Ministry of Mines, through a notification in New Delhi dated January 21, 2024, has introduced amendments to the Mineral Conservation and Development Rules, 2017. These changes, outlined in the Mineral Conservation and Development (Amendment) Rules, 2024, aim to enhance regulatory measures governing reconnaissance, prospecting, exploration, reporting obligations, and penalties in the mining sector.
ineral Conservation and DevelopmMent (Amendment) Rules, 2024, mark a significant regulatory shift in the mining sector. These amendments, ranging from reporting obligations to penalties and information confidentiality, are designed to streamline and enhance the mineral exploration and extraction processes. Stakeholders in the mining industry must familiarize themselves with these changes to ensure compliance and navigate the evolving landscape of mineral conservation and development regulations.
MINISTRY OF MINES
NOTIFICATION
New Delhi the 21st January, 2024
G.S.R. 51(E).— In exercise of the powers conferred by section 18 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules further to amend the Mineral Conservation and Development Rules, 2017, namely:—
1. Short title and commencement.— (1) These rules may be called the Mineral Conservation and Development (Amendment) Rules, 2024.
(2) They shall come into force on the date of their publication in the Official Gazette.
2. In the Mineral Conservation and Development Rules, 2017 (hereinafter referred to as the said rules), in rule 4,—
(i) for sub-rule (1), the following sub-rule shall be substituted, namely:—
“(1) Every holder of a reconnaissance permit or prospecting licence or the preferred bidder selected for grant of composite licence or exploration licence, shall submit to the Controller General or the authorised officer a scheme of reconnaissance or prospecting or both, as the case may be, within a period of ninety days from the date of execution of the permit or licence or issuance of letter of intent, indicating the manner in which he proposes to carry out the reconnaissance or prospecting operations or both in the area covered under the permit or licence.”;
(ii) in sub-rule (2), in the opening para, after the words “reconnaissance or prospecting”, the words “or both” shall be inserted.
3. In the said rules, in rule 5,—
(i) in sub-rule (1), —
(a) after the words “reconnaissance or prospecting”, the words “or both” shall be inserted;
(b) after the words “composite licence”, the words “or exploration licence” shall be inserted;
(ii) in sub-rule (2), after the words “composite licence”, the words “or exploration licence” shall be inserted;
(iii) after sub-rule (2), the following sub-rule shall be inserted, namely:—
“(3) In case of exploration licence, a modified scheme of reconnaissance or prospecting or both shall be submitted to the Controller General or the authorised officer after three years from the date of execution of the licence, indicating the manner in which the licencee proposes to continue the reconnaissance and prospecting operations in the area retained under the licence under sub-section (11) of section 10BA.”.
4. In the said rules, in rules 6 and 7, after the words “composite licence”, the words “or exploration licence” shall respectively be inserted.
5. In the said rules, in rule 8,—
(i) in sub-rule (1), after the words “composite licence”, the words “or exploration licence” shall be inserted;
(ii) in sub-rule (2),—
(a) after the words “composite licence”, the words “or exploration licence” shall be inserted;
(b) after the words “prospecting operations”, occurring at both the places, the words “reconnaissance or prospecting operations” shall be substituted.
6. In the said rules, in rule 9,—
(i) in the marginal heading, after the words “composite licence”, the words “or exploration licence” shall be inserted;
(ii) for sub-rule (1), the following sub-rules shall be substituted, namely:—
“(1) Every holder of a reconnaissance permit or prospecting licence or composite licence or exploration licence shall submit to the Regional Controller or the authorised officer in this behalf, as the case may be, and to the State Government, a half-yearly report along with Form B of the Schedule-I as under, namely:—
(i) report of the operations undertaken from 1st January to 30th June or part period thereof to reach by 15th August of each year; and
(ii) report of operations undertaken from 1st July to 31st December or part period thereof to reach by 15th February of each year.
(1A) The exploration licencee shall, within three months of the completion of the operations for which licence has been granted, or from the date of expiry of the exploration licence, whichever is earlier, submit geological report to the State Government and to the Controller General or the authorised officer of the Indian Bureau of Mines, as the case may be, explaining the result of the reconnaissance and prospecting operations in the form of a geological report prepared under rule 5 of the Minerals (Evidence of Mineral Contents) Rules, 2015; identifying the area suitable for grant of a mining lease.”;
(iii) for sub-rule (3), the following sub-rule shall be substituted, namely:—
“(3) Every agency authorised under the second proviso to sub-section (1) of section 4 shall submit to the State Government and the authorised officer a half-yearly report along with Form B of the Schedule-I as per the stipulated period provided in sub-rule (1).”.
7. In the said rules, after rule 9, the following rule shall be inserted, namely:—
“9A. Restriction on disclosure of information, scheme and reports.— The holder of exploration licence shall not in any manner disclose the information, scheme and reports prepared under these rules or any other geological information related to reconnaissance or prospecting operations to any person other than the Government or authority specified in these rules or any other rules made under the Act, without prior approval of the Central Government.”.
8. In the said rules, in rule 11, in sub-rule (4), the following proviso shall be inserted, namely:—
“Provided that if the mining or mineral processing operations in a mine is discontinued for a period exceeding two hundred and seventy days before the expiry of a period of five years for which the mining plan was approved on the last occasion; and the holder of the mining lease has submitted prescribed notice to the authorised officer and the State Government under rule 28, the holder shall not be required to submit mining plan for review during the period of such temporary discontinuation, but shall submit the mining plan for review and obtain approval of the competent authority on the same before reopening of the mine.”.
9. In the said rules, in rules 12, 46, 47, 48, 50, 52, 53, 54, 55, 56, 59 and 64, after the words “composite licence”, wherever they occur, the words “or exploration licence” shall be inserted.
10. In the said rules, in rule 35, in sub-rule (2), after the first proviso, the following shall be inserted, namely:—
“Provided that if the mining or mineral processing operations in a mine is discontinued for a period exceeding one hundred and eighty days during the previous financial year; and the holder of the mining lease has submitted prescribed notice to the authorized officer and the State Government under rule 28, the holder shall not be required to submit the report and images for the said previous financial year.”.
11. In the said rules, in rules 36, 37, 41, 42 and 44, after the words “composite licence”, wherever they occur, the words “, exploration licence” shall be inserted.
12. In the said rules, in rule 40, after the words “prospecting licence”, the words “, composite licence, exploration licence” shall be inserted.
13. In the said rules, in rule 56, in sub-rule (1), for the words “prospecting”, the words “reconnaissance or prospecting” shall be substituted.
14. In the said rules, in Schedule I,—
(i) in Form-A, Form-B, Form-H, Form-I, Form-J, Form-K and Form-N, after the words “composite licence”, wherever they occur, the words “or exploration licence” shall be inserted;
(ii) in Form-A, Form-B, Form-H and Form-I, for the words, “Mineral Conservation Development Rules, 2016”, the words and figures, “Mineral Conservation Development Rules, 2017” shall be substituted;
(iii) in Form-B, under the heading “IMPORTANT INSTRUCTIONS FOR FILLING THE FORM”, for the first instruction, the following instruction shall be substituted, namely:—
“• This Form, duly filled in must reach the concerned authorities within the period specified in rules 9(1), 9(2) or 9(4), as the case may be.”;
(iv) in Form-H, in entry 11, in clause (ii), after the words and symbol “Prospecting Licence/” the words and symbol “Composite licence/exploration licence” shall be inserted.
15. In the said rules, for Schedule II and Schedule III, the following shall be substituted, namely:—
“SCHEDULE-II
[see rule 45(7A)]
AMOUNT TO BE PAID IN CASE OF VIOLATION UNDER RULE 45
| Item | Amount (in ₹) | Explanation |
| (1) | (2) | (3) |
| Non-submission or incomplete /wrong /false information in monthly returns in Form F1, F2, F3; by the due date | In case of leases having leased area up to 25 hectare and having per annum approved production capacity up to 2 lakh tonnes, ₹5,000/- per day after due date of submission of return as specified in the Rule till rectification of violation.
For all other cases, ₹10,000/- per day after due date of submission of return as specified in the Rule till rectification of violation. |
In case of referred back returns by
Indian Bureau of Mines for Failure to rectify in such cases will attract the payment as specified.; |
| Non-submission or incomplete/ wrong/ false information in annual returns in Form G1, G2, G3; by the due date | In case of leases having leased area up to 25 hectare and having per annum approved production capacity up to 2 lakh tonnes, Rs. 5,000/- per day after due date of submission of return as specified in the Rule till rectification of violation.
For all other cases, ₹10,000/- per day after due date of submission of return as specified in the Rule till rectification of violation. |
|
| Non-submission or incomplete/wrong/false information in monthly returns in Form L; by the due date |
₹5,000/- per day after due date of submission of return as prescribed in the Rule till rectification of violation. | |
| Non-submission or incomplete/wrong/false information in annual returns in Form M; by the due date |
₹5,000/- per day after due date of submission of return as prescribed in the Rule till rectification of violation. |
SCHEDULE-III
[see rule 62(2)]
Rules whose contravention shall be punishable with fine
| Rule No. | Marginal heading of the Rule | Amount of Fine for leases having leased area up to 25 hectare and having per annum approved production capacity up to 2 lakh tonnes (in ₹) | Amount of Fine for the cases other than those covered in column (3)(in ₹) |
| (1) | (2) | (3) | (4) |
| Sub-rule (4) of rule 11 | Mining operations under mining lease | 1,000/- per day, subject to maximum 5,00,000/- | 2,000/- per day, subject to
maximum 5,00,000/- |
| 12 | Prospecting and mining operations |
1,00,000/- | 5,00,000/- |
| 18 | Beneficiation studies to be carried out | 1,00,000/- | 5,00,000/- |
| 19 | Machinery and plant | 1,00,000/- | 5,00,000/- |
| 20 | Notice for opening of mine | 1,00,000/- | 5,00,000/- |
| 23 | Submission of progressive mine closure plan | 1,00,000/- | 5,00,000/- |
| 28 | Notice of temporary discontinuance of work in mines and obligations of lease holders |
1,00,000/- | 5,00,000/- |
| 29 | Intimation of reopening of a mine | 1,00,000/- | 5,00,000/- |
| 46 | Notice of certain appointments | 1,000/- per day, subject to maximum 1,00,000/- | 2,000/- per day, subject to
maximum 1,00,000/- |
| 51 | Notice of amalgamation of mining lease | 1,000/- per day after due date as prescribed in the Rule, subject to maximum 1,00,000/- | 2,000/- per day after due date as prescribed in the Rule, subject to maximum 1,00,000/- |
| 55 | Employment of geologists and mining engineers | 1,00,000/- | 5,00,000/-”. |
[F. No. M.VI-1/3/2023-Mines VI (Part2)]
Dr. VEENA KUMARI DERMAL, Jt. Secy.
Note:—The principal rules were published in the Gazette of India, Part II, section 3, sub-section (i) vide number G.S.R. 169(E) dated the 27th February, 2017 and lastly amended vide number G.S.R. 294(E), dated the 11th April, 2022.
