Friday, December 05, 2014

Global biggies bullish on India's mining revival 
Photo: India Water Portal
KOLKATA, 5 December, 2014: The government's move to revive the mining sector has evoked optimistic response from foreign mining companies, which are firming up strategies to grab a share of the opportunities likely to come up.

While the prime minister's call to `Make in India' seems to have found enthusiastic takers among overseas mining machinery companies like Germany's ThyssenKrupp and Korea's Hyundai, who want to make India their global manufacturing hub, large mining firms like Anglo American and Rio Tinto are also looking at their prospects here with renewed vigour.

"We are upbeat about the new scenario that is set to emerge in the mining sector. Be it coal, iron ore or any other mineral, if India has to realise its ambitious growth targets, productivity of mining investments will be crucial and technology will play a significant role in this. This is where we have a lot to offer in green and sustainable mining technologies," said N Sivasubramanian, managing director of ThyssenKrupp Industries India. The company is betting big on the value proposition of reduced energy cost and lower carbon footprint of its equipment like Integrated Skip Conveying Crushing Systems and MegaPipes, and pitching for business from new private blocks and companies like Coal India, Orissa Mining Corporation and Reliance Power. 

"The mood is upbeat at the CII's IMME and Global Mining Summit 2014 since the impasse in the mining sector has ended. India needs to develop its mineral base and private investment is the way forward," Sumit Mazumdar, executive chairman of Tractors India, said.

Hyundai Construction Equipment, which is in India since 2008, says it has identified mining as a strategic thrust area. " In the next 5-10 years, we hope to emerge as a full-service player in mining equipment and would look at both organic and inorganic routes to chart our growth.We are looking at a market share of 25%," Alok Jha, GM (sales and marketing) at Hyundai Construction, said.

Czech equipment makers, too, are bullish on India. Eleven of them are already here."We are hopeful that the new government's policies in mining will be friendly towards investors and the environment," Miloslav Stasek, the Czech ambassador to India, said. 

Pure-play mining companies like Anglo American are also keenly waiting for new prospects. "We would like to partner Indian firms in developing mine properties. They could also buy into a mine that we own in any other country," James Harman, group head (business development) at Anglo American, said.

However, when it comes to mining in India by foreign companies, a number of issues remain to be resolved. 

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