Shoma Patnaik
Panaji
The Centre has increased the contribution to the National Mineral Exploration Trust (NMET) from two to three per cent of royalty, adding to the burden on mining leaseholders of newly auctioned iron ore blocks in Goa. The change took effect on September 1.
The mines ministry amended the Mines and Minerals (Development and Regulation) Act, 1957, requiring leaseholders to provide additional funding to NMET for exploration of critical minerals such as lithium, nickel and cobalt, within the country or overseas
The higher payment comes on top of royalty, District Mineral Fund contribution, stamp duty, auction premium and other levies that leaseholders must pay to the state government.
The amended Act also introduces several reforms in the mineral sector. Leaseholders can now apply to the state to add other minerals to an existing lease. For inclusion of critical, strategic or other specified minerals, no additional payment is required. For other minerals, leaseholders must pay an amount equivalent to the royalty, and in case of auctioned mines, also the auction premium.
Relaxing norms for captive mines, the Act removes the 50 per cent annual cap on sale of minerals and permits state governments to sell mineral dumps stacked in leased areas, up to a date specified by the Centre. It allows a one-time extension of the mining lease area for deep-seated minerals, which occur more than 200 metres below the surface.
The ministry had in January proposed changes in the MMDR Act to boost domestic production of minerals.
, especially critical minerals, and kept the draft open for industry feedback for a month.
