Geovale Attended Conference by FIMI on Raw Materials Security for Iron & Steel in Goa

Geovale Services attended the Conference on Raw Materials Security for Iron & Steel which was organized by FIMI in Goa during 6-7 November 2015.

The main theme of this conference was strategic Issues and challenges in Indian mining sector, policy Initiatives, development of logistic infrastructure and viability of auctioned coal mines. The conference was attended by more than 200 people with profile ranging from private miners, steel manufacturers, government officials, PSU, shipping agents, traders, equipment suppliers, to consultants.

Mr Gouranga Sen, Principal Analyst of Geovale Services presented a strategic paper on Infrastructure Scenario of Iron & Steel Transportation in India. The paper dealt with the issues and challenges in infrastructure in India, what is needed to solve those and what plans have been made to ease infrastructure bottlenecks. The paper also highlighted a synopsis about Thriveni Earthmovers and how Thriveni is creating transport infrastructure through various road projects, barge movements and developed Quick Dispatch System.

Mr Gouranga Sen, Principal Analyst of Geovale Services is addressing the audience in the Conference on Raw Materials Security for Iron & Steel

A copy of the presentation can be downloaded from here.

The key take-aways from other key speeches and presentations are highlighted below.

The conference was inaugurated by Union Minister of State for Mines Vishnu Deo Sai. He said the government was committed to its target of raising the steel production to 300 million tonnes by 2025. He also pointed out that 26 supplementary lease deeds approved by Odisha govt. and another 7-8 iron ore mines in Karnataka to start production shortly. For augmenting coking coal production, Jharia Action Plan report has been prepared. It is likely to improve Jharia coal production from next year.

FIMI president H Noor Ahmed sought urgent lifting of the ban on dumping or stacking of ore outside the mining sites, which is hindering the reopening of iron ore mines, particularly in Goa, Karnataka and Odisha.
He also raised voice for the iron ore miners against the Odisha govt.’s decision which does not allow sale of more than half the production outside the state.

Representative from JSW Steel Ltd. explicitly described how painful it is to source and transport iron ore in Karnataka from the e-auctions as it has to take multiple permissions and clearances from various authorities, many of which are overlapping and unnecessary. It also increases the costs manifold.

Representative from Vedanta Ltd highlighted the comparison of taxation in mineral sector between India and other countries and how it is diminishing India’s competitive edge. The effective tax rate in India is as high as 40-45% as compared to below 10% in other mining giants like Australia and Brazil.