India urged to reform mineral exploration policies
COAL & MINING

India urged to reform mineral exploration policies

Sumit Deb, the outgoing President of the Federation of Indian Mineral Industries (FIMI), has called for comprehensive reforms to stimulate mineral exploration in India. Speaking at the 57th annual session of FIMI, Deb expressed concerns about the potential lack of interest from international Junior Exploration Companies and domestic exploration firms in participating in the auctioning of exploration licenses under the proposed regulatory framework.

Deb highlighted reservations regarding the amended Mines and Minerals (Development and Regulation) Act, 2023, suggesting that it may not effectively achieve the objective of identifying and securing critical and deep-seated mineral resources essential for India's economic growth.

He emphasised the need to reassess the mineral concession policy and adopt a more favourable framework in alignment with international industry standards. The amended MMDR Act introduces the concept of exploration licenses (EL), which will be granted through auctions for conducting reconnaissance and prospecting for critical and deep-seated minerals.

Deb raised concerns about the proposed mechanism for granting exploration licenses, particularly the concept of reverse bidding, where bidders must specify the percentage revenue share payable by the successful lessee over a 50-year period. He argued that this approach does not align with international best practices observed in mineral-rich countries like Australia, Canada, and South Africa.

According to Deb, the current system lacks incentives for explorers and introduces uncertainty regarding returns on their significant investments. Additionally, even if exploration efforts are successful in identifying resources, the returns would be tied to a percentage of the premium paid by the successful lessee over five decades.

Deb also highlighted the shortcomings of the auction regime introduced for the grant of mineral concessions more than eight years ago. Despite the auctioning of numerous mineral blocks, the mechanism has not yielded the anticipated results in terms of expedited development and resource utilisation. Out of the 155 greenfield non-coal mineral blocks auctioned since the implementation of the MMDR Amendment Act in January 2015, only seven have progressed to the mine development or production stage. Furthermore, prospecting licenses have been issued for just three out of the 79 mineral blocks auctioned for composite licenses.

In summary, Sumit Deb's call for reforms underscores the importance of creating a more attractive and efficient environment for mineral exploration in India, ultimately contributing to the nation's resource security and economic development.

Sumit Deb, the outgoing President of the Federation of Indian Mineral Industries (FIMI), has called for comprehensive reforms to stimulate mineral exploration in India. Speaking at the 57th annual session of FIMI, Deb expressed concerns about the potential lack of interest from international Junior Exploration Companies and domestic exploration firms in participating in the auctioning of exploration licenses under the proposed regulatory framework.Deb highlighted reservations regarding the amended Mines and Minerals (Development and Regulation) Act, 2023, suggesting that it may not effectively achieve the objective of identifying and securing critical and deep-seated mineral resources essential for India's economic growth.He emphasised the need to reassess the mineral concession policy and adopt a more favourable framework in alignment with international industry standards. The amended MMDR Act introduces the concept of exploration licenses (EL), which will be granted through auctions for conducting reconnaissance and prospecting for critical and deep-seated minerals.Deb raised concerns about the proposed mechanism for granting exploration licenses, particularly the concept of reverse bidding, where bidders must specify the percentage revenue share payable by the successful lessee over a 50-year period. He argued that this approach does not align with international best practices observed in mineral-rich countries like Australia, Canada, and South Africa.According to Deb, the current system lacks incentives for explorers and introduces uncertainty regarding returns on their significant investments. Additionally, even if exploration efforts are successful in identifying resources, the returns would be tied to a percentage of the premium paid by the successful lessee over five decades.Deb also highlighted the shortcomings of the auction regime introduced for the grant of mineral concessions more than eight years ago. Despite the auctioning of numerous mineral blocks, the mechanism has not yielded the anticipated results in terms of expedited development and resource utilisation. Out of the 155 greenfield non-coal mineral blocks auctioned since the implementation of the MMDR Amendment Act in January 2015, only seven have progressed to the mine development or production stage. Furthermore, prospecting licenses have been issued for just three out of the 79 mineral blocks auctioned for composite licenses.In summary, Sumit Deb's call for reforms underscores the importance of creating a more attractive and efficient environment for mineral exploration in India, ultimately contributing to the nation's resource security and economic development.

Next Story
Real Estate

Serene, Gardencity to Develop Rs 3 Billion Senior Living Project in Bengaluru

Serene Communities, a leading senior living brand, has partnered with Gardencity Realty to develop a premium senior living community in Budigere, one of Bengaluru’s fastest-growing residential micro-markets. The project will span approximately 300,000 sq ft, with a Gross Development Value of about Rs 3 billion, and will add roughly 250 senior-friendly residences to the city’s growing retirement housing segment.The launch forms part of Serene Communities’ national expansion strategy. The company has 11 new projects under development with a planned investment of Rs 25 billion that will add..

Next Story
Real Estate

Alliance City Developers Marks Major 2025 Milestones in Vile Parle

Alliance City Developers Realtors has announced significant project milestones and expansions in 2025, underscoring what the company terms a transformational year. The developer completed multiple residential projects and launched two premium developments in Vile Parle (East), one of Mumbai’s most sought-after neighbourhoods.During the year, Alliance Legacy in Matunga (East) received its Occupancy Certificate (OC), while Alliance Eternis in Borivali (West) and Alliance Vista in Vile Parle (East) were granted Completion Certificates (CC), marking final project delivery. Alliance Abhimanyu is ..

Next Story
Infrastructure Energy

Moro Hub and PwC Middle East Partner to Accelerate Smart City Solutions

Moro Hub, a subsidiary of Digital DEWA, the digital arm of Dubai Electricity and Water Authority (DEWA), has announced a strategic collaboration with PwC Middle East to advance Smart City, Integrated Command Centre (ICC), Critical Infrastructure Monitoring and Internet of Things (IoT) initiatives across the region. The partnership brings together Moro Hub’s digital infrastructure and IoT capabilities with PwC’s global expertise in digital trust, smart city strategy and cybersecurity to support the UAE’s vision for intelligent and sustainable cities.“Our collaboration with PwC Middle Ea..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App