Govt identifies 100 blocks for private sector exploration

These blocks with 12,000-sq km area have prospects for gold, iron, tin and tungsten

The government on Wednesday launched its national mineral exploration policy (NMEP) under which it has decided to award 100 blocks for private sector exploration through a revenue-sharing model.

Under the new NMEP, the private sector explorer would be getting a certain share in the revenue — just like state governments receive their royalty — from the mining operation of the successful bidder who would be auctioned the explored block.

According to the Mines and Minerals (Development and Regulation) Amendment Act, 2015 — also known as MMDRA Act, 2015 — a mineral explorer would have to mandatorily submit its data with the government so that its mining lease can be auctioned to the highest bidder. However, the old mining law gave the mineral explorer the first right to ask for mining leases after it got sufficient data through exploration.

The identified blocks include a total area of around 12,000 sq km, which have the prospects for gold, iron, tin, tungsten, etc. In another instance, Mines Secretary Balvinder Kumar said he has asked the finance ministry to increase the import duty on primary aluminium from five per cent to 7.5 per cent. He has also recommended raising the import duty on finished aluminium up to 10 per cent.

“We have asked the aluminium industry to present its case. However, we have not asked for an imposition of minimum import price,” Kumar clarified. He also said he is going to send a proposal soon to the finance ministry for low-grade iron ore, mainly produced in Goa, to have zero per cent export duty. “Even for a higher grade ore, we are going to recommend a lower export duty,” he said.