Proposal to end iron ore leases of “no-output” mines
COAL & MINING

Proposal to end iron ore leases of “no-output” mines

The Ministry of Mines (MoM) has proposed to terminate the iron ore leases of those working mines that have not started production even after a lapse of 7-8 months of auction and have not maintained minimum dispatch for three consecutive quarters. The ministry proposed to do so through the amendment of certain mining rules and has invited comments from the stakeholders on the same.

The mines ministry said it has prepared the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2021, seeking to amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016.

It added that the draft amendment rules had been made available as part of the pre-legislative consultation policy. Comments and suggestions have been invited from the mining industry, the general public, governments of states and union territories, stakeholders, industry associations, and other persons and entities concerned about the draft amendment rules.

Several successful bidders of such working mines whose previous mining leases expired in March 2020 have not started production even after a lapse of 7-8 months of auction and execution of mining leases in their favour.

Further, many successful bidders who have started production have not maintained the production and dispatch quantity up to the level required under Rule 12A of the Mineral Concession Rules (MCR), the ministry said.

The ministry said that it has been proposed to strengthen the norms of minimum production and dispatch through amendment of Rule 12A of the MCR Rules, 1960, to ensure sustained supply of minerals in the market in the future.

It added that the Rule 12A has been proposed to be amended to mandate a successful bidder to make a payment equivalent to the revenue share and other statutory levies that would have been payable at the prescribed level of minimum production/dispatch targets quarterly.

The ministry said termination of leases has also been proposed to be provided in the rules in case of failure to maintain prescribed production level for three consecutive quarters.

The decline in production and dispatch of important minerals such as iron ore not only leads to a spike in its market prices but adversely affects the manufacturing of iron and steel in the country too.

Also read: Amendments to mining laws get cabinet nod

Image Source

The Ministry of Mines (MoM) has proposed to terminate the iron ore leases of those working mines that have not started production even after a lapse of 7-8 months of auction and have not maintained minimum dispatch for three consecutive quarters. The ministry proposed to do so through the amendment of certain mining rules and has invited comments from the stakeholders on the same. The mines ministry said it has prepared the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2021, seeking to amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016. It added that the draft amendment rules had been made available as part of the pre-legislative consultation policy. Comments and suggestions have been invited from the mining industry, the general public, governments of states and union territories, stakeholders, industry associations, and other persons and entities concerned about the draft amendment rules. Several successful bidders of such working mines whose previous mining leases expired in March 2020 have not started production even after a lapse of 7-8 months of auction and execution of mining leases in their favour. Further, many successful bidders who have started production have not maintained the production and dispatch quantity up to the level required under Rule 12A of the Mineral Concession Rules (MCR), the ministry said. The ministry said that it has been proposed to strengthen the norms of minimum production and dispatch through amendment of Rule 12A of the MCR Rules, 1960, to ensure sustained supply of minerals in the market in the future. It added that the Rule 12A has been proposed to be amended to mandate a successful bidder to make a payment equivalent to the revenue share and other statutory levies that would have been payable at the prescribed level of minimum production/dispatch targets quarterly. The ministry said termination of leases has also been proposed to be provided in the rules in case of failure to maintain prescribed production level for three consecutive quarters. The decline in production and dispatch of important minerals such as iron ore not only leads to a spike in its market prices but adversely affects the manufacturing of iron and steel in the country too. Also read: Amendments to mining laws get cabinet nodImage Source

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?