ACKNOWLEDEMENT

On the successful completion of this project (MBA II, SEM III), we would like
to express our gratitude to all the people who have helped us to complete
this project.
We forward gratitude to respected director of our institute, Prof. Mahesh
Barad for giving us an opportunity to work out this report.
We would like to express our gratitude to Prof. Milap Vaishnav, GCR
coordinator of the institute who gave us constant guidance throughout our
project. Without his help, we would not have been able to complete our
work in the present form.
We would also like to thank Prof Fareed Khoja, Principal of SRK Institute of
Management and Computer Education, for his continuing encouragement
and valuable support.
Lastly, we would also express our thanks to all who have directly or
indirectly helped us in preparing the report.

Contents
Page No.
1. Abstract

2. Methodology

4. About India

4. Introduction

5. STEEPLED Analysis

Political

10

Economical

13

Social

16

Technological

17

Legal

18

Environmental

19

6. Conclusion

20

8. References

21

Abstract
In this study report STEEPLED analysis of India. How Organization take the analysis for
setup the offices or industry in India. In this analysis tell the environment of India. Factors of
India. Government policy, literacy, privatisation, legal problem, technology use India, any
many factors given below.

Methodology

For This study report we search articles on Websites, Journals, Newspaper, and Magazines. I
study books for these topics. I also take help of faculty for preparing report. We go
thoroughly websites data. We also take help my friends and colgues and study on proquest
website article, journal. We read some other essays regarding this.

India
5

India, officially the Republic of India is a country in

South Asia. It is the seventh-largest country by
geographical area, the 2 most populous countries, and
the most populous democracy in the world. The Indian
Ocean on the south, the Arabian Sea on the west, and
the Bay of Bengal on the east, India has a coastline of
7,517 kilometres .It is bordered by Pakistan to the west,
People's Republic of China, Nepal, and Bhutan to the
north, and Bangladesh and Myanmar to the east. India
in the vicinity of Sri Lanka, Maldives, and Indonesia in
the Indian Ocean.
Home to the Indus Valley Civilisation and a region of
historic trade area and vast empires, Indian
subcontinent was identified with its commercial &
cultural wealth for much of its long history. Four major
religions, Hinduism, Buddhism, Jainism and Sikhism
originated country, while the Zoroastrianism, Judaism,
Christianity and Islam arrived in the first millennium of
CE and shaped the region's diverse culture. The British
East India Company from the early eighteenth century
and colonised by the United Kingdom from the mid-19
century, India became an independent nation in 1947
after a struggle for independence that was marked by
widespread non-violent resistance.
India is a republic consisting of 28 states and 7 union
territories with a parliamentary system of democracy. It
has the world's 12th largest economy at market
exchange rates and the fourth largest in purchasing
power. Economic reforms since 1991 have transformed
it into one of the fastest growing economies; however it
still suffers from high levels of poverty, illiteracy,

disease, & malnutrition. A pluralistic, multilingual, and

multiethnic society.

India at Glance
1. Population

1,150,000,000 (1.15 billion)

2. Area

3.3 million square kilometres

3. Geographical location
4'

Lies between latitudes 8

4. Coastline length

& 37 6 ' north and longitudes

68 7 ' and 97 25' east
7600 km

5. Languages

17 major languages, 844 dialects

6. Major religions
Christianity,
Sikhism, Jainism
7. National anthem

8.National Song
in
9.National emblem

Hinduism, Islam,
Buddhism,

Jan gana mana written by

Rabindranath Tagore
:

Vande Mataram, composed

Sanskrit by
Bankimchandra Chatterji
Replica of the Lion Capital of
Sarnath

10.National flag
:
Horizontal tricolour in equal
proportion
of deep saffron on
the top, white in the
middle and
dark green at the bottom. In
the
centre of the white band is a wheel.
11. National animal
12. National bird

Tiger (Panthera Tigris)

:

Peacock

13. National flower

Lotus

14. National tree

Banyan

15. National fruit

Mango

16. National currency

paisa)

Rupee (One Rupee=100

17. National Sport

Hockey

Introduction
STEEPLED Analysis in Business Environment
In business STEEPLED analysis role is very important.
Originally designed as a business environmental scan,
the STEEPLED analysis is an analysis of the external
macro environment in which a business operates.
These are factors which are beyond the control or
influence of a business, however are important to be
aware of when doing product development, business or
strategy planning.
STEEPLED means:
S- Social
T- Technological
E-Environmental P- Political
E- Economical
P-Political
L- Legal
E-Ethical
D-Demographic
The STEEPLED subject should be a clear definition of
the market being addressed, this is the followings: A company looking at its market
A product looking at its market

A brand in relation to its market

A local business unit or function in a business
A strategic option, such as entering a new market
A potential acquisition
A potential partnership
An investment opportunity

Now we see in details of STEEPLED factors/Impact in

India In next following pages:

SOCIAL
Changes in social trends can impact on the demand for
a firm's products and the availability and willingness of
individuals to work. In the India, for example, the
population has been ageing. This has increased the
costs for firms who are committed to pension payments
for their employees because their staff are living longer.
It also means some firms have started to recruit older
employees to tap into this growing labour pool.

It describes the characteristics of the society in which

the organization exists. Literacy rate, customs, values,
beliefs, lifestyle, demographic features and mobility of
population are part o the social environment. It is
important for managers to notice the direction in which
the society is moving and formulate progressive
policies according to the changing social scenario
India is the second most populous nation in the world
with an approximate population of over 1.1billion
people. This population is divided in the following age
structure: 0-14 years 31.8%, 15-64 years 63.1% and
65 years and above 5.1%. There has a
(i)Mobility
(ii)Income distribution
(iii)Population demographics
(iv)Attitude to work and leisure
(v)Standard of education and skills
(vi)Working conditions

TECHNOLOGICAL
New technologies create new products and new
processes. MP3 players, computer games, online
gambling and high definition TVs are all new markets
created by technological advances. Online shopping,
bar coding and computer aided design are all
improvements to the way we do business as a result of
better technology. Technology can reduce costs,
improve quality and lead to innovation. These

10

developments can benefit consumers as well as the

organisations providing the products. Today in India 3G
technology starts. A heavy infrastructure for bandwidth.
BSNL and Reliance have more covered city by optical
fibre. India have many Technological Projects. Good
Service provider in IT sector ex TCS, Infosys and many
more.Today India is a big market in mobile sector here
5-6 player operataors and new operators launch their
services soon.
(i) IT Development
(ii)New Materials and processes
(iii)Government technology funding
(iv)Speed of technology transfer
(v)Software upgrades

ECONOMICAL
It includes interest rates, taxation changes, economic
growth, inflation and exchange rates. As you will see
throughout the "Foundations of Economics" book
economic change can have a major impact on a firm's
behaviour. For example:
higher interest rates may deter investment
because it costs more to borrow
a strong currency may make exporting more
difficult because it may raise the price in terms of
foreign currency
inflation may provoke higher wage demands from
employees and raise costs

11

 higher national income growth may boost demand

for a firm's products
In order to solve economic problems of our country, the
government took several steps including control by the
State of certain industries, central planning and
reduced importance of the private sector. The main
objectives of Indias development plans were:
Initiate rapid economic growth to raise the
standard of living, reduce unemployment and
poverty,
Become self-reliant and set up a strong industrial
base with emphasis on heavy and basic industries,
Reduce inequalities of income and wealth,
Adopt a socialist pattern of development based
on equality and prevent exploitation of man by
man,

As a part of economic reforms, the Government of India

announced a new industrial policy in July 1991,
The broad features of this policy as follows:
The Government reduced the number of industries
under compulsory licensing to six.
Disinvestment was carried out in case of many
public sector industrial enterprises.
Policy towards foreign capital was liberalized. The
share of foreign equity participation was increased
and in many activities 100 per cent Foreign Direct
Investment (FDI) was permitted.
Automatic permission was now granted for
technology agreements with foreign companies.

12

 Foreign Investment Promotion Board (FIPB) was set

up to promote and channelise foreign investment
in India.
The economic factors in India are improving
continuously. The GDP (Purchasing Power Parity) is
estimated at about 3.965 trillion U.S. dollars in the year
2009. The GDP- real growth rate in 2009 was 6%. India
has the third highest GDP in terms of purchasing power
parity just ahead Japan and behind U.S. and China.
Foreign direct investment rose in the fiscal year ended
September 2009 to about US$ 10.532 billion. There is a
continuous growth in per capita income; Indias per
capita income is expected to reach Rs. 33283 by the
end of 2009-2010. This will lead to higher buying power
in the Hands of the Indian consumers. India GDP is now
6.5. Today India reserve Us dollor in Good condition.
In Indian economy is strong. We see in recession our
economy is less affect from recession compression to
western countries. These following factors:
(i) Interest rates
(ii) Money supply
(iii) Credit control
(iv) Financial markets
(v) Inflation
(vi) Competitors pricing
(vii) Globalization

13

ENVIORNMENTAL
Environmental factors include the weather and climate
change. Changes in temperature can impact on many
industries including farming, tourism and insurance.
With major climate changes occurring due to global
warming and with greater environmental awareness
this external factor is becoming a significant issue for
firms to consider. The growing desire to protect the
environment is having an impact on many industries
such as the travel and transportation industries (for
example, more taxes being placed on air travel and the
success of hybrid cars) and the general move towards
more environmentally friendly products and processes
is affecting demand patterns and creating business
opportunities.
In India we know that many types of enviormental
problems this are basic things but more important for
our enviorment. also biotic factors ,abiotic factors and
their interaction with one another. pollution free
industrial activity i.e is nessary condition of industrial
organization.
Industrialization and urbanization have resulted in a
profound deterioration of India's air quality. Of the 3
million premature deaths in the world that occur each
year due to outdoor and indoor air pollution, the
highest number are assessed to occur in India.

(i)Pollution problems
(ii)Planning permissions
(iii)Waste disposal

14

(iv)Noise controls
(v)Environmental pressure groups

POLTICAL
These refer to government policy such as the degree of
intervention in the economy. What goods and services
does a government want to provide? To what extent
does it believe in subsidising firms? What are its
priorities in terms of business support? Political
decisions can impact on many vital areas for business
such as the education of the workforce, the health of
the nation and the quality of the infrastructure of the
economy such as the road and rail system.
India is the biggest democracy in the World. The
government type is federal republic. Based on English
common law, judicial review of legislative acts, accepts
compulsory ICJ jurisdiction with reservations, separate
personal law codes apply to Muslims, Christians, and
Hindus. The political Situation in the India is more or
less stable. Most of its democratic history, the federal
Government of India has been led by the (INC) Indian
National Congress. State politics dominated by several
national parties including the INC. The Bharatiya Janata
Party (BJP), the Communist Party of India (CPI), and
various regional parties. In the 2009 Indian elections,
the INC won the biggest number of Lok Sabha seats
and formed a government with a alliance called the
United Progressive Alliance (UPA), supported by various
left-leaning parties and members opposed to the BJP.
Overall India currently has a coalition led government

15

and both major political parties the UPA and BJP,

whichever comes in power.
It comprises political stability and the policies of the
government. Ideological inclination of political parties,
personal interest on politicians, influence of party
forums etc. create political environment. For example,
Bangalore established itself as the most important IT
centre of India mainly because of political support.
In India many poltical factors those effect in business
environment. Political pressures in ruling government
and vote bank problems. These are the major factors
those affect on political environment:(i)

Taxation policy

India has a well developed tax structure with a threetier

federal
structure,
comprising
the
Union
Government, the State Governments and the Urban &
Rural Local Bodies. The power to levy taxes and duties
are distributed among the three tiers of Governments,
in accordance with the provisions of the Indian
Constitution. The main taxes/duties that the Union
Government is empowered to levy are Income Tax
income, Customs duties, Central Excise and Sales Tax
and Service Tax. The principal taxes levied by the State
Governments are Sales, Stamp Duty, State Excise, Land
Revenue, and Duty on Entertainment and Tax on
Professions & Callings. The Local Bodies are
empowered to levy tax on properties, Octroi Tax on
Markets and Tax/User Charges for utilities like water
supply, drainage, etc.

16

(ii)

Privatisation

Reduce the political interface in the management of

enterprises, leading to improved efficiency and
productivity. In India this time do many govt company
Good performance but some time later there are facing
many problems so the go for privatisation.
(iii)

Deregulation

India Govt makes some Act to freely do business in

India.
(iv)

International trade regulations

International trade regulation day by day India makes

it flexi able for foreign trade.
(v)General initiatives
Some policy to first Political initiates for the business
environment in In India.
(vi) Government stability
In India past 10 years govt is stable. Before 10 years
India facing govt stability. If govt stability not market is
not improve and no one come here for investment.
(vii)International stability
No wars, no any country home problems, and no any
type of war like Iraq they make uncertainty in market.

LEGAL

17

These are related to the legal environment in which

firms operate. In recent years in the India There have
been many significant legal changes that have affected
firms' behaviour. The introduction of discrimination and
disability discrimination legislation, an increase in the
minimum wage and greater requirements for firms to
recycle are examples of relatively recent laws that
affect an organisation's actions. Legal changes can
affect a firm's costs and demand.
This consists of legislation that is passed by the
parliament and state legislatures. Examples of such
legislation specifically aimed at business operations
include the Trade mark Act 1969, Essential
Commodities Act 1955, Standards of Weights and
Measures Act 1969 and Consumer Protection Act 196.
In India take many type of permission to the sate govt
or central govt.
In India many type of act like license permission,
copyright permission, and many types of other
permission.
(i)Employment law
(ii)Trade and product restrictions
(iii)Health and safety regulations
(iv)EU and international laws
(v)Monopolies commission

18

Ethics
Understanding business ethics from practical application point of view is a complex
exercise not only for business leaders and managers but even for the other
stakeholders also. The reason being that it is difficult to decide exactly, what is right
and what is wrong, to do in complex business situations faced very often by the
decision makers. Theoretically, the field of business ethics struggle between
subjectivism, objectivism and relativism.
Lewis (1985) in his study concluded that the four most agreeable ingredients of
business ethics are: Rules, standards, codes or principles moral guidelines that, if
followed, will prevent unethical behavior. Morally right behavior - individual actions
that conform to justice, law, or another standard; individual actions in accord with
fact, reason, or truth. A business person must constantly deal with the central issue of
what consequences will result from his or her actions. That is, she or he must not
engage in any practice that would tend to corrupt the integrity of his or her position
Truthfulness - statements and/or actions that conform with facts or that have the
appearance reality Specific situations - occasions of personal moral dilemma calling
for ethical decisions.
On the basis of the above the defined business ethics as:
'Business ethics is rules, standards, codes, or principles which provide guidelines for
Morally right behavior and truthfulness in specific situations.
Some of the other notable definitions of business ethics are:
Business ethics is the study of business situation, activities, and decisions where
issues of right and wrong are addressed. (Crane and Matten, 2007)
Business ethics refers to clear standards and norms that help employees to distinguish
right from wrong behaviour at work. ( The Ethics Resource Centre)
Business ethics has to do with the extent to which a person's behaviour measures up
to such standards as the law, organizational policies, professional and trade association
codes, popular expectations regarding fairness and what is right, plus one's
own internalized moral standards.(William Sauser, 2005)
Business ethics is disciplined normative reflection on the nature, meaning and
context of business activity. As such it deals with comprehensive questions about the
justice of the economic context in which business operates and about the nature,
function, structure and scope of business in that context, as well as with more specific
issues raised by the relationship of business to government, the consumer, its
employees, and society at large. (Hoffman and Moore, 1982)
Business ethics is a study of moral standards and how these apply to the systems and
organizations through which modern societies produce and distribute goods and
Services, and to the people who work within these organizations. Business ethics, in

19

other words, is a form of applied ethics. It includes not only the analysis of moral
norms and moral values, but also attempts to apply the conclusions of this analysis to
that assortment of institutions, technologies, transactions, activities, and pursuits that
we call business. (Manuel Velasquez, 2002)
The concept of business ethics actually contains four interconnected elements which is
also reflected in the above definitions :
Framework- Set of rules, standards, codes, principles, philosophy etc. to be followed
for ethical decision making in business.
Internal development of ethical traits - Development of virtues, values, morality
and inner conscience.
Situation- Business situations demanding ethical judgments.
Behavior- Ethical behavior from the legal, stakeholder and humanity point of view.
Ultimately the behavior of executives who are responsible to giving direction to the
organization form the important element of ethics in organizations.

Demographic
D

for Demographics are also often included.

Sometimes people

disagree over which heading a potential factor falls under. However

it matters less that you label the change than that you can see it
coming. All these can affect your organisation, your services to your
beneficiaries/clients and community, and the availability of skilled
staff to provide the services and products. Consider all the
STEEPLED factors facing your organisation. Select the one(s) in each
category that you think demands the highest priority. Finally select
the highest priority from among these.

Socioeconomic

characteristics

of

population

expressed

statistically, such as age, sex, education level, income level, marital

20

status, occupation, religion, birth rate, death rate, average size of a

family, average age at marriage. A census is a collection of the
demographic factors associated with every member of a population.

The

Demographic

Variables

That

Affect

Business

There are a number of demographics that can affect a business.

Demographics are various traits that can be used to determine
product preferences or buying behaviors of consumers. Most
companies identify their key customers through these various
traits. They then target consumers with like characteristics in
their advertisements and promotions. Targeting consumers with
similar

demographic

characteristics

helps

maximize

company's sales and profits.

Income

Income is one demographic variable that can affect businesses.

A company's products usually appeal to certain income groups.
For example, premium products such as high-end womens'
clothing usually appeal to women with higher incomes.
Conversely, people with comparatively lower incomes are more
senitive to price and, therefore, may prefer purchasing discount
products. People with lower incomes have less disposable
income. Value is a major determinant in the products they
purchase. Hence, a company may best reach lower-income
people through discount retailers and wholesalers and attract
higher-income buyers in specialty retail shops.

21

Age
Age is another demographic element that impacts businesses. A
company's products and services are more likely to appeal to certain
age groups. Younger people under 35 are often the first consumers
to purchase high-tech products like cell phones, electronic books and
video games. Certain buying groups also have more buying power
than others. For example, there are about 76 million baby boomers
in the United States, according to "Entrepreneur" online. This is the
single largest population segment. These people were born between
1946 and 1964, according to "Elderly Journal" online. Baby Boomers
spent $400 billion more than any other age group, according to a a
June 2009 report by "Entrepreneur." Small business owners have
much to gain by selling products to this population.
Geographic Region
People's buying preferences also vary by geographic region, which is
another type of demographic. Those who meet buyers' needs and
requirements in certain geographic regions can earn higher sales
and profits. For example, people often prefer certain food and drink
flavors

in

certain

markets.

Companies

that

sell

the

flavors

consumers desire in various areas are more likely to profit. Those

who do not offer these flavors may risk losing customers to other
competitors.
Obtaining Demographic Information
One of the best ways to collect consumer demographic data is through
market research surveys. These surveys can be conducted by phone, mail,
Internet or in person. The key is collecting as much demographic
information as possible. Other demographic variables, besides age,
income and geography, include household size, education, occupation,
gender,

race

and

employment

status.

Most

marketing

research

22

professionals include demographic questions at the end of their surveys.

Warranty cards are another way to collect tnis information from
customers.

History
Mass scale looting
After Rwanda, Uganda, and Burundis successful invasion of eastern and
southeastern DRC in the Second Congo War, a great deal of what the UN
labeled "mass scale looting" took root. While initial invasion tactics were
still being worked out, military commanders were making business deals
with foreign companies for the Congos vast mineral reserves. Between
September 1998 and August 1999 stockpiles of minerals, agricultural
products, timber, and livestock were illegally confiscated from Congolese
businesses, piled onto trucks, and sold as exports from the confiscating
countries.
Rwandan and Ugandan troops forced local businesses to shut their doors
by robbing and harassing civilian owners. Cars were stolen to such an
extent that Uganda showed a 25 percent increase in automobiles in 1999.
DARA-Forest Company illegally extracted and sold Congolese timber on
the international market. An American Mineral Fields executive allowed
rebels to use his private lear jet for a $1 billion mining deal Some parallel
the mining corporations rush to acquire coltan rich land in rebel territory
of the DRC to the Conference of Berlin in 1885.

23

Active extraction phase

When the mass scale looting died down as stocks of minerals were
depleted, soldiers were encouraged by commanders to take part in smallscale looting which started an "active extraction phase". Natural resources
that were not stolen were often purchased with counterfeit Congolese
francs which contributed to inflation. Air transportation companies that
had operated in the Congo disappeared and were replaced by companies
affiliated with foreign armies. The Congolese government lost out of
profits from taxes on natural resources entering and leaving air fields
because air services were controlled by foreign Rwandan and Ugandan
troops who routinely exported coltan from the Congo. The increase in air
transportation networks has also increased exploitation because of the
emergence of new transport routes.
Rwanda and Uganda have no known production sites for many of the
minerals that were exported at vastly higher rates after their invasion of
the DRC. "Free zone areas" make diamonds difficult to track because they
can be repackaged and "legally" sold as diamonds from that country. The
DRC has been exporting few minerals since the invasion because the
destruction of the rural infrastructure has caused mining and agricultural
outputs to wane.
Coltan is the most profitable mineral export from the Congo, but it is
particularly difficult to track because it is often listed as cassiterite, a
mineral of lesser quality, for which export taxes are lower. Coltan has been
illegally extracted and sold via Burundi since 1995, three years before the
invasion. The International Monetary Fund (IMF) states that Burundi has no
"gold, diamonds, columbotantalite, copper, cobalt or basic metals" mining
operations but has been exporting them since 1998.
In the year 2000 Rwanda spent $70 million supporting about 25,000
troops and Uganda spent $110 million supporting twice as many troops
Rwanda and Uganda finance their war efforts through commercial deals,
profit-sharing with companies, and taxation among other things. Rwandan

24

soldiers often steal coltan collected by villagers and sell it to diamond

dealers themselves. From dealing in coltan trade alone the Rwandan army
may have collected $20 million per month and coltan profits have been
used to pay back loans from foreign creditors.
Rebel groups MLC, RCD-Goma, and RCD-ML make their own deals with
foreign businessmen for cash and/or military equipment. Battlefields are
most commonly centered on areas that hold a lot of diamond and coltan
potential and foreign armies occupation of the eastern region is
maintained by illegal resource exploitation.
For $1 million per month Rebel group RCD-Goma gave a coltan monopoly
to SOMIGL which they in turn poured into efforts to gain control from RCDML for mineral-loaded land. To try to get fast cash to gain control of
government land the DRC gave a diamond monopoly to International
Diamond Industries (IDI) which was supposed to pay the government $20
million but paid only $3 million and continued to extract diamonds from
the region and sell them internationally. Upon request of the IMF and WB
the DRC is trying to liberalize diamond trade and IDI has threatened to sue
because they had a contract they themselves did not honor.
Corporations and Western countries purchasing coltan from Rwanda,
Uganda, or Burundi are aware of its origin and aid from western donors is
funneled directly into Rwandan and Ugandan war efforts. The German
government even gave a loan to a private German citizen to build his
coltan export business in the DRC, for which he enlisted the help of RCDGoma soldiers Mineral plunder in the DRC was easy once the central
authority had collapsed because of the extremely weak financial system,
as well as the apparent disregard of illegal conflicts on the part of proper
standards by international corporations and governments that imported
illegal minerals.
The US has documented that many minerals are purchased from the DRC
even though the DRC has no record of exporting them. A lack of state
stability

combined

with

international

corporations

and

foreign

25

governments interest in investing in Congolese mineral plunder increased

the pace at which the DRC was shook off its fragile foundation. The UN
does an excellent job of identifying the perpetrators of illegal resource
exploitation in the DRC, but was not able to help prevent the economic
exploitation of the country.
In September 2010, it was reported that the FDLR (Forces dmocratiques
de libration du Rwanda), a group of mostly Hutu rebels, was exploiting
timber, gold and coltan in North Kivu and South Kivu.

Foreign involvement
In 2011, at least twenty-five international mining companies were active
in the D.R. Congo according to Datamonitor 360. Canadian-domiciled
mining companies had the highest presence, with nine in total: African
Metals Corporation, Banro Resources Corporation, BRC DiamondCore, El
Nio Ventures Inc., First Quantum Minerals, ICS Copper Systems Ltd.,
Lundin Mining Corp., as well as Anvil Mining Ltd., misidentified as
Australian, and Katanga Mining Ltd, misidentified as British.
By comparison, six firms were incorporated in Australia (Austral Africa
Resources

Ltd.,

BHP

Billiton

Group,

Green

Machine

Development

Corporation, Lindian Resources Ltd., Mawson West Ltd., Tiger Resources

Ltd.), three in South Africa (African Rainbow Minerals, AngloGold Ashanti,
Chrometco Ltd.), two in the United Kingdom (Mwana Africa PLC, Randgold
Resources Ltd.), two from the United States (Century Aluminum Co.,
Freeport-McMoRan Copper & Gold Inc.), and one each from China (CIC
Mining Resources Ltd., with Japanese Eco Energy Group's African
subsidiary, Eco Project Company Ltd.), Morocco (Managem SA), and
Switzerland (Xstrata plc).
In 2008 and 2009, the Congolese operations of larger international
companies, AngloGold Ashanti, BHP Billiton, and Xstrata were all in the
exploration and development phase, while Canada had four companies,

26

Anvil Mining, First Quantum Minerals, Katanga Mining, and Lundin Mining
involved in large-scale commercial extraction for several years or more.
In August 2012 the Chinese firm Changfa Mineral Resources acquired the
Mokambo Copper mine project on the Mufulira and Democratic Republic of
Congo border and it is expected to create around 3,000 new jobs when it
begins full-scale operations this year.

Canada
Main article: Canadian mining in the Democratic Republic of the Congo
According to the Congolese government, Canadian companies in 2009
held US$4.5 billion in mining-related investments in the DR Congo. The
DRC ranked either first or second-largest among African countries for
Canadian mining at the end of the 2000s. The Government of Canada
reported 28 Canadian mining and exploration companies operating in the
D.R. Congo between 2001 and 2009, with four carrying out commercialscale extraction; collectively, these companies' assets in the DRC ranged
between Cdn.$161 mill. in 2003 and $5.2 bill. in 2008.
The Government of Canada's mining ministry, Natural Resources Canada
estimated that in 2009, Canadian-owned mining assets in the D.R. Congo
were valued at Cdn.$3.3 billion, ten times more than in 2001, making
them

the

second-highest

African

share

after

Madagascar,

and

representing a sixth of total Canadian mining assets in Africa. [25] Natural

Resources Canada valued Canadian mining assets in the DRC at Cdn.$2.6
bn. in 2011.
The majority of Canadian-domiciled mining companies currently or
previously active in the DR Congo have been involved in either exploration
and development or large-scale mining of the Congo's copper and cobalt
resources. Using World Bank estimates, Garrett and Lintzer reported that
three Canadian companies First Quantum Minerals, Lundin Mining (in
partnership with the US firm Freeport McMoRan Copper & Gold) and
Katanga Mining will have been responsible for more than two-thirds of

27

total Congolese copper output from 2008 to 2013, and for more than twothirds of total Congolese cobalt output from 2008 to 2014. These
companies,

along

with

Canadian-incorporated

Anvil

Mining,

have

undertaken industrial copper and cobalt extraction during 2000-2010.

Another eight junior Canadian mining companies including Ivanhoe Nickel
& Platinum Ltd. and Rubicon Minerals Corporation, as of early 2011,
reporting holdings of copper and cobalt concessions in Katanga province.
Nine Canadian junior mining companies, including Kinross Gold Corp.,
previously held copper and/or cobalt concessions, but have since
abandoned them, or had them acquired by other Canadian or South
African firms.
Banro Resources Corporation has since 1996 owned gold concessions in
South Kivu and Maniema provinces of the DRC and began gold production
in 2011. Six other Canadian companies previously owned Congolese gold
properties, including Barrick Gold (19961998), and Moto Goldmines
(20052009). In the diamonds sector, Montreal-based Emaxon Financial
International Inc. is currently active, while seven other Canadian junior
companies reported previous ownership of properties in the DRC during
2001-2009, including Canaf Group Inc. and BRC DiamondCore.
Montreal-based Shamika Resources is exploring for tantalum, niobium, tin
and tungsten in the Eastern DRC and Loncor Resources is exploring for
gold, platinum, tantalum and other metals. Two Canadian-registered
companies own petroleum concessions in the DRC: Heritage Oil plc, whose
founder and Chief Executive Officer is Tony Buckingham, and EnerGulf
Resources Inc..
Since 2009, two Canadian companies, First Quantum Minerals and
Heritage Oil plc, have had their mining permits revoked by the DRC
government. First Quantum closed all its Congolese operations during
2010, and initiated, in concert with other stakeholders, international
arbitration

proceedings

against

the

Congolese

government.

The

Congolese revocation was linked to alleged obstruction attempts made by

28

the Government of Canada in the negotiation of International Monetary

Fund and World Bank debt relief to the DRC in 2010.
First Quantum, which was active in the D.R. Congo since 1997, reported
overall corporate social responsibility contributions amounting to 3.0% of
the Congolese gross national income in 2009, and was reported to be the
DRC's largest taxpayer that year, accounting for between one-eighth and
one-quarter of total collected revenue. In 2012, it was announced that
First Quantum's legal dispute ended in an out of court settlement.
The first DR Congo project funded by the World Bank Group's Multilateral
Investment Guarantee Agency (MIGA), was awarded in 2005 to Canada
and Ireland as co-investors, on behalf of the Dikulushi Mine held by Anvil
Mining Ltd. in Katanga Province. Four of the nine D.R. Congo projects
sponsored or proposed for sponsorship by the World Bank's International
Finance Corporation up to early 2011 were for Canadian-owned companies
active in the DRC: to Kolwezi/Kingamyambo Musonoi Tailings SARL owned
by Adastra Minerals Inc. ($50.0m., invested in 2006),[47] Africo Resources
Ltd. (acquisition of Cdn.$8m. in Africo shares, invested in 2007), [48] and
Kingamyambo Musonoi Tailings SARL as acquired by First Quantum,
proposed in 2009 at a value of US$4.5 m. in equity funding.
The killing by Congolese military of between seventy and one hundred
civilians in the town of Kilwa, nearby Anvil Mining's Dikulushi mine in 2004
has resulted in legal proceedings against Anvil Mining in the DR Congo
and Canada, and investigations by the Australian Federal Police and by
the World Bank Group's Office of the Compliance Advisor/Ombudsman
(see Canadian mining in the Democratic Republic of the Congo#Anvil
Mining and Kilwa incident).
In 2011, Canada's Fraser Institute annual survey of mining executives
reported

the

DRC's

ranking

of

its

mining

exploration

investment

favourability fell from eighth-poorest in 2006 down to second-poorest in

2010, among 45 African, Asian and Latin American countries and 24
jurisdictions in Canada, Australia and the United States, and this was

29

attributed to "the uncertainty created by the nationalization and revision

of contracts by the Kabila government".

Impacts of natural resource extraction on

the DRC
Environmental impacts
Resource extraction has many impacts on the cultural and environmental
diversity of the DRC; it is difficult to quantify the environmental
degradation of the country. As it is unstable and difficult for researchers to
enter and do work in the country also it is always difficult to quantify loss
of biodiversity as animals are mobile and the lack of roads and navigable
rivers

make

transportation

into

the

wilderness

areas

difficult

for

researchers.
Mining can be an intensive process and has affected some wilderness
areas, including national parks and wildlife reserves such as Kahuzi-Biega
and the Okapi Wildlife Reserve, both of which are world heritage sites.
Mining in these areas is typically artisanal; a small scale mining method
that

takes

place

in

river

beds

and

can,

cumulatively,

be

very

environmentally damaging. Artisanal mining degrades riparian zones,

creating erosion and heavy silting of the water. The tailings are often
dumped into the rivers and could be contaminated with mercury and
cyanide degrading the health of the river systems putting the wildlife and
people at risk.
Miners and refugees are relocating to parks in search of minerals; a
reported 10,000 have moved into Kahuzi-Biega and 4,000 to the Okapi
Wildlife Reserve. This increases the pressures on wildlife as timber is cut
down and used as fuel wood to cook with, and wildlife is killed for its meat.

30

Also, as people enter into these areas animals such as primates are
collected for trade on the black market. Others are poached for their
hides, or for the tusks such as elephants.
The extent of logging has been difficult to quantify. Much of the logging
that occurs is primarily for target hardwood species, rather than clearcutting which can be assessed by satellite imaging. [52] Observations have
shown an increased number of logging trucks moving across borders.
Logging destroys valuable habitat for animals and increases the access
into forested areas making it easier for poachers, miners and refugees to
access areas.

Socio-cultural repercussions
There are many factors which contributed to the Democratic Republic of
the Congos severe socio-economic hardships, and not all resource
extraction operations have had an entirely negative impact on Congolese
society at large. That said, the negative consequences brought about by
some forms of resource extraction, such as coltan mining, are devastating.
For example, worldwide, as demand for goods has increased, so has the
demand for tantalum, or coltan (DCA 2006) and reportedly, "much of the
finance sustaining the civil wars in Africa, especially in the Democratic
Republic of the Congo, is directly connected to Coltan profits" (DCA 2006,
pp 1).
Within the DRC, there are both wars between Congolese and conflicts
between neighboring nations. Although these wars have components of
inter-tribal conflict, in several cases the conflicts have been induced by
external forces, such as changes in international support and demands for
resource extraction. As a result of tantalum mining and wars, societies in
the eastern regions of the Congo are experiencing heightened physical
and economic insecurity, health problems and human-rights violations.
In the Ituri region, a violent conflict is occurring between the Lendu and
the Hema tribes. Analysts have determined that the conflict has intertribal

31

as well as economic components brought about by the patterns of coltan

extraction.
A health problem brought about by resource extraction is the effect of
tantalite (coltan) mining on women and children who work in the mines.
As more women are turning to mining for income, they are faced with
dangerous tasks such as pounding the stone which contains tantalum. The
release of fibers that get into the lungs is affecting both the women and
their babies, who are passengers on their mothers backs. "More worrying,
the majority of babies, often on the backs of their mothers during the
horrendous task of pounding coltan, have started showing similar signs of
disease and pain to those of their mothers".
Child labour is common in DRC, and the mining industry is no exception.
Children in the region are also being forced and coerced to become
soldiers.
The resulting labor shift from farming to mining has been linked to food
shortages and insecurity. The DRC has some of the richest soils and
favorable climatic conditions for food production on the African continent.
Before Mobutus reign, the DRC was one of the major exporters of food to
the rest of Africa. "The richly fertile soil (especially that in the eastern
highlands which is volcanic in origin) could produce enough food to feed
half of Africa, but the country is so poor that at present its people do not
produce enough food to feed themselves".

Environmental and occupational health

Civilian populations have suffered significant health impacts from mining
and the associated conflicts. The exploitation of natural resources is
directly related to the ongoing conflict in the region and subsequent
humanitarian crises. These health impacts come from labor, human rights
violations, and collapse of social norms.
Health and safety standards are largely specified in Congolese law, but
government agencies have not enforced them effectively. Because of this,

32

there are many grave labor violations. Minimum wage laws are rarely
followed at mines. Work week hour standards, overtime payment and rest
periods are largely ignored as well. Child labor laws are rarely enforced.
Child laborers make up to 30% of the mining labor force. Because of all of
this, deaths and violent injury at mining work sites are common place.
Civilians, including large numbers of children, have been regularly forced
into labor, especially as miners and soldiers. Many miners become
enslaved when they fail to pay back debt to their employer.
Rebel and militia groups commit widespread human rights abuses,
including rape, enslavement, torture, disappearances and killing of
civilians. These groups compete for finances from illegal mining . Reports
indicate that corporations have facilitated these abuses by obtaining
minerals from areas controlled by these groups.[
Sexual violence is an especially widespread and devastating issue across
the country. Between 1.69 and 1.80 million women reported being raped
in their lifetime. Around mines, survival prostitution, sex slavery, and
forced child prostitution has been observed. This widespread sexual
violence contributes to the spread of HIV/AIDS, as well.
During the Second Congo War, 3 million civilians died, largely attributed to
malnutrition or disease. Nearly as many were internally displaced.
Destruction of agricultural land and cattle, and the draw of money through
mining led to a decrease in food access and increase in malnutrition.
Assessment and assistance by outside organizations has been difficult.
Access to mining areas is limited by corrupt government officials and
hostile

militias.

Recently,

reductions

in

mortality

rate

have

been

documented. This is linked to improvements in security, humanitarian and

politic issues. These improvements, however, are limited by continued
unregulated mining. Exploitation of natural resources by rebel groups
supplying international corporations continues to impair the growth of
peace and stability.

33

In the United States, the DoddFrank Wall Street Reform and Consumer
Protection Act requires retailers and manufacturers to track and publish
the amount of conflict minerals sourced from the Democratic Republic of
the Congo. A recent event, the exact regulations have not yet been
determined.

Kinsenda Project
The Kinsenda Project currently ranks as one of the worlds highest grade
copper deposits with declared mineral resources of 20.7 million tonnes at
a grade of 5.6% copper. Kinsenda is situated within the Democratic
Republic of Congo, near the border town of Kasumbalesa.

A Bankable Feasibility Study (BFS) on the project was completed in 2012.

The ore body is mineable using the cut and fill mining methods. Test work
has confirmed that high metal recovery rates can be achieved with a

34

standard crushing, grinding and flotation process. Kinsenda is expected to

produce an average of 20,000 tons of copper in concentrate per annum.
The project has easy access to infrastructure, with a sealed single-lane
road which connects the mine to the regional highway, just 20 kilometres
to the west of the site. Copper concentrates are planned to be transported
via truck to Zambia (sulphides) and Ruashi (oxides).
High voltage power is available on site and a power purchase agreement
with the national electrical supply company has been concluded.
Abundant supplies of water have been identified for use in the mining and
processing operations.

Kinse
nda will employ local residents from the nearby settlements of Meleke,
Twibombele and Kinsenda. Accommodation for workers are readily
available within the settlements and majority of homes have running
water and electricity.

35

The

projects

environmental

impact

assessment

and

associated

management plans were submitted to DRC authorities in 2011 and all

approvals required by the DRC Mining Law have been obtained.
The Board approved the development of the Kinsenda Project in March
2013 and the Company aims to have the mine in operation during late
2015. To meet this deadline, construction work commenced on site in July
2013 and included the development of site infrastructure, underground
access points and the ore processing plant.

The Kinsenda BFS has only taken into consideration the Indicated Mineral
Resources located in the western portion of the property. Through a
drilling programme undertaken in 2012, a significant volume of Inferred
Mineral Resources lying to the east of the main project area was identified.
This area will be explored over the next two years and we anticipate that
the eastern mine could add a further 6 8 years to the life of mine.

36

Musonoi Project
The Musonoi Project is also located in the DRC, on the outskirts of the
mining town of Kolwezi. The project area contains at least 2 known
mineralised zones, one of which (known as Dilala East) was discovered as
a blind, high grade copper and cobalt deposit in 2007. Following the initial
discovery of the high grade mineralised zone, the property has been
extensively drilled and has a declared mineral resource of 31.7 million
tons at a grade of 2.8% copper and 0.9% cobalt. The mineral resource has
been defined to a depth of 600m below surface and indications are that
the ore body is open to approximately 1,000m below surface.
A Bankable Feasibility Study (BFS) on the project was completed in 2013
and concluded that an underground mine, producing 1,000ktpa run-ofmine (ROM) ore with a life of more than 20 years could be established on
the property. The orebody will be mined using long hole stoping methods
and the ROM material will be treated in a conventional flotation plant to
produce a bulk concentrate, containing both copper and cobalt. The
concentrate will be roasted and the calcine produced by the roaster will
feed directly to a solvent extraction electrowinning (SX/EW) plant to
produce copper cathodes and cobalt hydroxide as its final products.
Musonoi is expected to produce 31,000 tonnes of copper cathode and
10,000 tonnes of cobalt contained in hydroxide per annum.
Being located within the heart of the Kolwezi mining hub, between ENRCs
Roan Tailing Project and Katanga Copper Companys Kamoto operations,
the project has excellent access to infrastructure thats needed for mining
projects. A high voltage power line crosses the property and Metorex has
secured a power purchase agreement with SNEL in exchange for
refurbishment of a 50MW hydropower turbine.
In the recent past, the mines around Kolwezi produced over 400,000 tons
of copper per annum. Labour is readily available in the area all with the
necessary mining, processing and acquired technical skills that are
required to operate an underground mine.

37

Specialist consultants completed an Environmental Impact Assessment

(EIA) of the project and from the EIA, an Environmental Management Plan
(EMP) was developed. The EMP will be communicated to the interested
and affected parties in 2014. Feedback from these parties will guide the
final EMP. A concluding report will be issued to the DRC authorities for
approval in 2014.

Kamoa Project

The Kamoa Project is a newly discovered, very large, stratiform copper

deposit with adjacent prospective exploration areas within the Central
African Copperbelt, approximately 25 kilometres west of the town of
Kolwezi and about 270 kilometres west of the provincial capital of
Lubumbashi. Ivanhoe Mines holds its 95% interest in the Kamoa Project
through a subsidiary company, African Minerals Barbados Limited SPRL

38

(AMBL). A 5%, non-dilutable interest in AMBL was transferred to the

government of the DRC on September 11, 2012, for no consideration,
pursuant to the DRC Mining Code. The company also has offered to sell an
additional 15% interest to the DRC on commercial terms to be negotiated.
In January 2013, a new independent mineral resource estimate was
prepared for the Kamoa Copper Discovery by AMEC E&C Services of Reno,
Nevada. The new estimate ranks Kamoa as Africa's largest high-grade
copper discovery and the world's largest undeveloped high-grade copper
discovery. As of January 2013, Ivanhoe Mines had discovered Indicated
Mineral Resources of 739 million tonnes grading 2.67% copper, containing
43.5 billion pounds of copper, and Inferred Mineral Resources of 227
million tonnes grading 1.96% copper, containing 9.8 billion pounds of
copper. A 1% copper cut-off grade and a minimum vertical mining
thickness of three metres was applied in each classification.

Kamoa Mineral Resource December 2012

Copper

cut-Tonnage

off
(Mt)
Indicated Resource
3.00%
224
2.00%
550
1.00%
739
Inferred Resource
3.00%
19
2.00%
93
1.00%
227

Copper

Contained Copper (billion

Grade

lbs)

3.85%
3.04%
2.67%

19.0
36.9
43.5

3.40%
2.64%
1.96%

1.4
5.4
9.8

Note: Mineral Resources have an effective date of December 10, 2012. Harry M. Parker
and Gordon Seibel, both SME Registered Members, are the Qualified Persons responsible
for the Mineral Resource estimates. The Mineral Resource estimate was prepared by Mr.
Seibel. Mineral Resources are reported using a total copper (Cu) cut-off grade of 1% Cu
and a minimum assumed mining thickness of 3 metres. A 1% Cu cut-off grade is typical
of

analogue

deposits

in

Zambia.

Click here to view the March 2013 Kamoa Technical Report on

updated

Mineral

Resource

Estimate

39

Click here to view the November 2013 Kamoa Preliminary

Economic Assessment Technical Report

Two-phased approach to the development of a large mine

and smelter
On November 18, 2013, Ivanhoe Mines announced positive findings of an
independent, Preliminary Economic Assessment (PEA) of the company's
major

Kamoa

copper

discovery.

The PEA reflects a two-phased approach to development of the Kamoa

Project. The first phase of mining would target high-grade copper
mineralization from shallow, underground resources to yield a high-value
concentrate. The second phase would entail a major expansion of the
mine and mill and construction of a smelter to produce blister copper.
The PEA contemplates the establishment of a conventional copper mine
and concentrator complex at Kamoa with an initial mining rate and
concentrator capacity of three million tonnes per year. Initial mill feed
would come from the Kansoko Sud mineralized zone and lead into the
Centrale

area

of

Kamoa's

mineralized

zones.

The initial mining rate and concentrate feed capacity of three million
tonnes per year would be followed in Year 5 by an additional expansion of
eight

million

tonnes

per

year

in

concentrator

capacity

and

the

construction of an on-site smelter with a capacity to produce 300,000

tonnes per year of blister copper. In addition, an estimated 1,600 tonnes
of sulphuric acid per day would be produced as a by-product in the copper
smelting process.The PEA contemplates that the sulphuric acid produced
at Kamoa would be sold to copper-oxide mining operations on the Central
African Copperbelt that currently purchase acid from Zambia or from
overseas.

40

The production scenario schedules 326 million tonnes to be mined and

milled at an average copper grade of 3.0% copper over a 30-year mine
life, producing 7.8 million tonnes of payable blister copper (plus 0.5 million
tonnes of payable copper in concentrate, in the initial concentrate phase)
over

the

life

of

the

project.

The PEA is preliminary in nature and includes an economic analysis that is

based, in part, on Inferred Mineral Resources. Inferred Mineral Resources
are considered too speculative geologically to have the economic
considerations applied to them that would allow them to be categorized as
Mineral Reserves, and there is no certainty that the results will be realized.
Mineral Resources do not have demonstrated economic viability and are
not

Mineral

Reserves.

Highlights of the Preliminary Economic Assessment (PEA):

A large mine and smelter would be developed using a two-phased

approach.

A smaller-scale start-up would establish an operating platform to

support expansion.

Early cash flows would be generated from the sale of high-grade

copper concentrate.

Low pre-production capital requirement of approximately US$1.4

billion.

Steady-state production target of 300,000 tonnes per year of blister

copper, which would establish Kamoa as one of the world's largest
copper mines, with the highest grade.

Cash costs of US$1.18 per pound of copper would rank Kamoa near
the bottom of the global cash-cost curve.

Pre-tax Net Present Value, at an 8% discount rate, of US$4.3 billion.

41

After-tax Net Present Value, at an 8% discount rate, of US$2.5

billion.

Pre-tax internal rate of return of 18.5%; after-tax IRR of 15.2%.

Construction underway of first box cut for

planned underground mine

The construction of the box cut for the first access declines to the planned
underground mine is progressing well and on schedule to be completed by
the end of 2014. This will enable commencement of construction of the
twin declines designed to intersect the high-grade copper mineralization
in the Kansoko Sud area, approximately 150 metres below surface.
Ivanhoe's drilling program in this area has defined a thick, near-surface
zone of high-grade copper mineralization, where a recent drill hole
intercepted 15.7 metres (true width) of 7.04% copper, at a 1.5% total
copper cut-off.

Progress

on

pre-feasibility

study,

with

initial mining planned at Kansoko Sud

In line with the phased approach to project development outlined in the

2013 updated Kamoa preliminary economic assessment (PEA), the Kamoa
PFS is progressing based on the planned first phase of the project having
an underground mine producing three million tonnes per annum (3 Mtpa)
and feeding a concentrator. Development plans will be refined following
completion of the PFS. Work on the PFS design, scheduling and cost
estimation of the mine is progressing well. To maximize margins, the
target of the early years of mining is the near-surface material in Kansoko
Sud

and

high-grade

material

in

Kansoko

Centrale.

42

Given the favourable geological characteristics of the Kamoa Deposit as

derived from the December 2012 mineral resource -- including its
relatively undeformed, continuous mineralization -- it is considered
amenable to large-scale, mechanized, room-and-pillar and drift-and-fill
mining.

The

overall

dip

and

geometry of the resource make it conducive to room-and-pillar mining in

the shallow portions of the deposit, which will transition to stepped roomand-pillar mining in the steeper sections and to drift-and-fill mining in the
deeper sections. These methods are the accepted industry standards for
mining

deposits

such

as

Kamoa.

Metallurgical test work for PFS design of the concentrator is underway at

the XPS laboratory in Sudbury, Canada, and the Mintek laboratory in
Johannesburg, South Africa. This test work is being carried out on a
composite sample representing the first four years of mining, during which
flotation concentrate will be produced and sold. Recent test work and
flow-sheet development have resulted in significant improvements in
copper

recovery

(88.3%)

and

copper

concentrate

grade

(39.0%).

Furthermore, very low arsenic levels were reported (0.01%), which could
attract a premium.

Mining licence

In August 2012, the government of the DRC granted the mining licences
for the Kamoa Project that cover 400 square kilometres. The licences are
valid for 30 years and can be renewed for 15 years at a time, until the end
of the mine's life.

Agreement

signed

to

upgrade

existing

hydroelectric power plants

43

In March 2014, a financing agreement was signed between Ivanhoe and

the DRC's national electricity company, La Socit Nationale d'Electricit
(SNEL).

Ivanhoe

is

working

with

SNEL

to

upgrade

two

existing

hydroelectric power plants -- Mwadingusha and Koni -- to recover up to

113 megawatts of capacity to be made available to the national power
supply grid. SNEL will provide the Kamoa Project with up to 100
megawatts from the grid, which would be sufficient to operate the initial
phase

of

the

Kamoa

mine.

A third hydroelectric power plant -- Nzilo 1 -- would follow under the same
financing agreement. Nzilo 1 will have a capacity of approximately 108
megawatts upon completion, entitling Kamoa to receive an additional 100
megawatts from the grid. The upgraded technology planned to be applied
will increase the original design capacity of these power plants by up to
10%.
A combined total of 200 megawatts from the grid would provide sufficient
power for Kamoa's 300,000 tonnes per year smelter and the associated
future mine expansions.

Gold mining in Congo

44

45

46

Gold miners in eastern DRC no longer fear warlords but now they are
exploited by a plague of corrupt government officials and security
personnel.
They all demand illegal taxes, fees and levies from the miners without
delivering any meaningful services in return, according to a major
research report by the Southern Africa Resource Watch (SARW).

47

The report Conflict Gold to Criminal Gold: The new face of artisanal gold
mining in Congo highlights the poor governance of the mining sector,
which could be the driving force behind genuine socio-economic
development in the region, and the daily battle for survival by thousands
of artisanal and small scale gold miners, who produce nearly all of eastern
DRCs gold.
The report, which was based on 10-months of research in gold-mining
communities in the provinces of North and South Kivu, Maniema and
Orientale by a team of 12 Congolese researchers and a renowned
international expert, found that:

The artisanal gold-mining communities of the Kivus, Maniema and

Orientale are in the grip of a historic gold rush, complete with all the
classic symptoms chaotic migrations, poor sanitary and health
conditions, dangerous mine excavation techniques resulting in
frequent fatalities, increasing criminal exploitation of the entire
process, and incalculable environmental costs;

Artisanal gold mining produces between US$1-2 billion per year and
undeniably represents the biggest single source of income for
eastern DRC

and the best hope for economic growth

and

development;

But gold miners have not benefited from this gold rush and from
notable improvements in the broader economic and security
context, which include the establishment of peace in most goldmining areas; record-breaking gold prices on world markets; and the
restructuring of government agencies, partly supported by the
international community, to increase supervision and enforcement
of laws in all mining areas;

Gold is the economic lifeblood of the eastern DRC, but the

Congolese government lacks any credible and reliable institutional
presence, any statistical data, or any genuine plan to collect data.
Inevitably, all policy implementation efforts for the informal gold
sector are ineffective; and,

48

While the exploitation of artisanal and small-scale miners continues,

the identity of those responsible has changed. They are no longer
warlords

and

members

of

militia
state

leaders
military

but
and

government
security

administrators,

organisations,

and

racketeers.
According to the report, the cumulative effect of the regular shakedowns
by state agents and the trading power of the racketeers have left most
miners mired in desperate poverty and communities struggling to survive

despite

living

on

top

of

such

rich

gold

reserves.

The town of Bunia and the surrounding region, where thousands of

miners dig for their living, have not been disturbed by wars or rebellions
since 2005, yet the majority of the population is in the grip of acute
poverty and desperation, said Georges Bokundu, SARW DRC Coordinator.
This has nothing to do with wars and rebellions and everything to do with
irresponsible policies and the greed of state agents and so it is up to the
Congolese

government

to

act.

The report concludes with four key recommendations to improve

conditions for artisanal miners in eastern Congo and pave the way for
gold-led

socio-economic

development:

Stop the criminal exploitation of the gold-mining sector The government

must act to halt the increasingly criminal exploitation of artisanal and
small-scale miners by a plague of government bureaucrats, officials and
security agents and end the illegal export of almost 100 percent of the
gold

produced

in

the

east.

Provide adequate physical protection to miners If the government

provided adequate physical protection to artisanal and small-scale miners
by reallocating funds to support legitimate army regiments gold
production would increase and so would the sectors impact on individual
livelihoods

and

the

regions

economy.

49

Protect artisanal and small-scale gold miners from racketeers The

government needs to tackle the racketeers, who are buying the miners
gold at unfairly low prices and selling them food, tools and other
merchandise at hugely inflated prices and leaving them constantly
digging

for

survival.

Reorganise or close SAESSCAM The Service for the Assistance and

Supervision

of

Artisanal

and

Small-Scale

Mining

(SAESSCAM)

was

established to support miners but its underpaid or often unpaid agents

simply extort taxes, levies and other fees without providing any
services in return. The government must totally restructure the institution
or

close

A dozen SARW

it

researchers

visited dozens of

down.
gold

mining sites,

interviewing hundreds of miners, their wives and children, gold traders,

government officials, soldiers, officers and agents of the national military,
security and police organizations. The project is on-going. Research teams
continue to monitor and assess the general economic and trade
conditions,

as

environmental

well
issues

as

the

security,

affecting

labour,

artisanal

and

gender,

health

small-scale

and

mining

communities. The results of the on-going research will be published in

separate reports during the coming months.

Indian Mining Industry

Mining is one of the core sectors that drive growth in an
economy. Not only does it contribute to GDP, it also acts as a
catalyst for the growth of other core industries like power, steel,
cement,

etc., which, in turn, are critical for the overall

development of the economy. Our analysis has shown that

50

every one percent increment in the growth rate of mining and

quarrying results in 1.2 1.4% increment in the growth rate of
industrial production and correspondingly, an approximate
increment of 0.3 percent in the growth rate of Indias GDP.
After clocking an average growth rate of 4.8% over

the 5

years between 2006-07 and 2010-11, the sector has witnessed

negative growth of 0.6% for two consecutive years now (201112 and 2012-13). The mining sector in the last couple of years
has been hit hard due to policy paralysis on a whole gamut of
issues, irrespective whether they are in the domain of the
Centre of the States. As a result mining projects across the
country

has

remained

stalled

owing

to

court

cases,

environmental, regulatory and land acquisition issues. The

sector has also been reeling under high borrowing costs.
Moreover, despite Indias significant geological potential, the
country does not rank very high in terms of its mineral resource
base amongst similarly geological endowed nations. It is also a
matter of concern that though as per National Mineral policy,
2008, private sector should have been at the forefront of
mineral production but the public sector continues to play a
dominant role accounting for 68% of mineral production during
2011-12. Clearly policies and incentives have not been
conducive for the private sector players to participate more
actively.
There is significant mineral potential that still lay untapped in
India for the growth of mining but historically, mining sector

51

has struggled to exploit the potential due to three big factors

i.e. regulatory and administrative procedures, inadequate
infrastructure facilities and sustainability.
These challenges have limited the overall investment in mining
and exploration activities in India, as evident from very low
inflow of FDI in the mining sector. Indias spend on mineral
exploration is less than 0.5% of the global spending on
exploration in 2010, much below its fair share given the size of
mineral resource potential.
Given the availability of mineral wealth in India, the Ministry of
Mines, Government of India, has targeted significantly higher
share of GDP from mining. It aims to increase share of mining
and quarrying in GDP from current 2% of GDP to 5% of GDP
over the next 20 years. This requires mining to grow at 10-12%
per annum. On the other hand, within two decades of
liberalized economy, much in contrast with the constitutional
objectives, mining as a sector has come to be associated with
scams, conflicts, violence and ecological degradation. The
conflict it engenders is enormous and wide spread. The future
should therefore usher in an era of mineral development with
socio-economic development as the focus.
At present, nearly half of Indias total mineral production
(including oil and gas) in value terms is contributed by seven
key mining states, namely Odisha (9.6%), Andhra Pradesh
(9.0%), Rajasthan (7.9%), Chhattisgarh (7.8%), Jharkhand
(6.5%), Madhya Pradesh (4.8%) and Karnataka (3.6%). The
seven big mining states also account for a third of Indias

52

population but are relatively backward. Growth in mining could

play a critical role in the social and economic development of
the people of these states as these seven states also account
for a majority of the key minerals reserves in India.
Share of key mining states in Indias mineral reserves, by
volume (2006)
Iron

Mangenes

Lead&

Chromit

Zinc

17%

51%

35%

98%

16%

10%

M.P.

18%

10%

A.P.

7%

7%

21%

1%

Rajasthan

90%

41%

29%

1%

-84%

-89%

-72%

-74%

-91%

-99%

States

Coal

Jharkhand

29%

14%

Orissa

24%

Chattisga
rh

Karnatak
a
Total

Ore

Bauxite

Industrys relationship with society is undeniably both critical

and under pressure. Rising levels of public opposition and social
conflicts are impacting operations in India and arguably around
the world. The mining industry in India has howeverhas started
to shape the future direction of this engagement towards an
inclusive agenda. There is no doubt that mining investment can
become a positive catalyst for improving livelihoods of the local
populace, bringing in much needed investment job and wealth
creation, and government revenues. On its part the industry is
beginning to recognize the difficulties communities are facing in

53

adjusting, particularly since the local populace mostly has

limited exposure to modern living. Severe, rapid disruptions to
local life generate fear and mistrust. The public trust deficit
needs to be addressed by both industry and government alike.
That mining companies, given the nature of their business
(operations in backward / remote regions and need for social
license to operate), are investing in helping local community
by building schools, healthcare facilities, etc is evident from
Exhibit 1.2. This is no way suggests that that enough is being
done, but a beginning hasdefinitely been made.

Potential and Opportunity for Significant Growth of

Mining in India
India produces about 87 minerals that include 4 fuel minerals, 3
atomic minerals, 10 metallic minerals, 47 non-metallic minerals
and 23 minor minerals (including building & other materials).
India occupies a dominant position in the production of many
minerals across the globe.
There are close to 3000 mines in India. Number of reporting
mines during the last decade has been around 3000 to 3200.
However, during 2010-11,
it was 2928, out of which, 573 were fuel mines, 687 were mines
for metals, and 1668 mines for extraction of non-metallic
minerals. Of the total number of about 90 minerals, the three
key minerals are coal, limestone and iroore.

54

There are 560 Coal mines (19% of total number), 553limestone

mines (19% of total number) and 316 iron ore mines (11 % of
total number). They comprise about half of the total number of
reporting mines. The number of mines engaged in extraction
was also significant in cases of bauxite (189), manganese
(141), dolomite (116) and Steatite (113). As seen in Exhibit 1.3,
with regard to production of these three key minerals, India
ranks 3 in coal production, 3 in limestone production and 4 in
rd

rd

th

iron ore production, in the world as of 2010.

Indias Production Rank across Key Minerals 2010
Minerals

Key

application Total production Indias rank in

industry

(000 tonnes)

global
production

Coal

Power,

Steel, 537000

3rd

240000

3rd

Cement
Limestone

Cememt,
Iron&Steel,
Chemicals

Iron ore

Iron& Steel

260000

4th

Bauxite

Transportation,

18000

4th

Packaging,
Construction
Barite

Oil& Gas, Paints, 1000

2nd

Plastics
Chromite

Steel,

Dye& 3800

2nd

Steel, 750

4th

Pigment,
Preservative,
Refractory
Zinc Metal

Iron&

Communication

55

equipment
Manganese

Iron&

Steel, 1000

5th

ore

Packaging

Lead metal

Paints

95

6th

Copper

Electronics,

191

10th

1400

7th

Architecture,
Alloys
Alluminium

Transportation,
Packing,
Construction

Source:Ministry of Mines, Government of India, US Geological Survey,

Goldman Sachs & Morgan Stanley Metals Playbook

Demand side potential

India has significant potential to further grow itsmining industry.
This potential is apparent from both the demand for minerals
and the availability of natural resources in India.
Countries typically go through a mineral consumption
curve

where

per

capita

consumption

of

minerals

accelerates during the indu

strialization period (developing phase) and gradually stabilizes
or declines later (developed phase). A relative comparison of
India, as with various countries suggests that India is still at an
early stage on the mineral consumption curve. Even amongst
the BRIC (Brazil, Russia, India and
China) nations, India is the least developed in terms of per
capita

mineral

consumption.

As

Indias

per

capita

GDP

increases, its mineral consumption will grow at a rapid pace in

56

line with the growth witnessed in other emerging markets like

China and Brazil. Projections based on the mineral consumption
intensity show that demand for a variety of minerals will
increase at a much faster pace than the historical growth rates
Further, to assess the domestic growth potential for mining
sector in India, one can also look at the future growth potential
of its key consumer industries, for example, steel, cement, etc.
The Planning Commission, in its 12th five year plan, had set a
target of 9% for the GDP growth rate which subsequently has
been revised to 8%. Nevertheless, this implies a huge spurt in
sectors like construction and power generation which in turn
will lead to substantial capacity addition in the steel, cement
and thermal
power sectors. These industries, being key consumers of
minerals like iron ore, limestone and copper, will drive
significant growth in consumption demand of minerals in India.
In addition to domestic demand growth, the Indian mining
industry is also likely to see accelerated growth in exports
demand. The key minerals exported from India are iron ore
(although this has dipped significantly at present), alumina, and
chromite. According to industry forecasts, the global demand
for these minerals is expected to accelerate in the future. For
example, as shown in Exhibit 1.7, the global demand for both
seaborne iron ore and aluminium is expected to grow at the
rate

of

10%

per

annum

while

the

global

demand

for

ferrochrome, an alloy containing chromites, is expected to grow

at the rate of 7% per annum in the coming years.

57

Thus, there are substantial demand side drivers for the growth
of Indias mining industry.

Supply side potential

In global rankings of mineral reserves, India occupies a
dominant position for key minerals, for example, coal and iron
ore. India has the worlds 4th largest coal reserves, which is
equivalent to 12% of global reserves. India also possesses
the7th largest reserves of iron ore, 3rd largest reserves of
chromite and 5th largest reserves of manganese ore in the
world. In other words, at the current consumption rank, India
has proven reserves for 175200 years for coal, and 4050
years for iron ore and limestone.
As far as imports are concerned, more than 85 % of the imports
are accounted for by petroleum and diamond. The former is
essential to meet the energy requirements whereas the import
of raw diamond is for value added re-exports. India continues to
be largely self sufficient in minerals which constitute primary
mineral raw material to industries like iron ore, ferro alloys,
aluminum, cement etc and mineral fuels like coal (except low
ash coking coal) etc..
Indias Position in Reserves of Key Minerals - 2010
Minerals

Current reserves Indias rank in Reserve

(mn tonnes)

reserves

life

(years)

58

Coal

113000

4th

187

Limestone

12715

55

Iron ore

7000

7th

47

Bauxite

900

6th

66

Barite

34

2nd

30

Chromite

66

3rd

24

Zinc Metal

11

7th

Manganese ore

138

5th

47

Lead metal

7th

26

Copper

Alluminium

2.3

5th

Source: Ministry of Mines, Government of India, US Geological Survey,

Goldman
Sachs & Morgan Stanley Metals Playbook

In addition to the internationally recognized proven and

probable reserves, India has significant quantity of mineral
resources which are still under various stages of exploration. A
quick look across key minerals highlights the fact that the
unproven resources are more than twice the proven reserves.
With appropriate investments in infrastructure and technology
used in exploration, there is significant potential for further
increase in the realizable mineral wealth of India.

Three Key Challenges to Growth Faced by Industry

Thus there is an enormous potential for growth of mining in
India. This is driven by both the positive demand scenario and

59

substantial

existing

reserves

and

potential

resources.

However, historically, mining sector has struggled to exploit

this potential due to three key reasons:

a. Regulatory challenges
There are a set of regulatory and administrative challenges in
India which restrict the growth of mining in India. To illustrate:
The current regulatory provisions make it difficult, if not
impossible, to transfer mining leases. The prospecting
licenses are not transferable.
There is no guarantee of obtaining mining lease even if a
successful exploration is done by a company. The mining
licenses are typically awarded on a first come first serve
basis in principle but there is no transparent system.
Getting all approvals for mining is a long drawn process
with multiple agencies involved. Further, there are
substantial delays in disposal of various applications for
clearances.
There are limited incentives for private sector to invest
in improvement of technology and equipment in mining
projects as the mining industry is the most heavily taxed
industry in India.

These challenges have limited the overall investment in mining

and exploration activities in India. This is demonstrated by the
fact that despite being one of the few sectors in India which
allows

100%

Foreign

Direct

Investment

(FDI)

(with

the

exception of atomic and fuel minerals), the actual inflow of

60

foreign investment in the mining sector in India has been quite

low. Further, Indias spend on mineral exploration is less than
0.5% of the global spending on exploration in 2010 much
below its fair share given the size of our landmass and our
potential mineral wealth. Even this exploration activity has
largely been limited to public sector enterprises.
b. Inadequate infrastructure facilities.
The inadequacy of infrastructure is related to the absence of
proper transportation and logistics facilities. Many of our mining
areas are in remote locations and cannot be properly developed
unless the supporting infrastructure is set up. For example, the
railway connectivity in most key mining states is poor and it
has inadequate capacity for volumes to be transported which
adds to the overall supply chain cost. The government foresees
that steel production capacity in the country by the year 2025
will increase to 300 million

tonnes

per annum. This would

require Indian Railways freight capacity to be around 1185

million tonnes, for only steel and its raw material requirements.
In 2012-13 the total freight carried by Indian railways was
1,010 million tonnes. Therefore, unless significant initiatives are
taken and are promoted by Indian Railways through private
participation to address the anticipated logistics requirement of
the mining and manufacturing industries, the risk foreseen is
too significant in magnitude to hamper the growth of industry.

61

Further, there is inadequate capacity at ports for handling

minerals and the rail / road connectivity to some ports is very
poor. The key constraints are:
There is capacity constraint for capital dredging,
Existing ports are unable to meet the expected 10% growth in
traffic at ports,
High dwell time of cargo in Indian ports due to manual
workflow and low level of IT penetration
Lack of public investment in capacity building
Slow evacuation of cargo from ports due to limited hinterland
connectivity by rail/road.
c. Sustainability
Mining activity in any area impacts the environment as well as
the

socio-economic

set-up.

Therefore,

ensuring

that

the

adverse impacts are minimized and the benefits from mining to

the impacted community are optimized becomes critical for
mining to be being carried out in a
sustainable manner.
The importance of sustainability in mining, in India, can be
illustrated by the fact that a large percentage of mining
proposals has failed to get environmental / forest clearance
from the Ministry of Environment and Forests, Government of
India. For example, out of 2,842 mining projects proposed for
forest clearances in the last17 years, only 1,723 projects, which
constitute about 60% of the total, have been issued forest
clearance by the central government. The remaining 40%

62

projects are either still pending or have been rejected / closed

on grounds of sustainability.
Further, obtaining the clearanceis a very long drawn process,
which is
illustrated by the fact that out of the total pending projects in
2012, 63% have been pending for more than two years.
In addition to the environment and forest clearances, mining
projects also have to comply with several requirements aimed
at enhancing the welfare
of

the

local

community.

Obtaining

these

approvals

and

clearances is a tedious process as it involves multiple agencies

and local governing bodies. Over and above these regulations,
the mining companies also need to take the local communities
along, to ensure that they have the support of the local side
for their projects. As a result, several projects are impacte
d with challenges by way of opposition from local communities /
NGOs, difficulties in land acquisition, denial of clearances from
the governing bodies, etc. A few instances of some of the major
projects that have been impacted in recent past are as follows:
Pohang

Steel

Company

(POSCOs)

US$

11

billion

investment plan for mining and steel production: strong

opposition from local people over land acquisition.
Vedantas proposed US$ 1.7 billion bauxite mining project
in Odisha: opposition by local community and eventual
withdrawal of the forest clearance.

Utkal alumina project, which was a US$ 1 billion joint

venture between M/s. Hindalco (India) and Alcan (Canada)
to mine and refine bauxite: delayed by more than a
decade due to challenges in land acquisition

Uranium
63

Corporation of India Ltd., UCILs two mining projects worth

US$ 200 million and US$ 225 million in Meghalaya and
Andhra

Pradesh

respectively:

opposition

from

local

communities and organizations on the grounds of likely

effects of radiations on human health and environment.

Unresolved Policy Issues

Notwithstanding the proposed MMDR Bill 2011, there are
certain

major

policy

issues

which

deserve

serious

consideration:
1. So far as mining activity is concerned, India isa single
economic space and as such, more delegation of powers to the
state governments may jeopardize the interests of mineral
development.
2. While the National Mineral Policy 2008 remains yet to be
implemented, the mineral policies of the state governments are
at variance with the same. In fact, the procedures in the grant
of mineral concessions also vary from state to state. It would
therefore be necessary that the state governments may be
restricted to formulate their mineral policies only to minor
minerals.
3. To curb the menace of illegal mining and to ensure scientific
mining, it would be necessary to strengthen and re-structure
the Departments of Mines & Geology of the state governments
on a uniform pattern.

64

4. As mineral exploration is key to attracting investment in the

mining sector, separate legislation and procedure for grant of
prospecting / exploration licenses is required. At present, the
same procedure is being adopted as that of a mining lease in
grant of prospecting licenses whereas mineral investigation
does not involve acquisition of land, it being a temporary
activity for a short period.
5. There is incorrect definition of prospecting activity in Forest
(Conservation) Act 1980. The provisions of guidelines 1.3 (v) of
the handbook exempts certain activities like oil drilling,
transmission of power lines etc from forest clearance but in
case of prospecting though
few drill holes are permitted (16 boreholes per 10 sq km) vide
notification no 5-3/2007-FC dated August 19th, 2010 of Ministry
of Environment
and Forests, but the collection of surface samples through
trenching / pitting are prohibited. In fact, the prospecting
activity has not been defined properly in the notification and
entry to forest land remains a big issue to the prospectors. As
most of the mineral bearing lands overlap the forest lands in
the country, the provisions of Forest (Conservation) Act 1980
need to be amended in the interest of detailed prospecting and
exploration for mineral investigation, where no degradation of
forest is involved; rather, prospecting activity needs to be
exempted from forest clearance.

65

6. There is a tendency on the part of the state governments to

give preference to value addition and reservation of potential
areas to the
reservation of

large potential areas which have remained

blocked for a long period without any exploration and

development. At the same time, there is hardly any dereservation of such potential areas.
7. Geological Survey of India (GSI) has identified an area of 5.71
lakh square kilometres as Obvious Geological Potential (OGP)
area in the country. But there is hardly any detailed mineral
exploration activity in the absence of timely follow-up actions
on GSIs recommendations.
8. A transparent, simple and stable fiscal regime plays a

significant role in the growth of the industry for attracting

investment. However, Indian mining sector is already amongst
the highest taxed in the world with effective tax of about 45%
compared to other countries which ranges between 35 to 40%
(China-32%,

Russia-35%,

Australia-

39%,

Chile

40%

and

Canada- 35 %). The Draft MMDR Bill, 2011 proposes a number

of additional taxes and levies thereby taking the effective
taxation to more than 60%. In addition to above there is huge
additional burden from revision of royalty rate and stamp duty.
Taxes/duties/cess etc. should not be prohibitive and should help
the industry to survive, sustain and grow. Further any new
taxes/duties/cess should take into consideration existing burden
on the sector.

66

Mines Industry in Gujarat State

Industries and Mines department plays a key and important role in
effective and economic industrial development and focuses on the
possibilities to develop fast growth in small medium and Large-scale
industries.
Gujarat is the sole producer of agate, chalk and perlite in the
country, and the second largest producer of lignite and petroleum
during 2010-11.
Gujarat is known for its enterprising spirit and is rightly called the
growth engine of India. The Government of Gujarat has undertaken
speedy and investor-friendly reforms and continues to intensify
steps to accelerate growth. Constituting 5% of the
total population, the state already accounts for 17% of the industrial
output, 25% of
exports and about 10% of the total workforce. The state has also
emerged as a leading producer of fluorite (concentrate), fireclay,
silica sand, laterite, natural gas
and bauxite. The total value of mineral production in Gujarat has
been recorded at INR 12731.07 crore in 2010-11. Gujarat has also
emerged as an important stone producing centre, with a dedicated
resource of entrepreneurs, technology and requisite skill sets. The
industry has witnessed significant growth in urban and rural
infrastructure space.
The State Government's focus is to identify more mineral reserves
and create business-friendly policies which will serve customers on a
long term basis. Through Industries & Mines Department, the State
Government is addressing environmental
issues, while also implementing e-governance for transparency in
this sector. The Government of Gujarat realizes the importance of
sustainability in the mining sect
or and envisions a paradigm shift to Sustainable mining for
spectacular growth of
mineral processing industry.

Controlling Authority

67

There are 7 Major Heads of the Department and 25 District Industrial

Commissionerate (DIC) and Various Boards and Corporations and
Institutions to help in achieving the desired Results and Goals of the
Industries and Mines Department
DIC in each district works as a common point for developing the
industries and in implementing various policies and schemes in their
respective district.

Minerals found in Gujarat

State
Minerals Found in
Respective Districts

Brief Summary and Important

Links

GUJARAT
Amreli

Banaskantha

Bharuch

Bauxite, Bentionite,
China clay,
Limestone, Calcite

Gujarat is the second largest producer

of lignite and crude petroleum. It
attains 6th position (2010-11) in terms
of its contribution to production. In
China Clay, Copper ore,2010-11, the value of mineral
production remained at Rs. 12731.07
Granite, Leadcrores whereas the value for minor
Zinc, Marble
minerals remained at Rs. 725.67
crores.
Agate , Fireclay,
Fluorite, Lignite,
Quartz/Silica sand,
Calcite

Bhavnagar

Bauxite, Bentionite,
China Clay, Dolomite,
Fuller's earth, Gypsum,
Lignite, Ochre, ,
Quartz/Silica sand

Dahod

Quartz/Silica sand

Jamnagar

Bauxite, Bentionite,
China Clay, Gypsum

Junagarh

Bauxite, China Clay,

Gypsum, Limestone

Kachchh

Bauxite, Ball Clay,

68

Bentionite, China Clay,

Fuller's earth, Gypsum,
Lignite, Limestone,
Ochre, Quartz/Silica
sand
Kheda

Bauxite, Fireclay,
Limestone,
Quartz/Silica sand

Mehsana

China Clay,
Fireclay, Granite

Panchmahals

Limestone,
Quartz/Silica sand,
Rock phosphate,
Graphite,
Manganese ore

Patan

Ochre

Porbandar

Bauxite, Chalk,
Limestone

Rajkot

Fireclay, Limestone,
perlite, Quartz/Silica
sand

Sabarkantha

Bauxite, Bentionite,
China Clay, Fireclay,
Limestone,
Quartz/Silica sand,
Granite

Surat

Fireclay, Lignite,
Limestone,
Quartz/Silica sand

Surendranagar

Fireclay, Gypsum,
Quartz/Silica sand

Vadodara

Dolomite, Fluorite,
Limestone,
Quartz/Silica sand,
Lead-Zinc, Marble,
Manganese Ore

Valsad

Bauxite

Valsad

Limestone,

69

Quartz/Silica sand

Main and largest player in Gujarat in the field of Mines and

Mineral :

1. Gujarat Mineral Development Corporation

1963 - Gujarat Mineral Development Corporation Limited, a

government of Gujarat enterprise was incorporated with the
objective to develop major mineral resources in the Gujarat.
1968 - A project was set up by GMDC, in the year 1968 that was beneficiation
of fluorspar, a rare mineral essential for basic industries, like refining of steel
manufacturing of aluminium,
hydrochloric acid, foundry flux and welding electrodes among others.
1970 - GMDC started commencing mining of lignite in Kutch district of
Gujarat. By the early 70's the industrialization of Gujarat was on a rapid
pace, which enforced heavy quantities of fuel to sustain the growth.
1984 - GMDC started mining operation at Rajpadri near Ankleshwar in 1984,

70

and has been supplying lignite to majority of the textile industries from this
mine.
2002 - GMDC Flares up gradation in the ranking amongst top PSU companies
of India according to a survey conducted by ET500. For the year 2001-02 on
the basis of OPM criteria GMDC ranked 7th out of 100 companies and on the
net profit basis it is ranked 111th out of 250
companies. Further for market capital it was ranked 186th out of 500
companies.
2003 - The financial closure for Akrimota Power Project has been achieved in
March 2003. Against the requirement of Rs.1116 crores, financial institutions
and Banks have pledged assistance for Rs.1400 crores.
- GMDC had ranked 112th in terms of excellence in business performance in
the list of top manufacturing companies in India accumulated by Industry 2.0
and Investment Research and Information Services Ltd (IRIS).
2004
- GMDC had received a composite score of 6 out of a possible 15 in Industry
2.0's SCM Metrics study. The study examined trends in the Supply Chain
Management (SCM) metrics of India's top 1,000 manufacturing companies.
- According to the resolution came on Sept 23, among the 12 PSUs identified
for the restructuring process in the Gujarat state GMDC is also included.
2005
- First unit of the Akrimota Power Project has been synchronized on 31st
March 2005.
-Gujarat Mineral Development Corporation (GMDC) and Oil and Natural gas
Corporation (ONGC) have joined hands to develop underground coal
gasification (UGC) for power generation in Gujarat.
2006
- GMDC expanded its operations beyond the state from the year 2006.
Ministry of Coal, Government of India had allotted to GMDC coal blocks with
approximately 350 million tonnes of mineable reserves in Morga-II block of
Korba district in the State of Chhatisgarh and another one in Jainnagar,
Hazaribaug district in the State of Jharkhand with 100 million tonnes of
mineable reserves.
-GMDC sets up Tadkeshwer lignite mines
2007
- The company had executed a MoU with Reliance Industries to set up a
joint venture (51% RIL - 49% GMDC) to undertake lignite/coal gasification
projects. Further the board of directors of the company at its meeting held on

71

April 30, 2007, resolved to split the shares of the company in the ratio of 1:5
after necessary approvals.2.
- The Company has splits its face value from Rs10/- to Rs2/-.
2008
- GMCD had informed the market on January 31st 2008 that the company
board has decided to recommend a bonus issue of shares in the ratio of 1:1.
2009
-Commencement of Wind Power of 19.5MW in 2009
-The Corporation also went into harnessing the wind energy and
commssioned 19.5 MW wind turbines near Malya in Kutch in the later part of
2009 which will be expanded further to the tune of 100 MW in various stages
of implementation.
2010
-The Corporation first implemented ISO-9001 at Corporate office in 2010 and
is planning to obtain for all the mines in operation with Occupational Health
and Safety systems(OHS-18000) along with Environmental Management
systems(ISO-14000) which are intended for achieving excellence in all areas
where its people and stake holders are connected.
-The Corporation also embarked on a sophisticated Enterprise Resource
Planning system in 2010 covering the whole ambit of mining operations
throughout Gujarat to achieve efficiency and complete the tasks in time with
the minimum resources required
2011
-GMDC has declared highest ever dividend of 150% for the F.Y.
2010-11
-GMDC Bhavan has been announced as the Best Government Building
-Ahmedabad in best building category for theBIHED AWARDS 2011.
2012
-State-owned mining company Gujarat Mineral Development Corporation
(GMDC) is looking for approximately 1,500 acres of land in Mandvi taluka at
Kutch district to set up its alumina and smelter plant project in joint venture
(JV) with National Aluminium Company (Nalco), said the media reports.
-Leading mining company Gujarat Mineral Development Corp (GMDC) has
posted nearly three-fold jump in its net profit for the second quarter ended

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September 30, 2012 at Rs 168.81 crore.

CONCLUSION
The STEEPLED analysis here shows what is a factor in
India who relates to the Business. This study is more
and more beneficial for any business organization. In
the report given detail of our India political, social
economical, legal, environmental and technological.
This all the issue of India market stability, government
politic. Political stability in India. And many other
things show this. We say that STEEPLED analysis role is
in today scenario in business very important. We see
here India STEEPLED analysis. In India many
opportunity to open a business. Some problems in India
But we Know every where every things is not available.

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References
1. Salem sheikh Text Book
2. www.economicstimes.com
3. http://economictimes.indiatimes.com/
4 http://proquest.umi.com/
5. http://rapidbi.com/STEEPLED/Introduction-to-theSTEEPLED-analysis-tool.html#political
6. http://www.englishtest.net/gre/vocabulary/meanings/349/gre-words.php
7. http://en.wikipedia.org/wiki/Abstract_%28summary
%29
8. http://en.wikipedia.org/w/index.php?title=Special
%3ASearch&search=STEEPLED&go=Go
9. http://www.englishtest.net/gre/vocabulary/meanings/349/gre-words.php
10. http://www.teesmaarkhan.com/2008/07/pestanalysis-india.html
11. http://www.financialexpress.com/gsearch.php?
cx=partner-pub-9517772455344405:6tybbydb0c&cof=FORID%3A10&ie=ISO-8859-1&q=Poltical
%20Impact%20in%20buisness
%20enviornment&sa=Search#1268
12.http://books.google.co.in/books?
spell=1&q=salim+sheikh+buisness+enviornment&btn
G=Search+Books

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