The Union Cabinet has approved the National Mineral Exploration Policy (NMEP) with the aim of exploring private participation in mining sector of the country, besides strengthening Geological Survey of India (GSI), Mineral Exploration Corporation Ltd (MECL) and other agencies.
Initially, the steps would encourage the private and foreign companies to participate in the transparent e-auction process for 100 potential mineral blocks over the next six months in mineral rich states of the country.
The step of government has not only brought the good news for domestic and foreign mining companies who are in mineral exploration business, but also the initiative has brought a good news for the construction equipment manufacturers especially which are into making equipment used for mining.
While commenting on cabinet decision, Mr. Narendra Singh Tomar, Union Mines Minister said, “India has got 800,000 sq km of area, which has obvious geological potential for mining. Of this, only 10 percent has been explored till date. Government institutions like GSI and MECL have limited capabilities. Therefore, this step has been taken to invite private exploration,” reported Business Standard.
There is a need for comprehensive mineral exploration of the country to uncover its full mineral potential so as to put the nation’s mineral resources (non-fuel and non-coal) to best use and thereby maximize mining sector contribution to the GDP.
According to Ministry of Mines, it will carry out auctioning of identified exploration blocks for exploration by private sector on revenue sharing basis in case their exploration leads to auctionable resources. The revenue will be borne by the successful bidder of those auctionable blocks.
To implement the recommendations of the NMEP, initially an amount of about Rs.2116 crore over 5 years would be required over and above the annual plan budget of the GSI under the Ministry of Mines. The NMEP will benefit the entire mineral sector across the country.
India is gifted with huge resources of several metallic and non-metallic minerals and the sector is very important from an economy point of view. Country produces 87 minerals, which includes 4 fuel, 10 metallic, 47 non-metallic, 3 atomic and 23 minor minerals.
According to the Data of Ministry of Mines, the number of mines which reported mineral production [excluding minor minerals, petroleum (crude), natural gas and atomic minerals] in India was 2076 in 2011-12, out of 2076 reporting mines, 354 were located in Andhra Pradesh followed by Gujarat (308), Rajasthan (241), Madhya Pradesh (225), Karnataka (180), Tamil Nadu (156), Odisha (119), Jharkhand (106), Chhattisgarh (99), Maharashtra (86) and Goa (70). These 11 States together accounted for 93.64% of total number of mines in the country in the year 2011-12.
Odisha share in the value of mineral production during 2011-12 was 12.02%, followed by Chhattisgarh (9.15%), Rajasthan (9.01%), Andhra Pradesh (6.99%), Gujarat (6.83%), Jharkhand (5.86%), Madhya Pradesh (4.69%), Assam (4.63%), Goa (3.30%) and Karnataka (3.13%) in the total value of mineral production.
These mineral rich states are expected to witness a number of e-auction for mineral blocks by mining companies, where huge numbers of mining equipment will be required for long term, as only 10 percent geological potential for mining has been explored in the country till date.
Therefore, mining equipment such as; dump truck, Dragline excavator, mining shovel, Haul Trucks, Drills, Track loaders, Mass Excavators, Scrapers, bulldozer, Scaler and other related machines will be highly in demand once e-auction process gets completed and mining process will start.
Along with new equipment, resale or rental demand of mining equipment will rise in these states. Customers who are seeking second-hand machines or looking for finance to buy mining equipment may contact reliable and emerging e-commerce portal www.equipmentonestop.com for every type of second hand machines across the Indian states.
Source: Information has been obtained from Ministry of Mines, Business Standard