The Union government has issued updated mining concession rules, which would allow for the sale of 50% of mineral production from captive mines, free transfer of mines, and partial lease surrender.
Earlier this year, the Mines and Minerals (Development and Amendment) Act, 1957 (MMDR Act) was amended in a variety of ways. The modifications sought to boost employment and investment in the mining industry, as well as increase state income, increase output, and ensure mines were operating within a certain time frame.
The mines ministry “notified the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 to amend The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 (MCR, 2016),” according to an official statement released on Tuesday.
After extensive discussions with state governments, industry groups, miners, other stakeholders, and the general public, the new guidelines were drafted.
With the new laws, the government has prepared the road for more minerals to be released into the market by maximising the use of captive mine mining capacity. It also specifies how 50% of the mineral generated by captive miners may be sold.
The provision for the sale of a certain amount of mineral will also encourage lessees to increase output from captive mines, according to the statement.
Furthermore, extra premiums, royalties, and other statutory payments based on the quantity sold will increase state government income.
Provisions have also been introduced to enable the disposal of overburden/waste rock/minerals that are less than the threshold value and are created during the mining or beneficiation of the mineral.
“The minimum acreage required to award a mining lease has been reduced from 5 hectares to 4 hectares. A minimum of 2 ha. is given for certain specified deposits “, according to the statement.
In all situations, part surrender of the mining lease area has been permitted. Part surrender had previously only been permitted in the event that forest clearance had not been granted.
The new laws also allow for the transfer of all sorts of mines’ composite licences or mining leases.
“New regulations have been added to allow for the mutation of ML/CL in favour of legal heirs in the event of the lessee’s or licensee’s death… Interest on late payments has been reduced from 24 percent to 12 percent “According to the announcement.
The MCR, 2016, also included rules governing the length of mining leases issued to government corporations and their payments.
Source: Business Standard