Lok Sabha Passes The Mines and Minerals (Development and Regulation) Amendment Bill, 2023
Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023, to amend the Mines and Minerals (Development and Regulation) Act, 1957 which regulates the mining industries.According to the text of the Bill, “One of the major reforms proposed in the Bill is to introduce exploration licence for deep-seated and critical minerals.”The exploration licence...
Lok Sabha passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023, to amend the Mines and Minerals (Development and Regulation) Act, 1957 which regulates the mining industries.
According to the text of the Bill, “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 will allow the licencee from private sectors to undertake “reconnaissance” and prospecting operations for critical and deep-seated minerals mentioned in the newly proposed Seventh Schedule to the Act, containing 29 minerals.
“Reconnaissance operations” are defined as operations undertaken for preliminary prospecting and includes: (i) aerial surveys, (ii) geophysical, and (iii) geochemical surveys. It also includes geological mapping.
According to PRS, the Act prohibits pitting, trenching, drilling, and sub-surface excavation as part of reconnaissance, However such activities are allowed by the Bill.
The list of minerals includes Diamond, Gold, Silver, Graphite and Zinc bearing minerals etc. 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”, as per the objective stated in the Bill.
“The proposed exploration licence would facilitate, encourage and incentivize private sector participation in all spheres of mineral exploration for critical and deep-seated minerals,” the Bill states.