Minerals concession for major minerals are granted under the provisions of MMDR,1957(Amendment,2015),MCR,1960 and MCDR,1988. For major minerals reconnaissance permit, prospecting license and mining lease are granted.
The approval of the mining plan is required to commence mining operations. Therefore, the lease is granted on the basis of an approved plan. Mine plans are a set of plans, cross-sections, longitudinal sections that show the entire workings of a mining or quarrying operation.
MINING LEASES-STEP BY STEP PROCESS
- Identify the minerals you wish to mine: The first step in obtaining a mining lease is to identify the minerals you wish to mine. Different minerals require different types of mining leases, and the process for obtaining them may vary.
- Obtain a prospecting license: Before applying for a mining lease, you must obtain a prospecting license from the relevant state government. This license allows you to explore the area for minerals and assess the commercial viability of the deposit.
- Prepare a mining plan: Once you have identified the minerals and assessed their viability, you must prepare a mining plan that outlines the proposed mining operations, including the equipment and methods to be used, the estimated reserves and production, and the environmental impact assessment.
- Obtain necessary clearances: Before the mining lease is granted, you must obtain several clearances from various authorities, including the environmental clearance from the Ministry of Environment and Forests, and the forest clearance from the State Forest Department.
- Apply for a mining lease: After obtaining all the necessary clearances, you must apply for a mining lease with the State government. The application must include the mining plan, a statement of the estimated reserves, and a statement of the royalty and other fees to be paid.
- Await approval and execute the lease agreement: Once the application is submitted, the State government will evaluate the proposal and grant the mining lease if it meets all the criteria. If the application is approved, the mining company must execute the lease agreement with the State government.
PROCEDURES:
- An application for grant of mining lease/reconnaissance permit/prospecting license shall be made to the State Government in Form 1/FormA/FormB respectively as per rule 22(1) of Mineral Concession Rule,1960.
- Application shall be accompanied by non-refundable fee calculated @ of Rs.5.00/sq km or part thereof payable in accordance with MCR, 1960 for reconnaissance permit. For prospecting license @of Rs.250.00/sq.km or part thereof and Rs.250.00 for each additional sq.km. For mining lease Rs.2500.00.
- A valid clearance certificate in the form prescribed by State Government of payment of mining dues such as royalty, dead rent or surface rent payable under 22(3)(i)(d) of Mineral Concession Rule,1960.
- In case if applicant does not hold and has not reconnaissance permit, it shall not be necessary for him to produce the said certificate but required to furnish an affidavit to the satisfaction of the State Government.
- In case the applicant is a partnership firm or a private ltd. Company such certificate shall be furnished by all persons of partnership firm or as the case may be all members of Private Ltd. Company.
- An affidavit stating that the applicants filed up to date income tax returns paid the income tax assessed on him and paid the income tax on the basis of self-assessment as provided in the income tax Act,1961(43 of 1961) as per rule 22(3)(i)(f) of MCR,1960 to be furnished.
- An affidavit showing particulars of areas mineral wise in the State, which the applicant or any person jointly with him already holds under
(i) a reconnaissance permit
(ii) applied for but not granted
(iii) being applied simultaneously, as per rule 22(3)(i)(g),of MCR,1960 to be furnished. - A statement in writing that the applicant has, where land is not owned by him, obtained surface rights over the area or has obtained consent of the owner for starting mining operations as per rule 22(3)(i)(h) of MCR,1960.
- Applicant shall attached cadastral map showing applied area and detailed statement of area applied for.
- Memorandum and Articles of Association of Company/Deed of registration of company and deed of partnership of firm/company.
- In respect of Minerals specified in schedule 5(1) of Mines and Minerals(Development & Regulation) Act,1957,prior to approval of Govt. of India has to be obtained before grant of mining lease as per the provision of section 5(1)of MMDR,1957.
- As per the section 5(2) of MMDR,1957 no mining lease shall be granted unless the area applied for has been prospected earlier or existence of mineral contents has been established.
- As per section 6(1)(b) of MMDR,1957,if the total area hold under mining lease together with the area applied for grant of lease exceeds 10.00sq.km.clearance from the Govt.of India.
- If the area is not continuous or compact block relaxation of section 6 (1)(c) of MMDR,1957 from the State Govt. has to be obtained.
- If the area applied for mining lease >5.00 and<50.00hects the clearance for the State environment impact assessment authority is necessary and for >50.00 hects clearance from the Ministry of Environment is necessary for using forest area for non-forest purposes.
- If the mining lease applications is found to be in order, as per provisions contained in sub rule 4 of rule22 of MCR,1960,the precise area will be communicated to the applicant with instructions to submit a mining plan.
- Before the execution of deed, an applicant shall deposit a sum of rupees as security deposit for (i) reconnaissance permit Rs.20.00/sq.km.or part thereof, for prospecting license Rs.250.00/sq.km.and Rs.10000.00 for mining lease.
- Every mining lease holder shall have to prepare EIA and EMP for mining lease area more than 5 hect and obtain permission for Govt.of India as per prevalent rules
- All mining lease holder shall pay in theDMFT as per rule 9B of MMDR,2015.
For minor minerals
Procedure for the grant of mining lease/contracts/permit of minor minerals of X and Y schedule as per the Assam Minor Mineral Concession Rule, 2013.
- The application shall be in the prescribed format ML-1 of AMMCR,2013.
- No persons shall undertake any prospecting or mining operation activity in respect of any minerals in any part of the State, except under and in accordance with the terms and condition of a permit/Pl/ML or a mining contract as the case may be.
- No mining lease shall be granted by the competent authority unless it is satisfied that there is evidence to show that the area for which grant of mining lease is considered has been prospected for minor minerals or existence of minor minerals therein has been established otherwise.
- All required documents such as affidavits for mining dues clearance certificate, payment of income tax details, area held under etc. to be enclosed.
- The applicant shall ensure surface rights of the area applied for.
- On communication of the precise area for grant of quarry lease by the Govt.,the applicant shall produce mining plan to the Director, Directorate of Geology and Mining. On approval of mining plan by the Directorate, the Govt. will grant mining lease/contract/permit in favour of the applicant.
- All mining lease/contracts/permit/registration/transfer shall exercise as per ML-1,MC-1,MPS-1Ml-2,ML-4 respectively of AMMCR,2013.
- All mining lease holder shall have the approval of State Environment Impact Assessment Authority for forest area of more than 5.00 hect.
- All mining lease/contract/permit holder shall pay the royalty,deadrent, surface rent as prescribed in AMMCR,2013.
- All mining lease holder shall pay in the DMFT as per 15A of MMDR,2015.
FAQs
What is the regulatory authority overseeing mining activities in India?
The Ministry of Mines, Government of India, is the primary regulatory authority overseeing mining activities. Additionally, state governments play a crucial role in granting mining approvals within their respective jurisdictions.
What is the first step in obtaining a mining approval in India?
The first step involves applying for a prospecting license or mining lease. Prospective applicants need to submit detailed exploration and mining plans to the relevant authorities.
What types of minerals require mining approval in India?
Mining approval is typically required for major minerals, including coal, iron ore, bauxite, limestone, copper, and other minerals specified by the government. Different minerals may be subject to distinct approval processes.
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