Mining Law

Dr.
Tabrez Ahmad
Professor of Law
Dr. Tabrez Ahmad http://energylex.blogspot.in 1
Agenda
Historical Development
Regional Exploration
Detailed Exploration
Actual Exploration
The Mines Act 1952
The Mines Rules 1955
Mining Lease ( Modification of Terms ) Rules 1956
The Mines and Minerals( Development and Regulation ) Act 1957
The Minerals Concession Rules 1960
Mineral Conservation an Development Rules 1988
National Mineral Policy 1993
FDI in Mining Industry
National Mineral Policy 2008
Anwarul Hoda Committee Report
MB Shah Committee Report
Mines & Minerals (Development & Regulation) Bill, 2011
Environment & Mining Regulation
Mining Management in India
Analysis of Indian Mining Sector
History - Timeline
First Indian mining operations begun in 1774.

Development of steam engine in 1850s spurred
coal demand.

World War I created another surge in demand.

National Coal Development Corporation (NCDC)
1956 formed.

Steel industry growth in 1950s and 1960s sent coal
demand to all time highs.

History Contd
Demand from steel industry led to significant
private investment in mining, mostly for coking
coal.

Growth in private mining led to following
comment by then Minister of Steel and Mines:

Rampant corruption, forced labour, dubious and duplicate
records, under reporting of production, non-payment of full
wages, extended hours of shift without payment of lead or lift,
lack of safety and welfare measuresseemed to be the guiding
principles of a large number of private collieries

Nationalization of the industry.
Coking Coal Mines Nationalization Act of 1972
Coal Mines Nationalization Act of 1973
Coal India Ltd

The 15 Wedges (Scientific American, 9/06)
Power allocation in India
68%
8%
15%
3%
6%
Coal Gas
Hydro Nuclear
Others
Indian Scenario
India is the 4
th
largest economy in the world.
India has the 2
nd
largest GDP amongst developing countries based on
purchasing power parity.
Buoyant economy growth still expected to be in the region of 6-8%.
Availability of electricity a key factor in sustaining growth.
5
th
largest electricity generation capacity in the world over 1,90,592
MW.
Worlds 3
rd
largest transmission and distribution network.
Country continues to suffer from massive demand-supply gap
particularly during peak hours.
8-10 hours of load shedding even in industrialised states.
July 12 power grid failure affected over 600 million people.
Great scope for nuclear power potential value of sector in India at
USD 150 Billion.
Coal India Limited
Governmentowned entity which owns and operates Indias mines.
Under Ministry of Coal.
8 mining subsidiaries, 1 mine siting and planning subsidiary.

Source: Coal India LTD.
Dr. Tabrez Ahmad http://energylex.blogspot.in
Coal India Limited
Worlds largest coal mining company.
Responsible for approximately 85% of
total Indian production.
324 million tons in 2005.

1) Eastern Coalfields LTD
2) Bharat Coking Coal LTD
3) Central Coalfields LTD
4) Central Mine Planning
5) Northern Coalfields LTD
6) South Eastern Coalfields LTD
7) Western Coalfields LTD
8) Mahanadi Coalfields LTD
9) North Eastern Coalfields
Source: Coal India LTD.
The major players in the Mining sector are classified on the
basis of the minerals produced by them namely,
Exploration and Production of Coal / Lignite:
Coal India Ltd,
Neyveli Lignite Corporation,
IISCO(Indian Iron and Steel Company) etc.
Exploration of Metals (Copper, Bauxite, Iron Ore, Chromite,
Lead- Zinc):
NALCO,
BALCO,
Mineral Exploration Corporation Ltd,
Bharat Gold Mines Ltd,
ONGC,
Ircon,
Hindustan Zinc Ltd,
Hindustan Copper Ltd,
Sikkim Mining Corporation

Iron Ore Sector:
National Mineral Development Corporation
Kudremukh Iron Ore Company,
Steel Authority of India Ltd,
Orissa Mining Corporation.
Bauxite Mining and Aluminum Production:
National Aluminum Company.
Copper - Ore Mining:
Hindustan Copper Ltd.
Rock - Phoshate and Barytes Mining:
Rajasthan State Mines and Minerals Ltd,
Andhra Pradesh Mining Development Corporation.
Global Mining Companies in Indian Mining Sector
Transworld Garnet Co., Canada
Meridian Peak Resources Corpn,Canada
Pebble Creek Resources Ltd., Canada
BHP Billiton,Australia
Rio-Tinto Minerals Development Ltd., UK
Metdist Group, UK
Phelps Dodge Exploration Corpn, USA
De-Beers Consolidated Mines ltd., South Africa
Anglo American Exploration (India) BV, Netherland

DEVELOPMENT OF MINING
LAWS
Towards end of 19
th
century people started feeling wretched conditions
of persons working in mines.
Serious disasters occurred from time to time.
This alarmed the public opinion to such extend that legislatures
decided to enact provision to prevent mining accidents.
The first concrete proposal for inspection & regulation of mining
operations in India came in 1890 from Lord Cross, Secretary of State
for India.
In 1894 James Grundy was appointed as first Inspector of Mines in
India who recommended provisions to be made for min. age of
employment, first-aid, management & supervision etc..
Two major disasters at Kolar Gold Field In 1897 & Khost Coal Mine
Baluchistan 1898 expedited the finalization of first Mines Act enacted
on March 22, 1901, which was applicable only in mines situated in
British India. A BUREAU OF MINES INSPECTION (later termed
Department Of Mines) was started in Calcutta with one chief
inspector & two Inspectors of Mines, who were entrusted with
enforcement of Mines Safety Legislation.

Mine Act was re-enacted on 1 July 1923 subsequently amended in 1928 &
1935.
In 1951, Mine Act was applicable throughout India. Although Mines Act
had been amended from time to time the general framework had remained
same until 1952 .
The new Mines Act came into force from 1
st
July 1952
New provision under the Act were:
New definition of mine was given
Provision of ambulance, first aid, drinking water & other medical facilities
Payment of overtime wages
Grant of leaves with wages etc

The Act was amended in 1959 and enforced from 16
th
Jan 1960 to make it more
effective. The amended act:
Gives detailed definition of mine.
Liberalizes provisions relating to leave with wages.
Enhances penalties against contravention etc..
A new set of Coal Mines Pithead Bath Rules, Mines Crche Rules & Coal Mines
Rescue Rules were framed to provide additional facilities.
Later Mines & Minerals (Regulation and Development) Act 1957 & Mineral
Conservation and Development Rules 1958 . They are enforced by the Office of
the Indian Bureau of Mines.
The Act lists number of specified minerals for grant / renewal of whose
prospecting license or mining lease approval of Central govt. is essential etc.
Mineral Concession Rules 1960framed under Mines & Minerals (Regulation and
Development) Act 1957 came into force in 1960 to regulate the grant of mineral
concessions etc

The industrial sector in India consists of three sub-sectors:
(i) Manufacturing,
(ii) Mining and quarrying and
(iii) Electricity, gas and water supply.
Though minerals account for a small share of the countrys production, their
supply is essential for the development of Indias modern economy. They are
basic and strategic raw materials for the production of a wide range of
industrial and consumer products, military and transport equipment,
infrastructure, energy, communications and many other essential services.
Economic minerals, i.e. the minerals that can be marketed for productive
purposes can be classified into three categories:-
(i) Energy or fuel minerals (coal, gas, oil, uranium);
(ii) Metallic minerals: Ferrous (iron ore, chrome ore, titanium); basic metals
(bauxite and copper) and precious (gold, silver, platinum); and
(iii) Non-metallic minerals (diamond, gems , salt, bricks and stones)
Both public and private sector enterprises are involved in mineral development
in I ndia.

PUBLIC SECTOR
Coal mining companies are almost exclusively government-owned with
Coal India Ltd.
Neyvelli Lignite Corporation is involved in lignite mining along with
production of power.
Steel Authority of India (SAIL), National Mineral Development
Corporation Ltd. (NMDC), National Aluminum Company Ltd. (NALCO),
Manganese Ores India Ltd. (MOIL), and Hindustan Copper Ltd. (HCL) are
the other major (central) public sector companies engaged in mining
operations.
There are state government-owned public sector companies like the Orissa
Mining Corporation (OMC) and the Andhra Pradesh Mining Development
Corporation which play a significant role in mineral development
The PRIVATE SECTOR is also dominated by a few large companies
although in terms of sheer number small mines occupy a disproportionately
a large space in Indias mineral sector. Tata Steel, the Vedanta group of
companies comprising Vedanta Resources, Sesa Goa Ltd., Sterlite
Industries (India) Ltd., BALCO and Hindustan Zinc Ltd., and Hindalco
I ndustries Ltd. are the major companies in the private sector. Some of
these companies are also producers of metal products and carry on mining
operations as adjunct or captive to their metallurgical industries.
Many moderately large companies such as Ambuja Cement, Century
Cement, the Associated Cement Company Ltd., Larsen and Toubro Ltd.;
Orissa Cement Ltd. and J.K. Cement are prominent in cement industry and
associated limestone mining.
GOVERNMENT BODIES ADMINISTERING MINING INDUSTRY
Ministry of Mines of Government of India responsible for administration
of mining laws in India.
Indian Bureau of Mines (IBM) Monitors & regulates mining activity
through processing & approving of mining plans & also advises
Government on matters with regard to mineral industry, export & import
policies, trade, mineral legislation & related matters.


PRIMARY LEGISLATION
REGULATING MINING IN INDIA
1. Mines Act 1952 (MA)
2. Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act)
Both the acts together with rules and regulations framed there under constitute the
basic laws governing the mining sector in India.
The Mines Act 1952 seeks to regulate the working conditions of labour in mines
by providing for the measures to be taken for their safety. To implement the
provisions of the Act, a number of rules and regulations have been framed by the
Central Government. These are the
Mines Rules (MR) 1955, The Coal Mines Regulations (CMR) 1957,
The Metalliferous Mines Regulations (MMR) 1961 and
The Maternity Benefits (Mines) Rules (MBR) 1963.
The health and safety of the workers is governed by the Mines Rules 1955. The
Director General of Mines Safety (DGMS) is responsible for enforcing the
provisions of the Mines Act. Similarly under MMDR Act rules framed are :
Mineral Concession Rules 1960 (MC Rules), Mineral Conservation and
Development Rules 1988 (MCD Rules), Granite Conservation & Development
Rules 1999, Marble Development & Conservation Rules 2002
Colliery Control Rules 2004

Draft : Mines and Minerals
(Development and Regulation) Bill 2011.
However, the emphasis so far has been mostly on creating new
institutional structures and providing additional regulatory powers to
bureaucrats who come to man these structures.
For example, the Draft Mines and Minerals (Development and
Regulation) (MMDR) Bill 2011 which, if approved by Parliament, will
replace MMDR Act 1957 as the countrys main mining law contains a
number of provisions seeking to create new institutional mechanisms for
addressing the problem of illegal mining.
The proposed legislation seeks to:
Create a National Mining Regulatory Authority with powers to
investigate and prosecute large scale, organized and inter-state illegal
mining (Section 69).
Similarly, a new State Mining Regulatory Authority in a mining
State will have powers to authorize investigation and prosecution in
cases of illegal mining of both major and minor minerals (Section 70),
Also, Statutory Coordination- cum- Empowered Committees are
proposed both at the Central and State levels to perform various
coordinating functions including prevention of illegal mining (Sections
102 and 103).
Finally, State Governments have been authorized to set up Special
Courts to expedite prosecution of illegal mining (Section 107).
Criticism
As has been mentioned earlier, these are all measures to create new
government institutions and do not address the substantive economic, social
and procedural considerations that motivate people to indulge in illegalities.
I n fact, multiplicity of institutions will further add to the confusion through
dilution of responsibilities and accountability.
The Draft Mines and Minerals (Development and Regulation) Bill 2011 is
designed to address the sectors problems including that of sustainable
mineral development. There are doubts if the proposed legislation will be able
to address the twin problems of increasing investment and bringing about
sustainable development in mining effectively.
OTHER LAWS AFFECTING MINING INDUSTRY
1. Enviornment protection statues:
Enviornment (Protection) Act 1986.
Forest (Conversation) Act 1980
Water (Prevention and Control of Pollution) Act 1974.
Air (Prevention & Control of Pollution) Act 1981
2. Labour related legislations:
Factories Act 1948
Industrial Disputes Act 1947
Workmans Compensation Act 1923
3. Health and safety laws:
Mines Act 1952
Mines Rules 1955
Metalliferous Mines Regulations 1961
Maternity Benefit (Mines) Rules 1963
Mines (Rescue) Rules 1985

INDIAN CONSTITUTION & MINING
Under Indias federal structure, the proprietary title to onshore minerals
vests in the constituent States; (on land)
the minerals situated in the offshore areas, on the other hand, are under
the exclusive control of the Central Government. (territorial waters,
continental shelves, exclusive eco. Zone
& other maritime zones of India, 14 nautical miles)
The Constitution of India, through various entries in the Union List
(List 1), State List (List II), and the Concurrent List (List III) included
in its Schedule VII assigns functions and legislative powers to both the
Centre and the states.
Predominance of the central governments powers in the area of regulation
of mines and mineral.
State List- Entry 23 empowers the state governments to make laws relating
to regulation of mines and mineral development subject to the provisions
of List with respect to regulation and development under the control of
the Union.
Union List- Entry 54 dealing with the same subject empowers the central
government to make laws relating to the regulation of mines and mineral
development to the extent to which such regulation and development
under the control of the Union is declared by Parliament by law to be
expedient in the public interest.
The conditionalities outlined in clauses (1)-(3) of Article 246 of the
Constitution, which deals with the law-making powers of the
Parliament and the State legislatures and the formulation of the two
entries of Schedule VII, referred to earlier, leave no doubt about the
predominance of the central governments powers in the area of
regulation of mines and mineral development.
The Mines and Minerals Development and Regulation (MMDR) Act
1957, enacted by the Parliament in pursuance of this power, confers the
right to allow exploitation of minerals by way of granting licenses and
leases on the state governments, but in accordance with the provisions
of the (MMDR) Act and its Rules which require mandatory prior
approval of the central government for the grant of such licenses and
leases.
In fact, with respect to major minerals (known as Schedule 1 minerals),
the states have little powers except possession, receiving royalty and a few
other payments.
Even in respect of royalty and associated rent, the rates are prescribed by
the Central Government under the relevant legal provisions of the MMDR
Act 1957.
Only with respect to minor minerals, the states can make their own rules
and regulations.

Additionally, the Constitution confers legislative powers on the
CENTRAL GOVERNMENT for the regulation and development of oil
fields, mineral oil reserves, petroleum and petroleum products
and safety of mines and oil fields as also for the Geological
Survey of India which is the premier public sector agency for
undertaking geological surveys in the country -Entries 53, 55, and 68
of the Union List List .
THE MINES ACT 1952
Different Authorities under the Act.
Committees under the Mining Act, powers and
functions.
Penalties under the Act.


APPLICATION & DEFINITIONS
Sec 1 (2)- The Act extends to whole of India.
Sec 2- Definitions:-
(d) "Chief Inspector" means the Chief Inspector of Mines appointed under
this Act;
(e) "Committee" means a committee constituted under section 12;
(f) "day" means a period of twenty-four hours beginning at midnight;
(g) "District Magistrate" means, in a presidency-town, the person appointed
by the Central Government to perform the duties of a district magistrate under
this Act in that town;
(i) "Inspector" means an Inspector of Mines appointed under this Act, and
includes a district magistrate when exercising any power or performing any
duty of an Inspector which he is empowered by this Act to exercise or
perform;
(j) "MINE" means any excavation where any operation for the purpose
of searching for or obtaining minerals has been or is being carried on
and includes-
i. all borings, bore holes, oil wells and accessory crude conditioning plants
including the pipe conveying mineral oil within the oilfields ;
ii. all shafts, in or adjacent to and belonging to a mine, whether in the course
of being sunk or not;
iii. all levels and inclined planes in the course of being driven;
iv. all open cast workings;
v. all conveyors or aerial ropeways provided for the bringing into or removal
from a mine of minerals or other articles or for the removal of refuse
therefrom;
vi. all adits, levels, planes, machinery, works, railways, tramways and sidings
in or adjacent to and belonging to a mine;
(vii) all protective works being carried out in or adjacent to a mine;
(viii) all workshops and stores situated within the precincts of a mine and under
the same management and used primarily for the purposes connected with the
mine or a number of mines under the same management;
(ix) all power stations, transformer sub-stations, convertor stations, rectifier
stations and accumulator, storage stations for supplying electricity solely or
mainly for the purpose of working the mine or a number of mines under the
same management;
(x) any premises for the time being used for depositing sand or other material
for use in a mine or for depositing refuse from a mine or in which any
operations in connection with such sand, refuse or other material is being carried
on, being premises exclusively occupied by the owner of the mine;
(xi) any premises in or adjacent to and belonging to a mine on which any
process ancillary to the getting dressing or preparation for sale of minerals or of
coke is being carried on;
(jj) "MINERALS" means all substances which can be obtained from the
earth by mining, digging, drilling, dredging, hydraulicing quarrying or
by any other operation.
(kk) "OPEN CAST WORKING" means a quarry, that is to say, on
excavation where any operation for the purpose of searching for or
obtaining minerals has been or is being carried on, not being a shaft
or an excavation which extends below super adjacent ground;

DIFFERENT AUTHORITIES UNDER
THE ACT
Inspectors and Certifying Surgeons
(Sec 5-11)

Sec 5: Chief Inspector & Inspector-
(1) Central govt. may by notification in Official gazette appoint a person
with prescribed qualification to be C.I of Mines for all territories to
which this Act extends & subordinate to C.I. Inspectors of Mines.
C.I. must be holder of degree or an equivalent qualification in
Mining Engineeering & first class manager certificate.
The Inspectorate consists of following:-
a. Mining Inspectors.
b. Mechanical inspectors
c. Electricity inspectors- to enforce application of electricity act &
Indian electricity rules.
d. Medical inspectors
e. Statistical wing- to compile various mining safety statistics.
f. Survey section
g. Law section
h. Examination section
(2)Any of the above officials must not be directly/indirectly interested
in any mine/mining rights in India.
(3)District magistrate may exercise powers & perform duties of
Inspector subject to general /special orders of central govt but in any
case shall not exercise powers of Sec. 22/22A(power to prohibit
employment in certain cases)/61(bye laws)
(4) Both C.I. & Inspectors shall be Public servants within meaning of
I.P.C.
Sec 6- Functions Of Inspectors-
C.I. may with approval of central govt. subject to restrictions as think fit
in written order authorize any inspector to exercise his i.e C.I. powers.
C.I. may prohibit or restrict power of any Inspector conferred under this
act.
C.I. shall declare local areas within which/groups of mines with respect to
which Inspectors shall exercise their powers.

Sec 7- Powers of Inspectors of Mines-
The C.I. & Inspectors of Mines is vested with the power to EXAMINE,
INQUIRE, SEARCH & SEIZE as well as to file a complaint for any
offence committed under the provisions of the Act- H.S Sachdeo v.
State of M.P.,1974.
The Provisions of Cr. P.C.,1973 shall as far as may be applicable, apply to
any search or seizure under this act as they apply u/s 94 of Code (Search
of place suspected to contain stolen property, forged documents etc..)
THE ROLE & FUNCTIONS MAY BE SUMMARIZED AS:
Regulatory- Inspection of mines to check compliance with safety laws,
enquires into accidents and complaints;
Developmental- Granting of statutory permissions for mining operations
& approval of the mining equipment's.
Advisory- Expert advice tendered to govt. on safety legislation & mining
matters and to mine managements on improvements of safety standards.
Examinations- Conduct of statutory examinations for grants of
competency certificates to the managerial & supervisory personnel, and
medical fitness certificate.
Sec 8 Powers of Special officers to enter, measure etc..-
Any person in govt. service can be duly authorized in this behalf by special
order in writing by C.I/any Inspector for purpose of surveying/
leveling/measuring any mine after giving at least 3 days notice to manager
can exercise same powers at any time of day/night.
Sec 9- Facilities to be afforded to Inspectors-
Every owner, agent & manager of mine shall afford above mentioned
officials all reasonable facilities for making entry, inspection, survey,
measurement, examination or inquiry under this act.
Safety and Occupational Health Survey in Mines
Under Sec 9 A, C.I. /Inspector or other officer authorized by him in writing,
may at any time during normal working hrs. of the mine/ any time of day or
night, undertake safety & occupational health survey in a mine after giving
notice in writing to manager of mine who shall facilitate for
Examination & testing of plant & machinery.
Collection of samples & other data pertaining to the survey.
Transport & examination of any person employed in mine chosen for survey.

(2) every person chosen for survey shall furnish all information regarding his work &
health in connection with said survey.
(3) The time spended for survey shall be counted towards his working time, if
required overtime shall be also paid.
(4) If any person found medically unfit to discharge his duty shall immediately will
undergo the treatment at cost of management with full wages.
(5) If after treatment if person declared unfit for work he was discharging earlier, the
mine management shall provide such person alternative employment for which
medically fit.
In failure to provide alternative work shall be paid disability allowance.
If person desires to leave mine employment shall be paid lump- sum amount by way of
disability compensation.
(6) The rates for above shall having regard to monthly wages of the employees, nature
of disability & other related factors.
The above provisions shall not operate to the prejudice to any law or any terms of any
award, agreement or contract of service which provides for more favorable benefits
than disability allowances/disability compensation, such person shall be entitled to
such benefits.

Conclusion:
Inspectorate should not only point out practice & methods which they are
following is dangerous but should also indicate possible alternative methods can
be eliminated / reduced.

Secrecy of Information obtained
Sec 10 states:
1) All copies, extracts, registers or records pertaining to any mine & all
other information acquired by C.I / Inspector/ person authorized in
exercise of duties, shall not be disclosed to any person or authority unless
they consider necessary to disclose to ensure health, safety or
welfare of any person employed in mine.
If any information disclosed without consent of central govt. be punishable
with imprisonment which may extend to one yr, fine or both.
No court shall proceed to trial of any offence under this section except with
previous sanction of central govt.
(2) But they can disclose of any such information if so required to:
Any court
Committee / Court of Inquiry constituted or appointed u/s 12 or s. 24.
An official superior, owner, agent or manager of mine concerned
Commissioner for Workmens compensation appointed under Workmens
compensation Act 1923
Controller , Indian Bureau of mines;
Any registered or recognised trade union
Any such officer, authority or organisation as may be specified in this behalf by
central government.
Certifying surgeons/ Medical officer
(Sec 11 of Act 1952; Rule 23- 29 of Mines Rules 1955)
Sec 11:
1. Central govt. may appoint qualified medical practitioners to be
certifying surgeons for purposes of this Act within such local limits / for
such class or description of mines;
2. Such medical practitioner can authorize any medical practitioner to
exercise all/any his powers with approval of central govt for specific
period.
3. But if any such surgeon becomes owner, agent, manager of mine or
in/ directly interested therein cannot be appointed.

4. Rule 25,-27 & 29 OMITTED in 1986 now only Rule 23, 24,28 .

1. Powers of Certifying Surgeons- Rule 23
2. He may within local limits of his jurisdiction make such
inspection examination or inquiry as he thinks fit for the purpose of
the Act & its duties of authorities of such mine to provide all
facilities to surgeon.

Duties of Certifying Surgeons- Rule 24
1. On receipt of reference u/s 43 (1) of Act 1952 if Inspector is of opinion
that any person employed is not apprentice or trainee and below 16 yrs,
Inspector may serve notice to manager requiring such person to be
examined by certifying surgeon. The surgeon shall give prior notice
regarding date, time, place for medical examination & upon
examining the person sent for such examination, prepare the age &
fitness certificate & deliver same to the manager of mine retain copy
of same.
2. Upon request of C.I. / Inspector carry out such examination &
furnish him with such report as case may indicate in respect of
any mine in which operations involve any risk of injury to health
of employees.
3. Fresh Examination- Rule 28
4. If any person certified unfit by C. Surgeons, shall not without
permission by Inspector in writing, be send to other surgeon for
another medical examination unless period of 6 mths. elapsed
from time when he was sent up for medical examination.
5. Any certificate obtained in contravention shall be VOID.

THE MINES ACT 1952

Committees under the Mining Act-
powers and functions
Chapter III Sec. 12- 15;
Rule 3-20 of Mines Rule 1955

COMMITTEES SEC. 12; Rule 3-7
The central govt. by notification in Official gazette constitute
committee consisting of:
a. Person in service of government not being C.I or Inspector-
Chairman
b. Chief inspector of Mines- one of which at-least shall be
representing interests of owners of coal mine.
c. 2 person to represent interest of miners- one of which must
represent interest of coal mine workers.
d. 2 person to represent interest of owners of mines
e. 2 qualified mining engineers not directly employed in mining
industry.
Central govt. may constitute one or more committees to deal with
specific matters relating to any pat of territory.
No act or proceeding of Committee shall be invalid by reason of
existence of vacancy or any defect in constitution thereof.

Rule 3- Term Of Office Of Members (c)-(e) shall be 3 yrs. But can continue
to hold office until appointment of successor.
Rule 4- Chief inspector may nominate an Inspector of Mines who shall act as
Secretary of Committee.
Rule 5- Members receive such honorarium as central govt. may fix.
Rule 7- Resignation-
A member may resign by writing under his hand addressed to chairman.
Chairman can resign addressing to Central govt.
It takes effects from day of acceptance or on expiry of 30 days of receipt
whichever is earlier.
FUNCTION OF COMMITTEE- SEC 13
1. Committee shall consider proposals for making rules & regulations
under the Act & make appropriate recommendations to central govt.
2. Enquire into such accidents /other matters as referred by central
govt. from time to time & make reports.
3. Hear & decide such appeals or objections against notices or orders
under Act OR regulation, rule, bye-laws thereunder
4. Chief inspector shall not take part in any proceedings of committee
with respect to appeal/objection against order/notice issued by
him.

POWERS OF COMMITTEE- SEC 14
It may exercise powers of Inspectors under the Act as it thinks
necessary or expedient to exercise for the purposes of discharging its
functions
It has same powers as vested in court under C.P.C when trying suit
in respect of following matters:
1. Discovery & inspection
2. Enforcing attendance of any person & examining him on oath
3. Compelling production of documents
4. Such other matters as may be prescribed.

RECOVERY OF EXPENSES- Sec 15
Central govt may direct that Expenses of any inquiry conducted by a
committee shall be borne in whole/ part by owner or agent of mine.
In failure by sale of any movable property within limits of magistrates
jurisdiction may be directed to be paid

OTHER RULES (Committees)- 8-20
Rule 8 Absence from India-
If any member is leaving India shall intimate to chairman & if leaving more
than 6 mths has to tender his resignation.
If leaves without intimation shall deemed to have resign.
Rule 9- Notification of vacancies-
Chairman shall inform Central govt as soon as vacancy occurs by
resignation /death.
In case of vacancy occurring because of death of chairman the C.I or
Inspector appointed to Board by central govt. shall inform central govt.
Rule 10- Disposal of Business:
All questions which Committee required to consider shall be considered
either at
its MEETING or
by CIRCULATION OF PAPERS- in such case if more than 3 members
wants such matter can be discussed in meeting.
RULE 11- Time & Place of Meetings- As appointed by CHAIRMAN.

Rule 12- Notice of Meetings-
The secretary shall give 14 days notice to every member of time & place
fixed along with agenda seen days in advance.
In case of urgent meeting 2 days notice required.
Rule 13- Presiding of meetings-
Chairman shall preside over the meeting.
In his absence members present shall elect one of them to preside
over meeting who will exercise chairman powers.
Rule 14 Quorum:
No business shall be transected at meeting unless atleast 4 members are
present
Rule 15- Decision of Majority:
All decisions in meeting shall be taken with majority. In case of equal votes
Chairman exercise additional vote..
Any member disagreeing with decision of committee may enter note of
dissent which shall become part of record of proceedings.
Rule 16- Minutes of Meetings:
Secretary shall circulate to all members after getting signature by chairman.
Rule 17- Allowances to non- official members.
Travelling & daily allowances of all non- official members shall be regulated
in acc. with central govt.
Rule 18- Correspondence & Accounts-
The secretary shall conduct all correspondence of committee & keep its
account.
Rule 19- Appearance at hearings
Any appearance to be made before committee may be either in person
or by agent or by legal practitioners on his behalf except for witness.
Rule 20- Proceedings to be in camera:
Unless chairman otherwise directs, proceedings of committee shall be
regarded as confidential

PENALTIES AND PROCEDURE
Mines Act 1952
Chapter IX : Sec. 63-81
OBSTRUCTION - SEC. 63
(1) Whoever obstructs the Chief Inspector and inspector or any person
authorised in the discharge of his duties or refuses or willfully neglects to
afford any reasonable facility for making any entry, inspection,
examination or inquiry in relation to any mine shall be punishable with
imprisonment of a term which may extend to three months, or with fine
which may extend to five hundred rupees, or both.
(2) Whoever refuses to produce on the demand of the Chief Inspector or any
registers or other documents kept in pursuance of this Act or prevents or
attempts to prevent or does any thing which he has reason to believe to
be likely to prevent any person from appearing before or being
examined by an inspecting officer acting in pursuance of his duties
under this Act, shall be punishable with fine which may extend to three
hundred rupees.
FALSIFICATION OF RECORDS SEC 64
Whoever
(a) counterfeits, or knowingly makes a false statement in any certificate, or any
official copy of a certificate, granted under this Act, or
(b) knowingly uses as true any such counterfeit or false certificate,
(c) makes or produces or uses any false declaration, statement or evidence
knowing the same to be false for the purpose of obtaining for himself or for any
other person a certificate or the renewal of a certificate under this Act, or any
employment in a mine, or

(d) falsifies any plan, section, register or record, the maintenance of which is
required by or under this Act or produces before any authority such false plan,
section, register or record, knowing the same to be false or;
(e) makes, gives or delivers any plan, return, notice, record or report containing a
statement, entry or detail which is not to the best of his knowledge or belief true,
shall be punishable with imprisonment for a term which may extend to three
months or with fine which may extend to one thousand rupees or with both.
USE OF FALSE CERTIFICATES OF FITNESS SEC 65
Whoever knowingly uses or attempts to use as a certificate of fitness
granted to himself under section 43 a certificate granted to another
person under that section, or having been granted a certificate of
fitness to himself under that section, knowingly allows it to be used, or
allows an attempt to use it to be made by another person shall be
punishable with imprisonment for a term which may extend to one
month, or with fine which may extend to two hundred rupees, or with
both.
OMISSION TO FURNISH PLANS ETC.- SEC 66
Any person who, without reasonable excuse the burden of providing
which shall lie upon him, omits to make or furnish in the prescribed form
or manner or at or within the prescribed time any plan, section return,
notice, register; record or report required by or under this Act to be made
or furnished shall be punishable with fine which may extend to one
thousand rupees.

CONTRAVENTION OF PROVISIONS REGARDING EMPLOYMENT
OF LABOUR SEC 67
Whoever, save as permitted by section 38 ( in emergency/ accident
can employ),
Contravenes any provision of this Act or
Of any regulation rule, bye-law or of any order made thereunder
prohibiting restricting or regulating the employment or presence of
persons in or about a mine
shall be punishable with imprisonment for a term which may extend to
three months, or with fine which may extend to one thousand
rupees, or with both.
PENALTY FOR EMPLOYMENT OF PERSONS BELOW EIGHTEEN
YEARS OF AGE-SEC 68
If a person below eighteen years of age is employed in a mine in
contravention of section 40, the owner, agent or manager of such
mine shall be punishable with fine which may extend to five
hundred rupees.

FAILURE TO APPOINT MANAGER SEC 69

Whoever, in contravention of the provisions of section 17, fails to
appoint a manager shall be punishable with imprisonment for a term
which may extend to three months or with fine which may extend
to two thousand and five hundred rupees, or both.
NOTICE OF ACCIDENTS :SEC 70
Whoever in contravention of section 23 (1) fails to give notice of any
accidental occurrence or to post a copy of the notice on the special
notice board referred to in that sub-section and to keep in there for the
period of 14 days shall be punishable with imprisonment for a term
which may extend to three months, or with fine which may extend to
five hundred rupee or with both.
Whoever in contravention of a direction made by the Central
Government under section 23(3) fails to record in the prescribed
register to give notice of any accidental occurrence shall be punishable
with imprisonment for a term which may extend to three months or
with fine which may extend to five hundred rupees, or with both.

OWNER ETC. TO REPORT TO CHIEF INSPECTOR IN CERTAIN
CASES- SEC 71
Where the owner, agent or manager of a mine, as the case may be, has taken
proceeding under this Act against any person employed in or about a mine in
respect of an offence under this Act, he shall within twenty-one days from the
date of the judgement or order of the court report the result thereof to the
Chief I nspector.

OBLIGATIONS OF PERSONS EMPLOYED IN A MINE SEC. 72
No person employed in a mine shall --
a) willfully interfere with or misuse any appliance convenience of other thing
provided in a mine for the purpose of securing the health, safety or welfare of
the person employed therein.
b) willfully and without reasonable cause do any thing likely to endanger himself
of others;
c) willfully neglect to make use of any appliance or other thing provided in the
mine for the purpose of securing the health or safety of the persons
employed therein.
SPECIAL PROVISION FOR CONTRAVENTION OF CERTAIN
REGULATIONS SEC 72 A
Whoever contravenes any provision of any regulations or of any bye-
law or any order made thereunder, relating to matters specified in
Sec.57 (Power of central govt. to make regulations)
(d),(I),(m),(n),(o),(p),(r),(s)&(u) of

shall be punishable with imprisonment for a term which may extend to
six months or with fine which may extend to two thousand rupees
or with both.
SPECIAL PROVISION OF CONTRAVENTION OF ORDER UNDER
SECTION 22- Sec 72- B
Whoever continues to work in a mine in contravention of any order
issued under section 22 (1A), (2) (3)OR section 22 A (2)shall be
punishable with imprisonment for a term which may extend to two
years and shall also be liable to fine which may extend to five
thousand rupees.

Both the above sections deals with prohibition of employment in
certain cases i.e danger of life, accident, explosion breakage,
leakage etc.
SPECIAL PROVISION FOR CONTRAVENTION OF LAW WITH
DANGEROUS RESULTS- SEC 72
1) Whoever contravenes any provision of the Act or of regulation, rule or bye-
law or of any order made under section 22 (1A),(2)(3) OR section 22A
(2)shall be punishable:
a) If such contravention results in loss of life, with imprisonment which may
extend to two years, or with fine which may extend to five thousand rupees,
or with both, or
b) If such contravention results in serious bodily injury with imprisonment
which may extend to one years, or with fine which may extend to three
thousand rupees, or with both;
c) If such contravention otherwise causes injury or danger to persons
employed in the mine or other persons in or about the mine, with
imprisonment which may extend to three months or with fine which may
extend to one thousand rupees, or with both.
(2) Where a person having been convicted under this section is again
convicted thereunder, shall be punishable with double the punishment
provided by sub-section (1).
(3) Any court imposing or confirming in appeal, revision or otherwise a
sentence of fine passed under this section may, when passing judgement, order
the whole or any part of the fine recovered to be paid as compensation to the
person injured or, in the case of his death, to his legal representative;
Provided that if the fine is imposed in a case which is subject to appeal no such
payment shall be made before the period allowed for presenting the appeal
has elapsed of, if an appeal has been presented, before the decision of the appeal.
GENERAL PROVISION OF DISOBEDIENCE OF OTHERS- SEC 73
Whoever contravenes any provision of this Act or of any regulation,
rule or bye-laws or of any order made thereunder for the contravention
of which no penalty is herein before provided shall be punishable with
imprisonment for a term which may extend to three months, or with
fine which may extend to one thousand rupees, or with both.

ENHANCED PENALTY AFTER PREVIOUS CONVICTION SEC 74
If any person who has been convicted for an offence punishable under
any of the foregoing provisions (other than section 72B and 72C) is
again convicted for an offence committed within two years of the
previous conviction and involving a contravention of the same
provision, he shall be punishable for each subsequent conviction with
double the punishment to which he would have been liable for the first
contravention of such provision.
Prosecution of owner, agent or manager Sec 75
No prosecution shall be instituted against any owner, agent or manager for
any offence under this Act except at the instance of the Chief Inspector or of
the District Magistrate or of an Inspector authorised in this behalf by
general or special order in writing by the Chief Inspector.

Provided that the Chief Inspector or the District Magistrate or the Inspector
as so authorised shall, before instituting such prosecution, satisfy himself
that the owner, agent or manager had failed to exercise all due diligence to
prevent the commission of such offence.

Provided further that in respect of an offence committed in the course of
the technical direction and management of a mine, the District Magistrate
shall not institute any prosecution against an owner, agent or manager
without the approval of the Chief Inspector.
DETERMINATION OF OWNER IN CERTAIN CASES SEC 76
Where the owner of a mine is firm or other association of individuals, all, or any
of the partners or members thereof or where the owner of a mine is a company; all
or any of the directors thereof where the owner of a mine is a Government or any
local authority, as the case may be, to manage the affair of the mine, may be
prosecuted and punished under this Act for any offence for which the owner of a
mine is punishable:
Provided that where a firm, association or company has given notice in writing to
the Chief Inspector that it has nominated -
a) in the case of a firm, any of its partners or managers:
b) in the case of an association, any of its members or managers;
c) in the case of a company any of its directors or managers.

Who is resident in each case in any place to which this act extends and who is in
each case either in fact in charge of the management or holds the largest number of
shares in such firm, association or company, to assume the responsibility of the
owner or the mine for the purposes of this Act, such partner, member, director or
manager, as the case may be, shall, so long as he continues to so reside and be in
charge or hold the largest number of shares as aforesaid, be deemed to be the
owner of the purposes of this Act unless a notice in writing canceling his
nomination or stating that he has ceased to be a partner, member, director or
manager as the case may be, is received by the Chief Inspector.

Explanation :- Where firm, association or company has different establishment or
branches or different units in any establishment or branch, different persons may
be nominated under this proviso in relation to different establishment or branches
or units and the person so nominated shall, with respect only to the establishment,
branch or unit in relation to which he has been nominated, deemed to be the owner
of the mine.
Exemption of owner, agent or manager in certain cases Sec 77
Where the owner, agent or manager of a mine, accused of an offence under this
Act, alleges that another person is the actual offender, he shall be entitled, upon
complaint made by him in this behalf and on his furnishing the known address of
the actual offender and on giving to the prosecutor not less than three clear days
notice in writing of his intention to do so, to have that other persons brought
before the court on the date appointed for the hearing of the case; and if after the
commission of the offence has been proved, the owner, agent or manager of the
mine, as the case may be proves to the satisfaction of the court -
a) that he has used due diligence to enforce the execution of the relevant
provisions of this act, and
b) that the owner person committed the offence in question without his
knowledge, consent or connivance, the said other person shall be convicted
of the offence and shall be liable to the like punishment as if he were the
owner, agent or manager of the mine and the owner, agent or manager, as
the case may be, shall be acquitted,
Provided that
a) the owner, agent or manager of the mine as the case may be,
may be examined on oath and his evidence and that of any
witness who he calls in support shall be subject to cross
examination by or on behalf of the person he alleges as the
actual offender and by the prosecutor.
b) If inspite of due diligence the person alleged as the, actual
offender cannot be brought before the court on the date
appointed for the hearing of the case, the court shall adjourn
from the hearing thereof from time to time so however that the
total period of such adjournments does not exceed three
months, and if by the end of the said period the person alleged
as the actual offender cannot be brought before the court, the
court shall proceed to hear the case against the owner, agent or
manager as the case may be.
POWER OF COURT TO MAKE ORDERS SEC 78

1. Where the owner, agent or manager of mine is convicted of an offence
punishable under this act, the court may in addition to awarding him any
punishment by order in writing require him within a period specified in the
order which may be extended by the court from time to time on application
made in this behalf to take such measures as may be so specified for
remedying the matters in respect of which the offence was committed.

2. Where an order is made under sub-section(1), the owner, agent or manager of
the mine, as the case may be, shall not be the liable under this Act in respect
of the continuance of the offence during the period or extended period, if any
but if on the expiry of such period or extended period the order of the court
has not been fully complied with the owner, agent or manager, as the case may
be, shall be deemed to have committed a further offence and shall be
punishable with imprisonment for a term which may extend to six months, or
with fine which may extend to one hundred rupees for every day after such
expiry on which the order has not been complied with, or with both.
LIMITATION OF PROSECUTIONS SEC 79
No court shall take cognizance of any offence under this Act, unless complaint
thereof has been made
i. within six months of the date on which the offence is alleged to have been
committed, or
ii. within six months of the date on which the alleged commission of the offence
came to the knowledge of the Inspector, or iia) In any case in which the
accused is or was a public servant and previous sanction of the Central
Government or of the State Government or of any other authority is necessary
for taking cognizance of the offence under any law for the time being in
force, within three months of the date on which such sanction is received by
the Chief Inspector; or
iii. in any case where a Court of inquiry has been appointed by the Central
Government under section 24, within one year after the date of the
publication of the report referred to in sub-section(4) of that section,
whichever is later.
Explanation - For the purposes of this section
a. In the case of continuing offence, the period of limitation shall be computed
with reference to every point of time during which the offence continues,
b. Where for the performance of any act time has been extended under this Act,
the period of limitation shall be computed from the expiry of the extended
period.
COGNIZANCE OF OFFENCES SEC 80
No court inferior to that of a Metropolitan Magistrate or Judicial Magistrate
of the first class shall try any offence under this Act which is alleged to have
been committed by any owner, agent or manager of a mine or any offence
which is by this Act made punishable with imprisonment.

REFERENCE TO COMMITTEE IN LIEU OF PROSECUTION IN
CERTAIN CASES SEC 81
1. If the court trying any case instituted at the instance of the Chief Inspector
or the District Magistrate or of an Inspector under this Act is of opinion
that the case is one which should, in lieu of a prosecution, be referred to a
Committee it may stay the criminal proceedings and report the matter to
the Central Government with a view to such reference being made.
2. On receipt of a report under sub-section(1) the Central Government may
refer the case to a Committee or may direct the court to proceed with the
trial.
Big business: Big fights
Steel; Aluminium; cement expected to grow at 9-10 per cent annually
in next 10 years;
Power plants on coal on high trajectory
Fights:
a. Between big players Indian and multinational only in the mining
area and between Indian players in integrated sectors steel makers
want integrated iron ore fields etc; between export and domestic value
addition;
b. Between public sector which has existing concessions and new
players who want the mining areas;
c. Between small, unorganised miners and big multinational miners;
Left out:
a. People who will be displaced
b. Environment and forest

Mines Rules 1955
Rule 29 B - Occupational Health of Workmen.
Rule 29 P - Annual Report on Radiological Results of Medical
Examinations
Rule 29 Q- Appointment of Workmen Inspectors.
Rule 30 Drinking water bottles for underground workers - 5-6
Ibs. water bottles to each worker employed underground.
3 litres per person employed in a mine where ever the wet bulb
temperature exceeds 30C.
Mines Rules 1955
Rule 37 - Approval of chemical closets as underground
latrines
Rule 40 - Provision of Ambulance VanThe arrangements
for Ambulance Van may be made providing an Ambulance Van
at the mine itself, or for a group of mines either collectively or
through a Central Agency like Coal/Mica Mines Welfare Fund
Organisation, State Govt. Agency, St. John Ambulance
Association etc.
Mines Rules 1955
Rule 42 First Aid Services
Rule 45 A - Record of Blood Grouping
Identity Cards to Workmen
Rule 62 - Rest shelters
Rule 72 - Appointment of Welfare Officers
Rule 75 - Proper maintenance of Attendance Register at mines
Rule 78 - Attendance of Labour Employed by Contractor
Rule 81 - Kit for determination of blood alcohol concentration


THE MINES AND MINERALS (REGULATION AND DEVELOPMENT)
ACT 1957, ACT 67 OF 19571
[28TH December, 1957.]
Object: An Act to provide for the regulation of mines and the
development of minerals under the control of the Union.
Declaration as to expediency of Union control - It is hereby declared
that it is expedient in the public interest that the Union should take
under its control the regulation of mines and development of minerals to
the extent hereinafter provided.

Definitions - In this Act unless the context otherwise requires,-
(a) minerals includes all minerals except mineral oils ;
(b) (b) mineral oils includes natural gas and petroleum ;
(c) mining lease means a lease granted for the purpose of undertaking mining
operation and includes a sub-lease granted for such purpose ;
(d) mining operations means any operations undertaken for the purpose of winning
any mineral;
1The Act has been extended to Goa, Daman and Diu by Regulation 12 of 1962 section3
and schedule to Dadra and Nagar Haveli by Regulation 6 of 1963, section 2 and
Schedule I and to Pondichery by Regulation 7 of section 3 and Schedule I.
21st June 1958 vide Notification No. G. S. R. 432 dated the 29th May 1958, see Gazette of
India 1953 Extraordinary, Part II, section 3(I), page 225.
(e) minor minerals means building stones gravel ordinary clay ordinary sand other
than sand used for prescribed purposes and any other mineral which the Central
Government may by notification in the Official Gazette declare to be a minor mineral;
(f ) prescribed means prescribed by rules made under this Act;
(g) prospecting licence means a licence granted for the purpose of undertaking
prospecting operations;
(h) prospecting operations means any operations undertaken for the purpose of
exploring locating or proving mineral deposits ;and
(i) the expressions mine and owner, have the meanings asigned to them in the
Mines Act, 1952.
General Restrictions on Undertaking Prospecting
and Mining Operations
4. Prospecting or mining operations to be under licence or lease
(1) No person shall undertake any prospecting or mining operations in any area except under
and in accordance with the terms and conditions of a prospecting licence or as the case may be a
mining lease granted under this Act and the rules made thereunder :
Provided that nothing in this Sub-section shall affect any prospecting or mining operations
undertaken in any area in accordance with the terms and conditions of a prospecting license or
mining lease granted before the commencement of this Act which is in force at such
commencement.
(2) No prospecting license or mining lease or mining lease shall be granted otherwise than in
accordance with the provisions of this Act and the rules made thereunder.
1[4A. Termination of mining leases
(1) Where the Central Government after consultation with the State Government is of opinion
that it is expedient in the interest of regulation of mines and mineral development so to do it
may request the State Government to make a premature termination of a mining lease in respect
of any mineral lease in respect of any mineral other than a minor mineral and on receipt of such
request the State Government shall make an order making a premature termination of such and
granting a fresh mining lease in favour of such Government company or corporation owned or
controlled by Government as it may think fit.
(2). Where the State Government after consultation with the Central Government is of opinion
that it is expedient in the interest of regulation of mines and mineral development so to do it
may by an order make premature termination of a mining lease in respect of any minor mineral
and grant a fresh lease in respect of such mineral in favour of such Government company or
corporation owned or controlled by Government as it may think fit.]
5. Restrictions on the grant of prospecting or
licenses or mining leases
(1) No prospecting licence or mining lease shall be granted by a State Government to any person unless he-
(a) holds a certificate of approval in the prescribed form from the State Government;
(b) produces from the Income-tax Officer concerned an income-tax clearance certificate in the prescribed form;
(c) satisfies such other conditions as may be prescribed.
Explanation.- For the purposes of this sub-section, a person shall be deemed to hold a certificate of approval
notwithstanding that at the time his certificate of approval has expired if an application for its renewal is pending
at that time.
1Section 4-A inserted by Act 56 of 1972, section 2.
(2) Except with the previous approval of the Central Government no prospecting licence or mining lease shall be
granted-
(a) as respects any mineral specified in the First Schedule; or
(b) to any person who is not an Indian national .
Explanation.- For the purposes of this sub-section, a person shall be deemed to be an Indian national-
(a) in the case of a public company as defined in the Companies Act, 1956, only if a majority of the directors of
the company are citizens of Indian and not less than fifty-one per cent of the share capital thereof is held by
persons who are either citizens of India or companies as defined in the said Act;
(b) in the case of a private company as defined in the said Act only if all the members of the company are citizens
of India;
(c) in the case of a firm or other association of individuals only if all the partners of the firm or members of the
association are citizens of India; and
(d) in the case of an individual only if he is a citizen of India.
6. Maximum area for which a prospecting licnce
of mining may be granted
- 1[(1) No person shall acquire in any one State in respect of any mineral or prescribed group of associated
minerals-
(a) one or more prospecting licences covering a total area of more than twenty-five square kilometers; or
1Substituted by Act 56 of 1972, section 3
(b) one or more mining leases covering a total area of more than tem square kilometers
Provided that if the Central Government is of opinion that in the interests of the development of any
mineral it is necessary so to do it may for reasons to be recorded by it in writing permit any person to acquire
one or more prospecting licences or mining leases covering an area in excess of the aforesaid total area ;
(c) any mining lease or prospecting licence in respect of an area which is not compact or contiguous ;
Provided that if the Central Government is of opinion that in the interests of the development of any
mineral it is necessary so to do it may for reasons to be recorded in writing permit any person to acquire a
prospecting licence or mining lease in relation to any area which is not compact or contiguous]
(2) For the purposes of this section a person acquiring by or in the name of another person a prospecting
licence or mining lease which is intended for himself shall be deemed to be acquiring it himself.
1[(3) For the purposes of determining the total area referred to in sub-section (1) the area held under a
prospecting licence or mining lease by a person as a member of a co-operative society company or other
corporation or a Hindu undivided family or a partner of a firm shall be deducted from the area referred to in
sub-section (1) so that the sum total of the area held by such person under a prospecting licence or mining
lease whethe as such member or partner or individually may not in any case exceed the total area specified
in sub-section (1) ].
1Sub section (3) inserted by Act 56 of 1972 section 3.
7. ********
8. Periods for which prospecting licences may be
granted or renewed
(1) - The period for which a prospecting licence may be granted shall not-
(a) in the case of mica, exceed one year ; and
(b) in the case of any other mineral exceed two years.
(2) A prospecting licence may be renewed for one or more periods each
not exceeding the period for which the prospecting licence was originally
granted if the State Government is satisfied that a longer period is
requied to enable the licencee to complete prospecting operations :
Provided that no prospecting licence granted in respect of a mineral
specified in the First Schedule shall be renewed except with the previous
approval of the Central Government.
(3) Notwithstanding anything contained in sub-section (2), if the Central
Government is of opinion that in the interests of mineral development it
is necessary so to do it may for reasons to be recorded authorise the
renewals of a mining lease for a further period or periods not exceeding
in each case the period for which the mining lease was originally granted.
9. Royalties in respect of mining leases
(1) The holder of a mining lease granted before the commencement of this Act shall
notwithstanding anything contained in the instrument lease or in any law in force at such
commencement pay royalty in respect of any 1[mineral removed or consumed by him or by
his agent manager employee contractor or sub-lessee] from the leased area after such
commencement at the rate for the time being specified in the Second Schedule in respect of
that mineral.
(2) The holder of a mining ease granted on or after the commencement of this Act shall pay
royalty in respect of any 1[mineral removed or consumed by him or by his agent manager
employee contractor or sub-lessee] form the leased area at the rate for the time being
specified in the Second Schedule in respect of that mineral.
2[(2A) The holder of a mining lease whether granted before or after the commencement of
the Mines and Mineral (Regulation and Development) Amendment Act, 1972, shall not be
liable to pay any royalty
in respect of any coal consumed by a workman engaged in a colliery provided that such
consumption by the workman does not exceed one-third of a tone per month].
(3) The Central Government may by notification in the Official Gazette amend the Second
Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of
any mineral with effect from such date as may be specified in the notification :
1Substituted for the words mineral removed by him by Act 56 of 1972 section 4.
2Sub-section 2-AS inserted by ibid.
1[Provided that the Central Government shall not enhance the rate of royalty in respect of
any mineral more than once during any period of four years.]
2[9A. Dead-rent to be paid by the lessee-
(1) the holder of a mining lease whether granted before or after the
commencement of the Mines and Minerals (Regulation and
Development) Amendment Act 1972 shall notwithstanding any thing
contained in the instrument of lease or in any other law for the time
being in force pay to the State Government every year dead rent at such
rate as may be specified for the time being in the Third Schedule for all
the areas included in the instrument of lease :
Provided that where the holder of such mining lease becomes liable
under section 9 to pay royalty for any mineral removed or consumed by
him or by his agent manager employee contractor or sub-lessee from
the leased area he shall be liable to pay either such royalty or the dead
rent in respect of that area whichever is greater.
(2) The Central government may by notification in the Official Gazette
amend the Third Schedule so as to enhance or reduce the rate at which
the dead rent shall be payable in respect of any area covered shall take
effect from such date as may be specified in the notification :
Provided that the Central Government shall not enhanced the rate of
the dead rent in respect of any such area more than once during any
period of four years.]
Procedure For Obtaining Prospecting Licences Or
Mining Leases In Respect Of Land In Which The
Minerals Vest In The Government
10. Application for prospecting licences or mining lease
(1) An application for a prospecting licence or a mining lease in
respect of any land in which the minerals vest in the Government
shall be made to the State Government concerned in the
prescribed form and shall be accompanied the prescribed fee.
1Proviso substituted by Act 56 of 1972.
2Section 9-A inserted by ibid.
(2) Where an application is received under sub-section (1) there
shall be sent to the applicant an acknowledgement of its receipt
within the prescribed time and in the prescribed form.
(3) On receipt of an application under this section the State
Government may having regard to the provisions of this Act and
any rules made thereunder grant or refuse to grant the licence or
lease.
11. Preferential right of certain persons
(1) Where a prospecting licence has been granted in respect of any land the licence shall have
a preferential right for obtaining a mining lease in respect of that land over any other person:
Provided that the State Government is satisfied that the licensee has not committed any
breach of the terms and conditions of the prospecting licence and is otherwise a fit person for
being granted the mining lease.
(2) Subject to the provisions of sub-section (1) where two or more persons have applied for a
prospecting licence or a mining lease in respect of the same land the applicant whose
application was received earlier shall have a preferential right for the grant of the licence or
lease as the case may be over an applicant whose application was received later :
Provided that where any such applications are received on the same day the State
Government after taking into consideration the matters specified in sub-section (3) may grant
the prospecting licence or mining lease as the case may be to such one of the applicants as it
may deem fit.
(3) The matters referred to in sub-section (2) are the following :-
(a) any special knowledge of or experience in prospecting operations or mining operations as
the case may be possesed by the applicant;
(b) the financial resources of the applicant;
(c) the nature and quality of the technical staff employed by the applicant;
(d) such other matters as may be prescribed.
(4) Notwithstanding anything contained in sub-section (2) but subject to the provisions of
sub-section (1) the State Government may for any special reasons to be recorded and with the
previous approval of the Central Government grant a prospecting licence or a mining lease to
an applicant whose application was received later in preference to an applicant whose
application was received earlier.
12. Registers of prospecting licences and mining leases
(1) The State Government shall cause to be maintained
in the prescribed form-
(a) a register of applications for prospecting licences;
(b) a register of prospecting licensees ;
(c) a register of applications for mining leases ; and
(d) a register of mining lessees;
in each of which shall be entered such particulars as
may be prescribed.
(2) Every such register shall be open to inspection by
any person on payment of such fee as the State
Government may fix.
Rules For Regulating The Grant Of Prospecting
Licences And Mining Leases
13. Power of Central Government to make rules in respect of minerals (1) The Central
Government may by notification in the Official Gazette make rules for regulating the grant of
prospecting licences and mining leases in respect of minerals and for purposes connected
therewith.
(2) In particular and without prejudice to the generality of the foregoing power such rules may
provide for all or any of the following matters, namely :-
(a) the person by whom and the manner in which applications for prospecting licences or
mining leases in respect of land in which the minerals vest in the Government may be made
and the fee to be paid therefor ;
(b) the time within which and the form in which acknowledgment of the receipt of any such
application may be sent;
(c) the matters which may be considered where applications in respect of the same land are
received on the same day;
(d) the persons to whom certificates of approval may be granted the form of such certificates
and the fees payable for the grant or renewal thereof;
(e) the authority by which prospecting licences or mining leases in respect of land in which
the minerals vest in the Government may be granted;
(f ) the procedure for obtaining a prospecting licence or a mining lease in respect of any land in
which the minerals vest in a person other than the Government and the terms on which and
the conditions subject to which such a licence or lease may be granted or renewed;
(g) the terms on which and the conditions subject to which any other prospecting licence or
mining lease may be granted or renewed;.
(h) the facilities to be afforded by holders of mining leases to persons deputed by the Government for the
purpose of undertaking research or training in matters relating to mining operations;
(i) the fixing and collection of dead rent fines fees or other charges and the collection of royalties in
respect of-
(i) prospecting licence.
(ii) mining leases.
(iii) Minerals mined, quarried, excavated or collected;
(j) the manner in which rights of third parties may be protected (whether by payment of compensation or
otherwise) in cases where any such party any be prejudicially affected reason of any prospecting or mining
operations ;
(k) the grouping of associate minerals for the purposes of section 6;
(l) the manner in which and the conditions subject to which a prospecting licence or a mining lease may be
transferred;
(m) the construction maintenance and use of roads power transmission liens tramways railways aerial
ropeways pipelines and the making of passages for water for mining purposes on any land comprised in a
mining lease;
(n) the form of registers to be maintained under this Act;
(o) the disposal or discharge of any tailings slime or other waste products arising from any mining or
metallurgical operations carried out in a mine;
(p) the reports and statements to be submitted by holders of prospecting licences or owners of mines and
the authority to which such reports and statements shall be submitted;
(q) the period within which applications for revisions of any order passed by a Stated Government or other
authority in exercise of any power conferred by or under this Act, may be made and the manner in which
such applications shall be disposed of; and
(r) any other matter which is to be or may be prescribed under this Act
1[13A. Power of Central Government to make rules for the grant
of prospecting licensies or mining leases in respect of territorial
waters or continental shelf of India
(1) The Central Government may by notification in the Official Gazette
make rules for the grant of prospecting licenses or mining leases in
respect of any minerals underlying the ocean within the territorial
water or the continental shelf of India.
(2) Without prejudice to the generality of the foregoing power such
rules may provide for all or any of the following matters namely-
(a) the conditions limitations and restrictions subject to which such
prospecting licenses or mining leases may be granted;
(b) regulation of exploration and exploitation of minerals within the
territorial waters of the continental shelf of India;
(c) ensuring that such exploration or exploitation does not interfere
with navigation ; and
(d) any other matter which is required to be or may be prescribed.]
14. Sections 4 to 13 not to apply to minor minerals - The provisions of
sections 4 to 13 (inclusive) shall not apply to 2[quarry lease mining
leases or other mineral concessions] in respect of minor minerals.
15. Power of State Governments to make rules in respect of minor
minerals-
(1) The State Government may by notification in the Official Gazette
make rules for regulating the grant of 3[quarry leases mining leases or
other mineral on cessions] in respect of minor minerals and for
purposes connected therewith.
1Section 13-A inserted by Act 56 of 172 section 5.
2Substituted for the words prospecting licenses and Measuring leases
by ibid section 7.
3Substituted for the words prospecting licenses and mining leases by
ibid section 8.
(2) Until rules are made under sub-section (1) any rules made by
a State Government regulating the grant of 1[quarry leases
mining leases or other minerals concessions] in respect of minor
minerals which are in force immediately before the
commencement of this Act shall continue in force.
(3) 2[(3) The holder of a mining lease or any other mineral
concession granted under any rule made under sub-section (1)
shall pay royalty in respect of minor minerals removed of
consumed by him or by his agent manager employee contractor
or sub-lessee at the rate prescribed for the time being in the rules
framed by the State Government in respect of minor minerals;
Provided that the State Government shall not enhance the rate of
royalty in respect of any minor mineral for more than once
during any period of four years.]
16. Power to modify mining leases granted before 25th
October, 1949.
(a) All mining leases granted before the commencement of the Mines and Minerals
(Regulation and Development) Amendment Act 1972 if in force at such commencement shall
be brought into conformity with the provisions of this Act and the rules made thereunder
within six months from such commencement or such further time as the Central Government
may by general or special order specify in this behalf .
(b) Where the rights under any mining lease granted by the proprietor of an estate or tenure
before the commencement of the Mines and Minerals (Regulation and Development)
Amendment Act 1972 have vested on or after then25th day of October 1949 in the State
Government in pursuance of the provisions of any Act of any Provincial or State Legislature
which provides for the acquisition of estates or tenures or provides for agrarian reform such
mining lease shall be brought into conformity with the provisions of this Act and the rules
made thereunder within six months from the commencement of the Mines and Minerals
(Regulation and Development) Amendment Act 1972 or within such further time as the
Central Government may buy general or special order specify in this behalf.]
1Substituted for the word Prospecting licenses and mining lease by Act 56 of 1972 section 8.
2Sub-section (3) inserted and shall be deemed always to have been inserted by ibid section 3
3Sub-section (1)substituted by ibid section 9.
(2) The Central Government may by notification in the Official
gazette make rules for the purposes of giving effect to the to the
provisions of sub-section (1) and in particular such rules shall
provide-
(a) for giving previous notice of the mo9dification or alteration
proposed to be made in any existing mining lease to the lessee
and where the lessor and for affording him an opportunity of
showing cause against the proposal;
(b) for the payment of compensation to the lessee in respect of
the reduction of any area covered by the existing mining lease;
(c) for the principles on which the manner in which and the
authority by which the said compensation shall be determined.
Special Powers Of Central Government To
Undertake Prospecting Or Mining Operations
In Certain Cases
17. Special powers of Central Government to undertake prospecting or mining
operations in certain lands
(1) The provisions of this section shall apply 1[* *] in respect of land in which the
minerals vest in the Government of a State 2[or any other person].
(2) Notwithstanding anything contained in this Act the Central Government after
consultation with the State Government may undertake prospecting or mining
operations in any area not already held under any prospecting licence or mining
lease and where it proposes to do so it shall by notification in the Official Gazette,-
(a) specify the boundaries of such area,
(b) state whether prospecting or mining operations will be carried out in the area ;
and
(c) specify the mineral or minerals in respect of which such operations will be
carried out.
1The word only omitted by Act 56 of 1972 section 10.
2the words or any other person inserted by ibid.
(3) Where in exercise of the powers conferred by sub-section (2)
the Central Government undertakes prospecting or mining
operation in any area the Central Government shall be liable to
pay prospecting fee royalty surface rent or dead rent as the case
may be at the same rate at which it would have been payable
under this Act if such prospecting or mining operations had
been undertaken by a private person under a prospecting licence
or mining lease.
(4) The Central government with a view to enabling it to exercise
the powers conferred on it by sub-section (2) may after
consultation with the State Government by notification in the
Official Gazette declare that no prospecting licence or mining
lease shall be granted in respect of any land specified in the
notification.
18. Mineral Development
(1) It shall be the duty of the Central Government to take all such steps as may be necessary for
the conservation and development of minerals in India and for that purpose the Central
Government may by notification in the Official Gazette make such rules as it thinks fit.
(2) In particular an without prejudice to the generality of the foregoing power such rules may
provide for all or any of the following matters namely-
(a) the opening of the new mines an the regulation of mining operations in any area;
(b) the regulation of the excavation or collection of minerals form any mine;
(c) the measures to be taken by owners of mines for the purpose of beneficiation of ores
including the provision of suitable contrivances for such purpose;
(d) the development of mineral resources in any area;
(e) the notification of all new borings an shaft sinkings and the preservation of bore-hole
records an specimens of all new bore-holes;
(f ) the regulation of the arrangements for the storage of minerals and the sticks thereof that
may be kept by any person;
(g) the submission of samples of minerals from any mine by the owner thereof and the
manner in which and the authority to which such samples shall be submitted; and the taking
of any mineral from any mine by the State Government or any other authority specified by it in
that behalf ; and
(h) the submission by owners of mines of such special or periodical returns and reports as may
be specified and the form in which and the authority to which such returns and reports shall
be submitted.
(3) All rules made under this section shall be binding on the Government.

Mines and water

Mines and forests
Understanding regulations
Environmental clearances: on what basis?
Public hearing: are people heard?
Forest clearance or forest compensation?
Environment management plan: who oversees? Who
plans? What are the institutions for this?
Mine restoration?
Watersheds? Is this anyones concern
MMR 1961
Regulation 6- Notice of abandoned or discontinuance not less than
30 days before such abandonment or discontinuance.
Regulation 7- Notice of reopening not less than 30 days before
resumption of mining operations.
Regulation 9- Notice of Accident
MMR 1961
Regulation 10 - Notice of Notified disease within three days of his
being informed of the disease, in Form V of First Schedule to the
District Magistrate, the Chief Inspector, the Regional Inspector and
the Inspector of Mines (Medical).
Regulation 30 - Validity of Foremans, Mates, Engine -drivers,
Blasters and Gas testing Certificates within five years.
Regulation 34 - Qualifications and appointment of managers
MMR 1961
Regulation Nil Appointment of Safety officer
Regulation 35. Appointment of assistant managers or underground
managers
Regulation 36. Appointment of engineers
Regulation 37. Appointment and qualifications of senior officials
Regulation 38. Appointment of surveyors
MMR 1961
Regulation 62. Copies of plans and sections to be submitted on or
before the 30
th
April of every year, submit to the Chief Inspector.
Regulation 63. Plans and sections to be submitted after abandonment
or discontinuance.
Regulation 119. Precautions against Fire
MMR 1961
Regulation 121. Equipment for fire-fighting (1) a sufficient supply of
sand or in combustible dust or sufficient portable fire extinguishers
shall be provided at every entrance to a mine, at every landing and
the bottom of every shaft or winze in use, at every engine room and
at every other place where timber, canvas, grease, oil or other
inflammable material is stored.
Regulation 122. Apparatus for testing for Carbon Monoxide In every
mine to which regulation 123 (1) and 142 apply there shall be kept at
the mine, constantly available for use, two or more suitable birds or
other means of detecting carbon monoxide gas approved by the
Chief Inspector.
MMR 1961
Regulation 124. Precautions against dust minimising of emissions of
dust and suppression of dust which enters the air at any work place
below ground or on surface.

Regulation 125. Precautions against irruption of gas Where any
working is extended to within 30 metres of any stoped -out area or
disused workings containing or likely to contain an accumulation of
inflammable or noxious gases, there shall be maintained at least one
bore-hole not less than 1.5 metres in advance of the working.
MMR 1961
Regulation 127. Danger from surface water
No workings shall be made in any mine vertically below (a) any part
of any river, canal, lake, tank or other surface reservoir; or
(b) any spot lying within a horizontal distance of 15 metres from
either bank of a river or canal or from the boundary of a lake, tank or
other surface reservoir;
Regulation 128. Danger from underground inundation. No working
which has approached within a distance of 60 metres of any disused
or abandoned workings (not being workings which have been
examined and found to be free from accumulation of water or other
liquid matter), whether in the same mine or in an adjoining mine,
shall be extended further except with the prior permission in writing
of the Chief Inspector.

MMR 1961
Regulation 129. Intentional flooding . (1) When the owner, agent or
manager intends or proposed, by introducing water from the surface or
from any other part of the mine or from an adjacent mine, to flood any
part of the workings of his mine, he shall give in writing not less than
14 days notice of such intention or proposal to the Chief Inspector
Regulation 131. Standard of ventilation. (1) It shall be the duty of the
owner, agent or manager of every mine to take such steps as are
necessary for securing that there is constantly produced ion all parts of
the mine belowground, ventilation adequate to clear away
smoke, steam and dust; to dilute gases that are inflammable or noxious
so as to render them harmless; to provide air containing a sufficiency of
oxygen; and to prevent such excessive rise of temperature or humidity
as may be harmful to the health of persons.
MMR 1961
Regulation 145. Appointment of Ventilation Officer.- In the case of any
mine having extensive workings below ground, if the Chief Inspector by
an order in writing so requires, the manager shall be assisted by a
Ventilation Officer, holding such qualification as the Chief Inspector
may specify in the order, who shall be responsible for supervising the
maintenance of the ventilation system of the mine in accordance with
the provisions of these regulations.
Regulation 146. General lighting .- (1) Adequate general lighting
arrangements shall be provided during working hours.

MMR 1961
Regulation 171. Use of certain machinery belowground. (1) No internal
combustion engine or steam boiler shall be used belowground in a mine
expect with the permission in writing of the Chief Inspector and subject
to such conditions as he may specify therein.
Regulation 182. Use, Supply maintenance of protective Footwear. (1) No
person shall go into a mine, unless he wears a protective footwear of such
type approved by the Chief Inspector.
Regulation 182A. Use and supply of helmet. (1) No person shall go into, or
work, in or be allowed to go into or work in, a mine, other than the
precincts of a mine occupied by an office building, canteen, creche, rest
shelter, first aid room or any other building of a similar
type, unless he wears a helmet of such type as may be approved by the
Chief Inspector.
MMR 1961
182B. Supply of other protective equipment. (1) Where is appears to
the Regional Inspector or the Chief Inspector that any person or class of
persons employed in a mine is exposed to undue hazard by reason of
the nature of his employment, he may, by a general or special order in
writing, require the owner, agent or manager of the mine to supply to
such person or class of persons, free of charge, gloves, goggles,
shinguards, or such other protective equipment as may be specified in
the order.

MMR 1961
Regulation 184. Man power Distribution Plan. During the first week
of every month a sketch plan showing the manpower distribution plan.
Regulation 190. Place of accident. the place of accident shall not be
disturbed or altered.

MMR 1961
Regulation 190A. Emergency plan. (1) The manger shall prepare a
general plan of action for use in time of emergency. The plan shall
outline the duties and responsibilities of each mine official and men
including the telephone operators, so that each person shall know his
duties in case fire, explosion or other emergency occurs. The emergency
plan shall also provide for mock rehearsals at regular intervals.

Health & Safety Issues
Key risks faced by miners:
Gas and coal dust exposure.
Mine roof and wall collapses.
Mine fires.

Fatal and serious accidents have steadily
deceased since 1972 (see table).

Between 1950-1961 the 10-yearly avg. death rate
per 1,000 people employed was 0.91. Between
1991-2000, figure dropped to 0.32.
Nationalization in 1970s.
Technological advancements, specifically the
mechanization of many tasks in the mining process (i.e.
mechanized roof bolting system, long wall miners,
etc).
Year Fatal Accidents Serious Accidents
Accidents Fatalities Accidents Injuries
1972 200 217 1534 1616
1975 222 664 2135 2211
1985 176 204 1007 1060
1993 156 176 854 903
1994 156 241 717 775
1995 137 219 757 813
1996 131 146 677 723
1997 143 165 677 725
1998 128 146 523 560
1999 127 138 595 650
2000 117 144 661 707
2001 106 141 667 720
2002 81 97 629 650
2003 83 113 563 578
2004 90 99 599 608
2005 34 35 340 344
Source: Government of India, Ministry of Coal.
Dr. Tabrez Ahmad
http://energylex.blogspot.in 113
The Mines Act and Development of Mine Safety
Legislation in India.
Development of Mines Safety Legislation
Back ground
Mineral is important for development of a nation
India is endowed with rich mineral deposits
Today India is one of the leading countries in
production of coal, iron ore, bauxite and other
minerals.
About one million persons are engaged in mining
industry

Background
At present India produces 87 minerals
Mineral sector is growing at a rate of about 7.5%
The contribution of mining sector to
Gross Domestic Product(at current price) for 2010-11 is
estimated as 2.51% of GDP.

Mineral Industry In India
569Coal Mines
67 Oil & Gas Projects
Over 8000 Non-Coal Mines
Employing over one (1) million persons directly on a daily
average basis
Mining is a hazardous profession
The credit for establishing the principle of state regulation
goes to France.
In 1781 Louis XVI created the first inspectorate of mines.
In 1849 State of Pennsylvania, in USA enacted law for the
benefit of miners.


India has completed 109 years of State intervention for
protecting persons at work in mines
Required safeguards for the persons working in mines
have been provided in Indian constitution
The Constitution of India has empowered the
parliament to frame law concerning regulation of
labour and safety in mines

Constitutional obligation
Article 246 (entry 55 of the seventh schedule)
regulation of labour and safety in mines and
oilfields.
Article 24
No child below the age of fourteen years shall
be employed to work in any factory or mine or
engaged in any other hazardous employment

Article 39
the state shall, in particular, direct its policy towards
securing -
(e) that the health and strength of workers, men and
women, and the tender age of children are not abused
and that citizens are not forced by economic necessity
to enter a vocations unsuited to their age or strength;
Article 42 The state shall make provision for securing
just and humane conditions of work and for maternity
relief
History of Development of OSH legislation in India
1890- The ILO, at its meeting in Berlin considered the
issues related to improvement in the working conditions of
miners
Following it the Govt. of UK requests Govt. of India to
consider the advisability of undertaking legislation for
inspection of mines in general and coal mines in particular
1894- Preliminary study of mining conditions in India by
one HM Inspector of Mines, Mr. James Grundy
1895- A Committee was appointed by the Govt. of India to
Frame suitable legislation to afford full protection to
persons working in mines in such matters in which they
have a reasonable claim on the State for protection
- Committee Submitted report in 1896
- In 1897 two disaster took place one at Kolar Gold field &
another at Khost coal mine in Baluchistan

o 1901 This efforts led to the enactment of the First Indian Mines Act which
came into force on 22nd March, 1901 Some of the important provisions of
the Mines Act:
Inspectors empowered to enter mines and inspect & make enquires
Minimum age of employment as 12 years.
Supervision by competent manager holding manager's certificate
Penalties prescribed for various contraventions.
The Act was amended in1910 & 1914
Bureau of Mines Inspection was formed with Calcutta as HQ on Jan 7, 1902
1923 New Indian Mines Act 1923 came into force
The Act was amended in 1925, 1927, 1928, 1931, 1935, 1936, 1937, 1940 and
1946.


o The 1928 amendments made the following additional provisions:
o Overlapping of shifts was prohibited
o same set of workers not to work more than 12 hours
o required to maintain a register of workers and their hours of work.
o The amending Act of 1935 made the following new provisions:
The age of children was raised to 15 years
Medical examination for employment of adolescents (15-17 years)
belowground.
The limit of weekly hours of work for both surface and underground
workers was equalized at 54
the maximum spread over on any day was fixed.
Mining Boards were required to be set up by provincial governments.
The amendment Act of 1936 provided the following provision:-
Establishment of Rescue Stations and formation, training and duties
of rescue brigades.
The 1937 amendment enlarged the powers of the Inspectors
The 1940 amendment stipulated
-salaries and wages of manager, supervisory staff etc should be paid by
the owner of the mine and not by the raising contractor.
The 1946 amendment required the construction and maintenance of
pithead baths
1952 The Mines Act 1952 superseded earlier legislation Some of the
important provisions of the Mines Act, 1952 are :
Definition of mine was enlarged
The minimum age for employment as 18 years
Compulsory weekly day of rest
Weekly hours of work limited to 48

Daily maximum work -8 hrs in underground & 9 hrs on surface
Restriction on employment of women below ground
Provision of first-aid, ambulance, drinking water and other
medical facilities.
Payment of overtime wages and leave with wages
Constitution of tripartite committees in place of mining board
Serving of improvement notice
Imposition of prohibitory orders for unsafe mines
Mine inspectorate empowered to undertake safety and occupational
health surveys
Govt. empowered to frame rules and regulations on Workmen's
Inspectors, Safety Committee, Emergency plan etc
Notification of occupational diseases.
Punishment both imprisonment & fine
o The Mines Act 1952 amended in 1959 and in 1983
The definition of the term mine was again amended
Inspectors were empowered to prohibit employment of persons if the
mine failed to comply with the notice for remedying anything
A first-aid room to be maintained in every mine employing more that
150 persons (instead of 500 as prescribed earlier).
A new section 9A empowered the Inspectors to undertake safety and
occupational health surveys in mines.
constitution of a single tripartite Committee for the whole country in
place of several Mining Boards and for constitution of one or more
Committees
Clearly re-define the duties and responsibilities of the
owner, agent and manager.
Section 22 was amended to clarify that any prohibitory
order issued under sub-section (3) would remain valid until
the Chief Inspector or Inspector was satisfied that the danger
had been removed.
A new section 22A empowered the Chief Inspector to
prohibit employment of persons in cases where despite
warnings the owner, agent or manager did not show any
improvement in regard to safety matters.
Section 57 and 58 were amended to widen the scope of
making regulations and rules.


Regulations framed under the Mines Act
Three separate codes of regulations were framed under the Mines Act,
1952
The Coal Mines regulations, 1957
The Metalliferous Mines Regulations, 1961
The Oil Mines Regulations, 1984- Regulations made provisions for:
supervision of mines by competent personnel,
maintenance of up-do-date plans,
general precautions against every conceivable hazard permission for-
commencing certain operations
working beneath and in the vicinity of bodies of water or surface
buildings and structures,
using new machines generating any kind of risk in underground
mines
submission of notice in every case of accidents etc.
precautions against air-borne dust


Mines Rules 1955 framed under the Mines Act 1952
A set of rules covering health & welfare provisions was promulgated.
Some of the provisions are:
Certifying Surgeons
Health & Sanitation
First aid
Employment of persons, Leave with wages, Overtime etc.
The Mines Rules were amended in 1978 and in 1986 & provided for :
Medical examination of persons employed or to be employed in mines
Prescribed medical standards of fitness
Appointment of Workmen's Inspectors
Constitution of safety committees.
Vocational Training Rules 1966 framed under the Mines Act 1952
Recognizing the need for educating mine workers about
the dangers of working in mines, the Mines Vocational
Training rules were framed in 1966.
The rules provided for:
Initial, refresher and specialized training to mine workers.

Mines Rescue Rules framed under the Mines Act 1952
Keeping in mind the occurrence of emergencies in mines,
particularly in belowground mines due to explosion, fires etc.
Coal Mines Rescue Rules ,1939 were framed
Mines Rescue Rules, 1985, replaced the Coal Mines Rescue Rules
1939
Mines Rescue Rules framed under the Mines Act 1952
set-up of rescue stations/rescue rooms
appoint superintendent, instructors, rescue personnel, rescue room
in-charge etc
specify the duties and responsibilities of these persons,
organization,
Maintenance of equipment in mines, conduct of rescue work etc.

Under the Mines Act , Mines Crche Rules 1966 &
Coal Mines Pit Head Bath Rules, 1959
were framed
Trend in fatal accidents & fatality rates per 1000
persons employed Period Coal Non-coal Av. No of
fatalities Fatality rate Av. No of fatalities

These laws are constantly upgraded based on
the experience gained while implementing law
The recommendations of the Courts of Inquiries
The ILO conventions and recommendations
The recommendations of the Conferences on Safety in
Mines
International experiences, their standards and
legislation
Research and development
Existing Mining Scenario

Quantum jump in mineral demand
Complex Geo Mining Conditions
New innovative Technology
Privatization and outsourcing
Entry of Multinational players
Social issuesAmendments in Safety Legislation
In view of recent development and changed scenario in
mining industry various amendments of statutes are under
process
Mines Act, 1952,
Coal Mines Regulations, 1957,
Metalliferous Mines Regulations, 1961
Oil Mines Regulations, 1984.

Key Environmental Legislation
Water Prevention and Pollution Control Act, 1974 (1988)

Forest Conservation Act, 1980

Air Prevention and Pollution Control Act, 1981

Environmental Protection Act, 1986

Mineral Conservation and Development Rules, 1957 (1987)

Mineral Conservation and Development Rules, 1988

Dr. Tabrez Ahmad
Water Prevention and Pollution Control Act,
1974 (1988)
Initiated the Pollution Control Boards and the Central Pollution
Control Board.

Power of entry and inspection in industrial establishments and
authority to take samples.

Empowered to set standards of effluents that may be discharged into
water sources.

Power to impose penalties for contravention of provisions.

Forrest Conservation Act, 1980
Legislation enacted to check deforestation.

Prohibits use of forest land for non-forest purposes (including mining)
without prior approval of the Central Government.

Reforestation or compensatory reforestation is primary condition for
approval of proposals for diversion of forest land.
Air Prevention and Pollution Control Act,
1981
Act enjoins industry not to discharge emissions of any pollutant in
excess of standards established by State Board.

Establishes power to inspect and collect samples and vests power with
the Central and State Pollution Control Boards.

Environmental Protection Act, 1986
Act widens scope of environmental protection activities of Central and
State Boards.

Prohibits all pollution in excess of standards set by State Board.

Requires mandatory environmental audits.

Prohibits expansion or modernization of any existing industry or new
projects without prior environmental clearance by the Central or State
Government.

Mineral Conservation and Development Act,
1957 (1987)
Act gives Government power to prevent a licensee or lease holder from
damaging the environment.

Act gives the Government power to require rehabilitation of vegetation,
trees, and shrubs destroyed by prospecting or mining.

Requires a mining plan to be submitted with an environmental
management plan.

Mineral Conservation and Development
Rules, 1988
Rules administered by the Indian Bureau of Mines, a department of the
Central Government under the Ministry of Mines.

Requires every mining operation to be in accordance with a mining
plan.

Requires review of approved mining plans every 5 years.

Requires every mine operator to take all possible precautions for
protection of environment and control of pollution while conducting
any mining activities.

Requires that the air, water, and noise pollution levels are within the
permissible limits.
Major Environmental Concerns
Air Quality

Water Regime

Impact on Land
Dr. Tabrez Ahmad
Air Quality
Methane and Suspended Particulate Matter.
Mine Fires and the Combustion of Coal produces Carbon Dioxide, Sulfur
Dioxide, and Nitrogen Oxide.

Water Regime
Water Table Lowered and Water Waste.

Acid Mine Drainage (AMD).
Water + Sulphide Minerals = AMD.
Water Contamination.
Disrupts growth and reproduction of aquatic plants and animals.
Kills fish.
Corrosion of mining equipment and structures, such as barges, bridges, and concrete
materials.
Dr. Tabrez Ahmad
Impact on Land
Large scale excavation.

Removal of topsoil.

Dumping of solid wastes.

Creation of derelict land.

Subsidence.

Noise and vibrations.
Dr. Tabrez Ahmad
Pollution Mitigation
Dust extractors on drilling
equipment.

Sprinkler systems.

Effluent Treatment Plants.

Sewage Treatment Plants.
Land reclamation and
rehabilitation.

Siltation ponds.

Removed topsoil utilization.

Stoping-in worked out mines.

National Mineral Policy (NMP), 1993
In pursuance of the reforms initiated by the Government of India in
July, 1991 in fiscal, industrial and trade regimes, the National Mineral
Policy was announced in March, 1993.
The National Mineral Policy recognized the need for encouraging
private investment including Foreign Direct Investment (FDI), and
for attracting state-of-art technology in the mineral sector.
The policy stressed that the Central Government, in consultation with
the State Governments, shall continue to formulate legal measures for
the regulation of mines and
the development of mineral resources to ensure basic uniformity in
mineral administration
that the development of mineral resources keeps pace, and is in
consonance with the national policy goals

Definition of Mineral
The term minerals has been defines under Section 3[a] of
Mines and Mineral (Development & Regulation) Act, 1957
as;
Mineral includes all minerals except mineral oil
It means that all mineral which are not natural gas and
petroleum are consist mineral and all which are natural gas
and petroleum are not the mineral for the purpose of the
Mines and Mineral (Development & Regulation) Act, 1957
which is dealt only with the mineral which are non-fuel
minerals.
According the first schedule of same Act it provide the list
of minerals like gold, silver, gypsum, iron ore, lead,
manganese ore, nickel ore, coal & lignite, precious stone,
tin, diamond, zinc etc.
Applicable Laws
The mining sector in India is covered by several laws,
regulations, guidelines and Notifications etc.
The Mines and Minerals (Development and Regulation) Act,
1957, ('MMDR') and the
Mines Act, 1952, together with the rules and regulations
framed under them, constitute the basic laws governing the
mining sector in India.
The relevant rules in force under the MMDR Act are the
Mineral Concession Rules, 1960, and the
Mineral Conservation and Development Rules, 1988.
The health and safety of the workers is governed by the Mines
Rules, 1955 created under the jurisdiction of the Mines Act,
1952.
The Mineral Concession Rules, 1960 outline the procedures
and conditions for obtaining a Prospecting Licence or
Mining Lease.
The Mineral Conservation and Development Rules, 1988
lays down guidelines for ensuring mining on a scientific
basis, while at the same time, conserving the environment.
The provisions of Mineral Concession Rules and Mineral
Conservation and Development Rules are, however, not
applicable to coal, atomic minerals and minor minerals.
The minor minerals are separately notified and come under
the purview of the State Governments.
The State Governments have for this purpose formulated
the Minor Mineral Concession Rules.
Regulators
Management of mineral resources in India is the responsibility of
the Central Government and the State Governments in terms of
Entry 54 of the Union List (List I) and
Entry 23 of the State List (List II) of the Seventh Schedule of the
Constitution of India.
The Central Government in consultation with the State
Governments formulates the legal measures for the regulation of
mines and the development of mineral resources to ensure basic
uniformity in mineral administration and to ensure that the
development of mineral resources keeps pace, and is in consonance
with the national policy goals.
The regulation of mines and development of mineral resources in
accordance with the national goals and priorities is the
responsibility of the Central and State Governments.
Beside the central government and state government also there is
one authority which is called
Indian Bureau of Mines (IBM); this authority has been defined
under Section 3 (k) of Mines and Mineral (Development and
Regulation) Act, 1957 as:-
the Indian Bureau of Mines means the Controller General of
the Indian Bureau of Mines, a subordinate office of the Ministry
of Mines in the Central Government or any officer of the Indian
Bureau of Mines authorized by Controller General of the Indian
Bureau of Mines in this behalf by general or special order
The Indian Bureau of Mines (IBM) is a subordinate office under the
Ministry of Mines.
It is engaged in the promotion and conservation of minerals,
protection of mines environment and scientific development of
mineral resource of the country,
other than coal, petroleum and natural gas, atomic mineral and
minor minerals.
Mining Liberalization-FDI in Mining
Being aware of the vast potential of the sector, the Indian Government, has been,
consistently and pragmatically, opening up the previously controlled regime to
usher in private investment into the sector and infuse funds, technology and latest
management practices.
The opening up of the Indian mining sector has, accordingly generated
considerable global interest.
The Indian mining sector was opened up to Foreign Direct Investment (FDI) in 1993
after the announcement of the Mineral Policy 1993.
Initially, all proposals were considered on a case to case basis by the Foreign
Investment Promotion Board (FIPB).
FDI policy in the mining sector was further liberalized in January, 1997 which
opened up an automatic approval route for investments involving foreign equity
participation up to 50% in mining projects, and up to 74% in services incidental to
mining.
The Foreign Direct Investment (FDI) policy in the mining sector has been
gradually liberalized over the last few years.
FDI cap for exploration and mining of diamond and precious stones has been
increased to 100% under the automatic route with effect from 10th February, 2006.
With this, the FDI in the mining sector for all non-atomic and a non-fuel mineral
including Diamond and precious stones has now been fully opened up to 100%
through the automatic route.
FDI in Mining
However all minerals have been classified into three
categories which are:-
Non-fuel mineral which consist mineral like gold, silver,
gypsum, iron ore, lead, manganese ore, nickel ore, coal &
lignite, precious stone, tin, diamond, zinc etc.
Fuel mineral which consist natural gas and petroleum.
Minor mineral which consist clay, sand, stone etc.
FDI in mining sector inclueds only in the area of non - fuel
minerals, which includes gold, silver, gypsum, iron ore, lead,
manganese ore, nickel ore, coal & lignite, precious stone,
tin, diamond, zinc etc.
this types of minerals are also provided under the Press note
No 7 of 2008 in entry No. 3, 4, and 5.
Procedures And Conditions For Foreign Direct
Investment [FDI] In Mining Sector
Mining sector is classified as an industrial sector which is
placed in entry number 3, 4, and 5 according the
arrangement of the Press Note No. 7 of 2008.
Further the same Press Note has categories the mining
sector into three areas, which are:-
a) Mining covered exploitation and mining of diamond and
precious stones; gold, silver and minerals.
b) Coal and lignite for captive consumption by power
projects, and iron & steel, cement production and other
eligible activities permitted under the Coal Mines
(Nationalization) Act, 1973
c) Mining and mineral separation of titanium bearing
minerals and ores, its value addition and integrated
activities.
Need for Review of National Mineral Policy of 1993
Mining is a three-stage operation, involving
regional exploration,
detailed exploration, and
actual mining.
Regional exploration is mainly a survey activity to identify areas bearing
mineral deposits.
Detailed exploration is a little more invasive and can involve close spaced
drilling (depending on the mineral) and substantial testing to establish
commercially exploitable ore bodies
Mining projects, therefore, have a long gestation period requiring large
investments in exploration and other development activities before
commercial production can begin,
Mining is considered as a high risk venture for the reason that a
prospectors investment may or may not result in finds of commercially
exploitable deposits.
In India, investment has been lacking in such high-risk ventures and the
exploration done by Geological Survey of India (GSI) continues to be the
main basis for investment in mining.

National Mineral Policy-2008
Amendments of Acts and Rules
Mines and Minerals (Development and regulations) Bill 2011.
Strengthening Geological Survey of India
Strengthening Indian Bureau of Mines
Strengthening of State Directorate of Mining and Geology
Mining Tenement and Registry System
Forest & Environment Issues
Geological Programming Board
Enforcement of Data Mining by Concession Holders
Re-assessment of Threshold Values of Important Minerals
Mine Development and Mineral Conservation
Coordination-cum-Empowered Committee
Measures to control Illegal Mining
Justice MB Shah Commission of Enquiry

Rare Earths (RE) and Energy Critical Minerals (ECE)
o Rare Earths (RE) and Energy Critical Minerals (ECE) are extensively
o used in high technology and futuristic applications
o like wind energy turbines,
o solar energy collectors and
o thin film technologies.
o there is need for development of a focused strategy for their indigenous
production,
o based on analysis of availability, stepping up of exploration for
discovery of economically extractable deposits and
o identification and development of processes for their recovery in usable
forms and
o quantities in order to ensure long term national raw materials security
o A Steering Committee has accordingly been constituted for a
coordinated research and development effort.
Overview: China factor
Since 2005
Huge increase in
demand;
Huge increase in
price -- up 48 per cent
since the beginning
of 2006
Real price at 15-year
high
Impacts on USA
Growth industry : between mid 1990s to 2005
Iron ore production increased has doubled in 10 years from 60
million tonnes annually to 155 million tonnes;
Bauxite increased from 5 million tonnes to 12 million tonnes;
Chromite from 1 million tonnes to 3.4 million tonnes
Coal and lignite from 266 million tonnes to 438 million tonnes

Analysis of Indian Mining Sector- 2014
The analysis of Indian mining sector has shown that every one percent
increment in the growth rate of mining and quarrying results in
1.2 1.4% increment in the growth rate of industrial production and
correspondingly, an approximate increment of 0.3 percent in the
growth rate of Indias GDP.
After clocking an average growth rate of 4.8% over the 5 years between
2006-07 and 2010-11,
the sector has witnessed negative growth of 0.6% for two consecutive
years now (2011-12 and 2012-13).
The mining sector in the last couple of years has been hit hard due to
policy paralysis on a whole gamut of issues, irrespective whether they
are in the domain of the Centre or of the States.
As a result mining projects across the country has remained stalled
owing to court cases, environmental, regulatory and land acquisition
issues.
The sector has also been reeling under high borrowing costs.
It is also a matter of concern that though as per National Mineral
policy, 2008, private sector should have been at the forefront of
mineral production but the public sector continues to play a
dominant role accounting for 68% of mineral production during
2011-12.
Clearly policies and incentives have not been conducive for the
private sector players to participate more actively.
Indias spend on mineral exploration is less than 0.5% of the global
spending on exploration in 2010, much below its fair share given
the size of mineral resource potential.
India aims to increase share of mining and quarrying in GDP from
current 2% of GDP to 5% of GDP over the next 20 years.
This requires mining to grow at 10-12% per annum.
On the other hand, within two decades of liberalized economy,
much in contrast with the constitutional objectives, mining as a
sector has come to be associated with scams, conflicts, violence
and ecological degradation.
The conflict it engenders is enormous and wide spread. The future
should therefore usher in an era of mineral development with
socio-economic development as the focus.
At present, nearly half of Indias total mineral production
(including oil and gas) in value terms is contributed by
seven key mining states, namely
Odisha (9.6%),
Andhra Pradesh (9.0%),
Rajasthan (7.9%),
Chhattisgarh (7.8%),
Jharkhand (6.5%),
Madhya Pradesh (4.8%) and
Karnataka (3.6%).
The seven big mining states also account for a third of Indias
population but are relatively backward.
Growth in mining could play a critical role in the social and
economic development of the people of these states as these seven
states also account for a majority of the key minerals reserves in
India.
Potential and Opportunity for Significant Growth
of Mining in India
India produces about 87 minerals that include
4 fuel minerals, 3 atomic minerals,
10 metallic minerals,
47 non-metallic minerals and
23 minor minerals (including building & other materials).
India occupies a dominant position in the production of many minerals across the
globe.
There are close to 3000 mines in India.
Number of reporting mines during the last decade has been around 3000 to 3200.
However, during 2010-11, it was 2928, out of which,
573 were fuel mines,
687 were mines for metals, and
1668 mines for extraction of non-metallic minerals.
Of the total number of about 90 minerals,
the three key minerals are coal, limestone and iron ore.
There are 560 Coal mines (19% of total number),
553 limestone mines (19% of total number) and
316 iron ore mines (11 % of total number).
They comprise about half of the total number of reporting
mines.
The number of mines engaged in extraction was also significant
in cases of bauxite (189),
manganese (141),
dolomite (116) and
Steatite (113).
With regard to production of these three key minerals,
India ranks 3rd in coal production,
3rd in limestone production and
4th in iron ore production, in the world as of 2010

Even amongst the BRIC (Brazil, Russia, India and China) nations, India is the least
developed in terms of per capita mineral consumption.
As Indias per capita GDP increases, its mineral consumption will grow at a rapid
pace in line with the growth witnessed in other emerging markets like China and
Brazil.
Projections based on the mineral consumption intensity show that demand for a
variety of minerals will increase at a much faster pace than the historical growth
rates.
Further, to assess the domestic growth potential for mining sector in India, one can
also look at the future growth potential of its key consumer industries, for example,
steel, cement, etc.
The Planning Commission, in its 12th five year plan, had set a target of 9% for the
GDP growth rate which subsequently has been revised to 8%.
Nevertheless, this implies a huge spurt in sectors like construction and power
generation which in turn will lead to substantial capacity addition in the steel,
cement and thermal power sectors.
These industries, being key consumers of minerals like iron ore, limestone and
copper, will drive significant growth in consumption demand of minerals in India.
In addition to domestic demand growth, the Indian mining industry is
also likely to see accelerated growth in exports demand.
The key minerals exported from India are iron ore (although this has
dipped significantly at present), alumina, and chromite.
According to industry forecasts, the global demand for these minerals
is expected to accelerate in the future.
For example, the global demand for both seaborne iron ore and
aluminium is expected to grow at the rate of 10% per annum while the
global demand for ferrochrome, an alloy containing chromites, is
expected to grow at the rate of 7% per annum in the coming years.
Thus, there are substantial demand side drivers for the growth of
Indias mining industry.
In global rankings of mineral reserves, India occupies a dominant position
for key minerals, for example, coal and iron ore.
India has the worlds 4th largest coal reserves, which is equivalent to 12% of
global reserves.
India also possesses the 7th largest reserves of iron ore,
3rd largest reserves of chromite and
5th largest reserves of manganese ore in the world.
In other words, at the current consumption rank, India has proven reserves
for 175200 years for coal, and
4050 years for iron ore and limestone
As far as imports are concerned, more than
85 % of the imports are accounted for by petroleum and diamond.
The former is essential to meet the energy requirements whereas the
import of raw diamond is for value added re-exports.
India continues to be largely self sufficient in minerals which constitute
primary mineral raw material to industries like iron ore, ferro alloys,
aluminum, cement etc and mineral fuels like coal (except low ash coking
coal) etc.. Dr. Tabrez Ahmad http://energylex.blogspot.in 166
In addition to the internationally recognized proven and probable
reserves, India has significant quantity of mineral resources which are
still under various stages of exploration.
A quick look across key minerals highlights the fact that the unproven
resources are more than twice the proven reserves.
With appropriate investments in infrastructure and technology used in
exploration, there is significant potential for further increase in the
realizable mineral wealth of India.
Three Key Challenges to Growth Faced by Industry
Thus there is an enormous potential for growth of mining in India.
This is driven by both the positive demand scenario and substantial
existing reserves and potential resources.
However, historically, mining sector has struggled to exploit this
potential due to three key reasons:
Regulatory challenges
Inadequate infrastructure facilities
Sustainability
a. Regulatory challenges
There are a set of regulatory and administrative challenges in India
which restrict the growth of mining in India. To illustrate:
The current regulatory provisions make it difficult, if not impossible, to
transfer mining leases.
The prospecting licenses are not transferable.
There is no guarantee of obtaining mining lease even if a successful
exploration is done by a company.
The mining licenses are typically awarded on a first come first serve
basis in principle but there is no transparent system.
Getting all approvals for mining is a long drawn process with multiple
agencies involved.
Further, there are substantial delays in disposal of various applications
for clearances.
There are limited incentives for private sector to invest in improvement
of technology and equipment in mining projects as the mining industry
is the most heavily taxed industry in India.
These challenges have limited the overall investment in mining and
exploration activities in India.
This is demonstrated by the fact that despite being one of the few
sectors in India which allows 100% Foreign Direct Investment (FDI)
(with the exception of atomic and fuel minerals),
the actual inflow of foreign investment in the mining sector in India
has been quite low.
Indias spend on mineral exploration is less than 0.5% of the global
spending on exploration in 2010 much below its fair share given the
size of our landmass and our potential mineral wealth.
Even this exploration activity has largely been limited to public sector
enterprises.
b. Inadequate infrastructure facilities
The inadequacy of infrastructure is related to the absence of proper
transportation and logistics facilities.
Many of our mining areas are in remote locations and cannot be properly
developed unless the supporting infrastructure is set up.
For example, the railway connectivity in most key mining states is poor and
it has inadequate capacity for volumes to be transported which adds to the
overall supply chain cost.
The government foresees that steel production capacity in the country by
the year 2025 will increase to 300 million tonnes per annum.
This would require Indian Railways freight capacity to be around 1185
million tonnes, for only steel and its raw material requirements.
In 2012-13 the total freight carried by Indian railways was 1,010 million
tonnes.
Therefore, unless significant initiatives are taken and are promoted by
Indian Railways through private participation to address the anticipated
logistics requirement of the mining and manufacturing industries, the
risk foreseen is too significant in magnitude to hamper the growth of
industry.
Further, there is inadequate capacity at ports for handling minerals and
the rail road connectivity to some ports is very poor. The key
constraints are:
There is capacity constraint for capital dredging,
Existing ports are unable to meet the expected 10% growth in traffic at
ports,
High dwell time of cargo in Indian ports due to manual workflow and
low level of IT penetration
Lack of public investment in capacity building
Slow evacuation of cargo from ports due to limited hinterland
connectivity by rail/road.
c. Sustainability
Mining activity in any area impacts the environment as well as the
socio-economic set-up.
Therefore, ensuring that the adverse impacts are minimized and the
benefits from mining to the impacted community are optimized
becomes critical for mining to be being carried out in a sustainable
manner.
The importance of sustainability in mining, in India, can be illustrated
by the fact that a large percentage of mining proposals has failed to get
environmental / forest clearance from the Ministry of Environment
and Forests, Government of India.
For example, out of 2,842 mining projects proposed for forest clearances
in the last 17 years, only 1,723 projects, which constitute about 60% of
the total, have been issued forest clearance by the central government.
The remaining 40% projects are either still pending or have been
rejected / closed on grounds
Further, obtaining the clearance is a very long drawn process, which is
illustrated by the fact that out of the total pending projects in 2012, 63%
have been pending for more than two years.
In addition to the environment and forest clearances, mining projects
also have to comply with several requirements aimed at enhancing the
welfare of the local community. Obtaining these approvals and
clearances is a tedious process as it involves multiple agencies and local
governing bodies.
Over and above these regulations, the mining companies also need to take the
local communities along, to ensure that they have the support of the local side
for their projects. As a result, several projects are impacted with challenges by way
of opposition from local communities / NGOs, difficulties in land acquisition,
denial of clearances from the governing bodies, etc. A few instances of some of
the major projects that have been impacted in recent past are as follows:
Pohang Steel Company (POSCOs) US$ 11 billion investment plan for mining and
steel production: strong opposition from local people over land acquisition.
Vedantas proposed US$ 1.7 billion bauxite mining project in Odisha: opposition by
local community and eventual withdrawal of the forest clearance
Utkal alumina project, which was a US$ 1 billion joint venture between M/s.
Hindalco (India) and Alcan (Canada) to mine and refine bauxite: delayed by more
than a decade due to challenges in land acquisition
Uranium Corporation of India Ltd., UCILs two mining projects worth US$ 200
million and US$ 225 million in Meghalaya and Andhra Pradesh respectively:
opposition from local communities and organizations on the grounds of likely
effects of radiations on human health and environment
Unresolved Policy Issues
Notwithstanding the proposed MMDR Bill 2011, there are certain major
policy issues which deserve serious consideration:
1. So far as mining activity is concerned, India is a single economic
space and as such, more delegation of powers to the state governments
may jeopardize the interests of mineral development.
2. While the National Mineral Policy 2008 remains yet to be
implemented, the mineral policies of the state governments are at
variance with the same. In fact, the procedures in the grant of mineral
concessions also vary from state to state. It would therefore be
necessary that the state governments may be restricted to formulate
their mineral policies only to minor minerals.
3. To curb the menace of illegal mining and to ensure scientific mining,
it would be necessary to strengthen and re-structure the Departments
of Mines & Geology of the state governments on a uniform pattern.
4. As mineral exploration is key to attracting investment in the mining
sector, separate legislation and procedure for grant of prospecting /
exploration licenses is required.
At present, the same procedure is being adopted as that of a mining lease in grant
of prospecting licenses whereas mineral investigation does not involve acquisition
of land, it being a temporary activity for a short period.
5. There is incorrect definition of prospecting activity in Forest (Conservation) Act
1980.
The provisions of guidelines 1.3 (v) of the handbook exempts certain activities like oil
drilling, transmission of power lines etc from forest clearance but in case of prospecting
though few drill holes are permitted (16 boreholes per 10 sq km) vide notification no 5-
3/2007-FC dated August 19th, 2010 of Ministry of Environment and Forests, but the
collection of surface samples through trenching / pitting are prohibited. In fact, the
prospecting activity has not been defined properly in the notification and entry to forest
land remains a big issue to the prospectors.
As most of the mineral bearing lands overlap the forest lands in the country, the
provisions of Forest (Conservation) Act 1980 need to be amended in the interest of
detailed prospecting and exploration for mineral investigation, where no
degradation of forest is involved; rather, prospecting activity needs to be exempted
from forest clearance.

6. There is a tendency on the part of the state governments to give
preference to value addition and reservation of potential areas to the
state PSUs in grant of mineral concessions.
This has resulted in the reservation of large potential areas which have
remained blocked for a long period without any exploration and
development.
At the same time, there is hardly any de-reservation of such potential
areas.
7. Geological Survey of India (GSI) has identified an area of 5.71 lakh
square kilometres as Obvious Geological Potential (OGP) area in the
country.
But there is hardly any detailed mineral exploration activity in the
absence of timely follow-up actions on GSIs recommendations.

8. A transparent, simple and stable fiscal regime plays a significant role in
the growth of the industry for attracting investment. However, Indian
mining sector is already amongst the highest taxed in the world with
effective tax of about 45% compared to other countries which ranges
between 35 to 40% (China-32%, Russia-35%, Australia- 39%, Chile 40% and
Canada- 35 %).
The Draft MMDR Bill, 2011 proposes a number of additional taxes and levies
thereby taking the effective taxation to more than 60%. In addition to above
there is huge additional burden from revision of royalty rate and stamp duty.
Taxes/duties/cess etc. should not be prohibitive and should help the
industry to survive, sustain and grow. Further any new taxes/duties/cess
should take into consideration existing burden on the sector.
9. Development of dedicated freight corridors linking the iron ore mines to
the ports and rail heads to ensure evacuation from the pit heads without
disrupting the public life needs to be considered. Such corridors can either
be in PPP model or a consortium of miners can develop and operate the rail-
line on a royalty/rent basis (examples of such PPP models exist in Australia
and Brazil).

10. Mandatory exploration for the operating mines and adequate incentives
for green field exploration need to be devised to enhance the resource base
and convert them to reserve category.
11. The strategic value of various minerals must be recognized and specific
efforts need to be made to conserve minerals essential for the countrys
future. Minerals such as bauxite, titanium, rare earths and several heavy
metals (e.g. gallium germanium, platinum group of metals, molybdenum,
indium and cobalt etc) which will be crucial for future development of
materials need to be addressed for long-term needs of the country.
12. Looking to the complex mineralogy of Indian Hematite ores, IBM needs
to go for evaluation of cut-off in a deposit-wise manner in line with such
practice in several countries. For each deposit, theoretical cut-off and
operational cut-off grade may be declared based only on detailed
mineralogical-metallurgical test-work and can be unique for a particular
deposit.
13. There is a need for detailing of the national mineral inventory so as to
allow the investor to get adequate information for taking up investment
decisions

Recommendations
The Indian mining industry is passing through a
critical phase, especially in the last two years
witnessing even negative growth rate primarily due to
closure of iron ore mines in the states of
Karnataka, Goa and Odisha, high costs of borrowing
and policy paralysis
The mining and quarrying sector needs to grow at rate of 10 to 12% per
annum in order to cater to the requirement of raw materials by the
industries.
As mining is interlinked with industrial development, the security of raw
material is of prime importance and as such, the pro-active role of union and
state governments is called for to ensure an era of mineral development.
It is time we address the areas of concern coming in the way of mining or we
will need to import both the raw materials and the finished products, which
the country can ill afford. We are of the opinion that the steps outlined need
to be resolved and acted upon at the earliest.
Rapid economic growth and technological advancements in India in the
recent years has created demand for a wide range of non-fuel minerals to
perform essential functions in sectors like automobiles, aerospace,
telecommunications and renewable energy.
But, India is partially or completely dependent on imports for many of its
non-fuel minerals which include among others Gallium, Platinum Group of
Metals, Antimony, Molybdenum, Nickel, Tin, Tungsten, Cobalt, Potash,
Sulphur and Borax etc.
New resources therefore need to be identified through increased exploration
activities.


As preliminary geological data (G3, G4 level) of GSI is not sufficient to
make investment decisions in most of the cases, the detailed exploration is
essential to attract investment in mining sector so as to establish feasibility
of the prospect.
It may also be mentioned that only 10% of the total hard rock area in the
country has been explored so far leaving a great scope for discovery of new
deposits through detailed exploration.
The areas of concerns coming in the way of mineral development and
growth of the mining sector have been highlighted based on available data.
The remedial measures deserve serious considerations by union and state
governments as well as by industry.
The scarcity of raw material resources faced by basic industries like
aluminium and power is not in the interest of industrial development.
The future, therefore, warrants focus to an era of mineral development to
ensure growth of the mining industry.

Overall Recommendations and General Remedial
Measures
1. The minerals listed in part C, of Schedule I of MMDR Act should remain
intact, requiring union governments approval. So far as mining activity is
concerned, India is a single economic space and as such, more delegation
of powers to the state governments may jeopardize the interests of
mineral development.
2. While the National Mineral Policy 2008 remains yet to be implemented,
the mineral policies of the state governments are at variance with the
same. In fact, the procedures in the grant of mineral concessions also vary
from state to state. It would therefore be necessary that the state
governments may be restricted to formulate their mineral policies only to
minor minerals.
3. To curb the menace of illegal mining and to ensure scientific mining, it
would be necessary to strengthen and re-structure the Departments of
Mines & Geology of the state governments on a uniform pattern.
4. Geological Survey of India (GSI) has identified an area of 5.71 lakh square
kilometres as Obvious Geological Potential (OGP) area in the country.
But there is hardly any detailed mineral exploration activity in the
absence of timely follow-up actions on GSIs recommendations.

5. As mineral exploration is key to attracting investment in the mining
sector, separate legislation and procedure for grant of prospecting /
exploration licenses is required. At present, the same procedure is being
adopted as that of a mining lease in grant of prospecting licenses whereas
mineral investigation does not involve acquisition of land, it being a
temporary activity for a short period.
6. A transparent, simple and stable fiscal regime plays a significant role in
the growth of the industry for attracting investment. However, Indian
mining sector is already amongst the highest taxed in the world with
effective tax of about 45% compared to other countries which ranges
between 35 to 40% (China-32%, Russia-35%, Australia- 39%, Chile 40% and
Canada- 35 %).
The Draft MMDR Bill, 2011 proposes a number of additional taxes and levies
thereby taking the effective taxation to more than 60%. In addition to above
there is huge additional burden from revision of royalty rate and stamp duty.
Taxes/duties/cess etc. should not be prohibitive and should help the
industry to survive, sustain and grow. Further any new taxes/duties/cess
should take into consideration existing burden on the sector.

7. There is incorrect definition of prospecting activity in Forest
(Conservation) Act 1980. The provisions of guidelines 1.3 (v) of the
handbook exempts certain activities like oil drilling, transmission of power
lines etc from forest clearance but in case of prospecting though few drill
holes are permitted (16 boreholes per 10 sq km) vide notification no 5-
3/2007-FC dated August 19th, 2010 of Ministry of Environment and Forests,
but the collection of surface samples through trenching / pitting are
prohibited.
In fact, the prospecting activity has not been defined properly in the
notification and entry to forest land remains a big issue to the prospectors.
As most of the mineral bearing lands overlap the forest lands in the
country, the provisions of Forest (Conservation) Act 1980 need to be
amended in the interest of detailed prospecting and exploration for
mineral investigation, where no degradation of forest is involved; rather,
prospecting activity needs to be exempted from forest clearance.
8. Policies to enhance the efficiency of the mining activities are needed so
that the life of a mine is shortened

9. There is a tendency on the part of the state governments to give
preference to value addition and reservation of potential areas to the state
PSUs in grant of mineral concessions.
This has resulted in the reservation of large potential areas which have
remained blocked for a long period without any exploration and
development. At the same time, there is hardly any de-reservation of such
potential areas.
10. Development of dedicated freight corridors linking the iron ore mines to
the ports and rail heads to ensure evacuation from the pit heads without
disrupting the public life needs to be considered.
Such corridors can either be in PPP model or a consortium of miners can
develop and operate the rail-line on a royalty/rent basis (examples of such
PPP models exist in Australia and Brazil).
11. Mandatory exploration for the operating mines and adequate incentives
for green field exploration need to be devised to enhance the resource base
and convert them to reserves

12. The strategic value of various minerals must be recognized and specific
efforts need to be made to conserve minerals essential for the countrys
future. Minerals such as bauxite, titanium, rare earths and several heavy
metals (e.g. gallium germanium, platinum group of metals, molybdenum,
indium and cobalt etc) which will be crucial for future development of
materials need to be addressed for long-term needs of the country.
13. Looking to the complex mineralogy of Indian Hematite ores, IBM needs
to go for evaluation of cut-off in a deposit-wise manner in line with such
practice in several countries. For each deposit, theoretical cut-off and
operational cut-off grade may be declared based only on detailed
mineralogical-metallurgical test-work and can be unique for a particular
deposit.
14. There is a need for detailing of the national mineral inventory so as to
allow the investor to get adequate information for taking up investment
decisions.

IV REFLECTIONS ON MMDR BIL, 2011

The MMDR Bill, 2011, replacing the earlier Mines and Minerals
(Development and Regulation) Act, 1957 was tabled in Parliament on
12
th
December, 2011. The Bill has been referred to the Standing
Committee on Coal & Steel. The proposed Bill is very retrograde and
will thwart the development of mineral resources in the country. In
fact, a vast amount of Indian capital which could have been invested
in the country for development of mineral resources has been diverted
to foreign countries for development of mineral resources in those
countries. There will provide economic benefits to the communities
residing in those countries. The mineral resources in India are
mostly located in backward and tribal areas where naxalite activities
are at its peak. If the conditions in India had been congenial for
investment, this capital could have been employed domestically for
better economic and social benefits to communities in these tribal and
backward areas.

FIMI has submitted its views and suggestions to the Standing
Committee for Coal & Steel. Some of the suggestions are as under :

In MMDR Bill 2011, the power to grant and extend concessions has been
given to State governments even for those minerals which were so far in Part
C of First Schedule of the MMDR Act 1957, namely, asbestos, bauxite,
chrome ore, copper ore, gold, iron ore, lead, manganese ore, processing
stones and zinc. It may be noted that, since most such concessions will now
be auctioned, this will require `notifying such areas to invite competitive bids,
deciding reserve price as well as expected price, preparing prospecting
reports, feasibility reports, mine plans, seeking approvals from IBM for mine
plan and MoEF (for forest lands) and landowners. We feel that most State
Governments do not have the capacity to undertake all these activities and
therefore will remain a non-starter. As the schedule minerals are very
important from the perspective of national economy and require huge
investments in exploration and development, the role of Central
government is very significant.
the provisions relating to auction of exploration and mining concessions will
discourage serious investors, particularly foreign investments from coming to
the countrys mineral sector which was the primary objective behind Hoda
Committees recommendations and NMP 2008s policy commitments. Even
in the countries like Russia & Kyrgyzstan which sometimes follow tender /
auction route, prospecting / exploration licences are never auctioned. It
may be noted that NMP 2008 does not talk about auctions at all.

the regulatory framework emerging out of the MMDR Bill 2011 is very
complex and difficult, if not impossible, to implement particularly by the State
Governments to whom most of the powers have been devolved under the
proposed Bill;
all applications pending at the time of commencement of new Act will lapse,
new applications for prospecting license have a moratorium of two years (+ 1
year extension), and no direct applications for mining leases will be
entertained. A quick calculation indicates that no new mines will see the light
of day for next 15-20 years if the Bill becomes Act as proposed, while the
countrys economic growth demands more and more mined resources;
Indias mining sector is already the highest taxed in the world, additional
provisions (like contribution to District Mineral Foundation, State/Central
Cess, high license fee etc.) will make it unviable to do mining in India;
special Courts and very stiff punishments and penalties have been
prescribed; while FIMI is all against illegal mining, we believe that adequate
implementation and good governance are required rather than more laws to
prevent illegal mining and
numerous new regulatory bodies are to be created as per the proposed Bill,
viz., NMRA, SMRA, NMT, SMT, NMF, SMF, DMF, etc. some of which will
duplicate the work of existing bodies like IBM. We feel this will create more
confusion.

In view of the above, our broad suggestions and requests for the
consideration of the Committee are

Prior approval of Government of India for minerals in Schedule First in
Part C of MMDR Act 1957 (now Part D in MMDR Bill 2011) should be
retained;
auction system should be scrapped;
the contribution to DMF should be reduced to 26% of royalty paid during
the previous financial year; State/Central Cess should not be levied at all;
the NMRA/NMT/SMRA/SMTs should be funded out of Centre / State
budgets as in the case of CERC/SERC/TRAI/IRDA & appellate authorities;
special courts for mines not required; penalties / punishments under
existing MMDR Act 1957 are adequate, provided these are strictly enforced
and
in view of the growing importance in domestic market and export trade,
granite should be declared as major mineral.

Future of Coal in India
Rapid population growth and skyrocketing demand for energy.

70% of coal consumption expected to be in electric power sector.

In 2003, coal-fired power plants consumed 5.0 quadrillion Btu of coal,
representing 69% of Indias total coal demand.

Future Energy Utilization
1999 (281 million tons of oil
Equivalent "Mtoe")
Oil
33%
Coal
56%
Nuclear
1%
Gas
7%
Hydro
3%
Coal Oil Gas Nuclear Hydro
2020 (716 Mtoe)
Gas
16%
Nuclear
1%
Hydro
2%
Coal
47%
Oil
34%
Coal Oil Gas Nuclear Hydro
Source: International Energy Agency
Future of Coal in India
Coal use for electricity generation projected to grow by 2.7% per year, to
10.3 quadrillion Btu in 2030.

Coal-fired generating capacity projected to increase from 67 GW in
2003 to 161 GW in 2030.
Dr. Tabrez Ahmad
Coal to Oil
Like China, India relies heavily on imported oil to meet demands.

Coal-to-liquids (CTL) projects have yet to be developed in India.

A CTL industry would represent a viable means of increasing oil supply.

Indian Oil Corporation is currently evaluating construction of an
80,000-barrel-per-day coal liquefaction facility.

197 Dr. Tabrez Ahmad http://energylex.blogspot.in
199

Dr. Tabrez Ahmad http://energylex.blogspot.in

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