MINERAL
CONCESSION RULES, 1960
As
Amended upto 18.01.2000
G.S.R. 1398, dated the 11th November, 1960 –
In exercise of the powers conferred by section 13 of the Mines
and Minerals ( Regulation and Development ) Act, 1957 ( 67 of
1957 ), the Central Government hereby makes the following rules,
namely :-
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1. Short title. – These rules may be
called the Mineral Concession Rules, 1960.
2. Definitions – In these rules, unless
the context otherwise requires, -
(i) "Act" means the Mines and Minerals
[(Development and Regulation)] Act, 1957 (67 of 1957);
(ii) "Form" means a form set out
in schedule I to these rules;
(iii) "railway" and "railway
administration" have the meanings respectively assigned
to them in the Indian Railways Act, 1890 (9 of 1890);
(iv) "Schedule" means a schedule
appended to these rules.
(v) "section" means a section of
the Act.
3. Saving of Act 33 of 1962. – Nothing
in these rules shall affect the provisions of the Atomic Energy
Act, 1962 (33 of 1962) [and the rules made thereunder
in respect of licensing relating to atomic minerals listed in
Part B of the First Schedule to the Act.]
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Grant
of Reconnaissance Permits
4. Application for reconnaissance permit.
– (1) An application for reconnaissance permit shall
be made to the State Government in Form ‘A’ through such officer
or authority as the State Government may specify in this behalf.
(2) (a) Every such
application shall be accompanied by a non-refundable fee
calculated at the rate of five rupees per square kilometre
(b) a valid clearance certificate, in the
form prescribed by the State Government for payment of mining
dues, such as royalty or dead rent or surface rent payable
under the Act or rules made thereunder, from that Government
or any officer or authority authorised by that Government
in this behalf;
Provided that where a person has furnished
an affidavit to the satisfaction of the State Government
stating that he does not hold and has not held a reconnaissance
permit, it shall not be necessary for him to produce the
said valid clearance certificate:
Provided that an affidavit stating that
no dues are outstanding shall suffice subject to the condition
that the certificate required as above shall be furnished
within ninety days of the date of application and the
application shall become invalid if the party fails to
file the certificate within the said ninety days:
Provided also that where any injunction
has been issued by a court of law or any other competent
authority staying the recovery of any such mining dues
or income tax, non- payment thereof shall not be treated
as a disqualification for the purpose of granting the
reconnaissance permit:
Provided further that in case the applicant
is a partnership firm or a private limited company, such
certificate shall be furnished by all persons of the partnership
firm or, as the case may be, all members of the private
limited company.
(c) an affidavit stating that the applicant
has -
(i) filed up–to-date income-tax returns;
(ii) paid the income-tax assessed on
him; and
(iii) paid the income-tax on the basis of his assessment
as provided in the Income-Tax Act, 1961 (43 of 1961).
(d) an affidavit showing the particulars
of areas, mineral-wise in the State, which the applicant
or any person jointly with him -
(i) already holds under a reconnaissance
permit;
(ii) has applied for but not granted;
and
(iii) being applied for simultaneously.
4A. Acknowledgement of application. –
(1) Where an application for the grant of reconnaissance permit
is delivered personally, its receipt shall be acknowledged
forthwith.
(2) Where such application is received
by registered post, its receipt shall be acknowledged on
the same day.
(3) In any other case, the receipt of such
application shall be acknowledged within three days of the
receipt.
(4) The receipt of every such application
shall be acknowledged in Form ‘D-1’.
5. Refusal of application for a reconnaissance
permit. – (1) The State Government may after giving an
opportunity of being heard and for reasons to be recorded
in writing and communicated to the applicant, refuse to grant
a reconnaissance permit over the whole or part of the area
applied for.
(2) Where it appears that the application
is not complete in all material particulars or is not accompanied
by the required documents, the State Government shall, by
notice, require the applicant to supply the omission or, as
the case may be, furnish the documents without delay and in
any case not later than thirty days from the date of receipt
of the said notice by the applicant.
6. Status of grant on death of the applicant
for reconnaissance permit. – (1) Where an applicant for
the grant of a reconnaissance permit dies before the order granting
him a reconnaissance permit is passed, the application for the
grant of reconnaissance permit shall be deemed to have been
made by his legal representative.
(2) In the case of an applicant in respect of whom an order
granting a reconnaissance permit is passed but who dies
before the deed referred in sub rule(1) of rule 7A is executed,
the order shall be deemed to have been passed in the name
of the legal representative of the deceased.
7. Conditions of a reconnaissance permit.
– (1) Every reconnaissance permit granted under these
rules, shall, in addition to any other conditions that may
be specified therein be subject to the following conditions
namely,
(i) the holder of reconnaissance permit
shall progressively relinquish the area granted under
the permit as follows:-
(a) After completion of two years,
the area shall be reduced to one thousand square kilometres
or fifty per cent of the area granted, whichever is
less; and
(b) The area would be further relinquished
so that the permit holder is left with an area not more
than twenty five square kilometers at the end of the
third year.
(ii) The holder of the reconnaissance
permit shall strictly adhere to the minimum expenditure
commitment and specific physical targets specified in
the order of grant of the permit failing which reconnaissance
permit may be cancelled.
(iii) The holder of reconnaissance permit
shall make available all data collected by him during
the reconnaissance operations to the Geological Survey
of India, Indian Bureau of Mines and the State Government
which may be made available to any prospecting investor
after a minimum period of two years of the completion
of the period of reconnaissance permit.
(iv) The holder of reconnaissance permit
shall not enter any forest land or any private land without
obtaining permission of the Forest Department or the owner
of the private land, as the case may be.
(v) The holder of reconnaissance permit
shall maintain accurate faithful account of all the expenses
incurred by him on the reconnaissance operations.
(vi) The holder of reconnaissance permit
shall submit to the State Government a six monthly report
of the work done by him and the valuable data collected
by him during the period. The report shall be submitted
within three months of the close of the period to which
it relates.
(vii) The permit holder shall also submit
to the State Government within three months of the expiry
of the permit, or abandonment of the operations or termination
of the permit whichever is earlier, a full report of the
work done by him and all information relevant to mineral
resources acquired by him in the course of reconnaissance
permit in the area covered by the permit.
(viii) While submitting reports under
sub clause (vi) or (vii), the permit holder may specify
that the whole or any part of the report or data submitted
by him shall be kept confidential; and the State Government
shall thereupon, keep the specified portions as confidential
for a period of two years from the expiry of the permit,
or abandonment of operations or termination of the permit,
whichever is earlier.
(ix) The permit holder shall allow every
officer authorised by the Central Government or the State
Government in this behalf to examine at any time accounts
maintained and furnish to the Central Government or the
State Government or any other officer authorised by it
in that behalf such information and returns.
(x) The permit holder shall allow any officer
authorised by the Central Government or the State Government
in this behalf to inspect any reconnaissance operations
carried on by him.
(xi) The permit holder shall pay such permit fee as may
be fixed by the State Government, being not less than five
rupees per square kilometer and not more than twenty rupees
per square kilometer of land held by the permit holder for
each year or part thereof.
(2) The reconnaissance permit may contain
such other conditions as may be imposed by the Central Government
which inter-alia may include the condition that the representative
of the Directorate General, Civil Aviation or Ministry of
Defence shall be present during the aerial surveys.
(3) The State Government may, with the
approval of the Central Government, impose such further
conditions in the permit as it may think necessary in the
interest of mineral development and for compliance of various
legal provisions.
(4) In case of breach of any condition
imposed on any holder of reconnaissance permit by or under
this rule, the State Government may by order in writing,
cancel the permit, and/or forfeit in whole or in part, the
amount deposited by the permit holder as security:
Provided that no such order shall be made
without giving the permit holder a reasonable opportunity
of stating his case.
7A. Reconnaissance Permit to be executed
within three months. – (1) Where on any application for
a reconnaissance permit an order has been made for the grant
of such permit, a deed granting such permit shall be executed
within ninety days of the date of the communication of the
order or such further period as the State Government may allow
in this behalf, and if no such deed is executed within such
period due to any fault on the part of the applicant, the
State Government may revoke the order granting the reconnaissance
permit and in that event the fee paid shall be forfeited to
the State Government.
(2) The deed referred to in sub rule 1
shall be in Form F-1, or in a Form as near thereto as circumstances
of each case may require.
(3) The date of the commencement of the
period for which a reconnaissance permit is granted shall
be the date on which the deed is executed after all necessary
clearances have been obtained.
7B. Security deposit. –
(i) An applicant for a reconnaissance permit
shall, before deed referred to in sub rule (1) of rule 7A
is executed, deposit as security for the observance of the
terms and conditions of the permit a sum of twenty rupees
in respect of every square kilometre or part thereof for which
the permit is granted.
(ii) Any deposit made under sub clause (i)
above if not forfeited under the rules shall be refunded to
the applicant as soon as the report referred to in sub rule
(1)(vii) of rule 7 is submitted.
7C. Prospecting Licences and Mining Leases
of other minerals. –The applications received for grant
of prospecting licences or mining leases within the area granted
under reconnaissance permit for minerals other than those
for which the permit has been granted, shall not be refused
on the grounds that the area is not available for grant. The
State Government shall dispose of such applications as per
provisions of these rules.
Provided that if a prospecting licence or
a mining lease for other mineral has been granted to some
other applicant within the area granted for a reconnaissance
permit and where the reconnaissance permit holder discovers
availability of minerals covered under his permit within the
area so granted subsequently for prospecting or mining of
minerals other than those covered under the reconnaissance
permit, he shall have the right to get such areas vacated
from the licensee or the lessee, as the case may be and such
licensee or lessee shall not hinder the reconnaissance operations
being undertaken by the reconnaissance permit holder.
7D. Registers. – (1) A register of
applications for reconnaissance permits shall be maintained
by the State Government in Form G-1.
(2) A register of reconnaissance permit
shall be maintained by State Government in Form H-1.]
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[8. Applicability
of chapter II, chapter III and chapter IV. – The provisions
of chapter II, chapter III and chapter IV shall apply to the
grant of reconnaissance permits as well as grant and renewal
of prospecting licences and mining leases only in respect
of the land in which the minerals vest in the Government of
a State.]
9.
Application for prospecting licence and its renewal.
– (1) An application for prospecting licence and its renewal
in respect of land in which the minerals vest in Government
shall be made to the State Government in Form B and Form E
respectively through such officer or authority as the State
Government may specify in this behalf .
(2)
Every such application shall be accompanied by –
(a)
a [non-refundable] fee calculated in accordance with the provisions
of Schedule II ; and
(b)
(Omitted)
(c)
(Omitted)
(d)
a valid clearance certificate, in the form prescribed by the
State Government , of payment of mining dues, such as royalty
or dead rent and surface rent payable under the Act or the rules
made thereunder, from that Government or any officer or authority
by that Government in this behalf ;
Provided
[ ] that in case the applicant is a partnership firm or a private
limited company such certificates shall be furnished by all
partners of the partnership firm or, as the case may be, all
members of the private limited company.
[Provided
further that where any injunction has been issued by court of
law or any other competent authority staying the recovery of
any such mining dues or income tax, non payment thereof shall
not be treated as a disqualification for the purpose of granting
or renewing the said prospecting licence:
Provided
that where a person has furnished an affaidavit to the satisfaction
of the State Government stating that he does not hold and has
not held a prospecting licence, it shall not be necessary for
him to produce the said valid clearance certificate:
Provided
further that a sworn affidavit stating that no dues are outstanding
shall suffice subject to the condition that the certificate
required as above shall become invalid if the party fails to
file the certificate within the said ninety days.]
(e)
an affidavit stating that the applicant has –
(i)
filed up-to-date income tax returns;
(ii)
paid the income tax assessed on him ; and
(iii)
paid the income tax on the basis of self-assessment as provided
in the Income Tax Act ,1961;
(f) an affidavit
showing particulars of areas mineral-wise in [the] State,
which the applicant or any person jointly with him –
(i)
already holds under a prosecuting licence ;
(ii)
has applied for but not granted ; and
(iii)
being applied for simultaneously.
(g)
a statement in writing that the applicant, where the land is
not owned by him, has obtained surface rights over the area
or has obtained the consent of the owner for starting prospecting
operations :
Provided that no such statement
shall be necessary where the land is owned by the Government.
Provided [ ] that
the consent of the owner for starting prosecuting operations
in the area or part thereof may be furnished after execution
of the prosecuting licence but before entry into the said area.
[Provided
further that no further consent would be required in the case
of renewal where consent has already been obtained during grant
of the licence.]
(3)
The State Government may, for reasons to be recorded in writing,
relax the provisions of clause (d) of sub-rule (2) of rule 9.
(4)
The grant of clearance certificate under clause (d) of sub-rule
(2) of rule 9 shall not discharge the holder of such certificate
from the liability to pay the mining dues which may subsequently
be found to be payable by him under the Act or the rules made
thereunder.
10.
Acknowledgement of application. – (1) Where an application
for the grant or renewal of a prospecting licence is delivered
personally, its receipt shall be acknowledged forthwith.
(2)
Where such application is received by registered post, its receipt
shall be acknowledged on the same day.
(3)
In any other case, the receipt of such application shall be
acknowledged within three days of the receipt .
(4)
The receipt of every such application shall be acknowledged
in Form D.
10A.
(Omitted).
11.
Disposal of application for the grant and renewal of prospecting
licence. – (1) (Omitted)
(2)
(a) An application for the renewal of a prospecting licence
shall be made at least ninety days before the expiry of the
prospecting licence and shall be accompanied by –
(i)
a statement relating to the prospecting operations already undertaken
by the applicant;
(ii)
the amount of expenditure incurred;
(Iii)
the numbers of hours and days for which the work was undertaken;
and
(iv)
the period which is required to complete the prospecting work.
(b)
An application for the renewal for a prospecting licence shall
be disposed of by the State Government before the expiry of
the period of prospecting licence and if the application is
not disposed of within that period, the licence shall be deemed
to have been renewed for a period not exceeding the period prescribed
for renewal of prospecting licence under sub-section (2) of
section 7 of the Act, or the period for which an application
is made, whichever is less.
(3)
The State Government may, for reasons to be recorded in writing
and communicated to the applicant , at the time of renewal,
reduce the area applied for.
[(4)
The State Government may condone delay in submission of an application
for renewal of a prospecting licence made after the time limit
prescribed in sub-rule(2) provided the application for the renewal
has been made before the expiry of the licence.]
12.
Refusal of application for a prospecting licence. – (1)
The State Government may, after giving an opportunity of being
heard and for reasons to be recorded in writing and communicated
to the applicant, refuse to grant or renew a prospecting licence
over the whole or part of the area applied for.
(1A)
An application for the grant or renewal of a prospecting licence
made under rule 9 shall not be refused by the State Government
only on the ground that Form B or Form E, as the case may be,
is not complete in all material particulars, or is not accompanied
by the documents referred to in clauses (d),(e),(f) and (g)
of sub-rule (2) of the said rule.
(1B)
Where it appears that the application is not complete in all
material particulars or is not accompanied by the required documents,
the State Government shall, by notice, require the applicant
to supply the omission, or as the case may be, furnish the documents
without delay and in any case not later than thirty days from
the date of receipt of the said notice by the applicant.
(2)
An application for the grant of a prospecting licence shall
not be refused on the ground only that, in the opinion of the
State Government, a mining lease should be granted for the area
for which the application for a prospecting licence has been
made:
Provided
that where applications for the grant of prospecting licence
and applications for the grant of mining lease in respect of
the same area are received on the same date or on different
dates within a period of thirty days, the applications for the
grant of mining lease shall, if the area was previously held
and worked under a mining lease, be disposed of before the applications
for the grant of prospecting licence are considered.
[Provided
further that the applications received for grant of prospecting
licence shall be liable to be considered only if they have not
been already disposed of.]
13.
Refund of Fee. – [ ]
13
A. Status of grant on death of the applicant for prospecting
licence. – (1) Where an applicant for the grant of a prospecting
licence dies before the order granting him a prospecting licence
is passed, the applicant for the grant of a prospecting licence
shall be deemed to have been made by his legal representative.
(2)
In the case of an applicant in respect of whom an order granting
a prospecting licence is passed but who dies before the deed
referred to in sub-rule (1) of rule 15 is executed, the order
shall be deemed to have been passed in the name of the legal
representative of the deceased.
14.
Conditions of a prospecting licence. – (1) Every prospecting
licence granted under these rules, shall, in addition to any
other conditions that may be specified therein, be subject to
the following conditions, namely :
(i)
the licensee shall pay such prospecting fee as may be fixed
by the State Government, being not less than rupee one and not
more than rupees ten per
hectare of land covered by the licence for each year or part
of a year of the period for which the licence is granted or
renewed ;
(ii)
the licensee may win or carry for purposes other than commercial
purposes -
(a)
any quantity of such minerals within the limits specified under
column 3 of Schedule III without any payment ;
(b)
any quantity of such minerals not exceeding the limit specified
under column 4 of Schedule III, on payment of royalty for the
time being specified in the Second Schedule to the Act in respect
to those minerals:
Provided
that if any quantity in excess of the quantities specified in
sub-clause (b) is won and carried away, the State Government
may recover the cost of the excess quantity of minerals won
and carried away.
(iii)
with the written approval of the State Government, the licensee
may carry away quantities of minerals in excess of the limits
specified in Schedule III, on payment of royalty for the time
being specified in the Second Schedule to the Act, for chemical,
metallurgical, ore-dressing and other test purposes;
(iv)
save in the case of land in respect of which the licensee is
granted a mining lease, he shall, within six months next after
the determination of the licence or the date of abandonment
of the prospecting operations, whichever is earlier, securely,
plug all bores and fill up or fence all excavations in the land
covered by the licence;
(v)
the licensee shall report to the State Government the discovery
of any mineral not specified in the licence within a period
of sixty days from the date of such discovery. Consequent upon
such reporting, such newly discovered mineral shall be deemed
to have been included in the prospecting licence;
(vi)
Omitted.
(vii)
the licensee shall not except with the previous sanction of
the State Government transfer his licence :
Provided
that no prospecting licence shall be transferred to any person
who has not filed an affidavit stating that he has filed an
up-to-date income tax returns and
paid the income-tax assessed
i8on him and paid
the income tax on the basis of self-assessment as provided in
the Income –Tax Act, 1961(43 of 1961) and except on payment
to the State Government of a fee of five hundred
rupees.
Provided
further that the State Government shall not grant its sanction
for the transfer
of prospecting licence unless the transferee has accepted all
the conditions and liabilities which the transferor has in respect
of such prospecting licence:
Provided
also that the State Government may, by order in writing after
providing the licensee the opportunity of being heard, cancel
such prospecting licence at any time if the licensee has, in
the opinion
of the State Government, committed a breach of this clause or
rule 15A.
(viii)
the licensee shall not pay a wage less than the minimum wage
prescribed by the Central or the State Government from time
to time under the Minimum Wages Act, 1948 ;
(ix)
the licensee shall observe the provisions of the Mines Act,
1952 [(35 of 1952) and the provisions of the Atomic Energy Act,
1962 (33 of 1962) insofar as the latter relate to atomic minerals
included in Part B of the First Schedule to the Act.];
(x)
the licensee shall -
(a)
take immediate measures for planting in the same area or any
other area selected by the Central or State Government not less
than twice the number of trees destroyed by reasons of any prospecting
operations ;
(b)
look after them during subsistence of the licence after which
these shall be handed over to the State Forest Department or
any other authority as may be nominated by the Central or State
Government ;
(c)
restore, to the extent possible, other flora destroyed by prospecting
operations.
(xi)
the licensee shall pay to the occupier of surface of the land
such compensation as may become payable under these rules ;
(xii)
the licensee shall comply with the Mineral Conservation and
Development Rules framed under section 18.
[
]
(2)
A prospecting licence may contain such other conditions relating
to the following as the State Government may think fit to impose,
namely :
(i)
compensation for damage to land in respect of which the licence
has been granted ;
(ii)
indemnity to Government against the claim of a third party for
any damage, injury or disturbance caused to him by the licensee
;
(iii)
restrictions regarding felling of trees on unoccupied and unreserved
Government land ;
(iv)
restrictions on prospecting operations in any area prohibited
by any competent authority ;
(v)
operations in a reserved or protected forest ;
(vi)
conditions regarding entry on occupied land ;
(vii)
facilities to be given by the licensee for working other minerals
in the licenced area or adjacent areas ;
(viii)
filing of civil suits or petitions relating to disputes arising
out of the area under prospecting licence .
[(3)
The State Government may, either with the previous approval
of the Central Government or at the instance of the Central
Government, impose such further conditions as may be necessary
in the interest of mineral development, including development
of atomic minerals.]
(4)
In the case of breach of any conditions imposed on any holder
of prospecting licence by or under this rule, the State Government
may, by order in writing, cancel the licence and/or forfeit,
in whole or part, the amount deposited by the licensee under
rule 20 ;
Provided
that no such order shall be made without giving the licensee
a reasonable opportunity of stating his case.
15.
Licence to be executed within three months. – (1) Where
on any application for a prospecting licence an order has been
made for the grant of such licence, a deed granting such licence
shall be executed within ninety days of the date of the communication
of the order or such further period as the State Government
may allow in this behalf, and if no such deed is executed within
the said period due to any default on the part of the applicant,
the State Government may revoke the order granting the licence
and in that event the fee paid shall be forfeited to the State
Government.
(2)
The deed referred to in sub-rule (1) shall be in Form F, or
in a form as near thereto as circumstances of each case may
require.
(3)
The date of the commencement of the period for which a prospecting
licence is granted shall be the date on which the deed is executed
under sub-rule (1).
15A.
Where on an application for grant of sanction to transfer the
prospecting licence under clause (vii) of sub-rule (1) of rule
14, the State Government has granted sanction for transfer of
such license, a transfer deed in Form P, or a form as near thereto
as possible shall be executed within three months of the date
of the consent, or within such further period as the State Government
may allow in this behalf.
16.
Report of information obtained by the licensee. – (1)
The licensee shall submit to the State Government a six monthly
report of the work done by him stating the number of persons
engaged and disclosing in full the geological, geophysical or
other valuable data collected by him during the period. The
report shall be submitted within three months of the close of
the period to which it relates.
(2)
The licensee shall also submit to the State Government within
three months of the expiry of the license, or abandonment of
operations or termination of the licence, whichever is earlier,
a full report of the work done by him and all information relevant
to mineral resources acquired by him in the course of prospecting
operations in the area covered by the licence.
(3)
While submitting reports under sub-rules (1) or (2), the licensee
may specify that the whole or any part of the report or data
submitted by him shall be kept confidential; and the State Government
shall thereupon, keep the specified portions as confidential
for a period of two years from the expiry of the licence, or
abandonment of operations or termination of the licence, whichever
is earlier.
17.
Omitted
18.
Maintenance of accounts. – Every licensee shall maintain
[an accurate] and faithful account of all expenses incurred
by him on prospecting operations and also the quantity and other
particulars of all minerals obtained during such operations
and their despatch.
19.
Inspection. – (1) The licensee shall allow every officer
authorised by the Central Government or the State Government
in this behalf to examine at any time accounts maintained under
rule 18 and furnish the Central Government or the State Government
such information and returns as it or any officer authorised
by it in that behalf may require.
(2)
The licensee shall allow any officer authorised by the Central
Government or the State Government in this behalf to inspect
any prospecting operations carried on by him.
20.
Security deposits. – (1) An applicant for a prospecting
licence shall, before the deed referred to in sub-rule (1) of
rule 15 is executed, deposit as security for the due observance
of the terms and conditions of the licence a sum of two thousand
and five hundred rupees in respect of the every square kilometer
or part thereof for which the licence is granted.
(2)
Any deposit made under sub-rule (1), if not forfeited under
these rules, shall be refunded to the applicant as soon as the
report referred to in rule 16 is submitted.
21.
Registers. – (1) A register of applications for prospecting
licences shall be maintained by the State Government in Form
G.
(2)
A register of prospecting licences shall be maintained by the
State Government in Form H.
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22.
Application for grant of mining leases. – (1) An application
for the grant of a mining lease in respect of land in which
the minerals vest in the Government shall be made to the State
Government in Form I through such officer or authority as the
State Government may specify in this behalf .
(2)
Omitted
(3)
(i) Every application for the grant of renewal of a mining lease
shall be accompanied by-
(a)
a non-refundable fee of two thousand and five hundred rupees
;
(b)
Omitted
(c)
Omitted
(d)
a valid clearance certificate, in the form prescribed by the
State Government, of payment of mining dues, such as royalty
or dead rent or surface rent payable under the Act or the rules
made thereunder, from that Government or any officer or authority
authorised by that Government in this behalf ;
Provided
that in case the applicant is a partnership firm or a private
limited company, such certificates shall be furnished by all
partners of the partnership firm or, as the case may be, all
members of the private limited company ;
[Provided that
where any injunction has been issued by court of law or any
other competent authority staying the recovery of any such mining
dues or income tax non payment thereof shall not be treated
as a disqualification for the purpose of granting or renewing
the said mining lease:
Provided that where
a person has furnished an affidavit to the satisfaction of the
State Government stating that he does not hold and has not held
a mining lease, it shall not be necessary for him to produce
the said valid clearance certificate:
Provided that a
properly sworn affidavit stating that no dues are outstanding
shall suffice subject to the condition that the certificate
required as above shall be furnished within ninety days of the
date of application and the application shall become invalid
if the party fails to file the certificate within the said ninety
days:
Provided
further that the grant of clearance certificate under sub-clause(d)
shall not discharge the holder of such certificate from the
liability to pay the mining dues which may subsequently be found
to be payable by him under the Act or rules made thereunder.];
(e)
Omitted
(f)
an affidavit stating that the applicant has -
(i)
filed up-to-date income-tax returns ;
(ii)
paid the income-tax assessed on him ; and
(iii)
paid the income-tax on the basis of self-assessment as provided
in the Income Tax Act, 1961;
(g)
an affidavit showing particulars of area mineral-wise in [the]
state, which the applicant or any person jointly with him -
(i)
already holds under a mining lease ;
(ii)
has already applied for but not granted ;
(iii)
being applied for simultaneously ;
(h)
a statement in writing that the applicant has, where the land
is not owned by him, obtained surface rights over the area or
has obtained the consent of the owner for starting mining operations
:
Provided
that no such statement shall be necessary where the land is
owned by the Government :
Provided
further that the consent of the owner for starting mining operations
in the area or part thereof may be furnished after execution
of the lease deed but before entry into the said area ;
Provided
also that no further consent would be required in the case of
renewal where consent has already been obtained during grant
of the lease.
[
]
(i
a) The State Government may, for reasons to be recorded in writing,
relax the provision of sub-clause (d) of clause (I).
(ii)
Every application for the grant of a mining lease shall in addition
to those specified in clause (I) be accompanied by a deposit
of one thousand rupees for meeting the preliminary expenses
in connection with the grant of the mining lease :
Provided that the
applicant shall deposit such further deposit as may be asked
for by the State Government, within one month from the date
of demand of such deposit.
(4)
On receipt of the application for the grant of a mining lease
the State Government shall take decision to grant precise area
for the said purpose and communicate such decision to the applicant.
On receipt of communication from the State Government of the
precise area to be granted, the applicant shall submit a mining
plan, within a period of six months of such other period as
may be allowed by the State Government, to the Central Government
for its approval. The applicant shall submit the mining plan,
duly approved by the Central Government or by an officer duly
authorised by the Central Government, to the State Government
to grant mining lease over that area.
[(4A)
Notwithstanding anything contained in sub-rule(4), the State
Government shall be competent to approve mining plan
of open cast mines
(mines other than the underground mines) in respect of the following
non-metallic or industrial minerals in their respective territorial
jurisdiction, namely:-
(i)
Agate
(ii)
Ball Clay
(iii)
Barytes
(iv)
Calcareous Sand
(v)
Calcite
(vi)
Chalk
(vii)
Clay(Others)
(viii)
Corundum
(ix)
Diaspore
(x)
Dolomite
(xi)
Dunite/pyroxenite
(xii)
Felsite
(xiii)
Felspar
(xiv)
Fireclay
(xv)
Fusch.Quartzite
(xvi)
Gypsum
(xvii)
Jasper
(xviii)
Kaolin
(xix)
Laterite
(xx)
Limekankar
(xxi)
Ochre
(xxii)
Pyrophyllite
(xxiii)
Quartz
(xxiv)
Quartzite
(xxv)
Sand (Others)
(xxvi)
Shale
(xxvii)
Silica Sand
(xxviii)
Slate
(xxix)
Steatite/Talc/Soapstone
Provided
that the State Government shall exercise the power of approval
of mining plan through an officer or officers who shall possess
the following qualification, experience and post or pay scale,
namely:-
(i)
a degree in Mining Engineering or post-graduate degree
in Geology from a University established or incorporated by
or under a Central Act, a Provincial Act or a State Act, including
any institution recognized by the University Grants Commission
established under section 4 of the University Grants Commission
Act, 1956 ( 3 of 1956)
or any equivalent qualification granted by any University or
Institution outside India;
(ii)
professional experience of twelve years in case of a
Mining Engineer in the field of mining engineering and professional
experience of eighteen years in case of a Geologist in the field
of geological survey after obtaining the qualification as specified
in clause (i) in each case; and
(iii)
in the post of Director or Additional Director or Joint
Director of the concerned State Government or in the pay scale,
the maximum of which shall not be less than Rs.15,850/- (Rupees
fifteen thousand eight hundred and fifty only) per month:
Provided
further that the
list of the officers fulfilling the qualification, experience
and post or pay-scale specified in the first proviso shall be
sent to the Controller General, Indian Bureau of Mines by the
State Governments from time to time for the purposes
of that proviso;
Provided
also where any State Government does not have such officer as
having the requisite qualifications and experience, the power
of approval of mining plan, as aforesaid, in respect of that
State shall be exercise by the Central Government:
Provided
also that in the event of the State Government having officer
or officers with requisite qualifications and experience from
any date in future the State Government shall report the matter
to the Controller General, Indian Bureau of Mines and the State
Government shall exercise the power of approval of mining plan,
as aforesaid, thereafter without any reference to the Central
Government
(4B)
The Central Government or the State Government shall dispose
of the application for approval of the mining plan within a
period of ninety days from the date of receiving of such application:
Provided
that the aforesaid period of ninety days shall be applicable
only if the mining plan is complete in all respects and in case
of any modifications subsequently suggested by the Central Government
or the State Government, as the case may be, after the initial
submission of the mining plan for approval, the said period
shall be applicable from the date on which such modifications
are carried out and submitted afresh to the Central Government
or the State Government, as the case may be.
(5)
The mining plan shall incorporate –
[(i)
the plan of the lease hold area showing the nature and extent
of the mineral body, spot or spots where the mining operations
are proposed to be based on the prospecting data gathered by
the applicant or any other person];
(ii)
details of the geology and lithology of the area including mineral
reserves of the area ;
(iii)
the extent of manual mining or mining by the use of machinery
and mechanical devices ;
(iv)
the plan of the area showing natural water courses, limits
of reserves and other forest areas and density of trees, if
any, assessment of impact of mining activity on forest, land
surface and environment including air and water pollution; details
of scheme of restoration
of the area by afforestation, land reclamation, use of pollution
control devices and such other measures as may be directed by
the Central Government or the State Government from time to
time.
[(v)
a tentative scheme of mining and annual programme and plan for
excavation from year to year for five years ;
(va)
a progressive mine closure plan as defined in clause (00) of
rule 3 of the Mineral Conservation and Development Rules, 1988;
and
(vi)
any other matter which the Central Government may require
the applicant to provide in the mining plan.
[(6)
The mining plan once approved shall be valid for the entire
duration of the lease:
Provided
that any modification or modifications of the mining plan shall
be approved by the competent authority and such approval of
the modified mining plan shall remain valid for the balance
duration of the mining lease.]
22A.
Mining operations to be in accordance with Mining Plans.
– (1) Mining operations shall be undertaken in accordance
with the duly approved mining plan.
(2)
Modification of the approved mining plan during the operation
of a mining lease also requires prior approval.
22B.
Mining plan to be prepared by recognized persons. – (1)
No mining plan shall be approved unless it is prepared by a
qualified person recognized in this behalf by the Central Government,
or duly authorised officer.
(2)
No person shall be recognized by the Central Government for
purposes of sub-rule (1) unless he holds -
(i)
a degree in mining engineering or a post-graduate degree in
Geology granted by a University established or incorporated
by or under a Central Act, a Provincial Act or a State Act,
including any institutions recognized by the University Grants
Commission established under section 4 of the University Grants
Commission Act, 1956 or any equivalent qualification granted
by any University or institution outside India ; and
(ii)
Professional experience of five years of working in a supervisory
capacity in the field of mining after obtaining a degree.
(3)
A person recognized to prepare a mining plan may also carry
out modification of the existing mining plan.
22BB.
Procedure for approval of mining plans. – [(1) Notwithstanding
the provisions of rule 63 the mining plan shall be submitted
for approval through authority notified by the Controller General
of the Indian Bureau of Mines or by the State Government, as
the case may be, in this behalf except for minerals specified
in Part A and B of the First Schedule to the Act.
(1a)
Every mining plan submitted for approval under sub-rule (1)
shall be accompanied with a non-refundable fee of one thousand
rupees for every square kilometer or part thereof of mining
area covered under the mining lease.
(2)
Notwithstanding the provisions of the rule 54, any person aggrieved
by any order made or direction issued in respect of mining plan
by an officer of the Central Government competent to approve
mining plans other than the Chief Controller of Mines, Indian
Bureau of Mines for minerals other than those listed in Part
A and B of the First Schedule to the Act, may within
thirty days of the communication of such order or direction,
apply to the authority to whom the said officer is immediately
subordinate, for the revision of the order or direction:
Provided
that any such application may be entertained after the said
period of thirty days if the applicant satisfies the authority
that he had sufficient cause for not making the application
within time;
(3)
On receipt of any application for revision under sub-rule(1),
the authority after giving a reasonable opportunity of being
heard to the aggrieved person, may confirm, modify or set aside
the order made or direction issued by any officer subordinate
to him.
(4)
Any person aggrieved by an order made or direction issued by
the Chief Controller of Mines, Indian Bureau of Mines, concerning
approval of mining plan may within thirty days of the communication
of such order or direction, apply to the Controller General,
Indian Bureau of Mines for a revision of such order or direction
and his decision thereon shall be final:
Provided
that any such application may be entertained after the said
period of 30 days, if the applicant satisfies the Controller
General, Indian Bureau of Mines that he had sufficient cause
for not making the application in time;
(5)
On receipt of any such application under sub-rule (4), the Controller
General, Indian Bureau of Mines may confirm, modify or set aside
the order or direction issued by the Chief Controller of Mines,
Indian Bureau of Mines.
(6)
(a) Notwithstanding anything contained in the above sub-rules,
any person aggrieved by any order or direction issued in respect
of a mining plan by an authorised officer of the State Government,
may within thirty days of the communication of such order or
direction, apply to the Controller General, Indian Bureau of
Mines for revision of the order or direction and his decision
thereon shall be final;
(b)
The procedure enumerated in the preceding sub-rules shall, mutatis
mutandis, be followed in the disposal of such an application.
(7)
The powers under sub-rules (1) and (2) in regard to approval
of mining plans shall be exercised by Director, Atomic Minerals
Directorate for Exploration and Research, Hyderabad, and in
regard to revision under sub-rules (3) to (5) shall be exercised
by Secretary, Department of Atomic Energy, Mumbai, insofar as
they relate to atomic minerals specified in Part B of the First
Schedule to the Act.
(8)
The powers under sub-rules (1) to (5) in regard to approval
of mining plan and revision shall be exercised by authorities
designated in this behalf by notification by the Department
of Coal insofar as they relate to coal and lignite specified
in Part A of the First Schedule to the Act.]
22C.
Grant of recognition by Central Government. – (1) Any
person possessing the qualification and experience referred
to in sub-rule (2) of rule 22B may apply for being recognized
as a recognized person to the competent authority appointed
for the purpose by the Central Government.
(2)
The competent authority, after making such enquiry as it deems
fit, may grant or refuse to grant recognition and where recognition
is refused, the competent authority shall record reasons in
writing and communicate the same to the applicant.
[(3)
A recognition shall be granted for an initial period of ten
years and may be renewed for a period(s) not exceeding ten years
at a time:
Provided
that the competent authority may refuse to renew recognition
for reasons to be recorded in writing after giving an opportunity
of hearing to the person concerned];
[(4)
An appeal shall lie to the Controller General, Indian Bureau
of Mines, against the order of the competent authority refusing
to grant or renew an application for recognition and his order
thereon shall be final].
[Explanation.-
For the purpose of this rule, Chief Controller of Mines, Controller
of Mines and the Regional Controller of Mines, shall be deemed
to be competent authority.]
22D.
Minimum size of the mining lease:- Minimum area for grant
of mining lease shall not be less than-
(a)
One hectare, in respect of small deposits (not fragmented
portions of larger ones), shallow in nature, isolated and not
exceeding more than 200 metres in strike length. These deposits
are small by virtue of either origin or mode of emplacement
or dislocation due to geological disturbances.
Small
deposits shall also include float deposits (transported) formed
due to mechanical weathering and deposition, alluvial or eluvial
placers (buried or otherwise), which generally have peculiar
configurations excepting beach sands or placers;
(b)
Two hectares, in respect of beach sands or placers.
Beach
sands or placers are mono or multi mineral concentrations, including
the dunes occurring on and off the coastal shore line.
These
deposits are the products of ebb and flow of tides, waves and
inshore currents, and at places semi-consolidated to consolidated
in nature;
(c)
Four hectares, in respect of all mineral deposits other than
those specified under clauses (a) and (b).
23.
Acknowledgement of application. – (1) Where an application
for the grant or renewal of mining lease is delivered personally,
its receipt shall be acknowledged forthwith.
(2)
Where such application is received by registered post, its receipt
shall be acknowledged on the same day.
(3)
In any other case, the receipt of such application shall be
acknowledged within three days of the receipt.
(4)
The receipt of every such application shall be acknowledged
in Form D.
23A.
Omitted.
24.
Disposal of application for mining lease. – (1) Omitted.
(2)
Omitted.
(3)
Omitted.
(4)
Where an application for a mining lease for a mineral or minerals
not specified in the existing mining lease or mining leases
is made for the whole or part of the area held under mining
lease by a person other than the lessee, the State Government
shall notify this fact by registered post/ Acknowledgement Due
to the person who already holds mining leases for another mineral
in the land applied for .
(5)
(a) If on receipt of the information referred to in sub-rule
(4), from the State Government, the lessee applies either for
prospecting licence or mining lease for newly discovered mineral
or minerals within six months from the date of communication
of the information by the State Government, the lessee shall
be preferred in respect of such grant.
(b)
If the lessee fails to apply for prospecting licence or mining
lease within six months, then this fact will be intimated to
the applicant by the State Government and the State Government
will consider the original application in accordance with the
rules.
(6)
Omitted.
24A
Renewal of mining lease. – (1) An application for the
renewal of a mining lease shall be made to the State Government
in Form J, at least twelve months before the date on which the
lease is due to expire, through such officer or authority as
the State Government may specify in this behalf.
[(2)
The renewal or renewals of a mining lease granted in respect
of a mineral specified in Part ‘A’ and Part ‘B’ of the First
Schedule to the Act may be granted by the State Government with
the previous approval of the Central Government.];
[(3)
The renewal or renewals of a mining lease granted in respect
of a mineral not specified in Part ‘A’ and Part ‘B’ of the First
Schedule to the Act may be granted by the State Government.];
Provided
that before granting approval for second or subsequent renewal
of a mining lease, the State Government shall seek a report
from the Controller General, Indian Bureau of Mines, as to whether
it would be in the interest of mineral development to grant
the renewal of the mining lease.
Provided
further that in case a report is not received from Controller
General, Indian Bureau of Mines in a period of three months
of receipt of the communication from the State Government, it
would be deemed that the Indian Bureau of Mines has no adverse
comments to offer regarding the grant of the
renewal of mining lease.
(4)
Omitted.
(5)
Omitted.
(6)
If an application for the renewal of a mining lease made within
the time referred to in sub-rule (1) is not disposed of by the
State Government before the date of expiry of the lease, the
period of the lease shall be deemed to have been extended by
a further period till the State Government passes order thereon.
(7)
[ ]
(8)
Notwithstanding anything contained in sub-rule (1) and sub-rule
(6), an application for the first renewal of a mining lease,
so declared under the provisions of section 4 of the Goa, Daman
and Diu Mining Concession (Abolition and Declaration as Mining
Lease ) Act,1987, shall be made to the State Government in Form
J before the expiry of the period of mining lease in terms of
sub-section (1) of section 5 of the said Act, through such office
or authority as the State Government may specify in this behalf:
Provided
that the State Government may, for reasons to be recorded in
writing and subject to such conditions as it may think fit,
allow extension of time for making of such application up to
a total period not exceeding one year.
(9)
If an application for first renewal made within the time referred
to in sub-rule (8) or within the time allowed by the State Government
under the proviso to sub-rule (8), the period of that lease
shall be deemed to have been extended by a further period till
the State Government passes orders thereon.
[(10)
The State Government may condone delay in an application for
renewal of mining lease made after the time limit prescribed
in sub-rule (1) provided the application has been made before
the expiry of the lease].
24B.
Renewal of a mining lease in favour of a person using the
mineral in his own industry. – Every person who is holding
mining lease for a mineral which in used in his own industry
shall be entitled for the renewal of his mining lease for a
period not exceeding twenty years unless he applies for a lesser
period.
Explanation
: "Own industry" means an industry of which the lessee
is the owner or in which he holds not less than fifty percent
of controlling interest.
25.
Refund and forfeiture, etc. – [ ]
25A.
Status of the grant on death of applicant for mining lease.
– (1) Where an applicant for grant or renewal of mining lease
dies before the order granting him a mining lease or its renewal
is passed, the application for the grant or renewal of a mining
lease shall be deemed to have been made by his legal representative.
(2)
In the case of an applicant in respect of whom an order granting
or renewing a mining lease is passed, but who dies before the
deed referred to in sub-rule (1) of rule 31 is executed, the
order shall be deemed to have been passed in the name of the
legal representative of the deceased.
26.
Refusal of the applicant for grant and renewal of mining
lease. – (1) The State Government may, after giving an opportunity
of being heard and for reasons to be recorded in writing and
communicated to the applicant, refuse to grant or renew a mining
lease over the whole or part of the area applied for.
(2)
An application for the grant or renewal of a mining lease made
under rule 22 or rule 24A, as the case may be, shall not be
refused by the State Government only on the ground that Form
I or Form J, as the case may be, is not complete in all material
particulars, or is not accompanied by the documents referred
to in sub-clauses (d),(e),(f),(g) and (h) of clause (i) of sub-rule
3 of rule 22.
(3)
Where it appears that the application is not complete in all
material particulars or is not accompanied by the required documents,
the State Government shall, by notice, require the applicant
to supply the omission or, as the case may be, furnish the documents,
without delay and in any case not later than thirty days from
the date of receipt of the said notice by the applicant.
27.
Conditions. – (1) Every mining lease shall be subject
to the following conditions :
(a)
the lessee shall report to the State Government the discovery
in the leased area of any mineral not specified in the lease,
within sixty days of such discovery;
(b)
if any mineral not specified in the lease is discovered in the
leased area, the lessee shall not win and dispose of such mineral
unless such mineral is included in the lease or a separate lease
is obtained therefor ;
(c)
the lessee shall pay, for every year, except the first year
of the lease, such yearly dead rent at the rate specified in
the Third Schedule of the Act and if the lease permits the working
of more than one mineral in the same area the State Government
shall not charge separate dead rent in respect of each mineral:
Provided
that the lessee shall be liable to pay the dead rent or royalty
in respect of each mineral whichever be higher in amount but
not both ;
(d)
the lessee shall also pay, for the surface area used by him
for the purposes of mining operations, surface rent and water
rate at such rate, not exceeding the land revenue, water and
cesses assessable on the land, as may be specified by the State
Government in the lease ;
(e)
Omitted
(f)
the lessee shall commence mining operations within one year
from the date of execution of the lease and shall thereafter
conduct such operations in a proper, skillful and workman-like
manner
Explanation.-
For the purpose of this clause, mining operations shall include
the erection of machinery, laying of a tramway or construction
of a road in connection with the working of the mine ;
(g)
the lessee shall at his own expenses erect and at all times
maintain and keep in good repair boundary marks and pillars
necessary to indicate the demarcation shown in the plan annexed
to the lease ;
(h)
the lessee shall not carry on, or allow to be carried on, any
mining operations at any point within a distance of fifty metres
from any railway line, except under and in accordance with the
written permission of the railway administration concerned or
under or beneath any ropeway or ropeway trestle or station,
except under and in accordance with the written permission of
the authority owning the ropeway or from any reservoir, canal
or other public works, or buildings, except under and in accordance
with the previous permission of the State Government ;
(i)
the lessee shall keep [accurate and faithful] accounts showing
the quantity and other particulars of all minerals obtained
and dispatched from the mine, the number and nationality of
the persons employed therein, and complete plans of the mine,
and shall allow any officer authorized by the Central Government
or the State Government in this behalf to examine at any time
any accounts, plans and records maintained by him and shall
furnish the Central or the State Government with such information
and returns as it or any officer authorized by it in this behalf
may require ;
(j)
the lessee shall keep accurate records of all trenches, pits
and drillings made by him in the course of mining operations
carried on by him under the lease, and shall allow any officer
authorised by the Central or the State Government to inspect
the same. Such reports shall contain the following particulars,
namely :-
(a)
the subsoil and strata through which such trenches, pits or
drillings pass ;
(b)
any mineral encountered ;
(c)
such other particulars as the Central or the State Government
may from time to time require ;
(k)
the lessee shall strengthen and support, to the satisfaction
of the railway administration concerned or the State Government,
as the case may be, any part of the mine which in its opinion
requires such strengthening or support for the safety of any
railway, reservoir, canal, roads or any other public works or
buildings ;
(l)
the lessee shall allow any officer authorized by the Central
or the State Government to enter upon any building, excavation
or land comprised in the lease for the purpose of inspecting
the same ;
(m)
the State Government shall at all times have the right of pre-emption
of the minerals won from the land in respect of which the lease
has been granted ;
Provided
that the fair market price prevailing at the time of pre-emption
shall be paid to the lessee for all such minerals.
(n)
The lessee shall store properly the unutilized or non-saleable
sub-grade ores or minerals for future beneficiation;
(o)
in respect of any mineral which in relation to its use for certain
purposes is classified as a major mineral and in relation to
its use for other purposes as a minor mineral, the lessee who
holds a lease for extraction of such mineral under these rules
whether or not it is specified as a major mineral in the lease
deed, shall not use or sell the mineral or deal with it in whatsoever
manner or knowingly allow anyone to use or sell the mineral
or deal with it in whatsoever manner as a minor mineral :
Provided
that if on an application made to it in this behalf by the lessee,
the State Government is satisfied that having regard to the
inferior quality of such mineral, it cannot be used for any
of the purposes by reason of which use it can be called a major
mineral or that there is no market for such mineral as a major
mineral, the State Government may by order permit the lessee
to dispose of the mineral in such quantity and in such manner
as may be specified therein as a minor mineral.
(p)
the lessee shall, in the matter of employment, give preference
to the tribals and to the persons who become displaced because
of the taking up of mining operations ;
(q)
the lessee shall not pay a wage less than the minimum wage prescribed
by the Central or State Government from time to time under the
Minimum Wages Act, 1948 ;
(r)
the lessee shall observe the provisions of the Mines Act, 1952
[(35 of 1952) and of the Atomic Energy Act, 1962 (33 of 1962)
insofar as they relate to atomic minerals included in Part B
of the First Schedule to the Act];
(s)
the lessee shall –
(i)
take immediate measures for planting in the same area or any
other area selected by the Central or State Government not less
than twice the number of trees destroyed by reasons of any mining
operations ;
(ii)
look after them during the subsistence of the lease after which
these trees shall be handed over to the State Forest Department
or any other authority nominated by the Central or State Government
;
(iii)
restore, to the extent possible other flora destroyed by the
mining operations .
(t)
the lessee shall pay to the occupier of the surface of the land
such compensation as may become payable under these rules ;
(u)
the lessee shall comply with the Mineral Conservation and Development
Rules framed under section 18.
(2)
A mining lease may contain such other conditions as the State
Government may deem necessary in regard of the following, namely
:-
(a)
the time-limit, mode and place of payment of rents and royalties
;
(b)
the compensation for damage to the land covered by the lease;
(c)
the felling of trees ;
(d)
the restrictions of surface operations in any area prohibited
by any authority ;
(e)
the notice by lessee for surface occupation ;
(f)
the provision for proper weighing machines ;
(g)
the facilities to be given by the lessee for working other minerals
in the leased area or adjacent area ;
(h)
the entering or working in a reserved or protected forest ;
(i)
the securing of pits and shafts ;
(j)
the reporting of accidents ;
(k)
the indemnity to Government against claims of third parties;
(l)
the delivery of possession of land and mines on the surrender,
expiration or determination of the lease ;
[(la)
the time limit for removal of mineral, ore, plant, machinery
and other properties from the lease hold area after expiration,
or sooner determination or surrender or abandonment of the mining
lease];
(m)
the forfeiture of property left after determination of lease
;
(n)
the power to take possession of plant, machinery, premises and
mines in the event of war or
emergency ;
(o)
filing of civil suits or petitions relating to disputes arising
out of the area under lease.
[(3)
The State Government may, either with the previous approval
of the Central Government or at the instance of the Central
Government, impose such further conditions as may be necessary
in the interests of mineral development, including development
of atomic minerals.]
(4)
If the lessee does not allow entry or inspection under clause
(i),(j) of (l) of sub-rule (1), the State Government shall give
notice in writing to the lessee requiring him to show cause
within such time as may be specified in the notice why the lease
should not be determined and his security deposit forfeited;
and if the lessee fails to show cause within the aforesaid time
to the satisfaction of the State Government, the State Government
may determine the lease and forfeit the whole or part of the
security deposit.
(5)
If the lessee makes any default in the payment of royalty as
required under section 9 or payment of dead rent as required
under Section 9A or commits a breach of any of the conditions
specified in sub-rules (1),(2) and (3), except the condition
referred to in clause (f) of sub-rule (1), the State Government
shall give notice to the lessee requiring him to pay the royalty
or dead rent or remedy the breach, as the case may be, within
sixty days from the date of the receipt of the notice and if
the royalty or dead rent is not paid or the breach is not remedied
within the said period, the State Government may without prejudice
to any other proceedings that may be taken against him, determine
the lease and forfeit the whole or part of the security deposit.
28.
Lapsing of leases. – (1) Subject to other conditions
of this rule where mining operations are not commenced within
a period of two years from the date of execution of the lease,
or is discontinued for a continuous period of two years after
commencement of such operations, the State Government shall,
by an order , declare the mining lease as lapsed and communicate
the declaration to the lessee.
(2)
Where a lessee is unable to commence the mining operation within
a period of two years from the date of execution of the mining
lease, or discontinues mining operations for a period exceeding
two years for reasons beyond his control, he may submit an application
to the State Government, explaining the reasons for the same,
at least three months before the expiry of such period.
(3)
Every application under sub-rule (2) shall be accompanied by
a fee of Rs.200/-.
(4)
The State Government may on receipt of an application made under
sub-rule (2) and on being satisfied about the adequacy and genuineness
of the reasons for the non-commencement of mining operations
or discontinuance thereof, pass an order before the date on
which the lease would have otherwise lapsed, extending or refusing
to extend the period of the lease :
Provided
that where the State Government on receipt of an application
under sub-rule (2) does not pass an order before the expiry
of the date on which the lease would have otherwise lapsed,
the lease shall be deemed to have been extended until the order
is passed by the State Government or until a period of two years,
whichever is earlier.
Explanation
1: Where the non-commencement of the mining operations within
a period of two
years from the date of execution of mining lease is on account
of -
(a)
delay in acquisition of surface rights ; or
(b)
delay in getting the possession of the leased area ; or
(c)
delay in supply or installation of machinery ; or
(d)
delay in getting financial assistance from the banks, or any
financial institutions ; or
(e)
ensuring supply of the mineral in an industry of which the lessee
is the owner or in which he holds not less than 50% of the controlling
interest ;
and
the lessee is able to furnish documentary evidence supported
by a duly sworn affidavit, the State Government may consider
if there are sufficient reasons for non-commencement of operations
for a continuous period of more than two years.
Explanation
2: Where the discontinuance of mining operations for a continuous
period of two years after the commencement of such
operations is an account of -
(a)
orders passed by any statutory or judicial authority ; or
(b)
operations becoming highly uneconomical ; or
(c)
strike or lock out ;
and
the lessee is able to furnish documentary evidence supported
by a duly sworn affidavit, the State Government may consider
if there are sufficient reasons for discontinuance of operations
for a continuous period of more than one year.
[Explanation
3.- In case of mining lessee who has undertaken reconnaissance
perations or in case of mining lessee whose
capital investment in mine development is
planned to be in excess of Rs.200 crores and where the mine
development is likely to take more than two years,
the State Government shall consider it to
be sufficient reason for non-commencement of
mining operations for a continuous period of more than two
years.]
28A.(1)Where
a lessee is unable to commence the mining operations within
a period of two years from the date of execution of the mining
lease, or discontinues mining operations for a period of exceeding
two years for reasons beyond his control, he may submit an application
to the State Government explaining the reasons for the same
at least within six months from the date of its lapse :
Provided
that the lease has not been revived under this provision for
more than twice during the entire period of the lease .
(2)
Every application under sub-rule (1) shall be accompanied by
a fee of Rs 500/-;
(3)
The State Government on receipt of an application made under
sub-rule (1) and on being satisfied about the adequacy and genuineness
of the reasons for non-commencement of mining operations or
discontinuance thereof taking into consideration the matters
specified in the Explanation to rule 28, pass an order reviving
the lease.
29.
Restriction on determination of lease. – (1) The lessee
shall not determine the lease except after notice in writing
of not less than twelve calendar months to the State Government
or to such officer, or authority as the State Government may
specify in this behalf :
Provided
that where a lessee holding a mining lease for a group of minerals
applies for the surrender of any mineral from the lease on the
ground that deposits of that mineral have since exhausted or
depleted to such an extent that it is no longer economical to
work the mineral, the State Government may permit the lessee
to surrender that mineral, subject to the following conditions
, namely:-
(a)
the lessee applies for such surrender of mineral at least six
months before the intended date of surrender ; and
(b)
the lessee gives an undertaking that he will not cause any hindrance
in the working of the mineral so surrendered by any other person
who is subsequently granted a mining lease in respect of that
mineral :
Provided
further that where a lessee applies for the surrender of the
whole or a part of lease-hold area on the ground that such area
is barren or the deposits of minerals have since exhausted or
depleted to such an extent that it is no longer economical to
work such area, the State Government shall permit the lessee,
from the date of receipt of the application, to surrender that
area if the following conditions are satisfied, namely :-
(a)
the lease hold area to be surrendered has been properly surveyed
and is contiguous ,
(b)
the lessee has paid all the dues payable to the Government under
the lease up to the date of application, and
(c)
the lessee has obtained a certificate under rule 29A.
Provided
also that surrender of the lease area by the lessee shall be
permitted only thrice during the period of the lease on fulfilling
the conditions :-
(i)
that at least a period of five years has elapsed since the last
surrender; and
(ii)
that the provisions of the mining plan including the environment
management plan thereof have been complied with .
(2)
Every application for the surrender of a part of lease-hold
area in accordance with the provisions of sub-rule (1), shall
be accompanied by a deposit of two hundred rupees for meeting
the expenditure for the purpose of survey and demarcation of
the area to be surrendered :
Provided
that the lessee shall deposit such further amount, not exceeding
two hundred rupees, as may be demanded by the State Government
for meeting any additional expenditure for the said purpose
within one month from the date of demand of such deposit :
Provided
further that where the whole or any part of the amount deposited
has not been expended, it shall be refunded to the lessee within
two months from the date of completion of the work of survey
and demarcation of the area to be surrendered .
(3)
Upon the issuance of the order by the Regional Controller of
Mines or the officer authorized by the State Government in this
behalf, as the case may be, under sub-rule (6) of rule 23F of
Mineral Conservation and Development Rules, 1988, for forfeiting
the sum assured, on non-performance of the measures contained
in the approved mine closure plan referred to in sub-rule (1)
of rule 23A of Mineral Conservation and Development Rules, 1988
by the lessee, it shall be the responsibility of State Government
to realize any letter of credit or bond or any other surety,
guarantee provided or obtained as financial assurance for the
purpose of performance of protective, reclamation and rehabilitation
measures as contained in the approved mine closure plan and
shall carry out such measures either by itself, or appoint an
agent to do so.
29A.
Provision for closure-(1) The lessee shall not determine
the lease or part thereof unless a final mine closure plan duly
approved by the Regional Controller or the officer authorized
by the State Government in this behalf, as the case may be,
is implemented as per the approval.
(2)
For the purposes of sub-rule (1), the lessee shall be required
to obtain a certificate from the Regional Controller of Mines
or officer authorized by the State Government in this behalf,
as the case may be, to the effect that protective, reclamation
and rehabilitation work in accordance with the approved mine
closure plan or with such modifications as approved by the competent
authority have been carried out by the lessee.
30.
Rights of lessee. – Subject to the condition mentioned
in rule 27, the lessee with respect to the land leased to him
shall have the right for the purpose of mining operations on
the land -
(a)
to work the mines ;
(b)
to sink pits and shafts and construct buildings and roads ;
(c)
to erect plant and machinery ;
(d)
to quarry and obtain building and road materials and make bricks
;
(e)
to use water and take timber ;
(f)
to use land for stacking purpose ;
(g)
to do any other thing specified in the lease.
31.
Lease to be executed within six months. – (1) Where,
on an application for the grant of a mining lease, an order
has been made for the grant of such lease, a lease deed in Form
K or in a form as near thereto as circumstances of each case
may require, shall be executed within six months of the order
or within such further period as the State Government may allow
in this behalf, and if no such lease deed is executed within
the said period due to any default on the part of the applicant,
the State Government may revoke the order granting the lease
and in that event the application fee shall be forfeited to
the State Government.
[(2)
The date of the commencement of the period for which a mining
lease is granted shall be the date on which a duly executed
deed under sub-rule (1) is registered.]
32.
Security deposit. – An applicant for a mining lease,
shall before the deed referred to in rule 31 is executed, deposit
as security for the due observance of the terms and conditions
of the lease [ten thousand rupees].
33.
Survey of the area leased. – When a mining lease is granted
by the State Government, arrangements shall be made by the State
Government at the expense of the lessee for the survey and demarcation
of the area granted under the lease .
34.
Manner of exercise of preferential rights for mining lease.
– A mining lease to any person who has a preferential right
thereto under sub-section (1) of section 11, may at his option,
be granted to him either for the whole of the area for which
he holds the prospecting licence or such part or parts thereof
as he may select but the State Government may for any reasons
to be recorded in writing reduce the area or exclude a portion
therefrom .
[35.
Preferential rights of certain persons. – Where two or
more persons have applied for a reconnaissance permit or a prospecting
licence or a mining lease in respect of the same land, the State
Government shall, for the purpose of sub-section(2) of Section
11, consider, besides the matters mentioned in clauses (a) to
(d) of sub-section(3) of Section 11, the end use of the mineral
by the applicant.]
36.
Boundaries below the surface. – The boundary of the area
covered by a mining lease shall run vertically downwards below
the surface towards the centre of the earth.
37.
Transfer of lease. – (1) The lessee shall not, without
the previous consent in writing of the State Government and
in the case of mining lease in respect of any mineral specified
in [Part ‘A’ and Part ‘B’ of] the First Schedule to the Act,
without the previous approval of the Central Government :-
(a)
assign, sublet, mortgage, or in any other manner, transfer the
mining lease, or any right, title or interest therein, or
(b)
enter into or make any [bonafide] arrangement, contract, or
understanding whereby the lessee will or may be directly or
indirectly financed to a substantial extent by, or under which
the lessee's operations or undertakings will or may be substantially
controlled by, any person or body of persons other than the
lessee:
Provided
further that where the mortgagee is an institution or a Bank
or a Corporation specified in Schedule V, it shall not be necessary
for the lessee to obtain any such consent of the State Government
.
(1A)
The State Government shall not give its consent to transfer
of mining lease unless the transferee has accepted all the conditions
and liabilities which the transferor was having in respect of
such mining lease.
(2)
Without prejudice to the provisions of sub-rule (1) the lessee
may, transfer his
lease or any right, title or interest therein to a person who
has filed an affidavit stating that he has filed an up-to-date
income-tax returns, paid the income tax assessed on him and
paid the income tax on the basis of self-assessment as provided
in the Income Tax Act, 1961( 43 of 1961), on payment of a fee
of five hundred rupees to the State Government :
Provided
that the lessee shall make available to the transferee the original
or certified copies of all plans of abandoned workings in the
area and in a belt 65 metres wide surrounding it ;
Provided
further that where the mortgagee is an institution or a Bank
or a Corporation specified in Schedule V, it shall not be necessary
for any such institution or Bank or Corporation to meet with
the requirement relating to income tax ;
Provided
further that the lessee shall not charge or accept from the
transferee any premium in addition to the sum spent by him,
in obtaining the lease, and for conducting all or any of the
operations referred to in rule 30 in or over the land leased
to him ;
[
]
(3)
The State Government may, by order in writing determine any
lease at any time if the lessee has, in the opinion of the State
Government, committed a breach of any of the provisions of sub-rule
(1) or sub-rule (1A) or has transferred any lease or any right,
title or interest therein otherwise than in accordance with
sub-rule (2) ;
Provided
that no such order shall be made without giving the lessee a
reasonable opportunity of stating his case.
37A.
Transfer of lease to be executed within three months. –
Where on an application for transfer of mining lease under rule
37, the State Government have given consent for transfer of
such lease, a transfer lease deed in Form O or a form as near
thereto, as possible, shall be executed within three months
of the date of the consent, or within such further period as
the State Government may allow in this behalf.
[38.
Amalgamation of leases. – The State Government may, in the
interest of mineral development and with reasons to be recorded
in writing, permit amalgamation of two or more adjoining leases
held by a lessee:
Provided
that the period of amalgamated leases shall be co-terminus with
the lease whose period will expire first:
Provided
further that prior approval of the Central Government shall
be required for such amalgamation in respect of leases for minerals
specified in Part ‘A’ and Part ‘B’ of the First Schedule to
the Act.].
[39.
Pending applications for transfer and amalgamation. –
An application for the transfer of a mining lease or the amalgamation
of mining leases pending at the commencement of these rules
shall be disposed of in accordance with these rules.].
40.
Registers. – (1) A register of applications for mining
leases shall be maintained by the State Government in Form L.
(2)
A register of mining leases shall be maintained by the State
Government in Form-M.
________________________________________________________________________
41.
Applicability of this chapter. – The provisions of this
chapter shall apply only to the grant of prospecting licences
and mining leases in respect of land in which the minerals vest
exclusively in a person other than the Government .
42.
Restrictions on the grant of prospecting licence and mining
lease. – (1) No prospecting licence or mining lease shall
be granted to any person unless he has filed an affidavit stating
that he has –
(i)
filed up-to-date income tax returns ;
(ii)
paid the income tax assessed on him , and
(iii)
paid the income tax on the basis of self-assessment as provided
in the Income Tax Act, 1961 (43 of 1961).
(2)
Except with the previous approval of the Central Government,
no prospecting licence or mining lease shall be granted in respect
of any mineral specified in the First Schedule to the Act.
43.
Renewal of prospecting licence. – Omitted .
44.
Conditions of prospecting licence. – Every prospecting
licence shall be subject to the following conditions :
(i)
the licensee shall pay the grantor such prospecting fee as may
be agreed upon, being not less than one rupees
and not more than ten rupees per hectare of the land
covered by the licence for each year or a part of the year of
the period for which a licence is granted or renewed ;
(ii)
in the case of minerals other than gold, silver, precious stones
or mica, the licensee shall not win or carry away the minerals
for commercial purposes ;
Provided
that the licensee may win or carry away for purposes other than
the commercial purposes –
(a)
any quantity of such minerals within the limits specified in
Schedule III without any payment ;
(b)
any quantity of such minerals exceeding such limits but not
exceeding twice such limits, which is won during prospecting
operations, on payment of royalty for the time being specified
in the Second Schedule to the Act in respect of those minerals
;
(c)
any quantity of limestone not exceeding 500 tonnes for testing
its use in any industry specified by the Central Government
in this behalf, on payment of royalty for the time being specified
in the Second Schedule to the Act in respect of limestone ;
(iii)
in the case of gold, silver, precious stones or mica the licensee
may carry away any quantity won during the course of prospecting
operations on payment of royalty for the time being specified
in the Second Schedule to the Act in respect of such mineral
;
(iv)
such other conditions as may be agreed upon between the parties
not being inconsistent with the provisions of the Act or these
rules.
45.
Conditions of mining lease. – Every mining lease will
be subjected to the following conditions :
(i)
the provisions of clauses (b) to (l) and (p) to (u) of sub-rule
(1) of rule 27 shall apply to such leases with modification
that in clauses (c) and (d) for the words "State Government"
the word "lessor" shall be substituted ;
(ia)
mining operations shall be undertaken in accordance with the
duly approved mining plan ;
(ii)
(omitted) ;
(iii)
the lease may contain such other conditions, not being inconsistent
with the provisions of the Act and these rules, as may be agreed
upon between the parties ;
(iv)
if the lessee makes any default in payment of royalty as required
by section 9 or commits a breach of any of the conditions of
the lease, the lessor shall give notice to the lessee requiring
him to pay the royalty or remedy the breach, as the case may
be, within sixty days from the date of the receipt of the notice
and if the royalty is not paid or the breach is not remedied
within such period, the lessor without prejudice to any proceedings
that may be taken against the lessee determine the lease ;
(v)
the lessee may determine the lease at any time by giving not
less than one year's notice in writing to the lessor ;
46.
Transfer or assignment. – (1) No prospecting licence
or mining lease or any right, title or interest in such licence
or lease shall be transferred to a person unless he has filed
an affidavit stating that he has filed an up to date income
tax return, paid the income tax assessed on him and paid the
income tax on the basis of self-assessment as provided in the
Income Tax Act, 1961( 43 of 1961).
(2)
No prospecting licence or mining lease or any right, title or
interest in such licence or lease in respect of any mineral
specified in the First Schedule to the Act shall be transferred
except with the previous approval of the Central Government.
47.
Submission of copy of licence or lease. – Every person
obtaining a prospecting licence or a mining lease shall, within
three months of the grant of such lease or licence, submit to
the State Government concerned a certified copy of the licence
or lease in duplicate.
48.
Communication of transfer or assignment. – Every transferee
or assignee of a prospecting licence or a mining lease or of
any right, title or interest therein, shall, within one month
of such transfer or assignment, inform the State Government
of the transfer or assignment and of the terms and conditions
of such transfer and assignment .
49.
Prohibition of premium. – No person granting or transferring
a prospecting licence or any right, title or interest in any
such licence or lease shall charge or pay any premium in addition
to, or in lieu of the prospecting fee ,surface rent ,dead rent
, royalty payable, under the Act or such proportionate part
of such fee, rent or royalty as is payable in respect of such
right, title, or interest .
50.
Prohibition of working of mines. – If the State Government
has reason to believe that the grant or transfer of a prospecting
licence or a mining lease or any right, title or interest in
such licence or lease is in contravention of any of the provisions
of this chapter, the State Government may, after giving the
parties an opportunity to represent their views and with the
approval of the Central Government, direct the parties concerned
not to undertake any prospecting or mining operations in the
area to which the licence or lease relates.
51.
Returns and Statements. – The holder of a prospecting
licence or a mining lease shall furnish to the State Government
such returns and statements and within such period as may be
specified by it.
52.
Penalty. – (1) If the holder of a prospecting licence
or a mining lease or his transferee or assignee fails, without
sufficient cause, to furnish the documents or information, or
returns referred to in rule 46, rule 47, rule 48, or rule 51,
or acts in any manner in contravention of rule 49 or rule 50,
he shall be punishable with imprisonment for a term which may
extend to one year or fine which may extend to five thousand
rupees or with both.
(2)
If any person grants or transfers or obtains a prospecting licence
or mining lease or any right, title or interest therein, in
contravention of any of the provisions of this chapter, he shall
be punishable with imprisonment which may extend to one year
or a fine which may extend to five thousand rupees or both.
__________________________________________________________
53. Chapters
III and IV to apply to prospecting licences and mining leases
in respect of minerals which vest partly in Government and partly
in private persons. – The provisions of chapters III and
IV shall apply in relation to the grant of the prospecting licences
and mining leases in respect of minerals which vest partly in
Government and partly in private persons as they apply in relation
to the grant of the prospecting licences and mining leases in
respect of minerals which vest exclusively in the Government
:
Provided that the
dead rent and royalty payable in respect of mineral which partly
vest in the Government and partly in private person shall be
shared by the Government and by that person in proportion to
the shares they have in the minerals
__________________________________________________________
54. Application
for revision. – (1) Any person aggrieved by any order made
by the State Government or other authority in exercise of the
powers conferred on it by the Act or these rules may, within
three months of the date of communication of the order to him,
apply to the Central Government in triplicate in Form N for
revision of the order. The application should be accompanied
by a Bank Draft for five thousand rupees on a nationalized bank
in the name of 'Pay and Accounts Officer, Department of Mines'
payable at New Delhi or through a treasury challan for five
thousand rupees under the Head of Account - 0853 - Non-ferrous
Mining and Metallurgical Industries -102 Mineral Concession
Fees, Rent and Royalties :
Provided
that any such application may be entertained after the said
period of three months if the applicant satisfies the Central
Government that he had sufficient cause for not making the application
within time.
(1A)
[ ]
(2)
In every application under sub-rule (1) against the order of
a State Government refusing to grant a prospecting licence or
a mining lease, any person to whom a prospecting licence or
mining lease was granted in respect of the same area or for
a part thereof, shall be impleaded as party.
(3)
Along with the application under sub-rule (1), the applicant
shall submit as many copies thereof as there are parties impleaded
under sub-rule (2).
(4)
On receipt of the application and copies thereof, the Central
Government shall send a copy of the application to each of the
parties impleaded under sub-rule (2) specifying a date on or
before which he may make his representations, if any, against
the revision application .
(5)
Omitted.
55. Orders on
revision application. – (1) On receipt on an application
for revision under rule 54, copies thereof shall be sent to
the State Government or other authority and to all the impleaded
parties calling upon them to make such comments as they may
like to make within three months from the date of issue of the
communication, and the State Government or other authority and
the impleaded parties, while furnishing comments to the Central
Government shall simultaneously endorse a copy of the comments
to the other parties.
(2)
Comments received from any party under sub-rule (1) shall be
sent to the other parties for making such further comments as
they may like to make within one month from the date of issue
of the communication and the parties making further comments
shall send them to all the other parties.
(3)
The revision application, the communications containing comments
and counter-comments referred to in sub-rule (1) and (2) shall
constitute the records of the case.
(4)
After considering the records referred to in sub-rule (3), the
Central Government may confirm, modify or set aside the order
or pass such other order in relation thereto as the Central
Government may deem just and proper.
(5)
Pending the final disposal of an application for revision, the
Central Government may, for sufficient cause, stay the execution
of the order against which any revision application has been
made
____________________________________________________________
56.
Power to rectify apparent mistakes. – Any clerical or
arithmetical mistakes in any order passed by the government
or any other authority or officer under these rules and any
error arising therein from accidental slip or omission, may,
within two years from the date of the order, be corrected by
the Government, authority or officer, as the case may be :
Provided
that no order prejudicial to any person shall be passed unless
he has been given a reasonable opportunity for stating his case.
57.
Copies of permits, licences and leases and annual returns
to be supplied to Government. – (1) A copy of every [reconnaissance
permit, prospecting licence and mining lease] granted or renewed
under these rules shall be supplied by each State Government
within two months of such grant or renewal to the Controller
General, Indian Bureau of Mines and the [Director General, Mines
Safety].
(2)
A consolidated annual return of all [reconnaissance permits,
prospecting licences and mining leases] granted or renewed under
these rules shall also be supplied by each State Government
to the Controller General, Indian Bureau of Mines in such form
as may be specified by him, not later than the 30th
of June following the year to which the return relates. A copy
of such return shall also be supplied by the State Government
to [Director General, Mines Safety] at the same time.
(3)
Every State Government shall send copies of all returns received
by it under sub-rule (1) of rule 19 and clause (i) of sub-rule
(1) of rule 27 to the Controller General, Indian Bureau of Mines
.
58.
Reservation of areas for exploitation in the public sector,
etc. – Omitted.
59.
Availability of area for regrant to be notified. – [(1)
No area –
which
was previously held or which is being held under a reconnaissance
permit or a prospecting licence or a mining lease; or
which
has been reserved by the Government or any local authority for
any purpose other than mining; or
in
respect of which the order granting a permit or licence or lease
has been revoked under sub-rule (1) of rule 7A or sub-rule(1)
of rule15 or sub-rule(1) of rule 31, as the case may be; or
in
respect of which a notification has been issued under the sub-section
(2) or sub-section (4) of Section 17; or
which
has been reserved by the State Government under Section 17A
of the Act
shall
be available for grant unless –
(i)
an entry to the effect that the area is available for grant
is made in the register referred to in sub-rule (2) of rule
7D or sub-rule (2) of rule 21 or sub-rule (2) of rule 40 as
the case may be; and
(ii)
the availability of the area for grant is notified in the Official
Gazette and specifying a date (being a date not earlier than
thirty days from the date of the publication of such notification
in the Official Gazette) from which such area shall be available
for grant:
Provided
that nothing in this rule shall apply to the renewal of a lease
in favour of the original lessee or his legal heirs notwithstanding
the fact that the lease has already expired:
Provided
further that where an area reserved under rule 58 or under section
17A of the Act is proposed to be granted to a Government Company,
no notification under clause (ii) shall be required to be issued:
Provided
also that where an area held under a reconnaissance permit or
a prospecting licence, as the case may be, is granted in terms
of sub-section(1) of section 11, no notification under clause
(ii) shall be required to be issued.].
(2)
The Central Government may, for reasons to be recorded in writing,
relax the provisions of sub-rule (1) in any special case.
60.
Premature applications. – Application for the grant of
a [reconnaissance permit, prospecting licence or mining lease]
in respect of areas whose availability for grant is required
to be notified under rule 59 shall, if -
(a)
no notification has been issued, under that rule ; or
[(b)
where any such notification has been issued, the period specified
in the notification has not expired, shall be deemed to be premature
and shall not be entertained.].
[61.
Lessor to supply certain information to the lessee. –
Where any area has previously been held under a reconnaissance
permit or prospecting licence or mining lease, the person who
was granted such permit or licence or lease shall make available
to the new permit holder or licensee or lessee the original
or certified copies of all plans of abandoned workings in that
area and in a belt preferably 60 metres surrounding it.].
62.
Change of name, nationality, etc to be intimated. – (1)
An applicant for, or the holder of a [reconnaissance permit,
a prospecting licence or a mining lease] shall intimate to the
State Government within sixty days any change that may take
place in his name, nationality or other particulars mentioned
in the relevant Forms .
[(2)
If the holder of a reconnaissance permit or a prospecting licence
or a mining lease fails, without sufficient cause, to furnish
the information referred to in sub-rule(1), the State Government
may determine the reconnaissance permit or prospecting licence
or mining lease, as the case may be:
Provided
that no such order shall be made without giving the permit holder
or the licensee or the lessee, as the case may be, a reasonable
opportunity of stating his case.].
63.
Previous approval of the Central Government to be obtained
through State Government. – Where in any case previous approval
of the Central Government is required under the Act or these
rules, the application for such approval shall be made to the
Central Government through the State Government .
63A.
The State Government shall dispose of the application for grant
of reconnaissance permit, prospecting license or mining lease
in the following period:
a)
Reconnaissance Permit – within six months from the date
of receipt of the application for reconnaissance permit under
rule 4A.
b)
Prospecting License-within nine months from the date
of receipt of the application for prospecting license under
rule 10.
c)
Mining Lease-within twelve months from the date of receipt
of the application for mining lease under rule 22:
Provided
that the aforesaid periods shall be applicable only if the application
for reconnaissance permit, prospecting license or mining lease,
as the case may be, is complete in all respects;
Provided
further that the disposal by the State Government in case of
minerals listed in the First Schedule to the Act shall mean
either recommendation to the Central Government for grant of
the mineral concession, or refusal to grant the mineral concession
by the State Government under rule 5 for reconnaissance permit,
rule 12 for prospecting license and rule 26 for mining lease,
and in all other cases, disposal shall mean either intimation
regarding grant of precise area, or refusal to grant the mineral
concession under rule 5 for reconnaissance permit, rule 12 for
prospecting license and rule 26 for mining lease;
Provided
also that in case the State Government is not able to dispose
of the application for grant of reconnaissance permit, prospecting
license or mining lease within the period as specified above,
the reasons for the delay shall be given in writing;
64.
How the fees and deposit to be made. – Any amount payable
under the Act or these rules except that payable in respect
of revision petition under sub-rule (1) of rule 54, shall be
paid in such manner as the State Government may specify in this
behalf .
64A.
The State Government may, without prejudice to the provisions
contained in the Act or any other rule in these rules, charge
simple interest at the rate of twenty four percent per annum
on any rent, royalty or fee other than the fee payable under
sub-rule (1) of rule 54 or other sum due to that Government
under the Act or these rules or under the terms and conditions
of any prospecting licence or mining lease from the sixtieth
day of the expiry of the date fixed by that Government for payment
of such royalty, rent, fee or other sum and until payment of
such royalty, rent, fee or other sum is made.
64B.
Charging of Royalty in case of minerals subjected to processing:-
(1)
In case of processing of run-of-mine mineral is carried
out within the leased area, then royalty shall be chargeable
on the processed mineral removed from the leased area.
(2)
In case run-of mine mineral is removed from the leased
area to a processing plant which is located outside the leased
area, then, royalty shall be chargeable on the unprocessed run-of-mine
mineral and not on the processed product.
64C.
Royalty on tailings or rejects:- On removal of tailings
or rejects from the leased area for dumping and not for sale
or consumption, outside leased area such tailings or rejects
shall not be liable for payment of royalty:
Provided that in case so dumped tailings or rejects are
used for sale or consumption on any later date after the date
of such dumping, then, such tailings or rejects shall be liable
for payment of royalty.
64D.
Guidelines for computing royalty on minerals on ad valorem basis:-
Every mine owner, his agent, manager, employee, contractor
or sub-lessee shall follow the following Guidelines for computation
of the amount of royalty on minerals where the royalty is charged
on ad valorem basis, namely:-
Guidelines:
The
Guidelines for calculation of royalty in typical cases are as
follows, namely:-
Case 1:
All non atomic and non fuel minerals and minerals other
than aluminium, primary gold, silver, copper, lead, zinc, nickel
and tin –
The
Indian Bureau of Mines publishes ‘Monthly Statistics of Mineral
Production’ which contains state-wise total value of each mineral
produced during a month in a State. The State-wise average value
for different individual minerals as published by Indian Bureau
of mines in the ‘Monthly Statistics of Mineral Production’ shall
be the bench mark for computation of royalty by the concerned
State Government in respect of any mineral produced any time
during a month in any mine in that State. For the purpose of
computation of royalty the State Government shall add twenty
per cent to this bench mark value. This value shall be reckoned
to be the sale price for the purpose of computation of royalty.
Also the value of the minerals published in the latest published
issue of the ‘Monthly Production’ will be deemed to be applicable
for the mineral mined in the previous month, irrespective of
when the royalty actually accrues. If for a particular mineral,
the information for a State is not published in a particular
issue, the last information available for that mineral in the
State in a previous issue shall be referred, failing which the
latest published information for the mineral for all India shall
be referred.
Case
2. For Atomic minerals, prescribed under Atomic Energy Act,
1962(33 of 1962):
The
minerals under this category include ilmenite, leucoxene, rutile
and zircon obtained mainly from the beach sand deposits in the
coastal states. The basis of collection of royalty shall be
the actual mineral content in the beach sand mined.
(a)
In case of sale in the domestic market, the per tonne
sale price of the separated mineral actually realized, less
the cost of transportation from the lease boundary to point
of sale as shown by the mine owners in their sale vouchers or
bills or invoices shall be considered for computing ad valorem
royalty. To avoid payment of taxes on royalty the mine owners
in their own interest record the price and royalty separately
in the sale vouchers or bills or invoices instead of indicating
a composite price inclusive of royalty. In case the price, royalty
and transportation cost are not shown separately it shall be
assumed that the price indicated in the sale vouchers or bills
or invoices is exclusive of royalty and transportation cost,
and royalty shall be charged accordingly.
(b)
In case of direct export by mine owners the sale value
for the purpose of royalty shall ordinarily be the free on board
(FOB) price realized less transportation charges from the lease
boundary to the port, loading and unloading charges at the port,
port charges (including sampling and analysis and demurrage
charges, if any), insurance charges, royalty, taxes and interest
charges on loan for export. However, in case of cost insurance
and freight (CIF) sales, sea freight insurance and cost of unloading
at the destination port shall also be deducted from such price.
For such purposes the mine owner may prepare invoices or bills
indicating the free on board price or cost insurance freight
price as the case may be each of the other charges separately.
Explanation
– For the purposes of calculation of royalty in case of minerals
Produced
in captive mines (other than aluminium, copper, lead zinc, tin,
nickel, gold and silver) and those not actually sold, Case 1.
and 2. shall be applicable.
Case
3 : For aluminium, primary gold, silver, copper, lead, zinc,
nickel and tin -
The
total contained metal in the ore produced during the period
for which the royalty is computed and reported in the statutory
returns under Mineral Conservation and Development Rules, 1988
or recorded in the books of the mine owners shall be considered
for the purposes of computing the royalty in the first place
and then the royalty shall be computed as the percentage of
the average metal prices in the London Metal Exchange (hereinafter
referred to as the LME) for copper, lead, zinc, nickel, silver
and tin and London bullion Market Association price (commonly
known as London price) for gold during the period of computation
of royalty. The foreign exchange rate for conversion of rupee
shall be the selling rate on the date of the period of computation
as published in newspaper namely, The Economic Times. For the
LME prices as well as for London price of the commodity, either
of the following three sources shall be referred to, namely:-
(i)
Non-ferrous Report : Minerals and Metals Review,
28/30,
Anantwadi,
P.O.Box.2749,
Mumbai-400002
(ii)
Metal Bulletin
16,
Lower Marsh,
London,
SE-17 RJ
(iii)
World Metal Statistics; (Monthly or Quarterly Summary),
By
World Bureau of Metal Statistics,
27a
High Street, Ware,
Herts
SG12 9BA,
United
Kingdom
Case
4: For by-product gold and silver –
The guidelines for computation of ad valorem royalty
shall be linked to the total quantity of metal produced and
the LME price for silver and London Bullion Market Association
price (commonly known as London price) for gold as in the case
3 above. However, in this case, the actual final production
of the metal shall be considered instead of the metal content
in the ore produced for the purposes of computing royalty.
65.
Facilities for training of students. – (1) Every owner,
agent or manager of a mine shall permit students of mining and
geological institutions approved by the Central Government to
acquire practical training of the mines and plans operated by
them and provide all necessary facilities required for the training
of such students.
(2)
Application for training from students of institutions teaching
mining or geology should be forwarded to the owner, agent or
manager of a mine through the Principal or Head of the Institution.
Cases of refusal to provide facilities for practical training
by any owner, agent or manager of a mine should be referred
to the Controller General, Indian Bureau of Mines.
66.
Geophysical data to be supplied to the Geological Survey
of India and the Department of Atomic Energy. – (1) A [permit
holder or licensee or lessee] shall furnish -
(a)
all geophysical data relating to prospecting/ mining fields
or engineering and ground water surveys, such as anomaly maps,
sections, plans, structures, contour maps, logging collecting
by him during the course of [reconnaissance or prospecting or
mining] operations to the Director General, Geological Survey
of India, Calcutta and the Director of Geology and Mining of
the State in which the [reconnaissance or prospecting or mining]
operations are carried on.
(b)
all information pertaining to investigations of atomic minerals
collected by him during the course of [reconnaissance or prospecting
or mining] operations to the [Director, Atomic Minerals Directorate
for Exploration and Research, Hyderabad] and to the Director
of Geology and Mining of the State, in which the [reconnaissance
or prospecting or mining] operations are carried on.
(2)
Data or information referred to in sub-rule (1) shall be furnished
every year reckoned from the date of commencement of the period
of the [reconnaissance permit or prospecting licence or mining]
lease.
66A.(1)
Notwithstanding anything contained in the Rules, the holder
of a prospecting licence or mining lease for a mineral other
than a minor mineral shall be free to undertake prospecting/
mining operations also in respect of the atomic minerals, in
the area held by him on the conditions that :
(i)
if in the course of prospecting / mining operations, he discovers
any atomic mineral/minerals, he shall within sixty days from
the date of discovery of such minerals report the fact of such
discovery to the Director, [Atomic Minerals Directorate for
Exploration and Research, Hyderabad] and the Director of Geology
and Mining of the State in which the prospecting or mining operations
are carried on .
[(ii)
that the quantities of atomic minerals recovered incidental
to such prospecting or mining operations shall be collected
and stacked separately and a report to that effect sent to the
Secretary, Department of Atomic Energy, Mumbai and the Director,
Atomic Minerals Directorate for Exploration and Research, Hyderabad
every three months for such further action by the licensee or
lessee as may be directed by the Atomic Minerals Directorate
for Exploration and Research or the Department of Atomic Energy].
[(2)
The licensee or lessee referred to in sub-rule(1) shall be free
to remove and dispose of any quantity of atomic minerals, on
obtaining a licence for that purpose from the Department of
Atomic Energy and on payment of royalty to the State Government];
[(3)
The licensee or lessee referred to in sub-rule (1) shall, within
the period referred to therein, apply to the Secretary, Department
of Atomic Energy, Mumbai, through the State Government, for
grant of a licence to handle the said atomic minerals under
the provisions of the Atomic Energy Act, 1962 (33 of 1962):
Provided
that if in the opinion of the Department of Atomic Energy the
atomic mineral/minerals recovered incidentally to such prospecting/mining
operations is not of economically exploitable grade or the quantity
found is insignificant, it may advise the State Government to
exempt the licensee/lessee from obtaining a separate licence/lease
for/or inclusion of the atomic minerals under these Rules.];
(4)
The provisions of clause (ii) of sub-rule (1) of rule 14 and
clause (b) of sub-rule (1) of rule 27 shall not apply in relation
to atomic minerals .
[(5)
For the purpose of rule 66(1)(b) and this rule, ‘atomic minerals’
means the minerals listed in Part B of the First Schedule to
the Act.].
67.
Lease period. – Where more than one mineral is found
in an area and lease is granted for exploiting two or more minerals,
the period of lease for all minerals shall be co-terminus with
that for which the first lease was originally granted .
68.
Repeal. – On the commencement of these rules, the Mineral
Concession Rules, 1949, shall cease to be in force, except as
regards things, done or omitted to be done before such commencement.
________________________________________________
69. Associated
minerals. – The following shall be the group of associated
minerals for the purposes of section 6 of the Act namely:-
(i)
Apatite, Beryl, Cassiterite, Columbite, Emerald, Felspar, Lepidolite,
Mica, Pitchblende, Quartz, Samarskite. Scheelite, Topaz, Tantalite,
Tourmaline.
(ii)
Iron, Manganese, Titanium, Vanadium and Nickel minerals.
(iii)
Lead, Zinc, Copper, Cadmium, Arsenic, Antimony, Bismuth, Cobalt,
Nickel, Molybdenum and Uranium minerals, and Gold and Silver,
Arsenopyrite, Chalcopyrite Pyrite, Pyrrhotite and Pentlandite.
(iv)
Chromium, Osmiridium, Platinum and Nickel minerals.
(v)
Kyanite, Sillimanite, Corundum, Dumortierite and Topaz
(vi)
Gold, Silver, Tellurium, Selenium and Pyrite..
(vii)
Barytes, Fluorite, Chalcocite, Selenium and minerals of Zinc,
Lead and Silver.
(viii)
Tin and Tungsten minerals.
(ix)
Limestone, Dolomite and Magnesite.
(x)
Ilmenite, Monazite, Zircon, Rutile, [Leucoxene], Garnet and
Sillimanite.
(xi)
Sulphides of copper and iron.
(xii)
Coal, Fireclay and Shale.
(xiii)
Magnetite and Apatite.
(xiv)
Magnesite and Chromite.
(xv)
Talc, Soapstone and Steatite and Dolomite.
(xvi)Celesite,
Phosphatic Nodules, Clay and Gypsum.
70. Sand not
be treated as minor mineral when used for certain purposes.
– Sand shall not be treated as a minor mineral when used
for any of the following purposes, namely:-
(i)
purposes of refractory and manufacture of ceramic;
(ii)
metallurgical purposes;
(iii)
optical purposes;
(iv)
purposes of stowing in coal mines
(v)
for manufacture of silvicrete cement;
(vi)
for manufacture of sodium silicate;
(vii)
for manufacture of pottery and glass.
71.
[ ]
________________________________________________
72. Payment of compensation to owner of
surface rights etc. – [(1) The holder of a reconnaissance
permit or prospecting licence or mining lease shall be liable
to pay to the occupier of the surface of the land over which
he holds the reconnaissance permit or prospecting licence or
mining lease as the case may be, such annual compensation as
may be determined by an officer appointed by the State Government
by notification in this behalf in the manner provided in sub-rules
(2) to (4).]
(2) In the case of agricultural land, the
amount of annual compensation shall be worked out on the basis
of the average annual net income from the cultivation of similar
land for the previous three years.
(3) In the case of non-agricultural land,
the amount of annual compensation shall be worked out on the
basis of average annual letting value of similar land for
the previous three years.
(4) The annual compensation referred to in
sub-rule (1) shall be payable on or before such date as may
be specified by the State Government in this behalf.
73. Assessment of compensation for damage.
– [(1) After the termination of a reconnaissance permit
or a prospecting licence or a mining lease, the State Government
shall assess the damage, if any, done to the land by the reconnaissance
or prospecting or mining operations and shall determine the
amount of compensation payable by the permit holder or licensee
or the lessee as the case may be to the occupier of the surface
land];
(2) Every such assessment shall be made within
a period of one year from the date of termination of the [reconnaissance
permit or prospecting licence or mining lease] and shall be
carried out by an officer appointed by the State Government
by notification in this behalf.
74. Issue of notification where prospecting
operations are to be undertaken by the Geological Survey of
India etc. – (1) Where a prospecting operation is to be
undertaken by the Geological Survey of India, the Indian Bureau
of Mines, the Atomic Minerals Division of the Department of
Atomic Energy of the Central Government, the Directorate of
Mining and Geology of any State Government (by whatever name
called), or the Mineral Exploration Corporation Limited, the
State Government shall issue a notification in the official
Gazette giving details of the area, and the period for which
prospecting operations are to be undertaken.
(2) The State Government shall not grant
any prospecting licence or mining lease to any other person
for an area or a part thereof in relation to which a notification
has been issued under sub-rule (1).
(3) The State Government may revoke a notification
issued under sub-rule (1), if the prospecting operations have
been completed before the expiry of the period stated in the
notification.
75. Prospecting or mining operation by State
Governments. – Where a State Government proposes to undertake
prospecting or mining operations of any mineral, it shall issue
a notification in the official Gazette giving details of the
area and the period for which such operations are proposed to
be undertaken.
[Provided that if the State Government fails
to undertake prospecting or mining operation within the period
mentioned in the notification, the notification so issued
shall lapse at the expiry of the said period unless the period
is extended by a fresh notification].
________________________________________________________________________
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|
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SCHEDULE
I
1.
Application for Reconnaissance Permit
Form A
2.
Application for prospecting licence
Form B
3.
Receipt of applications for Prospecting Licence/ Mining
Lease or renewals Form
D
4.
Receipt of application for Reconnaissance Permit
Form D-1
5.
Application for renewal of Prospecting Licence
Form E
6.
Prospecting Licence Deed
Form F
7.
Reconnaissance Permit Deed
Form F-1
8.
Register of applications for Prospecting Licences
Form G
9.
Register of applications for Reconnaissance Permits
Form G-1
10.Register
of Prospecting Licences
Form H
11.Register
of Reconnaissance Permits
Form H-1
12.Application
for Mining Lease
Form I
13.Application
for renewal of Mining Lease
Form J
14.Mining
Lease Deed
Form K
15.Register
of applications for Mining Lease
Form L
16.Register
of Mining Leases
Form M
17.Application
for revision
Form N
18.Model
form for transfer of Mining Lease
Form O
19.Model
Form for transfer of Prospecting Licence
Form
P
SCHEDULE
II
(See
rule 9(2)(a)
Application
fee for prospecting licences
(1)
For first square kilometre or part thereof Rupees
Two hundred and fifty Rupees
(2)
For each additional square kilometre fifty Rupees
------------------------------------------------------------------------------------------------------------
SCHEDULE
III
[See
rule 14(1) (ii) (a) & (b)]
Maximum
quantities of ores and minerals removable
|
Class |
Mineral/ore |
Quantities
that can be carried away without any payment |
Maximum
quantity that can be carried away by payment
of royalty |
|
1 |
2 |
3 |
4 |
|
Class-I |
Asbestos,
graphite, mica, native sulphur, auriferous
rock with visible uranium mineral and uranium
bearing minerals, minerals of rare earths
group, beryl, tentalite, columbite-concentrates
of ores of antimony, arsenic, bismuth, chromium,
copper, lead. nickel, tin, titanium, tungsten,
zinc. |
250
kg |
10
tonnes |
|
Class-II |
Auriferous
rock and gravel containing no visible gold,
metalliferous ores meant for extracting
cadmium, cobalt, mercury, molybdenum, silver,
hellium, vanadium, barytes, bitumen, borax,
corundum, emery, grossularite, felsper,
fluorspar and calcite. |
5
tonnes |
200
tonnes |
|
Class-III |
Uraniferous
rock without visible uranium minerals, metalliferous
ores meant for extracting antimony, arsenic,
bismuth, chromium, copper, lead, nickel,
tin, titanium, tungsten, zinc and compound
ores containing metals of cadmium, cobalt,
mercury, molybdenum, silver, hellium and
vanadium, gypsum, limestone, iron pyrites,
shales, red and yellow ochre, bauxite metalliferous
ores meant for extracting aluminium, iron
and manganese. |
10
tonnes |
200
tonnes |
|
Class-IV |
Limestone,sillimanite,
kyanite, magnesite, serpentine, steatite,
vermiculite, fireclay, kaolin and other
refractory materials, coal and lignite. |
50
tonnes |
200
tonnes |
|
Class-V. |
All
other minerals not specified above |
10
tonnes |
200
tonnes |
SCHEDULE
IV
Omitted
by G.S.R. 1010, dated 15.9.1973
------------------------------------------------------------------------------------------------------------
SCHEDULE
V
Institutions/Banks/Corporations
(See
rule 37)
1.
A Scheduled Bank as defined in clause (e) of Section
2 of the Reserve Bank of India Act, 1934 (2 of 1934).
2.
A Bank specified in column 2 of the First Schedule
to the Banking companies (Acquisition and Transfer
of Undertakings) Act, 1970 (5 of 1970).
3.
A Finance Corporation owned and controlled by a State
Government.
4.
A State Industrial Development Corporation.
5.
Unit Trust or India.
6.
Industrial Finance Corporation of India.
7.
State Trading Corporation of India.
8.
Industrial Credit and Investment Corporation of India.
9.
Life Insurance Corporation of India.
10.
Industrial Development Bank of India.
11.
Industrial Reconstruction Corporation of India Ltd.,
Calcutta.
12.
State Industrial Corporation of Maharashtra.
13.
General Insurance Corporation of India and its four
subsidiaries, viz. (1) Oriental Insurance Co., New
Delhi, (2) New India Assurance Co., Bombay, (3) National
Insurance Co., Calcutta and (4) United Insurance Co,
Madras.
14.
The Export and Import Bank of India.
15.
The National Bank of Agriculture and Rural Development. |
________________________________________________________________________
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