KOLKATA (miningweekly.com) - Australian miners were rushing for opportunities in Indonesia and Africa, but were hesitant to back India’s resource projects owing to country risk, Australian trade adviser Melissa Carter said.

Speaking on the eve of the International Mining and Machinery Exhibition, in Kolkata, organised by the Confederation of Indian Industry, Carter said that India offered vast opportunities in the mining sector both in mineral extraction and technology transfer. However, she noted that overseas companies were awaiting policy changes that would mitigate the country risks associated with investments in the country.

Australian Trade Commissioner Tom Calder noted that Australian firms remained bullish on the opportunities that would be delivered by the Coal Mines (Special Provisions) Ordinance.

The legislative changes were ushered in, in the wake of a Supreme Court order cancelling mining licences for 214 coal blocks allocated to various companies since 1993. The new coal legislation would offer greater flexibility to captive coal miners and also offer private miners opportunity to mine coal, so far the exclusive domain of government-owned and -managed companies under the Coal Nationalisation Act 1973.

Under the ordinance, government-owned companies, either corporations or joint ventures (JVs) between Indian companies and overseas entities registered in India, could participate in the forthcoming auctions of coal blocks for their own consumption or merchant sales.

Calder said that mine planning, surveys, technology transfers, waste management and community engagements were some of the areas where Australian companies could share their expertise with their Indian counterparts.

He said that at the initial stage of India’s reform of the mining sector, the natural entry for Australian companies would have to be through JVs with Indian companies wherein the latter would retain ownership of the resources while Australian partners would focus on exploration and development of resource blocks.

About 350 Australian companies in mining and allied sectors would enter India over the next year seeking JVs with their Indian counterparts, Calder said.

India and Australia had already established government-to-government joint working groups for discussions on resource and energy development initiatives and such cooperations would need to be strengthened further and more areas of joint cooperation identified, Calder said.