The Ministry of Mines is responsible
for survey and exploration of all minerals, other that natural
gases, petroleum and atomic minerals; for mining and metallurgy
of non-ferrous metals like aluminium, copper, zinc, lead, gold
and nickel etc. and for administration of the Mines and Minerals
(Development and Regulation) Act, 1957 in respect of all mines
and minerals other than coal, natural gas and petroleum. The Government
has taken a number of steps during the last two years of its existence
to boost up the mining sector.
Its subordinate organisation, i.e. GSI and IBM, have been
armed with world class technologies to carry on survey, exploration
data collection and mine supervision work.
Mining Policy, Regulation and Conservation
The Ministry of Mines encourages greater
investment in exploration and exploitation of minerals. For this,
the National Mineral Policy needs to be reviewed in the light
of experience of investors and other stakeholders.
Recognising this need, and to further improve the investment
climate for mining in the country, a high level Committee, under
the Chairmanship of Shri Anwarul Hoda, Member, Planning Commission, has been
constituted to review the National Mineral Policy and to recommend
possible amendments to the MMDR Act.
The Committee will review
existing procedures for grant of mineral
concessions in order to streamline and simplify procedures,
prioritise critical infrastructure needs of the Indian Mining
sector, facilitate investments to meet these needs, identify ways
of augmenting State revenues, and allow issues relating to
value addition and forest and environment clearance.
A policy paper has been formulated on the allocation
of iron ore mines and it has been placed before the Hoda Committee
for consideration. The
issue of illegal mining has
been reviewed extensively with the State governments and they
have been advised to constitute task force/flying squads at the
State and district levels for taking effective measures and to
frame rules under MMDR Act expeditiously. They have been asked
to furnish quarterly returns on action taken on illegal mining.
The foreign equity holding has now been allowed
up to 100 per cent on
the automatic route for all non-fuel and non-atomic minerals,
including diamonds and precious stones.
Revision of Royalty of Major Minerals
Based
on the recommendations of a study group, rates of royalty on major
minerals (other than coal, lignite and sand for stowing) and dead
rent have been revised and notified vide Gazette Notification
dated October 14, 2004.
Reconnaissance Permit (RP)
The
policy changes in mineral sector have attracted many multinational
companies for investment in exploration of base metals, noble
metals and other scarce minerals. Till April 30, 2006, 202 Reconnaissance
Permits, covering an area of over 2,78,773 square kilometers,
have been granted. The States of which reconnaissance permits
have been approved are Andhra Pradesh (39), Karnataka (39), Rajasthan
(40), Chhattisgarh (24), Madhya Pradesh (20), Orissa (21), Uttar
Pradesh (10), Gujarat (4), Jharkhand (2), Haryana (1), West Bengal
(1) and Kerala (1). During these two years, 37 reconnaissance
permits, covering an area of 59,108 sq. kms, were granted.
Performance of Mineral Sector
The
index of mineral production (base year 1993-94=100) for the year
2004-05 was estimated at 155.1, as compared to 146.9 for 2003-04,
showing a growth of 5.6 per cent.
The Index for the 2005-06 (upto February 2006) is estimated
at 151.87. The total value of mineral production, excluding atomic
minerals during 2005-06, has been estimated at Rs. 75,121.61 crore
(Provisional), against Rs.75, 018.10 crore in the previous year.
International Co-operation
The
18th and 19th meetings of the Indo-French Working Group on Mineral
Exploration and Development, were
held to review the status of the completed projects, progress
of on-going projects and identify new projects for future co-operation.
The
10th Session of the Indo-Russian Working Group on Ferrous and
Non-Ferrous Metallurgy was held in New Delhi in November, 2004.
The Ministry participated in the Indian Mining
Mission to Iran in May,
2004, to explore business opportunities between Iran and India
in the mining sector.
The
4th Meeting of the India-Australia Joint Working Group on Energy
and Minerals was held in New Delhi in June 2005.
A high level Indian mining delegation, led by the Union
Mines Minister, visited Australia in May, 2005.
The India-Australia Coal and
Mining Forum was held in New Delhi in February, 2006.
The 2nd and 3rd Meeting of the India-Canada Joint Working Group
on Geo-sciences were held in Canada to review the progress of
the ongoing projects and to discuss new project proposals. The
Ministry signed a MoU with the Ministry of Land and
Resources, China for cooperation in the Mining sector.
The 20th World Mining Congress and Expo was
held in Tehran, Islamic Republic of Iran, in November, 2005, wherein
the Ministry of Mines, its subordinate offices and PSUs actively
participated and presented papers. A pavilion was also set up
at the Expo.
Right To Information Act
To
bring about transparency in the working of the Government, Right
to Information Act has been implemented in the Ministry.
The Ministry has prepared a compendium as prescribed under
Section 4 of Right to Information Act and displayed it on the
official website of the Ministry. For the benefit of the public,
a Facilitation Centre-cum-Public Information Office has been set
up to enable the public to access information easily.
National
Aluminium Company Limited (NALCO)
Ø National Aluminium Company Limited (NALCO), during two
years, has crossed all the previous records in areas of sales
turn over, gross margin, export earning, profit before tax and
after tax.
Ø Highest export turnover of Alumina in 2005-06 at Rs.
1,386.09 crore has been recorded, surpassing the previous highest
of Rs.1,120.90 crore in 2004-05.
Ø Highest ever domestic sale of metal of 2,58,095 MT in
2005-06 was registered, surpassing the previous best of 2,05,797MT
in 2004-05.
Ø
For
excellence in export, Nalco has bagged the prestigious Niryat
Shree award, instituted by the Federation of Indian Export Organisations
(FIEO).
Ø NALCO bagged the Top CAPEXIL Export Award
for 2004-05 and for the 18th year in succession.
Ø It has been adjudged the best Mother Plant in Orissa for the growth
of ancillary and down stream industries.
Ø NALCO’s gross sales turnover was all time
high at Rs. 5,324.20 crore in 2005-06, against Rs.4,437.97 crore
in 2004-05.
Ø NALCO has produced 48,54,253 tonnes of bauxite, 15,90,000 tonnes of Alumina
and 3,58,955 tonnes of aluminium during 2005-06.
Ø NALCO has planted 3, 99,300 nos. of trees
in all its units, compared to 2, 74,246 nos in 2004-05.
Ø
NALCO
paid a dividend of 40 per cent, amounting to Rs. 257.72 crore,
on the paid-up capital of Rs. 644.31 crore, for the year 2004-05.
Subsequently, the Company paid an interim dividend of 20 per cent,
amounting to Rs.128.86 crore, for the year 2005-06.
Ø Project activities of 2nd phase expansion
project are in progress and orders have already been placed for many of the packages and total finacial commitment
up to March, 2006 is Rs 1,323.86 crore out of the total project
cost of Rs 4,091.5 crore. The second phase expansion involves augmenting bauxite mine
capacity from 48,000 tonnes to 63,000 tonnes per annum, and increasing
the capacity of its alumina smelter from 15,75,000 TPY to 21,00,000
TPY.
Hindustan Copper
Limited (HCL)
Ø Hindustan Copper Limited (HCL) has posted a provisional
net profit of Rs. 112.52 crore in 2005-06 against Rs. 56.02 crore
achieved in 2004-05.
Ø Total Turn over during the year was 1,053.52 crore against
Rs. 559.11 crore achieved in
2004-05.
Ø In the Financial Year 2005-06, Company has made an entry
into export market and exported about 1,400 tonnes of Continuous
cast wire rod and efforts are on to enter the export market on
a sustainable basis.
Ø The Company has reduced its interest burden from Rs.
42.99 crore in 2004-05 to Rs. 35. 84 crore
in 2005-06 through repayment of
bonds and debentures and prudent fund management.
It has a target of Rs. 1,077.22 crore
sales turnover during 2006-07, 39 per cent higher than the previous year (2005-06) target. The target of Rs.
118.35 crore in 2006-07 is 17 times higher than the previous year’s
(2005-06) target.
Mineral Exploration
Corporation Limited (MECL)
Mineral Exploration
Corporation Ltd., a perennially
loss making unit, turned
around during 2004-05, making a net profit of Rs.2.44 crore, after
a gap of 14 years. The performance of MECL during 2005-06 has
been remarkable and the MoU targets for all the major parameters
have exceeded.
Ø The Company has achieved a gross revenue of Rs. 81.40
crore as against the MoU target of
Rs. 69.30 crore representing
117 per cent achievement
and registered an increase of
8 per cent when compared to the gross revenue of Rs. 75.35
crore during 2004-05. This gross revenue is the highest since inception of the company.
Ø The gross margin of the Company has been Rs. 21.02 crore
as against the MoU target of Rs. 15.00 crore, representing achievements
of 140 per cent. It is
higher by 10 per cent in comparison with gross margin
of Rs. 19.18 crore during 2004-05. This
gross margin is also highest since inception of the company.
Ø The net profit of the Company has been Rs.
5.65 crore, as against the targeted loss of Rs 30 lakh. The net profit has registered an increase by
43 per cent when compared
to the net profit of Rs. 3.95 crore during 2004-05.
It is highest during
the last 20 years.
Ø As a result of vigorous business development
efforts, MECL obtained
contractual work orders valuing Rs. 54.85 crore, as against Rs.
42.90 crore during 2004-05.
Ø It has crossed the target, carrying out
1,78,343 meters of drilling and 7,883 meters of developmental
mining.
Geological Survey of India (GSI)
Geological
Survey of India has been asked to acquire world class equipments
for effective exploration activities and accurate geo-scientific
studies. Besides its day-to-day activities, it has taken up marine
seabed surveys, geological studies in Antarctica and other geo-scientific
studies. It has published Seismetectonic Atlas of India and started
a broad band seismic observatory at Jabalpur. GSI net remains
one of the thrust areas in the field of Information Technology
(IT). Local Area Network (LAN) is under progress at all the regions
and central Headquarters. The project GSI Portal envisaged knowledge
management and business process integration through Intranet and
extranet. GSI Website (www.gsi.gov.in) disseminates updated information,
including recent findings, as well as tender inquiry notices.
During 2004-05, GSI was declared by the Government the Nodal Agency
on Landslide Studies. It has also taken up post Tsunami geological
studies in the Andaman and Nicobar
islands and Indian coast.
Besides
other minerals, GSI added 1,984 million tonnes of coal resources,
47.91 million tonnes of gold resources and 5.6 million tonnes
of manganese ore to national mineral inventory.
Survey and
Mapping
The GSI has carried out 6,292 sq. kms
of thematic mapping, 21,556 sq. kms of geo-chemical mapping and
16,745 sq. kms of ground geo-physical mapping in 2004-05 field
season.
Antarctica Studies
It
has been participating in Indian Antarctic expedition since its
inception. It led the 23rd expedition. The
24th Indian Antarctica Expedition sailed from Cape
Town in December, 2004, comprising 4 member representations from
Geological Survey of India. Till date, 19,000 sq km have been
mapped in Antarctica. A Task force, headed by GSI, was
constituted by National Centre for Antarctica and Ocean
Research [NCAOR] to initiate scientific studies in East Antarctica
and also to erect an Igloo satellite cabin at a location selected
for proposed third Indian base.
Modernisation
Ø GSI has been conveyed financial sanction for procurement
of Dhruv Helicopter from M/s HAL on single tender basis and order
for procurement has been placed. Procurement of geophysical sensors
is on.
Ø GSI has furnished revised/ modified Feasibility Report
after incorporating certain clarifications detailed by Planning
Commission to procure New Geotechnical Research Vessel with shallow
drilling capability.
Ø GSI has initiated action on acquisition of new Research
Vessel.
Recent Finds
Ø Gold: 7.92 million (m) tonnes estimated in Dona East Block,
Kurnool, Andhra Pradesh, 7.09 m tonnes estimated in Bhukia, Banswara,
Rajasthan.
Ø
Diamond: 3 kimberlite pipes discovered, 4 pipes in Raipur, Chhatisgarh
and 16 pipes in Ananthapur, AP proved to be diamondiferous. One
pipe TK-3 discovered in A.P.
Ø
Copper:
5 m tonnes of copper estimated in
Sikar, Rajasthan, 0.8 m tonnes estimated in Dausa, Rajasthan.
Ø Lead-Zinc:
16.60 m tonnes estimated in Dariba-Bethumbi,
Rajasthan,3.15 m tonnes estimated in Betul, M.P.
Ø
Manganese:
8.37 m tonnes in Bolangir and 7.67 m tonnes in Kendujhar,
Orissa.
Ø
Coal
And Lignite: Superior grade non-coking coal at Singrauli, MP and Power grade coal in
Talcher, Orissa and Mand Raigarh, Chattisgarh prospected. In a
virgin area Ramnad basin, 14 m thick lignite found opening scope
for exploration of a hitherto unexplored terrain.
Indian Bureau of Mines
(IBM)
Ø During the year 2005-06, Indian Bureau
of Mines inspected 2,538 mines exceeding the target by 10 per
cent and show-cause notices issued in 2,147 violation cases of
Mineral Conservation and Development Rules, 1988. A record number
of 1,117 violations were rectified leading to scientific mining,
conservation of minerals and protection of environment. It inspected
2,238 mines in 2004-05, pointed out 2,251 violation cases and
rectified 1,125 cases.
Ø During the year, Indian Bureau of Mines
approved 536 Mining Plans and 284 Schemes of Mining, as compared
to 382 mining plans and 289
schemes of Mining of last year.
Ø Updation of National Mineral Inventory
as per the United Nation Framework Classification (UNFC) in respect
of 65 minerals as on April 1, 2005, have been taken up and inventory
updated for 15 minerals.
National Mineral Awards
During
the year 2004-05, the National Mineral Awards 2002 were presented
to 18 outstanding scientists / technologists, in recognition of
their meritorious services and contribution in their respective
fields. The National Mineral Award for Excellence - 2002 was conferred
on Dr. Harsh K. Gupta, Secretary, Department of Ocean Development.
The National Mineral Awards for 2003 were also given during the
year to 26 scientists, engineers and technologists. The Awards
for 2004 were presented to 22 outstanding geoscientists and technologists
in March, 2006.
India Mining Summit 2005
India
Mining Summit 2005 was organised by Federation of Indian Mineral
Industries (FIMI) at Bangalore in February, 2005, to provide interaction
between the Government and the prospective miners/ mining machinery
manufacturers on the policy issues.
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