In a bid to effectively curb illegal mining, the Government has made it mandatory for mineral producers, traders, exporters and consumers to file monthly and annual returns with the Indian Bureau of Mines (IBM).
After compulsorily registering with the IBM, miners have to give details on production, sale and consumption of minerals while traders, stockists and exporters have to declare the source. Besides, they also have to declare sale, export or end-use of minerals.
Failing to file returns would result in suspension of mining licences for miners, while in case of traders, stockists and exporters, the licence granted by State Government would be suspended, the Mines Ministry said in a statement on Wednesday.
The Mines Ministry has recently amended Rule 45 of the Mineral Conservation and Development Rules, 1988, to strengthen the monitoring mechanism for end-to-end accounting of minerals produced, exported and consumed in the country. This would help in curbing illegal mining.
“Mandatory declaration will help in ensuring that there is no discrepancy between what is traded, exported and produced,” the Mines Secretary, Mr S.Vijaykumar, told Business Line . The amendment has been done after consulting the State Government and the industry, he added.
With the new rule, State Governments would be able to monitor mineral output and track its movement till end-use or exports. Besides, close monitoring would help them improve revenue realisation through royalty collections.
Increase in illegal mining
Illegal mining has been on the rise in recent years with the growing demand for iron ore and manganese, especially in Karnataka, Goa, Orissa and Andhra Pradesh. One of the major reasons for increase in illegal mining could be poor regulation of the mining sector at the field level. The Centre has taken a number of steps in collaboration with the State Governments to improve the standard of mineral administration, including proper accounting of produced ore from pithead to plant or port. The Centre has also set up a one-man Commission of Inquiry headed by Mr M.B.Shah, retired Judge of the Supreme Court to submit a report on illegal mining in iron and manganese ore.
The Karnataka Government has banned the export of iron ore as part of plans to curb illegal mining, while Orissa is seen contemplating such a move.