Shaping the Mining Industry
for Future
By G.L. Tandon
Former Chairman, Coal India Limited
Mining is a very peculiar industry
difficult to understand its intricacies one has required academic background
and direct exposure of field experience – the varied – the better.
Acquisition of competency certificates of management separates for opencast,
underground, coal and metalliferous mining were pre-requisites for ensuring
optimal exploitation and efficient results from the available mineral resources.
Dilution in these norms has been one of the factors responsible for deterioration
of mining standards and its images.
Unlike mining with many handicaps;
other industries, factories and plants have lot of options. Site locational
advantages to avoid problems of nationals parks, forests, fertile land
acquisition, rehabilitation of land and persons displaced, availability
of facilities like power, water, rail/road and urban area benefits are
not available to Mining. A mine has to be developed and operated
only where the mineral exists and as such its sitting cannot be shifted.
Mining involves disturbance of lands, persons and the vegetable growth
along with biodiversity of that area. By scientific, systematic and
well organized efficient mining under the aegies of liberal and forward-looking
management, it is possible to extract the mineral wealth for the benefit
of the country and leave the area in much better than original shape by
planting more trees and by development of the entire area with roads, communications,
schools, hospitals and other amenities. There are several examples
like Neyveli – NMDC’s, TISCO, Gujarat Ambuja and Kudremukh mines there
are many more. The original scares of aesthetics in certain badly
mined areas are however, difficult to remove.
In addition to site-choice restrictions,
the mine itself and the facilities created, have limited life-as the entire
facilities need to be wound up when the mineral gets exhausted. The
mine and whole set of facilities are thus required to be recreated and
re-developed at the new mineral location creating more and more scars of
degradating memories if proper care is not taken by the owners and management.
Mineral classification and putting
them under suitable heads will help in evolving long-term strategy for
dealing with them in an optimal way. Broadly they may be classified as
(i) Energy resource e.g. Coal, Lignite, Oil, etc. (ii) Mettalic, (iii)
Non-metallic and (iv) Atomic/strategic, though several sub-classifications
can be attempted. Energy Resources once mined/extracted get lost
forever and cannot be replaced by substitutes or by recycling. Their
loss can be made up only by exploiting renewal or other Non-conventional
resources like Hydro-Solar wind and Bio-Mass etc. In case of metallic
and non-metallic minerals, substitutes and recycling by zero wastage and
other techniques is possible with the scientific and technological advances.
Care and caution, therefore, need to be observed while shaping policies
for exploration, exploitation, handling and utilization of such minerals.
Funding, technology, quality of mineral occurrences and the final product
needs along with delivery timing - all play their respective role.
Mining is as old as the man himself.
It has undergone transformation in form, shape, techniques of exploration
and extraction, grades of mineral to be extracted and quality of final
product, with the passage of time depending on the stage of development
from caveman-stone age to Industrial Revolution – discovery/invention of
energies and technologies through electricity, electronics to information,
communication technologies and now the knowledge age Minerals are the oldest
and closest to the nature. Through technology and economics you have
to convert them into a resource and by exploration into a reserve.
I refer to our scriptures regarding “KAL CHAKRA” - the WHEEL OF TIME”
- “God sleeps in stones – Breathes in plants – Dreams in Animals and Awakens
of Human Beings”. This is also perhaps closest to the sensitivity
of an environmentalist who having deep respect and faith in nature will
like the Environment to remain undisturbed, particularly if the stones
(other name for minerals) – occur in forests and sensitive Bio-Diversity
area. The whole universe including man is made of five elements of
Nature, Space, Air, Fire, Water and Earth. In terms of science and
chemical analysis everything is a chain of Hydrogen, Carbon, Nitrogen with
Oxygen playing its active role.
Reckless exploitation of natural
resources in different parts of the world has resulted in forest degradation
to abysmal low levels. Indian forest cover from almost 40 per cent
has come down to 10-11 per cent. Many beautiful manifestations of
nature like Amazon in S. America, Himalayas and Ghats in India and several
such in Africa and different parts of the world have been degraded to a
level causing serious concerns to the safety of man and other living creatures.
Advice by our senior leaders and saints that “There is an enough for everyone’s
need, but not enough for everyone’s greed”, has and is still being ignored.
I quote from our scriptures about the importance of forests/trees, “A stepped
well is equal to ten (small) wells; a Lake is a equal to ten (stepped)
wells; a son is equal to ten lakes (in importance); and a tree is equivalent
to ten sons”.
Our ancestors used minerals and other
natural resources very cautiously. Chanakya in Kautilya Shastra treats
“Minerals as Treasuries of nations”. With materialistic and consumerism
outlook, minerals have been downgraded as mere raw material of low value,
Rich and developed nations with scientific and technological advances convert
these minerals into wealth of high value products while poor and developing
countries get very little in return for export of their raw materials.
India with long history needs to convert minerals into wealth of high products,
encourage production and export of high valued products, discourage export
of low value raw materials and instead encourage export of raw materials
of low value and conserve our own mineral and related natural wealth.
This is more relevant to Hydro Carbons like Coal, Oil and Natural Gas,
which once mined, are lost for ever and even substitutes are not easily
available. An optimal balance needs to be drawn as a long-term vision
strategy for the country. As wise people say “we have not inherited
natural resources from our forefathers; but have instead borrower them
from our future generations”. We must, therefore, plan and execute
our plans and projects to give back more than what we take and leave back
the nature with its beautiful resources in much better shape than we inherited.
Even after 55 years of country’s
independence more than half of the population remains poor and does not
enjoy even one square meal a day. This is not because of lack or
shortage of resources in the country in spite uncontrolled rise in population
and immigrants coming from neighbouring countries. It is in fact
a result of poor management and corrupt practices in handling of nation’s
resources. As minerals generally occur in remote and economically backward
regions, mining can play an important role as leveller and in improving
the lot of those living in such areas. Mining should not be treated
as mere exploitation of the mineral wealth of any region. By judicious
mix of policies of the Centre, State, region and investors, mineral wealth
can be used for the benefit of the nation, and the entire area can also
be developed by roads, communications, education, medical and market facilities.
R &D technology plays an important
role in shaping of the mining industry where raw material itself get converted
into as final product after careful exploration, drilling and digging,
handling and processing. We need not imitate the rich countries by
importing and deploying huge machines and equipment. We have very
low per capita wages scarce and costly finance, as compared to rich countries.
An unplanned and poorly executed mining venture with huge machines is not
only detrimental to employment problems in our overpopulated country but
also a costly affair due to low productivity, high depreciation, poor maintenance
and operation as a result of costly imported spares. To produce the
wealth at world competitive prices, one has to strike a careful balance
while planning mine. Development of R&D in mining and mining
equipment industry within the country, unfortunately has not kept pace
with the production and expansion of mineral industry. This is one
of the reasons country is finding handicaps as the mineral cutoff values
decrease and mining becomes deeper and deeper. Kolar Goldfields have
been closed. In coal industry stress is only on open-cast mining
with the result 100 percent underground share in 1947, over 70 per cent
in early seventies at the time of total nationalization has now come down
below 20 per cent, a very dismal signal for our future generations.
In the Global Band-wagon of today,
we must be clear about Globalization, Liberalization and Privatization.
Every country today needs exchange of finance, technology, goods, machines,
skills, education and training. India has been always in the forefront
of spiritualism (Science of Life) and also opens to ideas, trade and immigrants
from overseas. Our shastras openly advocate for the “Good ideas’
wind to enter freely”. I quote Swami Vivekanand “Let the ideas and
suggestions come in; select and absorb those which are good and reject
others not suitable to us”. The object should be –what is in the
best interest of the country. We should not resist foreign investments,
technologies, liberalizing our economy and moves for privatization if they
help in improvement of efficiency, productivity and enhance our competitive
strength in the increasing global market. This is one place our mining
industry legs behind badly. Outsourcing of services and involvement
of latest ideas in various fields can be delayed only at our own peril.
Mining is the foundation base for
all materials from a needle to aeroplanes, computers, silicons, IT and
all Industrial and non-Industrial activities and needs such a recognition.
Mining community will have to make efforts to project in positive terms
its contributions and its image. Unlike other professions mining
is fragmented so widely that instead of an integrated and coordinated projection
of image, some of the sectoral bodies work at cross-purpose. We must
understand that up and above helping each other –sky is the limit and there
is a place for everyone. Crab-mentality brings everyone down and
also the Professional Image. In shaping the future of mining industry,
holistic approach for all-round improvement of quality, timely deliveries
and costing of the products will become vital to stand the ever-increasing
competition from within the abroad. Top-quality management with long-term
vision therefore, becomes necessary so that the mineral wealth is exploited
and used optimally.
To sum up for Shaping the Mining
for Future, some of the following issues/factors need our urgent attention:
-
Mining and Environment are the two sides
of same coin. To avoid/minimize adverse effects of land-environment
disturbance mining plans must provide for better compensation and rehabilitation
of environment, land, extra tree planting, land scaping and all-round development.
-
Every effort should be made to plan
for converting minerals into national wealth by tieing up with down stream
facilities for production of high value products.
-
Mineral Industry needs a Vision-Vision
of Millennium and Millennium strategies.
-
To conserve mineral wealth for posterities,
renewal alternatives for energy resources and substitutes for metallic
and other minerals should receive encouragement.
-
Research and Development and Technological
innovations are needed to prolong life of the mineral wealth Lower cut
off-grade, recycling (life-cycle development) and Zero-wastes and different
phases of mining deserve serious attention.
-
Our national mining Plans should provide
for encouragement of import of exhaustible energy resources, cheaper metallic
minerals and exports of high valued products.
-
Mining is the foundation base of all
materials and needs such recognition.
-
Mining is the greatest wealth creator
and developer of remote and economically backward regions and thus most
suited to improve the lot of poor masses.
-
National Mining Companies whether in
public sector enterprises, private or joint sector must equip themselves
to face global and indigenous competition. It will be difficult to
delay and resist pressures of costs, price, quality and timely delivery
of products.
Improving image of mining by proper
education and publicity and also by following ethical values, professional
honesty will enhance our own individual image and status in the society.
Mining community needs to make an integrated and coordinated approach for
this purpose.
By
arrangement with Kaleidoscope
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