Page 14 - The Mineral Development and Regulation Framework in India (English Version)
P. 14
Discussion Paper
resources which have been discovered and those that are through prospecting before it is possible to decide on
in the process of discovery and their optimal, economical mining. A proper mining plan requires knowledge of
and timely use are matters of national importance. The the quality and extractability of the various minerals
success of the second national mineral policy will depend present in the ore, so that the methodology for
largely on a national consensus to fulfill its underlying extraction and beneficiation of the ore (and recovery
principles and objectives.” of minor metals) can be worked out scientifically, and
the useful life of the mine can also be estimated. All
Exploration and environmental concerns this has implications for estimating the requirement
of financial and technical resources for the mining
Systematic and continuing exploration using more operations and reducing the adverse impacts of
and more sophisticated technologies enables the mining and reducing waste, and of course to ensure
location of hidden mineral deposits of metals in that a proper mine closure plan is developed and
short supply or which are likely to form part of implementation commenced well in time.
the resource base of the future. Not only must the
exploration grant regime be quick and simple, but The idea of inviting bids for grant of mining leases
issues of environmental clearance for exploration seems on the face of it, logical and attractive. However,
must be handled quite differently from those relating bids can be invited only for areas where prospecting
to mining. Facilitating exploration improves choice has been conducted and enhanced mineralization has
when it comes to selection of a mineral deposit for been found as per prospecting report and feasibility
mining, and it is at this stage that environmental study [conforming to a United Nations Framework
impacts among the potential areas need to be analysed Classification for Fossil Energy and Mineral Resources
in depth for comparative as well as specific impacts. (UNFC) standard of “fully prospected ore body”].
At exploration stage, environmental clearances Bids will need to give separate weightage to techno-
should obviously be denied for “no-go” or “inviolate” economic and financial criteria, so as to enable State
areas, but in areas where the issue is mainly one of Governments to give preference for experience or
minimizing the damage to the environment from value addition, etc., or for increasing revenues, as the
invasive activities like pitting, trenching, collection State Governments may prefer as per their policies,
of stream sediments and of course drilling, the focus and the nature and location of deposits. In actual
needs to be on preparation and enforcement of a practice, the estimation of mineral resources and
proper environmental management plan to reduce reserves will need to conform to standards accepted
the impacts, rather than delay, or artificially reduce the for financial and investment purposes, such as JORC.
scale or scope of the activity to suboptimal levels. A JORC would probably classify such an area as being
sustainable development framework must therefore at “pre-development” or “development” stage.
address issues from the exploration stage onwards, The valuation too will need to conform to credible
rather than at the mining stage, and the legislation standards such as VALMIN.
must provide accordingly.
The provision for a techno-economic-cum
Mining lease financial bid and an almost guaranteed extension till
extraction of a fully prospected ore body can optimize
The provision in the MMDR Act 1957 of allowing value realization for the State Government in more
direct applications for mining leases for major ways than one. In particular, it addresses, through a
minerals on a first-in-time basis is clearly flawed for transparent process, the issue of value addition within
the reason that it is not enough to just suspect or a State, which hitherto was being done through a
even to know that there is some mineralization in variety of measures including reservation of areas
order to mine. The nature and disposition of the ore for State PSUs, joint ventures, Memorandums of
body must be ascertained to the best extent possible Understanding (MoU), etc. Many State Governments
14 JANUARY 2015
resources which have been discovered and those that are through prospecting before it is possible to decide on
in the process of discovery and their optimal, economical mining. A proper mining plan requires knowledge of
and timely use are matters of national importance. The the quality and extractability of the various minerals
success of the second national mineral policy will depend present in the ore, so that the methodology for
largely on a national consensus to fulfill its underlying extraction and beneficiation of the ore (and recovery
principles and objectives.” of minor metals) can be worked out scientifically, and
the useful life of the mine can also be estimated. All
Exploration and environmental concerns this has implications for estimating the requirement
of financial and technical resources for the mining
Systematic and continuing exploration using more operations and reducing the adverse impacts of
and more sophisticated technologies enables the mining and reducing waste, and of course to ensure
location of hidden mineral deposits of metals in that a proper mine closure plan is developed and
short supply or which are likely to form part of implementation commenced well in time.
the resource base of the future. Not only must the
exploration grant regime be quick and simple, but The idea of inviting bids for grant of mining leases
issues of environmental clearance for exploration seems on the face of it, logical and attractive. However,
must be handled quite differently from those relating bids can be invited only for areas where prospecting
to mining. Facilitating exploration improves choice has been conducted and enhanced mineralization has
when it comes to selection of a mineral deposit for been found as per prospecting report and feasibility
mining, and it is at this stage that environmental study [conforming to a United Nations Framework
impacts among the potential areas need to be analysed Classification for Fossil Energy and Mineral Resources
in depth for comparative as well as specific impacts. (UNFC) standard of “fully prospected ore body”].
At exploration stage, environmental clearances Bids will need to give separate weightage to techno-
should obviously be denied for “no-go” or “inviolate” economic and financial criteria, so as to enable State
areas, but in areas where the issue is mainly one of Governments to give preference for experience or
minimizing the damage to the environment from value addition, etc., or for increasing revenues, as the
invasive activities like pitting, trenching, collection State Governments may prefer as per their policies,
of stream sediments and of course drilling, the focus and the nature and location of deposits. In actual
needs to be on preparation and enforcement of a practice, the estimation of mineral resources and
proper environmental management plan to reduce reserves will need to conform to standards accepted
the impacts, rather than delay, or artificially reduce the for financial and investment purposes, such as JORC.
scale or scope of the activity to suboptimal levels. A JORC would probably classify such an area as being
sustainable development framework must therefore at “pre-development” or “development” stage.
address issues from the exploration stage onwards, The valuation too will need to conform to credible
rather than at the mining stage, and the legislation standards such as VALMIN.
must provide accordingly.
The provision for a techno-economic-cum
Mining lease financial bid and an almost guaranteed extension till
extraction of a fully prospected ore body can optimize
The provision in the MMDR Act 1957 of allowing value realization for the State Government in more
direct applications for mining leases for major ways than one. In particular, it addresses, through a
minerals on a first-in-time basis is clearly flawed for transparent process, the issue of value addition within
the reason that it is not enough to just suspect or a State, which hitherto was being done through a
even to know that there is some mineralization in variety of measures including reservation of areas
order to mine. The nature and disposition of the ore for State PSUs, joint ventures, Memorandums of
body must be ascertained to the best extent possible Understanding (MoU), etc. Many State Governments
14 JANUARY 2015
