TN may lose right to license mining of beach minerals
THOOTHUKUDI: The Union Ministry of Mines has proposed to amend the Mines and Minerals (Development and Regulations) Act, 1957, (MMDR Act) to reform the sector and empower the Centre to auction mineral concessions. The power to issue licences for mining beach minerals now exclusively lies with the States. The ministry has invited public comments and suggestions on the proposed amendments on or before June 15.
Miners say if the proposals take effect private players may be able to mine beach sand minerals again after it was banned in 2019 through an amendment to the MMDR Act.The key amendments proposed include delisting of eight minerals from Part B atomic minerals list of the first schedule and bringing them under the newly created Part D section (critical & strategic minerals). The first schedule of MMDR Act now consists of only three parts — Part A (hydrocarbons/energy minerals), Part B (atomic minerals) and Part C (metallic and non-metallic minerals).
The eight minerals proposed to be removed from Part B and placed in Part D are beryl and other beryllium-bearing minerals, lithium-bearing minerals, minerals of the rare earths group containing uranium and thorium, niobium-bearing minerals, titanium bearing minerals and ores (ilmenite, rutile and leucoxene), tantallium-bearing minerals, zirconium-bearing minerals and ores including zircon, and beach sand minerals including garnet, monazite and sillimanite. The other minerals to be included in Part D are molybdenum, rhenium, tungsten, cadmium, indium, gallium, graphite, vanadium, tellurium, selenium, nickel, cobalt, tin, platinum group of elements and fertilizers minerals such as potash and phosphate (without uranium) and glauconite.
Stating that these proposed Part D minerals have numerous non-atomic applications that outweigh their atomic use, the MoM says these minerals have high economic importance and possess considerable supply risk due to geopolitical uncertainties. These technology and energy critical elements hold the key to achieving net-zero emission commitment of India, and have uses in space industry, electronics, information and technology and communications, energy sector, electric batteries and nuclear industry, the ministry said.
According to the proposal, the Centre’s powers to auction concessions for the minerals in Part D will be in addition to the power of State governments. Other amendments proposed are introducing a new section in the MMDR Act regarding Average Sale Price (ASP) that forms the basis for calculating ad valorem royalty to remove cascading impact of royalty on royalty, fixing mineral-wise maximum area limit for mineral concessions, dispense with forest clearance for exploration, dispensing with central government’s prior approval for initiating auctioning of composite licence, and omission of the phrase “after meeting requirement of the end-use plant linked with the mine” of section 8(5) and 8A(7A) of MMDR Act to allow captive miners to sell 50% of their annual production without any restrictions.
Commenting on the notification, Federation of Indian Placer Mineral Industries chief Dr D Dhaya
Devadas told TNIE that the move may open the doors for more private players in the sector, but the system needs transparency, accountability and responsibility on the part of all stakeholders. Private miners’ connivance with officials of enforcement agencies should be prevented, he added.An activist said though China is a leading producer of heavy minerals, it doesn’t export them. Chinese do value-addition to these minerals and lead in electronic and communication industry in the world.
Industrial sources said there was a strong need for appropriate sections to black list mining companies that repeatedly flout guidelines and norms. “Beach sand mining gave employment to hundreds of people, but because of a few violators, the whole industry was hit,” they said. A former beach sand miner said the government must encourage making value-added products from beach minerals to cut imports. It may be noted that Indian beaches are a treasure troves of minerals, especially monazite, an atomic mineral. A case related to violation and illegal mining of beach sand minerals is pending before the Madras High Court.