India Shortens Mining Leases To One Year
January 26, 03
In a move that will benefit traditional diamond miners, the Indian Government has decided to grant mining leases for only one year, instead of twenty years. The leases are for mining of precious commodities such as diamonds and the government will amend India's Mines and Minerals Development and Regulation Act.
"The Conference of State Mining Ministers agreed to amend the Mines and Minerals Development and Regulation Act to allow traditional mining of placer diamonds. The move follows a request by the Madhya Pradesh government to grant the concession to traditional miners in the state," Uma Bharti, Coal and Mines Minister told Business Standard.
The amendment will benefit traditional miners in the Indian states of Madhya Pradesh and Chattisgarhby. The changes will help find a way to exploit alluvial diamonds found in these states' riverbeds. In the absence of any clear guidelines apparently illegal mining activities have been taking place.
In an effort to involve local bodies in mining, the Coal and Mines Ministry has proposed an overhaul of the existing mining laws. The new laws make it mandatory to obtain recommendations of Gram Sabha (the local assembly) and Panchayats (licensing agency in the self-government of an Indian caste) before granting concessions for minor minerals in non-scheduled areas and consultations with Panchayat bodies are to be made compulsory in order to grant concessions in scheduled areas.
In addition, amendments have also been proposed to the Mineral Conservation and Development Rules 1988 (MCDR) in order to make a comprehensive mine closure plan mandatory. Each mine would require a closure plan that would include progressive and final plans as defined in the proposed changes to the MCDR.
A leaseholder would not abandon a mine unless a final mine closure plan duly approved by the regional controller of mines has been implemented. And in the event of temporary closure of a mine due to a natural disaster, the authorities must be informed and all precautions must be taken to avoid damage or accidents.