An industry body has urged the Union Ministry of Mines to include ‘easy and free transferability’ mining concessions in the proposed Mines and Mineral Development and Regulation (MMDR) Bill 2011.
Addressing the Federation of Indian Mineral Industries (FIMI) meet on mining exploration convention and trade show in Bangalore, H.C. Daga, Federation President, said “Transferability’ attracts huge investment and investors for exploration to the country.”
“Prospecting and mining being separate branches of the mining industry, a prospector and or a miner should have the freedom to sell/transfer his licence to any prospective buyer at a mutually agreed price,” he added.
The proposed draft MMDR Bill 2011, proposes prior approval of the authorities for transfer of the concessions.
“Such transfers are limited to only holders of adjoining concessioners. In addition, the negotiated considerations for the transfer have to be approved by relevant authorities. FIMI is, therefore, of the view that the transfer of lease should be made at par with PL with necessary safeguards,” explained Daga.
Globally the Indian mineral industry is one of the most highly taxed.
High taxes
Mining activity is perceived to invariably produce windfall profits, the risk involved in mineral exploration and mining are not adequately appreciated, said Daga.
“No one realises that the costs of number of previous failures have to be offset by the so-called windfall-gains arising from a single subsequent economic discovery,” he added.