Mineral Concession Rules, 1960

The Mineral Concession Rules (MCR) specify the processes and criteria for acquiring a prospecting license and mining lease. According to these rules, a "mining plan" must include, among other things, a map of the area indicating water sources, the boundaries of forest areas, the density of trees, the impact of mining activity on the forest, land surface, and environment, including air and water pollution, a plan for reforestation of the area, the adoption of pollution control technologies, and any other actions that may be required by the relevant state and federal government agencies. It follows that strategies for environmental management are included in mining plans.

What does Exactly Mineral Concession Rules, 1960 Define?

Under the requirements of the Mines and Minerals (Development and Regulation) Act of 1957 and the Mineral Concession Rules of 1960, the state governments provide licenses for mining, also known as mineral concessions, for any minerals located within the state's borders. Therefore, regulations are formulated for the issuing of different types of mineral concessions. There are three different types of mineral concessions:

Objective of the Rules

The Mineral Concession Rules, 1960, were created with the intention of governing and regulating the issuance of licenses for prospecting and reconnaissance. The mining lease is likewise subject to these regulations. The rules were drafted in accordance with the authority granted by Section 13 of the Mines and Minerals (Regulation and Development) Act, 1957. The Central Government make rules related to the issuing licenses and mining leases.

Applicability of Rules

The rules are applicable to the following circumstances −

Significance of the Rules

The following are the implications −

Issuance of a Permit for Reconnaissance

The state government must receive an application, which must be submitted with the required payments. Along with the mining obligations, such as royalties and dead rent, etc., all necessary legal clearances are also required. When a request for a reconnaissance permission is personally given, its receipt must be recognized. The guidelines also include conditions that must be met before a reconnaissance permission may be issued.

Lease for mining granted

The State Government must receive an application for the issuance of a mining lease for land having mineral resources, together with the required fees and permissions. The State Government shall decide to designate a specific region for the indicated purpose upon receipt of an application for the issuance of a mining lease and shall notify the applicant of its decision.

License for Prospecting Issued

A valid clearance certificate must be presented along with the application and the required money when applying for the issuance of a prospecting lease in the prescribed format. The State Government must make a decision on a renewal application for a prospecting license prior to the prospecting license's expiration date. If it is not disposed of, it will be assumed to have been approved. After stating the reasons in writing and giving a fair chance to be heard, the prospecting license application may also be rejected.

Plan submission for mining

The central government must first authorize the submission of the mining lease before it can be made to the state government. The lease hold area map illustrating the type and extent of the mineral body, along with information on the area's geology and lithology, should be included in the mining plan. The map should also show any natural watercourses, reserve boundaries, other forest areas, and other geographical features at the mining site.

A prospecting lease may be granted when someone other than the government is the rightful owner

These regulations are particularly significant because they outline the process for granting a prospecting lease when ownership is held by an individual rather than by the government. The entity must have submitted ITRs and completed the self-assessment of income tax, for example, as a condition of these regulations' adoption and issuance of the prospecting lease.

Provisions under the Rules

The Mineral Concession Rules, 1960 contain 75 provisions and 5 schedules under the rule −

Rules	Chapter	Content
Rule 1 - 3	Chapter I	Preliminary
Rule 4 – 7D	Chapter II	Grant of reconnaissance permit
Rule 8 – 21	Chapter III	Grant of prospecting licences in respect of land in which the minerals vest in the government
Rule 22 – 40	Chapter IV	Grant of mining leases in respect of land in which the minerals vest in the government
Rule 41 –52	Chapter V	Procedure for obtaining a prosecuting licence or mining lease in espect of land in which the minerals vest in a person other than the government
Rule 53	Chapter VI	Grant of prospecting licences and mining leases in respect of land in which the minerals vest partly in the government and partly in private persons
Rule 54 - 55	Chapter VII	Revision
Rule 56 - 68	Chapter VIII	Miscellaneous
Rule 69 – 70	Chapter IX
Rule 72 - 75	Chapter X

Schedule

There are V schedules that can be defined as −

Schedule	Content
Schedule I	Forms
Schedule II	Application fee for prospecting licences
Schedule III	Maximum quantities of ores and minerals removable
Schedule IV	Omitted
Schedule V	Institutions/Banks/Corporations

Conclusion

The State Governments of India are the proprietors of the minerals found inside their respective borders under the country's federal system. The minerals that lie under the ocean in India's exclusive economic zone or territorial seas belong to the central government. The Mineral Concession Rules, 1960 grant mining concessions with regard to the minerals included in the First Schedule. It grants a person access to regions covered by a reconnaissance permission, a prospecting license, or a mining lease that exceeds the restrictions outlined in Sections 6(1)(a)(a), 6(1)(a), and Section 6(1)(b) of the Act, respectively.

FAQs

Q1. Who authorizes the mining process?

Ans. According to the requirements of the MMDR Act, 1957, and the Mineral Concession Rules (MCR), 1960, enacted thereunder, the State Governments give the mineral concessions for all the minerals located within the State's borders.

Q2. What are mining concessions?

Ans. An areas designated by governments for mineral exploitation businesses (mining). A license, permission, or other agreement that grants private firms the authority to exploit public lands is known as a concession.

Q3. What is grant of mining lease?

Ans. A mining lease is often provided for small to medium-sized alluvial and hard rock mining enterprises. The lease term for mining may be issued which may be vary from up to 20 years and may be renewed for further terms of up to 10 years.