National Mineral Policy 2006 - Department of Mines
National Mineral Policy 2006 - Department of Mines National Mineral Policy 2006 - Department of Mines
(iv)(v)(vi)(vii)At Visakhapatnam Port, all the three tippers are working and the port isplanning to deepen the approach channel to receive 2.25 lakh dead weighttonnage (DWT) vessels during the course of the Eleventh Five-Year Plan;Kolkata Port has already initiated action for the preparation of a deep sea portsouth of the Haldia Dock Complex;Paradip Port has already invited expression of interest for construction of aniron ore berth for handling 1.25 lakh DWT vessels and also implementing theproject for deepening of approach and entrance channels and turning basin;The industry wanted the stockpiling area for unloading and loading to beincreased and the turnaround capacity to be improved. It was pointed out thatsince the landing facilities in the back-up area behind the port are minimal,increase in stockpiling would be difficult and the industry should try toevacuate cargo from stack-yards. Further, the port authority is planning tohave wagon tipper system behind the berth.4.25 The Committee recommends that the projects related to roads, railways, and portsproposed in paragraphs 4.15–4.24 should be implemented most expeditiously as they wouldaddress the immediate problems of exporters and lead to reduction of freight costs and makeIndian iron ore more competitive vis-à-vis Australian and Brazilian iron ore. Theinfrastructure projects identified in future should be taken up in PPP mode wherever possible.The deficiencies at the ports, the long linkage from the mining area to the port through roadand rail, and lack of long-term planning by exporters are some of the factors responsible forthe current situation where the per tonne landed cost at a Chinese port of India’s high gradeore is US$ 65 compared to US$ 62.90 for Brazilian ore and US$ 50.99 for ore from Australia.Although, India is much closer to China than Australia or Brazil the freight cost fromAustralia is US$ 10 per tonne while from India it is US$ 13 per tonne. A clearer picture willemerge from Table 4.5.106
Table 4.5: Iron Ore: Cross-country Comparison of FOB Cost(US$ per tonne)Country Name of Mining costs Transport Royalty FOB costmine andoverheadsand porthandlingAustralia Robe River 1.87 2.24 0.60 4.71Brazil Carajas 3.23 2.22 0.21 5.56South Africa Beeshoek 4.35 4.46 0 8.81India Bailadila 6.11 9.72 0.49 16.32Source: FIMI.4.26 As far as other utilities are concerned, viz. water and power, the Rural Water SupplyScheme of the Central government could be extended to the mining areas to meet the watersupply requirement of the small- and medium-sized mines. With reforms in the electricitysector, supply of electricity to the remote areas will improve. The government should make aconscious decision to make electricity available to the mine sites also, especially for smallandmedium-sized mines.INFRASTRUCTURE FINANCING4.27 NHAI, Railways, and the Port authorities should give priority to and expedite the NH,railway and port projects identified in this Report as being of interest to the mining sector.The railway projects, NHs, and the port projects that have been identified have already beenor can be accommodated within the existing schemes of the GOI that are being implementedwith the approval of the Committee on Infrastructure. The infrastructure projects that areidentified in future can also be taken up similarly as many of them would be suitable forbeing taken up as PPP projects and the GOI is committed to such projects being taken upwithin the existing programmes. The success of PPP projects depends upon the collection ofuser charges that provide a stream of revenue that is adequate to service the payment ofinterest and repayment of debt as well as to provide a reasonable return to the privateinvestors, in addition, of course, to the upkeep of the facility. The mining community and therepresentatives of the state government maintained that large-scale investment ininfrastructure was required in the mineral-rich states, which were all very backward as far asthe development of infrastructure was concerned. In these states, a large majority of the roadand railway projects could not be taken up on PPP basis. It was pointed out that the Railwayshad not committed themselves to take up the projects that were at the survey stage andMOSRTH also had stated that they could not declare new state roads as NH. The Committee107
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(iv)(v)(vi)(vii)At Visakhapatnam Port, all the three tippers are working and the port isplanning to deepen the approach channel to receive 2.25 lakh dead weighttonnage (DWT) vessels during the course <strong>of</strong> the Eleventh Five-Year Plan;Kolkata Port has already initiated action for the preparation <strong>of</strong> a deep sea portsouth <strong>of</strong> the Haldia Dock Complex;Paradip Port has already invited expression <strong>of</strong> interest for construction <strong>of</strong> aniron ore berth for handling 1.25 lakh DWT vessels and also implementing theproject for deepening <strong>of</strong> approach and entrance channels and turning basin;The industry wanted the stockpiling area for unloading and loading to beincreased and the turnaround capacity to be improved. It was pointed out thatsince the landing facilities in the back-up area behind the port are minimal,increase in stockpiling would be difficult and the industry should try toevacuate cargo from stack-yards. Further, the port authority is planning tohave wagon tipper system behind the berth.4.25 The Committee recommends that the projects related to roads, railways, and portsproposed in paragraphs 4.15–4.24 should be implemented most expeditiously as they wouldaddress the immediate problems <strong>of</strong> exporters and lead to reduction <strong>of</strong> freight costs and makeIndian iron ore more competitive vis-à-vis Australian and Brazilian iron ore. Theinfrastructure projects identified in future should be taken up in PPP mode wherever possible.The deficiencies at the ports, the long linkage from the mining area to the port through roadand rail, and lack <strong>of</strong> long-term planning by exporters are some <strong>of</strong> the factors responsible forthe current situation where the per tonne landed cost at a Chinese port <strong>of</strong> India’s high gradeore is US$ 65 compared to US$ 62.90 for Brazilian ore and US$ 50.99 for ore from Australia.Although, India is much closer to China than Australia or Brazil the freight cost fromAustralia is US$ 10 per tonne while from India it is US$ 13 per tonne. A clearer picture willemerge from Table 4.5.106
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