ACHARYA

POLYTECHNIC
DEPARTMENT OF MINING ENGINEERING

National Mineral
Policy, 2019:
Analysis and Amendments

Rakesh M.M.
Sabyasachi Nayak
MineMagma
 CONTRIBUTION TO GVA

Service Sector Manufacturing

54% Constuction
Industry Sector 17%
8%
29%

Agriculture Electricity,
Sector gas, water& Mining &
17% other utility Quarrying
2% 2%
Source Economic Survey 2017-18 :for Agriculture ,Industry as Whole and Service Sector as Bifurcated
Backdrop
1. NMP, 2008 has been revised after 11 years.
Key features
2. Hon’ble Supreme Court in its order dated
02.08.2017 in WP (C) No. 114 of 2014 asked the 1. Effective Regulation for sustainable mining.
Government of India to relook the policy.
2. Transparency in Development & Regulation.
3. Committee under the Chairmanship of Dr.
Rajeswar Rao, Additional Secretary (Mines), 3. Socio economic Development of tribal and mining affected
Govt. of India. people.

4. Privatisation in exploration and mining.

5. Dedicated costal shipping and inland shipping corridor.

6. Attractive & stable fiscal regime.

7. R&D in mining and mineral based industries.

8. End to End solution for indigenous industries

Role of State in Mineral development
Annual business plan/road map
for development of mineral
sector
Transparency & fair play in
reserving areas for State
agencies
Auction the blocks with
pre-embedded statutory
clearances
Create trust between Govt., miners, local
communities, stakeholders by openness,
fairness, better regulation, responsiveness,
inclusive policy making
Grant clearance by simpler, time
bound manner through online public
portal & to generate trigger to the
higher official in the case of delay

Mineral bearing zones shall be Facilitation & Regulation of

earmarked as mining land in 1. Exploration & mining
Land Records 2. Making provision for
development &
infrastructure
Rationalize the unused areas 3. Tax collection
reserved by PSUs
Prospecting & Exploration
Minerals in which the country has a
poor resource-cum-reserve base
despite having the geological potential
for large resources, energy critical
minerals, fertilizer minerals, precious
metals and stones, strategic minerals
and other deep seated minerals which
are otherwise difficult to access and for
which the country is mainly dependent
on imports.
Private sector would be encouraged

Clearances shall be streamlined with

simpler, transparent, accountable and time
bound procedures to facilitate exploration in
order to conform to the statutory
requirements especially for geologically
complex deposits

India’s Exclusive Economic Zone is explored

and extracted to the maximum possible extent
National inventory of mineral resources

Baseline & Exploration Collaboration of research bodies

data shall be disseminated for technological research to
as public good address the mineral exploration
challenge

Digitalization of Web based registry

Resource inventory & with GIS & map based
Tenement registry service

Globally accepted public Mining Tenement System

reporting standard for to automate the entire life
acceptability of financial cycle of the concession.
institutions & Stock exchange
Vision- 13 objectives
Promote domestic Environmentally Gender sensitivity at all
industry sustainable mining level

Setup unified authority

Reduce import Devolution of benefits of at national level for
dependency mining affected persons mineral development

Feed into “Make in Conducive regulatory Co-ordination to fulfil

India” initiative environment for ease of the policy
doing business

Transparent Simpler, transparent & time

allocation of mineral bound procedure for
resources obtaining clearances

Equitable distribution Efficient regulatory mechanism for e-

of mineral wealth governance to prevent illegal mining &
Value leakages
 Promotion of domestic
industry

1. Fulfill the needs of domestic industry & external

markets.
2. Upgradation of mining technology for
utilization of the entire Run-of-Mines (RoM).
3. Recovery of metal through recycling.
4. Capacities of indigenous industry shall be
developed for manufacture of mining machinery
and mineral beneficiation equipment.
Reduction of import
dependency
1. Uninterrupted supply of minerals/ore to the
downstream industry even after 2020 & 2030.
2. Securing access to sufficient, reliable, affordable, and
sustainable supplies of minerals.

5. Use of renewable sources of energy at mining

sites.
 Feed into “Make in India”
initiative
1. Use of improved and efficient equipment
and machinery.
2. Induction of modern technology and
participation shall be encouraged.
3. Establishment of common smelting and
refining facilities for small deposits.
4. To grant mining the status of industry.
5. Downstream regulations shall be aligned
for their exploration and development and
for facilitating acquisition of mineral assets
in other countries by public as well private
Indian business entities.
Conducive regulatory environment
for ease of doing business
1. Seamless & transparent allocation.
2. Assured Security of Tenure with provision of
transferability of concession.
3. Merger and acquisitions of mining entities.
4. Providing fiscal and/ or non-fiscal incentives.
5. Incentivize and free availability of equipment &
Machineries.
6. Dedicated mineral corridors.
7. Use of coastal water ways and inland shipping.
8. Special incentives or priority movement by
railways/port/coastal shipping.
9. Facilitate financing of prospecting, exploration and
mine development.
 Environmentally
sustainable mining

1. Promoting zero-waste mining. Gender sensitivity

2. Collaborative mining in large mining belt. at all level
3. Value addition and general customization of product.
1. Suitably reoriented HR
4. Installation of slurry pipelines and close loop conveyors.
Strategy.
5. Prevention and mitigation of adverse environmental effects.
2. Improving gender balance.
6. Mining to undertake within the parameters of a comprehensive
SDF.
7. FMCP - ecological shape and with least impact on flora and fauna. Simpler, transparent & time
8. No mining in identified ecologically fragile and biologically rich bound procedure for
areas. obtaining clearances

9. Identification of ecologically critically fragile & declare as ‘in- 1. Exclusive Mining Zone (EMZ) with
violate areas’ or ‘no-go areas’. prior in-principle statutory
clearances.
10. Sensitization training about environmental issues
11. Consistent approaches are adopted for efficient and effective R&R.
 Devolution of benefits of
mining affected persons

1. Environmental, economic and social considerations in the decision-making process.

2. A careful assessment of the economic, cultural, environmental, social impact, recognize

resettlement and rehabilitation issues on the affected persons.

3. Improve the living standards of the affected population and ensure them a sustainable income.

4. To monitor and review the implementation of schemes under DMF for giving effect to PMKKKY.

5. FMCP & PMCP shall encapsulate socio-economic aspects.

6. Increase the safety of workers and reduce accidents.

7. Participation and cooperation of mine workers shall be secured.

8. To minimise the adverse impact of mining on the health and safety of workers and the
surrounding population.
 Efficient regulatory mechanism for e-
governance to prevent illegal mining &
Value leakages

1. Satellite & Remote sensing applications.

2. Awareness & information campaigns. Setup unified authority at national

level for mineral development
3. Involvement of local population to prevent illegal
mining. 1. IBM & State DMG has to be strengthen

4. IT bases accounting of end-to-end mineral supply 2. Additional Manpower, Skill sets, equipment to state-
chain. of-the-art level.

5. Prevent sub-optimal and unscientific mining.
6. Sound & scientific Rules and Regulations.
7. Predispose the leased areas to systematic, scientific,
optimum, and complete extraction.
3. Ensure to envision mining as financially viable;
socially responsible; environmentally, technically and
scientifically sound; with a long term view of
development; uses mineral resources optimally; and,
ensures sustainable post-closure land uses.

8. Mechanization, computerization, automation &

adoption of state of the art technology.
 Co-ordination to fulfil
the policy

1. Entry 54 of Union List, Entry 23 of State List-7th Schedule of the Constitution of India.

2. Strengthen the regulatory agencies through capacity building measures.

3. Appoint more mining engineers, Environment engineers, geo-scientists and IT professionals.

4. Functionaries to trained in international practices.

5. Replenishable deposits and rare earth minerals for improved economic growth by ensuring
coordination between the different agencies.

6. Sustainable development framework to be adopted for creating a benchmark on administration.

7. DGMS should be further strengthened.

8. Prioritize Long-term mineral security for nation.

9. Adequate supply of minerals which are not available locally.

 Foreign Trade And Foreign Investment
1. Attract Foreign investment by making lucrative policies in all the sectors.

2. Export minerals in value added form as far as possible.

3. Attune indigenous mineral industries to the international economic situation.

4. Minerals continue to be an important source of foreign exchange earnings.

5. Export policy- Short, medium and long term needs of the country.

6. Import of minerals - indigenous development of mineral based industries.

7. Areas of cooperation with other countries having complementary resource base shall be
developed for mutual advantage.

8. A long term EXIM policy for the mineral sector would provide stability and prove to be an
incentive.
Fiscal aspects
1. Design fiscal measures, within the context of the budget, conducive to the promotion
of mineral exploration and development including beneficiation and other forms of
product refinement.

2. Fiscal changes will be examined from time to time consistent with the general tax
structure and through the normal budgetary process.

3. Benchmark and harmonize royalty and all other levies and taxes with mining
jurisdictions across the world to make India an attractive destination for exploration
and mining.
Research & development
General approach
1. Geological survey, exploration, mining, beneficiation, Research in Mining Methods
concentration of minerals.
1. Rock mechanics,
2. Technologies for conversion of existing mineral
resources into viable economic resources.
2. Ground control,
3. Enable indigenous industries to utilise the mineral
resources with which the country is abundantly 3. Mine design engineering,
endowed.
4. Equipment deployment and maintenance,
4. Alternative uses for minerals whose traditional
demand is on the wane. 5. Energy conservation,

5. Improve efficiency in process, operations and also the 6. Environmental protection,

recovery of by-products and reduction in
specification and consumption norms. 7. Safety of operations and human engineering

6. Evolve low capital and energy saving processing

systems.
Mineral Processing and Beneficiation

1. Beneficiation and agglomeration techniques.

2. Research organisations, including the NMPL

of IBM will be strengthened.

3. Cooperation between and coordination

among all organizations in public and private
sector engaged in this task. Development of Automated Equipment
4. Ensure maximum economic recovery of the
associated minerals and valuable metals 1. Development of robotics, automated
including incentivization and promotion of equipment for mining, especially for deep
state-of-the-art technology. mining and transportation to surface.

2. Appropriate fiscal measure to facilitate import

of automated equipments, machinery and
mining robots etc.
Deep Sea Mining

1. Integrated systems for prospecting, exploration,

extraction, mining and processing.

2. Coordinating as well as funding of the survey and

exploration of Deep Sea Bed Area will be
established with the Ministry of Earth Sciences.

Coordination of Research Organizations

1. Pooling of resources, efforts and expertise available in
Production of Materials of High Purity various R&D Organisations is imperative.

1. Research will be directed towards raw materials 2. Strengthening Coordination, synergy and convergence
required for production of materials of high among the various institutions engaged in R&D.
purity for use in advanced technology
applications. 3. Interchange of scientists between institutions.

4. Research findings are made available to users

expeditiously.
Inter Generational Equity
1. State is the trustee on behalf of the people to ensure that future generations receive the benefit of
inheritance.

2. State Governments will endeavor to ensure that the full value of the extracted minerals is received by the
State.

3. A disaggregated approach shall be adopted considering aspects like reserves/ resources and potential for
reuse through recycling, which are relevant and suitable in the Indian context.

Inter Ministerial Mechanism For Sustainable Development

1. A unified authority in the form of an inter-ministerial body under MOM, with various other ministries
including state governments, shall be constituted.

2. Decide the limits on the extent of mining activities that should be permitted which would, inter alia, involve
undertaking a detailed study for assessing - state-wise/region-wise ceiling of annual excavation and
transportation of minerals.
Expected Amendments in Mineral sector
1. Section 9(3) of the MM(D&R) Act, 1957 in the matter of revision of Royalty.

2. Provisions under “The Ease of Compliance to Maintain Registers under various Labour Laws Rules, 2017”

3. Rule 6, 7 & 8 of “The Forest (Conservation) Rules, 2003” read with subsequent amendments in the matter of
proposal of FC clearances.

4. Rule 23 of “The M (OACHEM) CR, 2016” in the matter of transfer of lease.

5. Section 6 of the MM(D&R) Act, 1957 in the matter of maximum extent of lease.

6. Rule 19 of “The M (OACHEM) CR, 2016” in the matter of restriction on right of first refusal.

7. Rule 12 (4A) of “The MCDR, 2017” in the matter of exploration by the lessee.

8. Rule 9 of “The Mineral (Auction) Rules, 2015” in the matter of bidding process(evaluation of immovable
properties).

9. Provisions and calculation of Stamp Duty.

10. EXIM Policy.

Analysis of NMP-19
Strength (1/1.25) Weakness (0.75/1.25)

• Make in India promotion • Mining laws are not considered.

• Export of Value added products
• Mining corridors & Exclusive Mining
Zone
• R&D and technology upgradation
• Creation of No-go areas.
• No clarity on fiscal aspects.
• Core competency is not entertained.
• Various rare earth minerals and atomic
minerals are not considered.

Threat (1/1.25)
Opportunity (1/1.25)
• Industry status to Mining.
• Gender equality
• Free access to mineral inventory database.
• Zero waste mining
• Training and upgradation.
• FDI- Investment friendly atmosphere
OUTCOMES & CONCLUSION

1. India aims to increase the share of the manufacturing sector in the economy.

2. Requires a holistic development of the mineral sector on a sustainable basis.

3. The outcomes expected from these policy proposals are, an increase in the production
of MCDR (Mineral Conservation and Development Rules,2017) minerals (in value
terms) by 200 % in 7 years; and on the other hand reduce the trade deficit in minerals
sector by 50% in 7 years.

4. The success of this national mineral policy will be critical in propelling India on to a
loftier development trajectory.

“It is not the strongest of the species that survives, nor the most intelligent one. It is the
one that is most adaptable to change.”- Charles Darwin.
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