Ministry of Mines issued a notification on June 6, 2024, introducing the Offshore Areas (Existence of Mineral Resources) Rules, 2024, exercising authority from the Offshore Areas Mineral (Development and Regulation) Act, 2002. These rules govern all minerals except mineral oils and hydrocarbons and those specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957. The rules outline the criteria for determining the existence of mineral resources for both production lease and composite license grants. They also establish definitions for exploration stages, feasibility studies, and economic viability, along with geological parameters for exploration and reporting standards for mineral resources and reserves. Additionally, the rules allow for relaxation of exploration norms based on local geological conditions, subject to central government approval. The notification also includes detailed schedules outlining exploration norms for different types of deposits and minerals, reporting standards, and a format for submitting proposals for auctioning areas for composite licenses.
MINISTRY OF MINES
NOTIFICATION
New Delhi, the 6th June, 2024
G.S.R. 315(E).—In exercise of the powers conferred by section 35 of the Offshore Areas Mineral (Development and Regulation) Act, 2002 (17 of 2003), the Central Government hereby makes the following rules, namely:—
1. Short title and commencement.—(1) These rules may be called the Offshore Areas (Existence of Mineral Resources) Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. Application.—These rules shall apply to all minerals except —
(i) mineral oils and hydrocarbons described in sub-section (1) of section 3 of the Act;
(ii) minerals specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957) (having grade equal to or greater than the threshold value as notified by the Central Government from time to time).
3. Definitions.— (1) In these rules, unless the context otherwise requires,—
(a) “Act” means the Offshore Areas Mineral (Development and Regulation) Act, 2002 (17 of 2003);
(b) “conforming” means conforming to the parameters specified in Schedule I as near as circumstances of each case may require;
(c) “existence of mineral resources” means the existence of mineral resources established as specified in rule 4, or rule 5, as the case may be;
(d) “threshold value of minerals” means the limits specified by the Indian Bureau of Mines from time to time based on the beneficiability and marketability of a mineral for a given area and given time, below which the material obtained after mining may be discarded as waste;
(e) “Schedule” means a Schedule annexed to these rules;
(f) the expressions Reconnaissance Survey (G4), Preliminary Exploration (G3), General Exploration (G2), Detailed Exploration (G1), Reconnaissance Mineral Resource (334), Inferred Mineral Resource (333), Indicated Mineral Resource (332), Measured Mineral Resource (331), Probable Mineral Reserve (121 and 122), Proved Mineral Reserve (111), Feasibility Mineral Resource (211), Pre-Feasibility Mineral Resource (221 and 222), Modifying Factors, Geological Study (F3), Pre-Feasibility Study (F2), Feasibility Study (F1), Intrinsically Economic (E3), Potentially Economic (E2) and Economic (E1) shall have the meanings as assigned to them in Part-I of Schedule-I.
(2) The words and expressions used in these rules, but not defined, shall have the same meanings, as assigned to them in the Act or the rules made thereunder.
4. Existence of mineral resources for grant of production lease.—An area shall be considered to be having existence of mineral resources in accordance with the second proviso of section 6 and sub-section (1) of section 13 of the Act for auction to grant production lease, if in respect of such area,—
(a) at least General Exploration (G2) has been completed to establish Indicated Mineral Resource (332); and
(b) a geological study report has been prepared conforming to Part IV of Schedule- I.
5. Existence of mineral resources for grant of composite licence.— (1) An area may be notified for auction to grant a composite licence in terms of section 12 of the Act, if, in respect of such area,—
(a) at least Reconnaissance Survey (G4) has been completed to estimate Reconnaissance Mineral Resource (334) or mineral potentiality of the mineral block has been identified based on the available geoscience data but resources are yet to be established; and
(b) a geological study report has been prepared conforming to Part IV of Schedule-I.
(2) Any person intending to obtain composite licence in respect of an area may submit a proposal to the administering authority in accordance with the provisions of section 12 of the Act in the format specified in Schedule-II along with available geoscience data and for the purpose to notify the area for auction to grant a composite licence.
(3) In order to identify mineral potentiality of an area based on the available geoscience data where resources are yet to be established as referred in clause (a) of sub-rule (1), including in any area proposed by any person under sub-rule (2), the administering authority shall place it before a committee consisting of the following members, namely:—
(a) administering authority – Convenor;
(b) Deputy Director General of Geological Survey of India (Marine and Coastal Survey Division) – Member;
(c) Chief Mining Geologist, Indian Bureau of Mines –
(4) On being satisfied of mineral potentiality of the area, the committee may recommend the area for notification for auction with such alteration in it as may be required or may reject it.
(5) The committee shall recommend or reject the proposal within a period of sixty days of its receipt by the administering authority and thereafter the administering authority shall notify the recommended area as suitable for auction within a period of sixty days of such recommendation.
(6) On completion of exploration operations under sub-section (3) and sub-section (5) of section 12 of the Act, geological study report shall be prepared by the licensee in accordance with the parameters specified in rule 4, which shall include at least a Pre-Feasibility Study Report to establish Probable Mineral Reserve (121 or 122) conforming to Part V of Schedule-I.
6. Relaxation.—Depending upon the local geological setup, mode of occurrence and nature of mineralisation, the administering authority, with the previous approval of the Central Government, may relax the exploration norms as specified in Part-III of Schedule-I, in whole or in part for any mineral or any area.
SCHEDULE-I
[See rules 3, 4, 5, 6]
The terms used, pertaining to levels of exploration and the category of resources and reserves achieved through various levels of exploration have been defined in Part-I of the Schedule-I. The parameters for establishing the existence of mineral content in an area in terms of quantity and grade have been specified in Part-II, Part-III, Part-IV and Part-V of the Schedule-I.
Part – I Definitions
The definitions and codes used in this Part are proposed following the United Nations Framework Classification (UNFC) and Committee for Mineral Reserves International Reporting Standards (CRIRSCO) Template and have been suitably modified to suit the needs of the country.
(a) Definition of stages of exploration:
The exploration for any mineral deposit involves four stages namely, Reconnaissance Survey (G4), Preliminary Exploration (G3), General Exploration (G2) and Detailed Exploration (G1) and these stages of exploration lead to four resource categories, namely, Reconnaissance Mineral Resource, Inferred Mineral Resource, Indicated Mineral Resource and Measured Mineral Resource respectively reflecting the degree of geological assurance, which are explained as follows:
| Sl. No. | Stages of Exploration | Definition with explanation |
| 1. | Reconnaissance Survey (Exploration) (G4) Quantity with grade estimated mostly based on regional seabed mapping supported by limited subsurface sampling and indirect existence. | Reconnaissance Survey (G4) identifies areas of enhanced mineral potential based primarily on results of regional seabed mapping comprising bathymetric survey, limited sub-bottom profiler, shallow seismic survey, study of wide spaced surface sediment samples and limited subsurface seabed samples for sedimentological and mineralogical data through laboratory studies. |
| 2. | Preliminary Exploration (G3)
Quantity with grade estimated with low level of confidence |
Preliminary Exploration involves the initial delineation of an identified mineral deposit area of previous stage of exploration (G4) by furthering the exploration to extend and identify both laterally and vertically down (third dimension) of the ore body. The methods utilised may involve : detailed bathymetric survey carried out at closer spaced survey lines, close spaced sub-bottom profiler and / or shallow seismic survey, collection of core samples at closer interval, detailed study of samples for particle size distribution and mineral content for delineation of mineral bearing sediment unit both horizontally and vertically, chemical analysis of selected bulk samples for major oxides, trace elements including deleterious elements, REE (rare earth elements). |
| 3. | General Exploration (G2)
Quantity with grade estimated with moderate level of confidence |
General Exploration involves increasing the geological confidence level and understanding style and mode of occurrence of mineralisation. Methods used may include multibeam bathymetric survey / swath bathymetry for detailed morphology of seabed, close spaced sub-bottom profiling and or shallow seismic profiling, sub-seabed sampling with deeper coring/drilling at further closer intervals (spacing may vary for each type of mineral depending upon its depositional characteristics), detailed study of samples for particle size distribution and mineral content for delineation of mineral bearing sediment unit both horizontally and vertically.
Chemical analysis of selected bulk samples for major oxides, trace elements including deleterious elements, REE (rare earth elements) and selected bulk sampling for laboratory scale mineral beneficiation and estimation of mineral reserve if felt necessary. Collection of environmental parameters such as current, waves, wind, water quality, Total Suspended Solids (TSS) etc. The objective is to establish the main geological features of a deposit, giving a reasonable indication of continuity along lateral and vertical (third dimension) extensions which provide an initial estimate of size, shape, structure of mineralised zone, quantity and grade of the mineral deposit. |
| 4. | Detailed Exploration (G1)
Quantity with grade estimated with high level of confidence |
Detailed Exploration involves the detailed three-dimensional delineation of a known mineral deposit which may be achieved through various studies that may include close spaced sub-bottom profiling and / or shallow seismic profiling for detailed sub-sea morphology, close spaced sub-seabed sampling with deeper coring/drilling (spacing may vary for each type of mineral depending upon its depositional characteristics), detailed study of samples with closer subsampling for particle size distribution and mineral content for delineation of mineral bearing sediment unit both horizontally and vertically.
Chemical analysis of selected bulk samples for major oxides, trace elements including deleterious elements, REE (rare earth elements), collection of environmental parameters such as current, waves, wind, water quality, Total Suspended Solids (TSS) etc. Sampling locations are closely spaced such that size, shape, structure, quantity, grade and other relevant characteristics of the deposit are established with a high degree of confidence. Bench scale beneficiation tests involving bulk sampling may be required in certain cases to understand the recovery and any additional by products. |
(b) Definition of stages of feasibility study:
| Sl. No. | Category | Definition with explanation |
| 1. | Geological Study (F3) | A geological study involves reporting of all the exploration activities undertaken during each stage of exploration including the assessment of the mineral resources with quantity and grade. A preliminary economic evaluation of the deposit should be done based on the gathered field data and a comparison with the similar deposits already in operation. This is achieved by applying meaningful threshold values, cut off values for grade, thickness and depth of the mineralised zone. |
| 2. | Pre-Feasibility Study (F2) | Pre-Feasibility Study is the study to demonstrate the possible techno-economic and socio-environmental viability of a mineral deposit through application of various modifying factors wherein a preferred production method has been ascertained including the mineral beneficiation method, if any. The study shall also include a preliminary financial analysis based on reasonable assumptions on the applicable modifying factors and the evaluation of any other relevant factors which are sufficient to convert all or part of the resources to reserves. The study should lead to part or whole of the Mineral Resource being converted to Mineral Reserve. A Pre-Feasibility Study has a lower confidence level than a Feasibility Study (wherein the cost estimates of the project will have +30% degree of accuracy). |
| 3. | Feasibility Study (F1) | Feasibility Study is a detailed comprehensive techno-economic and socio-environmental evaluation of a mineral deposit through application of various modifying factors to establish the technical feasibility, economic and financial viability of a mineral deposit. At this stage the preferred production method, beneficiation technology of the deposit has been adequately established with detailed assessments of the applicable modifying factors, relevant operational factors and detailed financial analysis to demonstrate that extraction is reasonably justified. It is expected that all Governmental clearances to start production operations are already in place at the time of reporting and where such clearances have not been obtained then such clearances are expected to be obtained in due course before commencement of production operation. The study may lead to part or whole of the Mineral Resource being converted to Mineral Reserve. The result of the study may reasonably serve as a basis for final decision by a proponent or financial institution to proceed with or finance the development of the project (wherein the cost estimates of the project will have +20% degree of accuracy). |
| 4. | Modifying Factors | Modifying Factors are those factors which are taken into consideration while conducting a prefeasibility or feasibility study to convert mineral resources to mineral reserves. These include but are not limited to production, processing, end use, cut-off grade, threshold value, metallurgical, infrastructure, economic, marketing, transportation, storage, legal, environmental, social, and Governmental factors. |
(c) Definition of stages of economic viability:
| Sl. No. | Category | Definition with explanation |
| 4. | Intrinsically Economic (E3) | Quantities, reported in tonnes or volume with grade or quality, estimated by means of a Geological Study identified to be of intrinsic economic interest, implying that the resources identified may or may not have any immediate economic value. The economic viability of the resources is further ascertained through a Prefeasibility or feasibility study by application of appropriate modifying factors. The classes defined are Measured, Indicated, Inferred and Reconnaissance Mineral Resources. |
| 5. | Potentially Economic (E2) | Quantities with grade reported by means of a Pre-feasibility (F2) or Feasibility (F1) Study in order of increasing accuracy, not justifying extraction under the prevailing technological, economic, environmental, and other relevant conditions, realistically assumed at the time of the determination, but possibly so in the future. The Potentially Economic (E2) Deposits are normally classified as Pre-feasibility Mineral Resources (F2) but sometimes as Feasibility Mineral Resources (F1) which are upgraded to indicated and measured resources. |
| 6. | Economic (E1) | Quantities with grade identified on the basis of a Prefeasibility or Feasibility Study in order of increasing accuracy that justify extraction under the prevailing techno-economic, socio-environmental and other relevant conditions, realistically assumed at the time of the determination. The classes defined are Proved and Probable Mineral Reserves. |
(d) Definition of classes of mineral resources and reserve:
| 1. | Mineral Resource | Mineral Resource is a concentration or occurrence of solid material in or on the earth’s surface (seabed) for which quantities with grade or quality have been estimated based on certain geological considerations and understanding which may or may not have any immediate or near-term economic value but are assessed for their future prospective value. |
| 2. | Reconnaissance Mineral Resource (334) | Reconnaissance Mineral Resources (334) are estimates of quantity and grade based on indirect existence including data and information generated through a reconnaissance survey, limited surface, and subsurface sampling data from within the exploration block or data extrapolated from nearby production or explored areas as may be required. The quantity and grade estimates have a lower level of confidence than that of inferred mineral resources. |
| 3. | Inferred Mineral Resource (333) | (1) Inferred Mineral Resource is the quantity with grade associated with a mineral deposit which can be estimated with a low level of confidence.
(2) This is achieved through application of appropriate exploration techniques involving widely spaced seabed coring /drilling followed by appropriate sub-sampling and analysis, detailed morphology of seabed, sensor surveys like sub-bottom profiling and/or shallow seismic survey to assume geological continuity of the mineralised body, both laterally and vertically. Certain level of extrapolation beyond the sampling points may be allowed with suitable justification depending upon the type of deposit and its mode of occurrence to understand the ore body. (3) This resource cannot be converted to mineral reserve but may be upgraded to indicated mineral resource with additional information. |
| 4. | Indicated Mineral Resource (332) |
(4) Indicated Mineral Resource is the quantity with grade associated with a mineral deposit which can be estimated with a moderate level of confidence.(5) This is achieved through application of appropriate exploration techniques involving close spaced seabed coring/ drilling than the previous stage and / or shallow drilling, detailed morphology of seabed, closed spaced sensor surveys (sub-bottom profiling and/or shallow seismic survey) having spacing wider than that required for estimation of measured resources which ensures assumption of the geological continuity of the mineralised body, both laterally and vertically. This also includes the laboratory scale beneficiation studies if required to understand the recovery and by-products, if any.(6) Indicated Mineral Resource may be wholly or partly converted to Probable Mineral Reserve through a prefeasibility study by collecting more geological data, detailed economic assessment etc. |
| 5. | Measured Mineral Resource (331) |
(7) Measured Mineral Resource is the quantity with grade associated with a mineral deposit which can be estimated with a very high level of geological confidence.(8) This is achieved through application of appropriate exploration techniques involving sufficiently close spaced seabed coring/ drilling, shallow drilling followed by appropriate sub-sampling and analysis to ensure geological continuity of the mineralised body both laterally and vertically. Bench scale beneficiation studies if necessary, may be taken up to confirm the percentage recoverability with additional minerals, if any recovered.(9) Measured Mineral Resource may be wholly or partly converted to Proved or Probable Mineral Reserve through a feasibility or a prefeasibility study. |
| 6. | Mineral Reserve | Mineral Reserve is the economically mineable part of a Measured and/or Indicated Mineral Resource. It includes diluting materials and allowances for losses, which may occur when the material is mined or extracted. The quantity and grade of the Mineral Reserves is ascertained through suitable prefeasibility or feasibility study by application of appropriate Modifying Factors. |
| 7. | Proved Mineral Reserve (111) | Proved Mineral Reserve is the economically mineable part of a Measured Mineral Resource. The quantity with grade is demonstrated to be economically mineable by means of a feasibility study. A Proved Mineral Reserve implies a high degree of confidence in the Modifying Factors. |
| 8. | Probable Mineral Reserve (121 and 122) | (10) Probable Mineral Reserve is the economically mineable part of an Indicated, and in some circumstances, a Measured Mineral Resource. The quantity with grade is demonstrated to be economically mineable by means of a prefeasibility study.(11) The confidence in the Modifying Factors applying to a Probable Mineral Reserve is lower than that applying to a Proved Mineral Reserve. |
| 9. | Feasibility Mineral Resource (211) |
Feasibility Mineral Resource is that part of Measured Mineral Resource which is not economically mineable and has been defined by studies at feasibility level as appropriate that extraction is presently not justified. This material is identified as being possibly economically viable subject to changes in technological, economic, and environmental or other relevant conditions. |
| 10. | Pre-Feasibility Mineral Resource (221 and 222) | Pre-feasibility Mineral Resource is that part of an Indicated Mineral Resource, and in some circumstances Measured Mineral Resource, which is not economically mineable and has been defined by studies at Pre-feasibility level as not appropriate for extraction at present. This material is identified as being possibly economically viable subject to changes in
technological, economic, and environmental and/or other relevant |
Part-II
Geological Parameters for exploration
| 1. | Geological Survey (Seabed Mapping): On 1:50,000 scale for Reconnaissance Survey (G4) stage in the Territorial Waters; 1:3,00,000 scale in the Exclusive Economic Zone for Reconnaissance Survey (G4) stage beyond Territorial Waters; on 1:50,000 or larger scale for Preliminary Exploration (G3) stage; 1:10,000 or larger scale for General Exploration (G2) stage; on 1:5,000 or larger scale for Detailed Exploration (G1) stage.
Generally, this stage of mapping may involve bathymetry, sub-bottom profiling and /or shallow seismic profiling, seabed surface sampling at wider spacing, limited coring/ drilling of sub-seabed, water sampling, current measurement at Reconnaissance Survey at selected locations (G4) stage; intensification of all or some methods of surveys with closer spacing at Preliminary Exploration (G3) stage based on the results of (G4) stage; multibeam bathymetry / swath bathymetry, sub-bottom profiling / shallow seismic profiling at closer spacing, intensified coring/ shallow drilling of seabed at much closer spacing, bulk sampling, laboratory beneficiation studies, water sampling, current studies in target areas at General Exploration (G2) stage; much closer, deeper investigation with detailed sensor studies, bench level beneficiation at Detailed Exploration (G1) stage. |
| 2. | Technological: Exploration and sampling using appropriate techniques from locations on the seabed. The sampling locations are spaced suitably (in a grid pattern to the extent possible and may be modified depending on seabed morphological features) for establishing existence of mineral rich bodies and its lateral and vertical continuity. Part-III of the Schedule-I may be referred for further details.
For Reconnaissance Survey (G4) stage sampling data from seabed may be used for assessment of resources, if possible. For General (G2) and detailed (G1) stages of exploration the depth continuity of mineralisation may be considered limited to the depth upto which direct existence of mineralisation is established. The lateral extension to be considered for resource assessment shall depend on geological considerations supplemented by geological continuity through mapping or other means and in any case shall not be more than 50% of the grid spacing of the probe points. Assessment based on selected information such as isolated samples and analysis is not recommended. |
| 3. | Sampling and sub-sampling:
(a) Systematically wider spaced grab sampling, limited core sampling and sub-samples from core samples for reconnaissance stage. (b) Systematic sampling from core samples spaced closely enough and limited drill cores to confirm geological and grade continuity for other stages of geological assessment. (c) Geological logging and sampling of sediment core at regular interval, preferably at 1 meter or less for the whole core. (d) The drilling operation in offshore turbulent conditions is very critical and technique to be deployed shall depend on sea condition in general and weather conditions season wise. Core recovery depends upon the drilling equipment and stability of the floating platform. (e) The representative exploration samples, surface samples, cores shall be preserved, for future use. |
| 4. | Laboratory Tests: Chemical analysis of sediment and water samples. |
| 5. | Sedimentological, Petrographic and Mineragraphic Studies: to ascertain the sediment grain size, sediment types, texture and minerals present and their assemblages. |
| 6. | Bulk Density Study: The bulk density, porosity, shear strength, liquidity, compaction etc., must be measured by standard methods for geotechnical properties and slope stability for selected samples. |
| 7. | Bulk Sampling for Beneficiation Studies: Bulk sampling if necessary for testing processing technology. |
| 8. | Marine Environmental Setting: Current, wave, noise levels, deleterious elements if any present in the surface and sub-surface sediments,details about sea water quality, suspended solids, Total Dissolved Solids (TDS), salinity, temperature, Dissolved Oxygen (DO), Biological Oxygen Demand (BOD), Marine Biota etc. and any other data as may be required by the Ministry of Environment, Forest and Climate Change for environmental impact assessment studies may be taken up at G2 Stage of investigation. |
| 9. | Any other data that may be relevant including geotechnical and slope stability studies. |
Part-III
Exploration Norms for different types of deposits and Minerals
Types of Deposits & Principal Minerals
I. Construction Grade Silica Sand (seabed sediments with quantities of construction grade silica sand that occurs on the continental shelf as blanket deposit formed along the palaeo strand plains or as channel fills in drowned rivers, estuaries, etc.).
| G4 Stage | G3 Stage | G2 Stage | G1 Stage |
| (a) Bathymetric map in 1:50,000 scale prepared with single beam echo sounder or spot depth measurement at appropriate intervals and tie lines.
(b) One or more shallow seismic profiles/ sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale. (c) Seabed sampling using grab or any other device at 5 x 5 km grid spacing. (d) Sedimentological/ petrological and mineralogical analysis of the sample to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. (e) Chemical analysis of the bulk sediments/ rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. (f) Synthesis of all available data to identify various (g) The activities as above |
Bathymetric map in 1:50,000 scale prepared with single beam echo sounder measurement at 500 m or lesser intervals and tie lines at appropriate intervals.
Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 2 km interval, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale. Seabed sampling using suitable corer or any other device at 2 X 2 km grid spacing extending to a depth upto at least 4 mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided into 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments /rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. Synthesis of all available The activities as above or |
Multibeam bathymetric survey with seamless coverage having 50% side overlap between adjacent lines. Multibeam Bathymetric map in 1:5,000 scale, Images with MBES (Multi Beam Eco Sounder) backscatter data also to be submitted.Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 1 km interval, presented in a horizontal scale of 1:5,000 and vertical scale of 1:1,000 scale.Seabed sediment / rock sampling using suitable corer or any other device at 1,000 m X 1,000 m grid spacing extending to a depth upto at least 6 mts or till the depth of mineralisation whichever is less.Core samples are to be subdivided into 1 m interval from top.Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range, sediment type and content (weight percentage in bulk sample), nature of occurrence etc.Chemical analysis of the bulk sediments/rock and constituent minerals of economic importance for evaluating the composition of the mineral and its economic worth.Laboratory scale beneficiation studies of sediments/rock for assessing the content of mineral/metal of interest.Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration.The activities as above or less than required for Detailed Exploration (G1) stage. Analysis of samples, exploratory production and preliminary environmental impact assessment studies. |
Multibeam bathymetric survey with seamless coverage having 50% side overlap between adjacent lines.
Bathymetric map in 1:2,500 scale. Images with MBES backscatter data also to be submitted. Shallow seismic profiles /sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 500 m interval, presented in a horizontal scale of 1:2,500 and vertical scale of 1:500 scale. Seabed sediment / rock sampling using suitable corer or any other device at 500 X 500 m grid spacing extending to a depth upto at least 6 mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided in to 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range, sediment type and content (weight percentage in bulk sample), nature of Chemical analysis of the bulk sediments/rock and constituent minerals of economic importance for evaluating the composition of the mineral and its economic worth. Laboratory scale Synthesis of all available |
II. Non-Construction Grade Calcareous Sand (seabed sediments with quantities of calcareous materials like, shell, shell fragments and other biogenic material transported or indigenously formed or chemically precipitated sediments).
| G4 Stage | G3 Stage | G2 Stage | G1 Stage |
| (a) Bathymetric map in 1:50,000 scale prepared with single beam echo sounder or spot depth measurement at appropriate intervals and tie lines.
(b) One or more shallow seismic profiles/ sub (c) Seabed sampling using grab or any other device at 5 x 5 km grid spacing (d) Sedimentological/ petrological and mineralogical analysis of the sample to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. (e) Chemical analysis of the bulk sediments/ rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. (f) Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. (g) The activities as above or less than that required for Preliminary Exploration (G3) stage |
Bathymetric map in 1:50,000 scale prepared with single beam echo sounder measurement at 500 m or lesser intervals and tie lines at appropriate intervals.
Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 2 km interval, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale Seabed sampling using suitable corer or any other device at 2 X 2 km grid spacing extending to a depth upto at least 4 mts or till the depth of ineralisation whichever is less. Core samples are to be subdivided into 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments/rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present in the survey area. The activities as above or less than that required for General Exploration (G2) stage. |
Multibeam bathymetric survey with seamless coverage having 50 % side overlap between adjacent lines. Multibeam Bathymetric map in 1:5,000 scale, Images with MBES backscatter data also to be submitted.
Shallow seismic profiles /sub bottom profiler across the block indicating the Seabed sediment / rock sampling using suitable corer or any other device at 1,000 m X 1,000 m grid spacing extending to a depth upto at least 6mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided into 1 m interval from top. Sedimentological/ Chemical analysis of the bulk sediments /rock and constituent minerals of economic importance for evaluating the composition of the mineral and its Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. The activities as above or less than required for Detailed Exploration (G1) stage. Analysis of samples, exploratory production and preliminary environmental impact assessment studies. |
Multibeam bathymetric survey with seamless coverage having 50% side overlap between adjacent lines. Bathymetric map in 1:2,500 scale, Images with MBES backscatter data also to be submitted.
Shallow seismic profiles/sub bottom profiler across the block indicating the Seabed sediment / rock sampling using suitable corer or any other device at 500 X 500 m grid spacing extending to a depth upto at Core samples are to be subdivided into 1 m interval from top. Sedimentological/ Chemical analysis of the bulk sediments/ rock and constituent minerals of economic importance for evaluating the composition of the mineral and its Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present. |
III. Calcareous Mud also known as Lime Mud(seabed sediments with quantities of loose mud or sand sized calcium carbonate sediments consisting mainly of ooids and minor amounts of skeletal matter and mud aggregates).
| G4 Stage | G3 Stage | G2 Stage | G1 Stage |
| (a) Bathymetric map in 1:50,000 scale prepared with single beam echo sounder or spot depth measurement at appropriate intervals and tie lines.
(b) One or more shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale. (c) Seabed sampling using grab or any other device at 5 x 5 km grid spacing. (d) Sedimentological/ petrological and mineralogical analysis of the sample to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. (e) Chemical analysis of the bulk sediments/ rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. (f) Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. |
Bathymetric map in 1:50,000 scale prepared with single beam echo sounder measurement at 500 m or lesser intervals and tie lines at appropriate intervals.
Shallow seismic profiles /sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 2 km interval, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale. Seabed sampling using suitable corer or any other device at 2 X 2 km grid spacing extending to a depth upto at least 4 mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided into 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments /rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present in the survey area. The activities as above or less than that required for General Exploration (G2) stage. |
Multibeam bathymetric survey with seamless coverage having 50% side overlap between adjacent lines. Multibeam Bathymetric map in 1:5,000 scale, Images with MBES backscatter data also to be submitted.
Shallow seismic profiles /sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 1 km interval, presented in a horizontal scale of 1:5,000 and vertical scale of 1:1,000 scale. Seabed sediment / rock sampling using suitable corer or any other device at 1,000 m X 1,000 m grid spacing extending to a depth upto at least 10 mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided into 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range, sediment type and content (weight percentage in bulk sample), nature of Chemical analysis of the bulk sediments/ rock and constituent minerals of economic importance for evaluating the composition of the mineral and its economic worth. Laboratory scale beneficiation studies of sediments/rock for assessing the content of mineral/metal of interest. Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further The activities as above or less than required for Detailed Exploration (G1) stage. Analysis of samples, exploratory production and preliminary environmental impact assessment studies. |
Seabed sediment / rock sampling using suitable corer or any other device at 500 m X 500 m grid spacing extending to a depth upto at least 10 mts or till the depth of mineralisation whichever is less.
Core samples are to be subdivided into 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range, sediment type and content (weight percentage in bulk sample), nature of Chemical analysis of the bulk sediments /rock and constituent minerals of economic importance for evaluating the composition of the mineral and its economic worth. Laboratory scale beneficiation studies of sediments/rock for assessing the content of mineral/ metal of interest. Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present. |
IV. Phosphatic Sediments (seabed sediments/ concretions/ nodules / encrustations, etc. with P2O5 in them in quantities formed biologically or by precipitation from sea water).
| G4 Stage | G3 Stage | G2 Stage | G1 Stage |
| (a) Bathymetric map in 1:50,000 scale prepared with single beam echo sounder or spot depth measurement at appropriate intervals and tie lines.
(b) One or more shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale. (c) Seabed sampling using grab or any other device at 5 x 5 km grid spacing. (d) Sedimentological/ petrological and mineralogical analysis of the sample to identify various mineral constituents their size range and content (weight Percentage in bulk sample), nature of (e) Chemical analysis of the bulk sediments/ rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. (f) Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. (g) The activities as above or less than that required for Preliminary Exploration (G3) stage. |
Bathymetric map in 1:50,000 scale prepared with single beam echo sounder measurement at 500 m or lesser intervals and tie lines at appropriate intervals.
Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 2 km interval, presented in a horizontal scale of 1:50,000 and vertical scale of 1:10,000 scale. Seabed sampling using suitable corer or any other device at 2 X 2 km grid spacing extending to a depth upto at least 4 mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided into 1 m interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments /rock for major oxides and trace elements/REE to determine whether the sediment is falling in this category. Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present in the survey area. The activities as above or less than that required for General Exploration (G2) stage. |
Multibeam bathymetric survey with seamless coverage having 50% side overlap between adjacent lines. Multibeam Bathymetric map in 1:5,000 scale, Images with MBES backscatter data also to be submitted.
Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 1 km interval, presented in a horizontal scale of 1:5,000 and vertical scale of 1:1,000 scale. Seabed sediment / rock sampling using suitable corer or any other device at 1,000 m X 1,000 m grid spacing extending to a depth upto at least 10 mts or till the depth of mineralisation whichever is less. Core samples are to be subdivided into 50 cm interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range, sediment type and content (weight percentage in bulk Chemical analysis of the bulk sediments /rock and constituent minerals for evaluating the composition of the mineral and its economic worth. Laboratory scale beneficiation studies of sediments/rock for assessing the content of mineral/ metal of interest. Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. The activities as above or less than required for Detailed Exploration (G1) stage. Analysis of samples, exploratory production and preliminary environmental impact assessment studies. |
Seabed sediment / rock sampling using suitable corer or any other device at 500 X 500 m grid spacing extending to a depth upto at least 10 mts or till the depth of mineralisation whichever is less.
Core samples are to be subdivided into 50 cm interval from top. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range, sediment type and content (weight percentage in bulk sample), nature of occurrence etc Chemical analysis of the bulk sediments/ rock and constituent minerals for evaluating the composition of the mineral and its economic worth. Laboratory scale beneficiation studies of sediments \/rock for assessing the content of mineral/metal of interest. Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present. |
V. Deep Sea Minerals, REE (rare earth elements) Minerals, Hydrothermal Minerals/ Iron Manganese Crusts and Nodules (seabed sediments with concentration of metals and minerals formed in the deep sea by chemical precipitation directly from sea water and/or diagenetic process or through hydrothermal solutions emanating from subsea bed in amounts).
| G4 Stage | G3 Stage | G2 Stage | G1 Stage |
| (a) Bathymetric map in 1:50,000 scale prepared with single beam echo sounderor spot depth measurement at appropriate intervals and tie lines.
(b) One or more sub-bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks, presented in a horizontal scale of 1:50,000 and vertical scale of (c) Seabed sampling using grab or any other device at 5 x 5 km grid spacing. (d) Videography at least in 5×5 km at selected locations. (e) Sedimentological/ petrological and mineralogical analysis of the sample to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. (f) Chemical analysis of the bulk sediments/ rock for major oxides and trace elements/REE to determine the mineral occurrence. (g) Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. (h) The activities as above or less than that required for Preliminary Exploration (G3) stage. |
Bathymetric map in 1:50,000 scale prepared with single beam echo sounder measurement at 500 m or lesser interval and tie lines at appropriate interval.
Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 2 km x 2 km interval, presented in a horizontal scale of 1:50,000 and Seabed sampling using suitable corer or any other device at 2×2 km grid spacing extending to a depth upto at least 1 mt or till the depth of mineralisation whichever is less. Videography at least in 2 x 2 km at selected locations. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments/rock for major oxides and trace elements/REE to determine the mineral content. Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present in the survey area. The activities as above or less than that required for General Exploration (G2) stage. |
Multibeam bathymetric survey with seamless coverage having 50% side overlap between adjacent lines. Multibeam Bathymetric map in 1:5,000 scale, Images with MBES backscatter data also to be submitted. The slope map and ruggedness index map are to be prepared in the surveyed area.
Shallow seismic profiles / sub bottom profiler across the block indicating the disposition of subsurface sedimentary units/ rocks at 1 km interval, presented in a Seabed sediment / rock sampling using suitable device at 1,000 m X 1,000 m grid spacing extending to a depth upto at least 1 mt or till the depth of mineralisation whichever is less. Collection of bulk samples by grabbing dredging for beneficiation study/ testing processing technology. Collection of environmental parameters such as current, waves, wind, water quality, TSS etc. Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments/ rock and constituent minerals for evaluating the composition of the mineral and its economic worth. Laboratory scale beneficiation studies of sediments/ rock for assessing the content of mineral/metal of interest. Synthesis of all available data to identify various minerals in the survey areas and their prospective locations for further exploration. The activities as above or less than required for Detailed Exploration (G1) stage. Analysis of samples, exploratory production and preliminary environmental impact assessment studies. |
Gamma ray meter survey at suitable interval to detect buried crust and nodules. Estimation of Fe-Mn crust/nodule coverage per sq.m by suitable methodology.
Seabed sediment / rock sampling using suitable device at 500 X 500 m grid spacing extending to a depth upto at least 1 mt or till the depth of mineralisation whichever is less. Collection of bulk sample by grabbing, dredging for beneficiation study/ testing processing technology. Collection of environmental parameters such as current, waves, wind, water quality, TSS etc. Collection of samples and data on environmental Sedimentological/ petrological and mineralogical analysis of the sediment/ rock to identify various mineral constituents their size range and content (weight percentage in bulk sample), nature of occurrence etc. Chemical analysis of the bulk sediments/rock and constituent minerals for evaluating the composition of the mineral and its economic worth. Laboratory scale beneficiation/extraction of metals, studies of Synthesis of all available data to interpret the nature and quantity/ grade of the minerals present. |
Note: The grid spacings given in this part are indicative. A closer spacing may be necessary depending upon the geological complexity of the deposit.
Part IV
Reporting of Mineral Resources
Standard Template for a Geological Study Report which shall also form a part of the Pre-Feasibility or Feasibility Report
1. A Geological Study Report for estimation and reporting of Mineral Resources integrating all data of exploration, sampling and testing generated through marine geophysical, geochemical, geological surveys, marine environment and technological study shall be undertaken for every stage of exploration, i.e., from G4 to G1 for assessing the resources.
2. Mineral resource assessment is normally a collective effort involving a multidisciplinary approach. It is expected that individuals/ subject matter experts involved in each part of the report preparation are given due credit for that part with proper acknowledgement in the report and also, they are willing to take due responsibility regarding the accuracy and authenticity of that part. However, the final responsibility of the report shall lie with the lead expert or a group of experts who, after proper due diligence of all the parts of the report have arrived at the final estimation of the resources and reserves and are convinced about the methodology and processes followed in arriving at the resource estimates. These experts taking the final responsibility for the report shall be referred to as the qualified persons and shall certify the report by signing off the report with their credentials.
| Sl. No. | Criteria with parameters of reporting | |||||
| 1. | Executive Summary | |||||
| (i) | The executive summary shall include details about the location of the mineral deposit, purpose of the mineral investigation and the stage of the exploration, brief geology, mineralisation, exploration plan with spacing of the sample points, depth of exploration and whether the mineralisation extends beyond the depth of direct existence. Outcome of the exploration studies including the quantity of resources identified with grade and quality under various classes. | |||||
| (ii) | The summary shall also include observation on the issues regarding the future plan or strategy for the deposit including amenability for production of the deposit based on present technological, environmental, social and market conditions. | |||||
| 2. | Details of the Qualified Person(s) / Exploration Agency
(To be provided separately for all the qualified persons signing off the report) |
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| (i) | (f) Name:
(g) Address: (h) Contact Mobile No: (i) E-Mail id: (j) Qualification: (k) Experience: (l) Affiliation to any organisation/ company, if yes, specify the name of the organisation or company: |
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| (ii) | Details of qualification and experience of persons associated with various aspects of exploration assessment of resources and reserves | |||||
| 3. | Title and ownership | |||||
| (i) | Name of the holder of operating right | |||||
| (i) | Address: | |||||
| (ii) | Telephone No: | |||||
| (iii) | E-Mail id: | |||||
| (iv) | Details of period of operating right, if any: | |||||
| (v) | In case of a license or lease: | |||||
| (m) Date of grant:
(n) Date of execution: (o) Period of license or lease: (p) Date of completion: |
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| 4. | Details of the area under Study | |||||
| (iii) | Coast/ Sea | |||||
| (iv) | Offshore Region | |||||
| (v) | Nearest Coastal Location | |||||
| (vi) | Area in sq. km | |||||
| (vii) | Water depth (m) | |||||
| (viii) | Nearest Harbour/Port | |||||
| (i) | Nearest Major Rail Head on land | |||||
| (ix) | Nearest Airport | |||||
| (x) | Name of the nearby village(s) / NHO (Naval Hydrographic Office) Chart No. of the area, Differential Global Positioning System (DGPS) coordinates of all corner points of the area and sampling points in latitude and longitude (Degree Minutes Second) format WGS-84 Datum | |||||
| (xi) | Mineral(s) under investigation or granted under license or lease applied for | |||||
| 5. | Seabed Morphology, Connectivity and Demographic Data (Data to be furnished from the area and nearby coast) |
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| (ii) | Relief of the area / seabed with minimum and maximum water depths | |||||
| (iii) | Biotope map of the seabed showing critical marine habitats such as corals, seagrasses etc., if any. | |||||
| (iv) | Commercial fishing grounds in the area, if any | |||||
| (v) | Flora and Fauna within in the coastal tract and area | |||||
| (vi) | Water bodies such as river, nala, stream, etc., joining the sea nearby | |||||
| (vii) | Climatic conditions of adjacent coastal area:
(a) Temperature (annual) min max Avg |
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| (b) Rain fall (annual) min max Avg
(q) Humidity (annual) min__ max___ Avg |
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| (vii) | Any other physiographic, social and environmental factor having potential to affect the viability of the project and assessment of resources and reserves. | |||||
| 6. | Infrastructure | |||||
| (i) | Local infrastructure with roads, railways, port facilities, fisheries, harbour, electricity, water etc. nearby from the area. Details of nearby industries in the area which may use the mineral commodity likely to be mined. | |||||
| 7. | Geology | |||||
| (xii) | Brief regional geomorphology/seabed morphology of the area outlining the broad geological and structural framework. | |||||
| (xiii) | A discussion on the type of deposit based on the style of mineralisation and minerals under investigation. Suggested exploration / production plan with spacing of the sampling points and depth of exploration commensurate with the stage of exploration. | |||||
| 8. | Previous Exploration | |||||
| (xiv) | Name and address of holder of operating right involved in the exploration of the area with year and period of exploration (if more than one agency is involved details to be given separately for each agency) | |||||
| (xv) | Brief details of the exploration carried out (to be given separately for each agency) | |||||
| (xvi) | Reserves or resources estimated, if any, during the previous exploration campaign with quantity and grade under various categories | |||||
| 9. | Marine geophysical or geochemical data | |||||
| (i) | Details of marine geophysical and geochemical survey taken up and their results. | |||||
| 10. | Exploration undertaken till now | |||||
| (i) | Details of sample points (surface and sub-surface) along with geographical coordinates. | |||||
| (ii) | Data spacing for reporting of exploration results: Whether the data spacing, and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the mineral resource estimation procedure(s) and classifications applied. | |||||
| 11. | Location of data point | |||||
| (i) | Accuracy and quality of surveys used to determine the coordinates of sample points, bathymetric surveys and geophysical surveys used in mineral resource estimation. | |||||
| 12. | Sampling technique | |||||
| (i) | Nature and quality of sampling (grab, core / drill core and water sampling) and measures taken to ensure sample representation. | |||||
| 13. | Coring technique and core sampling employed | |||||
| (xvii) | Corer type (eg. core, gravity corer (gravity core), vibrocorer (vibrocore), piston corer (piston core), box corer (box core), spade corer (spade core) etc.) and details (eg. core diameter, core length). | |||||
| (xviii) | Logging – Whether core have been logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. | |||||
| 14. | Sub-sampling techniques and sample preparation | |||||
| (i) | (d) If core, whether cut or sawn and whether quarter, half or all cores taken and whether sampled wet or dry.
(e) For all sample types, the nature, quality and appropriateness of the sample preparation technique. |
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| (ii) | Quality control procedures adopted for all sub-sampling stages to maximise representation of samples. | |||||
| (iii) | Measures taken to ensure that the sampling is representative of the in-situ material collected. | |||||
| (viii) | Whether sample sizes are appropriate to the grain size of the material being sampled. | |||||
| 15. | Mineralogical Analysis, Petrological Studies andSedimentological Analysis | |||||
| (i) | (f) Method of study of Mineralogy.
(g) Nature of quality control procedures adopted (eg. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. (h) Security and chain of control of samples should be clearly mentioned. |
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| 16. | Beneficiation studies as may be required | |||||
| (i) | Details of beneficiation studies carried out at laboratory scale of bench scale involving bulk sampling tests to understand and suggest technological factors for optimum recovery of explored mineral commodity, any additional by-products or co-products that may be available in the sediment also be discussed. The detailed flow sheet with yield recovery factors to be discussed | |||||
| 17. | Resource estimation techniques | |||||
| (i) | Discussion on sufficient data density to assure continuity of mineralisation and synthesis of adequate data base for estimation procedure used. | |||||
| (xix) | Discussion on the baseline marine ecology, biotope map, potential impacts of productionon marine life and mitigation measures. | |||||
| (xx) | Whether previous exploration data has been used and integrated with the current exploration data for assessment of the updated resources. | |||||
| (xxi) | The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters, maximum distance of extrapolation from data points. | |||||
| (xxii) | The basis for the classification of the mineral resources into varying confidence classes. | |||||
| (xxiii) | The assumptions made regarding recovery of by-products. | |||||
| (xxiv) | Detailed description of the method used and the assumptions made to estimate tonnages and grades (section, polygon, inverse distance, geostatistical, or other method). | |||||
| (ix) | Description of how the geological interpretation was used to control the resource estimates. | |||||
| (xxv) | Discussion of any computer software was used for estimation of resources then name of the software with the version and method chosen, description of programmes and parameters used. | |||||
| (xxvi) | Geostatistical methods are extremely varied and should be described in detail. The method chosen should be justified. The geostatistical parameters, including the variogram, and their compatibility with the geological interpretation should be discussed. Experience gained in applying geo-statistics to similar deposits should be taken into account. | |||||
| (xxvii) | Data verification or validation procedures used, including peer review report. | |||||
| 18. | Reporting of resources | |||||
| (i) | Basis of reporting of resources into various classes. The criteria and methods used for the classification to be specified. The quantities with grades, for each class are to be specified. The average grade under each class is to be specified. Grade wise classification should also be reported under suitable cases. In the case of metallic deposits such as gold, precious metals and base metals the metal content is to be specified and resources should be estimated at various cut off grades. Factor, if any, applied to take care of the confidence level from the actual estimates should also be specified. The inferred, indicated and measured resources should be highlighted in a table. | |||||
| 19. | Summary and recommendations | |||||
| (i) | (r) A discussion on the outcome of the exploration work detailing the nature of the deposit, the dimension of the deposit, general structural trend, depth of occurrence and depth up to which exploration has been done, possibility of continuity of mineralisation beyond the depth of exploration and future exploration requirements, if any.
(s) The resources estimated under various classes with grade. (t) The possibility of economic extraction based on present technological, environmental, social and market conditions. (u) Hindrances, if any, anticipated in the economic extraction of the deposit. |
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| (ii) | Discussion on the suggested future plan or strategy for the deposit for further exploration and production. | |||||
| 20. | Plates and maps | |||||
| (xxviii) | Location plan of the area showing bathymetry of the area nearby the project site based on legacy data. | |||||
| (xxix) | Seabed morphology of the adjoining area from the available legacy data. | |||||
| (xxx) | Surface sedimentological map, bathymetric map, on appropriate scale showing reliable with Differential Global Positioning System (DGPS) – global coordinates of the location of surface and core samples. If the area or part of it has been covered under exploration earlier, then the same with the location details should be shown in a map in appropriate scale. | |||||
| (xxxi) | Cross sections at suitable intervals showing vertical projections of litho-units and
mineralisation. |
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| (xxxii) | Biotope map of the project area seabed. | |||||
| 21. | Annexures or enclosures to the Report | |||||
| (ii) | The report shall include all relevant data including maps, sections, logs, analysis reports, photographs, etc., in support of the estimates made. | |||||
| (iii) | In case of a composite license, all relevant orders of grant, execution of license, shall also form part of the report. | |||||
| 22. | Any other information as may be available or required by any authority as prescribed. | |||||
Part-V
CONTENTS OF PRE-FEASIBILITY AND FEASIBILITY REPORT
Criteria for Prefeasibility or Feasibility Report for Estimation and Reporting of Mineral Reserves (the criteria listed in the geological study report shall also constitute an integral part of this template).
| Sl. No. | Contents | Explanation |
| 9. | Mineral Resource estimate for conversion to Mineral Reserve | – Description of Mineral Resource estimate used as a basis for the conversion to a Mineral reserve.
– Clear statement as to whether the Mineral Resources are reported additional to or inclusive of the Mineral Reserves. – The type and level of study undertaken to enable Mineral Resources to be converted to Mineral Reserves i.e. Prefeasibility/Feasibility level. |
| 10. | Cut-off grade or quality parameters | – The basis of the adopted cut-off grade(s) or quality parameters applied, including the basis, if appropriate, of equivalent metal formulae and the threshold values prescribed. |
| 11. | Production factors or assumptions. | – The method and assumptions used to convert the Mineral Resource to a Mineral Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design supported with Conceptual plan for production).
– The choice of the nature and the appropriateness of the selected production method(s), the size of the selected production unit (length, width, height) and other production parameters including associated design issues such as pre-strip, access, etc. – The assumptions made regarding geotechnical parameters (eg. slope stability, etc.), grade control and pre-production dredging. – The major assumptions made and Mineral Resource model used for seabed exploration, dredging (if appropriate). – The production dilution factors, production recovery factors, and minimum production widths used. – The infrastructure requirements of the selected production methods. Where available, the historic reliability of the performance parameters. |
| 12. | Metallurgical factors or assumptions | – The metallurgical process proposed and the appropriateness of that process to the type of deposit.
– The nature, amount and representativeness of metallurgical test work undertaken and the metallurgical recovery factors applied. – Any assumptions or allowances made for deleterious elements. – The existence of any bulk sample or pilot scale test work and the degree to which such samples are representative of the ore body as a whole. – The tonnages and grades reported for Mineral Reserves should state clearly whether these are in respect of material to the plant or after recovery. – Comment on existing plant and equipment, including an indication of replacement and salvage value. |
| 13. | Cost and revenue factors | – The derivation of, or assumptions made, regarding projected capital and operating costs.
– The assumptions made regarding revenue including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, etc. – The allowances made for royalties payable. – Basic cash flow inputs for a stated period. – Yearly planned production, Net Present Value (NPV) and Internal Rate of Return (IRR) of the deposit, intrinsic value of the deposit based on annual projected production. |
| 14. | Market assessment | – The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.
– A customer and competitor analysis along with the identification of likely market windows for the product. – Price and volume forecasts and the basis for these forecasts. – For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract. |
| 7. | Other modifying
factors |
– The effect, if any, of natural risk, infrastructure, environmental, legal, marketing, social or governmental factors on the likely viability of a project and/or on the estimation and classification of the Mineral Reserves.
– The status of titles and approvals critical to the viability of the project, such as production leases, discharge permits, Government and statutory approvals. – Environmental descriptions of anticipated liabilities. Location plans of mineral rights and titles. |
| 15. | Classification | – The basis for the classification of the Mineral Reserves into varying confidence categories.
– Finalisation of estimates of grade wise mineable quantities in contemplation with proposed preliminary mine design/conceptual plan subject to all necessary approvals/contracts have been confirmed or there are reasonable expectations that all such approvals/contracts will be obtained within a reasonable timeframe and with certification that Economic viability is not affected by short‐term adverse market conditions provided that longer‐term forecasts remain positive. |
| 16. | Mineral
Beneficiation and |
– Brief methodology for carrying out production, beneficiation and waste disposal.
– Brief on measures to be adopted for environmental protection during production, beneficiation and waste disposal. – Brief description on baseline marine environmental condition including marine flora and fauna, potential impacts of production and suggested mitigation measures. – Details of availability of technical personnel for all operations. |
| 10. | Certificate from the qualified Person | Name, date & signature |
SCHEDULE II
[See rule 5(2)]
FORMAT FOR SUBMITTING PROPOSAL FOR AUCTION OF AN AREA FOR GRANT OF COMPOSITE
LICENCE
To,
The Administering Authority,
[*]
Madam/ Sir,
Under the provision of sub-rule (2) of rule 5 of the Offshore Areas (Existence of Mineral Resources) Rules, 2024, I/we am/are submitting the following details and other particulars of the area for consideration of the administering authority for auction of composite licence in respect of the area. It is submitted that I/we intend to participate in auction of composite licence in respect of the said area.
1. Name and Address of the Applicant
| (m) | Name: | |
| (n) | Postal address: | |
| (o) | Telephone Number (Office): | |
| (p) | Fax number (Office): | |
| (f) | Mobile No.: | |
| (q) | Telephone Number (Residence): | |
| (r) | E-Mail address: |
2. Location Details of the Area Proposed for Auction
| a) | NHO Chart No. | |
| b) | Area in sq. km. | |
| c) | Number of standard blocks included in the block area | |
| d) | Boundary coordinates of the proposed block (in Decimal degree) | |
| e) | Coast/ Sea | |
| f) | Offshore Region | |
| g) | Nearest Coastal Location | |
| h) | Water depth (m) | |
| i) | Nearest Harbour/ Port |
3. Mineral Potential of the Area
| (s) | Name of Mineral(s) identified/ expected in the area/ block | |
| (t) | Basis on which mineral potential in the area has been identified | |
| (u) | List of documents and references relied upon in support of item (b) above. |
4. Documents to be enclosed with the application
i) Location of the proposed block demarcated on NHO Chart No.
ii) Documents mentioned in item 3(c) above.
Place:
Date:
[F. No M.VI-1/7/2023-Mines-VI]
Dr. VEENA KUMARI DERMAL, Jt. Secy.
