November 21, 2008
FDI policy for mining of titanium bearing minerals & ores
India has large reserves of beach sand minerals in the coastal stretches. Titanium bearing minerals like ilmenite, rutile and leucoxene and zirconium bearing minerals including zircon are some of the beach sand minerals which have been classified as prescribed substances under the Atomic Energy Act 1962.
Under the Industrial Policy Statement 1991, mining and production of minerals classified as prescribed substances and specified in the Schedule to the Atomic Energy Order, 1953 were included in the list of industries reserved for the public sector. Vide Government of India Resolution No. 8/1(1)/97-PSU/1422 dated October 6th 1998 issued by the department of atomic energy laying down the policy for exploitation of beach sand minerals, private participation including foreign direct investment, was permitted in mining and production of titanium ores and zirconium minerals. FDI up to 74% was permitted with prior approval of the government in pure value addition projects without mining and mineral separation as well as integrated projects comprising both mining & mineral separation and value addition.
Vide government of India notification No. S.O.61 (E) dated January 18th 2006, department of atomic energy re notified the list of prescribed substances under the Atomic Energy Act 1962. Titanium bearing ores and concentrates and zirconium, its alloys and compounds and minerals concentrates including zircon, were removed from the list of prescribed substances.
On a review of the extant policy on FDI, government of India has now decided as under:
1) FDI up to 100% will be allowed with prior government approval in mining and mineral separation of titanium bearing minerals & ores, its value addition and integrated activities subject to sectoral regulations and the Mines & Minerals Development and Regulation Act 1957.
2) FDI for separation of titanium bearing minerals & ores will be subject to the following additional conditions
3) FDI will not be allowed in mining of prescribed substances listed in the Government of India Notification No. S.O. 61 (E) dated January 18th 2006 issued by the department of atomic energy.
4) FDI Policy announced vide annex to press note 4(2006) dated February 10th 2006 stands modified to the above extent.
