Mines ministry sets directions for 2020 lease auction process

In Goa, initially around 174 leases had been identified for auction in 2020. However, with Supreme Court on February 7 having quashed second renewals granted to 88 mining leases, these too will be eligible for auction

PANJIM: In a bid to ensure that there is no disruption in mineral production, the Union Mines Ministry has asked iron ore mining lease holders, whose leases are to expire in March 2020, to undertake exploration of their potentially mineralised area before April 1, 2019 as a part of Final Mining Closure Plan (FMCP). 
In Goa, initially around 174 leases had been identified for auction in 2020.  However, with Supreme Court on February 7 having quashed second renewals granted to 88 mining leases, these too will be eligible for auction. 
In a letter to the State government, Union Mines Ministry joint secretary Niranjan K Singh said that non-captive mining leases under Section 8A (6) of the Mines and Minerals (Development and Regulation) Act (MMDR) will expire on March 31, 2020. “To ensure that there is no disruption in the production in the mineral sector, it is important that these expiring mining leases are timely put up for auction, for which the exploration of the blocks is to be completed,” the Ministry said. 
In order to achieve this, the Ministry has amended the Mineral Conservation and Development Rules (MCDR) via notification dated March 27, 2018, making it mandatory for the lessees of mining leases covered under the MMDR Act, where the date of expiry of mineralised areas as per Rule 5 (a) of the Mineral (Evidence of Mineral Contents) Rules, 2015, before April 1, 2019. 
“Your are requested to kindly ensure that the timelines stipulated by the MCDR (amendment) Rules, 2018, for various activities such as submission of modified mining plan to carry out G2 level exploration and its approval, completion of G2 level exploration before April 1, 2019, preparation and submission of Geological Study Report are adhered,” the Ministry said. 
The exploration plan has to be prepared with the approval of Indian Bureau of Mines (IBM) for satisfying the requirements and timelines. The Ministry said that the submissions will help in preparing the expiring mining leases for auction in a time bound manner and also give preferred bidders the time to obtain various statutory clearances before commencing mining operations. 
The Union Mines Ministry has identified 88 blocks for auction till 2020, of which 33 blocks have already been auctioned.

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