Mining, Quarrying, Mineral and Ore Processing, Coal, Iron Ore, Limestone, Chromite and Granite Mining

India is home to a myriad of metals and minerals. Globally, the country is the largest producer of sheet mica, the third largest producer of coal, the fourth largest producer of iron ore and the fifth largest producer of bauxite. Besides these natural resources, India also hosts significant reserves of copper, zinc, gold and about 26 other metallic and minor minerals. The Indian mining sector is largely state-dominated, but the government is now seeking a phased withdrawal of its participation from the non-strategic metal sector in order to encourage private players to take the centre stage.

The vast bulk of our built environment is formed from raw materials won from the earth by the extractive industries.  Without the raw materials with which to build houses, hospitals, schools, factories, roads, etc., life would certainly be more basic and less comfortable than we presently experience. Quarrying or mining is an important practice in India. A quarry is a type of open surface working from which virgin rock or minerals are extracted, each quarry is very different and will use different types of quarry equipment. The design and general running operation of a quarry depends on the type of rock being extracted, the general environment surrounding the quarry, the size of the quarry and the geography and geology of the general area.Drilling and blasting are two important parts of the quarrying process. Marble, granite, sandstone, gravel, limestone etc are all quarried. Stone quarrying is the multistage process by which rock is extracted from the ground and crushed to produce aggregate, which is then screened into the sizes required for immediate use, or for further processing.

Mineral processingis the practice of beneficiating valuable minerals from their ores. Industrial mineral treatment processes usually combine a number of unit operations in order to liberate and separate minerals by exploiting the differences in physical properties of the different minerals that make up an ore. Mineral processing involves four general types of operations: comminution or particle size reduction, sizing or separation of particle sizes by screening or classification, concentration by taking advantage of physical and surface chemical properties, and dewatering or solid/liquid separation. Ore processingis generally crushing and separating ore into valuable substances or waste by any of a variety of techniques. The processing of the ore is often just as challenging and expensive, which takes place in refineries, smelters and mills.

India’s mining sector will continue to post impressive over the forecast period driven by strong domestic demand. The long-term prospects of the sector like that of the Indian economy remain very positive. However, in 2009 growth in US dollar terms stood at just 1.6%, while growth in 2009 is expected to be negligible as the global economic crisis impacts exports in key sectors such as iron ore, bauxite and copper. The market should return to strength in 2010, and by 2013, it is forecast by analyst that the mining industry will reach a total value of US$45.40billion. In April 2009, it was reported by Bloomberg that Indian iron ore exports would drop by at least 25% in the fiscal year, after competitors began offering major price discounts.

India has one of the largest reserves ofgranite in the world and exported Rs 2,600 crore (Rs 26 billion) worth of thestone last year. Granite exports this fiscal are expected to touch Rs 2,800 crore (Rs 28 billion) and nearly one-fourth of these exports is accounted for by monument stones.

Indian granite exports have declined 33 per cent between 2006-07 and 2008-09. The sector, which relies heavily on American and European demand, was among the first to feel the heat of the sub-prime crisis. Its export revenues fell steeply in 2007-08, even before there were visible signs of a slowdown in Indian housing and industry.

According to data provided by CAPEXIL, the value of granite export from India was Rs 2,738 crore in 2008-09, compared with Rs 4,086 crore in 2006-07. In 2007-08, the export value stood at Rs 3,367 crore. In terms of volume, the country exported 30 lakh tonnes of granite in 2008-09, compared with 31 lakh tonnes in 2006-07. In 2007-08, it was 34.12 lakh tonnes. Unlike the trend with respect to values, volumes actually rose in 2007-08, but fell below 2006-07 levels in 2008-09.

What perhaps explains the increase in volumes in 2007-08 is that polished granite, which commands a better price, was substituted by semi-finished blocks. Yet, prices in the latter category remained unattractive, reflecting the severity of the recession. Volumes increased by 10.2 per cent in 2007-08 over the previous year, while revenue earned from exports decreased by 17.6 per cent this year. The decline in export earnings and volumes was more pronounced in 2008-09. Export fell 18.7 per cent in value terms, while volumes were down 12.1 per cent. Exports revenue largely remained flat at Rs 1478.95 crore in 2009, compared with RS 1479.44 crore in 2008. In 2007, it was Rs 1703.37 crore. Granite accounts for 10 per cent of India’s minerals’ output. Over the last three decades the Indian granite industry has modernized to global standards. Sculptures and monuments made in India are being exported all over the world.

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Coal Mining

Coal is an extremely heterogeneous, complex material that is difficult to characterize. Coal is a rock formed by geological process and is composed of a number of distinct organic entities (macerals) and lesser amounts of inorganic substances (minerals). Each of the coal macerals and minerals has a unique set of physical and chemical properties, there in turn control the overall behavior of coal. Although much is known about the properties of minerals in coal, for example, the crystal chemistry, crystallography, and magnetic and electrical properties, surprisingly little is known about the properties of individual coal macerals. Even though coal is composed of macerals and minerals, it is not a uniform mixture of these substances. Users of coal - In the iron ore extraction plant, Domestic users as fuel sources, different industries using coal fired boiler. The demand of coal mining is increasing. So there exist a great scope for new entrepreneurs to enter in to this field.
Plant capacity: 1350 Lakh MT/Annum (Job Work)Plant & machinery: 752 Crores
Working capital: -T.C.I: 972 Crores
Return: 41.00%Break even: 42.00%
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Iron Ore Mining

Iron is an Anglo-Saxon Word : the symbol Fe, comes from latin ferrum. The use of iron has been known since the earliest times; it was prepared by the so-called bloomery hearth, or Catalan Forge. Iron ores were heated in a shallow trench with a large excess of wood charcoal, fanned by bellows. Lumps (blooms) of wrought iron were obtained, and were welded together by hammering. As technology advanced during the middle ages, the trench was replaced by small shaft furnace, and from this present day blast furnance has developed. Iron is the cheapest and most widely used metal. Its annual production exceed by for that of all other metals combined. It comprises approximately 93% of the tonnage of all the metals used. India is the only country in the world possessing huge recoverable reserve of iron ore to the tune of 13,400 million tons with average Fe content of 63%. Hence, the global steel industry is eyeing India in order to meet the iron ore requirements for steel production. New entrepreneurs venture in to this field will be successful.
Plant capacity: 139 Lakh MT/AnnumPlant & machinery: 1030 Lakhs
Working capital: -T.C.I: 1163 Lakhs(Cost of Project)
Return: 37.00%Break even: 38.00%
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Crushed Stone

Crushing of stone is physical process applied over the available natural stone to reduce size. Crushed stone should be hard enough to withstand heavy load or should not react with acid or alkali it is used in road construction, civil construction as supporting material in railway tracks etc. Due to rapid urbanization or industrial development demand for crushed stone is increasing rapidly. There is good scope for new entrepreneurs who wants to set up their own stone crushing unit.
Plant capacity: 150.00 Tonnes/day Plant & machinery: Rs. 80 Lakhs
Working capital: -T.C.I: Rs. 190 Lakhs
Return: 61.00%Break even: 45.00%
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Magnesium Metal

Magnesium is a very light, silver white metal, moderately hard and alkaline earth metal. It is strong reducing agent and has electrical conductivity similar to aluminium. It is the central element of the chlorophyll molecule and also an important component of red blood corpulses. It is prepared by the process of reduction of Dolomite in the presence of ferrosilicon. It is used, as aluminium alloys for strectural parts, die cast auto parts, missiles and space vehicles. It is also used as powder for pyrotechnics and flash photography, production of iron, nickel etc. and desulfurizing iron in steal manufacture; precision instruments, optical mirror; dry and wet batteries. As there is large use of magnesium in steel and other industries. It can be predicted that there will be estimated demand growth of magnesium 10% per annum. There is a good scope for new entrepreneurs.
Plant capacity: 10,000MT/Annum Plant & machinery: Rs. 298 Lakhs
Working capital: -T.C.I: cost of project Rs. 937 Lakhs
Return: 39.00%Break even: 63.00%
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Low Carbon Ferro Manganese

Low carbon ferro manganese is made by reaction of silicon present in silicon manganese or low carbon manganese with manganese ore and lime. These cannot be produced directly from manganese ore and carbon due to co-smelting of gangue constituents. Their carbon contents ranges from 0.1% to 1.5%. These are required where carbon control in steel is strictly necessary. These are also used for the purpose of allowing and deoxidation and as cleaning agent. Their total indigenous production is above 50%. India is also exporting these ferro manganese to various countries like Germany, France etc. So, there is a good scope for new entrants.
Plant capacity: 50.00 MT/day Plant & machinery: Rs. 120 Lacs
Working capital: -T.C.I: Rs. 1300 Lacs
Return: 75.00%Break even: 34.00%
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CLAY AND SAND BRICKS PLANT (LIGHT WEIGHT)

Perforated bricks are light in weight and provide better thermal insulation as compared to common bricks. Now in India there is a very good growth of construction industry and also in rapid organization as well as commercialization and industrialization. For these purposes there is huge requirement of bricks and light bricks. Lot of Mall and Hotels are coming up. Based on the growth of constructions, it can be predicted that there is very good scope for the building material industries light bricks. New entrepreneurs can venture into the production of clay and sand bricks.
Plant capacity: 60 Lakhs Bricks /AnnumPlant & machinery: 27 Lakhs
Working capital: -T.C.I: 135 Lakhs
Return: 41.00%Break even: 39.00%
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PIG IRON

Today we find iron and steels of so many types and their products so wide spread all around, that it is hard to think if the world could progress any better without iron and steel. Pig iron is the main product of a blast furnace. Pig iron is a raw material for all the iron and steel based industries, and hence, required to be responsive to the requirements of pig iron users. The pig iron is main raw material for all the steel rolling mills, mini steel plants, steel and cast iron foundries etc. So with the increasing demand and production of steel products, demand of pig iron will increase automatically.
Plant capacity: 10 Lakhs MT/DayPlant & machinery: 38 Crores
Working capital: -T.C.I: 388 Crores
Return: 48.00%Break even: 29.00%
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PRECIPITATED CALCIUM CARBONATE

Calcium compounds such as calcium carbonate, calcium phosphate, calcium Sulphate are widely distributed in nature. Calcium carbonate forms major constituents of the earth is crust and occurs as massive beds of limestone, chalk and marble. It is found as dolomite in which part of the calcium is replaced by magnesium. Precipitated calcium carbonate is produced in a number of different grades which range is particle size from 9.03 to 15 micron. It is widely used in the manufacture of toothpaste and powder, in rubber, plastics, paper, cosmetics, pharmaceuticals and cement industries. Due to its wide use and growth of end user industries precipitated calcium carbonate has good demand in future.
Plant capacity: 120000 MT/AnnumPlant & machinery: 871 Lakhs
Working capital: -T.C.I: 1482 Lakhs
Return: 45.00%Break even: 57.00%
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Litharge (Yellow Lead Oxide Barton Pot Process)

Most lead compounds are derived from pig lead (refined metal), usually via conversion to lead monoxide, commonly known as litharge. In general, lead compounds may be formed by the reaction of litharge and the appropriate acid, by the reaction of a solution of a lead salt with an acid or by fusion of litharge with the appropriate metal oxide. There are few in organised sector (3units) and some in private sectors (8 units) are engaged in the manufacturing of yellow lead monoxide along with other lead acetate, lead stearate etc. Since, there is good demand of pigments and paints, having annual growth about 10%, the demand of yellow pigment lead oxide (litharge) will increase in the same pace. There is good scope of starting this project for new entrepreneurs.
Plant capacity: 6000 MT/AnnumPlant & machinery: 69 Lakhs
Working capital: -T.C.I: 230 Lakhs
Return: 66.00%Break even: 41.00%
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FERRO ALLOYS OF NIOBIUM, MOLYBDENUM, TITANIUM, TUNGSTEN AND VANADIUM

Ferro Alloys are the principal alloying agents in iron and steel production. Addition of ferro alloys improves mechanical and physical properties of iron and steel products such as strength, toughness, hardness and corrosion-resistance etc. Most of the ferro alloys contain less than 50% of iron content. The use of highly flexible furnaces make it possible to produce a range of ferro alloy compositions. Ferro alloys are employed in metallurgy for finishing carbon steels, for producing alloy steels and special steels with improved physical and mechanical properties. The demand for ferro alloys has been increasing with that of alloy and special steels. It is expected to reach the level of 1.20 m tonnes by 2006-07. The industry has tied up with companies in Europe for technology inputs. The major users of alloy steel are: auto industry, railways, forgings, tubes, springs and other engineering industries. So, there is good future for existing as well as new entrepreneurs.
Plant capacity: 5 MT/DayPlant & machinery: Rs. 2 crores
Working capital: -T.C.I: Rs. 5 crores
Return: 50.00%Break even: 41.00%
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  • One Lac / Lakh / Lakhs is equivalent to one hundred thousand (100,000)
  • One Crore is equivalent to ten million (10,000,000)
  • T.C.I is Total Capital Investment
  • We can modify the project capacity and project cost as per your requirement.
  • We can also prepare project report on any subject as per your requirement.
  • Caution: The project's cost, capacity and return are subject to change without any notice. Future projects may have different values of project cost, capacity or return.

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