Page 12 - The Mineral Development and Regulation Framework in India (English Version)
P. 12
Discussion Paper
(i.e., mineral deposits close to the surface, and the extraction and management of minerals has to be
bulk minerals like iron ore, bauxite, limestone, integrated into the overall strategy for the country’s
etc., amenable to exploitation by well-known development.”
technologies), exploration is particularly important
from the viewpoint of improving our resource and The National Mineral Policy 2008 in Para 5.4 states:
energy security as part of the larger strategy of “Particular attention will be given to the survey and
poverty reduction and inclusive growth. It is generally exploration of minerals in which the country has a poor
acknowledged, based on the geological evolution of resource-cum-reserve base despite having the geological
the Indian subcontinent, that in addition to the surfacial potential for large resources.”…“Minerals for which there
deposits of bauxite, limestone, and iron ore, there is demand within the country …will be prioritized”…
are likely to be extensive mineral deposits of many “Exploration for lower grade hematite, magnetite, base
minerals including ferrous metals, base metals, noble metals, noble metals, diamonds and high grade Ilmenite
metals, diamonds, and rare earths, some of them of will be put in the fast track.”
world class, at deeper depths (i.e., 50 metres and
more below the surface). In the absence of systematic The 12th Plan Working Group on the Minerals Sector
exploration, there has in fact been no major mineral similarly states, “...the strategy for development of any
discovery in India in the last 40 years, which may have mineral should naturally keep in view its ultimate end
long-term adverse consequences for our mineral uses in terms of demand and supply in the short, medium,
resource security, particularly some Technology and long term. The guiding principle in the strategy of
Metals, Energy Critical Metals, and Rare Earths, which development of any mineral or mineral deposit at any
are essential for manufacturing of almost all modern location shall ordinarily be the economic cost of recovery,
devices and machinery, particularly those facilitating i.e., extraction cost relative to market price and will hence
more efficient energy use. be determined by the market. To maximize gains from
the comparative advantage which the country enjoys,
As brought out in the Planning Commission’s intra-se mineral development should be prioritized in
National Manufacturing Plan 2011: “Availability terms of import substitution, value addition and export, in
of high quality raw material and production inputs that order. However, a disaggregated approach in respect
is essential for ensuring sustained growth of the of each mineral will need to be adopted and a mineral
manufacturing sector. Significant impetus is required specific strategy will need to be developed and while
towards developing production capacities in the following doing so, the need for appropriate investments in process
sectors: R&D to be able to extract Technology Metals and Energy
Critical Metals, etc., for long-term raw materials security
Steel for the manufacturing industry has to be supported with
appropriate funding and incentives.”
Cement
The Report also states: “As the country develops and
Fertilizers industry grows, assured availability and proximity of
mineral resources will play an important role in giving
Exploration and development of minerals … a competitive edge to Indian industry in general and
manufacturing in particular. The multiplier effect
… India is blessed with ample resources of a number of minerals processed into metals on downstream
of minerals and has the geological environment for industrialization cannot be overemphasized. Value
many others. The metals and minerals sector has a addition must, therefore, be actively encouraged to the
direct bearing on the growth, development, depth, and extent appropriate with the long-term development
sustainability of the manufacturing and infrastructure of the mineral sector. However, such value addition
sectors. Minerals are a valuable natural resource since will need to go hand in hand with the growth of the
they are the vital raw materials for industries like capital mineral sector as a standalone industrial activity. While
goods, steel, etc. As a major resource for development,
12 JANUARY 2015
(i.e., mineral deposits close to the surface, and the extraction and management of minerals has to be
bulk minerals like iron ore, bauxite, limestone, integrated into the overall strategy for the country’s
etc., amenable to exploitation by well-known development.”
technologies), exploration is particularly important
from the viewpoint of improving our resource and The National Mineral Policy 2008 in Para 5.4 states:
energy security as part of the larger strategy of “Particular attention will be given to the survey and
poverty reduction and inclusive growth. It is generally exploration of minerals in which the country has a poor
acknowledged, based on the geological evolution of resource-cum-reserve base despite having the geological
the Indian subcontinent, that in addition to the surfacial potential for large resources.”…“Minerals for which there
deposits of bauxite, limestone, and iron ore, there is demand within the country …will be prioritized”…
are likely to be extensive mineral deposits of many “Exploration for lower grade hematite, magnetite, base
minerals including ferrous metals, base metals, noble metals, noble metals, diamonds and high grade Ilmenite
metals, diamonds, and rare earths, some of them of will be put in the fast track.”
world class, at deeper depths (i.e., 50 metres and
more below the surface). In the absence of systematic The 12th Plan Working Group on the Minerals Sector
exploration, there has in fact been no major mineral similarly states, “...the strategy for development of any
discovery in India in the last 40 years, which may have mineral should naturally keep in view its ultimate end
long-term adverse consequences for our mineral uses in terms of demand and supply in the short, medium,
resource security, particularly some Technology and long term. The guiding principle in the strategy of
Metals, Energy Critical Metals, and Rare Earths, which development of any mineral or mineral deposit at any
are essential for manufacturing of almost all modern location shall ordinarily be the economic cost of recovery,
devices and machinery, particularly those facilitating i.e., extraction cost relative to market price and will hence
more efficient energy use. be determined by the market. To maximize gains from
the comparative advantage which the country enjoys,
As brought out in the Planning Commission’s intra-se mineral development should be prioritized in
National Manufacturing Plan 2011: “Availability terms of import substitution, value addition and export, in
of high quality raw material and production inputs that order. However, a disaggregated approach in respect
is essential for ensuring sustained growth of the of each mineral will need to be adopted and a mineral
manufacturing sector. Significant impetus is required specific strategy will need to be developed and while
towards developing production capacities in the following doing so, the need for appropriate investments in process
sectors: R&D to be able to extract Technology Metals and Energy
Critical Metals, etc., for long-term raw materials security
Steel for the manufacturing industry has to be supported with
appropriate funding and incentives.”
Cement
The Report also states: “As the country develops and
Fertilizers industry grows, assured availability and proximity of
mineral resources will play an important role in giving
Exploration and development of minerals … a competitive edge to Indian industry in general and
manufacturing in particular. The multiplier effect
… India is blessed with ample resources of a number of minerals processed into metals on downstream
of minerals and has the geological environment for industrialization cannot be overemphasized. Value
many others. The metals and minerals sector has a addition must, therefore, be actively encouraged to the
direct bearing on the growth, development, depth, and extent appropriate with the long-term development
sustainability of the manufacturing and infrastructure of the mineral sector. However, such value addition
sectors. Minerals are a valuable natural resource since will need to go hand in hand with the growth of the
they are the vital raw materials for industries like capital mineral sector as a standalone industrial activity. While
goods, steel, etc. As a major resource for development,
12 JANUARY 2015
