India Mining Report Q4 2017

India Mining Report Q4 2017

BMI View:

India's mining sector will experience solid growth, primarily boosted by the country's positive reforms, vast mineral reserves and improving commodity prices. Despite this, the sector will continue to face challenges due to the country's inadequate operating environment and mining royalties, which will prevent India from reaching its full growth potential.

Latest Developments & Structural Trends


Coal producers and consumers will be the biggest beneficiaries of the new GST system rolled out in July 2017. Prior to the implementation of the GST, coal was taxed at a rate of 11.7% in total (state VAT plus central excise duty). The new GST system places coal under the 5% tax bracket, helping Coal India (accountable for 80% of domestic coal production) clear its 62mnt of stockpile that were unsold due to high prices. The lower tax of 5% will also aid the poor who consume coal-fired electricity as the cost is usually transferred to consumers. Additionally, lower prices of domestic coal will lure power producers away from imports. Coal producers and consumers will also benefit from lower transport service taxes.

From a previous rate of 15%, the GST rate on transportation services through rail has been reduced to 5%.

BMI Industry View
Table: India - Mining Industry Value Forecast
Latest Developments & Structural Trends
Industry Forecast
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Latest Developments
Table: Bauxite Production Forecast (India 2017-2026)
Table: India - Bauxite Projects
Structural Trends
Iron Ore: 2017 Price Boost To Support Industry
Latest Developments
Table: Iron Ore Production Forecast (India 2017-2026)
Table: India - Selected Iron Ore Projects
Structural Trends
Zinc: Strong Growth Ahead
Latest Developments
Table: Zinc Production Forecast (India 2017-2026)
Table: India - Select Zinc Mining Projects
Structural Trends
Coal: Slowing Growth Ahead
Latest Developments
Table: Coal Production Forecast (India 2012-2021)
Table: India - Select Coal Mine Projects
Structural Trends
Industry Risk Reward Ratings
Asia - Asia Mining: Investors To Remain Attracted To Regions High Rewards
Main Regional Features & Latest Updates
India Risk/Reward Index
Regulatory Development
Trade & Investment Risk Analysis
Commodities Forecast
Commodities Performance And Forecasts
Table: BMI Commodities Views
Table: Select Commodities - Performance & BMI Forecasts
Competitive Landscape
Table: India - Select Listed Mining Companies
Company Profile
Coal India Ltd (CIL)
Table: Coal India Ltd - Key Financial Data
Hindustan Copper
Table: Hindustan Copper - Key Financial Data
Table: NMDC - Key Financial Data
Vedanta Resources – Q4 2017
Table: Select Commodities - Price Forecasts
Latest Financial Results
Company Strategy
Table: Vedanta Resources - Key Financial Data
Regional Overview
Asia - Asia Mining: The Five Key Themes
China To Generate Volatility
Indonesia's Policy Uncertainty & Resource Nationalism To Deter Investors
Mongolia To Register Fastest Mining Industry Growth
Heightened Environmental Protection
Asia To Emerge As Capex Hotspot With Australia In The Lead
Table: Asia Mining Key Themes - Mid-Year Update
Industry Forecast Methodology

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