National Mineral Policy 2006 - Department of Mines

Chapter 8Conclusions and RecommendationsThis chapter lists the main conclusions and recommendations of the Committee. The numbersof the paragraphs in the preceding Chapters from which these have been drawn are indicatedin parentheses.NATIONAL MINERAL POLICY AND MMDR ACTPOLICY ISSUES• In the Committee, there was a strong sense that the NMP would have to be revised toattune it to the current realities in the world economy in which barriers to internationaltrade and investment flows have been rapidly dismantled. The policy would have toprovide for the mining laws and practices to evolve in order to adapt to internationalbest practices. While the GSI and MECL need to be strengthened to enlarge theiractivities using state-of-the-art techniques, much of the investment needed forexploration and mining would have to come from the private sector. To induceinvestment flows, the policy environment would have to change. The procedures forgrant of RP/LAPL/PL/ML would need to be made seamless and the holders of thesepermits and licences accorded security of tenure. The policy should also envisageunbundling of reconnaissance, prospecting, and mining activities to maximise privateinvestment. The policy would have to require an arm’s length to be maintainedbetween the State as a regulator and the State as a commercial entity engaged inmining activities. While enacting legislation and drawing up rules and guidelines thestates should ensure harmony with Central laws and national policy. The policyshould provide for disposal of fully prospected ore bodies through publictender/auction to the extent possible. Equally importantly, the Policy should providefor environmental concerns and the needs of local communities to be fully taken intoaccount in mining operations. While comprehensive changes in the NMP document183