Page 2 - Why we need a New Mineral Exploration Policy for National Mineral Security?
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Discussion Paper
More and more exploration, to continuously locate more minerals, at greater depths, is necessary for ensuring
India’s mineral security. Minerals security has many dimensions, including commercial, economic, and strategic
dimensions. A pragmatic system for grant of mineral concessions is necessary which can incentivize private sector
investments in exploration while also ensuring best value for the extracted mineral resources .The Conclusion
to this Paper gives a possible solution.
Introduction report of the high-level Committee (also known as the
Hoda Committee), constituted for the purpose.
The Ministry of Mines strategy paper ‘Unlocking the
Potential of the Indian Minerals Sector’, published One of the main thrusts of the Policy, based on the
in 2011, highlights India’s relatively low position in the Hoda Committee recommendations, is that to exploit
global mining sector. The paper trenchantly states: the country’s geological potential for the sustainable
development of the country, it is important to carry
“As the relevance of the mining sector grows globally, out scientific and detailed prospecting in search of its
the Indian mining sector is lagging behind, with just 1.2 per mineral resources. In particular, it needs to be ensured
cent contribution to GDP over the last decade (as opposed that regional and detailed exploration is carried out
to 5 to 6 per cent in major mining economies) and very systematically in the entire geologically conducive
low exploration spend per square kilometre (USD 9 [`400] mineral-bearing area of the country using state-of-the-
compared to USD 124 [`5,580] for Australia and USD 118 art techniques in a time-bound manner.
[`5,310] for Canada).
As a major resource for development, the extraction
India has initiated several progressive policy measures, and management of minerals has to be integrated into the
putting itself in a good starting position to undertake the overall strategy of the country’s economic development.
transformation of the mining sector. Unlocking the potential In this context, there is a need to invest significantly in
of the mining sector in India could add around USD210 detailed prospecting. As has been detailed in the Ministry
billion to USD 250 billion (`945 to 1,125 thousand crore) of Mines Strategy paper ‘Unlocking the Potential of the
or 6 to 7 percent to the GDP and create 13 to 15 million Indian Minerals Sector’ referred to earlier, investment
jobs through direct and indirect contribution by 2025. for exploration needs to be heavily boosted as
India’s past investments have been almost negligible
To achieve this, action is required on six key priorities, (see Figure 1). The exploration for minerals has to be
including enhancing resource and reserve base through guided by long-term national goals and perspectives.
exploration and international acquisition; reducing permit Just as these goals and perspectives are dynamic and
delays; putting in place core enablers (infrastructure, responsive to the changing global economic scenario,
human capital, technology); ensuring sustainable mining the application of the national mineral policy and
and sustainable development around mining; creating an consequent strategies has to be equally robust taking into
information, education, and communication strategy; and
undertaking measures to ensure implementation.” Figure 1: Investment in exploration by select countries
India has significant potential for further exploration Source: Ministry of Mines, 2011. ‘Unlocking the Potential of the Indian Minerals Sector’,
as the Indian continental landmass and its offshore Strategy Paper for Ministry of Mines
consist of several Cratons (crustal masses) going back to
the oldest geological periods. India is blessed with ample
resources of a number of minerals and has the geological
environment for many others. The National Mineral
Policy 2008 (NMP 2008) spells out in detail the direction
that the mineral development of this country should
take in order to discover and exploit these resources. It
is based on a review of the successes and failures of the
earlier National Mineral Policy 1993 (announced soon
after economic liberalization in 1991) analysed in the
2 JUNE 2017
More and more exploration, to continuously locate more minerals, at greater depths, is necessary for ensuring
India’s mineral security. Minerals security has many dimensions, including commercial, economic, and strategic
dimensions. A pragmatic system for grant of mineral concessions is necessary which can incentivize private sector
investments in exploration while also ensuring best value for the extracted mineral resources .The Conclusion
to this Paper gives a possible solution.
Introduction report of the high-level Committee (also known as the
Hoda Committee), constituted for the purpose.
The Ministry of Mines strategy paper ‘Unlocking the
Potential of the Indian Minerals Sector’, published One of the main thrusts of the Policy, based on the
in 2011, highlights India’s relatively low position in the Hoda Committee recommendations, is that to exploit
global mining sector. The paper trenchantly states: the country’s geological potential for the sustainable
development of the country, it is important to carry
“As the relevance of the mining sector grows globally, out scientific and detailed prospecting in search of its
the Indian mining sector is lagging behind, with just 1.2 per mineral resources. In particular, it needs to be ensured
cent contribution to GDP over the last decade (as opposed that regional and detailed exploration is carried out
to 5 to 6 per cent in major mining economies) and very systematically in the entire geologically conducive
low exploration spend per square kilometre (USD 9 [`400] mineral-bearing area of the country using state-of-the-
compared to USD 124 [`5,580] for Australia and USD 118 art techniques in a time-bound manner.
[`5,310] for Canada).
As a major resource for development, the extraction
India has initiated several progressive policy measures, and management of minerals has to be integrated into the
putting itself in a good starting position to undertake the overall strategy of the country’s economic development.
transformation of the mining sector. Unlocking the potential In this context, there is a need to invest significantly in
of the mining sector in India could add around USD210 detailed prospecting. As has been detailed in the Ministry
billion to USD 250 billion (`945 to 1,125 thousand crore) of Mines Strategy paper ‘Unlocking the Potential of the
or 6 to 7 percent to the GDP and create 13 to 15 million Indian Minerals Sector’ referred to earlier, investment
jobs through direct and indirect contribution by 2025. for exploration needs to be heavily boosted as
India’s past investments have been almost negligible
To achieve this, action is required on six key priorities, (see Figure 1). The exploration for minerals has to be
including enhancing resource and reserve base through guided by long-term national goals and perspectives.
exploration and international acquisition; reducing permit Just as these goals and perspectives are dynamic and
delays; putting in place core enablers (infrastructure, responsive to the changing global economic scenario,
human capital, technology); ensuring sustainable mining the application of the national mineral policy and
and sustainable development around mining; creating an consequent strategies has to be equally robust taking into
information, education, and communication strategy; and
undertaking measures to ensure implementation.” Figure 1: Investment in exploration by select countries
India has significant potential for further exploration Source: Ministry of Mines, 2011. ‘Unlocking the Potential of the Indian Minerals Sector’,
as the Indian continental landmass and its offshore Strategy Paper for Ministry of Mines
consist of several Cratons (crustal masses) going back to
the oldest geological periods. India is blessed with ample
resources of a number of minerals and has the geological
environment for many others. The National Mineral
Policy 2008 (NMP 2008) spells out in detail the direction
that the mineral development of this country should
take in order to discover and exploit these resources. It
is based on a review of the successes and failures of the
earlier National Mineral Policy 1993 (announced soon
after economic liberalization in 1991) analysed in the
2 JUNE 2017
