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Basic - Mining Unit 4

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Basic - Mining Unit 4

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singhanuj969551
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MINING CONTRIBUTION TO CIVILIZATION

Mining may well have been the second of man’s earliest endeavors- granted that agriculture was his
first. The two certainly rank together as the primary or basic industries of human civilization.

Another way of expressing the fundamental importance of


mining in both ancient and modern culture is to recall that nature provides only limited source ways to
generate new wealth. In addition to parent age, they consist of mining and agriculture (which includes
farming, hunting, fishing, husbandry, and forestry).

Since prehistoric times, mining has been integral and


essential to man existence. Here the term mining is used in its broadest context a encompassing the
extraction of all naturally occurring mineral substances- solid, liquid, and gas- from the earth for
utilitarian purposes. By utilitarian we mean those essential human needs and desires that have been
uniquely met by minerals down through the ages. The most prominent are identified in table.

Man’s uses of minerals:


NEED OR USES PURPOSE AGE

Tools and utensils Food, shelter Prehistoric

Weapons Hunting, defense, warfare Prehistoric

Ornaments and decoration Jewelry, cosmetic, dye Ancient

Currency Monetary exchange Early

Structure and devices Shelter, transport Early

Energy Heat, power Medieval

Machinery Industry Modern

Nuclear fission Power, warfare Modern

BASIC MINING UNIT 4 Page 1


• In fact most of the culture ages of man are associated with and identified by minerals or their
derivatives. They include the stone age (prior to 4000 B.C.), the bronze age(4000 to 1500 B.C.),
the iron age (1500 B.C. to A.D. 1780), the steel age (1780 to 1945), and the Nuclear Age (since
1945). Nor is it coincidental that many milestones in human history- Marco polo’s journey to
china, Vasco Da Gama’s voyages to Africa and India, Columbus's discovery of the New World,
and the modern gold rushes that led to the settlement of California, South Africa, Australia, the
Canadian Klondike and Alaska- were achieved with minerals as the prime incentive or goal.

• It is also demonstrable that minerals and mining have been associated with the ascendancies of
the great civilization of history. Indeed, the far-flung expansions of the Roman Empire into Spain
and Britain, the conquest of North and South America by the Spanish, French, and English, and
the colonization of Africa and parts of Asia by a variety of European powers were fueled by the
lust for mineral wealth. A different sort of modern empire-an economic cartel, the organization
of petroleum Exporting Countries(OPEC)- exists to control petroleum prices and supplies in an
awesome exercise of mineral might.

NATIONAL MINERAL POLICY


The national mineral policy in India came into existence in 1944-45, but real mineral policy of nation was
given serious thinking during liberalization creating fuel, oil crisis in 1991. In 1993, for the first time
NATIONAL MINERAL POLICY was enunciated.

National mineral policy 1993:


 The main aim of the policy was:
 To encourage the flow of private investment in mineral industries.
 Introduce technological development in exploration of mineral and mining to meet the
requirement of country.

Short coming of the policy


 The policy was so designed that it gave way to procedural delays in processing of application for
mineral concession.
 The project got delayed.

So to the overcome the deficiency, a new mineral policy was enacted on


13-3-2008 known as NATIONAL MINERAL POLICY 2008.

The national mineral policy is as old as 1944-45, but first


NATIONAL MINERAL POLICY was enunciated by the government in 1993 for liberalization of mine
sector. In 1993 NMC (national mineral policy) aimed to encourage the flow of private investment and
introduction of state of the art technology in exploration and mining.

BASIC MINING UNIT 4 Page 2


 The short coming in this policy was procedural delays in processing of application for mineral
concession, so a new mineral policy was constituted on 13-3-2008.

NATIONAL MINERAL POLICY [NMP] 2008


 This gives a change in role of central and state government to give preference to private sector
investment in mining. This has basic of
 Transparency in the grant of concessions
 Promoting scientific mining
 Protect the interest of local population in mining areas
 Sustainable development
 Harmony with legislation and new national mineral policy

LEGISLATION
 The mines and mineral (Regulation and Development) act, 1957 was formed for regulation of
mines under the control of union. It was amended in 1972, 1986, 1994, 1999, 2004, and 2016.

The main issues in the NMP was based on six factors


1) Quality of life 2) Economic consideration

3) Regulatory agencies 4) Economic consideration

5) Legal frame work 6) Sovereignty

Again, there was change in NTIONAL MINERAL POLICY in 2008. The changes were as under

NATIONAL MINERAL POLICY 1993 NATIONAL MINERAL POLICY 2008

 Mineral resources were developed as per  Liberal view was incorporated so that
national scenario. private sector involvement is in industry

 Foreign direct investment was allowed up  More mechanization, less use of labour,
to 50% with no limit or captive mines. develops skilled labour and high technical
competence was introduced.
 Research and development in mineral In this policy there was clear directives for
was promoted.  Risk investment in survey and prospecting
 Joint venture
 Public private partnership introduction.

Short coming
 FDI in mining industry was not  This policy ignored the demand for relief
encouraged. and rehabilitation.
 Private agency showed lack of interest in  There was no mention to safe grand
investing in prospecting. environment social concern of people.

BASIC MINING UNIT 4 Page 3


 The government agencies like GSI, MECL,
were lacking resources to promote
exploration

National Mineral Policy, 2019


Focus on transparency, better regulations & enforcement, balanced growth & sustainability, Grant of
Industry status to Mining activity.

Benefits:

 The New National Mineral Policy will ensure more effective regulation.

 It will lead to sustainable mining sector development in future while addressing the issues of
project affected persons especially those residing in tribal areas

Objective:

The aim of National Mineral Policy 2019 is to have a more effective, meaningful and implementable
policy that brings in further transparency, better regulation and enforcement, balanced social and
economic growth as well as sustainable mining practices.

The National Mineral Policy 2019 includes provisions which will give
boost to mining sector. Some of the provisions are:
1. Introduction of Right of First Refusal for RP/PL holders.

2. Encouraging the private sector to take up exploration.

3. Encouragement of merger and acquisition of mining entities.

4. Creation of dedicated mineral corridors to boost private sector mining areas.

5. The 2019 Policy proposes to grant status of industry to mining activity to boost financing of
mining for private sector and for acquisitions of mineral assets in other countries by private
sector.

6. It also mentions that Long term import export policy for mineral will help private sector in better
planning and stability in business.

7. The Policy also mentions rationalize reserved areas given to PSUs which have not been used and
to put these areas to auction, which will give more opportunity to private sector for
participation.

8. The Policy also mentions to make efforts to harmonize taxes, levies & royalty with world
benchmarks to help private sector.

BASIC MINING UNIT 4 Page 4


9. The Policy also introduces the concept of Inter-Generational Equity that deals with the well-
being not only of the present generation but also of the generations to come and also proposes
to constitute an inter-ministerial body to institutionalize the mechanism for ensuring sustainable
development in mining.

Background:

 National Mineral Policy 2019 replaces the extant National Mineral Policy 2008 (“NMP 2008”).
The impetus to review NMP 2008 came about by way of a direction from the Supreme Court
vide its judgment in Common Cause v/s Union of India & Others.

What is EIA
Before commencement of mining operation the existing environment impact is assessed what is
environmental parameter before the commencement of mining . Such as air pollution, water pollution,
noise pollution, land biological and socio-economic impact.

The summary of EIA is as under

• Project description
• Description of environment
• Anticipated environmental impacts and mitigation measures
• Environmental maintaining program
• Additional study
• Project benefits
o Environmental management plan

Land, water and air

Land
It is desired that land is to be reclaimed as it then is the mining should not completely
destroy the land use after mining. So while preparing EIA following information is incorporated:-

• Nature of land/soil topology


• Materials:- Physical and chemical nature of raw material.
• Source of raw material
• Precautionary measure
• Mine discharge
• Top soil preservation and reuse
• Project output
• Hazard/toxic material management

BASIC MINING UNIT 4 Page 5


Check list for review of land environment
• Change in topology • Erosion
• Change in vegetation • Chemical uptake
• Change in wildlife habitat • Species divagation and evolution
• Aquatic habitat • Agricultural land
• Depletion of nutrients • Flora and fauna
• Re vegetation • Core zone within 10km
• Fires • Suffer zone within 10km etc.
• Drought

Water

Surface water:-
water: Ground water:-
water:

• Water quality • Water level


• Drainage pattern • Water quality
• Water balance • Recharge rate
• Flooding • Aquifer characteristics
• Siltation

Air
• Air quality
• Visibility
• Metrology
• Noise and vibration

Abatement of air pollution


1. Blast hole drilling was with dust extraction.
2. In pit crushing and conveying of coal and OB was preferred to minimize haul road dust.
3. Use of water jet sprayer at receiving/loading and unloading points.
4. Chemical additives were used to suppress dust in some of the haul road.
5. Trial with auto water jet sprinkler on haul roads to suppress dust.
6. Formation of green belt barrier around the working zone and residential areas to trap fugitive
emission and dust.
7. Routine monitoring of dust pollution and preventive measures to contain dust pollution.
8. Dust suppression through heavy dut dutyy water sprinklers, spot sprinklers, road watering trucks at
sensitive points such as haul roads, waste rocks handling points, crushing and screening plants.
9. Dust extraction arrangement with heavy mining equipments, crushing and screening plants.

BASIC MINING UNIT 4 Page 6


10. Alternative transport of ore and waste rocks to minimize movement of vehicle-dumper or
trucks.
11. Water sprays, hoods, dust collectors with the drills.
12. Installation of hoods at transfer points, proper design of chutes, under belt cleaning device and
vulcanizing of conveyor belt joints.
13. Leak proof design of dumper trucks bodies and or chemical spraying to prevent dust being air
borne.
14. Application of water gel, calcium chloride or aluminum hydroxide to expedite air dust settling
over the haul roads.
15. Pollution control through plants, trees and green belt along the roads, around residential area
and project site.

How it is conducted?

 EIA is prepared and submitted to secretary MOEF; who sends it to EIAA (environment
impact assessment authority). It comprises of three members
o Chairman
o Member secretary
o Two member from professional/Institution

There are two types of EIAA

 SEIAA (state level)


 CEIAA (central level)
 E.A.C [Expert Appraisal Committee]

• S.E.A.C [State Expert Appraisal Committee]

• May inspect the site and give observation once the EIA is approved, EMP is prepared and EC is
obtained and so the mining start.

There are seven stages of mining


1. EIA, EC and FC clearance and PR approval.
2. Exploration and land acquisition activity is started
3. Project development
4. Mine operation
5. Supervision
6. Mine closure
7. Post closure

BASIC MINING UNIT 4 Page 7


MMDR ACT 2015
Analysis of the MMDR (Amendment) Act, 2015
The MMDR Amendment Act, 2015 seeks to introduce a more predictable and clear regulatory
and policy environment for the mining sector, so as to do away with delays and improve
transparency in allocation of mineral resources. Provisions of the Act are in line with the
recommendations of the Anwarul Hoda Committee on National Mineral Policy. The Bill focuses
on attracting private investment and leveraging the latest technology so as to enable
expeditious and optimum development of mineral resources of the country. It brings clarity on
licensing terms, auctions and transfer of concessions. The most significant provision of the Bill is
the introduction of competitive bidding process for granting new mining leases.

Introduction of category specified as ‘Notified Minerals’ under the


Fourth Schedule
The Amendment adds a new schedule to the MMDR Act, 1957, which includes Bauxite, Iron Ore,
Limestone and Manganese Ore. The 4 minerals are defined as notified minerals and their end
use is specified by the Central Government under the newly released mineral auction rules.
Accordingly, bauxite, iron ore and limestone can only be reserved for the end-use of alumina,
integrated steel plants and cement plants by state governments respectively whereas a
manganese mine can’t be reserved for any end-use. Moreover, a two-stage auction model
comprising of a technical bid initially followed by a financial bid has been proposed for iron ore,
bauxite, and limestone or manganese ore.

Removal of discretion: auction to be sole method of allotment


The Amendment removes discretion in the grant of mineral concessions. While all mineral
concessions would continue to be granted by the respective State Governments, the grant of
mineral concessions would be through auctions, thereby bringing in greater transparency and
removing discretion. It is also clearly specified that all mining leases would henceforth be
granted for a period of fifty years as against the thirty years earlier and this would also be
applicable for the mining leases granted before the commencement of the MMDRA. There will
be no renewal of any mining concession and all mining leases would be put for auction at the
completion of the tenure. This provision shall apply to all minerals other than coal, lignite and
atomic minerals. Auctioning would

BASIC MINING UNIT 4 Page 8


Provision of Composite License i.e. Prospecting License-cum-Mining
Lease (PL-cum-ML)
Under the existing act, there were 3 kinds of licences that could be granted: Reconnaissance
Permit (RP), Prospecting Licence (PL) and Mining Lease (ML). A RP is granted for preliminary
prospecting through regional, aerial, geophysical or geochemical surveys and geological
mapping. A PL is required for exploring, locating and proving mineral deposits. An ML is required
to finally extract minerals. The Amendment creates a new category of mining licence i.e. the
prospecting licence-cum-mining lease (PL-cum-ML) referred to as the Composite Licence, which
is a two stage-concession for the purpose of undertaking prospecting operations (exploring or
proving mineral deposits), followed by mining operations.

It is in accordance with the new provisions that the


Central Government has come out with the new mineral auction rules.

Companies that were granted reconnaissance


permits or prospecting licenses before the implementation of the new mining law will have the
first right on prospecting and mining licenses, respectively.

Permits Under the Old Law Under the Amendment

Reconnaissance Permit As per the discretion of the Non-exclusive Reconnaissance Permits


state government (NERP) to be given as per the discretion of
state government. The NERP has to be
issued within 30 days to the company upon
submission of online application along with
the required documents. Data found is to be
submitted with government for auction.

Prospecting Licence RP holder had the first PL would be given directly to old RP holders
right to PL. Decision was only. New NERP holder will have to submit
taken as per the discretion the data and would have to bid for
of the state government. composite license (PL- cum -ML)

Mining Lease PL holder had the first right ML would be given directly to old PL holders
for ML. Decision was taken only. Now, ML would be awarded through
as per the discretion of the auction only
state government.

BASIC MINING UNIT 4 Page 9


Removing pendency of applications for renewal: Impetus to the mining
sector
Continued operations in the mining industry have been affected due to the pendency of applications for
second and subsequent renewals. In fact, this pendency has led to closure of large number of mines. The
Amendment Bill, 2015 addresses this issue also and allows extension of the lease period up to 31st
March 2030 for the captive mines and till 31st March, 2020 for the merchant mines or till the
completion of the period of renewal already granted, if any, whichever is later. It is expected that this
would immediately permit re-opening of mines that have got closed due to want of decisions on their
applications for second and subsequent renewals to start their operations, subject to the necessary
clearances. Provision has also been made to allow transfer of mining leases, after securing the requisite
approval from the State Government within a timeframe of 90 days from submission of notification.

Establishment of District Mineral Foundation: Safeguarding interests of


affected persons
The Amendment Bill introduces a mandatory provision to establish a trust, a non-profit body
known as the District Mineral Foundation (DMF) in all districts where mining related operations
take place. The establishment of the DMF has been introduced to address the concerns of local
people in such districts, and work for the interest and benefit of the locals in mining affected
areas. The composition and functions of the DMF would be prescribed by the State
Government, which has to conform to the provisions of such acts as the Panchayats (Extensions
to Scheduled Areas) Act, 1996, Scheduled Tribes and Other Traditional Forest Dwellers
(Recognition of Forest Rights) Act, 2006 as well as provisions of the Constitution relating to Fifth
and Sixth Schedule areas while framing these rules. It also specifies the contribution to the DMF
of an amount not exceeding one-third of the royalty rate in case of new mining concessions,
while existing concession holders may have to pay up to 100% of the royalty

Setting up the National Mineral Exploration Trust (NMET): Encouraging


exploration
India has the same geological strata as that of Africa and Australia and thus is likely to have a
similarly large geological potential. It is therefore, crucial to get detailed exploration profiles for
India. However, aeromagnetic survey has covered only 18 per cent of the India’s total area in
contrast to 90 per cent of Australia’s total area covered since 1990 and Australia spends 246
USD per km2 , which accounts for 13.1% of the world’s total exploration budget as compared to
0.4% in case of India2 . To address this, the Amendment has defined a provision to setup a
National Mineral Exploration Trust (NMET) with the objective of using funds contributed by the
holders of a ML or a PL-cum-ML for carrying out extensive exploration exercises. The
contribution shall not exceed a sum equivalent to two per cent of the royalty rate. The
composition and functions of this trust would be prescribed by the Central Government.

BASIC MINING UNIT 4 Page 10


Simplification of procedures and avoidance of delay and stringent
provisions against illegal mining
In respect of ten minerals in Part C of First Schedule, State Governments needed to obtain the
prior approval of the Central Government before grant of mineral concessions. The Amendment
removes the need for such “prior approval” or approval of mining plan of the state from the
Central Government, thereby making the process quicker and simpler. All offences under the
Act will now be subject to a maximum punishment of 5 years imprisonment or fine of Rs. 5.00
lakhs per hectare. State Governments are also empowered to set up Special Courts for speedy
trial of offences under the Act.

Conclusion
The Amendment Act is in line with the vision of the Ministry of Mines
to promote optimal utilization of India’s mineral resources for its industrial growth and create
economic surplus using scientific exploration and sustainable mining practices. It lays down a
comprehensive legislative framework to ensure a fair and transparent manner of allocation, while
safeguarding the interests of the local community and people affected by mining activities. It would
open up the sector to enhanced activity from existing and new players, and thereby increase the
productivity of the mining sector.

 The mineral rich states such as Odisha, Jharkhand and Chhattisgarh would benefit from the
increased revenue and livelihood opportunities. It should be remarked though that the Centre’s
role in the system ends with formulation of rules and auctions need to be conducted by the
states in a planned and time-bound manner, which would ensure greater flow of funds into the
state coffers However, in order for the mining sector to realize its full potential, more steps
need to be undertaken to create a conducive environment for the industry to flourish such as:

 Meeting the need-based skill requirements of the mining industry on a short-


term and long-term basis
 Improving and expanding physical and logistics infrastructure and
 Ensuring active involvement of all concerned stakeholders

National mineral policy- mineral coal statistics

National coal policy an overview


 National coal policy have to fulfill following strategies:
o To fulfill energy deficit.
o To find scope of alternate source of energy.

BASIC MINING UNIT 4 Page 11


To meet energy deficit
 Any mining industry has to undergo following restriction of government.
o Conservation of non-renewable energy.
o Conservation of environment.
o Reclamation of land.
o Implementation of safety policy of workers.
o Doing corporate social responsibility.
o Permission of rehabilitation and resettlement policy fulfillment.
o Restoration of flora and fauna.
o Best land use plan and mine closer plan.
o Sustainable development activity.
o Meeting requirement of national need of coal.
o Forest land and agriculture land shortage created by mining to be restored.
o Premise employment.
o Mechanization of mines both underground and opencast.

Challenge
 Opencast mining is major source of land degradation. The requirement is to be restoring pre
mining situation. There are at present nearly 170 opencast mine which requires recreation of
flora and fauna.

 Dump stability : - As per statute the dump height has to be a maximum limit of 90 meter as the
mine are going deeper, it is halted.

 for maintaining the same scientific methods like use of G.S, GPS, RADAR are being used for both
bench and slope stability.

RECLAMATION
 Once the coal is taken out restoration of land at least pre mining situation is required to be
done. When stripping ratio is low it is difficult but in higher stripping ratio it is to be done.
 Use of geo spatial technology is need.
 There are nearly 160 opencast mines in India and many are to come up.

Land use:
2, 50,000 ha of land are use in coal mining in WB, ORRISA, JHARKHAND, CHATTISGARGH.

Coal pricing
Coal pricing is based on GCU and quality but ultra mega power plant are establish which
requires better coal.

BASIC MINING UNIT 4 Page 12


Environmental and social responsibility activism
This need to be reddened otherwise land issue will be hard to reduce.

Prospecting
 Geo spatial
o Pre mining survey
o Prospecting
o Survey for land use
o Flora fauna reclamation is required
o Which need to be faced and hand fact and situations.

National mineral policy


The following parameters were incorporated in national mineral policy

SRI Anwarul Hoda planning commission was formed which stuttered its repeat in year Dec 2006 and
new national mineral policy was formulated in 13.3.2008, recently MMDR was amended which was
having permission for lease giving of 50 yrs instead of 30 yrs. There will be renewal of lease but by
adding it may be transformed.

 The mineral lease will be granted after going the mine plan prepared scientifically and fulfill the
following criteria.
o Financially viable
o Socially responsible
o Environmentally, technically and scientifically sound
o Long term view of development
o Optimum utilization of resource i.e. mineral
o Sustainable post closer and land use plan.
o Mine impact assessment management planning
o R&D
o Community engagement
o Sustainable development front and corporate responsibility as per company act 2% of
net benefit is to be spending for the CSR.
o Mine closer plan 1st stage 5yrs period and final mine closer plan for lifetime

Energy consumption figure as 2016


Crude oil 217.7 mtoe 29.38%

Natural gas 45.1 mtoe 6.23%

BASIC MINING UNIT 4 Page 13


Coal 441.9 mtoe 56.90%

Nuclear 8.6 mtoe 1.19%

Hydro electric 29.1% mtoe 4.01%

Renewable energy 16.5 % mtoe 2.28%

mtoe = Million tons of oil equivalent


ELECTRICALLY CONSUMES 10% OF FOSSIL FUEL

Energy impact by 2030 53% of total energy consumption of country recourses.

Sustainability principle have application for all stages of mine life cycle
as
 Exploration
 Planning
 Construction
 Mineral extraction
 Mine closer reclamation & rehabilitations

Terms
 Scientific mining
 Environment protection
 Local engagement
 Local socio economic development
 Accountability
 Better utilization of natural resources.

BASIC MINING UNIT 4 Page 14

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