Thursday, 22 May 2014

Challenges Faced By The Heavy Mineral Mining Industry

VV Mineral, India
One of the major challenges that the heavy mineral mining faces is the taxes set by the Government policies. For example a royalty of 3% for Garnet Mining and 2% of other heavy minerals is to be paid up according to the MMDR Act.  The central Government has also imposed 15% and 12.5% excise duty for various heavy minerals. In addition to that, there is 10% excise duty that needs to be fulfilled which is imposed by the Central Government again. Also, the State Government levies Sales Tax, Value Added Tax (VAT) and local cess and local cess surcharge are applicable to heavy mineral manufacturers.

The long process of getting environmental clearances and the CRZ clearances from the Ministry Of Environment And Forest is another hurdle. Even if the land is owned by the manufacturers themselves, the first stage public hearing has to be compulsorily attended. After which it is obligatory to get clearance from more than 17 department / agencies from State and Government departments.

Although difficult and time consuming, these processes are all complied by VV Minerals, India, which is based in Tamil Nadu. They are the country’s leading heavy mineral mining manufacturers and exporters. They rank number one for Garnet export. Also they are the first private company in the country to export ilmenite.

It is a family owned business, established by Mr. S. Vaikundarajan, who is the chairman and managing director of the company. Starting from 1989, in Tamil Nadu, they have now grown to be the leaders in the industry on the global front.

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