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Private sector must play key role in exploration of the deep seated minerals

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Capital Market
Last Updated : Jun 21 2018 | 11:50 PM IST
The Union Government has allowed 100 per cent Foreign Direct Investment (FDI) in the mining sector and exploration of metal and non-metal ores under the automatic route, which will propel growth of this sector. Joint Secretary Ministry of Mines, Mr Anil Kumar Nayak said Power and cement industries are also aiding growth in the metals and mining sector. Demand for iron and steel is set to grow, given the strong growth expectations for the residential and commercial building industry.

He said exploration of the deep seated minerals needs to be focused. Lot of work needs to be done and private sector must play role in exploration too. He also said that there is large number of small players in the mining business. Now the time has come for the consolidation, either through consortium of miners. In our country there is lot of low grade minerals. For example, bauxite reserve in Orissa, however there is huge reserve of low grade bauxite in Maharashtra and Gujarat also, he said. He emphasized the importance for utilizing the low grade ore.

He said India is deficient in lithium and cobalt. These two minerals are required for electric vehicle which is one of the major missions of Government of India. The government has initiated a proposal where NALCO, Hindustan Copper and MECL will form a joint venture to acquire lithium and cobalt mines abroad.

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First Published: Jun 21 2018 | 5:54 PM IST

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