Union Minister of Coal and Mines Pralhad Joshi on Monday made a slew of announcements including the government’s resolve to promote the involvement of start ups in India’s mining sector, amend the mining act to achieve sustainable optimum mining, boost private sector participation to increase growth and reduce imports and also to explore options of procurement of lithium and cobalt from various countries including Australia, Argentina, Mongolia, Chile and Netherlands. After the inauguration of the maiden Mining StartUps summit jointly organised by the Ministry of Mines and IIT,Bombay here, Joshi said he would ask the public sector units in the mining sector to earmark certain funds to purchase products produced by the start ups with an objective of giving initial hand holding and promotion for their marketing and growth. ‘’Even though India has made strides in the mining sector especially after 2014, much needs to be done for Atmanirbhar Bharat. Indigenous technology is needed to increase production and thereby disband import of coal and various other minerals and for that the promotion of start-up ecosystem and their participation will play a key role in addition to other initiatives,’’he added.
- Don’t want import of mining equipment & solutions from China but want it should be replaced by indigenous technology from start ups and other providers
- To boost exploration 14 private companies have been notified, three projects sanctioned while 10 are in the pipeline
- India will be an exporter of coal in next two years
- KABIL will explore options of acquisition of stakes/assets in lithium & cobalt in various countries including Australia, Argentina
Joshi said at the first such summit about 900 start ups of which 140 start ups were registered of which 80 are participating.
Joshi said that India is ranked third in the start ups with over 1 lakh in the country in nine years from merely 300 odd start- ups in 2014. India has become a start up hub as they are providing 9. Lakh jobs and over 100 unicorns have a cumulative valuation of $333 billion. ‘’We do not want to import from China, especially mining equipment and solutions. We want to discourage that and for that we want new ideas and thoughts. The Younger generation can have new ideas and thoughts and urge the start ups to be involved in the mining sector. We will extend all support because we want to have sustainable mining and stop the imports,’’ he added.
Joshi said that in order to give a further boost to the exploration the ministry has empaneled 14 private explorers from India which are outside the Geological Survey of India. ‘’In all 14 domestic companies have been notified, already sanctioned 3 projects while another 10 projects are in the pipeline,’’he noted. The minister said that ‘’The government wants to further liberalise the exploration as it is much less compared to the world benchmark. We are not satisfied though we have done an exemplary job in the last nine years but still we want to do more especially in deep seated mini eras and rare earth and for that we want to make changes in the mining laws. Therefore, the government will move amendments,’’ he added.
‘’Till 2014, coal production used to be 500 million tonnes against the annual requirement of 700-800 million tonnes. We have the fourth largest reserves of coal across the globe. However, India imports coal. Today, we are the largest producer of coal and the largest importer also. This was because the previous government’ thinking was that whatever needs to be done the government will do without having trust and involvement of the private sector. Because of that import was taking place. However, after the government introduced changes in 2020-21, this year we have ended with almost 850 million tonnes of coal production. Next year the coal production will be 1 billion tonnes and by 2025-26 almost all thermal coal imports will be stopped. If there is a demand from outside India will start export of coal in another two years,’’ noted the minister.
According to Joshi, after 2014 the transparency in the functioning of the ministry department especially during auctioning has increased with an end of discretion and agents/dalals.
Joshi said that the government has established a joint venture company namely Khanij Bidesh India Ltd (KABIL) with the participation of three Central Public Sector Enterprises namely, National Aluminium Company Ltd (NALCO), Hindustan Copper Ltd(HCL) and Mineral Exploration Company Ltd (MECL). The objective of constituting KABIL is to ensure a consistent supply of critical and strategic minerals to the Indian domestic market. While KABIL would ensure mineral security of the Nation, it would also help in realizing the overall objective of import substitution, he said.
The minister said that either private or public sector undertakings may acquire the stakes outside the country. ‘’KABIL
Iron ore, coal, bauxite, we may do it for lithium and cobalt which is not available in India either private or PSUs may acquire the stakes outside the country. KABIL is looking at lithium, cobalt assets in Australia, Argentina and other countries.
The KABIL would carry out identification, acquisition, exploration, development, mining and processing of strategic minerals overseas for commercial use and meeting the country’s requirement of these minerals. The sourcing of these minerals or metals is to be done by creating trading opportunities, G2G collaborations with the producing countries or strategic acquisitions or investments in the exploration and mining assets of these minerals in the source countries. The new company will help in building partnerships with other mineral rich countries like Australia and those in Africa and South America, where Indian expertise in exploration and mineral processing will be mutually beneficial bringing about new economic opportunities. The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30.
