Economic Viability of Manganese Nodule Mining in India: A Discussion

A comprehensive analysis of the economic viability of manganese nodule mining in India through the adoption of the standard capital budgeting techniques is attempted. The study includes both 3-metal plant (Copper, Nickel and Cobalt) and 4-metal plant (Copper, Nickel Cobalt and Manganese). Most of the studies carried out in the developed countries in the past conclude that this new ocean mining venture is not eccnomicaily viable. Hence, in this study, an attempt is made to find out any change that leads to significant improvement in the viability of the project by comparing the economic status of the industry between two periods, June 1987 and July 1990. The results of the research show that the Internal Rate of Return (lRR) of the 3-metal plant is 8.1% in June 1987 prices and the IRR for the 4-metal plant is 15.2%. But the IRR of 3-metal plant is 45.3% in July 1990 prices and 40.4% for the 4-metal plant. The results clearly point out that the project becomes viable in 1990 prices. This vast improvement in the economic status of this industry can largely be attributed to the enormous hike in the annual revenue of the project. Thus, the deep ocean holds out a beacon of hope to the world in general and India in particular for future supply of nodule metals.