Centre plans external audit for mines not inspected

Proposal follows poor plan implementation by companies

The Centre wants external agencies to audit whether companies are adhering to government-approved mining plans.

Mining plans include details like the extent of mineral body, geology, lithology, mineral reserves, mechanisation, plan of area indicating water course, and water pollution.

"Poor implementation defeats the objective of systematic and scientific development of mines, conservation of minerals, and protection of the environment," the Centre said in a communication to states.

Third-party audits are expected to identify deviations from proposals furnished in mining plans.

The Centre plans to cover all mines that have not been inspected because of a lack of manpower in the Indian Bureau of Mines, the agency responsible for approving and monitoring mining plans for most minerals. State governments can approve mining plans for 29 minor minerals like quartz, shale and dolomite.

The Indian Bureau of Mines is able to inspect only a fraction of all the mines in the country. "A single officer conducts the site inspection and prepares the report entirely based on his experience without any instrument... such studies do not yield any tangible results," the Centre pointed out.

The Centre has proposed the audit team consist of eminent persons from various fields familiar with the latest techniques prevailing in the industry. The report may be based on subject or be an integrated study incorporating all aspects of mining.

"A number of mining engineering, technology, and services companies can undertake the third-party audits," said Kameswara Rao, leader for energy, utilities and mining at PriceWaterhouseCoopers. "It would help if the government accredits them to ensure technical standards are maintained and issues guidelines to avoid conflict of interest."

The proposal says third-party audits will be conducted at least once every year for each mine. These will also be conducted before expansion of a mine or implementation of a new mining technology.

Moreover, the major issues of the study report will be discussed in the Centre's quarterly coordination meetings for groups of states to devise policy and discuss its implementation.