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Mineral processing industry in Gujarat is reeling under challenging situation. On one side the demand from the consuming industries like infrastructure and real estate has fallen sharply, while on the other, reduced availability of minerals has escalated the costs for the industry.
According to industry sources, discontinuation of mining activity at several mines in north Gujarat and south Gujarat has reduced the availability of mineral raw materials for the processing industry.
"Recently, a public interest litigation (PIL) was filed in the Gujarat High Court against marble mining at Ambaji. So mining is stopped there. Also, there are other places in south Gujarat, where mining activity has been stopped due to wildlife century safety," said an official of Gujarat Mineral Industry Association (GMIA).
Ambaji in Banas Kantha district in North Gujarat is a rich source of marble for the processing industry in Gujarat. Similarly, industry players maintained that minerals such as dolomite, bauxite and china clay have become scarce.
For the minor minerals such as black trap and china clay, industry players maintained that fresh leases are not being allotted.
"This has resulted in short supply of these minerals. On the other hand, there is no demand from the consuming industry like infrastructure, industrial projects and real estate," stated a black trap mine holder in Bharuch district.
Industry estimates suggest that demand has fallen by close to 80-90 per cent over the past one year. Black trap, which is mainly used for road construction, urban development projects and industrial project is facing slowdown in demand.
"Due to shortage of minerals, processors have to source required raw material from other states. But that turns out to be costly," stated an industry source.
As per the regulatory requirement, mining activity is not permissible within the one-kilometer radius of wildlife century or forest area, the source noted.
Gujarat has over 10,000 small and medium mining processors and miners. Shortage of minor minerals including, china clay, bentonite, dolomite and black trap has pushed up the cost of operation for the processing industry, while weakness in demand is proving to be an additional blow on the face of the industry.
North Gujarat, Kutch, Kheda, Chhota Udepur, Bharuch and parts of Saurashtra are rich sources of various minerals.
