Lok Sabha passes mines and minerals amendment to up private sector role

The Lok Sabha on Friday passed the mines and mineral amendment bill which seeks to open up mining of deep-seated and critical minerals for the private sector.

The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, also empowers the central government to exclusively auction mining lease and composite licence for certain critical minerals.

Deep-seated minerals include gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, diamonds, etc, which are difficult and expensive to explore and mine as compared to surfacial or bulk minerals.

"Thus share of deep-seated minerals in total mineral production is meagre at present. The country is mostly dependent on imports of these minerals. The proposed exploration licence would facilitate, encourage and incentivize private sector participation in all spheres of mineral exploration for critical and deep-seated minerals," according to the statement of objects and reasons of the Bill.

 

Union Minister for Coal and Mines Pralhad Joshi piloted the bill in the Lok Sabha amid continuous slogan shouting by opposition members over the Manipur issue.

The amendments in the bill will be a game changer. So far we were granting only 2 kinds of licences -- composite and mining licence. Now we have brought in exploration licence through transparent auction route," Joshi said.

The minister further said India will produce 1 billion tonnes of coal this year which will make the country self-sufficient in the energy sector.

"Earlier we were talking only about coal imports, now we are thinking that by 2025-26 we will stop import of thermal coal," he added.

The minister also informed the House that the mining of beach sand minerals will be reserved for public sector undertakings.

Beach sand minerals include ilmenite, rutile, leucoxene, garnet, monazite, zircon and sillimanite.

The bill was later passed by voice vote amid the din.