National Mineral Policy 2006 - Department of Mines
National Mineral Policy 2006 - Department of Mines National Mineral Policy 2006 - Department of Mines
to give priority to the prior applicant. As already stated, MLs should not be given withoutdetailed prospecting data delineating the ore body to be mined. This is possible only fromdata gathered by a LAPL or PL holder (other than data prospected by a public agency atpublic expense). In rare situations where such data has become available from a credibleprivate prospecting source, such as areas prospected fully by an ex-LAPL/PL holder but notfollowed up with an ML application and where both the PL and lock-in period have expiredor where non-promotional work has been done by MECL or any state PSU for a client,prioritisation can be considered as per Section 11(2) of the Act. The preference should be, ofcourse, to put such ore bodies into the public domain and auction them (subject to theexceptions mentioned in Chapter 5) rather than dispose of them directly.1.66 As regards Section 11(3), the Committee has stated earlier that details of all areasshould be made available on an open website to be maintained by IBM. This website shouldgive details of areas currently held under a concession, areas being explored by GSI or otherstate agencies at public expense, and areas available for exploration, including relinquishedareas. This will make the notifications under Sections 11(2) and 11(4) of the Act and Rule59(2) of the MCR 1960 redundant. It should be the responsibility of the state governments todispose of any application received for a concession in a time-bound manner. Regardless ofwhether a single application or multiple applications are received the application/s should bedisposed of on the basis of Section 11(3), which provides the criteria to be considered.However, it is necessary that these criteria should be elaborated in detail in the MCR itself,thus minimising the scope for subjective interpretations. For example, the kind of geologicalinformation required relevant to each type of concession should be spelt out. So too shouldthe level of technical capabilities, finance, investment in downstream industry, etc. be laiddown in detail in the MCR itself.1.67 The Committee finds that the discretionary provision under Section 11(5) of theMMDR Act is not in line with the international practice. The provision creates apprehensionsin the minds of genuine investors and serves no useful purpose. To provide uniformity andtransparency in the criteria used and to prevent any abuse of discretionary powers in the grantof mineral concessions, the following measures are recommended:(i)Section 11(1) may be modified so that a non-exclusive RP holder has the right toobtain a PL on first-come-first-served basis rather than ‘a preferential right’. A44
(ii)(iii)(iv)LAPL/PL holder shall have the exclusive right to obtain the ML. These rightswould of course be subject to the fulfilment of conditions in the MCR, includingthose relating to furnishing of data.Section 11(2) may be modified such that all persons applying for a RP are entitledto it, provided they are eligible as per pre-determined criteria for proving theircredibility and genuineness. A RP will be for all minerals and associate minerals(with exceptions specified where GSI or State agencies have already done somework) and may run concurrently with or overlap other RPs, both in terms of timeand area. The RP holder who is first-in-time shall have the right to be granted aPL.Grant of the exclusive LAPL should be on the basis of well-defined criteria andagain on the first-in-time principle. Where a LAPL/PL is applied for directly bytwo or more persons, the applicant whose application was received earlier shallhave a preferential right to be considered for the grant of the PL, regardless ofwhether he holds an RP or not. The applications should be disposed of by the stategovernment within a stipulated time limit. Where two or more applications arereceived for a LAPL/PL before the expiry of the time limit, the matter shall bedecided by taking into consideration the criteria mentioned in Section 11(3) of theAct, including the criterion of value addition as detailed in Chapter 5. However,the eligibility criteria will be laid down in the MCR for all RP and PL applicantsso as to ensure that only genuine and credible applicants apply. To ensure thatLAPLs/PLs are not obtained by speculators who have no intent to prospect on thebasis of a time-based mining plan, a rule should be prescribed with heavypenalties for violation. Similarly, a minimum expenditure limit per squarekilometre should be imposed on an escalating scale so as to discourage suchspeculators.In the case of multiple applications, all the criteria mentioned in Section 11(3) ofthe Act should be taken into consideration while evaluating applications forestablishing comparative merit. The applicant must fulfil a minimum qualificationregarding experience of mine-related activity, financial resources, and nature andquality of staff before being considered for grant of application on the basis of theproposed investment in the mine or in the industry based on the mineral. (SeeChapter 5 for more detailed treatment of preference that can be given to valueadders.)45
- 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 50 and 51: e obviated if the lease deed is exh
- Page 52 and 53: elinquishment of areas by the lesse
- 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
- Page 100 and 101: 3.41 Recognising the need to make t
- Page 102 and 103: Figure 3.3: Public Hearing/NOC from
(ii)(iii)(iv)LAPL/PL holder shall have the exclusive right to obtain the ML. These rightswould <strong>of</strong> course be subject to the fulfilment <strong>of</strong> conditions in the MCR, includingthose relating to furnishing <strong>of</strong> data.Section 11(2) may be modified such that all persons applying for a RP are entitledto it, provided they are eligible as per pre-determined criteria for proving theircredibility and genuineness. A RP will be for all minerals and associate minerals(with exceptions specified where GSI or State agencies have already done somework) and may run concurrently with or overlap other RPs, both in terms <strong>of</strong> timeand area. The RP holder who is first-in-time shall have the right to be granted aPL.Grant <strong>of</strong> the exclusive LAPL should be on the basis <strong>of</strong> well-defined criteria andagain on the first-in-time principle. Where a LAPL/PL is applied for directly bytwo or more persons, the applicant whose application was received earlier shallhave a preferential right to be considered for the grant <strong>of</strong> the PL, regardless <strong>of</strong>whether he holds an RP or not. The applications should be disposed <strong>of</strong> by the stategovernment within a stipulated time limit. Where two or more applications arereceived for a LAPL/PL before the expiry <strong>of</strong> the time limit, the matter shall bedecided by taking into consideration the criteria mentioned in Section 11(3) <strong>of</strong> theAct, including the criterion <strong>of</strong> value addition as detailed in Chapter 5. However,the eligibility criteria will be laid down in the MCR for all RP and PL applicantsso as to ensure that only genuine and credible applicants apply. To ensure thatLAPLs/PLs are not obtained by speculators who have no intent to prospect on thebasis <strong>of</strong> a time-based mining plan, a rule should be prescribed with heavypenalties for violation. Similarly, a minimum expenditure limit per squarekilometre should be imposed on an escalating scale so as to discourage suchspeculators.In the case <strong>of</strong> multiple applications, all the criteria mentioned in Section 11(3) <strong>of</strong>the Act should be taken into consideration while evaluating applications forestablishing comparative merit. The applicant must fulfil a minimum qualificationregarding experience <strong>of</strong> mine-related activity, financial resources, and nature andquality <strong>of</strong> staff before being considered for grant <strong>of</strong> application on the basis <strong>of</strong> theproposed investment in the mine or in the industry based on the mineral. (SeeChapter 5 for more detailed treatment <strong>of</strong> preference that can be given to valueadders.)45