MINERAL ECONOMICS

DESCIPLINE

PRESENTATION
BY
SCIENTIFIC OFFICERS ASSOCIATION
INDIAN BUREAU OF MINES

1
 MINERAL ECONOMICS
1. Economics is essentially management of
want.
2. The term Mineral Economics was for the
first time introduced in USBM in 1920s.
3. Often people refer to it as a branch of
economics.
4. But in reality the specialties associated with
minerals & mineral deposits make
mineral economics a very complex subject -
quite apart from pure economics.

2
 Mineral Economics
Mineral Economics is the academic
discipline that investigates and promotes
understanding of economic and policy
issues associated with the production and
use of mineral commodities

3
 Mineral Economics
The range of topics addressed has grown
as well and now includes the
environmental impact of mineral
production and use, the resource curse,
the rise of China and India as major
consumers, the concerns of indigenous
people and local communities, and a host
of other economic and policy issues
associated with mineral commodities.
4
 PRESENT FUNCTIONS
Mineral Economics Division
PREPARATION & UPDATION OF NATIONAL
MINERAL INVENTORY.
MARKET SURVEY & NON-FERROUS METALS
CONSUMPTION.
INDIAN MINERAL YEAR BOOK.
MONOGRAPHS & BULLETINS.
MINERAL LEGISLATION, TRADE, TAXATION &
INTERNATIONAL CO-OPERATION.

Contd 5
MINING LEASE DIRECTORY & HANDBOOK ON
ML & PL.
WORLD MINERAL INTELLIGENCE & SPECIAL
STUDIES.
MINERAL INFORMATION & ADVISORY SERVICES
ON POLICIES, LEGISLATION,
TAXATION, RESOURCES UTILISATION.
LIBRARY, PRESS & DRAWING SECTION AS
SERVICE UNIT.
MINERAL RESOURCE INTELLIGENCE SYSTEM
CENTRE FOR DATA BASE MANAGEMENT.

6
 ROLE & VISION FOR IBM
ENVISAGED BY MoM.
i)Regulatory Task and

ii) Developmental Task.

MINERAL INTELLIGENCE AND INFORMATION SUPPORT

7
 MINERAL INTELLIGENCE AND
INFORMATION SUPPORT

MINERAL ECONOMICS DIVISION

( Proposed Revised Structure)
(i) National Mineral Resources Branch
(ii) Mineral Concessions Branch
(iii) Mineral Based Industries Branch
(iv) Mineral Policy & Taxation Branch
(v) Mineral Transport and Logistic Branch
(Contd.)
8
(vi) Mineral Markets and Techno-Economic
Evaluation Branch
(vii) World Mineral Intelligence and World
Mineral Legislation Branch
(viii) International Co-operation Branch
(ix)Data Dissemination, Commodity
Specialists and Publication Branch
(x) HRD & GAD and Finance Branch

9
 MANPOWER REQUIREMENTS FOR THE
PROPOSED RESTRUCTURED MINERAL
ECONOMIC DIVISION
Designation No. of Posts
Director (Mineral Economics) - 1
Chief Mineral Economist - 3
Sg. Mineral Economist - 6
Mineral Economist - 12
Dy. Mineral Economist - 30
Asstt. Mineral Economist - 30
Mineral Officer -60
10
 MANPOWER REQUIREMENTS FOR THE
PROPOSED RESTRUCTURED MINERAL
ECONOMIC DIVISION
Designation No. of Posts
Chief Editor - 1
Sr. Editor- 2
Editor - 4
Sr. Administrative Officer - 1
Administrative Officer - 2
Library & Information Officer - 1
Asstt. Library & Information
Officer - 2
Senior Technical Assistant - 10
Press Assistant - 10
Stenographer - 45
Clerical Staff (UDC,LDC,HA,OS)- 25 11
 NATIONAL MINERAL RESOURCE BRANCH

Collection of data, tabulation, synthesis

and computerization.
Updation carried out after a gap of five
years.
Strengthen this activity by re-orientating
its modalities to reduce the time lag.
Presently 65 minerals.
proposed all minerals including coal.

12
 MINERAL CONCESSION BRANCH

Preparation and updation of mining lease

information.
Directory of annual mining Leases under
Rule 57(2) of MCR, 1960.
Directory provides location, lessee, lease
area, date of grant and execution, period,
etc.
Proposed RP, PL, ML will be looked by
after the Mineral Concession Branch.
13
 MINERAL BASED INDUSTRIES BRANCH
Collected and collated industry-wise on non-
statutory basis has a poor coverage.
Proposed full database on iron & steel, cement,
alumina/aluminium, lead-zinc, copper, refractory,
ceramic, fertilizers, thermal power, abrasives, etc.
Yearly reports on iron & steel, cement, base
metals.
Covering capacity, production, raw material
availability, proposals for capacity addition,
infrastructure requirement, policy issues, custom
duty, excise duty, trade, consumption, etc.
14
 MINERAL BASED INDUSTRIES BRANCH

Statutory basis under the MMDR Act.

The focus of mineral based industries branch
will be to manage information and statistics
covering capacity, production, end use
consumption, technology, substitution, newer
raw materials, price of raw materials, their
availability and logistics.
Keep a track of changes in government
policies in the mineral based industries.
15
 MINERAL BASED INDUSTRIES BRANCH

Keep update information on the events

happening in this area like capacity
increase, greenfield and brownfield projects,
their socio-economic implications,
environmental problems, etc.
Technological changes in the mineral based
industry
Expert in the area of mineral based
industries and advise government and the
industry, accordingly.
16
 MINERAL POLICY AND TAXATION

NMP-2008 enunciated guiding principles for

mining and mineral based industries.
Mining and mineral based industries are
also government by other laws like
environment, pollution, tax, laws, trade
policies etc.
State Governments have framed Minor
Mineral Concession Rules.
Granite Conservation and Development
Rules and Marble Development rules.
Export-Import Policy. 17
 MINERAL POLICY AND TAXATION

No database on policy framework of different

states, impact of taxation, duties is available.
Branch will collect and maintain a database
on issues related to mineral policies of
various state governments, minor mineral
concession rules of various states, export-
import policies, anti-dumping, excise duties,
custom duties, and issues related
implementation of MMDR Act, MCR, MMDR,
Environmental and other laws.
18
MINERAL TRANSPORT AND LOGISTICS BRANCH
Rail, road and ports are the three important modes
of transport.
For planning the infrastructure requirements and
sectoral distribution of mineral traffic to be carried
by different modes of transport, a regular data flow
is necessary.
About 994 million tonnes of major minerals and
equal quantity of minor minerals are transported
across the country through road and rail.
Minerals are location speciic and therefore for their
transport adequate infrastructure by road and
railways is necessary.
19
MINERAL TRANSPORT AND LOGISTICS BRANCH
Collection of data on transport of minerals and
mineral based products is quite complicated.
80% of the port traffic is accounted by mineral
commodities (including POL) and mineral based
products.
Mineral Transport and Logistics Branch will collect
data on road transport of minerals/metals, railway
transport, port traffic, hinterland connectivity,
logistics, etc. by maintaining a close liaison with
the related agencies like railways, road-transport
authorities, ports, customs, etc.

20
 MINERAL MARKETS AND TECHNO-ECONOMIC
EVALUATION BRANCH

In a globalised economy, close monitoring of

mineral markets is essential for policy planning.
Mineral markets are also influenced by technology
changes in the consuming industries.
Market Survey unit of ME division carries out
market survey on mineral commodities and metals.
Will carry out these activities for important mineral
commodities.
Demand-supply analysis of important mineral
based industries.
Mineral and metal prices greatly influence the
mineral and metal markets.
21
 MINERAL MARKETS AND TECHNO-ECONOMIC
EVALUATION BRANCH
Realistic prices of mineral commodities
there is a need to devise a mechanism to
gather realistic market prices.
Economic viability of mining, mineral
beneficiation and mineral based industries
are dependent on various techno-economic
factors.

22
 WORLD MINERAL INTELLIGENCE AND WORLD
MINERAL LEGISLATION BRANCH

Globalised economy and under free trade

regime updated information on the
worldwide developments to formulate
domestic policies.
Growing significance of world data.
Will collect, compile and maintain a
database.

23
 INTERNATIONAL CO-OPERATION BRANCH
World class institute in knowledge data bank
covering all aspects of mining, exploration,
mineral beneficiation, taxation, policies, etc.
No such activity is inexistence.
Will maintain close liaison with leading
producing nations, leading importers,
leading institutions engaged in the field of
beneficiation, exploration, mining, policies,
etc.
Will also maintain liaison with the
international institutes.
24
 COMMODITY SPECIALIST, PUBLICATION AND
DATA DISSEMINATION BRANCH
Commodity specialists will have the expertise in
specific commodity or group of commodities.
They will keep track of all developments taking place
in the respective commodity.
Data Dissemination.
Publications.
Indian Minerals Yearbook. Market Survey on Mineral
Commodities and Metals, Bulletin on Mineral
Information, Directory of Mineral Consumers.
Periodical reports on the related topics will be brought
out.
Reprography and Printing.
Library.
25
HUMAN RESOURCE DEVELOPMENT, GENERAL
ADMINISTRATION AND FINANCE BRANCH
Full-fledged HRD, GAD and Finance
Branch.
Training needs of the Officers/Staff.
Expertise in Mineral Economics discipline.
Mineral Economics is the discipline that
investigates and promotes understanding
of economic and policy issues associated
with mineral commodities and products.
Universities and the Institutes.
26
THANKS

27