Professional Documents
Culture Documents
2015
Following the successful initiation of auctioning coal blocks, the Central Government of
India has framed the Mineral (Auction) Rules, 2015 for auctioning other minerals.
However, the unlike coal, the mineral auctions will be conducted under the ambit of
State Governments. Through auctions the State Governments will grant the leases in
two forms Mining Lease where evidence of mineral contents is established and
Composite Lease, a combination of a prospecting licence (PL) and a mining lease (ML),
where there is inadequate evidence of mineral contents.
The rules will be applicable to all minerals, except (a) coal & lignite, (b) atomic minerals
like uranium, lithium, zirconium, titanium etc. and (c) minor minerals like building
stones, gravel, ordinary clay, ordinary sand etc.
Salient Features
Role of Government: The Government will initiate an auction process for grant of a
mining lease with respect to an area within the State. It will issue a notice inviting
tender (NIT) with respect to mineral auction, identify and demarcate the area where a
mining lease is proposed to be granted through auction by using total station and
differential global positioning system. It is also required to classify the area so
demarcated into forests land, land owned by the State Government and land not
owned by the State Government.
The tender document will also include estimated mineral resources and brief
particulars regarding evidence of mineral contents and list of all clearances and
permissions obtained with respect to such area in order to commence mining
operation.
Eligibility Conditions: The eligibility conditions for participating in the auction has
been simplified and categorized according to the Value of Estimated Resources (VER)
which is defined as the product of (i) the estimated quantity of mineral resources for which the mineral block is being
auctioned, expressed in metric tonne; and
(ii) the average price per metric tonne of such mineral as published by Indian Bureau of
Mines for the relevant State for a period of twelve months immediately preceding the
month of computation of the Value of Estimated Resources.
However, it has been stipulated that the minerals extracted under the mining
lease can only be used for the specified end use and cannot be used for
merchant purposes.
Auction Modalities: The auction will be conducted electronically. The bidding will be
done in two rounds. In the first round the bidders will be required to furnish the
technical details and the Initial Offer which has to be equal to or greater than the
reserve price mentioned by the Government.
In the tender document the Government will specify a Reserve Price which will be the
minimum percentage of the value of mineral despatched. The value of mineral
despatched shall be an amount equal to the product of (i) mineral despatched in a month; and (ii) sale price of the mineral (grade-wise and
State-wise) as published by Indian Bureau of Mines for such month of despatch.
The highest initial offer in the first round will be considered as the floor price in the
second round where the technically qualified bidders will be required to bid for the
final offer for the lease area in terms of percentage of the value of mineral dispatched
which the bidder will like to pay to the State Government.
The
Mines
and
Minerals
(Development
and
Rule 4(2) of Chapter II dealing with the prospecting operations states that a prospecting scheme
shall include-(a) baseline information of prevailing environmental conditions before the beginning of
prospecting operations; and(b) steps proposed to be taken for protecting of environment which will
include prevention and control of air and water pollution, progressive reclamation and rehabilitation of
the land disturbed by the prospecting operations, a scheme for the plantation of trees, and such other
measures as may be directed from time to time by the Controller General or the authorized officer for
minimizing the adverse effect of prospecting operations on the environment.
Rule 31 of Chapter V dealing with the protection of environment states that every holder of a
prospecting license or a mining lease shall take all possible precautions for the protection of
environment and control of pollution while conducting prospecting, mining, beneficiation or
metallurgical operations in the area.
Rule 32 of Chapter V dealing with the removal and utilization of top-soil directs that every holder
of a prospecting license or a mining lease shall, wherever top-soil exists and is to be excavated for
prospecting or mining operations, remove it separately. The top-soil so removed shall be utilized for
restoration or rehabilitation of land which is no longer required for prospecting or mining operations or
for stabilizing or landscaping the external dumps. Whenever the top-soil cannot be utilized
concurrently, it shall be stored separately for future use.
Rule 33 of Chapter V related to storage of over burden, waste rock, etc. lays down the following
conditions-
* Every holder of a prospecting license or a mining lease shall take steps so that the overburden,
waste rock, rejects and fines generated during prospecting and mining operations or tailings, slimes and
fines produced during sizing, sorting and beneficiation or metallurgical operations shall be stored in
separate dumps.
* The dumps shall be properly secured to prevent escape of material therefrom in harmful quantities
which may cause degradation of environment and to prevent causation of floods.
* The site for the dumps, tailing or slimes shall be selected as for as possible on impervious ground to
ensure minimum leaching effects due to precipitation.
* Wherever possible, the waste rock, overburden, etc. shall be back-filled into the mine excavations
with a view to restoring the land to its original use as far as possible.
* Wherever back-filling of waste rock in the area excavated during mining operations is not feasible,
the waste dumps shall be suitably terraced and stabilized through vegetation or otherwise.
* The fines, rejects or tailing from mine, beneficiation or metallurgical plants shall be deposited and
disposed in a specially prepared tailings disposal area such that they are not allowed to flow away and
cause land degradation or damage to agriculture field, pollution of surface water bodies and ground water
or cause floods.
Rule 34 of Chapter V dealing with reclamation and rehabilitation of lands states that every holder
of prospecting license or mining lease shall undertake the phased restoration, reclamation, and
rehabilitation of lands affected by prospecting or mining operations and shall complete this work
before the conclusion of such operations and the abandonment of the prospect or mine.
Rule 35 of Chapter V outlining precautions against ground vibrations states that whenever any
damage to public building or monuments is apprehended due to their proximity to the mining lease
area, scientific investigations shall be carried out by the holder of mining lease so as ;to keep the
ground vibrations caused by blasting operations within safe limit.
Rule 36 of Chapter V states that stopping in underground mines shall be so carried out as to keep
surface subsidence under control.
Rule 37 of Chapter V outlines the precautions against air pollution and states that sir pollution due
to fines, dust, smoke or gaseous emissions during prospecting, mining, beneficiation or metallurgical
operations and related activities shall be controlled and kept within Permissible Limits specified under
various environmental laws of the country by the holder of prospecting license or a mining lease.
Rule 38 of Chapter V dealing with discharge of toxic liquid states every holder of prospecting
license or a mining lease shall take all possible precautions to prevent or reduce the discharge of toxic
and objectionable liquid effluents from mine, workshop, beneficiation or metallurgical plants, tailing
ponds, into surface water bodies, ground water aquifer and useable lands, to a minimum. These
effluents shall be suitably treated, if required, to conform to the standards laid down in this regard.
Rule 39 of Chapter V outlines the precautions against noise and states that the noise arising out
of prospecting, mining, beneficiation or metallurgical operations shall bed abated or controlled by the
holder of prospecting license or a mining lease at the source so as to keep it within the permissible
limit.
Rule 40 of Chapter V states that the standards and permissible limits of all the pollutants, toxins
and noise referred to in Rules 37 to 39 shall be those notified by the concerned authorities under the
provisions of the relevant statutes from time to time.Rule 40 of Chapter V dealing with restoration of
flora states that every holder of prospecting license or a mining lease shall carry out prospecting or
mining operations, as the case may be, in such a manner so as to cause least damage to the flora of
the area held under prospecting license or mining lease and the nearby area. Every holder of
prospecting license or mining lease shall-
# Take immediate measures for planting in the same area or any other area selected by the Controller
General or the authorized officer not less than twice the number of trees destroyed by reason of any
prospecting or mining operations;
# Look after them during the subsistence of license/lease after which these trees shall be handed over
to the state Forest Department or any other authority as may be nominated by the Controller General or
the authorized officer; and
# Restore to the extent possible, other flora destroyed by prospecting or mining operations.
Rule 4 through Rule 7 of Chapter II lay down the procedure for the grant of reconnaissance
permit by the State Governments along with the conditions of reconnaissance permit, which include
that the permit holder has to obtain permission to enter forest land for reconnaissance purpose,
under the Forest (Conservation) Act.
Rules 8 to 21 in Chapter III lay down the procedure for the grant/renewal of prospecting license,
conditions of prospecting license, security deposit, etc. The conditions relating to environmental
mitigation measures are laid down in Sub-rule 1(x) of Rule 14. These are as given below-
(a) take immediate measures for planting in the same area or any other area selected by the
Central or State Government not less than twice the number of trees destroyed by reasons of any
prospecting;
(b) look after them during subsistence of the license after which these shall be handed over to the
State Forest Department or any other authority as may be nominated by the Central or State
Government; and
(c) restore to the extent possible, other flora destroyed by prospecting operations.
Sub Rule 2(A)(iii) of Rule 14 imposes restrictions on felling of the trees on unoccupied and
unreserved Government land.
Sub Rule 2(A)(v) of Rule 14 imposes restrictions on operations in reserved or protected forests.
Rules 22 through Rule 46 relate to the grant/renewal of mining lease and related issues. Sub
Rule 5 of Rule 22 outlines that the following details are to be shown on the mine plans-
Rule 27, Sub Rule (1)(s) lays down the conditions that relate to environmental protection in the
mining operations. These are outlined belowThe lessee shall
* Take immediate measures for planting in the same area or any other area selected by the Central
or State Government not less than twice the number of trees destroyed by reasons of any mining
operations;
* Look after them during the subsistence of the lease after which these trees shall be handed over
to the state Forest Department or any other authority nominated by the Central or state Government; and
* Restore, to the extent possible other flora destroyed by the mining operations.
Rule 22, Sub Rule (2) states that a mining lease may contain such other conditions as the State
Government may deem necessary in regard of the following, namely
* The compensation for damage to the land covered by the lease
* The felling of trees
* The entering or working in a reserved or protected forest.