
has surplus trade balance are USA, UAE, Bangladesh, of 2.2% over that of the previous year.
Nepal and UK. India has the highest trade deficit with The total value of mineral production (excluding
China. Its share in India’s total trade deficit increased atomic minerals and fuel minerals) was at ` 1,01,426
from 20.3% in 2012-13 to 47.1% in 2016-17 and 43.2% in crore during 2016-17.
2017-18 (April-September). India’s major items of im- The value of metallic minerals in 2016-17 at
ports from China are telephone sets including mobiles, ` 40,017 crore increased by about 19% over that of the
automatic data processing machines, diodes & other previous year. Among the principal metallic minerals,
semi-conductor devices, electronic devices, chemical iron ore contributed ` 25,138 crore or 63%, lead
fertilizers, etc. India’s major items of exports to China (concentrate) & zinc (concentrate) together ` 5,305
crore or 13%, chromite ` 3,643 crore or about 9%,
are cotton yarn, copper refined and copper alloys
manganese ore ` 1,602 crore or about 4%, silver ` 1,832
unwrought, POL items, granite, aluminium ores, other crore or 5%, bauxite ` 1,417 crore or 4% and the
fixed vegetable fats & oils, cyclic hydrocarbons, cot- remaining value was from copper (concentrate), gold
ton, polymers and iron ore. In the case of Switzerland, and tin concentrates (Table-1).
the trade deficit is mainly due to import of gold. This
In metallic ores, production increased in respect of
deficit has fallen in the last two years. Moreover, a part
chromite (28%), manganese ore (10%) and iron ore
of it is used in exports. In the case of Saudi Arabia and (21%). The production of zinc concentrates increased
Iraq, the deficit is due to crude oil imports, while for marginally by one percent. The production of copper
South Korea it is due to import of electrical concentrates decreased by about 11% and bauxite by
machinery equipment and iron & steel. 12% during 2016-17.

Table – 1 : Indian Mineral Industry : Value of Production*

2014-15 to 2016-17
(In ` crore)

Sector 2014-15 2015-16 2016-17

(R) (R) (P)

Total : All Minerals 290587 284899 101426

Fuels 193372 189711 NA
(a) Solid fuel 97450 95881 NA
(b) Liquid &
gaseous fuels(ev) 95922 93830 NA
Metallic minerals 37909 33622 40017
Non-metallic
minerals 7914 7572 7415

Minor Minerals 51390 53994 53994

* Excluding the minerals declared as prescribed substances under the Atomic Energy Act,1962 and minor minerals.
(ev) : Value estimated.
NA: Not available.
Note:- The value of fuel minerals production is not reflected from source agency hence not reflected for the year, 2016-17.

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The value of production of non-metallic minerals at reported from the Public Sector. Public Sector also had
` 7,414 crore during 2016-17 decreased by 2% from that a sizeable contribution in production of phosphorite/
of the previous year. Limestone with a contribution of rock phosphate (99%), gold (primary) (99%), natural
90% of the total value of non-metallic minerals, retained gas (ut.) (78%), petroleum (crude) (76%), tin conc. (83%),
its leading position in 2016-17 in the group. The other graphite (76%), magnesite (54%) and manganese ore
important non-metallic minerals in value terms, were
(44%).
phosphorite/rock phosphate (5%) and diamond (1%).
Indian Mining Industry is characterised by a large Gross Value Added from
number of small operational mines. The total number of Mining & Quarrying Sector
reporting mines [excluding atomic minerals, minor
minerals, petroleum (crude) and natural gas (utilised) ] The Ministry of Statistics & Programme
in the country was 2,020 in 2016-17 as against 2,131 in Implementation has released the new series of national
2015-16. Among them, 512 mines were of fuel minerals, accounts, revising the base year from 2004-05 to
644 mines were of metallic minerals and 864 mines were 2011-12 in the year 2015. The Industry-wise estimates
of non-metallic minerals (Table-2). There were 637 mines are now presented as Gross Value Added (GVA) at basic
in the Public Sector and the remaining 1,383 mines were prices. Certain changes have been made in this series
under Private Sector. including for Mining & Quarrying Industry. During
2016-17 Mining & Quarrying Industry accounted for
Table – 2 : Number of Reporting Mines
about 2.2% of the GVA at current prices. The GVA at
2015-16 and 2016-17 current and constant prices for the period from 2014-15
to 2016-17 is furnished in Tables- 3 & 4.
Sector 2015-16 (R) 2016-17 (P)
Employment
All Minerals* 2131 2020
The estimated average daily employment of labour
I (i) Public sector 634 637 engaged in Mining Sector (excluding atomic and minor
(ii) Private sector 1497 1383 minerals) was 4,77,399 in 2016-17. Of this, 3,76,819 or
II (i) Fuel minerals(e) 512 512 79% were in Public Sector and 1,00,580 or 21% in Private
(ii) Metallic minerals 715 644 Sector. Fuel minerals accounted for 77%, metallic
(iii)Non-metallic minerals 9 0 4 864 minerals 17% and non-metallic minerals 6% of the total
* Excluding atomic minerals, petroleum (crude), labour force during the year.
natural gas (utilised) and minor minerals.
Source: MSMP, March-2017. India’s ranking in 2016 in world production was
2 in coal & lignite, 3rd in steel (crude), kyanite,
nd

Role of Public Sector andalusite & sillimanite and; 4th in chromite, iron ore,
aluminium and zinc (slab); 5th in bauxite, 6th in manganese
The entire production of copper ore & concentrates ore, copper (refined) and 101h in magnesite. The statistics
among metallic minerals; and diamond, fluorite, selenite on indigenous and world production of principal
and sulphur in respect of non-metallic minerals was minerals and metals are detailed in Table- 5.

Table - 3: Gross Value Added at Basic Price, 2014-15 to 2016-17

(At Current Prices)
(in ` crore)

Industry 2014-15 (NS) 2015-16 (NS) 2016-17 (PE) % Change in 2016-17

over the previous year

GVA (All) 11481794 12458642 13669914 9.7

Mining & Quarrying 314177 296253 301921 1.9

Source : CSO NS : New Series Estimates PE : Provisional Estimates

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Table - 4: Gross Value Added at Basic Price, 2014-15 to 2016-17

(At 2011-12 Prices)
(in ` crore)

Industry 2014-15 (NS) 2015-16 (NS) 2016-17 (PE) % Change in 2016-17

over the previous year

GVA (All) 9719023 10490514 11185440 6.6

Mining & Quarrying 293821 324740 330485 1.8

Source : CSO NS : New Series Estimates PE : Provisional Estimates

Table-5: Contribution and Rank of India in World Production of

Principal Minerals & Metals, 2016

Unit of Production Contribution India’s rank in World order

Commodity quantity (Percentage)
Sector
World India*

Metallic Minerals
th
Bauxite '000 tonnes 289000 24664 8.53 5
th
Chromite '000 tonnes 34800 3727 10.71 4
th
Iron ore million tonnes 3305 192 5.81 4
th
Manganese ore '000 tonnes 51200 2393 4.67 6

Industrial Minerals**
th
Magnesite '000 tonnes 29800 299 1.00 10

Apatite &
th
Rock phosphate '000 tonnes 276000 1181 0.43 17

Metals
th
Aluminium '000 tonnes 58800 2896 4.92 4
th
Copper (refined) '000 tonnes 23400 787 3.36 6
rd
Steel (crude/liquid) million tonnes 1623 97.44 6.00 3
th
Lead (metal) '000 tonnes 11300 142 1.25 14

Zinc (slab) '000 tonnes 13800 672 4.87 4 th

Source: World mineral production data compiled from World Mineral Production, 2012-2016; British Geological Survey.
* Figures relate to 2016-17.
Note: Data in respect of World Mineral Production is on calendar year basis, however the data on India’s production is based on
financial year. th
** As per Government of India Notification S.O. 423(E) dated 10 February, 2015, following minerals have been
declared as minor minerals: i) barytes ii) dolomite iii) felspar iv) fireclay v) quartz/silica sand and vi) talc/steatite/
soapstone & pyrophyllite, hence not included in the table due to non-availability of production data with respect to
India.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

MINERAL POLICY & National Mineral Exploration Policy

LEGISLATION (NMEP)
Important Notifications issued during the period
under review are detailed below: National Mineral Exploration Policy (NMEP,
2016) encourages Private Sector participation
National Mineral Policy 2018 through its revenue sharing model. It also
The Hon'ble Supreme Court in its judgement emphasises on generation and dissemination of
dated 2.08.2017 in the Writ Petition (civil ) 114 of baseline geo-scientific data by the Government
2014 inter-alia directed the Union of India to revisit as public good and creation of National Geo-
the National Mineral Policy 2008 (NMP 2008) Science Data Repository to promote exploration
and announce a fresh and more effective and activities. Implementation of this policy will
meaningful policy. promote the growth of the sector as currently India
In compliance of the directions given by the lags in base-line geophysical and geochemical
Hon'ble Supreme Court, Ministry of Mines Data Creation.
(MOM), vide its Order no.15/1/2017-MV dated
Hydrocarbon Exploration and Licensing
14.08.2017, had costituted a Committee.
Policy (HELP)
The Committee had representatives from
The Government recently approved
Central Ministries, State Government, Industry
Hydrocarbon Exploration and Licensing Policy
Associates, Professional Bodies and it also
(HELP) in March 2016 in order to attract desired level
consulted the NGOs and many other Stakeholders
by co-opting them. The Committee adopted a of investment in petroleum exploration. The
consultative process and went ahead with an Government is strategically moving away from cost-
approach towards problem solving and resolving sharing model to revenue-sharing model with
of issues. It held four meetings wherein exhaustive marketing and pricing freedom for crude oil and
deliberations on the issues raised by the natural gas produced by contractors under HELP.
stakeholders were discussed. The Committee also The new policy regime is expected to attract more
sought written comments/suggestions from investment to boost exploration and production of
stakeholders. oil and gas from conventional and unconventional
sources. Further, the HELP is designed to improve
The Committee submitted its report to the
bidding for designated areas throughout the year in
Ministry on 31.12.2017.
a very transparent manner.
Foreign Direct Investment Policy (FDI)
Foreign Trade Policy
(I) As policy, 100% FDI has been permitted
via Automatic Route for mining and exploration Amendment in Para 4.44 of Chapter 4 of the
of metal and non-metal ores including diamond, Foreign Trade Policy (FTP) 2015-20
gold, silver and precious ores and the mining of
In the Notification issued by the Ministry of
coal and lignite for captive consumption for power
Commerce and Industry (Department of
projects, iron, steel and cement units.
Commerce) (Directorate General of Foreign Trade)
(II) Similarly, 100% FDI has been permitted and published in the Gazette of India,
through Government Route for mining of titanium- E x t r a o r d i n a r y, P a r t I I , S e c t i o n 3 ( i i ) , d a t e d
bearing minerals and its ores, its value addition 22.02.2017 S.O. 596 (E) the following amendments
and integrated activities. have been effected.
FDI Equity Inflow In exercise of powers conferred by Section 5
As per DIPP "Mining Sector Achievement of FT (D&R) Act, 1992, read with Paragraph 1.02
Report", the FDI equity inflow in the sector of the Foreign Trade Policy, 2015-20, as amended
increased by 1600 % to US$ 1.2 billion during August from time to time, the Central Government hereby
makes following amendments in Para 4.44 of
2014-March 2016 as compared to US$ 70.62 million
Chapter 4 of Foreign Trade Policy 2015-20.
released during the period April 2012-March 2014.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

1. The existing Para 4.44 of FTP 2015-20 reads as metallic scrap; and (ii) extends their validity for
under: such imports, in supersession of the provision in
4.44. Export of Cut & Polished Diamonds with Para 2.54(d) (v), notified vide Public Notice No
Re-import Facility at Zero Duty “An exporter (with 38(2015-20) dated 06/10/2016 as under:
annual export turnover of ` 5 crore for each of the
Existing Paragrapah
last three years) may export cut & polished diamonds
Import of scrap would take place only through
(each of 0.25 carat or above) to any of the agencies/
following designated ports and no exceptions would
laboratories mentioned under paragraph 4.74 of
be allowed even in case of EOUs, SEZs:-
Handbook of Procedures with re-import facility at
1. Chennai, 2. Cochin, 3. Ennore, 4. JNPT, 5. Kandla,
zero duty within 3 months from the date of export.
6. Mormugao, 7. Mumbai, 8. New Mangalore, 9.
Such facility of export and subsequent re-import at
Paradip, 10. Tuticorin, 11.Visakhapatnam, 12. ICD
zero duty will be subject to guidelines issued by
Loni, Ghaziabad, 13. Pipava, 14. Mundra, 15. Kolkata,
Central Board of Customs & Excise, Department of
16. ICD Ludhiana, 17. ICD Dadri (Greater Noida), 18.
Revenue”.
ICD Nagpur, 19. ICD Jodhpur, 20. ICD Jaipur, 21. ICD
2. Effect of Notification: The facility for export and re- Udaipur, 22. CFS Mulund, 23. ICD Kanpur, 24. ICD
import of cut and polished diamonds at zero duty for Ahmedabad, 25. ICD Pitampur and 26. ICD Malanpur.
the purpose of certification and grading has been Revised Paragraph
extended to the authorised offices/ agencies in India
for laboratories mentioned under Paragraph 4.74 of Import of scrap would take place only through
Handbook of Procedures 2015-20. following designated ports and no exceptions
would be allowed even in case of EOUs, SEZs:-1.
Amendments in Appendix 4J of Handbook of Chennai, 2. Cochin, 3. Ennore, 4. JNPT, 5. Kandla,
Procedures 2015-20 and in General Notes for 6. Mormugao, 7. Mumbai, 8. New Mangalore, 9.
Chemicals and Allied Products of Standard Input Paradip, 10. Thoothukudi, 11.Visakhapatnam,
Output Norms (SION) relating to Export 12. Pipava, 13. Mundra and 14. Kolkata.
Obligation Period under Advance Authorisations. The existing designated sea ports, namely;
In the Public Notice issued by Ministry of Chennai, Cochin, Ennore, JNPT, Kandla, Mormugao,
Commerce and Industry (Department of Mumbai, New Mangalore, Paradip, Thoothukudi,
Commerce) and published in the Gazette of India, Visakhapatnam, Pipava, Mundra and Kolkata will be
Extraordinary, Part I, Section 1, dated 24.03.2017, further allowed to import unshredded scrap till 31 st
Public Notice, 62 /2015-2020 under F. No. 01/94/ March, 2018 by which time they are required to install
180/115/AM 17/PC-4, it reads —In exercise of and operationalise Radiation Portal Monitors and
powers conferred under Paragraph 1.03 of the Container Scanner. Such sea ports which fail to meet
Foreign Trade Policy 2015-2020, as amended from the deadline will be derecognised for the purpose of
time to time, the Director General of Foreign Trade import of un-shredded metallic scrap w.e.f. 1.4.2018.
made amendment in Appendix 4J of Handbook of
Procedures 2015-2020: Effect of the Public Notice: Para 2.54(d)(iv) of the
Handbook of Procedures, 2015-2020 has been
Amendment in Para 2.54 of the Handbook of
amended to reflect the list of designated ports for
Procedures, 2015-2020 imports of un-shredded metallic scrap and the
Under Ministry of Commerce and Industry period for installation and operationalisation of
(Department of Commerce) Public Notice 62/ 2015- Radiation Portal Monitors and Container Scanner
2020 No. 01/89/180/53/AM-01/PC-2 (B), it reads— in these ports is extended up to 31.3.2018.
In exercise of powers conferred under Paragraph Amendments in Foreign Trade Policy
2.04 of the Foreign Trade Policy 2015-2020, the 2015-20
Directorate General of Foreign Trade hereby In the Notification S.O 596 (6) of the Ministry
of Commerce and Industry (Department of
amends (i) Para 2.54 (d) (iv) of the Handbook of
Commerce) (Directorate General of Foreign Trade),
Procedures, 2015-2020 detailing the names of the it reads — In exercise of powers conferred by
designated ports for import of un-shredded Section 5 of FT (D & R) Act, 1992, read with

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Paragraph 1.02 of the Foreign Trade Policy, 2015-2020, own minor minerals concession rules.
as amended from time to time, the Central Government
Further, Section 23C of the MMDR Act, 1957
hereby makes following amendments in Para 4.44 of
empowers State Governments to frame rules to prevent
Chapter 4 of Foreign Trade Policy 2015-20.
illegal mining, transportation and storage of mineral
1. The existing Para 4.44 of FTP 2015-20 reads as under:
sand for purposes connected therewith. Control of
4.44 Export of Cut & Polished Diamonds with
illegal mining is, therefore, under the legislative and
Re-import Facility at Zero Duty-
administrative jurisdiction of State Governments.
“An exporter (with annual export turnover of
` 5 crore for each of the last three years) may export The Ministry of Environment, Forest and Climate
cut & polished diamonds (each of 0.25 carat or above) Change has issued Sustainable Sand Mining
to any of the agencies/laboratories mentioned under Management Guidelines, 2016, which, inter-alia,
paragraph 4.74 of Handbook of Procedures with re- addresses the issues relating to regulation of Sand
import facility at zero duty within 3 months from the Mining. The salient features of the Guidelines in this
date of export. Such facility of re-import at zero duty regard are as follows:
will be subject to guidelines issued by Central Board (i) It provides for a detailed programme for ensuring
of Customs & Excise, Department of Revenue”. that mining of river sand is done in a sustainable
2. The amended Para 4.44 of FTP 2015-20 is to be read manner;
as under: (ii) Grant of Environment Clearance for minor
4.44 Export of Cut & Polished Diamonds with minerals, including sand and gravel, for mining lease
Re-import Facility at Zero Duty of area up to 5 hectares will be done by the District
“An exporter (with annual export turnover of ` 5 crore Environment Impact Assessment Authority headed by
for each of the last three years) or the authorised the District Collector/ District Magistrate.
offices/agencies in India of laboratories mentioned
(iii) Removal of sand accumulated on the
under Paragraph 4.74 of Handbook of Procedures may
agricultural field after cessation of flooding will not be
export cut & polished diamonds (each of 0.25 carat or considered as mining operation and its removal and
above) to any of the agencies/laboratories mentioned selling can be allowed without the requirement of
under Paragraph 4.74 of Handbook of Procedures 2015- environment clearance till it is done only to the extent
20 with re-import facility at zero duty within 3 months of reclaiming the agricultural land.
from the date of export. Such facility of export and (iv) Exemption of certain cases from being
subsequent re-import at zero duty will be subject to considered as mining for the purpose of requirement
guidelines issued by Central Board of Customs & of environment clearance like that of extraction of
Excise, Department of Revenue”. ordinary clay or ordinary sand manually by hereditary
Sand Mining Kumhars (Potter) who prepare earthen pots on a
Cottage Industry basis;
Press Information Bureau, Government of India (v) extraction of ordinary clay or ordinary sand
Ministry of Mines published a Guidelines for Sand manually by earthen tile makers who prepare earthen
Mining on 15th December, 2016. The Guidelines for Sand tiles on a Cottage Industry basis;
Mining are as follows:
(vi) removal of sand deposited on agricultural field
Sand is a minor mineral, as defined under Section after flood by owner farmers;
3(e) of the Mines and Minerals (Development and (vii) customary extraction of sand and ordinary
Regulation) Act,1957 (MMDR Act). Section 15 of the earth from sources situated in Gram Panchayat for
MMDR Act empowers State Governments to make personal use or community work in village;
rules for regulating the grant of mineral concessions
(viii) community works like desilting of village
in respect of minor minerals and for purposes ponds /tanks, rural roads undertaken in MGNREGS
connected therewith. The regulation of grant of mineral and other Government sponsored schemes;
concessions for minor minerals is, therefore, within the
(ix) dredging and desilting of dam, reservoirs, weirs,
legislative and administrative domain of the State
barrages, river, and canals for maintenance and upkeep
Governments. and avert natural disaster. If the dredging activities
Under the power granted to them by Section 15 of are undertaken for the purpose of winning mineral and
the MMDR Act, State Governments have framed their selling it commercially it will be considered mining.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

LEGISLATION within ninety days of the date of the

communication of the said order.
Offshore Areas Mineral (Development Whereas the grant of exploration licences in
and Regulation) Act, 2002 62 blocks was challenged in the judicature of
In the Notification published vide S.O. various High Courts.
2324(E). dated 30.06.2016 it is stated that — And whereas the Hon’ble High Court of
W h e r e a s t h e O ff s h o r e A r e a s M i n e r a l Judicature of Bombay, Nagpur Bench, vide its
(Development and Regulation) Act, 2002 (No.17 Order dated 28.03.2011 in Writ Petition No. 1502
of 2003) (hereinafter referred to as OAMDR Act) of 2011, directed that all subsequent actions be
received the assent of the President of India on
kept in abeyance till the final order of the Hon’ble
30th January, 2003.
High Court.
Whereas in exercise of the powers conferred
And whereas in keeping with the directions
by Section 35 of the OAMDR Act, the Ministry of issued by the Hon’ble High Court of Judicature
Mines, Government of India notified the Offshore of Bombay, Nagpur Bench, vide its Order dated
Areas Mineral Concession Rules, 2006 (hereinafter 28.03.2011, all the 16 applicants were informed that
referred to as OAMCR) on 3rd November, 2006.
all subsequent actions are being kept in abeyance
Whereas the Ministry of Mines by till the final order of the Hon’ble Court is received.
notification in the Official Gazette dated 12 th Whereas the Hon’ble High Court of Judicature at
February, 2010 notified 15 th January, 2010 as the Bombay, Nagpur Bench vide interim Order dated
date on which the OAMDR Act and OAMCR shall 28.11.2011 in Writ Petition No. 1502 of 2011
come into force. clarified that the Order dated 28.03.2011 should
Whereas in exercise of the powers conferred be confined to 17 blocks for which the petitioner
under Clause (a) of Section 4 of the OAMDR Act, has staked claim and the remaining blocks do not
the Central Government vide S.O.339 (E) dated form the subject matter of consideration before
11th February 2010 notified the Controller General, the Court.
Indian Bureau of Mines, Nagpur as the And whereas the Hon’ble High Court of
Administering Authority for the purposes of the
Judicature at Bombay, Nagpur Bench vide Order
said OAMDR Act.
Whereas in exercise of the powers conferred d a t e d 1 7 . 0 9 . 2 0 1 3 w h i l e d i s p o s i n g t h e Wr i t
under Sub-section (1) of Section 10 of OAMDR Petition No. 1502 of 2011 ordered the continuance
Act, the Administering Authority notified 63 of the interim Order dated 28.11.2011 for a period
mineral-bearing offshore blocks for grant of of ten days to enable the petitioner to move an
exploration licences, vide S.O.1341(E) dated appropriate application for further continuation
7 th June 2010, which was published in the Official of the interim Order if so desired.
Gazette dated 9 th June 2010.
And whereas the Hon’ble High Court of
And whereas 377 applications were received Judicature at Bombay, Nagpur Bench vide Order
from 53 applicants and whereas 16 applicants were dated 27.09.2013 extended the Order dated
shortlisted for grant of 62 exploration blocks (the 28.03.2011 as modified on 28.11.2011 for a further
bounding latitude and longitude of Block Nos. 3 period of six weeks.
&32 falling in the Arabian Sea were same and Whereas the Hon’ble High Court of Judicature
therefore these were considered as a single block of Andhra Pradesh at Hyderabad vide interim
and granted as Block No.3). Order dated 22.06.2011 in Writ Petition No. 12835
of 2011 directed that “in the meanwhile, if any
Whereas orders for grant of exploration steps are taken for grant of exploration licences,
licences were issued by the Administering the same shall be subject to further orders by this
Authority on 05.04.2011 to 16 successful Court”. Further, another Order dated 11.07.2011
applicants for the 62 exploration blocks. was issued by the Hon’ble Court in this regard
directing that “the interim Order dated 22.06.2011
And whereas as per the provisions of Sub- granted earlier shall continue until further orders”.
rule (1) of Rule 19 of the OAMCR, where an order And whereas the Writ Petition No. 12835 of
has been made for the grant of exploration licence, 2011 filed in the Hon’ble High Court of Judicature
a deed granting such licence shall be executed of Andhra Pradesh at Hyderabad has not been

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

disposed as on the date of this order, and the Whereas production lease is granted under
offshore exploration licences granted have not the OAMDR Act for the purpose of winning any
been executed till date. mineral from the offshore area.

Whereas it has come to the notice of the And whereas grant of production lease is
Administering Authority that some of the consequential to the grant of exploration license
exploration blocks notified for grant of offshore as the OAMDR Act provides that the holder of an
exploration licences vide notification dated exploration licence shall have the exclusive right
07.06.2010 overlap with areas other than offshore to a production lease which is the operating right
area, to which the OAMDR Act does not apply. for winning of a mineral.

That the jurisdiction of OAMDR Act, applies Whereas in view of the effect of the CRZ
exclusively to offshore areas which has been Notification dated 6.1.2011 the purpose of
defined in the said Act as the territorial waters, executing the 62 offshore exploration licences gets
continental shelf, exclusive economic zone and defeated as the applicants cannot undertake
other maritime zones of India under the Territorial operations for winning of minerals subsequent to
Waters, Continental Shelf, Exclusive Economic the grant of production lease after the successful
Zone and Other Maritime Zones Act, 1976. completion of exploration operations.

And that the grant of mineral concessions Taking into consideration all the above stated
over areas other than offshore areas is regulated facts, the Notification issued vide S.O.1341(E)
by the Mines and Minerals (Development and dated 7 th June 2010 has been annulled with effect
Regulation) Act, 1957 (67 of 1957). that all subsequent actions undertaken for grant
of the 62 exploration licences would stand
Whereas the Central Government vide S.O.19 rescinded.
(E) dated 6 th January, 2011, published in the
Official Gazette by the Department of MMDR Act
Environment, Forests and Wildlife, Ministry of Minerals (Transfer of Mining Lease Granted
Environment and Forests, has declared the extent Otherwise than through Auction for Captive
of the Coastal Regulation Zone (CRZ) and has also Purpose) Rules, 2016.
imposed certain restrictions on the setting up and
expansion of industries, operations or processes In the Notification published in the Gazette
and the like in the CRZ. of India dated 18th May 2016 S.O. 560(E), it reads—
In exercise of the powers conferred by Clause
And whereas the said statutory Order dated (qqja) of Sub-section (2) of Section 13 read with
6.1.2011 states that CRZ shall also apply to the the proviso to Sub-section (6) of Section 12A of
water and the bed area between the Low Tide Line the Mines and Minerals (Development and
to the territorial water limit (12 Nm) in case of seas Regulation) Act, 1957 (67 of 1957), the Central
and has prohibited in the area so identified as CRZ, Government had made these rules.
inter alia, the mining of sand, rocks and other sub-
strata materials except those rare minerals not
Amendment of the Mineral (Auction) Rules,
available outside the CRZ area.
2015
In the Notification issued by Ministry of
Mines and published on 30 th November, 2017 under
And whereas all the 62 offshore blocks which
G.S.R.1469 (E), it reads— In exercise of the powers
were notified for grant of exploration licences vide
conferred by Section 13 of the Mines and
S.O.1341(E) dated 9th June 2010, lie within the area
Minerals (Development and Regulation) Act, 1957
identified as CRZ, i.e. they lie within the territorial
water limit of 12 nautical miles which attracts the (67 of 1957), the Central Government had amended
prohibition of mining (which means any operation the Mineral (Auction) Rules, 2015.
undertaken for the purpose of winning any
mineral) imposed by the statutory Order dated 1. The Bank for the purpose hereof
6.1.2011 issued by the Central Government. unconditionally and irrevocably undertakes to pay

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

to the State without any demur, reservation, 5. Any payment made hereunder shall be made free
caveat, protest or recourse, immediately on receipt and clear of and without deduction for, or on
of first written demand from the State, a sum or account of, any present or future taxes, levies,
sums (by way of one or more claims) not exceeding imposts, duties, charges, fees, commissions,
the Guarantee Amount in the aggregate without deductions or withholdings of any nature
the State needing to prove or to show to the Bank whatsoever.
grounds or reasons for such demand for the sum 6. The Bank agrees that the State at its option
specified therein and notwithstanding any dispute shall be entitled to enforce this Guarantee against
or difference between the State and Preferred the Bank, as a principal debtor in the first instance
Bidder or Successful Bidder on any matter without proceeding at the first instance against
whatsoever. The Bank undertakes to pay to the the Preferred Bidder or Successful Bidder.
State any money so demanded notwithstanding 7. The Bank further agrees that this bank
any dispute or disputes raised by the Preferred guarantee and the guarantee obligations herein
Bidder or Successful Bidder in any suit or contained shall remain in full force and effect and
proceeding pending before any court or tribunal shall continue to be enforceable till: (i) all the
relating thereto the Bank’s liability under this obligations of the Preferred Bidder or Successful
present being absolute and unequivocal. Bidder under or by virtue of the said Agreement
2. The Bank acknowledges that any such demand with respect to the Performance Security have
by the State of the amounts payable by the Bank been fully paid and its claims satisfied or
to the State shall be final, binding and conclusive discharged; or (ii) till the State certifies that the
evidence in respect of the amounts payable by terms and conditions of the Agreement with
Preferred Bidder or Successful Bidder to the State respect to the Performance Security have been
fully and properly carried out by the Preferred
under the Agreement.
Bidder or Successful Bidder and accordingly
3. The Bank hereby waives the necessity for the discharges this guarantee; or (iii) on provision of
State from demanding the aforesaid amount or any a revised performance security under Sub-rule (2)
part thereof from the Preferred Bidder or of Rule 19 of the Mineral (Auction) Rules, 2015
Successful Bidder and also waives any right that whichever is later. Notwithstanding anything
the Bank may have of first requiring the State to contained herein, unless a demand or claim under
pursue its legal remedies against the Preferred this guarantee is made on the Bank in writing on
Bidder or Successful Bidder, before presenting or before the Expiry Date the Bank shall be
any written demand to the Bank for payment under discharged from all liability under this guarantee
this Guarantee. thereafter.
4. The Bank further unconditionally agrees with 8. The payment so made by the Bank under this
the State that the State shall be at liberty, without Guarantee shall be a valid discharge of Bank’s
liability for payment thereunder and the State shall
the Bank’s consent and without affecting in any
have no claim against the Bank for making such
manner the Bank’s obligation under this Guarantee, payment.
from time to time to: 9. This Guarantee is subject to the laws of India.
i) vary and/or modify and of the terms and Any suit, action, or other proceedings arising out
conditions of the Agreement; of this Guarantee or the subject matter hereof shall
ii) extend and/or postpone the time for performance be subject to the exclusive jurisdiction of courts
of the obligations of the Preferred Bidder or at the State of [respective State].
successful Bidder under the Agreement, or 10. The Bank has the power to issue this
iii) forbear or enforce any of the rights exercisable Guarantee in favour of the State. This guarantee
by the State against the Preferred Bidder or will not be discharged due to the change in the
Successful Bidder under the terms and conditions constitution of the Bank.
11. The Bank undertakes not to revoke this
of the Agreement,
Guarantee during its currency except with the
and the Bank shall not be relieved from its liability previous consent of the State in writing.
by reason of any such act or omission on the part
of the State or any indulgence by the State to the
Preferred Bidder or Successful Bidder or other
Minerals (Other than Atomic and
Hydrocarbons Energy Minerals)
thing whatsoever which under the law relating to
Concession (Amendment) Rules, 2016
sureties would, but for this provision, have the
effect of relieving the Bank of its obligations In the Notification published in the Gazette
under this Guarantee. of India: Extraordinary, Part II, Section 3(i) dt.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY
08.12.2016, under G.S.R. 1120(E), it reads — In powers conferred by Section 18 of the Mines and
exercise of the powers conferred by Section 13 of Minerals (Development and Regulation ) Act,1957
the Mines and Minerals (Development and (67 of 1957), and in supersession of the Mineral
Regulation) Act, 1957 (67 of 1957), the Central Conservation Development Rules, 1988, except as
Government hereby makes the following rules to respects things done or omitted to be done before
amend the Minerals (Other than Atomic and such supersession, the Central Government hereby
Hydrocarbons Energy Minerals) Concession makes the Mineral Conservation and Development
Rules, 2016, namely— Rules, 2017.
1. (i) These rules may be called the Minerals In the said Rules definitions for various
(Other than Atomic and Hydrocarbons Energy t e r m s w e r e d e f i n e d u n d e r R u l e 3 , f u r t h e r,
Minerals) Concession (Amendment) Rules, 2016. provisions were made for reconnaissance and
(ii) They shall come into force on the date of prospecting operations, mining operations, plans
their publication in the Official Gazette. & sections, sustainable mining, notices & returns,
employment of geologists and mining engineers,
2. In the Minerals (Other than Atomic and examination of minerals & issue of directives,
Hydrocarbons Energy Minerals) Concession revision & penalty, geological reports, mining
Rules, 2016, in Rule 12, after Sub-rule (5), the regulation portal, etc. Further, in the attached
following Sub-rule shall be inserted, namely:– schedule Form – A, Form – B, Form – C, Form – D,
“(5A) Notwithstanding anything contained in Form – E, Form – F, Form – F1, Form – F2, Form –
Sub-rule (5), the State Government may grant a F3, Form – G1, Form – G2, Form – G3, Form – H,
mining lease for area less than five hectares in Form – I, Form – J, Form – K, Form – L, Form – M
respect of a mining lease to be granted in and Form – N have been enclosed.
pursuance of the provisions of Clause (b) or Amendment to the Mineral Conservation
Clause (c) of Sub-section (2) of Section 10A of and Development Rules, 2017
the Act:
Provided that no mining lease shall be granted The lease period of merchant miners extended
for area less than one hectare, in respect of small under the Section 8A(6) of the MMDR Act, would
deposits (not fragmented portions of larger ones), expire on 31 st March, 2020. There are about 288
shallow in nature, isolated and not exceeding two mining leases which would expire in 2020, of which
hundred metres in strike length, which are small 59 are working leases, which give substantial
by virtue of either origin or mode of emplacement production of key minerals viz. iron ore,
or dislocation due to geological disturbances; and manganese ore, chromite ore, etc. The auction
small deposits shall also include float deposits process needs to be initiated well in advance to
(transported) formed due to mechanical weathering ensure a seamless transition from the existing to
and deposition, alluvial or eluvial placers (buried
the new lessees so that the mineral production is
or otherwise), which generally have peculiar
configurations excepting beach sands or placers: not affected due to expiry of these leases.
Exploration of the blocks was required to be done
Provided further that no mining lease shall be for the auction process of these mineral blocks.
granted for area less than two hectares, in respect The Central Government had earlier issued a
of beach sands or placers, which are mono or multi directive in 2010 which mentioned that all the
mineral concentrations, including the dunes existing leases have to be brought to an
occurring on and off the coastal shore line
exploration level of G2 or G1 in 5 years' time. It
deposited as a product of the ebb and flow of
tides, waves and inshore currents, and at places has been further strengthened by inserting Rule
semi-consolidated to consolidated in nature: 12 (4A) in the Mineral Conservation and
Provided also that no mining lease shall be Development Rules, 2017 (MCDR) by way of an
granted for area less than four hectares in all other amendment notification, published in the Gazette
cases other than those specified in the first and of India vide G.S.R. No.289 dated 27.03.2018. The
second provisos.” Rule mandates exploration in G2 level as stipulated
under Clause (a) of Rule 5 of the Minerals
Mineral Conservation and Development
(Evidence of Mineral Contents) Rules 2015, to be
Rules, 2017
carried out in the mining leases expiring in 2020
In the Notification issued by the Ministry of by 1 st April, 2019. The Rule also lays down the
Mines and published in the Gazette of India, timelines for implementation of the exploration
E x t r a o r d i n a r y, P a r t I I , S e c t i o n 3 ( i ) , d a t e d plan prepared with the approval of IBM for
27.02.2017.G.S.R. 169(E), it reads —In exercise of satisfying the requirements.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY
Mines and Minerals (Development and Gazette of India, Extraordinary, Part II, Section 3(ii),
Regulation) Removal of Difficulties dated 12.01.2017,S.O. 153(E), it reads— In exercise
Order, 2017. of the powers conferred by the Sub-section (1) of
In the Order published in the Gazette of India: Section 7 of the Export (Quality Control and
Extraordinary, Part II, Section 3(ii) dt. 04.01.2017 under Inspection) Act, 1963 (22 of 1963) read with Sub-
S.O. 27(E), it reads—Whereas difficulties have arisen rule (2) of Rules 12 of the Export (Quality Control
in giving effect to the provisions of Clause (c) Sub- and Inspection) Rules, 1964, the Central
section (2) of Section 10A of the Mines and Minerals Government hereby recognises M/s Reliable
(Development and Regulation) Amendment Act, 2015 Analytical Laboratories Pvt. Ltd, Murgao Beach
(10 of 2015), in so far as it relates to fulfilment of Tower, Ground Floor, Shop No. 07, Opp. Busy Bee
conditions laid in the letter of intent (by whatever School, Desterro, Vasco-Da-Gama, Goa – 403 802,
name called) issued by the State Governments within as an agency for a period of three years with effect
a period of two years from the date of commencement from the date of publication of this notification,
of the said Act. for the inspection of Minerals and Ores Group-I,
namely, Iron Ore as specified in the Schedule to
Now, therefore, in exercise of the powers the notification of the Government of India in the
conferred by Sub-section (1) of Section 24 of the Ministry of Commerce vide number S.O. 3975 dated
Mines and Minerals (Development and Regulation) the 20 th December 1965, prior to export of said
Amendment Act, 2015 (10 of 2015), the Central Minerals and Ores at Goa Port, subject to the
Government issued the order to remove the following conditions, namely—
difficulties relating to fulfilment of conditions laid in (i) M/s Reliable Analytical Laboratories Pvt. Ltd,
the letter of intent. Murgao Beach Tower, Ground Floor, Shop No. 07,
Opp. Busy Bee School, Desterro, Vasco-Da-Gama,
Export Rules Goa – 403 802, shall give adequate facilities to the
Recognising M/s SGS India Private Limited, officers nominated by the Export Inspection
for the Inspection of Minerals and Ores– Council in this behalf to carry out the inspection
Group-I, under Export (Quality Control and specified under Rule 4 of the Export of Minerals
Inspection) Rules, 1964. and Ores - Group I (Inspection) Rules, 1965;
In the Notification issued by Ministry of
Commerce and Industry and published in the
Gazette of India, Extraordinary, Part II, Section 3(ii), (ii) M/s Reliable Analytical Laboratories Pvt. Ltd,
dated 12.01.2017, S.O.152(E), it reads–In exercise Murgao Beach Tower, Ground Floor, Shop No. 07,
of the powers conferred by the Sub-section (1) of Opp. Busy Bee School, Desterro, Vasco-Da-Gama,
Section 7 of the Export (Quality Control and Goa – 403 802, in the performance of their function
Inspection) Act, 1963 (22 of 1963) read with Sub- under this notification shall be bound by such
rule (2) of Rules 12 of the Export (Quality Control directions as the Director (Inspection and Quality
and Inspection) Rules, 1964, the Central Control), Export Inspection Council may give in
Government hereby recognises M/s SGS India writing from time to time.
Private Limited, Door No. 45-56-3/5/1, 1 st Lane,
Apex Court Verdict for Cancellation of Goa
Narasimha Nagar, NH 5, Visakhapatnam-530 024,
Iron Ore Leases
Andhra Pradesh, in the performance of their
function under this notification shall be bound The Apex Court quashed the second renewal
by such directions as the Director (Inspection and of Iron ore leases given to 88 companies in Goa,
Quality Control), Export Inspection Council may in 2015. The companies have been directed to stop
give in writing from time to time. all mining operations w.e.f. March 2018, until fresh
Recognising M/s Reliable Analytical Laboratories mining leases (not fresh renewal or other renewals)
Pvt. Ltd, Murgao Beach Tower, for the Inspection of are granted and fresh environmental clearances
Minerals and Ores – Group-I, under Export (Quality are granted.
Control and Inspection) Rules, 1964. The Supreme Court on 7 th February, 2018 has
In the Notification issued by Ministry of directed the Centre and the Goa Government to
Commerce and Industry and published in the grant fresh environment clearances.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Reservation of Area for M/s National Geological Survey of India (GSI)

Aluminium Company Limited (NALCO)
GSI is vested with the responsibility of
In the Notification published on G.S.R. 411(E) maintaining broad-based and uniform national
and [F. No. 4/16/2005-M.VI] dated 27th April, 2017, approach to data generation in respect of mineral
it reads—In exercise of the powers conferred by resources. With the near exhaustion of resources
Sub-section (1A) of Section 17A of the Mines and to the proximity of surface, it has become imperative
Minerals (Development and Regulation) Act, 1957 to have multidisciplinary approach to mineral
(67 of 1957), the Central Government, in exploration which comprises large-scale and detailed
consultation with the State Government of Odisha, geological mapping aided by interpretative analysis
hereby reserves the area of 1738.04 hectares of aerogeophysical and remotely sensed data, ground
specified below through M/s National Aluminum geophysical survey, geochemical prospecting and
Company Limited (NALCO), a Public Sector surface & subsurface exploration through pitting,
Undertaking owned and controlled by the Central trenching & drilling. GSI’s activities in mineral
Government, for undertaking prospecting or exploration as well as baseline surveys have
mining operations in respect of bauxite deposits increased manifold in order to sustain the momentum
in the Taluk of Pottangi of Koraput District in the of national economic development and to meet the
State of Odisha for a further period of five years increasing demands of various stakeholders. As per
with effect from 27th April, 2017, except the areas recent development towards Policy shift, GSI has
already held under prospecting licence or mining been entrusted G2 level of investigations for M-IIA
lease and declares that no other prospecting Items that were included in FS 2015-16. GSI also did
licence or mining lease shall be granted in the said engage in the task of upgrading the level of
area, during the said period of five years lying investigation in different important exploration items
within the boundary of such reserved area and along with identification of resource potential of G3
for the mineral specified below, namely— level, for auctioning as per the recent policies of the
District: Koraput Government. Emphasis also has been laid on the
Area: 1738.04 hectares, Pottangi Bauxite deposit need to focus attention on the survey and exploration
in the Taluk of Pottangi of Koraput district– of those minerals in which the country has high
Toposheet No. 65J/14. geologic potential but poor resource-cum-reserve
base. Similar priority has also been given to minerals
Area demarcated by Latitude and
that have high internal demand or export potential.
Longitude:
Latitude 18 o 34' 00" N to 18o 37' 15" N GSI is executing its programmes through
Longitude 82o 56' 30" E to 83o 000' 00" E Mission-Region hybrid matrix mode.GSI in
Mineral: Bauxite. pursuance of its systematic geological mapping
in 2016-17 had completed 8,043 sq km as against
EXPLORATION & DEVELOPMENT the target of 5,500 sq km large-scale mapping, 146
sq km detailed mapping as against the target of
GSI, DGMs of various States, Public 103 sq km and 1,39,072 m drilling as against the
Sector companies like NMDC, MECL, MOIL, target of 1,13,202 m. Out of the total mappable
GMDC, HGML, etc. continued their efforts of areas of 3.146 million sq km of the country, 3.106
surveying, mapping and exploration of new million sq km has been covered (till March, 2017)
deposits and reassessment of old deposits/ so far by systematic mapping bringing the total
mines during 2016-17. In the Oil and Gas Sector, coverage to 98.73%. Since the acquisition and
ONGC, OIL and a few joint venture and private induction of Twin Otter Airbone Survey System
companies were engaged in exploration of (TOASS), a total of 6.50 lakh line km was covered
onshore and offshore areas in 2016-17. by multi-sensor survey till the field season March,
Exploration conducted by various organisations 2016. The highlights of the resources assessed
during 2016-17 is highlighted below: are as below:

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Resources augmented by GSI during 2016-17 are 1) A total of 9.26 million tonnes of net reserves of
furnished below: iron ore with average grade of 50.89% Fe, 17.9% SiO2
4.6% Al2O3 at 45% Fe cut off and 4.588 million tonnes
i) A total resource of 23.87 million tonnes of net reserves of iron ore with average grade of 59.34%
high-grade iron ore (cut off 55% Fe) with average Fe, 8.85% SiO2, 4.36% Al2O3 at 55% Fe cut off were
Fe content of 61.99% has been estimated and in estimated in M.L.No.2563 of M/s Kanhaiyalal Dudheria,
addition to this, low-grade (45-55% Fe) resources Distt. Ballari, Karnataka.
of 5.0 million tonnes with average 50.04% Fe has 2) A total of 4.542 million tonnes net reserves of
also been estimated in Rengalaberha North-East iron ore with average grade of 49.52% Fe, 23.97% SiO2
block, Kendujhar distrct, Odisha. 2.87% Al2O3 at 45% Fe cut off and 1.141 million tonnes
net reserves of iron ore with average grade of 59.26%
ii) A total in situ resource of copper at 1.75
Fe, 4.30% SiO2, 2.44% Al2O3 at 55% Fe cut off were
million tonnes with 0.42% Cu by longitudinal estimated in M.L.No.2553 of Smt. Shanthalakshmi
vertical section method and 1.72 million tonnes Jayaram, Distt. Ballari, Karnataka.
with 0.42% Cu by cross section method with 0.20%
Cu cut off and 1.70 million tonnes with 0.42% Cu 3) A total of 63.331 million tonnes net reserves of
by cross-section method at 0.3% cut off has been iron ore with average grade of 58.84% Fe, 6.54% SiO2,
calculated in north of Golwa, Mahendragarh 4.25% Al2O3 and 48.102 million tonnes net reserves of
distrct, Haryana. iron ore with average grade of 62.75% Fe, 3.40% SiO2,
3.25% Al 2O3 at 55% Fe cut off were estimated at
iii) Exploration for multi-metal deposit was M.L.No.2148 of M/s Rangana Gaud, Distt. Ballari,
carried out in north of Tosham hill, Bhiwani Karnataka.
district, Haryana. The total resources have been
estimated to be 8.16 million tonnes tin at 0.21% 4) A total of 7.577 million tonnes net reserves of
Sn, 4.08 million tonnes tungsten at 0.29% W and iron ore with average grade of 52.19% Fe, 9.74% SiO2,
& 6.85% Al2O3 and 2.917 million tonnes net reserves of
18.10 million tonnes copper at 0.38% Cu. Cobalt,
iron ore with average grade of 59.18% Fe, 4.65% SiO2
which was not reported earlier in this mineral belt, and 4.65% Al2O3 at 55% Fe cut off were estimated at
has a resource of 0.23 million tonnes with an M.L.No.2245 of M/s Bharat Mines & Minerals Ltd, Distt.
average grade of 0.16%. Ballari, Karnataka.
iv) For assessment of cement-grade limestone 5) A total of 9.708 million tonnes net reserves of
resource in CAK block, Kurnool district, Andhra iron ore with average grade of 55.96% Fe, 13.99% SiO2,
Pradesh, a total of 1128.20 m of drilling was and 3.20% Al2O3 at 45% Fe cut off and 8.407 million
completed in 23 boreholes. As per the data tonnes net reserves of iron ore with average grade of
available, reserves for Chintalayapalle block have 60.96% Fe, 6.82% SiO2 & 3.44% Al2O3 at 55% Fe
been estimated at 33.14 million tonnes. Reserves cut off were estimated at M.L.No.995 of M/s Mysore
for the remaining two blocks are expected to be Minerals Ltd, Distt. Ballari, Karnataka.
calculated after receipt of chemical analysis data.
6) A total of 4.412 million tonnes of copper ore with
Multibeam Survey concurrently along with 0.84% Cu at 0.50% cut off (332 category) was estimated
sub-bottom (SBP) profiling and gravity surveys at Thanewasna Block, Distt. Chandrapur, Maharashtra.
w e r e c a r r i e d o u t w i t h i n E E Z , We s t o f The resources established during previous exploration
Lakshadweep in Arabian Sea. A total of 2020 line by different agencies is included in the present resource
km was achieved in an area of 12,500 sq km within estimation.
water depth from 2788 to 4249 m. Fe-Mn nodules/
encrustations of size varying from a few 7) A total of 622.994 million tonnes of limestone
millimeters to 8 cm were observed on the loose with 50.65% CaO, 1.68% MgO, 2.80% SiO2, 0.27% Al2O3,
sediment surface. 0.81% Fe2O3 & 41.27% LOI (332/333) was estimated at
Lumshorton Block, Distt. East Jaintia Hills, Meghalaya.
The planktonic foraminifera is the principle The resources established during previous exploration
biogenic component and its contribution to the by different agencies have been included in the present
total sediment is around 25%. resource estimation.

MECL 8) A total of 4.203 million tonnes net reserves of

iron ore with average grade of 57.28% Fe, 10.18% SiO2,
MECL in the current year under review reportedly 5.42% Al2O3 at 45% Fe cut off and 8.680 million tonnes
established a total of 3,184 million tonnes of mineral net reserves of iron ore with average grade of 60.36%
resources for various minerals. Mineral-wise details of Fe, 6.82% SiO 2 , 4.48% Al 2 O 3 at 55% Fe
resources estimated by MECL during 2016-17 are as cut off (121) were estimated at ML No-2550 of M/s S.
below: B. Minerals Ltd, Distt. Ballari, Karnataka.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

9) A total of 2.153 million tonnes net reserves of 16) A total of 116.831 million tonnes of limestone
iron ore with average grade of 54.37% Fe, 19.02% SiO2, with 45.48% CaO, 2.31% MgO, 10.13% SiO2, 2.09%
8.02% Al2O3 at 45% Fe cut off and 1.323 million tonnes Al2O3, 1.38% Fe2O3 and 37.91% LOI (334) was estimated
net reserves of iron ore with average grade of 59.57% at Ganchihai block, Distt. Satna, Madhya Pradesh.
Fe, 11.10% SiO 2 , 2.89% Al 2 O 3 at 55% Fe 17) A total of 0.896 million tonnes net reserves of
cut off (121) were estimated at ML No-2315 of M/s iron ore with average grade of 52.84% Fe, 19.55% SiO2
Trident Minerals, Distt. Ballari, Karnataka. and 3.57% Al2O3 at 45% Fe cut off (331/332) was
10) A total of 1.061 million tonnes of gold ore with estimated at M.L.No-2515 of M/s S.B. Minerals, Distt.
Ballari Karnataka.
2.39 gram/tonnes Au at 0.50 gram/tonnes cut off (332)
was estimated at Ajjanahalli East Block, Distt. 18) A total of 0.088 million tonnes net reserves (G-
Tumakuru, Karnataka. The resources established during 1/G-2) of iron ore with average grade of 36.01% Fe,
previous exploration by different agencies has been 38.48% SiO2, 1.41% Al2O3 at 35% Fe cut off was
included in the present resources estimation. estimated at M.L.No-2190 of M/s Rajapur, district Ballari
Karnataka.
11) A total of 0.869 million tonnes net reserves of
iron ore with average grade of 46.92% Fe, 11.63% SiO2, 19) A total of 297.317 million tonnes of limestone
9.72% Al2O3 at 45% Fe cut off (331/332) was estimated with 64.66% CaO, 1.78% MgO,10.82% SiO2, 2.19%
at ML No-2187 of Shri B.R. Sunderanath Singh, Distt. Al2O3, 1.45% Fe2O3 at 36.82% LOI was estimated at
Tumakuru, Karnataka. Jamodi Mahanna block, Distt. Satna, Madhya pradesh.

12) A total of 3.303 million tonnes net reserves with 20) A total of 0.598 million tonnes net reserves (G-
1/G-2) of iron ore with average grade of 54.28% Fe,
average grade of 46.43% Fe, 30.33% SiO2, 1.67% Al2O3
11.95% SiO2, 4.76% Al2O3 at 45% Fe cut off (331/332)
at 45% Fe cut off (331/332) of iron ore; 5.650 million
was estimated at M.L.No-2650 of M/s Karnataka Limpo
tonnes net reserves of limestone with average grade of
Cement Industry, Distt.Tumakuru, Karnataka.
37.35% CaO, 5.45% MgO, 13.05% SiO2 at 35% CaO cut
off; 8.994 million tonnes net reserves of dolomite with 21) A total of 84.939 million tonnes net reserves of
average grade of 15.18% MgO, 28.71% CaO at 15% iron ore with average grade of 53.46% Fe, 8.41% SiO2,
CaO cut off; and 4.803 million tonnes net resources of 8.68% Al2O3 at 45% Fe cut off and 18.168 million tonnes
manganese ore (Mn + MnO2) with average grade of net reserves of iron ore with average grade of 56.66%
15.43% Mn were estimated at M/s Thangavelu and Fe, 6.15% SiO2, 7.15% Al2O3 at 55% Fe cut-off (121)
Others, M.L.No-2585, Distt. Chitradurga, Karnataka. were estimated at M.L.No-2348 of M/s Deepchand
Kishanlal, Distt. Tumakuru, Karnataka.
13) A total of 1.385 million tonnes of gold ore with
2.70 g/tonnes Au at 0.50 g/tonne cut off (331) were 22) A total of 12.945 million tonnes net reserves of
iron ore with average grade of 54.04% Fe, 9.24% SiO2,
estimated at Kempinkote block, Distt. Dharmapuri, Tamil
7.96% Al2O3 at 45% Fe cut off and 8.782 million tonnes
Nadu. The resources established during previous
net reserves of iron ore with average grade of 56.47%
exploration by different agencies have been included
Fe, 7.15% SiO2, 6.79% Al2O3 at 55% Fe cut-off (121)
in the present resource estimation.
were estimated at M.L.No-2521 of M/s Mysore
14) A total of 8.645 million tonnes net reserves of Stoneware Pipe & Pottaries Ltd, Distt.Tumakuru,
iron ore (G1/G2) with average grade of 37.19% Fe, Karnataka.
19.52% SiO2, 1.91% Al2O3 at 35% Fe cut off (331/332) 23) A total of 198.625 million tonnes of limestone
and 0.931 million tonnes resources of manganese ore with 44.61% CaO, 2.35% MgO, 10.52% SiO2, 1.64%
with average grade of 12.71% Mn & 27.39% Fe at 10% Al2O3, 1.32% Fe2O3 & 37.41% LOI (334) were estimated
Mn cut off were estimated at Shri Allum at Naubasta Kolard block, Distt. Satna, Madhya
Veerabhadrappa, M.L.No-2436, Distt. Chitradurga, Pradesh.
Karnataka.
24) A total of 0.699 million tonnes of molybdenum
15) A total of 1.765 million tonnes net reserves of ore with 0.031% Mo cut-off (333) was estimated at
iron ore with average grade of 49.02% Fe, 7.95% SiO2, Mannadipatti block, district Dharmapuri, Tamil Nadu.
2.10% Al2O3 and 3.70% Mn at 45% Fe cut off (331/332) The resources established during previous exploration
was estimated at M.L.No-2229 of M/s Shri G by different agencies have been included within the
Rajashekhar, Distt. Tumakuru, Karnataka. present resource estimation.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Oil and Natural Gas Corporation Ltd enhanced the Company's R&R position to 404.4
(ONGC) million tonnes, having grade of 6.7% zinc, 2.2% lead
and 79 g/t silver after depletion of 11.9 million tonnes.
Exploration efforts of ONGC during 2016-17 The total R&R metal content is 27.30 million tonnes
resulted in 23 oil and gas discoveries (13 in onshore of zinc metal, 8.80 million tonnes of lead metal and 32
and 10 in offshore areas) in domestic fields (operated kt silver metal. The current R&R continues to support
by ONGC). Out of these, 12 discoveries were made in a mining life of 25 plus years.
the new prospects, whereas 11 were new pool
discoveries. The ultimate reserve (2P) accretion of oil RSMML estimated a total resources of 45.96
and oil equivalent gas (O+ OEG) in 2016-17 in domestic million tonnes of rock phosphate with reserves
assets of ONGC was 64.32 million tonnes. estimated to be about 25.32 million tonnes.
NMDC estimated a total of 43.01 million tonnes of
Oil India Ltd (OIL)
iron ore reserves in Ballari Distt. Karnataka. Out of
Oil India Ltd has made ten (10) oil & gas which 38.91 million tonnes were under 111 category
discoveries in the upper Assam basin during the year and 4.10 million tonnes under 211 category.
2016-17. The discovery of oil & gas in a well has opened
up new avenue for exploration and exploitation of oil & Reliance Industries Ltd (RIL)
gas within the respective area of the well and the
During the year 2016-17, RIL commenced
adjoining areas.
production from its Coal-Bed Methane block (CBM), at
Sohagpur (West). The production from RIL's Sohagpur
Indian Bureau of Mines (IBM)
CBM fields is expected to gradually ramp-up over the
next 15-18 months. Operationally, financial year 2016-
IBM as a facilitator to the Mineral Industry 17 continued to witness lower upstream production and
(a) provided technical consultancy services in weak domestic gas price realisations. The domestic oil
feasibility study, environmental impact assessment, and gas production (RIL share) was down 23% to 95
environmental management plan, etc.; (b) carried out billion cubic feet equivalent.
mining research on need-based aspects of mining; (c)
conducted mineral beneficiation studies, including
mineralogical testing and chemical analysis; and (d) RESEARCH & DEVELOPMENT
prepared mineral maps. Besides, preparation of T h e S c i e n c e a n d Te c h n o l o g y ( S & T )
National Inventory of mineral resources is IBM's programmes of the Ministry of Mines, Government
designated responsibility. The National Mineral of India, cover the disciplines of Geology,
Inventory (NMI) is brought out by IBM on a Exploration, Mining, Beneficiation and Mineral
quinquennial basis. UNFC system has been adopted Processing, Rock Mechanics, Ground Control and
by IBM for resource classification. Updating of NMI Non-ferrous Metallurgy and Environmental issues
of mineral resources in respect of 71 minerals based on related to Mining and Metallurgy. Standing
UNFC system, as on 1.4.2015, has been completed. Scientific Advisory Group (SSAG) in its 47 th
meeting held on 23.08.2016 at Shastri Bhawan, New
During 2016-17, up to October, 2016, IBM prepared Delhi considered and recommended Grant-in-Aid
79 multi-mineral leasehold maps with forest overlays under S&T programme of the Ministry of Mines.
on 1:50000 scale in respect of the various States. The 47 th SSAG has approved the projects. During
During 2016-17, IBM conducted 23 ore dressing 2016-17, Sixteenth meeting of Project Evaluation
investigations, chemical analysis in respect of 18,239 and Review Committee (PERC) was held on
samples and 1332 mineralogical examination. 06.09.2017 at JNARDDC, Nagpur. As per minutes
of the said meeting, a total of 116 project
Other Agencies proposals were received for the year 2017-18.
GMDC estimated lignite reserves under category As per information of R&D work carried out
111 & 331 and balance reserves as 33.90 million tonnes, by various mining & mineral based industries and
40.00 million tonnes and 20.65 million tonnes, research organisations relating to mineral/metal,
respectively in Surat district. details of some R&D work conducted or completed
during 2016-17 are furnished below:
Exploration by HZL during the year 2016-17 was
1. Manganese Ore India Ltd
approximately 74,800 m of surface drilling completed
across all mine sites. This drilling added gross Reserves R&D projects carried out by MOIL are
& Resources (R&R) of 26.4 million tonnes, which serialised below:

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

(i) Mine Environment ash on experimental basis. Around 400 cu m (m³)

Ventilation reorganisation studies for deeper of bottom ash have been filled in underground by
levels have been conducted at Gumgaon and hydraulic stowing. Further trials are to continue
Chikla Mine by Indian Institute of Technology for confirmation of the outcome. (b) Mill tailings
(IIT), Kharagpur. Recommendations have already of Malanjkhand Copper Project of Hindustan
been implemented at Gumgaon and the Copper Limited have been utilised for hydraulic
implementation is in progress at Chikla Mine. stowing operation at Ukwa Mine. Mill tailings
have been used to replace sand by in-house R&D
(ii) Mines Safety: Mining Subsidence—In-house studies.
scientific 3-D analysis of subsidence parameter
has been carried out for forest cover of Ukwa Pre-cast RCC Columns & Sections: In-house
Mine. The monitoring stations with 5 (five) developed pre-cast RCC columns and sections
subsidence monitoring pillars have been properly have been rapidly erected in drift development
erected in line with strike and dip directions of which improved the safety levels of drift
the ore body on the surface and quarterly development in underground besides increasing
measurement is being done by total station and efficiency in concreting operations.
GPS to monitor the 3-D coordinates. 2. Hindustan Zinc Ltd
(iii) Mineral Conservation Some of the R&D projects or innovation in
R&D studies have also been conducted at Chikla HZL are elucidated below:
Mine by National Institute of Rock Mechanics ( i ) Wa s t e M a n a g e m e n t w i t h ‘ P a s t e F i l l ’
(NIRM), KGF. Technology:
(iv) Mining Technology Paste fill plants commissioned at the
(a) Method of Stoping—R&D project for underground operations of Rampura Agucha Mine
mechanised stoping operation has been prepared and Sindesar Khurd Mine have ensured fast filling
by IIT (Formerly Indian School of Mines), of voids with practically no bleeding. It has
Dhanbad and implemented for mechanised stoping offered other advantages like minimum water
operations and support systems at Ukwa Mine. consumption and drainage with lesser fill and wall
This helps in improvement in production, safety dilution in stopes, better recovery of intervening
and productivity by mechanisation of stoping pillars along with better regional stability and
operation. surface integrity. The process utilises tailings, a
waste of milling operations, which enables freeing
(b) Alternative to Cartage Explosives— up precious land requirements for long term
To reduce the ground vibrations, fly rock and tailing storage.
noise as also to increase operational efficiency,
Site Mix Emulsion (SME) Explosives have been (ii) Single Shot Stope Blasting
used with shock tubes at Dongri Buzurg opencast Underground conditions at Rampura Agucha
mine on experimental basis. The results are Mine are under high stress environment which
encouraging and it is now planned to switch over poses challenge for safe and economical extraction
to the new blasting method. of shear hosted high-grade reserve of zinc and
(v) Collaborative Work with Academic and lead. The drill design was changed for improved
Research Institutions ore yield by inducting solo drill rigs and emulsion
charging for executing single shot stope blast in
(a) MOIL is carrying out joint
place of time consuming conventional slot
collaborative R&D project with VNIT, Nagpur for
alternative to sand for fill material. blasting in long hole open stopes. Single shot
stope blasting ensured enhanced production rates
Bench-scale hydraulic stowing plant has in shear hosted mineralisation with a void ratio as
been installed at Department of Mining low as 11% and resource recovery over 95% in
Engineering, VNIT, Nagpur. This project has single choked stope blast. This not only
opened up new avenue for paste fill engineering. eliminated rework and ground squeezing issues
Further studies for paste fill are in progress. that are encountered after blasting but it also
(b) MOIL is also into collaborative reduced the cycle time from 15-17 days to just 1
research for slope stabilisation with NIT, Rourkela day.
for Slope Monitoring Instruments (under S&T
Scheme of Ministry of Mines). (iii) Zinc Fumer Process making the smelting
process sustainable:
(vi) Substitute of Fill Material :- (a) The R&D wing
has conducted the study for filling of The hazardous wastes usually generated
underground sections at Ukwa Mine by bottom during hydrometallurgical zinc smelting process

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

are generally neutralised and stored in secured (i) Recovery of copper through leaching from ESP
landfills, which are mostly around 4 acres of land dust of flash smelter has been taken up.
per smelter per year. Zinc fuming technology
integrated with the existing leaching process helps (ii) Recovery of nickel metal from nickel waste
in converting hazardous wastes into commercially produced at customer refinery.
usable slag thereby eliminating the need for land (iii) Malanjkhand Concentrator plant that uses
for storage of wastes. The process will ensure pine oil (a natural product extracted from pine
improved recovery of zinc and along with it other trees) as a frother in Concentrator plant process,
metals like lead, silver and copper from hydro route due to inconsistency in its availability and quality
which hitherto were relegated as wastes and
has been looking out for substitutes. The
dumped into secured landfills.
Company has taken R&D initiatives to find a
(iv) Enhancing Energy Efficiency in the Jumbo suitable substitute and found one of the chemical
Casting Process:
product suitable for the application which also is
In an effort to optimise energy consumption, said to be cost-effective. Proposal to replace pine
the LPG burners at Pantnagar Plant are being oil in a phased manner is afoot.
replaced with electric top heaters, which is adding
to the energy efficiency of Jumbo Casting process. (iv) Combination of both sized (80 mm and 90 mm)
Wi t h f o u r b u r n e r s m o d i f i e d , t h e s p e c i f i c hi-chrome grinding media was studied and
consumption has dropped from 10 kg/MT to 6 kg/ specific consumption of grinding media was
MT. The conventional electrical LPG vaporisers brought down to 0.78 kg/MT of milling. Now all
have been replaced with heater-less vaporisers, the four ball mills are being run with the combined
thus eliminating the usage of electricity for the grinding media in 1:1 ratio.
purpose. Also, a direct pipeline connection
between GAIL depot to Chanderiya plant is being 4. National Mineral Development
installed to reduce the cost of procurement and Corporation
also to lessen the environmental footprint. Some of the R&D projects undertaken at
(v) Research and Development Improving NMDC are furnished below:
Yield (i) Improve the Screening Efficiency of Iron Ore
To i m p r o v e s i l v e r r e c o v e r y f r o m o r e , over Previous Year
experiments related to kinetic study were
The objective of this project is performance
conducted for Kayad ore which necessitated
change in dosing pattern of chemicals for evaluation of the secondary screens (fines
improving silver recovery. After successful screening) in the production units and evolving
laboratory and plant-scale trials, silver recovery remedial measures to improve the screening
improved from 44% to 51%, while consumption of efficiency. The results of Plant trials with novel
hazardous chemicals were reduced by one-third. design screen cloth on existing screens at NMDC
plants (SP -2, Kirandul) are as under.
(vi) Exploration Techniques for Mining at
Depths (a) The average screening efficiency of the screen
fitted with novel design screen cloth are 7.79% to
Technologies like motorised directional
39.70%, which is higher than the screen fitted with
drilling to ensure that deep holes of more than 1
km below surface hit the targeted mineralised woven wire screen cloth.
zones and down hole electrical geophysical (b) There has been an increase of 21,958 tonnes
techniques to locate potential off-hole ore zones in the production from the line with new screen
are now being used. The HZL has implemented cloth (from 15.03.2017 to 25.03.2017) as compared
new software, such as, Leapfrog to provide high to the line with conventional screen cloth and the
quality 3D visualisation of integrated geological, average feed rate for the line with new screen cloth
geochemical and geophysical exploration data and is about 140 TPH which is much more than the
to efficiently manage its drilling geochemical line with woven wire screen. Till 8 th April, 2017
database. All these have resulted in enhanced the tonnage handled has been 1.73 lakh tonnes,
reserve and resource at lower cost.
which in comparison with the average tonnage
3. Hindustan Copper Ltd handled by conventional screen (with multiple
Some of the R&D projects undertaken at HCL times welding repair work), i.e., 80000 to 85000
are seralised below: tonnes is much higher.
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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

(c)The screen fitted with novel design screen cloth 5. JNARDDC

can be run with higher feed rate than the screen Some of the R&D projects carried out or
fitted with conventional screen cloth and still completed by JNARDDC are detailed below:
attain comparatively better screen efficiency. (i) Development of a Real Time Instrument/
(d) It is also observed that the new screen cloth System to Measure Bath Ratio, Alumina
Concentration, Bath Temperature and Super Heat
apertures are not clogging/blinding even while
of the Aluminium Electrolysis Bath
screening 8% moisture ore at around 400 TPH to
This project has been completed successfully
secondary screen.
which has resulted in development of a real time
(ii) Development of an Ecofriendly Tailing instrument which is the combination of
Disposal System by Filtration of Iron Ore thermocouple arrangement, data acquisition
Ta i l i n g s a n d St u d y o f i s s u e s r e l a t e d t o system and software for analysing the data to
Transportation and Storage (Phase - 4) estimate/calculate the bath parameters, such as,
bath ratio, alumina concentration, bath
The project was undertaken in 2013-14 and temperature and superheat of the aluminium
envisaged to be completed in 4 phases. The electrolysis bath. Validation trials were conducted
objective of the phases are (a) To evaluate the at Nalco Angul smelter and the instrument was
flow properties and paste rheology of the successfully demonstrated by measuring about 25
engineered tailing samples; (b) Address issues readings. Bath parameter values obtained using
real time instrument and using conventional
related to the storage and transportation of tailing
existing methods were in confirmity. Real time
samples; (c)To develop a process which can instrument is bound to replace the conventional
recover maximum water from the iron ore tailings existing time consuming laboratory method as it
and enable disposal of tailings in solid or semi- facilitates taking instantaneous corrective
solid form which would minimise the measures for controlling the aluminium electrolysis
environmental hazard and also make iron ore cell.
mining sustainable. (ii) Optimisation of Parameters for Ultrasound
Precipitation of Aluminate Liquor with Emphasis
The results of the phases are -
on Production of Special Fine Hydrate and Liquor
(a) The filtered tailings can be transported by Productivity
conveyor belt and stacked up to moisture content The project aimed at application of ultrasound
of 20.2%, 22.6% and 26.7%, respectively for for production of special fine hydrate and
samples 1, 2 & 3. improved yield of product hydrate in precipitation
step of Bayer's process has been completed
(b) This moisture is about 3% more than the
r e c e n t l y. T h e 2 2 k H z u l t r a s o u n d w i t h 8 0 %
expected filter cake moisture of all three tailing
amplitude is required for 15 minutes duration for
samples. fine seed followed by conventional precipitation
(c) The yield stress of the tailing samples 1, 2 and for 8 hours to obtain a special fine hydrate of d50
3 at 68%, 59% and 58% solid concentration by of 10.5 microns with liquor productivity of 85.43
weight are 29 Pa, 70 Pa and 3.7 Pa, respectively. gpl (against 84.59 gpl without ultrasound).
Encouraging results were obtained when
(d) The yield stress values indicate that the paste ultrasound is used with conventional coarse seed
tailing can be transported by centrifugal pumps giving more fines than the conventional
from deep bed thickener to paste disposal precipitation without ultrasound.
location. (iii) Synergistic Utilisation of Aluminium
(e) The tailing samples are amenable for paste I n d u s t r i a l Wa s t e s f o r D e v e l o p m e n t o f
Geopolymeric Building Materials
thickening as well as filtration. It is possible to
get a paste with 56-72% solids and yield stress in This project primarily aims at investigating
the range of 75-300 Pa. The filtration tests utilisation of synergy among various rejects of
revealed that it is possible to produce a filter cake aluminium and other industries for development
of green building material based on geopolymer
with moisture content ranging from 14 to 24%.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

process. The preliminary studies identified 75 mix impurity control/removal from spent liquor and
designs comprising rejects of aluminium, steel and s e t t l e r o v e r f l o w. A t r i a l e x p e r i m e n t w a s
biomass industrial origin. Geopolymer bricks conducted using surfactant (reagent) to remove
prepared with aluminium industry rejects and impurities from spent liquor. The results obtained
biomass of combination confirm IS-3495 (part-I): were encouraging.
1976. Blocks prepared with single and multi (vii) Mechanical Activation of Bauxite
components in the mix design reported crushing Mechanical activation of bauxite can alter the
strength in the range 10–25 N/mm2 for hard bricks process condition used in various steps in Bayer's
and 5 to 8.5 N/mm 2 for light weight foamed process. This project aims to investigate the effect
geopolymer (LWFGEOP). Setting up of mini-pilot of mechanical activation of bauxite on desilication,
plant is in progress for estimating the economics. digestion and setting process steps. It aims to
(iv) Development of Hard and High Temperature establish new process parameters to achieve
Refractory Material/Aggregate from Saprolite maximum extraction of alumina, minimise alumina
and soda losses in red mud and to obtain an
Objective of this project is to develop acceptable silica level in the liquor. Presently,
refractory material/aggregate from saprolite which simultaneous milling and leaching studies (on low
is waste, unutilised material generated during and high silica bauxites) in attrition mill are in
bauxite mining. De-ironing and leaching trials were progress.
carried out for removal of iron oxide from raw
saprolite. Sintering test with different additives IMPORTANT ORE DRESSING
and parameters, such as, temperature, time and INVESTIGATIONS
grain size was carried out to obtain high quality
refractory product. Characterisation and
R & D (Ore Preparation & Process)
properties evaluation of sintered granules were 1.1 Copper Ore:
also completed. Results of tests conducted to
Bench-scale Beneficiation Studies on a Copper Ore
check suitability of sintered aggregates for
Sample from West of Nanagwas, Sikar Distt.
preparing castables would determine the
Rajasthan: A copper ore sample from West of
extensivity of its use in different industries. Nanagwas (NW-1&2), District Sikar, Rajasthan was
(v) Effect of Modified Seed properties in received at Regional Mineral Processing Laboratory,
Precipitation of Aluminium Hydroxide from Indian Bureau of Mines, Ajmer for bench-scale
Bayer Liquor beneficiation studies. The aim of the bench-scale
beneficiation study was to evolve a process flow sheet
The project aims at exploring the possibility
that could produce copper concentrate or more than
of using seed aluminium hydroxide by altering/
18% Cu with maximum recovery. The as received sample
modifying/changing its surface properties to assayed 0.36% Cu, 4.92% Fe(T), 38.27% SiO2, 8.77%
enhance the liquor productivity/yield in Al2O3, 47.28% Al, 0.11% S(T), 0.40% TiO2 and 0.06%
precipitation process. This may lead to new Sn. The flow sheet evolved comprised grinding to 83%
process and product development in precipitation. and passing through 200 mesh followed by flotation
P r e s e n t l y, t h e r m a l a c t i v a t i o n o f f i n e a n d with three cleanings. The copper concentrate thus
conventional seed and their characterisation is in produced assayed 40.90% Cu, 13.27% acid insoluble
progress. with 84.64% copper recovery (wt.% yield 0.74). On
(vi) Studies on Trace Liquor Impurities, its further two cleanings produced a concentrate assaying
30.31% Cu and 20.08% acid insoluble with 88.44%
Behaviour and Control in Bayer's Process with
copper recovery (wt% yield 1.04). The copper
respect to Reduction in Product Hydrate
concentrate did meet all the specifications required for
Liquor and solid samples (bauxite, mud, smelter.
hydrate and alumina) collected from refinery were Bench-scale Beneficiation Studies on Gold-bearing
duly prepared and thoroughly characterised. The Copper Ore Sample from Khera Main Block, Alwar
spent liquor and green liquor was analysed for Distt, Rajasthan: A gold-bearing copper ore sample
trace potassium and zinc concentration. Literature from Khera main block, Distt-Alwar, Rajasthan collected
search is on to finalise the suitable plan for as a part of G-2 exploration was received at Regional

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Mineral Processing Laboratory, IBM, Ajmer for bench- 1.4 Iron Ore
scale beneficiation study. The objective of the Bench-scale Beneficiation Studies on Bulk Sample
investigation was to evolve a process flow sheet for of Iron Ore from Nayapalli, Bhubaneshwar District,
producing a concentrate assaying more than 18% Cu Odisha: A bulk sample of iron ore from Nayapalli,
with maximum possible recovery. The as received sample Bhubaneshwar Distt, Odisha was received at the
that assayed 0.59% Cu, 1.43 ppm Au (by fire assay) Modern Mineral Processing Laboratory and Pilot Plant,
along with 3.94 ppm Ag, 66.83% SiO2, 9.63% Al2O3, 1.48% Indian Bureau of Mines Nagpur, for bench-scale
S(T), 4.39% Fe(T), 4.62% CaO, 4.35% MgO, 0.37% Na2O, beneficiation studies. The objective of the study was
3.15% K2O, 71.62 ppm-Zn, 20.75 ppm-Pb, 308 ppm-As, to develop a suitable beneficiation process flow sheet
100 ppm-Bi, 32.56 ppm-Co with 77.46% Acid insoluble, to produce an iron ore concentrate suitable for industrial
after adoption of flotation process, produced a use. The as received iron ore sample assayed 60.26%
composite concentrate that assayed 22.59% Cu with a Fe, 4.23% Al2O3, 5.00% SiO2, 0.141% Mn, 0.099% TiO2,
recovery distribution of 74.8% (wt% yield is 2.03). 0.051 % CaO, 0.025 % MgO, 0.069% Na2O, 0.048% P
and 3.54 % LOI. Two process routes that employed
1.2 Dolomite different gravity separation techniques, such as,
Beneficiation Studies on a Siliceous Dolomite Sample Classification, Tabling and Multi-gravity Separation
from Kadapa Distt, Andhra Pradesh : A dolomite were attempted.
sample was received for bench-scale beneficiation
studies at Regional Ore Dressing Laboratory, Indian i) The as received sample that firstly was subjected to
Bureau of Mines, Bengaluru. The objective of the screening, classification, tabling and multi gravity
investigation was to develop a process flow sheet with
separation yielded a composite Fe concentrate assaying
silica content less than 5.0% .The as received sample
63.45% Fe, 2.75% Al2O3, 3.05% SiO2 and 2.56 % LOI
that assayed 32.41% CaO, 12.02% MgO, 11.76% SiO2,
with 60.2% Fe recovery (wt% yield of 57.2).
0.74% Fe2O3, 1.19% Al2O3, 0.07% P, 39.49% LOI after
being subjected to flotation method produced a ii) In the second process route the as received sample
concentrate that assayed 36.24% CaO, 12.41% MgO, was subjected to stage grinding, classification
4.50% SiO2 ,44.38% LOI with about 50% recovery of followed by tabling and multi-gravity separation. The
CaO & MgO (wt % yield 42.9). The concentrate yield of composite concentrate thus produced
obtained is suitable for Steel Industry. assayed 64.62 % Fe, 2.26 % Al2O3, 2.43 % SiO2, and
2.33 % LOI with 53.8% Fe recovery (wt% yield of
1.3 Glauconite 50.5).
Bench-scale Beneficiation Studies on a Very Low- Both the concentrates were found suitable for
grade Glauconite-bearing Drill-Core Sample (G2- industrial use.
stage) in Barwadih and Kurchha Area, Sonbhadra
District, Uttar Pradesh: A very low-grade glauconite- 1.5 Limestone (Core)
bearing drill-core sample from Distt Sonbhadra, Uttar Beneficiation Studies on a Siliceous Limestone (Core)
Pradesh was received for bench-scale beneficiation Sample from Muddapur mines, Bagalkot Distt,
studies at the Modern Mineral Processing Laboratory, Karnataka: A Limestone (core) sample was received
Indian Bureau of Mines, Nagpur. The objective of the from Muddapur Mines, Bagalkot, Karnataka for
study was to assess the amenability to produce a beneficiation studies at Regional Ore Dressing
glauconite rich concentrate that can be used as a raw Laboratory, Indian Bureau of Mines, Bengaluru. The
material for manufacture of fertilizer. The as received objective of the investigation was to reduce silica to
sample assayed 3.82% K2O (T), 0.29% Na2O, 10.18% less than 12 % and to produce a concentrate suitable
Al2O3, 3.55% Fe2O3, 50.68% SiO2(T), 10.60% CaO, 5.58% for cement manufacturing. The as received sample that
MgO, 0.32% TiO2 and 14.33% LOI (Glauconite 5-10%). assayed 33.68 % CaO, 22.75 % SiO2 (T), 3.06 % MgO,
Beneficiation test works employing attrition scrubbing
3.13 % Fe2O3, 4.25% Al2O3, 0.48 % K2O, 0.08% Na2O,
& screening yielded a product that assayed 5.79% K2O
0.005% P, traces of S and 30.20% LOI after being
with 26.1% K2O recovery (wt% yield: 17.1). Alternately,
subjected to flotation test with three cleanings
by adopting roll crushing followed by wet stage
grinding of (-)10 mesh sample and wet screening of the produced a concentrate that assayed 49.15 % CaO, 5.32
ground product, a yield that assayed 4.96% K2O with % SiO2 (T) with 82.4% CaO recovery (wt % yield 58.20).
63.1% K2O recovery (wt%. yield: 48.8) (Glauconite 25- The flotation with two cleanings assayed 45.64 % CaO,
30% approx.) was obtained. The beneficiation test 9.1 % SiO2 (T) with 91.3 % CaO recovery (wt % yield
conditions , therefore, successfully produced K2O of 69.4). The concentrate obtained was found suitable
enriched product with a reasonably good recovery. for cement manufacturing.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

1.6 Phosphate: By adopting Froth flotation of graphite flotation

Pilot-scale Beneficiation Studies on a Low-grade tails, a calcite concentrate assaying 43.23% CaO, 3.7%
Phosphate Sample from Hirapur, Sagar Distt, M.P. : Al2O3, 15.02% SiO2, 0.048% P2O5 with 31.4% CaO
A low-grade phosphate sample was received for pilot- recovery (wt.%. yield : 12.6) was produced. The calcite
scale beneficiation studies at Regional Mineral concentrate obtained may find application in Cement
Processing Laboratory, IBM, Bengaluru. The objectives Industry.
of pilot plant studies were: i) to confirm/verify the II. The as received graphite sample that assayed
process scheme developed in the laboratory to produce rare earth elements at 16.6 ppm La, 15.9 ppm Ce, 9.91
a phosphate concentrate suitable for phosphoric acid ppm Nd, 4.5 ppm Gd, 2.9 ppm Yb, and 27 ppm Y after
manufacturing on continuous basis simulating Gravity, Magnetic and Electrostatic separation
produced a pre-concentrate assaying 0.88% La with
commercial plant configuration and conditions and ii)
69.1% La recovery, 0.89% Ce with 73% Ce recovery,
to determine and obtain process technical data required
0.65% Nd with 85.3% Nd recovery, 0.18% Gd with 52%
for preparation of techno-economic feasibility report
Gd recovery, 0.15% Yb with 66.2% Yb recovery and
required for commercialisation of the project. The sample
1.35% Y with 64.9% Y recovery (wt% yield: 0.13).
assayed 20.26% P2O5, 38.13% SiO2(T), 6.0% reactive
Thus recovery of graphite and recovery of rare
silica, 24.55% CaO, 0.55 % MgO, 3.17% Al2O3, 5.55%
earth minerals and calcite as by-products from graphite
Fe2O3, 0.04% Na2O, 0.36% F.C, 0.70% S(T) , 0.06% S(py), (BLK-01) surface sample is a step towards achieving
1.36 % fluorine, 0.09% Cl, 1.73% SO3 and 1.70 % LOI. zero waste processing.
The beneficiation scheme adopted comprised Grinding
followed by Flotation and a phosphate concentrates 1.2 Copper Ore
assaying 35.55% P2O5, 8.73% SiO2(T), 3.52% reactive
silica, 1.11% Al2O3, 1.4% Fe2O3, 44.46% CaO, 3.27% F, Bench-scale Beneficiation Studies for Calcite By-
0.53% SO3, 0.1% Cl and 0.36% MgO with 76.4% P2O5 product Recovery from Copper Tails Obtained in Lab
recovery (wt% yield 43.3) was obtained. The Tests on Copper-bearing Ore from west of Nanagwas,
concentrate produced did meet the specifications District Sikar, Rajasthan
required for phosphoric acid manufacturing. A copper bearing sample from west of Nanagwas
The fresh water requirement after recovery of water (NW-1&2), District Sikar (Rajasthan), was received at
found to be 2.64 m3per tonne of fresh ore. Regional Mineral Processing Laboratory, Indian Bureau
• The pressure filtration productivity of phosphate was of Mines, Ajmer for bench-scale beneficiation studies.
found to be 0.393 tonnes/sq.meter-hr. The aim of the bench-scale beneficiation study was to
• The unit thickener area required for concentrate was evolve a process flow sheet that could produce a copper
0.108 sq.m/tonnes of dry solids-24 hr.
concentrate of more than 18% Cu with maximum
• The thickener area required for combined reject was
0.067 sq.m/tonnes of dry solids-24 hr. recovery. The as received sample assayed 0.36% Cu,
• Bond’s work index value of the sample was 7.04 kWh/ 4.92% Fe(T), 38.27% SiO2, 8.77% Al2O3, 47.28% AI,
short tonne. 19.65% CaO, 4.31% MgO, 0.11% S(T), 0.40% TiO2, 1.11%
Na2O, 2.37% K2O, 0.20% Mn, 0.06% Sn,72 ppm Pb, 140
ppm Zn, 34 ppm Co, 50 ppm Ni, 3.15 ppm Ag, 124 ppm Bi
R&D FOR RECOVERY and17.34% LOI. It was observed from the chemical
BY-PRODUCT RECOVERY analysis of the as received sample that apart from copper
1.1 Graphite as valuable mineral, about 40-45% calcite was also
Bench-scale beneficiation studies was conducted on a present, which represented CaO content of 19.65% and
low-grade Graphite sample from Betul, Madhya Pradesh in terms of CaCO3 about 35.06%. The Froth flotation
for the recovery of Rare Earths and Calcite. process was adopted for calcite recovery tests. The
In the low-grade graphite bulk (BLK-01) sample sample on chemical analysis assayed 20.29 % CaO,
received at the Modern Mineral Processing Laboratory 38.29% SiO2, 5.10% Fe(T), 8.29% Al2O3, 4.14% MgO,
& Pilot Plant, Indian Bureau of Mines, Nagpur for 0.43% TiO2, 1.74% Na2O, 2.02% K2O,0.03% Cu, 3.49%
recovery of graphite, presence of calcite in the sample Fe2O3, 3.72% FeO and 15.81% LOI. After subjecting to
was observed. A prospect of upgrading and recovering flotation test and two stages of cleaning a calcite
it as by-product from graphite tails was attempted. concentrate assaying 47.79% CaO, 6.69% SiO2 with
80.07% CaO recovery (wt% yield 34) was produced.
I. The analysis of graphite tails assayed 7.84% FC,
This calcite concentrate is suitable for Cement Industry
2.53% VM, 0.59% moisture, 56.19% ash and 32.85%
acid soluble. The as received sample assayed 17.56% and can also be used as sweetener to blend with the
CaO, 1.09% MgO, 5.49% Al2O3 , 42.23% SiO2 and 3.59% lower grade limestone used in some of the cement
Fe2O3. plants.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

UTILISATION OF WASTES FOREIGN TRADE

The year 2016-17 witnessed a turnaround in India's
1.1 Iron Ore Dump external sector with export growth becoming positive
Recovery of Iron Values from Low-Grade Dump after two years of continuous negative growth, the
Sample of Thimmappanagudi Iron Ore Mine, Sandur import growth, however, remained negative, though
Taluk, Ballari District, Karnataka marginally, for the fourth year in succession. The year
A low-grade iron ore dump sample of also witnessed major policy changes like rationalisation
Thimmappanagudi mine was received for beneficiation of export promotion schemes, a new push towards
studies at Regional Ore Dressing Laboratory, Indian building export infrastructure and trade facilitation
Bureau of Mines, Bengaluru. The objectives of the test measures; further opening up of foreign investment;
work were (a) Characterisation studies of the as received and above all finalising the blue print of the Goods and
sample and (b) to develop a process scheme to produce Services Tax (GST) that got implemented from 1st July
a concentrate suitable for Steel Industries. 2017.
The as received sample that assayed 36.43% Fe(T), India's ranking amongst the leading exporters and
0.12% FeO, 26.0 % SiO2, 11.78 % Al2O3, 0.40 % CaO, 0.1 importers improved from 30 and 23 , respectively, in
% MgO, 0.05 % Na2O, 0.11 % K2O, 0.24 % Mn, 0.04 % P, 2004 to 19 and 13 in 2015 as per the WTO International
5.78% LOI and trace amounts of sulphur after being Trade Statistics 2016.
subjected to processes that comprised crushing
followed by grinding, classification followed by gravity India's exports turned positive at 5.2% in 2016-17
and magnetic separation yielded a gravity concentrate after an interlude of two years. This along with a
that assayed 65.31% Fe (T), 2.54 % SiO2, 2.05 % Al2O marginal decline in imports by 1% resulted in narrowing
with 1.79% LOI weight percent yield of 20.4% and Fe down of trade deficit to US $ 112.4 billion (5% of GDP)
(T) recovery 37.2%.The combined concentrate (Gravity in 2016-17 as compared to US $ 130.1 billion (6.2% GDP)
& Magnetic) assayed 60.31 %Fe (T), 6.02 % SiO2, 4.24 in 2015-16.
% Al2O with 3.01% LOI weight percent yield of 31.8% After two years of negative growth, merchandise
and Fe (T) recovery 53.5%. exports (Balance of Payments basis) grew by 5.2% in
Adopting of such simple processes, could enable 2016-17 with positive growth in both Petroleum Oil
and Lubricants (POL) and non-POL exports. India's
upgrading of waste dump from Thimmappanagudi Iron
merchandise exports (on customs basis) reached the
Ore mine for use in Steel Industry.
highest level of US $ 314.4 billion in 2013-14. In
1.2 Iron Ore (Waste Dump) tandem with the global trend of decline in export
Beneficiation Studies on an Iron Ore Sample (Waste growth, India's export growth also declined during
Dump) from Subbarayanahalli Iron ore Mines, Sandur 2014-15 and 2015-16, by 1.3% and 15.5%,
taluk, Ballari District, Karnataka ,respectively. However, it registered positive growth
A waste dump iron ore sample from of 5.3% during 2016-17, resulting in exports reaching
Subbrayanahalli iron ore mine was received for US $ 276.3 billion. It was due to the positive growth
beneficiation studies at Regional Mineral Processing of both POL and non-POL exports at 3.7% and 5.6%,
Laboratory, Indian Bureau of Mines, Bengaluru. The respectively. With increase in crude oil prices, POL
exports growth at 25.8% was more than double from
objective of the test work was to develop a process
that of non-POL exports growth of 10% reported in
scheme for upgradation of the iron ore sample to
the second half of 2016-17.
produce a concentrate containing the grade 62% Fe(T).
The as received sample assayed 40.50% Fe (T), 0.21% India's merchandise imports (on customs basis)
FeO, 16.29% SiO2, 14.67% Al2O3, 1.48% TiO2, 0.35% CaO, also fell from a high level of US $ 490.7 billion in
0.02% MgO, 0.02% Na2O, 0.01% K2O, 0.09% Mn, 0.07% 2012-13 to US $ 381.0 billion in 2015-16 and registered
P, 8.87% LOI and trace amounts of sulphur. The final a marginal increase of 0.9% to US $ 384.3 billion in
process flow sheet adopted comprised grinding 2016-17 due to rise in POL imports and also marginal
followed by gravity separation. The gravity concentrate increase in non-POL and non-gold and silver
thus produced assayed 63.50 % Fe (T), 3.56 % SiO2 , imports.
1.86 % Al2O3 with weight percent yield of 26.1% and
Exports
Fe(T) recovery 40.6 %.
The total exports (including re-exports) of all mer-
The studies showed that adopting simple chandise in 2015-16 and 2016-17 were ` 17,16,378 crore
processes, iron ores lying as waste dumps could be and ` 18,41,314 crore, respectively. During the year
upgraded and utilised. 2016-17, the total value of exports (including re-exports)
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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

of ores and minerals was ` 2,00,131 crore. The export 95.42% in the previous year.
value of ores & minerals declined from ` 1,78,019 crore
in 2014-15 to ` 1,70,946 crore in 2015-16 and then raised The import of selected mineral-based products
to ` 2,00,131 crore in 2016-17. The value of mineral during 2015-16 and 2016-17 was valued at ` 94,315 crore
exports showed an increase of about 11% in 2016-17 as and ` 91,092 crore,respectively. The imports of
petroleum products (total) in 2016-17 increased by
compared to that in the previous year.
8.20% in value over the preceding year to ` 70,727 crore
Diamond (total) continued to be the largest con- and had a share of 74.99% in the value of import of
stituent item with a share of 81.3% in the total value of selected mineral-based products during 2016-17.
mineral exports in 2016-17. Next in order of share was The value of imports of metals and
iron ore with a contribution of 5.1% followed by gran- alloys at ` 3,37,788 crore showed a decrease of
ite 4.7%, alumina 1.5% and emerald (cut & uncut) 1.02%. 13.47% in 2016-17 from ` 3,90,371 crore in 2015-16. Gold,
The individual share of remaining minerals in the total non-monetary & monetary (total) with a share of 54.46%
value of exports of ores and minerals from India during continued to occupy the top position in the total import
the year under review was less than 1%. value of metals & alloys in 2016-17 followed by iron &
The export of selected mineral-based products steel with a share of 21.46%, aluminium & alloys
during 2015-16 and 2016-17 was valued at including scrap 6.91%, copper & alloys (including
brass & bronze) 6.73%, silver 3.65%, nickel & alloys
` 1,81,834 crore and ` 2,00,522 crore, respectively.
including scrap 1.10% and ferro-alloys 1.51% percent.
The exports of petroleum products, e.g.,
The individual share of remaining metals and alloys
light distillates (naphtha and others), middle was less than 1% of the total value of metals & alloys
distillates and heavy ends, earned foreign exchange imports.
of ` 1,76,780 crore and ` 1,94,893 crore in 2015-16
and 2016-17, respectively, with more than 97% share VALUE-ADDED EXPORT TRADE
in both the years in the export of selected mineral-
India’s foreign trade includes exports
based products.
of minerals, both in the raw form and
India also exported metals and alloys valued at semi-processed & processed forms like mineral-based
` 1,52,912 crore and ` 1,82,186 crore during primary manufactured products.
2015-16 and 2016-17, respectively. Iron & steel, Minerals contributed significantly to India’s
with a share of 47.29%, continued to hold the top exports trade in 2016-17 with a share of about 11%
position in the total value of metals & alloys. Gold (i.e., ` 2,00,130 crore) in the total value of all
(non-monetary & monetary) accounted for 19.86%, merchandise. The contribution of minerals in
aluminium and alloys including scrap 11.86%, copper exports in raw/unprocessed forms was about
` 22,370 crore and in semi-processed/processed
& alloys (including brass & bronze) accounted for
forms was about ` 1,77,760 crore. The manu-
9.65% . The contribution of ferro-alloys was 5.56%, factured mineral-based products contributed about
zinc & alloys including scrap was 2.25%, precious ` 3,82,073 crore in 2016-17 to the total value of
metals/metals clad with precious metals 1.53%, nickel exports of all merchandise. The value-added
& alloys including scrap was 0.34% and the individual semi-processed/processed minerals figuring
share of other remaining metals and alloys was less in India’s foreign trade included cut & polished
than 1 percent in the total value of metal and alloys. diamond/emerald, pulverised barytes, steatite,
felspar (cut), garnet, calcined magnesite, magnesia
Imports (fused), magnesite (dead-burnt), magnesium
oxide, slate (worked), processed mica & manufactured
The total imports of all merchandise mica products, coke, cut & polished dimension
in 2015-16 and 2016-17 were ` 24,90,298 crore stones, alumina, etc. The manufactured mineral-
and ` 25,50,926 crore, respectively. The value based commodities included metals & alloys and
of imports of ores and minerals in 2016-17 increased by products thereof, cement, firebricks & other
9.56% to ` 8,09,445 crore from ` 7,38,788 crore in 2015- refractory materials, clay-bonded graphite crucibles
& silicon carbide crucibles, manganese dioxide,
16. Petroleum (crude) continued to be the largest asbestos-cement products, inorganic chemicals like
constituent item with a share of 58.60% in the total lime & fluorine chemicals, refined borax & borates,
value of mineral imports in 2016-17. Next in order of elemental phosphorus & phosphoric acid, titanium
importance was diamond with a share of 16.02% dioxide, petroleum products, phosphatic & potash
followed by coal (excluding lignite) with the fertilizers, etc. Table-6 provides data on contribution
of various value-added minerals and mineral-based
contribution of 12.39%, natural gas 4.9% and copper
products to India's exports during 2014-15 to
ores & concentrates 2.26%. The combined share of 2016-17.
these five minerals was 94.24% in 2016-17 as against

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Table – 6 : Contribution of Value-added (Processed) Minerals & Mineral-based Products in

India’s Export* Trade, 2014-15 to 2016-17

Sl. Commodity group Value of exports (` million) Contribution (percentage)

No.
2014-15 2015-16 2016-17 (P) 2014-15 2015-16 2016-17 (P)

1. All Merchandise 18963480 17163780 18413144 100.00 100.00 100.00

2. Minerals 1780194 1709463 2001306 9.39 9.96 10.86

2.1 Raw/Unprocessed form 193728 182381 223701 1.02 1.06 1.21

2.2. Semi-processed/
processed forms 1586466 1527082 1777605 8.37 8.90 9.65
(preliminary and
intermediate stages
of processing)

3. Manufactured Mineral-based
Commodities (final stage
of transformation) 4604328 3342844 3820738 24.28 19.48 20.75

3.1 Metals/Alloys 1672957 1529126 1821860 8.82 8.91 9.89

3.2 Others 2931371 1813718 1998878 15.46 10.57 10.86

Figures rounded off.

* Including re-exports.

INFRASTRUCTURE to become an important part of the global supply chain.

Realising the importance of the sector and to address
Logistics Sector in India remains unorganised to a
the inefficiencies, the Government has included the
large extent. The Sector is facing challenges such as
Logistics Sector in the Harmonised Master List of
high cost of logistics that which is impacting
Infrastructure Subsector.
competitiveness in domestic and global market has been
affected with issues relating to under-developed
material handling infrastructure, fragmented
Coal
warehousing, multiple regulatory/policy making bodies,
lack of seamless movement of goods across modes, Coal production at around 662.79 million tonnes
lack of integrated IT infrastructure/modern technology, in 2016-17 was higher by 3.7% from that of
etc. 639.23 million tonnes in 2015-16. In 2016-17, out of
the total production of coal, 9.3% (61.66 million
The Indian Logistics Industry, worth around US
tonnes) was of coking coal and the remaining 90.7%
$ 160 billion, has grown at a compound annual growth
(601.13 million tonnes) was of non-coking coal. Of
rate (CAGR) of 7.8% during last five years. Improving
the 650.32 million tonnes despatches of raw coal in
that Logistics Sector would have huge implication on
2016-17, about 81.1% despatches were to Electricity
exports and it is estimated that 10 percent decrease in
Sector, 1.9% to the Steel Industry and 1% each to
indirect logistics cost can increase 5-8 percent of
Cement Industry & Sponge Iron Industry.
exports. The Global Ranking of the World Bank’s 2016
Logistics Performance Index shows that India jumped Electricity
to 35th rank in 2016 from 54th rank in 2014 in terms of The All-India installed power generation capacity
overall logistics performance. Apart from increasing has increased substantially over the years and reached
trade, better performance in logistics will augment the 3,30,860.6 MW as on 30th November, 2017. Programmes
programme like "Make in India", and also enable India have been taken up to address improvement in

1-26
 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

performance of distribution companies so that the To make rail transportation attractive, various
ambitious plan to provide electricity for all by 2019 can initiatives were taken in 2016-17 which includes tariff
be achieved. rationalisation, classification of new commodities, new
policy guideline for station to station rates, expansion
In order to enhance power supply in rural areas,
of freight basket through containerisation, withdrawal
Deen Dayal Upadhyaya Gram Jyoti Yojana was launched
of dual freight policy for export of iron ore,
in December 2014 to extend financial assistance for
rationalisation of coal tariff, policy guidelines of Merry-
capital expenditure by distribution companies (discoms)
Go Round System, discount for loading of bagged
for strengthening and augmenting distribution
consignment in open and flat wagons, new delivery
infrastructure, including metering, in rural areas. The
models like Roll-on Roll-off services, re-introduction
estimated outlay for the scheme is ` 43,033 crore. In
of short lead concession and reduction in minimum
addition, the approved outlay of ` 39,275 crore of
distance for charge, digital payment for freight
erstwhile Rajiv Gandhi Grameen Vidyutikaran Yojana
business, Long Term Tariff Contract Policy (which
(RGGVY) has been carried forward to this scheme.
provides tariff stability and attractive rebate in freight
A new scheme, Saubhagya (Pradhan Mantri Sahaj to customers), and Liberalised Automatic Freight Rebate
Bijli Har Ghar Yojana), was launched in September 2017 scheme for traffic loaded in empty flow directions, etc.
to ensure electrification of all remaining willing
‘Station Redevelopment’ is the biggest non-fare
households in the country in rural and urban areas with
revenue generating project for redeveloping railway
an outlay of ` 16,320 crore. Government has also
stations in the country and has been included in the
approved establishment of a National Smart Grid
Harmonised List of Infrastructure Subsectors. Besides,
Mission in the Power Sector to plan and monitor
the redeveloped stations will improve passenger
implementation of programmes related to smart grid
experience by providing amenities like digital signage,
activities in India with a budget allocation of ` 30 crores
escalators/elevators, self-ticketing counters, executive
for 2017-18.
lounges, luggage screening machines, walkways,
Energy Conservation includes National LED holding areas for passengers, grand and distinctive
programme: A programme for promoting use of the most roofing and flooring, free and paid Wi-Fi ,etc.
efficient lighting technology at affordable rates was
Rapid urbanisation has created increased demand
launched in January 2015. In addition, the Bureau of
of civic facilities and transport infrastructure. Metro
Energy Conservation is simultaneously taking up
are rapidly being accepted across the country as a
number of programmes for energy conservation
solution to the problem of urban transportation.
including standardisation and labelling of appliances,
buildings, passenger cars and heavy duty vehicles, etc. Aviation
Transport India is the 3rd largest and the fastest growing
domestic aviation market in the world in terms of num-
Railways
ber of domestic tickets sold. Domestic passenger traf-
Facing stiff competition from other modes of
fic registered a compound annual growth rate (CAGR)
transportation, the Government is initiating various
of 9.89 percent during 2007-08 to 2016-17. Recent
transformative measures which are focusing on prioritising
initiatives taken for the growth of the Civil Aviation
investments in important areas, viz. dedicated freight
Sector are (i) Regional Connectivity Scheme- ‘Ude Desh
corridors, high speed rail, high capacity rolling stock, last
ka Aam Naagrik’ (RCS-UDAN). To make flying acces-
mile rail linkages, port connectivity and attracting private
sible and affordable for the masses in the regionally
and foreign direct investment. During 2017-18 (up to
important cities, the RCS-UDAN scheme was launched
September 2017) Indian Railways carried 558.10 million
in October 2016. (ii) Airport Development: Provision of
tonnes of revenue earning freight traffic as against 531.23
` 4,500 crore for revival of 50 unserved and underserved
million tonnes during 2016-17 (up to September 2016),
airports/air strips has been taken up with budgetary
showing an increase of 5.06 percent during this period.
support of the Government and is proposed to be com-
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pleted by December 2018. The Government has also The Sagarmala programme is the flagship
granted in-principle approval for setting up 18 programme of the Ministry of Shipping to promote port-
Greenfield airports in the country and has granted “site led development in the country through harnessing
clearance” for 5 Greenfield airports. (iii) Liberalisation India’s 7,500 km long coastline, 14,500 km of potentially
of Air Services between Afghanistan and India was navigable waterways and strategic location on key
taken in September 2016. The Corridor will provide Af- international maritime trade routes. The main vision of
ghanistan, greater access to Indian market. Another the Sagarmala Programme is to reduce logistics cost
Air Services Agreement between India and Serbia, for international and domestic trade, with minimal
signed on 31.01.2003, has been liberalised and updated infrastructure investment.
in May 2017 with a view to spur greater trade, invest-
ment, tourism and cultural exchanges between the two
countries. The ‘Jal Marg Vikas Project’ on National
Waterways-I (NW-1) in River Ganga, a large integrated
Ports and Shipping
IWT project, has been launched between Varanasi and
Haldia covering a distance of 1,380 km. On NW-2 (River
Shipping is an important indicator of commodity Brahmaputra), Ro-Ro services have commenced
trade of any country. Around 95 percent of India’s trade between Dhubri and Hatsingimari in July 2017 on an
by volume and 68 percent in terms of value is Inland Waterways Authority of India (IWAI) vessel.
transported by sea. As on 31st December, 2017, India
had a fleet strength of 1,374 ships with dead weight
tonnage (DWT) of 18.80 million (12.36 million GT) Further, under the National Waterways Act, 2016,
including Indian controlled tonnage, with Shipping 106 additional inland waterways have been declared as
Corporation of India (SCI) having the largest share of National Waterways (NWs). Based on techno economic
around 34 percent. Of this, around 443 ships of 17.19 studies, eight new NWs have been taken up for
million DWT (10.88 million GT) cater to India’s overseas development in 2017-18. These include, NW-16 (River
trade and the rest to coastal trade. Barak); three in Goa; NW-86 (River Rupnarayan) ; NW
97 (Sunderbans); NW-9 (Alappuzha-Kottayam-
Athirampuzha Canal) and NW-37 (River Gandak). In
To encourage the growth of Indian tonnage and order to reduce the logistics cost of cargo and facilitate
for higher participation of Indian ships in Indian trade, passenger movement between North-East and
the Government has implemented several measures mainland, MoUs have been signed with Bangladesh.
which include reduction of GST from 18 percent to 5
Roads
percent on bunker fuel used in Indian flag vessels. In
India, there are 27 Shipyards comprising 6 under Central
India has one of the largest road networks of over 56.17
Public Sector, 2 under State Governments and 19 under
lakh km comprising National Highways, Expressways, State
Private Sector Undertakings.
Highways, Major District Roads, Other District Roads and
Village Roads. As on September, 2017, length distribution of
road is: National Highways/Express Way- 1,15,530 km, State
In 2016-17, cargo traffic at Indian Ports has
Highways (As on 2015-16) is 1,76,166 km and Other Roads
increased by 5.9 percent (Y-o-Y) with 6.9 percent growth
(As on 2015-16) is 53,26,166 km. In case of inland freight
in Major Ports and 4.2 percent growth in Non-Major
transport, road share is more than railways and other modes
Ports. In 2017-18 (till 31.12.2017), cargo traffic handled of transportation in India. National Highways (NHs) /Express
at Major Ports has been 499.41 million tonnes as Ways in India accounted for 2.06% of the total road length.
compared to 481.87 million tonnes handled during the So far 3,180 km of State Highways have been converted to
corresponding period of 2016-17. NHs. The Government is connecting habitations with rural

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

roads through the Pradhan Mantri Gram Sadak Yojana exports cement including white cement and clinker.
(PMGSY), which is a centrally sponsored scheme. The exports of cement (total) in 2016-17 and 2015-
16, were about 6.85 million tonnes and 6.22 million
tonnes, respectively.
Bharatmala Pariyojana is a new umbrella programme
for the Highways Sector that focuses on optimising Petroleum Oil and Refineries
efficiency of freight and passenger movement across Crude oil production in 2016-17 at 36.01 million
the country by bridging critical infrastructure gaps tonnes registered a decrease of 2.52 % as compared to
through effective interventions like development of that in 2015-16. The production of natural gas
Economic Corridors, Inter Corridors and Feeder Routes, (utilised) was at 31,896 million cubic metres in
National Corridor Efficiency Improvement, Border and 2016-17, 1.09% lower than 32,249 million cubic metres
International connectivity roads, Coastal and Port achieved in 2015-16. The refinery crude throughput of
connectivity roads and Green-field expressways. A total 245.36 million tonnes in 2016-17 was 5.36% higher
of around 24,800 km are proposed to be constructed in than 232.86 million tonnes processed in 2015-16. The
Phase I. total refining capacity in the country was about
233.96 MMTPA as on 1.4.2017. Production of
petroleum products (including LPG production from
PERFORMANCE OF SELECTED natural gas) was 243.55 million tonnes in 2016-17 as
MINERAL-BASED INDUSTRIES compared to 231.92 million tonnes in 2015-16.

Steel
SELF-RELIANCE IN MINERALS &
MINERAL-BASED PRODUCTS
India from its 8th position in 2003 has climbed up
the rank and is currently the world's 3 rd largest
producer of crude steel and is expected to become India continued to be wholly or largely
the 2nd largest producer of crude steel in the world
self-sufficient in minerals which constitute primary
soon. India is the largest producer of direct reduced
mineral raw materials that are supplied to industries,
iron (DRI) or sponge iron in the world. Production of
finished steel (alloys and non-alloys) in 2016-17 at such as, iron & steel, aluminium, cement, various types
101.80 million tonnes increased by about 11.89% from of refractories, china clay-based ceramics, glass. India
90.98 million tonnes achieved in 2015-16. The total is self-sufficient in bauxite, chromite. India is about to
production of pig iron was 9.3 million tonnes and about self-sufficient in iron ore. India is deficient in kyanite,
9.2 million tonnes in 2016-17 and 2015-16, respectively. limestone, magnesite, sillimanite, rock phosphate,
Exports of iron and steel (total) were 15.44 million tonnes
manganese ore, etc. which were imported to meet the
in 2016-17 as compared to 9.12 million tonnes reported
demand for either blending with locally available mineral
in 2015-16.
raw materials and/or for manufacturing special qualities
Cement
of mineral-based products. To meet the increasing
As per DIPP Annual Report, 2017-18, production demand of uncut diamonds, emerald and other precious
of cement in 2016-17 at 279.97 million tonnes
& semi-precious stones by the domestic Cutting and
registered a decrease of about 1.23% over the
Polishing Industry, India is dependent on imports of
production of 283.45 million tonnes in 2015-16.
Cement Industry has been undergoing a transition raw uncut stones for their value-added re-exports. The
with modernisation and upgradation of technology degree of self-sufficiency in respect of various principal
particularly with a view to conserve energy. India minerals and metals in 2016-17 is furnished in Table-7.

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 INDIAN MINERAL INDUSTRY & NATIONAL ECONOMY

Table-7: Degree of Self-sufficiency in Principal Minerals & Metals, 2016-17 (P)

Sl. Apparent Supply/Domestic Order of self-

No. Commodity Demand* supply sufficiency
('000 tonnes) ('000 tonnes) (R) (%)

Minerals

1. Bauxite 23769 24664 100

2. Chromite 3651 3727 100

3. Iron ore 193616 192081 99

4. Kyanite 3.85 3.25 84

1/
5. Limestone 327166 313196 96

6. Magnesite 433 299 69

7. Manganese ore 4300 2393 56

8. Rock phosphate (including apatite) 8686 1181 14

9. Sillimanite 78 68 87

Metals

10. Aluminium(primary) 3100 2896 93

2/
11. Copper (refined) 840 787 94
3/
12. Lead (primary) 272 142 52

13. Zinc 686 4/ 672 98

* :Apparent demand (production+ import-export)

Source: Production: MCDR Returns & MSMP, March, 2017 for production data.
th
Note: As per Government of India Notification S.O. 423(E) dated 10 February, 2015, the following minerals have
been declared as minor minerals: i) barytes ii) dolomite iii) felspar iv) fireclay v) quartz/silica sand and vi) talc/
steatite/soapstone & vii) pyrophyllite, these have not been included in the table due to non-availability of production
data for the year 2015-16.
Even in cases where almost entire domestic demand is satisfied by domestic supplies, some quantities of certain special quality/
types of minerals and metals/ferro-alloys are imported to meet the requirement in certain specific end-uses.
1/ Excludes production of limestone as a minor mineral, calcite & chalk and includes limeshell, limekankar and marl.
2/ Based on production of copper cathode and imports & exports of copper & alloys.
3/ Based on production of lead (primary), and imports & exports of lead & alloys.
4/ Based on production of zinc (ingots) and imports & exports of zinc & alloys.

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