April 11, 2008
Mineral Policy Suggests Steps to Boost Exploration
New Delhi, Apr10 The National Mineral Policy (NMP) cleared by the Cabinet two weeks ago suggests steps to push up mineral exploration to boost availability, while sidestepping the issue of capping export of minerals like iron ore and conserve it within the country.
The ministry of mines has also proposed lowering Fe content in iron ore used to the levels of China. India has bench marked Fe content at 55%, while China uses ore with Fe content as low as 30 %.
“The challenge before us is not of scarcity of ore but proper exploration of it. Our benchmark right now is 55% Fe content and we still do not have requisite capacities for beneficiation and if we continue this way then iron ore will last 140 years,” said JP Singh, secretary, ministry of mines.
“According to my estimates if we are able to utilise 45% Fe content ore then the duration will go up to more than 200 years and if we can match China then it will be even more,” he added.
Some of the salient features of the policy include seamless transition from regional exploration (RE) to prospecting (PL) to mining (ML) while unbundling the three processes from each other. As a result Companies may indulge in any of the processes and then transfer it to another company to complete the chain.
“In other countries there are Companies which are very good at reconnaissance and transfer their leases or sell data after that. We want the same model here so that mining is done scientifically,” mines minister Sis Ram Ola said, while releasing the policy. The policy is expected to treble investment in the sector from Rs 18,000 crore to Rs 55,000 crore in the next 4-5 years.
The issue of royalty rates, though covered under the policy, has, however, not been approved by the Cabinet. The policy has recommended ad valorem rates for some of the minerals like iron ore, graphite and uranium. The revision is expected to result in rationalisation of royalty accruals to states especially in case of iron ore whose prices have gone up appreciably. Accruals for major mineral producing states are likely to increase from Rs 2014 crore in 2006-07 to Rs 3943 crore.