The Hindu Business Line : `Mining sector will favour German equipment'

German mining machinery manufacturers are confident that Indian mining sector will eventually use more and more German equipment because of their quality and durability in spite of the fact that the prices of German machines are on the higher side vis-à-vis other countries, particularly China. This was stated by Mr Peter Jochums, President of Mining Equipment Association (within the German Engineering Federation).

Mr Jochums told newspersons at the venue of the 8th India Mining Summit (known as IMME-2006) that India was not an easy market because many reputed manufacturers were competing against each other. Prices of machines and equipment would thus always be market driven. Therefore, manufacturers had limited choice but to accept the market-determined prices.

He said that most of the German equipment manufacturers were medium and small. They didn't have surplus capital to invest in the Indian mining sector. Only some large manufacturers might take investment decision if they were assured about the returns on investments. Incidentally, he mentioned that DBT, a large German equipment manufacturer, has received an order for a face-conveyor from the Singareni Coal Company Ltd (SCCL) for GDK— 10 unit. This order was worth £1.7 million (about Rs 14 crore), and this was the largest contract DBT has so far received in India in the Long Wall business.

Mr Jochums said that mining faces a resurgence worldwide. In India, during the period 2004-05, coal production achieved about 382 million tonnes, which was an increase of about 6.5 per cent in comparison to previous year - still only a low percentage of the potential in this country. Therefore, IMME 2006 was the most prominent mining exhibition in India and the place to be for the whole industry.

He said that Germany led the world in engineering technology, especially in mining equipment. Many German companies have close ties with Indian mining houses. Some German firms also have local production in India, which has become a very important export market from German mining equipment.

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