Steps to Boost the Mining and Minerals Sector

Steps to Boost the Mining and Minerals Sector

Question: Government has taken several steps to boost the mining and minerals sector. Elaborate.

- According to the National Mineral Policy 2008, conservation of minerals is a positive concept through augmentation of the resource base

- Government aims for effective legal and institutional framework mandating zero waste mining

- There will be a commitment to sub optimal and unscientific mining

Value addition of the mineral sectoral value through the following methods is being promoted:

- Beneficiation
- Calibration
- Blending
- Sizing
- Concentration
- Pelletisation
- Purification
- General Customising of Product

- Government has also amended the Mines and Minerals (Development and Regulation) Act 1957 through MMDR Amendment Act 2015

Amendments in the MMDR Act 1957 will give a boost to the sector through the following ways:

- Eliminating discretion in grant of mineral concessions as these will be granted via auction through competitive bidding

- It also permits opening of mines closed on account of pendency of decision on applications for second or subsequent renewal via extension of validity of lease period of the current leases

- Provision of security of tenure of mining lease period with uniform lease period of over 5 decades

- Simplification of procedure and removal of delay through eliminating of requirement of prior approval of central government for grant of mining lease via auction

- Setting up of the National Mineral Exploration Trust which is a fund to promote exploration to augment mineral resources

- Allowing easy transferability of mineral concessions granted via auction which would facilitate investments into the mining sector

- Setting up of District Mineral Foundation working for the interest and benefit of persons and areas affected by mining related operations

Facts and Stats

- Union Government has empowered State Government with respect to 31 minerals

- These have been notified as minor minerals for regulation of grant of mineral concessions and purposes associated with it