India is a major global producer of flake
graphite. The country has been ranked amongst the top five
graphite producers by the USGS, with reserves of nearly 11m
tonnes.
Graphite occurrences are reported from different
states including Jammu and Kashmir, Arunachal Pradesh, Gujarat,
Jharkhand, Maharashtra, Karnataka, Kerala, Tamil Nadu, Odisha,
Chattisgarh and Rajasthan.
However, the deposits of economic importance are
located in Andhra Pradesh, Chattisgarh and Arunachal Pradesh,
which are yet to be exploited. As far as mining and processing
of graphite is concerned, Jharkhand, Odisha and Tamil Nadu are
the only states where operations are being conducted.
Indian graphite resources
• Reserves - 10.75m tonnes
• Resources available - 158.02m tonnes
Table 4: Indian graphite industry -
Operational reserves and available resources 2013
States
|
Graphite reserves
|
Andhra Pradesh
|
0.43
|
Arunachal Pradesh
|
72.75
|
Chattisgarh
|
1.01
|
Gujarat
|
3.35
|
Jammu & Kashmir
|
62.74
|
Jharkhand
|
10.37
|
Karnataka
|
0.26
|
Kerala
|
1.45
|
Maharashtra
|
1.16
|
Odisha
|
5.42
|
Rajasthan
|
1.91
|
Tamil Nadu
|
7.91
|
(*Quantity in tonnes)
Source: Geological Survey of India
Graphite resources
Of the total graphite resources available in
India, Arunachal Pradesh accounts for 43%; followed by Jammu
& Kashmir (37%), Jharkhand (6%), Tamil Nadu (5%) and Odisha
(3%) (Figure 1).
However, in terms of reserves, Tamil Nadu holds
the leading share of about 37%, followed by Jharkhand (30%) and
Odisha (29%), as these are the only operational graphite spots
(Figure 2).
Figure 1: Total India graphite
resources

Figure 2: Operational Indian graphite
resources

Figure 3: Indian graphite
producers

Source: Geological Survey of India, IM Data
Graphite production
Being one of the major producers of natural
crystalline flake graphite, India registered production of
30,000 tonnes in 2013, down 14% from the previous year due to
lower demand and the temporary closure of mines.
The estimated production for 2014 is expected to
be limited to 20,000-25,000 tonnes due to the lack of required
infrastructure, energy resources, toughening government
legislation and increasing environmental regulations.
Out of the total production, eight principal
producers including Tirupati Carbon & Graphite, Chotanagpur
Graphite Industries, Carbon & Graphite Products, Agrawal
Graphite Industries, Pradhan Industries, T.P. Minerals, G.R.
Graphite and TAMIN Minerals account for nearly 85% of the total
production, while the remaining 15% is contributed by other
small miners (Figure 3).
The illustrated map (Figure 4)
highlights major graphite resources in India, operational mines
and leading graphite producers in Jharkhand, Tamil Nadu and
Odisha.
Figure 4: Indian graphite
map
Current market scenario
India currently produces around 89 minerals under
different groups, with fuel minerals, metallic minerals,
non-metallic minerals, atomic minerals and minor minerals. The
country has immense potential for mining resources and reserves
and is currently among the top 10 global producers of many
industrial minerals.
Graphite is another major mineral produced in the
country and, according to IM’s
Natural Graphite 2012 Report, India is the fourth
largest producer of graphite in the world. The
country’s graphite production dropped by 15% to
30,000 tonnes last year and is likely to fall below the 25,000
tonne mark this year.
This is mainly owing to toughening government
regulations, increased judicial scrutiny and adverse mining
conditions, which are not only restricting existing producers
expansions but also keeping explorers at bay.
According to market sources, the Indian graphite
market is showing a downtrend since last year. Although the
market is improving as industries move back into production,
another downfall cannot be ruled out because of the recent
orders passed by the Supreme Court of India which are going to
negatively affect the sector (See table 6).
Many miners in the mineral-rich states of
Jharkhand, Karnataka, Odisha and Tamil Nadu are struggling
because of the bans imposed and increased judicial
scrutiny.
Table 5: Major graphite
producers
Company
|
State
|
Mining Projects
|
Production Capacity
|
Tirupati Carbons &
Chemicals
|
Jharkhand
|
Rabda, Gaura, Ekta
|
20,000 tpa
|
Chotanagpur Graphite
Industries
|
Jharkhand
|
Satbarwa Bishrampur
|
10,000 tpa
|
Carbon & Graphite
Products
|
Jharkhand
|
Latehar, Palamu
|
7,000 tpa
|
Agrawal Graphite
Industries
|
Odisha
|
Belpara, Sambalpur
|
10,000 tpa
|
Pradhan Industries
|
Odisha
|
Rayagada
|
12000 tpa
|
T.P. Minerals Pvt. Ltd.
|
Odisha
|
Dangachacha, Sargipali
|
8,000 tpa
|
G.R. Graphite Industries
|
Odisha
|
Balibandha, Sambalpur
|
6,000 tpa
|
Tamil Nadu Minerals
Limited
|
Tamil Nadu
|
Sivagangai, Madurai
|
8,400 tpa
|
Table 6: Major Challenges in the Indian
Mining Industry
New Government
|
Although the new government
aims to modernise its mining industry, the policies and
procedures yet remain unclear.
|
Environmental
clearances
|
To obtain environmental
clearance is mandatory, however the procedure is time
consuming and the decision is mainly at the discretion
of Supreme Court.
|
Social license to
operate
|
Opposition from local
landowners living near mining areas has made it even
difficult to obtain a social licence.
|
Infrastructure access
|
Access to energy resources,
transportation and skilled labour is limited.
|
Competition for land
usage
|
Problems related to land
usage for new mines amidst legal, environmental and
social concerns.
|
Fraud and corruption
|
Lack of transparencies in
policies is fuelling corrupt practices.
|
Regulations
|
Regulatory and policy
framework is outdated.
|
Major developments
Overseas expansion
Amidst the prevailing industrial turmoil, it has
become more difficult for existing miners or new players to
invest in mining before they meet the required
regulations.
According to market sources new projects in India
are substantially delayed when awaiting final clearances owing
to increased regulation. In light of the current mining
environment in India, it will be a while before new projects in
India materialise.
Consequently, many producers have started looking
for other feasible graphite resources available outside the
country. Another major graphite producer of the country has
acquired a 25km2 mine with large flake graphite
deposits in Madagascar.
According to the company, detailed exploration in
the delineated target area is in progress and considering the
present timelines, the company expects to roll output of 12,000
tpa of large flake graphite from the project by Q4 2015.