Mineral and Mining Sector Legislations: Overview

Mineral and Mining Sector Legislations: Overview

Question: India’s mineral and mining sector operates within a federal structure. Provide an overview of the legislations for this sector.

- India’s mineral and mining sector is controlled by the Central Government mostly; the Centre formulates legislation for all except minor minerals for which the state government formulates legislation.

- GoI permits 100% FDI in minerals and mining as well as metallurgy through the automatic route through the means of equity participation in companies incorporated in India for all non-fuel and non-atomic minerals.

- India has a advanced framework of legal and constitutional nature to handle the mineral and mining sector which is as follows.

- National Mineral Policy provides guidance for the mineral sector. While Centre and States manage the mining sector, state governments are owners of onshore minerals

- Mines and Minerals(Development and Regulation) Act 1957 is a central legislation for regulating mining operations

- State governments are owners of onshore minerals and they grant mineral concessions and collect royalty rent and fees as per statutes of the MMDR Act 1957

- For offshore areas, ownership of minerals is with Centre and state regulates mining in onshore areas

- Offshore Areas Minerals (Development and Regulation) Act 2002 empowers the Centre to grant concessions for offshore minerals and collect royalties

- MMDR Act 1957 has been amended recently

- Mineral Concession Rules (1960) lay the guidelines for basic conduct of accounts, registers and info reports as well as grant for concessions and consideration of applications

- Mineral Conservation and Development Rules (1988) provides rules for prospecting and mining operations and general requirements, notices and returns regarding the same

- Rules are also covering guidelines for protecting the environment

- The Mines Act 1952 prescribes rules pertaining to labour safety in mines as well as management and regulation of mines

- Mineral Rules 1955 define the framework for medical examination for miners apart from providing basic sanitation and welfare amenities for miners and their families

- The Offshore Areas Mineral Development and Regulation Act 2002 also provides for development and regulation of mineral resources in EEZ, continental shelf, territorial waters plus other maritime zones of India and provide rules for matters relating to it

- Offshore Areas Mineral Concession Rules formulates the procedure for granting and renewal of reconnaissance permits as well as exploration and production leases as per S35 of the Offshore Areas Mineral Development and Regulation Act 2002

Facts and Stats

Updates to Subordinate Legislations

- Apart from amending the MMDR act, the government has also made following rules for implementation of the AA 2015:-

- Minerals (Evidence of Mineral Contents) Rules, 2015

- Mineral (Auction) Rules, 2015

- Mineral (Non-exclusive Reconnaissance Permits) Rules, 2015

- National Mineral Exploration Trust Rules, 2015