National Mineral Policy 2006 - Department of Mines
National Mineral Policy 2006 - Department of Mines National Mineral Policy 2006 - Department of Mines
with the Centre is mainly to ensure that states do not deviate from the policy laid down by theCentre in respect of these minerals which are of multi-state significance in terms of bothresource availability and their use. The 10 minerals currently listed in Part C are asbestos,bauxite, chrome ore, copper, gold, iron ore, lead, manganese ore, precious stones, and zinc.Asbestos is of environmental significance and its mining has to be severely regulated; bauxiteand iron ore are India’s main bulks and required by the steel and aluminium industry, whichare the main drivers of downstream growth and infrastructure in the country. The base metals,viz. copper, lead, and zinc, are of vital national significance and are required for basicindustry. Gold and diamonds are consumed mostly in India and mining of chrome andmanganese ore is required to be developed in a planned manner along with iron ore. As DAEhas delisted ilmenite, rutile, and leucoxene as Prescribed Substances these minerals wouldhave to be deleted from Part B of the First Schedule. However, in view of the potential oftitanium becoming a metal of the future, a case could be made for treating the three titaniumbearing minerals, viz. ilmenite, rutile, and leucoxene, on par with the existing 10 mineralslisted in Part C. For this reason, the Committee would recommend that the three titaniumbearing minerals, viz. ilmenite, rutile, and leucoxene, should be treated to be minerals ofnational importance and put in Part C of the First Schedule.Continuation of Zircon as Atomic Mineral7.77 The DAE informed the Committee in its presentations and during discussions that itproposed to remove zircon from the list of Prescribed Substances but would like it to beretained as an atomic mineral in Part B of the First Schedule of MMDR. This proposal wasbased on the need for DAE to retain control over concessions granted to prospectors andminers of zircon. Normally, only Prescribed Substances are included in Part B of the FirstSchedule. In the presentations before the Committee, DAE argued that zircon is the basicmineral used for production of nuclear grade zirconia, zirconium sponge, and various alloysof zirconium, which find extensive application as structural materials in the core of nuclearpower reactors. The advantage of retaining control over zircon is that it would enable DAE tokeep track of production of zircon in the country and thereby also derive data on itsexploitation. The Committee was not in a position to make a final recommendation on theissue of the future status of zircon in relation to the First Schedule and came to the conclusionthat the matter should be resolved through the process of interdepartmental consultations.Value Addition to Ilmenite174
7.78 The technology for conversion of ilmenite into titanium dioxide and titanium metaland alloys is not widely available, and is in fact closely held. As will be seen from Table 7.6,India is one of the few countries with large deposits of ilmenite along with the other resourcecountries such as Australia, South Africa, and Canada.Table 7.6: World Ilmenite ReservesCountryReserves(million tonnes)Share of total(%)India 461.37 30.42Norway 244 16.13Canada 200 13.22Australia 180 11.90South Africa 162 10.71China 142 9.39USA 82.2 5.42Others 42 2.81Total 1512 100Source: As per presentation made by Transworld Garnet (India) Pvt. Ltd before High LevelCommittee.The issue is whether to allow mining of ilmenite and permit free exports of the mineral or toinsist on value addition by way of conversion to titanium dioxide and titanium metals andalloys within the country. The issue of value addition in respect of ilmenite is not verydifferent from that of iron ore and bauxite. Ilmenite is required for titanium just as iron ore isrequired for steel and bauxite for aluminium. The matter has been dealt with in Chapter 5 andalso, to some extent, in paragraphs 7.15 and 7.16 above on captive mining. In the abovediscussions, the Committee has concluded that while some additional weightage might begiven to value adders when there are multiple applications, including applications from valueadders, minerals should not be kept under the ground awaiting an application from a valueadder. Here the question to be examined is whether there are any distinguishing features thatrequire special treatment for ilmenite as the main raw material for titanium.7.79 The two end-use segments of ilmenite feedstock are: (i) titanium dioxide for pigmentproduction; and (ii) titanium sponge production for metal and alloys. The annual growth rateof the pigment industry is about 3 per cent and of titanium sponge is about 0.8 per cent. Thedemand and supply figures show that the gap in supply and demand of pigment and titaniumsponge may not accommodate too many players in the long run to manufacture theseproducts either at Indian or at global levels. Currently, the estimated global consumption ofpigment is about 5 million tonnes, valued at US$ 8 billion, and that for sponge is about70,000 tonnes, valued at US$ 2.66 billion. A survey by MECON Limited (a Government of175
- 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
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- Page 144 and 145: e worked out. This should be string
- Page 146 and 147: 7.3 Considering the high-risk natur
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- 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
- 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 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
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- Page 200 and 201: • The fees should be significantl
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- Page 206 and 207: y stating in the MMDR Act that a pr
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- Page 210 and 211: therefore (under Rule 63A), pass su
- Page 212 and 213: • Section 12(1) of the MMDR Act s
- Page 214 and 215: o The lessee should not be asked to
- Page 216 and 217: again and the State Mines Departmen
- Page 218 and 219: • As in the past, no environmenta
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- Page 222 and 223: government to the applicants who ar
- Page 224 and 225: next three-year period as well. In
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- Page 228 and 229: measure to provide a level playing
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- Page 232 and 233: No-I&M-25(3)/2005Government of Indi
with the Centre is mainly to ensure that states do not deviate from the policy laid down by theCentre in respect <strong>of</strong> these minerals which are <strong>of</strong> multi-state significance in terms <strong>of</strong> bothresource availability and their use. The 10 minerals currently listed in Part C are asbestos,bauxite, chrome ore, copper, gold, iron ore, lead, manganese ore, precious stones, and zinc.Asbestos is <strong>of</strong> environmental significance and its mining has to be severely regulated; bauxiteand iron ore are India’s main bulks and required by the steel and aluminium industry, whichare the main drivers <strong>of</strong> downstream growth and infrastructure in the country. The base metals,viz. copper, lead, and zinc, are <strong>of</strong> vital national significance and are required for basicindustry. Gold and diamonds are consumed mostly in India and mining <strong>of</strong> chrome andmanganese ore is required to be developed in a planned manner along with iron ore. As DAEhas delisted ilmenite, rutile, and leucoxene as Prescribed Substances these minerals wouldhave to be deleted from Part B <strong>of</strong> the First Schedule. However, in view <strong>of</strong> the potential <strong>of</strong>titanium becoming a metal <strong>of</strong> the future, a case could be made for treating the three titaniumbearing minerals, viz. ilmenite, rutile, and leucoxene, on par with the existing 10 mineralslisted in Part C. For this reason, the Committee would recommend that the three titaniumbearing minerals, viz. ilmenite, rutile, and leucoxene, should be treated to be minerals <strong>of</strong>national importance and put in Part C <strong>of</strong> the First Schedule.Continuation <strong>of</strong> Zircon as Atomic <strong>Mineral</strong>7.77 The DAE informed the Committee in its presentations and during discussions that itproposed to remove zircon from the list <strong>of</strong> Prescribed Substances but would like it to beretained as an atomic mineral in Part B <strong>of</strong> the First Schedule <strong>of</strong> MMDR. This proposal wasbased on the need for DAE to retain control over concessions granted to prospectors andminers <strong>of</strong> zircon. Normally, only Prescribed Substances are included in Part B <strong>of</strong> the FirstSchedule. In the presentations before the Committee, DAE argued that zircon is the basicmineral used for production <strong>of</strong> nuclear grade zirconia, zirconium sponge, and various alloys<strong>of</strong> zirconium, which find extensive application as structural materials in the core <strong>of</strong> nuclearpower reactors. The advantage <strong>of</strong> retaining control over zircon is that it would enable DAE tokeep track <strong>of</strong> production <strong>of</strong> zircon in the country and thereby also derive data on itsexploitation. The Committee was not in a position to make a final recommendation on theissue <strong>of</strong> the future status <strong>of</strong> zircon in relation to the First Schedule and came to the conclusionthat the matter should be resolved through the process <strong>of</strong> interdepartmental consultations.Value Addition to Ilmenite174
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