Page 5 - The Mineral Development and Regulation Framework in India (English Version)
P. 5
Discussion Paper
well as with the governance requirements of the sector, Compliance with environmental regulation: The
and also address the problems currently bedeviling Supreme Court is looking into issues of violation
the sector. of environmental regulations in many States and
has severely restricted mining and export of iron
Governance issues that need to be addressed ore in some States. While environmental impact at
mine level may be sought to be addressed under
Despite regulatory initiatives and policy measures the framework of environmental laws, including
in the past, the Mining Sector is in some difficulty the Environment Protection Act 1986, through
because of the following challenges: impact assessment and management plans at
mine levels, cumulative and regional impacts
Illegal Mining: There are widespread allegations are inadequately understood and addressed,
of illegal mining in many States. Much of this and issues of “regional carrying capacity” need
stems from governance failures and regulatory to be incorporated into mineral concession
inadequacies. Besides loss of revenue and management.
implications for the environment, and health
and well-being of the local populations, it erodes Private sector participation and investment: The
confidence in the regulatory mechanism, thus mining industry finds the current system of
disincentivizing investments in the sector. granting concessions marred by inordinate delays
Dolbear Ranking of Countries for Mining Investment (2006 and 2013)
Rank Average Rating* Rank Average Rating*
2013 2006 Country 2013 2006 2013 2006 Country 2013 2006
11 Australia 56.30 59 14 - Philippines 30.40 -
22 Canada 54.30 57 15 10 Argentina 29.00 35
34 Chile 51.00 50 16 10 China 28.70 35
47 Brazil 45.60 40 17 15 India 27.80 28
54 Mexico 43.10 50 18 22 Indonesia 27.50 17
63 United States 41.70 51 19 9 Mongolia 26.90 36
7- Colombia 40.50 - 20 19 Zambia 26.10 22
8- Botswana 36.80 - 21 16 South Africa 24.40 25
98 Ghana 36.00 38 22 19 Papua New 21.00 22
Guinea
10 14 Peru 35.90 29 23 18 Kazakhstan 20.90 23
11 12 Namibia 33.60 34 24 24 D.R. Congo 17.70 13
12 - Mozambique 32.00 - 25 19 Russia 17.10 22
13 13 Tanzania 31.90 32
Source: Behre Dolbear, 2006 and 2013; http://www.dolbear.com/announcements/2013-ranking-of-countries-for-mining-investment-or-where-
not-to-invest
* Rating based on country’s economic system, the country’s political system, the degree of social issues affecting mining in the country, delays in
receiving permits due to bureaucratic and other issues, the degree of corruption prevalent in the country, the stability of the country’s currency, the
competitiveness of the country’s tax policy.
JANUARY 2015 5
well as with the governance requirements of the sector, Compliance with environmental regulation: The
and also address the problems currently bedeviling Supreme Court is looking into issues of violation
the sector. of environmental regulations in many States and
has severely restricted mining and export of iron
Governance issues that need to be addressed ore in some States. While environmental impact at
mine level may be sought to be addressed under
Despite regulatory initiatives and policy measures the framework of environmental laws, including
in the past, the Mining Sector is in some difficulty the Environment Protection Act 1986, through
because of the following challenges: impact assessment and management plans at
mine levels, cumulative and regional impacts
Illegal Mining: There are widespread allegations are inadequately understood and addressed,
of illegal mining in many States. Much of this and issues of “regional carrying capacity” need
stems from governance failures and regulatory to be incorporated into mineral concession
inadequacies. Besides loss of revenue and management.
implications for the environment, and health
and well-being of the local populations, it erodes Private sector participation and investment: The
confidence in the regulatory mechanism, thus mining industry finds the current system of
disincentivizing investments in the sector. granting concessions marred by inordinate delays
Dolbear Ranking of Countries for Mining Investment (2006 and 2013)
Rank Average Rating* Rank Average Rating*
2013 2006 Country 2013 2006 2013 2006 Country 2013 2006
11 Australia 56.30 59 14 - Philippines 30.40 -
22 Canada 54.30 57 15 10 Argentina 29.00 35
34 Chile 51.00 50 16 10 China 28.70 35
47 Brazil 45.60 40 17 15 India 27.80 28
54 Mexico 43.10 50 18 22 Indonesia 27.50 17
63 United States 41.70 51 19 9 Mongolia 26.90 36
7- Colombia 40.50 - 20 19 Zambia 26.10 22
8- Botswana 36.80 - 21 16 South Africa 24.40 25
98 Ghana 36.00 38 22 19 Papua New 21.00 22
Guinea
10 14 Peru 35.90 29 23 18 Kazakhstan 20.90 23
11 12 Namibia 33.60 34 24 24 D.R. Congo 17.70 13
12 - Mozambique 32.00 - 25 19 Russia 17.10 22
13 13 Tanzania 31.90 32
Source: Behre Dolbear, 2006 and 2013; http://www.dolbear.com/announcements/2013-ranking-of-countries-for-mining-investment-or-where-
not-to-invest
* Rating based on country’s economic system, the country’s political system, the degree of social issues affecting mining in the country, delays in
receiving permits due to bureaucratic and other issues, the degree of corruption prevalent in the country, the stability of the country’s currency, the
competitiveness of the country’s tax policy.
JANUARY 2015 5
