National Mineral Policy 2006 - Department of Mines

fund-raising environment for prospectors and miners moves in step to bring about thegrowth of mining. [7.14]ALLOCATION OF CAPTIVE MINES TO STEEL MAKERS• On the basis of current assumptions of demand and supply of iron ore in the countryand of the growth in both, India would have enough resources to last until the end ofthe twenty-first century and there is no basis for basing policy changes on theexhaustion of these resources in the near future. However, the position would need tobe kept under review and adjustments made in it in light of the emerging situationfrom time to time. The first review should take place after a period of 10 years, i.e. in2016–17. [7.34]• Stand alone mining and captive mining should continue to co-exist in the country. Theposition should be reviewed in 2016–17 in light of the emerging situation ofestablishment of steel capacity in the country, on the one hand, and accretions to thelevel of iron ore resources in the country, on the other. A view can be taken at thattime on whether the balance of advantage in the grant of LAPL/PL/ML should bechanged in favour of steel mills. [7.47]• Through appropriate changes in Section 11(3)(d) it should be clarified that in asituation of multiple applications for grant of iron ore LAPL/PL/ML, the existinginvestment in steel plants that have exhausted their current captive mines should be aconsideration. However, the applicant must independently qualify under other criteria,including Section 11(3)(a) relating to prior experience. This is necessary to ensureefficient mining. [7.47]• Existing captive mines should be renewed if they have complied with the conditionsof the lease and the life of the steel plant so warrants taking into account existing andplanned capacities. In the case of new capacities, the recommendations of Chapter 5will apply. [7.47]• Steel making capacities already in existence on 1 July 2006 that do not have captivemines may also be given preferential allocation of adequate iron ore reserves withinthe state without the need to go through the process of tender/auction, as a one-time217