The Ministry of Mines recently announced the Mineral Conservation and Development (Amendment) Rules 2021, amending the previous rules established in 2017. The conservation rules were initially framed under section 18 of the Mines and Minerals (Development and Regulation) Act, 1957 [MMDR Act]. These guidelines maintain mineral conservation, methodical and scientific mining, mineral development across the country, and environmental protection. Several key points and changes have emerged from this new amendment.
Introduction of Mandatory Drone Surveys
The new rules state that mining plans and related sections shall be adequately prepared using the Digital Global Positioning System (DGPS), Total Station, or by employing drone surveys. This stipulation will apply to all leases as designated by the Indian Bureau of Mines (IBM, Nagpur). Frequently used in construction, surveying, and civil engineering, total stations are optical instruments that measure horizontal angles, vertical angles, and distance.
Digital Image Submission Requirement
Under the new rules, there is an addition requiring the submission of digital images of mining areas by Letter of Intent holders and lessees. Lessees with annual excavation plans of 1 million tonne or more, or those with a lease area of 50 hectares or more, need to submit yearly drone survey images of the leased area and up to 100 meters outside the lease boundary. Other lessees are required to submit high-resolution satellite images. The goal is to enhance mine planning practices, security, and safety in mines while providing better supervision of operations.
Reduction in Compliance Burden
To lessen the compliance burden, the provision of daily returns has been omitted from the new rules. On top of this, the power to take action against false, incorrect, or incomplete information in monthly or annual returns now resides with the IBM and State Government.
Rationalization of Penalty Provisions
Penalty provisions in the rules have been rationalized, with an amendment categorizing violations under two major heads: major and minor violations. Major violations carry a penalty of imprisonment, a fine, or both, while minor violations now only lead to a fine.
Decriminalization of Rules
The amendment decriminalizes violations of certain rules that did not impose significant obligations on the concession holder or other parties.
Inclusion of Financial Assurance
A new clause has been added allowing for the forfeiture of the lease holder’s financial assurance or performance security in case of non-submission of the final mine closure plan within the specified period.
Growth in Employment Opportunities
The amended rules permit the employment of part-time mining engineers or geologists for small mines, reducing the compliance burden for smaller miners. Diplomas in mining and mine surveying from duly recognized institutes and a second class certificate of competency issued by the Director General of Mines Safety is now an accepted qualification for a full-time Mining Engineer. The qualification criteria for part-time Mining Engineers have also been included.
Last Modified: February 13, 2024