National Mineral Policy 2006 - Department of Mines

e obviated if the lease deed is exhaustive and includes all minerals andassociated minerals.(vi) Rule 27(3) of MCR is discretionary in that it allows the states/Centre to putrestrictive conditions in MLs, which have not been spelt out in advance. Aprospector needs to know the terms and conditions on which a ML will begranted to him before he starts investing in prospecting operations. Section27(2) should be enough to take care of environmental and other concerns listedthere. The ability of the government to impose additional obligations in thelease without specifying them in advance means that applicants would notknow the obligations imposed upon them until they obtain the lease.(vii) Rule 34 of MCR, which empowers the state government to exclude or reduceany area from the licensed area, also contributes to uncertainty arising out of thearbitrary powers of the state government. Concessionaires who may haveinvested large sums in a risky venture on the understanding that they would beallowed to mine an ore body discovered and identified during exploration areexposed to the uncertainty of the area being reduced or a portion excluded.1.60 The Committee was unanimous on the point that providing security of tenure to theinvestor was a precondition for stimulating investment in mining activity. Investors shouldhave the guarantee that if in the course of exploration a deposit is discovered, the exclusiveright to mine it would vest with them and that they would not be deprived of it under somepretext or the other. Although the MMDR Act provides for a preferential right to the PLholder this provision is not sufficient to assure investors of security of tenure because it isqualified by a number of discretionary powers of the state, which make the preferenceillusory. In view of the above, the Committee recommends that:(i)(ii)RP (non-exclusive) holders should have an automatic right to a PL on firstcome-first-servedbasis, provided they fulfil the requirement for submission ofdata and satisfy all eligibility conditions. The provision of preferential right toexisting RP holders should, however, continue until the duration of the RP runsout.Where a LAPL/PL has been granted in respect of a land the licensee shall havethe exclusive right to obtain a ML in respect of that land over any other person40