Minerals Exploration Business Reforms In India

By Author: Michael Jin
Total Articles: 10
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Major mining countries such as Canada, Australia and the US have successfully used tax policy initiatives to attract investors in mineral exploration business.
As taxation reforms are under way in India, it is an opportunity for us to reform the minerals taxation system to include incentives/concessions to undertake exploration. The government should be investing in the development of the mining sector to expand the tax base, which creates a sustainable revenue stream for its fiscal system in the longer term.
India is the only mining country, which does not allow the entire expenditure incurred on exploration and allows only that exploration expenditure, which is incurred four years prior to the year of commercial production. Considering an exploration period, including the mine construction period of approximately 8-10 years, such a restriction needs to be removed immediately. Currently, even the expenditure incurred in the last four years is allowed as a deduction by spreading it over a period of 10 years. The advanced mining economies give an option to the tax payer to claim it in the first year of production. ...
... Such an option is given to the oil and gas industry as well under production sharing contracts,pulverizer in India (pulverizer in India ).
A potential approach should include building in incentives via offsets for miners to construct water, energy or social infrastructure, which is not only vital to the business, but also provides benefits to the community,cement ball mill process,cement ball mill (cement ball mill process).

The Government of India can also consider the launch of exploration bonds in lines of infrastructure bonds to create a central cash reserve, which can only be used for mining exploration in the country. All new companies or JVs formed in the exploration sector should be given some relaxation to get listed on the country's stock exchanges. This will have mutual benefits for both the investor as well as the exploration companies. For example, if an exploration firm wants to sell its license and exploration data to some other company in profit,mica processing line,mica ore
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As mining goes into new frontiers, farther and deeper, it is imperative to secure water, energy, technology inputs and build transportation and other infrastructure to get the minerals to market economically. This should influence the forging of alliances between miners, infrastructure players, technology and equipment suppliers and financiers (including infrastructure financing) for bringing the mining project to success and optimize risk-reward equations for all partners,limestone Mining Equipments in India,limestone (limestone mining equipments in India).

There is a perceptible wave of resource nationalism across developed and emerging countries worldwide. In the face of deficits, continuing boom in commodity prices has induced many governments to target the mining and metals sector for increasing their revenues. This has taken many forms. We recommend stakeholders in India should try and maximize value from natural resources by using regimes, which are predictable, prospective and sustainable in the long term. Policy frameworks, solely tailored to leading class deposits, may not help develop marginal deposits.
On the other hand, this may present an opportunity for India to keep its policy on mining relatively competitive, amid this environment, such that its mining sector attracts differentially higher interest from global investors.