Q. Which one of the following is the primary distinction between a ‘Mining license’ and a ‘Composite license’ required for mineral exploration and extraction?

[A] A mining license covers only the extraction stage, while a composite license covers both exploration and extraction.

[B] A mining license is required before a composite license can be obtained.

[C] A composite license is a type of mining license with additional exploration rights.

[D] They have no difference in the stages covered, but a composite license allows for longer exploration periods.

Answer: A
Notes:

Explanation –

Mining License: This license grants the right to extract minerals from an area where the presence and quantity of the mineral resource are already established. It doesn’t cover exploration activities like surveying, drilling, or resource estimation, which are required before extraction can begin.

Composite License: This license combines both exploration and extraction rights. It allows the holder to conduct exploration activities to determine the presence, extent, and quality of the mineral resource in the specific area, followed by extraction if the results are economically viable.

Source: ForumIAS

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