Sectoral News
Metals & Mining
India boasts significant mineral resources reserves producing a total of 86 minerals. Coal constitutes over 80 percent of all mining activities with a turnover projected around $30 billion by 2012. The Indian government-own mines contribute over 80 percent of the total production. Nevertheless, there is a strong trend in favor of private sector led mining. The mining sector has shown healthy growth over the past few years. The growth rate is likely to continue, given the projected shortfall in coal supply and the current emphasis to increase coal production. Estimated investment of $21 billion in opencast mining and $5 billion in underground mining will be required to attain the target production level by 2025. Although Indian firms manufacture mining equipment, U.S. firms will be in competition for providing high-end, higher size equipment and advanced technologies. Most of the global technology leaders are present in India as joint venture companies, or have set up their own manufacturing facilities or marketing companies. The power segment is the largest consumer of coal and the trend is expected to continue due to the sustained growth of power demand and the government's mission of Power for all by 2012.
Oil & Refinery
The outlook for the global refining and marketing sector has been upgraded to stable from negative. Though conditions will remain difficult, margins for the sectors will average “significantly higher” over the next 12 to 18 months. Distillate and gasoline inventories remain very high, though gasoline demand will be dogged by high unemployment, rising ethanol use, rising world refining capacity and the economic slowing in major economies. In the absence of clear-cut strong demand and margin momentum for gasoline, distillate and crude oil price differentials, stable outlook largely reflects that the mix of wider gasoline and distillate margins, and wider crude oil price differentials are seen, supported by firming demand from industrial and freight transport.
