National Mineral Policy 2006 - Department of Mines

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ecommending amendments to the Act and Rules respectively. The representatives ofthe states also suggested that the reservation provisions in paragraph 1.72 for PSUsfor exploration and mining should be retained after modifying them so as to limittheir scope to specified purposes such as to meet the requirement of SMEs for rawmaterials.13. Additional Chief Secretary, Government of Chhattisgarh and other representatives ofthe state governments invited attention to recommendations regarding ‘Adherence totime schedule for consideration of applications for RP/LAPL/PL and ML and in theevent of failure of the state government to take a decision within the time frameenvisaged in Rule 63A’. It was argued that provision should also be made in the Actand the Rules to safeguard against situations in which the Centre did not takedecision within the prescribed time frame. After a brief discussion it was agreed torecommend that ‘necessary changes should be made in the laws to provide that wherethe Centre does not grant prior approval in cases referred to it by the stategovernment within the specified period, such prior approval should be deemed tohave been granted. Further, in the applications received under Section 30 of the Actin a situation in which no order has been made by the state government, there shouldbe a time limit imposed on the Centre for disposal of the application within such timelimit. A solution should also be found to ensure that the Centre adheres to the timelimit.14. Representative of CII suggested that under Value Addition, in deciding amongmultiple applicants for direct PL or direct LAPL it would be better to use the word‘preference’ may be given by the state government in place of ‘additional weight’.The suggestion was accepted.15. Secretary (Steel and Mines), Government of Orissa and other representatives ofstates put forward the view that while the general rule could be that ore bodies fullyprospected by public agencies would be auctioned as envisaged in chapter 1, the stategovernments should have the right to waive the auction procedures in cases in whichthe applicant proposed to set up the industry based on the mineral within the state.The suggestion was accepted.228
16. The representative of CII observed that it was not enough to consider allocation ofcaptive mines for existing steel plants. New steel plants should also be taken care ofthrough allocation of captive mines. Secretary (Mines) mentioned that the mainproblem of allocation of captive mines was in respect of existing plants as the newcapacities would be taken care of under new dispensation. Secretary General (FIMI)stated that steel plants without captive mines had been competing with the plantshaving captive mines. He suggested that both the groups should have similaropportunities. The issue of captive mines was deliberated at length and it was agreedthat (i) renewal of mining lease should be approved only when all the conditions hadbeen complied with; (ii) captive iron ore mines allotted to steel makers were only fortheir own use and they should not sell the ore either in India or abroad; (iii) standalone mining and captive mining should continue to co-exist in the country, and (iv)the position should be revisited after 10 years.17. The issue of current export regime for iron ore was also discussed at length by theMembers of the Committee and it was decided that by way of ample precaution onlyan export duty needed to be levied on exports of iron ore in lump form with Fecontent 65 per cent and above and the current licensing and canalisation systemshould be discontinued.18. Secretary (Mines) briefly mentioned that as far as recommendations regardinginfrastructure needs and their financing were concerned each state governmentshould set up a Mineral Development Fund by earmarking 15 per cent of the annualroyalty collections for the Fund. The Central government should also make matchingcontribution to the Mineral Development Fund of each state of an equal amount fromthe Plan funds, every year for the duration of the XI Plan. There was generalagreement on these recommendations.19. Additional Secretary (Department of Atomic Energy), drew attention to ’mining ofbeach sand minerals’ and stated that Zircon occurred in close association withMonazite and both Zircon and Monazite had strategic importance. Zircon is requiredfor nuclear reactors and Zirconium with hafnium content less than 1 part to 500 partsof Zirconium by weight, i.e. less than 2000 ppm in the form of metal, its alloys,compounds, manufactures thereof, waste or scrap of any of the foregoing had been229
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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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7.73 On 18 January 2006, the DAE no
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with the Centre is mainly to ensure
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India enterprise) reported that the
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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
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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 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 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
Page 268 and 269: operations are undertaken over a fa
Page 270 and 271: B. After Rule 54 of the Mineral Con
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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
Page 282 and 283: • facilitate comparability• add
Page 284 and 285: AssuranceJust as investors look to
Page 286 and 287: 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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