Indian state heads demand say in mining laws

The heads of a number Indian states are demanding a greater say in the country’s mining laws.

They are lobbying the prime minister and arguing that foreign operators must not be allowed to seize control of the country’s natural resources.

Exploration for mineral wealth in India is hampered by bureaucratic delays and it is estimated that only 10% of the sub-continent’s land mass has been explored for its mineral wealth.

However, ArcelorMittal and POSCO, the South Korean mining group, are among a number of companies seeking to begin or expand operations in India, and the government is exploring ways to attract foreign investment for prospecting and mining.

This has prompted the chief ministers of the states of Orissa, Jharkhand, Madhya Pradesh, Chhattisgarh and Rajasthan to campaign on behalf of their communities, pointing out that: “It is an irony that the mineral-rich states are the poorest states of the country.”

They want 5% of profits from mining to be set aside for social and economic development and are also arguing that any new mining policy should phase out exports.

India is estimated to contain 10% of the world reserves of bauxite, the raw material for aluminium.

Experts also believe it is home to extensive reserves of base metals such as copper and zinc.