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Economic Geo Summary
Economic Geo Summary
Hematite and magnetite are the two most important iron ores in India
The total iron ore production in India in FY17 stood at ~192mn tonnes. Odisha solely
contributes a mighty ~50% of India’s total production, with Chhattisgarh,
Karnataka, Jharkhand and Goa contributing another ~45%.
In FY18, India exported ~24.2mn tonnes of iron ore and concentrates and
imported ~8.7mn tonnes, making India a net
exporter. About 90% of the total domestic production of 210mn tonnes in FY18 was
for domestic use, and just about 11% was cumulatively exported to countries like
China, Japan, South Korea, Oman, Vietnam, Indonesia and Malaysia. We
import iron ore mainly from Australia, South Africa, Brazil and Bahrain.
Chhattisgarh
Coalfield Extent
West Bengal: Darjeeling and Jalpaiguri are the chief producing districts.
RANIGANJ is the largest coalfield of West Bengal.
Tertiary Coal
Meghalaya: Garo, Khasi and Jaintia hill, Darrangiri field == Garo hills
Tamil Nadu, Gujarat, Jammu and Kashmir, Kerala, Rajasthan, West Bengal and
Puducherry
Lignite in Tamil Nadu:
90 per cent of India’s Lignite reserves. 57 per cent of the production
Neyveli Lignite fields of Cuddalore district. These are the largest deposits of
lignite in south - east Asia
1. China
2. India
3. USA
4. Japan
5. Russia
Grid connected installed capacity from all sources as of 31 May 2018 [13]
Biomass power
(Biomass & Gasification and Bagasse 8,701
Cogeneration)
*10,000
Waste-to-Power 138
Venezuela (300 billion barrels) Saudi Canada (265 billion barrels) iran Iraq In
decreasing order of proven reserves
India has 5 billion barrels
Top Crude Oil Producers (2018): USA Russia Saudi Iraq Iran in decreasing order of
production
Top crude oil consumers: USA China India Japan
Top crude oil exporters: Saudi Russia Iraq
Top crude oil importers: USA China India
OPEC: The organization was original launched in 1960 in Baghdad by five founding
members: Saudi Arabia, Venezuela, Iran, Kuwait, and Iraq
13 members : Algeria, Angola, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria,
the Republic of the Congo, Saudi Arabia (the de facto leader), United Arab Emirates, and
Venezuela.
Indonesia, Qatar, Ecuador are former members.
Qatar left OPEC on 1 January 2019, after joining the organization in 1961, to focus on
natural gas production, of which it is the world's largest exporter in the form of
liquefied natural gas (LNG)
Uniform License: It provides for a uniform licensing system to cover all hydrocarbons
such as oil, gas, coal bed methane etc. under a single licensing framework, instead of
the present system of issuing separate licenses for each kind of hydrocarbons
Open Acreages: It gives the option to a hydrocarbon company to select the exploration
blocks throughout the year without waiting for the formal bid round from the Government
Revenue Sharing Model: Present fiscal system of production sharing contract (PSC) is
replaced by an easy to administer “revenue sharing model”. The earlier contracts were
based on the concept of profit sharing where profits are shared between Government
and the contractor after recovery of cost. Under the profit sharing methodology, it
became necessary for the Government to scrutinize cost details of private participants
and this led to many delays and disputes. Under the new regime, the Government will
not be concerned with the cost incurred and will receive a share of the gross revenue
from the sale of oil, gas etc. Bidders will be required to quote revenue share in their bids
and this will be a key parameter for selecting the winning bid
Marketing and Pricing Freedom has been granted, subject to a ceiling price limit, for
new gas production from Deepwater, Ultra Deepwater and High Pressure-High
Temperature Areas. The policy provides marketing and pricing freedom to the gas
production from existing discoveries which are yet to commence commercial production
as on 1.1.2016 as well as for future discoveries
Exploration is allowed through-out the contract period.
Exploration Phase for onshore areas have been increased from 7 years to 8 years and
for offshore increased from 8 years to 10 years.
A concessional royalty regime will be implemented for deep water and ultra-deep water
areas. These areas would not have any royalty for the first seven years (instead of the
5% at present), and thereafter would have a concessional royalty of 5% (in deep water
areas) and 2% (in ultra-deep water areas), instead of the 10% at present. In shallow
water areas, the royalty rates are reduced from 10% to 7.5%. For onshore areas royalty
has been kept same i.e. 12.5% for oil and 10% for gas so that there is no impact on
revenue to the State Governments
Conventional reservoirs of oil and natural gas are found in permeable sandstone.
Some reservoirs contain gas and no oil. This gas is termed non-associated gas or dry gas.
Often natural gases contain substantial quantities of hydrogen sulfide or other organic sulfur
compounds. In this case, the gas is known as “sour gas.”
Coalbed methane is called ‘sweet gas’ because of its lack of hydrogen sulfide.
Leading Importers: China, Japan, European Union countries like Germany, Italy, etc
It periodically changes place with the United States as the world’s largest or second largest producer
coalbed methane
With one of the largest proven coal reserves, and one of the largest coal producers in the world,
India holds significant prospects for commercial recovery of coalbed methane.
The country has an estimated 700-950 billion cubic metre of coalbed methane
State Estimated CBM Resources (BCM)
1. Jharkhand 722
2. Rajasthan 360
3. Gujarat 351
4. Orissa 243
5. Chhattisgarh 240
6. Madhya Pradesh 218
7. West Bengal 218
Total CBM Resources GOI has identified CBM Resources of
2,600 billion cubic meters (91.8 TCF).
Shale gas = Lot of Methane + Little Ethane, Propane, & Butane + very little carbon dioxide, nitrogen,
and hydrogen sulfide.
Gas hydrate
Gas hydrate is an icy crystalline compound located at great ocean depths and in shallow
polar waters.
It is composed of gas molecules, normally methane, encaged within water molecules.
At great ocean depths due to cold temperatures and high ocean pressure gas hydrate
remain Solid
The source of the dissolved gas is from the breakdown of organic matter trapped within
marine sediment
Hence, gas hydrate deposits are likely to occur everywhere the seafloor exceeds 500 m
(or 300 m in high latitudes), and where there is a source of unoxidized organic carbon in
marine sediments
Gas hydrates are estimated to hold many times more methane than presently exists in the
atmosphere and up to twice the amount of energy of all fossil carbon-based fuels combined
Basically, these are solid made up of hydrocarbon gas (mainly Methane) and liquid water.
They resemble wet snow and can exist at temperature which is above the freezing point of
water.
Hydrates belong to a form of complexes known as clathrates.
Clathrates are substances having a lattice-like structure in which molecules of one
substance are completely enclosed within crystal structure of another. Hydrates consist of
host molecule (water) forming a lattice structure acting like a cage to entrap guest
molecules (gas). Guest molecule includes mostly methane, carbon dioxide, hydrogen
sulphide, etc. Hydrates are generally present in oceanic sediments along continental
margins and in polar continental settings.
Bauxite
Bauxite Distribution in India
Odisha alone accounts for 52 percent - also the largest producer (33% of total production)
Andhra Pradesh 18 per cent
Gujarat 7 per cent
Chhattisgarh (Second largest producer) and Maharashtra (Third largest producer)5 per cent
each
Madhya Pradesh and Jharkhand 4 per cent.
Few mines in Tamil Nadu and Kerela
Major bauxite resources are in the east coast in Odisha and Andhra Pradesh.
India manages to export small quantities of bauxite.
Major importers are Italy (60%), U.K. (25%), Germany (9%) and Japan (4%).
Rajasthan is endowed with the largest resources of lead-zinc ore (88.61 per cent),
Andhra Pradesh (3.31 per cent),
Madhya Pradesh (2.16 per cent),
Bihar (1.67 per cent)
Maharashtra 9 (1.35 per cent).
Almost the entire production comes from Rajasthan
Tungsten
1. Karnataka – Largest Producer - Kolar [Kolar Gold Field], Dharwad, Hassan and Raichur [Hutti
Gold Field] districts
2. Rajasthan,
3. Bihar,
4. Andhra Pradesh – Second largest Producer – Ramagiri mine in Anantapur
5. Jharkhand (Sands of the Subarnarekha (gold streak) river have some alluvial gold, etc.
6. Kerela - river terraces along the Punna Puzha and the Chabiyar Puzha have some alluvial gold
Kolar Gold Field, Hutti Gold Field and Ramgiri Gold Field are the most important gold fields
Zawar mines in Udaipur district of Rajasthan is the major producer of silver [smelting of galena
ore in Hindustan Zinc Smelter
Tundoo Lead Smelter in Dhanbad district of Jharkhand
Chromite
Chromite is an oxide of iron and chromium = Combination of chromium, iron and oxygen
The chromium extracted from chromite is used in chrome plating and alloying for production of
corrosion resistant super alloys, nichrome, and stainless steel
Copper is a good conductor of electricity and is ductile [able to be drawn out into a thin wire
Iron + Nickel + Copper + Chromite +…. == Stainless Steel.
Copper + Nickel == Morel Metal.
Copper + Aluminium == Duralumin.
Copper + Zinc == Brass.
Copper + Tin == Bronze
Mining for copper is costly and tedious affair because most of the copper ores contain a small
percentage of the metal.
India has low grade copper ore [less than 1% metal content] [international average 2.5%
Cobalt
• Cobalt is an important ferromagnetic alloying metal having irreplaceable industrial applications.
• Cobalt is extracted as a by-product of copper, nickel, zinc or precious metals.
• Major use of cobalt is in metallurgical applications, in special alloy/super alloy industry
Super alloys made of cobalt are wear & corrosion-resistant at elevated temperatures.
• Hard-facing or cutting tools with cobalt alloys provide greater resistance to wear, heat, and
corrosion.
• Cobalt is used as precursors (cobalt compounds) for cathodes in rechargeable batteries.
• Largest demand for cobalt has been from the Rechargeable Battery Industry (Lithium ion
battery).
• Cobalt is alloyed with aluminium and nickel to manufacture powerful magnets.
Lithium
Lithium-ion batteries are key to lightweight, rechargeable power for laptops, phones, electric
vehicles, etc.
• Lithium and another battery component, cobalt, could become scarce as demand increases
• Lithium is highly reactive and flammable and must be stored in mineral oil.
• It never occurs freely in nature, but only in compounds such as igneous rocks formed
underground.
• China controls most of the lithium supply across the world.
A joint venture company namely Khanij Bidesh India Ltd. (KABIL) is to be set up with the
participation of
three Central Public Sector Enterprises namely,
✓ National Aluminium Company Ltd. (NALCO),
✓ Hindustan Copper Ltd. (HCL) and
✓ Mineral Exploration Company Ltd. (MECL).
• The equity participation between NALCO, HCL and MECL is in the ratio of 40:30:30.
• Objective of constituting KABIL is to ensure a consistent supply of critical and strategic minerals
to Indian domestic market.
The KABIL would carry out identification, exploration, development, mining and processing of
strategic minerals
overseas for commercial use and meeting country’s requirement of these minerals.
• The new company will help in building partnerships with other mineral rich countries like
Australia and those
in Africa and South America.
NON-METALS
Graphite
Graphite Production
Tamil Nadu (37%),
Jharkhand (30%), [Palamu district in Jharkhand is the most important]
Odisha (29%).
Diamond
Diamonds are formed in mantle. They brought to the earth’s crust due to volcanism. Most of the
diamonds occur in dykes, sill etc.
The Vindhayan system have diamond bearing regions from which Panna and Golconda diamonds
have been mined.
1. Panna belt in Madhya Pradesh;
2. Wajrakarur Kimberlite pipe in Anantapur district(South west Andhra) and
3. Gravels of the Krishna river basin in Andhra Pradesh.
4. Chhattisgarh: Raipur and Bastar districts; and
Reserves have been estimated only in Panna belt and Krishna Gravels in Andhra Pradesh.
The new kimberlite fields are discovered recently in Raichur-Gulbarga districts of Karnataka.
Cutting and polishing of diamonds is done by modem techniques at important centres like Surat,
Navasari, Ahmedabad, Palampur etc
The leading producers of natural diamond are Russia, Botswana, Canada, Australia, South Africa, Russia
and Zaire [Congo]
Mica
Mica is a very good insulator that has a wide range of applications in electrical and electronics
industry
It is used in toothpaste and cosmetics because of its glittery appearance. It also acts as a mild
abrasive in toothpaste
India is one of the foremost suppliers of mica (60% of world production) to the world
Gypsum
The remaining gypsum is produced by Tamil Nadu [Tiruchirapalli district], Jammu and Kashmir,
Gujarat and Uttar Pradesh in order of production
Salt
Uranium :
World’s Uranium (U) Reserves: Australia, Kazakhstan, and Canada. India has very few
In March 2011 large deposits of uranium were discovered in the Tummalapalle belt Andhra and in
the Bhima basin at Gogi in Karnataka by the Atomic Minerals
Thorium: Thorium is estimated to be about three to four times more abundant than uranium in
the Earth's crust, and is chiefly refined from monazite sands [Monazite contains 2.5% thorium]
[Monazite is a widely scattered on the Kerala Coast
World’s Thorium Reserves India United States Australia
India’s Thorium Reserves Andhra Pradesh Tamil Nadu Odisha Kerala West Bengal
India and Australia are believed to possess more than half of world's thorium reserves
Fissionable material → That can undergo nuclear fission chain reaction.
Fissile → That can undergo Controlled or Self-Sustained nuclear fission chain Reaction
Uranium is the most common fissile used in nuclear reactors and nuclear weapons.
Uranium isotopes in natural uranium are Uranium-238 or U-238 or 238
U (99.27%) and Uranium
235 or U-235 or 235U (0.72%).
Uranium-235 can undergo fission when bombarded with slow neutrons only.
Uranium-238 can undergo fission when bombarded with fast neutrons only.
The nuclei of other heavy elements, such as thorium also fissionable, but with fast neutrons
A slow neutron can be captured by a uranium-235 nucleus.
A fast neutron will not be captured, so neutrons must be slowed down by moderation to increase their
capture probability in fission reactors
The 0.72% U-235 is not sufficient to produce a self-sustaining critical chain reaction.
For light-water reactors, the fuel must be enriched to 2.5-3.5% U-235. While for heavy water
enrichment is nor required
While uranium-235 is the naturally occurring fissionable isotope, Plutonium-239 can be
produced by "breeding" it from uranium-238.
Uranium-238, which makes up 99.3% of natural uranium, is not fissionable by slow neutrons
The other isotope can undergo fission upon slow-neutron bombardment is uranium-233.
A neutron moderator is a medium that reduces the speed of fast neutrons, thereby turning them into
thermal neutrons capable of sustaining a nuclear chain reaction
Commonly-used moderators include regular (light) water (in 74.8% of the world's reactors), solid
graphite (20% of reactors), heavy water (5% of reactors) and beryllium
Control rods that are made of a neutron poison are used to absorb neutrons.
Control rods are composed of chemical elements such as boron, silver, indium and cadmium
When a nuclear chain reaction in a mass of fissile material is self-sustaining, the mass is said to
be in a critical state in which there is no increase or decrease in power, temperature, or neutron
population.
Criticality
Criticality is a nuclear term that refers to the balance of neutrons in the system.
Balance of neutrons can be achieved using moderators and control rods.
“Subcritical” refers to a system where the loss rate of neutrons is greater than the production
rate of neutrons and therefore the neutron population decreases as time goes on.
“Supercritical” refers to a system where the production rate of neutrons is greater than the loss
rate of neutrons and therefore the neutron population increases.
When the neutron population remains constant, this means there is a perfect balance between
production rate and loss rate, and the nuclear system is said to be “critical.”
Therefore, when a reactor is said to have “gone critical,” it actually means it is in a stable
configuration producing a constant power.
235
All uranium isotopes are radioactive and fissionable. But only U is fissile (will support a neutron-
mediated chain reaction
Thorium itself is not a fissile material, and thus cannot undergo fission to produce energy.
Instead, it must be transmuted to uranium-233 in a reactor fueled by other fissile materials
[plutonium-239 or uranium-235].
In the first stage of the programme, natural uranium fuelled pressurized heavy water reactors
(PHWR) produce electricity while generating plutonium-239 as by-product.
[In PWHR, enrichment of Uranium to improve concentration of U-235 is not required. U-238 can be
directly fed into the reactor core]
[Natural uranium contains only 0.7% of the fissile isotope uranium-235. Most of the remaining 99.3% is
uranium-238 which is not fissile but can be converted in a reactor to the fissile isotope plutonium-239].
[Heavy water (deuterium oxide, D 2O) is used as moderator and coolant in PHWR].
PHWRs was a natural choice for implementing the first stage because it had the most efficient
reactor design [uranium enrichment not required] in terms of uranium utilisation.
India correctly calculated that it would be easier to create heavy water production facilities
(required for PHWRs) than uranium enrichment facilities (required for LWRs).
In the second stage, fast breeder reactors (FBRs)[moderators not required] would use
plutonium-239, recovered by reprocessing spent fuel from the first stage, and natural uranium.
In FBRs, plutonium-239 undergoes fission to produce energy, while the uranium-238 present
in the fuel transmutes to additional plutonium-239.
Uranium-235 and Plutonium-239 can sustain a chain reaction. But Uranium-238 cannot sustain a chain
reaction. So it is transmuted to Plutonium-239.
Natural uranium contains only 0.7% of the fissile isotope uranium-235. Most of the remaining 99.3% is
uranium-238.
Thus, the Stage II FBRs are designed to "breed" more fuel than they consume.
Once the inventory of plutonium-239 is built up thorium can be introduced as a blanket material
in the reactor and transmuted to uranium-233 for use in the third stage.
The surplus plutonium bred in each fast reactor can be used to set up more such reactors, and
might thus grow the Indian civil nuclear power capacity till the point where the third stage
reactors using thorium as fuel can be brought online
As of August 2014, India's first Prototype Fast Breeder Reactor at Kalpakkam had been delayed - with
first criticality expected in 2015, 2016..and it drags on
A Stage III reactor or an Advanced nuclear power system involves a self-sustaining series of
thorium-232-uranium-233 fuelled reactors.
This would be a thermal breeder reactor, which in principle can be refueled – after its initial fuel charge
– using only naturally occurring thorium
A fissile material is one that can sustain a chain reaction upon bombardment
by neutrons.
Thorium is by itself fertile, meaning that it can transmute into a fissile
radioisotope [U-233] but cannot itself keep a chain reaction going.
In a thorium reactor, a fissile material like uranium or plutonium is blanketed
by thorium.
The fissile material, also called a driver in this case, drives the chain reaction to
produce energy while simultaneously transmuting the fertile material into fissile
material.
India has very modest deposits of uranium and some of the world’s largest
sources of thorium. It was keeping this in mind that in 1954, Homi Bhabha
envisioned India’s nuclear power programme in three stages to suit the
country’s resource profile.
1. In the first stage, heavy water reactors fuelled by natural uranium would
produce plutonium [U-238 will be transmuted to Plutonium 239 in PHWR];
2. the second stage would initially be fuelled by a mix of the plutonium from the
first stage and natural uranium. This uranium would transmute into more
plutonium and once sufficient stocks have been built up, thorium would be
introduced into the fuel cycle to convert it into uranium 233 for the third
stage [thorium will be transmuted to U-233 with the help plutonium 239].
3. In the final stage, a mix of thorium and uranium fuels the reactors. The
thorium transmutes to U-233 which powers the reactor. Fresh thorium can
replace the depleted thorium [can be totally done away with uranium which is
very scares in India] in the reactor core, making it essentially a thorium-
fuelled reactor [thorium keeps transmuting into U-233. It is U-233 that
generates the energy].
Thorium is not fissile; and hence cannot go critical and generate a nuclear chain reaction. Thorium
produces less radioactive waste products and generates more energy per ton, so it is safe for
environment also. Thorium reactors do not produce plutonium, which is what you need to make a
nuclear warhead. Thorium-derived U-233 is better fuel on the basis of efficiency of energy generation in
nuclear reactor, in comparison to U-235.
It is found in the filaments of vacuum tubes, e.g., magnetron found in microwave oven. •
Oxide of thorium known as ‘thoria’ is used in industry. Melting point of thoria is very high; hence, it is
used in mantles of portable gas lights. •
When ‘thoria’ is added to glass, it increases the refractive index of glass and decreases dispersion and is
thus used in high quality lens for cameras. •
As chemical catalyst for converting ammonia to nitric acid in petroleum cracking and in production of
sulphuric acid.