National Mineral Policy 2006 - Department of Mines

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surveys have been undertaken, the PL area would be 50 sq. km instead of the current25 sq. km. [1.57]• The LAPL may be granted for an area of 5000 sq. km for eight years, withrelinquishment down to 500 sq. km after the fifth year and 100 sq. km after six years.This will bring the LAPL area on par with the RP/PL area. The LAPL will be subjectto severe conditionality in terms of work to be done and expenditures to be incurredon an escalating scale with appropriate penalties for failure. For LAPLs in RP areas,the relinquishments will be down to 500 sq. km after three years of the total RP/LAPLduration of eight years and down to 100 sq. km after six years. [1.57]• For LAPL/PL holders, the maximum area of MLs in a state may be increased from thepresent 10 sq. km up to the area held in the LAPL/PL at the time of applying for theML. This means that a LAPL/PL holder would be entitled to MLs for the entire areaof 100 sq. km in a state, which is the limit to which the LAPL/PL area is to be broughtdown at the end of the third year of the five-year PL or the sixth year of an eight-yearLAPL. For the PL holder who holds only 50 sq. km. in his PL, the maximum arealimit for a ML should remain at 50 sq. km only. [1.57]Security of Tenure• RP (non-exclusive) holders should have an automatic right to a PL on first-come-firstservedbasis, provided they fulfil the requirement for submission of data and satisfyall eligibility conditions. The provision of preferential right to existing RP holdersshould, however, continue until the duration of the RP runs out. [1.60]• Where a LAPL/PL has been granted in respect of a land the licensee shall have theexclusive right to obtain a ML in respect of that land over any other person onfulfilling the requisite conditions under the Act or as prescribed under the rules and asincorporated in the terms and conditions of the lease. [1.60]• In Section 4A(1), the phrases ‘of regulation of mines and mineral development’, ‘orfor conservation of mineral resources’, and ‘such other purposes, as the Central192
government may deem fit’ should be deleted and the words ‘in the interest of nationalsecurity and public works’ added. [1.60]• In Section 31, the sweeping powers given to the Central government forcircumventing any of the provisions of the MCR and MCDR, and that too in a nontransparentmanner, need to be circumscribed, so that intervention of Centralgovernment affecting security of tenure of the concessionaire, if at all necessary, ispossible only in narrowly defined circumstances. It is not enough for the Centralgovernment to record the reasons in writing. [1.60]• Rule 26(1) of MCR, which gives the state government the authority to refuse anapplication for a ML, should be amended to ensure that it does not come in the way ofa smooth and seamless transfer from one concession to another. [1.60]• Rule 27(1)(b) should be amended to give an automatic right to the miner to mineassociated minerals discovered in the course of mining subject to a suitable fee beingpaid and the mining plan being amended with the approval of IBM. [1.60]• Rules 27(1)(m) and 27(3) of MCR, giving the authority to the state to pre-emptminerals and put restrictive conditions, should be deleted. The lease deed form shouldbe exhaustive and should include all minerals and associated minerals for whichapplicants may have applied and to which they may be entitled. The form should alsocontain additional conditions imposed by the state governments on captive miners andvalue adders. [1.60]• Rule 34 of MCR, authorising the state to reduce or exclude an area from theentitlement of a PL holder to a ML, should be deleted except in the case of specifiedpublic purposes. [1.60]• Mineral concession holders should have the right to renewal of the concession if theyhave met the obligations of his concession. As the term ‘renewal’ is used to meanfresh grant in judicial parlance, the word ‘extension’ should be used instead of‘renewal’ wherever it occurs in the Act or Rules. Extension of the ML should be193
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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
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Table 7.2: Minimum Listing Requirem
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(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
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 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
Page 194 and 195: would have to be carefully drafted
Page 196 and 197: ‘In coordination with the Geologi
Page 198 and 199: Exploration Licences• The current
Page 200 and 201: • The fees should be significantl
Page 204 and 205: automatic until the exhaustion of t
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
Page 248 and 249: Appendix ERecommendations of the Ex
Page 250 and 251: (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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