National Mineral Policy 2006 - Department of Mines

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Duration of Concessions1.48 In the MMDR Act, the durations for which RPs, PLs, and MLs may be granted orrenewed are as follows:7. (1) The period for which [a reconnaissance permit or prospecting licence] may be granted shall notexceed three years.(2) A prospecting licence shall, if the State Government is satisfied that a longer period is required toenable the licensee to complete prospecting operations be renewed for such period or periods as thatGovernment may specify:Provided that the total period for which a prospecting licence is granted does not exceed five years;8. (1) The maximum period for which a mining lease may be granted shall not exceed thirty years:Provided that the minimum period for which any such mining lease may be granted shall not be less thantwenty years.(2) A mining lease may be renewed for a period not exceeding twenty years.1.49 At present, the maximum period allowed for exploration is eight years, of which threeyears is for reconnaissance (RP) and five years is for prospecting (PL). It has beenrepresented to the Committee that five years is not enough for doing proper detailedexploration work, especially when dealing with deeper or hidden ore bodies. This is adisincentive as the PL holder runs the risk of a wasted investment, as he has to stop work atthe end of the PL period even if more exploration is warranted. In a study into the prospectingrecords of 52 mines worldwide, the average length of time required to explore for anddevelop a mine was found to be in excess of 10 years. 7 Investors in exploration have,therefore, been requesting that the initial term of the RP be increased to five years, with theright to apply for an extension for a further period of five years. However, the concern hasalso been expressed that an unduly long RP could lead to an area being held up withoutserious exploration work being done. Besides, mine development is expected to be done as apart of the ML rather than PL and hence a period of 10 years may not be warranted.1.50 In view of the above, the Committee recommends that while the total period ofexploration under RP/PL or RP/LAPL may remain the same, i.e. a maximum of eight years,7 James Otto and John Cordes (2002), The Regulation of Mineral Enterprises: A Global Perspective onEconomics, Law and Policy, Rocky Mountain Mineral Law Foundation 9191, Sheriden BLVD Street 2003,Westminster, CO 80031, USA.34
an RP holder who completes reconnaissance in less than three years and applies for andobtains a PL may be allowed to use the saved period in the latter concession as anadditionality so that even while the combined duration under RP/PL remains eight years themaximum period of the PL could stretch beyond five years for an RP holder who completesreconnaissance and obtains a PL before his three-year RP period runs out. This kind offlexibility would not only address the need for the longer time sought for the PL but wouldalso encourage faster overall exploration. The duration of the exclusive LAPL would be sixyears, extendable by another two years but with suitable and matching relinquishments asmentioned in paragraph 1.54 below. Since the total duration is not to exceed eight years, theduration of a LAPL applied for by a non-exclusive RP holder would be six years extendableby another two years but the total period of eight years would be reduced by the used-upperiod of the three-year RP. As far as extensions are concerned, non-exclusive RPs may beroutinely extended for the next three years in respect of areas not claimed by a LAPL/PLapplicant. LAPLs may be extended beyond the two years mentioned above but suchextension shall only be in exceptional circumstances, e.g. where an ongoing project warrantsadditional work for sound technical reasons, etc.Size of Area1.51 The maximum area for which a RP, PL, or ML may be granted in a state at presentunder the MMDR Act is as follows:6. (1) No person shall acquire in respect of any mineral or prescribed group of associated minerals [in aState] –(a) one or more prospecting licenses covering a total area of more than twenty-five square kilometres; or[(aa) one or more reconnaissance permit covering a total area of ten thousand square kilometres:Provided that the area granted under a single reconnaissance permit shall not exceed five thousand squarekilometres; or];(b) one or more mining leases covering a total area of more than ten square kilometres;Provided that if the Central Government is of opinion that in the interests of the development of anymineral, it is necessary so to do, it may, for reasons to be recorded by it, in writing, permit any person toacquire one or more prospecting licences or mining leases covering an area in excess of the aforesaid totalarea;1.52 The concept of RP was introduced to facilitate mining companies to engage in largescaleregional exploration of minerals and, therefore, the maximum area allowed under RP is35
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 34 and 35: ‘A thrust is to be given to explo
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 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
Page 84 and 85: (i) To minimize displacement and to
Page 86 and 87: affected PAPs in the mining operati
Page 88 and 89: that a well-regulated and responsib
Page 90 and 91: (iii)Notwithstanding the above, sur
Page 92 and 93: egard, all ‘forest’ land must b
Page 94 and 95:
Figure 3.1: Procedure for Processin
Page 96 and 97:
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
Page 108 and 109:
Table 4.1: Mineral Production in In
Page 110 and 111:
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
Page 124 and 125:
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
Page 134 and 135:
In a system of ad valorem rates of
Page 136 and 137:
must provide revenues sufficient to
Page 138 and 139:
Box 6.1: Methods of Valuation of Ro
Page 140 and 141:
Another point to be borne in mind b
Page 142 and 143:
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
Page 148 and 149:
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
Page 158 and 159:
7.22 The current law does not make
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is mostly of low grade magnetite. H
Page 162 and 163:
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
Page 176 and 177:
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
Page 206 and 207:
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
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• As in the past, no environmenta
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oad and rail, and lack of long-term
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government to the applicants who ar
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next three-year period as well. In
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• Rates of dead rent should be ra
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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
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‘Efforts would also be made to gr
Page 238 and 239:
ecommending amendments to the Act a
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etained as a Prescribed Substance u
Page 242 and 243:
OthersShri Arvind VarmaEx-Secretary
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16. Reserve Bank of India17. M/s Ji
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the RP holders in areas beyond 25 s
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Appendix ERecommendations of the Ex
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(1) Provide proximate and strategic
Page 252 and 253:
technology to enter the Indian stee
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Cross-country Comparison of Mining
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Appendix F (cont.)Country Mining La
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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
Page 272 and 273:
the Central Government to entertain
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applications, could exercise the ju
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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
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(v) Group V Coals:(a) Non-Coking Co
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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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