Investment potential in mining: Survey removes India from list of top 91 nations
MUMBAI, FEBRUARY 28
Our Frequent mining bans and restrictions on ore production has pushed India out of the top 91 countries rated on the basis on investment potential in mining.
According to the recent Fraser Institute Annual Survey of Mining Companies, India was ranked 97 out of 104 in the area of Investment Attractiveness Index in 2016, and 73 in 2015.
The Fraser Institute Annual Survey of Mining Companies conducted last year dropped the country out of the list of 91 countries.
The survey had ranked India 97 out of 104 in the area of Investment Attractiveness Index in 2016, and 73 in 2015
The countries are ranked by combining a metric, ‘Best Practices Mineral Potential’ index — which rates regions based on their geologic attractiveness — and the ‘Policy Perception Index’ — which measures the effects of government policy on attitudes toward exploration investment.
However, the investment decisions are not made on Policy Perception Index alone and are often based on the pure mineral potential of a jurisdiction, said the survey.
Earlier this month, the Supreme Court cancelled all the iron-ore mining leases in Goa, with effect from mid-March, effectively banning all operations from then onwards.
In the past 10 years, iron-ore mining in Goa has added ₹30,000 crore to the exchequer and brought in about $7 billion worth of foreign reserves, it said.
The limitations put by the legislative system on the mining industry in the form of cap on iron mining (in Goa and Karnataka), and high export duty would impact not only the investments but also all those individuals directly connected to the mining sector. This would further generate a slump on the already adverse unemployment rate in the country, the survey said.
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