Team Herald
PANJIM: Bowing to the relentless pressure of big daddy mining companies and hand held by Defence Minister Parrikar, dumping of iron ore rejects outside the mining lease areas, the Centre has passed the Mines and Minerals (Development and Regulation) Amendment Act, 2016 (2016 Amendment). The Bill which was passed by the Rajya Sabha last week received Presidential assent on May 6, 2016, and thus becomes a law.
The amendment states that it was also felt necessary to define ‘leased area’ in order to expand the scope of lease area by including therein dumping of mineral rejects.”
This means that mining lease holders are entitled to dump mining waste or rejects from the mine in adjacent areas even if such areas may not fall within the area covered by the mining lease, subject to necessary environmental, forest and other clearances. Further, it appears that such dumping may not attract the requirement to pay royalty.
The Supreme Court in its order passed on April 21, 2014, has said that the dumping of iron ore rejects outside the mining lease area as illegal. The amended MMDR Act, 2015 did not include the legislative provision to allow dumping of iron ore rejects outside the mining lease area, which was required for resumption of full-fledged mining operations in Goa.
This is significant since holders of mining lease will now be able to fully exploit the area leased to them by conducting activities to win minerals from the entire area covered under the lease.
From the mining sector point of view, the amendment is significant in that it seeks to address industry concerns which had arisen as a result of the Supreme Court’s decisions in the Karnataka Case and the Goa Foundation Case.
In the Goa Foundation Case, the Supreme Court, among other things, had held that the lessee cannot dump mining rejects or waste outside the ‘leased area’ specified in the mining lease, unless the mining lease specifically allowed it.
In the Karnataka Case, the Supreme Court had held that dumping mining waste was included in the term ‘mining operations’ and therefore such activity could take place outside the ‘leased area’.
Explaining the situation, Claude Alvares of Goa Foundation said, “The two Supreme Court judgments declared all mine dumping outside lease areas as illegal. Dumping outside the lease area is done because if the entire area is mineralised, existing regulations do not allow for dumping on such areas under the assumption that such dumping will prevent access to the minerals under the dump. After the two judgments, no mining plan could be approved based on dumping outside the lease area, therefore it became very difficult to approve mining plans.”
The Act also amends Section 12A on transfer of mining leases. The Act allowed the transfer of mineral concessions only for such concessions which had been granted through auction.
While the Act already provided for transfer of mining leases, the 2016 Amendment provides that captive mining leases where the entire quantity of mineral extracted is used in the manufacturing unit owned by the lessee and which were granted otherwise than through auction, would be transferable with prior State government approval.
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Amendment done at instance of mining lobby — Claude Alvares
REACTION: “The present amendment has been done at the instance of the mining lobby which shows that it can influence the Central government since it has ample resources at its command. It would have been easier to amend the regulations and allow dumping on mineralised areas within the lease. At the moment there are hundreds of such dumps. The amendment will enable more such dumps to be created. There will be no pressure or incentive to bring it back and fill up the mining pit, once the ore is exhausted. Therefore, the amendment is unsound and will lead to the further degradation of the mining belt.”
HURDLES: If it is a non-lease area the government will have to issue a fresh lease order. If the area to be dumped is in forest lease holders will have to get environment and forest clearance and get the land converted from the TCP as well as from the Regional Plan for industrial purposes.
CLAUDE’S SOLUTION: No mine should be allowed to be as extensive as the lease. Mining lease should be divided into two. In one part, mineral is extracted. On the other part waste is dumped. When the extraction is complete, waste can be used to fill the exhausted pit and work can begin on the mineralised area which was under the earlier dump.
