"I have the impression that India
has never been affected by the crisis, head of Indian
giant Tata Group Ratan Tata said in an interview to French news
magazine LExpress this year.
Contrary to most, India has
witnessed robust growth during the last few years with its GDP
projected to increase to 8.75% in 2010, a figure which is the
envy of developed countries.
In comparison, world growth is
expected to be 4.1% in 2010 according to the International
Monetary Fund (IMF), while the USA would reach 3% and the Euro
zone would struggle at just 0.8%.
Only China is supposed to grow
faster with a GDP projected at 10% for 2010.
During the last decade, India has
slowly but steadily approached the circle of the worlds
leading economies. Without breaking into it, it has still
become Asias third largest economy.
India, a domestically-orientated
economy, had a good crisis according to
Londons Financial Times as only 15% of
Indias GDP depends on exports, contrary to
export-orientated countries such as the USA or Japan which
flirt with 50%.
But India is looking to move a step
further and is trying to open the country to world investment,
and training an emerging educated middle-class into
international business.
Indicative of the changes
happening, Tata Group recently bought UKs Jaguar and Land
Rover, the iPhone4 is about to be launched in the country, and
the Indian rupee joined only a handful of currencies Ð US
dollar, British pound, euro and Japanese yen Ð when it
adopted its very own symbol on 15 July.
The Indian mining industry,
directly impacted by macro-economic factors, did not really
feel the economic downturn to a large extent.
The country owns huge mineral
resources (see India at a glance) and produces 86
minerals from 3,000 mines, including 1,694 mines for
non-metallic minerals.
Mining is big in India but could be
much bigger. With the industry valued at $25bn., around 12% of
which is non-metallic minerals, the sector makes a significant
contribution. And foreign investors are beginning to take note
as the Foreign Direct Investment (FDI) grew from $6m. in
2005-06 to $461m. in 2006-07.
Total refractories market (projected)
|
2010 |
|
2012 |
|
|
Production (m. tonnes) |
Value ($) |
Production (m. tonnes) |
Value ($) |
World |
30.2 |
25bn. |
38.1 |
32bn. |
India |
1.5 |
1bn. |
2.2 |
1,530bn. |
Source: World Steel, World Refractories Journal, Tata
Refractories Ltd
Number of mines in India
Sector |
2006-07 |
2007-08 |
2008-09 |
All minerals* |
3,005 |
2,854 |
2,954 |
Coal (including lignite) |
570 |
569 |
569 |
Metallic minerals |
639 |
676 |
691 |
Non-metallic minerals |
1,796 |
1,609 |
1,694 |
* Excluding atomic minerals, petroleum (crude), natural gas
(utilised) and minor minerals
Source: Indian Ministry of Mines, Report 2008-09
New mining law by end-2010
As a consequence, Indias
Ministry of Mines now has every intention to help boost its
mineral industry by increasing private investment within the
next few years. The plan is to push through new legislation by
the end of 2010 to open up the resource-rich country and
attract foreign investors (IM 15 March 2010: India plans
minerals boost).
The proposed mining regulations are
expected to simplify the licensing process and allow it to be
managed by the federal governments (states) instead of the
Union government.
At present, applying for a mining
licence can take up to three years so the idea is now to make
sure that the procedures are made more investor-friendly,
streamlined, transparent, and that everything takes place on a
fast track, Ministrys joint secretary Ajita Bajpai
Pande told IM. Ideally, the government hopes
to reduce this time to six months for exploration and three
months for mining.
The Ministry also plans to focus on
exploration to properly evaluate Indias huge mineral
resources (see Challenges). Pande believes that Indian
industrial growth will occur at around 10% a year, adding that
mining has to occupy centre stage in order for the
manufacturing sector to grow at pace. By focusing on its
mineral resources, the government hopes to significantly
develop its economy.
However, the process to implement
new laws takes time, above all in India where bureaucracy has
been its downfall. For example, the Indian cabinet approved the
new mining policy in March 2008, but the parliament still has
to enforce it. This act has generated a lot of interest
and discussion... [as we are also] concerned about
environmental, socioeconomic, women and child issues,
explained Pande.
There is nothing negative
about it but a democratic procedure takes time. To amend a new
law is a huge exercise and it has to go through the procedure.
So we are hoping to do it as fast as possible, Pande
declared. She has also revealed that the law would hopefully be
enforced by the end of 2010, probably around October.
Indias main minerals production (2007-08)
Minerals |
Production* (tonnes) |
Number of mining leases |
Number of reporting mines |
Main producing states |
Apatite |
6,691 |
1 |
2 |
Andhra Pradesh, West Bengal |
Ball clay |
641,000 |
45 |
33 |
Rajasthan, Andhra Pradesh |
Clay (others) |
802,621 |
46 |
13 |
Gujarat |
Bauxite |
23.m. |
303 |
209 |
Gujarat, Jharkhand, Chhattisgarh, Orissa |
Barytes |
1.07m. |
124 |
8 |
Andhra Pradesh |
Calcite |
81,548 |
67 |
4 |
Madhya Pradesh, Rajasthan |
Chromite |
4.8m. |
30 |
21 |
Orissa, Karnataka |
Dolomite |
5.1m. |
437 |
103 |
Madhya Pradesh, Gujarat, Andhra Pradesh,
Chhattisgarh |
Dunite |
29,169 |
1 |
1 |
Karnataka |
Feldspar |
410,926 |
329 |
25 |
Rajasthan, Andhra Pradesh |
Fireclay |
461,140 |
236 |
61 |
Gujarat, Madhya Pradesh |
Fluorspar |
3,502 |
17 |
2 |
Rajasthan, Gujarat, Maharashtra |
Graphite |
116,007 |
118 |
28 |
Orissa, Jharkhand |
Gypsum |
2.6m. |
55 |
23 |
Rajasthan, Gujarat, Tamil Nadu |
Kaolin |
1.3m. |
424 |
87 |
Rajasthan, Andhra Pradesh, Gujarat, Haryana |
Kyanite |
4,804 |
32 |
5 |
Maharashtra, Jharkhand |
Limestone |
188,125 |
1,537 |
539 |
Gujarat, Madhya Pradesh, Andhra Pradesh, Tamil
Nadu |
Magnesite |
247,527 |
32 |
9 |
Tamil Nadu, Karnataka, Uttarakhand |
Mica (crude) |
1.2m. |
(272 |
32 |
Andhra Pradesh, Rajasthan, Jharkhand |
Phosphate |
1.9m. |
|
4 |
Rajasthan, Madhya Pradesh |
Quartz |
264,664 |
1,026 |
21 |
Andhra Pradesh, Rajasthan, Orissa, Karnataka |
Quartzite |
84,312 |
58 |
14 |
Andhra Pradesh, Orissa, Chhattisgarh |
Salt (rock) |
1,197 |
3 |
1 |
Himachal Pradesh |
Silica sands |
3.9m. |
412 |
117 |
Andhra Pradesh, Rajasthan, |
Silimanite |
42,566 |
4 |
4 |
Kerala, Andhra Pradesh |
Vermiculite |
10,801 |
10 |
4 |
Andhra Pradesh |
Wollastonite |
118,666 |
4 |
2 |
Rajasthan |
Source: Indian Ministry of Mines, Annual report 2008-09
Refractories
While most of the worlds
refractories industry suffered under the global downturn, India
remained relatively resilient and its steel market the greatest
consumer of refractories is expected to grow by 12.1% in
2010.
Steel is the most important end
market for the Indian refractories sector as it drives about
75% of the industry. The worlds fifth largest steel
producer in 2008, India ranked fourth between January and
October 2009, with a capacity of 65m. tonnes. It is now likely
to become the second largest crude steel producer globally by
2015.
Most of our revenue (about
76%) comes from iron and steel sectors and this sector in India
is rapidly growing. We will grow even faster than the
market, Amitava Chaudhury, Tata Refractories
vice-president marketing, told IM.
By the end of the year, it is
expected that India will produce 100m. tonnes of crude steel.
According to the Indian Steel Ministry, the countrys
steel capacity might grow to 124m. tonnes by 2011-2012 and is
expected to double within the next decade, reaching 200m.
tonnes by 2020.
India, with China, was among the
emerging economies which started to improve in Q4 2009.
When you talk to people in the industry in India, they
ask you: Crisis? What crisis? said a foreign refractories
producer established in the country, adding:There is no
crisis in India!
Over 80% of new refractory demand
in 2012 is expected to be attributable to China; Asia
continuing to be the fastest growth region in the world within
the next two years. But while China will account for much of
the regions gains, India is expected to show advances
above the world average.
Indias refractories output
increased by about 67% from 780,000 tonnes in 2002-2003 to
1.30m. tonnes in 2007-2008. A production of 1.5m. is projected
for 2010. The sales turnover in 2007-2008 increased by about
21% over 2006-2007. The total market size in India for 2010 is
about 1.5m. tonnes with an estimated value of Rs 46bn.
($1bn.).
This impressive growth, attributed
to a boost in demand from major consumer industries such as
steel, cement, aluminium and sponge iron, is expected to
continue. The country is now host to international big
refractories players such as Austrian leader RHI AG,
Belgiums Vesuvius, Imerys-owned Calderys and French
calcium aluminate cement group Kerneos Inc. which started
operations in India in 2008 (IM 11 June 2008: Kerneos India
warns of refractory hurdles).
Vesuvius plans to double its Indian
plant capacity through the commissioning of its Kolkata
expansion project in December. The subsidiary of Cookson Plc
conceived the expansion plan in 2004, but the project has been
delayed. According to Indo-Asian News Service (IANS),
Vesuvius is investing $10.7m. in the expansion.
Tata Refractories Ltd, Indias
largest refractories producer, also agrees with the trend.
The global economic catastrophe did not affect the Indian
economy to a large extent. The economic crisis and its impact
on Indian refractories markets was sustained over a period of
about six months, between September 2008 and March 2009. The
Indian refractories market was only affected during
Q3-Q4, Amitava Chaudhury told IM.
We are not adversely affected by the global economic
slowdown. We even increased our sales during that time,
he added.
Tatas refractories actually
grew by 25% in 2009, while worldwide refractories manufacturers
such as RHI were still struggling. The companys
consolidated revenue increased to Rs 7.64bn. ($168m.) from Rs
6.13bn. ($135m.) during that time.
As a consequence, Tata Refractories
is planning to more than double its annual turnover by the
fiscal year 2012-13 due to significant growth in exports.
Managing director A.K.
Chattopadhyay told the Economic Times that the company
is targeting sales of Rs20bn.($228m.) Ð up from the
Rs9.5bn. reported for 2008-09 Ð with exports likely to
contribute 25%, up from the current 14%.
Chattopadhyay said a chunk of the
Tata Refractories export revenue would come from
steelmaker Corus, with Rs700m. ($14.9m.) expected this
financial year, claiming that European refractory makers could
not compete on price.
Tata Refractories is 71.2% owned by
Tata Steel Ltd. The parent group announced in May this year
that it plans to sell half its interest to bring in technical
expertise and offer access to new refractory markets (IM 28
June 2010: Tata Refractories stake for sale).
Refractory raw
materials
India is a resource-rich country,
notably for refractories minerals. According to the ministry of
mines, India is 100%-self-sufficient for bauxite, chromite,
dolomite, fireclay and magnesite. It is also 64%-sufficient in
kyanite as the country needs about 14,000 tpa and produces just
9,000 tpa.
The increasing
internationalisation of the refractories business could take an
interesting turn in the coming years as India emerges the most
important market only next to China, commented AK
Chattopadway.
Graphite: A huge
potential
India is the worlds second
largest graphite producer after China with a production of
140,000 tonnes in 2009 representing about 12.4% of the world
output (IM July 2010: The bright side of
graphite).
The country has estimated resources
at 152m. tonnes and about 78% of the total production accrued
from just five mines. The state of Tamil Nadu is the leading
contributor with about 49% of total output, followed by Orissa
(42%) and Jharkhand (9%). Out of total resources, just 1m.
tonnes is refractory/foundry grade.
In 2006, India consumed an average
of 13,300 tonnes graphite. Since 2003, the amount of graphite
used for refractories has increased from 4,500 tonnes to 6,100
tonnes (46% of total consumption) in 2007 and the country had
to import 9,927 tonnes the same year to meet demand.
Agrawal Graphite Industries,
Indias second leading graphite producer, plans to double
production by 2013 and to expand its portfolio into the battery
market two years later.
There is a huge potential in
India, Prabhas Agrawal, managing partner of Agrawal, told
IM. The company is expecting Chinese exports
to go down, as it imposes stricter controls on minerals for
internal consumption. Agrawal Graphite, which produces about
500 tpm graphite, is increasing production by 10-15% increase
of production by November 2010. It also plans to acquire two or
three more graphite deposits near its existing operations in
the state of Orissa, eastern India.
The plan is to double our
production by 2013 and for that to happen we need
resources, explained Agrawal.
In addition, the company intends to
enter the sector for lithium ion (Li-ion) graphite for
batteries and is in the process of a joint-venture with a
Japanese company.
Ideally, we target a
production of 200m. tpa by 2014 or 2015, the company
said.
The company owns five mines -
Temrimal, Dudkamal, Beharamunda, Deharmunda and Gandabhali -
which are located in a radius of 60km from the main plant
located near the village of Checherbeng in Belpara district,
Orissa. The plant has a capacity of 10,000 tpa of processed
graphite.
Agrawal Graphite also owns a second
subsidiary plant near the village of Menkamunda in Bolangir
district with a capacity of 1,000 tpa in addition to a
semi-processed plant located at Temrimal mine and a
semi-processed plant near the village Mundapala near the
Gandabhali mine.
Graphite electrode manufacturers
are also on the way to development thanks to Indian steel
promises. HEG Ltd, Indias leading graphite electrode
manufacturer, has told IM that it will boost
production from its present 66,000 tpa to 80,000 tpa in Q1
2012.
Demand is going to increase
in this part of the world, R.C. Surana, HEGs
executive director and chief executive officer, explained,
adding that $50m. would be invested in the project (IM 9
February 2010: HEG to boost graphite production).
The operation would establish HEG
in the leading park of graphite electrode producers along with
USA-based world leading producer GrafTech International Ltd and
Germany-based SGL GroupÊÐ both said to have a
production of about 200,000 tpa Ð and Japans Showa
Denko KK (SDK).
Magnesite
India has about 338m. tonnes of
magnesite reserves, 68% of those being located in the state of
Uttarakhand. Production of magnesite in 2006-07 was 242,000
tonnes in 11 reporting mines. Five principal producers
accounted for 89% of global production. Tamil Nadu Magnesite
Ltd (Tanmag) is one of Indias largest magnesite producers
with a crude output of up to 100,000 tpa from the Salem region
of Tamil Nadu, followed by Dalmia Magnesite Corp. Ltd and India
Magnesia Products Ltd. Tamil Nadu is the major producing state
with about 73% of global production.
Growing concerns in the world about
magnesia supply for the refractories industry, has led the
country has decided to exploit its natural resources in order
to meet the expected increased demand.
Among the new projects, Indian
mining company National Mineral Development Company (NMDC) Ltd
has revealed to IM that it intends to set up a
100 tpd dead burned magnesia (DBM) plant in the Jammu and
Kashmir region, India (20 May 2010: New Indian DBM plant by
2012).
NMDC has a 74% stake in
joint-venture with JKMDC for a magnesite mine near the village
of Panthal, Jammu, and plans to set up 36,500 tpa DBM at
Panthal, in the north of the country. The deposit feeding the
plant has reserves of 4.05m. tonnes magnesite.
We expect to start production
in 2012, the company told IM. The
magnesite from this deposit will be used to produce DBM for the
domestic refractory market.
Indias main minerals production*

Bauxite
India ranks seventh in terms of
bauxite reserves after Australia, Brazil, China, Greece, Guinea
and Guyana. According to the Indian Ministry of Mines, the
country is completely self-sufficient in the material with
total resources estimated at 3.4bn. tonnes in the 841 known
deposits in the country. About 70m. tonnes of this bauxite is
refractory grade. Orissa is the most bauxite-rich state owning
55% of Indias bauxite reserves.
The country, which produced 23m.
tonnes in 2007-08, has many upcoming projects. National
Aluminium Co. Ltd (NALCO) is working on a joint-venture project
to expand its existing speciality alumina operations from its
present 26,400 tpa to 100,000 tpa for the overseas market.
The company owns a fully mechanised
opencast mine of 4.8m. tpa capacity in Orissa. Capacity is at
present being expanded to 6.3m. tpa.
NALCO also has a 1.5m. tpa alumina
refinery in Koraput district. Capacity is being expanded to
2.1m. tpa.
Other refractory
minerals
According to the Indian Ministry of
mines, production of dolomite decreased 1% in 2007-08 to 5.1m.
tonnes compared to the year before. About 55% of Indian global
dolomite output in 2007-08 was produced by
four major companies: Viz, SAIL (21%), Rashtriya Ispat Nigam
Ltd (13%), Bisra Stone Lime Co. (12%) and Tata Steel (9%).
Dolomite is mainly produced in the
states of Orissa (32%), Chhattisgarh (23%) and Andhra Pradesh
(25%) in the east of the country, the remaining 20% being
contributed by six other states: Gujarat, Jharkhand, Karnataka,
Madhya Pradesh, Maharashtra and Rajasthan.
India has 7.5bn. tonnes dolomite
reserves, There are 116 reported mines, about 78% being
produced by 14 companies.
Total resources of
fireclay in the country are estimated at 704m.
tonnes. The share of refractory non-plastic/semi-plastic grade
is 109m. tonnes (15.5%), refractory plastic-grade, 254m. tonnes
(36%), and refractory unclassified grade 109.5m. tonnes
(15.5m.). India produces about 444,000 tpa in 64 mines.
Rajasthan occupies first position among states with 29%
followed by Orissa (16%), and Gujarat (14%). Main producers are
Tata Refractories Ltd in Orissa and Sampat Lal Daga in
Rajasthan.
India also has 18.4m. tonnes
andalusite reserves in the states of Jharkhand
and Uttar Pradesh.
Abrasives
Indian abrasives producer
Carborundum Universal Ltd (CUMI) has entered into a
joint-venture with Gujarat Mineral Development Corp. Ltd
(GMDC), Gujarats state-owned mining company, to develop a
composite brown fused alumina plant in Kutch, Gujarat.
Production at the plant, based in
the Naketrana area of Kutch, will initially be 35,000 tpa brown
fused alumina (BFA), CUMIs managing director K Srinivasan
told IM.
GMDC brings to this j-v the
abrasive grade bauxite mines and availability,
Srinivasan explained. CUMI brings the technology to
manufacture a full range of BFA products, operational expertise
and marketing.
BFA is primarily sold into the
abrasives and refractories markets and is manufactured from
calcined, abrasive grade bauxite ubiquitous for India.
Srinivasan confirmed that the final
details of the project such as exact location, energy
sources and shareholding were still being determined, but
that CUMI planned to complete the plant within 18 months after
receiving final clearances.
It is thought that development will
begin this year and could include the construction of a
coal-fired electricity plant to power the operation.
Indias plastics
growth
With reported growth rates of
10-12%, Indias plastics market represents considerable
opportunities for filler minerals, including wollastonite
(IM August 09, p.22: Indian plastics to rise
10-12%).
The Indian economy appears to be
already emerging from the downturn, which has had a positive
effect on certain industries reliant on plastics as major
components, such as the automotive and wire and cable
sectors.
Indias economic growth slowed
to 6.7% last year after three straight years of expansion of at
least 9%, but is on track to grow 7% this fiscal year.
Automotive sales, manufacturing, and cement production have
seen recent improvement.
Wollastonite: Demand is
booming
India ranks second after China and
before the USA, producing almost 20% of the worlds
wollastonite. But production is limited to Wolkem India Ltd and
Galaxy Corp. (IM November 2009: Wollastonites pins
and needles).
Wolkem Ltd, the world leading
producer, has a capacity of over 160,000 tpa wollastonite from
the Sirohi district of Rajasthan, Indias north-west
province. Galaxy Corp. produces 6-10,000 tpa from the same
deposit but a different mine to Wolkem supplying the domestic
ceramics industry.
As in China, large scale
development of the countrys wollastonite did not occur
until the 1980s, when India started to produce about 10,000
tpa. One of the main reasons behind this was the challenges
associated with Wolkems two operations, the Belka Pahar
and Kheratala mines, located in a hilly and forested area in
the Siroshi district of Rajasthan.
India then started to steadily
increase production from 35,000 tonnes in 1990 to 160,000
tonnes in 2008, owing in the main to Wolkem production.
Wolkem supplies grades for the
polymers, coatings, building material, ceramics, friction and
metallurgical applications. Wolkem supplies the Indian market
but mainly exports its wollastonite to Europe, south-east Asia
and Asia Pacific.
As with US wollastonite producers,
India has been impacted in a similar way by the financial
crisis. Interestingly, domestic demand has not reported an
actual decline just a slowing of growth, but there was a
substantial reduction in demand from overseas customers.
Last year, exports sales were
adversely affected to the polymer, automobile, building
material and friction applications as Gaurang Singhal,
Wolkems director, explained to IM,
even though domestic sales are growing
marginally.
Wolkem sustained production in
2008/09 and export markets started to pick up this year leading
the way to a bright future. Demand for wollastonite in
the domestic market is booming as exports are increasing
marginally, Singhal said, adding that the company intends
to therefore increase its mining and minerals processing
capacities by about 25%.
It is time to invest in new
product developments and to develop new applications for this
mineral, he declared, explaining that the areas with more
potential included polymer markets, (coated and uncoated) with
high aspect ratio and extremely fine grades. However, sales
related to automobile sectors will remain subdued
until mid-2010.
Talc
In 2007-08, production of talc grew
by 12% over the previous year to 826,000 tonnes. Rajasthan, the
principal producing state, accounted for about 70% of the
Indian global output during that time. Production in Rajasthan
is dominated by five main producers which all together
accounted for 64% of the production of talc in 2007-08:
Associated Soapstone Distributing Co. Ltd (25%), Udaipur
Mineral Development Syndicate Ltd (23%), Parbatia Mines (6%),
Nalwaya Mineral Industries Pvt Ltd and Katiyar Mining (5%) and
Industrial Corp. (5%).
Golcha Associated Group mines about
300,000 tpa of crude across three mining zones in the South of
Rajasthan and produced about 200,000 tpa of talc powder at its
plant located near the city of Udaipur.
As Golcha explained to
IM, the group has focused on research since
inception in order to meet the current and future
requirements of end users market.
According to 20 Microns Ltd, white
minerals such as talc are really outperforming compared to many
other sectors in India.
There is still a lot of
demand-supply gap in the market and the opportunities have been
immense for the players to increase their respective
capacities. There have also been a lot of mergers and
acquisitions and buyouts in the international markets which
provides ample opportunities for the export market as
well,20 Microns joint managing director Atil Parikh
told IM.
20 Microns, which has observed a
tremendous growth in the past five years, planned
to increase its capacities in the existing minerals in order to
meet the domestic and export demands. The company also plans to
add a few more new minerals into its portfolio.
Challenges
Although India is undeniably a mineral resource-rich
country, it still has a long way to go before being able to
take full advantage of this wealth.Costs. Fragmented,
disorganised, the energy-intensive Indian mining industry has
recently been affected by the continuous increase in power and
fuel costs in addition to power shortages in some parts of the
country. The main challenges for the refractories producers
will be to address the issue of ever increasing raw material
and energy costs in the future. Now that the market is starting
to show signs of recovery, a slight increase in sea freights
from India is also expected compared to 2008-2009 levels.
Fragmented, disorganised, the energy-intensive Indian mining
industry has recently been affected by the continuous increase
in power and fuel costs in addition to power shortages in some
parts of the country. The main challenges for the refractories
producers will be to address the issue of ever increasing raw
material and energy costs in the future. Now that the market is
starting to show signs of recovery, a slight increase in sea
freights from India is also expected compared to 2008-2009
levels.
Infrastructure. The lack of
infrastructure remains of the main challenges that the country
will have to overcome to develop its mining assets.
Transporting raw material across the country can be
really challenging, told IM Jean-Christophe Trassard, managing
director of Kerneos India. According to some source from the
industry, raw material transport in India can cost up to
$70/tonne whereas shipping products from Europe would cost
$30/tonne and $50/tonne from India. There is no solution
on the short-term, believes Trassard. As a consequence,
mining companies and manufacturers had to find solutions, the
main one being to split storage all over the country in order
to meet demand at anytime from anywhere in the country.
The lack of infrastructure remains of the main challenges that
the country will have to overcome to develop its mining assets.
Transporting raw material across the country can be
really challenging, told Jean-Christophe Trassard, managing
director of Kerneos India. According to some source from the
industry, raw material transport in India can cost up to
$70/tonne whereas shipping products from Europe would cost
$30/tonne and $50/tonne from India. There is no solution
on the short-term, believes Trassard. As a consequence,
mining companies and manufacturers had to find solutions, the
main one being to split storage all over the country in order
to meet demand at anytime from anywhere in the country.
Education. Research and development
activities are supposed to play a growing role in the future,
notably for refractories and India will have to catch up.
Except for the few leading refractory producers, the
refractory market has failed to attract talents to live up to
the task, declared Gupta.
Research and development activities are supposed to play a
growing role in the future, notably for refractories and India
will have to catch up. Except for the few leading
refractory producers, the refractory market has failed to
attract talents to live up to the task, declared Gupta.
Environment. One of the main
concerns in India is the environmental issue which is taken
very seriously by the Indian government and can sometimes slow
down mining projects. For the refractories producers, the main
challenges will be to adhere to the increasingly stringent
pollution controls. Talc is also a prime example of
Indias environmental concerns.
One of the main concerns in India is the environmental issue
which is taken very seriously by the Indian government and can
sometimes slow down mining projects. For the refractories
producers, the main challenges will be to adhere to the
increasingly stringent pollution controls. Talc is also a prime
example of Indias environmental concerns.
Inflation became a growing
political challenge as figures continue to increase, reaching
almost 10%. As a consequence, the nation struggles with high
fuel and food costs.
became a growing political challenge as figures continue to
increase, reaching almost 10%. As a consequence, the nation
struggles with high fuel and food costs.
Exploration. India is known to have
important mineral resources but a huge exploration work still
has to be done before the country can exploit all its mineral
assets. India is an unopened jewel box. The more you
explore, the more you find, the more you mine, said
Pande.
India is known to have important mineral resources but a huge
exploration work still has to be done before the country can
exploit all its mineral assets. India is an unopened
jewel box. The more you explore, the more you find, the more
you mine, said Pande.
Bureaucratic democracy. The heavy
bureaucratic democracy is very often seen as a burden which
will slow the process of development. In India, politics
prevails over economy or prosperity, Ratan Tata
explained.
The heavy bureaucratic democracy is very often seen as a burden
which will slow the process of development. In India,
politics prevails over economy or prosperity, Ratan Tata
explained.
Outlook
In terms of the resources it has
and its economic clout, Indias future is bright, thanks
to its healthy economy and to its mineral potential. Projected
to host the worlds biggest population by 2030 and poised
for an economic growth of 8.7% in 2011, the country is on the
way to transforming from an emerging power into a super
power.
However the pace of this
transformation remains unpredictable. For sure, it will be
slower than China, mainly because India is slowed by the burden
of its slow democratic process while China is advantaged by its
dictatorial capitalism.
These factors will affect
Indias mining sector as the country undoubtedly owns
attractive mineral resources for a world always in search of
new sources of raw material. As the worlds fifth largest
steel producer in 2008, India is now likely to become the
second largest crude steel producer globally by 2015.
It is likely that in the coming
years, global refractory demand will be led mainly by China
followed by India.
The increasing
internationalisation of the refractories business could take an
interesting turn in the coming years as India emerges as the
most important market only next to China, commented Tata
Refractories Chattopadway.
But for that to happen, India will
first have to overcome the burden of major issues such as
inflation, infrastructure, power, bureaucratic democracy and
above all, mineral exploration.
In addition, the country will have
to solve the paradoxical problem of environment issues within
the government.
Indias development will have to have a green conscience
as the country will reduce its greenhouse gas (GHG) emission
intensity by 20-25% between 2005 and 2020.
But whatever pace of development that prevails, the message is
summed by Ministrys joint secretary Pande: This
decade is going to be the deciding decade for
India.
India at a glance
President: Pratibha Patil
Capital: New Delhi
Largest city: Mumbai
Population: 1.184bn.
GDP growth: 8.75%
GDP: $1,468bn
Inflation: 8.6%
IMs*
Barytes, chromite, graphite, talc, wollastonite: 2nd
Bauxite: 3rd
Kyanite/sollimanite: 4th
Manganese ore: 5th
Magnesite: 11th
Mica: 11th
Apatite/phosphate rock: 13th
Others*
Coal: 2nd
Iron: 4th
Steel (crude): 5th
Zinc: 7th
Aluminium: 8th
Copper: 11th
Petroleum (crude):
24th
B arytes, chromite, graphite, talc, wollastonite: 2Bauxite:
3Kyanite/sollimanite: 4Manganese ore: 5Magnesite: 11Mica:
11Apatite/phosphate rock: 13Coal: 2Iron: 4Steel (crude): 5Zinc:
7Aluminium: 8Copper: 11Petroleum (crude): 24
Industries*
Cotton: 2nd
Cement: 2nd
Ceramic tiles: 5th
C otton: 2Cement: 2Ceramic tiles: 5
* World producer rank