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Source: The post is based on the article “House clears tweaked law to set off undersea mineral hunt” published in Times of India on 4th August 2023.
What is the News?
The Rajya Sabha has passed the Offshore Areas Mineral (Development and Regulation) Amendment Bill,2023.
What is Offshore Areas Mineral (Development and Regulation) Amendment Bill,2023?
The Bill seeks to make amendments to the Offshore Areas Mineral (Development and Regulation) Act, 2002.
The Act categorizes offshore mining-related activities into: (i) reconnaissance, which involves a preliminary survey to locate mineral resources, (ii) exploration, which includes exploring, proving, or locating mineral deposits, and (iii) production, the commercial activity of the extraction of minerals.
Key Provisions of the bill:
Composite license: The Act provides for following types of concessions: (i) a reconnaissance permit for reconnaissance, (ii) an exploration license for exploration and (iii) a production lease for undertaking mining.
– The Bill introduces a composite license for granting rights for exploration as well as production.
– Under the composite license, the licensee will be required to complete exploration within three years. This may be extended by two years upon application by the licensee. If mineral resources have been established, the licensee will be granted one or more production leases for the explored area.
Validity of concessions: Under the Act, a production lease is granted for a period of up to 30 years. It may be further renewed for up to 20 years. The Bill instead provides that a production lease, as well as a production lease under a composite license, will be valid for 50 years.
Mining of atomic minerals: The Bill adds that in case of atomic minerals, exploration, production, and composite licenses will be granted only to the government or government companies. Atomic minerals are defined in the Mines and Minerals (Development and Regulation) Act, 1957.
Standard area of blocks: A limit has also been introduced on total area one person can acquire offshore (not more than 45 minutes latitude by 45 minutes longitude) in respect of any mineral or prescribed group of associated minerals under one or more operating rights (taken together).
Offshore Areas Mineral Trust: The Bill sets up the Offshore Areas Mineral Trust. Concession holders will be required to pay an amount to the Trust in addition to any royalty.
– The funds will be used for specified purposes including: (i) exploration in offshore areas, (ii) research and studies about the mitigation of adverse effects of offshore mining on the ecology, and (iii) relief upon the occurrence of a disaster.
