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Nationalization of entire Mining Industry in the Country..
The Indian economy has an underground economy, with a 2006 report alleging that the Swiss Bankers Association suggested India topped the worldwide list for black money with almost $1,456 billion stashed in Swiss banks. This amounts to 13 times the country’s total external debt. There are a number of unresolved policy issues, which deserve serious consideration by the union and state governments. When we observe the reports, black money statements are increasing every year.
Mineral exploration is the key of the mining sector which is base of the National development in each and every industry whether the mining products are directly or indirectly involved. We should frame the central rules in such a way that all natural resources of the country belongs to the Central and State governments only. Natural resources – Mines are the Major category in our country. Our governments must not encourage and handover the mines to the private or public sector. In our country in the private mining sectors there are more than 700,000 employed people. When we observe the black money scams and black money growth, Mining and its connected departments are playing major role.
Mining is (are) one of the core sectors that drive growth in the economy. Regulatory, administrative procedures, inadequate infrastructure facilities, sustainability are the major facing factors in our country. It contributes to GDP, and also acts as a catalyst for the growth of other core industries like power, steel, cement and many., which in turn, are critical for the overall development of the economy. Mining sector has every time associated with scams, conflicts, violence and ecological degradation. At present, 50% of India’s total mineral production (including oil and gas) in value terms is contributed by seven key mining states — Odisha (9.6%), Andhra Pradesh (9.0%), Rajasthan (7.9%), Chhattisgarh (7.8%), Jharkhand (6.5%), Madhya Pradesh (4.8%) and Karnataka (3.6%).
Nationalization of entire Mining Industry in the Country..
Hence the natural sources of the mines must be under Central and State Governments only. If the central govt. concentrates more on the mining sector, then the unemployment problem for the uneducated and educated people will be solved to a great extent. All Mining industries should be under very strict controlling by the central and state governments and local bodies. Because mining sector involves the biggest(s) and maximum number of scams.
Our country produces as many as 90 minerals, which includes 4 fuel minerals, 10 metallic minerals, 47 non-metallic minerals, 3 atomic minerals and 23 minor minerals (including building and other materials). The Mineral Development and mining sector is a significant contributor to the India’s GDP as there is a strong correlation between growth in same and the manufacturing sector – making it a catalyst for the growth of basic industries such as power, steel, cement and many.
Government of India liberalized the grant of licenses and leases for most of the minerals except atomic minerals and Hydrocarbon energy minerals under the National Mineral Policy, 1993.
Basically the mining department should be branched as –
1.) Non fuel Metallic minerals. Ex: iron, copper, lead, gold, silver, Tin, Cobalt, Lithium, Germanium, Gallium, Indium, Niobium, Beryllium. Tantalum, Tungsten, Bismuth, Selenium etc.,
2.) Non fuel Non Metallic minerals. Ex: Limestone, mica, gypsum, dolomite, asbestos. India presently produces a total of 24 non-metallic minerals. The non-metallic minerals can be further subdivided into
a) Fertilizer Minerals; b) Flux and Construction Minerals; c) Ceramics and Refractory Minerals; and d) Minerals with Export Potential.etc.,
3.) Fuel Metallic minerals. ex: Uranium, thorium.
4.) Fuel Non Metallic minerals.
5.) Precious and semi precious stone minerals include both metallic and non metallic nature, ex: diamonds, emeralds, ruby etc.
6.) Artificial minerals – like wood Coal and bi products of the industries.
7.) Marine water minerals: Extraction and easy processes will be with solar power only.
8.) Marine ground and underground minerals. Extraction involves with robots and heavy robotic machinery only.
Nationalization of entire Mining Industry in the Country..
The last 7th and 8th are most complicated but having great unbelievable sources of both Non metallic and metallic nature of extractions in future.We need to concentrate to invent new technology on those extractions of minerals too.
The input of resources into production stream is also huge in some cases, for example inputs for 1,000 kg primary aluminum production requires more than 5,000 kg of bauxite ore, 13,000 liters of fresh water, 27,500 liters of sea water, 15,711 kWh of electricity consumption. It therefore depicts that mining of such mineral is not limited to mineral alone, but it is highly intensified resource use of other resources.
India has long been recognized as a Nation well endowed in natural mineral resources. On the basis of volume of production, India ranked 4th amongst the mineral producing countries, behind China, United States and Russia. The demand for any kind of mineral is dependent on the demand of the user industry, which is also produced in bulk.
There is no doubt that concentration on mining and investments can become a positive catalyst for improving livelihoods of the local populace (population), bringing in much needed investment job and wealth creation, and government revenues. This will help in investing and in helping local communities by building Roads, Water tanks & ponds, Electrical power supply, Schools, Colleges, Hospitals, Healthcare facilities, providing or allotting houses /quarters /shelters for the people, Social and commercial attitudes in the people and etc.., Mineral exploration is key to attracting investment in the mining sector. According to this only our National Budget can be framed in a best way.
Nationalization of entire Mining Industry in the Country..
Private mining sectors will face every time problems in lease grant permissions, clearing forest depart permissions, Land acquisitions, investments, Local bodies problems, Local people objections, taxes, revision of royalty rate and stamp duty, duties/cess, controlling the environmental hazards and many and finally leads to very huge amounts of corruptions every year in every related field or departments.
Number of legally reporting mines during the last decade were around 3000 to 3200. During 2010-11, it was 2928, out of which, 573 were fuel mines, 687 were mines for metals, and 1668 mines for extraction of non-metallic minerals. Of the total number of about 90 minerals, the three key minerals are coal, limestone and iron ore. There are 560 Coal mines (19% of total number), 553 limestone mines (19% of total number) and 316 iron ore mines (11 % of total number). They comprise about half of the total number of legally reporting mines. The number of mines engaged in extraction was also significant in cases of bauxite -189, manganese – 141), dolomite -116, Steatite -113. As regard to production of these three key minerals, India ranks 3rd in coal production, 3rd in limestone production and 4th in iron ore production, in the world as of 2010.
Further, to assess the domestic growth potential for mining sector in India, we can also look at the future growth potential of its key consumer industries like cement, steel, copper, etc., India continues to be largely self sufficient in minerals which constitute primary mineral raw material to industries There should be infrastructure of rail / road connectivity to the mines, which is ultimately useful for the people to connect throughout India for their development. Remote areas and cities elsewhere will get good communicated and transporting facilities. Hence the Central Mining department must be like the Indian Railways, and there should be a separate budget like Railway Budget. It may also be mentioned that only 10% of the total hard rock area in the country has been explored so far leaving a great scope for discovery of new deposits through detailed exploration.
Nationalization of entire Mining Industry in the Country..
India is characterized by a large number of small deposits of metallic and non-metallic minerals and as a consequence, a considerable part of mining activities comprises of small–scale mining, working in small deposits and also operating small mining leases granted in large mineral deposits. Most of the minor mineral leases granted are also mined in small mines. The small mines are located throughout the country mostly in rural and forest areas and are operated seasonally but provide employment to the rural people during a large part of the year. The small mines contribute a fifth of the total value of the metallic / non-metallic mineral sector and provide 38% of the total employment in this sector. Nearly 84% of the metallic and nonmetallic (non-fuel and non-atomic) minerals are mined in small mines. The small mines operate with minimum infrastructural support and are responsible for major part of operational and environmental shortcomings attributed to the mining industry. Except that of few small mines of high value precious minerals, the small mines by and large may be categorized as mining of small deposits which are developed by forming benches with heights ranging from 1.0 meter to 4.0 meters with an annual production up to 50,000 tonnes. These mines include manual as well as semi-mechanized operations where jack hammer drills, wagon drills; small front-end loaders, small hydraulic shovels and tipper- trucks etc are deployed for removal of thick over burden. The small mines largely contribute to low value and high volume mineral production which cannot be imported but is needed for essential activities.
Nationalization of entire Mining Industry in the Country..
There is no uniform standard definition of small scale mining. It is however different from artisan mining. In India, there is a strange phenomenon of small mines in large deposits and this is against the principles of scientific mining and economics, as this negates the advantage of economies of scale in operations. Usually, the mineral deposits of limited spatial extent, discontinuous in nature with narrow widths and shallow in depth qualify for small mining operations. The extent and measure of mining operations and availability of mineral reserves defines its size and shape attributing as small deposits. The geological disposition of mineral deposits suitable for small scale mining can be divided into the following categories: a) Lenticular bodies including those occurring on en-echelon pattern as well as those with composite veins for e.g. quartz-feldspar bearing pegmatite’s and quartz reefs b) Lenses, veins and pockets of modest and small sized bodies for e.g. zoned pegmatites, manganese and iron ore, graphite, calcite etc c) Alteration aureoles as ellipsoidal pockets small bog type for e.g. china clay, silica sand d) Pegmatite’s containing rare metals and gem stones, reefs and veins e) Placer and residual mineral deposits of hill and valley wash float ores, river placer for e.g. hyalite, sillimanite, clay, iron and manganese float ore deposits Mineral deposits are worked on a small scale ordinarily, when they are too small not to be worked by large scale mining. In view of this, the following definition as propounded by MGMI may deserve consideration. —
Nationalization of entire Mining Industry in the Country..
“The small mineral deposits are those which would permit economic operations of only small scale mines for reasonable life-time with future provision for expansion and not merely short time intensive exploitation.” On the other hand, depending upon, whether the mineral is of high bulk / low value or low bulk / high value, the mineable reserves of small deposits for small scale mining could be as follows: a) Low bulk / high value mineral (e.g. kanite, barites, graphite, phosphate ores, apatite, manganese chromite, magnesite, talc / soapstone and china clay / fireclay etc.) b) High bulk / low value and medium value minerals (e.g. bauxite, iron ore, limestone dolomite, storing sand, silica sand, molding sand and lime shale etc.) The small mineral deposits are available as (a) erratic and inconsistent deposits (b) as lens / vein and pockets and (c) as cavity and other deposits. The precious / semi-precious minerals like emeralds, garnet opal, diamond, tin and tungsten would qualify for first category, whereas most of the non-metallic minerals will fall in the second category and the deposits of agate, jasper, perlite, lime-kankar etc. will be placed in the third category. The main characteristics for categorizing a small mine may be as follows: i. The nature of mining operation could be either purely manual or semi-mechanized open pit operations or manual underground operations. ii. The average daily employment may not usually exceed 40. iii. The depth of open pit may be up to 50 m from surface iv. The annual Pit Mouth Value (PMV) of the ore produced may be up to Rs 1 crores with annual production ranging from 1,000 to 5,000 tonnes
Nationalization of entire Mining Industry in the Country..
Why Small Scale Mining for Small Mineral Deposits ? Many times, reserve of high grade and low grade deposits are too small and large scale mining is not possible. The small investors can invest small capital to work these deposits, even if the returns are not high. Value–wise, the contribution of small mines is about 21% of the total value realized from mineral sales. The small mines also contribute significantly to the economic activity besides a number of benefits and advantages, which are:
i. Because of the configuration and disposition of small deposits with simple geographical extent and lower grade, it warrants economic mining by small scale open cast operations
ii. Low capital expenditure and low working cost involved in development activity
iii. Short gestation period to achieve production
iv. Availability of manpower in rural areas and boosting employment generation
v. Augmentation of infrastructure facilities and community development and optimum exploitation of mineral resource for the local needs Constraints in Small Scale Mining the various constraints, which come in way of viable small scale mining, are as follows:–
Nationalization of entire Mining Industry in the Country..
1. Deficient techno-economic feedback: The technical information on small deposits is meager in survey reports in most of the cases and in the absence of proper geological appraisal, this leads to loss of investment by small entrepreneurs.
2. Constraints in mine-planning: In the absence of proper exploration, the mine plan that is prepared is of poor quality and as such, the scientific mining remains a casualty adversely affecting conservation aspects.
3. Financial constraints and risks: Small investors are unable to make requisite level of investments required for scientific development of mineral deposits. Also the banks and financial institutions are reluctant to grant loans to small mines owners, as they prefer loans with commitment on investment in mining machinery. Other financial constraints include payment of high cost of land, cost of preparation of mining plan, EIA / EMP and obtaining environment or forest clearances etc.
4. Poor infrastructure and communication facilities: As the small mines are generally located in remote rural areas, where there is a lack of good roads and other transportation facilities. Sometimes there is non-availability of power and communication facilities as well.
5. Marketing constraints: Small mines generally lack suitable mineral processing know how to maintain the requisite quality and grade of the ore production and in view of this, there are irregular off take of the material by the consuming industry.
6. Cost effective development: This often leads to haphazard and dumping of wastes in the vicinity of the mines to save transport costs and all these practices hamper reclaiming of the damaged land.
Nationalization of entire Mining Industry in the Country..
- Unawareness to environmental protection and pollution control: Small mines often ignore environment protection measures as well as lack social welfare amenities. 8. Lack of technical expertise: Small mines generally do not employ qualified mining engineers and geologists, whom they cannot afford but this leads to unscientific and unsafe operations. Due to many Environmental and Social Aspects, departmental problems, local or technical problems of many Small Scale running mines are being closed. We have to concentrate on these mines also. These small mines are usually developed as small open cast pits forming benches in overburden and ore with heights ranging from 1.0 meter to 4.0 meters. In case of underground mines, it is opened by incline with levels at 10-15 meters. Vertical intervals in depth and winzes at 15-30 meters intervals along strike connecting different levels in depth. In the open cast operations, jack hammer drilling and blasting is involved manually to remove overburden and or winning the ore.
Contribution of Small Mines in Indian Context: The small mines consist of both major and minor minerals. The minor mineral concession largely involve small mining activity for construction materials but a considerable contribution in mineral production of metallic and non-metallic (major minerals) is attributed to small mines. Out of the total working mines of around 3,000 in number of major minerals (excluding atomic, minor and fuel minerals), 84% of the mines are small mines which fall in category “B’ mines. These pertain to 46 minerals as per list given below: List of Minerals Produced by “B” Category Mines As per the Source of Indian Bureau of Mines List of Minerals Produced by “B” Category Mines are… Agate, Apatite, Asbestos, Ball Clay, Barytes, Bauxite, Calcite, Chalk, Chromite, Clay (other), Diamond, Dolomite, Dunite, Felsite, Felspar, Fire Clay, Fluorite, Garnet, Gold, Graphite, Gypsum, Iron ore, Kaolin, Kyanite, Laterite, Lime kankar, Lime Shell, Limestone, Magnesite, Manganese ore, Mica, Ochre, Vermiculite, Pyrophyllite, Pyroxenite, Quartz, Quartzite, Rock Salt, Sand (other), Shale, Silica Sand, Sillimainte, Slate, Cassiterite (tin ore), Phosphorite (rock phosphate), Steltite / Talc / Soapstone.
Nationalization of entire Mining Industry in the Country..
The status of mining lease as on April 1, 2009 indicates existence of 8,670 leases in 23 states covering up to 60 minerals (metallic and non-metallic). The small mines also contribute to the export of mineral significantly in respect of bauxite, limestone, chromite, feldspar manganese ore, quartz, quartzite, gypsum, mica and silica sand. The mining lease area varies from less than 1 hectare and up to 10 hectares covering most of the small mines and the reserves do not normally exceed 2 million tonnes, being more for high bulk / low value minerals. The production per annum normally is a maximum of 50,000 tonnes. In addition to distribution of small mines over scattered smaller deposits, there are also a large number of small mines located in rich mineral belts, mainly of those bulk minerals like limestone, dolomite, fireclay, china clay and silica sand etc. A close look on these small mines reveals a mushroom growth and such mines may be categorized as “cluster” serving the industry in the vicinity of mining belt. Therefore, apart from susceptibility of small mines confining over small deposits, the sustainable development of small mines with “cluster mining” also deserves merit, as development of small deposits on a cluster basis is practically nonexistent. The OMS for manual mines is 0.8, while for those mines using some machinery may go up to 2.0. However, there are a large number of small mines leases of less than 5 hectares in existence but in the interest of sustainable development of such small mines, “cluster mining” approach will be necessary. Also the minimum mining lease area for major minerals in small mine sector need to be considered to be 10 hectares (instead of 5 hectares) which can accommodate existing mining leases subject to its population on spatial and geological considerations for a single mining lease. Issues/Concerns and Way Forward………
Nationalization of entire Mining Industry in the Country..
- The Indian mining sector (non-fuel) consists of large number of small mines and their contribution is significant in total mineral production of metallic and non-metallic minerals, besides having export potential. But somehow, the production is nearly stagnant for the want of capital required for expansion of the mining activity. The banks and financial institutions are generally reluctant to give loans to small mine owners without having heavy equipment and machinery and this is coming in the way of augmentation of mines capacity. Therefore, some relaxation by the financial institutions to small mine owners need to be considered based on the valuation of mineral reserves.
- Large numbers of small miners are not able to employ qualified mining engineers and geologists and this has led to unscientific mining in number of cases in violation of MMDR Act and rules. The respective state governments and Indian Bureau of Mines may have to be proactive in this regard.
- There is a large number of non-working mines in various mining belts in the country due to uneconomic working, high stripping ratio, grade and recovery constraints and also forest and environment clearances and poor infrastructure facilities. A critical analysis of small mining sector to address various reasons behind non-working and dormant situation of small mines needs to be undertaken by the state governments.
Nationalization of entire Mining Industry in the Country..
4. Though the National Mineral Policy (NMP 2008) has envisaged cluster mining approach in small mines but the same remains unimplemented. Operation of cluster mining over large mineralized areas like limestone, dolomite, bauxite, slate, clay belts, can be considered in respect of following identified type areas – a) Indrawad – Jaitaram China clay belt in Nagaur district, Rajasthan; b) Kolayat – Mudh-kotri – Guda fireclay belt in Bikaner district, Rajasthan; c) Quartz feldspar mica belt of Ajmer – Bhiwara in Rajasthan; d) China clay belt of Singhbhum district in Jharkhand; e) Graphite mines in Bolangir districts, Odisha; f) Jangir – Chopa lime stone belt in Chhattisgarh; g) Limestone of katni – Jhukehi and Satna belt in Madhya Pradesh and Bhagokot area of Karnataka; i) Bauxite leases in Jamnagar and Kutch districts in Gujarat; j) Limestone mines in Yeotmal district and Western Ghat bauxite in Maharashtra; k) Soapstone and Baryties mines in Andhra Pradesh; and l) Gypsum and quartz- feldspar mines in Tamil Nadu.
5. A mechanism for amalgamation of small leases into one single lease needs to be evolved along with the modalities for some relaxation in forest and environment clearance. It is noteworthy that till 2010, small mines of less than 5 hectare areas were exempted from environmental clearances. The same rule needs to be applicable again.
6. Granting of very small leases by sub dividing of a large deposit should be avoided by the state governments in the interest of mineral conservation and minimum land degradation. 7. The minimum area for grant of a mining lease for major mineral needs to be enhanced to 10 hectares.
Nationalization of entire Mining Industry in the Country..
Several more small mines, running into over a lakh, all of which translate into direct employment. The mining sector contributes to the prosperity of the nations, the finite and non-renewable resources, resulting in economic growth of the country. Mining is a significant sector of the Indian economy, For any nation, Minerals constitute the back-bone for economic growth and India has been eminently and enormously endowed with this gift of nature. The total mineral potential area in India covers 5.75 lakh sq. km., of which an area of only 75,000 sq. km. has been explored in detail so far. Both the above factors make this industry a very charming and alluring option for our country.
The mining resources are increasing due to the aerial surveys and other type of technical surveys. The geologist’s expectations are a number of times of the above figures. Still we have to get total survey details. There should the Mineral resources details in step wise order like.. Village Mineral resources dept, Mandal resources dept, Dist Mineral resources dept, State Mineral resources dept, Central Mineral resources dept – apart from the state and central mining resources survey departments. Extended area of each and every type of different mines with survey numbers should be recorded there. Each and every Small or big mines details should be under the control of the state or central governments. Above 10 hectares of mines should be under the control of the central government only and Below 10 hectors under the state government. Precious and semi precious stone mines belong to the private sector only. Because for these mines careful observing of the manual power is needed, and is ultimately for the National wealth.
Nationalization of entire Mining Industry in the Country..