National Mineral Policy 2006 - Department of Mines
National Mineral Policy 2006 - Department of Mines National Mineral Policy 2006 - Department of Mines
‘A thrust is to be given to exploitation of mineral resources in which the country iswell endowed so that the needs of domestic industry are fully met, keeping in mindpresent and future needs, while at the same time exploiting the external markets forthe minerals.’Mining Equipment and Machinery• Replace the existing text of paragraph 7.6 by the following:‘Use of equipment and machinery that improve the efficiency, productivity, andeconomics of mining operations and safety and health of the persons in the mines andsurrounding areas shall be encouraged.’Linkages• Replace the first two sentences of paragraph 7.8 by the following:‘Mining contributes to the generation of wealth and creation of employmentindependently and should therefore be treated as an economic activity in its own rightand not merely as an ancillary activity of the manufacturing industry. Domesticprocessing industry receives supplies of mineral resources produced by the miningindustry at market prices prevailing from time to time. In order to be assured ofuninterrupted supply of the mineral raw material from domestic sources, the userindustry should develop long-term linkages with the mineral producing units.’Infrastructural Facilities and Regional Development• Insert a new sub-paragraph in paragraph 7.10 to read as follows:‘For the improvement of infrastructural facilities, particularly transport facilities, inmining areas, financial resources available with government should be leveraged tothe maximum extent possible through recourse to public–private partnershiparrangements, wherever possible.’Financial Support for Mining• In paragraph 7.11, replace the first sentence of the second sub-paragraph by thefollowing:24
‘Induction of foreign technology and foreign participation in exploration and miningshall be encouraged.’• Delete the remaining part of the second sub-paragraph and the third and fourth subparagraphsaltogether.Small Deposits• Add the following text at the end of the paragraph 7.12:‘Efforts would also be made to grant mineral concessions to consortia of small-scaleminers and users who are otherwise qualified, for a cluster of small deposits so thatthe benefits of economies of scale are reaped.’STATUTORY ISSUES1.37 It is evident that the premises on which the last NMP was based have changedconsiderably and the changes proposed in the policy need to be reflected adequately in theMMDR Act and the Rules, viz. MCR, and MCDR. The critical issues raised by the investorspertaining to the current mining law are summarised as follows:• Lack of clarity in the law and rules on such issues as the basis for grant or denialof concessions;• Impediments currently obtaining in the law and rules such as transfer restrictionconditions;• Conflicting laws at the federal and state levels, giving a confusing picture toinvestors, e.g. states levying their own cess over and above royalties imposed bythe MMDR Act, MCR, and MCDR;• Uncertainty of tenure arising out of the non-seamless nature of moving over to thenext stage and discretionary rules for termination of concessions;• Non-viable conditionality imposed outside the provisions of the legal frameworkestablished by the MMDR Act, MCR, and MCDR, such as value addition;25
- Page 2 and 3: National Mineral PolicyReport of th
- Page 4 and 5: ContentsAcronyms...................
- Page 6 and 7: Annexure 5: Using the GRI Guideline
- Page 8 and 9: GDP gross domestic productGIS Geogr
- Page 10 and 11: UNFCUSVATWCUUnited Nations Framewor
- Page 12 and 13: Introduction1. The Government of In
- Page 14 and 15: issues relate to fund raising by pr
- Page 16 and 17: termination of MLs, lowering of cei
- Page 18 and 19: • In the case of large mining ope
- Page 20 and 21: investment. The work done by GSI co
- Page 22 and 23: mainly for minerals of base metals
- Page 24 and 25: 1.21 This situation has changed dra
- Page 26 and 27: absent. A study by the United Natio
- Page 28 and 29: example, a mining major may outsour
- Page 30 and 31: would otherwise remain unexploited
- Page 32 and 33: the policy environment must continu
- Page 36 and 37: In reviewing the MMDR Act, it is ne
- Page 38 and 39: permissible activities in order to
- Page 40 and 41: (i)(ii)(iii)(iv)The current two-tie
- Page 42 and 43: per plan should be significantly hi
- Page 44 and 45: Duration of Concessions1.48 In the
- Page 46 and 47: 10,000 sq. km in a state. This has
- Page 48 and 49: (ii)(iii)(iv)The maximum total area
- Page 50 and 51: e obviated if the lease deed is exh
- Page 52 and 53: elinquishment of areas by the lesse
- Page 54 and 55: to give priority to the prior appli
- Page 56 and 57: (v)(vi)(vii)Rules should be prescri
- Page 58 and 59: esponsible for all rights, liabilit
- Page 60 and 61: ut also the revenue generated from
- Page 62 and 63: government at the Secretariat. A le
- Page 64 and 65: Secretary. If the Directorate is in
- Page 66 and 67: (i) All applications for mineral co
- Page 68 and 69: application. A similar website shou
- Page 70 and 71: concerned State Government (or othe
- Page 72 and 73: Further, Rule 7D of the MCR specifi
- Page 74 and 75: mission mode through, inter alia, t
- Page 76 and 77: Chapter 3Forest Conservation and En
- Page 78 and 79: conservation. There are trade-offs
- Page 80 and 81: ICMM AND SDF3.8 The ICMM membership
- Page 82 and 83: higher level. The basic approach is
‘Induction <strong>of</strong> foreign technology and foreign participation in exploration and miningshall be encouraged.’• Delete the remaining part <strong>of</strong> the second sub-paragraph and the third and fourth subparagraphsaltogether.Small Deposits• Add the following text at the end <strong>of</strong> the paragraph 7.12:‘Efforts would also be made to grant mineral concessions to consortia <strong>of</strong> small-scaleminers and users who are otherwise qualified, for a cluster <strong>of</strong> small deposits so thatthe benefits <strong>of</strong> economies <strong>of</strong> scale are reaped.’STATUTORY ISSUES1.37 It is evident that the premises on which the last NMP was based have changedconsiderably and the changes proposed in the policy need to be reflected adequately in theMMDR Act and the Rules, viz. MCR, and MCDR. The critical issues raised by the investorspertaining to the current mining law are summarised as follows:• Lack <strong>of</strong> clarity in the law and rules on such issues as the basis for grant or denial<strong>of</strong> concessions;• Impediments currently obtaining in the law and rules such as transfer restrictionconditions;• Conflicting laws at the federal and state levels, giving a confusing picture toinvestors, e.g. states levying their own cess over and above royalties imposed bythe MMDR Act, MCR, and MCDR;• Uncertainty <strong>of</strong> tenure arising out <strong>of</strong> the non-seamless nature <strong>of</strong> moving over to thenext stage and discretionary rules for termination <strong>of</strong> concessions;• Non-viable conditionality imposed outside the provisions <strong>of</strong> the legal frameworkestablished by the MMDR Act, MCR, and MCDR, such as value addition;25
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