India is opening up its treasure trove of minerals and wants Canadian explorers to take the lead in a massive hunt for its natural resources.
From oil and gas to gold, India has some of the world’s largest reserves and its government has vowed to make it easier for companies to set up mines in the subcontinent.
Before, foreign mining companies shied away from India because of permit delays, land use conflicts and regional politics.
However that is to be a thing of the past, vow India’s leaders who are planning to introduce landmark legislation to change the Indian mining sector.
The new laws will play a major part in doubling the amount contributed by the mining industry, which includes gold mining firms, help cut delays in the granting of permits and eventually attract investment from abroad.
Mines Minister B.K. Handique said through the “simpler” resource investment laws India aims to double its mining’s contribution to the nation’s $1.2 trillion economy to at least 4 percent.
The legislation will be presented to parliament in the winter session this year, he said.
Hemant Shah, chairman of the mining committee of the Canada-India Business Council (C-IBC), said the India-Canada partnership in mining will make for a “perfect marriage”.
“Mining is Canada’s strong suit, and India has all the natural resources and opportunities for the mining industry.”
Currently, about 10 Canadian companies are engaged in mining operations in Rajasthan, West Bengal , Uttarkhand, and Madhya Pradesh.
As India beckons the world to tap its resources, The Canadian Association of Mining Equipment and Services for Exports (CAMESE), which represents top 400 mining companies, announced it will partner to stage India’s biggest mining show next month.
It is partnering with the Federation of Indian Mineral Industries (FIMI) to hold the three-day Mining Exploration Convention and Trade Show in Bangalore from Sep 16.
Apart from Canada, mining companies from the UK, Australia and Eastern European countries will also attend it. The mining trade show assumes significance as the Indian government is set to unveil a new mining policy which will allow bigger FDI by foreign companies.
“Since we are the world leader in mining development and equipment, we want to participate in exploration of India’s untapped mineral wealth,’’ said Shah who is sales director for mining equipment major Cubex, according to IANS.
Shah, who will present a paper ‘Perspective of an Oversees Equipment Vendor in the Indian Mining Sector’ at the show, said: “When India announces new mining policy, Canadian companies want to move in quickly to take advantage of it.”
Despite Canada’s expertise in the field, he said, cooperation between the two countries in the mining sector is low.
Currently, Canada sells mining equipment worth $40-50 million each year.
The new mining policy is also expected to open up Southern India’s Deccan region which has been surveyed as having one of the richest deposits of gold.
International gold mining companies are reportedly already looking for tying up with gold exploration firms in India to form joint venture and launch new exploration projects.
The overseas firms that are in talks with the government for gold and mining exploration include Indogold, Anglo-American Gold Mining, Monarch Gold Mining, De Beers India Ltd, ACC Rio Tinto Exploration Ltd and BHP Minerals.
Industry analysts quoted in mining reports said India is the largest importer of the yellow metal in the world after China and consumption of gold will always be high in this country due to its traditions and customs and age old relationship with the yellow metal.
And although the import side for gold is strong, India has neglected its mining capacities. If tapped well, India could have a lot of gold mining potential.
India is estimated to have 20,000 tonnes of gold and diamond reserves spread over several states including Andhra Pradesh, Karnataka, Madhya Pradesh, West Bengal, Rajasthan, Bihar and Chhattisgarh.
India has been the top importer of gold for several years and the Indian government is concerned over its over-dependence on imports for its bullion needs.
The concern increased during the recession time when prices of gold shot up beyond $1,000 per ounce in the international markets. Moreover, gold has become the safest haven available for investors at present.
Last week, Ashok Das, the Indian Consul General in Vancouver accompanied the Indian Minister of State for Petroleum Jitin Prasada to Calgary to seek more foreign participation in the latest round of auctions for India’s hydrocarbon assets.
Prasada held road shows in Calgary and Houston in the US to generate interest for 70 blocks of oil and gas reserves and attract international bidders by extending tax breaks for gas discoveries.
Nearly half of India’s oil and gas reserves remain unexplored.
With the opening up of the remaining blocks, India expects to increase the area under oil and gas exploration to 80 per cent of its total sedimentary basin.
India is Asia’s third largest oil consumer and imports two-thirds of its crude oil requirements.
The country holds about 200 billion barrels of hydrocarbon resources, but nearly half of them have yet to be found.

FACTS: Mine boggling- In India, 80% of mining is in coal and the balance 20% is in various metals and other raw materials such as gold, copper, iron, lead, bauxite, zinc and uranium
- India has one of the world’s largest reserves of Chromium; Barite; Titanium concentrate and granite or Dimension Stone
- India is the largest producer of Mica in the world
- India is one of the largest producer and exporter of gemstones in the world.
- Minerals form about 17% of India’s exports
- India is estimated to have 20,000 tonnes of gold and diamond reserves spread over several states.
- India holds about 200 billion barrels of hydrocarbon resources, but nearly half of them have yet to be found.