Q. What has been the role
played by Geovale in the
overall growth of the mining
and geological segment in
India through i...
of 1

Prevailing Market Condition in Mining Industry

The interview covers some vital areas on prevailing market condition in mining sector in India and abroad, forecast of the likely changes and how Geovale Services has been operating to run over the waves and derive opportunities through the evolving changes.
Published on: Mar 4, 2016
Published in: Business      

Transcripts - Prevailing Market Condition in Mining Industry

  • 1. Q. What has been the role played by Geovale in the overall growth of the mining and geological segment in India through its project management services? Ans. During the last 4 5 years Indian mining industry has undergone waves of changes. Starting from the blanket ban of iron ore mining in lslarnataka in 21) I0 to changes in MMDR Act to auctioning of coal blocks and latest government notification of auctioning of other mineral resources, the mining and geological segment in India have witne ‘ed many legislative changes. This has not onl_v strengthened Indian mining industry but also opened up various opportunities to further development of the industry. Geovale Services has uniquely placed itself to offer comprehensive end-to-end solutions for gcological and mining related actiitics. ‘('c are also a sociiited with Thrivcni Fxarthniovers who are one of the largest . l1)( ) service providers in India. From grass-root exploration to mine closure, our expertise in project management, mine identification, mineral resource and reserve e. tnation, technical report writing, due diligence reviews, valuations and market analysis has distinguished Geovale from most of its industry competitors. At all levels of our services, we cinphtisizc the importance of techno-commercial implications to maximize the effectiveness of client's investment. Geoi-‘ale is associated with world class service providers and thus implcmcnts cutting~cdgt> technology rmd bcst operating practice ‘ for improving productiv Ity with a lower cost. As it member of various government and industry bodies for promoting mining like l"IM. l, FICCI and C11, the rrieiribers of Gcovalc have been providing thoughtful inputs and important deliberations through discussions and paper presentations to overcome the challenges in Indian mining environment and propose the policy makers to formulate progrt sivc rules for the changes in the minerals code, mitigating the risks on these changes, future direction of changes towards exploration standards and reporting standards. Geovale has been working closely vith international government bodies like Austr-tide or Polish High (Iornniission to attract potential investors in India to help our clients to in in Indian and intcrnational assets, in R and D, due diligence and risk analysis. On the other hand, Thriveni has been doing a remarkable job in augmenting the mineral supply particularly in the key minerals like iron ore, coal and aggregates, Iris managing about 40 Mrpa iron ore production with its technologically advanced mining systems. How -vcr, the best part from Thriveni is coming in terms of it relentless and unparalleled efforts in CSR and environment management. Its commendable contributions in uplifting human quality and building social infrastructure have been applauded by several prestigious awards. Q. Of the vast number of unique projects executed by Geovale which was the most challenging till date and how did the efficient team of Geovale execute the same? Every single project is unique and challenging. V'e can however, highlight our role as it competent person (team) for one of the shareholders in an integrated gold exploration project in Southern India. The current project objective includes integrated geological exploration for resource modelling, mine planning and creation of project design. (icovale has set up a team of highly skilled geological — structural geologists who understand specific controls of mineralisation in a greenstonc belt. A drilling unit being managed by (icovalc is carrying out diamond core drilling and oriented samples, from which structural datascts could be collected for correctly interpreting mineralisation controls. While (Seovale's in- house team of Resource (Ecology will review the Geological Resource model, (Vic-ovale's highly experienced team of mine planncrs and project planners will review the open pit and underground mine design and projectplan Among other critical projects, wc can highlight the follov1'ngoncs: a) Integrated gemstone exploration project in Fzasrern India b) Manganese exploration and duc diligence for large Indian company in 7.imbabwe. c) Rapid due diligence and exploration of about 1ll(), (l(l(l sq km area around NCR to identify greenfield high quality aggregate (and manufactured sand) resource — the integrated exploration included remote sensing, geological structural study, assessnient of existing aggregate prtipcrties, llIIl'a8tl'llIttlll'lI llllll Vol.6 0 Issue3 0 September 2015 in an interview to Irlrlflllh gcomorphological, carlastral, land-use and exis jng tenement information on desktop and on ground. cl) Evaluation of coal blocks for bidding. For more information about our projects and capabilities please logon t() . Q. What is the prevailing market condition for your sector and what are your forecasts for the same? Ans. Gcovale Services, as a consultant to the global mining and geological industry, works closely with the com anies who want to acquire, evelop or operate mineral assets both domestically as well as internationally. liollowing the Global Financial Crisis and subsequent slowdown in the Chinese economy, [l‘lt' overall mining sector has been facing challenges ranging from financial crunch, slow movement of projects, fall in cxploraiion and dcvclopmctit txpcnditurc in rninin , scvct cost control, job loss to closure of mining operations. The global mining giants had been pushing to add volume to the already oversupplicd commodity market to maintain their market sliarc which caused commodity prices to come down to rock bottom level. However, the brutal strategy has started backliring them in terms of stjueezing margins, quick erosion o market capitalization and attracting government's wrath. As a rcs ilt they arc ultimately contemplating to go slow in the expansion plans. Htnvevcr, (icovalc believes that it will take longer than expected time to recover the mining industry from its low. Most of the investments in resource sector were made during the boom period with the expectation that China will continue to grow a double digit rate at I t for itnother 15.20 years. China strategy to change itself from an investment led economy to consumption driven economy has reduced its growth rate. As many of the mining expansion plans are nearing completion the dcmand—suppIy mismatch is likely to stay here at least for another two to four years. However, this gives an opportunity to the h rich companies for acquiring good quality mining assets. We feel market to face a consolidation phase tlicrcaftcr before it moves upagalri. In India, the situation is a bit different. The government of India is auctioning the mineral assets to the user industries. It has already started auctioning coal blocks and formulated rules for auctioning other minerals like iron ore, bauxite, limestone etc. This will provide immense impetus to the requirement of consultancy related services. As many of the mines are tinder- explored, there will be huge requirement for exploration, drilling, resource modelling, mine planning and valuation related jobs. Also there is huge requirement for cxploration spending, resource reconciliation and optimization of mining methods. (ieovale with its experienced and expert consultants and cost-effective eflicicnt processes is ready to serve to the user industry for any kind of mining and geology related job. Q. What is Geovales cutting edge over its competitors in terms of its services in order to sustain in the Indian market for a consistent period? Ans. (ieovale e. s in the entire value spectrum — exploration to prefcasibility to project design and planning. Gcovalc with its team of Mining Engineers and Geologists has [l’iL‘ expertise to provide a full range of services for any type of exploration program, resource estimation, preparation of geological reports, minc planning and mineral economics. Some of the best known brains in the industry — from commodity specialisation to geography ipecialisation to domain speci isation work with us. Our team prepares geological and mining documents and follows standard national 8: international reporting guidelines (l. 'Nl’C, _]()RC, NI 43»l(l1, . I()C ctc). Gcovalc's busin ‘‘ analysts have vast experience in financial Modelling, strategic advice, technical audits and due diligence. follow a systematic process, ensuring all key aspects of the exploration and investment ()j’ip0l'[llI"ll[_‘. Ar Geovale, we envision the ‘big picture’ and the ultimate objectives ofthe client when solving problems, generating ideas and conceptualizing project milcstnncs. Our invdepth asse sments pay close attention to details while maintaining a holistic understanding of the scope of each project we undertake. Our consultants, with more than twenty years of field and project management expertise, ave been involved in multi- conimodities exploration located in all corners of thc planct. ()u. r team has worked in tbc remote parts of Africa and Australia, highlands of South America and thc Himala_ is, ice-covered regions of the Canadian and Scandinavian Arctic, the deserts of Australia, Sahara and the Kalahari and the fresh water lakes of Scandinavia and North America. Geovale has collaboration with Thriveni Earthmovers which is one of the leading MD()s (Miric Developer and Operator) in India to provide mining infrastructure and operation related services. This association enables us to provide 2| com rehensive service range from p anning to development to operation of amine. Gcovale also has collaboration with domestic and international individual and institutional associates — in exploration with geophysical companies like lndigeo, with gcoclicmical companies like Shiva Labs and Inspectorate (iriffitli, in Project Management with Enthalpy, in mining with 'l"hn'veni and Golding. Q. Can you share with us your success story and other strategic growth plans for the future? Ans. Geovalc has been rapidly growing and venturing into domains. In short span of tiinc it has workcd with sornc of the large companies in India like GMR, Lanco, jS‘(' Group, Tata Power etc. to implement the projects successfully. We have dealt with wide range of commoclitics like gold, coal, iron ore, manganese, gcrristoric, copper, aggregates, bauxite, mineral sand, limestone etc. in varied geographical locations and t_pe0I services. We have been working with the clients on long term value creation and our focus will be to satisfy clients’ all needs relating to mining and geology. Our relationship with client does not end just with the delivery of the project. We work on '(. ‘lients for life’ principle where we take care of any problems faced by our clients in the projects which we have delivered in the past. We are tlcvcloping and incubating some of the top Indian and global associatcs to expand our services to re ch greater number of client for addressing their critical rctjuircincnts. "e are fully committed to Indian mining industry and Indian clientele. ‘('e are now focussing on upcoming mineral block auctions. Also we are targeting the government companies and actively participating in the tenders floated by them.

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