Ministry of Mines :Year End Review 2016

Ministry of Mines
Ministry of Mines
Ø Use of Space Technology for curbing illegal mining issues
·   MoU with National Remote Sensing Centre: Indian Bureau of Mines (IBM) has signed a MoU with National Remote Sensing Centre (NRSC), ISRO on 21.01.2016 to undertake a pilot project on “monitoring of mining activities using satellite imagery and capacity building of IBM officers for three years including technical support for setting up of remote sensing laboratory in IBM”. The in principle approval and expenditure sanction of 2.03 Cr has already been accorded by the Ministry for setup of remote sensing laboratory in IBM at Hyderabad.
· Mining Surveillance System:  A Mining Surveillance System (MSS) has been launched by the Minister of State (Independent Charge) for Coal, Power, New & Non Renewable Energy and Mines on 15th October 2016 from New Delhi. The Ministry of Mines, through Indian Bureau of Mines (IBM), has developed the MSS, in coordination with Bhaskaracharya Institute for Space Applications and Geo-informatics (BISAG), Gandhinagar and Ministry of Electronics and Information Technology (MEITY), for curbing illegal mining activity in the country by the use of space technology and remote sensing imagery.
Ø Sustainable Mining Initiatives: Star Rating of Mines
·An innovative scheme of ‘Star Rating’ system has been instituted by Ministry through IBM, in which star rating will be awarded to the mining leases for their efforts and initiatives taken for implementation of the Sustainable Development Framework (SDF).  One to five stars would be given to the mines by Indian Bureau of Mines (IBM). The best performing leases would be given 5 Stars. The Star Rating for this year of all the working mines is planned to be completed by Dec, 2016.
Ø Information Technology implementation in regulation of mining sector – Mining Tenement System (MTS)
· The induction of Information Technology is being done to instill improvement in governmental capacity of mineral administration. The Union Ministry is committed to establishing a Mining Tenement System (MTS), which would primarily involve automating the entire mineral concession life-cycle, starting from identification of area and ending with closure of the mine; and connecting the various stakeholders for real-time transfer of electronic files and exchange of data. This shall enable effective management of mineral concession regime and transparency in mining operations, transportation of ore with the help of online electronic weighbridges and check-posts. The rolling out of the modules of MTS will start within six months and the project is likely to be fully operational in eighteen months.
·         Consequent to the amendment of MMDR Act, and adoption of auction as the method for granting of mineral concession 17 blocks have been successfully auctioned in various States.
·   MMDR Act was amended during the year to include transferability of captive mines.
· Union Cabinet approved the setting of a society “B6 International Geological Congress for organizing 36” International Geological Congress in NCR in 2020.
· The following rules were notified during the year Minerals (Other than Atomic Minerals Hydrocarbon Energy Minerals) Concession Rules, 2016 on 4th March, 2016.
·  National Geo-Science Awards for the year 2014 were conferred on 33 Geoscientist in recognition of their extra ordinary achievements and outstanding contributions in the fields of Geo-science.
·         GSI has completed 3762 sq. km Specialized Thematic Mapping (on 1:25,000 scale) out of 9230 sq. km target during Annual Programme 2016-17 till the end of November 2016.
·         GSI has completed 46,064 sq. km National Geochemical Mapping (on 1: 50,000 scale) out of 1,37,000 sq. km target during Annual Programme 2016-17 till the end of November 2016
·         GSI has completed 40,121 sq. km National Geophysical Mapping (on 1: 50,000 scale) out of 95,200 sq. km target during Annual Programme 2016-17 till the end of November 2016
·         GSI has completed 32,355 line-km by airborne multi-sensor survey (including spill over) out of 60,000 line-km target during Annual Programme 2016-17 till the end of November 2016
·         GSI has completed preliminary marine mineral investigation for 18,439 sq. km in Exclusive Economic Zone (EEZ) out of 25,000 sq. km target during Annual Programme 2016-17 till the end of November 2016
·         GSI has been engaged in 37 programmes of National Landslide Susceptibility Mapping (NLSM on 1: 50,000 scale) during 2016-17.  GSI has covered 25,700 sq. km by Landslide Susceptibility Mapping out of 50,000 sq. km target during Annual Programme 2016-17 till the end of November 2016
·         GSI has digitized all its mineral exploration reports (6090 nos.) and is in the process of uploading these in public domain in phased manner.
·         In the calendar year 2016, GSI has reported augmentation of natural mineral resources to National Mineral Inventory (NMI of Indian Bureau of Mines) of copper (20.09 million tonne), iron (27.266 million tonne), bauxite (57.93 million tonne), limestone (765.76 million tonne), gold (1.807 million tonne), coal (578.57million tonne) and lignite (389.17 million tonne).
·         GSI is implementing an integrated IT-enablement system – Online Core Business Integrated System (OCBIS) with a goal towards comprehensive data management across Missions and Support systems. OCBIS has been scoped to enhance IT capability of GSI as well as to put GSI into an open standards based IT platform to effectively exchange information with external stakeholders, including Ministry of Mines, national and state level earth science organizations / departments, industry and citizens. GSI has rolled out beta go live version of OCBIS on 27th September 2016.
Ø  Achievements of IBM in 2016-17 (up to November, 2016)
·  For promotion of conservation and scientific development of mineral resources and ensuring protection of mines environment in mining areas, IBM carried out 864 Inspection of mines for enforcement of provision of MCDR, 1988 and examination of MP/MS, disposed 50 Mining Plans, 200 Schemes of Mining and 13 Final Mine Closure Plans. IBM issued detailed guidelines for disposal of mining Plan on 22.7.2016.
·For up gradation and utilization of low grade and sub-grade ores and minerals, IBM carried out 26 Ore dressing investigations, 19951 Chemical Analysis and 1487 Mineralogical studies.
·Updation of National Mineral Inventory as on 1.4.2015 is in progress, so far inventories for 31 minerals have been finalized.
·For dissemination of data on mines and minerals, 13 Statistical and technical publications have been released.
Ø Mineral Sector Performance 2016-17
· The total value of mineral production (excluding atomic minerals) during 2016-17 has been estimated at ` 257882 crores, which shows a decrease of about 6.78% over that of the previous year.  During 2016-17, estimated value for fuel minerals account for Rs. 178953 crores or 69.39%, metallic minerals, Rs. 29163 crores or 11.31% of the total value and non-metallic minerals including minor minerals Rs. 49767 crores or 19.30% of the total value.
·         The Gross Value Added (GVA) accrued from mining and quarrying sector at 2011-12 prices for the first quarters of 2016-17 is estimated at Rs. 86091 crore, indicated a decrease of about 0.4% over that in the same period of previous year.  Similarly, the advance estimates of GVA (at current prices) for the first quarter of the year 2016-17 is estimated at Rs. 97614 crore.  The mining and quarrying sector contributed to GVA accounted for about 3.0 % for the first quarters of the year 2016-17.
Ø Project “Sudoor Drishti” with National Remote Sensing Centre
· IBM has entered into a MOU for project named “Sudoor Drishti” on 21st January, 2016, with National Remote Sensing Centre (NRSC), Department of Space, Government of India for monitoring of Mining activity through satellite under the Prime Minister’s vision of ‘Digital India’.
·The project would ffacilitate to monitor periodic changes of the mining areas within the mining lease boundary.  As per the MOU, NRSC is imparting training to the IBM officials, on the developed methodology towards processing and interpretation of satellite data, so that the activity can be taken forward by IBM independently after the pilot study.  NRSC is also providing technical guidance for IBM in creating a remote sensing laboratory at IBM, Hyderabad. As a part of Pilot Project in Tandur area, Andhra Pradesh, volume changes in a cluster of mines (6) have been studied for 2007-2015 period and overall volume change of +10 to 11% has been observed.
Ø Opening of new Regional Offices of IBM in mineral rich states
·Ministry of Mines, Government of India has approved opening of new regional offices of IBM in the States of Chhattisgarh and Gujarat and upgradation of Sub-Regional Office at Guwahati, Assam. Raipur Regional Office is effective from 1st April, 2016 and Gandhinagar Office is opening shortly and the Guwahati sub-regional office is being upgraded. This has facilitated better co-ordination with State DGM and synergy between Central and State Governments in most of the mineral rich states for better accessibility to the industry for ease of doing business.
·The upward trend in physico-financial performance of the company has been maintained during 2016-17. The drilling performance of the company is 299054 m representing 24% higher achievement w.r.t. previous year. Similarly, the Gross Revenue of company is Rs. 215.50 crore representing 39 % higher achievement w.r.t. previous year for the same period.
· Foundation stone was laid by Shri Balvinder Kumar, Secretary (Mines) in December 2016 for construction of a new Integrated building comprising Laboratory, Workshop, Conference cum Training Centre Complex at Utilities Complex of MECL.
·  MECL’s role in Auction of Mineral blocks by State Govt.: Out of 17 mineral blocks auctioned by State Governments, 9 blocks have been explored by MECL and 12 more Blocks explored by MECL are in pipeline for auction by State Governments of Karnataka, Maharashtra and Jharkhand
·MECL has been designated as a “Nodal Exploration Agency” by the Governing Body of National Mineral Exploration Trust (NMET). It is the first mineral exploration company to take up mineral exploration project through NMET. Presently, MECL is carrying out mineral exploration in 16 blocks in the states of Maharashtra, Odisha, Madhya Pradesh, Chhattisgarh, Rajasthan and Andhra Pradesh through NMET funding
Ø Performance Highlights
·During the year 2015-16, Bauxite Mines and Alumina Refinery have achieved highest ever production since inception with bauxite transportation of 63.40 lakh MT and Alumina Hydrate production of 19.53 lakh MT respectively. Aluminium Smelter and CPP achieved cast metal production of 3.72 lakh MT and Net Power Generation of 5,841 MU respectively registering 14% growth over previous year. In the year, 156 MU of wind power was generated by the Company. Total metal sale has been 3.72 lakh as against 3.26 lakh MT in last year registering 14% growth.  The gross sales turnover of the Company for the year is Rs. 7157 crores.
Total dividend payment by the Company for FY 15-16 is Rs. 467 crores i.e. 40% of share capital against 35% dividend paid in FY 14-15. The Buy Back process of 25% of paid up capital (63.43 crore share) completed in Sep’16 with cash outflow of Rs. 2835 crore at Rs. 44 per share. After Buy back, the Govt. of India’s shareholding stands at 74.58 %.
Ø Projects:
The Company’s achievements with regards to various projects in the year are enlisted below:
 (i)Utkal D&E Coal Blocks: Utkal D and E Coal blocks has been allotted to NALCO in May’ 16 by Ministry of Coal.
 (ii)5th Stream Refinery & Pottangi Mines: Conditionof Lease agreement of Govt. of Odisha for Mining Lease of Pottangi Mines has been accepted by NALCO. Investment approval accorded for setting up a 5th Stream refinery at Damanjodi, Odisha of 1 million capacity. The process of Environmental Clearance is underway.
 (iii) 100 MW Wind Power Project: 50 MW Wind Power commissioned in Jaisalmer, Rajasthan in Sep’ 2016. Another wind power plant of 50.4 MW capacity at Sangli, Maharashtra is in final stages of commissioning.

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