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
Building Material

Parallel debuts fluted glass collection, redefining luxury interiors

Parallel has launched an exquisite collection of tinted, extra-clear, and designer fluted glass, introducing a new dimension to contemporary interiors.Fluted glass, known for its vertical striations, diffuses light while sculpting silhouettes with a refined aesthetic. Parallel’s range includes smoky tinted variants, pristine extra-clear options, and metallic-infused designs, ideal for partitions, doors, and wall treatments that balance exclusivity with openness.Emphasising sensory design, the collection enhances spaces by creating dynamic light interactions. Crafted for luxury residences, ho..

Next Story
Building Material

Nivasa unveils luxury lighting collection blending artistry and innovation

Nivasa, a leader in luxury furniture design, has launched an exquisite lighting collection inspired by nature, combining sculptural aesthetics with masterful craftsmanship.Crafted from premium 304-grade stainless steel, each piece showcases a refined interplay of organic and sleek forms, offering a range of finishes for bespoke customization. Designed for grand foyers, intimate spaces, and sophisticated interiors, the collection merges contemporary finesse with global design standards.Collection highlights include:Circular Drummer’s Chandelier – A geometric yet fluid design in a light gold..

Next Story
Real Estate

IHCL launches Claridges Collection, redefining boutique luxury

Indian Hotels Company (IHCL) has introduced the Claridges Collection, a boutique luxury brand catering to discerning travelers seeking refined experiences.Speaking on the occasion, Puneet Chhatwal, MD & CEO, IHCL, said, “With India’s growing economic prominence, the income pyramid is witnessing a structural shift and the demand for luxury product and services is at an all-time high led by significant expansion of households in the high-net-worth bracket. This presents a market opportunity to extend hospitality offerings in the luxury segment as consumers are seeking differentiated ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?