In order to strengthen ease of doing business in the domestic mineral sector, the Union government has notified the amended minerals concession rules that will pave the way for releasing of additional minerals in the market by greater utilization of mining capacities of captive mines. It also provides for the manner in which 50 percent of mineral produced from the captive mines can be sold.
The mines ministry has notified the Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 to amend The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 (MCR, 2016). The new rules have been framed after extensive consultations with state governments, industry associations, miners, other stakeholders and general public. Various amendments were made in the Mines and Minerals (Development and Amendment) Act, 1957 (MMDR Act) earlier this year.
The changes were aimed at increasing employment and investment in the mining sector, increasing revenues to states, raising the production and time-bound operationalisation of mines, among other objectives. The allowance for sale of prescribed quantity of mineral shall also motivate the lessees to enhance the production from the captive mines. Further, additional premium amount, royalty and other statutory payments in respect of the quantity sold will boost the revenue of the state governments. Provisions have also been added to allow disposal of overburden/ waste rock/ mineral below the threshold value, which is generated during the course of mining or beneficiation of the mineral.
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