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DAILY
CLASS NOTES
Geography

Lecture – 63
Minerals & Energy
(Part 2)
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Minerals & Energy (Part 2)

Mineral Resources:
 Mineral is defined as a naturally occurring substance having definite (fixed) composition.
 Minerals are found in the rocks (igneous, metamorphic, sedimentary), river valleys, oceans, arctic/antarctic,
glacier.
 It occurs naturally and is extracted by various processes.
 It is obtained in the form of ores. Example: Haematite is an ore of Iron, Bauxite is an ore of Aluminium.
 It is identified on the basis of density, hardness, chemical properties, colour.
 They are non-uniformly distributed across the globe but in a particular area, they are uniformly distributed.
Classification of Minerals:
On the Basis of their Types, Characteristics, Usage and Properties:
 Metallic Minerals:
 Ferrous: Iron, Manganese, Nickel, Cobalt
 Precious: Platinum, Gold, Silver
 Non-Ferrous: Bauxite, Lead, Tin, Copper
 Non-Metallic Minerals: Potash, Salt, Granite, Silica
 Energy Minerals: Coal, Petroleum, Natural Gas (Shale Gas, Liquified Natural Gas, Conventional Gas)
 Atomic Minerals: Uranium, Thorium, Monazite Sand
On the Basis of Mines and Minerals Development Act:
 Major Minerals: Iron, Petroleum
 Minor Minerals: Quartzite, Sand, Limestone Shell
Formation of Minerals:
 Found in the cracks, joints, crevices of rocks (igneous, metamorphic), boulders.
 They are found in sedimentary rocks where they are trapped in between layers.
 The accumulation, concentration and deposition of minerals happens. They are subjected to heat and
pressure for a long time. Example: Coal, Natural Gas, Petroleum.
 They are found in river valley floors due to deposition. Example: Gold, Platinum, Silver, Tin.
 They are formed due to the disintegration or breakdown of rocks. Example: Bauxite.
 They are formed in ocean floors. Example: Placer deposits are found in ocean shelves, Sulphur, Manganese,
Cobalt, Salt, Magnesium, Bromine, Polymetallic Nodules (PMN)
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Extraction of Minerals:
 Mining:
 Open cast mining: Digging and creating a large hole up
to 300m. Example: Coal, Iron, Manganese.
 Shaft mining: Digging beyond 300m. Example:
Diamond, Petroleum.
 Rat Hole mining: Small holes are created. It is
generally done in Meghalaya region.
 Drilling: Inserting shafts. Example: Ankleshwar in Gujarat,
Mumbai highway.
 Quarrying: Removal of the top layer. Example: Sand
mining.

Mineral Resources:

Ferrous Mineral:
Iron Ore:
 Basic mineral and the backbone of industrial development.
 India is endowed with fairly abundant resources of iron ore.
 India is rich in good quality iron ores.
 Magnetite is the finest iron ore with a very high iron content
of up to 70%.
 It has excellent magnetic qualities especially valuable in the
electric industry.
 Karnataka, Maharashtra region has a huge amount of iron reserves.
 Haematite ore is the most important industrial iron ore in terms of the quantity used, but has a slightly lower
iron content than magnetite. (50% - 60%)
 Major iron ore belts:
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 Odisha – Jharkhand belt

 Durg – Bastar – Chandrapur belt
 Bellary – Chitradurga – Chikmagalur – Tumkur belt
 Maharashtra – Goa belt

Manganese:

 It is mainly used in the manufacturing of steel and ferro-

manganese alloy.
 Nearly 10 kgs of Manganese is required to manufacture one ton of
steel.
 It is also used in manufacturing bleaching powder, insecticides
and paints.

Non-Ferrous Minerals:

Copper:

 India is critically deficient in the reserve and production of

copper.

 Being malleable, ductile and a good conductor, copper is mainly used in electrical cables, electronics
and chemical industries.

 The Balaghat mines in Madhya Pradesh, Khetri mines in Rajasthan and Singhbhum district of
Jharkhand are leading producers of Copper.
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Bauxite:
 Odisha is the largest Bauxite producing state in India with
34.97% of the country’s total production in 2009-10.
 Bauxite, a clay like substance, produces alumina and later
aluminum.
 Bauxite deposits are formed by the decomposition of a wide
variety of rocks rich in aluminum silicates.
 It combines the strength of metals such as iron, with extreme
lightness and also with good conductivity and great
malleability.
 Mainly found in the Amarkantak plateau, Maikal hills and the plateau region of Bilaspur-Katni.
Mica:
 Mica is a mineral made up of a series of plates or leaves. It
splits easily into thin sheets.
 These sheets can be so thin that a thousand can be layered
into a mica sheet a few centimeters high.
 Mica can be clear, black, green, red, yellow or brown.
 Excellent di-electric strength, low power loss factor,
insulating properties and resistance to high voltage.
 It is used in the electric and electronic industries.
 Mica deposits are found in the northern edge of the Chota
Nagpur plateau.
 Koderma Gaya – Hazaribagh belt of Jharkhand is the leading producer.
 In Rajasthan, the major mica producing area is around Ajmer.
 Nellore mica belt of Andhra Pradesh is also an important producer in the country.
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Non-Metallic Minerals:
Rock Minerals:
 Limestone is found in association with rocks composed of calcium
carbonates or calcium and magnesium carbonates.
 It is found in sedimentary rocks of most geological formations.
 Limestone is the basic raw material for the cement industry and
essential for smelting iron ore in the blast furnace.
Energy Resources:
Coal:
 Coal is the most abundantly available fossil fuel. It provides a
substantial part of the nation’s energy needs.
 Gondwana Coal: A little over 200 million years in age major
resources of Gondwana coal, which are metallurgical coal, are
located in Damodar valley (West Bengal-Jharkhand). Jharia,
Raniganj, Bokaro are important coal fields. The Godavari,
Mahanadi, Son and Wardha valleys also contain coal deposits.
 Tertiary Coal: occurs in the north eastern states of Meghalaya, Assam, Arunachal Pradesh and
Nagaland.
 Lignite (40-55%) is a low grade brown coal which is soft with high moisture content. The principal
lignite reserves are found in Neyveli in Tamil Nadu.
 Coal that has been buried deep and subjected to increased temperature is Bituminous coal (60-80%). It is
the most popular coal in commercial use – Coking coal of steel grade.
 Metallurgical coal is high grade Bituminous coal which has a special value for smelting iron in blast
furnaces.
 Anthracite (80-95%) is the highest quality hard coal – best, ideal for use, high grade.
Coal Sector in India:
 India is the 4th largest reserve, 2nd largest producer, importer and consumer of coal.
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 100% FDI allowed in coal Mining and Prospecting.

 1973 = Nationalization of Coal Sector – Allotment of coal mines for exploration through inter-ministerial
committees.
 Coal Mines Special Provision Act, 2015 – Coal mines henceforth allotted by Bidding and Tendering on
Revenue Sharing model.
 Imports from Australia, Indonesia and South Africa.
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Features of Indian Coal:

 High ash content (high residue left) and low calorific value (low energy released).
 Not high grade coking coal.
 Land shortage for coal mining.
 Primitive deep mining techniques.
 Coal bed methane. The availability of gas with coal is a good energy source.
 High and low grade coal found together.
 High sulphur content.
Importance of Coal:
 Economic – Revenue to government, income to public-employment.
 Infrastructure – 70% share in power generation.
 Social – Employment, education, health, women.
 Technological – India has a huge reserve that it can explore efficiently in future.
 Geo-Political – India self power generation.
Issue and Challenges:
 Poor Productivity
 Environmental – Deforestation, pollution-air, groundwater, biodiversity loss.
 Social – Displacement of tribals has led to Insurgency and Naxalism.
 Administrative – Illegal mining. Example: In Meghalaya
 Economic - Poor infrastructure – Rail, Road, Machinery
 Technological – Open cast mining up to 300m only
 Poor Connectivity between mines and customer
National Mineral Policy:
 Production – increment by 200% and reduction of trade deficit by 50% in 7 years.
 Revenue Sharing Model – to encourage private sector.
 Dedicated Mineral Corridors – for private sector participation.
 Exclusive Mining Zones – principal statutory clearance.
 Easy Clearances – Simplified and time bound.
 District Mineral Fund – proper utilization for welfare of affected.
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Government Steps:

 Mineral Laws (Amendment) Act, 2020 – It provides for composite license for coal bed methane and coal
exploration

 UTTAM app for monitoring coal quality.

 Online coal clearance system.

 Scheme for harnessing and allocating Koyla – SHAKTI app – for efficient allocation of coal mines.

 Hydrocarbon Exploration and Licensing Policy (HELP) - Open acreage licensing policy, Revenue
sharing model (between government and company) and Universal licensing (for both gas and coal)

Recent Coal Shortage:

 Surge in demand

 Rising heat waves.

 High international prices.

 Poor performance of railways.

 Cash flow problem with coal sector.

Minerals:
Minor Minerals:

 Minor Minerals are those which are prescribed by Mines and Minerals (Development and Regulation)
Act, 1957 (section 3(e)) as being categorized as ‘minor minerals’.

 Any mineral which by the notification of the central government may declare to be a minor mineral.

 The state government may, by notification in the Gazette make rules for regulating the grant of quarry
leases, or other mineral concessions in respect of minor minerals and for purposes connected therewith.

 Minor minerals: Sand, boulder, shingle, chalcedony pebbles, lime shell, kankar and limestone, brick earth,
fuller’s earth, bentonite, road metal, slate, marble, stone used for making household utensils, quartzite and
sandstone, saltpeter and ordinary earth.

Major Minerals:

 Major Minerals are those specified in the Mines and Minerals (Development and Regulation) Act, 1957.

 Some of the major minerals include Lignite, Uranium, Coal, Gold, Iron ore, Lead, Zinc, Magnesium,
Tungsten, Diamond etc.
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Petroleum:
 It is found between layers of sedimentary rocks.
 It is a thick black liquid or crude oil which is drilled on
and offshore.
 It is easily transported through a pipeline.
 It was formed millions of years ago when plants and
animals died and sunk under the sea floor and were
subjected to high temperature and pressure. This led to
the formation of fossils or crude.
 28% of overall energy mix
 80% of the oil needs met from imports
 70% of Indian energy needs come from West Asia.
Petroleum Refineries:
 Petroleum refineries act as a “nodal industry” for
synthetic textile, fertilizer and numerous chemical
industries.
 Petroleum production:
 63% comes from Mumbai.
 18% comes from Gujarat.
 16% comes from Assam.
 Ankleshwar is the most important field of Gujarat
 Assam is the oldest oil producing state of India.
 Digboi, Naharkatiya and Moran-Hugrijan are the
important oil fields in the state.
Usage of Petroleum:
 Petroleum or mineral oil is the next major energy source in India after coal.
 It provides fuel for heat and lightning.
 It provides lubricants for machinery
 It provides raw materials for a number of manufacturing industries.
 It is associated with anticlines and fault traps in the rock formations of the tertiary age.
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Oil Refineries:
Factors Affecting Location:
 Technology: Advanced technology required for refining in developed regions. Example: USA, Mexico,
China
 Ease of Export: Large ports, a large volume of oil handling in developed regions.
 Research and Development: developed regions, tech advanced, innovation, low-cost production.
 Finance: Oil business is capital intensive, huge storage is required.
 Market Availability: Refineries by-products need market. Thus, near market is a preferable location.
 Demand in almost all nations - Europe, China, America, Africa, location near ports reduces the cost of
transportation.
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Trend of Location of Oil Refineries Away from Crude Areas:

 By-Products: used in pharma, paints, plastic, fertilizer
 Ports: refineries located near ports leads to efficient transportation
 Middle East: fragile and volatile
 Exhausted Oil Fields: redundant refineries.
 Near Market: can import crude from anywhere in the world
 Pipelines: oil and gas, good network, importance of proximity to crude oil regions
 Development: for development of a region with a refinery as POLE. Example: Mathura, Panipat
Implications of Location of Refineries Away from Crude Areas:
 Revenue loss to crude producing regions: Crude is cheap whereas refined products are costly.
 Potential employment loss: Refinery is a complete unit. It hires engineers, technicians, accountant, MBAs,
workers, helpers.
 Technological backwardness: There is a consistent R&D in Refineries which leads to technological
advancements
 Poor human development: because of low employment which leads to poverty
 Strategic disadvantage: Refined products lead to mobility. During the times of war refined oil is in more
demand than crude oil.
 Dominance in global supply chain: Owner of the hundreds of products which are utilizable in machines,
automobiles, industries, pharma, aviation sector
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Oil and Gas Value Chain:

 Upstream: Exploration and production of oil fields. This is done by Oil and Natural Gas Corporation
(ONGC).
 Midstream: Transportation of oil and natural gas - shipping, pipelines. This is done by Gas Authority of
India Limited (GAIL).
 Downstream: Refining process, refineries, petrochemicals. This is done by IOCL, BPCL, HPCL, RIL,
Essar Oil.
Energy Resources:
Natural Gas:
 Since it has low carbon dioxide emissions, it is called the fuel for the present century.
 Resources found in association with or without petroleum.
 It is used as a source of energy as well as an industrial raw material in the petrochemical industry.
 The 1700 km long Hazira-Vijaipur-Jagdishpur cross-country gas pipeline links Mumbai high basin with
the fertilizer, power and industrial complexes in western and northern India.
 This artery has provided an impetus to India’s gas production.
 The power and fertilizer industries are the key users of natural gas.
 Use of Compressed Natural Gas (CNG) for vehicles to replace liquid fuels is gaining wide popularity in the
country.
 Natural gas is used in the Power sector (Gas power plants), Fertilizer sector as a feedstock, Transport sector
for running buses, Automobile sector (CNG/LNG), Household and Pharmaceuticals sector.
 Other uses: Electricity, Heating, Transportation, Cooking
 Natural Gas is Ethane + Methane
 It is formed during the formation of petroleum.
 Wet Gas: which forces the crude in upward to surface
 Dry Gas: reservoir containing gas only. No oil.
 Sour Gas: hydrogen sulfide and other sulfur compounds
 Sweet Gas: no hydrogen sulfide
 India imports from Qatar, Egypt, Oman.
Importance of Natural Gas:
 Gas power plants: 10% of power generation.
 Growing energy needs: insufficient oil reserves.
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 Fertilizer industry: natural gas is a basic raw material.

 CNG vehicles: running on natural gas.
 Low emissions: compared to crude oil.
 Huge reserves: high tapping potential, huge income and employment

Sources of Natural Gas:

 Conventional Reservoir: Natural gas is found in permeable sandstone. It is easy to exploit.

 Unconventional Reservoir:
 Impermeable sandstone
 Gas stored in joints or fractures or in the matrix of shale.
 Most expansive.
 Fracturing technology is required.

Shale Gas:
 As per the NITI Aayog report, India has 96 trillion
cubic feet of recoverable shale gas resources.
 Shales are fine grained sedimentary rocks that can
be rich sources of petroleum and natural gas.
 Shale gas refers to the natural gas that is trapped
within shale formations.
 Lately Shale gas has become an important source of
fuel in the United States and the rest of the world.
 Properties: colorless, odorless, lighter than air,
cheaper.
 Shale Gas is produced through a method known as hydraulic
fracturing, most popularly known as fracking.
 It’s the natural gas stored in shale formations.

 Shale gas reserves are usually distributed horizontally rather than

vertically.
 Colourless, odourless, lighter than air and Cheaper.
 It emits 50% less CO2
 It provides feedstock for petrochemical industry.
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Disadvantages of Shale Gas:

 High extraction cost: because of the fracking technology.
 Clean water requirement: for hydraulic fracturing.
 Leakage danger: lead to fire and loss of gas.
 Import dependence: on Qatar, Oman, Egypt.
 Low developed fracking technology in India.
Challenges:
 Domestic:
 Transportation: theft and leakage
 Strategic reserves
 Untapped potential
 Investment: exploration technology
 Industrial disasters: lack of safety procedure.
 Global:
 Exploration abroad - Africa (challenges related to terrorism, tribals, scattered resources)
 Technology transfer - in Shale Gas is very poor. Many shale beds are lying unexplored.
 Import dependence - 80% on Qatar.
 Volatile Middle East (Oman, Qatar) - danger to energy security
Kelkar Panel:
 It recommended:
 Increase in oil and gas production domestically.
 Reduce import dependence by 2030
 Develop strategic crude reserves
 Deregulation of oil and gas
 Utilize oil industry development board

 Strategic oil reserves are located in Visakhapatnam (Andhra Pradesh), Mangalore and Padur
(Karnataka)
 Indian Strategic Petroleum Reserve Limited (ISPRL) is under the Oil Industry Development Board
which comes under the Ministry of Petroleum and Natural Gas.
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Government Initiatives:
 Shale included in the definition of Petroleum
 HELP initiative.
 Pipelines - Jagdish - Haldia, Bokaro - Dharma.
 Marginal Field Policy - To bring marginal fields in production
 P.M Urja Ganga Project - 50 districts of 5 states
 City Gas Distribution Networks - Development of connectivity from exploration area to state/city/home
● Reduction of customs duty on LNG - 2.5%
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