Page 18 - The Mineral Development and Regulation Framework in India (English Version)
P. 18
Discussion Paper
development, implementation, and enforcement TERI PROJECTS ON MINING AND MINERALS
of both the Mining Plan and the Closure Plan
require full alignment with the Environment • Responsible Sovereignty’ and Energy Resources
Management Plan (EMP) developed for the (2010–2012)
purpose of the Environment Protection Act
1986. It also requires full compliance with the • Critical Minerals for India (2009–2010)
mine level requirements under the Sustainable • A sustainable development framework for mineral sector,
Development Framework. While the latter is
ensured by the regulatory processes of the sector, Gujarat (2007–2008)
the interlocking of the EMP and the Mining Plan • Economic Analysis for Strategic Petroleum Reserves (SPR)
and Closure Plan is impeded by the fact that they
are under separate legislations and in different in India (2010)
sectoral silos. Empowering and capacitating the • Developing action and monitoring plan for reclamation
mining regulatory mechanisms as the first line of
implementation of the EMP is crucial to overcoming of mine-degraded lands and addressing socio-
the environmental problems currently facing economic and livelihood issues of fringe populations
the sector. of Vastan Lignite Mine of GIPCL, Mangrol, Surat
(2005–2007)
It is often said that a Closure Plan must be ready • Compensation to resource bearing states: Minerals and
before the mine is opened. This is of course coal (2006–2007)
important to ensure that progressive closure • Responsible mining—A multi-stakeholder perspective
takes place quickly and economically as an area (2005–2006)
gets mined out. It is also necessary to know the • Accounting for unsustainable mining in Madhya Pradesh
costs of closure as they are a part of project costs and West Bengal (2003–2005)
and must be properly budgeted. A system of • Planning for sustainable regeneration in mining areas
obtaining adequate financial assurances for the (2002–2005)
progressive and final mines closure has to be • Environmental/Social performance indicators (ESPIs)
interwoven into the legislation if mines are to be and sustainability markers in minerals development
scientifically closed at the end of their useful life. (1998–99, 2000–2002, 2003–2006)
In case the system of almost guaranteed extension • EPA models to predict short-term pollution levels due to
of lease till exhaustion of the deposit is not the individual mines (2001–2002)
norm, actual financial contributions will need to • Review of regulatory framework in coal industry in India
be obtained from the lessees over the course of (1998–2000)
the lease periods and held in a separate account • Designing a Minerals Foundation for Goa (2000)
to ensure proper apportionment of the closure • Study of Environmental Issues in Coal Mining and
costs among the various succeeding lessees when Associated Costs (1991)
actual closure is done by the final lessee.
Conclusions
As well brought out in the Ministry of Mines’ Strategy
paper Unlocking the Potential of the Indian Minerals Clearly then, a new legislative framework is urgently
Sector, there is a need to “enforce critical components of required, and mere amendment of the concession
sustainability through regulatory changes, e.g., increase grant provisions will not solve the deep and serious
financial commitment for mine closure and link it to problems that prevent mining from becoming a
post-closure rehabilitation cost (e.g., financial guarantee driver for the growth of the economy. The need is
in Quebec is 70 per cent of post-closure cost).” to not merely address the issues of methodologies of
grant of concessions and recovering a fair value for a
national resource, but also to attract investment and
advanced technologies for exploration and mining,
ensure adequate mining regulation, and importantly,
incorporate the concerns of the local communities
adversely affected by mining-related activities.
18 JANUARY 2015
development, implementation, and enforcement TERI PROJECTS ON MINING AND MINERALS
of both the Mining Plan and the Closure Plan
require full alignment with the Environment • Responsible Sovereignty’ and Energy Resources
Management Plan (EMP) developed for the (2010–2012)
purpose of the Environment Protection Act
1986. It also requires full compliance with the • Critical Minerals for India (2009–2010)
mine level requirements under the Sustainable • A sustainable development framework for mineral sector,
Development Framework. While the latter is
ensured by the regulatory processes of the sector, Gujarat (2007–2008)
the interlocking of the EMP and the Mining Plan • Economic Analysis for Strategic Petroleum Reserves (SPR)
and Closure Plan is impeded by the fact that they
are under separate legislations and in different in India (2010)
sectoral silos. Empowering and capacitating the • Developing action and monitoring plan for reclamation
mining regulatory mechanisms as the first line of
implementation of the EMP is crucial to overcoming of mine-degraded lands and addressing socio-
the environmental problems currently facing economic and livelihood issues of fringe populations
the sector. of Vastan Lignite Mine of GIPCL, Mangrol, Surat
(2005–2007)
It is often said that a Closure Plan must be ready • Compensation to resource bearing states: Minerals and
before the mine is opened. This is of course coal (2006–2007)
important to ensure that progressive closure • Responsible mining—A multi-stakeholder perspective
takes place quickly and economically as an area (2005–2006)
gets mined out. It is also necessary to know the • Accounting for unsustainable mining in Madhya Pradesh
costs of closure as they are a part of project costs and West Bengal (2003–2005)
and must be properly budgeted. A system of • Planning for sustainable regeneration in mining areas
obtaining adequate financial assurances for the (2002–2005)
progressive and final mines closure has to be • Environmental/Social performance indicators (ESPIs)
interwoven into the legislation if mines are to be and sustainability markers in minerals development
scientifically closed at the end of their useful life. (1998–99, 2000–2002, 2003–2006)
In case the system of almost guaranteed extension • EPA models to predict short-term pollution levels due to
of lease till exhaustion of the deposit is not the individual mines (2001–2002)
norm, actual financial contributions will need to • Review of regulatory framework in coal industry in India
be obtained from the lessees over the course of (1998–2000)
the lease periods and held in a separate account • Designing a Minerals Foundation for Goa (2000)
to ensure proper apportionment of the closure • Study of Environmental Issues in Coal Mining and
costs among the various succeeding lessees when Associated Costs (1991)
actual closure is done by the final lessee.
Conclusions
As well brought out in the Ministry of Mines’ Strategy
paper Unlocking the Potential of the Indian Minerals Clearly then, a new legislative framework is urgently
Sector, there is a need to “enforce critical components of required, and mere amendment of the concession
sustainability through regulatory changes, e.g., increase grant provisions will not solve the deep and serious
financial commitment for mine closure and link it to problems that prevent mining from becoming a
post-closure rehabilitation cost (e.g., financial guarantee driver for the growth of the economy. The need is
in Quebec is 70 per cent of post-closure cost).” to not merely address the issues of methodologies of
grant of concessions and recovering a fair value for a
national resource, but also to attract investment and
advanced technologies for exploration and mining,
ensure adequate mining regulation, and importantly,
incorporate the concerns of the local communities
adversely affected by mining-related activities.
18 JANUARY 2015
