National Mineral Policy 2006 - Department of Mines

economies flowing from the country’s comparative advantage rather than ownership ofminerals.1.36 In the Committee, there was a strong sense that the NMP would have to be revised toattune it to the current realities in the world economy in which barriers to international tradeand investment flows have been rapidly dismantled. The policy would have to provide for themining laws and practices to evolve in order to adapt to international best practices. WhileGSI and MECL need to be strengthened to enlarge their activities using state-of-the-arttechniques, much of the investment needed for exploration and mining would have to comefrom the private sector. To induce investment flows, the policy environment would have tochange. The procedures for grant of RP/LAPL/PL/ML would need to be made seamless andthe holders of these permits and licences accorded security of tenure. The policy should alsoenvisage unbundling of reconnaissance, prospecting, and mining activities to maximiseprivate investment. The policy would have to require an arm’s length to be maintainedbetween the State as a regulator and the State as a commercial entity engaged in miningactivities. While enacting legislation and drawing up rules and guidelines the states shouldensure harmony with Central laws and national policy. The policy should provide for disposalof fully prospected ore bodies through public tender/auction to the extent possible. Equallyimportantly, the policy should provide for environmental concerns and the needs of localcommunities to be fully taken into account in mining operations. While comprehensivechanges in the NMP document would have to be carefully drafted in order to reflect theseideas, the Committee agreed to the following specific textual changes in the NMP to embodysome of them:(i)Chapter 1: Preamble• In paragraph 1.2, delete the first sentence. Also delete the words ‘in times ofinternational strife’ at the end of the third sentence and add the following text as thefourth sentence:‘At the same time, it is essential that search is made in the country for more mineralresources through scientific exploration using state-of-the-art techniques, and for this21