National Mineral Policy 2006 - Department of Mines
National Mineral Policy 2006 - Department of Mines 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
on fulfilling the requisite conditions under the Act or as prescribed under theRules and as incorporated in the terms and conditions of the lease.(iii) In Section 4A(1), the phrases ‘of regulation of mines and mineraldevelopment’, ‘or for conservation of mineral resources’, and ‘such otherpurposes, as the Central government may deem fit’ should be deleted and thewords ‘in the interest of national security and public works’ added.(iv) In Section 31, the sweeping powers given to the Central government forcircumventing any of the provisions of the MCR and MCDR, and that too in anon-transparent manner, need to be circumscribed, so that intervention of theCentral government affecting security of tenure of the concessionaire, if at allnecessary, is possible only in narrowly defined circumstances. It is not enoughfor the Central government to record the reasons in writing.(v) Rule 26(1) of MCR, which gives the state government the authority to refuse anapplication for a ML, should be amended to ensure that it does not come in theway of a smooth and seamless transfer from one concession to another.(vi) Rule 27(1)(b) should be amended to give an automatic right to the miner tomine associated minerals discovered in the course of mining subject to asuitable fee being paid and the mining plan being amended with the approval ofIBM.(vii) Rules 27(1)(m) and 27(3) of MCR, giving the authority to the state to pre-emptminerals and put restrictive conditions, should be deleted. The lease deed formshould be exhaustive and should include all minerals and associated mineralsfor which applicants may have applied and to which they may be entitled. Theform should also contain additional conditions imposed by the stategovernments on captive miners and value adders.(viii) Rule 34 of MCR, authorising the state to reduce or exclude an area from theentitlement of a PL holder to a ML, should be deleted except in the case ofspecified public purposes.(ix) Mineral concession holders should have the right to renewal of the concessionif they have met the obligations of the concession. As the term ‘renewal’ is usedto mean fresh grant in judicial parlance, the word ‘extension’ should be usedinstead of ‘renewal’ wherever it occurs in the Act or Rules. Extension of theML should be automatic until the exhaustion of the deposit or voluntary41
- 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 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 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
- Page 98 and 99: formulation and appraisal of the EI
on fulfilling the requisite conditions under the Act or as prescribed under theRules and as incorporated in the terms and conditions <strong>of</strong> the lease.(iii) In Section 4A(1), the phrases ‘<strong>of</strong> regulation <strong>of</strong> mines and mineraldevelopment’, ‘or for conservation <strong>of</strong> mineral resources’, and ‘such otherpurposes, as the Central government may deem fit’ should be deleted and thewords ‘in the interest <strong>of</strong> national security and public works’ added.(iv) In Section 31, the sweeping powers given to the Central government forcircumventing any <strong>of</strong> the provisions <strong>of</strong> the MCR and MCDR, and that too in anon-transparent manner, need to be circumscribed, so that intervention <strong>of</strong> theCentral government affecting security <strong>of</strong> tenure <strong>of</strong> the concessionaire, if at allnecessary, is possible only in narrowly defined circumstances. It is not enoughfor the Central government to record the reasons in writing.(v) Rule 26(1) <strong>of</strong> MCR, which gives the state government the authority to refuse anapplication for a ML, should be amended to ensure that it does not come in theway <strong>of</strong> a smooth and seamless transfer from one concession to another.(vi) Rule 27(1)(b) should be amended to give an automatic right to the miner tomine associated minerals discovered in the course <strong>of</strong> mining subject to asuitable fee being paid and the mining plan being amended with the approval <strong>of</strong>IBM.(vii) Rules 27(1)(m) and 27(3) <strong>of</strong> MCR, giving the authority to the state to pre-emptminerals and put restrictive conditions, should be deleted. The lease deed formshould be exhaustive and should include all minerals and associated mineralsfor which applicants may have applied and to which they may be entitled. Theform should also contain additional conditions imposed by the stategovernments on captive miners and value adders.(viii) Rule 34 <strong>of</strong> MCR, authorising the state to reduce or exclude an area from theentitlement <strong>of</strong> a PL holder to a ML, should be deleted except in the case <strong>of</strong>specified public purposes.(ix) <strong>Mineral</strong> concession holders should have the right to renewal <strong>of</strong> the concessionif they have met the obligations <strong>of</strong> the concession. As the term ‘renewal’ is usedto mean fresh grant in judicial parlance, the word ‘extension’ should be usedinstead <strong>of</strong> ‘renewal’ wherever it occurs in the Act or Rules. Extension <strong>of</strong> theML should be automatic until the exhaustion <strong>of</strong> the deposit or voluntary41
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