TORONTO (Commodity Online): The world is eyeing India’s minerals at the global mining conference being held in Canada.
At the meet, several firms have expressed their desire to enter the Indian mining sector and as part of this Ontario province has signed a memorandum of understanding (MoU) with New Delhi to exploit India’s mineral wealth.
Canada is the world leader in mining with cutting-edge technology in mining development, exploration and safety. More than 60 per cent of the world’s mining companies are listed on the Toronto Stock Exchange.
Under the agreement, Canada, a one-stop shop in mining, will invest and provide know-how and equipment for mining in India.
The MoU will benefit India from the first to the last stage of its mineral development. Global mining companies are waiting for India to legislate its new mineral policy. India has been refining its mining laws. The new policy will be tabled in Parliament in March, and is likely to become law by the end of the year. It will bring global mining players into India with their investment, know-how and technology.
Apart from seven states governments and the Federation of Indian Mineral Industries, major Indian mining companies, including Hindustan Copper, Rio Tinto (India), National Mineral Development Corp and Anglo American, are participating in the global gathering.
About 300 major mining companies from around the world are taking part in the conference which ends Wednesday.
Spirits are very high at the Prospectors and Developers Association of Canada conference as experts offer up generally bullish views on commodity markets for the year ahead.
Their research inevitably comes back to China, where demand has been phenomenal over the past 12 months. Last year’s PDAC conference took place at the absolute bottom of an extreme bear market, and the mood at the conference was more muted. There were even a few empty booths. While there are continuing concerns about high metal inventories and sluggish demand in the West, those points are taking a back seat to China.
The bullish sentiment at the conference is bolstered by reports that BHP Billiton Ltd., the world’s biggest mining company, has settled a three-month coking coal contract with Japanese steelmakers at $200 US a tonne, up 55 per cent from 2009 prices. That settlement, which provides a benchmark for the rest of the industry, is viewed as proof that Asian demand for bulk commodities remains strong.
The PDAC conference is primarily the realm of junior mining companies, which were hit hard by the commodity meltdown in 2008. At this time last year, they were hoarding their cash and just trying to survive. Now, many of their projects are back in the limelight.
Source: commodityonline