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3. Regulation of Minerals
The legal framework for regulation of mines and minerals, except petroleum and
natural gas, was laid down in the Mines and Minerals (Development and Regulation)
Act, 1957.
The Central government shall cooperate with the State government in the formulation
of legal measures necessary for giving effect to the New Mineral Policy, 2008. The
regulation of minerals in line with this policy shall be the joint responsibility of the
State and Central Governments.
In order to encourage private investors, the grant of mineral concessions such as
Reconnaissance Permits, Prospecting Licences and Mining Leases shall be made
smooth and transparent. Concessionaires shall be granted security of tenure.
4. Role of the State in
Mineral Development
The major function of the State will be to facilitate and regulate exploration and
mining activities of investors and entrepreneurs, as well as provide infrastructure and
collect related taxes.
To ensure fair play, a distance will be maintained between State agencies that mine
(PSUs) and those that regulate mining activities.
Reservation of ore bodies for State agencies in areas not held by private players shall
be done transparently and fairly, except in cases where specific security or public
interest considerations are involved.
The principal agency for geological mapping and regional mineral resources assessment of
the country is The Geological Survey of India with detailed exploration on land being done by
the Mineral Exploration Corporation, Directorates of Mining and Geology of the State
Governments and various Central and State Public Sector Organizations.
Special attention to be given to the extraction of minerals of strategic importance by
exploring and investigating potential sources of minerals.
The private sector would in future be the main source of investment for the purpose of
exploration and research. An open-sky policy based on non-exclusivity to be adopted in order
to speed up completion of the investigation. Large Area Prospecting License to be used in
order to attract large high-risk investments and high-end technology not applicable for bulk
Optimal utilization of Indias exclusive economic zone of utmost importance. The Ministry of
Earth Sciences (MoES) and its agencies entrusted with the task of sea-bed exploration and
mining to be completed within the time prescribed by the International Sea Convention so
that no area of sea bed mining is lost to the country.
Minerals which are high in demand to be given highest priority.
The national database of mineral resources to based on an extensive review
of exploration data. The Indian Bureau of Mines in coordination with
Geological Survey of India to maintain the database in digitized form
comprising both a Resource Inventory and a Tenement Registry.
The Resource Inventory to be in accordance with latest version of the UNFC
system (reserves and remaining resources) as well in the traditional IBM
form of resources and probable and proven reserves. The Tenement Registry
will give information of both Leasehold Areas as well as Freehold Areas.

The guiding principle in the strategy of development of any mineral or mineral deposit at any
location shall ordinarily be the economic cost of recovery
The State may, however, undertake the development of any mineral or mineral deposit in public
interest to ensure unhindered availability of mineral raw material for the realisation of national

As minerals are exhaustible and non-renewable resources, their exploitation has to be done
keeping in view not only the present but the long term needs.
A thrust is to be given to exploitation of mineral resources in which the country is well endowed so
that industries based on these resources can come up to meet the needs of industrial materials for
which we have now to depend on external sources.

Mine development and mineral conservation as governed by the rules and regulations will be on
sound scientific basis, with the regulatory agencies closely interacting with R&D organisation,
scientific and professional bodies.
Conditions of mining leases regarding tenure, size, shape, disposition with reference to geological
boundaries and other mining conditions shall be such as to favourably predispose the leased areas
to systematic and complete extraction of minerals.

* Mining contributes to the generation of wealth and creation of employment independently and should
therefore be treated as an economic activity in its own right and not merely as a subsidiary activity of
manufacturing industry.
Development of mineral resources and their utilisation in the end products have distinct stages which are
closely interlinked. Failure in the performance at any one stage eventually affects both the mining and the
mineral industry and the units dependent on it.
The mineral processing unit should not only get an assured supply of the mineral raw material but should
also have close linkages with the production and marketing agencies of the mineral based end products.

Indigenous industry for manufacture of mining equipment and machinery shall be strengthened.

Wherever necessary, imports of machinery and equipment may be permitted to improve the efficiency,
productivity and economics of mining operations and safety and health of persons in the mines and the
surrounding areas.

Development of manpower can be done by setting up of specialized institutes and training programmes,
that ensure there is availability of skilled labour at all levels for all round development of mines and
minerals. Computerisation, automation and mechanisation of mining units should be emphasised and the
manpower development programme should be accordingly modified.
Remote areas with mineral deposits and poor facilities should be provided with better infrastructure so
that they can reach their optimum level of development. With the help of public- private partnerships a
positive environment can be created and this will motivate large mining companies to construct
transportation networks.
Financial institutions should provide monetary support for the development and exploration of mines.
Foreign investment in such mining projects should also be encouraged.
In areas where there are small mineral deposits, efforts will be made to prevent exploitation and illegal
mining activity by promoting small scale mining. This should be done in a scientific and efficient manner
so as to prevent adverse ecological and scientific impacts.
A Sustainable Development Framework to ensure that the mine owner leaves the mining area in a better
ecological state than before by undertaking activities such as afforestation etc. should be developed. Any
mining party should be allotted the land only if it has an internationally acceptable environmental
management plan in place.
Rehabilitation of the affected should be done through allotment of land or monetary compensation. The
tribes living in the mining area should be made stakeholders in the business.
After the process of extraction is complete, proper scientific closure of mines must be done to make sure that
the mining communities around the mines do not face hardships during transition into another profession.
Measures that ensure maximum safety of the mine workers, prevent or reduce accidents should be followed.
Also, steps should be taken to reduce the negative health impact of working in a mine or living around it.
8. Foreign Trade

1. Efforts should be made in order to increase the exports of minerals. There should
be more emphasis on the export in the for of value added rather than raw
2. The country's mineral industry should keep up with the international market to
get greater advantage from foreign trade through technological advancements
and a careful analysis of the changes of demand for minerals in the international
market .
3. There should be coordination between the import of minerals and development
of the country's mineral based industries. The nations rich in minerals could help
our industrial sectors with certain mineral which our country lacks. This can be
done with mutual consent . This may also lead to the decrease of prices of the
resources to the domestic users.
4. Once a long term policy is being set it would provide help as well as improve the
commercial mining activities which take place for the betterment of foreign
trade . To develop mining as a modern n technology based industry substantial
investment is required.
5. The government should gives assurances and allowances on the export of
minerals which will help in increasing FDI in the mining sector.

9. Fiscal Aspects

1. The government formulates policies regarding mining research and
development keeping the budget under serious consideration.
2. The fiscal aspects are to be examined from time to time due to the changing
mineral scenario.
3. All fiscal policies are put forth by the government with the aim that adequate
returns be forthcoming to the state
Research in Mining Development, Viable Resource Exploration, Development of more
efficient technologies and finding extra applications of mineral use. Making extraction of
minerals from ores more economic by minimizing wastage as utilizing low grade ores and
finer sized materials.
Research in Deep Sea Mining. India has a viable area of 150,000 sq. km. in the Indian Ocean
to explore and utilize.
Optimum pooling of national laboratories, educational institutions, R&D facilities and private
sector enterprises for efficient Research. Making sure that developments by research are
shared with all ,
Research should be done in a way that it accounts for an all-round development of the
meaning of mining in itself. The safety , budget , clubbed with environment damage factors
have to be taken into consideration. These include r & d in robotics and automatic systems,
to minimize human presence in hazardous areas of mines.
Research in production of raw materials used to create high purity products, Which are used
to make semiconductors ,lasers and other equipments in of raw material is very important
for the proper functioning of the product.

Research shall be directed towards the field of:
Research in Mining Methods
Mineral Processing and Benefits
Development of Automated Equipment
Deep Sea Mining
Productions of Materials of High Purity
Coordination of Research Organizations: The diverse institutions in the field of mining
research in development must be commonly known as National Institute of Mineral


Mineral resource is such a wealth that is limited and non-renewable i.e. vastly precious.
Ultimately, benefit of a Mineral Policy should be such that it does not endanger the resources
for the future citizens of this country.

The requirement of an efficiently planned mining research and development, survey and
exploration should be materialized optimally, keeping economic factors in mind.