New policy to allow foreign cos in mine exploration

Govt set to auction more and more blocks to boost mineral production under a new mining regime

Foreign companies with technical expertise in mine exploration would get an opportunity to be a part of India's mine exploration story.

The new National Mineral Exploration Policy in the offing, would allow private companies, including the foreign companies to participate in exploration work as the government prepares to auction more and more blocks to augment mineral production in a new mining regime.

Under the amended Mines and Minerals (Development & Regulation) Act- 2016, mineral blocks are offered on the auction route as opposed to the previous practice of discretionary allotments.

"We are in the process of announcing a new mineral exploration policy to invite private sector participation in a big way for exploration of unexplored resources in the country. Those parties with prior experience in exploration will be allowed to participate. Major exploration companies, junior exploration companies and Indian mining companies would be allowed to take part in exploration. Foreign companies would also be allowed to participate in exploration of blocks to be put for auctions", Union mines secretary Balvinder Kumar said here on the sidelines of the 16th annual Geominetech symposium on 'New Equipment and Safety in Mines'.

He said, the Government of India aims to auction 45-50 mineral blocks in this fiscal in states like Rajasthan, Gujarat, Jharkhand, Odisha and Madhya Pradesh.

So far, six mineral blocks- three in Chhattisgarh, two in Jharkhand and one in Odisha have been explored.

"To expedite auctioning of mineral blocks, we have asked MECL (Mineral Exploration Corporation Ltd) to upgrade the blocks to G2 and G1 level. We are taking many steps to augment mineral production", Kumar added.

Asked on the upcoming meet of the Union mines ministry with state mines ministers, he said, "The meeting will be held in Jaipur (on May 27). We will take stock of the progress in auctions of major mineral blocks. The central government will also discuss about illegal mining of sand and other minor minerals. This is a very serious problem in many states."

The meeting would also deliberate on progress made by states in promulgation of DMF (District Mineral Foundation) Rules and constitution of DMF at district level. The status of collection of the money accrued in the DMF funds and its utilisation would also be discussed.

"We have asked states to collect funds for DMF on prospective basis, from the date of notification", Kumar said.