analysis of india's mineral policy

8/12/2019 Analysis of India's Mineral policy

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NATIONAL MINERAL POLICY

2008

STRATEGY OF MINERAL DEVELOPMENT


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3. Regulation of Minerals

The legal framework for regulation of mines and minerals, except petroleum andnatural gas, was laid down in the Mines and Minerals (Development and Regulation)

Act, 1957.

The Central government shall cooperate with the State government in the formulation

of legal measures necessary for giving effect to the New Mineral Policy, 2008. The

regulation of minerals in line with this policy shall be the joint responsibility of the

State and Central Governments. In order to encourage private investors, the grant of mineral concessions such as

Reconnaissance Permits, Prospecting Licences and Mining Leases shall be made

smooth and transparent. Concessionaires shall be granted security of tenure.


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4. Role of the State in

Mineral Development The major function of the State will be to facilitate and regulate exploration and

mining activities of investors and entrepreneurs, as well as provide infrastructure and

collect related taxes.

To ensure fair play, a distance will be maintained between State agencies that mine

(PSUs) and those that regulate mining activities.

Reservation of ore bodies for State agencies in areas not held by private players shall

be done transparently and fairly, except in cases where specific security or public

interest considerations are involved.


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5. SURVEY & EXPLORATION

The principal agency for geological mapping and regional mineral resources assessment ofthe country is The Geological Survey of India with detailed exploration on land being done bythe Mineral Exploration Corporation, Directorates of Mining and Geology of the StateGovernments and various Central and State Public Sector Organizations.

Special attention to be given to the extraction of minerals of strategic importance byexploring and investigating potential sources of minerals.

The private sector would in future be the main source of investment for the purpose ofexploration and research. An open-sky policy based on non-exclusivity to be adopted in orderto speed up completion of the investigation. Large Area Prospecting License to be used inorder to attract large high-risk investments and high-end technology not applicable for bulkminerals.

Optimal utilization of Indias exclusive economic zone of utmost importance. The Ministry ofEarth Sciences (MoES) and its agencies entrusted with the task of sea-bed exploration and

mining to be completed within the time prescribed by the International Sea Convention sothat no area of sea bed mining is lost to the country.

Minerals which are high in demand to be given highest priority.


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* Mining contributes to the generation of wealth and creation of employment independently and shouldtherefore be treated as an economic activity in its own right and not merely as a subsidiary activity ofmanufacturing industry.

Development of mineral resources and their utilisation in the end products have distinct stages which areclosely interlinked. Failure in the performance at any one stage eventually affects both the mining and themineral industry and the units dependent on it.

The mineral processing unit should not only get an assured supply of the mineral raw material but shouldalso have close linkages with the production and marketing agencies of the mineral based end products.

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.

7.4 MINING AS AN INDUSTRY WITH LINKAGES

7.5 MINING EQUIPMENT & MACHINERY


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7.6 MANPOWER DEVELOPMENTDevelopment of manpower can be done by setting up of specialized institutes and training programmes,that ensure there is availability of skilled labour at all levels for all round development of mines andminerals. Computerisation, automation and mechanisation of mining units should be emphasised and the

manpower development programme should be accordingly modified.

7.7 INFRASTRUCTURE DEVELOPMENTRemote areas with mineral deposits and poor facilities should be provided with better infrastructure sothat they can reach their optimum level of development. With the help of public- private partnerships apositive environment can be created and this will motivate large mining companies to constructtransportation networks.

7.8 FINANCIAL SUPPORT FOR MININGFinancial institutions should provide monetary support for the development and exploration of mines.Foreign investment in such mining projects should also be encouraged.

7.9 SMALL DEPOSITSIn areas where there are small mineral deposits, efforts will be made to prevent exploitation and illegalmining activity by promoting small scale mining. This should be done in a scientific and efficient mannerso as to prevent adverse ecological and scientific impacts.


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7.10 MINERAL DEVELOPMENT & PROTECTION OF

ENVIRONMENTA Sustainable Development Framework to ensure that the mine owner leaves the mining area in a better

ecological state than before by undertaking activities such as afforestation etc. should be developed. Any

mining party should be allotted the land only if it has an internationally acceptable environmental

management plan in place.

7.11 RELIEF & REHABILITATION OF DISPLACED AND

AFFECTED PERSONSRehabilitation of the affected should be done through allotment of land or monetary compensation. The

tribes living in the mining area should be made stakeholders in the business.

7.12 MINE CLOSURESAfter the process of extraction is complete, proper scientific closure of mines must be done to make sure that

the mining communities around the mines do not face hardships during transition into another profession.

7.13 MINE SAFETYMeasures that ensure maximum safety of the mine workers, prevent or reduce accidents should be followed.

Also, steps should be taken to reduce the negative health impact of working in a mine or living around it.


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8. Foreign Trade

FEATURES

1. Efforts should be made in order to increase the exports of minerals. There shouldbe more emphasis on the export in the for of value added rather than rawminerals.

2. The country's mineral industry should keep up with the international market toget greater advantage from foreign trade through technological advancementsand a careful analysis of the changes of demand for minerals in the internationalmarket .

3. There should be coordination between the import of minerals and developmentof the country's mineral based industries. The nations rich in minerals could helpour industrial sectors with certain mineral which our country lacks. This can bedone with mutual consent . This may also lead to the decrease of prices of theresources to the domestic users.

4. Once a long term policy is being set it would provide help as well as improve thecommercial mining activities which take place for the betterment of foreigntrade . To develop mining as a modern n technology based industry substantialinvestment is required.

5. The government should gives assurances and allowances on the export ofminerals which will help in increasing FDI in the mining sector.


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9. Fiscal Aspects

FEATURES

1. The government formulates policies regarding mining research anddevelopment keeping the budget under serious consideration.

2. The fiscal aspects are to be examined from time to time due to the changingmineral scenario.

3. All fiscal policies are put forth by the government with the aim that adequatereturns be forthcoming to the state


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Research in Mining Development, Viable Resource Exploration, Development of more

efficient technologies and finding extra applications of mineral use. Making extraction of

minerals from ores more economic by minimizing wastage as utilizing low grade ores and

finer sized materials.

Research in Deep Sea Mining. India has a viable area of 150,000 sq. km. in the Indian Ocean

to explore and utilize.

Optimum pooling of national laboratories, educational institutions, R&D facilities and private

sector enterprises for efficient Research. Making sure that developments by research are

shared with all ,

Research should be done in a way that it accounts for an all-round development of the

meaning of mining in itself. The safety , budget , clubbed with environment damage factors

have to be taken into consideration. These include r & d in robotics and automatic systems,

to minimize human presence in hazardous areas of mines.

Research in production of raw materials used to create high purity products, Which are used

to make semiconductors ,lasers and other equipments in of raw material is very important

for the proper functioning of the product.

Research shall be directed towards the field of:

Research in Mining Methods

Mineral Processing and Benefits

Development of Automated Equipment

10. RESEARCH & DEVELOPMENT


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Mineral resource is such a wealth that is limited and non-renewable i.e. vastly precious.Ultimately, benefit of a Mineral Policy should be such that it does not endanger the resourcesfor the future citizens of this country.

The requirement of an efficiently planned mining research and development, survey andexploration should be materialized optimally, keeping economic factors in mind.

Conclusion

analysis of india's mineral policy

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