The Lok Sabha on July 28 passed the Mines and Minerals (Development and Regulation Amendment) Bill, 2023.
Key points
- This bill proposes amendments to the Mines and Minerals (Development and Regulation) Act of 1957, which regulates the mining industry.
- The Bill brings lithium out from the list of restrictive atomic minerals which require mining grants from the Centre with only government companies given licences.
- It proposes to bring eight of 12 atomic minerals, including lithium bearing minerals, zirconium bearing minerals, beach sand minerals, titanium bearing minerals, minerals of rare earth group containing utanium and thorium, into a new category – critical and strategic minerals. The Centre will have the power to give concessions for these minerals to both public and private mining companies.
- The Bill empowers the central government to exclusively auction mining lease and composite exploration licence for certain critical high value minerals such such as gold, silver, platinum, copper.
- The Bill also dispenses with cumbersome forest clearances for mine reconnaissance and prospecting operations, making it easier for private firms to participate in exploration of the country’s mineral resources.
- Changes in mining legislation are being brought to make mineral exploration and production more attractive for investors.
- The reform proposals in the legislation include allowing states to grant composite mineral licence without having to get a central nod. This is expected to enable state governments to put up blocks for auction for at faster pace.
- It will also raise and fix mineral-wise maximum area limits for mineral concessions to provide larger and economic mines to investors. The bill proposes a fixed, 50-year production lease for offshore minerals.
