MINING OF MINERALS BEYOND 2020

Rakesh M.M.
Assistant manager, Mines
JSW Steels Ltd
Contribution to GVA

Service Sector
Manufacturing Constuction
54% 17% 8%
Industry Sector
29%

Mining &
Quarrying
2%
Agriculture
Sector
Electricity, gas, water& other utility
17% 2%

Source Economic Survey 2017-18 :for Agriculture ,Industry as Whole and Service Sector as Bifurcated
Status of mines-2020

2 Leases to expire by 2020 Leases auctioned as on date

4
6
4

13 18 3 6 7
11
31 5 5
9 13

184 9 5
48 14
333 64
A Million $ question

What will be
the fate of Legal Fiscal Tech. Tech- Amend
mining Regime Regime Parame Comm ments
beyond 2020? ters aspects
Legal Regime
1. Lease grant shall be only through transparent bidding process.
2. Pending RP,PL & ML shall have to experience the auction route.
3. Auctioned leases can be transferred to a new party fulfilling the same conditions of
prior lessee. Legal
Regime
4. Area may be reserved for Government companies.
5. Mine owners/agents are made more responsible on day to day mining activity.
6. No supportive amendments in obtaining Clearances.
7. No mining in identified ecologically fragile and biologically rich areas.
8. Identification of ecologically critically fragile & declare as ‘in-violate areas’ or ‘no-go
areas’.
Fiscal Regime
1. Stamp Duty has become a major CAPEX & a vital deciding factor.
2. Additional levy in terms of DMF, NMET and auction premium.
3. Landing cost of raw material will be more and so as finished product.
4.Financial assurance is enhanced to Rs. 300000 per ha.
5. Revision of Royalty in every 4 years.
6.Penalties under various provisions.
7. Payment of NPV during renewal of leases.
Technical parameters
1. Promotion of zero waste mining, blending.
2. Dumping outside the lease shall be promoted subject to clearances.
3. Amalgamation of leases with separate auction premium.
4.Relaxation in limitation of area of lease grant.
5. Cap on production for mineral conservation.
6.Utilisation of unutilised viz. BHQ, BHJ, siliceous, coal dust etc.
7. Ban on thermal power generation.
8.Deep sea mining, vein mining shall be granted as FCFS basis.
9.Priority on mine and industrial safety.
Techno-commercial aspects
1. RP cum PL proposal - to promote exploration agencies.
2. NERP and Captive leases shall get First right of refusal.
3. Export shall be allowed for value added products only.
4.Adoption of latest exploration standards to reduce speculation of financial
trends.
5. Reduce import dependency by exploring and granting more areas.
6.Restructuring of Tax slabs applicable to mining industry.
7. Signing of bilateral & multilateral agreements to avoid Monopsony,
Monopoly & Oligopoly.
8.Redefine Policies to make India a lucrative destination of investment.
Expected Amendments in Mineral sector
1. Section 9(3) of the MM(D&R) Act, 1957 in the matter of revision of Royalty.
2. Provisions under “The Ease of Compliance to Maintain Registers under various Labour Laws Rules,
2017”
3. Rule 6, 7 & 8 of “The Forest (Conservation) Rules, 2003” read with subsequent amendments in the
matter of proposal of FC clearances.
4. Rule 23 of “The M(OACHEM) CR, 2016” in the matter of transfer of lease.
5. Section 6 of the MM(D&R) Act, 1957 in the matter of maximum extent of lease.
6. Rule 19 of “The M(OACHEM) CR, 2016” in the matter of restriction on right of first refusal.
7. Rule 12 (4A) of “The MCDR, 2017” in the matter of exploration by the lessee.
8. Rule 9 of “The Mineral (Auction) Rules, 2015” in the matter of bidding process(evaluation of
immovable properties).
9. Provisions and calculation of Stamp Duty.
10.EXIM Policy.
Conclusion
1. India aims to increase the share of the manufacturing sector in the economy.

2. Requires a holistic development of the mineral sector on a sustainable basis.

3. The outcomes expected from these policy proposals are, an increase in the production
of minerals (in value terms) by 200 % in 7 years; and on the other hand reduce the
trade deficit in minerals sector by 50% in 7 years.

4. Efforts are put in propelling India on to a loftier development trajectory.

“It is not the strongest of the species that survives, nor the most intelligent one. It is the one
that is most adaptable to change.”- Charles Darwin.
An initiative towards sustainability

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