National Mineral Policy 2006 - Department of Mines

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concerned State Government (or other authority) as well as other concernedand/or aggrieved parties of being heard.Furthermore, the Committee suggests that the third proviso of Rule 63A of the MCR 1960should be deleted and a new Rule 54A should be added as indicated below:54A: Where the State Government (or other authority) has not passed an order underRule 63A:(a)(b)(c)for a non-exclusive RP within four months from date of receipt of anapplication of RP,For a PL/LAPL within ten months from the date of receipt of anapplication for PL, andFor a ML within 13 months from the date of receipt of an application forML,the aggrieved party may apply to the Central Government to exercise its powers underSection 30 of the MMDR Act within 90 days of the expiry of the periods mentionedabove.2.20 The Committee is of the view that the amendments proposed in the previousparagraph would not take away or whittle down the powers of state governments in respect ofminerals owned by them. Instead they would only serve to secure adherence to the time limitsalready set and imposed under the existing law. The Committee also recommends thatnecessary change should be made in the laws to provide that where the Centre does not grantprior approval in cases referred to it by the state government within the specified period, suchprior approval should be deemed to have been granted. Further, in the applications receivedunder Section 30 of the Act in situations in which no order has been made by the stategovernment there should be a time limit imposed on the Centre for disposal of the applicationwithin such time limit. A solution should also be found to ensure that the Centre adheres tothe time limit.2.21 During the deliberations of the Committee, doubts were raised on the constitutionalvalidity of the proposal to amend Section 30 of the MMDR Act. In making its60
ecommendation, the Committee relied on the legal opinion obtained by FIMI from the notedjurist Fali S. Nariman, a copy of which is appended as Annexure 2. The Committee’sunderstanding was that this opinion would be reconfirmed by making a reference to theAttorney General before the GOI takes a decision on this recommendation. Some of themembers representing the states also raised the point that in the interest of fair play, timelimits should also be imposed on the Central government. This too was agreed to, asmentioned in paragraph 2.20 above. However, after the final meeting of the Committee hadbeen held on 30 June 2006, four members representing the state governments ofChhattisgarh, Jharkhand, Karnataka, and Orissa sent a note of dissent on 3 July 2006, whichis appended as Annexure 3.SIMPLIFICATION OF PROCEDURE FOR ASCERTAINING AVAILABILITY OFAREAS2.22 A major handicap for potential investors in mining and prospecting is the lack of basicinformation regarding the areas available for different types of mineral concessions in India.Apart from the areas currently held under a mineral concession, there are areas that are understate exploration, areas held by state organisations under lease, areas notified as reserved forthe state or its agencies, areas not explored at all or greenfield areas available forreconnaissance, and areas where adequate geological information is available with stateagencies for carrying out further prospecting.2.23 The MMDR Act and Rules thereunder contain the following provisions formaintenance of registers of mineral concession:12 (1) The State Government shall cause to be maintained in the prescribed form(a)(b)(c)(d)(e)(f)a register of applications for prospecting licences;a register of prospecting licences;a register of applications for mining leases;a register of mining leases;a register of applications for reconnaissance permits; anda register of reconnaissance permits;In each of which shall be entered such particulars as may be prescribed.(2) Every such register shall be open to inspection by any person on payment of such fee as the StateGovernment may fix.61
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National Mineral PolicyReport of th
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ContentsAcronyms...................
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Annexure 5: Using the GRI Guideline
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GDP gross domestic productGIS Geogr
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UNFCUSVATWCUUnited Nations Framewor
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Introduction1. The Government of In
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issues relate to fund raising by pr
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termination of MLs, lowering of cei
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• 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 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 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
Page 104 and 105: Chapter 4Infrastructure Needs and F
Page 106 and 107: 4.5 Logistics is the key to access
Page 108 and 109: Table 4.1: Mineral Production in In
Page 110 and 111: necessary, therefore, that in infra
Page 112 and 113: to the ports of Haldia and Paradip
Page 114 and 115: Connectivity of Major Ports, brough
Page 116 and 117: (iv)(v)(vi)(vii)At Visakhapatnam Po
Page 118 and 119: was of the opinion that while the m
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such an arrangement, the Ministry o
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developed, controlled, and run by s
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subject to overt and covert restric
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consideration to the end use of the
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(iii)parameters laid down in existi
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Chapter 6Augmenting State Revenues(
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the value addition question conside
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In a system of ad valorem rates of
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must provide revenues sufficient to
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Box 6.1: Methods of Valuation of Ro
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Another point to be borne in mind b
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ailable, cognisable criminal offenc
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e worked out. This should be string
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7.3 Considering the high-risk natur
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Table 7.2: Minimum Listing Requirem
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(ii)(iii)only. Such funds have not
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addition, the minimum post-issue fa
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and hence this ore should be conser
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miners distort the market for their
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7.22 The current law does not make
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is mostly of low grade magnetite. H
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Most magnetite findings are entirel
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in UK 206 kg, and in China it grew
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metres. The use of down hole drill
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7.42 Despite the fact that SME mini
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also be a consideration. However, t
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price, reduce profitability, and pu
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IMPACT ON DOMESTIC IRON ORE PRICES
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7.58 Export of iron ore fines on a
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POLICY ON BEACH SAND MINERALS7.64 B
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not contain more than 0.1 per cent
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7.73 On 18 January 2006, the DAE no
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with the Centre is mainly to ensure
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India enterprise) reported that the
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chloride process pigment technology
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are disposed of in the mined-out ar
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directed to ensure that the AERB/AM
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would have to be carefully drafted
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‘In coordination with the Geologi
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Exploration Licences• The current
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• The fees should be significantl
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surveys have been undertaken, the P
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automatic until the exhaustion of t
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y stating in the MMDR Act that a pr
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departmental representative for sec
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therefore (under Rule 63A), pass su
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• Section 12(1) of the MMDR Act s
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o The lessee should not be asked to
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again and the State Mines Departmen
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• As in the past, no environmenta
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oad and rail, and lack of long-term
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government to the applicants who ar
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next three-year period as well. In
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• Rates of dead rent should be ra
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measure to provide a level playing
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• In respect of three titanium be
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No-I&M-25(3)/2005Government of Indi
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No-I&M-25(3)/2005Planning Commissio
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‘Efforts would also be made to gr
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ecommending amendments to the Act a
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etained as a Prescribed Substance u
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OthersShri Arvind VarmaEx-Secretary
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16. Reserve Bank of India17. M/s Ji
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the RP holders in areas beyond 25 s
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Appendix ERecommendations of the Ex
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(1) Provide proximate and strategic
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technology to enter the Indian stee
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Cross-country Comparison of Mining
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Appendix F (cont.)Country Mining La
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Cross-country Comparison of Mining
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Appendix G (cont.)Country Mining le
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CountryAppendix H (Cont.)Environmen
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AustraliaIndonesia 9 4 Not specifie
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Annexure 1 (cont.)Geologicalenviron
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operations are undertaken over a fa
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B. After Rule 54 of the Mineral Con
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the Central Government to entertain
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applications, could exercise the ju
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We most humbly request that the abo
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Annexure 4The 2002Sustainability Re
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While unique in its coverage and pr
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• facilitate comparability• add
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AssuranceJust as investors look to
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The Guidelines are structured in fi
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There are many aspects relevant for
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- Issues in which community partici
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Annexure 7Royalty Accruals on Miner
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Sl.No.MineralAnnexure 8 (cont.)2003
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Annexure 91 THE SECOND SCHEDULE 1(S
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(v) Group V Coals:(a) Non-Coking Co
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23. Iron Ore:(i) Lumps:(a) with 65
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45. Tin Five per cent of London Met
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International Comparison of Royalty
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Production, Consumption, Exports, a
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National Mineral Policy 2006 - Department of Mines

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