Promotion and Conversion of Vast Mineral Resources

As per National Mineral Policy 2008, conservation of mineral shall be construed not in the restrictive sense of abstinence from consumption or preservation for use in the distant future but as a positive concept leading to augmentation of reserve base through improvement in mining methods, beneficiation and utilisation of low grade ore and rejects and recovery of associated minerals. The Government is aiming for an adequate and effective legal and institutional framework mandating zero waste mining as the ultimate goal and a commitment to prevent sub-optimal and unscientific mining. Mineral Sectoral value addition through latest technique of beneficiation, calibration, blending, sizing, concentration, pelletisation, purification and general customising of product is being encouraged.

The Government has amended the Mines and Minerals (Development and Regulation) (MMDR) Act 1957, through the MMDR Amendment Act 2015 with effect from 12 January 2015, for promoting the mining sector. The amendments in the MMDR Act, 1957 will give impetus to the sector by:

(i) removing discretion in grant of mineral concessions, as mineral concessions will now be granted through auction by competitive bidding;

(ii) allowing opening of mines which were closed due to pendency of decision on applications for second or subsequent renewal through extension of validity of lease period of the existing leases;

(iii) providing security of tenure of mining lease period with a uniform lease period of 50 years;

(iv) simplification of procedure, and removal of delay by eliminating requirement of prior approval of Central Government for grant of mining lease through auction;

(v) establishment of National Mineral Exploration Trust, a dedicated fund to encourage exploration to augment mineral resources;

(vi) allowing easy transferability of mineral concessions granted through auction, which would facilitate investments into the mining sector;

(vii) establishment of District Mineral Foundation, which will work for the interest and benefit of persons, and areas, affected by mining related operations.

The Central Government has further empowered State Governments in respect of 31 minerals, which have been notified as 'minor' minerals on 10 February 2015, for regulation of grant of mineral concessions and for purposes connected therewith.

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