India’s refractory industry pins hopes on mining policy to help reduce dependence on Chinese raw materials

3-Sept-2018

The country’s Rs 6,500-crore refractory industry in India is pinning its hopes on a favourable mining policy that will encourage it to mine in India and reduce dependence on China for raw materials.

India is currently dependent on China for import of key refractory products. The latter are a critical input in all high-temperature processes like making metals, glass and ceramics, production of cement and petrochemicals. Imports include, graphite, fused and calcined alumina and high- grade clays from China in addition to magnesite, a critical input for refractory bricks.

However, recent crackdown on polluting units in China has disrupted raw material inflow into India. This has led to questions on the refractory industry’s ability to continue its supply commitments to key industries including steel. The domestic steel industry has set a target of 300 million tonne and a small disruption in supply of refractory material could upset the steel industry‘s growth momentum and affect infrastructure growth.

The refractory industry feels the mining policy needs to address key concerns such as uncertain environmental regulations, regulatory duplication, a confusing legal and taxation regime and trade barriers. The industry also looks forward to more clarity with regard to policy on major and minor minerals to take up scientific and ecologically sustainable mining. It also expects simplification of land right rules and easing of green clearances.

In 2016-17, the ratio of minerals produced to minerals imported in India was 1:10, according to Niti Aayog. The estimated domestic production of minerals — including bauxite, iron ore, limestone except coal — in India has been of Rs 36, 470 crore for the financial year 2016-17. Imports of significant minerals and metals — including copper and concentrates, diamond, nickel ores and concentrates, gold and potash — was estimated to be around Rs 3.45 lakh crore. In July 2016, the ministry of mines announced to work towards raising the mines and minerals sector’s contribution to India’s GDP by an additional 1% in the next 2-3 years. The share, however, has come down marginally from 2.2% to 2.1% in 2017-18.

Source: THE ECONOMIC TIMES