Compressed Product Life Cycle: Models of Big Screen Tvs, Cell Phones, Lcd Displays, Mp3 Players, and Other Consumer Products Seem to Be Reaching the Maturity Stage of Their Life Cycle More Quickly Than Earlier Versions
Unlocking the Potential of the Indian Minerals Sector
Strategy Paper for the Ministry of Mines
November 2011
3
Contents
1. Preamble 2. Increasing relevance of the global minerals sector and implications for India — 2.1 Three key trends in the minerals sector — 2.2 Implications for India 3. Performance of the Indian minerals sector — 3.1 Performance on output parameters — 3.2 Performance on input parameters 4. Value in unlocking the potential of the Indian minerals sector 5. ‘Transformining’ the Indian minerals sector — Six priorities — 5.1 Expanding resource and reserve base by stepping up exploration and aiding international acquisition of strategic minerals — 5.2 Reducing permit delays to create a more favourable policy environment — 5.3 Setting up core enablers for mining—infrastructure, human capital and technology — 5.4 Ensuring sustainable mining and development — 5.5 Creating an information, education and communication plan — 5.6 Establishing the right governance structure for effective implementation 5
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1. Preamble
With global demand for minerals consistently outpacing supply, recent years have seen an unprecedented rise in commodity prices. In response, companies worldwide have explored all possibilities to boost supply, including increased mining activity in new geographies such as Africa. As the relevance of the mining sector grows globally, the Indian mining sector11is lagging behind, with just 1.2 per cent contribution to GDP over the last decade (as opposed to 5 to 6 per cent in major mining economies) and very low exploration spend per square kilometre (USD 9 (` 400) compared to USD 124 (` 5,580) for Australia and USD 118 (` 5,310) for Canada). India has initiated several progressive policy measures, putting itself in a good starting position to undertake the transformation of the mining sector. Unlocking the potential of the mining sector in India could add around USD 210
Strategy Paper for the Ministry of Mines
November 2011
3
Contents
1. Preamble 2. Increasing relevance of the global minerals sector and implications for India — 2.1 Three key trends in the minerals sector — 2.2 Implications for India 3. Performance of the Indian minerals sector — 3.1 Performance on output parameters — 3.2 Performance on input parameters 4. Value in unlocking the potential of the Indian minerals sector 5. ‘Transformining’ the Indian minerals sector — Six priorities — 5.1 Expanding resource and reserve base by stepping up exploration and aiding international acquisition of strategic minerals — 5.2 Reducing permit delays to create a more favourable policy environment — 5.3 Setting up core enablers for mining—infrastructure, human capital and technology — 5.4 Ensuring sustainable mining and development — 5.5 Creating an information, education and communication plan — 5.6 Establishing the right governance structure for effective implementation 5
7 7 9 11 11 12
15
17
18 22 24 27 28 29
4
5
1. Preamble
With global demand for minerals consistently outpacing supply, recent years have seen an unprecedented rise in commodity prices. In response, companies worldwide have explored all possibilities to boost supply, including increased mining activity in new geographies such as Africa. As the relevance of the mining sector grows globally, the Indian mining sector11is lagging behind, with just 1.2 per cent contribution to GDP over the last decade (as opposed to 5 to 6 per cent in major mining economies) and very low exploration spend per square kilometre (USD 9 (` 400) compared to USD 124 (` 5,580) for Australia and USD 118 (` 5,310) for Canada). India has initiated several progressive policy measures, putting itself in a good starting position to undertake the transformation of the mining sector. Unlocking the potential of the mining sector in India could add around USD 210