https://www.miningweekly.com

Deadline proposed for new exploration on expiring mineral leases in India

6th February 2018

By: Ajoy K Das

Creamer Media Correspondent

     

Font size: - +

KOLKATA (miningweekly.com) – In a bid to derisk mineral production, the Indian government is working on amending rules and on setting a deadline for miners to complete exploration on the mineral leases that are set to expire in 2020.

In the case of mining leases for iron-ore, manganese and chromite, existing lease holders have to complete exploration projects by April 1, 2019.

The Ministry of Mines plans to amend the Mineral Concession and Amendment Rules 2017, to set such a deadline. Miners have been invited to comment on the proposed changes and have until February 16 to do so.

The proposed changes in the rules stipulate that miners holding leases that expire on March 31, 2020 will have to submit their exploration plans within 60 days from the date of issue of notification effecting the rule changes.

Thereafter, provincial governments will be given 30 days to sanction the new exploration project and all miners will be responsible for implementing and completing the exploration projects by April 1, 2019.

The proposed changes to the rules aim to expedite exploration and to ready the existing mining lease areas so that fresh auctions can start in May next year. It also seeks to ensure that production will not be affected by the expiring leases.

As many as 348 noncoal mining leases are slated to expire at the end of March 2020 and the federal Mines Ministry is apprehensive over the lack of preparedness of the provincial government to hold fresh auctions within the limited time available, risking widespread disruptions in production and supply of a range of minerals.

Against this backdrop, the Mines Ministry last month convened a meeting with representatives of mining departments of all mineral-bearing provinces.

Already, the Federation of Indian Mineral Industries has cautioned of risks to availability of raw materials for downstream industries if mining leases are not issued through fresh auctions within a specific timeframe by the provincial governments.

The Mines Ministry has conveyed to the provincial governments that those bagging fresh mining leases at auctions will require “sufficient time to secure all mandatory approvals” and has said that any delays in the post-auction process will lead to the operational mines getting stranded.

The provincial governments have been directed to submit to the Mines Ministry an action plan for holding fresh auctions, including all details of any fresh exploration that may be required within the leasehold area, finalisation of geological assessment reports and identification of specialised agencies that will be empanelled in case of new exploration projects in the leasehold area.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.097 0.133s - 88pq - 2rq
Subscribe Now