National Mineral Policy 2006 - Department of Mines

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operations are undertaken over a fairly large area (as per our Act upto 10,000 squarekilometers per state); after having done reconnaissance, an entrepreneur has to dodetailed prospecting on the ground (area limit 25 square kilometers per state). Theprospecting area helps him to know the correct nature of the deposit, the grade and thesize of the deposit. After detailed prospecting, he applies for the mining lease (arealimit 10 sq. km per State)6. Sections 5, 6, 7 and 8 of MMDR Act govern the grant of RP/PL/ML and provide formaximum area and periods respectively for RP/PL/ML. Section 11 deals withpreferential rights in certain cases. Rule 63(A) of MCR is the omnibus provisiondealing with time-limits for the disposal of RP/PL/ML. It reads as follows:“Rule 63(A): The State Government shall dispose of the application for thegrant of reconnaissance permit, prospecting licence or mining lease in thefollowing period:a) Reconnaissance Permit - within six months from the date of receipt of theapplication for reconnaissance permit under rule 4A.b) Prospecting Licence - within nine months from the date of receipt of theapplication for prospecting licence under rule 10.c) Mining lease - within twelve months from the date of receipt ofapplication for mining lease under rule 22:Provided that the aforesaid periods shall be applicable only if the applicationfor reconnaissance permit, prospecting licence or mining lease, as the casemay be, is complete in all respects;Provided further that the disposal by the State Government in case ofminerals listed in the First Schedule to the Act shall mean eitherrecommendation to the Central Government for grant of the mineralconcession, or refusal to grant the mineral concession by the StateGovernment under rule 5 for reconnaissance permit, rule 12 for prospectinglicence and rule 26 for mining lease, and in all other cases, disposal shallmean either intimation regarding grant of precise area, or refusal to grantthe mineral concession under rule 5 for reconnaissance permit, rule 12 forprospecting licence and rule 26 for mining lease;Provided also that in case the State Government is not able to dispose of theapplication for grant of reconnaissance permit, prospecting licence or mininglease within the period as specified above, the reasons for the delay shall begiven in writing.”7. An entrepreneur has to apply for the grant of Reconnaissance Permit (RP),Prospecting Licence (PL) and Mining Lease (ML) to the State Government as perprocedure laid down in Mineral Concession Rules, 1960. However, if a mineral isspecified in Schedule-1 of the Act and/or if the area is in excess of the area mentionedin para 4 above, the concerned State Government has to take prior approval of the258
Central Government. The minerals mentioned in Schedule-1 are: Asbestos, Bauxite,Chrome ore, Copper ore, Gold, Iron ore, Lead, Manganese ore, Precious stones, Zinc.8. As an all India organisation, FIMI is very eager to promote investment in the miningsector. Although the Act was last revised in December, 1999 (to attract investment inmining sector) at the ground level there has been hardly any investment flow. Thebasic reason is the delay and cumbersome procedures which lead to time overruns -and the delay is at State levels. The Federation therefore wishes to approach theCentral Government to further amend the MMDR Act and simplify the proceduresand accordingly amend the MCR so that an entrepreneur does not have to wait forinterminable periods of time (left to be determined by the concerned StateGovernment) for grant of reconnaissance permit (RP), prospecting licence (PL) andmining lease (ML).The time-frames prescribed for the disposal of RP/PL/ML arepresently observed more in breach than in compliance, and the third proviso to Rule63A gives a virtual carte blanche to State Governments to dispose of applications longafter the prescribed periods, and only at the time of disposal of such applications togive written reasons for the delay: the ground reality is that most applications remainundisposed off for years, thus obviating the necessity for giving written reasons forthe delay : the occasion for giving such written reasons is thus pushed further andfurther away by simply not considering the applications.9. In the circumstances, the Federation proposes to move the Central Government forsome form of seamless conversion of RP/LAPL to PL and then to ML so that thedelays involved in each stage are minimised, and kept strictly within statutory limits -It seeks my opinion as to how this should be done.10. I am of the opinion that the remedy lies in an amendment to the revising powersconferred by Section 30 of the MMDR Act—by recasting the same. Section 30 shouldbe altered to read as follows and there needs to be added Rule 54A (after Rule 54) ofthe Mineral Concession Rules 1960.Suggested Amendments:A. Section 30: Powers of the Central Government. The Central Government may, ofits own motion or on application made within the prescribed time by an aggrievedparty:(i)(ii)revise any order made by a State Government or other authority in exercise ofthe powers conferred on it by or under this Act with respect to any mineralother than a minor mineral, orwhere no such order has been made by the State Government or otherauthority (in exercise of the powers conferred on it by or under this Act withrespect to any mineral other than a minor mineral) within the time prescribedtherefore (under Rule 63A), pass such order that it may think fit andappropriate in the circumstances: Provided that in cases covered by clause (ii)above the Central Government shall, before passing any order under thisclause, give an opportunity to the concerned State Government (or otherauthority) of being heard.259
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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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chloride process pigment technology
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are disposed of in the mined-out ar
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directed to ensure that the AERB/AM
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would have to be carefully drafted
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‘In coordination with the Geologi
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Exploration Licences• The current
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• The fees should be significantl
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surveys have been undertaken, the P
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automatic until the exhaustion of t
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y stating in the MMDR Act that a pr
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departmental representative for sec
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therefore (under Rule 63A), pass su
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• Section 12(1) of the MMDR Act s
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o The lessee should not be asked to
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again and the State Mines Departmen
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 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
Page 270 and 271: B. After Rule 54 of the Mineral Con
Page 272 and 273: the Central Government to entertain
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
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
Page 288 and 289: There are many aspects relevant for
Page 290 and 291: - Issues in which community partici
Page 292 and 293: Annexure 7Royalty Accruals on Miner
Page 294 and 295: Sl.No.MineralAnnexure 8 (cont.)2003
Page 296 and 297: Annexure 91 THE SECOND SCHEDULE 1(S
Page 298 and 299: (v) Group V Coals:(a) Non-Coking Co
Page 300 and 301: 23. Iron Ore:(i) Lumps:(a) with 65
Page 302 and 303: 45. Tin Five per cent of London Met
Page 304 and 305: International Comparison of Royalty
Page 306 and 307: Production, Consumption, Exports, a
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National Mineral Policy 2006 - Department of Mines

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