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Market Reports

Mining Industry in India

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Quick Facts: Indian Mining Industry

  • The estimated provisional total value of mineral production (excluding atomic, fuel, and minor minerals) for 2023-24 is INR 1,412,390 million, marking ~14.8% increase compared to the INR 122,9230 million recorded in 2022-23.
  • The estimated provisional value of metallic minerals for 2023-24 is INR 1,275,990 million, accounting for 90.3% of the total mineral production value.
  • The production of non-metallic minerals is valued at INR 136,400 million, accounting for 9.7% of the total value.
  • India’s mining GDP rose from INR 768,770 million in the third quarter of FY23 to INR 826,800 million in the third quarter of FY24.
  • Over the last decade, mining’s contribution to India’s GDP has been estimated to range between 2.1% and 2.5%.
  • In the fiscal year 2023-24, a provisional total of 2,036 mines submitted Mineral Conservation and Development Rules (MCDR) returns for mineral production, excluding atomic, fuel, and minor minerals.

Overview: Indian Mining Industry

  • India has a large variety of metallic and non-metallic minerals. The mining industry is an important part of the Indian economy. Since independence, mineral production has grown significantly in terms of both quantity and value. India produces 95 different types of minerals, including 4 fuel, 10 metallic, 23 non-metallic, 3 atomic, and 55 minor minerals, including building and other materials.

  • The country is mostly self-reliant in producing key metallic minerals like bauxite, chromite, iron ore, lignite, coal, and other mineral fuels.

  • The mining industry is crucial for India’s economic growth because it supports other sectors like power, steel, and aluminum. These industries are connected to important manufacturing sectors such as automotive, chemicals, steel, and cement, as well as infrastructure projects like roads, railways, and real estate.

State-Wise Statistics

In the fiscal year 2023-24, India’s total mineral production value under the Mineral Conservation and Development Rules (MCDR) was INR 1,412,390 million. Odisha led the way with INR 635,880 million, contributing 44.9% of the national output, followed by Rajasthan (INR 219,220 million, 15.5%), Chhattisgarh (INR 195,980 million, 13.9%), and Karnataka (INR 160,730 million, 11.4%). Jharkhand and Maharashtra also contributed INR 58,200 million (4.1%) and INR 55,200 million (3.9%), respectively. Andhra Pradesh, Gujarat, Tamil Nadu, Telangana, and Himachal Pradesh added smaller contributions, while Bihar, Kerala, Uttarakhand, and Goa had minimal production values, with Goa contributing just INR 0.01 million. This data highlights the diverse distribution of mineral resources across various states in India. 

In the fiscal year 2023-24, India’s total mineral production value under the Mineral Conservation and Development Rules (MCDR) was INR 1,412,390 million. Odisha led the way with INR 635,880 million, contributing 44.9% of the national output, followed by Rajasthan (INR 219,220 million, 15.5%), Chhattisgarh (INR 195,980 million, 13.9%), and Karnataka (INR 160,730 million, 11.4%). Jharkhand and Maharashtra also contributed INR 58,200 million (4.1%) and INR 55,200 million (3.9%), respectively. Andhra Pradesh, Gujarat, Tamil Nadu, Telangana, and Himachal Pradesh added smaller contributions, while Bihar, Kerala, Uttarakhand, and Goa had minimal production values, with Goa contributing just INR 0.01 million. This data highlights the diverse distribution of mineral resources across various states in India. 

Non-Metallic Minerals

  • The provisional value of non-metallic minerals production in 2023-24 was INR 136,400 million, a 9.3% increase from the previous year.
  • Limestone remained the leading mineral, contributing 90% of the total.
  • Phosphorite at 8.4%. Limestone production rose by 11% to 451 million tons, with major contributors being UltraTech Cement Limited, Shree Cement Limited, and Ambuja Cement Limited; Rajasthan, Madhya Pradesh, and Andhra Pradesh together accounted for 50% of production.
  • Magnesite production increased by 23% to 132 thousand tons, with Tamil Nadu and Uttarakhand producing over 94% of the total, while Karnataka contributed the remainder.
  • Phosphorite production fell by 21% to 1,558 thousand tons, with Rajasthan contributing about 85% and Madhya Pradesh the rest.
  • In FY24, coal production reached 997 million tons (MT), marking a 12% growth compared to the previous year. In June 2024, provisional coal production stood at 84 MT, reflecting a 14.4% increase from 73 MT in the same month last year.
  • In FY23, crude steel production reached 125 MT, finished steel production totaled 121 MT, and consumption of finished steel was 119 MT, surpassing both the levels from the COVID-affected years and pre-COVID years, reflecting positive growth in the mining industry. During April-May 2024, crude steel production was 20 MT, while finished steel production was 23 MT, further indicating the mining industry’s robust performance.
  • India’s iron ore production hit a record 277 million metric tons (MMT) in FY24, a 7% rise from 258 MMT in FY23. Aluminum production stood at 4 MT in FY23.

Regulatory Landscape

The Federation of Indian Mineral Industries (FIMI)

  • The provisional value of non-metallic minerals production in 2023-24 was INR 136,400 million, a 9.3% increase from the previous year.
  • Limestone remained the leading mineral, contributing 90% of the total.
  • Phosphorite at 8.4%. Limestone production rose by 11% to 451 million tons, with major contributors being UltraTech Cement Limited, Shree Cement Limited, and Ambuja Cement Limited; Rajasthan, Madhya Pradesh, and Andhra Pradesh together accounted for 50% of production.
  • Magnesite production increased by 23% to 132 thousand tons, with Tamil Nadu and Uttarakhand producing over 94% of the total, while Karnataka contributed the remainder.
  • Phosphorite production fell by 21% to 1,558 thousand tons, with Rajasthan contributing about 85% and Madhya Pradesh the rest.
  • In FY24, coal production reached 997 million tons (MT), marking a 12% growth compared to the previous year. In June 2024, provisional coal production stood at 84 MT, reflecting a 14.4% increase from 73 MT in the same month last year.
  • In FY23, crude steel production reached 125 MT, finished steel production totaled 121 MT, and consumption of finished steel was 119 MT, surpassing both the levels from the COVID-affected years and pre-COVID years, reflecting positive growth in the mining industry. During April-May 2024, crude steel production was 20 MT, while finished steel production was 23 MT, further indicating the mining industry’s robust performance.
  • India’s iron ore production hit a record 277 million metric tons (MMT) in FY24, a 7% rise from 258 MMT in FY23. Aluminum production stood at 4 MT in FY23.

The Ministry of Mines

  • The Ministry of Mines is responsible for the survey and exploration of all minerals, excluding natural gas, petroleum, and atomic minerals, as well as for the mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, and more. Additionally, it oversees the administration of the Mines and Minerals (Regulation and Development) Act, of 1957 for all mines and minerals, excluding coal, natural gas, and petroleum, playing a crucial role in the mining sector.

National Mineral Policy 2019

  • National Mineral Policy 2019 aims to boost domestic industry, reduce reliance on imports, and support the Make in India It focuses on the fair and transparent allocation of mineral resources to ensure equitable distribution for public benefit. The policy emphasizes environmentally sustainable mining practices, active stakeholder participation, and the devolution of mining benefits to affected communities and regions.

The Mines and Minerals (Development and Regulation) Amendment Act 2023

  • The Mines and Minerals (Development and Regulation) Amendment Act 2023 introduces significant reforms in the mining sector with a strong focus on critical minerals. Six minerals have been removed from the list of twelve designated atomic minerals. The central government will now exclusively conduct auctions for mineral concessions related to critical minerals, while state governments will benefit from the revenue generated. Additionally, the amendment introduces an exploration license specifically for deep-seated and critical minerals. These changes are expected to create a more favorable legal framework to attract foreign direct investment (FDI) and encourage the participation of junior mining companies.

Investments and Industry Highlights

  • The Ministry of Steel has signed 57 MoUs with 27 companies, expected to generate an investment of approximately INR 300,000 million and create an additional capacity of about 25 MT of specialty steel over the next 5 years, benefiting the mining sector.
  • Coal India Limited (CIL) and Bharat Heavy Electricals Limited (BHEL) have signed a Joint Venture Agreement (JVA) to set up an Ammonium Nitrate Plant through Surface Coal Gasification Technology, supporting advancements in the mining sector.
  • In February 2024, India and the Republic of Côte d’Ivoire signed an MoU to enhance cooperation in geology and mineral resources, fostering growth in the mining sector.
  • From April 2000 to March 2024, the metallurgical industry received the largest foreign direct investment (FDI) inflows, totaling INR 1,483 billion, followed by the mining industry with INR 296 billion, diamond and gold ornaments with INR 107 billion, and coal production with INR 2,349 million.
  • In February 2023, ArcelorMittal-Nippon Steel invested INR 600,000 million to expand its steelmaking capacity in Hazira from 9MT to 15MT per year.
  • Southeastern Coalfields Limited (SECL), a Coal India subsidiary located in Chhattisgarh, has reached a major achievement with its Gevra and Kusmunda coal mines ranking 2nd and 4th, respectively, on WorldAtlas.com’s list of the world’s largest coal mines. Both mines are situated in the Korba district and together produce more than 100 million tons of coal annually, accounting for around 10% of India’s total coal production.

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