National Mineral Policy 2006 - Department of Mines

chloride process pigment technology is tightly held (by DuPont), is technically complex, andalso requires low cost energy to be economically viable. It is in this context that the need tofurther liberalise the BSM sector is to be seen.7.83 During the early part of this decade, Indian exports of ilmenite were approximately 5lakh tonnes per annum valued at US$ 30 million. Mandatory value addition requirement hasbeen the sole deterrent in the establishment of new projects for mining and mineral separationand exports (there being no indigenous market). Table 7.8 gives a comparative picture of thePRR in various countries.Table 7.8: Reserves and Production of Ilmenite in India vis-à-vis Other CountriesCountryReserves Production Production to(million tonnes) (million tonnes) reserve ratio(1) (2) (3) (4=3/2)Australia 180 1.89 0.011Brazil 6.4 0.13 0.020Canada 200 1.8 0.009China 142 0.84 0.006India 461.37 0.39 0.001Malaysia 2 0.18 0.09Norway 244 0.87 0.004Sri Lanka 14.8 0.08 0.005South Africa 162 2.12 0.013USA 82.2 0.53 0.006Source: As per presentation made by DAE before the High Level Committee.It was argued before the Committee by industry that if export of raw mineral ilmenite isencouraged, India, which has huge ilmenite reserves, could grab a significant share of theworld market. If India’s present PRR of 0.001 is increased to 0.005 [i.e. even half that ofAustralia (0.01) or Canada (0.009)], India’s export earnings from ilmenite would jump fivefoldto US$ 150 million at the current export price levels. This order of increase of exportswould boost direct and indirect employment by 50,000.7.84 We have argued earlier that the value addition requirement as a condition of grant ofPL/ML for ilmenite must be eliminated in order to stimulate investment in mining. Since theindustry based on the mineral has not found India attractive for investment, the objective ofstimulating mining activity cannot be realised unless exports of ilmenite are allowed without178