States will benefit from ‘social licence’ mechanism, districts through the District Mineral Foundation in mining sector, said Vishwapati Trivedi, Secretary, Union Ministry of Mines.
Addressing the Federation of Indian Mineral Industries (FIMI) meet on mining exploration convention and trade show in Bangalore, Trivedi said, “I like to clarify that ‘social licence’ for mining in the proposed Mines and Mineral Development and Regulation (MMDR) Bill 2011, as the royalty paid to the State Government, it accrues generally to the State’s consolidated fund for the entire State.”
The District Mineral Foundation is for sharing of mining benefits by all mining lease holders. “The industry without negating the concept of sharing the benefits with local population, have expressed concerns on the draft legislation. I rest my case with this statement on this issue,” he added.
“Yet, a broader consensus emerges the proposal could be smoothened out further. The draft legislation provides such a mechanism in the form of independent regulator proposed to be set up,” he further added.
The draft Bill further addresses the issues of sustainability distinctly, through incentivising mineral conservation, zero-waste, increasing the resource base, beneficiation and process R&D and recycling by addressing the concerns directly on degradation of environment.
“To address impact on the quality of life, societal structures and ecological processes, the draft legislation has facilitated creation of two separate funds at national and State level through a nominal cess,” said Trivedi.
While the national fund is aimed at promoting scientific management of mining activities, R&D in sustainable mining and recycling of resources, investigation for conservation and promotion of IT application in mining etc. The State fund would be used for much needed capacity building of State regulatory mechanism and prevention of illegal mining.
“I am personally of the opinion that these measurers would benefit the industry in the long run,” he explained
Illegal mining
Taking note of the urgency involved in recommencement of existing mining operations in several States due to illegal mining, Trivedi said, “I would like to share that the ministry of mines has clearly instructed the Indian Bureau of Mines to ensure that delays are avoided. This situation is monitored with the State and the Indian Bureau of Mines regularly.”