Mineral concession amendments to raise availability, ease pricing pressure

What is the News?

The Ministry of Mines has notified the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 to amend The Minerals Concession Rules, 2016.

What are the key provisions of the Minerals Concession (Fourth Amendment) Rules, 2021?

Source: Business Standard

Allows Part Surrender of Mines: The rules have allowed part surrender of mining lease area allowed in all cases.Presently, part surrender was allowed only in case of non-grant of forest clearance.

Sale of minerals by captive owners: In any lease, where the mineral is required to be used for captive purpose, the lessee may sell up to 50% of total mineral produced in such captive mines in a financial year.

Click Here to read: Difference between Captive and Non-Captive Mines

Disposal of Mineral: The rules have added a provision allowing disposal of overburden/ waste rock/ mineral below the threshold value which is generated during the course of mining.

Penalty provisions in the rules have been rationalized: Previously, the rules provided for penalty of imprisonment upto 2 years or fine upto 5 lakh rupees or both for violation of each and every rule irrespective of the severity of the violation.Now the rules categorized the violations of the rules under the following heads:

• Major Violations: Penalty of imprisonment, fine or both.
• Minor Violations: Penalty of only fine for such violations prescribed.
• Violation of some rules has been decriminalized.

Source: This post is based on the article “Mineral concession amendments to raise availability, ease pricing pressure” published in Business Standard on 9th November 2021.