Govt to launch National Mineral Exploration Policy
The Dollar Business Bureau The government would soon launch the National Mineral Exploration Policy (NMEP) to incentivise participation of the private sector companies in mines exploration. Ministry of Mines on Monday said India is blessed with large mineral resources and possesses geological environment similar to many other countries including Australia, South Africa, and South America. But since exploration for deep and concealed deposits is a cost-intensive and risky enterprise which requires expertise and state-of-the-art technology, the government’s efforts need to be supplemented with an active participation of private sector companies which possess technological expertise on par with international companies. As part of the NMEP, the government would engage private sector companies in carrying out exploration, which would, in turn, give the companies rights to share ...
Renewal of long-term agreements for supply of iron ore to Japan, South Korea okayed
Source: PIB, Government of India The Union Cabinet, chaired by the Prime Minister Narendra Modi, has given its approval to renew Long Term Agreement with Japanese and South Korean Steel Mills for supply of high grade Indian iron ore, during the three year period from April, 2015 to March, 2018. The quantities covered under the agreement will be in the range of 3.8 million tonnes to 5.5 million tonnes per year, and will be supplied primarily from the mines of the National Mineral Development Corporation (NMDC). The contract will be executed by the Metals and Minerals Trading Corporation of India Limited (MMTC) under the Department of Commerce. Iron ore of higher grade have been supplied by India to Japan and ...
Indigenous steel plant to tap iron ore, curb steel imports
The Dollar Business Bureau In order to tap India’s iron ore resources, state-run companies Steel Authority of India Limited (SAIL) and National Mineral Development Corporation (NMDC) on Saturday agreed to set up an Ultra Mega Steel Plant (UMSP) in Chhattisgarh’s Bastar region. A memorandum of understanding (MoU) was signed on Saturday between the two companies in presence of Prime Minister Narendra Modi. The Prime Minister said the move will help India to curb its steel imports. “…Send iron out and get steel from outside. This would go on. But now this has to stop. We will make steel from the iron ore,” Modi said, adding that by utilizing indigenous resource of iron ore, India can be able to export ...
District Mineral Foundation to hit steel producers hard
The Dollar Business Bureau The EBITDA/t (earnings before interest, tax, depreciation and amortization divided by total revenue) for the top six steel producers is expected to come under further stress in view of the stipulated additional contribution by iron ore miners towards District Mineral Foundation (DMF) under the new Mines and Minerals (Development and Regulation) (MMDR) Amendment Act 2015. Consequently, the gross leverage of top six steel producers in India could increase marginally, said a credit rating agency report. The possibility of debt levels moderating in FY16 remains low as most players have on-going expansion plans. The proposed contribution to DMF will be in addition to the royalty already being paid by miners. Though the contribution towards DMF could ...
