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Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

Australian Government - Department of Foreign Affairs and Trade

Advancing the interests of Australia and Australians internationally

India New Economy Old Economy

India New Economy Old Economy

Company: MIM
State: BRISBANE, QUEENSLAND
Sector: RESOURCE

MIM ACTIVE IN INDIA

Since the mid 1980s, major Australian miner MIM has been exporting coal to India, mostly coking coal from its Queensland mines. Its major customers include the Steel Authority of India Limited and Vizag Steel. India is now MIMís single largest market for hard coking coal, taking just under 3 million tons per year. Since 1985, MIM also has supplied India steaming coal via one off contracts with traders rather than directly to customers.

MIM also sells proprietary smelting and refining technology to the Indian base metal industry. For example, Sterliteís copper smelter in Southern India uses MIMís ISASMELT technology and Sterlite Copper and Birla Copper use IsaProcess copper refining technology. MIM also purchases Indian mining and refining related consumables, but to date this business has not produced any significant long term relationships. From its long experience in trading with India, MIM highlights the need for a trusted and committed representative in India. Choosing a representative cannot be treated as a Ďset and forgetí arrangement; the Australian party must collaborate closely with its representative, effectively managing the business to achieve objectives. Australian businesses must understand fully the local business environment, particularly dealing with government agencies. Considerable patience and perseverance are critical in such dealings. Australian firms need to learn to negotiate the processes involved and understand how persistence and building good long term relationships are essential in working through issues that might initially cause difficulties.

In looking to the future, MIM considers Indian business opportunities promising. Local steel production and consumption per capita are low in world terms and Indiaís ongoing industrialisation should continue to boost demand and improve opportunities for supplying coking coal to Indian steel producers. Indian thermal coal consumers also appreciate the benefits of blending higher quality Australian steaming coal with Indian product to improve operational efficiency and reduce maintenance. MIM also is pursuing further opportunities to install its technologies in India. These trends and opportunities make India an important part of MIMís future plans.

Source, MIM Holdings Limited, 2001

Department of Foreign Affairs and Trade