The recent decision (2nd May ‘2007) of the Central Government to reduce the export duty on ore with iron content of below 62 per cent to Rs 50 per tonne will have injurious ramifications to the principles of mining and also on the community that thrives around the mining regions. This is an insult to the injury that the Indian Iron ore mining is plagued with even at a time when the prices are booming. The export levy would continue to be Rs 300 per tonne on iron ore rich beyond 62 percent. The impact is expected to be two fold. This has apparently been done to discourage the export of iron-rich ore and only make available value-add steel and iron products in the international market. Both, China and Japan have been protesting high export duties on iron ore levied by the Union Government. China, according to reports, threatened to boycott iron ore from India. The latest duty reduction may lead to softening up of China's stand vis-à-vis iron ore from India. But this points to few other very grave things. Has not our finance minister been tricked into this by the small scale iron ore mining lobby to a decision that would be a drag on royalty? What happens if some miners blend rich iron ore with the poorer one to keep the iron percentage below 62% to play hide and seek with the levy in connivance with some of our own people or even with the Chinese and Japanese. Can not one see the chuckle in the faces of the certifying officers in for a big time with the manipulation of reporting the grade values? What if high grade ores are passed as low grade ores with money changing hands? Such policies lend to the credos of short-sightedness of the government. These knee –jerk reactions from the ministry are bad for the industry. Can there not be a policy to encourage setting up of steel plants using below 62% grade Iron ore, even on a collaborative basis? Apparently, the policy seems to encourage small scale mining of poor grade ores. At the present, it is not a proper thing to do.
With the start of liberalization of Iron ore export , pocket mining of iron ores have increased in the sourthern and western tracts of India in an unprecedented scale. The scourge is now spreading in Goa. Hugely manipulated by the local mafia and politicos, the small reserves are squandered for profiteering in manners never seen before. A visit to the Bellary-Hospet region of Karnataka would open the eyes of anyone of the wanton destruction of small ore bodies in total disregard to the laws of mineral conservation and to the community of poor local inhabitants. Who are being benefitted: local mineral mafia, politicians and a handful of administrators. What distinction it has brought to the region. It is said, not without doubt though, that the region has the highest number of private aeroplane owners of the country. The fly by night operators do require them. Almost surely, the local people ,even if, are temporarily well-off but only to be trouped back to darkness once the small scale mining comes to an end.
Hence, such oblique encouragements to small scale Iron ore mining will be counterproductive in not very long run for the following reasons:
• Small scale mining by scope and size are unable to comply with basic rules of industrial safety, environmental upkeep and social responsibility.
• The ownership structure is so fragile that they can not be held for any impropriety.
• Such scale of mining does not lead to the development of any organizational culture. We must learn the lesson from licensing of small explosive manufacturers who all but devastated the culture of healthy explosives manufacturing and development.
• They are more exploitative of labor than large scale mining per se .
• Small scale mining can not have economies of scale. They would lack efficiency and enterprise, before long.
• Contrary to the popular belief, they do precious little to the sustainable development of a region. In fact, they care less.
• The mining practice followed is archetypal. They are not main stream mining and thus forever looked down upon by the professionals.
In an era of consolidation ,we must now think of small multi ore body single lease system to a solvent party than to distribute individual leases for each small ore body. The concept of small local ownerships is outdated, and does not do any good to anyone other than the owner.
The mining industry does not have a patient ear to listen to the NGOs. This is about the state of denial we are cocooned to. But for once , let us hear what Sunita Narain of Center of Science and
Environment, one credited with the findings of pesticides in cola, has to say about small scale Iron ore mining in Goa in one of her latest web offerings:
Industry has its own ways of 'persuading' local people. Everywhere I went, I heard tales of corruption and nepotism. The best tool seemed to be for local leaders-often panchayat heads-to first take people's
concern to the miners and then use this opposition to get lucrative contracts. The best going deal is in transportation. In all this, the local politician has been reduced to nothing more than a middleman-a
pimp for the miners to milk.
Are we with the community or against it ? Are we, the people of and around the minerals industry, losing sight of our own reasons of existence? Are we not responsible?
Thursday, April 17, 2008
A Brief Review of the New Indian Mineral Policy: Will it change Indian Mining?
The new National Mineral Policy was introduced in the ensuing monsoon session of the Parliament and it will provide a single window clearance to foreign investors for mining projects in India. On 14th March, 2008 to boost to investment in the Indian mining sector — including foreign direct investment — the amendments to the Indian Mineral Policy were proposed. An amendment to make the required changes in the existing Mining Act will be introduced in the ongoing session of Parliament.
Hallmarks of a good policy document should hinge on four factors that it should espouse: efficiency, attractiveness, vision and responsibility. This mineral policy should also be discussed in the same light. In the following we will discuss some salient points of the policy with the critiques they deserve:
Trading Mineral Licenses
The government of India has allowed companies to trade mineral licenses freely. New policy would mean that companies interested only in prospecting need not undertake mining but sell the license to a company interested only in mining. The proposal has been included in the new mineral policy that was cleared by Cabinet on Thursday. The new policy has proposed a major change by way of decoupling mineral lease licenses. This would bring more focus as companies with expertise in prospecting need not undertake mining. They can sell their license to another company. The ministerial cabinet expects the change would allow flow of investments from South Africa, Canada and Australia where companies have shown interest in bringing their technical expertise required for identifying the potential of a mining block. Transfer of prospecting license is permitted by several countries. The international practice is being adopted here with the intent of bringing over $2 billion investment in the sector in the next few years. The move is expected to also result in better yields from mining blocks by use of better technologies. It will also encourage competition.
critique
A very welcome step considering the flexibility of investment that it deserves. For instance, out of a total 17,000 sq km of coal bearing area in the country, only 5,400 sq km is fully explored (8 holes per sq km) and another 12,000 sq km is regionally explored (1-2 holes per sq km). Every year, the total drilling requirement will be 1 million meter along with commensurate coring, sampling analysis and report preparation which involves an investment of Rs 400 crore. While the task is daunting, a policy should not encourage turncoats and inside traders. Suppose, a mineral prospecting company selectively releases either real or fudged prospecting and exploration data to a company to selectively bid in the auction process. A good safeguard for transferring the rights would be to check the records of the transferee companies. Further, the government must ensure sound disclosure norms. Miners should not forget Bre-X scandal to their own peril.
A good policy should have five objectives:
1. It should encourage efficiency.
2. It should encourage attractiveness and competition.
3. It should help progress towards the development of an industrial framework.
4. It should encourage sound business practices where banks and financial institutions can participate.
5. It must promote responsibility
Value Addition
The much-delayed policy has tried to balance the aspirations of mineral-rich states who were opposed to certain provisions in the policy by retaining their rights to give preference to value addition (within the state) and PSUs while granting mineral leases. While using this system of preference, the state would be bound to offer mineral lease to applicants not belonging to state if there are no applicants for value addition within the state.
critique
It will discourage small time operators in the mining sector- a much awaited step. It will help organized mining. It will encourage the government of India’s participation in the mining sector. Local level favoritism will be discouraged.
But value addition in itself does not mean much; it needs to be quantified. For example, suppose granite blocks of more than 250 mm size has a market price of Rs. 140 per tonne. Now a developer breaks it into less than 50mm chips to cost it at Rs. 170 per tonne. Is this enough value addition, considering in many cases, a small crusher or few laborers can do it? Surely not, since it will not encourage better investment nor will encourage better use of technology. The government should earmark minimum value addition, for example, a minimum of 40% of the start value in every steps of value addition, to encourage better and substantial investment. Similarly, whenever the minimum value addition is to be taken up, the quantity should also be considered. There should be a graded system; this was not mandated in the policy. This is a great weakness of the policy, even with the promise to provide so many opportunities, and should be modified immediately.
Independent committee of experts for renewal of license
For renewal of a mining license, the Centre may constitute an independent committee of experts, may be from Geological Survey of India (GSI) or IBM. The committee would assess the performance of the original allottee before recommending renewal of the license. The state could not deny the renewal by seeking value addition within the state.
Critique
The word “performance” should be clarified with the aspects of appropriate wage, mineral conservation, health and safety, environmental control, retraining of the workers and closure plans. The performance should include the benchmarks of corporate social responsibility standards. Dilution should not be encouraged at all because all governments should care for long term citizen welfare and natural resource conservation.
The ambit and coverage of the committee should include prominent academics and researchers in the mineral sector. This is important considering the technical challenges the policies often face and shall promote more democratic decision making.
Auctioning mining blocks
In another reform initiative, the new policy has permitted auctioning of a mining block that has been prospected (potential of mining block identified) by state agencies like GSI. For these blocks, the present system of a government committee assessing the applications and granting license would be dispensed with.
States would, however, be free to offer exploratory license for new mining blocks.
critique
This policy may not work given that many of the blocks were inadequately explored. Enforceable transparency to all the involved parties will be key to the success. Government must reduce the risks of inaccuracy in exploration to make this policy successful for mining investment. The government must also have means to realize the costs of bringing in more relative accuracy and less risk in the investment.
States should not be allowed to offer exploratory license on re-exploration of blocks that can have ill motives and can offer cans full of worms. Exploratory licenses for a block that was explored less than 20 years back should not be given to any party without checking the antecedents.
Local Area Development
The policy has also put responsibility on the mining companies for undertaking local area development and other infrastructure projects in the mineral bearing areas. At least 10% of the profits would be used for the purpose.
critique
Similar such initiatives were not very successful in the past. As a supplementary to the policy, tax breaks can be announced for new projects. Encourage business development in the process of infrastructure development.
Dispute Resolution
The government today approved the new National Mineral Policy, which, among other things, proposes the setting up of an independent dispute resolution mechanism — the Mining Administrative Appellate Tribunal. The Tribunal will become fully operational in six months, a release issued after a Cabinet meeting said.
critique
This is a very good and timely step. It will auger well for all involved with the industry. It will speed up the dispute resolution process.The tribunal ,its formation and function, should follow the Rules of Arbitration of the International Chamber of Commerce (“ICC Rules”) and the United Nations Commission on International Trade Arbitration Rules (“ UNCITRAL Rules”).It will encourage collaboration and alliance.
The Missed Points
A good national policy should not only look for the benchmarks from other countries. The policy should also cover few things that it should have created to help frame a better face of mining. Some of the missed points are:
1. The mineral policy should have kept the provisions of abandoned mined land fund , similar to AML Fund of the USA, in the policy statement. This can be a very costly oversight, considering sustainable development of mineral resources. The fund could be generated from the cess or additional royalty provisions. The fund can be used on public –private partnership basis for re-vegetation and re-generation of mined out areas. The impacts of underground mining should not also be overlooked.
2. Mines should have environmental and effluent discharge standards in keeping with the best of the world and the ministry should not only look in to Indian Bureau of Mines (IBM) only for expertise. Other agencies like NEERI , IITs and ISM should be taken in framing the rule.
3. One glaring deficiency of the policy is to have not looked into the matters of mineral conservation. No mining is much better than little or nibble mining considering the effects that it leaves on the nature and ecosystem .It is also bad economics. Many underground coal mines work on 20% recovery of resource. Such practices should not be allowed at any cost even if otherwise the mining looks profitable and viable. It should be proposed that no mine developer should be allowed to do mining till he promises to do at least mining of the 80 % of the proven reserve.
4. Mining is considered worldwide as an economic activity that helps rural and tribal community, more than many other sectors. But since most of the mining activities are away from the prying eyes of the media and urban population, it breeds corruption at the local level. Workers of mining are thoroughly exploited in terms of wage, poor working and living condition, poor sanitation etc. It is time that the mineral policy has a look on this community side of mining.
5. The policy does not look into making the technology and method of mining to be developed as an institution. For example, like any civil constructions that require registered civil engineers to pass a plan , mining should have registered planners and engineers those who would certify, prepare the accepted plans in accordance of the rule.
The above points should be considered before the suitable amendments in the mines act following the endorsement of the mineral policy in both houses of the parliament.
Hallmarks of a good policy document should hinge on four factors that it should espouse: efficiency, attractiveness, vision and responsibility. This mineral policy should also be discussed in the same light. In the following we will discuss some salient points of the policy with the critiques they deserve:
Trading Mineral Licenses
The government of India has allowed companies to trade mineral licenses freely. New policy would mean that companies interested only in prospecting need not undertake mining but sell the license to a company interested only in mining. The proposal has been included in the new mineral policy that was cleared by Cabinet on Thursday. The new policy has proposed a major change by way of decoupling mineral lease licenses. This would bring more focus as companies with expertise in prospecting need not undertake mining. They can sell their license to another company. The ministerial cabinet expects the change would allow flow of investments from South Africa, Canada and Australia where companies have shown interest in bringing their technical expertise required for identifying the potential of a mining block. Transfer of prospecting license is permitted by several countries. The international practice is being adopted here with the intent of bringing over $2 billion investment in the sector in the next few years. The move is expected to also result in better yields from mining blocks by use of better technologies. It will also encourage competition.
critique
A very welcome step considering the flexibility of investment that it deserves. For instance, out of a total 17,000 sq km of coal bearing area in the country, only 5,400 sq km is fully explored (8 holes per sq km) and another 12,000 sq km is regionally explored (1-2 holes per sq km). Every year, the total drilling requirement will be 1 million meter along with commensurate coring, sampling analysis and report preparation which involves an investment of Rs 400 crore. While the task is daunting, a policy should not encourage turncoats and inside traders. Suppose, a mineral prospecting company selectively releases either real or fudged prospecting and exploration data to a company to selectively bid in the auction process. A good safeguard for transferring the rights would be to check the records of the transferee companies. Further, the government must ensure sound disclosure norms. Miners should not forget Bre-X scandal to their own peril.
A good policy should have five objectives:
1. It should encourage efficiency.
2. It should encourage attractiveness and competition.
3. It should help progress towards the development of an industrial framework.
4. It should encourage sound business practices where banks and financial institutions can participate.
5. It must promote responsibility
Value Addition
The much-delayed policy has tried to balance the aspirations of mineral-rich states who were opposed to certain provisions in the policy by retaining their rights to give preference to value addition (within the state) and PSUs while granting mineral leases. While using this system of preference, the state would be bound to offer mineral lease to applicants not belonging to state if there are no applicants for value addition within the state.
critique
It will discourage small time operators in the mining sector- a much awaited step. It will help organized mining. It will encourage the government of India’s participation in the mining sector. Local level favoritism will be discouraged.
But value addition in itself does not mean much; it needs to be quantified. For example, suppose granite blocks of more than 250 mm size has a market price of Rs. 140 per tonne. Now a developer breaks it into less than 50mm chips to cost it at Rs. 170 per tonne. Is this enough value addition, considering in many cases, a small crusher or few laborers can do it? Surely not, since it will not encourage better investment nor will encourage better use of technology. The government should earmark minimum value addition, for example, a minimum of 40% of the start value in every steps of value addition, to encourage better and substantial investment. Similarly, whenever the minimum value addition is to be taken up, the quantity should also be considered. There should be a graded system; this was not mandated in the policy. This is a great weakness of the policy, even with the promise to provide so many opportunities, and should be modified immediately.
Independent committee of experts for renewal of license
For renewal of a mining license, the Centre may constitute an independent committee of experts, may be from Geological Survey of India (GSI) or IBM. The committee would assess the performance of the original allottee before recommending renewal of the license. The state could not deny the renewal by seeking value addition within the state.
Critique
The word “performance” should be clarified with the aspects of appropriate wage, mineral conservation, health and safety, environmental control, retraining of the workers and closure plans. The performance should include the benchmarks of corporate social responsibility standards. Dilution should not be encouraged at all because all governments should care for long term citizen welfare and natural resource conservation.
The ambit and coverage of the committee should include prominent academics and researchers in the mineral sector. This is important considering the technical challenges the policies often face and shall promote more democratic decision making.
Auctioning mining blocks
In another reform initiative, the new policy has permitted auctioning of a mining block that has been prospected (potential of mining block identified) by state agencies like GSI. For these blocks, the present system of a government committee assessing the applications and granting license would be dispensed with.
States would, however, be free to offer exploratory license for new mining blocks.
critique
This policy may not work given that many of the blocks were inadequately explored. Enforceable transparency to all the involved parties will be key to the success. Government must reduce the risks of inaccuracy in exploration to make this policy successful for mining investment. The government must also have means to realize the costs of bringing in more relative accuracy and less risk in the investment.
States should not be allowed to offer exploratory license on re-exploration of blocks that can have ill motives and can offer cans full of worms. Exploratory licenses for a block that was explored less than 20 years back should not be given to any party without checking the antecedents.
Local Area Development
The policy has also put responsibility on the mining companies for undertaking local area development and other infrastructure projects in the mineral bearing areas. At least 10% of the profits would be used for the purpose.
critique
Similar such initiatives were not very successful in the past. As a supplementary to the policy, tax breaks can be announced for new projects. Encourage business development in the process of infrastructure development.
Dispute Resolution
The government today approved the new National Mineral Policy, which, among other things, proposes the setting up of an independent dispute resolution mechanism — the Mining Administrative Appellate Tribunal. The Tribunal will become fully operational in six months, a release issued after a Cabinet meeting said.
critique
This is a very good and timely step. It will auger well for all involved with the industry. It will speed up the dispute resolution process.The tribunal ,its formation and function, should follow the Rules of Arbitration of the International Chamber of Commerce (“ICC Rules”) and the United Nations Commission on International Trade Arbitration Rules (“ UNCITRAL Rules”).It will encourage collaboration and alliance.
The Missed Points
A good national policy should not only look for the benchmarks from other countries. The policy should also cover few things that it should have created to help frame a better face of mining. Some of the missed points are:
1. The mineral policy should have kept the provisions of abandoned mined land fund , similar to AML Fund of the USA, in the policy statement. This can be a very costly oversight, considering sustainable development of mineral resources. The fund could be generated from the cess or additional royalty provisions. The fund can be used on public –private partnership basis for re-vegetation and re-generation of mined out areas. The impacts of underground mining should not also be overlooked.
2. Mines should have environmental and effluent discharge standards in keeping with the best of the world and the ministry should not only look in to Indian Bureau of Mines (IBM) only for expertise. Other agencies like NEERI , IITs and ISM should be taken in framing the rule.
3. One glaring deficiency of the policy is to have not looked into the matters of mineral conservation. No mining is much better than little or nibble mining considering the effects that it leaves on the nature and ecosystem .It is also bad economics. Many underground coal mines work on 20% recovery of resource. Such practices should not be allowed at any cost even if otherwise the mining looks profitable and viable. It should be proposed that no mine developer should be allowed to do mining till he promises to do at least mining of the 80 % of the proven reserve.
4. Mining is considered worldwide as an economic activity that helps rural and tribal community, more than many other sectors. But since most of the mining activities are away from the prying eyes of the media and urban population, it breeds corruption at the local level. Workers of mining are thoroughly exploited in terms of wage, poor working and living condition, poor sanitation etc. It is time that the mineral policy has a look on this community side of mining.
5. The policy does not look into making the technology and method of mining to be developed as an institution. For example, like any civil constructions that require registered civil engineers to pass a plan , mining should have registered planners and engineers those who would certify, prepare the accepted plans in accordance of the rule.
The above points should be considered before the suitable amendments in the mines act following the endorsement of the mineral policy in both houses of the parliament.
Boom! Boom! Well, beware of the bumps ahead.
After a long time the smile is back in the face of professionals working in the commodity industry. Good news are coming from all quarters: huge profit, dramatic salary raises, new openings to the old mines, new investors, and huge demand for the resource personnel, etc. In an annual term the international prices of most of the minerals have gone up generally by about three times in this fiscal. Obviously, to the glee of all involved, the price side elasticity is not matched by cost side elasticity- making the grin widening since . Let me just give an example: the cost of production of granite used for road making is Rs.40.00 per tonne in Rajasthan (obviously, the laborers are not paid in full, full royalty is not paid, etc! God bless our governance and administration! ) and pit mouth value of the granite is Rs.150.00 per tonne. Yesterday’s farmers, albeit not all, are becoming today’s dollar millionaire. Mining is big business -not much known to the outside world- if one has hands on a small but good property .More so because one can throw all other responsibilities in the wind since money can sure buy friends in the government, away from the eyes of the public and media !
Another thing has quietly happened. Perhaps we are seeing the demise of cyclical nature of mining business that we have known for ages. Mining fortunes are believed to have a cyclical nature: excess supply brings down the price, downing of price brings down the investment and thus the supply, reduced supply increases demand, and increased demand brings in excess supply. Now just think of the case when supply will be less than the demand as new and good resources are becoming few ands far in between. But demand is increasing: emerging markets asking for more minerals, 2008 Olympics have gargantuan demands of products from minerals for swanky new stadia, creaking infrastructure of the Europe, and the America are crying for anything that is mineral. So what we see is that cyclical mining business is slowly turning into upwardly linear mining business. So the clamour for mining and minerals will only increase and the properties will be transferred from one hand to other by mergers and acquisitions. But transferring of mining property from one hand to other is not like acquiring a manufacturing plant and its business where due diligence is easier. Mining due diligence is extremely difficult because firstly, worldwide there is no established practice of mining property due diligence and secondly, there are very few professionals to do it today. What exists is very skeletal and is more mandated by financial managers than mining professionals. So there is a huge risk. Investors beware! There will be many dream merchants who will hard sell unrealizable windfalls of profit.
There can be yet another twist. A company might end up buying a dud property at a very high cost. But it can also do it intentionally. Today, there may be non mining interest in buying a mining property that is strategic in nature. If it fits into the leveraging scheme of the company, it might want to buy a property that in it may be an unviable proposition but fits well in the overall business plan. Say , an alumina producer having good bauxite property might be interested to buy a coal mining property at a price more than the total operating and utilization cost just because this gives him or her an opportunity to obtain a fixed and rated supply . So mining economics will not be the sole criterion ; what will prevail is the ultimate business linkages and their operating economics. All strategic mine plans today capture these opportunities. Any mining property means a lot o surplus land. With realty and infrastructure sector booming getting few lands is a good investment by itself. If no mining, one can open warehouses! Pardon me, but the cynics say that all our coal bed methane properties are only good for warehouse projects.
Excessive profit will be both good and bad news for the minerals industry. Good, simply because who does not like fat profit margins. Bad, because these will draw streams of new investors who will like to have a slice of the business and thus, creating new rules of game in the industry –disrupting the old. Such upheavals will not take place without its share of severe skewed competition, malevolence, corruption, antitrust, and translucent insider trading etc. Mining history is replete with such examples from the past.
The comfortable financial position of the industry should auger well for the mining education if the opportunities are taken. Throughout the world, mining educators by default or by design created a ghetto of their own –distancing themselves from the engineering community at large. We stuck ourselves to the belief that we were special and in the process, we could not create pedagogy that would help us befriend other engineers who would consider us one day as their peer. That took away our all round engineering position. The result is, in the face of such demands, mineral resources engineers are pathetically short of supply. That mistake should not be done again. It is time that mining education embrace mineral processing, petroleum engineering and related environmental engineering in their cheer to chart the path for holistic Georesources Engineering. Boom in the industry instills optimism that needs to be creatively utilized. Do not again walk the path of isolation .Who knows whether there will be yet another next time!
Another thing has quietly happened. Perhaps we are seeing the demise of cyclical nature of mining business that we have known for ages. Mining fortunes are believed to have a cyclical nature: excess supply brings down the price, downing of price brings down the investment and thus the supply, reduced supply increases demand, and increased demand brings in excess supply. Now just think of the case when supply will be less than the demand as new and good resources are becoming few ands far in between. But demand is increasing: emerging markets asking for more minerals, 2008 Olympics have gargantuan demands of products from minerals for swanky new stadia, creaking infrastructure of the Europe, and the America are crying for anything that is mineral. So what we see is that cyclical mining business is slowly turning into upwardly linear mining business. So the clamour for mining and minerals will only increase and the properties will be transferred from one hand to other by mergers and acquisitions. But transferring of mining property from one hand to other is not like acquiring a manufacturing plant and its business where due diligence is easier. Mining due diligence is extremely difficult because firstly, worldwide there is no established practice of mining property due diligence and secondly, there are very few professionals to do it today. What exists is very skeletal and is more mandated by financial managers than mining professionals. So there is a huge risk. Investors beware! There will be many dream merchants who will hard sell unrealizable windfalls of profit.
There can be yet another twist. A company might end up buying a dud property at a very high cost. But it can also do it intentionally. Today, there may be non mining interest in buying a mining property that is strategic in nature. If it fits into the leveraging scheme of the company, it might want to buy a property that in it may be an unviable proposition but fits well in the overall business plan. Say , an alumina producer having good bauxite property might be interested to buy a coal mining property at a price more than the total operating and utilization cost just because this gives him or her an opportunity to obtain a fixed and rated supply . So mining economics will not be the sole criterion ; what will prevail is the ultimate business linkages and their operating economics. All strategic mine plans today capture these opportunities. Any mining property means a lot o surplus land. With realty and infrastructure sector booming getting few lands is a good investment by itself. If no mining, one can open warehouses! Pardon me, but the cynics say that all our coal bed methane properties are only good for warehouse projects.
Excessive profit will be both good and bad news for the minerals industry. Good, simply because who does not like fat profit margins. Bad, because these will draw streams of new investors who will like to have a slice of the business and thus, creating new rules of game in the industry –disrupting the old. Such upheavals will not take place without its share of severe skewed competition, malevolence, corruption, antitrust, and translucent insider trading etc. Mining history is replete with such examples from the past.
The comfortable financial position of the industry should auger well for the mining education if the opportunities are taken. Throughout the world, mining educators by default or by design created a ghetto of their own –distancing themselves from the engineering community at large. We stuck ourselves to the belief that we were special and in the process, we could not create pedagogy that would help us befriend other engineers who would consider us one day as their peer. That took away our all round engineering position. The result is, in the face of such demands, mineral resources engineers are pathetically short of supply. That mistake should not be done again. It is time that mining education embrace mineral processing, petroleum engineering and related environmental engineering in their cheer to chart the path for holistic Georesources Engineering. Boom in the industry instills optimism that needs to be creatively utilized. Do not again walk the path of isolation .Who knows whether there will be yet another next time!
Monday, April 14, 2008
Why the people in mines and mining do not write !?
It is sorts of strange why the people connected with mining and minerals industry do not write ? Do they suffer from the complex of ignominy that they serve an industry that is not considered enough socially acceptable.Why do not they try to change the perceptions of the people? Is that out of the fear that they will over-expose them and their perceived weakness.How so unfortunate ? Why thye can not think that they are doing just as much for a living and community service as many around them.Why can not they see that no industry,I say again -no industry, does any better than what they do.They are the first to dump,whom you know,themseleves and to creep into a corner of over brooding on what else they could do in life other than mining.Cut the crap- if you think it is not your job and you are comfortable to be miserable- then so be it !I shall lend my voice to what mines,mining and minerals need : guidance,warning, responsible behaviour as well as the pats.
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