India urged to reform mineral exploration policies
COAL & MINING

India urged to reform mineral exploration policies

Sumit Deb, the outgoing President of the Federation of Indian Mineral Industries (FIMI), has called for comprehensive reforms to stimulate mineral exploration in India. Speaking at the 57th annual session of FIMI, Deb expressed concerns about the potential lack of interest from international Junior Exploration Companies and domestic exploration firms in participating in the auctioning of exploration licenses under the proposed regulatory framework.

Deb highlighted reservations regarding the amended Mines and Minerals (Development and Regulation) Act, 2023, suggesting that it may not effectively achieve the objective of identifying and securing critical and deep-seated mineral resources essential for India's economic growth.

He emphasised the need to reassess the mineral concession policy and adopt a more favourable framework in alignment with international industry standards. The amended MMDR Act introduces the concept of exploration licenses (EL), which will be granted through auctions for conducting reconnaissance and prospecting for critical and deep-seated minerals.

Deb raised concerns about the proposed mechanism for granting exploration licenses, particularly the concept of reverse bidding, where bidders must specify the percentage revenue share payable by the successful lessee over a 50-year period. He argued that this approach does not align with international best practices observed in mineral-rich countries like Australia, Canada, and South Africa.

According to Deb, the current system lacks incentives for explorers and introduces uncertainty regarding returns on their significant investments. Additionally, even if exploration efforts are successful in identifying resources, the returns would be tied to a percentage of the premium paid by the successful lessee over five decades.

Deb also highlighted the shortcomings of the auction regime introduced for the grant of mineral concessions more than eight years ago. Despite the auctioning of numerous mineral blocks, the mechanism has not yielded the anticipated results in terms of expedited development and resource utilisation. Out of the 155 greenfield non-coal mineral blocks auctioned since the implementation of the MMDR Amendment Act in January 2015, only seven have progressed to the mine development or production stage. Furthermore, prospecting licenses have been issued for just three out of the 79 mineral blocks auctioned for composite licenses.

In summary, Sumit Deb's call for reforms underscores the importance of creating a more attractive and efficient environment for mineral exploration in India, ultimately contributing to the nation's resource security and economic development.

Sumit Deb, the outgoing President of the Federation of Indian Mineral Industries (FIMI), has called for comprehensive reforms to stimulate mineral exploration in India. Speaking at the 57th annual session of FIMI, Deb expressed concerns about the potential lack of interest from international Junior Exploration Companies and domestic exploration firms in participating in the auctioning of exploration licenses under the proposed regulatory framework.Deb highlighted reservations regarding the amended Mines and Minerals (Development and Regulation) Act, 2023, suggesting that it may not effectively achieve the objective of identifying and securing critical and deep-seated mineral resources essential for India's economic growth.He emphasised the need to reassess the mineral concession policy and adopt a more favourable framework in alignment with international industry standards. The amended MMDR Act introduces the concept of exploration licenses (EL), which will be granted through auctions for conducting reconnaissance and prospecting for critical and deep-seated minerals.Deb raised concerns about the proposed mechanism for granting exploration licenses, particularly the concept of reverse bidding, where bidders must specify the percentage revenue share payable by the successful lessee over a 50-year period. He argued that this approach does not align with international best practices observed in mineral-rich countries like Australia, Canada, and South Africa.According to Deb, the current system lacks incentives for explorers and introduces uncertainty regarding returns on their significant investments. Additionally, even if exploration efforts are successful in identifying resources, the returns would be tied to a percentage of the premium paid by the successful lessee over five decades.Deb also highlighted the shortcomings of the auction regime introduced for the grant of mineral concessions more than eight years ago. Despite the auctioning of numerous mineral blocks, the mechanism has not yielded the anticipated results in terms of expedited development and resource utilisation. Out of the 155 greenfield non-coal mineral blocks auctioned since the implementation of the MMDR Amendment Act in January 2015, only seven have progressed to the mine development or production stage. Furthermore, prospecting licenses have been issued for just three out of the 79 mineral blocks auctioned for composite licenses.In summary, Sumit Deb's call for reforms underscores the importance of creating a more attractive and efficient environment for mineral exploration in India, ultimately contributing to the nation's resource security and economic development.

Next Story
Infrastructure Transport

BLR Airport crosses 41 million passengers, 500,000 MT cargo

Kempegowda International Airport, Bengaluru (BLR Airport), has recorded key operational milestones in FY 2024-25, crossing 41.88 million passengers and handling 502,480 metric tonnes of cargo. This marks a year-on-year passenger growth of 11.6 per cent and a 14 per cent rise in cargo volumes.Domestic footfall reached 36.05 million, up 10 per cent, while international traffic saw a robust 25 per cent jump to 5.83 million, aided by Indigo’s global expansion and added frequencies by international carriers. BLR Airport now connects to 76 domestic and 33 international destinations, with Hanoi set..

Next Story
Equipment

JK Tyre opens Truck Wheels Centre in Muzaffarnagar

JK Tyre & Industries has expanded its retail footprint with the launch of a new JK Tyre Truck Wheels Centre in Muzaffarnagar, Uttar Pradesh. Operated by Hemkunt Transport Company, the facility is located strategically on the Muzaffarnagar-Bhopa State Highway and spans 7,500 square feet.The brand shop offers a complete range of services for commercial vehicles, including tyre sales, fittings, servicing, and a product display to guide customer choices. It is equipped with trained technical advisors, an information kiosk, and JK Tyre’s range of Smart and Fuel Efficient tyres.“In key trans..

Next Story
Products

World Health Day: Merino pushes wellness with FABWood innovation

On World Health Day, Merino Industries highlighted the importance of health-first materials in interior spaces with its advanced chipboard solution, FABWood. Designed to promote indoor well-being, FABWood uses E1-grade chipboard that significantly reduces formaldehyde emissions—addressing key concerns about indoor air quality and safety.FABWood is built with Merino’s proprietary ChipWeave Technology, delivering strength, impact resistance, and screw-holding power—making it ideal for furniture, panelling, and structural applications. The product blends durability with sustainable innovati..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?