Overview                                                                                                              
India possesses significant mineral resources, ranking among the top ten global producers of mica, barites, coal and lignite, iron ore, chromite, bauxite, and manganese.  During 2018, India mined 95 different minerals from 1,531 mines.  In 2017, India produced an estimated $17 million in minerals (excluding atomic minerals).

Coal production leads the Indian mining industry, accounting for 78 percent of total mineral sector production. India’s coal reserve is estimated at 301.5 billion tons (10 percent of global reserves).  India’s demand for coal continues to increase to meet the needs of coal-based thermal power plants and the steel industry.  The coal mining industry accounts for about 80 percent of India’s demand for mining equipment used for open pit mines, which account for 90 percent of India’s mining operations.  The most attractive niche sector for U.S. exports is high-end, specialized coal mining equipment.

India allows 100 percent foreign direct investment (FDI) in mining and exploration of non-core minerals like gold, silver, and diamonds, as well as in oil exploration and captive mining of coal and lignite and in coal processing (washing and sizing).  India allows 50 percent FDI through joint ventures with a public-sector unit.  To meet energy demand, India is upgrading the equipment and technologies used in many of its mines, particularly in the coal sector.

Many mining projects across the country were stalled by court cases, environmental, regulatory and land acquisition issues and general delays in government decision-making in past several years.  Given that the new coal block allocation process started early in 2018, and Coal India received a healthy procurement budget to issue tenders for new mining equipment in 2019, we anticipate growth in the mining industry and higher demand for new mining equipment.

Estimated size of mining equipment in India:
Units: $ millions

Source: Global Trade Atlas (HTS 820713, 842831, 843031)

Leading Sub-Sectors:
Long wall loaders, draglines, jumbo drills and another long wall machinery
Excavators, shovels and coal/rock cutters
Feeder crushers and special stage loaders
Continuous mining technology
Highwall mining
Mineral screening, washing, crushing and grinding equipment
Underground communication and safety systems
Coal mine methane utilization / Coal bed methane (CBM) technology
Hydraulic/friction props and chocks
Coal washeries
Mine safety equipment

Opportunities
Coal India Limited (CIL) https://www.coalindia.in/ is the single largest coal producer in the world.  CIL operates 369 mines (174 underground, 177 opencasts and 18 mixed) and produced 567 million ton of coal from April 2017 to March 2018.  It produced 606 million ton of coal during the period of April through December 2018. It also operates 15 coal washeries (11 coking and 4 non-coking).   The Ministry of Coal https://coal.nic.in/  directly administers CIL.  CIL also oversees the activities of Central Mine Planning and Design Institute Ltd. (CMPDIL), which acts as a centralized planning organization assisting in mining operations and design.  CIL runs a large fleet of 5100 heavy earth-moving machineries including 35 draglines, 695 shovels, 2781 dump trucks, 969 dozers, and 675 blast-hole drills.  The details of current CIL tenders and investment opportunities, as well as an explanation of the procurement process, are available at https://www.coalindia.in/tenders/.

CIL has 114 ongoing coal mining projects which are under different stages of implementation.  Eleven coal blocks have been allotted to subsidiaries that have a combined capacity to produce more than 100 million tons of coal per annum.   Four additional coal mining projects with a capacity of 24.60 million ton per annum and total capital investment of $593 million were approved by CIL.  To enhance production, CIL will be seeking to improve railway links, modernize its technology (exploration augmentation, introduction of high capacity equipment, operator independent truck dispatch system, introduction of continuous miner technology on large scale, long wall technology at selected places), and increase coal washing operations. 

NMDC Limited (www.nmdc.co.in) is India’s largest iron ore producer and exporter, mining over 30 million tons per year from its three fully-mechanized mines.  It has been provided with targets by the Ministry of Mines to increase output to 75 million tons by 2020.  NDMC is acquiring new mining leases in iron ore, coal and diamonds.

Two other government-owned companies in South India – Singareni Collieries Ltd. (https://scclmines.com/scclnew/index.asp) in Andhra Pradesh, and Neyveli Lignite Corporation (www.nlcindia.com) in Tamil Nadu – are  important end-users of coal mining equipment.  In the private sector, Tata Iron and Steel Company Ltd. (Tata Steel) in Jamshedpur, Jharkhand, continues to be a major buyer of equipment for its captive coal mines.  India’s private sector power utility companies like Reliance, CESC, Jindal Steel, and Tata are also working on projects to develop, own, and operate captive coal mines which will require the latest technologies and equipment.  Other large mining companies in India include Essel Mining, Rungta Mines, Orissa Minerals Development Company, Vedanta Resources, Hindalco, and Steel Authority of India.

Small-scale opportunities exist in the used equipment market, despite the lack of a common trading platform.  Mining equipment rental is nascent and slowly growing.  While companies with large fleets like Quippo, Sanghvi Movers, and ABG are entering the market, most services are still provided by small fleet owners (less than 10 machines on average). 

For more information about export opportunities in this sector contact U.S. Commercial Service Industry Specialist Shantanu Sarkar at:  shantanu.sarkar@trade.gov

Web Resources
Ministry of Coal 
Ministry of Mines 
Coal India Limited 
Central Mine Planning & Design Institute 
Mineral Exploration Corporation Ltd. 
Indian Institute of Coal Management 
Department of Heavy Industry 
Indian Bureau of Mines 
Federation of Indian Mineral Industries 
Directorate General of Mine Safety 
NMDC Limited 
National Institution for Transforming India