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National Mineral Policy 2006 - Department of Mines

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Table 4.5: Iron Ore: Cross-country Comparison <strong>of</strong> FOB Cost(US$ per tonne)Country Name <strong>of</strong> 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 <strong>of</strong> the Central government could be extended to the mining areas to meet the watersupply requirement <strong>of</strong> the small- and medium-sized mines. With reforms in the electricitysector, supply <strong>of</strong> 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 <strong>of</strong> 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 <strong>of</strong> the GOI that are being implementedwith the approval <strong>of</strong> the Committee on Infrastructure. The infrastructure projects that areidentified in future can also be taken up similarly as many <strong>of</strong> 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 <strong>of</strong> PPP projects depends upon the collection <strong>of</strong>user charges that provide a stream <strong>of</strong> revenue that is adequate to service the payment <strong>of</strong>interest and repayment <strong>of</strong> debt as well as to provide a reasonable return to the privateinvestors, in addition, <strong>of</strong> course, to the upkeep <strong>of</strong> the facility. The mining community and therepresentatives <strong>of</strong> 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 <strong>of</strong> infrastructure was concerned. In these states, a large majority <strong>of</strong> 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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