FE Editorial : Open up coal market
The Financial Express: Dec 03 2012, 01:58 IST
surely private sector efficiencies can be brought in by allowing professional mining companies in? In 1980, India had 11.5 billion tonnes of iron ore reserves and Australia 15 billion; in 2005, India was 13.8 billion and Australia 40 billion. Not surprising when you consider that the $174 billion Australia had invested in mines in April 2011 was a 31% hike since October 2010. We’ve seen a similar hike in oil/gas reserves once ONGC/OIL’s monopoly was broken. In the case of diamonds where Australian firm Rio Tinto is prospecting in India, it’s interesting to note that, as compared to 12 kimberlites (rock formations in which diamonds may be present) discovered by various government organisations in India between 1980 and 2004, Rio Tinto has found 22 kimberlites between 2000 and 2003. What’s unclear is what is so strategic about coal that Coal India’s monopoly can’t be broken.
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