







 • Coal production has increased at a five-year CAGR of 4.6 per cent to 540 million tonnes in
Third-largest coal
FY2012 making India the third largest producer in the world. Further, India has the fifth-
producer largest coal reserves in the world

Fourth-largest iron ore • Iron ore production expanded at a CAGR of 3.2 per cent during FY07–11. Based on iron
producer ore production, India ranks fourth globally

Second-largest steel • India is slated to become the second-largest steel producer by 2015. Crude steel
producer by 2015 production increased at a CAGR of 7.7 per cent over 2005–12

• India has the fifth-largest bauxite reserves, with deposits of about 3 billion tonnes or 5 per
Fifth-largest bauxite
cent of world deposits. Aluminium production is estimated to be 4.7 million tonnes per
reserves annum during 2012–17

Source: 12th Five-Year Plan; Ernst & Young; Aranca Research

 2011 Growing
Demand demand
growth Attractive opportunities 2015F
• Rise in infrastructure development • There is significant scope for
Industry and automotive production driving new mining capacities in iron Industry
value: growth in the sector ore, bauxite, and coal value:
USD141.9 • Power and cement industries also • Untapped metal reserves in USD305.5
billion aiding growth in the metals and India are to the tune of 82 billion
mining sector billion tonnes

Advantage
India
Competitive advantage Policy support
• The engineering sector is delicensed;
• India holds a fair advantage in • 100 per
100 percent
centFDI
FDIis allowed
allowed in the
cost of production and conversion sector sector under the Automatic
mining
costs in steel and alumina Route
• It’s strategic location enables •• Due to policy
Mining lease support,
grantedthere
for a was
long
convenient exports to developed cumulative
duration of FDI of USD14.0
minimum billionand
20 years into
as well as the fast-developing thetosector
up over April 2000 – February
30 years
Asian markets • 2012, making
Approval up 8.6 per
of MMDR Bill cent
(2011)of total
to
FDI into the country in
provide better legislative that period
environment for investment and
technology

Source: DataMonitor, Aranca Research

Notes: FDI - Foreign Direct Investment, MMDR Bill - Mines and Mineral (Development and Regulation) Bill
 Present

1972

1956
• India is the largest
producer of sheet mica,
• Mineral Exploration the third largest producer
Corporation of iron ore and the fifth
established to largest producer of
• Central Government
conduct exploration bauxite in the world
1947 promulgated
with focus on coal, • Crude steel production in
Industrial Policy
iron ore, limestone, India expanded at a
Resolution
dolomite and CAGR of 6.7 per cent
• The exploration of manganese ore
minerals was over 1980-2012
• Mining sector
intensified and the • India accounted for 7.3
received a boost
Geological Survey of per cent of the metals
post
India was and mining industry in
independence
strengthened the Asia-Pacific region in
under the
• Indian Bureau of 2011
impact of
successive Five Mines was
Year Plans established to look
after the scientific
development of
mineral resources
Source: World Steel Association (WSA), DataMonitor
Note: CAGR - Compound Annual Growth Rate
 Iron and steel segment offers a product mix which includes hot
rolled parallel flange beams and columns rails, plates, coils, wire
Iron and steel
rods, and continuously cast products such as billets, blooms, beam,
blank, rounds and slab, and metallics and ferro alloy

Coal market consists of primary coal (anthracite, bituminous and

Coal
lignite)

Aluminium segment includes alumina chemicals, primary aluminium,

Metals and Mining Aluminium
aluminium extrusions, aluminium rolled products

Base metals Base metal market consists of lead, zinc, copper, nickel and tin

Precious metals and Precious metals market includes gold, silver, platinum, palladium,
minerals rhodium, diamond
India’s metals and mining industry recorded a strong 19.8 Value of India’s metals and mining industry
per cent expansion in 2011 to touch USD141.9 billion (USD billion)

Much of the above growth in the industry’s value can be 141.9

attributed to higher prices given that production volume
growth was relatively lower at 3.2 per cent (total production 105.4 118.4
stood at 716.3 million metric tonnes)
89.7

Production volumes have been growing steadily over the 74.0

years – over 2007-11, it registered a CAGR of 5.2 per cent;
with prices also rising during this period, the sector’s value
rose by around 17.7 per cent (CAGR)

2007 2008 2009 2010 2011

Source: DataMonitor, Aranca Research

Note: CAGR - Compound Annual Growth Rate
Iron and steel is the largest segment of the Indian metals and mining industry, accounting for 68.5 per cent of the overall
industry value (2011); coal is the other major sub-segment with a 26.5 per cent share

India accounted for 7.3 per cent of the metals and mining industry in the Asia-Pacific region in 2011

Shares in India’s metals and mining industry (2011) India’s share in the metals and mining industry in
Asia-Pacific (2011)

2.0%
Iron & Steel
3.2% 9.0%
3.9% China
0.2%
Coal 7.1%
20.8% Japan

Aluminium 8.3% India

Base Metals South Korea

71.7%
73.8% Rest of Asia-Pacific
Precious metals &
minerals

Source: DataMonitor, Aranca Research

India is the world’s fourth largest iron ore producer (global Iron ore production (million tonnes)
share of 11 per cent)

213 213 219

Iron ore production is estimated to have increased at a 188 207
CAGR of 3.2 per cent during FY07–11. Total production in
FY13 stood at 140.1 million tonnes 167
140

Private sector accounted for 67 per cent of India’s total iron

ore production in FY12

In FY12, Odisha, Karnataka, Chhattisgarh, Goa, and

Jharkhand accounted for 97 per cent of India’s total iron ore
production

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Source: Ministry of Mines (Annual Report 2011–12);

Aranca Research
Given that iron ore is a key ingredient in steel production, the expansion in iron ore production in India can be linked to the
country’s fast-expanding steel sector

Crude steel production is estimated to reach 76.7 million metric tonnes in 2012, expanding at a CAGR of 7.7 per cent over
2005–12. Production in Q1 2013 is estimated at 19.8 million metric tonnes

India is the world’s fourth-largest producer of crude steel (2012), with a global share of 5.1 per cent

Crude steel production (million metric tonnes) Shares in global crude steel production (2012)

76.7
4.7%
62.8 72.2 China
66.8 5.1%
53.1 57.8
49.5 5.9% Japan
45.8

United States
7.1%

India
46.9%

Russia

2005 2006 2007 2008 2009 2010 2011 2012e

Source: World Steel Association, Aranca Research

Note: e - Estimate
India is the world’s third largest exporter of iron ore India’s exports of iron and steel (USD billion)

With rising domestic demand-supply gap and to make 7.5 8.3 8.1
domestic supplies more attractive, the government on
6.6 7.1
March 2011 hiked freight charges and taxes on iron ore
exports

India’s Iron and steel exports increased at a CAGR of 4.2 4.5

per cent to USD8.1 billion in FY13

FY08 FY09 FY10 FY11 FY12 FY13

Source: Ministry of Commerce, Aranca Research

India has turned into a net importer of iron and steel due to India’s imports of iron and steel (USD billion)
strong growth in the manufacturing sector and rising
infrastructure projects
13.6 13.6
India’s transition into a net importer of steel despite the 11.0
strong growth in domestic steel production shows the 10.3
9.1 8.8
demand potential of the sector

The impact of strong growth in domestic steel production

has been most felt in the iron ore sector; with steel firms’
ever rising demand for the raw material, India’s imports of
iron ore has been growing steadily (for example, iron and
steel imports increased at a CAGR of 8.4 per cent over
FY08-13)
FY08 FY09 FY10 FY11 FY12 FY13

Source: Reserve Bank of India, Aranca Research

Coal production recorded a CAGR of 4.3 per cent over Coal production (million tonnes)
FY08-12

532 533 540

In the coming years, coal production in the country is likely
to receive a boost as the government plans to replace the
country’s captive mining policy in coal and iron ore with an 493 488
open bidding one

457

FY08 FY09 FY10 FY11 FY12(P) FY13(E)

Source: Ministry of Mines, Aranca Research

Note: CAGR - Compound Annual Growth Rate,
P - Provisional, E - Estimate
India is the world’s fourth-largest producer of coal and has Shares in global coal production (2011)
the fifth-largest reserves globally

Coal India Ltd (CIL), a Government of India enterprise, is

the world’s largest coal company based on raw coal 20.0% China
production and coal reserves
US

5.1% Australia
49.5%
5.6% India

5.8% Indonesia

Rest of the World

14.1%

Source: BP Statistical Review of World Energy June 2012,

Aranca Research
States with major coal deposits
• Jharkhand (76,963 mt)
• Odisha (66,307 mt)
• Chhattisgarh (46,682 mt)
• West Bengal (29,853 mt)
• Andhra Pradesh (22,016 mt)
• Madhya Pradesh (21,988 mt)
• Maharashtra (10,308 mt)
States with lower coal deposits States with iron ore deposits
• Uttar Pradesh (1062 mt) • Odisha (44.8 mt)
• Meghalaya (577 mt) • Karnataka (34.3 mt)
• Assam (387 mt) • Goa (3.7 mt)
• Nagaland (316 mt) • Chhattisgarh (3.4 mt)
• Bihar (160 mt) • Jharkhand (3.2 mt)
• Sikkim(101 mt) • Andhra Pradesh (0.8 mt)
Notable
• Arunachal Pradesh
Trends
(90 mt) • Madhya Pradesh (0.3 mt)
• Maharashtra (0.1 mt)
Coal deposits in million tonnes (mt)
Iron ore deposits in million tonnes (mt)

Source: Geological Survey of India, Indian Bureau of Mines, Aranca Research

Currently, aluminium is the second most used metal in the world after steel and the third most available element in the
earth constituting almost 7.3% by mass

India has 3.3 billion tonnes of bauxite reserves, the fifth-largest deposit of bauxite globally

Aluminium demand by sector (2011) India’s share in global aluminium production (2012)

China

Electrical 19.9% Russia

19.0%
Canada
Transport
39.0% EU
3.7% 43.9%
9.0% US
Machinery 4.1%
4.1% UAE
Packaging 4.5%
15.0% Australia
5.1%
Other India
6.0% 8.7%
18.0%
Rest of the World

Source: World Bureau of Metal Statistics (WBMS),

Economist Intelligence Unit (EIU), ICRA Management Consulting Services Ltd (IMaCS), Aranca Research
Note: ICRA - Information Credit Rating Agency Ltd
Aluminium production is estimated to be 4.7 million tonnes Aluminium production in 2012 (million tonnes)
per annum during 2012–17. Output growth is expected to
average around 4.5 per cent in 2013–14 1.9

India's primary aluminium production capacity is expected to 1.8

increase from 1.7 tonnes per annum (tpa) in 2012 to 4.7 tpa
by end-2017, with much of the expansion in capacity and 1.7
production targeted for export markets
1.7
1.6

2010 2011 2012 2013F 2014F

Source: World Bureau of Metal Statistics (WBMS),

12th Five Year Plan,EIU, ICRA Management Consulting Services Ltd
(IMaCS), Aranca Research
Note: ICRA - Information Credit Rating Agency Ltd
The growth in global aluminium consumption averaged 6.8 Aluminium consumption (million tonnes)
per cent in 2012, while consumption in India rose 7.5 per
cent in the same year

During 2007–11, world aluminium consumption expanded at 1.9

an estimated CAGR of 4.6 per cent 1.7 1.8
1.6
1.5

Growth is forecast to average just over 7 per cent in 2013–

14

Aluminium's main markets are China (which represented

41.4 per cent of worldwide demand in 2011), followed by
the US (9.6 per cent), Germany (5 per cent), Japan (4.6 per
cent), and India (3.7 per cent)
2010 2011 2012 2013F 2014F

Source: WBMS, EIU, Aranca Research

 Segment Major Player Market Share Other players

Iron and Steel NA Sesa Goa, SAIL, Orissa Minerals

Singareni Collieries Company,

Coal 80 per cent
Reliance Natural Resources

National Aluminium Company

(NALCO),
Aluminium 60 per cent
Bharat Aluminium Company
(BALCO)
 • In captive mining for coal, companies are permitted to set up coal washeries and for
specified end uses, including the setting up of power plants, fertilisers and steel units
Captive mining for coal
• Under the captive route, the government has allocated 198 coal blocks with geological
reserves of about 42 billion tonnes to various public and private sector companies

• The demand for metal and metal products is rising in the domestic market with India being
Focus on domestic a net importer in the metals segment
market • In March 2011, freight charges and taxes on iron ore exports were increased to boost
domestic supplies

• In search of greater mineral opportunities, an increasing number of Indian mining

companies are venturing overseas in a bid to secure stable, long-term supplies of minerals
Overseas ventures especially in the areas of coal and iron ore
• Coal India plans to export 10 MT of coal from Mozambique to India in the next 10 years;
the company is seeking more license blocks in Mozambique

Note: MT - Metric Tonnes

Higher demand for
metals Policy support Increasing investments

Value of M&A deals in

Growing infrastructure metals and mining rose
investments Relaxed FDI norms
at a CAGR of 138 per
cent over 2008-11

Inviting Resulting in
Sustained growth in
India’s automotive Allowing private
Increasing FDI
sector ownership

Aluminium and coal

benefiting from rising Reduced customs
power production duty

Rising production of
cement increasing
demand for coal

Note: M&A - Mergers and Acquisitions, FDI - Foreign Direct Investment

 Sustained growth in India’s automotive sector has been driving demand for steel and aluminium

Production of automobiles increased at a CAGR of 12.2 per cent over FY05–13

Passenger vehicles was the fastest-growing segment, representing a CAGR of 15.4 per cent

India is expected to become the world’s third-largest auto market by 2020

Total production of automobiles in India (million units)

15.5 15.9

13.4

10.5

7.6 8.5 8.0 8.4

6.5
3.1
3.0 3.2
1.6 0.6 1.8 2.4 0.6 0.8 0.8 0.8
1.2 1.3 1.3 0.5
0.4 0.4 0.4
0.4 0.6 0.5 0.5 0.6 0.8 0.8 0.8
0.4
FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

Passenger Vehicle Commercial Vehicle Three Wheelers Two Wheelers

Source: SIAM, Aranca Research

Note: FY - Indian Financial Year (April - March)
The power sector accounts for a large share of the Power generation in India (in TWh)
consumption of aluminium and coal in the country

876 912
Power generation in India expanded at a CAGR of 5.7 per 811
724 772
cent during FY06–13
618 663 705

In FY13, total power generation capacity stood at 223,344

MW, with capacity addition of 20,623 MW during the year

In the Eleventh Plan, India is estimated to have added

around 60,000 MW of generation capacity at an investment
of USD11.5 billion

To meet growing power demand, the Power Ministry has FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13P
targeted capacity addition of 85,000 MW in the Twelfth Plan
(2012-17) period
Source: Central Electricity Authority (CEA), Aranca Research
Note: TWh - Terawatt-hour,P- Provisional
Infrastructure projects continue to provide lucrative business India’s expanding infrastructure industry
opportunities for steel, zinc and aluminium producers (USD billion)

India’s infrastructure sector expanded at a CAGR of 15.8 136

per cent over FY08-11
115
97
81

66 65
48 48 58

37

FY08

FY09

FY10

FY11

FY12E

FY13F

FY14F

FY15F

FY16F

FY17F
Source: Business Monitor International ‘s (BMI) report on
infrastructure industry in India Q4 2012, Aranca Research
Note: F - Forecasts (by BMI)
India’s residential and non-residential building industry Residential and non-residential building industry
expanded at a CAGR of 10.7 per cent over FY08-11 (USD billion)

Growth in the sector is set to increase in the next 158

few years; forecasts put the CAGR for FY12-17 at
14.5 per cent 134
113
Iron and steel being a core component of the real estate 96
sector, demand for these metals is set to continue given 80 79
strong growth expectations for the residential and 70
57 55
commercial building industry

FY09 FY10 FY11 FY12F FY13F FY14F FY15F FY16F FY17F

Source: Business Monitor International ‘s (BMI) report on

infrastructure industry in India Q4 2012, Aranca Research
Note: F - Forecasts (by BMI)
India is the world’s second-largest producer of cement; the Cement production in India (million tonnes)
sector’s strong expansion over the past decade has been a
key contributor to rising coal demand
368 407

Cement production increased at a CAGR of 9.7 per cent to 332

272 million tonnes over FY06–13 272 300
CAGR: 9.7%
247
229
207
Production is expected to reach 407 million tonnes by FY17, 182
as per the 12th Five-Year Plan 142 156 168

By FY13, the cement sector is expected to add 30-40 MTPA

of additional capacity

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13E

FY14E

FY15E

FY16E

FY17E
Source: Department of Industrial Policy and Promotion,
12th Five Year Plan, Aranca Research
Note: E - Estimate, MTPA - Million Tonnes Per Annum,
CAGR - Cumulative Average Growth Rate
Increasing number of
Government support
houses

Higher cement
production

Expanding road Large infrastructure

construction projects

Source: Aranca Research

Within the Asia-Pacific region, India is ahead of South Korea and Philippines in the mining sector; at the same time it is in
competition with Australia, Malaysia, China, Indonesia and Japan

Limits of potential returns Risks to realisation of returns

Mining Country Market Country Mining

Limits Risks
Industry structure risks risk rating

India 25.0 52.8 34.7 68.5 53.2 60.8 42.6

South Korea 10.0 66.2 29.7 77.7 57.5 67.6 41.0

Japan 12.5 70.8 32.9 86.4 77.9 82.1 47.7

Philippines 17.5 56.2 31.1 60.4 41.5 51.0 37.0

Source: India Mining Report by BMI-Q2 2012, Aranca Research

Note: Description of each headline given in the Appendix
 Allowing private • Government of India is encouraging private ownership for steel operations and other high
ownership priority industry

• Government of India significantly reduced the duty payable on finished steel products and
Reduced custom duty has streamlined the associated approval process

• FDI up to 100 per cent is permitted under the Automatic Route to explore and exploit all
Relaxed FDI norms non-fuel and non-atomic minerals and process all metals as well as for metallurgy
• FDI caps for coal and lignite has been increased to 100 per cent under the automatic route

• In a positive move for the sector, in 2008, the Indian Cabinet approved the National
Approved NMP
Mineral Policy (NMP) 2008, to boost FDI in mining

Note: FDI - Foreign Direct Investment

 • GOI approved the new mining bill – the Mines and Minerals Development Bill (MMDR Bill)
– on 30th Sep 2011; the bill calls for mining firms to share either profits or amounts
Overview of the MMDR
equivalent to royalties with local communities
Bill • The proposed bill is expected to make it easier to win local approval and smoothen the
land acquisition process

• Reservation of areas for PSUs removed

General restrictions
• State governments to set up special courts to expedite prosecution in illegal mining
and mineral
• Statutory Coordination cum Empowered Committee at central and state levels to decide
concessions upon stringent penalties for offences

• Central government to establish National Mineral Fund; respective state governments to

establish State Mineral Fund(s)
Process of revenue • District Mineral Foundation will be set up by the state government which will work for the
collection and usage interest and benefit of persons or families affected by mining related operation in the
district and will be managed by a governing council
• The mining tax collected will be spent within the district

Note: GOI - Government of India, PSUs - Public Sector Undertakings

During April 2000–March 2013, cumulative FDI inflows into FDI inflows into metals and mining over April
the metals and mining sector stood at USD8.8 billion 2000–February 2013 (USD million)

The sector accounted for 4.6 per cent of total cumulative

FDI inflows during the period 7,878

998
391
25

Metallurgical Mining Diamond, Gold Coal Production

Industry Ornaments

Source: Department of Industrial Policy & Promotion,

Aranca Research
Total M&A deal value in metals and mining increased at a CAGR of 138 per cent during 2008-11

In 2011, M&A deal value in the mining sector stood at USD11.2 billion, 292 per cent higher than the corresponding figure
for 2010 (USD2.9 billion)

M&A activities (as of Mar 2013)

Acquisition Price
Acquirer Target
(USD million)

Vedanta Resources PLC Cairn India Ltd (30.4% stake in December 2011) 4,541.9

Sesa Goa Ltd Sterlite Industries 3,911.0

Vedanta Resources PLC Cairn India Ltd (10.1% stake in July 2011) 1,513.2

GVK Power & Infrastructure Ltd Hancock Coal-Queensland Coal 1,260.0

Sesa Goa Ltd Cairn India Ltd 1,175.9

JFE Steel Corp JSW Steel Ltd 1,029.1

Lanco Resources Australia Griffin Coal Mining Co Pty Ltd 722.7

Source: Thomson Banker, Deal Tracker, Aranca Research

CIL supplied 465.2 MT of coal during FY13, with a record- Revenues (USD billion)
high increase of over 32 MT in coal offtake
14.6 12.7
As per the MoU signed with the Ministry of Coal for
FY2013–14, CIL fixed coal production target at 482 MT and 11.5
off-take target at 492 MT
9.4
8.1 8.5

6.5

FY07 FY08 FY09 FY10 FY11 FY12 9MFY13

Source: Bloomberg, Aranca Research

Note: MT - Million Tonnes, MoU - Memorandum of Understanding

• Set up in 1967, Coal India Limited (CIL) is the largest coal mining company in India
• Coal India contributes around 81 per cent of total coal production in India
The company's strategic overseas ventures with Colombia Coal production (in million tonnes)
and US enabled it to meet India's rising energy demand

FY13 408.6 43.7

CIL has drawn up a five-year investment plan worth
USD9.32 billion, half of which would be capital investments, FY12 392.5 43.4
including the acquisition of overseas coal assets
FY11 390.0 41.4

Government has recently allocated 116 coal blocks to CIL FY10 395.1 36.1
for expansion
FY09 377.2 26.5

FY08 353.3 26.2

FY07 336.6 24.3

Non Coking Coal Coking Coal

Source: Company website, Aranca Research

SAIL has entered into a Joint Venture with POSCO, Korea; Revenues (USD billion)
Kobe Steel Limited, Japan; Rashtriya Ispat Nigam Ltd;
Larsen & Toubro Ltd; National Mineral Development
Corporation; Hindustan Prefab Ltd; and IRCON 9.0 9.6 9.8
International Limited, Turkey
8.2 8.4 8.9
7.1
SAIL employees bagged the maximum number of
Viswakarma Awards declared in Aug 2009

SAIL's expansion plan worth USD15 billion will increase its

production capacity from 14 million tonnes per year (current)
to 24 million tonnes by 2013

FY07 FY08 FY09 FY10 FY11 FY12 9MFY13

Source: Company website, Aranca Research

Note: Viswakarma Award is for outstanding achievement or good
performance on the part of workers in increasing productivity,
quality, safety, working conditions, import substitution etc.
CAGR - Compounded Annual Growth Rate

• Incorporated in 1954, Steel Authority of India Ltd (SAIL) is India's second largest producer of iron ore
It won the Gold Trophy of “SCOPE Meritorious Award for Total saleable steel production (million tonnes)
R&D, Technology Development & Innovation” for 2007-08
12.6 13.0 12.5 12.6 12.9 12.4
It was also awarded the “Corporate Social Responsibility &
Responsiveness“ by the President of India in FY09 9.3

FY07 FY08 FY09 FY10 FY11 FY12 9MFY13

Source: Company website, Aranca Research


Untapped market with
strong growth potential
• India’s per capita steel • India has the world’s fifth-
consumption was 59 kg in
2012 compared with the
global average of 215 kg
• Rural per capita steel
consumption is likely to
reach around 20 kg from
13 kg currently
• Moreover, India has the
• By FY12, a shortfall is
expected in domestic
supply of steel worth 3-8
million tonnes
Scope for new mining
capacities in iron ore,
bauxite and coal
largest reserve base of
bauxite and fourth-largest
base of iron ore
respectively, and accounts
for about 7 per cent and 11
per cent respectively, of
total world production
world’s fifth-largest coal
reserves and accounts for
7.5 per cent of total global
production
Rapid growth of user-
industries to drive
demand for metals and
minerals
• Strong long-term demand
from the steel industry is
expected to further boost
the iron ore industry
• Increasing power
production is likely to
catapult demand for coal
• Booming construction,
automobiles, and
packaging industries are
expected to lend
substantial support to the
metals and mining sector
Source: WSA, Ernst and Young, Aranca Research
Note: kg - Kilograms
 Opportunities for value-add projects
Exploration in proposed exploration
and agglomeration plants for fines
zones
utilisation

• Odisha: Bonai (Keonjhar belt) and • Fines production was approximately 126
Tomka (Daitari and Umerkoke belts) MT in 2009–10

• Jharkhand: All major high-grade ore • Pelletisation capacity is about 24

deposits contain low-grade lateritic ores MTPA

• Karnataka: Bagalkot, Tumkur, and • Sintering capacity is about 39

Chitradurga districts MTPA

• Maharashtra: Sindhudurg, Gadchiroli, • Scope for domestic and foreign firms in

and Gondia upcoming PPP opportunities

• Chhattisgarh: All 14 deposits of Bailadila • Joint venture or technical

range, Dantewada district participation with midcap players
with lease/license and seeking
• Andhra Pradesh: Kadapa, Kurnool, capital, expertise and technology
Karimnagar, Adilabad, and Guntur
districts • In coal mines with auctions, and
iron ore mines with larger scale

Source: PwC, Aranca Research

Note: MT - Metric Tonnes, MTPA - Metric Tonnes Per Annum
Aluminium Association of India
118, 1st Floor, Ramanashree Arcade
18, M. G. Road
Bengaluru, Karnataka-560 001
Phone: 91- 80-25582197, 25582757
Fax: 91-80-25594535
E-mail: aluminium@eth.net

Federation of Indian Mineral Industries

FIMI House, B-311, Okhla Industrial Area
Phase-I, New Delhi-110 020
Phone: 91-11- 26814596
Fax: 91-11- 26814593
E-mail: fimi@fedmin.com

Indian Stainless Steel Development Association

L -22/4, DLF Phase–II
Gurgaon, Haryana-122 002
Phone: 91-124 - 4375501
Fax: 91-124 - 4375509
E-mail: nissda@gmail.com
BMI’s Mining Business Environment Ratings

Market structure: it takes into consideration mining output in USD billion, sector value growth, per cent y-o-y r, mining
sector, per cent of GDP

Country structure: it takes into consideration labour market infrastructure, physical infrastructure r, tax, and scope of
state

Market risks: it considers metals prices, 5-year, forecast average, metals price forecast, average 5-year growth,
regulatory framework, legal framework

Country risk: it considers, long-term external risk, corruption, bureaucracy, long-term policy continuity

Mining ratings: it shows the overall scores of the above indicators

CAGR: Compound Annual Growth Rate

FDI: Foreign Direct Investment

FY: Indian Financial Year (April to March)

So FY10 implies April 2009 to March 2010

GOI: Government of India

IBM : The Indian Bureau of Mines

MoU: Memorandum of Understanding

PPP: It could denote two things (mentioned in the presentation accordingly) –

Purchasing Power Parity (used in calculating per-capita GDP)

Public Private Partnership (a type of joint venture between the public and private sectors)

PE: Private Equity

USD: US Dollar

Wherever applicable, numbers have been rounded off to the nearest whole number
 Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year INR equivalent of one US$ Year INR equivalent of one US$

2004-05 44.95 2005 45.55

2005-06 44.28 2006 44.34

2006-07 45.28 2007 39.45

2007-08 40.24 2008 49.21

2008-09 45.91 2009 46.76

2009-10 47.41 2010 45.32

2010-11 45.57 2011 45.64

2011-12 47.94 2012 54.69

2012-13 54.31 2013 54.45

Average for the year

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