Comments on Draft Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession (Fourth Amendment) Rules, 2021 – request for comments and suggestions

Mr. B.K. Bhatia                                                                                                07.06.2021

Joint Secretary General

Federation of Indian Mineral Industries (FIMI)

FIMI House, B-311, Okhla Industrial Area

Phase-I, New Delhi – 110 020.

 

Dear Sir

Sub :    The Comments and Suggestions on the Proposed Draft Minerals (Other than Atomic and Hydro-Carbons Energy Minerals) Concession Amendment Rules, 2021 – Reg.

Ref :   Your Circular No. B/8/21-22/Cir. No. 41 Dt. 19 June, 2021 sent through   E-mail by FIMI on 19.06.2021.

We Beach Minerals Producers Association (BMPA) established in the year 1995, to make the Manufacturers & Employees of the beach minerals (atomic minerals) industry join hands for common issues and organize them through a common platform to develop Beach Minerals (Atomic Minerals) Industries. There are 61 nos of Beach Mineral Mining Leases, which are functioning under the guidance of this Association. The efficient and valuable guidance of the Association, lead to bring our country as largest producer of Garnet in the World.

Now, we are submitting the following Comments & Suggestions on the Proposed Draft Minerals (Other than Atomic and Hydro-Carbons Energy Minerals) Concession Amendment Rules, 2021.

COMMENTS & SUGGESTIONS ON THE PROPOSED DRAFT MINERALS (OTHER THAN ATOMIC AND HYDRO-CARBONS ENERGY MINERALS) CONCESSION AMENDMENT RULES, 2021

Sl. No. Proposed Rule Comments/ Suggestions Reasons/ Justifications
 

1

Additional Proposal

Rule 3 – Applicability.- These rules shall apply to all minerals, except (ii) minerals listed in Part A and Part B of the First Schedule to the Act.

 

Suitable Amendments to be incorporated in the Proposed MCR to accommodate and govern the mineral concessions relating to atomic minerals where the grade of atomic mineral contained in the ore is less than the threshold value. Hence the suitable amendments to be incorporated in the rule 3 as follows – “Applicability – These rules shall apply to all minerals, except (ii) minerals listed in Part A and Part B of the First Schedule minerals where the grade of atomic mineral contained in the ore is equal or above than the threshold value”. As per rule 3(2) of AMCR, 2016, the mineral concessions relating to atomic minerals where the grade of atomic mineral contained in the ore is less than the threshold value will be governed, mutatis mutandis, by the provisions of the Minerals (Other than Atomic and Hydrocarbons Energy Minerals) Concession Rules, 2016, in force. Whereas the existing MCR, 2016 is not reflecting the same.

Whereas MMDR Act, 1957 and MCDR 2017 are in line with the rule 3 of AMCR, 2016.

Hence the conflicted rule no. 3 of MCR, 2016 to be amended suitably.

2 Omission of Rule 8 – Rights under the provisions of clause (c) of sub-section (2) of section 10A The rule 8 – Rights under the provisions of clause (c) of sub-section (2) of section 10A – shall not be omitted and to be retained. i) Recently MMDR Act has been amended on 28.03.2021, in which the section 10A (2)(c) is not omitted and the same is retained. Whereas this rule is framed based on MMDR Act and shockingly making proposal for omitting the important rule provision.

ii) During the period 2016 to 2019 – (the threshold value is fixed as 0.75% monazite in Total Heavy Minerals, in the case of Beach Sand Minerals as per AMCR, 2016) – there were 34 mining leases were saved under section 10A(2)(c) of MMDR Act pertaining to our members. All the above 34 mining leases were having the grade of atomic mineral contained in the ore is less than the threshold value and shockingly no rule is to govern those mining leases. Thus, our members were not provided with any opportunity towards saving those mining leases applications.

 

iii) Now we strongly objecting the omission of rule no. 8 and our members shall be given a special grace period of at-least 3 years to save their mining leases under section 10A (2) (c).

3 Schedule XII – Amount of Fine – Delay in Modification and review of the Mining Plan – Rs. 2,000/ per day subject to maximum Rs. 5,00,000/-. The amount of Fine to be modified as, Rs. 500/- per day subject to maximum Rs. 50,000/-. The amount of Fine is exceptionally high and already all the lessees are overcharged with several financial implications viz., Royalty, DMF, NMET, GST etc.

 

Hence, we kindly requested that the above comments & suggestions may be forwarded to the Ministry of Mines accordingly.

Thanking You,

President

 Beach Minerals Producer Association

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