Thursday, April 17, 2008

'Logistics is a big problem faced by the mining industry in India'

Regulatory terrain uneven in Indian mining

Australia's construction and contract mining group Leighton Holdings recently bagged two contracts worth one billion (Australian) dollars for developing and operating a coal mine project in Jharkhand. London-based Vedanta Resources is reportedly looking to invest billions in the Indian mining sector. Given the reserves India has in thermal coal, iron ore, gold, etc., and their strategic locations, it is quite understandable that foreign companies have queued up with great expectations. But there is a twist in the story.
"The (Indian) mining sector today faces two major issues - lack of technical knowhow and logistics, apart from the present regulatory environment," warns Ms Asha Katyal, Associate Director (Transaction Advisory Services), Ernst & Young.

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