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New Indian mineral policy to sharpen focus on transparency, sustainability

22nd August 2017

By: Ajoy K Das

Creamer Media Correspondent

     

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KOLKATA (miningweekly.com) – The Indian government’s review of National Mineral Policy (NMP) 2008 and drafting of a new version aims to make “transparency, sustainability and conservation” the cornerstone of governance of the mining sector.

The trigger for the deeper inculcation of these elements into mining sector governance has been the recent Supreme Court verdict levying hefty penalties for illegal mining in the eastern province of Odisha, with risk of country-wide ramifications.

The elements of transparency, sustainability and conservation have been laid down in the terms of reference for the panel appointed by the government to review NMP 2008. The panel has been set a deadline of October 31, 2017 to submit its first report.

The terms of reference also include environmental protection, assessment of carrying capacity of mining activities in each specific mineral-bearing region, improved survey and exploration practices, manpower development in line with projected growth of the sector and development of strategic mineral resource exploitation.

The panel will comprise 29 members headed by two senior officials from the Mines Ministry. Other members will be from the related Ministries of coal, railways, ports and surface transport, secretaries from provincial mining Ministries and representatives from mining industry and chambers of commerce.

According to a senior government official, the legal and administrative environment for the mining industry has been “significantly reformed” through the promulgation of the Mines, Minerals Development and Regulation Act 2015. However, while economic and financial aspects of mining had been addressed by the Act, the need had arisen to take a re-look at issues of transparency and sustainability against the backdrop of the fast pace of change in the mining industry including the advent of private miners.

In a verdict earlier this month, the Supreme Court ruled that mining companies would be liable to pay back 100% of the price of minerals extracted in violation of the law, rejecting an earlier plea from the Indian government and court appointed Central Empowered Committee on illegal mining that only 30% of the value of such minerals should be recovered from the companies.

Responding to the court judgment, the government of Odisha decided to issue notice to impose penalty to the tune of $3.17-billion on mine owners for illegal mining and violations of environmental laws.

Government officials pointed out that while the first move to recover penalties for illegal mining had been initiated by the Odisha government, illegal mining activities in other regions would force other provincial governments to take similar steps.

For example, even as mining operations are halted in the western province of Goa for monsoon rains, investigations by the Indian Bureau of Mines (IBM) continue and have detected several violations, including the mining of iron-ore beyond permissible limits, violation of environmental laws and modification of mining plans as approved by IBM.

The IBM ‘show cause notices’ issued for illegal mining were over and above cases of previous illegal mining which were also under investigation by the police’s Special Investigation Team, the officials said.

Meanwhile in another related development, the national auditors, Comptroller and Auditor General, in a report published last week, estimated that during the period 2009 to 2016, iron-ore worth $302-million was extracted illegally.

India’s Supreme Court had banned all mining operations in Goa between 2012 and 2014 in the course of hearing numerous petitions filed before it against illegal mining operations.

A section of federal officials felt that in view of the Supreme Court verdict, governments like Goa too would need to initiate action to recover penalties and hence the greater need to deepen governance through a new NMP.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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