Mining


FDI Inflows to Mining

The FDI Inflows to mining in India has been permitted up to 100 percent under automatic route in almost all the sectors in Mining industry in India except the atomic minerals such as diamonds and precious stones and fuel minerals.

An Overview of Mining Industry in India-


The mining industry in India is a very vital segment and contributes largely to the Indian economy. India is quite rich in mineral resources and the mining industry plays a significant role in the industrial development of the country. FDI Inflows has been permitted up to 100 percent under automatic route in the mining industry in India except the atomic minerals and fuel minerals. The rapid growth rate in India assures an alarming growth and development in the mining industry as well. India produces 89 minerals which has been divided as under:

  • Fuel Minerals - four
  • Metallic Minerals - eleven
  • Non-metallic Minerals - fifty-two
  • Minor minerals - twenty-two

The export production of ores and minerals have accounted for a sum of USD 2895.90 million during April-September 2006-07 as against USD 2677.40 million during April-September 2005-06 which registers a growth of around 8.2 percent.

Foreign Mining Companies set up in Indian Mining Industry-

 

  • De-Beers Consolidated mines ltd., South Africa
  • Pebble creek Resources Ltd., Canada
  • Anglo American Exploration (India) BV, Netherlands
  • Metdist Group, UK
  • Phelps Dodge Exploration Corpn, USA
  • Transworld Garnet Co., Canada
  • Rio-Tinto Minerals Development Ltd., UK
  • Meridian Peak Resources Corpn, Canada
  • BHP Billiton, Australia

FDI Inflows to Mining Industry in India-

 

  • The exploration and mining of diamonds and other such precious stones have been permitted FDI Inflows up to 74 percent
  • 100 percent FDI has been permitted to silver and gold mining
  • Automatic approval for FDI Inflows have been eased for those areas which have or had an experience in the mining industry as a JV concern or any other way
  • FDI will be permitted up to 100 percent in accomplishing the power projects
  • Coal and lignites set up by Indian concerns are exempted from FDI caps
  • FDI Inflows are permitted up to 100 percent in establishing coal processing units provided the company is not involved in coal mining

Joint Venture Companies which brought FDI Inflows in Mining-

 

  • MOU with Uzbekistan - A Memorandum of Understanding (MoU) for cooperation in geology and mineral resources was signed between the Ministry of Mines and the State Committee of the Republic of Uzbekistan for Geology and Mineral Resources
  • MOU with China - A Memorandum of Understanding (MoU) was signed between Ministry of Mines and the Ministry of Land & Resources of the People's Republic of China
  • India-Australia joint working group on energy and minerals - A Joint Venture between India and Australia on Energy and Minerals
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