National Mineral Policy 2006 - Department of Mines

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