Geonesis Volume 7 , Issue 11

Whose minerals are they anyway?

 Over the past few months, the
government of India has been focus-
ing on the mining sector to revive
the country’s economy but it is
feared that it could mean a troubled
time ahead for communities in-
volved and environment.

 However, the major question is

whether such a push is in line with
the National Mineral Policy 2019 of
India which talks about the concept
of inter-generational equity as far as
mineral wealth is concerned.
The organisations involved with the
communities that are impacted by
the mining believe that protection
conflicts, pollution issues (water, air of the shared inheritance is men-
and welfare of tribal people and
and soil), health impacts, continue tioned in the Indian govern-
poor are rarely the focus area of
suffering even as new areas that will ment’s National Mineral Pol-
mining plans which are heavily fo-
be opened for mining come with a icy 2019. It noted that “natural re-
cused on higher revenues.
potential threat to the local ecology, sources, including minerals, are a
To tackle the already slowing econ- including biodiversity, forests and shared inheritance where the State is
omy, whose condition further dete- the communities. a trustee on behalf of the people and
riorated after COVID-19 pandemic, therefore it is imperative that alloca-
Odisha-based tribal rights leader
the Indian government is pushing tion of mineral resources is done in
Deme Oram said that communities
for more mining. But is this push for a fair and transparent manner to
whose areas have been destroyed
more revenue in line with the prin- ensure equitable distribution of min-
due to the greed of mining compa-
ciples in India’s mining policy that eral wealth to sub-serve the com-
nies and the state authorities are
talk about sustainable mining and mon good.”
helpless. “There are many Supreme
minerals being a part of shared in-
Court orders which state that min- The policy had stressed that mining
heritance with future generations?
ing in scheduled areas (as per the needs to be carried out in an envi-
Over the past few months, Prime Indian constitution), should be done ronmentally sustainable manner
Minister Narendra Modi and vari- through cooperatives that have keeping stakeholders’ participation,
ous other ministers in his govern- tribal communities as members. But and devolution of benefits to the
ment have emphasised that the push it is rarely done and such orders are mining-affected persons with the
for mining including coal will result openly violated by states to favour overall objective of maintaining a
in additional investments and reve- corporates and money bags,” Oram high level of trust between all stake-
nue worth hundreds of billions of told Mongabay-India. He is the holders.
rupees. The government has already member of Mines, Mineral and Peo- But the on ground situation shows
unveiled more reforms in the min- ple (MMP), an alliance spread across that rarely happens as conflicts re-
ing sector. 18 states with more than 100 grass- lated to land, health and ecology in
Meanwhile, communities that are roots groups and about 20 diverse the mining sector are found in
already struggling with land support organisations.
The concept of minerals being part Continued on Page 2...

Page No 1
Geonesis Volume 7 , Issue 11

abundance. Once the mining starts, to think about who owns the min- trustee apply to the government,
the life of the communities in and eral wealth and how that should be including the duty to protect the
around mining areas takes a turn for preserved for future generations. corpus of the trust, prevent theft,
the worse and even when the min- They are busy saving their present loss or waste, and a duty to treat
ing is over its after-effects have and trying to earn their livelihood,” beneficiaries equally.
shown to continue to impact peo- said Oram. On the government’s efforts to boost
ple. Increasingly, the concept of just Is sustainable mining the key- the mining sector, Basu said it is
transition is being discussed which word? “absurd to think increasing mining
deals with the discussion around
India’s National Mineral Policy 2019 will lead to an economic revival.”
sustainable mining and the impact
had also emphasised that mining “Average daily employment in non-
of operational mines on people and
operations shall not ordinarily be fuel major mineral mines is only
ecology.
taken up in identified ecologically around 100,000, around 0.25 percent
“Even if tribal communities form a fragile and biologically rich areas. It of India’s workforce. And mining is
cooperative, or they get together had noted that the government shall steadily getting more mechanised.
and start mining there is no one identify such areas that are critically Further, if we see minerals as inher-
who will buy products from them fragile in terms of ecology and de- ited wealth, surely it is better to pur-
and let them flourish. Moreover, clare as ‘in-violate areas’ or ‘no-go chase the minerals we need from
when mining is done by corporates areas’ out of bounds for mining and others and keep our own minerals
the poor people are exploited and with a view to reducing pollution, safely for our future generation,”
the local ecology (air, water and carbon footprint and operational Basu told Mongabay-India.
soil) is completely destroyed. People costs, use of renewable sources of
are left to suffer and they have no- He explained that for most minerals,
energy at mining sites will be en-
where to go. The state authorities the existing mines in the country
couraged through appropriate in-
whose prime responsibility is to have sufficient reserves to supply
centives.
protect the rights of people are industry and thus it would be pref-
It had even suggested an inter- erable from community rights and
working for corporates. Even the
ministerial mechanism to decide the environmental standpoint to expand
District Mineral Foundation funds,
limits on the extent of mining activi- existing mines rather than open new
whose control should have been
ties that should be permitted includ- mines.
with communities, is being used by
ing a detailed study for assessing
authorities for work like roads etc “However, the government seems
the ceiling of annual excavation of
which should have been done for focused on giving away large tracts
minerals, considering the availabil-
those people irrespective of the for new extraction projects at exactly
ity of mineral resources, the carry-
DMF,” said Oram, who focuses on the worst time to be selling wealth.
ing capacity of the region, and the
land rights of the tribal people and Even with the existing mines, there
macro-environmental impact on the
governance in Fifth Schedule areas. are many violations of community
region while also “keeping in mind
Fifth Schedule areas are tribal- rights and environmental laws. For
the principles of sustainable devel-
dominated areas identified under example, all mines in Goa were
opment and intergenerational eq-
the Indian Constitution where spe- found to be violating one or more
uity and all other relevant factors.”
cial care is taken for rights and wel- law. Why is it that the Indian min-
fare of tribal communities. Rahul Basu, who is the research di- ing industry is simply unwilling to
rector at Goa Foundation, a Goa- follow the law? It would be better
For instance, he said, around 20
based environmental group, said for the government to first do an
years ago, when sponge iron plants
that it is important for governments intensive study of all existing mines
started in Odisha, people were told
to recognise that since natural re- to see if they are following the law,
that it would bring development.
sources, including minerals, are especially in connection with com-
“The only thing those plants have
common wealth held in trust, not munity rights and the environ-
done is to destroy the lives of people
proprietary assets of the govern- ment,” argued Basu.
and air, water and soil. In such a
ment in power, all the duties of a
scenario, communities have no place
Continued on Page 3...

Page No 2
Geonesis Volume 7 , Issue 11

He further remarked that in cases communities but that never hap- meant to protect the rights of the
where any violations are found, the pens,” Namdeo told Mongabay- communities. How does any min-
local communities should be prop- India. eral extraction make sense when it
erly compensated, the environ- evicts and dispossesses millions
Minerals are a shared inheritance
mental damage restored, the of- from their life and livelihoods for
Mining is an important sector in the benefit of a few corporates? Is
fending lessees blacklisted, and the
India’s economy and results in raw the state trust-worthy?” Swetlena
leases auctioned off.
material for many other industries questioned.
But what irks the communities is in the country. Right now, India
that the promised development due Rahul Basu of Goa Foundation said
now produces 95 minerals and is
to mining rarely reaches them. we need to ensure our children and
among the top producers of coal
future generations inherit at least as
Sanjay Namdeo, who is the head of and iron ore globally. There are
much as we did and we must en-
the Communist Party of India (CPI) thousands of mining leases across
sure we capture the full value of
in the Singrauli district, stressed the country. Over the past few
our mineral wealth, save the entire
mineral-rich Singrauli area, which months, the central government has
proceeds for future generations,
is dominated by tribal people, was a been focusing on pushing the min-
and distribute the income from the
land of abundant water, forests and ing sector to boost the economy.
new investments equally to all as a
agriculture but has now been rav- For instance, it first allowed com-
citizens dividend, a right of owner-
aged due to human greed. mercial coal mining to increase coal
ship.
production and then, in August
“The experience of extensive min-
2020, proposed reforms in the min- “At present, governments wrongly
ing in this region over the past few
ing sector. treat royalties as revenue, not a
decades has shown everything that
capital receipt, and merrily spend it,
is bad with the mining industry. But the question is whether such
cheating our children and future
Ideally, the communities should reforms will be able to improve the
generations of their rightful inheri-
have full right over the water, for- lives of the communities involved.
tance. There are a number of other
ests and land as they nurture it over SaswatiSwetlena of the Mineral In- inheritances that are depleted by
the years. But governments fail to heritors Rights Association (MIRA), mining, including the environment,
do so. For example, in Singrauli, the a network of civil society groups, the social fabric of the local commu-
government failed to ensure that said mineral resources are a shared nity, the employment and incomes
people get the benefit. Instead, it is inheritance and are best safe- associated and the right to use the
the industrialists who get all the guarded by the local communities ore for useful things. Each of these
benefits. Secondly, mining should for the future generations. inheritances is also subject to the
have improved the lives of people
“The local communities particu- inter-generational equity principle,
involved or impacted by the mining
larly, women, must be recognised and mining must be planned in
sector including those whose liveli-
as the custodians of all forms of such a way to ensure we avoid, re-
hoods were based on the land
natural resources and its govern- store or offset any damage to these
where mining is taking place. But
ance as their fundamental right to inheritances, and if that is not possi-
this never happened and instead,
ensure environmental justice. In the ble, capture the full value and save
their lives have been completely
name of ease of business and public it for future generations. This is
destroyed. The mining profits
purpose, the state has been violat- only ethical, moral, fair, just and
should have been shared with the
ing every legal provision right,” Basu remarked.

Page No 3
Geonesis Volume 7 , Issue 11

Covid hits mines revival, auction in State

While the Odisha Government Covid-19 related expenditure proper utilisation of the re-
is preparing a roadmap for re- on public health, livelihood sources. The mineral blocks,
vival of non-working mines to generation, social security net where exploration has been
spur the mining activities, the and internal security, officials completed, are to be listed for
Covid-19 is coming as a stum- admit. auction and those mineral
bling block in this regard. blocks, which are under explo-
So the Department of Steel and
Revival of non-working mines Mines is actively engaged in ration, the process will be expe-
and expeditious auction of the preparing a road map for re- dited, so as to complete it as
mineral blocks will augment the vival of non working mines, soon as possible, said sources.
production of minerals and also officials say. While the Govern- The Ministry of Mines is also
increase the revenue of the State ment of India is harping on re- providing inputs to the State
Government by way of auction vival of non working mines Government for preparing the
premium and royalty, but the across the country and advised road map and accordingly the
process is experiencing hurdles the State Governments to work action plan is being prepared by
during the pandemic. on this line, the Odisha Govern- the Department of Steel and
While almost all revenue gener- ment is initiating appropriate Mines, officials say.
ating sectors failed to generate action for activation of these Though the process has been
revenue in the ongoing crisis, resources. activated, the Covid-19 has
the mineral sector stood by the The Odisha Government has posed a serious problem in this
State in good stead and has been successful in going for regard, officials admit. While
been able to generate resources auction of 22 mineral blocks Covid-19 has presented an ad-
to support the developmental and, now, the stress is on re- verse situation, the authorities
funding, officials admit. Collec- vival of non working mineral are reluctant to go ahead with
tion up to August 31, from min- blocks in the State. The Minis- auction process as condition is
eral sector was Rs 5,074.25 try of Mines has charted out a not favorable. Accordingly,
crore, which was 13.44 per cent design for revival of non work- Minister Steel and Mines had
more than the corresponding ing mines and listed out the requested to defer auction of
period of August 2019, which unutilised resources. After re- coal blocks by three months.
was Rs 4,473 crore. Mainly one- vival of these non working Out of the 41 coal blocks, nine
time collection from mining mines, the process will start for are listed from Odisha for auc-
leases renewal provided much auctioning of these natural re- tion.
needed fiscal space to meet the sources, so that there will be

Page No 4
Geonesis Volume 7 , Issue 11

BIDDING PATTERN FOR COMMERCIAL COAL BLOCK

AUCTIONS : Abhinav Sengupta
Ministry of Coal (MoC) had recently conducted for 19 coal blocks. Below are Mining, Steel, Power, Sponge Iron, Ce-
conducted the first ever commercial coal the few observations from the bids sub- ment, Real estate, Metals, Chemicals,
block auctions. There were total 38 mitted MDO players, Logistics companies and
blocks offered spanning around 5 states 1.Only 23blocks out of 38 has witnessed traders have participated in the
Madhya Pradesh, Chhattisgarh, Odisha, participation i.e. (~60% success factor) 1sttranche of commercial coal auc-
Maharashtra & Jharkhand. In total 278 with average no. of bids in participated tions.4. Only 50% of partially explored
tenders were purchased by the bidders coal blocks is ~3.30 coal blocks has got responses namely
and finally 42 companies had partici- Urma Pahritola (Jharkhand) & Bandha
pated in 23 coal blocks submitting 76 (approximately).2.Chhattisgarh has seen (Madhya Pradesh).
bids. Out of these 23 coal blocks 4 blocks the tepid response with only
5.Approx. 71% of bidders has shown
had received 1 bid each and were stand 2 blocks out of 7 got bids while Ma- interest towards OC blocks while 21%
cancelled for forward auctioning, there- harashtra’s 2 blocks got 100% response. has shown towards UG blocks and re-
fore forward auctioning will be
3.Bidders spanning across sectors like maining 8% towards OC& UG Blocks

Capacity Stripping Mine Exploration No. of

No Coal Blocks Grade State
(MTPA) Ratio Type Status Bidders
1 Brahmadia 0.15 10.63 S-I OC Fully Explored Jharkhand 6
2 Chakla 5.3 4.46 G11 OC Fully Explored Jharkhand 3
3&4 Chendipada & Chendipada II 40 2.06 G10 OC Fully Explored Odisha 1
5 Chitarpur 3.45 2.42 G13 OC & UG Fully Explored Jharkhand 0
6 Choritand Tiliaya 0.78 9.78 W-V OC Fully Explored Jharkhand 0
7 Gare-Palma-IV/1 6 3.4 G12 OC Fully Explored Chhattisgarh 3
8 Gare-Palma-IV/7 1.2 3.36 G11 OC Fully Explored Chhattisgarh 8
9 Gondulpara 4 1.77 G10 OC Fully Explored Jharkhand 4
10 & Madhya
Gotitoria (East) & Gotitoria (West) 0.3 8 G8 OC Fully Explored 8
11 Pradesh
12 &
Machhakata & Mahanadi 30 2.44 G11 OC Fully Explored Odisha 0
13
Madhya
14 Marki Barka 1 UG G8 UG Fully Explored 0
Pradesh
15 Marki Mangli II 0.3 7.4 G8 OC Fully Explored Maharashtra 3
16 North Dadu 8.15 3.39 G12 OC Fully Explored Jharkhand 0
17 Radhikapur (East) 5 3.61 G13 OC Fully Explored Odisha 4
18 Radhikapur (West) 6 4.19 G13 OC & UG Fully Explored Odisha 4
19 Rajhara North 0.75 2.56 G8 OC Fully Explored Jharkhand 4
20 Seregarha 4 2.97 G13 OC Fully Explored Jharkhand 1
Madhya
21 Saharpur East 0.7 UG G8 UG Fully Explored 4
Pradesh
Madhya
22 Saharpur West 0.6 UG G7 UG Fully Explored 4
Pradesh
23 Shankarpur Bhatgaon II Extn. 2 16.76 G6 OC & UG Fully Explored Chhattisgarh 0
24 Sondhia 1 13.79 G10 OC & UG Fully Explored Chhattisgarh 0
Takli-Jena-Bellora(North) & TakliJena-
25 1.5 NA G8 OC & UG Fully Explored Maharashtra 2
Bellora (South)
Madhya
26 Thesgora-B/ Rudrapuri 1 UG G9 UG Fully Explored 0
Pradesh
Madhya
27 Urtan North 0.6 UG W-IV UG Fully Explored 3
Pradesh
Partially Ex-
28 Urma Paharitola 10 NA G10 OC Jharkhand 6
plored
Partially Ex- Madhya
29 Bandha 5 UG G7 UG 3
plored Pradesh
30 Brahmanbil & Kardabahal 25 NA G12 OC Fully Explored Odisha 0
Madhya
31 Dhirauli 3 NA G8 OC Fully Explored 2
Pradesh
32 Dolesara 1.74 NA G12 OC Fully Explored Chhattisgarh 0
Partially Ex-
33 Jarekela NA 2.68 G11 OC Chhattisgarh 0
plored
Partially Ex-
34 Jharpalam Tangarghat NA NA G11 OC Chhattisgarh 0
plored
35 Kuraloi (A) North 8 NA G13 OC Fully Explored Odisha 1
Madhya
36 Marwatola Sector-VI & Sector-VII 4 NA G9 OC Fully Explored 0
Pradesh
37 Phuljhari (East & West) 10 7.32 G13 OC Fully Explored Odisha 0
Madhya
38 Urtan 0.65 UG W-III UG Fully Explored 2
Pradesh

Source: MSTC-e Commerce State Continued on Page 6...

Page No 5
Geonesis Volume 7 , Issue 11

State wise Bidding Pattern Analysis

Non-
Participation
Participants Partially Ex- No. of UG
State Total Blocks Success (%) No. of Bids Avg. Bids
plored Blocks Blocks offered
(in Blocks) (In Blocks)

Madhya Pradesh 11 8 3 72.73% 26 3.25 1 7

Jharkhand 9 6 3 66.67% 24 4 1 0

Odisha 9 5 4 55.56% 10 2 0 0

Chhattisgarh 7 2 5 28.57% 11 5.5 2 0

Maharashtra 2 2 0 100.00% 5 2.5 0 0

Total 38 23 15 60.53% 76 3.3 4 7

Commercial Coal Block Auction Success – State Wise Comparison Chart

Continued on Page 7...

Page No 6
Geonesis Volume 7 , Issue 11

The Commercial Coal Block Bidding Matrix is categorical representation of coal blocks offered for under three axis i.e.
mine production capacity (Y axis) & notified grade of the coal blocks (X axis) and number of bidders participated (Z
axis i.e. width of the bubble). The matrix gives the clear-cut picture of the market trend where the maximum interest is
lying and thus the competition. The following observations are there:

1.Category I: High Coal Grade & High Production Capacity:

a. No coal blocks were offered under this category
2.Category II: High Coal Grade & Low Production Capacity:
a. 15 Coal blocks were offered under this category
b. 11 Coal blocks out of 15 have received participation
c. 50% of coal blocks are below (<1 MTPA Capacity) & total 6 UG blocks were offered
d. Banda in Madhya Pradesh is the only partially explored coal block and received 3 bids
e. Total 38 bids out if 76 (i.e. 50% of bidding) happened under this category
3.Category III: Low Coal Grade & High Production Capacity:
a. 18 Coal blocks were offered under this category
b. Only 44% of blocks witnessed successfully bidding i.e. 8 out of 18 (exclusive of 2 blocks which received 1 bid each)
c. Only 37 bids out of 76 fallen under category (48%)
d. Urma Paharitola is the only partially explored block received 6 bids (out of 3 partially explored blocks offered un-
der this category)

Continued on Page 8...

Page No 7
Geonesis Volume 7 , Issue 11

4.Category IV: Low Coal Grade & High Production Capacity:

a. Only 5 Coal blocks falls under this category.
b. Only 2 Coal blocks i.e. jointly as 1 coal block (Chendipada & Chendipada II) has received only 1 bid and gets can-
celled ultimately
c. All the Coal blocks were fully explored and auction success % remains 0% (zero) under this category5.
Summarization
a. 98% of the bidding happened in coal blocks with lower capacity i.e. <= 10 MTPA
b. 50% of the bidders had preferred low mine capacity block with relatively higher grade
c. 48% of the bidders had preferred low mine capacity block with lower grade
d. 45% of bidders has preferred mine with less than or equal to 1 MTPA capacity

Source: MSTC e Commerce Technical Bid Opening on 30.09.2020

Disclaimer: The views expressed by author are personal

ABOUT AUTHOR

Abhinav Sengupta
Abhinav Sengupta is an MBA in Energy & Infrastructure & B.Tech in mining engineering having
over 9 years of experience in Coal, Power& Infrastructure Sector has acquired strong industry
exposure in areas of Strategic/Risk Advisory, Due-Diligence, Financial Appraisal, Feasibility
Studies, Business Process Consulting and Strategic Procurement. He is currently working with
PwC India in their advisory division of Mining & Metals

Page No 8
Geonesis Volume 7 , Issue 11

CURRENT ISSUES RELATED TO

MINING & ENVIRONMENT
Akshaydeep Mathur – Secretary General, Federation of Mining Associations of Rajasthan JAIPUR

Twin Objectives of Environmental Safe- complex tangle of EC , CTOs, Court  ENTIRE MINING IN THE COUN-
guard and Economic Development are judgements, tangle of Eco-sensitive TRY TAKES PLACE IN LESS
enshrined within the ambit of the Envi- zones and special areas and the future THAN 1% GEOGRAPHICAL
ronmental Clearance process under the of the mining industry delicately hangs AREA OF INDIA.
EIA Notification 2020. The Mining Fra- upon the choices of the decision maker.
 MINING IS NOT RESPONSIBLE
ternity is hopeful that months of rigor- The seminar is dedicated to Environ- FOR 99% OF POLLUTION OR EN-
ous deliberations will result in a Posi- ment concerns for Mining, so a quick VIRONMENTAL DAMAGE IN
tive, Progressive and Practically Holistic overview of Mining Industry in India THECOUNTRY.
document. shall be helpful in drawing conclusions
 ALL MINERALS ARE INERT &
A Simplified Automated EC process is based on authentic Data Base and scien-
ENVIRONMENT FRIENDLY IN-
the need of the hour, if the Government tific manner.
TEGRAL BUILDING BLOCKS OF-
wishes to bring Investment into Mining, Entire Mining Leases put together, oc- CIVILIZATIONS
Generate Employment and halt the cupy Less than 0.2% of the Geographical
flight of Capital and Trained Manpower Area of our Country which an Area  NO EMISSION OF SOX NOX CO
to foreign lands. around 6000sqkms. The Land dedicated HAZARDOUS WASTE FROM-
to Mining of all Major and Minerals is MINING
India as a Developing Nation cannot
afford to copy or Ape the West and it is less than the Land Area of Tokyo or  MINED OUT AREA WILL BE RE-
imperative to Leap Frog in the Art of Shanghai or New York Metro or even CLAMED & RESTORED FOR USE
Environmental Management and it is Chicago. That is theoretically the total OF OUR FUTURE GENERATIONS.
suggested that Authentic Data and Sci- leases of India can be fitted into a hole
having a Radius of 42Kms.  MINING IS A NON-POLLUTING
entific Analysis should replace the false
RESPONSIBLEINDUSTRY
Fear and Green hysteria and focus be 70% MSME Leases i.e. 60,000 Mining
shifted to real issues and Compliance of Leases Occupy only 20% Land=  SCHEDULE 4 MINERALS + COAL
ECnorms 1200sqkms 30% Big Leases i.e. 1130 Min- LIGNITE ACCOUNT FOR 90%
The Real Environmental Issues Plaguing ing Leases occupy 90% of Land == PRODUCTION BY TONNAGE
our Country originate from use of 4,800sqkms AND REST ALL MAJOR MINER-
Chemical Fertilizers - Pesticides in Agri- ALS COMBINED ACCOUNT FOR
THINKING POINTS: 10% TONNAGE OF MINERAL
culture, Hazardous Waste Disposal,
Urbanisation Vehicular Pollution, Air PRODUCED IN INDIA---
 INDIA TO HAVE 15 BILLION
Quality, City Noise Levels, Cleanliness, MTONS PER ANNUMMATERI-
Congestion further aggravated by de- ALCONSUMPTION BY 2030 i.e.
HENCE POLICY SHOULD BE
pleting Forest cover and Global Warm- 15MT/H
CHANGED
ing.
 MINERAL & METAL CONSUMP-
Today the Environmental concern is TION CURRENTLY 3 BILLION These MSME MINES should be put
interwoven within the Social Matrix as MTONS WILL SURPASS BIOMASS under a compliance Regime a half
over one billion people of this country yearly monitoring report called
need sanitation, primary health care,  INDIA NET IMPORTER –
“PARYAVARAN SARAL” and only the
security, electricity, roads, rails, metro, DEFICIT OF 100 BILLION USD-
larger mines be subject to EC process.
housing, basic infra, education and are Total – Imports 350 Billion USD –
stricken with poverty, hunger, employ- Exports250
ment and one sole objective cannot be NET IMPORTER OF CRITI-
viewed in the isolation of other obliga-
 Continued on Page 10...
CALMINERALS
tion and needs of the growing society
aspiring for higher living standard.  GOLD – COPPER – NICKEL—
COBALT—ATOMICMINERALS
In the past six years 40% of the MSME
Mining Leases have closed down due to  PETROLEUM PRODUCTS – FER-
TILIZERS -POTASH

Page No 9
Geonesis Volume 7 , Issue 11

Proposed Categorization for MSME & Large Mining leases

S. EIA
MICRO SMALL MEDIUM LARGE GLOBAL
No. Category

I Projects B3 B2 B1 A2 A1

EC EC-SARAL EC-SARAL
II EC EC EC
Compliance (one a year ) (Twice a year )
EC Granting Scrutiny and Monitoring by
III SEIAA SEIAA MOEF-CC
Authority SPCB
Public
IV Not Applicable Exemption Applicable Applicable
Hearing

Mining <50-100 <100-200

V 0-5 Ha <5-50 Ha Above 200 Ha
Lease Area Ha Ha

Annual 50,000- 2 lakh- 5 Lakh -

VI 0-50,000 T Above 1 MT
Excavation 2 Lakh T 5 lakh 1 MT
T
1Crore- 10Crore- 20Crore-
VII Investment Rs 1 Crore Above 50 Crore
10Crore 20Crore 50Crore

Annual 5Crore- 50Crore- 100 Crore - Above 200

VII 5 Crore
Turn-over 50Crore 100Crore 200 Crore Crore
I

Presented to Ministry of Envi- hectares with annual produc- category –A2 as –mines hav-
ronment and Forest for inclusion tion of less than Two Lakh M ing lease area up to 200 hec-
in upcoming EC Regime. Tons in Six monthly Compli- tare but production capacity
ance report. Drop cluster ap- of upto than half million tons
 Creation of separate category proach forB-2 EC from SEIAA but NoPH
for tiny mines B-3, having  Reclassifying mines in cate-  A1 having lease area plus of
lease area of less than 5 hec- gory B-1 as leases of less 200 hectare with production
tares and annual production than 100 hectares and hav- plus of One million Tons –
of less than Fifty Thousand ing annual production capac- EC from MOEF-CC with PH.
Tons. These Micro Leases be ity of more than Two Lakh M This shall speed up the proc-
subject to only annual Com- Tons but less than Half mil- ess & reduce burden of
pliance mode and Cluster ap- liontons. Clearances.
proach may be dropped.  Drop cluster approach as
 Reclassifying mines in cate- each lease in this category is
gory B-2 as- mines having seeking an EC.
lease area of 5 hectares to 50/  Reclassifying mines in Continued on Page 11...

Page No 10
Geonesis Volume 7 , Issue 11

 Request submitted to The MSME MINES as shown in the definitely increase employment,
Ministry of Mines, New table above since this change in increase revenue for the State
Delhi to support the stand of the EIA Notification 2020 will Exchequer, reduce Imports and
increase Mineral Production and
Exports.

ABOUT AUTHOR

Mr Akshaydeep Mathur
Mr Akshaydeep Mathur is Secretary General of the Federation of Mining Associations of Rajasthan,
15th year elect and Chief Secretary High Power Committee on Mining &Environment.

Mining operations set for revamp

 The MDO contract is awarded in the technical expertise needed to scale whole range of activity, from mine de-
mostly on the basis of quoted min- up coal mining. sign, planning and construction and
ing cost per tonne, to the lowest The government’s move comes amid rehabilitation of local populations to
bidder plans by Coal India, the world’s largest overburden removal, mining and proc-
coal miner, to produce 1 billion tonnes a essing and delivery of the mineral.
 The Prime Minister’s Office (PMO)
has written to NITI Aayog, asking it year by 2024. The MDO contract is awarded mostly on
to consult with industry to create a In a letter to the NITI Aayog, the PMO the basis of quoted mining cost per
new legal framework and policy said, “There are differing legal positions, tonne, to the lowest bidder.
regime for private mine operators practices and approaches and a lack of So far, coal mine ownership has been
The government wants to overhaul the consistency and transparency" in how restricted to PSUs like Coal India and
working of private mine developers and MDOs are currently engaged in mining NTPC or state, who have been the larg-
operators (MDOs) ahead of the first coal coal and major minerals. est employers of MDOs. But with com-
mining auctions with private company “The appointment of MDOs before allot- mercial coal mining slated to begin in
participation next month and wider ment of the mineral block appears inap- October, the MDO industry is expected
plans for a massive increase in coal pro- propriate and this may not be allowed in to expand.
duction. future," the PMO said. It asked NITI However, outsourcing mining activity is
The Prime Minister’s Office (PMO) has Aayog to frame guidelines for the selec- illegal under the Contract Labour Act
written to NITI Aayog, asking it to con- tion and appointment of MDOs in con- and Mines and Minerals Act. PSUs and
sult with industry to create a new legal sultation with secretaries from the Un- state governments have so far escaped a
framework and policy regime for pri- ion ministries of mines, coal, steel and legal tangle with approval from the min-
vate mine operators. finance. Mint has seen a copy of the let- istry of coal.
ter.
MDOs play a vital role in the operation
of coal mines, but there are two chal- In the mining industry, a mine owner
often contracts the work of mine devel-
lenges: they are illegal, and they are Continued on Page 12...
mostly selected for their ability to do the opment to a third-party MDO, espe-
job at a low cost rather than for bringing cially in coal. The MDO oversees the

Page No 11
Geonesis Volume 7 , Issue 11

Pankaj Satija, chief - regulatory affairs, Satija recommends clearing the legal risk, who is responsible for land acquisi-
Tata Steel, said. “A mine owner uses an inconsistencies and creating a frame- tion, relief and rehabilitation, etc."
MDO in India primarily to cut costs and work that insists on ethical practices and
Large MDOs today include BGR Mining
improve efficiency. This, however, is in improves safety, while employing the
and Infra Ltd, Adani Enterprises,
contrast to the global practice of ap- best talent and technology.
Thriveni Earthmovers, DilipBuildcon,
pointing MDOs to bring in expertise and With power generation heavily depend- Sainik Mining and Allied Services, Sical
drive adoption of technical best prac- ent on coal, the need to keep production Logistics, Monte Carlo and Ambey Min-
tices." numbers growing means that MDOs ing.
“Many public sector companies like will become significant players in the
The NDA government is keen to step up
NTPC, Coal India and, of late, NMDC as mineral industry, a senior executive at
India’s coal production. Despite having
well as state government PSUs have an MDO said on condition of anonym-
the world’s fourth largest coal reserves,
gone ahead and engaged MDOs in the ity.
India imports around 235 million tonnes
mines allotted to them without prior
“Coal India wants to produce 1 billion (mt) of coal a year. The government esti-
approval from the Central Contract La- tonnes every year by 2024. With their mates that of this, at least 135 mt can be
bour Advisory Board," R.K. Sharma, own capacities stretched, they need substituted by mining more locally. The
secretary general, Federation of Indian MDOs to produce at least 150-200 mil- Centre had set a mining target of 1.5
Mineral Industries, told Mint. lion tonnes yearly, that’s why even they billion tonnes of coal by 2020, which was
“One can understand engaging MDOs are coming out with tenders now to missed.
in the case of NTPC and such PSUs be- engage MDOs. But these contracts are
In May, along with opening up commer-
cause the lease period for coal mining skewed heavily in favour of state agen-
cial coal mining, promoting coal gasifi-
was for captive use, but in the case of cies and differ from state to state with
cation and auctioning 50 new coal and
Coal India and NMDC and other stand- MDOs made to absorb many of the risks
500 mineral blocks as part of the covid-
alone mining companies, it is puzzling and penalties and deal with payment
19 reforms package, the government
since they are mining companies. With a delays, making it difficult and expensive
also promised an investment of Rs50,000
view to have synergy in the regulatory for us to get bank financing.
crore to create transportation infrastruc-
framework, it is imperative that there is “I think what the PMO also wants to do ture for evacuating 1 billion tonnes of
compatibility in different laws for the is create standard contracts on engaging coal from Coal India Ltd’s mines.
engagement of MDOs in the case of coal MDOs where it is clear who bears which
and major minerals."

Centre asks Odisha to stop Thakurani mine

operations by Sarada
The EAC is of the view that mining granted environmental clearance or occupancy certificate will be is-
operation by Sarada Mines is case by the State Pollution Control sued till the project is granted the
of violation and it should not be Board.The Ministry has further environmental clearance,” the Ex-
allowed to operate. directed to take action under sec- pert Appraisal Committee (EAC) of
tions 15/19 of the EPA, 1986 the Ministry noted in its May 29
BHUBANESWAR: The Centre has
against SMPL for carrying out min- meeting.
asked the State Government to stop
ing operation without environment
mining operation at the Thakurani The EAC is of the view that mining
clearance (EC) and production of
iron ore block in Keonjhar district operation by Sarada Mines is case
minerals in excess of the EC capac-
by Sarada Mines Private Limited of violation and it should not be
ity.
(SMPL) and initiate action against allowed to operate.The Supreme
the lease-holder for violation of “In cases of violation, action will be Court had in January given a relief
Environment Protection Act, 1986. taken against the project proponent to SMPL by allowing it to resume
by the respective State or State Pol- mining operations at Thakurani
Writing to the Forest and Environ-
lution Control Board under the iron--ore mines provided it paid
ment department, the MoEF&CC
provisions of section 19 of the En-
advised not to give consent to op-
vironment (Protection) Act, 1986 Continued on Page 13...
erate the mines till the project is
and further, no consent to operate

Page No 12
Geonesis Volume 7 , Issue 11

around `933 crore towards environ- representation made by lease asking MoEF&CC to take appropri-
mental compensation to the State holder. The Ministry referred the ate action.TheThakurani mines of
Government and gave an under- matter to Ministry of Law which SMPL was a supplier of iron ore to
taking to comply with all the rules, said that the EC granted to Sarada Naveen Jindal-led Jindal Steel and
regulations and other mandatory Mines in 2008 had lost validity in Power Ltd (JSPL) plant. The Cen-
provisions for carrying out mining 2013-14. tre’s order for closure of Thakurani
operations. Mines will seriously impact JSPL
“Resumption of mining operation
and could further aggravate the
The matter was examined by the is contrary to the law and direction
shortage of ore that secondary sup-
MoEF&CC after receiving com- of the Supreme Court on January
pliers have been complaining
plaints from different quarters and 15, 2020,” the Law Ministry said
about.

Why is State DRAGGING FEET on mining RECOVERIES?

While the Goa government in associa- Directors/partners of the erstwhile MMDR Act, 1957 mandates payment of
tion with the mining companies has leaseholders had admitted that they royalty in respect of any mineral re-
been running from pillar to post to re- have dispatched mineral allegedly from moved or consumed by lease holders
start mining to kick-off the State’s econ- rejection dumps without payment of from the lease area at the rate specified.
omy, what is surprising is that the State royalty. Rule 64/C of the MC Rules, 1960 re-
has thousands of crores of dues pending quires payment of royalty on dumps
“Most of these letters are inwarded in
from the mining companies, which it tailings or rejects stored outside the
this office on 20/10/2010, while other
has made no effort or little effort to re- lease held area only when such tailings
doesn’t bear the entry number. By these
cover. SURAJ NANDREKAR digs into or rejects are used for sale or consump-
letters, the department is also informed
the new episode of over Rs 466 crore tion on later date,” he had noted.
about delayed payment of royalty on
dues, which are pending from eight
such mineral allegedly recovered from As such, the former director had noted
mining companies, who had exported
dump reserves with interest on D.M.T that the date specified for payment of
ore from rejected dumps without paying
basis and also requested to take said royalty under Rule 64 of Mineral Con-
royalty
communication assessment, on record cession Rules 1960 has to be before or at
It was first said the illegal mining in Goa for completing assessment,” the note the time of removal or consumption of
was worth Rs 35,000 crore as per the said. mineral from the lease hold area, held
Justice MB Shah report. area or tailing or rejects stored outside
He pointed out that the Rule 64A of MC
Then the chartered accountants found lease, as the case may be before or up to
Rules 1960 empowers the State Govern-
that Rs 3,400 crore was to be recovered its removal for sale or consumption.
ment to charge interest at the rate of 24%
from mining companies for illegal ore per annum at simple interest from the “Any dispatch without payment of roy-
extraction and export; and the Supreme 60th day from the date fixed by the Gov- alty after the first day of the subsequent
Court asked the State to immediately act ernment from payment of royalty, etc. month from the date of dispatch
and recover the amount. whether bonafidely done or otherwise,
The operating part of Goa Foundation
But now it has come to the fore that should invariably be treated as illegal
judgment passed by Supreme Court of
eight companies owe the State a mini- dispatch entitling State Government to
India on 07/02/2018 expects the State to
mum of Rs 466 crore as ‘Recovery of recover the sale value of mineral in exer-
expedite recovery of the amount due
Sale Value’ of 73.4 million tonnes of ore cise of power under Section 21(5) of the
from erstwhile lease holders to the State
allegedly illegally dispatched under MMDR Act 1957,” he had said.
Government unless there are very good
Section 9(2) of MMDR Act, 1957 r/w reasons for rejecting them, he said. Further, he said that in the instant cases,
Section 21(5) of the Act &/or Rule 64/C a large quantity of 7.34016 million ton-
He also pointed out that the Apex Court
of the MC Rules 1960 from T.C. nos. nes of ore, was dispatched without pay-
in Goa Foundation judgment dated
41/55, 45/54, 7/58, 34/55, 28/52, 4/55, ment of royalty, neither at the time of
21/04/2014 held that whenever there is
60/52 and T.C. No. 86/53. dispatch nor on the first day of subse-
a conflict between the MMDR Act and
Former Director Mines and Geology quent month.
the MC Rules 1960, the provisions of the
Prasanna Acharya had in his note on Act shall prevail over the Rules. Continued on Page 14...
15.01.2019 said that on 06/10/2010,
“Sub-Section(2) of Section 9 of the

Page No 13
Geonesis Volume 7 , Issue 11

“As such, the said dispatch has to be The Geologist noted that the as per sec- of concern for the environment and the
considered as illegal dispatch. Hence, tion 9 of MMDR Act 1957, the holder of health and well-being of the denizens in
said dispatch without payment of roy- a mining lease is required to pay royalty the vicinity of the mines.
alty would attract the provision of Sec- in respect of any mineral removed or “The sole motive of mining lease hold-
tion 21(5) of MMDR Act 1957 by way of consumed by him (at page 45/C). Rule ers seems to be to make profits (no mat-
recovery of sale value of mineral and 64 states that in case, such dumped tail- ter how) and the attitude seems to be
not the payment of royalty with interest ing or rejects are used for sale or con- that if the rule of law is required to be
as attempted in the instant cases,” he sumption on any later date after the date put on the backburner, so be it. Unfortu-
said. of such dumping, then such tailing or nately, the State is unable to firmly stop
rejects shall be liable for payment of violations of the law and other illegali-
ACHARYA’s recommendations…
royalty. ties, perhaps with a view to maximize
a) Treat dispatch of 73.4 WMT from
“As per the communication, royalty revenue, but without appreciating the
leases mentioned to be illegally dis-
shall be due on every first day of the long term impact of this indifference.
patched and in violation of provisions of
month and any delay in the payment of Another excuse generally put forth by
Section 9 read with Section 21(5) of
royalty would entail a liability on the the State is that of development, conven-
MMDR Act and Rule 64/C of MC Rules
lease boulder to pay simple interest iently forgetting that development must
1960 in case the alleged dispatched as
@24% p.a. from the 60 day in terms of be sustainable and equitable develop-
claimed by leaseholder is from dump
rule 64 Aol MCR. 1960. Since in the in- ment and not otherwise,” the petition
tailings or rejects.
stant case, the quantity of 73,40,136 says.
b) For the purpose of recovery of inter- WMT, of ore, was dispatched without GF petition adds that laxity and sheer
est under Rule 64(A) to declare date of the payment of royalty, neither at the apathy to the rule of law gives mining
receipt of order to be the date fixed by time of dispatch nor on the first day of lease holders a field day, being the pri-
the State Government. subsequent month and subsequently mary beneficiaries, with the State being
c) Authorized the undersigned to seek notices were issued to the lease holders left with some crumbs in the form of
recovery of mineral value from the erst- as mentioned. royalty.
while lease holders and/or the persons As such, it is required to place on record “For the State to generate adequate reve-
responsible for such illegal dispatch. the details regarding notices issued and nue through the mining sector and yet
“Submitted for urgent approval as any other relevant documents relied have sustainable and equitable develop-
crores of rupees could be recovered upon, available in the respective lease ment, the implementation machinery
from such illegal dispatches,” he had files (1C.Nos,86/53, 60/52. 4/55, 28/52. needs a tremendous amount of strength-
said. 34/55, 7/58, 45/54, 41/55) or any rele- ening while the law enforcement ma-
vant records available with the con- chinery needs strict vigilance,” it says.
Nelita Olga Fernandes e D'Silvam, As-
cerned dealing hand in order to proceed
sistant Geologist, in her note on It further added that ‘unless the two
further,” the geologist added.
24/06/2020 too said that the ore was marry, people will continue to be mute
illegally exported. CM’s remark… witnesses to the plunder of our natural
“It is revealed that the erstwhile lease Despite all these notices, Chief Minister resources and left wondering how to
holders have paid royalty and the inter- PramodSawant on his noting dated retrieve an irretrievable situation’.
est applicable on a quantity of 73,40,136 24/06/19 only said “May discuss”. “The State (government) ignored the
WMT for the period 2007-2008, 2008- Thereafter, the recovery file has been fact that every single mining lease
2009 & 2009-10. The said quantity was moving around without any result. Goa holder had committed some illegality or
later reported to be disposed of. It is also Foundation says State ignored every the other in varying degrees. To identify
reported that the parties have not dis- illegality Goa Foundation, in its petition these illegalities (although they had al-
closed the said quantities in their has said that rapacious and rampant ready been identified by the Justice Shah
monthly returns, however have re- exploitation of the State’s natural re- Commission and by the EAC), a Special
quested this Department to take the said sources is the hallmark of iron ore min- Investigation Team had been set up as
communication on record for complet- ing sector - coupled with a total lack also a team of Chartered Accountants.
ing assessment,” she said. Instead of waiting for a report from any
one of these teams, the State acted in

Continued on Page 15...

Page No 14
Geonesis Volume 7 , Issue 11

violation of the Grant of Mining Leases Why was the report from the ‘Special or called for and examined?” the peti-
Policy and renewed the mining leases. Investigation Team’ not awaited tion questioned.

JSW flouts MCR; Govt suffers Rs 1,155-cr loss

The State Government incurred a show cause notice to the JSW on 8.1and schedule "D" of the MDPA.
loss of about Rs 1,154.68 crore for Friday for violation of the MCR rule. In Ganua block, the JSW has dis-
violation of the Mineral Concession The Director earlier had written to patched only 34,683.17 MT which is
Rules (MCR) the JSW Limited, the JSW to take steps to ensure strict 78,419 .83 MTs short of the pre-
which bagged four iron ore mines adherence to the above mentioned scribed target of dispatch. In case of
with high premium in the recent provision and maintain the pre- Nuagaonblock , the company dis-
auction. scribed production and dispatch; patched only 2,56,718.98 MT which
otherwise it would be liable for ac- is 7,53,081 .02 MT short of the pre-
The JSW has violated Rule 12A(1) of
tion in accordance with the rules. scribed target of dispatch In Jajang
MCR, 2016 read with Schedule D of
However, the JSW continued violat- block, it dispatched 3,07,173.48 MT
MDPA in ensuring minimum 80%
ing rules without any corrective which is 17,70,736 .08 MT short of
dispatch of the average of the an-
measures. In its show-cause notice, the prescribed target of dispatch.
nual production of two immediately
the Director Mines mentioned that, Thus till September 21, the JSW Ltd’
preceding years on pro-rata basis
in Narayanposh iron ore mine, the total dispatch shortfall was 30,
from the auctioned mines.
JSW has dispatched only 2,45,829.58 84,090.91 MT. Calculating at conser-
Till September 2021, the JSW failed MT iron ore which is 4,81,853 MT vative prices 62-65%Fe grade iron
to dispatch 30, 84,090.91 MT iron ore iron ore and 388. 47MT Manganese ore at Rs 3,286 per tonne for lumps.
as per agreement for which the Gov- ore short of the prescribed target of
ernment lost huge amount of reve- dispatch and, thus, JSW violated
nue. The Mines Director slapped Rule 12A(1) of MCR read with Para

Ban iron ore exports: Industry associations in letter to PMO

The industry faced a unique paradox Associations, including Indian Chamber The numbers
during the Covid-19 pandemic lock- of Commerce (ICC) and All India Induc- About half of India's annual steel output
down. From April to September, even as tion Furnaces Association (AIIFA), is produced by secondary steel produc-
domestic production of iron ore wrote to Sinha on September 25, high- ers. Unlike primary producers such
slumped, exports have jumped, leading lighting the spurt in exports during the as Tata Steel and JSW Steel, these units
to shortage of raw material for local steel lockdown and after, from April to Sep- are much smaller in scale.
producers and putting livelihoods in tember. They cannot compete against their lar-
jeopardy. They pointed out that domestic produc- ger peers when iron ore mines are auc-
Multiple industry associations have tion of iron ore has slumped, not just tioned.
written to PK Sinha, principal advisor to leading to shortage of the raw material Prime Minister's Office. Over 80 percent
Prime Minister Narendra Modi, to ban but also bumping up its price. Many of these secondary producers
exports of iron ore to make up of the Steel makers are forced to increase have sponge iron plants that need a con-
shortage of the important raw material prices, passing on the hike in cost of stant supply of iron ore. Sponge iron is
for steel-making in the domestic market. production to customers, who are at a an intermediate product used in steel
The shortage has especially pinched the loss. Only China and the commercial making.
secondary steel makers, who don't have miners are gaining," said a senior execu- "India had already started stepping up
captive mines sourcing to their units, tive from the steel industry. its iron ore exports since last year to
unlike the primary producers.

Continued on Page 16...

Page No 15
Geonesis Volume 7 , Issue 11

bridge the global supply gap, as flows during the Covid-19 pandemic lock- The industry associations said that
from the world’s two biggest producers down. Even as domestic iron ore pro- many secondary units have been forced
– Brazil and Australia – were on a de- duction slumped by half to 47 million in to shut shop, especially in Odisha and
cline," AIIFA said in its letter to the of tons in the April to September period, Chhattisgarh, which together have
the exports were to China. exports jumped by 63 percent to 22 mil- nearly 140 sponge iron units. Others are
lion tons over the same time. operating at half their capacity.
The industry faced a unique paradox

RICH GYPSUM RESOURCES IN NAGAUR AND BIKANER

DISTRICTS WESTERN RAJASTHAN : By Shri V. P. Laul
ABSTRACT The popular names prevalent in litera- estimated. All known resources of Qua-
Gypsum is a very important mineral ture for Quaternary gypsum or gypsite ternary gypsum spread over different
and is required by different industries are Phalsund Formation for Phal- districts of Western Rajasthan may not
like fertiliser, cement and also for plaster sundgypsite deposit of Jaisalmer district exceed 20% of known resources of Cam-
of Paris manufacturing etc. Rajasthan is and Uttarlai Formation for salt, gypsum brian gypsum resources occurring in
a major producer of Gypsum. In West- bearing clay, gypsite and associated Nagaur district. At present perhaps en-
ern Rajasthan gypsum deposits mainly sediments, Barmer district.In 2004 tire production of gypsum is from Qua-
occur in Quaternary sediments known DrWadhawan introduced term Jamsar ternary gypsum because of economical
as Gypsite (Quaternary gypsum) and Formation for older playa deposits of mineability of surface and near surface
Gypsum deposits of MarwarSupergroup gypsite and associated sediments and deposits.
(Cambrian). Gypsite deposits occur in Lunkaransar Formation for younger
PROSPECTIVE AREAS FOR LOCAT-
different districts of Western Rajasthan saline playa deposits around the
ING GYPSUM DEPOSITS
but rich deposits occur in Bikaner dis- Lunkaransar saline playa/ lake area,
Bikaner district. Quaternary Gypsum Deposits
trict. Cambrian Gypsum deposit of Na-
gaur district occurs at depth of 30 m or Out of 71 leases of gypsum mainly gyp- These surface and near surface deposits
more and possibly forms the major de- site, maximum 37 leases are in Bikaner are economically Quarried. The follow-
posit in Western Rajasthan. district followed by 16 leases inHanu- ing districts are important for locating
mangarh , 11 leases in Shri Ganganagar, mineable deposits
INTRODUCTION
3 leases in Jaisalmer, 2 leases in Nagaur Bikaner district : The gypsum deposits
Gypsum is a very important mineral for and 2 leases in Barmer districts respec- occur in about 60% of the district area.
fertiliser and cement industry. Western tively. Keeping in view number of min- The district still holds promise for locat-
Rajasthan is meeting major demand of ing leases, known and unknown occur- ing more deposits particularly in the
the country mainly from surface and rences of Quaternary gypsum, different northwestern part of the district. The
near surface Quaternary gypsum or districts of Western Rajasthan may con- areas of highly saline groundwater are
gypsite deposits because they are eco- tain expected geological resources as more promising as compared to other
nomically workable than gypsum de- given :Bikaner- 110 to 115 million tonnes areas.
posits of MarwarSupergroup( Cam- ( MT) , Hanumangarh- 50 MT, Sri Gan-
brian) occurring at depth of 30 m and Sri Ganganagar and Hanumangarh dis-
ganagar- 30 to 35 MT, Jaisalmer- 25 to 30
more. tricts: In these districts Ghaggar flood
MT, Nagaur - 4 to 5 MT, Barmer- 5
plains, some buried river channel along
DISTRIBUTION AND RESOURCES MT .The deposits of Jaisalmer are thick
with local drainage appear to have
so expected resources are comparatively
In Western Rajasthan Quaternary gyp- played a role in localisation of gypsum
more.
sum occurrences and deposits are deposits. Studies of Palaeo-drainage
mainly located in Nagaur, Bikaner, Ja- Cambrian gypsum deposits of Nagaur may help in locating gypsum deposits in
lore , Shri Ganganagar, Hanumangarh, district have been explored and 930 mil- these districts
Jaisalmer and Barmer districts. liontonnes of reserves have been
Continued on Page 17...

Page No 16
Geonesis Volume 7 , Issue 11

Jaisalmer district: Gypsum deposits in

and around Nachna village appear to be
near Nachna Basement high which pos-
sibly has some bearing on the localisa-
tion of these deposits and occurrences.
Mohangarh gypsum deposit and clus-
ters of small deposits around it are lo-
cated along some well identified Paleo-
channel (Paleo- tributary?) possibly of
ancient Saraswati. The study of this pa-
leo-tributary may help in prospecting
for gypsum along the course of this
Channel. Other districts may not contain
much resources and do not require
much attention for prospecting for gyp-
sum.
type of exploration.
Cambrian gypsum deposits disposed between Bilara Carbonate
Group in the south and Hansera- The map showing sub- surface disposi-
Cambrian gypsum deposits occur at
nEvaporite Group in the north ( Figure tion of sulphate zone may be very help-
depth of 30 m or more. Cambrian gyp-
1) ful in exploration of Cambrian gypsum
sum has been well explored in Nagaur
deposits. The sulphate zone may be pro-
district and reserves of 930 million ton- Figure 1:Subsurface disposition of tran- jected on the surface which may be of
nes have been estimated and a detailed sitional sulphate zone between Bilara great help in borehole location for gyp-
account of Nagaur gypsum has been Group in south and Hanseranevaporites sum exploration. Nagaur district, parts
given in GSI Bulletin Sr.A Economic in north, Nagaur- Ganganagar basin of Bikaner district followed by some
Geology, No. 24, 1965 by Roy Chowd- western Rajasthan ( Kumar Virendra, parts of Churu district may be important
hury et. al. 2019) for exploration of Cambrian gypsum.
During the course of potash investiga- Keeping in view the increasing future CONCLUSIONS
tion well defined zones of Bilara Car- demand, planning in advance is re-
bonate Group,Sulphate zone and Han- It may be concluded that Bikaner dis-
quired to carry out exploration to locate
seranEvaporiteGroup ofMarwarSuper trict is most prospective for prospecting
economically mineable deposits particu-
group (Cambrian) have been deline- and locating Quaternary gypsum depos-
larly when Quaternary gypsum re-
ated.In general Sulphate zone consid- its and Nagaur , Bikaner districts to-
sources are fast depleting.DMG, FCI
ered to be rich in gypsum resources is gether for locating mineable Cambrian
and RSMM should take lead in such
gypsum deposits.

ABOUT AUTHOR

Shri V P Laul
Shri V P Laul is V. P. Laul is Retired Director, Geological Survey of India Jaipur and Former Consultant Rio
Tinto Exploration India Private limited and currently Advisor to Vivek Geo services, Jaipur. He can be
contacted at : vp_ [email protected]

Page No 17
Geonesis Volume 7 , Issue 11

After 16 years, mineral exploration starts at the Kolar Gold

The Union Minister said the exploration Union Minister tweeted. out immediate exploration in the mining
started after his meeting last month with Sharing photographs on Twitter on the lease area of BGML after the meeting.
Karnataka Chief Minister B S Yediy- commencement of the activities, Joshi In the meeting, Yediyurappa and Joshi
urappa on August 28 said the mining would help resolve decided that either the high-value min-
Mineral ExplorationCorporation Lim- Bharat Gold Mines Limited (BGML) erals at BGML are explored or handed
ited (MECL) started exploration of the issue over exploration in KGF that has over to the Industries Department to set
Kolar Gold Fields (KGF) on Monday, been pending for the last 16 years. up an industrial cluster to start large-
said Union Minister for Coal and The Union Minister said the exploration scale economic activities there.
Mines Pralhad Joshi. started after his meeting last month with
"Happy to convey that exploratory drill- Karnataka Chief Minister B S Yediy-
ing at Betrayaswamy block of Kolar urappa on August 28.
Gold Fields commenced today, " the He said he had directed MECL to carry

Seeking hurried views on mining reforms, Govt of India

'evades' giving basic data
India’s well-known NGO network, provided for consultation on matters  distinction between captive and non
mines, minerals and People (mm&P), in dealing with the shared inheritance of -captive mines; (f) all future blocks not
a protest letter sent on September 3 to mineral wealth of the states of India. For earmarked; (g) removing first right of
Dr VeenaKumari Dermal, director, Min- even a local level public consultation, 30 refusal for captive miners; (h) raising
istry of Mines, Government of India, has days is provided. Here we have matters limit of 25% of production for merchant
said that not only was the time given for impacting the nation as a whole as well use to 50%; (i) creation of a National
comments on the proposed reforms in as center-state relations with only 10 Mineral Index; (j) clarify definition of
the mining sector, just 10 days, highly days provided. his is not even enough illegal mining – u/S 21(4), 21(5) and to
insufficient, even minimum data on the time to seek information under the Right be prospective; (k) rationalize stamp
mining sector was provided in order to to Information (RTI) Act to evaluate the duty.
give meaningful inputs in the official proposals meaningfully. We suggest
notification. The data, the letter signed that this vio-lates the Pre-Legislative  Focus District Mineral Foundation
by Rebbapragada Ravi, mm&P chairper- Consultation Policy (PLCP) of the Gov- (DMF) on creating tangible assets, as per
son, and Ashok Shrimali, mm&P secre- ernment of India, especially point 2 of Parliamentary Standing Committee –
tary general says, should have included the decisions taken in the meeting of the amendment to Section 9B.
status of employment in mining of ma- Committee of Secretaries held on Janu-
 Bring unused blocks into produc-
jor minerals; status of exploration; status ary 10, 2014. Your notice proposes the
tion to generate employment – time
of mineral inventory; current status of following changes in existing regula-
limit to achieve production, both for
grant of major mineral leases, explora- tions and norms:
private and public sector.
tion status, approved production levels,
 Changing norms for exploration for
actual production of minerals and actual Make NMET truly autonomous; entities
auction and seamless transition from
employment from such leases; list of all notified u/S 4(1) eligible for NMET. In
exploration to production: (a) Auction of
captive mines and of illegal mining order for a meaningful analysis, the
G-4 blocks for seamless exploration and
cases. wording of the proposed changes to the
prospecting; (b) private entities in explo- laws / rules / regulations ought to have
We refer to your notice dated August 24, ration work (regional exploration); (c)
been provided. We would further like to
2020 wherein you have sought com- private exploration funded by National
point out that Section 4(1)(c) of the RTI
ments on substantial matters of reform Mineral Exploration Trust (NMET); (d)
Act, 2005 provides that “Every Public
of mineral laws, rules and regulations resolving legacy issues u/S 10A(2)(b)
within a period of 10 days, i.e., Septem- and 10A(2)(c), reimburse exploration
ber 3, 2020. We are writing to register costs under NMET; (e) removing
our protest at this radically short time
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Geonesis Volume 7 , Issue 11
Authority shall publish all relevant facts thereof. 8. A list of unused blocks along with
while formulating policies or announc- 5. List of all captive mines with full the name of allottee and the time
ing decisions which affect public.” At a that it has been unused would be
details that would be impacted by
minimum, the following data should be changes to the limits of production necessary to comment on the rec-
provided for aiding meaningful inputs that can be sold. It is also important ommendations.
from the public and organisations like to provide a list of all non-captive 9. A list of the entities notified under
ours with a record of more than two mines since those will also be im- Section 4(1) of the Mines and Min-
decades in mining issues: pacted by this change. erals (Development and Regulation)
1. Status of employment in mining of 6. A list of illegal mining cases over (MMDR) Act should have been
major minerals, both by lease as the last decade that would fall un- made available. It is not clear if it is
well as over time. der the two categories, ie, illegal intended that any entity with a min-
2. Status of exploration: A detailed mining done outside leasehold ar- eral lease would be eligible for us-
eas and mining in violation of vari- ing NMET funds, or just the entities
status of exploration at various lev-
els, including classification of ous clearances and approvals inside named in the second proviso.
blocks into G1, G2, etc. a mining area. All the source data, calculations and
3. Status of mineral inventory: A de- 8. Stamp duty laws of various states, conclusions should be made available to
tailed mineral inventory must be amounts collected by way of stamp the public prior to asking for comments.
duty, and the extent of change in And finally, since most of the minerals
published giving each ore body
location and other details. Where state revenue from the proposed are in areas most in need of employment
these are within existing mining change. generation, it would have been appro-
leases, this information should also priate to have the notice available in
9. On the DMF, the relevant section languages spoken in those areas, at a
be provided.
from the Parliamentary Committee minimum, the official languages of the
4. Current status of grant of major should have been made available, affected states.
mineral leases, exploration status, along with analysis to what extent
approved production levels, actual DMF monies have been used for
production of minerals and actual tangible assets versus other uses.
employment from such leases. There should have also been some
analysis why an amendment is re-
5. A list of all “potential leases” that
quired instead of a notification un-
are “blocked in legacy cases” under
der Section 20A of the existing
Sections 10A(2)(b) and 10A(2)(c),
Pradhan Mantri Khanij Kshetra-
exploration status, reserves, lessees
Kalyan Yojana (PMKKKY).
and the litigation and status

DISCLAIMER: This is a compilation of various news appeared in different sources. In this issue we
have tried to do an honest compilation. This edition is exclusively for information purpose and not for
any commercial use. Your suggestions are most valuable.

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