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Shaping the Mining Industry for Future
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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:
 

  1. 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.
  2. 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.
  3. Mineral Industry needs a Vision-Vision of Millennium and Millennium strategies.
  4. To conserve mineral wealth for posterities, renewal alternatives for energy resources and substitutes for metallic and other minerals should receive encouragement.
  5. 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.
  6. Our national mining Plans should provide for encouragement of import of exhaustible energy resources, cheaper metallic minerals and exports of high valued products.
  7. Mining is the foundation base of all materials and needs such recognition.
  8. 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.
  9. 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.

  10. 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
Shaping the Mining Industry for Future
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