National Mineral Policy 2006 - Department of Mines

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