The supply of mineral commodities has underpinned the economic and social development of societies since the dawn of human history. Metals characterised periods in history - the Bronze and Iron ages are named from the use of these metals. Precious metals and gems were behind the forces driving the creation and demise of empires. Industrialisation expanded rapidly based on the development of uses for basic mineral products such as iron and steel, coal, copper, and led to rapid growth in demand for them. Technology and advanced development created markets for a wider range of minerals and diversified the uses to which they are put. Today, mining for industrially and economically important minerals forms an important core of industrialisation at a global level.

Since India has been richly endowed with varied mineral resources, mining and metallurgical activities in India date back over 6,000 years. Mining industry in India has had substantial growth over the past five decades. The aggregate mineral production in 1999 – 2000 was about 550 million tonnes, contributed by over 3,100 mines producing coal, lignite, limestone, iron, bauxite, copper, lead, zinc and various other minerals. The value of mineral production during 1999 -2000 was estimated at Rs.452.3 billion to which contribution from the public sector was Rs.378.4 billion (84%). In the total value of mineral production, fuel minerals accounted for Rs.372.3 billion (82%), metallic minerals for Rs. 34.2 billion (8%), non-metallic minerals for Rs.18.3 billion (4%) and minor minerals accounted for Rs.27.6 billion representing the remaining 6% of the total value (TERI 2001, Vagholikar and Moghe 2003).

The mineral industries of India produce about 70 mineral commodities embracing various ores, metals, industrial minerals, and mineral fuels. Amongst the non-metallic minerals, more than 90% of the aggregate value is shared by limestone, magnesite, dolomite, barytes, kaolin, gypsum, apatite, phosphorite, steatite and fluorite (Department of Mines 2001).

Mining leases in India are spread over 21 states on about 13,000 mineral deposits occupying about 0.8 million hectares representing nearly 0.21% of the total geographic area of the country (Vagholikar and Moghe 2003). In all, 3100 mines located in 19 states and union territories were reported to have worked during 1999-2000 of which 566 mines were for fuel minerals, 561 for metallic minerals and 1973 for non-metallic minerals.