New Delhi: In a pioneering step in direction of enhancing the mining sector, Karnataka and Rajasthan have commenced the public sale of Exploration Licences (EL) for important and deep-seated minerals on March 6, 2024. Karnataka has put up for public sale one block containing gold, copper, and lithium, whereas Rajasthan has opened bids for 3 blocks comprising uncommon earth components, uncommon metals, and potash minerals.
This important improvement follows the modification of the Mines and Minerals (Improvement and Regulation) Act, 1957, by means of the MMDR Modification Act, 2023, which got here into impact on August 17, 2023. The modification launched a brand new mineral concession of exploration licence for 29 important and deep-seated minerals, aiming to boost exploration and mining actions inside the nation.
Vital and deep-seated minerals akin to cobalt, lithium, nickel, gold, silver, and copper, recognized for his or her difficult exploration and mining processes, are actually accessible for reconnaissance and prospecting operations underneath the newly established Exploration Licence. The Central Authorities additional supported this initiative by amending the principles on January 21, 2024.
The exploration licence is designed to draw Junior Mining Firms worldwide, bringing in international experience in knowledge acquisition, processing, and interpretation. This transfer is anticipated to bolster the invention of deep-seated mineral deposits by means of using superior applied sciences and experience.
On the 2nd Mining Ministers’ Convention in Bhopal on January 22, 2024, Union minister of mines, coal, and parliamentary affairs Pralhad Joshi, handed over 20 exploration licence blocks to numerous Indian states and union territories. These blocks comprise a various vary of minerals, together with tin, tungsten, uncommon earth components, and lithium, amongst others.
To expedite the public sale course of, each the state and central governments have collaborated carefully, with the central authorities granting needed approvals and circulating a mannequin tender doc on March 1, 2024. Karnataka and Rajasthan have grow to be the primary states to inform the public sale of exploration licences, with Andhra Pradesh, Chhattisgarh, Madhya Pradesh, and Maharashtra anticipated to observe go well with shortly.
The exploration licence holders are tasked with exploring the blocks to establish potential mining lease areas. These blocks, as soon as explored, could be straight auctioned for mining leases, doubtlessly rising the income for state governments. The public sale course of includes reverse bidding, the place the popular bidder is chosen primarily based on the bottom proportion bid of the public sale premium payable by the longer term mining lease holder.
