The Mines and Minerals (Development and Regulation) Amendment Bill, 2023 |The LexSphere Library

SECTION Section 1

Untitled Section

•1

•Short title and

commencement.

•THE MINES AND MINERALS (DEVELOPMENT AND REGULATION)

•AMENDMENT BILL, 2023

•A

•BILL

•further to amend the Mines and Minerals (Development and Regulation) Act, 1957.

•BE it enacted by Parliament in the Seventy-fourth Year of the Republic of India as

•follows:—

SECTION Section 10

Untitled Section

•Chapter III.

•67 of 1957.

•Amendment

•of section 4A.

•5

•10

•15

•20

•25

•30

•35

•40

•3

SECTION Section 100

Untitled Section

•CHAPTER III

•P

•ROCEDURE FOR OBTAINING PROSPECTING LICENCES OR MINING LEASES, IN RESPECT OF LAND IN

•WHICH THE MINERALS VEST IN THE GOVERNMENT

SECTION Section 101

Untitled Section

10.(1) * * * * *

(4)Notwithstanding anything contained in this section, no person shall be eligible to

•make an application under this section unless—

(a)he has been selected in accordance with the procedure specified under

•sections 10B, 11, 11A or the rules made under section 11B;

•* * * * *

SECTION Section 102

Untitled Section

12.(1) The State Government shall cause to be maintained in the prescribed form—

•* * * * *

(e)a register of applications for reconnaissance permits; and

•* * * * *

12A.(1) * * * * *

(2)A holder of a mining lease or a composite licence granted in accordance with the

•procedure laid down in this Act may, with the previous approval of the State Government,

•transfer his mining lease or composite licence, as the case may be, in such manner as may be

•prescribed by the Central Government, to any person eligible to hold such mining lease or

•composite licence in accordance with the provisions of this Act and the rules made thereunder:

•Provided that the transferee of mining lease shall not be required to pay the amount or

•transfer charges referred to in sub-section (6), as it stood prior to the commencement of the

•Mines and Minerals (Development and Regulation) Amendment Act, 2021, after such

•commencement but no refund shall be made of the charges already paid.

•Restrictions

•on the grant

•of

•prospecting

•licences or

•mining leases.

•Maximum

•area for which

•a prospecting

•licence or

•mining lease

•may be

granted.

•Application

•for

•prospecting

•licences or

•mining leases.

•Registers of

•prospecting

•licences and

•mining leases.

•Transfer of

•mineral

concessions.

•16 of 2021.

•15

(3)If the State Government does not convey its previous approval for transfer of such

•mining lease or composite licence, as the case may be, within a period of ninety days from the

•date of receiving such notice, it shall be construed that the State Government has no objection

•to such transfer:

•Provided that the holder of the original mining lease or composite licence shall intimate

•to the State Government the consideration payable by the successor-in-interest for the

•transfer, including the consideration in respect of the prospecting operations already

•undertaken and the reports and data generated during the operations.

(4)No such transfer of a mining lease or composite licence, referred to in

•sub-section (2), shall take place if the State Government, within the notice period and for

•reasons to be communicated in writing, disapproves the transfer on the ground that the

•transferee is not eligible as per the provisions of this Act:

•Provided that no such transfer of a mining lease or of a composite licence, shall be

•made in contravention of any condition subject to which the mining lease or the composite

•licence was granted.

(5)All transfers effected under this section shall be subject to the condition that the

•transferee has accepted all the conditions and liabilities under any law for the time being in

•force which the transferor was subject to in respect of such a mining lease or composite

•licence, as the case may be.

•* * * * *

SECTION Section 103

Untitled Section

•CHAPTER IV

•R

•ULES FOR REGULATING THE GRANT OF PROSPECTING LICENCES AND MINING LEASES

SECTION Section 104

Untitled Section

13.(1) * * * * *

(2)In particular, and without prejudice to the generality of the foregoing power, such

•rules may provide for all or any of the following matters, namely:—

•* * * * *

•(ac) the level of exploration in respect of deep-seated minerals or such minerals

•and the procedure, including the bidding parameters for selection of the holders under

•the proviso to sub-section (2) of section 10C;

•* * * * *

•(qqg) the time limits for various stages in processing applications for grant of

•mining lease or composite licence under sections 10B, 11, 11A, 11B, and section 17A,

•and their renewals;

•* * * * *

SECTION Section 105

Untitled Section

•CHAPTER V

•S

•PECIAL POWERS OF CENTRAL GOVERNMENT TO UNDERTAKE PROSPECTING OR MINING OPERATIONS

•IN CERTAIN CASES

•* * * * *

17A.(1) The Central Government, with a view to conserving any mineral and after

•consultation with the State Government, may reserve any area not already held under any

•prospecting licence or mining lease and, where it proposes to do so, it shall, by notification

•in the Official Gazette, specify the boundaries of such area and the mineral or minerals in

•respect of which such area will be reserved.

•(1A) The Central Government may in consultation with the State Government, reserve

•any area not already held under any prospecting licence or mining lease, for undertaking

•prospecting or mining operations through a Government company or corporation owned or

•controlled by it, and where it proposes to do so, it shall, by notification in the Official Gazette,

•specify the boundaries of such area and the mineral or minerals in respect of which such area

•will be reserved.

•Power of

•Central

•Government

•to make rules

•in respect of

minerals.

•Reservation

•of areas for

•purposes of

conservation.

•16

(2)The State Government may, with the approval of the Central Government, reserve

•any area not already held under any prospecting licence or mining lease, for undertaking

•prospecting or mining operations through a Government company or corporation owned or

•controlled by it and where it proposes to do so, it shall, by notification in the Official Gazette,

•specify the boundaries of such area and the mineral or minerals in respect of which such

•areas will be reserved.

•* * * * *

SECTION Section 106

Untitled Section

•CHAPTER VI

•D

•EVELOPMENT OF MINERALS

•* * * * *

18A.(1) Where the Central Government is of opinion that for the conservation and

•development of minerals in India, it is necessary to collect as precise information as possible

•with regard to any mineral available in or under any land in relation to which any prospecting

•licence or mining lease has been granted, whether by the State Government or by any other

•person, the Central Government may authorise the Geological Survey of India, or such other

•authority or agency as it may specify in this behalf, to carry out such detailed investigations

•for the purpose of obtaining such information as may be necessary:

•Provided that in the cases of prospecting licences or mining leases granted by a State

•Government, no such authorisation shall be made except after consultation with the State

Government.

•* * * * *

SECTION Section 107

Untitled Section

•CHAPTER VII

•M

•ISCELLANEOUS

SECTION Section 108

Untitled Section

19.* * * * *

•* * * * *

SECTION Section 109

Untitled Section

21.(1) * * * * *

Explanation.—On and from the date of commencement of the Mines and Minerals

•(Development and Regulation) Amendment Act, 2021, the expression "raising, transporting

•or causing to raise or transport any mineral without any lawful authority" occurring in this

•section, shall mean raising, transporting or causing to raise or transport any mineral by a

•person without prospecting licence, mining lease or composite licence or in contravention of

•the rules made under section 23C.

•* * * * *

24A.(1) * * * * *

•Power to

•authorise

•Geological

•Survey of

•India, etc., to

•make

investigation.

•Prospecting

•licences and

•mining leases

•to be void if

•in

•contravention

•of Act.

Penalties.

•Rights and

•liabilities of a

•holder of

•prospecting

•licence or

•mining lease.

•17

•THE FIRST SCHEDULE

•[See sections 4(3), 5(1), 7(2) and 8(1), 8A(1), 10A, 10B(1), 10C(1), 11(1), 11B, 11C, 12A(1),

•and 17A(2A)

•SPECIFIED MINERALS

•* * * * *

•P ART B

•Atomic minerals

SECTION Section 11

Untitled Section

8.In section 10 of the principal Act,—

(i)for the marginal heading, the following marginal heading shall be substituted,

•namely:—

•"Application for mineral concession.";

•(ii) in sub-section (4), in clause (a), for the words, figures and letters "sections

•10B, 11, 11A or the rules made under section 11B", the words, figures and letters

•"sections 10B, 10BA, 11, 11A, 11B or 11D" shall be substituted.

SECTION Section 110

Untitled Section

1.Beryl and other beryllium-bearing minerals.

SECTION Section 111

Untitled Section

2.Lithium-bearing minerals.

SECTION Section 112

Untitled Section

3.Minerals of the "rare earths" group containing Uranium and Thorium.

SECTION Section 113

Untitled Section

4.Niobium-bearing minerals.

5.Phosphorites and other phosphatic ores containing Uranium.

6.Pitchblende and other Uranium ores.

SECTION Section 114

Untitled Section

7.Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).

8.Tantallium-bearing minerals.

9.Uraniferousallanite, monazite and other thorium minerals.

10.Uranium bearing tailings left over from ores after extraction of copper and gold,

•ilmenite and other titanium ores.

SECTION Section 115

Untitled Section

11.Zirconium-bearing minerals and ores including Zircon.

SECTION Section 116

Untitled Section

12.Beach sand minerals, that is, economic heavy minerals found in the teri or beach

•sands, which include ilmenite, rutile, leucoxene, garnet, monazite, zircon and

sillimanite.

•LOK SABHA

•————

•A

•BILL

•further to amend the Mines and Minerals (Development and Regulation) Act, 1957.

•————

•(Shri Pralhad Joshi, Minister of Coal and Mines )

•MGIPMRND—158LS(S3)—21-07-2023.

SECTION Section 12

Untitled Section

9.After section 10B of the principal Act, the following section shall be inserted,

•namely:—

•"10BA. (1) The provisions of this section shall not apply to—

(a)the areas covered under section 17A;

(b)the minerals specified in Part A of the First Schedule;

(c)the minerals specified in Part B of the First Schedule where the grade of

•atomic mineral is equal to or greater than such threshold value as may be notified

•by the Central Government from time to time;

(d)any land in respect of which the minerals do not vest in the Government.

(2)Notwithstanding anything contained in sections 10B and 11, an exploration

•licence may be granted in any area by the State Government for the purpose of

•undertaking reconnaissance or prospecting operations or both in respect of any mineral

•specified in the Seventh Schedule.

(3)The Central Government may, by notification in the Official Gazette, and for

•reasons to be recorded in writing, amend the Seventh Schedule so as to modify the

•entries therein with effect from such date as may be specified in the said notification.

(4)The State Government shall, after obtaining the previous approval of the

•Central Government, and in such manner as may be prescribed by the Central

•Government, notify the areas in which exploration licence shall be granted, subject to

•such terms and conditions as may be specified in the notification.

(5)The Central Government may require the State Government to notify the area

•for grant of exploration licence within such period as may be fixed in consultation with

•the State Government, and in case the State Government does not notify the area

•within such period, the Central Government may, after the expiry of the period so fixed,

•notify the area for grant of exploration licence.

(6)The State Government shall, for the purpose of granting exploration licence

•through auction by method of competitive bidding, including e-auction, select an

•applicant who fulfils the eligibility conditions as specified in this Act and grant

•exploration licence to such applicant.

(7)Where—

(a)the State Government has not successfully completed auction for the

•grant of exploration licence; or

(b)after completion of auction, the exploration licence or letter of intent for

•grant of exploration licence has been terminated or lapsed for any reason

•whatsoever,

•the Central Government may require the State Government to conduct and complete

•the auction or re-auction process, as the case may be, within such period as may be

•fixed in consultation with the State Government, and in cases where such auction or

•re-auction process is not completed within such period, the Central Government may,

•after the expiry of the period so fixed, conduct auction for the grant of exploration

•licence for such area:

•Amendment

•of section 10.

•Insertion of

•new section

10BA.

•Grant of

•exploration

•licence for

•minerals

•specified in

•Seventh

•Schedule

•through

auction.

•5

•10

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•4

•Provided that upon successful completion of the auction, the Central Government

•shall intimate the details of the preferred bidder in the auction to the State Government

•and the State Government shall grant exploration licence for such area to such preferred

•bidder in such manner as may be prescribed by the Central Government.

(8)The holder of exploration licence shall be entitled to a share of applicable

•amount quoted in the auction of mining leases payable by the lessee to the State

•Government in respect of the area granted in mining lease pursuant to the prospecting

•operations undertaken by the holder of such exploration licence:

•Provided that the share in applicable amount payable to the holder of exploration

•licence by the lessee of such area shall be allowed only in respect of the minerals

•specified in the Seventh Schedule.

(9)The Central Government shall by rules provide for the manner of conducting

•auction for grant of exploration licence, including its terms and conditions, the bidding

•parameters for selection, share payable to the holder of exploration licence from out of

•the applicable amount quoted in auction of mining leases payable by the lessee of

•such area, the period for such payment and such other conditions as may be necessary.

(10)Notwithstanding anything contained in section 7,—

(a)the exploration licence shall be granted for a period of five years from

•the date of execution of the exploration licence;

(b)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.

(11)After three years from the date of execution of the exploration licence, the

•holder of such licence may retain an area not exceeding twenty-five per cent. of the

•total area covered under that licence for the purpose of continuing reconnaissance or

•prospecting operations and shall surrender the remaining area after submitting a report

•to the State Government stating the reasons for retention of the area proposed to be

•retained by him and the boundaries of that area.

(12)The holder of the exploration licence shall, within three months of the

•completion of the operations for which licence has been granted, or of the date of

•expiry of the exploration licence, whichever is earlier, submit a geological report to the

•State Government explaining the result of the reconnaissance and prospecting

•operations, in such manner as may be prescribed.

(13)If the holder of the exploration licence fails to complete the reconnaissance

•and prospecting operations before expiry of the exploration licence, or fails to submit

•the geological report within the period specified in sub-section ( 12), the State

•Government may take such action as it deems fit, including imposition of penalty.

(14)Within six months from the date of receipt of the geological report from the

•holder of the exploration licence, the Central Government or the State Government

•shall initiate the auction process for grant of one or more separate mining leases under

SECTION Section 13

Untitled Section

•section 10B or section 11 or section 11D, as the case may be, in respect of the area

•where existence of mineral content is established and shall select the preferred bidder

•for grant of such mining leases within one year from the date of receipt of the geological

•report:

•Provided that in case the preferred bidder is not selected within the period so

•specified, the State Government shall pay to the person who was the holder of exploration

•licence such amount, and in such manner, as may be prescribed.".

•5

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•50

•5

SECTION Section 14

Untitled Section

10.After section 11C, the following section shall be inserted, namely:—

•"11D. (1) Notwithstanding anything contained in this Act, the Central Government

•shall, for the purpose of granting mining lease or composite licence in any area in

•respect of any mineral specified in the Part D of the First Schedule, select, through

•auction by method of competitive bidding, including e-auction, a preferred bidder who

•fulfils the eligibility conditions as specified in section 5, on such terms and conditions,

•and in such manner, as may be prescribed.

(2)Upon successful completion of the auction, the Central Government shall

•intimate the details of the preferred bidder in the auction to the State Government and

•the State Government shall grant mining lease or composite licence for such area, to

•such preferred bidder, in such manner, as may be prescribed by the Central Government.

(3)The royalty, dead rent, applicable amount quoted in the auction and any

•other statutory payment in relation to the mining lease or composite licence auctioned

•by the Central Government shall accrue to the State Government or concerned

•authorities, as the case may be, as if the auction has been conducted by the State

Government.".

SECTION Section 15

Untitled Section

11.In section 12 of the principal Act,—

(a)for the marginal heading, the following marginal heading shall be substituted,

•namely:—

•"Registers of mineral concession.";

(b)in sub-section (1),—

(i)in clause (e), the word "and" shall be omitted;

•(ii) after clause (f), the following clauses shall be inserted, namely:—

•"(g) a register of applications for exploration licences; and

(h)a register of exploration licences,".

SECTION Section 16

Untitled Section

12.In section 12A of the principal Act,—

(i)after the words "composite licence", wherever they occur, the words "or

•exploration licence" shall be inserted;

•(ii) in sub-section (4), in the proviso, for the words "or of a composite licence",

•the words "or composite licence" shall be substituted.

SECTION Section 17

Untitled Section

13.In Chapter IV of the principal Act, for Chapter heading, the following Chapter

•heading shall be substituted, namely: —

•"R

•ULES FOR REGULA TING THE GRANT OF MINERAL CONCESSIONS".

14.In section 13 of the principal Act, in sub-section (2),—

(i)clause (ac) shall be omitted;

•(ii) in clause (qqg), for the words, figures and letters "mining lease or composite

•licence under section 10B, 11, 11A, 11B", the words, figures and letters "mineral

•concession under section 10B, 10BA, 11, 11A, 11B, 11D" shall be substituted;

•(iii) after clause (v), the following clauses shall be inserted, namely:—

•"(va) the manner of notifying the areas for grant of exploration licence

•under sub-section (4) of section 10BA;

•(vb) the manner of granting exploration licence to the preferred bidder

•under the proviso to sub-section (7) of section 10BA;

•Insertion of

•new section

11D.

•Central

•Government

•to conduct

•auction for

•grant of

•mining lease

•or composite

•licence in

•respect of

•minerals

•specified in

•Part D of

•First

Schedule.

•Amendment

•of section 12.

•Amendment

•of section

12A.

•Substitution

•of Chapter

•heading of

SECTION Section 18

Untitled Section

•Chapter IV.

•Amendment

•of section 13.

•5

•10

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•20

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•35

•40

•6

•(vc) the manner of conducting auction for grant of exploration licence, the

•terms and conditions thereof, the bidding parameters for selection, the share

•payable to the holder, the period for payment and other conditions under

•sub-section (9) of section 10BA;

•(vd) the manner of submitting geological report under sub-section (12) of

SECTION Section 19

Untitled Section

•section 10BA;

•(ve) the amount to be paid and the manner of payment under the proviso

•to sub-section (14) of section 10BA;";

•(iv) after clause (x), the following clauses shall be inserted, namely: —

•"(xa) the terms and conditions and the manner of selecting a preferred

•bidder under sub-section (1) of section 11D;

•(xb) the manner of granting a mining lease or composite licence to a

•preferred bidder under sub-section (2) of section 11D;".

SECTION Section 2

Untitled Section

•CHAPTER I

•PRELIMINARY

SECTION Section 20

Untitled Section

15.In section 17A of the principal Act, in sub-sections (1), (1A) and (2), after the words

•"prospecting licence", the words "or exploration licence" shall be inserted.

SECTION Section 21

Untitled Section

16.In section 18A of the principal Act, in sub-section (1), after the words "prospecting

•licence", at both places where they occur, the words "or exploration licence" shall be inserted.

SECTION Section 22

Untitled Section

17.In section 19 of the principal Act, for the marginal heading, the following marginal

•heading shall be substituted, namely:—

•"Mineral concession to be void if in contravention of Act.".

SECTION Section 23

Untitled Section

18.In section 21 of the principal Act, in the Explanation, after the words "composite

•licence", the words ", exploration licence" shall be inserted.

SECTION Section 24

Untitled Section

19.In section 24A of the principal Act, for the marginal heading, the following marginal

•heading shall be substituted, namely:—

•"Rights and liabilities of a holder of mineral concession.".

SECTION Section 25

Untitled Section

20.In the principal Act, in the First Schedule,—

(i)after the figures and letter “11C”, the figures and letters “11D” shall be inserted;

•(ii) for Part B, the following Part shall be substituted, namely:—

•"P ART B

•Atomic minerals

SECTION Section 26

Untitled Section

1.Minerals of the "rare earths" group containing Uranium and Thorium.

SECTION Section 27

Untitled Section

2.Phosphorites and other phosphatic ores containing Uranium.

SECTION Section 28

Untitled Section

3.Pitchblende and other Uranium ores.

SECTION Section 29

Untitled Section

4.Uraniferous allanite, monazite and other thorium minerals.

SECTION Section 3

Untitled Section

1.(1) This Act may be called the Mines and Minerals (Development and Regulation)

•Amendment Act, 2023.

(2)It shall come into force on such date as the Central Government may, by notification

•in the Official Gazette, appoint.

•AS INTRODUCED IN LOK SABHA

•Bill No. 101 of 2023

•5

•2

SECTION Section 30

Untitled Section

5.Uranium bearing tailings left over from ores after extraction of copper

•and gold, ilmenite and other titanium ores.

SECTION Section 31

Untitled Section

6.Beach sand minerals, that is, economic heavy minerals found in the teri

•or beach sands, which include ilmenite, rutile, leucoxene, garnet,

•monazite, zircon and sillimanite.";

•Amendment

•of section

17A.

•Amendment

•of section

18A.

•Amendment

•of section 19.

•Amendment

•of section 21.

•Amendment

•of section

24A.

•Amendment

•of First

Schedule.

•5

•10

•15

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•35

•7

•(iii) after Part C, the following Part shall be inserted, namely:—

•"PAR T D

•Critical and Strategic Minerals

SECTION Section 32

Untitled Section

1.Beryl and other beryllium bearing minerals.

SECTION Section 33

Untitled Section

2.Cadmium bearing minerals.

SECTION Section 34

Untitled Section

3.Cobalt bearing minerals.

SECTION Section 35

Untitled Section

4.Gallium bearing minerals.

SECTION Section 36

Untitled Section

5.Glauconite.

SECTION Section 37

Untitled Section

6.Graphite.

SECTION Section 38

Untitled Section

7.Indium bearing minerals.

SECTION Section 39

Untitled Section

8.Lithium bearing minerals.

SECTION Section 4

Untitled Section

2.In section 3 of the Mines and Minerals (Development and Regulation) Act, 1957

•(hereinafter referred to as the principal Act), in section 3,—

(i)after clause (aa), the following clause shall be inserted, namely:—

•'(aaa) "exploration licence" means a licence granted for undertaking

•reconnaissance operations or prospecting operations or both in respect of

•minerals specified in the Seventh Schedule;';

•(ii) in clause (ae), after the words "composite licence", the words ", exploration

•licence" shall be inserted;

•(iii) for clause (ha), the following clause shall be substituted, namely:—

•'(ha) "reconnaissance operations" means any operations undertaken for

•preliminary prospecting of a mineral through regional, aerial, geophysical or

•geochemical surveys and geological mapping, and include pitting, trenching,

•drilling and sub-surface excavation;'.

SECTION Section 40

Untitled Section

9.Molybdenum bearing minerals.

SECTION Section 41

Untitled Section

10.Nickel bearing minerals.

SECTION Section 42

Untitled Section

11.Niobium bearing minerals.

SECTION Section 43

Untitled Section

12.Phosphate (without uranium).

SECTION Section 44

Untitled Section

13.Platinum group of elements bearing minerals.

SECTION Section 45

Untitled Section

14.Potash.

SECTION Section 46

Untitled Section

15.Minerals of the "rare earths" group not containing Uranium and Thorium.

SECTION Section 47

Untitled Section

16.Rhenium bearing minerals.

SECTION Section 48

Untitled Section

17.Selenium bearing minerals.

SECTION Section 49

Untitled Section

18.Tantalum bearing minerals.

SECTION Section 5

Untitled Section

3.In section 4 of the principal Act, in sub-section ( 1), after the words "prospecting

•licence", the words "or of a exploration licence" shall be inserted.

SECTION Section 50

Untitled Section

19.Tellurium bearing minerals.

SECTION Section 51

Untitled Section

20.Tin bearing minerals.

SECTION Section 52

Untitled Section

21.Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).

SECTION Section 53

Untitled Section

22.Tungsten bearing minerals.

SECTION Section 54

Untitled Section

23.Vanadium bearing minerals.

SECTION Section 55

Untitled Section

24.Zirconium bearing minerals and ores including zircon.".

SECTION Section 56

Untitled Section

21.In the principal Act, after Sixth Schedule, the following shall be inserted, namely:—

•"THE SEVENTH SCHEDULE

•[ See sections 3 (aaa), 10BA(2) and 10BA(3)]

•Minerals

SECTION Section 57

Untitled Section

1.Apatite.

SECTION Section 58

Untitled Section

2.Beryl and other beryllium bearing minerals.

SECTION Section 59

Untitled Section

3.Cadmium bearing minerals.

SECTION Section 6

Untitled Section

4.In section 4A of the principal Act,—

(i)for the marginal heading, the following marginal heading shall be substituted,

•namely:—

•"Termination of prospecting licences, exploration licences or mining

leases.";

•(ii) in sub-section (1), for the words "prospecting licence", at both places where

•they occur, the words "prospecting licence or exploration licence" shall be substituted;

•(iii) in sub-section ( 3), after the words "prospecting licence", the words "or

•exploration licence" shall be inserted.

SECTION Section 60

Untitled Section

4.Cobalt bearing minerals.

SECTION Section 61

Untitled Section

5.Copper bearing minerals.

•Insertion of

•new Seventh

Schedule.

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•8

SECTION Section 62

Untitled Section

6.Diamond.

SECTION Section 64

Untitled Section

8.Graphite.

SECTION Section 65

Untitled Section

9.Indium bearing minerals.

SECTION Section 66

Untitled Section

10.Lead bearing minerals.

SECTION Section 67

Untitled Section

11.Lithium bearing minerals.

SECTION Section 68

Untitled Section

12.Molybdenum bearing minerals.

SECTION Section 69

Untitled Section

13.Niobium bearing minerals.

SECTION Section 7

Untitled Section

5.In section 5 of the principal Act, for the marginal heading, the following marginal

•heading shall be substituted, namely:—

•"Restrictions on the grant of mineral concession.".

SECTION Section 70

Untitled Section

14.Nickel bearing minerals.

SECTION Section 71

Untitled Section

15.Potash.

SECTION Section 72

Untitled Section

16.Platinum group of elements bearing minerals.

SECTION Section 73

Untitled Section

17.Minerals of 'rare earths' group.

SECTION Section 74

Untitled Section

18.Rhenium bearing minerals.

SECTION Section 75

Untitled Section

19.Rock Phosphate.

SECTION Section 76

Untitled Section

20.Selenium.

SECTION Section 77

Untitled Section

21.Silver.

SECTION Section 78

Untitled Section

22.Tantalum bearing minerals.

SECTION Section 79

Untitled Section

23.Tellurium bearing minerals.

SECTION Section 8

Untitled Section

6.In section 6 of the principal Act,—

(a)for the marginal heading, the following marginal heading shall be substituted,

•namely:—

•"Maximum area for which mineral concession may be granted.";

(b)in sub-section (1),—

(i)after clause (aa), the following clause shall be inserted, namely:—

•"(ab) one or more exploration licences covering a total area of more

•than five thousand square kilometres:

•Provided that the area granted under a single exploration licence

•shall not exceed one thousand square kilometers;";

•(ii) in clause (c), for the words "reconnaissance permit, mining lease or

•prospecting licence", the words "mineral concession" shall be substituted.

SECTION Section 80

Untitled Section

24.Tin bearing minerals.

SECTION Section 81

Untitled Section

25.Titanium bearing minerals and ores (ilmenite, rutile and leucoxene).

SECTION Section 82

Untitled Section

26.Tungsten bearing minerals.

SECTION Section 83

Untitled Section

27.Vanadium bearing minerals.

SECTION Section 84

Untitled Section

28.Zinc bearing minerals.

SECTION Section 85

Untitled Section

29.Zirconium bearing minerals and ores including zircon.".

•5

•10

•15

•20

•9

•STATEMENT OF OBJECTS AND REASONS

•The Mines and Minerals (Development and Regulation) Act, 1957 was enacted to

•provide for the development and regulation of mines and minerals under the control of the

Union.

SECTION Section 86

Untitled Section

2.The Act was comprehensively amended in 2015 to bring several reforms in the

•mineral sector, notably, mandating method of auction for grant of mineral concessions to

•bring transparency in allocation of mineral resources, for establishing District Mineral

•Foundation for the welfare of the people and areas affected by mining and for establishing

•National Mineral Exploration Trust to give thrust to exploration and for ensuring stringent

•penalty for illegal mining. The Act was further amended in 2016 and 2020 to address specific

•emergent issues and was last amended in 2021 to bring further reforms in the sector, such as,

•removing the distinction between captive and merchant mines, transfer of statutory clearances

•to ensure continuity in mining operations even with change of lessee, removing the

•restrictions on transfer of mineral concessions, lapsing of rights of non-auctioned concession

•holders which have not resulted in mining leases to ensure that concessions to private

•sector are only granted through auction, etc.

SECTION Section 87

Untitled Section

3.However, the mineral sector requires certain more reforms particularly for increasing

•exploration and mining of critical minerals that are essential for economic development and

•national security in the country. The lack of availability of the critical minerals or concentration

•of their extraction or processing in a few geographical locations may lead to supply chain

•vulnerabilities and even disruption of supplies. The future global economy will be underpinned

•by technologies that depend on minerals such as lithium, graphite, cobalt, titanium, and rare

•earth elements. Critical minerals have gained significance in view of India's commitment

•towards energy transition and achieving net-zero emission by 2070.

SECTION Section 88

Untitled Section

4.Therefore, it is proposed to further amend the said Act by enacting the Mines and

•Minerals (Development and Regulation) Amendment Bill, 2023. One of the major reforms

•proposed in the Bill is to introduce exploration licence for deep-seated and critical minerals.

•The exploration licence granted through auction shall permit the licencee to undertake

•reconnaissance and prospecting operations for critical and deep-seated minerals mentioned

•in the newly proposed the Seventh Schedule to the Act. 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. The exploration agency shall be entitled to a

•share in the auction premium payable by the mining lease holder. Deep-seated minerals, such

•as gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, diamonds, etc.

•are difficult and expensive to explore and mine as compared to surfacial or bulk minerals and

•thus share of deep-seated minerals in total mineral production is meager at present. The

•country is mostly dependent on imports of these minerals. The proposed exploration licence

•would facilitate, encourage and incentivize private sector participation in all spheres of

•mineral exploration for critical and deep-seated minerals.

SECTION Section 89

Untitled Section

5.Further, from the list of 12 atomic minerals specified in Part-B of the First Schedule

•to the Act, it is proposed to omit 6 minerals, namely, (i) Beryl and other beryllium-bearing

•minerals (ii) Lithium-bearing minerals, (iii) Niobium-bearing minerals, (iv) Titanium bearing

•minerals and ores, (v) Tantallium-bearing minerals and (vi) Zirconium-bearing minerals and

ores.These minerals have various applications in space industry, electronics, communications,

•energy sector, electric batteries and are critical in net-zero emission commitment of India. Due

•to their inclusion in the list of atomic minerals, their mining and exploration is reserved for

•government entities. Upon removal of these minerals from the said list, exploration and

•mining of these minerals will be opened up for the private sector as well. As a result, exploration

•and mining of these minerals is expected to increase significantly in the country.

•10

SECTION Section 9

Untitled Section

7.In Chapter III of the principal Act, for Chapter heading, the following Chapter

•heading shall be substituted, namely:—

•"P

•ROCEDURE FOR OBTAINING MINERAL CONCESSION IN RESPECT OF LAND IN WHICH THE

•MINERALS VEST IN THE GOVERNMENT".

•Amendment

•of section 3.

•Amendment

•of section 4.

•Amendment

•of section 5.

•Amendment

•of section 6.

•Substitution

•of Chapter

•heading of

SECTION Section 90

Untitled Section

6.It is also proposed to empower Central Government to exclusively auction mining

•lease and composite licence for certain critical minerals listed in new Part-D of the First

•Schedule to the said Act. As these critical minerals are indispensable for the growth of our

•economy, authorising the Central Government to auction concession for these critical minerals

•would increase the pace of auction and early production of the minerals. Even in case of

•conduct of auction by the Central Government, the mineral concession shall be granted to

•the selected bidders by the State Government only and the auction premium and other

•statutory payments shall accrue to the State Government.

SECTION Section 91

Untitled Section

7.The Bill seeks to achieve the above objectives.

•PRALHAD JOSHI.

•N

•EW DELHI;

•The 19th July, 2023.

•11

•FINANCIAL MEMORANDUM

•The Bill seeks to amend the Mines and Mineral (Development and Regulation)

•Act, 1957 to increase exploration and mining of critical and deep-seated minerals in the

•country and to put the nation's mineral resources to the best use for national economic

growth.The Bill, if enacted, is not likely to involve any recurring or non-recurring expenditure.

•12

•MEMORANDUM REGARDING DELEGATED LEGISLATION

SECTION Section 92

Untitled Section

•Clause 9 of the Bill seeks to insert a new section 10BA in the Mines and Minerals

•(Development and Regulation) Act, 1957. Sub-section (3) of the said section empowers the

•Central Government to amend, by notification in the Official Gazette and for reasons to be

•recorded in writing, the Seventh Schedule which specifies the minerals for which an exploration

•licence may be granted.

SECTION Section 93

Untitled Section

2.Clause 14 of the Bill seeks to amend sub-section (2) of section 13 of the said Act to

•empower the Central Government to make rules to provide for - (i) the manner of notifying the

•areas for grant of exploration licence; (ii) the manner of granting exploration licence to the

•preferred bidder; (iii) the manner of conducting auction for grant of exploration licence, the

•terms and conditions thereof, the bidding parameters for selection, the share payable to the

•holder and the period for payment and other conditions; ( iv) the manner of submitting

•geological report; (v) the amount to be paid and the manner of payment; (vi) the terms and

•conditions and the manner of selecting a preferred bidder; and (vii) the manner of granting a

•mining lease or composite licence to a preferred bidder.

SECTION Section 94

Untitled Section

3.The matters in respect of which rules may be made and notification issued are

•matters of procedure and administrative detail and it is not practicable to provide for them in

•the proposed legislation itself. The delegation of legislative power is, therefore, of a normal

character.

•13

•ANNEXURE

•EXTRACTS FROM THE MINES AND MINERALS (DEVELOPMENT AND REGULATION)

•ACT, 1957

•(67 OF 1957)

SECTION Section 95

Untitled Section

3.In this Act, unless the context otherwise requires,—

•* * * * *

•(ae) "minerals concession" means either a reconnaissance permit, prospecting

•licence, mining lease, composite licence or a combination of any of these and the

•expression "concession" shall be construed accordingly;

•* * * * *

•(ha) "reconnaissance operations" means any operations undertaken for

•preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical

•surveys and geological mapping, but does not include pitting, trenching, drilling (except

•drilling of boreholes on a grid specified from time to time by the Central Government)

•or sub-surface excavation;

•* * * * *

SECTION Section 96

Untitled Section

•CHAPTER II

•G

•ENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

SECTION Section 97

Untitled Section

4.(1) No person shall undertake any reconnaissance, prospecting or mining operations

•in any area, except under and in accordance with the terms and conditions of a reconnaissance

•permit or of a prospecting licence or, as the case may be, of a mining lease, granted under this

•Act and the rules made thereunder:

•Provided that nothing in this sub-section shall affect any prospecting or mining

•operations undertaken in any area in accordance with terms and conditions of a prospecting

•licence or mining lease granted before the commencement of this Act which is in force at

•such commencement:

•Provided further that nothing in this sub-section shall apply to any prospecting

•operations undertaken by the Geological Survey of India, the Indian Bureau of Mines, the

•Atomic Minerals Directorate for Exploration and Research of the Department of Atomic

•Energy of the Central Government, the Directorates of Mining and Geology of any State

•Government (by whatever name called), and the Mineral Exploration Corporation Limited, a

•Government company within the meaning of clause ( 45) of section 2 of the Companies

•Act, 2013, and any other entities including private entities that may be notified for this

•purpose, subject to such conditions as may be specified by the Central Government:

•Provided also that nothing in this sub-section shall apply to any mining lease (whether

•called mining lease mining concession or by any other name) in force immediately before the

•commencement of this Act in the Union territory of Goa, Daman and Diu.

•* * * * *

4A.(1) Where the Central Government, after consultation with the State Government,

•is of opinion that it is expedient in the interest of regulation of mines and mineral development,

•preservation of natural environment, control of floods, prevention of pollution, or to avoid

•danger to public health or communications or to ensure safety of buildings, monuments or

•other structures or for conservation of mineral resources or for maintaining safety in the

Definitions.

•Prospecting

•or mining

•operations to

•be under

•licence or

lease.

•Termination

•of

•prospecting

•licences or

•mining leases.

•18 of 2013.

•14

•mines or for such other purposes, as the Central Government may deem fit, it may request the

•State Government to make a premature termination of a prospecting licence or mining lease in

•respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt

•of such request, the State Government shall make an order making a premature termination of

•such prospecting licence or mining lease with respect to the area or any part thereof.

•* * * * *

(3)No order making a premature termination of a prospecting licence or mining lease

•shall be, made except after giving the holder of the licence or lease a reasonable opportunity

•of being heard.

•* * * * *

SECTION Section 98

Untitled Section

5.(1) * * * * *

SECTION Section 99

Untitled Section

6.(1) No person shall acquire in respect of any mineral or prescribed group of associated

•minerals in a State—

•* * * * *

(c)any reconnaissance permit, mining lease or prospecting licence in respect of any

•area which is not compact or contiguous:

•* * * * *