The Hindu Business Line : Australia watching mining sector reforms

Kolkata, Nov. 23 Australia is looking forward to reforms in India’s mining sector, according to Mr John McCarthy, Australian High Commissioner to India.

Speaking at the ‘Global Steel 2007’ conference here, Mr McCarthy said: “Australia has been actively encouraging reform of the sector, and we look forward to the recommendations of the Hoda (Committee) report into the reform of India’s mining regime being implemented”.

Mr McCarthy said Australian resources were contributing significantly to India’s “economic dynamism”.

Australian coking coal is used in more than 50 per cent of the steel that is produced in India. Currently, India is Australia’s fastest-growing export market, with exports growing by over 30 per cent per annum.

Calling for increased Indo-Australian co-operation in the Indian resources sector, Mr McCarthy lamented the paucity of FDI in the mining sector “despite the introduction of a more liberalised FDI regime”.

The High Commissioner presented a case against captive mining and said the policies advocated by some Indian States, in this regard, had not been adopted by Australia.

Australia “has opted for a modern mining industry that welcomed foreign direct investment. Instead of the government developing the resources, Australia concentrated on building a robust legal and regulatory framework to ensure that the industry was developed responsibly, and that the benefits were shared”.

Develop own path

Mr McCarthy, however, added that “India must, of course, determine its own development path, including with regard to the development of its steel industry.

“Australia’s experience is that a liberal and internationally-competitive mining regime operating under clear and transparent regulation works for the host country.

“It can be a huge stimulant to national prosperity. But it is up to you,” he said.

Speaking on the occasion, Mr Ian Macdonald, Minister for Mineral Resources, New South Wales, Australia, said several Australian companies were interested in providing technology to Indian companies operating in the mining sector.

Mr Macdonald said some Australian companies were also keen to partner their Indian counterparts for taking up joint R&D projects in the mining sector.

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