Page 28 - Insurance Times September 2021

Recent crisis in Middle East and West Asian countries are Y Politicians might create a conflict as they look down on
affecting our export as the presence of military and non- this industry
military vessels around the Strait of Hormuz threatens the
Y Strict environment rules
vessels carrying goods which lead to loss in the trade. Many
minerals are exported from India and all those when do not Major Players:
find any market gets flooded in the domestic market leading
to price drop. Y National Mineral Development Corporation
Y Vedanta
International behaviour of any state is linked to its
Y Hindustan Zinc
geography, history or culture. However, now it also depends
on the political system of the states involved. We need to Y Hindustan Copper
be little aware and diplomatically straight with an honest
Y Hindalco Industries
approach to solve such issues to have a long bilateral or
Y National Aluminium Company
multilateral ties with nations around. Also, we have many
industries that are tying up with foreign countries for mineral Y Bharat Aluminium Company
exploration. Example: Adani Enterprises ties up with
Y Rajasthan State Mines and Minerals
Carmichael coal mine project in Australia.
Y Gujarat Mineral Development Corporation
Swot Analysis:
Case Study - Rathole Mining:
Strengths:
Coal reserves are especially found in the Eastern states of
Y Rich and large mineral deposits in India India - Jharkhand, Chhattisgarh, Odisha, West Bengal etc.
Y Easy availability of labours and predominantly on the North Eastern states of Assam
Y Low wage of labours and Meghalaya. Here, mining is not much commercialised
due to the difficult terrain in the North Eastern states. Also,
Y Strategic locations
coal found in these reserves contain lots of Sulphur which
Y High demand of minerals
lowers its energy efficiency.
Weakness:
Y Outdated Mining technology A rat-hole mine is a type which involves digging of mines
that are very small in nature similar to ones dug like rats.
Y Poor infrastructure facility Hence, the name was given during the colonial times,
Y Few innovations Sistema del rato. They are usually, 3 to 4 feet deep, in which

Y Unskilled labours workers (mostly children) enter and extract coal. It is done
mainly by the community or some families. Mainly done in
Y Accidents are high
the Indian state of Meghalaya. It is broadly of two types -
Y Hardly any Research and Development in the sector side cutting and box cutting.

Opportunities: As we known the coal extracted are of bad quality, but lack
Y India has large deposits unexplored of employment, loss of livelihood, backwardness in the region
Y Contract mining and under education makes the people to see these mines
as a treasure and by extracting these coal they can earn
Y Information technology solutions in changing world
their daily bread. Rich people employ such poverty ridden
Y Equipment procurement with maintenance and repairs people for the extraction, mostly children are employed
Y Opportunity in research and development because of their thin body and shape. This practice of mining
has become very popular in Meghalaya. Since, it is an illegal
Y Public Private Partnerships can become more feasible
practice, it is done behind closed doors and companies fear
Y Outbound investment options investing in this sector.

Threats: In the year 2014, National Green Tribunal (NGT) banned the
Y Field Encroachment by rivals rat hole mining since it is unsafe and unscientific for workers.

28 The Insurance Times, September 2021