The Hindu Business Line : Tap gold mining opportunities, Minister tell corporates

Mumbai, Feb 22 With the race to acquire iron ore mining rights gaining pace, Mr T. Subbarami Reddy, Union Minister of State for Mines, has called on corporates to explore the opportunity in gold mining.

Speaking at the inauguration of “Aluminium India 2008” exhibition, Mr Reddy said: “The country has 25,000 tonnes of gold reserves to be mined. India imports gold worth Rs 77,000 crore per annum and diamonds worth Rs 70,000 crore a year. FDI in the gold mining sectors will not only bring in funds, but also the much needed technology”.

States’ opinion

On delay in unveiling the new mining policy, the minister said: “It is taking time because the opinion of 28 States has to be taken into account. I am hopeful that it will be announced by April.”

Asked whether there is a consensus among States on the new policy, he said: “They have not opposed but sought a few clarifications on some issues”.

On the royalty for mineral rich States such as Orissa, Madhya Pradesh, Andhra Pradesh, Chhattisgarh and Jharkhand, Mr Reddy said: “They would get more royalty based on the selling price against the present system of tonnage basis.”

Aluminium production

Highlighting the achievement in the aluminium sector, he said: “India is the eighth largest producer of aluminium. By 2020, India would have an aluminium capacity of 17-20 lakh tonnes a year. India’s aluminium demand is likely to grow 14 per cent this year, mainly due to the booming trends in construction, automotive and consumer durable sectors. These sectors consume about 40 per cent of the total aluminium.”

Orissa shining

Mineral-rich Orissa, which is the partner state for the expo, has attracted investment worth Rs 400 billion in aluminium, steel and power. “The Government has signed 13 MoUs for producing 19,000 mw of power in 2-3 years. This will not only meet the State’s power demand, but also cater to the country’s requirement,” said Mr Ashok Dalwai, Commissioner-cum-Secretary, Steel and Mines Department, Orissa.

Orissa will have an alumina capacity of 6.5 million tonnes per annum (mtpa) and one mtpa of aluminium and five ports catering to the need of ship building apart from serving the rapid industrialisation, Mr Dalwai said.

Vendanta Alumina Ltd refinery at Jharsuguda in Orissa had started commercial production and the smelter will go on stream in April, six months ahead of schedule, Mr Dalwai said.

On Posco and Arcelor-Mittal projects in Orissa, Mr Dalwai said: “There is some social economic problem which is being sorted out. These kinds of roadblocks are bound to happen when a state matures to an industrial economy from farm-based one.”

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Tap gold mining opportunities, Minister tell corporates