National Mineral Policy 2006 - Department of Mines

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mission mode through, inter alia, the institutional upgradation of IBM and theregulatory divisions of the state Directorates, the latter being incentivised by theCentre and implemented by the states.(ii) Introduce block/grid based exploration area for applications for the explorationtitles of RPs, LAPLs, and PLs so that areas are clearly demarcated and the needfor hand-drawn maps is eliminated.(iii) Provide facility for on-line application system for mineral concessions.(iv) Amend Section 12(1) of the MMDR Act to provide that in addition to theregisters of applications for RP/PL/ML and registers of RP/PL/ML that arecurrent, registers should also be maintained for relinquished areas in each case.Further, introduce a new Section 12(3) to require the concerned authorities tomaintain the entire data of Section 12(1) digitally and to provide on-line accessto the public.(v) Put the coordinates of areas granted, applied, as well as relinquished on thewebsite of the state Mines and Geology Departments and IBM.PROCEDURE FOR DISPUTE RESOLUTION2.28 As noted earlier, Section 30 of the MMDR Act provides for powers of revision to theCentral government regarding disputes arising from the decision of a state government togrant or reject a particular concession. Rule 54 of the MCR also states that any personaggrieved by any order by the state government or other authority in exercise of the powersconferred on it by the MMDR Act or Rules may apply to the Central government for revisionof the order. The Central government has constituted a two-member committee comprisingJoint Secretary/ Director of the Ministry of Mines and Joint Secretary, Ministry of Law toexercise powers under Section 30 of the MMDR Act on its behalf. Although the arrangementcould be deemed to be the nucleus of the dispute resolution machinery, it cannot be regardedas meeting the requirement of an independent dispute settlement machinery. Concern hasbeen raised regarding the neutrality of the committee since approval to the grant ofconcessions in respect of First Schedule minerals is also given at the Ministry of Mines.There is also the issue of delay in decision making due to officers in the ministry beinginvolved in their regular work.64
2.29 The Committee recommends that the MMDR Act and Rules be amended to enable thepowers of the Central government to be exercised by an independent tribunal so thatappropriate arm’s length is maintained between the Ministry of Mines as a regulator and thatMinistry as an involved party. The tribunals should have experts in mining administration andmining laws as members. Independence of the tribunal should be ensured by appointingmembers on the basis of the recommendations of a selection committee, with a high-levelChairman and outside experts serving on such a committee. Members of the tribunal shouldbe given security of tenure by being appointed for a fixed term. Such an independent anddedicated tribunal will also ensure timely disposal of revision cases and will find betteracceptability among the investors. Furthermore, the tribunal should also have jurisdiction forrevising the orders of the Central government.65
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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
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investment. The work done by GSI co
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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 70 and 71: concerned State Government (or othe
Page 72 and 73: Further, Rule 7D of the MCR specifi
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
Page 120 and 121: such an arrangement, the Ministry o
Page 122 and 123: 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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