Sạntal: MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

MINES

AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

(No.

67 of 1957)

(As

ammended up to 20th December, 1999)

List

of Amending Act

Act to provide for the regulation of mines and the development of minerals

under the control of the Union.BE it enacted by Parliament in the Eighth Year

of the Republic of India as follows:

•

Preliminary (Section 1 - 3)

•

General Restrictions On Undertaking Reconnaissance, Prospecting And Mining

Operations (Section 4 - 9A)

•

Procedure For Obtaining Reconnaissance Permits, Prospecting Licences Or Mining

Leases in Respect of Land in Which the Minerals Vest in the Government (Section

10 - 12)

•

Rules For Regulating The Grant of Reconnaissance Permits, Prospecting Licences

And Mining Leases (Section 13 - 16)

•

Special Powers of Central Government to undertake Reconnaissance, Prospecting

or Mining Operations in Certain Cases (Section 17 - 17A)

•

Development of Minerals (Section 18 - 18A)

•

Miscellaneous (Section 19 - 33)

•

The First Schedule - Specified Minerals

•

The Second Schedule - Rates Of Royalty

•

The Third Schedule - Rates of Dead Rent

MINES

AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

LIST

OF AMENDING ACTS

The Mines and Minerals (Regulation and Development) Amendment Act, 1958 (15 of

1958).

The Repealing and Amending Act, 1960 (58 of 1960).

The Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of

1972).

The Repealing and Amending Act, 1978 (38 of 1978).

The Mines and Minerals (Regulation and Development) Amendment Act, 1986 (37 of

1986).

The Mines and Minerals (Regulation and Development) Amendment Act, 1994 (25 of

1994).

The Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 of

1999).

PRELIMINARY

Short

title, extent and commencement

(1) This Act may be called the Mines and Minerals [Development and Regulation]

Act, 1957.

(2)

It extends to the whole of India.

(3)

It shall come into force on such date as the Central Government may, by

notification in the Official Gazette, appoint.

Declaration

as to the expediency of Union control

It is hereby declared that it is expedient in the public interest that the

Union should take under its control the regulation of mines and the development

of minerals to the extent herein after provided.

Definitions

In this Act, unless the context otherwise requires:

"minerals" includes all minerals except minerals oils;

"minerals oils" includes natural gas and petroleum;

"mining lease" means a lease granted for the purpose of undertaking

mining operations, and includes a sub-lease granted for such purpose;

"mining operations" means any operations undertaken for the purpose

of wining any mineral;

"minor minerals" means building stones, gravel, ordinary clay,

ordinary sand other than sand used for prescribed purposes, and any other

mineral which the Central Government may, by notification in the Official

Gazette, declare to be a minor mineral;

"prescribed" means prescribed by rules made under this Act;

"prospecting licence" means a licence granted for the purpose of

undertaking prospecting operations;

"prospecting operations" means any operations undertaken for the

purpose of exploring, locating or proving mineral deposits;

[(ha)

"reconnaissance operations" means any operations undertaken for

preliminary prospecting of a mineral through regional, aerial, geophysical or

geochemical surveys and geological mapping, but does not include pitting,

trenching, drilling (except drilling of boreholes on a grid specified from time

to time by the Central Government) or sub-surface excavation;

(hb)

"reconnaissance permit" means a permit granted for the purpose of

undertaking reconnaissance operations; and].

(i)

the expressions, "mine" and "owner", have the meanings

assigned to them in the Mines Act, 1952.

GENERAL

RESTRICTIONS ON UNDERTAKING RECONNAISSANCE, PROSPECTING AND MINING

OPERATIONS

Reconnaissance

or Prospecting or mining operations to be under licence or lease

(1) [No person shall undertake any reconnaissance, prospecting or mining

operations in any area, except under and in accordance with the terms and

conditions of reconnaissance permit or of a prospecting licence or, as the case

may be, a mining lease, granted under this Act and the rules made thereunder]:

Provided

that nothing in this sub-section shall affect any prospecting or mining

operations undertaken in any area in accordance with the term and conditions of

a prospecting licence or mining lease granted before the commencement of this

Act which is in force at such commencement.

Provided

further that nothing in this sub-section shall apply to any prospecting

operations undertaken by the Geological Survey of India, the Indian Bureau of

Mines, [the Atomic Minerals Directorate for Exploration and Research] of the

Department of Atomic Energy of the Central Government, the Directorates of

Mining and Geology of any State Government ( by whatever name called), and the

Mineral Exploration Corporation Limited, a Government Company within the

meaning of Section 617 of the Companies Act, 1956.

Provided

also that nothing in this sub-section shall apply to any mining lease (whether

called mining lease, mining concession or by any other name) in force

immediately before the commencement of this Act in the Union Territory of Goa,

Daman and Diu.

[(1A)

No person shall transport or store or cause to be transported or stored any

mineral otherwise than in accordance with the provisions of this Act and the

rules made thereunder.]

(2)

[No reconnaissance permit, prospecting licence or mining lease] shall be

granted otherwise then in accordance with the provisions of this Act and the

Rules made thereunder.

(3)

Any State Government may, after prior consultation with the Central Government

and in accordance with the Rules under Section 18, [undertake reconnaissance,

prospecting or mining operations with respect to any mineral specified in the

First Schedule in any area within that State which is not already held under

any reconnaissance permit, prospecting licence or mining lease.]

Termination

of prospecting licences or mining leases.

4A.(1)

Where the Central Government, after consultation with the State Government, is

of opinion that it is expedient in the interest of Regulation of Mines and

Mineral Development, Preservation of natural environment, control of floods,

prevention of pollution or to avoid danger to public health or communications

or to ensure safety of buildings, monuments or other structures or for

conservation of mineral resources or for maintaining safety in the mines or for

such other purposes, as the Central Government may deem fit, it may request the

State Government to make a premature termination of prospecting licence or

mining lease in respect of any mineral other than a minor mineral in any area

or part thereof, and, on receipt of such request, the State Government shall

make an order making a premature termination of such prospecting licence or

mining lease with respect to the area or any part thereof.

(2)

Where the State Government [ ] is of opinion that it is expedient in the

interest of regulation of mines and mineral development, preservation of

natural environment, control of floods, prevention of pollution, or to avoid

danger to public health or communications or to ensure safety of buildings,

monuments or other structures or for such other purposes, as the State

Government may deem fit, it may, by an order, in respect of any minor mineral,

make premature termination of prospecting licence or mining lease with respect

to the area or any part thereof covered by such licence or lease:

(3)

No order making a premature termination of a prospecting licence or mining

lease shall be made except after giving the holder of the licence or lease a

reasonable opportunity of being heard.

(4)

Where the holder of a mining lease fails to undertake mining operations for a

period of [two years] after the date of execution of the lease or having

commenced mining operations, has discontinued the same for a period of [two

years], the lease shall lapse on the expiry of the period of [two years] from

the date of execution of the lease or as the case may be, discontinuance of the

mining operations:

Provided

that the State Government may, on an application made by the holder of such lease

before its expiry under this sub-section and on being satisfied that it will

not be possible for the holder of the lease to undertake mining operations or

to continue such operations for reasons beyond his control, make an order,

subject to such conditions as may be prescribed, to the effect that lease shall

not lapse:

Provided

further that the State Government, may on an application by the holder of a

lease submitted within a period of six months from the date of its lapse and on

being satisfied that such non commencement or discontinuance was due to reasons

beyond the control of the holder of the lease, revive the lease from such

prospective or retrospective date as it thinks fit but not earlier than the

date of lapse of the lease:

Provided

also that no lease shall be revived under the second proviso for more than

twice during the entire period of the lease.

Restrictions

on the grant of reconnaissance permits or prospecting licences or mining leases

[(1) A State Government shall not grant a [reconnaissance permit, prospecting licence

or mining lease] to any person unless such person –

is an Indian national, or a Company as defined in sub-section (1) of Section 3

of the Companies Act, 1956; and

satisfies such conditions as may be prescribed : Provided that in respect of any mineral

specified in the First Schedule, no prospecting licence or mining lease shall

be granted except with the previous approvals of the Central Government.

Explanation

– For the purposes of this sub-section, a person shall be deemed to be an

Indian national, -

in the case of a firm or other association of individuals, only if all the

members of the firm or members of the association are citizens of India;

and

in the case of an individual, only if he is a citizen of India;]

(2)

No mining lease shall be granted by the State Government unless it is satisfied

that-

[(a)

there is evidence to show that the area for which the lease is applied for has

been prospected earlier or the existence of mineral contents therein has been

established otherwise than by means of prospecting such area; and

(b)

there is a mining plan duly approved by the Central Government, or by the State

Government, in respect of such category of mines as may be specified by the

Central Government, for the development of mineral deposits in the area

concerned.]

Maximum

area for which a reconnaissance permit, prospecting licence or mining lease may
be granted

(1) No person shall acquire in respect of any mineral or prescribed group of

associated minerals [in a State] –

(a)

one or more prospecting licences covering a total area of more than twenty-five

square kilometres; or

[(aa)

one or more reconnaissance permit covering a total area of ten thousand square

kilometres:

Provided

that the area granted under a single reconnaissance permit shall not exceed

five thousand square kilometres; or];

(b)

one or more mining leases covering a total area of more than ten square

kilometres;

Provided

that if the Central Government is of opinion that in the interests of the

development of any mineral, it is necessary so to do, it may, for reasons to be

recorded by it, in writing, permit any person to acquire one or more

prospecting

licences

or mining leases covering an area in excess of the aforesaid total area;

[(c)

any reconnaissance permit, mining lease or prospecting licence in respect of

any area which is not compact or contiguous;

Provided

that if the State Government is of opinion that in the interests of the

development of any mineral, it is necessary so to do, it may, for reasons to be

recorded in writing, permit any person to acquire a reconnaissance permit,

prospecting licence or mining lease in relation to any area which is not

compact or contiguous;]

(2)

For the purposes of this section, a person acquiring by, or in the name of,

another person a [reconnaissance permit, prospecting licence or mining lease]

which is intended for himself shall be deemed to be acquiring it himself.

(3)

For the purposes of determining the total area referred to in sub-section (1),

the area held under a 4 [reconnaissance permit, prospecting licence or mining

lease] by a person as a member of a co-operative society, company or other

corporation or a Hindu undivided family or a partner of a firm, shall be

deducted from the area referred to in sub-section (1) so that the sum total of

the area held by such person, under a [reconnaissance permit, prospecting

licence or mining lease], whether as such member or partner, or individually,

may not, in any case, exceed the total area specified in sub-section (1).

Periods

for which reconnaissance permits or prospecting licences may be granted or
renewed

[(1) The period for which [a reconnaissance permit or prospecting licence] may

be granted shall not exceed three years.

(2)

A prospecting licence shall, if the State Government is satisfied that a longer

period is required to enable the licensee to complete prospecting operations be

renewed for such period or periods as that Government may specify:

Provided

that the total period for which a prospecting licence is granted does not

exceed five years;

Provided

further that no prospecting licence granted in respect of [a mineral included

in Part A and Part B to] the First Schedule shall be renewed except with the

previous approval of the Central Government.]

Periods

for which mining leases may be granted or renewed

[ (1)The maximum period for which a mining lease may be granted shall not

exceed thirty years:

Provided

that the minimum period for which any such mining lease may be granted shall

not be less than twenty years;]

(2)

A mining lease may be renewed for [a period not exceeding twenty years]:

[(3)

Notwithstanding anything contained in sub-section (2), if the State Government

is of opinion that in the interests of mineral development it is necessary so

to do, it may, for reasons to be recorded, authorise the renewal of a mining

lease in respect of minerals not specified in Part A and Part B of the First

Schedule for a further period or periods not exceeding twenty years in each

case.(4) Notwithstanding anything contained in sub-section(2) and sub-section

(3), no mining lease granted in respect of mineral specified in Part A or Part

B of the First Schedule shall be renewed except with the previous approval of

the Central Government.]

Royalties

in respect of mining lease

(1) The holder of a mining lease granted before the commencement of this Act

shall, notwithstanding anything contained in the instrument of lease or in any

law in force at such commencement, pay royalty in respect of any mineral

removed or consumed by him or by his agent, manager, employee, contractor or

sub-lessee from the leased area after such commencement, at the rate for the

time being specified in the Second Schedule in respect of that mineral.

(2)

The holder of a mining lease granted on or after the commencement of this Act

shall pay royalty in respect of any mineral removed or consumed by him or by

his agent, manager, employee, contractor or sub-lessee from the leased area at

the rate for the time being specified in the Second Schedule in respect of that

mineral.

(2A)

The holder of a mining lease, whether granted before or after the commencement

of the Mines and minerals (Regulation and Development) Amendment Act, 1972,

shall not be liable to pay any royalty in respect of any coal consumed by a

workman engaged in a colliery provided that such consumption by the workman

does not exceed one-third of a tonne per month.

(3)

The Central Government may, by notification in the Official Gazette amend the

Second Schedule so as to enhance or reduce the rate at which royalty shall be

payable in respect of any mineral with effect from such date as may be

specified in the notification:

Provided

that the Central Government shall not enhance the rate of royalty in respect of

any mineral more than once during any period of three years.

Dead

rent to be paid by the lessee

(1)The holder of a mining lease, whether granted before or after the

commencement of the Mines and Minerals (Regulation and Development) Amendment

Act, 1972, shall notwithstanding anything contained in the instrument of lease

or in any other law for the time being in force, pay to the State Government,

every year, dead rent at such rate as may be specified, for the time being, in

the Third Schedule, for all the areas included in the instrument of lease:

Provided

that where the holder of such mining lease becomes liable, under section 9, to

pay royalty for any mineral removed or consumed by him or by his agent,

manager, employee, contractor or sub-lessee from the leased area, he shall be

liable to pay either such royalty, or the dead rent in respect of that area,

whichever is greater.

(2)

The Central Government may, by notification in the Official Gazette, amend the

Third Schedule so as to enhance or reduce the rate at which the dead rent shall

be payable in respect of any area covered by a mining lease and such

enhancement or reduction shall take effect from such date as may be specified

in the notification:

Provided

that the Central Government shall not enhance the rate of the dead rent in

respect of any such area more than once during any period of three years.

PROCEDURE

FOR OBTAINING RECONNAISSANCE PERMITS, PROSPECTING LICENCES OR MINING

LEASES

IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT

Application

for reconnaissance permits, prospecting licences or mining leases

10.

(1)An application for [a reconnaissance permit, prospecting licence or a mining

lease] in respect of any land in which the minerals vest in the Government

shall be made to the State Government concerned in the prescribed form and

shall be accompanied by the prescribed fee.

(2)

Where an application is received under sub-section (1), there shall be sent to

the applicant an acknowledgement of its receipt within the prescribed time and

in the prescribed form.

(3)

On receipt of an application under this section, the State Government may,

having regard to the provisions of this Act and any rules made thereunder,

grant or refuse to grant the [permit, licence or lease].

Preferential

right of certain persons

[11

(1)Where a reconnaissance permit or prospecting licence has been granted in

respect of any land, the permit holder or the licensee shall have a

preferential right for obtaining a prospecting licence or mining lease, as the

case may be, in respect of that land over any other person:

Provided

that the State Government is satisfied that the permit holder or the licensee,

as the case may be,-

(a)

has undertaken reconnaissance operations or prospecting operations, as the case

may be, to establish mineral resources in such land;

(b)

has not committed any breach of the terms and conditions of the reconnaissance

permit or the prospecting licence;

(c)

has not become ineligible under the provisions of this Act; and

(d)

has not failed to apply for grant of prospecting licence or mining lease, as

the case may

be, within three

months after the expiry of reconnaissance permit or prospecting licence, as the

case may be, or within such further period, as may be extended by the said

Government.

(2)

Subject to the provisions of sub-section (1), where the State Government has

not notified in the Official Gazette the area for grant of reconnaissance

permit or prospecting licence or mining lease, as the case may be, and two or

more persons have applied for a reconnaissance permit, prospecting licence or a

mining lease in respect of any land in such area, the applicant whose

application was received earlier, shall have the preferential right to be

considered for grant of reconnaissance permit, prospecting licence or mining

lease, as the case may be, over the applicant whose application was received later:

Provided

that where an area is available for grant of reconnaissance permit, prospecting

licence or mining lease, as the case may be, and the State Government has

invited applications by notification in the Official Gazette for grant of such

permit, licence or lease, all the applications received during the period

sepcified in such notification and the applications which had been received

prior to the publication of such notification in respect of the lands within

such area and had not been disposed

of,

shall be deemed to have been received on the same day for the purposes of

assigning priority under this sub-section:

Provided

further that where any such applications are received on the same day, the

State Government, after taking into consideration the matter specified in

sub-section

(3),

may grant the reconnaissance permit, prospecting licence or mining lease, as

the case may be, to such one of the applications as it may deem fit.

(3)

The matters referred to in sub-section (2) are the following:-

any special knowledge of, or experience in, reconnaissance operations,

prospecting operations or mining operations, as the case may be, possessed by

the applicant;

the financial resources of the applicant;

the nature and quality of the technical staff employed or to be employed by the

applicant;

the investment which the applicant proposes to make in the mines and in the

industry based on the minerals;

such other matters as may be prescribed.

(4)

Subject to the provisions of sub-section (1), where the State Government

notifies in the Official Gazette an area for grant of reconnaissance permit,

prospecting licence or mining lease, as the case may be , all the applications

received during the period as specified in such notification, which shall not

be less than thirty days, shall be considered simultaneously as if all such

applications have been received on the same day and the State Government, after

taking into consideration the matters specified in sub-section (3), may grant

the reconnaissance permit, prospecting licence or mining lease, as the case may

be, to such one of the applicants as it may deem fit.

(5)

Notwithstanding anything contained in sub-section (2), but subject to the

provisions of sub-section (1), the State Government may, for any special

reasons to be recorded, grant a reconnaissance permit, prospecting licence or

mining lease, as the case may be, to an applicant whose application was received

later in preference to an application whose application was received earlier:

Provided

that in respect of minerals specified in the First Schedule, prior approval of

the Central Government shall be obtained before passing any order under this

subsection.]

Registers

of reconnaissance permits, prospecting licences and mining leases

(1) The State Government shall cause to be maintained in the prescribed form –

(a)

a register of applications for prospecting licences;

(b)

a register of prospecting licences;

[(c)

a register of applications for mining leases;

(d)

a register of mining leases;

(e)

a register of applications for reconnaissance permits; and

(f)

a register of reconnaissance permits.]

each of which shall be entered such particulars as may be prescribed.

(2)

Every such register shall be open to inspection by any person on payment of

such fee as the State Government may fix. RULES FOR REGULATING THE GRANT OF

RECONNAISSANCE

PERMITS, PROSPECTING LICENCES AND MINING LEASES

Power

of Central Government to make rules in respect of minerals

13.

(1)The Central Government may, by notification in the Official Gazette, make

rules for regulating the grant of [reconnaissance permits, prospecting licences

and mining leases] in respect of minerals and for purposes connected therewith.

(2)

In particular, and without prejudice to the generality of the foregoing power,

such rules may provide for all or any of the following matters namely:-

the person by whom, and the manner in which, applications for [reconnaissance

permits, prospecting licences or mining leases] in respect of land in which the

minerals vest in the Government may be made and the fees to be paid therefor;

the time within which, and the form in which, acknowledgement of the receipt of

any such application may be sent;

the matters which may be considered where applications in respect of the same land

are received on the same day;

omitted;

the authority by which [reconnaissance permits, prospecting licences or mining

leases] in respect of land in which the minerals vest in the Government may be

granted;

the procedure for obtaining [a reconnaissance permits, a prospecting licence or

a mining lease] in respect of any land in which the minerals vest in a person

other than the Government and the terms on which, and the conditions subject to

which, such [a permit, licence or lease] may be granted or renewed;

the terms on which, and the conditions subject to which, any other

[reconnaissance permit, prospecting licence or mining lease] may be granted or

renewed;

the facilities to be afforded by holders of mining leases to persons deputed by

the Government for the purpose of undertaking research or training in matters

relating to mining operations;

the fixing and collection of fees for [reconnaissance permits, prospecting

licences or mining leases], surface rent, security deposit, fines, other fees

or charges and the time within which and the manner in which the dead rent or

royalty shall be payable;

the manner in which rights of third parties may be protected (whether by

payment of compensation or otherwise) in cases where any such party may be

prejudicially affected by reason of any [reconnaissance, prospecting or mining

operations];

the grouping of associated minerals for the purposes of section 6;

the manner in which, and the conditions subject to which, [a reconnaissance

permit, a prospecting licence or a mining lease] may be transferred;

the construction, maintenance and use of roads, power transmission lines,

tramways, railways, aerial ropeways, pipelines and the making of passages for

water for mining purposes on any land comprised in a mining lease; n. the form of registers to be maintained

under this Act;

omitted;

the reports and statements to be submitted by holders of [reconnaissance

permits or prospecting licences] or owners of mines and the authority to which

such reports and statements shall be submitted;

the period within which applications for revision of any order passed by a

State Government or other authority in exercise of any power conferred by or

under this Act, may be made the fees to be paid therefor and the documents

which shall accompany such applications and the manner in which such

applications shall be disposed of;

(qq) the manner in which rehabilitation of flora and other vegetation; such as

trees, shrubs and the like destroyed by reason of any prospecting or mining

operations shall be made in the same area or in any other area selected by the

Central government (whether by way of reimbursement of the cost of

rehabilitation or otherwise) by the person holding the prospecting licence or

mining lease; and

any other matter which is to be, or may be, prescribed under this Act.

Power

of Central Government to make rules for the grant of prospecting licences or
mining leases in respect of territorial waters or continental shelf of India.

13A

(1)The Central Government may, by notification in the Official Gazette, make

rules for the grant of prospecting licences or mining leases in respect of any

minerals underlying the ocean within the territorial waters or the continental

shelf of India.

(2)

Without prejudice to the generality of the foregoing power, such rules may

provide for all or any of the following matters, namely: -

the conditions, limitations and restrictions subject to which such prospecting

licences or mining leases may be granted;

regulation of exploration and exploitation of minerals within the territorial

waters or the continental shelf of India;

ensuring that such exploration or exploitation does not interfere with

navigation; and

any other matter which is required to be, or may be, prescribed.

[Sections

5 to 13] not to apply to minor minerals

14.

The provisions of sections 5 to 13 (inclusive) shall not apply to quarry

leases, mining leases or other mineral concessions in respect of minor

minerals.

Power

of State Governments to make rules in respect of minor minerals

15 (1)The State Government may, by

notification in the Official Gazette, make rules for regulating the grant of

quarry leases, mining leases or other mineral concessions in respect of minor minerals

and for purposes connected therewith. (1A) In particular and without prejudice

to the generality of the foregoing power, such rules may provide for all or any

of the following matters, namely:-

the person by whom and the manner in which, applications for quarry leases,

mining leases or other mineral concessions may be made and the fees to be paid

therefor;

the time within which, and the form in which, acknowledgement of the receipt of

any such applications may be sent;

the matters which may be considered where applications in respect of the same

land are received within the same day;

the terms on which, and the conditions subject to which and the authority by

which quarry leases, mining leases or other mineral concessions may be granted

or renewed;

the procedure for obtaining quarry leases, mining leases or other mineral

concessions;

the facilities to be afforded by holders of quarry leases, mining leases or

other mineral concessions to persons deputed by the Government for the purpose

of undertaking research or training in matters relating to mining

operations;

the fixing and collection of rent, royalty, fees, dead rent, fines or other

charges and the time within which and the manner in which these shall be

payable;

the manner in which the rights or third parties may be protected (whether by

way of payment or compensation or otherwise) in case where any such party is

prejudicially affected by reason of any prospecting or mining operations;

the manner in which the rehabilitation of flora and other vegetation, such as

trees, shrubs and the like destroyed by reasons of any quarrying or mining

operations shall be made in the same area or in any other area selected by the

State Government (whether by way of reimbursement of the cost of rehabilitation

or otherwise) by the person holding the quarrying or mining lease;

the manner in which and the conditions subject to which, a quarry lease, mining

lease or other mineral concessions may be transferred;

the construction, maintenance and use of roads, power transmission lines,

tramways, railways, aerial ropeways, pipelines and the making of passage for

water for mining purposes or any land comprised in a quarry or mining lease or

other mineral concessions;

the form of registers to be maintained under this Act;

the reports and statements to be submitted by holders of quarry or mining

leases or other mineral concessions and the authority to which such reports and

statements shall be submitted;

the period within which and the manner in which and the authority to which

applications for revision of any order passed by any authority under these

rules may be made, the fees to be paid therefore, and the powers of the

revisional authority; and

any other matter which is to be, or may be prescribed.

(2)

Until rules are made under sub-section (1), any rules made by a State

Government regulating the grant of quarry leases, mining leases or other

mineral concessions in respect of minor minerals which are in force immediately

before the commencement of this Act

shall continue in force.

(3)

The holder of a mining lease or any other mineral concession granted under any

rule made under subsection (1) shall pay royalty or dead rent, whichever is

more in respect of minor minerals removed or consumed by him or by his agent,

manager, employee, contractor or sub-lessee at the rate prescribed for the time

being in the rules framed by the State Government in respect of minor minerals.

Provided

that the State Government shall not enhance the rate of royalty or dead rent in

respect of any minor mineral for more than once during any period of three

years.

Power

to modify mining leases granted before 25th Oct., 1949

16.

(1) (a) All mining leases granted before the commencement of the Mines and

Minerals (Regulation and Development) Amendment Act, 1972 [if in force at the

date of commencement of the Mines and Minerals (Regulation and Development)

Amendment Act, 1994 shall be brought in conformity with the provision of this

Act, and the rules made thereunder within two years from the date of

commencement of the Mines and Minerals (Regulation and Development) Amendment

Act, 1994], or such further time as the Central Government may, by general or

special order, specify in this behalf.

(b)

Where the rights under any mining lease, granted by the proprietor of an estate

or tenure before the commencement of the Mines and Minerals (Regulation and

Development) Amendment Act, 1972, have vested, on or after the 25th day

of October, 1949, in the State Government in pursuance of the provisions of any

Act of any provincial or State Legislature which provides for the acquisition

of estates or tenures or provides for agrarian reform, such mining lease shall be

brought into conformity with the provisions of this Act and the rules made

thereunder within [two years from the commencement of the Mines and Minerals

(Regulation and Development) Amendment Act, 1994] , or within such further time

as the Central Government may, by general or special order, specify in this

behalf.

[(1A)Where

any action is taken under clause (a) or clause (b) of sub-section (1) to bring

the period of any lease in conformity with the provisions of this Act and the

rules made thereunder, then notwithstanding anything contained in section 8,

the period of such lease shall continue to operate for a period of two years

from the date of bringing such lease in conformity with the provisions of this

Act.]

(2)

The Central Government may, by notification in the Official Gazette, make rules

for the purpose of giving effect to the provisions of sub-section (1) and in

particular such rules shall provide-

for giving previous notice of the modification or alteration proposed to be

made in any existing mining lease to the lessee and where the lessor is not the

Central Government, also to the lessor and for affording him an opportunity of

showing cause against the proposal;

for the payment of compensation to the lessee in respect of the reduction of

any area covered by the existing mining lease; and c. for the principles on which the manner in

which, and the authority by which, the said compensation shall be

determined.

SPECIAL POWERS OF CENTRAL GOVERNMENT TO

UNDERTAKE RECONNAISSANCE, PROSPECTING OR MINING OPERATIONS IN CERTAIN CASES

Special

powers of Central Government to undertake reconnaissance, prospecting or mining
operations in certain lands

(1) The provisions of this section shall apply in respect of land in which the

minerals vest in the Government of a State or any other person.

(2)

Notwithstanding anything contained in this Act, the Central Government, after

consultation with the State Government, may undertake [reconnaissance,

prospecting or mining operations] in any area not already held under any

[reconnaissance permit, prospecting licence or mining lease], and where it

proposes to do so, it shall, by notification in the Official Gazette-

specify the boundaries of such area;

state whether [reconnaissance, prospecting or mining operations] will be

carried out in the area; and

specify the mineral or minerals in respect of which such operations will be carried

out.

(3)

Where, in exercise of the powers conferred by sub-section (2), the Central

Government undertakes

[reconnaissance, prospecting or mining operations] in any area, the Central

Government shall be liable to pay [reconnaissance permit fee or prospecting

fee], royalty, surface rent or dead rent, as the case may be, at the same rate

at which it would have been payable under this Act, if such [reconnaissance,

prospecting or mining operations] had been undertaken by a private person under

a [reconnaissance permit, prospecting licence or mining lease].

(4)

The Central Government, with a view to enabling it to exercise the powers

conferred on it by sub-section (2) may, after consultation with the State

Government, by notification in the Official Gazette, declare that no

[reconnaissance permit, prospecting licence or mining lease] shall be granted

in respect of any land specified in the notification.

Reservation

of areas for purposes of conservation

17A

(1)The Central Government, with a view to conserving any mineral and after

consultation with the State Government, may reserve any area not already held

under any prospecting licence or mining lease and where it proposes to do so,

it shall, by notification in the Official Gazette, specify the boundaries of

such area and the mineral or minerals in respect of which such area will be

reserved.

[(1A)

The Central Government may in consultation with State Government, reserve any

area not already held under any prospecting licence or mining lease, for

undertaking prospecting or mining operations through a Government company or

corporation owned or controlled by it, and where it proposes to do so, it

shall, by notification in the Official Gazette, specify the boundaries of such

area and the mineral or minerals in respect of which such area will be

reserved.]

(2)

The State Government may, with approval of Central Government, reserve any area

not already held under any prospecting licence or mining lease, for undertaking

prospecting or mining operations through a Government company or corporation

owned or controlled by it [ ] and where it proposes to do so, it shall, by notification

in the Official Gazette, specify the boundaries of such area and the mineral or

minerals in respect of which such areas will be reserved.

(3)

[Where in exercise of the powers conferred by sub-section(1A) or sub-section(2)

the Central Government or the State Government as the case may be] undertakes

prospecting or mining operations in any area in which the minerals vest in a

private person, it shall be liable, to pay prospecting fee, royalty, surface

rent or dead rent, as the case may be, from time to time at the same rate at

which it would have been payable under this Act if such prospecting or mining

operations had been undertaken by a private person under prospecting licence or

mining lease.

DEVELOPMENT

OF MINERALS

Mineral

Development

(1) It shall be the duty of the Central Government to take all such steps as

may be necessary for the conservation and systematic development of minerals in

India and for the protection of environment by preventing or controlling any

pollution which may be caused by prospecting or mining operations and for such

purposes the Central Government may, by notification in the Official Gazette,

make such rules as it thinks fit.

(2)

In particular, and without prejudice to the generality of the foregoing power,

such rules may provide for all or any of the following matters, namely :

the opening of new mines and the regulation of mining operations in any

area;

the regulation of the excavation or collection of minerals from any mine;

the measures to be taken by owners of mines for the purpose of beneficiation of

ores, including the provision of suitable contrivances for such purpose;

the development of mineral resources in any area;

the notification of all new borings and shaft sinkings and the preservation of

bore-hole records, and specimens of cores of all new bore-holes;

the regulation of the arrangements for the storage of minerals and the stocks

thereof that may be kept by any person;

the submission of samples of minerals from any mine by the owner thereof and

the manner in which and the authority to which such samples shall be submitted

; and the taking of samples of any minerals from any mine by the State

Government or any other authority specified by it in that behalf;

the submission by owners of mines of such special or periodical returns and

reports as may be specified, and the form in which and the authority to which

such returns and reports shall be submitted;

the regulation of prospecting operations;

the employment of qualified geologists or mining engineers to supervise

prospecting or mining operations;

the disposal or discharge of waste slime or tailings arising from any mining or

metallurgical operations carried out in a mine;

the manner in which and the authority by which directions may be issued to the

owners of any mine to do or refrain from doing certain things in the interest

of conservation or systematic development of minerals or for the protection of

environment by preventing or controlling pollution which may caused by

prospecting or mining operations;

the maintenance and submission of such plans, registers or records as may be

specified by the Government;

the submission of records or reports by persons carrying on prospecting or

mining operations regarding any research in mining or geology carried out by

them;

the facilities to be afforded by persons carrying out prospecting or mining

operations to persons authorised by the Central Government for the purpose of

undertaking research or training in matters relating to mining or geology;

the procedure for and the manner of imposition of fines for the contravention

of any of the rules framed under this section and the authority who may impose

such fines; and

the authority to which, the period within which, the form and the manner in

which applications for revision of any order passed by any authority under this

Act and the rules made thereunder may be made, the fee to paid and the

documents which should accompany such applications.

(3)

All rules made under this section shall be binding on the Government.

Power

to authorise Geological Survey of India, etc. to make investigation.

18A

(1)Where the Central Government is of opinion that for the conservation and

development of minerals in India, it is necessary to collect as precise

information as possible with regard to any mineral available in or under any

land in relation to which any prospecting licence or mining lease has been

granted, whether by the State Government or by any other person, the Central

Government may authorise the Geological Survey of India, or such other

authority or agency as it may specify in this behalf, to carry out such

detailed investigations for the purpose of obtaining such information as may be

necessary:

Provided

that in the cases of prospecting licences or mining leases granted by a State

Government, no such authorisation shall be made except after consultation with

the State Government.

(2)

On the issue of any authorisation under sub-section (1), it shall be lawful for

the Geological Survey of India or the specified authority or agency, and its

servants and workman –

to enter upon such land,

to dig or bore into the sub-soil,

to do all other acts necessary to determine the extent of any mineral available

in or under such land,

to set out boundaries of the land in which any mineral is expected to be

found,

to mark such boundaries and line by placing marks,

where otherwise the survey cannot be completed on the boundaries and line

marked, to cut down and clear away any part to any standing crop, fence or

jungle:

Provided

that no such authority or agency shall enter into any building or upon any

enclosed court or garden attached to a dwelling-house (except with the consent

of the occupier thereof) without previously giving such occupier at least seven

days’ notice in writing of its intention to do so.

(3)

Whenever any action of the nature specified in sub-section (2) is to be taken,

the Central Government shall, before or at the time when such action is taken,

pay or tender payment for all necessary damage which is likely to be caused,

and in case of dispute as to the sufficiency of the amount so paid or tendered

or as to the person to whom it should be paid or tendered, the Central

Government shall refer the dispute to the principal civil court of original

jurisdiction having jurisdiction over the land in question.

(4)

The fact that here exists any such dispute as is referred to in sub-section (3)

shall not be a bar to the taking of any action under sub-section (2).

(5)

After the completion of the investigation, the Geological Survey of India or

the specified authority or agency by which the investigation was made shall

submit to the Central Government a detailed report indicating therein the

extent and nature of any mineral which lies deposited in or under the land.

(6)

The costs of the investigation made under this section shall be borne by the

Central Government.

Provided

that where the State Government or other person in whom the minerals are vested

or the holder of any prospecting licence or mining lease applies to the Central

Government to furnish to it or him a copy of the report submitted under

sub-section

(5),

that State Government or other person or the holder of a prospecting licence or

mining lease, as the case may be, shall bear such reasonable part of the costs

of investigation as the Central Government may specify in this behalf and

shall, on payment of such part of the costs of nvestigations, be entitled to

receive from the Central Government a true copy of the report submitted to it

under sub-section (5).

MISCELLANEOUS

Reconnaissance permits, prospecting licences

and mining leases to be void if in contravention of Act

19.

Any [reconnaissance permit, prospecting licence or mining lease] granted,

renewed or acquired in contravention of the provisions of this Act or any rules

or orders made thereunder shall be void and of no effect.

Explanation:-

Where a person has acquired more than one [reconnaissance permit, prospecting

licence or mining lease] [ ] and the aggregate area covered by such [permits,

licences or leases], as the case may be, exceeds the maximum area permissible

under section 6, only that [reconnaissance permit, prospecting licence or

mining lease] the acquisition of which has resulted in such maximum area being

exceeded shall be deemed to be void.

Act

and rules to apply to all renewals of prospecting licences and mining leases

20.

The provisions of this Act and rules made thereunder shall apply in relation to

the renewal after the commencement of this Act of any prospecting licence or

mining lease granted before such commencement as they apply in relation to the

renewal of a prospecting licence or mining lease granted after such

commencement.

Penalties

[(1) Whoever contravenes the provisions of sub-section (1) or sub-section (1A)

of section 4 shall be punished with imprisonment for a term which may extend to

two years, or with fine which may extend to twenty-five thousand rupees, or

with both.]

(2)

Any rule made under any provision of this Act any provide that any

contravention thereof shall be punishable with imprisonment for a term which

may extend to one year or with fine which may extend to five thousand rupees,

or with both, and in the case of continuing contravention, with an additional

fine which may extend to five hundred rupees for every day during which such contravention

continues after conviction for the first such contravention.

(3)

Where any person trespasses into any land in contravention of the provisions of

sub-section (1) of section 4, such trespasser may be served with an order of

eviction by the State Government or any authority authorised in this behalf by

that Government and the State Government or such authorised authority may, if

necessary, obtain the help of the police to evict the trespasser from the land.

[(4)

Whenever any person raises, transports or causes to be raised or transported,

without any lawful authority, any mineral from any land, and, for that purpose,

uses any tool, equipment, vehicle or any other thing, such mineral, tool,

equipment, vehicle or any other thing shall be liable to be seized by an

officer or authority specially empowered in this behalf.

(4A)

Any mineral, tool, equipment, vehicle or any other thing seized under

subsection (4), shall be liable to be confiscated by an order of the court

competent to take cognizance of the offence under sub-section (1) and shall be

disposed of in accordance with the directions of such court.]

(5)

Whenever any person raises, without any lawful authority, any mineral from any

land, the State Government may recover from such person the mineral so raised,

or, where such mineral has already been disposed of the price thereof, and may

also recover from such person, rent, royalty or tax, as the case may be, for

the period during which the land was occupied by such person without any lawful

authority.

(6)

Notwithstanding anything contained in the Code of Criminal procedure, 1973, an

offence under sub-section(1) shall be cognizable.

Cognizance

of offences

22.

No court shall take cognizance of any offence punishable under this Act or any

rules made thereunder except upon complaint in writing made by a person

authorised in this behalf by the Central Government or the State Government.

Offences

by companies

(1) If the person committing an offence under this Act or any rules made thereunder

is a company, every person who at the time the offence was committed was in

charge of, and was responsible to the company for the conduct of the business

of the company, shall be deemed to be guilty of the offence and shall be liable

to be proceeded against and punished accordingly:

Provided

that nothing contained in this sub-section shall render any such person liable

to any punishment, if he proves that the offence was committed without his

knowledge or that he exercised all due diligence to prevent the commission of

such offence.

(2)

Notwithstanding anything contained in sub-section (1), where an offence under

this Act has been committed with the consent or connivance of any director,

manager, secretary or other officer of the company, such director, manager,

secretary or other officer shall be deemed to be guilty of that offence and

shall be liable to be proceeded against and punished accordingly.

Explanation

– For the purposes of this section.

(a)

"company" means any body corporate and includes a firm or other

association of individuals;

(b)

"director" in relation to a firm means a partner in the firm.

Compounding

of offences

23A

(1) Any offence punishable under this Act or any rule made thereunder may,

either before or after the institution of the prosecution, be compounded by the

person authorised under section 22 to make a complaint to the court with

respect to that offence, on payment to that person, for credit to the

Government, of such sum as that person may specify:

Provided

that in the case of an offence punishable with fine only, no such sum shall

exceed the maximum amount of fine which may be imposed for that offence.

(2)

Where an offence is compounded under sub-section (1), no proceeding or further proceeding

, as the case may be, shall be taken against the offender in respect of the

offence so compounded, and the offender, if in custody, shall be released

forthwith.

[23B

Power to search

any gazetted officer of the Central or a State Government authorised by the

Central Government [or a State Government, as the case may be] in this behalf

by general or special order has reason to believe that any mineral has been

raised in contravention of the provisions of this Act or rules made thereunder

or any document or thing in relation to such mineral is secreted in any place

[or vehicle], he may search for such mineral, document or thing and the

provisions of section 100 of the Code of Criminal procedure, 1973 shall apply

to every such search.]

[23C

(1) The State Government may, by notification in the Official Gazette, make

rules for preventing illegal mining, transportation and storage of minerals and

for the purposes connected therewith.

(2)

In particular and without prejudice to the generality of the foregoing power,

such rules may provide for all or any of the following matters, namely:-

establishment of check-posts for checking of minerals under transit;

establishment of weigh-bridges to measure the quantity of mineral being transported;

regulation of mineral being transported from the area granted under a

prospecting licence or a mining lease or a quarrying licence or a permit, in

whatever name the permission to excavate minerals, has been given;

inspection, checking and search of minerals at the place of excavation or

storage or during transit;

maintenance of registers and forms for the purposes of these rules;

the period within which and the authority to which applications for revision of

any order passed by any authority be preferred under any rule made under this

section and the fees to be paid therefor and powers of such authority for

disposing of such applications; and

any other matter which is required to be, or may be, prescribed for the purpose

of prevention of illegal mining, transportation and storage of minerals.

(3)

Notwithstanding anything contained in section 30, the Central Government shall

have no power to revise any order passed by a State Government or any of its

authorised officers or any authority under the rules made under sub-sections

(1) and (2).]

Power

of entry and inspection

(1) For the purpose of ascertaining the position of the working, actual or

prospective, of any mine or abandoned mine or for any other purpose connected

with this Act or the rules made thereunder, any person authorised by the

[Central Government or a State Government] in this behalf, by general [ ]

order, may-

(a)

enter and inspect any mine;

(b)

survey and take measurements in any such mine;

(c)

weigh, measure or take measurements of the stocks of minerals lying at any

mine;

(d)

examine any document, book, register, or record in the possession or power of

any person having the control of, or connected with, any mine and place marks

of identification thereon, and take extracts from or make copies of such

document, book, register or record;

(e)

order the production of any such document, book, register, record, as is

referred to in clause (d); and

(f)

examine any person having the control of, or connected with, any mine.

(2)

Every person authorised by the [Central Government or a State Government] under

sub-section (1) shall be deemed to be a public servant within the meaning of

section 21 of the Indian Penal Code, and every person to whom an order or summons

is issued by virtue of the power conferred by clause (c) or clause (f) of that

subsection shall be legally bound to comply with such order or summons, as the

case may be.

Rights

and liabilities of a holder of reconnaissance permit, prospecting licence or
mining lease

24A

(1) On the issue of a [reconnaissance permit, prospecting licence or mining

lease] under this Act and the rules made thereunder, it shall be lawful for the

[holder of such permit, licence or lease], his agents or his servants or workmen

to enter the lands over which [such permit, lease or licence had been granted]

alt all times during its currency and carry out all such [reconnaissance,

prospecting or mining operations] as may be prescribed:

Provided

that no person shall enter into any building or upon an enclosed court or

garden attached to a dwelling-house(except with the consent of the occupier

thereof) without previously giving such occupier at least seven days notice in

writing of his intention to do so.

(2)

The holder of a [reconnaissance permit, prospecting licence or mining lease]

referred to in sub-section (1) shall be liable to pay compensation in such

manner as may be prescribed to the occupier of the surface of the land granted

under [such permit, licence or lease] for any loss or damage which is likely to

arise or has arisen from or in consequence of the [reconnaissance, mining or

prospecting operations].

(3)

The amount of compensation payable under sub-section(2) shall be determined by

the State Government in the manner prescribed.

Recovery

of certain sums as arrears of land revenue.

(1) Any rent, royalty, tax, fee or other sum due to the Government under this

Act or the rules made thereunder or under the terms and conditions of any

[reconnaissance permit, prospecting licence or mining lease] may, on a

certificate of such officer as may be specified by the State Government in this

behalf by general or special order, be recovered in the same manner as an

arrear of land revenue.

(2)

Any rent, royalty, tax, fee or other sum due to the Government either under

this Act or any rule made thereunder or under the terms and conditions of any

[reconnaissance permit, prospecting licence or mining lease] may, on a

certificate of such officer as may be specified by the State Government in this

behalf by general or special order, be recovered in the same manner as if it

were an arrear of land revenue and every such sum which becomes due to the

Government after the commencement of the Mines and Minerals (Regulation and

Development) Amendment Act, 1972, together with the interest due thereon shall

be a first charge on the assets of the holder of the [reconnaissance permit,

prospecting licence or mining lease], as the case may be.

Delegation

of powers

(1) The Central Government may, by notification in the official Gazette, direct

that any power exercisable by it under this Act may, in relation to such

matters and subject to such conditions, if any, as may be specified in the

notification be exercisable also by –

(a)

Such officer or authority subordinate to the Central Government; or

(b)

Such State Government or such officer or authority subordinate to a State

Government; as may be specified in the notification.

(2)

The State Government may, by notification in the Official Gazette, direct that

any power exercisable by it under this Act may, in relation to such matters and

subject to such conditions, if any, as may be specified in the notification, be

exercisable also by such officer or authority subordinate to the State

Government as may be specified in the notification.

(3)

Any rules made by the Central Government under this Act may confer powers and

impose duties or authorise the conferring of powers and imposition of duties

upon any

State

Government or any officer or authority subordinate thereto.Protection of action
taken in good faith

27.

No suit, prosecution or other legal proceedings shall lie against any person

for anything which is in good faith done or intended to be done under this Act.

Rules

and notifications to be laid before Parliament and certain rules to be approved
by Parliament

(1) Every rule and every notification made by the Central Government under this

Act shall be laid, as soon as may be after it is made, before each house of

Parliament while it is in session for a total period of thirty days which may

be comprised in one session or in two or more successive sessions, and if,

before the expiry of the session immediately following the session or the

successive sessions aforesaid, both houses agree in making any modification in

the rule or notification or both houses agree that the rule or notification

should not be made, the rule or notification shall thereafter have effect only

in such modified from or be of no effect, as the case may be; so, however, that

any such modification or annulment shall be without prejudice to the validity

of anything previously done under that rule or notification.

(2)

Without prejudice to the generality of rule making power vested in the Central

Government, no rules made with reference to clause (c) of sub-section (2) of

section 16 shall come into force until they have been approved, whether with or

without modifications, by each House of Parliament.

[(3)

Every rule and every notification made by the State Government under this Act

shall be laid, as soon as may be after it is made, before each House of the

State Legislature where it consists of two Houses, or where such Legislature

consists one House, before that House.]

Existing

rules to continue

All rules made or purporting to have been made under the Mines and Minerals

(Regulation and Development) Act, 1948, shall, in so far as they relate to

matters for which provision is made in this Act and are not inconsistent

therewith, be deemed to have been made under this Act as if this Act had been

in force on the date on which such rules were made and shall continue in force

unless and until they are superseded by any rules made under this Act.

Power

of revision of Central Government

The Central Government may, of its own motion or on application made within the

prescribed time by an aggrieved party, revise any order made by a State

Government or other authority in exercise of the powers conferred on it by or

under this Act [with respect to any mineral other than a minor mineral.]

Special

provisions relating to mining leases for coal granted before 25th October,
1949

30A

Notwithstanding anything contained in this Act, the provisions of sub-section

(1) of section 9 and sub-section (1) of section 16 shall not apply to or in

relation to mining leases granted before the 25th day of October, 1949, in

respect of coal, but the Central Government, if it is satisfied that it is

expedient so to do, may be, by notification in the Official Gazette, direct

that all or any of the said provisions (including any rules made under sections

13 and 18) shall apply to or in relation to such leases subject to such

exceptions and modifications, if any, as may be specified in that or in any

subsequent notification.

Relaxation

of rules in special cases

31.

The Central Government may, if it is of opinion that in the interests of

mineral development it is necessary so to do, by order in writing and for

reasons to be recorded, authorise in any case the grant, renewal or transfer of

any [reconnaissance permit, prospecting licence or mining lease], or the

working of any mine for the purpose of searching for or winning any mineral, on

terms and conditions different from those laid down in the rules made under

section 13.

32. [Amendments to Act 53 of 1948] Rep.

By the Repealing and Amending Act, 1960 (58 of 1960 ), S. 2 and Sch. I.

Validation

of certain acts and indemnity

33.

All acts of executive authority done, proceedings taken and sentences passed

under the Mines and Minerals (Regulation and Development) Act, 1948, with

respect to the regulation of mines and the development of minerals during the

period commencing on the 26th day of January, 1950, and ending with the date of

commencement of this Act by the Government or by any officer of the Government

or by any other authority, in the belief or purported belief that the acts,

proceedings of sentences were being done, taken or passed under the said Act,

shall be as valid and operative as if they had been done, taken or passed in

accordance with law, and no suit or other legal proceeding shall be maintained

or continued against any person whatsoever, on the ground that any such acts,

proceedings or sentences were not done, taken or passed in accordance with

law.

“THE

FIRST SCHEDULE”

[See

sections 4(3), 5(1), 7(2) and 8(2)]

SPECIFIED

MINERALS

PART

A. Hydro Carbons Energy Minerals

Coal and Lignite.

PART

B. Atomic Minerals

Beryl and other beryllium-bearing minerals.

Lithium-bearing minerals.

Minerals of the "rare earths" group containing Uranium and

Thorium.

Niobium-bearing minerals.

Phosphorites and other phosphatic ores containing Uranium.

Pitchblende and other Uranium ores.

[Titanium bearing minerals and ores (ilmenite, rutile and leucoxene)].

Tantallium-bearing minerals.

Uraniferous allanite, monazite and other thorium minerals.

10.

Uranium bearing tailings left over from ores after extraction of copper and

gold, ilmenite and other titanium ores.

11.

[Zirconium bearing minerals and ores including Zircon].

PART

C. Metallic and Non-Metallic Minerals

Asbestos.

Bauxite.

Chrome ore.

Copper ore.

Gold.

Iron ore.

Lead.

[ ]

Manganese ore.

10.

Precious stones.

11.

Zinc.

New

Delhi, the 14th October, 2004

G.S.R..677(E).-

In exercise of the powers conferred by sub-section (3) of section 9 of the

Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the

Central Government hereby makes with immediate effect, the following further

amendments to the Second Schedule to the said Act, namely :- In the Mines and Minerals

(Development and Regulation) Act, 1957, for the Second Schedule, the following

Schedule shall be substituted, namely:-

“THE

SECOND SCHEDULE”

(See

section 9)

RATES

OF ROYALTY IN RESPECT OF MINERALS AT ITEM 1 TO 10 , 12 TO 38 AND 40 TO 51
APPLICABLE IN ALL STATES AND UNION TERRITORIES EXCEPT THE STATE OF WEST
BENGAL.

Agate Ten percent of sale price on ad

valorem basis.

Apatite and Rock Phosphate

(

i ) Apatite

(ii)

Rock Phosphate

(a)

above 25 per cent P2O5

(b)

upto 25 per cent P2O5

Five

percent of sale price on ad valorem

basis.

Eleven

per cent of sale price on ad valorem

basis .

Five

per cent of sale price on ad valorem

basis .

Asbestos

(a)

Chrysotile

(b) Amphibole

Eight

hundred rupees per tonne.

Forty

five rupees per tonne.

Barytes Five and half per cent of sale price

on ad valorem basis.

Bauxite and Laterite (a) Zero point

four zero percent of London Metal

Exchange Aluminium metal price chargeable on the contained aluminium

metal in ore produced for those

despatched for use in alumina and aluminium metal extraction.

(b)

Twenty percent of sale price on ad

valorem basis for those despatched

for use other than alumina and aluminium metal

extraction and for export

Brown Ilmenite (Leucoxene), Ilmenite,Rutile and Zircon

Two

per cent of sale price on ad valorem

basis.

Cadmium Ten per cent of sale price on ad

valorem basis.

Calcite Fifteen per cent of sale price

on ad valorem basis.

China clay/Kaolin : (including ball clay, white shale and white clay)

(a)

Crude

(b)

Processed (including washed)

Twenty

three rupees per tonne.

Eighty

five rupees per tonne.

10.

Chromite Seven and half per cent of sale price

on ad valorem basis.

11.

Coal (including Lignite) *

12.

Copper Three point two per cent of

London Metal Exchange Copper metal price chargeable on the contained copper

metal in ore produced.

13. Corundum

Ten per cent of sale price on ad

valorem basis.

14. Diamond

Ten per cent of sale price on ad

valorem basis.

15.Dolomite Forty five rupees per tonne.

16.

Felspar Ten per cent of sale price on ad valorem basis.

17.

Fire Clay Including plastic, pipe,

lithomargic and natural pozzolanic clay)

Twelve

per cent of sale price on ad valorem

basis.

18.

Fluorspar (also called fluorite)

Five

per cent of sale price on ad valorem

basis.

19.

Garnet :

(a)

Abrasive

(b)

Gem

Three

per cent of sale price on ad valorem

basis.

Ten

per cent of sale price on ad valorem

basis.

20.

Gold :

(a) Primary

(b)

By-product gold

One

and half per cent of London Bullion Market

Association Price(commonly

referred to as "London

Price") chargeable on the contained

gold metal in ore produced.

Two

and half per cent of London Bullion

Market Association Price( commonly referred to

as "London Price")

chargeable on the by product gold metal actually produced.

21.

Graphite

(a)

with 80 per cent or more fixed carbon

(b) with 40 per cent or more fixed carbon but less than 80

percent fixed carbon

Two

hundred and twenty five rupees per tonne

One

hundred and thirty rupees per tonne

Fifty

rupees per tonne.

22.

Gypsum Twenty per cent of sale price on

ad valorem basis.

23.

Iron ore:

(i)

Lumps:

(a)with 65 percent Fe content or more

Twenty

seven rupees per tonne

(

b) with 62 percent Fe content or more but less than 65 per cent Fe content

Sixteen

rupees per tonne.

(c)

with less than 62 per cent Fe content

Eleven rupees per tonne.

(ii)

Fines:

(a)

With 65 per cent Fe content or more

Nineteen rupees per tonne .

(b)

With 62 per cent Fe content or more but less than 65 per cent Fe content

Eleven rupees per tonne.

(c)

with less than 62 per cent Fe content

Eight rupees per tonne .

(iii)

Concentrates prepared by beneficiation and/or concentration of low grade ore

containing 40 per cent Fe or less

Four rupees per tonne.

24.

Kyanite Ten per cent of sale price on ad

valorem basis.

25.

Lead

Five

per cent of London Metal Exchange lead metal price chargeable on the contained

lead metal in ore produced

26.

Limestone

(a)

L.D. Grade (less than one and half per cent silica content)

Fifty

five rupees per tonne.

(b)

Others Forty five rupees per tonne

27.

Lime Kankar Forty five rupees per tonne.

28.

Limeshell Forty five rupees per tonne.

29.

Magnesite Three per cent of sale price

on ad valorem basis.

30.

Manganese Ore

(a)

Ore of all grades Three per cent of sale price

on ad valorem basis.

(b)

Concentrates One per cent of sale price

on ad valorem basis.

31.

Crude Mica, Waste Mica and Scrap Mica

Four

per cent of sale price on ad valorem

basis.

32.

Monazite One hundred and twenty five rupees per tonne.

33.

Nickel

Zero

point one two percent of London Metal Exchange nickel metal price chargeable on

contained nickel metal in ore produced.

34.

Ochre Fifteen rupees per tonne.

35.

Pyrites Two per cent of sale price on ad

valorem basis.

36.

Pyrophyllite Fifteen per cent of sale price

on ad valorem basis

37.

Quartz, Silica sand, Moulding sand and Quartzite

Twenty rupees per tonne.

38.

Ruby Ten per cent of sale price on ad

valorem basis.

39.

Sand for stowing **

40.

Selenite Ten per cent of sale price on

ad valorem basis.

41.

Sillimanite Two and half per cent of sale price

on ad valorem basis.

42.

Silver : a) By -product

Five

per cent of London Metal Exchange Price

chargeable on by product silver metal

actually produced.

(b)

Primary silver

Five

per cent of London Metal Exchange silver metal price chargeable

on the contained silver metal in ore

produced.

43.

Slate Forty five rupees per tonne.

44.

Talc, Steatite and Soapstone

Fifteen

per cent of sale price on ad valorem

basis.

45.

Tin

Five

per cent of London Metal Exchange tin metal price chargeable on the contained

tin metal in ore produced.

46.

Tungsten

Twenty

rupees per unit per cent of contained WO3 per tonne of ore and on pro rata

basis.

47.

Uranium

Five

rupees (for dry ore with U3O8 content of zero point zero five per cent with pro rata increase/ decrease at

the rate of one rupee and fifty

paise per metric tonne of ore for zero

point zero one per cent increase/decrease ).

48.

Vermiculite Three per cent of sale price

on ad valorem basis.

49.

Wollastonite Ten per cent of sale price

on ad valorem basis.

50.

Zinc

Six

point six per cent of London Metal Exchange zinc metal price on ad

valorem basis chargeable on contained

zinc metal in ore produced.

51.

All other minerals not here-in-before specified[Clay (Others), Chalk, Diaspore,

Dunite, Felsite, Fuschite, Quartzite, Jasper, Perlite,Rock Salt, Shale,

Pyroxenite, etc.]

Ten

per cent of sale price on ad valorem

basis.

* Rates of royalty in respect of item No. 11 relating to Coal including Lignite as revised vide notification number G.S.R.

572 (E), dated the 16th August, 2002, of the

Government of India in the Department of Coal shall remain in force until revised through a separate notification by the Department

of Coal.

Rates of royalty in respect of item No.39 relating to Sand For Stowing as

revised vide notification number G.S.R. 214(E), dated the 11th April, 1997, will remain in force until revised through a

separate notification by the Department of Coal.

Note

: The rates of royalty for the State of

West Bengal in respect of the

minerals except the mineral specified against item No.11 shall remain the same

as specified in the notification of the Government of India in the Ministry of

Steel and Mines (Department of Mines) number G.S.R. 458 (E), dated the 5th

May,1987.”.

(F. No. 3/1/2002-MVI)

(PRASHANT MEHTA)

JOINT

SECRETARY TO GOVERNMENT OF INDIA

Note :

The Second Schedule to the Mines and Minerals (Development and

Regulation)Act, 1957 was amended earlier vide notification numbers.:-

GSR No. 175(E) dated 31st March, 1975

GSR No. 407(E) dated 14th July, 1975.

GSR No. 584(E) dated 13th December, 1975.

GSR No. 321(E) dated 12th June, 1978.

GSR No. 2(E) dated 1st January, 1979.

GSR No. 67(E) dated 13th February, 1979.

GSR No. 63(E) dated 12th February, 1981.

GSR No. 449(E) dated 23rd July, 1981.

GSR No. 458(E) dated 5th May, 1987.

10.

GSR No. 856(E) dated 14th October, 1987.

11.

GSR No. 516(E) dated 1st August, 1991.

12.

GSR No. 100(E) dated 17th February, 1992.

13.

GSR No. 748(E) dated 11th October, 1994.

14.

GSR No. 27(E) dated 13th January, 1995.

15.

GSR No. 214(E) dated 11th April, 1997.

16.

GSR No. 713(E) dated 12th September 2000.

17.

GSR No. 187(E) dated 15th March,

2001.

18.

GSR.No.572(E) dated 16th August,

2002.

New

Delhi, the 14th October, 2004

G.S.R.678(E).-

In exercise of the powers conferred by sub-section (2) of section 9A of the

Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the

Central Government hereby makes with immediate effect, the following amendments to the Third Schedule to the

said Act, namely :- In the Mines and

Minerals (Development and Regulation) Act, 1957, for the Third Schedule, the

following Schedule shall be substituted, namely:-

“THE

THIRD SCHEDULE”

(See

section 9A)

RATES

OF DEAD RENT

(APPLICABLE

FOR ALL STATES AND UNION TERRITORIES EXCEPT THE STATE OF WEST BENGAL)

1. Rate of dead rent applicable to the leases granted

for low value minerals are as

under:

Rates of Dead Rent in Rupees per Hectare Per annum

First two years of

lease 3rd year onwards

100/- 400/-

2. Two times the rate specified under (1) above

in case of lease granted for medium

value mineral(s).

Three times the rates specified under (1) above in case of lease granted for

high value mineral(s).

Four times the rates specified under (1)

above in case of lease granted for precious metals and stones.

Note: 1. For the purpose of this notification,-

(a) "precious metals and stones" means gold, silver, diamond, ruby, sapphire and emerald, alexandrite and opal;+

(b).

"high value minerals" means

semi-precious stones (agate, gem

garnet), corundum, copper, lead, zinc, asbestos (chrysotile variety) and

mica;

(c).

”medium value minerals" means chromite, manganese ore, kyanite,

sillimanite, vermiculite,

magnesite, wollastonite, perlite,

diaspore, apatite, rock phosphate, fluorite (fluorspar) and barytes ;

(d)

" low value minerals" means minerals other than precious metals and stones, high value minerals and

medium value minerals;

2. The rates of dead rent for the State of

West Bengal shall remain the same as

specified in the notification of the Government of India in the Ministry of

Steel and Mines (Department of Mines) No. G.S.R. 458(E), dated the 5th May,

1987.”

(F.

No. 3/1/2002-MVI)

(PRASHANT

MEHTA)

JOINT

SECRETARY TO THE GOVT. OF INDIA.

Note: The Third Schedule to the Mines and Minerals

(Development and Regulation) Act, 1957 was amended earlier, vide notification

numbers:-

1. GSR No. 458(E), dated 5th

May, 1987.

2. GSR No. 856(E), dated 14th

October, 1987.

3. GSR No. 214(E), dated 11th

April, 1997.

4. GSR No. 714(E), dated 12th September,

2000.

Sạntal

गुरुवार, 1 सितंबर 2011

MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

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गुरुवार, 1 सितंबर 2011

MINES AND MINERALS (DEVELOPMENT AND REGULATION) ACT, 1957

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