National Mineral Policy 2006 - Department of Mines

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(iii)parameters laid down in existing parameters (a) to (c) should be morerigorous;For single applicants for direct PL or direct LAPL, only the parameters (a)to (c) in existing Section 11(3) should be applied. In deciding amongmultiple applicants for direct PL or direct LAPL, preference may be givenby the state government to the applicants who are qualified under thecriteria (a) to (c) in existing Section 11(3) and, in addition, propose tomake investment not only in mining operations but also in industry basedon the mineral within the state when they eventually move to the nextstage of ML. In such cases, transfer of the preferential right to grant of MLwould be allowed to holders of PL or LAPL without any hindrance but insuch transfers, the right to grant of ML would be passed on together withthe obligation regarding value addition.5.14 In the case of applications received pursuant to notifications, the amended Section 11should provide as follows:(i)(ii)(iii)For single applications for LAPL only, the criteria in (a) to (c) in existingSection 11(3) should be applied;In the case of multiple applicants for LAPL/PL, where applicants arefound to be qualified under criteria (a) to (c) in existing Section 11(3),preference should be given for the proposed investment in mine andindustry based on the mineral within the state in the event of the applicantmoving eventually to the next stage of ML;In cases in which ore bodies fully prospected by public agencies are to beauctioned as envisaged in Chapter 1, the states would have the right towaive the tender/auction procedures in cases in which the applicantproposes to set up the industry based on the mineral within the state. Insuch cases, the full cost of exploration by the public agency should berecovered from the lessee.5.15 In the case of multiple applicants referred to in paragraphs 5.13(ii), 5.14(ii), or5.14(iii), if there is more than one applicant proposing to set up an industry in the state basedon the mineral and also satisfying the criteria mentioned in Section 11(3) (a) to (c), the state118
government may grant the LAPL/PL or ML to the applicant adjudged by it to be the mostdeserving in terms of criteria (a) to (d) of Section 11(3) of the Act.5.16 In addition to the above, the Committee recommends the following changes:(i)(ii)(iii)Section 11(3)(d) should be amended to provide not only for the applicantto propose investment in industry but also for the applicant to have a tie-upwith an associate company with necessary experience to make suchinvestment;Rule 35 should be deleted as it is redundant;As proposed in Chapter 1, Rule 27(3) should be deleted. In its place, a ruleshould provide that where an application had been accepted on the strengthof the proposal for investment in industry based on the mineral, acondition could be imposed to ensure that the concessionaire abides by thecommitment.119
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National Mineral PolicyReport of th
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ContentsAcronyms...................
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Annexure 5: Using the GRI Guideline
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GDP gross domestic productGIS Geogr
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UNFCUSVATWCUUnited Nations Framewor
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Introduction1. The Government of In
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issues relate to fund raising by pr
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termination of MLs, lowering of cei
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• In the case of large mining ope
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investment. The work done by GSI co
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mainly for minerals of base metals
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1.21 This situation has changed dra
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absent. A study by the United Natio
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example, a mining major may outsour
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would otherwise remain unexploited
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the policy environment must continu
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‘A thrust is to be given to explo
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In reviewing the MMDR Act, it is ne
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permissible activities in order to
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(i)(ii)(iii)(iv)The current two-tie
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per plan should be significantly hi
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Duration of Concessions1.48 In the
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10,000 sq. km in a state. This has
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(ii)(iii)(iv)The maximum total area
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e obviated if the lease deed is exh
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elinquishment of areas by the lesse
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to give priority to the prior appli
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(v)(vi)(vii)Rules should be prescri
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esponsible for all rights, liabilit
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ut also the revenue generated from
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government at the Secretariat. A le
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Secretary. If the Directorate is in
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(i) All applications for mineral co
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application. A similar website shou
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concerned State Government (or othe
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Further, Rule 7D of the MCR specifi
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mission mode through, inter alia, t
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Chapter 3Forest Conservation and En
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Page 80 and 81: ICMM AND SDF3.8 The ICMM membership
Page 82 and 83: higher level. The basic approach is
Page 84 and 85: (i) To minimize displacement and to
Page 86 and 87: affected PAPs in the mining operati
Page 88 and 89: that a well-regulated and responsib
Page 90 and 91: (iii)Notwithstanding the above, sur
Page 92 and 93: egard, all ‘forest’ land must b
Page 94 and 95: Figure 3.1: Procedure for Processin
Page 96 and 97: should be authorised to grant or re
Page 98 and 99: formulation and appraisal of the EI
Page 100 and 101: 3.41 Recognising the need to make t
Page 102 and 103: Figure 3.3: Public Hearing/NOC from
Page 104 and 105: Chapter 4Infrastructure Needs and F
Page 106 and 107: 4.5 Logistics is the key to access
Page 108 and 109: Table 4.1: Mineral Production in In
Page 110 and 111: necessary, therefore, that in infra
Page 112 and 113: to the ports of Haldia and Paradip
Page 114 and 115: Connectivity of Major Ports, brough
Page 116 and 117: (iv)(v)(vi)(vii)At Visakhapatnam Po
Page 118 and 119: was of the opinion that while the m
Page 120 and 121: such an arrangement, the Ministry o
Page 122 and 123: developed, controlled, and run by s
Page 124 and 125: subject to overt and covert restric
Page 126 and 127: consideration to the end use of the
Page 130 and 131: Chapter 6Augmenting State Revenues(
Page 132 and 133: the value addition question conside
Page 134 and 135: In a system of ad valorem rates of
Page 136 and 137: must provide revenues sufficient to
Page 138 and 139: Box 6.1: Methods of Valuation of Ro
Page 140 and 141: Another point to be borne in mind b
Page 142 and 143: ailable, cognisable criminal offenc
Page 144 and 145: e worked out. This should be string
Page 146 and 147: 7.3 Considering the high-risk natur
Page 148 and 149: Table 7.2: Minimum Listing Requirem
Page 150 and 151: (ii)(iii)only. Such funds have not
Page 152 and 153: addition, the minimum post-issue fa
Page 154 and 155: and hence this ore should be conser
Page 156 and 157: miners distort the market for their
Page 158 and 159: 7.22 The current law does not make
Page 160 and 161: is mostly of low grade magnetite. H
Page 162 and 163: Most magnetite findings are entirel
Page 164 and 165: in UK 206 kg, and in China it grew
Page 166 and 167: metres. The use of down hole drill
Page 168 and 169: 7.42 Despite the fact that SME mini
Page 170 and 171: also be a consideration. However, t
Page 172 and 173: price, reduce profitability, and pu
Page 174 and 175: IMPACT ON DOMESTIC IRON ORE PRICES
Page 176 and 177: 7.58 Export of iron ore fines on a
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POLICY ON BEACH SAND MINERALS7.64 B
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not contain more than 0.1 per cent
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7.73 On 18 January 2006, the DAE no
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with the Centre is mainly to ensure
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India enterprise) reported that the
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chloride process pigment technology
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are disposed of in the mined-out ar
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directed to ensure that the AERB/AM
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would have to be carefully drafted
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‘In coordination with the Geologi
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Exploration Licences• The current
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• The fees should be significantl
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surveys have been undertaken, the P
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automatic until the exhaustion of t
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y stating in the MMDR Act that a pr
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departmental representative for sec
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therefore (under Rule 63A), pass su
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• Section 12(1) of the MMDR Act s
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o The lessee should not be asked to
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again and the State Mines Departmen
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• As in the past, no environmenta
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oad and rail, and lack of long-term
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government to the applicants who ar
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next three-year period as well. In
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• Rates of dead rent should be ra
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measure to provide a level playing
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• In respect of three titanium be
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No-I&M-25(3)/2005Government of Indi
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No-I&M-25(3)/2005Planning Commissio
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‘Efforts would also be made to gr
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ecommending amendments to the Act a
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etained as a Prescribed Substance u
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OthersShri Arvind VarmaEx-Secretary
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16. Reserve Bank of India17. M/s Ji
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the RP holders in areas beyond 25 s
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Appendix ERecommendations of the Ex
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(1) Provide proximate and strategic
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technology to enter the Indian stee
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Cross-country Comparison of Mining
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Appendix F (cont.)Country Mining La
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Cross-country Comparison of Mining
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Appendix G (cont.)Country Mining le
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CountryAppendix H (Cont.)Environmen
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AustraliaIndonesia 9 4 Not specifie
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Annexure 1 (cont.)Geologicalenviron
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operations are undertaken over a fa
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B. After Rule 54 of the Mineral Con
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the Central Government to entertain
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applications, could exercise the ju
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We most humbly request that the abo
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Annexure 4The 2002Sustainability Re
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While unique in its coverage and pr
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• facilitate comparability• add
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AssuranceJust as investors look to
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The Guidelines are structured in fi
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There are many aspects relevant for
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- Issues in which community partici
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Annexure 7Royalty Accruals on Miner
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Sl.No.MineralAnnexure 8 (cont.)2003
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Annexure 91 THE SECOND SCHEDULE 1(S
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(v) Group V Coals:(a) Non-Coking Co
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23. Iron Ore:(i) Lumps:(a) with 65
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45. Tin Five per cent of London Met
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International Comparison of Royalty
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Production, Consumption, Exports, a
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National Mineral Policy 2006 - Department of Mines

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