Coal is a vital energy resource for the world, and it is great for both taxation and as an energy resource in power plants, and meeting energy demands. It has various other uses and contributes well to the economy. So, it is a great way to build up a coal business and build a business locally, and internationally.
Starting a coal business goes around a series of steps and comes with massive profits. The cost of starting a coal business can vary from hundreds to millions of dollars depending on the size and the type of business.
So, in this post, let’s discuss all the expenses associated with the business, how to start it, where to sell it, and most importantly the location. If you are picking a location, it is well-known that India is enriched with coal reserves, and it is geographically lucrative to start a business.
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What Do You Need to Start a Mining Business in India?
India is a promising location for business as it offers a diverse market to work with. They have a continuous consumer base. However, business in India comes with its opportunities and challenges. One emerging trend seen in the coal mining industry is it is growing at a great rate.
According to the Ministry of Coal India, the All-India Production of coal during 2022-2023 was 839.19MT with a growth of 14.77%. In India as per their import policy, coal can be freely imported (under their license).
How Much Does India Economically Contribute to The Mining Sector?
India produces about 95 minerals, including, metallic, non-metallic, and fuel. They play a significant role in coal production. Commercially, to revive and fill in the gap of COVID-19, India rigorously worked to boost domestic coal production to overall benefit every industry.
Coal In India – What to Expect
- States like Jharkhand, Orissa, and Chhattisgarh are states of India, and a larger part of swathes and southeastern India presses older deposits of coal, and about 90% of its reserves are found in Tamil Nadu.
- Other states with coal reserves include states such as Andhra Pradesh, and Karnataka and have also begun with their commercial auction.
- Coal production has grown by about 700% in India and with the rise of technology, advancements coal mining is expected to grow more.
How To Start Coal Mining Business in India – Follow These Steps
Let’s look into the comprehensive steps of building a coal mining business in India. It is a budding industry for new businesses and has a lot of economic, growth. India is young with energetic people. T is great to work in a multicultural, and technologically advanced country.
1. Research the Business Idea
Starting a business in Indian coal mining demands lots of research. Therefore, you will need to be apt in its knowledge. However, it does not have to be complicated so keep it simple. You have to choose a sorted way to enter the business, so begin with a company overview, competitive and financial analysis, market trends, and product/service offerings. A few of the things you can do are, research, outline objectives, create a financial model, and think of expected downfalls. Keep up with the business plan, and also look out for review and revision, take expert help, and reevaluate if necessary.
2. Choose your Business Structure
Among various factors, one important factor that creates a big difference is creating a business structure. Creating a business structure can help in rowing a convenient business boat. Moreover, when you begin a business plan, it is necessary to understand the importance of a business plan, so there are some important elements to include to make it effective.
- Include business structure such as name, location, structure, and ownership type.
- Create a top-notch summary of the business and include all your objectives, strategies, and target market.
- Write a business description and make sure it is on the path of your business.
- Take an analysis of the market
3. Hire Skilled Employees
To gather your business, you would need a fantastic team, and with a mining company, you would need a lot of them. From manual jobs to labor, engineers, and geologists, but with experience. Hiring employees is a tiring and lengthy process.
You will need to accommodate them, in an office on-site. Labors will require a proper living and sanitation system to survive in the drilling. It is also important to hire experienced and skilled labor to carry out an efficient mining company.
4. Exploration and Mining License
Starting a mining business in India comes with some challenges, and one step to counter is to earn a license and permit. You may also need to obtain more than a license. At times you also need licenses for different agencies, land authorities, and other government departments. So, it is important to understand how the state law works and their regulations. Some important license requirements are,
- Mining
- Environmental Impact Assessment Permit
- Environmental clearance
However, it is important to hire a legal expert to ensure that all legal matters are carried out properly. Also, to ensure you are aware of applicable laws and regulations of a certain state. Follow and look after every critical protocol, be aware of this matter, and make sure you have a license and are verified by the stakeholders.
5. Establish an Online Presence
Every digital platform has its importance and they serve the best. You have to be smart on how to use it. You can utilize a number of mediums by using methods such as blogging, forums, email marketing, or any other social networking channels. Businesses and customers seek out these platforms and trust online social platforms. Make a unique business strategy for social media and gain a better chance of driving a successful online strategy.
How To Make Profits from Mining Business?
The mining industry is a high-cost business but has a great potential for significant profits and success. It is vital for many countries, as the resources extracted are of great value, and is demanded all over the world. Coal is the need of the time, and is only set to increase with time. One of the most efficient ways to extract coal is through mining, and this can also be done by starting a company.
To get your profits, you need to put in investments, and patience. So, apply all the necessary efforts in your business plan. Mining is a profitable business and many businesses are making a huge turnout from it.
Some Mining Challenges to Be Aware Of
Many problems may come under the way of starting a new business, from quality assurance to payment issues, there could be many so take a heads up.
- Costs and contracts
- Labor and staff
- International market prices
- Government policies and regulations
- Legality
- Waste management
Where to Sell Coal Online – Find the Best Online Marketplace
As much as you are now aware of the coal business in India, here is a bonus for you. You can join this platform to start and expand your mining business in India.
eWorldTrade
To begin with, eWorldTrade is one of the most trending eCommerce platforms for buying and selling. It is an inclusive platform that is surrounded by world-class business that joins each other from around the world to make a business deal. So, if you think can you find coal buyers here, so yes you can. Whether it is about buying or selling coal eWorldTrade is an ideal place.
It is created with a pre-planned road to leveraging business into removing geo barriers and creating a seamless way for businesses to buy or sell in bulk. eWorldTrade also helps new businesses set up themselves in the market, and have a sorted coal mining business. eWorldTrade has initiated a Suppliers Program, that facilitates businesses in setting up stores upfront, and with the help of their experts and their expertise.
Amazon
Now, coming to another platform, Amazon is also a proficient name for business. You can build up an account and carry out successful business transactions. Amazon caters to both B2B and B2C parties and has a widespread network around the world.
Amazon Business is a special wing of the platform for B2B business, and you can expect to sell or buy coal. Amazon is successfully working in India and a huge number of businesses came, worked, and now have successful businesses.
Alibaba
Alibaba is also a place where a mining business can thrive and give you a huge round of applause. It is an international platform working as an eCommerce marketplace and allowing businesses to have an open business trend. They are well-known in India, and around the world for their services. As a new mining business in India, you will find an easy way for your journey for set your name on the platform.
Alibaba has set some great features for new businesses, by their multiple payment method, and a strong database. Now, the platform has upgraded itself, and working and includes elite operations like cloud computing, digital media, and entertainment.
Global Sources
Lastly, Global Sources is also a top name to consider for starting and expanding a mining business. Global Sources is also an Asian-based market where there are millions of buyers and sellers. Coal mining businesses in India can be a part of this business, and ensure more revenues and profits in their pockets. Global Sources have allowed many businesses to set their time through a proper method, and get them the required business.
Global Sources is an easy-to-join platform that offers numerous features and operations systems for new and small businesses. They also conduct global trade shows and other training programs.
In the End
Starting any business in any part of the world is interesting as well as challenging. Setting a business foot in India is promising. Since now you have a roadmap to it, you will have a better time in the market. You can start from small steps, and provide services to small businesses.
Many businesses started and thrived in India, and made a mark in their industry, so do not take it as a bad idea. Stepping stones will take you higher, and higher. So, do not wait any longer, and begin your coal mining business in India.
