Tantalum Deposits

About the Mines and Minerals (Development and Regulation) Act, 1957

Introduction: The Mines and Minerals (Development and Regulation) Act (MMDR Act) was introduced by the Government of India in 1957.

Purpose: The Act was designed to manage and control the exploration and exploitation of minerals in India. It provided a regulatory framework for issuing mining leases and overseeing mining operations.

Key Provisions:

1. Mining Leases: The Act established regulations for granting mining leases to individuals and companies.
2. Control and Regulation: It set out guidelines to control and regulate mining activities to ensure orderly development and prevent environmental degradation.

Amendments:

1. Reason for Amendments: Due to evolving circumstances and requirements in the mining sector, amendments to the Act have been deemed necessary over time.
2. Purpose of Amendments: These amendments aim to address contemporary issues, improve regulatory processes, and align with global best practices.

The MMDR Act has undergone various modifications to adapt to changes in the industry and to address emerging challenges in mineral management and regulation.

Background:

Previous Reforms:

1. 2015 Amendments: Introduced auction-based mineral concession allocation, established District Mineral Foundation (DMF) for affected communities, created National Mineral Exploration Trust (NMET) for exploration, and imposed stricter penalties for illegal mining.
2. 2016 and 2020 Amendments: Addressed specific emergent issues.
3. 2021 Amendments: Removed the distinction between captive and merchant mines, allowed transfer of statutory clearances with lessee changes, and ensured auction for private sector concessions.

Need for Further Reform:

1. Critical Minerals: Increased exploration and mining are needed for critical minerals essential for economic growth and national security. Limited availability and concentration of extraction in specific areas may lead to supply chain vulnerabilities.
2. Global Economy: The future economy will depend on minerals like lithium, graphite, cobalt, titanium, and rare earth elements. India’s commitment to energy transition and achieving net-zero emissions by 2070 highlights the importance of these minerals.

Key Provisions of the Amendment Bill:

1. Omission of Six Minerals from the Atomic Minerals List:
   1. Current Act: Only State agencies are allowed to explore atomic minerals such as lithium, beryllium, titanium, niobium, tantalum, and zirconium.
   2. Amendment Bill: Allows the private sector to explore and mine these minerals. This change aims to increase exploration and production, addressing growing domestic demands and reducing reliance on imports.
2. Exclusive Central Government Authority for Auctioning Critical Minerals:
   1. Current Act: Limited auctioning by State Governments.
   2. Amendment Bill: Empowers the Central Government to exclusively auction mining leases and composite licenses for critical minerals, including molybdenum, rhenium, tungsten, cadmium, indium, gallium, graphite, vanadium, tellurium, selenium, nickel, cobalt, tin, platinum group elements, rare earth elements, and fertilizers like potash and phosphate. Revenue from these auctions will accrue to the State Governments.
3. Introduction of Exploration Licenses for Deep-Seated and Critical Minerals:
   1. Current Act: No specific provisions for deep-seated minerals.
   2. Amendment Bill: Introduces a new Exploration License (EL) for reconnaissance and prospecting of deep-seated and critical minerals. The EL will cover minerals such as copper, gold, silver, diamond, lithium, cobalt, molybdenum, lead, zinc, cadmium, rare earth elements, graphite, vanadium, nickel, tin, tellurium, selenium, indium, rock phosphate, apatite, potash, rhenium, tungsten, and platinum group elements.
      • Auction Process: The preferred bidder for the exploration license will be selected through reverse bidding based on the share of auction premium payable by the mining lease holder.
      • Impact: Expected to attract foreign direct investment (FDI) and junior mining companies, facilitating advanced technology and expertise in mineral exploration.

Expected Outcomes:

• Enhanced Exploration and Production: The amendments are expected to significantly boost the exploration and mining of critical and deep-seated minerals in India.
• Increased FDI and Private Sector Involvement: By creating a conducive legal environment, the Bill aims to attract more foreign investment and junior mining companies.
• Improved Revenue Generation: The new auction and exploration licensing mechanisms are anticipated to enhance revenue for State Governments and support national economic growth and technological advancement.

Sl. No.

Field season

State

District

Name of Mineral Block / Area / Belt

UNFC Stage

Mineral Commodity

1

2020-21

Gujarat

Sabarkantha

Nadri

G3

Tin, Tungsten, Tantalum, Niobium

2

2021-22

Arunachal Pradesh

East Kameng

Seppa

G4

Tantalum, Cesium

3

2023-24

Rajasthan

Alwar

Dadikar, Harsora and Khairthal

G4

REE, RM, Tungsten, Tin, Niobium, Beryllium, Tantalum, Hafnium

4

2024-25

Chhattisgarh

Gaurella-Pendra-Murmur & Korba

Uran- KotmiKhurd

G4

Niobium, Tantalum, REE, lithium

5

Bihar

Jamui

Kairi-Jhura-Murbaro

G4

Lithium, Niobium, Tantalum and associated strategic minerals (REE, Rare Metals)

6

Karnataka

Chitradurga

Chikjajur-Janakal

G4

Lithium, Cesium, Niobium, Tantalum, Tungsten