Best Mining Stocks to Invest in India

Mining in India is one of the most critical sectors; there are more than 3527 active mining leases across India for producing 40 major minerals which are used and exported by the country. 

We know over the years, the mineral resource sector is the one which is quite influential in the world’s economy and in human development as well. Besides this, if we look at India’s GDP, we can find the mining industry accumulating 2.5 percent of the country’s GDP. More than half a million people are employed in the mining industry of India. It also contributes to the economy of India via exports, royalties, dead rent, sales tax, and duties. 

In the latest course of events, India is doing tons of research and development to be able to extract minerals from its seabed. India has one of the biggest reserves of iron ore, bauxite, chromium, manganese ore, baryte, and some other rare mineral salts. As a result, for some, mining in India is the backbone of economic growth. Coals of particularly any rank occur in India with the exception of peat and anthracite. Over time India has started following conventional methods of systematic geological mapping, which is then followed by drilling to initiate the mining process. 

Best Mining Stocks in India

Overview of Top Mining Companies in India

Given below are the top 3 mining companies in India that are producing mining products and helping in the economic growth of the country. 

Ashapura Minechem Ltd

This is the flagship company that belongs to the Ashapura group, and it is also known as the most prominent mine owner and exporter of Bentonite. In addition to this, Ashapura is the sixth largest producer of Bentonite around the world. Currently, it has nearly 3500 acres of Bentonite mines and 5500 acres of Bauxite mines for their required production. Apart from mines, their activation milling and processing plants are spread in several locations throughout India. Lastly, it has the most extensive processing facility for Kaolin processing in Kerala, which has a capacity of 180000 tonnes. 

20 Microns Ltd.

When it comes to producing white minerals in India, 20 Microns is the biggest name in the country. Also, this company provides innovative products in the field of functional filler extenders along with specialty chemicals. The biggest trading asset of the company is calcium carbonate. The founders of 20 Microns were considered to be the pioneers of the Indian mining industry, and since the inception of the company, it has been present in the list of top 5 mining companies in India. 

For the next decade, the company is expecting to have rapid growth in the production of its existing products and the development of a few more products by adopting a particular set of strategies which will result in the expansion of its Mineral portfolio. Apart from this, the company is also working on expanding its horizons by investing in windmills to generate sustainable energy resources for its operations in areas that have higher access to winds. 

Coal India Ltd.

CIL is a Maharatna Public Sector Undertaking under the Ministry of Coal Government of India. The headquarters of the company is located in Kolkata, West Bengal. CIL is the single largest coal-producing coal company in the world. Also, it is one of the biggest corporate employers in the Indian mining sector. It has a total of 82 mining areas that are spread over eight different provincial states of India. Apart from this, the company owns a staggering 394 mines, of which 193 are underground, 177 are opencast, and the remaining 24 are mixed mines. The primary consumers of the CIL are the power and steel sectors of India. Most of the coal this company produces sells in the Indian market. Only the remaining part of it is exported out of the country. 

Future Of Mining In India

India has massive potential in the mining industry, but most of the minerals are present in areas that are entirely covered in forests. As a result, there is a constant debate about whether India should be mining or preserving its natural forests. 

This results in the government of India taking strict actions in the coming year to make mining more sustainable and environmentally friendly which is a bit of a challenging task. As of now, the current scenario of the mining industry is intense as the government is looking at the mining sector as a way to revive the economy after it was adversely hit by the pandemic in 2020. 

Wrapping Up

India promised to generate 175 GW of renewable power by the end of 2022 and over the course of the next decade. The country is aiming to achieve 350 GW of renewable power. All this push towards renewable resources does not mean India is lagging behind in terms of coal mining. Still, it is too early in the decade to say anything about how mining stocks are going to perform.  

These stocks are quite volatile, and they are dependent on various terms and conditions which are implemented by the government. So, it is hard to recommend anyone to invest their money in these stocks at present and even in the future as well. 

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.