By Our Correspondent
NEW DELHI/BHUBANESWAR: GSI has completed 8,577 sq. km Specialized Thematic Mapping (on 1:25,000 scale) out of 23000 sq. km target during Annual Programme 2021-22 till the end of November 2021.GSI has completed 77,395.1 sq. km National Geochemical Mapping (on 1:50,000 scale) out of 240,000 sq. km target during Annual Programme 2021-22 till the end of November 2021.
GSI has completed 35,220 sq. km National Geophysical Mapping (on 1:50,000 scale) out of 1,00,000 sq. km target during Annual Programme 2021-22 till the end of November 2021.
GSI has completed preliminary marine mineral investigation for 3485 sq. km in Exclusive Economic Zone (EEZ) out of 4,000 sq. km target during Annual Programme 2021-22 till the end of November 2021.
GSI has been engaged in 6 programmes of National Landslide Susceptibility Mapping (NLSM on 1: 50,000 scale) during 2021-22. GSI has covered 18,640 sq. km by Landslide Susceptibility Mapping out of 35,147 sq. km target during Annual Programme 2021-22 till the end of November 2021.As per the dissemination policy 2019 of GSI, all reports of mineral exploration, baseline data generation and fundamental geosciences are made available to all stakeholders through GSI portal.
GSI has taken up about 250 mineral exploration projects during 2021-22.
GSI has handed over 43 (G3/G2) reports to the State Government in 2021. Of these, 14 blocks are of limestone, 4 blocks are of base metal, 4 blocks of bauxite, 3 blocks of gluconate, 6 blocks of manganese, 6 blocks of iron ore and one each of diamond, float iron ore, flux grade dunite (MgO), magnetite, PGE and graphite & vanadium.
The state of Odisha has the largest contribution with 11 blocks followed by Rajasthan (6 blocks) and Jharkhand (6 blocks). The other contributing states are Madhya Pradesh- 4 blocks, Meghalaya- 3 blocks, Chhattisgarh- 3 blocks, Bihar- 3 blocks, Gujarat- 2 blocks, Tamil Nadu 2 blocks. Andhra Pradesh, Assam and Karnataka have contributed one block each.
GSI has also handed over 100 potential G4 stage blocks in phase I for auction as Composite Licence to the State Governments in the month of September, 2021 and 52 potential G4 stage blocks in phase II in the month of November, 2021.
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) has been amended through the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which has been notified on 28.03.2021, for giving boost to mineral production, improving ease of doing business in the country and increasing contribution of mineral production to Gross Domestic Product (GDP). Some of the major reforms brought in the Amendment Act, 2021 are as under:
Removed the distinction between captive and merchant mines. It allows all captive mines to sell up to 50% of the minerals produced during the year after meeting the requirement of attached plant subject to the payment of additional amount as prescribed under sixth schedule of the MMDR Act. Further, all future auctions will be without any end use restrictions.
Resolved all pending cases under section 10A (2) (b) of the Act.
Statutory clearances to be valid even after expiry or termination of mining lease and shall be transferred to the successful bidder in the auction.To ensure ease of doing business,restriction on transfer of mineral concessions are removed and now mineral concession can be transferred without any transfer charge.
Additional amount hasto bepaid by government companies on grant of new lease or extension of lease which will ensure additional revenue to State Government.Central Government is empowered to conduct auction in cases where the States face challenges in conduct of auction or fail to conduct auction within prescribed time fixed in consultation with State Government. The revenue from auctions will accrue to State Government.
Empowered the Central Government to issue directions regarding composition and utilization of funds under District Mineral Foundation (DMF). Direction to include the MPs, MLAs and MLCs in the Governing Council was issued in April, 2021.
Simplification of exploration regime – (I) National Mineral Exploration Trust (NMET) shall be an autonomous body; (ii) Private entities may be notified under Section 4(1) of the MMDR Act for conducting exploration; (iii) Enable funding of eligible private exploration agencies from NMET; (iv) Provision for seamless PL-cum-ML (composite licence).
In order to implement the amendments made in the MMDR Amendment Act, 2021 Ministry of Mines has notified the following Rules:
The Minerals (Evidence of Mineral Contents) Rules, 2015 amended through the Minerals (Evidence of Mineral Contents) Amendment Rules, 2021 for simplifying the exploration norms prescribed in the rules for certain category of mineral deposits and benchmarking the MEMC Rules with globally accepted classification standards.
Relaxation of Exploration Norms-
ML for limestone, iron ore and bauxite having surficial deposit can be granted at G3 level of exploration. Reassessment of resources in respect of expired, terminated, surrendered or lapsed mines on the basis of available reports of exploration before auction.Auction of composite licence (PL-Cum-ML) at G4 level for all minerals.Definition of various stages of exploration, etc., exploration norms for different types of deposits and reporting template.
Mineral (Auction) Rules, 2015 amended through Mineral (Auction) Third Amendment Rules, 2021. The highlights of amendments in the Rules are as follows:
Definition of Value of Estimated Resources (VER) clarified to enable its calculation in case average sale price of any mineral is not published for any month.To facilitate auction of CL for minerals (other than placer deposits) whose VER cannot be assessed, but have mining potentiality.To provide for sale of 50% of mineral from auctioned captive mines.
Cap on Net Worth requirement for ML – Rs. 200 Cr. and for CL – Rs. 100 Cr.Upfront payment – instalments changed from existing 10%, 10% and 80% to 20%, 20% and 60%.Time-lines added for ML for submission of 1st instalment of upfront payment and for issue of LoI by the State Government.
Time-lines added for CL for submission of Performance Security – 15 days (extendable by further 15 days), for issue of LoI by the State Government – 15 days and execution of PL deed of CL – 1 year (extendable by further 6 months) from issue of LoI.The MCR, 2016 has been amended through Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 on 2nd November, 2021. The highlights of amendments in the Rules are as follows:
New rules inserted to provide manner of sale of 50% of mineral produced from the captive leases. With this amendment, the Government has paved the way for releasing of additional minerals in the market by greater utilization of mining capacities of captive mines. The allowance for sale of prescribed quantity of mineral shall also motivate the lessees to enhance the production from the captive mines. Further, payment of additional premium amount, royalty and other statutory payments in respect of the quantity sold shall boost the revenue of the State Governments.
Provision added to allow disposal of overburden/ waste rock/ mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral. This will enable ease of doing business for the miners. Minimum area for grant of mining lease has been revised from 5 ha. to 4 ha. For certain specific deposits, minimum 2 ha. is provided.
Part surrender of mining lease area allowed in all cases. Presently, part surrender was allowed only in case of non-grant of forest clearance.
Rules amended to allow transfer of composite licence or mining lease of all types of mine.New rules inserted to provide for mutation of ML/ CL in favour legal heirs on death of the lessee or licence.
Interest on delayed payments revised from existing 24% to 12%. Rules regarding period of mining lease granted to Government companies and their payments incorporated in the MCR, 2016.
Penalty provisions in the rules have been rationalized. Previously, the rules provided for penalty of imprisonment up to 2 years or fine up to 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation. Amendment in the rules categorized the violations of the rules under the following major heads: (a) Major Violations: Penalty of imprisonment, fine or both. (b) Minor Violations: Penalty reduced. Penalty of only fine for such violations prescribed. (c) Violation of other rules has been decriminalized. These rules did not cast any significant obligation on the concession holder or any other person. Thus, violation of 49 rules has been decriminalized.
Ministry of Mines has notified the Mineral Conservation and Development (Amendment) Rules, 2021 on 3rd November, 2021 to amend the Mineral Conservation and Development Rules, 2017 [MCDR] to provide rules regarding conservation of minerals, systematic and scientific mining, development of the mineral in the country and for the protection of environment. The highlights of amendments in the Rules are as follows:
(I) Rules prescribed that that all plans and sections related to mine shall be prepared by combination of Digital Global Positioning System (DGPS) or Total Station or by drone survey in relation to certain or all leases as may be specified by Indian Bureau of Mines (IBM).
(ii) New Rule inserted to provide for submission of digital images of mining area by lessees and Letter of Intent holders. Lessees having annual excavation plan of 1 million tonne or more or having leased area of 50 hectare or more are required to submit drone survey images of leased area and up to 100 metres outside the lease boundary every year. Other lessees to submit high resolution satellite images. This step will not only improve mine planning practices, security and safety in the mines but also ensure better supervision of mining operations.
(iii) Requirement of submitting satellite images obtained from CARTOSAT-2 satellite LISS-IV sensor on the scale of cadastral map deleted in view of the insertion of provision for submission of high resolution Georeferenced Ortho-rectified Multispectral satellite and use of drone survey as per Rule 34A.
(iv) Provision of daily return omitted to reduce compliance burden. Power of taking action against incomplete or wrong or false information in monthly or annual returns given to IBM, in addition to State Govt.
(v) Allowed engagement of a part-time mining engineer or a part-time geologist for category ‘A’ mines having leased area below 25 hectares. This will ease compliance burden for small miners.
(vi) In order to increase employment opportunity, diploma in mining and mine surveying granted by duly recognised institute along with a second class certificate of competency issued by the Director General of Mines Safety is added in qualification for full time Mining Engineer. Also, qualification for part time Mining Engineer added.
(vii) Provision of forfeiture of financial assurance or performance security of the lease holder added in case of non-submission of final mine closure plan within the period specified.
(viii) Amount of financial assurance increased to five lakh rupees for Category ‘A’ mines and three lakh rupees for Category ‘B’ mines from existing three and two lakh rupees, respectively.
In addition to the above amendments, the Ministry has notified rescission of two rules, namely, Minerals (Transfer of Mining Leases Granted Otherwise than through Auction for Captive Purpose) Rules, 2016 and Mineral (Mining by Government Company), Rules, 2015. These rules had become obsolete in view of the above amendment in the MMDR Act and the MCR, 2016.
