Mumbai: Mining start-ups are mushrooming in India as the country aims to boost production of natural resources to spur economic growth.
These companies, offering technical assistance, consultancy, research and even financing services, are betting on India’s thrust on power production, infrastructure development and indigenous manufacturing to raise the demand for minerals such as coal, iron ore and bauxite.
“Mining for iron ore is only around 200 million tonnes (mt) while for coal it is about 400 mt. This will double in the next five-six years with the auctions and the provisions of the Mines and Minerals (Development and Regulation) Act,” said Monica Bachchan, director at Metalogics Projects Management Services Pvt. Ltd.
“Further, the potential for mining in the country is at over 500 billion tonnes, which will slowly open up in the following years,” Bachchan added. She and partner Bharti Mishra, both in their 20s, provide consulting and information services on mining and auctions.
Projecting similar growth, Virginia Mining Resources, a company started by former Indian Administrative Service officers and private mining industry experts in August 2014, sees mining-sector revenue at $30-35 billion in the next five years, from $5.5-7 billion now.