Overview: Mining Industry

India has been exceptionally gifted by nature with minerals, which are the foundation of any country's economic success. There are numerous indications that the country has been exploiting minerals like coal, iron ore, copper, and lead-zinc from the beginning of time. However, the first known mining history in India dates to 1774, when the East India Company authorized an English Company to mine coal in Raniganj. In the year 1880, M/s John Taylor & Sons Ltd. began gold mining in the Kolar Gold Fields. Just seven years after the first oil well was ever drilled anywhere in the globe, in Pennsylvania State, USA, in 1859, the first oil well was ever dug in Digboi.

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However, up until the start of the twenty-first century, mining activities in the nation were still small-scale and of a rudimentary kind. Following that, as industrialization advanced, the demand for and consequently the production of numerous minerals rapidly increased. Following India's independence, mining has rapidly expanded as a result of the impact of subsequent Five Year Plans. The production of minerals will be increased throughout the 8th Five Year Plan and beyond thanks to ambitious plans in the coal, metalliferous, and oil sectors.

Mineral Resources and Sustainable Development

Through socio-economic benefits, foreign exchange earnings, employment and livelihood, infrastructure development, communication, the provision of essential services, and the supply of raw materials for green technologies, the mineral resource sector has the potential to significantly contribute to the achievement of the SDGs. As was already said, the sector of mineral resources has the capacity to influence economic development, social inclusion, and environmental sustainability. Environmental sustainability is impacted by the effects on the land, water, climate, and human populations as well as the flora and fauna that depend on these resources. This sector has an impact on SDG6 (Clean Water and Sanitation), SDG15 (Life on Land), SDG7 (Energy Access and Sustainability), and SDG13 (Climate Action). The mining industry can be problematic for livelihoods and human rights, but it also offers local populations near the mines and beyond economic opportunity. To achieve SDG1 (End Poverty), SDG5 (Gender Equality), SDG10 (Reduced Inequalities), and SDG16, the sector will benefit from an inclusive and equitable strategy (Peace, Justice and Strong Institutions). Generation of economic possibilities is also the key towards attaining SDG8 (Decent Work and Economic Growth) (Decent Work and Economic Growth). Through this industry, numerous direct and indirect economic advantages might be realized. In order to achieve the SDG9 (Infrastructure, Innovation, and Industrialization) targets, the sector can foster innovation, which will lead to the creation of infrastructure for communication, transportation, and water. There is a chance for collaboration (SDG17: Partnership for the Goals) within and outside of the sector to minimize waste and act as a driver for reuse and recycling (SDG16: Responsible Consumption and Production) through a circular economy approach because the sector provides raw materials that are essential for development.

Why You Should Invest In the Mining Industry in India

• By 2024, the Indian government wants to raise coal production to 1 billion tonnes.
• Mineral concessions (mine leases, prospecting licenses, and mining leases) will be awarded to firms interested in mining or in obtaining the raw materials for their downstream industries through auctions.
• To speed up the clearances and approvals procedure, an Inter-Ministerial Group facilitator was established.

The revenue share model, which is currently being developed for the exploration of blocks specified by the Geological Survey of India, is open to exploration companies. The National Mineral Exploration Policy, 2016, which was released in July 2016, has made this possible. GSI has already designated about 100 blocks for auction.

• With the 2019 launch of the National Mineral Policy, India offers significant investment potential.
• Iron ore, bauxite, chromium, manganese ore, baryte, rare earth elements, and mineral salts are all abundant in India.
• With mining licenses issued for a longer and more reliable 50-year period, India has significant mineral potential.
• Due to the probable growth in production of electric car batteries, the demand for lithium is predicted to more than double to 117,400 mt by 2024 from an estimated 47,300 mt in 2020.
• Over the next 15 years, there will be a significant increase in the demand for several metals and minerals.
• Convenient exports are made possible by India's strategic location.
• The policy for giving domestically manufactured iron and steel products preference in government procurement was updated in 2019.
• There are 914 total steel facilities in the country that will be manufacturing crude steel in 2019–20, and 66.56 MT of finished steel will be produced there from April–December 2020.
• Steel consumption in rural India increased from 19 kg in 2019–20 to 21.5 kg per capita in 2020–21. The Government of India wants to raise steel usage and awareness in rural areas.
• The goal of the National Steel Policy 2017 is to expand India's steel manufacturing capacity to 300 million tonnes by 2030–2031, reduce greenhouse gas emissions, and boost per capita steel consumption to 160 kg.
• By 2024–2025, the GOI hopes to invest more than 111 lakh crores in the National Infrastructure Pipeline (NIP), which will both boost demand for steel and lower its manufacturing costs. More than 25,000 crores will be spent on the slurry pipeline. The procedure for installing a slurry pipeline has been made simpler.
• To lessen the steel industry's reliance on coke and cut greenhouse gas emissions, the government is working on programs like coal gasification and the National Hydrogen Mission.
• To lower the overall estimated carbon emissions by one billion tonnes through 2030, all coal companies have embraced bio-reclamation of mined-out land through a large tree-planting drive. The goal is to plant more than 12000 hectares of land over the next five years, which will have a potential annual carbon sink capacity of more than one lakh tonnes.
• First Mile Connectivity (FMC), a significant endeavour by the coal industry to reduce environmental pollution, involves the conveyor belt transportation of coal from coal handling plants to silos for loading. The method stops the movement of coal along roads. By 2023–2024, 39 of these projects with a total investment of more than INR 13,000 crores are expected to be completed.
• CIL alone will increase its mechanical loading and transport of coal from the current level of 120 million tonnes to 565 million tonnes by 2023–24 under FMC Projects.
• The FMC projects will reduce annual diesel costs by INR 2100 crores. By reducing the number of vehicles on the road by 2770 trucks per hour, it will be possible to significantly reduce carbon emissions.
• The First Mile Connectivity (FMC) project refocuses government attention on hassle-free coal transportation from the point of production to the point of consumption. According to estimates, Coal India will invest INR 14,200 crores for its 49 FMC projects by FY 2023–2024, split into two phases. CIL has installed Rapid Loading Systems (RLS) in 19 of its mines to facilitate the transportation of coal even more.
• CIL is building 21 more railway sidings across four of its subsidiaries, including both Greenfield and brownfield ones, at an estimated cost of INR 3,370 crores. These sidings are expected to be operational by FY24. By FY24, CIL wants to transfer around 555 MT of coal annually using machinery.

How to Make Profits from the Mining Business?

You are now prepared to start your mining company. You need to know how to profit from your business at this point. Because you will be investing very little money in the necessary mineral mining, there is a good chance that your firm will be profitable. All you have to do is mine minerals and sell them for more money.

You can identify the high-demand minerals that are accessible to you and mine them to increase your revenues. Then, when you sell anything, you may expect to make more money. The minerals that yield greater profitability are also evolving with time. As a result, you must ensure that you are knowledgeable about them.

When you are running a mining company, you will also face several difficulties. The mining company you establish can give you satisfying outcomes if you can effectively plan to overcome such difficulties.