Lack of the raw materials is the sticking point to develop India’s domestic mining industry which is the major hindrance to its ambition to be a second China. Besides, that restrains its economic powerhouse from manufacturing goods and powering factories at home. All those derive from the notorious reputation India has, illegal mining of iron ore, limestone, bauxite and other minerals have dried up lakes and decimated forests across the country. Therefore, it can take mining corporation years to acquire a mining licence. For example, last year, the Supreme Court banned iron-ore mining in three districts of the southern Indian state of Karnataka to prevent further ecological damage. And corruption lurks everywhere in the government’s system in the process of allotting mines due to no transparent mechanism..
It is reported by Wall Street Journal that the course of Indian seeking to make overseas acquisitions are running into difficulties. It can be generally divided into three parts:
A: Among the major disappointments is the inability of a consortium set up by five large state-run companies(The International Coal Ventures Ltd. consortium, or ICVL, includes Steel Authority of India Ltd, NMDC Ltd, Coal India Ltd, Rashtriya Ispat Nigam Ltd and NTPC Ltd, with combined cash reserves running into billions of dollars.) to buy coal mines overseas.
B: Among the major disappointments is the inability of a consortium set up by five large state-run companies to buy coal mines overseas.
C: Resource nationalism, on the rise in mineral-rich developing countries, is a major roadblock
India has not gained much more success in acquiring coal properties except for the only achievement in Australia by NMDC earlier this year. Saroj Jain, a senior executive at Jindal Steel’s Bolivian headquarters, said in march that “We are waiting for the government to tell us if they have gas or not. If they can’t supply the energy we need for the project, then we leave” but the socialist government led by Evo Morales has been constantly sparring with the Indian company, putting the project’s future at stake. Here, our company Hongxing is bound to provide the customers with high-quality products like dryer machine as well as ore beneficiation.
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