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Sunday, January 2, 2011

RED ALERT! New Mines and Minerals Bill drafted With an HIDDEN Agenda of Mass Destruction in the Aboriginal Indigenous human Sacpe!

 RED ALERT! New Mines and Minerals Bill drafted With an HIDDEN Agenda of Mass Destruction in the Aboriginal Indigenous human Sacpe!



Indian Holocaust My Father`s Life and Time -FIVE HUNDRED  FIFTY FIVE

Palash Biswas

http://indianholocaustmyfatherslifeandtime.blogspot.com/

http://basantipurtimes.blogspot.com/
RED ALERT! New Mines and Minerals Bill drafted With an HIDDEN Agenda of Mass Destruction in the Aboriginal Indigenous human Sacpe!

Government of India Incs, MNCs and LPG Mafia led by Zionist Brahaminical Hegemony, Washington  Super Slaves, Billionair Coopted Public representatves and Extraconstitutional elements, is all set to Amend Mines and Minerals (Regulation and Development) Act, 1957, so that minerals be looted Freely Destroying the Aboriginal Humanscape. As citizenship amendment act was passed with hyped dual citizenship with an hidden agenda to deprive the SC, OBC Bengali and Tamil Refugees, the Holocaust victims, of Citizenship,this time the hype is to empower the tribal people giving them TWENTY SIX percent share of the Mineral Profit which is NEVER to happen as the Aboriginal landscape has been always Displaced and stripped off Human and civic rights without any comsation orpensation and Real REHAB!

Under the Constitution of India, management of mineral resources is the responsibility of the Central Government and the State Governments in terms of the Union List and State List respectively. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India, while the State Governments are the owners of minerals located within the boundary of the State concerned. The Central Government, in consultation with the State Governments, formulates the legal measures for regulation of mines and minerals in order to ensure basic uniformity in mineral administration as well as to maintain the pace of development of mineral resources, in consonance with the national policy goals.

At the Central level, the 'Ministry of Mines' is the nodal agency for overall growth and expansion of minerals and mining sector. It is responsible for survey and exploration of all minerals (other than natural gases, petroleum and atomic minerals); for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc. as well as for administration of the 'Mines and Minerals (Regulation and Development) Act, 1957' in respect of all mines and minerals (other than coal, natural gas and petroleum).

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  1. The Mines and Minerals (Development & Regulation) Act, 2010 ...

    This Act may be called the Mines and Minerals (Development and Regulation) Act, 2010. It extends to the whole of India. Date: Mar 2010 ...
    www.indiaenvironmentportal.org.in › Reports and Documents - Cached
  2. [PDF] 

    MMDR Act 3 June 2010.docx - Mines

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    3 Jun 2010 ... (1) This Act may be called the Mines and Minerals (Development and. Regulation) Act, 2010. (2) It extends to the whole of India ...
    mines.nic.in/File_link_view.aspx?ltp=1&lid=441
  3. India Together: Mining versus communities - 05 October 2010

    5 Oct 2010 ... 05 October 2010 - After going slow for many years, the Government is displaying urgency in a new mining law. The current law, the Mining and ...
    www.indiatogether.org/2010/oct/law-mining.htm - Cached
  4. New Mines and Minerals Bill drafted

    30 Dec 2010 ... New Mines and Minerals Bill drafted. India Infoline News Service/10:26,Dec 30, 2010. The draft Bill seeks a complete and holistic reform in ...
    www.indiainfoline.com/...Mines-and-Minerals-Bill.../5034783138 - Cached
  5. Alberta passes the Mines and Minerals (Coalbed Methane) Amendment ...

    14 Dec 2010 ... Following our report in November, on December 2, 2010Bill 26 received Royal Assent and came into force as the Mines and Minerals (Coalbed ...
    www.canadianenergylaw.com/2010/.../alberta-passes-the-mines-and-minerals-coalbed-methane-amendment-act/ - Cached
  6. [PDF] 

    Mines & Minerals (Development and Regulation) - MMDR ACT FINAL VER ...

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    31 Mar 2010 ... Ver 31.3.2010. The Mines and Minerals (Development & Regulation) Act,2010. An Act to provide for the scientific development of mines and ...
    mines.gov.in/policy/mmdr2010.pdf
  7. Mines and Minerals (Coalbed Methane) Amendment Act, 2010 - Alberta ...

    Bill 26, the Mines and Minerals (Coalbed Methane) Amendment Act, 2010, was passed in the fall 2010 session of the Alberta Legislature. ...
    www.energy.alberta.ca › ... › Our Business › Natural Gas › Coalbed Methane
  8. New Mines and Minerals Act being finalized: Sonia Gandhi

    1 post - 1 author - Last post: 2 Nov 2010
    The Mines and Minerals (Development & Regulation) Act, 2010 is to provide for the scientific development of mines and minerals under the ...
    www.thaindian.com/.../new-mines-and-minerals-act-being-finalized-sonia-gandhi_100453860.html - United States - Cached
  9. 'Centre will discuss MinesMinerals Bill' | Pranab Mukherjee ...

    2 Nov 2010 ... BHUBANESWAR: Centre has agreed to discuss the final draft of the Mines and Minerals (Development and Regulation) Bill2010 with the mineral ...
    expressbuzz.com/states/orissa/...mines-minerals-bill/220065.html - Cached
  10. Mines and Minerals Development News Stories, Latest News Headlines ...

    7 Nov 2010 ... 2010-09-28 03:01:19.0 ... Mines and Minerals Development and Regulation)Bill has given an in principal approval to ...
    economictimes.indiatimes.com/topics.cms?...Mines%20and%20Minerals%20Development -Cached
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The draft Bill seeks a complete and holistic reform in the mining sector with adequate provisions to address issues relating to sustainable mining and local area development, especially families impacted by mining operations.

After several rounds of consultation and workshop with all Stakeholders, including Central Ministries, State Governments, Industry associations and NGOs, the Ministry has prepared a draft Mines and Minerals (Development and Regulation) Bill, 2010, duly vetted by Ministry of Law and Justice, to replace the existing Mines and Minerals (Development and Regulation) Act, 1957.


The draft Bill seeks a complete and holistic reform in the mining sector with adequate provisions to address issues relating to sustainable mining and local area development, especially families impacted by mining operations. The Bill aims to ensure transparency, equity, elimination of discretions, effective redressal and regulatory mechanisms alongwith incentives encouraging good mining practices, which will also  lead to technology absorption and exploitation of deep seated minerals.


The Draft Bill is presently referred to a Group of Ministers under the Chairmanship of Shri Pranab Mukherjee, Hon'ble Finance Minster, and based on the recommendations of the Group of Ministers and Cabinet approval, the draft Bill would be placed in the Parliament at the earliest.

Revision of rates of royalty and dead rent in respect of major minerals (non-coal minerals)


As a result of the revision of royalty rates and streamlining of the guidelines for calculation of royalty, the royalty collection for major minerals in the country has increased from Rs. 2319.21 crore in 2008-09 to Rs. 3997.42 crore in 2009-2010. State-wise increase in the royalty collections is given in table below:


Royalty accrual for major minerals (excluding coal and lignite)


                                                                                          (In Rs. crore)

State

Royalty

2008-09

2009-10 (P)

Assam

0.63

0.94

Andhra Pradesh

242.85

370.38

Bihar

2.69

NA

Chattisgarh

153.89

474.39

Gujarat

157.86

250.00

Goa

27.46

285.91

Haryana

0.06

NA

Jammu and Kashmir

2.93

NA

Jharkhand

63.23

319.04

Karnataka

184.13

433.12

Kerala

7.24

8.81

Madhya Pradesh

191.42

351.49

Maharashtra

107.42

85.10

Meghalaya

NA

7.26

Orissa

431.35

654.46

Rajasthan

641.81

997.28

Tamilnadu

104.24

130.56

Total

2319.21

3997.42




Development of Human Resources for the Geo-Scientific Sector:-


The Final Report on Mapping of Human Resources and Skills for the Mining Industry in India commissioned by the Ministry of Mines and CII jointly has been prepared. The study has attempted sector wise future requirement of human resources in mining sector. The estimated increase in the mining production will lead to an increase in manpower from the present level of 0.9 million to 1.1 millions in the year 2017 and 1.2 million in the year 2025. Recommendation related to the educational initiatives on capacity additions to meet the projected demand of geoscientist, mining engineers is being posed to Ministry of HRD and for skill development to the National Skill Development Coordination Board, Planning Commission, Government of India.


SUSTAINABLE DEVELOPMENT FRAMEWORK – a human face to mining activities


Based on the report (2007) of the High Level Committee constituted by the Planning Commission to review the National Mineral Policy, which recommended for introducing best practices in implementation of environment management, the appropriate use of land within a land planning framework through a democratic decision making process on the basis of integrated assessment of ecological, environmental, economical and social impact; the Ministry engaged an expert consultant for creating a Sustainable Development Framework (SDF) for the  mining sector.


The consultant taking into consideration that mining should contribute to economic, social and cultural well-being of indigenous host populations and local communities by creating stakeholders interest in mining operations for the project affected people (PAP), has prepared a draft document and submitted to the Ministry. The next stage of consultations will be taken up by the Ministry of Mines involving also the concerned mining departments at the state level.  A wider dissemination of the SDF will be undertaken before finalization and roll-out.  


Preparation of Policy for a Five Year Strategic Plan for the Ministry of Mines


The Ministry of Mines is in the process of preparing a Policy document for a Five Year Strategic Plan for the Ministry.


National Mineral Policy, 2008


The Ministry of Mines has initiated several non-legislative measures based on National Mineral Policy 2008, such as re-assessment of threshold values of important minerals, increasing the spread of United Nations Framework Classification (UNFC) for minerals, developing mining tenement registry, zero-waste mining including cluster mining.  In this new scheme of things, IBM has a very significant role to play.


INDIAN BUREAU OF MINES


In the wake of recent spate of illegal mining in different parts of the country, IBM has played a proactive role in curbing and controlling the menace.  Indian Bureau of Mines constituted Special Task Forces for inspection of mines in endemic areas by taking the help of satellite imageries. Task Force-I, constituted for checking illegal mining in Karnataka, Andhra Pradesh, Orissa, Gujarat and Jharkhand have inspected 106 mines and recommended 60 mines for suspension.  


Another 4 mines have also suspended due to non-rectification of violations. Task Force-II, constituted for curbing illegal mining inspected 67 mines in Karnataka and 18 mines were suspended.  In the second phase, 162 mines were inspected in Karnataka, Orissa and Jharkhand and 43 mines were suspended.


By a recent notification, IBM has been entrusted with the additional responsibility of granting of exploration license in the off-shore water of Bay of Bengal and Arabian Sea.


Considering the role and responsibility of IBM in the emerging scenario, a Committee has been set up in the Ministry for restructuring of IBM.  The report of the Committee is under finalization.


Prevention of Illegal mining


Illegal mining is a bane to the entire mining sector as it leads to not only revenue loss but also encourages unscientific mining. Even though the State Governments, as the owner of minerals and vested with machinery for maintaining law and order, are empowered to take action, given the scale and nature of increase of the activity the State Governments have been finding it difficult to tackle this menace.  


With increasing incidents of the illegal mining being reported, the Central Government is collaborating with the State Governments to enable the use of modern technology like satellite imagery, geo-referencing of boundaries using GPS,  transport regulation, compulsory registration of end-users, and constant monitoring of the endemic areas. To reinforce mechanism to control illegal mining, the State Governments were advised to:-

  • Set up State Coordination-cum-Empowered Committee (SCEC) to coordinate efforts to control illegal mining by including representatives of Railways, Customs and Port authorities. Ten State Governments have set up a Coordination-cum-Empowered Committee. Twenty one States have set up Task Force at State and/or District level.

  • Frame State Mineral Policy on the basis of model Mineral Policy drafted by the Ministry of Mines and to adopt transparent concession grant policies to reduce scope for illegal mining. Eighteen States have framed Rules under Section 23C of the MMDR Act, 1957.

  • To adopt an Action Plan with specific measures to detect and control illegal mining including, use of remote sensing, control on traffic, gather market intelligence, registration of end-users and setting up of special cells etc.

Mainly because of the proactive stance taken by the Central Government on the issue, the following developments have been reported:


Recently, the Government has constituted a Commission of Inquiry under Shri Justice M.B. Shah (retired Judge of Supreme Court of India) to inquire into the large-scale mining of iron ore and manganese without lawful authority in several States of the country.


The Commission is expected to submit its report within 18 months of its first sitting.


MINERAL CONCESSION AND TRANSPARENCY


The Ministry of Mines has issued guidelines on 24.06.2009, 9.2.2010, 3.6.2010, 27.7.2010, 13.10.2010 with a view to bring uniformity and for transparent processing of mineral concession proposals and also to clarify the provisions of Mines and Minerals (Development & Regulation) Act, 1957 and the Rules framed thereunder.


The Ministry of Mines is using the internet services to bring about more accessibility and transparency in processing the mineral concession proposals recommended by the State Governments. The website of the Ministry (www.mines.nic.in) provides all information on the current status of the applications for mineral concessions.  These services are being further enhanced to track the process from approval for grant to execution of concession agreement.


The Ministry of Mines has constituted a Central Coordination-cum-Empowered Committee on 4.3.2009 to monitor and minimize delays in grant of approvals for mineral concessions.  The fourth meeting was held on 22nd December, 2010. All Ministries concerned, viz. Ministry of Environment & Forests, Ministry of Home Affairs, Ministry of Defence, Ministry of Steel, Ministry of Civil Aviation, Ministry of Shipping and Ministry of Finance and mineral-rich States participated in those meetings.

Revision Applications and Disposal


Ensuing quick disposal of Revision Cases, the guidelines on processing of cases have been issued. The revision software has been developed for processing and disposal of revision applications filed by aggrieved parties under Section 30 of the Mines and Minerals (Development and Regulation) Act, 1957 against grant refusal of mineral concession.


Initiatives taken by Geological Survey of India (GSI)

  • To meet the emerging challenges, GSI is constantly upgrading its technology, both in the field and laboratory equipments.  In this direction, (i) new ocean going research Vessel (at a cost of   Rs. 549.00 crores), (ii) Heliborne Geophysical Survey System (at a cost of Rs. 52.00 crores) and (iii) Geotechnical Vessel with shallow drilling capacity (at a cost of Rs. 70.20 crores) are being procured. A detailed modernization plan has been prepared.

  • GSI is now employing extensive use of Information Technology for information dissemination through its Portal for general public at large, and geoscientific community in particular.  Information technology is being widely utilized for monitoring progress of field and project activities, accessing unpublished project reports, publications (Records, memoirs) DIDS, District Resource Maps, Geological Quadrangular Maps, case histories, photo-gallery etc.

  • GSI has taken up several programmes at the instance of state government agencies, PSUs and other stakeholders either in collaboration or to carry out on its own.

Restructuring of the Geological Survey of India

  • Restructuring of GSI has gathered momentum and its five Missions and three Support Systems have integrated many dispersed wings into Regions, indicated improvement in HR position with higher rates of induction at JTS level.  Improvement in quality in all processes, services and products through establishment of Quality Management Cell, framing of new Recruitment Rules to ameliorate career progression, firming up training and capacity building to organize training programmes for State, National and International candidates are new initiatives taken to name a few.

An Implementation Committee has been set up to go into the details for implementation of HPC Report and for further follow up of its recommendations.


National Aluminium Company Limited (NALCO)

  • NALCO and the state owned Industrial Odisha Infrastructure Development Corporation (IDCO) have launched a Joint Venture company on 30th July, 2010 to set up an aluminium park at Angul to set up an aluminium downstream and ancillary complex.

  • Environmental clearance for the Rs. 409 crore 4th stream Up-gradation project alumina refinery has been obtained from MoEF on 11th May, 2010 and consent to establish from Odisha State Pollution Control Board (OSPCB) was received under Water & Air Act in June, 2010.

  • The 120 MW unit #10 of captive power plant has been synchronized with coal on 27th August, 2010. With the commissioning of unit #10, the capacity of CPP has been augmented to 1200 MW (10X120MW).

  • For the on-going Rs. 280 crore, 2 million tonnes per annum (MTPA) Utkal-E coal block project, approval of Govt of Orissa for Forest Dweller Certificate under provision of Section 6(5) of the ST & Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 for forest clearance of Utkal-E coal mine project was issued on 25.06.2010, permission for drawal of water from Singharajhor for was received from Water Resource Department, Govt. of Orissa in June, 2010 and 7(1) notification for private land acquisition of 5 villages was issued in August, 2010.

  • For taking up CSR activities in a focused manner with higher annual contribution from the Company, NALCO Foundation was registered under the Indian Trusts Act, 1882 in July, 2010.

  • Bauxite Mines achieved the record performance of highest ever production since inception from existing facility with transportation of 48.79 lakh MT against previous best of 48.54 lakh MT (2005-06) with capacity utilization of 101.64% despite production loss of 30 shifts (15 days) on account of Naxal attack and shutdown of 31 shifts (15.5 days) due to drive rope replacement.  The plant exceeded the rated capacity after a gap of 3 years.

  • Alumina refinery achieved the record performance of highest ever production since inception from existing facility with alumina hydrate production of 15.915 lakh MT against previous best of 15.90 lakh MT (2005-06) with capacity utilization of 101.05%.

HINDUSTAN COPPER LIMITED (HCL)

  • HCL has paid an interim dividend of 10% amounting to Rs. 46.26 crore on the paid-up capital of Rs. 462.61 crore on the 99.59% equity held by the Government of India in the company for the financial year 2010-11.

  • The Cabinet committee in its meeting held on 15.06.10 has approved the disinvestment of 10% paid up equity capital of HCL out of Govt. of India's shareholding along with issue of fresh equity of equal size (10%) by the Company in the domestic market.

  • For improving power factor, Automatic Power Factor correction has been commissioned at ICC (Ghatshila, Jharkhnad) in September'10.

  • HCL has allocated Corporate Social Responsibility (CSR) budget of Rs. 40 Lakhs each for ICC and KCC, and Rs. 66 Lakhs for MCP for FY 2010-2011.

MINERAL EXPLORATION CORPORATION LIMITED (MECL)

  • Proposal for exploration of high magnesium flux in Rajbasa block, Sundargarh District, Orissa at an estimated cost of ` 110.53 lakhs has been approved on 2.12.2010.

  • Proposal for exploration of lead-zinc mineralization in Tikhi extension South block, Sawar Metasedimentary belt, district Ajmer, Rajasthan at an estimated cost of ` 239.76 lakhs has been approved on 2.12.2010

INTERNATIONAL COOPERATION (IC)


With a view to enhance cooperation between the two countries, the Ministry of Mines and the Department of Natural Resources, Canada (NRCan) signed a Memorandum of Understanding for cooperation in the field of Geology and Mineral Resources on 27th June, 2010, during the visit of Hon'ble Prime Minister of India to Canada.


Keeping in view the potential of  Ontario Province of Canada, the Ministry of Mines signed a Memorandum of Understanding with the Ministry of Northern Development, Mines and Forestry (MNDMF), Ontario Province, Canada, for cooperation in the field of Geology and Mineral Resources on 8th July, 2010.


To enhance cooperation with the African countries envisaged in the India Africa Forum Summit held in April, 2008, the Ministry of Mines and the Ministry of Mineral Resources and Energy of the Republic of Mozambique have entered into a Memorandum of Understanding on 30th September, 2010, and with the Ministry of Natural Resources Energy and Environment  Republic of Malawi on 3rd November, 2010 for cooperation in the field of Mineral Resources and geology .


To enhance cooperation with the mineral rich Mongolia a Joint Working Group (JWG) on Geology, Mines and Minerals between India and Mongolia was set up and the first meeting was held on 7-9 June, 2010 at Ulaanbaatar.


The Ministry of Mines and Toronto Stock Exchange (TSX) organised an interactive session on 'Investment opportunities in the Mining & Energy Sectors through Toronto Stock Exchange (TSX)' on 29th October, 2010, a New Delhi.  



http://www.indiainfoline.com/Markets/News/New-Mines-and-Minerals-Bill-drafted/5034783138

THE MINES AND MINERALS (REGULATION AND DEVELOPMENT)

ACT, 1957

Contents

SN

                                   Subject

Short title, extent and commencement

Declaration as to expediency of Union control

Definitions

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

Prospecting or mining operations to be under licenses or lease

4A

Termination of mining lease

Restrictions on the grant of prospecting licenses or mining lease

Maximum area for which a prospecting licence or mining lease may be granted

Periods for which prospecting licences may be granted or renewed

Periods for which mining lease may be granted or renewed

Royalties in respect of mining lease

9A

Dead rent to be paid by the Lease

PROCEDURE FOR OBTAINING PROSPECTING LICENCES ON MINING LEASES IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT

Application for prospecting licences or mining lease

Prefential right of certain persons.

Registers of prospecting licences and mining lease.

RULES FOR REGUALTING THE GRANT OF PROSPECTING LICENCES AND MINING LEASES.

Power of Central Government to make rules in respect of minerals.

13A

Power of State Government to make rules

Sections 4 to 13 not to apply to minor minera

Power of State Government to make rules in respect of minor minerals.

Power to modify mining lease granted before 25th October 1949.

SPECIAL POWERS OF CENTRAL GOVERNMENT TO UNDERTAKE PROSPECTING OR MINING OPERATIONS IN CERTAIN CASES.

Special powers of Central Government to undertake prospecting or mining operations in certain lands.

DEVELOPMENT OF MINERALS

Mineral development.

18A

Power to authorise Geological Survey of India to make investigation

MESCELLANEOUS.

Prospecting licences and mining leases to be void if in contravention of Act.  

Act and rules to apply to all renewals of prospecting licences and mining leases.

Penalties.

Cognizance of offences

Offences by companies

23A

Compounding of offences.

Power of entry and inspection

Recovery of certain sums as arrears of land revenue

Delegation of powers

Protection of action taken in good faith.

Rules and notifications to be laid before parliament and certain rules to be approved by Parliament

Existing rules to continue

Power of revision of Central Government

30A

Special provisions relating to mining leases for coal granted before 25th October, 1949.

Relaxation of rules in special cases

[Repealed].

Validation of certain acts and indemnity

THE FIRST SCHEDULE­- SPECIFIED MINERALS.

THE SECOND SCHEDULE- RATES OF ROYALTY.

THE THIRD SCHEDULE- [Repealed]



THE MINES AND MINERALS

(REGULATION AND DEVELOPMENT)

ACT, 1957,

ACT 67 OF 19571

                                                                                   [28TH December, 1957.]

An Act to provide for the regulation of mines and the development of minerals under the control of the Union.

Be it enacted by Parliament in the Eighth Year of the Republic of India as follows :-

PRELIMINARY

1.      Short title, extent and commencement - (1)  This Act may be called the Mines and Minerals (Regulation and Development) Act, 1957.

(2)               It extends to the whole of India.

(3)               It shall come into force on such date2 as the Central Government may by notification in the Official Gazette appoint.

2.      Declaration as to expediency of Union control - It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and development of minerals to the extent hereinafter provided.

3.      Definitions - In this Act unless the context otherwise requires,-

(a)     "minerals" includes all minerals except mineral oils ;

(b)    "mineral oils" includes natural gas and petroleum ;

(c)     "mining lease" means a lease granted for the purpose of undertaking mining operation and includes a sub-lease granted for such purpose ;

(d)    "mining operations" means any operations undertaken for the purpose of winning any mineral;

*



1The Act has been extended to Goa, Daman and Diu by Regulation 12 of 1962 section3 and schedule to Dadra and Nagar Haveli by Regulation 6 of 1963, section 2 and Schedule I and to Pondichery by Regulation 7 of section 3 and Schedule I.

21st June 1958 vide Notification No. G. S. R. 432 dated the 29th May 1958, see Gazette of India 1953 Extraordinary, Part II, section 3(I), page 225.

(e)     "minor minerals" means building stones gravel ordinary clay ordinary sand other than sand used for prescribed purposes and any other mineral which the Central Government may by notification in the Official Gazette declare to be a minor mineral;

(f)      "prescribed" means prescribed by rules made under this Act;

(g)    'prospecting licence" means a licence granted for the purpose of undertaking prospecting operations;

(h)    "prospecting operations" means any operations undertaken for the purpose of exploring locating or proving mineral deposits ;and

(i)      the expressions "mine" and 'owner", have the meanings asigned to them in the Mines Act, 1952.

GENERAL RESTRICTIONS ON UNDERTAKING

PROSPECTING AND MINING

OPERATIONS

4.      Prospecting or mining operations to be under licence or lease (1)  No person shall undertake any prospecting or mining operations in any area except under and in accordance with the terms and conditions of a prospecting licence or as the case may be a mining lease granted under this Act and the rules made thereunder :

Provided that nothing in this Sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with the terms and conditions of a prospecting license or mining lease granted before the commencement of this Act which is in force at such commencement.

(2) No prospecting license or mining lease or mining lease shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder.

1[4A.  Termination of mining leases (1)  Where the Central Government after consultation with the State Government is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do it may request the State Government to make a premature termination of a mining lease in respect of any mineral lease in respect of any mineral other than a minor mineral and on receipt of such request the State Government shall make an order making a premature termination of such and granting a fresh mining lease in favour of such Government company or corporation owned or controlled by Government as it may think fit.

(2)               Where the State Government after consultation with the Central Government is of opinion that it is expedient in the interest of regulation of mines and mineral development so to do it may by an order make premature termination of a mining lease in respect of any minor mineral and grant a fresh lease in respect of such mineral in favour of such Government company or corporation owned or controlled by  Government as it may think fit.]

5.      Restrictions on the grant of prospecting or licences or mining leases (1)  No prospecting licence or mining lease shall be granted by a State Government to any person unless he-

(a)          holds a certificate of approval in the prescribed form from the State Government;

(b)          produces from the Income-tax Officer concerned an income-tax clearance certificate in the prescribed form;

 (c)       satisfies such other conditions as may be prescribed.

Explanation.- For the purposes of this sub-section, a person shall be deemed to hold a certificate of approval notwithstanding that at the time his certificate of approval has expired if an application for its renewal is pending at that time.

*


1Section 4-A inserted by Act 56 of 1972, section 2.


(2)               Except with the previous approval of the Central Government no prospecting licence or mining lease shall be granted-

(a)     as respects any mineral specified in the First Schedule; or

(b)    to any person who is not an Indian national .

Explanation.- For the purposes of this sub-section, a person shall be deemed to be an Indian national-

(a)       in the case of a public company as defined in the Companies Act, 1956, only if a majority of the directors of the company are citizens of Indian and not less than fifty-one per cent of the share capital thereof is held by persons who are either citizens of India or companies as defined in the said Act;

(b)       in the case of a private company as defined in the said Act only if all the members of the company are citizens of India;

(c)       in the case of a firm or other association of individuals only if all the partners of the firm or members of the association are citizens of India; and

(d)       in the case of an individual only if he is a citizen of India.

6.      Maximum area for which a prospecting licnce of mining may be granted - 1[(1)  No person shall acquire in any one State in respect of any mineral or prescribed group of associated minerals-

(a)                               one or more prospecting licences covering a total area of more than twenty-five square kilometers; or

*



1Substituted by Act 56 of 1972, section 3

(b)                              one or more mining leases covering a total area of more than tem square kilometers

Provided that if the Central Government is of opinion that in the interests of the development of any  mineral it is necessary so to do it may for reasons to be recorded by it in writing permit any person to acquire one or more prospecting licences or mining leases covering an area in excess of the aforesaid total area ;

(c)                               any mining lease or prospecting licence in respect of an area which is not compact or contiguous ;

Provided that if the Central Government is of opinion that in the interests of the development of any mineral it is necessary so to do it may for reasons to be recorded in writing permit any person to acquire a prospecting licence or mining lease in relation to any area which is not compact or contiguous]

(2)               For the purposes of this section a person acquiring by or in the name of another person a prospecting licence or mining lease which is intended for himself shall be deemed to be acquiring it himself.

1[(3)  For the purposes of determining the total area referred to in sub-section (1)  the area held under a prospecting licence or mining lease by a person as a member of a co-operative society company or other corporation or a Hindu undivided family or a partner of a firm shall be deducted from the area referred to in sub-section (1) so that the sum total of the area held by such person under a prospecting licence or mining lease whethe as such member or partner or individually may not in any case exceed the total area specified in sub-section (1) ].


1Sub –section (3)  inserted by Act 56 of 1972 section 3.

7.         ********

8.      Periods for which prospecting licences may be granted or renewed (1)  - The period for which a prospecting licence may be granted shall not-

(a)    in the case of mica, exceed one year ; and

(b)    in the case of any other mineral exceed two years.

(2)               A prospecting licence may be renewed for one or more periods each not exceeding the period for which the prospecting licence was originally granted if the State Government is satisfied that a longer period is requied to enable the licencee to complete prospecting operations :

Provided that no prospecting licence granted in respect of a mineral specified in the First Schedule shall be renewed except with the previous approval of the Central Government.

(3)               Notwithstanding anything contained in sub-section (2), if the Central Government is of opinion that in the interests of mineral development it is necessary so to do it may for reasons to be recorded authorise the renewals of a mining lease for a further period or periods not exceeding in each case the period for which the mining lease was originally granted.

9.      Royalties in respect of mining leases (1)  The holder of a mining lease granted before the commencement of this Act shall notwithstanding anything contained in the instrument lease or in any law in force at such commencement pay royalty in respect of any 1[mineral removed or consumed by him or by his agent manager employee contractor or sub-lessee] from the leased area after such commencement at the rate for the time being specified in the Second Schedule in respect of that mineral.

(2)               The holder of a mining ease granted on or after the commencement of this Act shall pay royalty in respect of any 1[mineral removed or consumed by him or by his agent manager employee contractor or sub-lessee] form the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral.

2[(2A)  The holder of a mining lease whether granted before or after the commencement of the Mines and Mineral (Regulation and Development) Amendment Act, 1972, shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tone per month].

(3)               The Central Government may by notification in the Official Gazette amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification :

*



1Substituted for the words "mineral removed by him" by Act 56 of 1972 section 4.

2Sub-section 2-AS inserted by ibid.

               1[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of four years.]

2[9A.  Dead-rent to be paid by the lessee- (1)  the holder of a mining lease whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 shall notwithstanding any thing contained in the instrument of lease or in any other law for the time being in force pay to the State Government every year dead rent at such rate as may be specified for the time being in the Third Schedule for all the areas included in the instrument of lease :

           Provided that where the holder of such mining lease becomes liable under section 9  to pay royalty for any mineral removed or consumed by him or by his agent manager employee contractor or sub-lessee from the leased area he shall be liable to pay either such royalty or the dead rent in respect of that area whichever is greater.  

(2)               The Central government may by notification in the Official Gazette amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered shall take effect from such date as may be specified in the notification :

           Provided that the Central Government shall not enhanced the rate of the dead rent in respect of any such area more than once during any period of four years.]

PROCEDURE FOR OBTAINING PROSPECTING LICENCES

OR MINING LEASES IN RESPECT OF LAND IN WHICH THE

MINERALS VEST IN THE GOVERNMENT
10.  Application for prospecting licences or mining lease - (1)  An application for a prospecting licence or a mining lease in respect of any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied the prescribed fee.
*



1Proviso substituted by Act 56 of 1972.
2Section 9-A inserted by ibid.
(2)               Where an application is received under sub-section (1) there shall be sent to the applicant an acknowledgement of its receipt within the prescribed time and in the prescribed form.
(3)               On receipt of an application under this section the State Government may having regard to the provisions of this Act and any rules made thereunder grant or refuse to grant the licence or lease.
11.  Preferential right of certain persons (1)  Where a prospecting licence has been granted in respect of any land the licence shall have a preferential right  for obtaining a mining lease in respect of that land over any other person:
           Provided that the State Government is satisfied that the licensee has not committed any breach of the terms and conditions of the prospecting licence and is otherwise a fit person for being granted the mining lease.
(2)               Subject to the provisions of sub-section (1) where two or more persons have applied for a prospecting licence or a mining lease in respect of the same land the applicant whose application was received earlier shall have a preferential right for the grant of the licence or lease as the case may be over an applicant whose application was received later :
           Provided that where any such applications are received on the same day the State Government after taking into consideration the matters specified in sub-section (3)  may grant the prospecting licence or mining lease as the case may be to such one of the applicants as it may deem fit.
(3)               The matters referred to in sub-section (2) are the following :-
(a)        any special knowledge of or experience in prospecting operations or mining operations as the case may be possesed by the applicant;
(b)       the financial resources of the applicant;
(c)        the nature and quality of the technical staff employed by the applicant;
(d)       such other matters as may be prescribed.
(4)               Notwithstanding anything contained in sub-section (2) but subject to the provisions of sub-section (1) the State Government may for any special reasons to be recorded and with the previous approval of the Central Government grant a prospecting licence or a mining lease to an applicant whose  application was received later in preference to an applicant whose application was received earlier.
12.  Registers of prospecting licences and mining leases (1)  The State Government shall cause to be maintained in the prescribed form-
(a)     a register of applications for prospecting licences;
(b)    a register of prospecting licensees ;
(c)     a register of applications for mining leases ; and
(d)    a register of mining lessees;
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 State Government may fix.
RULES FOR REGULATING THE GRANT OF PROSPECTING

LICENCES AND MINING LEASES

13.  Power of Central Government to make rules in respect of minerals (1)  The Central Government may by notification in the Official Gazette make rules for regulating the grant of prospecting licences and mining leases in respect of minerals and for purposes connected therewith.

(2)               In particular and without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters, namely :-

(a)        the person by whom and the manner in which applications for prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be made and the fee to be paid therefor ;

(b)        the time within which and the form in which acknowledgment of the receipt of any such application may be sent;

(c)        the matters which may be considered where applications in respect of the same land are received on the same day;

(d)        the persons to whom certificates of approval may be granted the form of such certificates and the fees payable for the grant or renewal thereof;

(e)        the authority by which prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be granted;

(f)                 the procedure for obtaining a prospecting licence or a mining lease in respect of any land in which the minerals vest in a person other than the Government and the terms on which and the conditions subject to which such a licence or lease may be granted or renewed;

(g)        the terms on which and the conditions subject to which any other prospecting licence or mining lease may be granted or renewed;

(h)        the facilities to be afforded by holders of mining leases to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations;

(i)                  the fixing and collection of dead rent fines fees or other charges and the collection of royalties in respect of-

(i)         prospecting licence.

(ii)        mining leases.

(iii)     Minerals mined, quarried, excavated or collected;

(j)                  the manner in which rights of third parties may be protected (whether by payment of compensation or otherwise) in cases where any such party any be prejudicially affected reason of any prospecting or mining operations ;

(k)       the grouping of associate minerals for the purposes of section 6;

(l)                  the manner in which and the conditions subject to which a prospecting licence or a mining lease may be transferred;

(m)      the construction maintenance and use of roads power transmission liens tramways railways aerial ropeways pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease;

(n)        the form of registers to be maintained under this Act;

(o)        the disposal or discharge of any tailings slime or other waste products arising from any mining or metallurgical operations carried out in a mine;

(p)        the reports and statements to be submitted by holders of prospecting licences or owners of mines and the authority to which such reports and statements shall be submitted;

(q)        the period within which applications for revisions of any order passed by a Stated Government or other authority in exercise of any power conferred by or under this Act, may be made and the manner in which such applications shall be disposed of; and

(r)         any other matter which is to be or may be prescribed under this Act.

1[13A.  Power of Central Government to make rules for the grant of prospecting licensies or mining leases in respect of territorial waters or continental shelf of India (1)  The Central Government may by notification in the Official Gazette make rules for the grant of prospecting licenses or mining leases in respect of any minerals underlying the ocean within the territorial water or the continental shelf of India.

(2)        Without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters namely-

(a)       the conditions limitations and restrictions subject to which such prospecting licenses or mining leases may be granted;

(b)      regulation of exploration and exploitation of minerals within the territorial waters of the continental shelf of India;

(c)       ensuring that such exploration or exploitation does not interfere with navigation ; and

(d)      any other matter which is required to be or may be prescribed.]

14.  Sections 4 to 13 not to apply to minor minerals - The provisions of sections 4 to 13 (inclusive) shall not apply to 2[quarry lease mining leases or other mineral concessions] in respect of minor minerals.

15.  Power of State Governments to make rules in respect of minor minerals-(1)  The State Government may by notification in the Official Gazette make rules for regulating the grant of 3[quarry leases mining leases or other mineral on cessions] in respect of minor minerals and for purposes connected therewith.

*



1Section 13-A inserted by Act 56 of 172 section 5.

2Substituted for the words "prospecting licenses and Measuring leases" by ibid section 7.

3Substituted for the words "prospecting licenses and mining leases" by ibid section 8.

(2)               Until rules are made under sub-section (1) any rules made by a State Government regulating the grant of 1[quarry leases mining leases or other minerals concessions] in respect of minor minerals which are in force immediately before the commencement of this Act shall continue in force.

(3)               2[(3)  The holder of a mining lease or any other mineral concession granted under any rule made under sub-section (1) shall pay royalty in respect of minor minerals removed of consumed by him or by his agent manager employee contractor or sub-lessee at the rate prescribed for the time being in the rules framed by the State Government in respect of minor minerals;

Provided that the State Government shall not enhance the rate of royalty in respect of any minor mineral for more than once during any period of four years.]

16.  Power to modify mining leases granted before 25th October, 19493 - [(1)  (a) All mining leases granted before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 if in force at such commencement shall be brought into conformity with the provisions of this Act and the rules made thereunder within six months from such commencement or such further time as the Central Government may by general or special order specify in this behalf .

(b)        Where the rights under any mining lease granted by the proprietor of an estate or tenure before the commencement of the Mines and Minerals (Regulation and Development)  Amendment Act 1972 have vested on or after then25th day of October 1949 in the State Government in pursuance of the provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or tenures or provides for agrarian reform such mining lease shall be brought into conformity with the provisions of this Act and the rules made thereunder within six months from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act 1972 or within such further time as the Central Government may buy general or special order specify in this behalf.]

*



1Substituted for the word "Prospecting licenses and mining lease" by Act 56 of 1972 section 8.

2Sub-section (3) inserted and shall be deemed always to have been inserted by ibid section 3

3Sub-section (1)substituted by ibid section 9.

(2)               The Central Government may by notification in the Official gazette make rules for the purposes of giving effect to the to the provisions of sub-section (1) and in particular such rules shall provide-

(a)      for giving previous notice of the mo9dification or alteration proposed to be made in any existing mining lease to the lessee and where the lessor and for affording him an opportunity of showing cause against the proposal;

(b)     for the payment of compensation to the lessee in respect of the reduction of any area covered by the existing mining lease;

(c)      for the principles on which the manner in which and the authority by which the said compensation shall be determined.

SPECIAL POWERS OF CENTRAL GOVERNMENT TO

UNDERTAKE PROSPECTING OR MINING OPERATIONS

IN CERTAIN CASES

17.  Special powers of Central Government to undertake prospecting or mining operations in certain lands -(1)  The provisions of this section shall apply1[*  *] in respect of land in which the minerals vest in the Government of a State 2[or any other person].

(2)               Notwithstanding anything contained in this Act the Central Government after consultation with the State Government may undertake prospecting or mining operations in any area not already held under any prospecting licence or mining lease and where it proposes to do so it shall by notification in the Official Gazette,-

*



(a)     specify the boundaries of such area,

(b)    state whether prospecting or mining operations will be carried out in the area ; and

(c)     specify the mineral or minerals in respect of which such operations will be carried out.

1The word "only omitted by Act 56 of 1972 section 10.

2the words "or any other person" inserted by ibid.

(3)               Where in exercise of the powers conferred by sub-section (2) the Central Government undertakes prospecting or mining operation in any area the Central Government shall be liable to pay prospecting fee royalty surface rent or dead rent as the case may be at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under a prospecting licence or mining lease.

(4)               The Central government with a view to enabling it to exercise the powers conferred on it by sub-section (2) may after consultation with the State Government by notification in the Official Gazette declare that no prospecting licence or mining lease shall be granted in respect of any land specified in the notification.

DEVELOPMENT OF MINERALS
18.  Mineral Development - (1)  It shall be the duty of the Central Government to take all such steps as may be necessary for the conservation and development of minerals in India and for that purpose the Central Government may by notification in the Official Gazette make such rules as it thinks fit.
(2)  In particular an without prejudice to the generality of the foregoing power such rules may provide for all or any of the following matters namely-   
(a)     the opening of the new mines an the regulation of mining operations in any area;
(b)    the regulation of the excavation or collection of minerals form any mine;
(c)     the measures to be taken by owners of mines for the purpose of beneficiation of ores including the provision of suitable contrivances for such purpose;
(d)    the development of mineral resources in any area;
(e)     the notification of all new borings an shaft sinkings and the preservation of bore-hole records an specimens of all new bore-holes;
(f)      the regulation of the arrangements for the storage of minerals and the sticks thereof that may be kept by any person;
(g)     the submission of samples of minerals from any mine by the owner thereof and the manner in which and the authority to which such samples shall be submitted; and the taking of any mineral from any mine by the State Government or any other authority specified by it in that behalf ; and
(h)     the submission by owners of mines of such special or periodical returns and reports as may be specified and the form in which and the authority to which such returns and reports shall be submitted.
(3)               All rules made under this section shall be binding on the Government.
Contents         Next
http://punjabrevenue.nic.in/mines_mineral_act57.htm

The year 2010 was significant in the area of coal production, a number of significant steps taken up in the sector which include competitive bidding of coal blocks, expansion of coal production capacity, offering of 10 per cent share of Coal India Ltd. to the public  and highest ever lignite production.

With a view to bringing in greater transparency and demonstrable objectively in the allocation of coal and lignite blocks for captive mining, process of selection through competitive bidding initiated during the year. Accordingly, the Mines and Minerals (Development & Regulation) Act, 1957 was amended and enacted in September 2010. The Amendment provides for grant of reconnaissance permit, prospecting licence or mining lease in respect of an area containing coal and lignite through auction by competitive bidding. The Government is now examining the modalities for preparation of the guidelines/legal framework for conducting the competitive bidding of coal and lignite blocks.

More coal for power generation

  • During the year more coal linkages granted for increased generation of power.  Till October 2010, the Standing Linkage Committee (Long Term) for Power recommended grant of LoA for 104 Thermal Power Plants/IPPs/CPPs for 26824 MWs of power.

  • Improved coal stock position was recorded during the year and it was 11.854 MT as on 2nd November 2010 at the thermal power stations as against 9.289 MT as on 2nd November 2009.

  • A scheme of Forward E-auction was to meet long term requirements of actual consumers of coal initiated.

  • Ministry of Coal streamlined guidelines on 26.2.2010 for issue of LOA/allocation of coal on tapering basis to various consumers of power, cement and sponge iron whohave been allocated coal blocks but whose supply does not synchronize with operation of end use plants.

Jharia Rehabilitation Plan

Implementation of the Master Plan dealing with fire, subsidence, rehabilitation and diversion of surface infrastructure in Jharia and Raniganj coalfields within the leasehold areas of Bharat Coking Coal Lomited (BCCL) and Eastern Coalfields Limited (ECL) was approved by the Government at an estimated investment of Rs.9657.61 crore(Rs.7028.40 crore for Jharia Coalfield and Rs.2629.21 crore for Raniganj Coalfield) started.

The implementation of Master Plan will facilitate rehabilitation of 395795 people in BCCL and 180263 people in ECL living in the most endangered areas. Implementation of the Master Plan is being monitored by a High Powered Central Committee (HPCC) under the Chairmanship of Secretary (Coal).

Coal Gasification

Coal Gasification had been notified as one of the end uses under captive mining policy to facilitate the allotment of coal blocks to potential entrepreneurs.  5 lignite blocks and 2 coal blocks have been identified so far for Underground Coal Gasification (UCG) purpose.  Guidelines have been issued on for carrying out commercial exploitation of underground Coal Gasification.

Some other significant decisions taken during the year include-

·        Guidelines for Mine Closure were issued to take care of all environmental parameters.

·        Expansion of coal production capacity of Rajmahal OC Project of ECL from 10.5Mty to 17.0 Mty with an incremental capital investment of Rs.153.82 crore has been sanctioned.

·        RCE of Adriyala Shaft Project of SCCL for a coal production capacity of 2.81Mty and an overall outlay of Rs.846.06 crore and a net capital investment of Rs.779.26 crore has been approved.

·        RCE of NLC's Barsingsar Mine of 2.10 mtpa capacity of lignite and Barsingsarthermal Power Station of 2 x 125 MW capacity at Barsingsar at a capital cost of Rs.1800.69 crores has been approved.

·        37 Mining Plans of various Coal Blocks (captive as well as non-captive) have been approved.

Initial Public Offering of CIL

           To encourage public participation in the Govt. owned companies, the listing of CIL at Bombay Stock Exchange (BSE) managed in November  this year by offering 10% of the Government's share holdings, through a transparent book building process. The Coal India IPO was highly successful and created history in the Indian capital market.

 The Government had generated the funds of Rs.15200 crores through the said IPO.  The Listing has improved CIL's standing in the market and also improved valuation of the company tremendously.  It is also expected to infuse better corporate management in the company and would spur the company to improve its performance standards and statutory compliances.

More Compensation for Land Acquisition

During the year upto October 2010, an amount of Rs.27.65 crores has been released to coal companies for payment of compensation against land acquision.

Highest ever lignite production achieved

Lignite Corporation Ltd., an undertaking of the Ministry of Coal recorded all round development and growth during the year. Significant achievement of the company include-

  • Lignite production from all Mines of Lignite Corporation Ltd. during the current financial year put together at 223.38 LT is the highest for any year since inception. (previous highest 215.86 LT during 2007-08)

  • During the financial year, upto October, total overburden removal from all Mines ofNeyveli Lignite put together at 1594.25 LM3    is the highest for any year since inception. (previous highest 1463.44 LM3   during 2008-09).

  • Similarly during the period overburden removal from Mine-II at 782.63 LM3   is the highest for any year since inception. (previous highest 659.64 LM3 during 2008-09)

  • Power Generation from all thermal stations put together at 17656.04 MU is the highest for any year since inception. (previous highest 17456.89 MU during 2007-08)

  • Power Generation from TPS-II at 10559.69 MU is the highest for any year since inception. (previous highest 10517.69 MU during 2007-08)

  • Export of Power from all thermal stations put together at 14828.22 MU is the highest for any year since inception. (previous highest 14775.84 MU during 2007-08)

The above achievement is without any capacity addition.

Performance during 2010-11:

  • The net sales for the first half year 2010-11 stands at Rs.2208.63 crores as compared to Rs.1765.85 crores in the previous year 2009-10.

  • Neyveli Lilgnite Corporation's profit before tax stands at Rs.859.84 crore for the first half year 2010-11 as compared to Rs.748.82 crores in the same period of previous year.

  • Mines-II Expansion Project at Neyveli increasing the capacity of Mine-II from 10.5 MTPA to 15.0 MTPA of lignite, attained full Lignite Production capacity on 12.03.2010 and was dedicated to the nation in April 2010.

  • Barsingsar Mine Project (2.1 MTPA of Lignite) at Rajasthan attained full production capacity on 31.01.2010.

  • The first unit of 125 MW of Barsingsar Thermal Power Project, was synchronized on 27.10.2009 and was dedicated to the nation by the Hon'ble Minister of State for Coal, Shri Sriprakash Jaiswal on 5.6.2010. The second unit of 125 MW was also synchronized on 5.6.2010.

NLC forges ahead in all fronts and with its expansion activities the company is poised for substantial growth in the years to come.

Achievement of Coal India Limited

Physical and Financial Performance
           Performance during June 2009 to October 2010

Sl. No.

Particulars

Actual

Coal Production

588.32

Offtake (MT)

584.83

Productivity (T/Manshift)

4.32

Profit (Rs. Cr.)

19,821.67



CIL have initiated the process of integrated environment management system (ISO:14001)alongwith quality management system (ISO:9001). 53 projects including one coal beneficiation plants have been accredited with ISO:14001 certification.

CIL has proposed to set up 20 non-coking and coking coal (NLW) washeries under Build, Operate & Maintain (BOM) scheme and turnkey scheme. LoI has already been issued to M/s HEC for Madhuban Washery in BCCL and bid evaluation for two washeries are at the final stage. Additionally CIL have pre-qualified 17 parties for the 11 Washeries amongst whom the tenders would be floated shortly.


No curbs on iron ore exports from Orissa
BS Reporter / Kolkata/ Bhubaneswar December 23, 2010, 0:55 IST


Even as the ban in iron ore exports by the Karnataka government continues to be shrouded in controversy, the Orissa government has stated that there would be no curbs on iron ore exports from the state.
"The Government of India has decided that iron ore exports from Orissa cannot be stopped", minister for steel & mines Raghunath Mohanty said in the state assembly.
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The minister's comment came in response to a query by senior BJP leader K V Singh Deo who had questioned as to whether the state had any plan to restrict iron ore exports in the light of a ban on exports of the ore announced by the Karnataka government.
On value addition of mineral ores within the state, Mohanty said, "the Central government has to take a call on the matter. If the value addition clause is incorporated in the proposed Mines & Minerals (Development and Regulation) MMDR Bill-2010, all the mineral rich states would be benefited. The state Chief Minister Naveen Patnaik was the first person to raise the demand for including a clause on value addition in the MMDR Bill".
The demand for value addition clause was made by the state Chief Minister last month during his meeting with the Union finance minister Pranab Mukherjee who is heading the Empowered Group of Ministers (EGoM) on finalizing the MMDR Bill.
This apart, the state has demanded the introduction of a system of competitive bidding in notified mining lease areas of the country for allocation of bulk minerals like iron ore, chrome ore and bauxite which is in conformity with international practices.
The state had argued that in the petroleum sector, allocation is done through competitive global bidding and the Government of India is thinking of allocating coal blocks through this route. The same practice must be extended to precious mineral ores like iron ore, bauxite and chrome ore, Mohanty said.
This apart, the state government has suggested that the Royalty Commission should be empowered to fix royalty rates for different minerals instead of making mere recommendations to the Government of India.
While welcoming the proposal in the MMDR Bill-2010 which would make it mandatory for the miners to share 26 per cent of their profits with the local affected people, the state government has suggested that a Local Community Development Fund can be constituted for this purpose.
In addition to this, the Orissa government has sought reservation for public sector undertakings and SMEs (Small and Medium Enterprises) in the mining lease areas. The state government has pleaded for the inclusion of the value addition clause in the MMDR Bill which can unleash rapid economic development in the mineral bearing states.
The state government was open to setting up of the National Mineral Regulatory Authority (NMRA) on the condition that the regulator can adjudicate on cases pertaining to mineral concessions and recommendations of prospecting license, but should not override the powers of the state governments.
It has been decided to set up an independent regulator called NMRA through an ordinance under the existing MMDR Act. The independent regulator will have the powers to investigate and prosecute miners involved in illegal mining.
The regulator is being set up in the wake of alleged increase in illegal mining activities in different states including Orissa.
Earlier, the state government urged the Government of India to put in place a monitoring mechanism to ensure the effective implementation of the changes proposed in the MMDR Act, 1957.
The state had argued that the monitoring mechanism would ensure that the measures are implemented effectively and the benefits of mining activities percolate to the affected people.
No curbs on iron ore exports from Orissa
BS Reporter / Kolkata/ Bhubaneswar December 23, 2010, 0:55 IST


Even as the ban in iron ore exports by the Karnataka government continues to be shrouded in controversy, the Orissa government has stated that there would be no curbs on iron ore exports from the state.
"The Government of India has decided that iron ore exports from Orissa cannot be stopped", minister for steel & mines Raghunath Mohanty said in the state assembly.
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State spends Rs 4098 crore under MGNREGA till November-end

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Centre asks Orissa for Action Plan to clear mineral reconnaissance permit

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Orissa submits response on Mines ministry's guidelines on JVs, MoUs

-

SC showcause to Orissa on irregularities in NREGS

-

1131 cases of mineral loot detected in one year

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Govt to come up with new system for leaks







The minister's comment came in response to a query by senior BJP leader K V Singh Deo who had questioned as to whether the state had any plan to restrict iron ore exports in the light of a ban on exports of the ore announced by the Karnataka government.
On value addition of mineral ores within the state, Mohanty said, "the Central government has to take a call on the matter. If the value addition clause is incorporated in the proposed Mines & Minerals (Development and Regulation) MMDR Bill-2010, all the mineral rich states would be benefited. The state Chief Minister Naveen Patnaik was the first person to raise the demand for including a clause on value addition in the MMDR Bill".
The demand for value addition clause was made by the state Chief Minister last month during his meeting with the Union finance minister Pranab Mukherjee who is heading the Empowered Group of Ministers (EGoM) on finalizing the MMDR Bill.
This apart, the state has demanded the introduction of a system of competitive bidding in notified mining lease areas of the country for allocation of bulk minerals like iron ore, chrome ore and bauxite which is in conformity with international practices.
The state had argued that in the petroleum sector, allocation is done through competitive global bidding and the Government of India is thinking of allocating coal blocks through this route. The same practice must be extended to precious mineral ores like iron ore, bauxite and chrome ore, Mohanty said.
This apart, the state government has suggested that the Royalty Commission should be empowered to fix royalty rates for different minerals instead of making mere recommendations to the Government of India.
While welcoming the proposal in the MMDR Bill-2010 which would make it mandatory for the miners to share 26 per cent of their profits with the local affected people, the state government has suggested that a Local Community Development Fund can be constituted for this purpose.
In addition to this, the Orissa government has sought reservation for public sector undertakings and SMEs (Small and Medium Enterprises) in the mining lease areas. The state government has pleaded for the inclusion of the value addition clause in the MMDR Bill which can unleash rapid economic development in the mineral bearing states.
The state government was open to setting up of the National Mineral Regulatory Authority (NMRA) on the condition that the regulator can adjudicate on cases pertaining to mineral concessions and recommendations of prospecting license, but should not override the powers of the state governments.
It has been decided to set up an independent regulator called NMRA through an ordinance under the existing MMDR Act. The independent regulator will have the powers to investigate and prosecute miners involved in illegal mining.
The regulator is being set up in the wake of alleged increase in illegal mining activities in different states including Orissa.
Earlier, the state government urged the Government of India to put in place a monitoring mechanism to ensure the effective implementation of the changes proposed in the MMDR Act, 1957.
The state had argued that the monitoring mechanism would ensure that the measures are implemented effectively and the benefits of mining activities percolate to the affected people.
India's Mineral Sector
India is endowed with significant mineral resources. India produces 89 minerals out of  which 4 are fuel minerals, 11 metallic, 52 non-metallic and 22 minor minerals.

The total value of mineral production (excluding atomic minerals was Rs. 404768 million in 1998-99. The entire metallic production is accounted for by iron-ore, copper-ore, chromite and/or zinc concentrates, gold, manganese ore, bauxite, lead concentrates, and silver. Amongst the non-metallic minerals, 92 percent of the aggregate value is shared by limestone, magnesite, dolomite, barytes, kaolin, gypsum, apatite & phosphorite, steatite and fluorite.

INDIA'S CONTRIBUTION TO THE WORLD'S MINERAL PRODUCTION
ROLE OF THE GOVERNMENT - Ministry of Mines
CONTRIBUTION OF THE PUBLIC SECTOR
CONTRIBUTION OF OTHER GOVERNMENT ORGANISATIONS



INDIA'S CONTRIBUTION TO THE WORLD'S MINERAL PRODUCTION
India is the world's largest producer of mica blocks and mica splittings. With the recent spurt in world demand for chromite, India has stepped up its production to reach the third rank among the chromite producers of the world.
Besides, India ranks 3rd in production of coal & lignite and barytes, 4th in iron ore, 6th in bauxite and manganese ore, 10 in aluminium and 11th in crude steel in the World.

Life Indices: Some Important Minerals

S.No.

Mineral/Ore/Metal Recoverable reserves as on 1.1.1985 Depletion during 1985-97 Recoverable Reserves as on 1.1.1997 Projected production during 1996-97 Balance life at 1996-97 level of production
. .

(m.tonnes)

(m.tonnes)

(m.tonnes)

(m.tonnes)

(years)++

1

2

3

4

5

6

1

Crude oil (as on1.1.91)

993.00

230.00

763.00

50.00

15

2

Natural Gas (B.Cu.M.) (as on 1.4.90)

858.00

161.00

697.00

30.00

23

3

Coal (as on 1.1.91) . . . . .

I

Coking

8507.00

201.00

8306.00

39.00

213

II

Non Coking

60346.00

1397.00

58949.00

269.00

219

4

Bauxite

2333.00

80.00

2253.00

8.00

282

5

Copper metal (as on 31.3.88)

3.95

0.43

3.52

0.06

64

6

Lead metal (as on 1.1.89)

1.93

0.56

1.37

0.10

14

7

Zinc metal (as on 1.1.89)

7.00

1.10

5.90

0.15

38

8

Gold (as on 1.1.89)

103000.00

16727.00

86273.00

1850.00

47

9

Iron ore

10440.00

686.00

9754.00

72.00

135

10

Chromite Ore

139.00

15.00

124.00

2.40

52

11

Magnesite

222.00

6.70

215.30

0.73

295

12

Manganese Ore

83.17

17.65

65.52

1.80

36

13

Limestone

69353.00

876.00

68477.00

101.00

678

14

Rock Phosphate High grade

14.78

8.79

5.99

0.72

8

15

Sillimanite

I

Masslve

0.50

0.35

54.25

0.017

3191

II

Beach sand

54.10

16

Kyanite

1.55

0.51

1.04

0.06

19

17

Dolomite (Usable Grade)

4608.00

32.00

4576.00

3.20

1430




ROLE OF THE GOVERNMENT -Department of Mines
The Ministry of Mines is responsible for the survey and exploration of all minerals, other than natural gas, petroleum, and atomic minerals; for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc., and for the administration of the Mines and Minerals (Regulation and Development) Act, 1957, in respect of all mines and minerals, other than coal, natural gas, petroleum, and atomic minerals.
The following organisations operate under the jurisdiction of the Ministry of Mines:

Survey and

Exploration

Regulation and

Conservation

Mining and

Processing

Geological Survey of India

Indian Bureau of Mines

Bharat Aluminium Company Limited

Mineral Exploration Corporation Limited

Hinudstan Zinc Limited

Hindustan Copper Limited

National Aluminium Company Limited

Sikkim Mining Corporation

Bharat Gold Mines Limited





CONTRIBUTION OF THE PUBLIC SECTOR
The public sector contributes over 88 percent of the total value of mineral production.
Public sector enterprises like the National Mineral Development Corporation, Kudremukh Iron Ore company, Steel Authority of India Limited and Orissa Mining Corporation dominate the iron ore sector.
Two Public sector enterprises - National Aluminum Company and Bharat Aluminum Company, account for over 66 percent of alumunium production in India. Hindustan copper Limited predominates the copper ore mining sector, zinc-lead ore mining and processing is dominated by Hindustan Zinc Limited.
Bharat Gold Mines, a public enterprises of the Government of India and Hutti Gold Mines Limited (a Government of Karnataka undertaking), are engaged in the mining of gold. Rajasthan State Mines and Minerals Limited and Andhra Pradesh Mining Development corporation predominate the mining of rock phosphate and barytes respectively.

CONTRIBUTION OF OTHER GOVERNMENT ORGANISATIONS
Geological Survey of India (GSI)
The GSI is the principal agency responsible for the assessment of geological and regional mineral resources of the country. GSI was established in 1851 and is one of India's oldest investigative agencies in the field of earth sciences. Its areas of operation encompass scientific surveys and research, for locating mineral resources. GSI operates through six regional offices and four specialized wings - marine, coal geophysics, airborne surveys and training.
The GSI has to its credit geological mapping, covering an area of approximately 3.146 million sq.km, or 94 percent of the area of India. The maps are on a 1:63,360/ 1:50,000 scale, the data having been synthesized to produce 1:2,000,000 scale geological maps of India, which have been correlated with the global set up as per international standards. The GSI is also actively involved in the research and development of mapping and exploration techniques. It has set up a chain of modern petrological paleontological, chemical, mineralogical, geochronological, geotechnical and geophysical laboratories in its different operational bases, and offers its facilities and services on payment.
Geological maps and data are available with GSI on a commercial basis.
Indian Bureau of Mines (IBM)
IBM is the principal government agency responsible for compiling exploration data and mineral maps and for providing access to the latest information is respect of mineral resources in the country. IBM has both regulatory as well as service functions.
IBM offers technical expertise and proven experience in the fields of geology, mine planning and feasibility studies. The geological services of IBM include survey and preparation of mine plans, preparation of geological plans, preliminary geological appraisal of mineral properties, including the formulation of an initial scheme of detailed exploration with estimate of cost and preliminary reconnaissance, quick survey to determinate potential areas out of large properties, etc.
IBM's technical consultancy services include the preparation of techno-economic feasibility reports, evaluation of feasibility reports prepared by other consultants and organisations etc., production planning and grade control in working mines, evolution of flowcharts for mineral benefaction and agglomeration to scale up to large commercial plants and engineering design data for commercial plants.
Besides these technical consultancy services, IBM also performs regulatory functions, namely:- enforcement of Mines and Minerals (Regulation and Development) Act, Mineral Concession Rules, Mineral Conservation and Development Rules and compliance with Environmental Protection Act.
IBM disseminates statistical information on mines, minerals, metals and mineral based industries through its various publications which are available for sale on commercial basis.
Mineral Exploration Corporation Limited (MECL)
MECL is a public sector company, which undertakes detailed exploration of various minerals/ores by drilling, and exploratory mining. It is also engaged in proving the existence of reserves for their eventual exploitation. Exploration is taken up both on a promotional basis on behalf of the Government of India and on contractual basis for other agencies.

http://mines.nic.in/imsector.html

Last Updated: 29/11/2004




National Mineral Policy, 1993
( For non - fuel and non - atomic minerals )
PREAMBLE
REGULATION OF MINERALS
OBJECTIVES
ROLE OF THE STATE IN MINERAL DEVELOPMENT
SURVEY AND EXPLORATION
NATIONAL INVENTORY OF MINERAL RESOURCES
STRATEGY OF MINERAL DEVELOPMENT
FOREIGN TRADE
FISCAL ASPECTS
RESEARCH AND DEVELOPMENT
CONCLUSIONS


1. PREAMBLE
1.1. Minerals are valuable natural resources being finite and non-renewable. They constitute the vital raw materials for many basic industries and are a major resource for development. Management of mineral resources has, therefore, to be closely integrated with the overall strategy of development; and exploitation of minerals is to be guided by long-term national goals and perspectives. In this context the need has been felt to spell out in a statement the different elements of the policy, which has evolved over the years, relating to development of our mineral resources and in regard to areas of concern which have emerged in recent years.
1.2. The country is not endowed with all the requisite mineral resources. It is, therefore, imperative to achieve the best use of available mineral resources through scientific methods of mining, beneficiation and economic utilisation. Simultaneously, it is essential to keep in view the present and future needs of defence and development of the country and strive to ensure indigenous availability of basic and strategic minerals to avoid disruption of core industrial production in times of international strife.
1.3. These aspects constitute the essentials of National Mineral Policy which has evolved over the years. The policy also emphasises certain new aspects and elements like mineral exploration in the sea-bed, development of proper inventory, proper linkage between exploitation of minerals and development of mineral industry, preference to members of the Scheduled Tribes for development of small deposits in Scheduled Areas, protection of forest, environment and ecology from the adverse effects of mining, enforcement of mining plan for adoption of proper mining methods and optimum utilisation of minerals, export of minerals in value added form and recycling of metallic scrap and mineral waste.


2. REGULATION OF MINERALS
2.1. Management of mineral resources is the responsibility of the Central Government and the State Governments in terms of Entry 54 of the Union List (List I) and Entry 23 of the State List (List II) of the Seventh Schedule of the Constitution of India. The Mines and Minerals (Regulation and Development) Act, 1957 lays down the legal frame-work for the regulation of mines and development of all minerals other than petroleum and natural gas. The Central Government have framed the Mineral Concession Rules 1960 for regulating grant of prospecting licences and mining leases in respect of all minerals other than atomic minerals and minor minerals. The State Governments have framed the rules in regard to minor minerals. The Central Government have also framed the Mineral Conservation and Development Rules, 1988 for conservation and systematic development of minerals. These are applicable to all minerals except coal, atomic minerals and minor minerals.
2.2. The Central Government in consultation with the State Governments, shall continue to formulate the legal measures for the regulation of mines and the development of mineral resources to ensure basic uniformity in mineral administration and to ensure that the development of mineral resources keeps pace, and is in consonance with the national policy goals. The regulation of mines and development of mineral resources in accordance with the national goals and priorities shall be the responsibility of the Central and State Governments.


3. OBJECTIVES
The basic objectives of the mineral policy in respect of minerals shall be as follows:
(a) to explore for identification of mineral wealth in the land and in off-shore areas;
(b) to develop mineral resources taking into account the national and strategic considerations and to ensure their adequate supply and best use keeping in view the present needs and future requirements;
(c) to promote necessary linkages for smooth and uninterrupted development of the mineral industry to meet the needs of the country;
(d) to promote research and development in minerals;
(e) to ensure establishment of appropriate educational and training facilities for human resources development to meet the manpower requirements of the mineral industry;
(f) to minimise adverse effects of mineral development on the forest, environment and ecology through appropriate protective measures; and
(g) to ensure conduct of mining operations with due regard to safety and health of all concerned.


4. ROLE OF THE STATE IN MINERAL DEVELOPMENT
The role to be played by the Central and State Governments in regard to mineral development has been extensively dealt in the Mines and Minerals (Regulation and Development) Act, 1957 and rules made under the Act by the Central Government and the State Governments in their respective domains. The provisions of the Act and the Rules will be reviewed from time to time and harmonised with the policies governing industrial and socio-economic developments in the country.


5. SURVEY AND EXPLORATION
5.1. The Geological Survey of India is the principal agency for geological mapping and regional mineral resources assessment of the country and its exclusive economic zone and shall be responsible for drawing up action oriented plans in close co-operation with all other agencies engaged in this task. The Department of Ocean Development and its agencies are entrusted with the task of sea-bed exploration, exploitation, mining and processing. These call for multi-disciplinary approach. Detailed survey and exploration on land is done by Mineral Exploration Corporation, Directorates of Mining and Geology of the State Governments and various Central and State Public Sector Organisations. The initiative and co-operation of the private sector will also be drawn upon as required.
5.2. In conducting exploration for minerals special attention will be given to the development of strategic minerals through systematic investigation of various potential sources of their supply.
5.3. Particular attention will be given to the survey and exploration of minerals in which the country has poor or just adequate resource base. Exploration for noble metals and minerals for electronic and other high-tech industries will receive due attention.
5.4. Co-ordination of the exploration work is at present being done by the Central Programming Board of the Geological Survey of India. Policy parameters are generally discussed in the State Ministers Conference, Planning Commission and the Mineral Advisory Council. The existing arrangement shall be reviewed periodically with a view to bringing about co-ordination among the survey and exploration agencies and to ensure planned mineral development.


6. NATIONAL INVENTORY OF MINERAL RESOURCES
6.1. The national inventory of mineral resources including those of ocean bed will be based on a comprehensive review of exploration data. These along with the relevant geological data and mineral maps shall be maintained and updated from time to time by the Indian Bureau of Mines as per the uses and specifications in industrial and other applications. The Indian Bureau of Mines shall continue to compile and provide access to the latest information in respect of mineral resources in the country available for exploitation and endeavour to convert the physical inventory of mineral resources into resource inventory. A periodical review of the system of classification of inventory of mineral resources shall be carried out incorporating the changes in their industrial and other applications. The grades of various minerals shall be standardised with reference to end use applications and periodically reviewed.


7. STRATEGY OF MINERAL DEVELOPMENT
7.1. Conservation and Mineral Development
7.1.1. The Strategy for development of any mineral should naturally keep in view its ultimate end uses. The guiding principle in the strategy of development of any mineral or mineral deposit at any location shall ordinarily be the economic cost. The State may, however, undertake the development of any mineral or mineral deposit in public interest to ensure unhindered availability of mineral raw material for the realisation of national goals.
7.1.2. As minerals are exhaustible and non-renewable resources, their exploitation has to be done keeping in view not only the present but the long term needs. The strategy for exploitation and development of each mineral shall be formulated and reviewed periodically on the basis of available resources. A thrust is to be given to exploitation of mineral resources in which the country is well endowed so that industries based on these resources can come up to meet the needs of industrial materials for which we have now to depend on external sources. An optimal depletion rate shall be worked out in respect of each mineral, keeping in view the domestic and global resource position, the international market situation and the needs for stable and sustained economic development.
7.1.3. The best use of available mineral resources shall be ensured by adopting, during mining operation, effective measures for conservation and beneficiation, recovery of associated minerals and later by efficient processing of minerals. There shall be adequate and effective legal and institutional framework and commitment to prevent sub-optimal and unscientific mining.
7.1.4. Conservation of minerals shall be construed not in the restrictive sense of abstinence from consumption or preservation for future use, but as a positive concept leading to augmentation of resource base through improvement in mining methods, beneficiation and utilisation of low grade ore and rejects, recovery of associated minerals, reduction in the requirements of minerals per unit of material output, etc.
7.2. Scientific Methods of Exploitation
Mine development and mineral conservation as governed by the rules and regulations will be on sound scientific basis, with the regulatory agencies closely interacting with R&D organisation, scientific and professional bodies. Conditions of mining leases regarding tenure, size, shape, disposition with reference to geological boundaries and other mining conditions shall be such as to favourably predispose the leased areas to systematic and complete extraction of minerals.
7.3. Productivity Norms
Studies for fixation of productivity norms and goals will be taken up to promote productivity of men, machines and to improve the consumption norms of fuel and materials. Regular maintenance, replacement and upgradation of mining machinery and equipment shall be undertaken.
7.4. Mineral Processing and Beneficiation
Research organisations, including the National Mineral Processing Laboratories of the Indian Bureau of Mines should be strengthened for development of processes for beneficiation and mineral and elemental analysis of ores and ore dressing products. There shall be co-operation between and co-ordination among all organisations in public and private sector engaged in this task.
7.5. Recycling of Metallic Scrap and Mineral Wastes
As an important conservation measure, recycling of metallic scrap like steel, copper, aluminium, zinc, lead etc. shall be encouraged and facilitated by fixation of appropriate standards for classification and grading of scrap and adoption of fiscal measures. Similarly, utilisation of low grade minerals, mineral wastes and rejects shall also be encouraged through appropriate incentives.
7.6. Mining Equipment and Machinery
Indigenous industry for manufacture of mining equipment and machinery shall be strengthened. Wherever necessary, imports of machinery and equipment may be permitted to improve the efficiency, productivity and economics of mining operations and safety and health of persons in the mines and the surrounding areas.
7.7. Manpower Development
Existing facilities for basic and specialised training shall be constantly reviewed and upgraded from time to time to ensure that adequately trained manpower at all levels is available for the development of mines and minerals industries.
In order to improve the competitive edge of the national mining industry, emphasis shall be laid on mechanisation, computerisation and automation of the existing and new mining units. The manpower development programme shall be suitably reoriented for the purpose.
7.8. Linkages
Development of mineral resources and their utilisation in the end products have distinct stages which are closely interlinked. Failure in the performance at any one stage eventually affects both the mining and the mineral industry and the units dependent on it. The mineral processing unit should not only get an assured supply of the mineral raw material but should also have close links with the production and marketing agencies of the mineral based end products.
7.9 Dissemination of Information on Technological Changes
Information about technological changes leading to substitution of the mineral or the products made out of such a mineral shall be compiled and disseminated from time to time to enable the mineral industry to adapt itself. A close linkage shall be established between the changes taking place in material science, product character and the availability of mineral resources.
7.10. Infrastructural Facilities & Regional Development
Mineral deposits generally occur in remote and backward areas with poor infrastructural facilities which often inhibit their optimum development. Mineral bearing areas are also often inhabited by tribal population and exploitation of mineral resources has not always contributed adequately to their economic development. Contribution of mineral development to overall regional development has also not always been commensurate with the huge investment in large mining projects. A major thrust needs to be given for development of infrastructural facilities in mineral bearing areas following an integrated approach for mineral development, regional development and also social and economic upliftment of the local population including tribal population.
7.11. Financial Support for Mining
Mining is an eligible activity for obtaining financial support from financial institutions. So far mining projects which have a substantial component of mining machinery, equipment and buildings have been financed. Steps shall be taken to facilitate the financing of mine development and also of exploration integral to the mining project.
Induction of foreign technology and foreign participation in exploration and mining for high value and scarce minerals shall be pursued. Foreign equity investment in joint ventures in mining promoted by Indian Companies would be encouraged. While foreign investment in equity would normally be limited to 50%, this limitation would not apply to captive mines of any mineral processing industry. Enhanced equity holding can also be considered on case to case basis.
In respect of joint venture mining projects of minerals and metals in which the country is deficient or does not have exportable surplus, a stipulated share of production would have to be made available to meet the needs of the domestic market before exports from such projects are allowed. In case of ores whose known reserves are not abundant, preference will be given to those who propose to take up their mining for captive use.
7.12. Small Deposits
Small and isolated deposits of minerals are scattered all over the country. These often lend themselves to economic exploitation through small scale mining. With modest demand on capital expenditure and short lead-time, they also provide employment opportunities for the local population. Efforts will be made to promote small scale mining of small deposits in a scientific and efficient manner while safeguarding vital environmental and ecological imperatives. In grant of mineral concessions for small deposits in Scheduled Areas, preference shall be given to the Scheduled Tribes.
7.13. Mineral Development & Protection of Environment
7.13.1 Extraction and development of minerals are closely interlinked with other natural resources like land, water, air and forest. The areas in which minerals occur often have other resources presenting a choice of utilisation of the resources. Some such areas are ecologically fragile and some are biologically rich. It is necessary to take comprehensive view to facilitate the choice or order of land use keeping in view the needs of development as well as needs of protecting the forests, environment and ecology. Both aspects have to be properly coordinated to facilitate and ensure a sustainable development of mineral resources in harmony with environment.
7.13.2 Mining activity often leads to environmental problems like land degradation particularly in opencast mining, land subsidence in underground mining, deforestation, atmospheric pollution, pollution of rivers and streams, disposal of solid wastes, etc. affecting the ecological balance of the area. Open-cast mining in areas with actual forest cover leads to deforestation. Prevention and mitigation of adverse environmental effects due to mining and processing of minerals and repairing and revegetation of the affected forest area and land covered by trees in accordance with the prescribed norms and established forestry practices shall form integral part of mine development strategy in every instance.
Mining operations shall not ordinarily be taken up in identified ecologically fragile and biologically rich areas. Strip mining in forest areas should as far as possible be avoided and it should be permitted only when accompanied with comprehensive time-bound reclamation programme.
No mining lease would be granted to any party, private or public, without a proper mining plan including the environmental management plan approved and enforced by statutory authorities. The environmental management plan should adequately provide for controlling the environmental damage, restoration of mined areas and for planting of trees according to the prescribed norms. As far as possible, reclamation and afforestation will proceed concurrently with mineral extraction.
7.13.3 Efforts would be made to convert old disused mining sites into forests and other appropriate forms of land use.
7.14. Mines Safety
Mining operations are hazardous in nature. Accidents happen and often result in the loss of life or limb of persons engaged in it. Efforts must be directed towards the development and adoption of mining methods which would increase the safety of workers and reduce the accidents. Towards this end, participation and co-operation of mine workers shall be secured. Steps will also be taken to minimise the adverse impact of mining on the health of workers and the surrounding population.
7.15. Rehabilitation of Mines Closures
Mineral deposits being exhaustible, once the process of economical extraction of a mine is complete, there is need for its closure. Especially where the mining activities have been spread over a few decades, mining communities get established and closure of the mine means not only loss of jobs but also disruption of community life. Whenever mine closure becomes necessary, it should be orderly and systematic and so planned as to help the workers and the dependent community rehabilitate themselves without undue hardship.
7.16. Rehabilitation of Displaced Persons
Mining operations often involve acquisition of land held by individuals including those belonging to the weaker sections. While compensation is generally paid to the owner for the acquisition of his land, efforts shall be made to ensure suitable rehabilitation of affected persons especially those belonging to the weaker sections who are likely to be deprived of their means of livelihood as a result of such acquisition.


8. FOREIGN TRADE
Minerals continue to be an important source of foreign exchange earnings. The policy of export shall keep in view the mineral inventory position and the long term needs of the country. Efforts shall be made to export minerals in value added form as far as possible. Whenever it becomes necessary to export minerals and ores the strategy shall be to make such exports competitive. The indigenous mineral industry shall be attuned to the international economic situation in order to derive maximum advantage from foreign trade by carefully anticipating technology and demand changes in the international market for minerals and metals.
The imports of mineral based material shall be co-ordinated as far as possible with the indigenous development of mineral based industries. Areas of co-operation with countries with complementary resource base shall be developed for mutual advantage. The basic approach shall be to make available to the mineral based materials to the domestic users at reasonable prices.


9. FISCAL ASPECTS
Fiscal measures should be designed to promote mineral exploration and development including beneficiation. Minerals being non-renewable their prices should reflect their value. In the context of the changing mineral scenario and the economies of mineral development and products, both at the national and international level, necessary fiscal changes will be made from time to time consistent with the general tax structure.


10. RESEARCH AND DEVELOPMENT
10.1. Research and development in the mineral sector has to cover the entire gamut of activities from geological survey, exploration, mining, beneficiation, extraction of minerals to development of materials.
Efforts would be directed to the development of new technologies for conversion of existing mineral resources into viable economic resources. Appropriate technologies shall be developed to enable indigenous industries to utilise the mineral resources with which the country is abundantly endowed and as substitutes for minerals whose reserves are poor. R&D efforts shall be directed to find new and alternative uses for minerals whose traditional demand is on the wane.
Indigenous technology has to be upgraded through research and appropriate absorption and adoption of technological innovations abroad. Research and development efforts shall be made to improve efficiency in process, operations and also the recovery of by-products and reduction in specification and consumption norms. Efforts will also be directed to evolve low capital and energy saving processing systems.
10.2. Research In Mining Methods
Mining methods determine the safety, economy, speed and the percentage of extraction of the ore reserves from a mine. Research and development thrust shall be directed specially in the areas of rock mechanics, ground control, mine design engineering, equipment deployment and maintenance, energy conservation, environmental protection, safety of operations and human engineering.
10.3. Development Of Automated Equipment
To meet the objective of safety and economic production attention will be given to the development of robotics, automated equipment and system for mining, especially for deep mining and transportation to surface.
10.4. Deep Sea Mining
India is a pioneer investor and has been allocated a mine site of 150,000 square kilometres in Indian Ocean for exclusive survey and exploration. Deep ocean resources represent an exceptionally large and potentially important mineral resource. Integrated systems for exploration, exploitation, mining and processing of these resources shall be expedited with the development/acquisition of necessary technologies. Appropriate mechanism for coordinating the survey and exploration of Deep Sea Bed Area will be established by the Department of Ocean Development.
10.5. Production Of Materials Of High Purity
Research will be directed towards raw materials required for production of materials of high purity for use in advanced technology applications such as semi-conductors, photo-voltaics, lasers, special sensors, high temperature new ceramics, hard and high temperature materials, superconductors, insulators, very thin films, glasses and liquid crystals and metal and mineral fibres.
10.6. Research In Beneficiation & Agglomeration
Attention will be given to beneficiation and agglomeration techniques to bring lower grades and finer size material into use.
10.7. Utilisation Of Associated Minerals
Research and development shall be oriented to ensure maximum economic recovery of the associated minerals and valuable metals.
10.8. Co-ordination Of Research Organisations
Research and development activities in the mineral sector are carried out in the national laboratories, educational institutions and R&D units of public and private sector enterprises. Pooling of resources and expertise available in the various R&D Organisations is imperative to meet the challenges and to fulfil the tasks ahead in the mineral sector. Linkages and interaction between the various institutions engaged in R&D in the mineral sector shall be strengthened to derive the maximum benefit. Interchange of scientists between institutions shall be encouraged to accelerate the pace of interaction. It shall also be ensured that the research findings are made available to users expeditiously.


11. CONCLUSIONS
Mineral wealth is finite and non-renewable. It is a major resource for development. The management of this precious resource and its optimal and economical use are matters of national importance. The success of the national mineral policy will depend largely on a national consensus to fulfil its underlying principles and objectives.

http://mines.nic.in/nmp.html
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Industries:
Mines
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Growth and prosperity of a nation depends on the search, development and management of its mineral resources. Minerals constitute an important raw material and a valuable natural resource in the industrial development of the country. Due to increased competition, liberalisation and globalisation world-wide, the markets for minerals have been growing both in diversity and magnitude terms.

The minerals and mining industry is a key segment of the Indian economy, with India being highly endowed with vast mineral resources. The country's accelerated growth rate warrants a rapid development of the mining sector, on which most of the basic industries in the manufacturing sector depend. Extraction and development of minerals are closely interlinked with other natural resources like land, water, air and forest. Hence, the management of this precious resource and its optimal and economical use are matters of national importance.

Three kinds of mineral concessions are recognized in Indian law. They are:-

  1. Reconnaissance Permit (RP) - granted for preliminary prospecting of a mineral through regional , aerial, geophysical or geochemical surveys and geological mapping.
  2. Prospecting License (PL) - granted for undertaking operations for purpose of exploring, locating or proving mineral deposit and
  3. Mining Lease (ML) - granted for undertaking operations for winning any mineral. The main opportunities in the mining sector are in the development and production of surplus commodities such as iron ore and bauxite, mica, potash, few low-grade ores, mining of small gold deposits, diamonds, platinum group of metals and other rare metals, etc.

Under the Constitution of India, management of mineral resources is the responsibility of the Central Government and the State Governments in terms of the Union List and State List respectively. The Central Government is the owner of the minerals underlying the ocean within the territorial waters or the Exclusive Economic Zone of India, while the State Governments are the owners of minerals located within the boundary of the State concerned. The Central Government, in consultation with the State Governments, formulates the legal measures for regulation of mines and minerals in order to ensure basic uniformity in mineral administration as well as to maintain the pace of development of mineral resources, in consonance with the national policy goals.

At the Central level, the 'Ministry of Mines' is the nodal agency for overall growth and expansion of minerals and mining sector. It is responsible for survey and exploration of all minerals (other than natural gases, petroleum and atomic minerals); for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc. as well as for administration of the 'Mines and Minerals (Regulation and Development) Act, 1957' in respect of all mines and minerals (other than coal, natural gas and petroleum). At present, the Ministry is having two subordinate offices, namely:-

  • Geological Survey of India (GSI), Kolkata - is one of the biggest national survey organisations of the world and one of the largest scientific organization of the country. It has been functioning as a vital arm of the Ministry, providing basic and specialised information on mineral resources as well as contributing to their development and management. It seeks to collect, synthesize and update the data about the sector on a continuous basis as well as refine the nation's geoscientific information and knowledge. Such database is the basic source of accurate and specialised geoscientific inputs to a wide spectrum of end users covering Government/semi-Government agencies, multi-national and private organisations involved in resource exploitation, research, education, etc.
  • Indian Bureau of Mines (IBM), Nagpur - is engaged in the promotion of scientific development of mineral resources of the country, conservation of minerals and protection of environment in mines, other than coal, petroleum and natural gas, atomic mineral and minor minerals. It performs regulatory functions, namely enforcement of the Mineral Conservation and Development Rules, 1988, the relevant provisions of the Mines and Minerals (Development and Regulation) Act, 1957, Mineral Concession Rules, 1960 and Environmental Protection Act, 1986 and Rules made there under. It provides technical consultancy services to the mining industry for the geological appraisal of mineral resources, and the preparation of feasibility reports of mining projects, including beneficiation plants. It functions as Data Bank of Mines and Minerals and publishes statistical periodicals.

The public sector undertakings (PSUs) under the Ministry are:-

  1. National Aluminium Company Limited (NALCO), Bhubaneswar
  2. Hindustan Copper Limited (HCL), Kolkata and
  3. Mineral Exploration Corporation Limited (MECL), Nagpur

While, there are three research institutions, which are autonomous bodies of this Ministry, such as:- Jawaharlal Nehru Aluminium Research Development and Design Centre (JNARDDC), Nagpur; National Institute of Rock Mechanics (NIRM), Kolar; andNational Institute of Miners' Health (NIMH), Nagpur. The Ministry's science and technology programme covers the disciplines of geology, exploration, mining and environment, bioleaching, beneficiation, rock mechanics and ground control and non-ferrous metallurgy. During the current year, 15 new projects have been received for consideration and there are 6 ongoing projects.

The Mines and Minerals (Development and  Regulation) Act, 1957, (MMDR Act) and theMines Act, 1952, together with the rules and regulations framed under them, constitute the basic laws governing the mining sector in India. The MMDR Act, 1957 lays down the legal frame-work for the regulation of mines and development of all minerals other than petroleum and natural gas. The provisions of the Act and the Rules are reviewed from time to time and harmonised with the policies governing industrial and socio-economic developments in the country.

The Central Government have framed the Mineral Concession Rules, 1960 for regulating grant of prospecting licences and mining leases in respect of all minerals other than atomic minerals and minor minerals. While, the State Governments have framed the rules in regard to minor minerals. The Central Government have also framed the Mineral Conservation and Development Rules, 1988 for conservation and systematic development of minerals. These are applicable to all minerals except coal, atomic minerals and minor minerals.

In pursuance of the reforms initiated by the Government of India in 1991, the Ministry had formulated the National Mineral Policy in 1993 and offered several incentives and concessions to the investors. The policy recognized the need for encouraging private investment, including foreign direct investment and for attracting state-of-the-art technology in the mineral sector. The basic objectives of the mineral policy are to:-

  • Explore for identification of mineral wealth in the land and in off-shore areas.
  • Develop mineral resources taking into account the national and strategic considerations and to ensure their adequate supply and best use keeping in view the present needs and future requirements.
  • Promote necessary linkages for smooth and uninterrupted development of the mineral industry to meet the needs of the country.
  • Promote research and development in minerals.
  • Ensure establishment of appropriate educational and training facilities for human resources development to meet the manpower requirements of the mineral industry.
  • Minimise adverse effects of mineral development on the forest, environment and ecology through appropriate protective measures.
  • Improve the investment climate for mining in the country and
  • Ensure conduct of mining operations with due regard to safety and health of all concerned.

In furtherance of the objectives of the National Mineral Policy, the MMDR Act, 1957 has been amended twice in 1994 and 1999. The Mineral Concession Rules, 1960 (MCR) and the Mineral Conservation and Development Rules 1988 (MCDR), framed under the MMDR Act, 1957 have also been modified. Salient features of the amended mining legislation are as follows:-

  • There is no restriction on foreign equity holding in mining sector companies registered in India.
  • There is a greater stability of tenure of mineral concessions, since the minimum period of a mining lease is twenty years and a maximum period of thirty years. A mining lease may be renewed for a period not exceeding twenty years and may again be renewed for a period not exceeding twenty years in respect of minerals specified in Part C of the First Schedule of the Act (MMDR Act). In respect of minerals specified in Part A and B of the First Schedule of the Act, such renewal may be granted with the previous approval of the Central Government. The period of prospecting license now is three years, with possibility of renewal for a further period of two years.
  • Thirteen minerals like iron ore, manganese ore, chrome ore, sulphur, gold, diamond, copper, lead, zinc, molybdenum, tungsten, nickel and platinum group of minerals which were reserved exclusively for exploitation by the public sector, have now been thrown open for exploitation by the private sector.
  • With the 1999 amendment, a concept of reconnaissance operations, as a stage of operation distinct from and prior to actual prospecting operations, was introduced. The period of reconnaissance permit is three years. A reconnaissance permit holder enjoys preferential right for grant of prospecting licence.
  • In 1994, fifteen minerals were removed from the list of minerals included in the First Schedule to the MMDR Act, 1957. With further amendments in 1999, the mineral limestone was deleted from the First Schedule, and permission of the Central Government is now required for grant of mining lease, prospecting license, and reconnaissance permit in respect of only ten non-fuel and non-atomic minerals. These minerals are asbestos, bauxite, chrome ore, copper ore, gold, iron ore, lead, manganese ore, precious stones and zinc.
  • State Governments have been delegated powers to grant mineral concessions even for areas which are not compact or contiguous. They also have been empowered to permit amalgamation of two or more adjoining mining leases.
  • Time limits have been prescribed for conveying a decision on applications for mineral concessions, such as six months for reconnaissance permits, nine months for prospecting licences and twelve months for mining leases, etc.

Such policy framework and its subsequent revision has further opened up the sector and increased the inflow of domestic and foreign investment. Foreign Direct Investment (FDI) policy in the mining sector has been gradually liberalized over the last few years. FDI cap for exploration and mining of diamonds and precious stones have been increased to 100% under the automatic route. Also, FDI in the mining sector for all non-atomic and non-fuel minerals have now been fully opened upto 100% through the automatic route, including diamonds and precious stones.

After the introduction of the concept of reconnaissance permit, 263 reconnaissance permits covering an area of 3,62,217.322 square kilometers have been granted till 31.12.2007, of which 56 reconnaissance permits for an area of 76482.58 square kilometers were granted during the year 2007-2008. The States for which reconnaissance permits have been approved are Rajasthan (48), Andhra Pradesh (47), Karnataka (43), Chhattisgarh (29), Orissa (24), Madhya Pradesh (41), Uttar Pradesh (14), Gujarat (4), Jharkhand (3), West Bengal (3), Haryana (1), Kerala (1), Arunachal Pradesh (1), Maharashtra (3), Manipur (1).

However, the demand growth for metals and minerals, domestic as well as global, is continuously pushing up the prices. In India, the Wholesale Price Index for non-fuel minerals (base year 1993-94=100) stood at 429.8 in August 2007 and the corresponding index for August 2006 was 424.5. The minerals included in the Wholesale Price Index are bauxite, chromite, iron ore, manganese ore, asbestos, barytes, dolomite, felspar, fireclay, fluorite, gypsum, Kaolin (china clay), limestone, magnesite, ochre, phosphorite, silica sand, steatite, and vermiculite. The Wholesale Price Index for metallic minerals was 622.7 in August 2007 as compared to 618.2 in August 2006 and that of other minerals was 125.2 in August 2007 as compared to 118.7 in August 2006.

In order to encourage greater investment in exploration and mining as well as remove bottlenecks which hinder the productivity and efficiency of this sector, the Planning Commission has set up a 'High Level Committee' under the Chairmanship of Shri Anwarul Hoda, Member, Planning Commission. The Committee aimed at reviewing the National Mineral Policy and recommending possible amendments to the MMDR Act, so as to attune them to the present requirements of the world economy for evolving of mining code adapted to the best international practices, streamlining and simplifying of procedures for grant of mineral concessions to reduce delays, strengthening the infrastructure for mining activities, etc. Some of the other terms of reference of the Committee are to:-

  • Suggest the changes needed for encouraging investment in public and private sector in exploration and exploitation of minerals.
  • Review the procedures for according clearance to mineral exploration and mining projects under the Forest (Conservation) Act, 1980 and Environment (Protection) Act, 1986, and suggest ways for speeding them up.
  • prioritise the critical infrastructure needs of the Indian mining sector and make recommendations on ways to facilitate investment to meet these needs.
  • Examine the implications of the policy of mineral-rich States to make value addition within the State a condition for grant of mineral concession and make appropriate recommendations in this regard.
  • Examine ways of augmenting State revenues from the mineral sector and
  • Examine any other issue relevant for stimulating investment flows and inducting state-of-the-art technology into the sector.

As a result of all such incentives and measures, the index of mineral production, excluding fuel and atomic minerals, (base year 1993-94=100) for the year 2007-08 is expected to be 170.39 as compared to 163.21 in 2006-07, showing a positive growth of 4.4 per cent. The total value of mineral production (excluding atomic minerals) during the year 2007-08 is estimated at Rs. 99,533.10 crores. During the same year, provisional value of fuel minerals account for Rs. 68,229.40 crores (69 percent of the total value), metallic minerals are estimated at Rs. 19,755.66 crores (20 percent of the total value); and non-metallic minerals (including minor minerals) are valued at Rs. 11,548.04 crores (11 percent of the total value).

The provisional value of export and import of ores and minerals, during the year 2006-07, was Rs. 80,912 crore and Rs. 3,05,028 crore respectively. Diamond (mostly cut) was the principal item of export during 2006-07, which accounted for 59.2 per cent, followed by iron ore with a contribution of 21.8 per cent, granite with a contribution of 5.8 per cent, alumina with a contribution of 2.3 per cent, precious and semi precious stones with a contribution of 1.0 per cent and chromite with a contribution of 0.98 per cent. Building and monumental stones, emerald, coal (including lignite), marble and bauxite were the other important minerals exported during the year 2006-07. While, petroleum (crude) was the main constituent of mineral import during the year 2006-07, which accounted for 69.9 percent of the total value of import of ores and minerals, followed by diamond (uncut) with 10.8 percent. Coal, coke, copper ores and concentrates, rock phosphate, sulphur and iron ore were the other important minerals imported during the same year.

Thus, mines are integral part of India's industrial set up. They offer innumerable opportunities for exploring and discovering various sub-surface deposits using modern techniques. They are useful for the investors the world over for manufacturing several value-added products. Therefore, it is imperative to achieve the best use of available mineral resources through scientific methods of mining, beneficiation and economic utilisation. Also, it is essential to keep in view the present and future needs of the country and take all possible steps to ensure indigenous availability of basic and strategic minerals for meeting the global challenges.

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Related Links:
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Ministry of Mines

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National Mineral Policy, 1993

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Report of the High Level Committee

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Frequently Asked Questions (FAQs)

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National Mineral Award

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Mining Legislations






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--
Palash Biswas
Pl Read:
http://nandigramunited-banga.blogspot.com/

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