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.India produces 95 minerals, including:

  • Four fuel-related minerals.
  • Ten metallic minerals.
  • 23 non-metallic minerals.
  • Three atomic minerals.
  • 55 minor minerals (including building and other minerals).

Globally, India is ranked as one of the leading producers of valuable minerals such as chromite, iron ore, coal and bauxite.

 

Minerals are classified into minor minerals and major minerals. Minor minerals include building stones, gravel, ordinary clay, ordinary sand and other minerals that the central government declares to be a minor mineral.

 

Minerals that cannot be categorised as minor minerals are considered to be major minerals and include coal, manganese ore and iron ore, as well as other minerals used for industrial purposes.

The mining sector in India is highly regulated and the following laws govern this industry.

  • The Mineral Laws (Amendment) Act 2020. This amends the Mines and Minerals (Development and Regulation) Act 1957 (MMDR Act) and the Coal Mines (Special Provisions) Act 2015 (CMSPA). The amendments to the MMDR Act, among other things:
    • enables State governments to take advance actions for the auction of a mining lease before its expiry;
    • provides for approvals, licences and clearances of the previous lessee to be automatically transferred to the new lessee for a period of two years from the date of grant of the new lease; and
    • allows holders of a non-exclusive reconnaissance permit to apply for other licences.

The amendments to the CMSPA are aimed at boosting coal production and reducing dependencies on imports. Companies with no coal mining or other mining experience can participate in auctions of coal blocks. Further, the amendment removes end-use restrictions on companies producing coal under the CMSPA. The amended provisions, therefore, allow for wider participation in the auction of coal mines for a variety of purposes (such as own consumption or for any other purpose specified by the central government).

We provide legal counsel in the following areas:

·      Royalty and mineral lease agreements :

·      Litigation & Dispute Resolution