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National Mineral
Policy 1993
Minerals are valuable
natural resources being finite and non-renewable. They constitute
the vital raw materials for many basic industries and are
major resources for development. Management of mineral resources
has therefore, to be closely integrated with the overall strategy
of development; and exploitation of minerals is to be guided by
long-term national goals and perspectives. In this context the
need has been felt to spell out in a statement the different elements
of the policy; which has evolved over the years, relating to development
of our mineral resources and in regard to areas of concern which
have emerged in recent years. India is not endowed with all the
requisite mineral resources. It is, therefore, imperative to achieve
the best use of available mineral resources through scientific
methods of mining, benefaction and economic utilisation. Simultaneously,
it is essential to keep in view the present and future needs of
defense and development of the country and strive to ensure indigenous
availability of basic and strategic minerals to avoid disruption
of core industrial production in terms of international strife.
These aspects constitute the essentials of National Mineral Policy,
which has evolved over the years. The policy also emphasises certain
new aspects and elements like:
- mineral exploration in the sea-bed,
- development of proper inventory,
- proper linkage between exploitation
of minerals and development of mineral industry,
- preference to members of the scheduled
tribes for development of small deposits in scheduled areas,
- protection of forest, environment
and ecology from the adverse effects of mining,
- enforcement of mining plan for
adoption of proper mining methods
- optimum utilisation of minerals,
export of minerals and
- export of minerals in value added
form and recycling of metallic scrap and mineral waste.
Regulation of
Minerals
Management of mineral
resources is the responsibility of the Central Government and
the State Governments in terms of the Seventh Schedule of the
Constitution of India. The Mines and Minerals (Regulation and
Development) Act, 1957 lays down the legal framework for the regulation
of mines and development of all minerals other than petroleum
and natural gas. The central government has framed the Mineral
Concession Rules for regulating grants of prospective licences
and mining leases in respect of all minerals other than atomic
minerals and minor minerals. The State Governments have framed
the rules in regard to minor minerals. The Central Government
has also framed the Mineral Conservation and Development Rules
for conservation and systematic development of minerals.
These are applicable to all minerals
except coal, atomic minerals and
minor minerals. The Central Government in
consultation with the state governments
shall continue to formulate the
legal measures for the regulation
of mines. The development of
mineral resources would ensure basic
uniformity in mineral administration
and to ensure that the development
of mineral resources keep pace and
is in consonance with the national
policy goals. The regulation of mines
and development of mineral resources
in accordance with the national goals
and priorities shall be the responsibility
of the Central and state Governments.
Objectives
The basic objectives
of the mineral policy in respect
of minerals shall be as follows:
- to explore for
identification of mineral wealth
in land and in off-shore areas;
- to develop mineral resources
taking into account the national
and strategic considerations and to
ensure their adequate supply and best
use keeping in view the present
needs and future requirements;
- to provide necessary
linkages for smooth and uninterrupted
development of mineral industry to
meet the needs of the country;
- to promote research
and development in minerals,
- to ensure establishment
of appropriate educational and training
facilities for human resources development
to meet the manpower requirements
of the mineral industry;
- to minimise adverse
effects of mineral development on
environment and ecology through
appropriate protective measures and tcli·n~ure
conduct of mining operations with
due regard to safety and health
clt,lll consumed.
Role of the state
in mineral development
The role to be played
by the Central and state governments in regard to mineral development
has been extensively dealt in the Mines and Minerals (Regulation
and Development) Act, 1957 and rules made under the Act by the
Central Government and the State Governments in their respective
domains. The provisions of the Act and the Rules will be reviewed
from time to time and harmonised with the policies governing industrial
and socio-economic developments in the country.
Survey and Exploration
The Geological Survey
of India is the principal agency for geological mapping and regional
mineral resources assessment of the country and its exclusive
economic zone and shall be responsible for drawing up action oriented
plans in close cooperation with all other agencies engaged in
this task. The Department of Ocean Development and its agencies
are entrusted with the task of sea-bed exploration, exploitation,
mining and processing. These call for a multi-disciplinary approach.
Detailed survey and exploration on land is done by Mineral Exploration
Corporation, Directorates of Mining and Geology of the State Governments
and various Central and state public sector organisations. The
initiative and cooperation of the private sector will also be
drawn upon as required.
In conducting exploration
for minerals special attention will be given to the development
of strategic minerals through systematic investigation of various
potential sources of their supply.
Particular attention
will be given to the survey and exploration of minerals in which
the country has poor or just adequate resource base. Exploration
for noble metals and minerals for electronic and other high-tech
industries will receive due attention.
Coordination of the
exploration work is at present being done by the Central Programming
Board of the Geological Survey of India. Policy parameters are
generally discussed in the State Ministers Conference, Planning
Commission and the Mineral Advisory Council. The existing arrangement
shall be reviewed periodically with a view to bringing about co-ordination
among the survey and exploration agencies and to ensure planned
mineral development.
National Inventory
of Mineral Resources
The National inventory
of mineral resources including those of ocean bed will be based
on a comprehensive review of exploration data. These along with
the relevant geological data and mineral maps shall be maintained
and up-dated from time to time by the Indian Bureau of Mines as
per the uses and specifications in industrial and other applications.
The Indian bureau of Mines shall continue to compile and provide
access to the latest information in respect of mineral resources
in the country available for exploitation and endeavour to convert
the physical inventory of mineral resources into resources inventory.
A periodical review of the system of classification of inventory
of mineral resource shall be carried out incorporating the changes
in their industrial and other applications. The grades of various
minerals shall be standardised with reference to end use applications
and periodically reviewed.
Conservation and
mineral development
The Strategy for
development of any mineral should naturally keep in view its ultimate
end uses. The guiding principle in the strategy of development
of any mineral or mineral deposit at any location shall ordinarily
be the economic cost. The state may, however, undertake the development
of any mineral or mineral deposit in public interest to ensure
unhindered availability of mineral raw material for the realisation
of national goals.
As minerals
are exhaustible and non-renewable
resources, their exploitation has to
be done keeping in view not
only the present but the long-term
needs. The strategy for exploitation
and development of each mineral
shall be formulated and reviewed periodically
on the basis of available resources.
A thrust is to be given to
exploitation of mineral resources in
which the country is well endowed
so that industries based on these
resources can come up to meet
the needs of industrial materials
for which we have now to depend
on external sources. An optimal
depletion rate shall be worked
out in respect of each mineral
keeping in view the domestic and
global resource position, the international
market situation and the needs
for stable and sustained economic
development.
The best use of available
mineral resources shall be ensured by adopting, during mining
operation, effective measures for conservation and beneficiation,
recovery of associated minerals, and later by efficient processing
of minerals. There shall be adequate and effective legal and institutional
framework and commitment to prevent sub-optimal and unscientific
mining. Conservation of minerals shall be construed not in the
restrictive sense of abstinence from consumption or preservation
for future use, but as a positive concept leading to augmentation
of resource base through improvement in mining methods, beneficiation
and utilisation of low grade ore and rejects, recovery of associated
minerals, reduction in the requirements of mineral per unit of
material output.
Scientific methods
of exploitation
Mine development
and mineral conservation as governed by the rules and regulations
will be on sound scientific basis, with the regulatory agencies
closely interacting with R&D organisation, scientific and
professional bodies. Conditions of mining leases regarding tenure,
size, shape, disposition with reference to geological boundaries
and other mining conditions shall be such as to favourable predispose
the leased areas to systematic and complete extraction of minerals.
Productivity norms
Studies for
fixation of productivity norms and
goals will be taken up to promote
productivity of men, machines and
to improve the consumption of
fuel and materials. Regular maintenance,
replacement and upgradation of mining
machinery and equipment shall be
undertaken.
Mineral processing
and beneficiation
Research organisations,
including the National Mineral Processing
Laboratories of the Indian Bureau
of Mines should be strengthened
for development of processes for beneficiation,
and mineral and elemental analysis
of ores and ore dressing products.
There shall be cooperation between
and coordination among all organisations
in public and private sector
engaged in this task.
Recycling of metallic
scrap and mineral wastes
As an important
conservation measure, recycling of
metallic scrap like steel, copper,
aluminum, zinc, lead etc. shall
be encouraged and facilitated by fixation
of appropriate standards for classification
and grading of scrap and adoption
of fiscal measures. Similarly, utilisation
of low- grade minerals, mineral
wastes and rejects shall also
be encouraged through appropriate
incentives.
Mining equipment
and machinery
Indigenous industry
for manufacture of mining equipment and machinery shall be strengthened.
Wherever necessary, imports of machinery and equipment may be
permitted to improve the efficiency, productivity and economics
of mining operations and safety and health of persons in the mines
and the surrounding areas.
Manpower Development
Existing facilities
for basic and specialised training shall be constantly reviewed
and upgraded from time to time to ensure that adequately trained
manpower at all levels is available for the development of mines
and mineral industries. In order to improve the competitive edge
of the national mining industry, emphasis shall be laid on mechanisation,
computerisation and automation of the existing and new mining
units. The manpower development programme shall be suitably reoriented
for the purpose.
Linkages
Development of mineral
resources and their utilisation in the end products have distinct
stages, which are closely interlinked. Failure in the performance
at any one stage eventually affects both the mining and the mineral
industry and the units dependent on it. The mineral processing
unit should not only get an assured supply of the mineral raw
material but should also have close links with the production
and marketing agencies of the mineral based end products.
Dissemination
of information on technological changes
Information about
technological changes leading to substitution the mineral
or the products made out of such a mineral shall be compiled and
disseminated from time to time to enable the mineral industry
to adapt itself. A close linkage shall be established between
the changes taking place in material science, product character
and the availability of mineral resources.
Infrastructure
facilities and regional development
Mineral deposits
generally occur in remote and backward areas with poor infrastructure
facilities, which often inhibit their optimum development. Mineral
bearing areas are also often inhabited by tribal population and
exploitation of mineral resources has not always contributed adequately
to their economic development. Contribution of mineral development
to overall regional development has also not always been commensurate
with the huge investment in large mining projects. A major thrust
needs to be given to development of infrastructure facilities
in mineral bearing areas following an integrated approach for
mineral development, regional development and also social and
economic upliftment of the local population including tribal population.
Financial Support
for Mining
Mining is an eligible
activity for obtaining financial support from financial institutions.
So far mining projects which have a substantial component of mining
machinery, equipment and buildings have been financed. Steps shall
be taken to facilitate the financing of mine development and also
of exploration integral to the mining project. Induction of foreign
technology and foreign participation in exploration and mining
for high value and scarce minerals shall be pursued. Foreign equity
investment in joint ventures in mining promoted by Indian companies
would be encouraged. While foreign investment in equity would
normally be limited to 50 per cent, this limitation would not
apply to captive mines of any mineral processing industry. Enhanced
equity holding can also be considered on case to case basis. In
respect of joint venture mining projects of minerals and metals
in which the country is deficient or does not have exportable
surplus, a stipulated share of market before exports from such
projects are allowed. In case of ores whose known reserves are
not abundant, preference will be given to those who propose to
take up their mining for captive use.
Small Deposits
Small and isolated
deposits of minerals are scattered all over the country. These
often lend themselves to economic exploitation through small-scale
mining. With modest demand on capital expenditure and short lead-time,
they also provide employment opportunities for the local population.
Efforts will be made to promote small-scale mining of small deposits
in a scientific and efficient manner while safeguarding vital
environmental and ecological imperatives. In grant of mineral
concessions for small deposits in scheduled areas, preference
shall be given to the scheduled tribes.
Mineral development
and protection of environment
Extraction and development
of minerals are closely interlinked with other natural resources
like land, water, air and forest. The areas in which minerals
occur often have other resources presenting a choice of utilisation
of the resources. Some such areas are ecologically fragile and
some are biologically rich. It is necessary to take comprehensive
view to facilitate the choice or order of land use keeping in
view the needs of development as well as needs of protecting the
forests, environment and ecology. Both aspects have to be properly
coordinated to facilitate and ensure a sustainable development
of mineral resources in harmony with environment.
Mining activity often
leads to environmental problems like land degradation particularly
in open-cast mining, land subsidence in underground mining, deforestation,
atmospheric pollution, pollution of rivers and streams, disposal
of solid wastes, etc. affecting the ecological balance of the
area. Open-cast mining in areas with actual forest covers leads
to deforestation. Prevention and mitigation of adverse environmental
effects due to mining and processing of minerals and repairing
and revegetation of the affected forest area and land covered
by trees in accordance with the prescribed norms and established
forestry practices shall form an integral part of mine development
strategy in every instance. Mining operations shall not ordinarily
be taken up in identified ecologically fragile and biologically
rich areas. Strip mining in forest areas should as far as possible
be avoided and it should be permitted only when accompanied by
a comprehensive time bound reclamation programme. No mining lease
would be granted to any party, private or public, without a proper
mining plan including the environmental management plan approved
and enforced by statutory authorities. The environmental management
plan should adequately provide for controlling the environ- mental
damage, restoration of mined areas and for planting of trees according
to the prescribed norms. As far as possible, reclamation and afforestation
will proceed concurrently with mineral extraction.
Efforts would be
made to convert old disused mining sites into forests and other
appropriate forms of land use.
Mines Safety
Mining operations
are hazardous in nature. Accidents happen and often result in
the loss of life or limb of persons engaged in it. Efforts must
be directed towards the development and adoption of mining methods,
which would increase the safety of workers and reduce the accidents.
Towards this end, participation and cooperation of mine workers
shall be secured. Steps will also be taken to minimise the adverse
impact of mining on the health of workers and the surrounding
population.
Rehabilitation
of mines closures
Mineral deposits
being exhaustible, once the process of economical extraction of
a mine is complete, there is need for its closure. Especially
where the mining activities have been spread over a few decades,
mining communities get established and closure of the mine means
not only loss of jobs but also disruption of community life. Whenever
mine closure becomes necessary, it should be orderly and systematic
and so planned as to help the workers and the dependent communities
rehabilitate themselves without undue hardship.
Rehabilitation
of Displaced Persons
Mining operations
often involve acquisition of land held by individuals including
those belonging to the weaker sections. While compensation is
generally paid to the owner for the acquisition of his land, efforts
shall be made to ensure suitable rehabilitation of affected persons
especially those belonging to the weaker sections that are likely
to be deprived of their means of livelihood as a result of such
acquisition.
Foreign trade
Minerals continue
to be an important source of foreign exchange earnings. The policy
of export shall keep in view the mineral inventory position and
the long-term needs of the country. Efforts shall be made to export
minerals in value added form as far as possible. Whenever it becomes
necessary to export minerals and ores the strategy shall be to
make such exports competitive. The indigenous mineral industry
shall be attuned to the international economic situation in order
to derive maximum advantage from foreign trade by carefully anticipating
technology and demand changes in the international market for
minerals and metals. The imports of mineral-based materials shall
be coordinated as far as possible with the indigenous development
of mineral based industries. Areas of cooperation with countries
with complementary resource b shall be developed for mutual advantage.
The basic approach shall to make available to the mineral-ased
materials to the domestic at reasonable prices.
Fiscal aspects
Fiscal measures should
be designed to promote mineral exploration and development including
beneficiation. Minerals being non-renewable their prices should
reflect their value. In the context of the chi mineral scenario
and the economies of mineral development and products, at both
the national and international levels, necessary fiscal changes
will be made from time to time consistent with the general tax
structure.
Research and Development
Research and development
in the mineral sector has to cover the entire gamut of activities
from geological survey, exploration, mining, beneficiation,
extraction of minerals to development of materials. Efforts would
be directed to the development of new technologies for conversion
of existing mineral resources into viable economic resources.
Appropriate technologies shall be developed to enable indigenous
industries to utilise the mineral resources with which the country
is abundantly endowed and as substitutes for minerals whose reserves
are poor. R&D efforts shall be directed to find new and
alternative uses for minerals whose traditional demand is on the
wane. Indigenous technology has to be upgraded through research
and appropriate absorption and adaptation of technological innovations
abroad. Research and development efforts shall be made to improve
efficiency in process, operations and also the recovery of by-products
and reduction in specification and consumption norms. Efforts
will also be directed to evolve low capital and energy saving
processing systems.
Research in Mining
Methods
Mining methods determine
the safety, economy, speed and the percentage of extraction of
the ore reserved from a mine. Research and development thrust
shall be directed specially in the areas of rock mechanics, ground
control, mine, design engineering, equipment deployment/ maintenance,
energy conservation, environmental protection, safety of operations
and human engineering.
Development of
automated equipment
To meet the objective
of safety and economic production attention will be given to the
development of robotics, automated equipment and system for mining,
especially for deep mining and transportation to surface.
India is a pioneer
investor and has been allocated a mine site of 100,000 square
kilometres in the Indian Ocean for exclusive survey and exploration.
Deep ocean resources represent an exceptionally large and potentially
important mineral resource. Integrated systems for exploration,
exploitation, mining and processing of these resources shall be
expedited with the development/acquisition of necessary technologies.
Appropriate mechanism for coordinating the survey and exploration
of Deep Sea Bed Area will be established by the Department of
Ocean Development.
Production of
materials of high purity
Research will be
directed towards raw materials required for production of materials
of high purity for use in advanced technology applications such
as semi-conductors, photovoltaics, lasers, special sewers, high
temperature new ceramics, hard and high temperature materials,
superconductors, insulators, very thin films, glasses and Liquid
crystals and metal and mineral fibres.
Research in beneficiation
and agglomeration
Attention will be
given to beneficiation and agglomeration techniques to bring lower
grades and finer size material into use.
Utilisation of
Associated Minerals
Research and development
shall be oriented to ensure maximum economic recovery of the associated
minerals and valuable metals.
Co-ordination
of research organisations
Research and development
activities in the mineral sector are carried out in the national
laboratories, educational institutions and R&D units of public
and private sector enterprises. Pooling of resources and experience
available in the various R&D organisations is imperative to
meet the challenges and to fulfill the tasks ahead in the mineral
sector. Linkages and interaction between the various institutions
engaged in R&D in the mineral sector shall be strengthened
to derive the maximum benefit. Interchange of scientists between
institutions shall be encouraged to accelerate the pace of interaction.
It shall also be ensured that the research findings are made available
to users expeditiously.
Conclusions
Mineral wealth is
finite and non-renewable. It is a major resource for development.
The management of this precious resource and its optimal and economical
use are matters of national importance. The success of the national
mineral policy will depend largely on a national consensus to
fulfill its underlying principles and objectives.
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