Steel
India is the 2nd largest crude steel producer in the world, with 120 MT of crude steel produced in FY’22. Production of Total Finished Steel stood at 111.858 MT showing a growth of 21.3% over the year. India Exported 13.5 MT of Finished Steel amounting to INR one lakh crores during FY’22. Over 2030-31, crude steel actual production forecasted to reach 255 MT.
Per capita finished steel consumption is expected to rise to 160 kg by 2030-31 (from 72.3 kg in 2021). Steel production (weight: 17.92 %) increased by 5.7 % in July 2022 over July 2021. Its cumulative index increased by 6.5 % during April to July 2022-23 over the corresponding period of previous year.
Domestic stainless steel demand expected to reach 20 MT by 2047. Secondary steel sector and consumers as target of achieving 300 MT of steel capacity by the year 2030.
Coal
India is home to 1,303 mines which reported mineral production (excluding atomic, fuel, and minor minerals) in 2019-20 and produces 95 minerals – 4 fuel-related, 10 metallic, 23 non-metallic, 3 atomic, and 55 minor minerals.
India is the 2nd largest producer of coal, all India production in 2021-22 was 777.31 MT (P) with a growth of 8.55%.
Coal is projected to remain the largest single source of electricity in India in 2040.
Coal production (weight: 10.33 %) increased by 11.4 % in July 2022 over July 2021. Its cumulative index increased by 26.6 % during April to July 2022-23 over corresponding period of the previous year.
Coal production from captive mines is expected to touch 140 mn ton in 2022
With the launch of the National Mineral Policy 2019 and the Mines and Minerals (Development and Regulation) Amendment Act 2021, India presents a major opportunity for investors looking to invest in the metal industry in India.
India has large reserves of Iron ore, Bauxite, Chromium, Manganese ore, Baryte, Rare earth and Mineral salts.
The Metals and Mining sector in India is expected to witness a major reform in the next few years, owing to reforms such as Make in India Campaign, Smart Cities, Rural Electrification, and a focus on building renewable energy projects under the National Electricity Policy as well as the rise in infrastructure development.
Ministry of Coal launched the fifth tranche, second attempt of fourth tranche and second attempt of third tranche of commercial coal mine auction on March 30, 2022.
The 3rd round of auction have 88 coal blocks offered and the 4th round of auction held in December 2021 offered 99 coal mines, of which 59 are fully explored with 40 partially explored.
Production level of important minerals in June 2022 were: Coal 669 lakh tonnes, Lignite 46 lakh tonnes, Natural gas (utilized) 2747mn cu. m., Petroleum (crude) 24 lakh tonnes, Bauxite 1950 thousand tonnes, Chromite 343 thousand tonnes, Copper conc. 10 thousand tonnes, Gold 85 kg, Iron ore 201 lakh tonnes, Lead conc. 30 thousand tonnes, Manganese ore 238 thousand tonnes, Zinc conc. 142 thousand tonnes, Limestone 335 lakh tonnes, Phosphorite 189 thousand tonnes, Magnesite 8 thousand tonnes, and Diamon 44 carat.
The production of important minerals showing positive growth during June, 2022 over June, 2021 include: Diamond (340%), Gold (107.3%), Phosphorite (41.0%), Coal (31.1%), Lignite (28.8%), Zinc conc (20.0%), Manganese ore 19.3%), Magnesite (16.6%), Bauxite (8.9%), Chromite (6.5%), Lead conc (4.2%), Limestone 1.6%), and Natural Gas (U) (1.3%).
19 coals blocks were auctioned in 2020 for commercial mining. The total expected revenue from these mines is around INR 7,000 cr with a combined peak capacity of 51 MPTA.
The Average Index of Industrial Production of Manufacturing of basic metals in the FY 2021-22 is 177.3 and has grown by 18.4%
Exports of Mica, Coal & Other Ores, Minerals including processed minerals values at $429.56 mn in May 2022 and records positive growth vis-à-vis May 2021 of 9.04%.
Recognising the importance of bringing sustainability in coal mining, a “Sustainable Development Cell” has been created in Ministry of Coal and in all coal PSUs to promote adoption of better environment management practices in coal mines.