Page 11 - Why we need a New Mineral Exploration Policy for National Mineral Security?
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Discussion Paper
its equivalent, is thus an urgent necessity to make operate transparently and reliably to internationally
the auction process in India more reliable, credible, recognized technical standards. These authorities
transparent, equitable, and investment friendly. This is must also ensure that data generated from regional
particularly important if private agencies are engaged, as exploration is adequately integrated with national
proposed under the NMEP, to explore prospects using spatial datasets maintained with the GSI and resource
NMET funds, and all the more so if they are to share estimations from detailed exploration is adequately
the revenue stream and even participate in the auction and reliably reflected in the data of reserves and
itself. The JORC process would involve regular public resources. The NMEP in paragraph 8 mentions the need
reporting of Exploration Results and the estimation for a National Geoscience Data Repository and Drill
and valuations by “Competent Persons” who will be Core libraries; however, these need to be statutorily
independent third parties. created so that data inflow, management, and use are all
properly regulated.
Regulation of exploration activity
“Exploring in India” for “Making in India”
Exploration, as in the case of mining, requires
regulation. The IBM and the State Directorates need As the country develops and industry and manufacturing
to be strengthened with manpower, equipment, grows impelled by the “Make in India” policy, assured
and skillsets in order to be able to discharge their availability and proximity of mineral resources will play
regulatory responsibilities. They need to ensure that an important role in giving a competitive edge to the
exploration takes place in accordance with the terms Indian industry in general and manufacturing in particular.
and conditions of the licence and in the larger interest The IBM, while determining the national priorities for
of promoting discovery and exploitation. The regulatory exploration, as contemplated in paragraph 11.2 of the
systems need to be provided with the necessary teeth NMEP, needs to make assessments with regard to India’s
through the legislative framework to make the sector long-term mineral security. In particular, emphasis needs
more conducive to investment and technology flows. to be given to the co-production of by-product metals
The amendment to the MMDR Act has increased the from base metal ores through process R&D so that the
range and scope of work of the IBM and the State country’s needs of the so-called Technology Metals and
Directorates (by making auctions as the only mode of Energy-Critical Metals are effectively met. Needless
granting mineral concessions), particularly with regard to say, this will provide raw material security on the
to ensuring accuracy of mineral resource estimations one hand and a competitive edge on the other for the
and mineral reserve valuations, which are specialized country’s manufacturing sector. Exploration should not
activities requiring the development of credible and only increase revenues, but should also improve India’s
multi-disciplinary expertise. Capacity building for this mineral security and competitive edge.
purpose has to be a high priority if the intention behind
adopting the auction route is to be realized. As the National Mineral Policy 2008 rightly recognizes,
it is necessary to attract investments attached with
The National Mineral Policy actually takes a wide- high technology so that base metal, noble metal, and
angle view of regulation and speaks of an arm’s-length other deeper mineral occurrences can be detected and
between State Agencies that mine (and indeed explore assessed for commercial exploitation. These are issues
as well) and agencies that regulate. While the IBM has no not merely of mineral exploration but of resource
exploratory function, the State Directorates may have security with respect to widely used industrial metals,
and the arm’s-length principle has to be systemically such as Copper, Lead, and Zinc; fertilizer minerals, such
and transparently incorporated. Given the complex as Phosphates; the Platinum group of elements, and now,
and widespread nature of regulatory deficit generally in in the context of sophisticated applications, including
the mining sector, perhaps the time has come to create renewable and non-fossil energy applications, the
independent Mining Regulatory Authorities for oversight Technology Metals, that is, Molybdenum (Mo), Rhenium
at State level to restore investor confidence and to (Re), Tellurium (Te), Selenium (Se), Germanium (Ge),
ensure that the primary regulatory mechanisms for Cadmium (Cd), Indium (In), Gallium (Ga), Vanadium(V),
exploration (as well as mining plans and closure plans) Scandium (Sc), and Energy-Critical Metals, such as
JUNE 2017 11
its equivalent, is thus an urgent necessity to make operate transparently and reliably to internationally
the auction process in India more reliable, credible, recognized technical standards. These authorities
transparent, equitable, and investment friendly. This is must also ensure that data generated from regional
particularly important if private agencies are engaged, as exploration is adequately integrated with national
proposed under the NMEP, to explore prospects using spatial datasets maintained with the GSI and resource
NMET funds, and all the more so if they are to share estimations from detailed exploration is adequately
the revenue stream and even participate in the auction and reliably reflected in the data of reserves and
itself. The JORC process would involve regular public resources. The NMEP in paragraph 8 mentions the need
reporting of Exploration Results and the estimation for a National Geoscience Data Repository and Drill
and valuations by “Competent Persons” who will be Core libraries; however, these need to be statutorily
independent third parties. created so that data inflow, management, and use are all
properly regulated.
Regulation of exploration activity
“Exploring in India” for “Making in India”
Exploration, as in the case of mining, requires
regulation. The IBM and the State Directorates need As the country develops and industry and manufacturing
to be strengthened with manpower, equipment, grows impelled by the “Make in India” policy, assured
and skillsets in order to be able to discharge their availability and proximity of mineral resources will play
regulatory responsibilities. They need to ensure that an important role in giving a competitive edge to the
exploration takes place in accordance with the terms Indian industry in general and manufacturing in particular.
and conditions of the licence and in the larger interest The IBM, while determining the national priorities for
of promoting discovery and exploitation. The regulatory exploration, as contemplated in paragraph 11.2 of the
systems need to be provided with the necessary teeth NMEP, needs to make assessments with regard to India’s
through the legislative framework to make the sector long-term mineral security. In particular, emphasis needs
more conducive to investment and technology flows. to be given to the co-production of by-product metals
The amendment to the MMDR Act has increased the from base metal ores through process R&D so that the
range and scope of work of the IBM and the State country’s needs of the so-called Technology Metals and
Directorates (by making auctions as the only mode of Energy-Critical Metals are effectively met. Needless
granting mineral concessions), particularly with regard to say, this will provide raw material security on the
to ensuring accuracy of mineral resource estimations one hand and a competitive edge on the other for the
and mineral reserve valuations, which are specialized country’s manufacturing sector. Exploration should not
activities requiring the development of credible and only increase revenues, but should also improve India’s
multi-disciplinary expertise. Capacity building for this mineral security and competitive edge.
purpose has to be a high priority if the intention behind
adopting the auction route is to be realized. As the National Mineral Policy 2008 rightly recognizes,
it is necessary to attract investments attached with
The National Mineral Policy actually takes a wide- high technology so that base metal, noble metal, and
angle view of regulation and speaks of an arm’s-length other deeper mineral occurrences can be detected and
between State Agencies that mine (and indeed explore assessed for commercial exploitation. These are issues
as well) and agencies that regulate. While the IBM has no not merely of mineral exploration but of resource
exploratory function, the State Directorates may have security with respect to widely used industrial metals,
and the arm’s-length principle has to be systemically such as Copper, Lead, and Zinc; fertilizer minerals, such
and transparently incorporated. Given the complex as Phosphates; the Platinum group of elements, and now,
and widespread nature of regulatory deficit generally in in the context of sophisticated applications, including
the mining sector, perhaps the time has come to create renewable and non-fossil energy applications, the
independent Mining Regulatory Authorities for oversight Technology Metals, that is, Molybdenum (Mo), Rhenium
at State level to restore investor confidence and to (Re), Tellurium (Te), Selenium (Se), Germanium (Ge),
ensure that the primary regulatory mechanisms for Cadmium (Cd), Indium (In), Gallium (Ga), Vanadium(V),
exploration (as well as mining plans and closure plans) Scandium (Sc), and Energy-Critical Metals, such as
JUNE 2017 11
