National Mineral Policy 2006 - Department of Mines

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higher level. The basic approach is that (i) the miners can and should enrich rather thandeplete biodiversity as a corollary to their intervention in the ecology of their area of activity;and (ii) mining can and should contribute to the economic, social, and cultural well-being ofindigenous host populations and local communities, particularly by creating stakeholderinterest in mining operations for the project affected persons (PAPs). This Committee wouldrecommend that the Ministry of Mines and MOEF should jointly set up a working group toprepare a SDF specially tailored to the context of India’s mining environment, taking fullyinto account the work done and being done in ICMM and IUCN. The Indian SDF comprisingof principles, reporting initiatives, and good practice guidelines unique to the three sectors inIndian mining, i.e. SME, captive, and large stand alone, can then be made applicable tomining operations in India and a separate structure set up to ensure adherence to suchframework, drawing from both IBM and the field formations of MOEF.3.12 Setting up a special working group and drawing up a suitable SDF appropriate to theIndian situation as proposed above will naturally be a time-consuming affair and can only beconceived as a long-term solution. The group will have to take into consideration not only theobligations enjoined on miners by the Samatha judgment (see paragraph 1.34) in respect ofthe facilities to be provided to the tribals and the judgement dated 26 September 2005 in T.N. Godavarman Thirumulkpad vs. Union of India and others (Writ Petition (C) No. 202 of1995) in the matters of afforestation and environment, but also devise ways in which theobligations cast by the ten principles, which go somewhat further than the legal obligationsflowing from the two judgements, can be built into the SDF. In the meanwhile, it is alsonecessary to consider whether certain short-term measures that can be pointers towards theeventual SDF, especially in respect of Scheduled areas where the PAPs are local tribalpopulations, can be thought of, keeping in mind all the time the legal obligations imposed bythe Hon’ble Supreme Court. At the outset, we may look at the existing Relief andRehabilitation (R&R) packages prepared by some of the states and the work actually done onthe ground suo moto by Indian mining companies in the area of environment managementand rehabilitation. Taking up the former first, two of the most advanced packages for PAPsare those prepared in Orissa and Andhra Pradesh.72
RELIEF AND REHABILITATION3.13 In the Orissa model (announced vide Government of Orissa, Revenue Department, no.18040/R, R & REH-1/06, dated 14 May 2006), the basic objectives are listed as follows:(i)(ii)(iii)(iv)To avoid displacement wherever possible and minimise it exercisingavailable options otherwise.To recognize voices of displaced communities emphasising the needs ofthe indigenous communities, and vulnerable sections;To ensure environmental sustainability through participatory andtransparent process; andTo help guide the process of developing institutional mechanisms forimplementation, monitoring, conflict resolution, and grievance redressal.To this end, the Orissa package offers various types of assistance to families that have beendisplaced or affected by different types of projects. For those affected by mining, projectassistance includes: employment to one family member in the project or cash assistanceranging from Rs 1 lakh to Rs 5 lakh with option for 50 per cent of cash assistance in the formof convertible preference shares; training for self-employment; homestead land subject toavailability or Rs 50,000 for relocation elsewhere; a house or housing assistance up to Rs150,000; and shops or service units to those who opt for self-employment with preference tohandicapped persons, ST and Scheduled Castes (SC). In addition to assistance specific tomining projects, certain types of assistance common to PAPs of all projects have also beenlisted. These include: maintenance allowance of Rs 2000 per month per family for one year;assistance of Rs 10,000 for a temporary shed; and transportation allowance of Rs 2000 in lieuof free transport to habitation site. For tribal PAPs this would also include preferentialallotment of land and resettlement as far as possible in compact areas.3.14 The Andhra package has been put out in the form of a Policy on Resettlement andRehabilitation of Project Affected Families (PAFs), 2005, and issued vide GO no. 68 ofIrrigation and Command Area Development (CAD) (Project Wing–LA IV- (R&R)Department, dated 18 April 2005. The objectives are listed as follows:73
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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
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1.21 This situation has changed dra
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absent. A study by the United Natio
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example, a mining major may outsour
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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 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 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
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Page 120 and 121: such an arrangement, the Ministry o
Page 122 and 123: developed, controlled, and run by s
Page 124 and 125: subject to overt and covert restric
Page 126 and 127: consideration to the end use of the
Page 128 and 129: (iii)parameters laid down in existi
Page 130 and 131: 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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