Staff Reporter
Panaji
Sweeping changes in the mining sector are in the offing, with the Union government planning new regulations for extraction and processing of minerals by way of amendment to the Mines and Minerals (Development and Regulation) or MMDR Act, 1957.
Under the draft revision, the Mines Ministry proposes to increase contribution of leaseholders to the National Mineral Exploration Trust (NMET) to a maximum of 10% of royalty from the present 2%. The additional funding proposal is to allow the NMET to undertake exploration activities of critical minerals such as lithium, nickel, cobalt, etc within the country or overseas.
The draft document proposes to allow inclusion of critical and strategic minerals or any other mineral in mining lease by levying an additional amount based on royalty or the auction premium.
Even a minor mineral leaseholder, on discovery of a major mineral or a critical mineral, can proceed with the extraction by paying an additional amount as specified by the government, subject to the payment rules.
Another significant amendment on the cards is the proposal to remove limestone, laterite and dolomite from the list of minor minerals and subject them to the rules applicable to major minerals.
The ministry plans to insert a new section 11E in the Act, wherein state governments will be allowed to grant mining lease to a minor mineral applicant for a lease area that is not more than 4 hectares.
The other proposed changes relate to permission for mining deep-seated minerals such as copper, gold, zinc, etc in contiguous areas in a lease.
Giving a deadline of a month, the ministry has said the general public, mining industry stakeholders, industry associations etc should submit their comments and suggestions on the proposed changes in the MMDR Act by January 30.
The Act was last amended in 2023. The government, in Budget 2024-25, announced the setting up of National Critical Mineral Mission for enhancing domestic production and acquisition of overseas critical mineral mines. Subsequently, an inter-ministerial committee (IMC) on the mines and mineral sector was constituted on March 11, 2024.
The proposed changes to the MMDR Act are based on recommendations of the IMC, and aimed at scientific and optimal mining of mineral resources, increasing revenues to the government.
