Govt to clear 100% FDI in mining

NEW DELHI: The government is all set to allow 100% FDI in titanium ore mining under the automatic route. At present, the department of atomic energy (DAE) permits FDI in titanium ore mining, hitherto considered a sensitive area, up to 74%. The Cabinet is set to take a decision on the proposal, which forms part of this year’s FDI review, next month.

“After having been given a go-ahead by the DAE, the department of industrial promotion & policy (Dipp) has included the proposal in the yearly FDI review. The review has been finalised after getting comments from various ministries and sent to the Cabinet,” a commerce & industry ministry official said.

The DAE has agreed to move titanium ore mining from the list of sensitive activities to regular mining activities. The proposal is also part of the National Mineral Policy awaiting Cabinet approval.

“Earlier, both titanium and uranium were in the same list compiled by DAE. Now, titanium mining would be regulated by the ministry of mines,” an official said. The move is expected to attract major investments in the country’s titanium reserves, that constitute 30% of the world’s total.

Billed as the metal of future, titanium and its alloys are used as basic raw material for aircraft and aerospace, and its use is gradually increasing in other areas including chemical industries, iron and steel industries and FMCG sector.

“The opening up of titanium mining may also reduce pressure on the country’s iron ore resources that has brought steel makers and miners on a path of confrontation. With identified reserves of over 400 mt of ilmenite ore, which yields titanium dioxide and titanium metals for metals and alloys, on the sandy beaches, the largest globally, India is favourably placed in case there is market shift from steel to titanium,” a senior mining ministry official said.

The Hoda Panel on the New Mineral Policy has also recommended that DAE, which controls mining of some of the beach sand minerals — classified as atomic minerals earlier — should allow flexibility to miners to explore and exploit the minerals including exports without having to mandatorily undertake value addition.

Interestingly, the country’s ilmenite reserves of 400 mt represents only 10% of the total potential in the country. Detailed exploration has been completed on 1,000-km coastline but actual mining is being undertaken only in 100-km area.

Titanium is recognised as a strong metal, light in weight, non-corrosive and able to withstand extreme temperature (melting point of 1,800° C).