In India, the focus of exploration has been on surficial minerals, such as coal and iron ore. Meanwhile, globally, the largest proportion of exploration spends are on gold, base metals (such as copper, lead and zinc), and diamonds. To boost India’s exploration activities, the government attempted to inspire private participation in exploration operations with the implementation of the New Mineral Exploration Policy in 2016. In addition, the National Mineral Exploration Trust (NMET) was established to promote exploration and prevent unlawful mining.
The National Mineral Policy, 2019, is a step forward in the field of mineral exploration. The policy will encourage private players to conduct exploration activities by providing a right of first refusal at auctions, a simplified and transparent clearance process, and other relevant measures in accordance with worldwide practices.
Mines and Minerals (Development and Regulation) Amendment Act, 2021
The Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), was amended through the Mines and Minerals (Development and Regulation) Amendment Act, 2021, which was notified on March 28, 2021, to boost mineral production, improve ease of doing business in the country and increase the contribution of mineral production to the GDP. Various simplifications were made in the exploration regime, such as making the NMET an autonomous body, allowing notification of private entities under Section 4(1) of the MMDR Act for conducting exploration, enabling funding of eligible private exploration agencies by the NMET, and establishing a seamless prospecting licencse-cum-mining lease (composite licence). Several modifications were also made in the exploration norms to provide flexibility. These include: allowing the granting of mining leases for limestone, iron ore and bauxite with surficial deposits at the G3 level of exploration; allowing the reassessment of resources for expired, terminated, surrendered or lapsed mines on the basis of available reports of exploration before auctions; allowing the auction of composite licences at the G4 level for all minerals; and establishing the definition of various stages of exploration, exploration norms for different types of deposits, and reporting templates.
Government initiatives
The Indian government has taken a number of measures to enhance mineral exploration and mining activities in the country. As per the Dissemination Policy, 2019, of the Geographical Survey of India (GSI), all reports of mineral exploration, baseline data generation and fundamental geosciences are to be made available to all stakeholders through the GSI portal. Moreover, the GSI has taken up approximately 250 mineral exploration projects in 2021-22. During the year 2021 (till November), Mineral Exploration Corporation Limited (MECL) submitted 39 geological reports on different mineral commodities such as coal, lignite, copper, limestone, iron ore, manganese and magnesite, adding 10,414.36 million tonnes of resources to the national mineral inventory. Out of these 39 reports, 17 reports have been submitted to the NMET.
The government has signed MoU with Odisha Mineral Exploration Corporation Limited (OMECL), Bhubaneswar, for carrying out detailed exploration and related works in Odisha. MECL has also signed an MoU with Central Mine Planning and Design Institute (CMPDIL), Ranchi, for detailed energy and non-coal exploration in CMPDIL blocks. Furthermore, MECL has signed an MoU with the Directorate of Mines and Geology (DMG), Goa, to expedite assessment of mineral resources and take up exploration of mineral acreage to finalise mineral blocks for auctioning. Recent amendments such as the MMDR Amendment Act 2021; the Mineral (Auction) Second Amendment Rules, 2021; and the Minerals (Evidence of Mineral Contents) Amendment Rules will pave the way for states to expedite the auction process of their mineral acreages, making the role of the DMG, Government of Goa, crucial in the process of assessment and allocation of their mineral acreages. MECL will analyse mineral resources by performing a variety of geoscientific explorations, as well as finalise the mineral blocks to be auctioned and establish the state’s mineral inventory, following the signing of the MoU. Meanwhile, the Karnataka government has decided to release a grant of Rs 652.3 million to the Kudremukh Iron Ore Company and MECL to identify mining areas in the state.
Madhya Pradesh’s DMG and Madhya Pradesh State Mining Corporation Limited have signed an agreement to carry out exploration and related works for mineral acreages in Madhya Pradesh. MECL will also carry out exploration of iron ore, sillimanite and rare earth elements in the districts of Nagaon, Karbi Anglong and Goalpara for the next five years. These initiatives represent a turning point in India’s economic growth.
Future roadmap
The National Mineral Policy, which was implemented in 2019, presents significant investment opportunities in India. Going forward, specialised venture capital-based exploration companies need to be incentivised to undertake deep exploration using advanced technologies. India’s mining sector is expected to undergo significant changes in the coming years as a result of schemes such as Make in India, the Smart Cities Mission and rural electrification, as well as increased infrastructure development.