National Mineral Policy 2006 - Department of Mines

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No-I&M-25(3)/2005Government of IndiaPlanning CommissionAppendix ANew DelhiDated: 14-09-2005ORDERIt has been decided to set up a High Level Committee to review the National MineralPolicy and recommend possible amendments to the Mines and Minerals Development andRegulation (MMDR) Act, 1957 to give a fillip to private investment in the sector with thefollowing composition.1. Shri Anwarul Hoda, Member, Planning Commission Chairman2. Secretary, Ministry of Mines Member3. Secretary, Ministry of Steel Member4. Secretary, Ministry of Environment and Forest Member5. Secretary, Department of Shipping Member6. Secretary, Department of Road, Transport and Highways Member7. Secretary (Revenue), Ministry of Finance Member8. Smt. Adarsh Misra, Pr. Adviser, (HUD/TRP/E&F) MemberPlanning Commission9. Shri Arvind Varma, Ex Secretary (Mines) Member10. Director General, Forest Member11. Chairman, Railway Board Member12. Additional Secretary, Ministry of Mines Member13. Director General, Geological Survey of India Member14. Controller General, Indian Bureau of Mines Member15. CEO, Infrastructure Leasing & Financing Service Member16. Secretary (Mines and Geology), Govt. of Rajasthan Member17. Secretary (Mines and Geology), Govt. of Orissa Member18. Secretary (Mines and Geology) Govt. of Karnataka Member19. Secretary (Mines and Geology), Govt. of Chhattisgarh Member20. Secretary (Mines and Geology), Govt. of Jharkhand Member21. President ,Confederation of Indian Industries (CII) Member22. Secretary General,Federation of Indian Mineral Industries (FIMI) Member23. Shri L. P. Sonkar, Adviser (Minerals), Planning Commission Member24. Joint Secretary (Policy Division), Ministry of Mines Member SecretaryThe Chairman may co-opt any other Member in the Committee during the course of itsdeliberations. The Chairman may also call special invitees for providing specific inputs in theCommittee’s deliberations.2. The terms of reference of the Committee will be as follows:i) To review the National Mineral Policy 1993 and the Mines and MineralsDevelopment and Regulation (MMDR) Act, 1957 and suggest the changes needed forencouraging investment in public and private sector in exploration and exploitation ofminerals;222
ii) To review the existing procedures for granting RP/PL/ML and suggest ways for theirstreamlining and simplification;iii) To review the procedures for according clearance to mineral exploration and miningprojects under Forest (Conservation) Act 1980 and Environment (Protection) Act 1986, andsuggest ways for speeding them up;iv) To prioritize the critical infrastructure needs of the Indian mining sector and makerecommendations on ways to facilitate investment to meet these needs;v) To examine the implications of the policy of mineral rich States to make valueaddition within the State a condition for grant of mineral concession and make appropriaterecommendations in this regard;vi)To examine ways of augmenting State revenues from the mineral sector; andvii) To examine any other issue relevant for stimulating investment flows and inductingstate-of-the-art technology into the sector.3. The Committee will finalize the report by the end of December, 2005.4. The Committee will be serviced by the Mineral Unit of the Planning Commission.5. Non-officials shall be entitled to TA/DA as permissible to Grade I officers ofGovernment of India and the expenditure will be borne by the Planning Commission. TheTA/DA of Government and Public Sector officials will be borne by their respectiveorganizations.To: The Chairman and Members of the CommitteeCopy to:1. Special Secretary, Prime Minister’s Office2. Finance Secretary, Ministry of Finance,3. Member-Secretary, Planning Commission4. OSD to Deputy Chairman, Planning Commission5. PS to Minister of State for Planning & Programme Implementation(Rajeeva Ratna Shah)Member Secretary(Rajeeva Ratna Shah)Member Secretary223
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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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addition, the minimum post-issue fa
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and hence this ore should be conser
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miners distort the market for their
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7.22 The current law does not make
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is mostly of low grade magnetite. H
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Most magnetite findings are entirel
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in UK 206 kg, and in China it grew
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metres. The use of down hole drill
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7.42 Despite the fact that SME mini
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also be a consideration. However, t
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price, reduce profitability, and pu
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IMPACT ON DOMESTIC IRON ORE PRICES
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7.58 Export of iron ore fines on a
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POLICY ON BEACH SAND MINERALS7.64 B
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not contain more than 0.1 per cent
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Page 188 and 189: chloride process pigment technology
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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 198 and 199: Exploration Licences• The current
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 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
Page 252 and 253: technology to enter the Indian stee
Page 254 and 255: Cross-country Comparison of Mining
Page 256 and 257: Appendix F (cont.)Country Mining La
Page 258 and 259: Cross-country Comparison of Mining
Page 260 and 261: Appendix G (cont.)Country Mining le
Page 262 and 263: CountryAppendix H (Cont.)Environmen
Page 264 and 265: AustraliaIndonesia 9 4 Not specifie
Page 266 and 267: Annexure 1 (cont.)Geologicalenviron
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Page 270 and 271: B. After Rule 54 of the Mineral Con
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Page 274 and 275: applications, could exercise the ju
Page 276 and 277: We most humbly request that the abo
Page 278 and 279: Annexure 4The 2002Sustainability Re
Page 280 and 281: 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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