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Exploring India: Mining the opportunities - EY - India

Exploring India: Mining the opportunities

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This report provides you an insight into mining and exploration activity for select minerals in India.

The trend of a two-speed economic growth witnessed worldwide post the global financial crisis persists even now. Minerals and metal prices have been volatile; some ruling high, a few even surpassing their previous peaks.

While the demand boom for minerals is fueled by India, China and other growing economies, the surplus metals capacity in the developed economies limits the headroom for any rise in metal prices.

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Margins have therefore gone upstream in the value chain of the mining and metals industry, which has shifted the spotlight to mineral resources once again.

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The India exploration story

In India, exploration has not kept pace with the growth in demand. The country is rich in mineral resources. However, due to meager investments in exploration and the limited participation of the private sector in upstream activity, the confirmed reserves available for the production of many base and precious metals will last only few years.

Exploration activity therefore must pick up rapid pace for this industry to flourish. As is the case globally, there are indeed challenges in bringing the mineral resources to market, but these are surmountable.

A boost in exploration and mining activity in India will need concerted efforts from all stakeholders, such as:

Central and state governments

Planners

Policy makers

Mining industry

Service and technology providers

Host communities

Higher exploration and mining output will provide sustainability to the economy, balance of payments, exchange rates and inflation. Read this report for detailed insights.

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