Only a fourth of explorers filed mineral data in seven years

Only one-fourth of companies with reconnaissance permits or prospecting licences have submitted mineral exploration data to the government in the last seven years, according to the ministry of mines.

State governments granted 401 reconnaissance permits and 920 prospecting licences between November 2007 and December 2014. Of these, 186 holders of reconnaissance permits and 151 prospecting licencees have submitted their data.

A reconnaissance permit is needed for preliminary exploration for a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, but it does not allow pits, trenches or drilling. A prospecting licence is needed for secondary exploration to prove the existence of mineral deposits.

Andhra Pradesh, Madhya Pradesh and Rajasthan led in granting these exploration licences between 2007 and 2014. The three states granted 161, 523 and 259 licences, respectively. Only 13 per cent licencees in Rajasthan and 20 per cent in Madhya Pradesh have submitted exploration data.

On the other hand, Jharkhand, Odisha, Chhattisgarh and Karnataka, four of the country's most mineral rich states, granted 26, 27, 70 and 71 exploration licences, respectively, during the period.

The Centre has renewed its focus on mining in the past year as India's explored area is miniscule to its obvious geological potential. According the ministry of mines, 570,000 sq km of India's land area of 3.28 million sq km has obvious geological potential. In 2012, the ministry said, only 5,046 sq km was under any mineral lease, less than 1 per cent of the potential.

The government also does not have data on hand for auctioning mineral rights. According to the Mines and Minerals (Development and Regulation) Act, 2015, state governments will have the power to auction every mineral, barring coal.

New mineral evidence rules notified in April allow a composite licence - a prospecting licence-cum-mining lease - to be auctioned only after G3 level exploration. A mining lease can be auctioned only after G2 level exploration.

States like Odisha have said they do do not have the technological and financial expertise for this level of exploration. States worry they will not get good prices if evidence of mineral content is not adequate. The central government will form a National Mineral Exploration Trust soon to boost exploration.

"Apart from NMDC and MECL, we have appointed central public sector undertakings such as SAIL, RINL, KIOCL and MIOL as well as state PSUs from Chhattisgarh and Madhya Pradesh for exploration work. We are increasing exploration with their help. If there is better data available, even states will get more revenue in auctions," Union Mines Minister Narendra Singh Tomar had said earlier in an interview to Business Standard.