National Mineral Policy 2006 - Department of Mines

an ore body to the applicant which it adjudges to be the most deserving in terms of thecriteria (a) to (d) of Section 11(3) of the Act. In such cases, the full cost of explorationby the public agency should be recovered from the lessee. [1.47]Duration of Concessions• While the total period of exploration under RP/PL or RP/LAPL may remain the same,i.e. a maximum of eight years, an RP holder who completes reconnaissance in lessthan three years and applies for and obtains a PL may be allowed to use the savedperiod in the latter concession as an additionality, so that even while the combinedduration under RP/PL remains eight years the maximum period of the PL couldstretch beyond five years for an RP holder who completes reconnaissance and obtainsa PL before his three-year RP period runs out. This kind of flexibility would not onlyaddress the need for the longer time sought for the PL but would also encourage fasteroverall exploration. The duration of the exclusive LAPL would be six years,extendable by another two years but with suitable and matching relinquishments.Since the total duration is not to exceed eight years, the duration of a LAPL appliedfor by a non-exclusive RP holder would be six years extendable by another two yearsbut the total period of eight years would be reduced by the used-up period of thethree-year RP. As far as extensions are concerned, non-exclusive RPs may beroutinely extended for the next three years in respect of areas not claimed by aLAPL/PL applicant. LAPLs may be extended beyond the two years mentioned abovebut such extension shall only be in exceptional circumstances, e.g. where an ongoingproject warrants additional work for sound technical reasons, etc. [1.50]Size of Area• The limit for a direct PL applicant should be increased from 25 sq. km to 50 sq. km.[1.57]• The maximum total area under PL in a state may be increased from the present 25 sq.km to 500 sq. km in the case of an RP holder. This would be subject to an escalatingfee structure, minimum expenditure commitment, and relinquishment of area so thatthe area held is brought down to 100 sq. km. at the end of three years. Where no aerial191