New authority soon to regulate mining

“The proposed authority will be vested with powers to grant mining leases,file cases against violators and act against illegal mining. PSUs too will come under its purview,” said a government source. The Indian Bureau of Mines (IBM) would continue to be the technical regulator for the mining sector and monitor players’ compliance with mining plans,” the source added. A mining plan is a document that every player has to submit to the IBM detailing how he intends to mine the ores over the next five years.

The GoM has,so far,not considered the demands of the law and steel ministries to ban exports of iron ore. While the commerce and industry ministry is opposed to such an extreme measure,the mines ministry has recommended imposition of a windfall tax to curb iron ore exports. The mines ministry’s proposal is pending with the finance ministry,the sources said. To stop illegal mining,Karnataka has,meanwhile,banned exports of iron ore from all its minor ports.

The draft MMDR Bill being discussed by the GoM does not talk of setting up such an authority. It only states that the IBM will report to the Central government the instances of illegal or unscientific mining. The Centre will then direct the respective state to investigate and prosecute. It may even ask the Centre to revoke the mineral concession granted to the player.