National Mineral Policy 2006 - Department of Mines

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is mostly of low grade magnetite. Hence, India is among the few countries in the world withvery large pockets of high grade iron ore deposits.7.26 As per the United Nations Framework Classification (UNFC) system, resources aredivided into reserves and remaining resources. Reserves are further classified as provenreserves and base reserves. For discovering resources, regional exploration is required. Forconverting resources into base reserves and proven reserves, detailed exploration is required.The world’s resources and reserves are not static and have been growing over the years.According to the United States Geological Survey, the world’s reserve base of iron ore is 370billion tonnes and the reserves (ready for recovery) are 160 billion tonnes. The current rate ofconsumption being one billion tonne a year, the reserves can last for 160–370 years.Countries with steel mills can access iron ore from countries with iron ore. The steel mills ofJapan and Korea, two of the main producers of steel, access their iron ore from Australia andBrazil, two of the main producers of iron ore.7.27 Indian resources and reserves of iron ore, which have now been made compatible withthe international UNFC classification, have also not been static and have been increasing overthe years. The resource position as on 1 January 1980, 1 April 1990, and 1 April 2000 isshown in Table 7.4.Table 7.4: Iron Ore Resources and Production, 1980, 1990, and 2000(million tonnes)GradeResourcesas on1January1980Productionduring1980–90Resourcesas on1 April1990Differenceinresourcesbetween1980 and1990Produc-tionduring1990–2000Resources as on1 April 2000*Iron ore 11,469 12,197 +728 (a)Reserves: 6025(b) Remainingresources: 6881**Total: 12,906**Magnetite 6095 10,590 +4495 (a)Reserves: 286(b) Remainingresources: 10,396Total: 10,682Total 17,564 470 22,787 +5223 656 (a)Reserves: 6311(b) Remainingresources:17,277**Total: 23,588**Note: * Reassessed as per UNFC; **Includes 1480 million tonnes of prospective resourcesSource: Indian Bureau of Mines, Nagpur.Differencein resourcesbetween1990 and2000+709+92+801150
It can be observed from Table 7.4 that while resources as on 1 April 2000 were estimated at23.58 billion tonnes, between 1980 and 1990 iron ore reserves rose by 5.22 billion tonnes andbetween 1990 and 2000 by another 0.801 billion tonnes. In other words, despite havingmined 1.12 billion tonnes of iron ore, the resources increased from 17.56 billion tonnes in1980 to 23.58 billion tonnes in 2000. Thus, the new finds actually amounted to 7.15 billiontonnes during the 20-year period, averaging a little over 257 million tonnes a year. Theaverage production in India during 2000–01 to 2004–05 was around 100 million tonnes, andin 2004–05 it was 142.71 million tonnes, which implies that new discoveries have beengreater than production.7.28 The steel industry has argued that the figure of 23.58 billion tonnes should not be thebasis for determining the useable reserves, and instead mineable reserves should be taken intoaccount, as for a number of reasons all the reserves may not be accessible to mining.Particular mention is made by it of the fact that iron ore reserves occurring in dense andreserve forests, national parks, sanctuaries, and ecologically fragile areas (Western Ghats,Kudremukh, etc.) may not be available for mining. The industry has drawn attention to theproblem faced in Kudremukh where mining operations had to be closed down forenvironmental reasons.7.29 On the other hand, it was brought to the notice of the Committee that unlike Australiaand Brazil, in India there have been no exploration programmes undertaken for locating newadditional deposits of iron ore since the mid 1980s. The example of Australia shows thatadvances in the technology of exploration have led to increased reserves. The Australianresources in 1960 were established at 400 million tonnes. In 1966, the Australian miningsector opened up and vigorous exploration programmes were taken up. Between 1960 and2004, Australia produced 3.95 billion tonnes of iron ore and yet today Australia’s reserves areestimated at 40 billion tonnes. The reason is that in Australia more and more finds came up assuperior technology for exploration was used. In India, GSI and MECL are the main surveyand exploration agencies and the technology used by them is near obsolete. The technologiesused by resource companies for reconnaissance surveys, prospecting, drilling, andgeochemical analysis in laboratories have improved vastly. In this context, attention is alsodrawn to paragraph 1.13 where it has been stated that a number of iron ore belts are stillunexplored and no formal resource assessment has been attempted since the early 1980s.151
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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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conservation. There are trade-offs
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ICMM AND SDF3.8 The ICMM membership
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higher level. The basic approach is
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(i) To minimize displacement and to
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affected PAPs in the mining operati
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that a well-regulated and responsib
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(iii)Notwithstanding the above, sur
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egard, all ‘forest’ land must b
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Figure 3.1: Procedure for Processin
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should be authorised to grant or re
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formulation and appraisal of the EI
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3.41 Recognising the need to make t
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Figure 3.3: Public Hearing/NOC from
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Chapter 4Infrastructure Needs and F
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4.5 Logistics is the key to access
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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
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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 128 and 129: (iii)parameters laid down in existi
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 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
Page 178 and 179: POLICY ON BEACH SAND MINERALS7.64 B
Page 180 and 181: not contain more than 0.1 per cent
Page 182 and 183: 7.73 On 18 January 2006, the DAE no
Page 184 and 185: with the Centre is mainly to ensure
Page 186 and 187: India enterprise) reported that the
Page 188 and 189: chloride process pigment technology
Page 190 and 191: are disposed of in the mined-out ar
Page 192 and 193: directed to ensure that the AERB/AM
Page 194 and 195: would have to be carefully drafted
Page 196 and 197: ‘In coordination with the Geologi
Page 198 and 199: Exploration Licences• The current
Page 200 and 201: • The fees should be significantl
Page 202 and 203: surveys have been undertaken, the P
Page 204 and 205: automatic until the exhaustion of t
Page 206 and 207: y stating in the MMDR Act that a pr
Page 208 and 209: 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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