National Mineral Policy 2006 - Department of Mines

etained with relinquishments down to 500 sq. km (or less) at the end of the first three yearsand to 100 sq. km (or less) at the end of the next three years. This would be compatible withthe RP/PL duration format. Additional areas for LAPL (above 5000 sq. km) could beconsidered in very exceptional situations to be spelt out clearly in the MCR, such as forsound technical reasons or where multiple minerals are being prospected and where nopending application exists. Of course, in cases where LAPLs are granted in RP areas to RPholders, the relinquishment down to 500 sq. km will be after a three-year period that willinclude the period expended in the RP.1.55 In the presentations before the Committee, it has also been submitted that themaximum area for MLs in a state may be increased from the present 10 sq. km to 20–50 sq.km, as the development of world-class ore bodies require larger areas, especially if themineral type is such that it covers large surface areas. In international mining laws, there isgenerally no upper size limit based on cumulative lease area. The size of the ML should besuch as to allow for an area suitable for scientifically mining the entire deposit/ ore body.Therefore, ideally the maximum area held under a PL for detailed exploration should be themaximum area from which the lessee is entitled to extract. PL holders should have the rightto mine complete ore bodies explored by them in detail and found to be worthy of mining.Since the limit of the PL is being proposed at 100 sq. km at the end of the third year (out ofthe five-year period), the maximum area for a ML for a PL holder may also be kept at 100 sq.km in a state. For direct PL applicants, the limit for ML would be 50 sq. km, coterminouswith their PL area.1.56 The MMDR Act grants flexibility to government to consider cases where larger areasare sought under PL and ML over and above the prescribed limits. The government maygrant the same at its discretion. This creates uncertainty in the minds of the investors, as theyare unable to plan for prospecting and/or mining in advance during the reconnaissance/LAPLstage itself. It is necessary to remove this uncertainty in the interest of promoting prospectingand mining over as large an area as possible.1.57 In the light of the above discussions, the Committee recommends the followingchanges:(i)The limit for a direct PL applicant should be increased from 25 to 50 sq. km.37