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Report Published: "India Mining Report Q1 2014"

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2013-12-29 21:00:36 - Recently published research from Business Monitor International, "India Mining Report Q1 2014", is now available at Fast Market Research

India's mining industry will continue to be characterised by regulatory and bureaucratic hurdles, while corruption will stifle growth in an already poor operating sector. Overall, we forecast the mining industry to reach a value of US$51.9bn in 2017, growing at an average rate of 6.5% per annum. Despite the attractive prospects in the underdeveloped mining sector, we believe growth in India's mining industry will remain curtailed by the poor operating environment. India has a wide range of globally significant mineral resources, ranking among the world's top five countries for its core competency commodity reserves of coal and iron ore.

Iron ore reserves are estimated in the region of 23bn tonnes (bnt) and account for 6% of global reserves, while coal reserves

are reported to be around 286bnt. Indeed, India is the world's third-largest producer of coal, fourth-largest producer of iron ore and the fifth-largest producer of bauxite. However, only 10% of the country's landmass has been explored, due primarily to significant regulatory and bureaucratic hurdles. Although the 2011 Mines and Mineral Development and Regulation (MMDR) bill seeks to improve transparency and the legislative environment, in order to attract investment, but we believe the pervasiveness of corruption and regulatory and bureaucratic obstacles will continue to prevent mining companies from achieving their full production capacity. In the past mining permits/licences were issued contingent on success in the reconnaissance phase. This exposes firms to high levels of risk. However, the MMDR bill would allow the granting of non-exclusive reconnaissance licences and high-tech reconnaissance/exploration licences based on ability and intention to develop an area. Mining companies would be required to submit and display all data pertaining to the granting, extension, termination and planning of operations in the public domain.

Full Report Details at

The bill also calls for a system for bidding licences, which would greatly heighten transparency in the sector. The current system of 'first-come, first-served' in distributing natural resources for development is fraught with potential conflicts of interest and can be easily abused by officials. As of April 2012 the government decided still to distribute natural resource assets in this manner, despite a Supreme Court ruling stating that all national resources must be distributed only through auction.

India's mining sector is highly stratified. There are a number of giant, mostly state-owned mines that have an outsized impact on total output, in addition to a large number of small and inefficient mines operating illegally. According to Austrade, 5% of operating mines in India produce about 50% of the country's mineral output. Given the sector's economic importance, there is significant government involvement, with the sector dominated by state-owned companies or public sector undertakings (PSUs) such as National Aluminium Corp (NALCO), Steel Authority of India Ltd (SAIL), National Mineral Development Corp (NMDC) and Coal India. These four companies account for around 85% of India's total value of mineral production and are the main producers of key commodities such as coal, iron ore, aluminium, copper and gold.

Report Table of Contents:

BMI Industry View
Industry Forecast
- Bauxite: Strong Growth, With Risks To Downside
- Table: India - Bauxite Production Forecast
- Coal: Growing Imports On Enduring Challenges
- Table: India - Coal Production Forecast
- Iron Ore: Production Hit By Mining Ban
- Table: India - Select Iron Ore Projects
- Table: India - Iron Ore Production Forecast
- Zinc: HZL In Driving Seat
- Table: India - Largest Zinc Mining Projects
- Table: India - Zinc Mine Production Forecast
Industry Risk Reward Ratings
- Table: Asia Mining Risk/Reward Ratings
Market Overview
- Challenges To Plague Miners
- Table: India - Mining Industry Value And Production Forecasts
Regulatory Development
- Liberalisation No Panacea For FDI
- Table: Key Changes In Licence/Lease Granting In 2011 MMDR Bill
- Table: Royalty Rates Under Proposed Mining Bill
- Table: Political Overview
Commodities Forecast
- Iron Ore: Rally To Fade In Q413
- Steel: Supply Glut To Endure
- Aluminium: Surge Gives Way
- Copper: Weak Outlook
- Lead: Short-Term Weakness
- Nickel: Still The Laggard
- Zinc: Still A Surplus Market
- Table: Select Commodities - Performance And BMI Forecasts
- Table: Global Commodities Strategy
Competitive Landscape
- Private Participation To Stay Muted
- Table: India - Select Listed Mining Companies
Company Profile
- Coal India Ltd
- Table: Coal India Ltd - Key Financial Data
- Hindustan Copper
- Table: Hindustan Copper - Key Financial Data
- Vedanta Resources - Q1 2014
- Table: Vedanta Resources - Key Financial Data
Regional Overview
Global Industry Overview
- Downturn To Continue Into 2014
- 1. China Slowdown To Drive Mining Moderation
- 2. Frontier Mining Increasingly Challenging
- 3. Mining Services Firms Facing Tough Outlook
- But Opportunities Still Exist
- 1. Asian Outward Investment Continues
- 2. Private Equity Entering The Mix
- 3. Global Thermal Coal Demand Still Growing
- Industry Forecast Methodology
- Sources
- Risk/Reward Rating Methodology
- Table: Mining Risk/Reward Ratings Indicators
- Table: Weighting Of Indicators

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

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