Balaton Power Inc BPWRF

RE: India's new Mining Law

[Matt417]

I don't believe anything has passed yet, they are still talking:

Centre likely to include 'value addition' clause in MMDR Bill
BS Reporter/Kolkata/ Bhubaneswar 10 Jan 11 | 12:46 AM

The Centre is likely to include the value addition clause in the proposed Mines & Minerals (Development & Regulation) Bill-2010.

This was indicated by the Union finance minister Pranab Mukherjee.

"I have received the recommendation of the Orissa government on the value addition clause. We are in consultation with the mineral rich states in this connection and their suggestions will be factored in the new Mineral Policy", he told reporters here on the sidelines of the 10th edition of the Foundation Day Lecture of National Aluminium Company (Nalco).

Mukherjee is heading the Empowered Group of Ministers which is finalizing the MMDR Bill-2010.

It may be noted that the demand for value addition was made by the Orissa Chief Minister Naveen Patnaik during his meeting with the Union finance minister in New Delhi on December 24, 2010.

"Value addition should be recognized as the main consideration for grant of mineral concessions for direct applications. Competitive bidding should be the general methodology for grant of limited natural resources since this will ensure transparent mechanism and maximum gains to the state and the community", Patnaik said during the meeting.

"The financial bid component of competitive offers should provide due consideration for the value of mineral property to the advantage of the state. In addition, the state government should have the power to restrict grant of concessions keeping in view the total availability and future utilization", he added.

For Scheduled Areas, predominantly inhabited by tribals, there should be a special provision for their rapid development as these areas paradoxically continue to remain the most backward in spite of the presence of abundant mineral resources.Patnaik argued that a provision of reservation of mineral bearing areas for state PSUs should be considered to meet the needs of the mineral based industries in the state.

The Union finance minister appreciated the concerns brought out by Patnaik and assured that all the issues will receive serious consideration of the Empowered Group of Ministers to protect the interests of Orissa and other mineral bearing states.

Pointing out that in the petroleum sector, allocation is done through competitive global bidding and the Government of India is thinking of allocating coal blocks on the basis of competitive bidding, the state government had suggested that the same practice must be extended to precious mineral ores like iron ore, bauxite and chrome ore.

This apart, it pleaded that the Royalty Commission should be empowered to fix royalty rates for different minerals instead of making mere recommendations to the Government of India.

While welcoming the proposal in the MMDR Bill-2010 making it mandatory for the miners to share 26 per cent of their profits with the affected people, Patnaik said, a Local Community Development Fund can be constituted for this purpose

The state government was open to setting up of the National Mineral Regulatory Authority (NMRA) on the condition that the regulator can adjudicate on cases pertaining to mineral concessions and recommendations of prospecting license, it should not be allowed to override on the powers of the state governments. The independent regulator will have the powers to investigate and prosecute miners involved in illegal mining. The regulator is being set up in the wake of alleged increase in illegal mining activities in different states including Orissa.

The state had urged that a monitoring mechanism would ensure that the measures are implemented effectively and the benefits of mining activities percolate to the affected .