Mining Act tweak planned to push rare, critical mineral exploration

26 Apr 2023 CW Team

According to the official, the amendment proposes to include in the law the provision for an exploration licence, which will be granted through an auction for reconnaissance and prospecting operations. According to the official, the licence will also be granted only for deep-seated and critical minerals that will be specified in a new schedule to the Act.

According to the proposed amendment, it will pave the way for mineral concessions to be granted for the full range of exploration operations, from reconnaissance to prospecting. According to the proposed changes, companies will be able to suggest areas for exploration and, eventually, mining in India. This is a departure from the usual practise of the government defining blocks or mines for auction.

Once suggested for exploration, the area will require state government approval before being awarded for mining operations. The proposed changes are likely to encourage private sector participation in all aspects of mineral exploration, with a particular emphasis on precious and critical minerals. They will grant exploration rights to junior mining companies based on available baseline survey data.

These companies begin with reconnaissance and work their way up to the level required to begin mining operations. According to the changes, companies will also be able to transfer mineral concessions in whole or in part during the exploration period or at the conclusion of exploration. This will be the fifth amendment to the Mines and Minerals (Development and Regulation) Act since 2014, with previous changes mandating e-auctions for mineral resources and allowing mining leases that were about to expire to be extended.

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The government intends to amend the Mines and Minerals (Development and Regulation) Act of 1957 in order to promote the exploration of deep-seated minerals such as gold, silver, copper, and zinc. The cabinet is likely to take up the amendment bill soon, a senior government official predicted. According to the official, the amendment proposes to include in the law the provision for an exploration licence, which will be granted through an auction for reconnaissance and prospecting operations. According to the official, the licence will also be granted only for deep-seated and critical minerals that will be specified in a new schedule to the Act. According to the proposed amendment, it will pave the way for mineral concessions to be granted for the full range of exploration operations, from reconnaissance to prospecting. According to the proposed changes, companies will be able to suggest areas for exploration and, eventually, mining in India. This is a departure from the usual practise of the government defining blocks or mines for auction. Once suggested for exploration, the area will require state government approval before being awarded for mining operations. The proposed changes are likely to encourage private sector participation in all aspects of mineral exploration, with a particular emphasis on precious and critical minerals. They will grant exploration rights to junior mining companies based on available baseline survey data. These companies begin with reconnaissance and work their way up to the level required to begin mining operations. According to the changes, companies will also be able to transfer mineral concessions in whole or in part during the exploration period or at the conclusion of exploration. This will be the fifth amendment to the Mines and Minerals (Development and Regulation) Act since 2014, with previous changes mandating e-auctions for mineral resources and allowing mining leases that were about to expire to be extended. Also Read CIDCO’s NAINA project set to gain pace as tenders floated Merger of HDFC Investments with HDFC Bank