National Mineral Policy 2006 - Department of Mines

7.73 On 18 January 2006, the DAE notified the new list of Prescribed Substances. FourBSMs, viz. ilmenite, rutile, leucoxene, and zircon, will cease to be Prescribed Substancesfrom the date the MMDR Act is revised to fall in line with the new policy or from 1 January2007, whichever is earlier. The MMDR Act contains the First Schedule, which is a list ofspecified minerals under Sections 4(3), 5(1), 7(2), and 8(2). The Schedule is divided intothree Parts: A, B, and C. Part B contains a list of ‘Atomic Minerals’. This list corresponds tothe list of Prescribed Substances under the Atomic Energy Act although the linkage is still tobe formalised. Once the four minerals mentioned above are deleted from the list of PrescribedSubstances, they will need to be deleted from Part B of the First Schedule as well. The DAEproposed that three of the four minerals, viz. ilmenite, rutile, and leucoxene, should be shiftedfrom Part B to Part C of the First Schedule, which means that they will not be atomicminerals any longer but will be treated as Scheduled major minerals, for which the approvalof the Ministry of Mines is required while granting concessions. The DAE also proposed thatthe fourth mineral, viz. zircon, should continue to be categorised as an atomic mineral underthe MMDR Act even though it is removed from the list of Prescribed Substances under theAtomic Energy Act. The implication is that mining concessions for zircon will be grantedonly on the recommendation of the DAE. The DAE further recommends that the policy ofgranting concessions in respect of ilmenite should continue to be restrictive in that onlyIndian companies should be allowed to mine ilmenite and foreign companies should not beallowed to mine ilmenite unless they also agree to add value. The DAE would like to see atitanium industry established in India so that titanium dioxide and titanium sponge startgetting produced in the country. The technology for making titanium is stated to be closelyheld and the thinking is that the raw material, viz. ilmenite, should be used to bring thattechnology to India.ISSUES RELATED TO BSM POLICY7.74 In the light of the above, the issues to be discussed and determined for arriving at asuitable BSM policy and changes required in the mining laws and rules are as follows:(i) The implications of shifting titanium bearing minerals (ilmenite, rutile, andleucoxene) to Part C of the First Schedule of the MMDR Act as recommendedby DAE;(ii) The implications of continuing zircon as an atomic mineral although it is nolonger a Prescribed Substance;172