What is the Mines and Minerals (Development and Regulation) Amendment Bill, 2023?

It was on July 26 that the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 was presented in the Lok Sabha. The Bill seeks to make changes to the Mines and Minerals (Development and Regulation) Act of 1957. This act oversees the mining sector of the country.

For the purpose of regulating the mining sector, the Act bifurcates the activities related to mining into three broad categories. 

These categories are:

• Reconnaissance. This deals with a preliminary survey that helps in determining mineral resources.
• Prospecting. This involves exploring, fetching, and proving mineral deposits.
• Mining.  This is clearly the commercial act of extracting minerals.

Let us understand the three categories, one by one.

Reconnaissance:

The Act states the meaning of reconnaissance acts as the operations that are undertaken for the purpose of preliminary prospecting. Such acts include aerial surveys, along with geochemical and geophysical surveys. Geological mapping is also one such activity. The Act does not allow drilling, pitting, sub-surface excavation, and trenching. The Bill, however, allows these prohibited acts.

Exploration: 

The Act offers concessions such as a reconnaissance permit for reconnaissance, a mining lease, a prospecting license, and a composite license. The Bill brings forward an exploration license that authorizes either prospecting or reconnaissance or even both activities in case of specified minerals.

Auction for the exploration license

The state government is going to grant the exploration license via competitive bidding. Details like the way of auction and the terms and conditions will be prescribed by the central government.

Maximum area in which the acts are allowed

As per the Act, activities in a region up to 25 square kilometers are allowed through a prospecting license. Activities for an area of 5,000 square kilometers are allowed in a single reconnaissance permit. 

Under a single exploration license, the Bill allows for activities in an area of 1,000 square kilometers.