India to seek $15b of investment to double mining output

NEW DELHI: India expects to woo Rs1 trillion ($15 billion) of investment over five years to double mining output and cut mineral imports. The government’s goal is to fast-track exploration, including upfront payments for discovered deposits when the mines are auctioned, Mines Minister Piyush Goyal said in an interview.

The administration will invite foreign companies to participate, he said, while acknowledging challenges such as land acquisition and environmental hurdles.

“We’re working to change the rules of the game from doing small amounts of exploration in an incremental fashion to doing it on a fast-track, one-shot, big-picture way,” Goyal, 52, said on Saturday in New Delhi. There’s “easily” scope to pour 50 billion rupees into the search for deposits, he said.

The world’s fastest-growing major economy will need increasing supplies of everything from iron ore to coal to achieve Prime Minister Narendra Modi’s objective of faster development powered by more manufacturing.

Rio Tinto Group and steelmaker Posco are among foreign compa- nies that have put Indian plans on hold because of red tape and difficulties in acquiring land, an indication of the challenges Goyal’s agenda faces.

India in 2015 embraced competitive auctions as the best longterm approach to resource allocation after bruising corruption scandals over discretionary or free allotments. The nation auctions exploration and mining rights.

Officials earlier had worked out a policy of paying explorers a royalty over the life of a mine, rather than upfront, after critics said there wasn’t enough incentive for companies to scour for minerals.

Goyal, who is energy minister and added mining to his portfolio when Modi reshuffled his Cabinet in July, said mineral exploration in India is “nascent.”

He recommended that overseas explorers and miners consider ventures with local partners — and install largely Indian management — to increase their chances of success in the $2 trillion economy.

The minister said he’s assessing the minerals being imported by India to focus the country’s exploration efforts.