National Mineral Policy 2006 - Department of Mines

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Exploration Licences• The current two-tier system of RP and PL should be replaced by a three-tier system ofRP, LAPL, and PL. [1.44]• As regards RPs, an ‘open sky’ policy should be adopted by granting non-exclusiveRPs without any preferential or automatic right to a PL but also without muchregulation, i.e. by relaxing most of the conditions mentioned in Rule 7 of the MCRand Form F-1. In fact, a fresh memorandum of understanding (MOU) and PermitForm will need to be prepared for this purpose. The ‘open sky’ RP policy wouldapply not only to areas that are greenfield areas, i.e. where no work has been done byGSI or any other public agency, but also to areas where GSI and/or RP holders havegiven up work without identifying any workable prospect for detailed exploration. Forthe first few years, non-exclusive RPs can only be granted for areas that are not heldunder current RPs, which have been granted and are operational as per the presentscheme, or for areas relinquished by existing RP holders. This will give impetus toinvestment in regional exploration where a vast amount of work still needs to be done.The only obligation on the RP holder would be to periodically file data of the workdone with appropriate lock-in arrangements for the same. Non-exclusive RPs may begranted by the state governments without prior approval of the Centre, even in respectof Scheduled minerals. [1.44]• The RP holder would be entitled to a LAPL/PL on the basis of first-in-time principleand not merely on the priority principle currently in use. This right will be automaticwith no discretion to either the state government or the Centre to refuse or hold backthe LAPL/PL thus assuring a seamless transition from RP to PL for the first-in-timenon-exclusive RP holder. However, fulfilment of the data requirement as laid down inthe MCR as a condition precedent to the grant of LAPL/PL to the RP holder wouldhave to be rigorously ensured. [1.44]• RPs for an area would not be restricted to one permit holder or one mineral. Under the‘open sky’ policy, RPs can be granted for the same area to more than one applicant on188
non-exclusive basis. Since the first-in-time principle would be applicable forconverting RPs into LAPLs/PLs, this multiple permit system will encourage RPholders to complete their regional exploration work expeditiously. [1.44]• Existing RP holders would continue to be governed by the existing law of priority forPL until the duration of the RP runs out. 1 [1.44]• The concept of an exclusive LAPL should be reintroduced. The LAPL holder wouldautomatically be able to do shallow pitting, trenching, and surface drilling, as theseare activities that go beyond regional exploration but fall short of detailed exploration.Considering that these activities would involve drawing of samples, specificprovisions would have to be made in the existing Section 3 of the MMDR Act forLAPL holders. This exclusive concession (LAPL) would be available to those whoare ready to incur heavy expenditure on intensive regional exploration work as also onhigh technologies such as electromagnetic probing and deep imaging. The MCR willspell out the conditionality relating to the work to be done and technologies to be usedand also the regional exploration data required to be submitted for getting theconcession. LAPLs may be granted for areas where no detailed exploration work hasbeen done, areas that are greenfield areas but where the applicant proposes to incurheavy expenditure and use high technology, areas relinquished by RP holders, areaswhere regional exploration data has been filed and the lock-in period is over, andareas not prospected by GSI beyond P2 level. [1.44]• A LAPL/PL can be granted directly in an RP-held area to a non-RP holder if theapplication for a LAPL/PL is filed by the non-RP holder before an application is filedby the RP holder. However, the LAPL/PL applicant will have to either (a) show basicgeological information (reconnaissance) data on the basis of which the concession issought, which means that this facility will be available only for areas relinquished byGSI/RP holders/DMGs; or (b) show the desire and ability to use superior technologythat a non-exclusive RP holder would not be inclined to use. In both cases, theapplicant must satisfy the authorities about the accuracy and genuineness of the data.[1.44]1The Committee is of the view that such prospective applicability of the changes in the law should be therule for PLs and MLs also.189
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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
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necessary, therefore, that in infra
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to the ports of Haldia and Paradip
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Connectivity of Major Ports, brough
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(iv)(v)(vi)(vii)At Visakhapatnam Po
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was of the opinion that while the m
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such an arrangement, the Ministry o
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developed, controlled, and run by s
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subject to overt and covert restric
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consideration to the end use of the
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(iii)parameters laid down in existi
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Chapter 6Augmenting State Revenues(
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the value addition question conside
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In a system of ad valorem rates of
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must provide revenues sufficient to
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Box 6.1: Methods of Valuation of Ro
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Another point to be borne in mind b
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ailable, cognisable criminal offenc
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e worked out. This should be string
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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
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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
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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
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Page 196 and 197: ‘In coordination with the Geologi
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
Page 208 and 209: departmental representative for sec
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
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Page 218 and 219: • As in the past, no environmenta
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Page 224 and 225: next three-year period as well. In
Page 226 and 227: • Rates of dead rent should be ra
Page 228 and 229: measure to provide a level playing
Page 230 and 231: • In respect of three titanium be
Page 232 and 233: No-I&M-25(3)/2005Government of Indi
Page 234 and 235: No-I&M-25(3)/2005Planning Commissio
Page 236 and 237: ‘Efforts would also be made to gr
Page 238 and 239: ecommending amendments to the Act a
Page 240 and 241: etained as a Prescribed Substance u
Page 242 and 243: OthersShri Arvind VarmaEx-Secretary
Page 244 and 245: 16. Reserve Bank of India17. M/s Ji
Page 246 and 247: 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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