National Mineral Policy 2006 - Department of Mines

y stating in the MMDR Act that a prospecting licensee has the right to transfer hislicence to a qualified entity. A single approving authority should be named. The Rulesshould provide in a single section a detailed description of the procedure,requirements that must be met, the circumstances under which an application can bedenied, and a requirement for the approving authority to give reasons for denying anapplication. The Rules already provide that a transferee assume and be responsible forall rights, liabilities, and duties incurred by the transferor under the PL prior to thetransfer. [1.71]• What applies to PLs also applies to MLs that have been obtained by PL holders. Rule37(2) of MCR will need to be modified and the negative approach of the entire Rule37 rectified insofar as such licences obtained by prospecting companies areconcerned. The third proviso in Rule 37(2) of MCR will need to be deleted. [1.72]Reservation Provisions and Special Powers• The emphasis on both public and private sector investment in exploration, especiallyregional exploration or reconnaissance, needs to continue. However, looking at theneed for private investment in these activities it is necessary that PSUs of the Centraland state governments be treated at par with private sector companies in the grant ofmineral concessions. The reservation provisions for PSUs for exploration and miningshould be modified so as to limit the scope of such reservations to specified purposessuch as to meet the requirement of SMEs for raw material. Besides, promotional workat public expense need not be undertaken if the private sector is willing to spend andinvest on the same work. [1.76]• Where detailed exploration/prospecting is undertaken by state or Centralorganisations such as GSI, MECL, or state-level Directorates as promotional work(i.e. at public expense) and mining based on such prospecting is to be undertaken by athird party, then such areas/blocks should be farmed out for mining on atender/auction basis. This would not only ensure that transparency is maintained, butalso the revenue generated from such auctions would help augment the resources ofthe states. This would also help small miners (SME sector) who do not have sufficient196