National Mineral Policy 2006 - Department of Mines

7.67 It would be seen that out of the seven BSMs, two are atomic minerals, viz. zircon andmonazite, and two minerals are of commercial importance, viz. ilmenite and garnet. Of theformer, zircon has dual use and is of relatively lesser strategic importance. Compulsions ofsecurity drive the policy towards monazite and zircon and those of economics drive thepolicy towards ilmenite and garnet. While strategic considerations should guide the policy formining zircon and monazite, commercial considerations must prevail for determining thepolicy in respect of mining of ilmenite and garnet. However, it must be recognised that sometitanium alloys are also of strategic importance in the aerospace and defence sectors.7.68 Mining and separation of BSMs is essentially a simple process by which each mineralis separated from the sand with separators, taking advantage of the difference in theirphysical, electrical, and magnetic properties. However, when a particular mineral is separatedfrom the sand it leaves behind tailings that contain the other minerals. Thus, if garnet isseparated then the tailings will contain ilmenite, zircon, and/or monazite. If ilmenite is furtherseparated the tailings will contain zircon and monazite. The problem lies in the dichotomyinherent in the need to exploit the commercially important minerals, on one hand, and theimperative to control the strategic minerals, on the other. Physically, access to one mineralentails access to all others. A complicated regulatory system is, therefore, put in place inrespect of the tailings containing the strategic minerals that remain after the commercialminerals have been extracted. This is done by the Atomic Energy Regulation Board (AERB)and the AMD, and during the presentations on the subject, the complicated and severeprocedures of AERB and AMD for licensing were cited as a distinct disincentive to beachsand mining. We return to this issue later (see paragraph 7.88).EVOLUTION OF POLICY AND LAW ON BSM7.69 The Atomic Energy Act, 1948 introduced the concept of ‘Prescribed Substances’,which referred to substances that could be used for the production or application of atomicenergy or research. In 1953, the government notified the Atomic Energy (Control ofProduction and Use) Order, 1953, according to which no person could acquire, treat, possess,use, dispose of, export, or import any Prescribed Substance except under a licence. Ilmeniteand zircon, which were earlier notified as Prescribed Substances, were again included asScheduled minerals along with monazite and rutile. Also in 1953, another order known asIlmenite (Control of Export) Order, 1953 was notified, by which export of ilmenite was putunder a licensing regime, requiring further a certificate that the ilmenite to be exported did169