Parliament Passes Mines and Minerals (Development and Regulation) Amendment Bill, 2023
Days after it was cleared by Lok Sabha, the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 passed by Rajya Sabha on Wednesday.According to the text of the Bill, “One of the major reforms proposed in the Bill is to introduce an exploration licence for deep-seated and critical minerals.”The exploration licence granted through auction will allow the licencee from...
Days after it was cleared by Lok Sabha, the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 passed by Rajya Sabha on Wednesday.
According to the text of the Bill, “One of the major reforms proposed in the Bill is to introduce an exploration licence for deep-seated and critical minerals.”
The exploration licence granted through auction will allow the licencee from private sectors to undertake “reconnaissance” and prospecting operations for critical and deep-seated minerals mentioned in the newly proposed Seventh Schedule to the Act, containing 29 minerals.
“Reconnaissance operations” are defined as operations undertaken for preliminary prospecting and includes: (i) aerial surveys, (ii) geophysical, and (iii) geochemical surveys. It also includes geological mapping.
The list of minerals includes Diamond, Gold, Silver, Graphite and Zinc bearing minerals etc. The blocks explored by the exploration licence holder would be auctioned for mining lease within the prescribed timeline, “which will fetch better revenue to the State Governments”, as per the objective stated in the Bill.
The exploration lincence will be granted by the state government through auction by method of competitive bidding, including e-auction. The terms and rules for the same will be prescribed by the Central Government.
According to the Bill, the exploration licence shall be granted for a period of five years from the date of execution of the exploration licence. The Bill adds that if, after three years from the date of execution of exploration licence, but before the date of its expiry, the holder of the exploration licence makes an application for the extension of the period of that licence, the State Government may, on being satisfied that within the period of five years, it shall not be possible for the holder of such licence to complete the reconnaissance or prospecting operations for reasons beyond his control, extend the said period to a further period not exceeding two years.
After the first three years, the licencee will be allowed to retain up to 25% of the originally authorised area.
Another important amendment done in the Act is the insertion of Section 11D, the Central Government can grant mining lease or composite licence through auction by competitive bidding, in any area in respect of any mineral specified in newly added Part-D, “Critical and Strategic Minerals.”
The 24 Critical and Strategic Mineral mentioned in the list includes, Graphite, Potash, Beryl and other beryllium bearing minerals.