Press Trust of India
New Delhi, Dec 25: India’s multi-billion dollar mining industry faces a “tough” 2016 ahead amid weak global markets, even as the government plans to fast-track auctions and check illegal mining with satellite-based surveillance. A number of policy measures are in works to revive the sector that saw earnings take a beating due to softening prices and subdued demand, but experts do not see any imminent revival without a global commodity market recovery.
The major steps taken by the government in 2015 to revive the industry included passage of the Mines and Minerals (Development & Regulation) Act and initiating the process for starting auction of mines bearing minerals such as iron ore, bauxite and limestone. The government also notified National Mineral Exploration Trust (NMET) to encourage mineral exploration and followed up on various rules and guidelines that can help in improving the ease of doing business for miners. But, 2015 would still be remembered as a “depressed and distressed” year for the industry, when it saw earnings dive south on account of excess production and subdued demand, which led to prices of some commodities, like that of iron ore hit the ten-year low levels.
Besides, the spectre of demand slowdown in China, the world’s biggest metal consumer, led to the markets across the world including India getting flooded with cheap imports of steel, aluminium and other finished products — a development that has adversely impacted the domestic mining industry. Summing up the sentiments, Mines Secretary Balvinder Kumar told PTI, “Mines industry is passing through a distressed and depressed phase. Supply is outstripping the demand. 2016 will be a tough year for the industry as indicators on the global level are also not very encouraging.”