nmp india

An article I found...

http://www.live-pr.com/en/india-mining-report-q-r1048247707.htm

India’s mining industry continues to grow in economic importance. In June 2008, a report from financial services company Edelweiss predicted that the industry should reach a size of almost US$30bn by the end of the 2012 fiscal year – a figure equivalent to around 2.5% of GDP.



The report noted that India has significant amounts of natural resources, which should allow
it to develop a world-class mining industry. However, the report also underlined the fact that India would need to bring in a more conducive regulatory framework and attract further investment in exploration, mine development and infrastructure in order to allow the full potential of its mining industry to be realised.



In a positive move for the sector, in March 2008, the Indian cabinet approved the National Mineral Policy (NMP) 2008, which should do much to boost foreign direct investment (FDI) in mining. At the same time, the cabinet also approved the setting-up of an independent dispute resolution tribunal to be known as the Mining Administrative Appellate Tribunal. BMI believes the approval of the NMP will be a clear boon for the sector.



India is home to a myriad of metals and minerals. Globally, the country is the largest producer of sheet mica, the third-largest producer of coal, the fourth-largest producer of iron ore and the fifth-largest producer of bauxite. Besides these natural resources, India also hosts significant reserves of copper, zinc, gold and about 26 other metallic and minor minerals. The Indian mining sector is largely state-dominated, but the government is now seeking a phased withdrawal of its participation from the non-strategic metal sector in order to encourage private players to take the centre stage.



India’s economic prospects and rich geology have long captured the interest of foreign companies.



However, there is only a small presence of foreign mining firms whose investments would help upgrade the Indian mining-related technology. A new and much anticipated mining policy is on the horizon. It seeks to ease excessive bureaucratic influences while issuing or transferring mining leases and permits.



The policy also aims to encourage domestic and overseas players to invest in the exploration of precious metals. In addition, the government is taking active steps to encourage foreign investment in the mining industry, with the investment target for 2007-2009 pegged at US$22.37bn.



Non-uniformity of rules and regulations across the country characterises Indian mining laws. The states hold the sole licensing authority for most minerals, except for iron ore and uranium, which require prior consent from the central government. States can also create their own qualifying conditions and most of them hold discretionary powers to terminate a mining lease, or to take ownership of a mine on grounds of non-performance, or environmental or labour-related reasons.



Supreme Court approves mines In August 2008, India’s Supreme Court approved two controversial mining projects – Sterlite Industries’ bauxite mine at Lanjigarh and POSCO’s iron ore mine and steel plant at Jagatsinghpura. The move comes despite protests from environmentalists, farmers and indigenous tribes, who have threatened to appeal to the prime minister in an attempt to stop the mines from being built.



Spotlight on the NMP This quarter, BMI sets out the key policy areas covered by India’s National Minerals Policy, which was approved by the government in April 2008. We believe the NMP will be a boon to India’s mining sector, as it seeks more foreign direct investment.



Industry Forecast The pace of new exploration initiatives in the Indian mining industry has been rather slow – often as a result of excessive paperwork and confusing regulations. The new mining policy is expected to address these gaps in the industry and encourage private players to go beyond exploring traditional minerals to fully leverage the richly endowed natural diversity of the country. According to BMI, India’s mining industry is forecast to log an average growth rate of 8.1% over 2008-2012, to be valued at US$74.6bn by 2012.