The Indian government is looking to attain $15 billion of investment over the next five years, in a scheme which will hopefully double the mining output and decrease the level of mineral imports. The government’s goal is to fast-track exploration, including upfront payments for discovered deposits when the mines are auctioned, Mines Minister Piyush Goyal said in an interview. The administration will invite foreign companies to participate, he said, while acknowledging challenges such as land acquisition and environmental hurdles.
Goyal has said the aim is to scrap the process of doing small amounts of exploration in a staggered manner and to instead do it in one fast-tracked and collective effort, increasing the chance of healthier results. However, the world’s fastest growing major economy has a difficult task on its hands in order to achieve Goyal’s ambitious targets, as shown by major game players ‘Rio Tinto Group’ and ‘Posco’ both putting Indian plans on hold because of the renowned difficulties being faced in India to acquire land. The world’s fastest-growing major economy will need increasing supplies of everything from iron ore to coal to achieve Prime Minister Narendra Modi’s objective of faster development powered by more manufacturing.
Goyal has stated that in order for foreign investors of mining and exploration to be a success in India, they must be ready to work alongside local businesses and be willing to employ an Indian majority workforce; including that of management positions.
It is easy to see why the Indian government sees further exploration as the path to head down for economic growth, with analysts saying just 13 percent of a potential 575’000 sq/km of geological land has been explored in detail. A majority of which has been done by the state, with private companies hesitant to get involved because of strict laws.