Mines and Minerals Act: An Overview

It is a known fact that the union cabinet has given a new proposal for the Mines and Minerals Act, 1957, which informs us of the rates of certain minerals, which include the following: potash, platinum, emerald, etc.

Facts & Update of the Mines and Minerals Act

The Act revised again recently to give the mineral division more driving force. Under the changes, the government has given a major boost to the sale of mineral blocks, thereby expanding generation, improving ease of doing commerce within the nation, and expanding the commitment of mineral generation to gross domestic product (GDP).

The reforms made are within the arrangements related to statutory prerequisites; the removal of end-use restrictions for captive mines and the division between captive and non-captive mines; the exchange by sell off of mineral-concessions; the National Mineral Investigation Trust; the National Mineral Index (NMI), the consideration of the private segment, and so on.

The Ministry of Mines has also taken steps to extend the investigation of minerals, which has led to the accessibility of more blocks for auction. Exploration exercises have expanded not only for conventional minerals such as press minerals, bauxite, and limestone but also for deep-seated minerals, fertilizer minerals, basic minerals, and minerals that are imported. In the last 4-5 years, central organizations such as the Topographical Study of India and Mineral Investigation Organization Ltd. have carried out investigations and given reports to the states.

Mineral Concessions

There are three sorts of mineral concessions, viz., reconnaissance permit (RP), prospecting license (PL), and mining lease (ML). RP is allowed for the preparatory prospecting of a mineral through territorial, ethereal, geophysical, or geochemical studies and geographical mapping. PL is permitted for operations aimed at investigating, discovering, or demonstrating mineral deposits. ML is permitted to conduct operations aimed at obtaining any mineral.

Insight into the Act

The endorsement would guarantee the auction of mineral blocks with regard to glauconite, potash, emerald, platinum bunch of metals. In this manner, the sale of these minerals would lessen the consequence of these minerals'’ sparing of profitable forex reserves. Glauconite and potash are utilized as fertilizers in horticulture. The platinum group of metals, as well as andalusite and molybdenum, are high-value minerals used in a variety of industries.

The Service of Mines has proposed sensible rates of sovereignty in an effort to empower superior cooperation within the auction of mines. An eminence could be an expense that's forced by nearby, state, or federal governments on either the sum of minerals created at a mine or the income or benefit produced by the minerals sold from a mine.

The Mines Service will provide a method for calculating the average sale price (ASP) of these minerals, which is required for authorizing the sale of these mineral blocks. The rate of eminence for Andalusite, Sillimanite, and Kyanite, which are mineral polymorphs, is kept at the same level. Polymorphs are minerals with the same chemical composition but diverse gem structures. The endorsement will offer assistance in creating stronger openings within the mining division as well as the fabricating division, which can offer assistance in guaranteeing the comprehensive development of an expansive area of society.

The Regulation of Minerals in India

The state governments are the owners of minerals found inside the boundary of the state concerned. The District Mineral Establishments are statutory bodies in India, built up by the state governments by notice. They determine their lawful status under the Mines and Minerals (Advancement and Direction) Act, 1957 The objective of Area Mineral Establishment is to work for the benefit of the people and ranges influenced by mining-related operations in such a way as may be endorsed by the state government. The Central Government is the proprietor of the minerals underlying the ocean within the regional waters, or the Exclusive Economic Zone of India. The International Seabed Authority (ISA) is the organisation through which UN Convention on the Law of the Sea (UNCLOS) States Parties organise and control all mineral-resources-related activities within the Area for the benefit of all humanity.

Granting of the Mineral Concessions

The state governments allow mineral concessions for all the minerals found inside the boundary of the state, under the arrangements of the Mines and Minerals (Improvement and Direction) Act, 1957, and Mineral Concession Rules, 1960. However, for minerals indicated within to begin with Plan to the Mines and Minerals (Advancement and Control) Act, 1957, endorsement of the Central Government is vital. Plan I contain minerals such as coal and lignite, minerals of the "rare earth" group containing uranium and thorium. Also, the Central Government informs certain minerals as "minor" minerals from time to time, for which the outright powers for choosing strategies for looking for applications for and allowing mineral concessions, settling rates of eminence, dead leases, and controlling the reexamination of orders rest as it were with the state government.


The modern Act stipulates that reserves accessible to the District Mineral Foundation shall be utilized for the conveyance of money related advantages to people or families influenced by mining related operations within the locale; and to undertake such other exercises as are in advancement of the question of the establishment, including the creation, administration, and support of such local infrastructure for socio-economic purposes in ranges influenced by mining related operations; and encouraging the usage of the Feasible Improvement System.

Frequently Asked Questions

Q1. What would be the status of existing concessions under the New Mines and Minerals (Development and Regulation) Act?

Ans: All valid concessions granted under the current regime will be maintained under the new Act.

Q2. What would be the status of applications pending with the state government at the time of commencement of the new Act?

Ans: Except for applications for −

  • seamless transition from RP to PL and PL to ML;

  • prior approval of the Central Government; and

  • applications where a Letter of Intent (LOI) to grant a concession has been issued,

All other applications shall be withdrawn.

Q3. What does the new Act have to say about creating a grid-lock?

Ans: The New Act provides that 

No direct mining lease unless area is notified by the State Government

Updated on: 11-Jan-2023


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