The new framework will introduce a benefit-sharing regime while laying down the policy contours for leases given out by state governments. The changes are aimed at dealing with popular resistance to mining projects on the grounds of corruption and adverse social and environmental impact. The industry fears it will make mining unattractive in the country.
New Delhi Miners’ riches will soon have to be shared with the people affected by their activity. The Cabinet on Friday gave its approval to a Bill which proposes to make it mandatory for mining companies to compensate the local population impacted by mining operations. The Bill will be introduced in Parliament in the winter session.
Mining companies have warned of a price spiral in commodities once the new mining law provisions are in place. The industry sees the government decision of mandatory profit and royalty sharing impacting it by an estimated Rs 15,000 crore every year. This would include a Rs 12,200-crore hit on non-coal mining companies and Rs 2,800 crore on coal miners.
Industry chambers led by Confederation of Indian Industry (CII) and FICCI on Friday sought a review of the Mines and Minerals (Development and Regulation) Bill, 2011 approved by the Union Cabinet stating that the industry was concerned on royalty, profit sharing and the methodology of providing assistance to project-affected persons.
Government-owned iron ore producer National Mineral Development Corporation (NMDC) on Wednesday said that it is looking to e-auction about 2 lakh tonne of iron ore from Karnataka mines starting this week to provide some relief to the steel companies.
Karnataka’s steel industry, which is reeling under an unprecedented iron ore crunch, has found deficiencies in the government’s recent attempts at restoring the supply of the mineral in the state , going by an affidavit filed before the Supreme Court on Monday.
According to sources, there are 11 mining projects awaiting environment clearance in the state. In the case of JSW Steel the government has cleared the company’s proposal to invest another R15,131 crore to increase its installed capacity to 16 mtpa at its existing plant in Bellary. But if the mining ban is not lifted and mining lease is not provided, it would not be possible to expand the capacity from the current level, an official attached to JSW said requesting anonymity.
The Central Empowered Committee (CEC) has recommended an investigation by the Central Bureau of Investigation (CBI) into alleged illegal activities in Bellary district of Karnatka where Associated Mining Company (AMC) and NMDC Ltd hold mining leases.
SC-appointed panel to sell 1.5 million MT a month
In a relief to the starving steel firms left with little or no ore after mining operations were suspended in Bellary and other districts, the Department of Mines and Geology on Tuesday invited interested buyers to register for the e-auctioning beginning on September 14.
