MINES AND MINERALS (REGULATION AND DEVELOPMENT) ACT, 1957

67 of 1957

28th December, 1957

An Act to provide for the 3["development and regulation of mines and minerals"]under the control of the Union. BE it enacted by Parliament in the Eighth Year of the Republic of India as follows :- [a] For Statement of Objects and Reasons, see Gaz. of India, 1957, Extra., Pt. II, section 2, p. 392; and for Report of the Joint Committee, see p. 997.

PRELIMINARY

SECTION 01: SHORT TITLE, EXTENT AND COMMENCEMENT

(1) This Act may be called the Mines and Minerals4["(Development and Regulation)"] Act, 1957.

(2) It extends1to the whole of India.

(3) It shall come into force on such date2as the Central Government may, by notification in the Official Gazette, appoint.

SECTION 02: DECLARATION AS TO EXPEDIENCY OF UNION CONTROL

It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent hereinafter provided.

SECTION 03: DEFINITIONS

- In this Act, unless the context otherwise requires,-

(a) "minerals" includes all minerals except mineral oils;

(b) "mineral oils" includes natural gas and petroleum;

(c) "mining lease" means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose;

(d) "mining operations" means any operations undertaken for the purpose of winning any mineral;

(e) "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification5in the Official Gazette, declare to be a minor mineral;

OBJECTS AND REASONS

"The Committee feel that sand used for industrial purposes particularly in the manufacture of glass should not be treated as a minor mineral. It is not possible to define this kind of sand in technical and scientific terms. The Committee therefore consider that rules may describe such sand with reference to the purpose for which it may be used."-J.C.R.

(f) "prescribed" means prescribed by rules made under this Act;

(g) "prospecting licence" means a licence granted for the purpose of undertaking prospecting operations;

(h) "prospections operations" means any operations undertaken for the purpose of exploring, locating or proving mineral deposits;8[***]

9(h-a) "reconnaissance operations" means any operations undertaken for preliminary prospecting of a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping, but does not include pitting, trenching, drilling (except drilling of boreholes on a grid specified from time to time by the Central Government) or sub-surface excavation;

(h-b) "reconnaissance permit" means a permit granted for the purpose of undertaking reconnaissance operations; and

(i) the expressions, "mine" and "owner", have the meanings assigned to them in the Mines Act, 1952.

SECTION 04: PROSPECTING OR MINING OPCRATIONS TO BE UNDER LICENCE OR LEASE

(1)10No person shall undertake any reconnaissance, prospecting or mining operations in any area, except under and in accordance with the terms and conditions of a reconnaissance permit or of a prospecting licence or, as the case may be, of a mining lease, granted under this Act and the rules made thereunder Provided that nothing in this sub-section shall affect any prospecting or mining operations undertaken in any area in accordance with the terms and conditions of a prospecting licence or mining lease granted before the commencement of this Act which is in force at such commencement.6[Provided further that nothing in this subsection shall apply to any prospecting operations undertaken by the Geological Survey of India, the Indian Bureau of Mines,11["the Atomic Minerals Directorate for Exploration and Research"]of the Department of Atomic Energy of the Central Government, the Directorates of Mining and Geology of any State Government (by whatever name called),and the Mineral Exploration Corporation Limited, a Government company within the meaning of section 617 of the Companies Act, 1956.]7[Provided also that nothing in this section shall apply to any mining lease (whether called mining lease, mining concession or by any other name) in force immediately before the commencement of this Act in the Union territory of Goa, Daman and Diu.]

12>(1A) No person shall transport or store or cause to be transported or stored any mineral otherwise than in accordance with the provisions of this Act and the rules made thereunder.

(2)14["No reconnaissance permit, prospecting licence or mining lease"] shall be granted otherwise than in accordance with the provisions of this Act and the rules made thereunder.

6[(3) Any State Government may, after prior consultation with the Central Government and in accordance with the rules made under section 18,13 ["undertake reconnaissance, prospecting or mining operations with respect to any mineral specified in the First Schedule in any area within that State which is not already held under any reconnaissance permit, prospecting licence or mining lease"]]

SECTION 4A: TERMINATION OF PROSPECTING LICENCES OR MINING LEASES

-15 (1) Where the Central Government, after consultation with the State Government, is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for conservation of mineral resources or for maintaining safety in the mines or for such other purposes, as the Central Government may deem fit, it may request the State Government to make a premature termination of a prospecting licence or mining lease in respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of such request, the State Government shall make an order making a premature termination of such prospecting licence or mining lease with respect to the area or any part thereof.

(2) Where the State Government,16[* * *] is of opinion that it is expedient in the interest of regulation of mines and mineral development, preservation of natural environment, control of floods, prevention of pollution or to avoid danger to public health or communications or to ensure safety of buildings', monuments or other structures or for such other purposes, as the State Government may deem fit, it may, by an order, in respect of any minor mineral, make premature termination of a prospecting licerice or mining lease with respect to the area or any part thereof covered by such licence or lease: [**18*]

(3) No order making a premature termination of a prospecting license or mining lease shall be made except after giving the holder of the licence or lease a reasonable opportunity of being heard.

(4) Where the holder of a mining lease fails to undertake mining operations for a period of17[two years] after the date of execution of the lease or, having commenced mining operations, has discontinued the same for a period of one year, the lease shall lapse on the expiry of the period of one year from the date of execution of the lease or, as the case may be, discontinuance of the mining operations; Provided that the State Government may, on an application made by the holder of such lease before its expiry under this sub-section and on being satisfied that it will not be possible for the holder of the lease to undertake mining operations or to continue such operations for reasons beyond his control, make an order, subject to such conditions as may be prescribed, to the effect that such lease shall not lapse : Provided further that the State Government may, on an application by the holder of a lease submitted within a period of six months from the date of its lapse and on being satisfied that such non-commencement or discontinuance was due to reasons beyond the control of the holder of the lease, revive the lease from such prospective or retrospective date as it thinks fit but not earlier than the date of lapse of the lease: Provided also that no lease shall be revived under the second proviso for more than twice during the entire period of the lease.]

SECTION 05: RESTRICTIONS ON THE GRANT OF PROSPECTING LICENCES OR MINING LEASES -1920

[(1) A State Government shall not grant a22["reconnaissance permit, prospecting licence or mining lease"] to any person unless such person- 

(a) is an Indian national, or a company as defined in sub-section (1) of section 3-of the Companies Act, 1956; and

) satisfies such conditions as may be prescribed : Provided that in respect of any mineral specified in the First Schedule, no prospecting licence or mining lease shall be granted except with the previous approval of the Central Government.

Explanation : For the purposes of this sub-section, a person shall be deemed to be an Indian national-- (a) in case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and (b) in the case if an individual on it if he is a citizen of India

(2) No mining lease shall be granted by the State Government unless it is satisfied that- 

23(a) there is evidence to show that the area for which the lease is applied for has been prospected earlier or the existence of mineral contents therein has been established otherwise than by means of prospecting such area; and

(b) there is a mining plan duly approved by the Central Government, or by the State Government, in respect of such category of mines as may be specified by the Central Government, for the development of mineral deposits in the area concerned.

SECTION 06: MAXIMUM AREA FOR WHICH A PROSPECTING LICENCE OR MINING LEASE MAY BE GRANTED

24(1) No person shall acquire26[ ] in respect of any mineral or prescribed group of associated minerals-27["in a State"] 

(a) one or more prospecting licences covering a total area of more than twenty-five square kilometres; or

28(aa) one or more reconnaissance permit covering a total area of ten thousand square kilometers: Provided that the area granted under a single reconnaissance permit shall not exceed five thousand square kilometers; or

(b) one or more mining leases covering a total area of more than ten square kilometres : Provided that if the Central Government is of opinion that in the interests of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded by it in writing, permit any person to acquire one or more prospecting licences or mining leases covering an area in excess of the aforesaid total area;

29(c) any reconnaissance permit, mining lease or prospecting licence in respect of any area which is not compact or contiguous: Provided that if the State Government is of opinion that in the interests of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any person to acquire a reconnaissance permit, prospecting licence or mining lease in relation to any area which is not compact or contiguous;

(2) For the purposes of this section, a person, acquiring by or in the name of, another person a30["reconnaissance permit, prospecting licence or mining lease"]which is intended for himself shall be deemed to be acquiring it himself.

25[(3) For the purposes of determining the total area referred to in subsection (1) the area held under a31["reconnaissance permit, prospecting licence or mining lease"] by a person as a member of a co-operative society, company or other corporation, or a Hindu undivided family or a partner of a firm, shall be deducted from the area referred to in sub-section (1) so that the sum total of the area held by such person, under a32 ["reconnaissance permit, prospecting licence or mining lease"]whether as such member or partner, or individually may not, in any case, exceed the total area specified in sub-section (1).]

SECTION 07: PERIODS FOR WHICH PROSPECTING LICENCES MAY BE GRANTED OR RENEWED

33 (1) The period for which34["a reconnaissance permit or prospecting licence"]may be granted shall not exceed three years.

(2) A prospecting licence shall, if the State Government is satisfied that a longer period is required to enable the licensee to complete prospecting operations, be renewed for such period or periods as that Government may specify: Provided that the total period for which a prospecting licence is granted does not exceed five years: Provided further that no prospecting licence granted in respect of35["a mineral included in Part-A and Part-B to"]the First Schedule shall be renewed except with the previous approval of the Central Government.]

SECTION 08: PERIODS FOR WHICH MINING LEASES MAY BE GRANTED OR RENEWED

-37[ (1) The maximum period for which a mining lease may be granted shall not exceed thirty years : Provided that the minimum period for which any such mining lease may be granted shall not be of less than twenty years.]

36[(2) A mining lease may be renewed for38[a period not exceeding twenty years]: [**40*]

41(3) Notwithstanding anything contained in sub-section (2), if the State Government is of opinion that in the interests of mineral development it is necessary so to do, it may, for reasons to be recorded, authorise the renewal of a mining lease in respect of minerals not specified in Part-A and Part-B of the First Schedule for a further period or periods not exceeding twenty years in each case.

(4) Notwithstanding anything contained in sub-section (2) and subsection (3), no mining lease granted in respect of mineral specified in Part-A or Part-B of the First Schedule shall be renewed except with the previous approval of the Central Government.

SECTION 09: ROYALTIES IN RESPECT OF MINING LEASES

- (1) The holder of a mining lease granted before the commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any42[mineral removed or consumed by him or his agent, manager, employee, contractor or sub-lessee] from the leased area after such commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral.

(2) The holder of a mining lease granted on or after the commencement of this Act shall pay royalty in respect of any42[mineral removed or consumed by him or his agent, manager, employee, contractor or sub-lessee] from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral.

43[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month.]

(3) The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the notification:44[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral more than once during any period of45[three years].]

SECTION 09A: DEAD RENT TO BE PAID BY THE LESSEE

-46 (1) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, shall, notwithstanding anything contained in the instrument of lease or in any other law for the time being in force, pay to the State Government,every year, dead rent at such rate as may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of lease: Provided that where the holder of such mining lease becomes liable, under section 9-, to pay royalty for any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub-lessee from the leased area he shall be liable to pay either such royalty or the dead rent in respect of that area, whichever is greater.

(2) The Central Government may, by notification in the Official Gazette, amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered by a mining lease and such enhancement or reduction shall take effect from such date as may be specified in the notification: Provided that the Central Government shall not enhance the rate of the dead rent in respect of any such area more than once during any period of47[three years].

SECTION 10: APPLICATION FOR PROSPECTING LICENCES OR MINING LEASES

- (1) An application for49["a reconnaissance permit, prospecting licence or mining lease"]in respect of any land in which the minerals vest in the Government shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee.

(2) Where an application is received under sub-section (1), there shall be sent to the applicant an acknowledgment of its receipt within the prescribed time and in the prescribed form.

(3) On receipt of an application under this section, the State Government may, having regard to the provisions of this Act and any rules made thereunder, grant or refuse to grant the50["permit, licence or lease"].

OBJECTS AND REASONS The Committee feel that since the date of receipt of application decides the orders of priority, an acknowledgment of the receipt of the application should be sent at once to the applicant. However as it is not possible to provide for various types of cases of applications (e.g. application sent by post) in the statute itself the matter is left to be regulated by rules. Sub clause (2) has been amended accordingly. "The Committee recommend that provision should be made in the rules for immediate acknowledgment of applications on their receipt and where application is given in person may be given forthwith to the person presenting it."-J.C.R.

SECTION 11: PREFERENTIAL RIGHT OF CERTAIN PERSONS

51- (1) Where a reconnaissance permit or prospecting licence has been granted in respect of any land, the permit holder or the licensee shall have a preferential right for obtaining a prospecting licence or mining lease, as the case may be, in respect of that land over any other person: Provided that the State Government is satisfied that the permit holder or the licensee, as the case may be,- 

(a) has undertaken reconnaissance operations or prospecting operations, as the case may be, to establish mineral resources in such land;

(b) has not committed any breach of the terms and conditions of the reconnaissance permit or the prospecting licence;

(c) has not become ineligible under the provisions of this Act; and

(d) has not failed to apply for grant of prospecting licence or mining lease, as the case may be, within three months after the expiry of reconnaissance permit or prospecting licence, as the case may be, or within such further period, as may be extended by the said Government.

(2) Subject to the provisions of sub-section (1), where the State Government has not notified in the Official Gazette the area for grant of reconnaissance permit or prospecting licence or mining lease, as the case may be, and two or more persons have applied for a reconnaissance permit, prospecting licence or a mining lease in respect of any land in such area, the applicant whose application was received earlier, shall have the preferential right to be considered for grant of reconnaissance permit, prospecting licence or mining lease, as the case may be, over the applicant whose application was received later: Provided that where an area is available for grant of reconnaissance permit, prospecting licence or mining lease, as the case may be, and the State Government has invited applications by notification in the Official Gazette for grant of such permit, licence or lease, all the applications received during the period specified in such notification and the applications which had been received prior to the publication of such notification in respect of the lands within such area and had not been disposed of, shall be deemed to have been received on the same day for the purposes of assigning priority under this sub-section: Provided further that where any such applications are received on the same day, the State Government, after taking into consideration the matter specified in sub-section (3), may grant the reconnaissance permit, prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit.

(3) The matters referred to in sub-section (2) are the following:- 

(a) any special knowledge of, or experience in, reconnaissance operations, prospecting operations or mining operations, as the case may be, possessed by the applicant;

(b) the financial resources of the applicant;

(c) the nature and quality of the technical staff employed or to be employed by the applicant;

(d) the investment which the applicant proposes to make in the mines and in the industry based on the minerals;

(e) such other matters as may be prescribed.

(4) Subject to the provisions of sub-section (1), where the State Government notifies in the Official Gazette an area for grant of reconnaissance permit, prospecting licence or mining lease, as the case may be, all the applications received during the period as specified in such notification, which shall not be less than thirty days, shall be considered simultaneously as if all such applications have been received on the same day and the State Government, after taking into consideration the matters specified in sub-section (3), may grant the reconnaissance permit, prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit.

(5) Notwithstanding anything contained in sub-section (2), but subject to the provisions of sub-section (1), the State Government may, for any special reasons to be recorded, grant a reconnaissance permit, prospecting licence or mining lease, as the case may be, to an applicant whose application was received later in preference to an application whose application was received earlier: Provided that in respect of minerals specified in the First Schedule, prior approval of the Central Government shall be obtained before passing any order under this subsection.

SECTION 12: REGISTERS: OF PROSPECTING LICENCES AND MINING LEASES

- (1) The State Government shall cause to be maintained in the prescribed form- . 

(a) a register of applications for prospecting licences;

(b) a register of prospecting licensees;

56(c) a register of applications for mining leases; (d) a register of mining leases;

(e) a register of applications for reconnaissance permits; and

(f) a register of reconnaissance permits;

(2) Every such register shall be open to inspection by any person on payment of such fee as the State Government may fix.

SECTION 13: POWER OF CENTRAL GOVERNMENT TO MAKE RULES IN RESPECT OF MINERALS.-

(1) The Central Government may, by notification52in the Official Gazette, make rules for regulating the grant of 57["reconnaissance permits, prospecting licences and mining leases"] in respect of minerals and for purposes connected therewith.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- 

(a) the person by whom, and the manner in which, applications for58 ["reconnaissance permits, prospecting licenses or mining leases"] in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefor;

(b) the time within which, and the form in which, acknowledgment of the receipt of any such application may be sent;

(c) the matters which may be considered where applications in respect of the same land are received on the same day;

53 [(d) x x x x]

(e) the authority by which59["reconnaissance permits, prospecting licenses or mining leases"]in respect of land in which the minerals vest in the Government may be granted;

(f) the procedure for62["a reconnaissance permit, a prospecting licence or a mining lease"]in respect of any land in which the minerals vest in a person other than the Government and the terms on which, and the conditions

subject to which,61["a permit licence or lease"]may be granted or renewed;

(g) the terms on which, and the conditions subject to which, any other64 ["reconnaissance permit, prospecting licence or mining lease"]may be granted or renewed;

(h) the facilities to be afforded by holders of mining leases to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations;

54[(i) the fixing and collection of fees for60["reconnaissance permits, prospecting licenses or mining leases"], surface rent, security deposit, fines, other fees or charges and the time within which and the manner in which the dead rent or royalty shall be payable;]

(j) the manner in which rights of third parties may be protected (whether by payment of compensation or otherwise) in cases where any such party maybe prejudicially affected by reason of any65["reconnaissance, prospecting or mining operations"];

(k) the grouping of associated minerals for the purposes of section 6-;

(1) the manner in which, and the conditions subject to which,63["a reconnaissance permit, a prospecting licence or a mining lease"]may be transferred;

(m) the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease;

(n) the form of registers to be maintained under this Act;

53[(o) x x x x x]

(p) the reports and statements to be submitted by holders of66 ["reconnaissance permits or prospecting licences"]or owners of mines and the authority to which such reports and statements shall be submitted;

(q) the period within which applications for revision of any order passed by a State Government or other authority in exercise of any power conferred by or under this Act, may be made55[the fees to be paid therefor and the documents which shall accompany such applications] and the manner in which such applications shall be disposed of; and

55[(qq) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the like destroyed by reason of any prospecting or mining operations shall be made in the same area or in any other area selected by the Central Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the prospecting licence or mining lease.]

(r) any other matter which is to be, or may be, prescribed under this Act.

SECTION 13A: POWER OF CENTRAL GOVERNMENT TO MAKE RULES FOR THE GRANT OF PROSPECTING LICENCES OR MINING LEASES IN RESPECT OF TERRITORIAL WATERS OR CONTINENTAL SHELF OF INDIA

-67 (1) The Central Government may, by notification in the Official Gazette, make rules for the grant of prospecting licences or mining leases in respect of any minerals underlying the ocean within the territorial waters or the continental shelf of India.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :- 

(a) the conditions, limitations and restrictions subject to which such prospecting licences or mining leases may be granted;

(b) regulation of exploration and exploitation of minerals within the territorial waters or the continental shelf of India;

(c) ensuring that such exploration or exploitation does not interfere with navigation; and

(d) any other matter which is required to be, or may be, prescribed.]

SECTION 14: SECTIONS 4 TO 13 NOT TO APPLY TO MINOR MINERALS

-The provisions of69[sections 5 to 13-] (inclusive) shall not apply to68[quarry leases, mining leases or other mineral concessions] in respect of minor minerals.

SECTION 15: POWER OF STATE GOVERNMENTS TO MAKE RULES IN RESPECT OF MINOR MINERALS

- (1) The State Government may, by notification70in the Official Gazette, make rules for regulating the grant of71[quarry leases, mining leases or other mineral concessions] in respect of minor minerals and for purposes connected therewith. 

73[(1A) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-

(a) the person by whom and the manner in which, applications for quarry

leases, mining leases or other mineral concessions may be made and the fees to be paid thereor;

(b) the time within which, and the form in which, acknowledgment of the receipt of any such applications may be sent;

(c) the matter which may be considered where applications in respect of the same land are received within the same day;

(d) the terms on which, and the conditions subject to which and the authority

by which quarry leases, mining leases or other mineral concessions may be granted or renewed;

(e) the procedure for obtaining quarry leases, mining leases or other mineral concessions;

(f) the facilities to be afforded by holders of quarry leases, mining leases or other mineral concessions to persons deputed by the Government for the

purpose of undertaking .research or training in matters relating to mining operations;

(g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the manner in which these shall be payable;

(h) the manner in which rights of third parties may be protected (whether by way of payment of compensation or otherwise) in cases where any such party is prejudicially affected by reason of any prospecting or mining operations;

(i) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the like destroyed by reason of any quarrying or mining operations shall be made in the same area or in any other area selected by the State Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the quarrying or mining lease;

(j) the manner in which and the conditions subject to which, a quarry lease, mining lease or other mineral concession may be transferred;

(k) the construction, maintenance and use of roads, power transmission lines, tramways, railways, serial ropeways, pipelines and the making of passage for water for mining purposes on any land comprised in a quarry or mining lease or other mineral concession;

(l) the form of registers to be maintained under this Act;

(m) the reports and statements to be submitted by holders of quarry or mining leases or other mineral concessions and the authority to which such reports and statements shall be submitted;

(n) the period within which and the manner in which and the authority to which applications for revision of any order passed by any authority under these rules may be made, the fees to be paid therefor, and the powers of the revisional authority; and

(o) any other matter which is to be, or may be, prescribed.]

(2) Until rules are made under sub-section (1), any rules made by a State Government regulating the grant of71[quarry leases, mining leases or other mineral concessions] in respect of minor minerals which are in force immediately before the commencement of this Act shall continue in force.

72[(3) The holder of a mining lease or any other mineral concession granted under any rule made under sub-section (1) shall pay74[royalty or dead rent, whichever is more] in respect of minor minerals removed or consumed by him or by his agent, manager, employee contractor or sub-lessee at the rate prescribed for the time being in the rules framed by the State Government in respect of minor minerals: Provided that the State Government shall not enhance the rate of74[royalty or dead rent] in respect of any minor mineral for more than once during any period of75 [three years].

SECTION 16: POWER TO MODIFY MINING LEASES GRANTED BEFORE 25TH OCTOBER, 1949

-7677 [( 1 ) 

(a) All mining leases granted before the commencement of the Mines and

Minerals (Regulation and Development) Amendment Act, 1972,79[if in force at the date of commencement of the Mines and Minerals (Regulation and

Development) Amendment Act, 1994, shall be brought in conformity with the provisions of this Act and the rules made thereunder within two years from the date of the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994] or such further time as the Central Government may, by general or special order, specify in this behalf.

(b) Where the rights under any mining lease, granted by the proprietor of an estate or tenure before the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, have vested, on or after the 25th day of.October, 1949, in the State Government in pursuance of the provisions of any Act of any Provincial or State Legislature which provides for the acquisition of estates or tenures or provides for agrarian reform, such mining lease shall be brought into conformity with the

provisions of this Act and the rules made thereunder within80[two years from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1994]. or within such further time as the Central Government may, by general or special order, specify in this behalf.]

81[(1A) Where any action is taken under clause (a) or clause (b) of subsection (1) to bring the period of any lease in conformity with the provisions of this Act and the rules made thereunder, then, notwithstanding anything contained insection 8-, the period of such lease shall continue to operate for a period of two years from the date of bringing such lease in conformity with the provisions of this Act.]

(2) The Central Government may, by notification in the Official Gazette, make rules for the purpose of giving effect to the provisions of subsection (1) and in particular such rules shall provide- 

) for giving previous notice of the modification or alteration proposed to be made in any existing mining lease to the lessee and where the lessor is not the Central Government, also to the lessor and for affording him an opportunity of showing cause against the proposal;

) for the payment of compensation to the lessee in respect of the reduction of any area covered, by the existing mining lease; and ) for the principles on which, the manner in which, and the authority by which, the said compensation shall be determined.

OBJECTS AND REASONS The Committee have given careful thought to this clause and feel that a mandatory provision should be made to the effect that all mining leases granted prior to the 25th day of October, 1949, shall be brought into conformity with the provisions of this Act and the rules framed thereunder. The Committee however feel that the Central Government should have power in exceptional cases in the public interest to permit the holder of a mining lease to hold the lease for an area in excess of that specified in clause 6( l)(b) or for a period exceeding that specified in clause 8(1). The clause has been revised accordingly.-J.C.R.

SECTION 17: SPECIAL POWERS OF CENTRAL GOVERNMENT TO UNDERTAKE PROSPECTING OR MINING OPERATIONS IN CERTAIN LANDS

(1) The provisions of this section shall apply82[* *] in respect of land in which the minerals vest in the Government of a State83[or any other person].

(2) Notwithstanding anything contained in this Act, the Central Government, after consultation with the State Government, may undertake84["reconnaissance, prospecting or mining operations"] in any area not already held under any85["reconnaissance permit, prospecting licence or mining lease"], and where it proposes to do so, it shall, by notification in the Official Gazette,- 

(a) specify the boundaries of such area;

(b) state whether prospecting or mining operations will be carried out in the area; and

(c) specify the mineral or minerals in respect of which such operations will be carried out.

(3) Where, in exercise of the powers conferred by sub-section (2), the Central Government undertakes86["reconnaissance, prospecting or mining operations"]in any area, the Central Government shall be liable to pay87 ["reconnaissance permit fee or prospecting fee"], royalty, surface rent or dead rent, as the case may be, at the same rate at which it would have been payable under this Act, if such90["reconnaissance, prospecting or mining operations"]had been undertaken by a private person under a88 ["reconnaissance permit, prospecting licence or mining lease"].

(4) The Central Government, with a view to enabling it to exercise the powers conferred on it by sub-section (2) may, after consultation with the State Government, by notification in the Official Gazette, declare that no89["reconnaissance permit, prospecting licence or mining lease"]shall be granted in respect of any land specified in the notification.

SECTION 17A: RESERVATION OF AREA FOR PURPOSES OF CONSERVATION

-91 (1) The Central Government, with a view to conserving any mineral and after consultation with the State Government, may reserve any area not already held under any prospecting licence or mining lease and, where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.

92[(1 A) The Central Government may, in consultation with the State Government, reserve any area not already -held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it, and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such area will be reserved.]

(2) The State Government may, with the approval of the Central Government, reserve any area not already held under any prospecting licence or mining lease, for undertaking prospecting or mining operations through a Government company or corporation owned or controlled by it93[x x x] and where it proposes to do so, it shall, by notification in the Official Gazette, specify the boundaries of such area and the mineral or minerals in respect of which such areas will be reserved.

(3)94[Where in exercise of the powers conferred by sub-section (1A) or sub-section (2) Central Government or the State Government, as the case may be,] undertakes prospecting or mining operations in any area in which the minerals vest in a private person, it shall be liable to pay prospecting fee, royalty, surface rent or dead rent, as the case may be, from time to time at the same rate at which it would have been payable under this Act if such prospecting or mining operations had been undertaken by a private person under prospecting licence or mining lease.]

SECTION 18: MINERAL DEVELOPMENT

(1) It shall be the duty of the Central Government to take all such steps as may be necessary95[for the conservation and systematic development of minerals in India and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting or mining operations]96[for such purposes] the Central Government may, by notification in the Official Gazette, make such rules98as it thinks fit.

(2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely :-- 

(a) the opening of new mines and the regulation of mining operations in any area;

(b) the regulation of the excavation or collection of minerals from any mine;

(c) the measures to be taken by owners of mines for the purpose of  beneficiation of ores, including the provision of suitable contrivances for such purpose;

(d) the development of mineral resources in any area;

(e) the notification of all new borings and shaft sinkings and the preservation of bore-hole records, and specimens of cores of all new bore-holes;

(f) the regulation of the arrangements for the storage of minerals and the stocks thereof that may be kept by any person;

(g) the submission of samples of minerals from any mine by the owner thereof and the manner in which and the authority to which such samples shall be submitted; and the taking of samples of any minerals from any mine by the State Government or any other authority specified by it in that behalf; and

(h) the submission by owners of mines of such special or periodical returns and reports as may be specified, and the form in which and the authority to which such returns and reports shall be submitted.

97(i) the regulation of prospecting operations:

(j) the employment of qualified geologists or mining engineers to supervise prospecting or mining operations;

(k) the disposal or discharge of waste slime or tailings arising from any mining or metallurgical operations carried out in a mine;

(l) the manner in which and the authority by which directions may be issued to the owners of any mine to do or refrain from doing certain things in the interest of conservation or systematic development of minerals or for the protection of environment by preventing or controlling pollution which may be caused by prospecting or mining operations;

(m) the maintenance and submission of such plans, registers of records as may be specified by the Government;

(n) the submission of records or reports by persons carrying on prospecting or mining operations regarding any research in mining or geology carried out by them;

(o) the facilities to be afforded by persons carrying out prospecting or mining operations to persons authorised by the Central Government for the purpose of undertaking research or training in matters relating to mining or geology;

(p) the procedure for and the manner of imposition of fines for the contravention of any of the rules framed under this section and the authority who may impose such fines;

(q) the authority to which, the period within which, the form and the manner in which applications for revision of any order passed by any authority under this Act and the rules made thereunder may be made, the fee to be paid and the documents which should accompany such applications.]

(3) All rules made under this section shall be binding on the Government.

SECTION 18A: POWER TO AUTHORISE GEOLOGICAL SURVEY OF INDIA, ETC., TO MAKE INVESTIGATION

-99 (1) Where the Central Government is of opinion that for the conservation and development of minerals in India, it is necessary to collect as precise information as possible with regard to any mineral available in or under any land in relation to which any prospecting licence or mining lease has been granted, whether by the State Government or by any other person, the Central Government may authorise the Geological Survey of India, or such other authority or agency as it may specify in this behalf, to carry out such detailed investigations for the purpose of obtaining such information as may be necessary: Provided that in the cases of prospecting licences or mining leases granted by a State Government, no such authorisation shall be made except after consultation with the State Government.

(2) On the issue of any authorisation under sub-section (1), it shall be lawful for the Geological Survey of India or the specified authority or agency, and its servants and workmen- 

(a) to enter upon such land,

(b) to dig or bore into the sub-soil,

(c) to do all other acts necessary to determine the extent of any mineral available in or under such land,

(d) to set out boundaries of the land in which any mineral is expected to be found,

(e) to mark such boundaries and line by placing marks,

(f) where otherwise the survey cannot be completed on the boundaries and line marked, to cut down and clear away any part of any standing crop, fence or jungle : Provided that no such authority or agency shall enter into any building or upon any enclosed court or garden attached to a dwelling house (except with the consent of the occupier thereof) without previously giving such occupier at least seven days' notice in writing of its intention to do so.

(3) Whenever any action of the nature specified in sub-section (2) is to be taken, the Central Government shall, before or at the time when such action is taken, pay or tender payment for all necessary damage which is likely to be caused, and in case of dispute as to the sufficiency of the amount so paid or tendered or as to the person to whom it should be paid or tendered, the Central Government shall refer the dispute to the principal Civil Court of original jurisdiction having jurisdiction over the land in question.

(4) The fact that there exists any such dispute as is referred to in subsection (3) shall not be a bar to the taking of any action under sub-section (2)-.

(5) After the completion .of the investigation, the Geological Survey of India or the specified authority or agency by which the investigation was made shall submit to the Central Government a detailed report indicating therein the extent and nature of any mineral which lies deposited in or under the land.

(6) The costs of the investigation made under this section shall be borne by the Central Government: Provided that where the State Government or other person in whom the minerals are vested or the holder of any prospecting licence or mining lease applies to the Central Government to furnish to it or him a copy of the report submitted under sub-section (5), that State Government or other person or the holder of a prospecting licence or mining lease, as the case may be, shall bear such reasonable part of the costs of investigation as the Central Government may specify in this behalf and shall, on payment of such part of the costs of investigation, be entitled to receive from the Central Government a true copy of the report submitted to it under sub-section (5)-.]

SECTION 19: PROSPECTING LICENCES AND MINING LEASES TO BE VOID IF IN CONTRAVENTION OF ACT

Any107["reconnaissance permit, prospecting licence or mining lease"]granted, renewed or acquired in contravention of the provisions of this Act or any rules or orders made thereunder shall be void and of no effect.

SECTION 20: ACT AND RULES TO APPLY TO ALL RENEWALS OF PROSPECTING LICENCES AND MINING LEASES

The provisions of this Act and the rules made thereunder shall apply in relation to the renewal after the commencement of this Act of any prospecting licence or mining lease granted before such commencement as they apply in relation to the renewal of a prospecting licence or mining lease granted after such commencement.

SECTION 21: PENALTIES

100 108(1) Whoever contravenes the provisions of sub-section (1) or subsection (1A) of Section 4 shall be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twenty-five thousand rupees, or with both.

(2) Any rule made under any provision of this Act may provide that any contravention thereof shall be punishable 103[with imprisonment for a term which may extend to one year, or with fine which may extend to five thousand rupees], or with both, and in the case of a continuing contravention, with an additional fine which may extend to104[five hundred rupees] for every day during which such contravention continues after conviction for the first such contravention.

101[(3) Where any person trespasses into any land in contravention of the provisions of sub-section (1) of section 4-, such trespasser may be served with an order of eviction by the State Government or any authority authorised in this behalf by that Government and the State Government or such authorised authority may, if necessary, obtain the help of the police to evict the trespasser from the land.

109(4) Whenever any person raises, transports or causes to be raised or transported, without any lawful authority, any mineral from any land, and, for that purpose, uses any tool, equipment, vehicle or any other thing, such mineral, tool, equipment, vehicle or any other thing shall be liable to be seized by an officer or authority specially empowered in this behalf.

(4A) Any mineral, tool, equipment, vehicle or any other thing seized under sub-section (4), shall be liable to be confiscated by an order of the court competent to take cognizance of the offence under sub-section (1) and shall be disposed of in accordance with the directions of such court."]

(5) Whenever any person raises, without any lawful authority, any mineral from any land, the State Government may recover from such person the mineral so raised, or where such mineral has already been disposed of, the price thereof, and may also recover from such person, rent, royalty or tax, as the case may be, for the period during which the land was occupied by such person without any lawful authority.]

106[(6) Notwithstanding anything contained in the Code of Criminal Procedure, 1973, an offence under sub-section (1) shall be cognizable.]

SECTION 22: COGNIZANCE OF OFFENCES

- No Court shall take cognizance of any offence punishable under this Act or any rules made thereunder except upon complaint in writing made by a person authorised110in this behalf by the Central Government or the State Government.

SECTION 23: OFFENCES BY COMPANIES

- (1) If the persons committing an offence under this Act or any rules made thereunder is a company, every person who at the time the offence was committed was in charge of, .and was responsible to the company for the conduct of the business of the company, shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly. Provided that nothing contained in this sub-section shall render any such person liable to any punishment, if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent the commission of such offence.

(2) Notwithstanding anything contained in sub-section (1), where an offence under this Act has been committed with the consent or connivance of any director, manager, secretary or other officer of the company, such director, manager, secretary or other officer shall be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly.

SECTION 23A: COMPOUNDING OF OFFENCES

111- (1) Any offence punishable under this Act or any rule made thereunder may, either before or after the institution of the prosecution, be compounded by the person authorised under section 22 to make a complaint to the Court with respect to that offence, on payment to that person, for credit to the Government, of such sum as that person may specify: Provided that in the case of an offence punishable with fine only, no such sum shall exceed the maximum amount of fine which may be imposed for that offence.

(2) Where an offence is compounded under sub-section (1), no proceeding or further proceeding, as the case may be, shall be taken against the offender in respect of the offence so compounded, and the offender, if in custody, shall be released forthwith.]

SECTION 23B: POWER TO SEARCH

112- If any Gazetted Officer of the Central or a State Government authorised by the Central Government113["or a State Government, as the case may be,"]in this behalf by general or special order has reason to believe that any mineral has been raised in contravention of the provisions of this Act or the rules made thereunder or any document or thing in relation to such mineral is secreted in any place114["or vehicle"], he may search for such mineral document or thing and the provisions of section 100 of the Code of Criminal Procedure, 1973shall apply to every such search.]

SECTION 23C: POWER OF STATE GOVERNMENT TO MAKE RULES FOR PREVENTING ILLEGAL MINING, TRANSPORTATION AND STORAGE OF MINERALS

115- (1) The State Government may, by notification in the Official Gazette, make rules for preventing illegal mining, transportation and storage of minerals and for the purposes connected therewith.

(2) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- 

(a) establishment of check-posts for checking of minerals under transit;

(b) establishment of weighbridges to measure the quantity of mineral being transported;

(c) regulation of mineral being transported from the area granted under a prospecting licence or a mining lease or a quarrying licence or a permit, in whatever name the permission to excavate minerals, has been given;

(d) inspection, checking and search of minerals at the place of excavation or storage or during transit;

(e) maintenance of registers and forms for the purposes of these rules;

(f) the period within which and the authority to which applications for revision of any order passed by any authority be preferred under any rule made under this section and the fees to be paid therefor and powers of such authority for disposing of such applications; and

(g) any other matter which is required to be, or may be, prescribed for the purpose of prevention of illegal mining, transportation and storage of minerals.

(3) Notwithstanding anything contained in Section 30, the Central Government shall have no power to revise any order passed by a State Government or any of its authorised officers or any authority under the rules made under sub-sections (1) and (2).

SECTION 24: POWER OF ENTRY AND INSPECTION

- (1) For the purpose of ascertaining the position of the working, actual or prospective, of any mine or abandoned mine or for any other purpose connected with this Act or the rules made thereunder, any person authorised by the119["Central Government or a State Government"] in this behalf, by general117[***] order, may- 

(a) enter and inspect any mine;

(b) survey and take measurements in any such mine;

(c) weigh, measure or take measurements of the stocks of minerals lying at any mine;

(d) examine any document, book, register, or record in the possession or power of any person having the control of, or connected with, any mine and place, marks of identification thereon, and take extracts from or make copies of such document, book, register or record;

(e) order the production of any such document, book, register, record, as is referred to in clause (d); and

(f) examine any person having the control of, or connected with, any mine.

(2) Every person authorised by the118["Central Government or a State Government"] under sub-section (1) shall be deemed to be a public servant within the meaning of section 21-of the Indian Penal Code, and every person to whom an order or summons is issued by virtue of the powers conferred by clause (e) or clause (f) of that sub-section shall be legally bound to comply with such order or summons, as the case may be.

SECTION 24A: RIGHTS AND LIABILITIES OF A HOLDER OF PROSPECTING LICENCE OR MINING LEASE

120- (1) On the issue of a121["reconnaissance permit, prospecting licence or mining lease"]under this Act and the rules made thereunder, it shall be lawful for the122["holder of such permit, licence or lease"], his agents or his servants or workmen to enter the lands over which123["such permit, lease or licence had been granted"]at all times during its currency and carry out all such124["reconnaissance, prospecting or mining operations"] as may be prescribed : Provided that no person shall enter into any building or upon an enclosed Court or garden attached to a dwelling-house (except with the consent of the occupier thereof) without previously giving such occupier at least seven days' notice in writing of his intention to do so.

(2) The holder of a 125["reconnaissance permit, prospecting licence or mining lease"]referred to in sub-section (1) shall be liable to pay compensation in such manner as may be prescribed to the occupier of the surface of the land granted under126["such permit, licence or lease"]for any loss or damage which is likely to arise or has arisen from or in consequence of the127["reconnaissance, mining or prospecting operations"].

(3) The amount of compensation payable under sub-section (2) shall be determined by the State Government in the manner prescribed.]

SECTION 25: RECOVERY OF CERTAIN SUMS AS ARREARS OF LAND REVENUE

- 128[(1)] Any rent, royalty, tax, fee or other sum due to the Government under this Act or the rules made thereunder or under the terms and conditions of ny129["reconnaissance permit, prospecting licence or mining lease"]may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as an arrear of land revenue.

128[(2) Any rent, royalty, tax, fee or other sum due to the Government either under this Act or any rule made thereunder or under the terms and conditions of any 130["reconnaissance permit, prospecting licence or mining lease"]may, on a certificate of such officer as may be specified by the State Government in this behalf by general or special order, be recovered in the same manner as if it were an arrear of land revenue and every such sum which becomes due to the Government after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, together with the interest due thereon, shall be a first charge on the assets of the holder of the 131["reconnaissance permit, prospecting licence or mining lease"], as the case may be.]

SECTION 26: DELEGATION OF POWERS

- (1) The Central Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification be exercisable also by- 

(a) such officer or authority subordinate to the Central Government; or

(b) such State Government or such officer or authority subordinate to a State Government; as may be specified in the notification.

(2) The State Government may, by notification in the Official Gazette, direct that any power exercisable by it under this Act may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification, be exercisable also by such officer or authority subordinate, to the State Government as may be specified in the notification.

(3) Any rules made by the Central Government under this Act may confer powers and impose duties or authorise the conferring of powers and imposition of duties upon any State Government or any officer or authority subordinate thereto.

SECTION 27: PROTECTION OF ACTION TAKEN IN GOOD FAITH

No such, prosecution or other legal proceeding shall lie against any person for anything which is in good faith done or intended to be done under this Act.

SECTION 28: RULES AND NOTIFICATIONS TO BE LAID BEFORE PARLIAMENT AND CERTAIN RULES TO BE APPROVED BY PARLIAMENT

- 132[(1) Every rule and every notification made by the Central Government under this Act shall be laid, as soon as may be after it is made, before each House of Parliament while it is in session for a total period of thirty days which may be comprised in one session or in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, both Houses agree in making any modification in the rule or notification or both Houses agree that the rule or notification should not be made.the rule or notification shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that any such modification or annulment shall be without prejudice to the validity of anything previously done under that rule or notification.]

(2) Without prejudice to the generality of the rule-making power vested in the Central Government, no rules made with reference to clause (c) of sub-section (2) ofsection 16-shall come into force until they have been approved, whether with or without modificatioins, by each House of Parliament.

133[(3) Every rule and every notification made by the State Government under this Act shall be laid, as soon as may be after it is made, before each House of the State Legislature where it consists of two Houses, or where such Legislature consists of one House, before that ouse.]

SECTION 29: EXISTING RULES TO CONTINUE

- All rules made or purporting to have been made under the Mines and Minerals (Regulation and Development) Act, 1948, shall, in so far as they relate to matters for which provision is made in this Act and are not inconsistent therewith, be deemed to have been made under this Act as if this Act had been in-force on the date on which such rules were made and shall continue in force unless and until they are superseded by any rules made under this Act.

SECTION 30: POWER OF REVISION OF CENTRAL GOVERNMENT

The Central Government may, of its own motion or on application made within the prescribed time by an aggrieved party, revise any order made by a State Government or other authority in exercise of the powers conferred on it by or under this Act134[with respect to any mineral other than a minor mineral].

SECTION 30A: SPECIAL PROVISIONS RELATING TO MINING LEASES FOR COAL GRANTED BEFORE 25TH OCTOBER, 1949

-135Notwithstanding anything contained in this Act. the provisionsof sub-section (l) ofsection 9-137and of sub-section (1) ofsection 16-shall not apply lo or in relation to mining leases granted before the 25th day of October. 1949. in respect of coal, but the Central Government, if it is satisfied that it is expedient so to do, may, by notification in the Official Gazette, direct that all or any of the said provisions (including any rules made undersections 13 and 18-) shall apply to or in relation to such leases subject to such exceptions and modifications, if any, as may be specified in that or in any subsequent notification.]

SECTION 31: RELAXATION OF RULES IN SPECIAL CASES

The Central Government may, if it is of opinion that in the interests of mineral development it is necessary so to do, by order in writing and for reasons to be recorded, authorise in any case the grant, renewal or transfer of any139["reconnaissance permit, prospecting licence or mining lease"], or the working of any mine for the purpose of searching for or winning any mineral, on terms and conditions different from those laid down in the-rules made under section 13.

SECTION 32: AMENDMENTS TO ACT 53 OF 1948

-[Repeated by Act 58 of I960].

SECTION 33: VALIDATION OF CERTAIN ACTS AND INDEMNITY

All acts of executive authority done, proceedings taken and sentences passed under the Mines and Minerals (Regulation and Development) Act, 1948, with respect to the regulation of mines and the development of minerals during the period commencing on the 26th day of January, 1950, and ending with the date of commencement of this Act by the Government or by any officer of the Government or by any other authority in the belief or purported belief that the acts. proceedings or sentences were being done, taken or passed under the said Act, shall be as valid and operative as if they had been done, taken or passed in accordance with law, and no suit or other legal proceeding shall be maintained or continued against any person whatsoever, on the ground that any such acts, proceedings or sentences were not done. taken or passed in accordance with law.

SCHEDULE 1 SPECIFIED MINERALS

[THE FIRST SCHEDULE [Sec Sectiohs 4(3). 5(1), 7(2) and 8(2)]

PART A HYDRO CARBONS/ENERGY MINERALS

1. Coal and lignite.

PART B ATOMIC MINERALS

Beryl and other beryllium-bearing minerals. 2. Lithium-bearing minerals. 3. Minerals of the "rare earths" group containing uranium and thorium. 4. Niobium-bearing minerals. 5. Phosphorites and other phosphatic ores containing uranium. 6. Pitchblende and other uranium ores.["7. Titanium bearing minerals and ores (Ilmenite, Rutile and Leucoxene).] 8. Tantallium-bearing minerals. 9. Uraniferous allanite, monazite and other thorium minerals. 10. Uranium bearing tailings left over from ores after extraction of copper and gold, ilmenite and other titanium ores.[11. Zirconium bearing minerals and ores including zircon."]

PART C METALLIC AND NON-METALLIC MINERALS.

Asbestos. 2. Bauxite. 3. Chrome ore. 4. Copper ore. 5. Gold. 6. Iron ore. 7. Lead. Manganese ore. 10, Precious stones. 11. Zinc.]

SCHEDULE 3 THIRD SCHEDULE

(Seesection 9A-)

Footnotes:

1. The Act has now been extended to the Union Territories of (1) Goa, Daman and Diu by Regn. 12 of 1962 (1-10-1963 and 15-1-1966); (2) Dadra.and Nagar Haveli by Regn. 6 of 1963 (1-7-1965) and (3) Pondicherry by Regn. 7 of 1963 (1-10-1963). Enforced in State of Sikkim on 7-1-1980-See G.S.R. 2(E), dated 5-1-1980, published in Gaz. of India, 5-1-1980, Pt. II, section 3(i), Ext., p. 4.

2. The Act came into force on 1-6-1958, see Notfn. No. G.S.R. 432, dated 29-5-1958, published in Gaz. of India, 1958, Extra., Pt. II, section 3(i), p. 225.

4. Substituted for "(Regulation and Development)", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

5. For declaration of boulder, shingle, chalcedony pebbles used for ball mill purposes only, limeshell, kankar and limestone used in kilns for manufacture of lime, etc., see G.S.R. 436, dated 1-6-1958, published in Gaz. of India, 1958, Extra., Pt. II, section 3(i), page 229/1, as am. by G.S.R. 1199 of 1960, dated 12-9-1961. Marble has been declared as a major mineral-See G.S.R. 1041, published in Gaz. of India,' 12-5-1959, Pt. II, section 3(i), p. 1249; stones used for making household utensils so declared-See G.S.R. 642, Gaz. of India, 11 -6-1960, Pt. II, section 3(i), p. 870; Quartzite and sandstone when used for purposes of building or making road metal and household utensils as minor minerals-See G.S.R. 341, Gaz. of India, 6-3-1965, Pt. II, section 3(i), p. 405; Saltpetre so declared, see G.S.R. 124, Gaz. of India, 21-1-1967, Pt. II, section 3(i), p. 156.

6. Inserted by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 2 (10-12-87).

7. Inserted by Goa, Daman and Diu Mining Concessions (Abolition and Declaration as Mining Leases) Act (16 of 1987), section 14 (w.r.e.f. 1-10-63).

8. Omited for "and", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

9. Inserted vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

10. Substituted for "No person shall undertake any prospecting or mining operations in any area, except under and inaccordance with the terms and conditions of a prospecting licence or, as the case may be, a mining lease, granted under this Act and the rules made thereunder: ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

11. Substituted for "the Atomic Minerals Division ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

12. Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

13. Substituted for "undertake prospecting or mining operations with respect to any minerals specified in the First Schedule in any area within the State which is not already held under any prospecting licence or mining lease.", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

14. Substituted for "No prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

15. Substituted by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 3 (10-12-87).

16. Words ".after consultation with the Central Government" omitted, by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994), section 2 (w.r.e.f.25-1-94).

17. Substituted for the words "one year", by Mines and Minerals (Regulation and Development) Amendment Act.

18. Omited for "Provided that the State Government- may, after the premature termination of a prospecting licence or mining lease under sub-section (1) or sub-section (2), as the base may be, grant a prospecting licence or mining lease in favour of such Government company or corporation owned or controlled by Government as it may think fit.", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

19. Substituted by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 4 (10-12-87).

20. Sub-section (1) substituted, by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994), section 3 (w.r.e.f. 25-1-94).

22. Substituted for "prospecting licence or mining lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

23. Substituted for " (a) there is evidence to show that the area for which the lease is applied for has been prospected earlier and the existence of mineral contents therein has been established : c [* * *] (b) there is a mining plan duly approved by the Central Government for the development of mineral deposits in the area concerned.] ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

24. Substituted by Mines and Minerals (Development and Regulation) Amendment Act, 1972 (56 of 1972),section 3(i) (12-9-1972).

25. Inserted by Mines and Minerals (Regulation and Development) Amendment Act, section 3(ii) (12-9-1972).

26. Words "in any one State" omitted, by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 5 (10-12-87).

27. Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

28. Inserted vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

29. Substituted for " (c) any mining lease or prospecting licence in respect of an area which is not compact or contiguous: Provided that if the Central Government is of opinion that in the interests of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any person to acquire a prospecting licence or mining lease in relation to any area which is not compact or contiguous.] ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

30. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

31. Substituted for "prospecting licence or mining lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

32. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

33. Substituted by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994), section 4 (w.r.e.f. 25-1-94).

34. Substituted for "a prospecting licence ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

35. Substituted for "a mineral included in ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

36. Substituted by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 7 (10-12-87).

37. Substituted, by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994), section 5 (w.r.e.f. 25-1-94).

38. Substituted for the words "two periods each not exceeding ten years", by Mines and Minerals (Regulation and Development) Amendment Act.

40. Omited for "Provided that no mining lease granted in respect of a mineral specified in the First Schedule shall be renewed except with the previous approval of the Central Government.]", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

41. Substituted for " (3) Notwithstanding anything contained in sub-section (2), if the Central Government is of opinion that in the interests of mineral development it is necessary so to do, it may for reasons to be recorded, authorise the renewal of a mining lease for a further period or periods not exceeding d [twenty years in each case]. ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

42. Substituted for the words "mineral removed by him", by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), section 4(i) (12-9-1972).

43. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act, section 4(ii) (12-9-1972).

44. Substituted, by Mines and Minerals (Regulation and Development) Amendment Act, section 4(iii) (12-9-1972).

45. Substituted for the words "four years", by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 8 (10-12-87).

46. Inserted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972),section 5 (12-9-1972).

47. Substituted for the words "four years", by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 9 (10-12-87).

49. Substituted for "a prospecting licence or a mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

50. Substituted for " licence or lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

51. Substituted for " 11 . Preferential right of certain persons .- (1) Where a prospecting licence has been granted in respect of any land, the licensee shall have a preferential right for obtaining a mining lease in respect of that land over any other person: a [Provided that the State Government is satisfied that the licensee- (a) has undertaken prospecting operations to establish mineral resources in such land; (b) has not committed any breach of the terms and conditions of the prospecting licence;and (c) is otherwise a fit person for being granted the mining lease.] (2) Subject to the provisions of sub-section (1), where two or more persons have applied for a prospecting licence or a mining lease in respect of the same land, the applicant whose application was received earlier shall have a preferential right for the grant of the licence or lease, as the case may be, over an applicant whose applicatioin was received later: Provided that where any such applications are received on the same day, the State Government, after taking into consideration the matters specified in sub-section (3), may grant the prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit. (3) The matters referred to in sub-section (2) are the following:- (a) any special knowledge of, or experience in, prospecting operations or mining operations, as the case may be, possessed by the applicant; (b) the financial resources of the applicant; (c) the nature and quality of the technical staff employed or to be employed by the applicant; (d) such other matters as may be prescribed. (4) Notwithstanding anything contained in sub-section (2) but subject to the provisions of sub-section (1), the State Government may for any special reasons to be recorded and with the previous approval of the Central Government, grant a prospecting licence or a mining lease to an applicant whose application was received later in preference to an applicant whose application was received earlier. ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

52. For Mineral Concession Rules, 1960, see G.S.R. 1398, Gaz. of India, 26-11-1960, Pt. II, section3(i), p. 1832.

53. Clauses (d) and (o) omitted by Mines arid Minerals (Regulation and Development) Amendment Act (37 of 1986), section 10 (10-12-1987).

54. Clause (i) substituted, by Mines and Minerals (Regulation and Development) Amendment Act.

55. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act.

56. Substituted for " (c) a register of applications for mining leases; and (d) a register of mining lessees; in each of which shall be entered such particulars as may be prescribed. ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

57. Substituted for "prospecting licences and mining leases", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

58. Substituted for "prospecting licences or mining leases", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

59. Substituted for "prospecting licences or mining leases ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

60. Substituted for "prospecting licences or mining leases", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

61. Substituted for "such a licence or lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

62. Substituted for "obtaining a prospecting licence or a mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

63. Substituted for "a prospecting licence or a mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

64. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

65. Substituted for "prospecting or mining operations", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

66. Substituted for "prospecting licences ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

67. Inserted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972),section 6 (12-9-1972).

69. Substituted for the words and figures "sections 4 to 13"; by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 12 (10-12-1987).

70. Following are some of the Rules made under this provision. (1) Rajasthan Minor Mineral Concession Rules, 1959-Raj. Gaz., 25-1-1960, Pt. IV (Ga), Ext" p. 1011. (2) J. and K. Minor Minerals Concession Rules, 1962-J. and K. Gaz., 14-4-1962, Pt. III, Ext" p. 1. (3) Kerala Minor Minerals Concession Rules, 1967-Ker Gaz., 12-12-1967, Pt. 1, S. IV, No. 49. (4) Mysore Minor Minerals Concession Rules, 1969-Mys. Gaz., 1969, Pt. IV, sectiosn 2-C(i), Ext" p. I (25-4-1969). (5) H.P. Minor Minerals Concession Rules, 1971-H.P. Gaz., 5-5-1971, Ext" p. 269.

71. Substituted for the words "prospecting licences and mining leases" by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), section 8(i) (12-9-1972).

72. Inserted by Mines and Minerals (Regulation and Development) Amendment Act, section 8(ii) (12-9-1972).

73. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 13 (10-12-1987).

74. Substituted for the word "royalty", by Mines and Minerals (Regulation and Development) Amendment Act.

75. Substituted for the word, "three", by Mines and Minerals (Regulation and Development) Amendment Act.

76. The section was enforced in Goa, Daman and Diu from 15-1-1966, see Goa Gaz, 13-1-1966, Ext., p. 604..

77. Substituted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), section 9 (12-9-1972).

79. Substituted for the word "if in force at such commencement, shall be brought into conformity with the provisions of this Act, and the rules made thereunder, within six months from such commencement," by Mines and Minerals (Regulation and Development) (Amendment) Act (25 of 1994), section 6 (w.r.e.f. 25-1-1994).

80. Substituted for the words, brackets and figures "six months from the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972," by Mines and Minerals (Regulation and Development) Amendment Act.

81. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act.

82. Word "only" omitted by the Mines and Minerals (Regulation and Development) AmendmentAct, 1972 (56 of 1972), section 10(i) (12-9-1972).

83. Inserted by Mines and Minerals (Regulation and Development) Amendment Act, section 1O(ii) (12-9-1972).

84. Substituted for "prospecting or mining operations", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

85. Substituted for "prospecting licence or mining lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

86. Substituted for "prospecting or mining operations ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

87. Substituted for "prospecting fee", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

88. Substituted for "prospecting licence or mining lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

89. Substituted for "prospecting licence, or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

90. Substituted for "prospecting or mining operations ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

91. Inserted by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 14 (10-12-1987).

92. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994), section 7 (w.r.e.f 25-1-1994).

93. Words "or by the Central Government," omitted, by Mines and Minerals (Regulation and Development) Amendment Act.

95. Substituted for the words "for the conservation and development of minerals in India" by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 15 (10-12-1987).

96. Substituted for the words "tor that purpose," by Mines and Minerals (Regulation and Development) Amendment Act.

97. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act.

98. For the Minerals Conservation and Development Rules, 1958 made in supersession of the Minerals Conservation and Development Rules, 1955, see G.S.R. 441 dated 1-6-1958 published in Gaz. of India. 1958, Extra.. Pt. II, section 3(i), page 229/2.

99. Inserted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972),section 2 (12-9-1972).

100. Substituted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), section 12(i) (12-9-1972).

101. Inserted by Mines and Minerals (Regulation and Development) Amendment Act, section 12(ii) (12-9-1972).

103. Substituted for the words "with imprisonment tor a term which may extend to six months, or with fine which may extend to one thousand rupees," by Mines and Minerals (Regulation and Development) Amendment Act.

104. Substituted for the words "one hundred rupees," by Mines and Minerals (Regulation and Development) Amendment Act.

106. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act.

107. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

108. Substituted for " [(1) Whoever contravenes the provisions of sub-section ( 1 ) of section 4 shall be punished c [with imprisonment for a term which may extend to two years, or with fine which may extend to ten thousand rupees], or with both.] ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

109. Substituted for " (4) Whenever any person raises, without any lawful authority, any mineral from any land, and, for that purpose, brings on the land any tool, equipment, vehicle or any other thing, such mineral, tool, equipment, vehicle or other thing shall be liable to be seized by f [an officer or authority] specially empowered in this behalf. ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

110. For persons authorised under this section, see G.S.R. 1201. published in Gaz. of India, 24-5-1969, Pt. II, section3(i),p.l361.

111. Inserted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972), section 13 (12-9-1972).

112. Inserted by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994), section 9 (w.r.e.f. 25-1-1994).

113. Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

114. Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

115. Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

117. Omited for "or special", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

118. Substituted for "Central Government", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

119. Substituted for "Central Government", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

120. Inserted by Mines and Minerals (Regulation and Development) Amendment Act (37 of 1986), section 17 (10-12-1987).

121. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

122. Substituted for "holder of such licence or lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

123. Substituted for "such lease or licence had been granted ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

124. Substituted for "prospecting or mining operations ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

125. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

126. Substituted for "such licence or lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

127. Substituted for "mining or prospecting operations", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

128. Section 25 renumbered as sub-section ( 1 ) thereof and after sub-section (1) as so renumbered sub-section (2) inserted by the Mines and Minerals (Regulation and Development) Amendment Act, 1972 (56 of 1972). section 14 (12-9-1972).

129. Substituted for " prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

130. Substituted for "prospecting licence or mining lease ", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

131. Substituted for "prospecting licence or mining lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

132. Substituted by Mines and Minerals (Regulation and Development) Amendment Act. 1972 (56 of 1972). S. 15 (12-9-1972).

133. Inserted, by Mines and Minerals (Regulation and Development) Amendment Act (25 of 1994). S. 10 (w.r.e.f. 25-1-94).

134. Inserted by Mines and Minerals (Regulation and Deveclopment) Amendment Act (25 of 1994). S. II (w.r.e.f. 25-1-94).

135. Inserted and deemed always to have been inserted, by the Mines and Minerals (Regulation and Development) Amendment Act, 1958 (XV of 1958). S. 2

137. Provisions of section9(l) have been applied with immediate effect to or in relation lo mining leases in respect of coal. granted before 25-11-1949. supersession of previous notification in this behalf (S.O. 3094, dated 29-12-1961) See S.O. 81. dated 1-1-1966. Gaz. of India. 1-1-1966. Pt. II. S. 3(ii), Ext., p. 1.

139. Substituted for "prospecting licence or mining lease", vide Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 Of 1999), Dt. December 18,1999 Published in Received the assent of the President on December 18, 1999 and published in the Gazette of India, Extra., Pan II, Section 1, dated 20th December, 1999, pp. 1-8, No. 51

MINERALS CONSERVATION AND DEVELOPMENT RULES,1958

RULE 1 SHORT TITLE.

-These rules may be called the Minerals Conservation and Development Rules, 1958.

RULE 2 APPLICATION

-These rules shall not apply to- (i) petroleum and natural gas; (ii) coal; (iii) minor minerals, and

(iv) any minerals declared as prescribed substances for the purposes of the Atomic Energy Act, 1962 (XXXIII of 1962).

RULE 3 DEFINITIONS

-In these rules, unless the context otherwise requires,-

(a) "Act" means the Mines and Minerals (Regulations and Development Act, 1957 (67 of 1957);

(b) "agent" when used in relation to a mine, means any person, whether appointed as such or not, who acts as the representative of the owner in respect of the management of the mine or any part thereof;

(c) "boring" or "drilling" means the penetration of alluvial material, rocks or formations by holes of relatively small diameter for studying the structure of mineral bearing formation and for drawing samples there- from;

2          [(cc) "Controller" means the Controller, Indian Bureau of Mines;]

(d) "development" means the driving of an opening to, or in an ore-body or seam or removing overburden of unproductive or waste materials as preparatory to mining, or sloping;

3          [(e) ***]

(f) "form" means a form set forth in the Schedule to these rules;

(g) "manager", when used in relation to a mine, means any person ap- pointed by the owner or agent for the purposes of controlling, managing and directing the operations of the mine or of any part thereof, and includes the owner or the agent if he appoints himself to be such manager underSec. 17of the Mines Act, 1952 (XXXV of 1952);

(h) "shaft" means a vertical or inclined opening giving access to and scrying various levels below ground of a mine; ana

(i) "stop" means any underground excavation, other than development working made for the purpose of winning ores or minerals.

RULE 4 NOTICE OF PROSPECTING OPERATIONS

-Every holder of a prospecting licenceshall send to the director-

(a) a notice in triplicate in Form A-1, of his intention to start prospecting operations at least thirty days before the commencement of such operations: and

(b) an intimation in triplicate in Form A-2 of the commencement of prospecting operations within seven days of such commencement.

RULE 5 CERTAIN RETURNS TO BE FURNISHED BY HOLDERS OF PROSPECTING LICENCES

(1) Every holder of a prospecting licence shall submit to the Director a return in triplicate in Form B as to reach him within thirty days after the expiration of one year from the commencement of the prospecting licence, or the expiry of the prospecting licence whichever is earlier : Provided that where prospecting operations are abandoned, such return shall be submitted to the4[Controller] in the Form aforesaid within a period of thirty days from the date of such abandonment.

5[(2) The return shall be accompanied by detailed plans and sections showing the locations of bore-holes : pits. trenches, shafts, underground exploratory workings, outcrops, orezones. faults, folds and other geological features and sections of all boreholes and trenches and all analytical data. The return shall also be accompanied by a report discussing the interpretation and the inference drawn as a result of the study of geology of the area and the interpretation of the boreholes cores, pits, trenches, assay data, reserves of ore, and containing the results of a complete analysis of at least two representative samples of ore and the ore blocks proposed for any mining operations. The plans, sections and report referred to above shall be signed and dated by the geologist or mining engineer employed in accordance with sub-rule (1) ofrule 21.

RULE 6 NOTICE OF MINING OPERATIONS

-Every owner, agent or manager of a mine shall send to the4[Controller]-

(a) a notice in triplicate in Form C-1 of his intention to commence mining operations at least thirty days before the commencement of such operations: and

(b) an intimation in triplicate in Form C-2 of the opening of the mine within fourteen days of such opening.

RULE 7 CHANGE IN NAME OF MINE TO BE NOTIFIED

-Every owner, agent or manager of a mine shall send a notice to the4[Controller] of any change in the name of themine within thirty days of such change.

RULE 8 NOTICE OF TRANSFER OF PROSPECTING LICENCE OR MINING LEASE

,-Without prejudice to the provisions of the Act or any rules made thereunder or the terms and conditions of a prospecting licence or mining lease, prohibiting or restricting prospecting licence or a mining lease who transfers or assigns his licence or a lease or any right, title or Interest thereunder to any other person. shall, within thirty days of the date of such transfer or assignment, send an intimation thereof in triplicate, in Form D, to the6[Controller].

RULE 9 NOTICE OF INTENTION OF ABANDONMENT OF MINE

-Every owner, agent or a manager of mine, who intends to abandon the mine shall send to the6[controller], a notice in triplicate so as to reach him at least thirty days before the intended date of such abandonment: Provided that when such abandonment takes place as a result of the occurrence of natural calamity beyond the control of such owner, agent or manager, the notice required under this rule shall be submitted to the6[Controller] within a period of fifteen days of such occurrence.

RULE 10 NOTICE OF ABANDONMENT TO TEMPORARY DISCONTINUANCE OF WORK IN MINES

Every owner, agent or manager of a mine. when the mine is abandoned permanently or work thereon is discontinued temporarily for more than sixty days shall send to the6[Controller] notice In triplicate In Form E-l for abandonment or E-2 for temporary discontinuance, as the case may be, so as to reach him within fifteen days from the date of such abandonment or seventy-five days from the date of such temporary discontinuance.

RULE 11 COPIES OF PLANS AND SECTIONS TO BE FURNISHED ON ABANDONMENT OR TEMPORARY DISCONTINUANCE OF WORK IN MINES

-When any mine or part of a mine Is abandoned, or work thereon Is discontinued for a period exceeding one year. the owner, agent or manager of the mine shall, within three months of the date of such abandonment or within fifteen months of the date of such discontinuance of mining operations, send to the6[Controller] one copy each of the plans and sections7[on a scale not less than 1 cm=10 metres] setting forth as accurately as possible the work done on the mine up to the time of such abandonment or discontinuance, as the case may be : Provided that if a change of ownership takes place any time before the expiry of three months after the date of such abandonment or before the expiry of fifteen months after the date of such discontinuance, one copy each of the said plans and sections shall be submitted to the6[Controller] by the owner, agent or manager showing as accurately as possible the work done on the mine at the time of the abandonment or discontinuance as the case may be, within thirty days of (he date of such change of ownership: Provided further that the6[Controller] may, by an order in writing and subject to such conditions as he may specify therein, permit or require the plans and sections to be prepared on any other suitable scale.

RULE 12 NOTICE OF REOPENING A MINE

8[1] Every owner, agent or manager of a mine shall send to the6 [Controller] - 

9[(a) a notice in triplicate in Form I of his intention to recommence mining operations before a mine is reopened after abandonment or discontinuance at least thirty days before the date of re-opening.)

(b) an intimation in triplicate in Form 2 within fourteen days of re-opening of the mine.

10[(2) A copy of each of the aforesaid returns shall also be sent simultaneously to the State Government concerned or to an officer appointed by the StateGovernment in that behalf.]

RULE 13 NOTICE OF STOPING OF VEIN. ETC

(1) Every owner, agent or manager of a mine11[shall send to the12 [Controller] under registered cover a notice In triplicate] in Form-G intimating his intention to commence the stoping of any vein, lode, reef or mineral deposit, so as to reach the12[Controller] at least forty-five days before the date of commencement of such operations. Such notice shall be accompanied by plans and13[on a scale not less than I cm = 10 metres] showing the details of the block proposed, to be stopped, the manner of stopping and the mineralised and barren zones.

(2) The [Controller] or an officer duly authorised by him In this behalf may by order in writing made before the proposed date of commencement of stoping operations prohibit the stopping or allow it to be done under such conditions as may be specified in the order.

RULE 14 ANNUAL, QUARTERLY, AND MONTHLY RETURNS BY OWNERS, ETC. OF MINES

(1) Every owner, agent or manager of a mine shall submit to the12 [Controller] returns in respect of each individual mine in triplicate in the forms and within the time specified in respect of every such return in the following clauses, namely: 

(a) an annual return: 

(i) in Form H-l in respect of iron-ore :

(ii) In Form H-2 in respect of manganese ore;

(iii) In Form H-3 in respect of lead, zine, copper and pyrites:

(iv) In Form H-4 in respect of metallic minerals other than iron ore, manganese ore, lead. zine copper, and pyrites:

(v) In Form H-5 in respect of mica ;

(vi) In Form H-6 in respect of precious and semi-precious stones: and

(vii) In Form H-7 in respect of non-metallic minerals [other than mica. precious and semi-precious stones and pyrites.]

(b) a monthly returns- 

(i) In Form I in respect of iron-ore : (ii) In Form J in respect of manganese ore: (iii) In Form K In respect of mica : and

(iv) In Form L in respect of all minerals except iron ore, manganese ore and mica.

15        [(c) and quarterly returns in Form '0' in respect of explosives.]

16[(2) A copy each of the aforesaid returns shall also be sent simultaneously to the State Government concerned or to an officer appointed by the State Government in that behalf.]

RULE 15 NOTICE OF CERTAIN APPOINTMENTS

-Every owner of a mine or the holder of a prospecting licence shall, when any appointment is made of an agent or manager or mining engineer or geologist in charge, or when any change occurs in the address of such agent, manager or mining engineer or geologist in charge, send an intimation of such appointment or change of address and the date thereof, to the12[Controller] within thirty days of (he date of such appointment or change of address.

RULE 16 COPIES OF NOTICES AND RETURNS TO BE MAINTAINED

-Ever owner, agent or manager of a mine or the holder or prospecting licence shall maintains copies of all notices and returns submitted to the12[Controller] under these rules, at anoffice established in the area where mining or [Controller] prospecting operations are carried on.

RULE 17 NOTICE OF CERTAIN MINING OPERATION

-Every owner, agent or manager of a mine or the holder of a prospecting licence shall send Intimation In triplicate In Form M to the director, within fifteen days after the commencement of any of the following operations, that is to say:

(a) the sinking of a trial shaft or bore-hole to depth18[exceeding 20 metres]from the surface: or

(b) the extension of an existing shaft or bore-holes to a depth18[exceeding 20 metres]: or

(c) the sinking of a new shaft or bore-hole commencing from underground working.

RULE 18 RECORD OF SHAFTS AND BORC-HOLES

-Every owner, agent or manager of a mine or the holder of a prospecting licence shall keep a record In Form N of all shots or bore-holes exceeding 50ft. In depth and shall retain all records and samples of the strata passed through for a period of not less than six months after the completion of the work or abandonment thereof.

RULE 19 PRESERVATION OF CORES, ETC

-Every owner, agent or manager of a mine or the holder of a prospecting licence shall preserve intact all cores and specimens of different types of rocks and mineral obtained during drilling or sinking operations and arrange for them to be laid out in serial order with Identification marks, showing the progressive depths at which they were obtained. Such specimens shall not be broken except for the purpose of analysis In which case, representative samples of the specimens so broken will be preserved. Such cores and specimens shall be preserved for a period of not less than six months from the date of the completion of drilling or sinking operations. The director may, by order in writing require the cores or specimens of specific bore-holes or shafts to be preserved for any specified period or relax the provisions of the rule to such extent as he may deem fit.

RULE 20 TRANSFER OF RECORDS TO TRANSFEREES

-When the ownership of a prospecting licence or a mining lease is transferred at any time during the period when the operation of sinking a shaft or bore-hole is in progress or within six months after the completion of sinking, drilling or boring operations, all records. specimens, cores and fragments of rocks, obtained during sinking, shall be transferred by the transferee, his agent or manager to comply with all the requirements ofrules, 1718and19

RULE 21 EMPLOYMENT OF GEOLOGIST AND MINING ENGINEER

(1) For the purpose of carrying out prospecting and mining, operations In accordance with the approved practice- 

(i) Every holder of a prospecting licence shall employ a part time or whole-time geologist or mining engineer and :

(ii) Every holder of a mining lease shall employ:- 

(a) In the case of a mine, where the average employment exceeds 150 In working below-ground or 400 In all in the mine, whole-time mining engineer:

(b) in the case of mine where the average employment, 

(i) exceeds 75 but does not exceed 150 in working below-ground; or-

(ii) exceeds 150 but does not exceed 400 in all in the mine, a part time mining engineer;

(c) in the case of any other mine, a part-time mining engineer. Explanation,-The expression 'average employment' means the average per day of the total employment of the mine or mines during the preceding quarter (obtained by dividing the number of mandays worked by the number of working days excluding rest-days and other nonworking days.)

(2)  (i) a mining engineer shall not be employed in two or more mines unless all such mines are located within a contiguous area of not exceeding 500 square kilometres.

(ii) A mining engineer shall not be employed in more than three mines of the category referred to in C1. (b) of sub-rule (1) (ii) or more than six mines of the category referred to in Cl. (c) of sub-rule (1) (ii)

(iii) The20[Controller] may, if the considers necessary on geological considerations require the holder of a mining lease to employ a part-time or whole-time geologist also for one or more mines.

(3) If the holder of prospecting licence or mining lease or his agent is a geologist or mining engineer the requirement of sub-rule (1) shall subject to the provisions of sub-rule (2) be deemed to have been complied with in respect of the mine for which a prospecting licence or mining lease, as the case may be is granted.

(4) A mining engineer or geologist employed by the holder of a prospecting licence or mining lease should possess the qualifications specified below: Geologist.-A diploma in Geology from the Indian School of Mines and Applied Geology, Dhanbad, or a M.Sc., or B.Sc. (Hons.)(3 years degree) In Geology; from any recognised University. Mining Engineer.-A diploma in mining engineering from the Indian School of Mines and Applied Geology, Dhanbad, or degree in mining engineering from any recognised University: Provided that the persons whose qualifications, training and experience a regarded by the Central Government or the [Controller].Indian Bureau of Mine as affording reasonable guarantee of adequate knowledge and competence m also be employed as a whole-time or a part-time geologist or mining engineer I any specified mine or mines or prospects,

RULE 22 22

* * * * ]

RULE 23 POWER OF

20[Controller] to issue directives-22

(1) Every owner, agent or manager of a mine shall comply with such directions, being directions for purposes of providing for the conservation and systematic development of minerals as the20[Controller] may. issue from time to time. A notice indicating the nature of the specific directions proposed to be Issued to any particular mine will be served by the20 [Controller] on the owner, agent or manager of the mine concrned, and to the State Government concerned and any comments received from the owner, agent or manager of the mine and the State Government within thirty days of the date of service of the notice, shall be duly considered by him before issuing any such directions. General directions applicable to a class of mines shall be issued by the20[Controller] with the previous approval of the Central Government in consultation with the State Government concerned.]

[(2) An order made under sub-rule (1) shall- 

(a) in the case of an order of a general nature of affecting a class of persons, be notified in the Official Gazette: and

(b) In the case of an order directed to a specified Individual, be served on such Individual- 

(i) by delivering or tendering It to that Individual, or

(ii) if it cannot be so delivered or tendered, by affixing It on the outer door or some other

conspicuous part of the premises In which that individual lives, and a written report thereof shall be prepared and witnessed by two persons living in the neighbourhood.)

RULE 24 COPY OF SCHEME OF DEVELOPMENT OF MINES TO BE FURNISHED

-Every owner, agent or manager of mine shall, on a requisition made In this behalf by the24[Controller], or any other officer authorised by him In this behalf furnish to him within such time as may be specified In the requisition, a statement showing the broad features of the scheme of development of the mine, together with the requisite plan and section.

RULE 25 EXAMINATION OF MINERAL DEPOSITS AND TAKING OF SAMPLES

-The24[Controller] or any officer duly authorised by the Government to enter and inspect a mine, may examine any mineral deposit In any area under prospecting licence or mining lease and take samples therefrom at any time for the purpose of these rules.

RULE 26 REVISION

Any person aggrieved by any order made or direction issued by the24 [Controller] under these rules, may, within thirty days of the communication of such order or direction, apply to the Central Government for a revision of the order or direction provided that any such application may be entertained after the said period of thirty days If the applicant satisfied the Central Government that he had sufficient cause for not making the application within time.

(2) On receipt of any such application under sub-rule (1), the Central Government shall refer It, for report, to a Board consisting of the following persons nominated by the Central Government, namely: 

(a) a Chairman;

(b) not more than two officials and an equal number of persons representing the owner or agents.

(3) On receipt of the report of the Board, the Central Government may confirm, modify or set aside the order or direction made or Issued by the24[Controller] or may pass such orders in relation to the application as It may deem fit.

RULE 27 PENALTY

(1) If the holder of a prospecting licence or the owner, agent or manager of a mine refuses or without lawful excuse neglects- 

(a) to give or furnish within the specified time any notice. Intimation or return required by these rules or In giving such notice or Intimation or furnishing such return, makes25[any statement which he knows to be false or does not believe It to be true In any material particular], or

(b) to send to the24[Controller] one copy of each of the plans and sections as required byrule 11, or

(c) to maintain records and preserve cores and samples as required by rules 18,rule 19 or rule 20or to employ whole-time or a part-time geologist or a mining engineer as required byrule 21, or

(d) to allow the director or any authorised person to examine any mineral deposits or to take sample therefrom as provided inrule 25. he shall be punishable with Imprisonment which may extend to six months or with fine which may extend to one thousand rupees or with both and In the case of a continuing contravention, with an additional fine which may extend to one hundred rupees for every day during which such contravention continues after conviction for the first such contravention.

(2) If any owner, agent or manager of a mine refuses or without lawful excuse neglects to comply with any direction issued by the [Controller] underrule 23or any requisition made underrule 24, he shall be punishable with Imprisonment which may extend to six months or with fine whlch may extend to one thousand rupees or with both and in the case of a continuing contravention, with an additional fine which may extend to one hundred rupees for every day during which such' contravention continues after conviction for the first such contravention.

Footnotes:

2. Ins. by G.S.R. 1179, dated 22nd July, 1966.

3. Omitted by M.

4. Subs. by G.S.R. 1179. dated 22ndJuly, 1966.

5. Subs. by Notification No. M 11- 185(6) 59. dated 17th January, 1962.

6. Subs. by G.S.R. 1 179, dated 22nd July. 1966.

7. Subs.byG.S.R. 1531,dated 20th December, 1961.

8. Renumbered by G.S.R. 1458, dated 10th December, 1960.

9. Subs. by G.S.R. 387. dated 19th March, 1959.

10. Ins. by G.S.R. 14.58, dated 10th December, 1960.

11. Subs. by G.S.R. 695, dated 10th August. 1959.

12. Subs. by G.S.R. 1 179. dated 22nd July, 1966.

13. Subs. by G.S.R. 1531, dated 20th December. 1961.

15. Ins. by Notifi No. Mll-185 (2) 60, dated 1st December, 1960.

16. Ins. by Notifi. No. Mll-185 (5) 62, dated 27th February, 1963.

18. Subs. by G.S.R. 1531, dated 20th December, 1961.

20. Subs.by G.S.R. 1179,dated 22nd July. 1966.

22. Subs. by G.S.R. 651. dated 27th April. 1961.

24. Subs. by G.S.R. 1179. dated 22nd July. 1966.

25. Subs. by G.S.R. 387. dated 19th March, 1959.

MINERAL CONCESSION RULES, 1960

In exercise of the powers conferred by section 13 of the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules, namely:-

RULE 1. SHORT TITLE

These rules may be called the Mineral Concession Rules, 1960.

RULE 2. DEFINITIONS

In these rules, unless the context otherwise requires,-

(i) "Act" means the Mines and Minerals1[(Development and Regulation)] Act, 1957 (67 of 1957);

(ii) "Form" means a form set out in Schedule I to these rules;

(iii) "railway" and "railway administration" have the meanings respectively assigned to them in the Indian Railways Act, 1890 (9 of 1890);

(iv) "Schedule" means a Schedule appended to these rules;

(v) "section" means a section of the Act.

RULE 3. SAVING OF ACT 33 OF 1962

Nothing in these rules shall effect the provisions of the Atomic Energy Act, 1962 (33 of 1962)3[and the rules made thereunder in respect of licensing relating to atomic minerals listed in Part B of the First Schedule to the Act].]

RULE 4. APPLICATION FOR RECONNAISSANCE PERMIT

(2) (a) Every such application shall be accompanied by a non-refundable fee calculated at the rate of five rupees per square kilometer.

(b) A valid clearance certificate, in the form prescribed by the State Government for payment of mining dues, such as royalty or dead rent or surface rent payable under the Act or rules made thereunder, from that Government or any officer or authority authorised by that Government in this behalf: 

PROVIDED that where a person has furnished an affidavit to the satisfaction

of the State Government stating that he does not hold and has not held a

reconnaissance permit, it shall not be necessary for him to produce the said valid clearance certificate:

PROVIDED that an affidavit stating that no dues are outstanding shall suffice subject to the condition that the certificate required as above shall be furnished within ninety days of the date of application and the application shall become invalid if the party fails to file the certificate within the said ninety days:

PROVIDED also that where any injunction has been issued by a court of law or any other competent authority staying the recovery of any such mining dues or income-tax, non-payment thereof shall not be treated as a disqualification for the purpose of granting the reconnaissance permit:

PROVIDED FURTHER that in case the applicant is a partnership firm or a private limited company, such certificate shall be furnished by all persons of the partnership firm or, as the case may be, all members of the private limited company.

(c) An affidavit stating that the applicant has-  (i) filed up-to-date income-tax returns; (ii) paid the income-tax assessed on him; and

(iii) paid the income-tax on the basis of his assessment as provided in the Income-tax Act, 1961 (43 of 1961).

(d) An affidavit showing the particulars of areas, mineral-wise in the State, which the applicant or any person jointly with him- 

(i) already holds under a reconnaissance permit; (ii) has applied for but not granted; and (iii) being applied for simultaneously.

RULE 4A. ACKNOWLEDGEMENT OF APPLICATION

(1) Where an application for the grant of reconnaissance permit is delivered personally, its receipt shall be acknowledged forthwith.

(2) Where such application in received by registered post, its receipt shall be acknowledged on the same day.

(3) In any other case, the receipt of such application shall be acknowledged within three days of the receipt.

(4) The receipt of every such application shall be acknowledged in Form D1.

RULE 5. REFUSAL OF APPLICATION FOR A RECONNAISSANCE PERMIT

(1) The State Government may after giving an opportunity of being heard and for reasons to be recorded in writing and communicated to the applicant, refuse to grant a reconnaissance permit over the whole or part of the area applied for.

(2) Where it appears that the application is not complete in all material particulars or is not accompanied by the required documents, the State Government shall, by notice, require the applicant to supply the omission or, as the case may be, furnish the documents without delay and in any case not later than thirty days from the date of receipt of the said notice by the applicant.

RULE 6. STATUS OF GRANT ON DEATH OF THE APPLICANT FOR RECONNAISSANCE PERMIT

(1) Where an applicant for the grant of reconnaissance permit dies before the order granting him a reconnaissance permit is passed, the application for the grant of reconnaissance permit shall be deemed to have been made by his legal representative.

(2) In the case of an applicant in respect of whom an order granting a reconnaissance permit is passed but who dies before the deed referred in sub-rule (1) of rule 7A is executed, the order shall be deemed to have been passed in the name of the legal representative of the deceased.

RULE 7. CONDITIONS OF A RECONNAISSANCE PERMIT

(1) Every reconnaissance permit granted under these rules, shall, in addition to any other conditions that may be specified therein be subject to the following conditions, namely: 

(i) The holder of reconnaissance permit shall progressively relinquish the area granted under the permit as follows:- 

(a) After completion of two years, the area shall be reduced to one thousand square kilometers or fifty per cent of the area granted, whichever is less; and

(b) The area would be further relinquished so that the permit holder is left with an area not more than twenty five square kilometers at the end of the third year.

(ii) The holder of the reconnaissance permit shall strictly adhere to the minimum expenditure commitment and specific physical targets specified in the order of grant of the permit failing which reconnaissance permit may be cancelled.

(iii) The holder of reconnaissance permit shall make available all data collected by him during the reconnaissance operations to the Geological Survey of the India, Indian Bureau of Mines and the State Government which may be made available to any prospecting investor after a minimum period of two years of the completion of the period of reconnaissance permit.

(iv) The holder of reconnaissance permit shall not enter any forest land or any private land without obtaining permission of the Forest Department or the owner of the private land, as the case may be.

(v) The holder of reconnaissance permit shall maintain accurate faithful account of all the expenses incurred by him on the reconnaissance operations.

(vi) The holder of reconnaissance permit shall submit to the State Government a six monthly report of the work done by him and the valuable data collected by him during the period. The report shall be submitted within three months of the close of the period to which it relates.

(vii) The permit holder shall also submit to the State Government within three months of the expiry of the permit, or abandonment of the operations or termination of the permit, whichever is earlier, a full report of the work done by him and all information relevant to mineral resources acquired by him in the course of reconnaissance permit in the area covered by the permit.

(viii) While submitting reports under sub-clause (vi) or (vii), the permit holder may specify that the whole or any part of the report or data submitted by him shall be kept confidential; and the State Government shall thereupon, keep the specified portions as confidential for a period of two years from the expiry of the permit, or abandonment of operations or termination of the permit, whichever is earlier.

(ix) The permit holder shall allow every officer authorised by the Central Government or the State Government in this behalf to examine at any time accounts maintained and furnish to the Central Government or the State Government or any other officer authorised by it in that behalf such information and returns.

(x) The permit holder shall allow any officer authorised by the Central Government or the State Government in this behalf to inspect any reconnaissance operations carried on by him.

(xi) The permit holder shall pay such permit fee as may be fixed by the State Government, being not less than five rupees per square kilometer and not more than twenty rupees per square kilometer of land held by the permit holder for each year or part thereof.

(2) The reconnaissance permit may contain such other conditions as may be imposed by the Central Government which inter-alia, may include the condition that the representative of the Directorate General, Civil Aviation or Ministry of Defence shall be present during the aerial surveys.

(3) The State Government may, with the approval of the Central Government, impose such further conditions in the permit as it may think necessary in the interest of mineral development and for compliance of various legal provisions.

(4) In case of breach of any condition imposed on any holder of reconnaissance permit by or under this rule, the State Government may by order in writing, cancel the permit, and/or forfeit in whole or in part, the amount deposited by the permit holder as security: 

PROVIDED that no such order shall be made without giving the permit holder a reasonable opportunity of stating his case.

RULE 7A. RECONNAISSANCE PERMIT TO BE EXECUTED WITHIN THREE MONTHS

(1) Where on any application for a reconnaissance permit an order has been made for the grant of such permit, a deed granting such permit shall be executed within ninety days of the date of the communication of the order or such further period as the State Government may allow in this behalf, and if no such deed is executed within such period due to any fault on the part of the applicant, the State Government may revoke the order granting the reconnaissance permit and in that event the fee paid shall be forfeited to the State Government.

(2) The deed referred to in sub-rule (1) shall be in Form F-1, or in a Form as near thereto as circumstances of each case may require.

(3) The date of the commencement of the period for which a reconnaissance permit is granted shall be the date on which the deed is executed after all necessary clearances have been obtained.

RULE 7B. SECURITY DEPOSIT

(i) An applicant for a reconnaissance permit shall, before deed referred to in sub-rule (1) of rule 7A is executed, deposit as security for the observance of the terms and conditions of the permit a sum of twenty rupees in respect of every square kilometer or part thereof for which the permit is granted.

(ii) Any deposit made under sub clause (i) above if not forfeited under the rules shall be refunded to the applicant as soon as the report referred to in sub-rule (1)(vii) of rule 7 is submitted.

RULE 7C. PROSPECTING LICENCES AND MINING LEASES OF THE OTHER MINERALS

The applications received for grant of prospecting licences or mining leases within the area granted under reconnaissance permit for minerals other than those for which the permit has been granted, shall not be refused on the grounds that the area is not available for grant. The State Government shall dispose of such applications as per provisions of these rules:

PROVIDED that if a prospecting licence or a mining lease for other mineral has been granted to some other applicant within the area granted for a reconnaissance permit and where the reconnaissance permit holder discovers availability of minerals covered under his permit within the area so granted subsequently for prospecting or mining of minerals other than those covered under the reconnaissance permit, he shall have the right to get such areas vacated from the licensee or the lessee, as the case may be, and such licensee or lessee shall not hinder the reconnaissance operations being undertaken by the reconnaissance permit holder.

RULE 7D. REGISTERS

(1) A register of applications for reconnaissance permits shall be maintained by the State Government in Form G-1.

(2) A register of reconnaissance permits shall be maintained by State Government in Form H-1.]

RULE 8. APPLICABILITY OF CHAPTER II, CHAPTER III AND CHAPTER IV

The provisions of Chapter II, Chapter III and Chapter IV shall apply to the grant of reconnaissance permits as well as grant and renewal of prospecting licences and mining leases only in respect of the land in which the minerals vest in the Government of a State].

RULE 9. APPLICATION FOR PROSPECTING LICENCE AND ITS RENEWAL

(1) An application for5[a prospecting licence and its renewal in respect of land in which the minerals vest in the Government shall be made to the State Government in Form B and Form D respectively] though such officer or authority as the State Government may specify in this behalf.

(2) Every such application shall be accompanied by- 

(a) a6[non-refundable] fee calculated in accordance with the provisions of Schedule II; and7[***]

8[(d) a valid clearance certificate, in the form prescribed by the State Government, of payment of mining dues, such as royalty or dead rent and

surface rent payable under the Act or the rules made thereunder, from that Government or any officer or authority by that Government in this behalf:] 

9[PROVIDED10[* * *] that in case the applicant is a partnership firm or a private limited

company such certificate shall be furnished by all partnersof the partnership firm or, as the case may be, all members of the private limited company:]

11[PROVIDED FURTHER that where any injunction has been issued by court of law or any other competent authority staying the recovery of any such mining dues or income-

tax, non-payment thereof shall not be treated as a disqualification for the purpose of granting or renewing the said prospecting licence: 

PROVIDED that where a person has furnished an affidavit to the satisfaction of the State Government stating that he does not hold and has not held a prospecting licence, it shall not be necessary for him to produce the said valid clearance certificate:

PROVIDED FURTHER that a sworn affidavit stating that no dues are outstanding shall suffice subject to the condition that the certificate required as above shall become invalid if the party fails to file the certificate within the said ninety days;]

12        [(e) an affidavit stating that the applicant has- 

(i) filed up-to-date income-tax returns;

(ii) paid the Income-tax assessed on him; and

(iii) paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961;

(f) an affidavit showing particulars of areas mineral-wise in13[the] State, which the applicant or any person jointly with him- 

(i) already holds under a prospecting licence; (ii) has applied for but not granted; and (iii) being applied for simultaneously;]

14[(g) a statement in writing that the applicant, where the land is not owned by him, has obtained surface rights over the area or has obtained the consent of the owner for starting prospecting operations: 

PROVIDED that no such statement shall be necessary where the land is owned by the Government:

PROVIDED15[***] that the consent of the owner for starting prospecting operations in

the area or part thereof may be furnished after execution of the prospecting licence but before entry into the said area:]

11[PROVIDED FURTHER that no further consent would be required in the case of renewal where consent has already been obtained during grant of the licence.]

16        [***]

17[(3) The State Government may, for reasons to be recorded in writing, relax the provisions of clause (d) of sub-rule (2) of rule 9.

(4) The grant of clearance certificate under clause (d) of sub-rule (2) of rule 9 shall not discharge the holder of such certificate from the liability to pay the mining dues which may subsequently be found to be payable by him under the Act or the rules made thereunder.]

RULE 10. ACKNOWLEDGEMENT OF APPLICATION

(1) Where an application for the grant or renewal of a prospecting licence is delivered personally, its receipt shall be acknowledged forthwith.]

(2) Where such application is received by registered post, its receipt shall be acknowledged on the same day.

(3) In any other case, the receipt of such application shall be acknowledged within three days of the receipt.

(4) The receipt of every such application shall be acknowledged in Form D.18[***]

RULE 11. DISPOSAL OF APPLICATION FOR THE GRANT AND RENEWAL OF PROSPECTING LICENCE

19[***]

20[(2) 

(a) An application for the renewal of prospecting licence shall be made at least ninety days before the expiry of the prospecting licence and shall be accompanied by- 

(i) a statement relating to the prospecting operations already undertaken by the applicant;

(ii) the amount of expenditure incurred;

(iii) the number of hours and days for which the work was undertaken; and

(iv) the period which is required to complete the prospecting work.

(b) An application for the renewal for a prospecting licence shall be disposed of by the State Government before the expiry of the period of prospecting licence and if the application is not disposed of within that period, the licence shall be deemed to have been renewed for a period not exceeding the period for renewal of prospecting licence under sub-section (2) of section 7 of the Act, or the period for which an application is made, whichever is less.]

(3) The State Government may, for reasons to be recorded in writing21[and communicated to the applicant], at the time of renewal, reduce the area applied for.

22[(4) The State Government may condone delay in submission of an application for renewal of a prospecting licence made after the time limit prescribed in sub- rule (2) provided the application for the renewal has been made before expiry of the licence.]

RULE 12. REFUSAL OF APPLICATION FOR A PROSPECTING LICENCE

(1)23[The State Government may,24[after giving an opportunity of being heard and] for reasons to be recorded in writing and communicated to the applicant, refuse to grant or renew a prospecting licence over the whole or part of the area applied for.]

25[(1A) An application for the grant or renewal of a prospecting licence made under rule 9 shall not be refused by the State Government only on the ground that Form B or Form E, as the case may be, is not complete in all material particulars, or is not accompanied, by the documents referred to in26[clauses (d), (e), (f) and (g) of sub-rule (2)] of the said rule.]

25[(1B) Where it appears that the application is not complete in all material particulars or is not accompanied by the required documents, the State Government shall, by notice, require the applicant to supply the omission or, as the case may be, furnish the documents without delay and in any case not later than thirty days from the date of receipt of the said notice by the applicant.]

(2) An application for the grant of a prospecting licence shall not be refused on the ground only that, in the opinion of the State Government, a mining lease should be granted for the area for which the application for a prospecting licence has been made: 

PROVIDED that where applications for the grant of prospecting licence and applications for the grant of mining lease in respect of the same area are received op the same date or on different dates within a period of thirty days, the applications for the grant of mining lease shall, if the area was previously held and worked under a mining lease, be disposed of before the application for the grant of prospecting licence are considered: 

27[PROVIDED FURTHER that the applications received for grant of prospecting licence shall be liable to be considered only if they have not been already disposed of] 28         [***]

RULE 13A. STATUS OF GRANT ON DEATH OF THE APPLICANT FOR PROSPECTING LICENCE

29[ (1) Where an applicant for the grant of a prospecting licence dies before the order granting him a prospecting licence is passed, the applicant for the grant of a prospecting licence shall be deemed to have been made by his legal representative.

(2) In the case of an applicant in respect of whom an order granting a prospecting licence is passed but who dies before the deed referred to in sub-rule (1) of rule 15 is executed, the order shall be deemed to have been passed in the name of the legal representative of the deceased.]

RULE 14. CONDITIONS OF A PROSPECTING LICENCE

(1) Every prospecting licence granted under these rues, shall, in addition to any other conditions may be specified therein, be subject to the following conditions, namely:- 

(i) the licensee shall pay such prospecting fee as may be fixed by the State

Government,31["being not less than rupee one and not more than rupees ten"] per hectare of land covered by the licence for each year or part of a year of the period for which the licence is granted or renewed;

30[(ii) the licensee may win and carry for purposes other than commercial purposes- 

(a) any quantity of such minerals within the limits specified under column 3 of Schedule III without all payment;

(b) any quantity of such minerals not exceeding the limit specified under column 4 of

Schedule III, on payment of royalty for the time being specified in the Second Schedule to the Act in respect of those minerals: 

PROVIDED that if any quantity in excess of the quantities specified in sub-clause (b) is won and carried away, the State Government may recover the cost of the excess quantity of minerals won and carried away;

(iii) with the written approval of the State Government the licensee may carry away quantities of minerals in excess of the limits specified in Schedule III, on payment royalty for the time being specified in the Second Schedule to the Act, for chemical, metallurgical, ore-dressing and other test purposes;]

(iv) save in the case of land in respect of which the licensee is granted a mining lease, he shall, within six months next after the determination of the licence or the date of abandonment of the prospecting operations, whichever is earlier, securely plug all bores and fill up or fence all excavations in the land covered by the licence;32[(the) licensee shall report to the State Government the discovery of any mineral not specified in the licence within a period of sixty days from the date of such discovery. Consequent upon such reporting, such newly discovered mineral shall be deemed to have been included in the prospecting licence;]33*I*

(vii) the licensee shall not, except with the previous sanction of the State Government, transfer his licence: 

34[PROVIDED that no prospecting licence shall be transferred to any person who has not filed an affidavit stating that the has filed an up-to-date income-tax returns and paid the income-tax assessed on him and paid the income-tax on the basis of self-assessment

as provided in the Income Tax Act, 1961 (43 of 1961) and except on payment to the State Government of a fee of five hundred rupees: 

PROVIDED FURTHER that the State Government shall not grant its sanction for the transfer of prospecting license unless the transferee has accepted all the conditions and liabilities which the transferor has in respect of such prospecting license: 

PROVIDED also that the State Government may, by order in writing after providing the licensee the opportunity of being heard, cancel such prospecting license at any time if the licensee has, in the opinion of the State Government, committed a breach of this clause or rule 15A.]

35[(viii) the licensee shall not pay a wage less than the minimum wage prescribed by the Central or the State Government from time to time under the Minimum Wages Act, 1948;

(ix) the licensee shall observe the provisions of the Mines Act, 195236(35 of 1952) and the provisions of the Atomic Energy Act, 1962 (33 of 1962), insofar as the latter relate to atomic minerals included in Part B of the First Schedule to the Act;]

37        [(x) the licensee shall- 

(a) take immediate measures for the planting in the same area or any other area selected

by the Central or the State Government not less than twice the number of trees destroyed by reason of any prospecting operations;

(b) look after them during subsistence of the licence after which these shall be handed

over to the State Forest Department or any other authority as may be nominated by the Central Government;

(c) restore, to the extent possible, other flora destroyed by prospecting operations;]

38[(xi) the licensee shall pay to the occupier of surface of the land such compensation as may become payable under these rules;

(xii) the licensee shall comply with the Mineral Conservation and Development Rules framed under section 18.]39[***]40[***]

(2) A prospecting licence may contain such other conditions relating to the following as the State Government may think fit to impose, namely:- 

(i) compensation for damage to land in respect of which the licence has been granted;

(ii) indemnity to Government against the claim of a third party for any damage, injury or disturbance caused to him by the licensee;

(iii) restrictions regarding felling of trees on unoccupied and unreserved Government land;

(iv) restrictions on prospecting operations in any area prohibited by any competent authority;

(v) operations in a reserved or protected forest;

(vi) conditions regarding entry on occupied land;

(vii) facilities to be given by the licensee for working other minerals in the licensed area or adjacent area;

41[(viii) filing of civil suits or petitions relating to disputes arising out of the area under prospecting licence.]

42[(3) The State Government may, either with the previous approval of the Central Government or at the instance of the Central Government, impose such further conditions as may be necessary in the interest of mineral development including development of atomic minerals.]

(4) In the case of breach of any condition imposed on any holder of a prospecting licence by or under this rule, the State Government may, by order in writing, cancel the licence, and/or forfeit, in whole or part, the amount deposited by the licensee under rule 20: 

PROVIDED that no such order shall be made without giving the licensee a reasonable opportunity of stating his case.

RULE 15. LICENCE TO BE EXECUTED WITHIN THREE MONTHS

(1) Where on any application for a prospecting licence an order has been made for the grant of such licence, a deed granting such licence shall be executed within ninety days of the date of the communication of the order or such further period as the State Government may allow in this behalf, and if no such deed is executed within the said period due to any default on the part of the applicant, the State Government may revoke the order granting the licence and in that event the fee paid shall be forfeited to the State Government.

(2) The deed referred to in sub-rule (1) shall be in Form F, or in a form as near thereto as circumstances of each case may require.

(3) The date of the commencement of the period for which a prospecting licence is granted shall be the date on which the deed is executed under sub-rule (1).

RULE 15A.

Where on an application for grant of sanction to transfer the prospecting license under clause (vii) of sub-rule (1) of rule 14, the State Government has granted sanction for transfer of such license, a transfer deed in Form P, or a form as near thereto as possible shall be executed within three months of the date of the consent, or within such further period as the State Government may allow in this behalf.]

RULE 16. REPORT OF INFORMATION OBTAINED BY THE LICENSEE

44[ (1) The licensee shall submit to the State Government a45[six monthly report] of the work done by him stating the number of persons engaged and disclosing in full the geological, geophysical or other valuable data collected by him during the period. The report shall be submitted within three months of the close of the period to which it relates.

(2) The licensee shall also submit to the State Government within three months of the expiry of the licence, or abandonment of operations or termination of the licence, whichever is earlier, a full report of work done by him and all information relevant to mineral resources acquired by him in the course of prospecting operations in the area covered by the licence.

(3) While submitting reports under sub-rule (1) or (2), the licensee may specify that the whole or any part of the report or data submitted by him shall be kept confidential; and the State Government shall thereupon, keep the specified portions as confidentialfor a period of two years from the expiry of the licence, or abandonment of operations or termination of the licence, whichever is earlier.]46*I*

RULE 18. MAINTENANCE OF ACCOUNTS

Every licensee shall maintain47[anaccurate] and faithful account of all the expenses incurred by him on prospecting operations and also the quantity and other particulars of all minerals obtained during such operations and their despatch.

RULE 19. INSPECTION

(1) The licensee shall allow every officer authorised by the Central Government or the State Government in this behalf to examine at any time accounts maintained under rule 18 and furnish the Central Government or the State Government such information and returns as it or any officer authorised by it in that behalf may require.

(2) The licensee shall allow any officer authorised by the Central Government or the State Government in this behalf to inspect any prospecting operations carried on by him.

RULE 20. SECURITY DEPOSIT

(1) An applicant for a prospecting licence shall, before the deed referred to in sub-rule (1) of rule 15 is executed, deposit as security for the due observance of the terms and conditions of the licence49["a sum of two thousand and five hundred rupees"] in respect of the every square kilometre or part thereof for which the licence is granted.

(2) Any deposit made under sub-rule (1), if not forfeited under these rules, shall be refunded to the applicant as soon as the report referred to in rule 16 is submitted.

RULE 21. REGISTERS

(1) A register of applications for prospecting licences shall be maintained by the State Government in Form G.

(2) A register of prospecting licences shall be maintained by the State Government in Form H.

RULE 22. APPLICATIONS FOR GRANT OF MINING LEASES

77 "(4B) The Central Government or the State Government shall dispose of the application for approval of the mining plan within a period of ninety days from the date of receiving of such application: 

Provided that the aforesaid period of ninety days shall be applicable only if the mining plan is complete in all respects, and in case of any modifications subsequently suggested by the Central Government or the State Government, as the case may be, after the initial submission of the mining plan for approval, the said period shall be applicable from the date on which

such modifications are carried out and submitted afresh to the Central Government or the State Government, as the case may be."

72[(5) The mining plan shall incorporate- 

73[(i) the plan of the lease hold area showing the nature and extent of the mineral body, spot or spots where the mining operations are proposed to be based on the prospecting data gathered by the applicant or any other person;]

(ii) details of the geology and lithology of the area including mineral reserves of the area;

(iii) the extent of manual mining or mining by the use of machinery and mechanical devices;

(iv) the plan of the area showing natural water courses, limits of reserves and other forest areas and density of trees, if any, assessment of impact of mining activity on forest, land surface and environment including air and water pollution; details of the scheme of restoration of the area by afforestation, land reclamation, use of pollution control devices and such other measures as may be directed by the Central Government or the State Government from time to time;

73[(v) a tentative scheme of mining71[*]annual programme and plan for excavation from year to year for five years; and;]

A3 (va) a progressive mine closure plan as defined in clause (oo) of Rule 3 of the Mineral Conservation and Development Rules, 1988; and

(vi) any other matter which the Central Government may require the applicant to provide in the mining plan.]

74[(6) The mining plan once approved shall be valid for the entire duration of lease: 

PROVIDED that any modification or modifications of the mining plan shall

be approved by the competent authority and such approval of the modified mining plan shall remain valid for the balance duration of the mining lease.]

RULE 22A. MINING OPERATIONS TO BE IN ACCORDANCE WITH MINING PLANS

75 76[(1) Mining operations shall be undertaken in accordance with the duly approved mining plan.

(2) Modification of the approved mining plan during the operation of a mining lease also requires prior approval.]]

RULE 22B. MINING PLAN TO BE PREPARED BY RECOGNISED PERSONS

78 (1) No mining plan shall be approved79[***] unless it is prepared by a qualified person recognised in this behalf by the Central Government,80 [or duly authorised officer].

(2) No person shall be recognised by the Central Government purposes of sub-rule (1) unless he holds- 

(i) a degree in mining engineering or a post-graduate degree in Geology granted by a University established or incorporated by or under a Central Act, a Provincial Act or a State Act, including any institution recognised by the University Grants Commission established under section 4 of the University Grants Commission Act, 1956 or any equivalent qualification granted by any University or Institution outside India; and

81[(11) professional experience of five years of working in a supervisory capacity in the field of mining after obtaining the degree.]

(3) A person recognised to prepare a mining plan may also carry out modifications of an existing mining plan.]

RULE 22BB

82 (1)Notwithstanding the provisions of rule 63 the mining plan shall be submitted for approval through authority notified by the Controller General of the Indian Bureau of Mines or by the State Government, as the case may be, in this behalf except for minerals specified in Parts A and B of the First Schedule to the Act.

83(1a) Every mining plan submitted for approval under sub-rule (1) shall be accompanied with a non-refundable fee of one thousand rupees for every square kilometer or part thereof of mining area covered under the mining lease.

(2) Notwithstanding the provisions of rule 54, any person aggrieved by any order made or direction issued in respect of mining plan by an officer of the Central Government competent to approve mining plans other than the Chief Controller of Mines, Indian Bureau of Mines for minerals other than those listed in Parts A and B of the First Schedule to the Act, may, within thirty days of the communication of such order or direction, apply to the authority to whom the said officer is immediately subordinate, for the revision of the order or direction: 

PROVIDED that any such application may be entertained after the said period of thirty days if the applicant satisfies the authority that he had sufficient cause for not making the application within time.

(3) On receipt of any application for revision under sub-rule (1), the authority after giving a reasonable opportunity of being heard to the aggrieved person, may confirm, modify or set aside the order made or direction issued by any officer subordinate to him;

(4) Any person aggrieved by an order made or direction issued by the Chief Controller of Mines, Indian Bureau of Mines, concerning approval of mining plan may within thirty days of the communication of such order or direction, apply to the Controller General, Indian Bureau of Mines for a revision of such order or direction and his decision thereon shall be final: 

PROVIDED that any such application may be entertained after the said period of 30 days, if the applicant satisfies the Controller General, Indian Bureau of Mines that he had sufficient cause for not making the application in time.

(5) On receipt of any such application under sub-rule (4), the Controller General, Indian Bureau of Mines may confirm, modify or set aside the order or direction issued by the Chief Controller of Mines, Indian Bureau of Mines.

(6)  (a) Notwithstanding anything contained in the above sub-rules, any person aggrieved by any order or direction issued in respect of a mining plan by an authorised officer of the State Government, may within thirty days of the communication of such order or direction, apply to the Controller General, Indian Bureau of Mines for revision of the order or direction and his decision thereon shall be final.

(b) The procedure enumerated in the preceding sub-rules shall, mutatis mutandis, be followed in the disposal of such an application.

(7) The powers under sub-rules (1) and (2) in regard to approval of mining plans shall be exercised by Director, Atomic Minerals Directorate for Exploration and Research, Hyderabad, and in regard to revision under sub-rules (3) to (5) shall be exercised by Secretary, Department of Atomic Energy, Mumbai, insofar as they relate to atomic minerals specified in the Part B of the First Schedule to the Act.

(8) The powers under sub-rules (1) to (5) in regard to approval of mining plan and revision shall be exercised by authorities designated in this behalf by notification by the Department of Coal insofar as they relate to coal and lignite specified in the Part-A of the First Schedule to the Act.

RULE 22C. GRANT OF RECOGNITION BY CENTRAL GOVERNMENT

85 (1) Any person possessing the qualifications and experience referred to in sub-rule (2) of rule 22B may apply for being recognised as a recognised person to the competent authority appointed for the purpose by the Central Government.

(2) The competent authority, after making such enquiry as it deems fit, may grant or refuse to grant recognition and where recognition is refused, the competent authority shall record reasons in writing and communicate the same to the applicant.]

86[(3) A recognition shall be granted for an initial period of ten years and may be renewed for a period(s) not exceeding ten years at a time: PROVIDED that the competent authority may refuse to renew recognition for reasons to be recorded in writing after giving an opportunity of hearing to the person concerned.]

86[(4) An appeal shall lie to the Controller General, Indian Bureau of Mines, against the order of the competent authority refusing to grant or renew an application for recognition and his order thereon shall be final.]

[Explanation: For the purpose of this rule, Chief Controller of Mines, Controller of Mines and the Regional controller of Mines, shall be deemed to be competent authority.]

RULE 22D MINIMUM SIZE OF THE MINING LEASE

—Minimum area for grant of mining lease shall not be less than—84

(a) One hectare, in respect of small deposits (not fragmented portions of larger ones), shallow in nature, isolated and not exceeding more than 200 metres in strike length. These deposits are small by virtue of either origin or mode of emplacement or dislocation due to geological disturbances. Small deposits shall also include float deposits (transported) formed due to mechanical weathering and deposition, alluvial or eluvial placers (buried or otherwise), which generally have peculiar configurations excepting beach sands or placers;

(b) Two hectares, in respect of beach sands or placers. Bench sands or placers are mono or multi mineral concentrations, including the dunes occurring on and off the coastal shore line. These deposits are the products of ebb and flow of tides, waves and inshore currents, and at places semi-consolidated to consolidated in nature;

(c) Four hectares, in respect of all mineral deposits other than those specified under clauses (a) and (b).".

RULE 23. ACKNOWLEDGEMENT OF APPLICATION

(1) Where an application for the grant or renewal of a mining lease is delivered personally, its receipt shall be acknowledged forthwith.

(2) Where such application is received by registered post, its receipt shall be acknowledged on the same day.

(3) In any other case, the receipt of such application shall be acknowledged within three days of the receipt.

(4) The receipt of every such application shall be acknowledged in Form D.87[***]

RULE 24. DISPOSAL OF APPLICATION FOR MINING LEASE

88        [1.***]

89        [2.***]

88        [3.***]

90[(4) Where an application for a mining lease for a mineral or minerals not specified in the existing mining lease or mining leases is made for the whole or part of the area held under mining lease by a person other than the lessee, the State Government shall notify this fact91[by registered post/Acknowledgement Due] to the person who already holds mining leases for another mineral in the land applied for.]

(5)  (a) If on receipt of the information referred to in sub-rule (4), from the State Government, the lessee applies either for prospecting licence or mining lease for newly discovered mineral or minerals within six months from the date of communication of the information by the State Government, the lessee shall be preferred in respect of such grant.

(b) If the lessee fails to apply for prospecting licence or mining lease within six months, then this fact will be intimated to the applicant by the State Government and the State Government will consider the original application in accordance with the rules.

88        [***]

RULE 24A. RENEWAL OF MINING LEASE

92 (1) An application for the renewal of a mining lease shall be made to the State Government in Form J, at least twelve months before the date on which the lease is due to expire, through such officer or authority as the State Government may specify in this behalf.

93[(2) The renewal or renewals of a mining lease granted in respect of a mineral specified in Part 'A' and Part 'B' of the First Schedule to the Act may be granted by the State Government with the previous approval of the Central Government.]

93[(3) The renewal or renewals of a mining lease granted in respect of a mineral not specified in Part 'A' and Part 'B' of the First Schedule to the Act may be granted by the State Government.]

94[(6) If an application for renewal of a mining lease made within the time referred to in sub-rule (1) is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period till the State Government passes order thereon.]

95        [***]

96[(8) Notwithstanding anything contained in sub-rule (1) and sub-rule (6) an application for the first renewal of a mining lease, a so declared under the provisions of section 4 of the Goa, Daman and Diu Mining Concession (Abolition and Declaration as Mining Lease) Act, 1987, shall be made to the State Government in Form J before the expiry of the period of mining lease in terms of sub-section (1) of section 5 of the said Act, through such officer or authority as the State Government may specify in this behalf: 

PROVIDED that the State Government may, for reasons to be recorded in writing and subject to such conditions as it may think fit, allow extension of time for making of such application upto a total period not exceeding one year.]

97[(9) If an application for first renewal made within the time referred to in sub-rule (8) or within the time allowed by the State Government under the proviso to sub-rule (8), the period of that lease shall be deemed to have been extended by a further period till the State Government passes orders thereon.]

98[(10) The State Government may condone delay in an application for renewal of mining lease made after the time limit prescribed in sub-rule (1) provided the application has been made before the expiry of the lease.]

103

[Provided that before granting approval for second or subsequent renewal of mining lease, the State Government shall seek a report from the Controller General, Indian Bureau of Mines, as to whether it would be in the interest of mineral development to grant the renewal of the mining lease.

103

Provided further that in case a report is not received from Controller General, Indian Bureau of Mines in a period of three months of receipt of the communication from the State Government, it would be deemed that the Indian Bureau of Mines has no adverse comments to offer regarding the grant of the renewal of mining lease.]

RULE 24B. RENEWAL OF MINING LEASE IN FAVOUR OF A PERSON USING THE MINERAL IN HIS OWN INDUSTRY

Every person who is holding mining lease for a mineral which is used in his own industry shall be entitled for the renewal of his mining lease for a period100[not exceeding twenty years] unless he applies for a lesser period.

RULE 25A. STATUS OF THE GRANT ON THE DEATH OF APPLICANT FOR MINING LEASE

102[ (1) Where an applicant for grant or renewal of mining lease dies before the order granting him a mining lease or its renewal is passed, the application for the grant or renewal of a mining lease shall be deemed to have been made by his legal representative.

(2) In the case of an applicant in respect of whom an order granting or renewing a mining lease is passed, but who dies before the deed referred to in sub-rule (1) of rule 31 is executed, the order shall be deemed to have been passed in the name of the legal representative of the deceased.]

RULE 26. REFUSAL OF APPLICATION FOR GRANT AND RENEWAL OF MINING LEASE

104 105[(1)106[The State Government may, after giving an opportunity of being heard and] for reasons to be recorded in writing and communicated to the applicant, refuse to grant or renew a mining lease over the whole or part of the area applied for.]

106[(2) An application for the grant or renewal of a mining lease made under rule 22 or rule 24A, as the case may be, shall not be refused by the State Government only on the ground that Form I or Form J, as the case may be, is not complete in all material particulars, or is not accompanied by the documents referred to in sub-clauses (d), (e), (f), (g) and (h) of clause (i) of sub-rule (22).]

107[(3) Where it appears that the application is not complete in all material particulars or is not accompanied by the required documents, the State Government shall, by notice, require the applicant to supply the omission or, as the case may be, furnish the document, without delay and in any case not later than108[thirty days] from the date of receipt of the said notice by the applicant.]

RULE 27. CONDITIONS

(1) Every mining lease shall be subject to the following conditions109[* * *]:- 

(a) the lessee shall report to the State Government the discovery in the leased area of any mineral not specified in the lease, within sixty days of such discovery;

(b) if any mineral not specified in the lease is discovered in the leased area, the lessee shall not win and dispose of such mineral unless such mineral is included in the lease or a separate lease is obtained therefor;

(c) the lessee shall pay, for every year, except the first year of the lease, such yearly dead rent110[at the rates specified in the Third Schedule]111[of the Act] and if the lease permits the workings of more than one mineral in the same area112[the State Government shall not charge separate dead rend in respect of each mineral]: 

PROVIDED that the lessee shall be liable to pay the dead rent or royalty in respect of each mineral whichever be higher in amount but not both;

(d) the lessee shall also pay, for the surface area used by him for the purposes of mining operations, surface rent and water rate at such rate, not exceeding the land revenue, water and cesses assessable on the land, as may be specified by the State Government in the lease;113[***]

(f)114[** *] The lessee shall commence mining operations within one year from the date of execution of the lease and shall thereafter conduct such operations in a proper, skillful and workman-like manner, 

Explanation : For the purposes of this clause, mining operations shall include the erection of machinery, laying of a tramway or construction of a road in connection with the working of the mine;

(g) the lessee shall at his own expenses erect and at all times maintain and keep in good repair boundary marks and pillars necessary to indicate the demarcation shown in the plan annexed to the lease;

(h) the lessee shall not carry on, or allow to be carried on, any mining operations at any point within a distance of fifty meters from any railway line, except under and in accordance with the written permission of the railway administration concerned115[or under or beneath any rope-way or any rope-way trestle or station, except under and in accordance with the written permission of authority owning the rope-way] or from any reservoir, canal or other public works, or buildings, except under and in accordance with the previous permission of the State Government;

(i) the lessee shall keep116[accurate and faithful] accounts showing the quantity and other particulars of all minerals obtained and dispatched from the mine, the number and nationality of persons employed therein, and complete plans of the mine, and shall allow any officer authorised by the Central Government or the State Government in this behalf to examine at any time any accounts, plans and records maintained by him and shall furnish the Central or the State Government with such information and returns as it or any officer authorised by it in this behalf may require;

(j) the lessee shall keep accurate records of all trenches, pits and drillings made by him in the course of mining operations carried on by him under the lease, and shall allow any officer authorised by the Central or the State Government to inspect the same. Such records shall contain the following particulars, namely:- 

(a) the subsoil and strata through which such trenches, pits or drillings pass;

(b) any mineral encountered;

(c) such other particulars as the Central or the State Government may, from time to time, require;

(k) the lessee shall strengthen and support, to the satisfaction of the railway administration concerned or the State Government, as the case may be, any part of the mine which in its opinion, requires such strengthening or support for the safety of any railway, reservoir, canal, road or any other public works or buildings;

(l) the lessee shall allow any officer authorised by the Central or the State Government to enter upon any building, excavation or land comprised in the lease for the purposes of inspecting the same;

(m) the State Government shall at all times have the right of preemption of the minerals won from the land in respect of which the lease has been granted: 

PROVIDED that the fair market price prevailing at the time of preemption shall be paid to the lessee for all such minerals;

117[(n) The lessee shall store properly the unutilized or non-saleable sub-grade ores or minerals for future benefaction;]

118[(o) in respect of any mineral which in relation to its use for certain purposes is classified as a major mineral and in relation to its use for other purposes as a minor mineral, the lessee who holds a lease for extraction of such mineral under these rules whether or not it is specified as a major mineral in the lease deed, shall not use or sell the mineral or deal with it in whatsoever manner or knowingly allow any one to use or sell the mineral or deal with it in whatsoever manner as a minor mineral: 

PROVIDED that if on an application made to it in this behalf by the lessee, that State Government is satisfied that having regard to the inferior quality of such mineral, it cannot be used for any of the purposes by reason of which use it can be called major mineral or that there is no market for such mineral as a major mineral, the State Government may

by order permit the lessee to dispose of the mineral in such quantity and in such manner as may be specified therein as a minor mineral;]

119[(p) the lessee shall, in the matter of employment, give preference to the tribals and to the persons who become displaced because of the taking up of mining operations;]

120[(q) the lessee shall not pay a wage less than the minimum wage prescribed by the Central or State Government from time to time under the Minimum Wages Act, 1948;

(r) the lessee shall observe the provisions of Mines Act, 1952121[(35 of 1952) and of the Atomic Energy Act, 1962 (33 of 1962), in so far as they relate to atomic minerals included in Part B of the First Schedule to the Act;]

122[(s) the lessee shall- 

(i) take immediate measures for planting in the same area or any other area selected by

the Central or State Government not less than twice the number of tress destroyed by reasons of any mining operations;

(ii) look after them during the subsistence of the lease after which these trees shall be

handed over to the State Forest Department or any other authority nominated by the Central or State Government;

(iii) restore, to the extent possible other flora destroyed by the mining operations;]

122[(t) the lessee shall pay to the occupier of the surface of the land such compensation as may become payable under these rules;

(u) the lessee shall comply with the Mineral Conservation and Development Rules framed under section 18.]

(2) A mining lease may contain such other conditions as the State Government may deem necessary in regard to the following, namely:- 

(a) the time-limit, mode and place of payment of rents and royalties; (b) the compensation for damage to the land covered by the lease; (c) the felling of trees;

(d) the restriction of surface operations in any area prohibited by any authority;

(e) the notice by lessee for surface occupation;

(f) the provision of proper weighing machines;

(g) the facilities to be given by the lessee for working other minerals in the leased area or adjacent area;

(h) the entering and working in a reserved or protected forest; (i) the securing of pits and shafts; (j) the reporting of accidents; (k) the indemnity to Government against claims of third parties;

(l) the delivery of possession of lands and mines on the surrender, expiration or determination of the lease;

123[(la) the time limit for removal of mineral, ore, plant, machinery and other properties from the lease hold area after expiration, or sooner determination or surrender or abandonment of the mining lease;]

(m) the forfeiture of property left after determination of lease;

(n) the power to take possession of plant, machinery, premises and mines in the event of war or emergency;

124[(o) filing of civil suits or petitions relating to disputes arising out of the area under lease.]

125[(3) The State Government may, either with the previous approval of the Central Government or at the instance of the Central Government, impose such further conditions as may be necessary in the interests of mineral development, including development of atomic minerals.]

(4) If the lessee does not allow entry or inspection under clause (i), (j) or (1) of sub-rule (1), the State Government shall give notice in writing to the lessee requiring him to show cause within such time as may be specified in the notice why the lease should not be determined and his security deposit forfeited; and if the lessee fails to show cause within the aforesaid time to the satisfaction of the State Government, the State Government may determine the lease and forfeit the whole or part of the security deposit.

126[(5) If the lessee makes any default in the payment of royalty as required under section 9 or payment of dead rent as required under section 9A or commits a breach of any of the conditions specified in sub-rules (1), (2) and (3), except the condition referredto in clause (f) of sub-rule (1), the State Government shall give notice to the lessee requiring him to pay the royalty or dead rent or remedy the breach, as the case may be, within sixty days from the date of the receipt of the notice and if the royalty or dead rent is not paid or the breach is not remedied within the said period, the State Government may, without prejudice to any other proceedings that may be taken against him, determine the lease and forfeit the whole or part of the security deposit.]

RULE 28. LAPSING OF LEASES

(4) The State Government may on receipt of an application made under subrule (2) and on being satisfied about the adequacy and genuineness of the reasons for the date on which the lease would have otherwise lapsed, extending or refusing to extend the period of the lease:

PROVIDED that where the State Government on receipt of an application under sub-rule (2) does not pass an order before the expiry of the date on which the lease would have otherwise lapsed, the lease shall be deemed to have been extended until the order is passed by the State Government or until a period of128[two years], whichever is earlier.

129[Explanation: 1. Where the non-commencement of the mining operations within a period of128[two years] from the date of execution of mining lease is on account of-

(a) delay in acquisition of surface rights; or

(b) delay in getting the possession of the leased area; or

(c) delay in supply or installation of machinery; or

(d) delay in getting financial assistance from banks, or any financial institutions; or

(e) ensuring supply of the mineral in an industry of which the lessee is the owner or in which he holds not less than 50% of the controlling interest, and the lessee is able to furnish documentary evidence supported by a duly sworn affidavit, the State Government may consider if there are sufficient reasons for non- commencement of operations for a continuous period of more than one year.

Explanation 2. : Where the discontinuance of mining operations for a continuous period of128[two years] after the commencement of such operations is on account of- 

(a) orders passed by any statutory or judicial authority; or

(b) operations becoming highly uneconomical; or

(c) strike or lock out, and the lessee is able to furnish documentary evidence

supported by a duly sworn affidavit, the State Government may consider if

there are sufficient reasons for discontinuance of operation for a continuous period of more than one year.]]

131[Explanation 3 : In case of mining lessee who has undertaken reconnaissance operations or in case of mining lessee whose capital investment in mine development is planned to be in excess of Rs. 200 crores and where the mine development is likely to take more than two years, the State Government shall consider it to be sufficient reason for non-commencement of mining operations for a continuous period of more than two years.]

RULE 28A.

132[ (1) Where a lessee is unable to commence the mining operations within a period of two years from the date of execution of the mining lease, or discontinues mining operations for a period exceeding two years for reasons beyond his control, he may submit an application to the State Government explaining the reasons for the same at least within six months from the date of its lapse: 

PROVIDED that the lease has not been revived under this provision for more than twice during the entire period of the lease.

(2) Every application under sub-rule (1) shall be accompanied by a fee of Rs. 500/-.

(3) The State Government on receipt of an application made under subrule (1) and on being satisfied about the adequacy and genuineness of the reasons for non-commencement of mining operations or discontinuance thereof taking into consideration the matters specified in the Explanation to rule 28, pass an order reviving the lease.]

RULE 29. RESTRICTIONS ON DETERMINATION OF LEASE

136 "(3) Upon the issuance of the order by the Regional Controller of Mines or the officer authorized by the State Government in this behalf, as the case may be, under sub-rule (6) of Rule 23-F of Mineral Conservations and Development Rules, 1988 , for forfeiting the sum assured, on nonperformance of the measures con- tained in the. approved mine closure plan referred to in sub-rule (1) of Rule 23-A of Mineral Conservation and Development Rules, 1988 by the lessee, it shall be the responsibility of State Government to realize any letter of credit or bond or any other surety, guarantee provided or obtained as financial assurance for the purpose of performance of protective, reclamation and rehabilitation measures as contained in the approved mine closure plan and shall carry out such measures either by itself, or appoint an agent to do so.".

RULE 29A PROVISION FOR CLOSURE

(1) The lessee shall not determine the lease or part thereof unless a final mine closure plan duly approved by the Regional Controller or the officer authorized by the State Government in this behalf, as the case may be, is implemented as per the approval.

(2) For the purposes of sub-rule (1), the lessee shall be required to obtain a certificate from the Regional Controller of Mines or officer authorized by the State Government in this behalf, as the case may be, to the effect that protective, reclamation and rehabilitation work in accordance with the approved mine closure plan or with such modifications as approved by the competent authority have been carried out by the lessee.".

RULE 30. RIGHTS OF LESSEE

Subject to the conditions mentioned in rule 27, the lessee with respect of the land leased to him shall have the right for the purpose of mining operations on that land-

(a) to work in the mines;

(b) to sink pits and shafts and construct buildings and roads;

(c) to erect plant and machinery;

(d) to quarry and obtain building and road materials and make bricks; (e) to use water and take timber; (f) to use land for stacking purposes; (g) to do any other thing specified in the lease.

RULE 31. LEASE TO BE EXECUTED WITHIN SIX MONTHS

(1) Where, on an application for the grant of a mining lease, an order has been made for the grant of a such lease, a lease deed in Form K or in a form as near thereto as circumstances of each case may require, shall be executed within six months of the order or within such further period as the State Government may allow in this behalf, and ifno such lease deed is executed within the said period due to any default on the part of the applicant, the State Government may revoke the order granting the lease and in that event the application fee shall be forfeited to the State Government.

142[(2) The date of the commencement of the period for which a mining lease is granted shall be the date on which a duly executed deed under sub-rule (1) is registered.]

RULE 32. SECURITY DEPOSIT

An applicant for a mining lease, shall, before the deed referred to in rule 31 is executed, deposit as security for the due observance of the terms and conditions of the lease142[ten thousand rupees].

RULE 33. SURVEY OF THE AREA LEASED

When a mining lease is granted by the State Government, arrangements shall be made143[by the State Government] at the expense of the lessee for the survey and demarcation of the area granted under the lease.

RULE 34. MANNER OF EXERCISE OF PREFERENTIAL RIGHTS FOR MINING LEASE

A mining lease to any person who has a preferential right thereto under sub-section (1) of section 11, may at his option, be granted to him either for the whole of the area for which he holds the prospecting licence or such parts or part thereof as he may select but the State Government may for any special reasons to be recorded in writing reduce the area or exclude a portion therefrom.

RULE 35. PREFERENTIAL RIGHTS OF CERTAIN PERSONS

Where two or more persons have applied for a reconnaissance permit or a prospecting licence or a mining lease in respect of the same land, the State Government shall, for the purpose of sub-section (2) of section 11, consider besides the matters mentioned in clauses (a) to (d) of sub-section (3) of section 11, the end use of the mineral by the applicant]

RULE 36. BOUNDARIES BELOW THE SURFACE

The boundaries of the area covered by a mining lease shall run vertically downwards below the surface towards the center of the earth.

RULE 37. TRANSFER OF LEASE

(1) These lessee shall not, without the previous consent in writing of the State Government and in the case of mining lease in respect of any mineral specified in145[Part A and Part B of] the First Schedule to the Act, without the previous approval of the Central Government]- 

(a) assign, sublet, mortgage or in any other manner, transfer the mining, lease, or any right, title or interest therein, or

(b) enter into or make any146[bona fide] arrangement, contract or understanding whereby the lessee will or may be directly or indirectly financed to a substantial extent by, or under which the lessee's operations or undertakings will or may be substantially controlled by, any person or body of persons other than lessee:147[***] 

148[PROVIDED FURTHER that where the mortgagee is an institution or a Bank or a

Corporation specified in Schedule V, it shall not be necessary for the lessee to obtain any such consent of the State Government.]

149[(1A) The State Government shall not give its consent to transfer of mining lease unless the transferee has accepted all the conditions and liabilities which the transferor was having in respect of such mining lease.]

(2) Without prejudice to the provisions of sub-rule (1), the lessee may,150 [** *] transfer his lease or any right, title or interest therein to person151 [who has filed an affidavit stating that he has filed an up-to-date income-tax returns, paid the income-tax assessed on him and paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961 (43 of 1961), on payment of a fee of five hundred rupees] to the State Government: 

PROVIDED that the lessee shall make available to the transferee the original

or certified copies of all plans of abandoned workings in the area and in a belt 65 meters wide surrounding it: 

152[PROVIDED FURTHER that where the mortgagee is an institution or a Bank or an Corporation specified in Schedule V, it shall not be necessary for any such institution or Bank or Corporation153[to meet with the requirement relating to income-tax]:]

154[PROVIDED FURTHER that the lessee shall not charge or accept from the transferee any premium in addition to the sum spent by him, in obtaining the lease, and for conducting all or any of the operations referred to in rule 30 in or over the land leased to him:]

155[***]

(3) The State Government may, by order in writing determine any lease at any time if the lessee has, in the opinion of the State Government, committed a breach of any of the provisions of sub-rule (1)156[or sub-rule (1A)157[* * *]] or has transferred any lease or any right, title, or interest therein otherwise than in accordance with sub-rule (2): 

PROVIDED that no such order shall be made without giving the lessee a reasonable opportunity of stating his case.

RULE 37A. TRANSFER OF LEASE TO BE EXECUTED WITHIN THREE MONTHS

Where on an application for transfer of mining lease under rule 37, the State Government have given consent for transfer of such lease, a transfer lease deed in Form O or a form as near thereto, as possible, shall be executed within three months of the date of the consent, or within such further period as the State Government may allow in this behalf.]

RULE 38. AMALGAMATION OF LEASES

The State Government may, in the interest of mineral development and with reasons to be recorded in writing, permit amalgamation of two or more adjoining leases held by a lessee:

PROVIDED that the period of amalgamated leases shall be co-terminus with the lease whose period will expire first:

PROVIDED FURTHER that prior approval of the Central Government shall be required for such amalgamation in respect of leases for minerals specified in Part 'A' and Part 'B' of the First Schedule to the Act.

RULE 39. PENDING APPLICATIONS FOR TRANSFER AND AMALGAMATION

An application for the transfer of mining lease or the amalgamation of mining leases pending at the commencement of these rules shall be disposed of in accordance with these rules.]

RULE 40. REGISTERS

(1) A register of applications for mining leases shall be maintained by the State Government in Form L.

(2) A register of mining leases shall be maintained by the State Government in Form M.

RULE 41. Applicability of this chapter

The provisions of this chapter shall apply only to the grant of prospecting licences and mining leases in respect of land in which the minerals vest exclusively in a person other than the Government.

RULE 42. RESTRICTIONS ON THE GRANT OF PROSPECTING LICENCE AND MINING LEASE

RULE 44. CONDITIONS OF PROSPECTING LICENCE

Every prospecting licence shall be subject to the following conditions:- (i) the licensee shall pay the grantor such prospecting fee as may be agreed upon,166 ["being not less than one rupee and not more than ten rupees" ] per hectare of the land covered by the licence for each year or a part of the year of the period for which a licence is granted or renewed;

(ii) in the case of minerals other than gold, silver, precious stones or mica, the licensee shall not win or carry away the minerals for commercial purposes: 

PROVIDED that the licensee may win and carry away for purposes other than commercial purposes- 

(a) any quantity of such minerals within the limits specified in Schedule III without any payment;

(b) any quantity of such minerals exceeding such limits but not exceeding twice such

limits, which is won during prospecting operations, on payment of royalty for the time being specified in the Second Schedule to the Act in respect of those minerals;

(c) any quantity of limestone not exceeding 500 tonnes for testing its use in any industry

specified by the Central Government in this behalf, on payment of royalty for the time being specified in Second Schedule to the Act in respect of limestone;

(iii) in the case of gold, silver, precious stones or mica the licensee may carry away any quantity won during the course of prospecting operations on payment of royalty for the time being specified in the Second Schedule to the Act in respect of such mineral;

(iv) such other conditions as may be agreed upon between the parties not being inconsistent with the provisions of the Act or these rules.

RULE 45. CONDITIONS OF MINING LEASE

Every mining lease shall be subject to the following conditions:-

(i) the provisions of the clauses (b) to (1)164[and (p) to (u)] of sub-rule (1) of rule 27 shall apply to such leases with the modification that in clauses (c) (d) for the words "State Government" the word "lessor" shall be substituted;

165(ia) mining operations shall be undertaken in accordance with the duly approved mining plan;]

(ii)167[* * * * *]

(iii) the lease may contain such other conditions, not being consistent with the provisions of the Act and these rules, as may be agreed upon between the parties;

(iv) if the lessee makes any default in payment of royalty as required by section 9 or commits a breach of any of the conditions of the lease, the lessor shall give notice to the lessee requiring him to pay the royalty or remedy the breach, as the case may be, within sixty days from the date of the receipt of the notice and if the royalty is not paid or the breach is not remedied within such period, the lessor without prejudice to any proceeding that may be taken against the lessee determine the lease;

(v) the lessee may determine the lease at any time giving not less than one year's notice in writing to lessor.

RULE 46. TRANSFER OR ASSIGNMENT

(1) No prospecting licence or mining lease or any right, title or interest in such licence or lease shall be transferred to a person unless he168[has filed an affidavit stating that he has filed an up-to-date income-tax return, paid the income-tax assessed on him and paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961 (43 of 1961)].

(2) No prospecting licence or mining lease or any right, title or interest in such licence or lease in respect of any mineral specified in the First Schedule to the Act shall be transferred except with the previous approval of the Central Government.

RULE 47. SUBMISSION OF COPY OF LICENCE OR LEASE

Every person obtaining prospecting licence or a mining lease shall, within three months of the grant of such licence or lease, submit to the State Government concerned a certified copy of the licence or lease in duplicate.

RULE 48. COMMUNICATION OF TRANSFER OR ASSIGNMENT

Every transferee or assignee of a prospecting licence of a mining lease or of any right, title or interest therein, shall, within one month of such transfer of assignment, inform the State Government of the transfer or assignment and of the terms and conditions of such transfer or assignment.

RULE 49. PROHIBITION OF PREMIUM

No person granting or transferring a prospecting licence or any right, title or interest in any such licence or lease shall charge or pay any premium in addition to, or in lieu of the prospecting fee, surface rent, dead rent or royalty payable, under the Act or such proportionate part of such fee, rent or royalty as is payable in respect of such right, title, or interest.

RULE 50. PROHIBITION OF WORKING OF MINES

If the State Government has reason to believe that the grant or transfer of a prospecting licence or a raining lease or of any right, title or interest in such licence or lease is in contravention of any of the provisions of this chapter, the State Government may, after giving the parties an opportunity to represent their views and with the approval of the Central Government, direct the parties concerned not to undertake any prospecting or mining operations in the area to which the licence or lease relates.

RULE 51. RETURNS AND STATEMENTS

The holder of a prospecting licence or a mining lease shall furnish to the State Government such returns and statements and within such period as may be specified by it.

RULE 52. PENALTY

169[(1) If the holder of a prospecting licence or a mining lease or his transferee or assignee fails, without sufficient cause, to furnish the documents or information, or returns referred to in rule 46, rule 47, rule 48, or rule 51, or acts in any manner in contravention of rule 49 or rule 50, he shall be punishable with imprisonment for a term which may extend to170[one year or fine which may extend to five thousand rupees or with both].]

(2) If any person grants or transfers or obtains a prospecting licence or mining lease or any right, title or interest therein, in contravention of any of the provisions of this chapter, he shall be punishable with imprisonment which may extend to170[one year or fine which may extend to five thousand rupees or both].

RULE 53. 53.

Chapters III and IV to apply to prospecting licences and mining leases in respect of minerals which vest partly in Government and partly in private persons The provisions of Chapters III and IV shall apply in relation to the grant of prospecting licences and mining leases in respect of minerals which vest partly in the Government and partly in a private person as they apply in relation to the grant of prospecting licences and mining leases in respect minerals which vest exclusively in the Government:

PROVIDED that the dead rent and royalty payable in respect of minerals which partly vest in the Government and partly in a private person shall be shared by the Government and by that person in proportion to the shares they have in the minerals.

RULE 54. APPLICATION FOR REVISION

(1) Any person aggrieved by any order made by the State Government or other authority in exercise of the powers conferred on it by the Act or these rules may, within171[three months] of the date of communication of the order to him, apply to the Central Government in triplicate in Form N, for revision of the order. The application should be accompanied by172[a Bank Draft for174[five thousand rupees] on a nationalised bank in the name of 'Pay and Accounts Officer, Department of Mines' payable at new Delhi or through a treasury challan for five hundred rupees under the Head Account-0853- Non-ferrous mining and Metallurgical Industries-102 Mineral Concession Fees, Rents and Royalties:] 

PROVIDED that any such application may be entertained after the said

period of171[three months] if the applicant satisfies the Central Government that he had sufficient cause for not making the application within time.

173[***]

(2) In every application under sub-rule (1) against the order of a State Government refusing to grant a prospecting licence or a mining lease, any person to whom a prospecting licence or mining lease was granted in respect of the same area or for a part thereof, shall be impleaded as party.

(3) Along with the application under sub-rule (1), the applicant shall submit as many copies thereof as there are parties impleaded under subrule (2).

(4) On receipt of the application and the copies thereof, the Central Government shall send a copy of the application to each of the parties impleaded under sub-rule (2) specifying a date on or before which he may make his representations, if any, against the revision application.

175[***]

RULE 55. ORDERS ON REVISION APPLICATION

177[(1) On receipt of an application for revision under rule 54, copies thereof shall be sent to the State Government or other authority and to all the impleaded parties calling upon them to make such comments as they may like to make within three months from the date of issue of the communication, and the State Government or other authority and the impleaded parties, while furnishing comments to the Central Government shall simultaneously endorse a copy of the comments to the other parties.178[***]

(2) Comments received from any party under sub-rule (1) shall be sent to the other parties for making such further comments as they may like to make within one month from the date of issue of the communication and the parties making further comments shall send them to all the other parties.]

(3) The revision application, the communications containing comments and counter-comments referred to in sub-rules (1) and (2) shall constitute the records of the case.

(4) After considering the records referred to in sub-rule (3), the Central Government may confirm, modify or set aside the order or pass such other order in relation thereto as the Central Government may deem just and proper.

(5) Pending the final disposal of an application for revision, the Central Government may, for sufficient cause, stay the execution, of the order against which any revision application has been made.

RULE 56. POWER TO RECTIFY APPARENT MISTAKES

Any clerical or arithmetical mistake in any order passed by the Government or any other authority or officer under these rules and any error arising therein from accidentalslip or omission, may, within two years from the date of the order, be corrected by the Government, authority or officer, as the case may be:

PROVIDED that no order prejudicial to any person shall be passed unless he has been given a reasonable opportunity for stating his case.

RULE 57. COPIES OF LICENCES AND LEASES AND ANNUAL RETURNS TO BE SUPPLIED TO GOVERNMENT

RULE 59. AVAILABILITY OF AREA FOR RE-GRANT TO BE NOTIFIED

179[(1) No area-

(a) which was previously held or which is being held under a reconnaissance permit or a prospecting licence or a mining lease; or

(b) which has been reserved by the Government or any local authority for any purpose other than mining; or

(c) in respect of which the order granting a permit or licence or lease has been revoked under sub-rule (1) of rule 7A or sub-rule (1) of rule 15 or sub-rule (1) of rule 31, as the case may be; or

(d) in respect of which a notification has been issued under sub-section (2) or sub-section (4) of section 17; or

(e) which has been reserved by the State Government or under section 17A of the Act, shall be available for grant unless- . 

(i) an entry to the effect that the area is available for grant is made in the

register referred to in sub-rule (2) of rule 7D or sub-rule (2) of rule 21 or sub-rule (2) of rule 40, as the case may be; and

(ii) the availability of the area for grant is notified in the Official Gazette and specifying a date (being a date not earlier than thirty days from the date of the publication of such notification in the Official Gazette) from which such area shall be available for grant: 

PROVIDED that nothing in this rule shall apply to the renewal of a lease in favour of the

original lessee or his legal heirs notwithstanding the fact that the lease has already expired: 

PROVIDED FURTHER that where an area reserved under rule 58 or under section 17A of the Act is proposed to be granted to a Government company, no notification under clause (ii) shall be required to be issued: 

PROVIDED also that where an area held under a reconnaissance permit or a prospecting licence, as the case may be, is granted in terms of subsection (1) of section 11, no notification under clause (ii) shall be required to be issued.]

(2) The Central Government may, for reasons to be recorded in writing, relax the provisions of sub-rule (1) in any special case.]

RULE 60. PREMATURE APPLICATIONS

Applications for the grant of a184[reconnaissance permit, prospecting licence or mining lease] in respect of areas whose availability for grant is required to be notified under rule 59 shall, if-

(a) no notification has been issued under that rule; or

184[(b) where any such notification has been issued, the period specified in the notification has not expired, shall be deemed to be premature and shall not be entertained.]

RULE 61. LESSOR TO SUPPLY CERTAIN INFORMATION TO THE LESSEE

Where any area has previously been held under a reconnaissance permit or prospecting licence or mining lease, the person who was granted such permit or licence or lease shall make available to the new permit holder or licensee or lessee the original or certified copies of all plans of abandoned workings in that area and in a belt preferably 60 metres surrounding it.]

RULE 62. CHANGE OF NAME, NATIONALITY, ETC. TO BE INTIMATED

185[(1)]186[* * *] An applicant for, or the holder of a184[reconnaissance permit, a prospecting licence or a mining lease] shall intimate to the State Government within sixty days any change that may take place in his name, nationality or other particulars mentioned in the relevant Forms.

184[(2) If the holder of a reconnaissance permit or a prospecting licence or a mining lease fails, without sufficient cause, to furnish the information referred to in sub-rule (1), the State Government may determine the reconnaissance permit or prospecting licence or mining lease, as the case may be:

PROVIDED that no such order shall be made without giving the permit holder or the licensee or the lessee, as the case may be, a reasonable opportunity of stating his case.]

RULE 63. PREVIOUS APPROVAL OF THE CENTRAL GOVERNMENT TO BE OBTAINED THROUGH STATE GOVERNMENT

Where in any case previous approval of the Central Government is required under the Act or these rules, the application for such approval shall be made to the Central Government through the State Government.

RULE 63A. THE STATE GOVERNMENT SHALL DISPOSE OF THE APPLICATION FOR GRANT OF RECONNAISSANCE PERMIT, PROSPECTING LICENSE OR MINING LEASE IN THE FOLLOWING PERIOD:

187 (a) Reconnaissance Permit-within six months from the date of receipt of the application for reconnaissance permit under Rule 4-A.

(b) Prospecting License-within nine months from the date of receipt of the application for prospecting license under Rule 10.

(c) Mining Lease-within twelve months from the date of receipt of the application for mining lease under Rule 22.

Provided that the aforesaid periods shall be applicable only if the application for reconniassance permit, prospecting license or mining lease, as the case may be, is complete in all respects;

Provided further that the disposal by the State Government in case of minerals listed in the First Schedule to the Act shall mean either recommendation to the Central Government for grant of the mineral concession, or refusal to grant the mineral concession by the State Government under Rule 5 for reconnaissance permit, Rule 12 for prospecting license and Rule 26 for mining lease, and in all other cases, disposal shall mean either intimation regarding grant of precise area, or refusal to grant the mineral concession under Rule 5 for reconnaissance permit, Rule 12 for prospecting license and Rule 26 for mining lease.

Provided also that in case the State Government is not able to dispose of the-application for grant of reconnaissance permit, prospecting license or mining lease within the period as specified above, the reasons for the delay shall be given in writing.

RULE 64. HOW THE FEES AND DEPOSIT TO BE MADE

Any amount payable under the Act or these rules except that payable in respect of revision petition under sub-rule (1) of rule 54, shall be paid in such manner as the State Government may specify in this behalf.

RULE 64A

The State Government may, without prejudice to the provisions contained in the Act or any other rule in these rules, charge simple interest at the rate of189[twenty four per cent] per annum on any rent, royalty or fee (other than the fee payable under sub-rule (1) of rule 54) or other sum due to that Government under the Act or these rules or under the terms and conditions of any prospecting licence or mining lease from the sixtieth day of the expiry of the date fixed by that Government for payment of such royalty, rent, fee or other sum and until payment of such royalty, rent, fee or other sum is made.]

RULE 64B. CHARGING OF ROYALTY IN CASE OF MINERALS SUBJECTED TO PROCESSING

190[ (1) In case processing of run-of mine is carried out within the leased area, then, royalty shall be chargeable on the processed mineral removed from the leased area.

(2) In case run-of mine mineral is removed from the leased area to a processing plant which is located outside the leased area, then, royalty shall be chargeable on the unprocessed run-of-mine mineral and not on the processed product.

RULE 64C. ROYALTY ON TAILINGS OR REJECTS

On removal of tailings or rejects from the leased area for dumping and not for sale or consumption, outside leased area such tailings or rejects shall not be liable for payment of royalty:

PROVIDED that in case so dumped tailing or rejects are used for sale or consumption on any later date after the date of such dumping, then, such tailings or rejects shall be liable for payment of royalty.

RULE 64D. GUIDELINES FOR COMPUTING ROYALTY ON MINERALS ON AD VALOREM BASIS

Every mine owner, his agent, manager, employee, contractor or sub-lessee shall follow the following Guidelines for computation of the amount or royalty on minerals where the royalty is charged on ad valorem basis, namely:- Guidelines

Case 1 : All non atomic and non fuel minerals and minerals other than aluminium, primary gold, silver, copper, lead, zinc, nickel and tin.—The Indian Bureau of Mines publishes 'Monthly Statistics of Mineral Production' which contains state-wise total value of each mineral produced during a month in a State. The State-wise average value for different individual minerals as pub- lished by Indian Bureau of Mines in the 'Monthly Statistics of Mineral Production' shall be the bench mark for computation of royalty by the concerned State Government in respect of any mineral produced any time during a month in any mine in that State. For the purpose of computation of royalty the State Government shall add twenty per cent to this bench mark value. This value shall be reckoned to be the sale price for the purpose of computation of royalty. Also the value of the minerals published in the latest published issue of the 'Monthly Statistics of Mineral Production' will be deemed to be applicable for the mineral mined in the previous month, irrespective of when the royalty actually accrues. If for a particular mineral, the information for a State is not published in a particular issue, the last information available for that mineral in the State in a previous issue shall be referred, failing which the latest published information for the mineral for all India shall be referred. 

Case 2 : For Atomic minerals, prescribed under Atomic Energy Act, 1962 (33 of 1962).—The minerals under this category include ilmenite, leucoxene, rutile and zircon obtained mainly from the beach sand deposits in the coastal states. The basis of collection of royalty shall be the actual mineral content in the beach sand mined.

(a) In case of sale in the domestic market, the per tonne sale price of the separated mineral actually realized, less the cost of transportation from the lease boundary to point of sale as shown by the mine owners in their sale vouchers or bills or invoices shall be considered for computing ad valorem royalty. To avoid payment of taxes on royalty the mine owners in their own interest record the price and royalty separately in the sale vouchers or bills or invoices instead of indicating a composite price inclusive of royalty. In case the price, royalty and transportation cost are not shown separately it shall be assumed that the price indicated in the sale vouchers or bills or invoices is

exclusive of royalty and transporta- tion cost, and royalty shall be charged accordingly.

(b) In case of direct export by mine owners the sale value for the purpose of royalty shall ordinarily be the free on board (FOB) price realized less transportation charges from the lease boundary to the port, loading and unloading charges at the port, port charges (including sampling and analysis and demurrage charges, if any), insurance charges, royalty, taxes and interest charges on loan for export. However, in case of cost, insurance and freight (GIF) sales, sea freight insurance and cost of unloading at the destination port shall also be deducted from such price. For such purposes the mine owner may prepare invoices or bills indicat- ing the free on board price or cost insurance freight price as the case may be and each of the other charges separately.

Explanation.—For the purposes of calculation of royalty in case of minerals produced in captive mines (other than aluminium, copper, lead zinc, tin, nickel, gold and silver) and those not actually sold, Case 1 and Case 2 shall be applicable.";

Case 2: For minerals which are exported 

(a) Direct export: In case of direct export by mine owners, the sale values for the purpose of royalty shall ordinarily be the free on board (f.o.b.) price realised, less transportation charges from the mine to the port, loading and unloading charges outside the lease area, packing charges, port charges including sampling and analysis and demurrage charges, if any), insurance charges, royalty, taxes and interest charges on loan for export. However, in case of cost insurance and freight (c.i.f.) sales, sea freight, insurance and cost of unloading at destination port shall also be deducted from such price. For such purposes, the mine owner may prepare invoices or bills indicating the free on board price or cost insurance freight price, as the case may be, and each of the other charges, separately. In case of any doubt with regard to the sale price or deductions, certificate of a registered chartered accountant shall be accepted.

(b) Export after blending : In case of export by the mine owner after blending, the mine owner may have two more mines either in one state or in different states and he may bring his run-of mine ores from these mines to a single point, blend them according to his requirement and export the blended ore or mineral. In such cases, the total royalty on the blended material shall be computed in the manner as specified in the case 2(a) above and the royalty shall be apportioned according to the ratio of the quantities of ores drawn from different mines for blending and payment shall be made to the respective states in which the mines are located. In case of any doubt with regard to the sale price or deductions, certificate of a registered chartered accountant shall be accepted.

Case 3 : For aluminium, primary gold, silver, copper, lead, zinc, nickel and tin The total contained metal in the ore produced during the period for which the royalty is computed and reported in the statutory returns under Mineral Conservation and Development Rules, 1988 or recorded in the books of the mine owners shall be considered for the purposes of computing the royalty in the first place and then the royalty shall be computed as the percentage of the average metal price in the London Metal Exchange (hereinafter referred to as the LME) for copper, lead, zinc, nickel, silver and tin and London Bullion Market Association price (commonly know as London price) for gold during the period of computation of royalty. The foreign exchange rate for conversion of rupees shall be the selling rate on the last date of the period of computation as published in newspaper, namely. The Economic Times. For the LME prices as well as for London price of the commodity, either of the following three sources shall be referred to, namely:- 

(i) Non-ferrous Report: Minerals and Metals Review, 28/30, Anantwadi, P.O. Box 2749, Mumbai-400002.

(ii) Metal Bulletin 16, Lower Marsh, London, SE-17 RJ

(iii) World Metal Statistics; (Monthly or Quarterly Summary), by World

Bureau f Metal Statistics, 27a High Street, Ware, Herts SG12 9BA, United Kingdom.

Case 4: For by-product gold and silver The guidelines for computation of ad valorem royalty shall be linked to the total quantity of metal produced and the LME price for silver and London Bullion Market Association price (commonly known as London price) for gold as in the case 3 above. However, in this case, the actual final production of the metal shall be considered instead of the metal content in the ore produced for the purposes of computing royalty.

Case 5 : In India, the minerals for the purposes of this case mean the minerals produced from captive mines (other than aluminium, copper, lead, zinc, tin, nickel, gold and silver) and which are not actually sold. For computation of ad valorem royalty on the such minerals, a notional cost shall be arrived at on the basis of the cost of production. The cost of production shall be reported by the mine owners in the Annual Return of a year in the manner specified in the Mineral Conservation and Development Rules, 1988 after taking into account the items specified in the List annexed with this case and, then, from these reported cost of production the elements of royalty, cess, taxes and dead rent, as may be applicable, shall be deducted. The net cost thus arrived at shall be the basis for computation of ad valorem royalty during the period following that year.

LIST The list of items to be taken into account of computation of the gross cost of production are the following, namely:- 

(i) Direct cost: 

(a) Exploration

(b) Beneficiation

(ii) Over head cost

(iii) Depreciation (iv) Interest (v) Royalty (vi) Taxes (vii) Dead rent (viii) Packing charges

(ix) Research and Development expenditure

Note : The State Governments may, if necessary, introduce systems of advance payment for the purpose of royalty collection and they may also impose any additional conditions in accordance with the law for the time being in force.]

RULE 65. FACILITIES FOR TRAINING OF STUDENTS

(1) Every owner, agent or manager of a mine shall permit students of mining and geological institutions approved by the Central Government to acquire practical training of the mines and plants operated by them and provide all necessary facilities required for the training of such students.

(2) Applications for training from students of institutions teaching mining or geology should be forwarded to the owner, agent or manager of a mine through the Principal or Head of the Institution. Cases of refusal to provide facilities for practical training by any owner, agent or manager of a mine should be referred to188[the Controller General, Indian Bureau of Mines]

RULE 66. GEOPHYSICAL DATA TO BE SUPPLIED TO THE GEOLOGICAL SURVEY OF INDIA AND THE DEPARTMENT OF ATOMIC ENERGY

The189[permit holder or licensee or lessee] shall furnish-

(a) all geophysical data relating to prospecting/mining fields or engineering and ground water surveys, such as anomaly maps, sections, plans, structures, contour maps, logging, collected by him during the course of189[reconnaissance or prospecting or mining] operations to the190[Director General, Geological Survey of India,] Calcutta191[and the Director of Geology and Mining of the State in which the189[reconnaissance or prospecting or mining] operations are carried on].

(b) all information pertaining to investigations of192[atomic minerals] collected by him/them during the courses189[reconnaissance or prospecting or mining] operations to the189[Director, Atomic Minerals, Directorate for Exploration and Research, Hyderabad,]191[and to the Director Geology and Mining of the State, in which the189[reconnaissance or prospecting or mining] operations are carried on].

(2) Data or information referred to in sub-rule (1) shall be furnished every year reckoned from the date of commencement of the period of the189[reconnaissance permit or prospecting licence or mining] lease.

RULE 66A.

193[ (1) Notwithstanding anything contained in the Rules, the holder of a prospecting licence or mining lease for a mineral other than a minor mineral shall be free to undertakeprospecting/mining operations also in respect of the atomic minerals, in the area held by him on the conditions that-

(i) if in the course of prospecting/mining operations, he discovers any atomic mineral/minerals, he shall within 60 days from the date of discovery194of such minerals] report the fact of such discovery to the Director,195[Atomic Minerals Directorate for Exploration and Research, Hyderabad]196[and the Director of Geology and Mining of the State in which the prospecting or mining operations are carried on];

195[(ii) that the quantities of atomic minerals recovered incidental to such prospecting or mining operations shall be collected and stacked separately and a report to that effect sent to the Secretary, Department of Atomic Energy, Mumbai and the Director, Atomic Minerals Directorate for Exploration and Research, Hyderabad, every three months for such further action by the licensee or lessee as maybe directed by the Atomic Minerals Directorate for Exploration and Research or the Department of Atomic Energy.]

195[(2) The licensee or lessee referred to in sub-rule (1) shall be free to remove and dispose of any quantity of atomic minerals, on obtaining a licence for that purpose from the Department of Atomic Energy and on payment of royalty to the State Government.

(3) The licensee or lessee referred to in sub-rule (1) shall, within the period referred to therein, apply to the Secretary, Department of Atomic Energy, Mumbai, through the State Government, for grant of a licence to handle the said atomic minerals under the provisions of the Atomic Energy Act, 1962 (33 of 1962):

PROVIDED that if in the opinion of the Department of Atomic Energy the atomic mineral/minerals recovered incidentally to such prospecting/mining operations is not of economically exploitable grade or the quantity found is insignificant, it may advise the State Government to exempt the licensee/lessee from obtaining a separate licence/lease for/or inclusion of the atomic minerals under these Rules.]

(4) The provisions of clause (ii) of sub-rule (1) or rule 14 and clause (b) of sub-rule (1) of rule 27 shall not apply in relation to atomic minerals.

195[(5) For the purpose of rule 66(1)(b) and this rule, 'atomic minerals' means the minerals listed in Part B of the First Schedule to Act.]

RULE 67. LEASE PERIOD

Where more than one mineral is found in an area and lease is granted for exploiting two or more minerals,197[the periods of lease for all minerals shall be co-terminus with that for which the first lease was originally granted].

RULE 68.

On the commencement198of these rules, the Mineral Concession Rules, 1949, shall cease to be in force, except as regards things done or omitted to be done before such commencement.

RULE 69. ASSOCIATED MINERALS

The following shall be the group of associated minerals for the purposes of section 6 of the Act, namely:-

(i) Apatite, Beryl, Cassiterite, Columbite, Emerald, Felspar, Lepiolite, Mica, Pitchblende, Quartz, Samarskite, Scheelite, Topaz, Tantalite, Tourmaline.

(ii) Iron, Managanese, Titanium, Vanadium and Nickel minerals.

(iii) Lead, Zinc, Copper, Cadmium, Arsenic, Antimony, Bismuth, Cobalt, Nickel, Molybdenum and Uranium minerals and Gold and Silver,199 [Aresenopyrite], Chalcopyrite, Pyrite,199[Pyrrhotite] and199[Pentlandite].

(iv) Chromium, Osmiridium, Platinum and Nickel minerals. (v) Kyanite, Sillimanite, Corundum, Dumortierite and199[Topaz]. (vi) Gold, Silver, Tellurium, Selenium and Pyrite.

(vii) Barytes,199[Fluorite], Chalcocite, Selenium and minerals of Zinc, Lead and Silver.

(viii) Tin and Tungsten minerals.

(ix) Limestone, Dolomite and Magnesite.

(x) Ilmenite, Monazite, Zircon, Rutile,200[Leucoxene] Garnet and Sillimanite.

(xi) Sulphides of copper and iron.

(xii) Coal, Fireclay and Shale. (xiii) Magnetite and Apatite. (xiv) Magnesite and Chromite.

(xv) Talc (Soapstone and Steatite) and Dolomite.

201[(xvi) Celesite, [Phosphatic Nodules], Clay and Gypsum.]

RULE 70. 70.

Sand not to be treated as minor mineral when used for certain purposes Sand shall not be treated as a minor mineral when used for any of the following purposes, namely:-

(i) purposes of refractory and manufacture of ceramic; (ii) metallurgical purposes; (iii) optical purposes; (iv) purposes of stowing in coal mines;] 203[(v) for manufacture of silvicrete cement; (vi) for manufacture of sodium silicate; (vii) for manufacture of pottery and glass.] 204[***]

RULE 72. PAYMENT OF COMPENSATION TO OWNER OF SURFACE RIGHTS, ETC

206[(1) The holder of a reconnaissance permit or prospecting licence or mining lease shall be liable to pay to the occupier of the surface of the land over which he holds thereconnaissance permit or prospecting licence or mining lease, as the case may be, such annual compensation as may be determined by an officer appointed by the State Government by notification in this behalf in the manner provided in sub-rules (2) to (4).]

(2) In the case of agricultural land207[***] the amount of annual compensation shall be worked out on the basis of the average annual net income from the cultivation of similar land for the previous three years.

(3) In the case of non-agricultural land, the amount of annual compensation shall be worked out on the basis of average annual letting value of similar land for the previous three years.

(4) The annual compensation referred to in sub-rule (1) shall be payable on or before such date as may be specified by the State Government in this behalf.

RULE 73. ASSESSMENT OF COMPENSATION FOR DAMAGE

208[(1) After the termination of a reconnaissance permit or a prospecting licence or a mining lease, the State Government shall assess the damage, if any, done to the land by the reconnaissance or prospecting or mining operations and shall determine the amount of compensation payable by the permit holder or licensee or the lessee, as the case may be, to the occupier of the surface land.]

(2) Every such assessment shall be made within a period of one year from the date of termination of the208[reconnaissance permit for prospecting licence or mining lease] and shall be carried out by an officer appointed by the State Government by notification in this behalf.

RULE 74. ISSUE OF NOTIFICATION WHERE PROSPECTING OPERATIONS ARE TO BE UNDERTAKEN BY THE GEOLOGICAL SURVEY OF INDIA, ETC

(2) The State Government shall not grant any prospecting licence or mining lease to any other person for an area or a part thereof in relation to which a notification has been issued under sub-rule (1).

(3) The State Government may revoke a notification issued under subrule (1), if the prospecting operations have been completed the expiry of the period stated in the notification.

RULE 75. PROSPECTING OR MINING OPERATION BY STATE GOVERNMENTS

(1) Where a State Government proposes to undertake prospecting or mining operations of any mineral, it shall issue a notification in the Official Gazette giving details of the area and the period for which such operations are proposed to be undertaken:209[***] 

210[PROVIDED that if the State Government fails to undertake prospecting or mining operation within the period mentioned in the notification, the notification so issued shall lapse at the expiry of the said period unless the period extended by a fresh notification.

Footnotes:

1. Substituted by GSR 56(E),dt. 3. Inserted by GSR 56(E), dt 17-1-2000.

5. Substituted by the GSR 1278, dt. 6. Inserted by GSR 56(E), dt. 7. Omitted by GSR 86(E), dt. 8. Inserted by GSR 1117, dt. 9. Inserted by GSR 129(E), dt. 10. Omitted by GSR 56(E), dt. 11. Inserted by GSR 56(E), dt. 12. Inserted by GSR 86(E), dt. 13. Substituted by GSR 56(E), dt. 14. Substituted by GSR 129(E), dt. 15. Omitted by GSR 56(E) dt. 16. Provisos omitted by GSR 56(E), dt. 17. Inserted by GSR 1117, dt. 18. Rule 10-A omitted by GSR 129(E), dt. 19. Sub-rule (1) omitted by GSR 6(E), dt. 20. Substituted by GSR 86(E), dt. 21. Inserted by GSR 1133, dt. 22. Inserted by GSR 56(E),dt. 23. Substituted by GSR 1243, dt. 24. Inserted by GSR 734, dt. 25. Inserted by GSR 734, dt. 26. Substituted by GSR 449(E), dt. 27. Inserted by GSR 56(E), dt. 28. Omitted by GSR 56(E), dt. 29. Inserted by GSR 129(E), dt. 30. Substituted by GSR 724(E), dt. 31. In Rule 14 ,sub-rule (1), in clause (i), for the words "being not less than fifty paise and not more than five rupees" shall be substituted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

32. Substituted by GSR 724(E), dt. 33. Clause (vi) omitted by GSR 724(E), dt. 34. Substituted by GSR 31(E), w.e.f. 22-1-2001.

35. Inserted by GSR 86(E), dt. 36. Substituted by GSR 54(E), dt. 37. Substituted by GSR 449(E), dt. 38. Inserted by GSR 86(E), dt. 39. Omitted by GSR 724(E), 27-9-1994.

40. Omitted by GSR 56(E), dt. 41. Added by GSR 296, dt. 42. Substituted by GSR 56(E),dt. 44. Substituted by GSR 835, dt. 45. Substituted by GSR 724(E), dt. 46. Rule 17 omitted by GSR 724(E), dt. 47. Substituted by GSR 56(E), 17-1-2000.

49. In Rule 20 ,sub-rule (1), the words "a sum of five hundred rupees" shall be substituted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

71. Omitted the word "and", by Mineral Concession (Amendment) Rules, 2003

72. Added by GSR 724(E), dt.27-9-1994.

73. Substituted by GSR 56(E) dt. 74. Inserted by GSR 56(E), dt. 75. Inserted by GSR 86(E), dt. 76. Substituted by GSR 908(E), dt. 77. In Rule 22 ,after sub-rule (4A), sub-rule (4B) shall be inserted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

78. Inserted by GSR 86(E), dt. 79. Omitted by GSR 908(E), dt. 80. Inserted by GSR 129(E), dt. 81. Substituted by GSR 1002(E), dt. 82. Substituted by GSR 56(E), dt. 83. In Rule 22BB ,after sub-rule (1), sub-rule (1A) shall be inserted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

84. Inserted by Mineral Concession (Amendment) Rules, 2003

85. Inserted by GSR 86(E), dt. 86. Substituted by GSR 56(E), dt. 87. Rule 23 omitted by GSR 908(E), dt. 88. Sub-rules (1) & (3) omitted by GSR 6(E), dt. 89. Sub-rule (2) omitted by GSR 86(E), dt. 90. Inserted by GSR 703, dt. 91. Inserted by GSR 1579, dt. 92. inserted by GSR 86(E), dt. 93. Substituted by GSR 56(E), dt. 94. Substituted by GSR 724(E), dt. 95. Sub-rule (7) omitted by GSR 56(E), dt. 96. Inserted by GSR 855(E), dt. 97. Inserted by GSR 724(E), dt. 98. Substituted by GSR 56(E), dt. 100. Substituted by GSR 345(E), dt. 101. Rule 25 omitted by GSR 56(E), dt. 102. Inserted by GSR 129(E), dt. 103. In Rule 24A ,in sub-rule (3), proviso shall be inserted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

104. Substituted by GSR 1243, dt. 105. Rule 26 renumbered as sub-rule (1) thereof by GSR 734, dt. 106. Substituted by GSR 449(E), dt. 107. Inserted by GSR 734, dt. 108. In Rule 26, the words "sixty days" , shall be substituted by Mineral Concession (Second Amendment) Rules, 2002. , Gaz. of India, Exty., Pt. II-Sec. 3(i), No. 497, dt. 29.10.2002, p. 4.

109. Omitted by GSR 449(E), dt. 110. Substituted by GSR 86(E), dt. 111. Inserted by GSR 449(E), dt. 112. Substituted by GSR 703, dt. 113. Clause (e) omitted by GSR 724(E), dt. 114. Omitted by GSR 449(E), dt. 115. Inserted by GSR 791, dt. 116. Substituted by GSR 56(E), dt. 117. Substituted by GSR 129(E), dt. 118. Added by GSR 842, dt. 119. Inserted by GSR 888, dt. 120. Inserted by GSR 86(E), dt. 121. Inserted by GSR 56(E), dt. 122. Substituted by GSR 449(E), dt. 123. Inserted by GSR 56(E), dt. 124. Substituted by GSR 56(E), dt. 125. Substituted by GSR 129(E), dt. 126. Inserted by GSR 296, dt. 128. Substituted by GSR 345(E), dt. 129. Substituted by GSR 129(E), dt. 131. Inserted by GSR 56(E), dt. 132. Inserted by GSR 129(E), dt.20-2-1991.

136. Inserted by the Mineral Concession (Amendment) Rules, 2003

142. Substituted by GSR 56(E), dt.'17-l-2000.

143. Inserted by GSR 1133, dt.7-9-l961.

145. Inserted by GSR 129(E), dt. 146. Inserted by GSR 56(E), dt. 147. Proviso omitted by GSR 724(E), dt. 148. Inserted by GSR 345(E), dt. 149. Substituted by GSR 724(E), dt. 150. Omitted by GSR 743(E), dt. 151. Substituted by GSR 449(E), dt. 152. Substituted by GSR 1333, dt. 153. Substituted by GSR 449(E), dt. 154. Inserted by GSR 805, dt. 155. Proviso omitted by GSR 56(E), dt. 156. Inserted by GSR 877, dt. 157. Omitted by GSR 345(E), dt. 163. Rule 43 omitted by GSR 449(E), dt. 164. Inserted by GSR 449(E), dt. 165. Inserted by GSR 129(E), dt. 166. In Rule 44 ,in clause (i), for the words "being not less than fifty paise and not more than five rupees" shall be substituted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

167. In Rule 45 , clause (ii), shall be omitted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

168. Substituted by GSR 449(E), dt. 169. Substituted by GSR 805, dt. 170. Substituted by GSR 449(E), dt. 171. Substituted GSR 939, dt. 172. Inserted by GSR 449(E), dt. 173. Sub-rule (1A) omitted by GSR 56(E), dt. 174. In Rule 54 , sub-rule (1) for the word "five hundred rupees", shall be substituted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

175. Explanation omitted by GSR 6(E), dt. 177. Substituted by GSR 129(E), dt. 178. Proviso omitted by GSR 6(E), dt. 179. Substituted by GSR 56(E),dt. 181. Rule 58 omitted by G.S.R. 449(E), dt. 184. Substituted by GSR 56(E), dt. 185. Rule 62 renumbered as sub-rule (1) thereof by GSR 805, dt. 186. Omitted by GSR 449(E), dt. 187. After Rule 63 , Rule 63A, shall be inserted by Mineral Concession (Amendment) Rules, 2002., Noti. No. F. No. 07/03/1999, M-VI, date. 11/01/2002, Gaz. of India, Exty., Part. II, Sec. 3(i), No. 19, date. 11/01/2002, page.5.

188. Substituted by GSR 298, dt. 189. Substituted by GSR 56(E), dt. 190. Substituted by GSR 369, dt. 191. Inserted by GSR 369, dt. 192. Substituted by GSR 1051, dt. 193. Inserted by GSR 1051, dt. 194. Substituted by GSR 449(E), dt. 195. Substituted by GSR 56(E), dt. 196. Inserted by GSR 369, dt. 197. Substituted by GSR 703, dt. 198. *Deemed to have come into force on 26-11-1960.

199. Substituted by GSR 449(E), dt. 200. Inserted by GSR 56(E), dt. 201. Inserted by GSR 1974, dt. 203. Inserted by GSR 1348, dt. 204. Rule 71 omitted by GSR 56(E), dt. 206. Substituted by GSR 56(E), dt. 207. Omitted by GSR 908(E), dt. 208. Substituted by GSR 56(E), dt. 209. Omitted by GSR 9(E), dt. 210. Inserted by GSR 56(E), dt.

GRANITE CONSERVATION AND DEVELOPMENT RULES, 1999

G.S.R. 398(E).—In exercise of the powers conferred by Sec. 18 of the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules for conservation and systematic development of and scientific mining to conserve, the granite resources and to prescribe a uniform frame-work with regard to systematic and scientific exploitation of granite through out the country, namely:—

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Granite Conservation and Development Rules, 1999.

(2) They shall come into force from the date of their publication in the Official Gazette.

RULE 2 APPLICATION

These rules shall apply to prospecting and quarrying of granite.

RULE 3 DEFINITIONS

(1) In these rules, unless the context otherwise requires,—

(a) "Act' means the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957);

(b) "agent' when used in relation to a quarry, means any person whether appointed as such or not, who acts as the representative of the owner in respect of the management of the quarry or any part thereof;

(c) "development" means removing overburden or unproductive or waste materials as preparatory to mining;

(d) "drilling" means the penetration of alluvial material, rocks or  formations by holes for obtaining geological information and for drawing samples therefrom;

(e) "environment" and "environmental pollution." shall have the same meanings as signed respectively to these terms in the Environment (Protection) Act, 1986 (29 of 1986);

(f) "Form" means a Form set forth in Schedule to these rules;

(g) "geologist" means a person appointed in writing by the prospecting licensee, owner or agent to perform the duties of a geologist under these rules;

(h) "granite" means dolerites, granite geneisses, migmatites, gabbros, anorthosites, rhyolites, syenites, leptynites, chamockites and any other igneous and or- thometamorphic rock types which are—

(i) amenable to be recovered as dimensional stone; (ii) capable of taking polish; and (iii) commercially exploitable.

(i) "lease" means a lease granted for the purpose of undertaking mining or quarrying operations for granite;

(j) "manger" when used in relation to a mine or a quarry, means any person appointed by the owner or agent and includes the owner or the agent if he appoints himself to be such manager, under Sec. 17 of the Mines Act, 1952 (35 of 1952);

(k) "mining engineer" means a person appointed in writing by the owner or agent to perform the duties of a mining engineer under these rules;

(l) "prospect" means an area where existence of granite has been established.

(m) "prospecting licence" means a licence granted or the purpose of undertaking any operation for the purpose of exploring, locating or proving granite deposits;

(n) "quarry" means an opencast working as defined in Mines Act, 1952 (35 of 1952);

(o) "recognised person" means a qualified person granted recognition by the competent authority under these rules to prepare mining plan;

(p) "sheet rock" means massive granite bodies but does not include boulders;

(q) "year" means the twelve months period beginning from the first day of April and ending on the thirty first day of March of the following year;

(2) All other words and expressions used in these rules but not defined shall have the meanings respectively assigned to them in the Act.

RULE 4 PROSPECTING TO PRECEDE MINING OPERATIONS

—No lease shall be granted by the State Government unless it is satisfied that there is evidence to show that the area for which the lease is applied for has been prospected earlier for granite or the existence of granite therein has been established otherwise.

RULE 5 PERIOD FOR WHICH PROSPECTING LICENCE MAY BE GRANTED OR RENEWED

—The period for which a prospecting licence may be granted shall of exceed two years.

RULE 6 PERIOD FOR WHICH LEASES MAY BE GRANTED OR RENEWED

(1) The maximum period for which a lease may be granted shall not exceed thirty years:

Provided that the minimum period for which any such lease may be granted shall not be less than twenty years.

(2) A lease may be renewed for a period not exceeding twenty years.

(3) Notwithstanding anything contained in sub-rule (2), if the State Government is of the opinion that in the interest of development of granite it is necessary to do so, it may, for reasons to be recorded, authorise the renewal of a lease for a further period or periods not

exceeding twenty years in each case.

RULE 7 MINIMUM AND MAXIMUM AREA FOR GRANT OF MINING LEASE

(1) The minimum area that may be granted or renewed under a lease for ensuring minining activities to optimum depth shall not be less than one hectare;

(2) The maximum area that may be granted under a mining lease shall not exceed fifty hectares: 

Provided that the State Government, if it is satisfied on the basis of proposed production level, geological or topographical conditions, may for the reasons to be recorded in writing, grant or renew a lease over an area

more than the maximum area or less than the minimum area specified under this rule.

RULE 8 SCHEME OF PROSPECTING

(1) Every holder of a prospecting licence for granite shall submit to the State Government or any person authorised in this behalf by that Government within a period of sixty days from the date of execution of the prospecting licence, a scheme of prospecting indicating the manner in which he proposes tocarry out the prospecting operation, in the area covered by the licence and the scheme shall incorporate the following, namely:—

(a) particulars of the area;

(b) the scale of the plan and the area of geological mapping;

(c) the number of pits, trenches, and bore holes which he proposes to put in the area and the locations thereof;

(d) the particulars of the machines to be used;

(e) the details of exploratory mining to be undertaken;

(f) the number of samples proposed to be drawn and tested;

(g) baseline information of prevailing environmental conditions before the beginning of the prospecting operations;

(h) any other matter relevant for the preparation of a scheme of prospecting,

as directed by the State Government or any person so authorised from time to time by a general or specific order.

(2) The prospecting scheme under sub-rule (1) shall be prepared by a recognised person or a geologist or a mining engineer employed under clause (a) of sub-rule (1) of Rule 38.

RULE 9 MODIFICATION OF SCHEME OF PROSPECTING

(1) A prospecting scheme prepared and submitted under rule 8 may be modified at any time on geological considerations by the holder of a prospecting licence during continuance of the prospecting licence.

(2) Any modification carried out under sub-rule (1) shall be intimated to the State Government or any person authorised in this behalf by that Government, by the holder of a prospecting licence within a period of fifteen days.

RULE 10 PROSPECTING OPERATIONS TO BE CARRIED OUT IN ACCORDANCE WITH SCHEME OF PROSPECTING

Every holder of a prospecting licence for granite shall carry out the prospecting operations in accordance with the scheme of prospecting submitted under Rule 8 or with such modifications, if any, as intimated under Rule 9 or as directed by the State Government or any person authorised by that Government in this behalf.

RULE 11 REPORT OF PROSPECTING OPERATIONS

(1) Every holder of a prospecting licence for granite shall submit to the State Government or any person authorised in this behalf by that Government and the Controller General, Indian Bureau of Mines an annual report in Form A so as to reach them by 30th April for the previous year:

Provided that a report in Form-A shall be submitted within a period of three months after the completion of abandonment of the prospecting operations or the expiry of the prospecting licence, whichever is earlier.

(2) Where prospecting operations for granite are carried out by any authority specified in the second proviso to sub-sec. (1) of Sec. 4 of the Act without a prospecting licence, such authority shall submit the annual report in Form A to the State Government or any person authorised by that Government and the Controller General, Indian Bureau of Mines in respect of each area where prospecting operations for granite have been undertaken by them:

Provided that this sub-rule shall not apply in a case where field operations consist of only geological mapping or geo-physical or geo-chemical investigations.

RULE 12 MINING PLAN AS A PRE-REQUISITE TO THE GRANT OF LEASE

—No lease shall be granted or renewed by the State Government unless there is a mining plan duly approved by the State Government or any person authorised in this behalf by that Government for the development of the granite deposit in the area concerned.

RULE 13 MINING PLAN TO BE PREPARED BY A RECOGNISED PERSON

(1) No mining plan shall be approved unless it is prepared by a qualified person recognised in this behalf by the State Government or any person authorised by that Government or by a recognised person under Rule 22-B of the Mineral Concession Rules, 1960.

(2) No person shall be granted recognition for the purposes of sub-rule (1) by the State Government or any person authorised by that Government unless he holds—

(i) a degree in mining engineering or a post-graduate degree in geology granted by a university established or incorporated by or under an Act of Parliament or any institution recognised by the University Grants Commission establishes under Sec. 4 of the University Grants Commission Act, 1956 (3 of 1956) or any qualification equivalent thereto; and

(ii) professional experience of five years of working in a supervisory capacity in the field of mining or mineral administration after obtaining a degree or qualification required under clause (i)

RULE 14 GRANT OF RECOGNITION BY STATE GOVERNMENT

(1) Any person possessing the qualifications and experience required under sub-rule (2) of Rule 13 may apply for recognition to the competent authority designated by the State Government for this purpose.

(2) The competent authority after making such enquiry as it deems fit, may grant or refuse to grant recognition and where recognition is refused, the competent authority shall record reasons in writing and communicate the same to the applicant.

(3) A recognition shall be granted for an initinal period often years and may be renewed for further periods not exceeding ten years at a time:

Provided that the competent authority may refuse to renew recognition for reasons to be recorded in writing after giving an opportunity of hearing to the person concerned.

RULE 15 APPROVAL AND SUBMISSION OF MINING PLAN

—On receipt of the application for grant of mining lease for undertaking mining operations for granite, the State Government shall take decision to grant precise area for the said purpose and communicate such decision to the applicant and on receipt of the communication from the State Government of the precise area to be granted, the applicant shall submit a mining plan within a period of three months from the date on which communication is received or such other period as may be allowed by the State Government for approval and said mining plan shall incorporate—

(i) the plan of the precise area showing the nature and extent of the granite body; spot or spots where the excavation is to be done in the first year and its extent; a detailed cross-section and detailed plan of spots of excavation based on the prospecting data gathered by the applicant; a tentative scheme of mining for the first five years of the lease;

(ii) details of the geology and lithology of the precise area including granite reserves of the area;

(iii) the extent of manual mining or mining by the use of machinery and mechanical devices on the precise area;

(iv) the plan of the precise area showing natural water courses, limits of reserved and other forest areas and density of tress, if any, assessment of impact of mining activity on forest, land surface and environment including air and water pollution; details of scheme for restoration of the area by afforestation, land reclamation, use of pollution control devices and of such of the measures as may be directed by the Central or the State Government from time to time;

(v) annual programme and plan for excavation on the precise area from year to year for five years;

(vi) any other matter which the State Government or any person so authorised may require the applicant to provide in the mining plan.

RULE 16 MINING PLAN AS A PRE-REQUISITE TO THE COMMENCEMENT OF MINING OPERATIONS

(1) No person shall commence mining operations for granite in any area except in accordance with a mining plan approved under these rules;

(2) The State Government or any person authorised in this behalf by that Government may require the holder of a lease to make such modifications in the mining plan referred to in sub-rule (1) or impose such conditions as it considers necessary by an order in writing if such modifications or imposition of conditions are considered necessary in the light ofthe experience of operation of mining plan or in view ofthe change in the technological development.

(3) A holder of a lease, desirous of seeking modifications in the approved mining plan as are considered expedient, in the interest of safe and scientific mining, conservation of granite, or for the protection of environment, shall apply to the State Government or any person authorised in this behalf by that Government, setting forth the intended modifications and explaining the reasons for the same.

(4) The State Government or any person authorised in this behalf by that Government may approve the modifications under sub-rule (3) or approve with such alterations as it may consider expedient.

RULE 17 MINING PLAN TO BE SUBMITTED BY THE EXISTING LESSEE

(1) Where mining operations for granite have been undertaken before the commencement of these rules without an approved mining plan, the holder of such lease shall submit a mining plan within a period of one year from the date of commencement of these rules, to the State Government or any person authorised in this behalf by that Government for its approval.

(2) If a holder of a lease has not been able to submit the mining plan within the specified time for reasons beyond his control, he may apply for extension of time giving reasons to the State Government or any person authorised in this behalf by that Government.

(3) The State Government or any person authorised in this behalf by that Government on receiving an application made under sub-rule (2) may, on being satisfied, extend the period for submission ofthe mining plan for a period which may not exceed one year.

(4) The State Government or any person authorised in this behalf by that Government may approve the mining plan submitted by the lessee under sub-rule (1), or may require modifications to be carried out in the mining plan and the lessee shall carry out such modifications and resubmit the modified mining plan for approval of the State Government or the person so authorised, as the case may be.

(5) The State Government or any person authorised in this behalf by that Government shall, within a period of ninety days from the date of receipt of the mining plan or the modified plan, convey its or his approval or disapproval to the applicant and in case of disapproval it or he shall also convey the reasons for disapproving the said mining plan or the modified mining plan.

(6) If no decision is conveyed within the period stipulated under sub-rule (5), the mining plan or the modified mining plan, as the case may be, shall be deemed to have been provisionally approved and such approval shall be subject to the final decision whenever communicated.

(7) The mining plan submitted under sub-rule (1) shall be prepared by a recognised person.

RULE 18 REVIEW OF MINING PLAN

(1) Every mining plan duly approved under these rules shall be valid for the entire duration of the lease.

(2) The owner, agent, mining engineer or manager of every mine or quarry shall review the mining plan as prescribed under sub-rule (1) and submit a scheme of mining for the next five years of the lease to the State Government or any person authorised in this behalf by that Government for approval.

(3) The scheme of mining shall be submitted to the State Government or any person authorised in this behalf by that Government at least one hundred twenty days before the expiry of the five years' period, for which it was approved on the last occasion.

(4) The State Government or any person authorised in this behalf by that Government shall convey its or his approval or refusal to the scheme of mining within ninety days of the date of its receipt.

(5) If approval or refusal of the scheme of mining is not conveyed to the holder of the lease within the stipulated period, the scheme of mining shall be deemed to have been provisionally approved and such approval shall be subject to final decision whenever communicated.

(6) The provisions of Rule 13 shall apply to the scheme of mining in the same way as they are applicable to the mining plan.

(7) Every scheme of mining submitted under sub-rule (2) shall be prepared by a recognised person or a person employed under sub-rule (1) of Rule 38.

RULE 19 MINING OPERATIONS TO BE IN ACCORDANCE WITH MINING PLAN

(1) Every holder of a lease shall carry out mining operations for granite in accordance with the approved mining plan with such conditions as may have been prescribed under sub-rule (2) of Rule 16 or with such modifications, if any, as permitted under sub-rule (4) of Rule 16 or the mining plan or the scheme approved under Rule 12 or 17 or 18 as the case may be,

(2) If the mining operations are not carried out in accordance with the mining plan as referred to under sub-rule (1), the State Government or any person authorised in this behalf by that Government may order suspension of all or any of the mining operations and permit continuance of only such operations as may be necessary to restore the conditions in the quarry as envisaged under the said mining plan.

RULE 20 PROSPECTING AND MINING OPERATIONS

—The prospecting and mining operations shall be carried out in such a manner so as to ensure systematic development and conservation of granite deposits and protection of environment.

RULE 21 SYSTEM OF WORKING

(1) System of working in granite quarries in sheet rock shall be performed by formation of benches.

(2) Such benches in granite and overburden including weathered granite shall be formed separately and the benches in overburden or weathered granite shall be kept sufficiently in advance so that their working does not interfere with the working of granite.

RULE 22 SEPARATE STACKING OF NON-SALEABLE GRANITE

(1) The non-saleable granite rejects at quarry bottom should regularly be collected and transported to the surface and the quarry floor kept reasonably clear of debris.

(2) Small granite blocks from such non-saleable granite suitable for possible use in manufacture of bricks as well as flooring or wall tiles by small scale industries sector shall not be used as road metal or stone aggregate and such material shall be segregated from the dumps of granite rejects and stored separately for future use as far as possible, whenever such dumps are worked for recovery of stone aggregate or used as quarry backfill.

(3) The ground selected for dumping of top soil, overburden, waste material or non-saleable granite shall be away from working quarry.

(4) Before starting mining or quarrying operations, conceputal ultimate limits of the quarry shall be determined and dumping ground shall be so selected that dumping is not carried out within the limits of the ultimate size of the quarry except where simultaneous back filling is proposed.

RULE 23 NOTICE FOR OPENING OF A MINE AND INTIMATION OF EXISTENCE OF A MINE

The owner, agent, mining engineer or manager of every granite quarry shall send to the State Government or any person authorised in this behalf by that Government and to the Controller General, Indian Bureau of Mines an intimation in Form B of the opening of a mine so as to reach them within fifteen days of such opening or of the existence of a mine at the time of the commencement of the rules within ninety days from such commencement, as the case may be.

RULE 24 ABANDONMENT OF SURRENDER OF QUARRIES

(1) The owner, agent, mining engineer, or manager of every granite quarry shall not abandon or surrender a granite quarry or a part of such quarry during the subsistence of the lease except with prior permission in writing of the State Government or any person authorised in this behalf by that Government.

(2) Notice for abandonment or surrender of a granite quarry or a part thereof shall be given in Form C and shall be accompanied by plans and sections on a scale of not less than 1 cm = 10 metres showing accurately the work done in such quarry upto the date of submission of the notice.

(3) The State Government or any person authorised in this behalf by that Government may by an order in writing prohibit abandonment or refuse surrender or allow the abandonment or surrender of a granite quarry or part thereof with such conditions as he may specify in the order.

(4) Where an abandonment of a granite quarry or part thereof takes place as a result of the occurrence of a natural calamity beyond the control of the owner, agent, mining engineer or manager of a such quarry, or the lease is terminated in compliance of any order or directions issued by an statutory authority established under any law for the time being in force or any Tribunal or a court, an intimation shall be sent to the State Government or any person authorised in this behalf by that Government within a period of twenty-four hours of such abandonment or termination and the notice of abandonment as provided in sub-rule (2) shall be submitted to the State Government or any person in this behalf by that Government authorised within a period of fifteen days of such abandonment or termination.

RULE 25 NOTICE OF TEMPORARY DISCONTINUANCE OF WORK IN QUARRIES

—The owner, agent, mining engineer, or manager of every granite quarry shall send to the State Government or any person authorised in this behalf by that Government and to the Controller General, Indian Bureau of Mines, a notice in Form-D when the work in such quarry is discontinued for a period exceeding sixty days so as to reach them within seventy five days from the date of such temporary discontinuance.

RULE 26 INTIMATION OF REOPENING OF A QUARRY

The owner, agent, mining engineer or manager of every granite quarry shall send to the State Government or any person authorised in this behalf by that Government and to the Controller General, Indian Bureau of Mines an intimation in Form-E of reopening of such quarry after temporary discontinuance so as to reach them within fifteen days from the date of such reopening.

RULE 27 COPIES OF PLANS AND SECTIONS TO BE SUBMITTED

—The owner, agent, mining engineer or manager of every granite quarry shall submit to the State Government or any person authorised in this behalf by that Government, a copy of the plans and sections maintained under these rules, as and when required by that Government or such person, as the case may be.

RULE 28 PREPARATION OF PLANS

(1) All plans, sections and tracings or copies thereof kept at the granite quarry shall be serially numbered or suitably indexed.

(2) Every plan, section or part thereof prepared under these rules shall carry thereon a certificate for its correctness and shall be signed by the mining engineer with date.

(3) Every copy of a plan and section or part thereof submitted or maintained under these rules shall bear a reference to the original plan or section from which it was copied and shall be certified thereon by the owner, agent, mining engineer or manager to be a true copy of the original plan or section.

RULE 29 PROTECTION OF ENVIRONMENT

Every holder of a prospecting licence or a lease shall take all possible precautions for the protection of environment and control of pollution while conducting prospecting, mining or processing of granite in the area for which such licence or lease is granted.

RULE 30 REMOVAL AND UTILISATION OF TOP SOIL

(1) Where top soil exists and is to be excavated for prospecting or mining operations for granite, it should be removed separately.

(2) The top soil so removed shall be utilised for restoration and rehabilitation of the land which is no longer required for prospecting or mining operations or for stabilising or landscaping the external dumps.

(3) Where top soil cannot be used concurrently, it shall be stored separately for future use.

RULE 31 STORAGE OF OVERBURDEN, WASTE ROCK ETC.

(1) The overburden, waste rock and non-saleable granite generated during prospecting or mining operations for granite shall be stored separately in properly formed dumps on grounds earmarked.

(2) Such dumps shall be properly secured to prevent the escape of material in harmful quantities which may cause degradation of the surrounding land or silting of water courses.

(3) Wherever possible, such waste rock or overburden or other rejects, shall be backfilled into the worked out granite quarry, where granite has been recovered upto the optimum depth, with a view to restore the land to its original use or desired alternate use, as far as possible and where the backfilling is not feasible, the waste dumps shall be suitable terraced and stabilised by planting vegetation or otherwise.

RULE 32 RECLAMATION AND REHABILITATION OF LANDS

—Every lease holder shall undertake in a phased manner restoration, reclamation and rehabilitation of lands affected by prospecting or mining operations and shall complete this work before the conclusion of such operations and the abandonment of the granite quarry.

RULE 33 PRECAUTION AGENT AIR POLLUTION

—Air pollution due to dust, exhaust emissions or fumes during prospecting, mining or processing operations for granite and related acitivites shall be controlled and kept within permissible limits specified under any environmental laws for the time being in force.

RULE 34 DISCHARGE OF EFFLUENTS

—Every holder of a prospecting licence or a lease shall take all possible precautions to prevent or reduce to a minimum the discharge of toxic and objectionable liquid effluents from granite quarry, workshop or processing plant, into surface or ground water bodies, and usable lands. These effluents shall conform to the standards laid down in this regard.

RULE 35 PRECAUTION AGAINST NOISE

—Noise arising out of prospecting, mining and processing operations for granite shall be abated or controlled by the holder of prospecting licence or a lease at the source so as to keep it within the permissible limit.

RULE 36 PERMISSIBLE LIMITS AND STANDARDS

—The standards and permissible limits of all pollutants, toxins and noise referred to in Rules 33, 34 & 35 shall be those notified by the concerned authorities under the provisions of the relevant statutes from time to time.

RULE 37 RESTORATION OF FLORA

—Every lease holder shall take immediate measures for planting in the area held under the lease or any other area selected by the State Government for this purpose, such number of trees sufficient to improve the environment and the minimise effects of land degradation during the entire period of such lease. He shall look after such plantations during the subsistence of the lease.

RULE 38 EMPLOYMENT OF MINING ENGINEER

(1) For the purpose of carrying out prospecting and mining operations in accordance with these rules, every holder of a granite quarry lease shall employ,— 

(a) in the case of a mechanised granite quarry, a whole time mining engineer possessing the following qualifications, namely:— 

(i) Degree in mining engineering with minimum one year's experience of working in mines including granite quarries, or

(ii) Post Graduate degree in geology with First Class Metalliferous Mines Manager's

Certificate or Post Graduate degree in geology with minimum three years' experience of working in supervisory capacity in mines including granite quarries, or

(iii) Diploma in Mining with First Class Metalliferous Mines Manager's Certificate or

Diploma in Mining with three year's experience in supervisory capacity in mines including granite quarries, or

(iv) First Class Metalliferous Mines Manager's Certificate with minimum two years' experience of working in mines including granite quarries after obtaining the certificate.

(b) in the case of the granite quarry lease other than the mechanised granite quarry lease,— 

(i) a part time mining engineer possessing qualification as prescribed under clause (a) above; or

(ii) a part time mining engineer, possessing a Post Graduate degree in geology or Second Class Metalliferous Mines Manager's Certificate, or

(iii) a whole time mining engineer possessing Secondary School Leaving Certificate and

Mine Foreman Certificate with minimum five years' experience of working as Mines Foreman or Mate in mines including granite quarries. 

Explanation.—For the purpose of this sub-rule, mechanised granite quarry means a granite quarry where machine capable of deep drilling is deployed or heavy machinery for excavation, handling or lifting or transporting of overburden and granite blocks is deployed.

(2) A part time mining engineer possessing qualifications prescribed in sub-clause (i) of clause (a) of sub-rule (1) may be employed to supervise upto a maximum of six granite quarries provided that all such granite quarries are located within a radius of fifty kilometers: 

Provided that a person possessing the qualifications other than those prescribed in sub-clause (i) of clause (a) of sub-rule (1) may be employed as part time mining engineer in quarries upto a maximum of three granite quarries provided that such quarries are located within a radius of fifty kilometers.

RULE 39 DUTIES OF MINING ENGINEER

(1) It shall be the duty of the mining engineer to take all necessary steps to plan and conduct mining operations, so as to ensure conservation of granite, systematic development of the granite deposits and protection of environment in and around the granite quarry lease area in accordance with these rules.

(2) He shall be responsible for the preparation and maintenance of plans, section, reports schemes in accordance with these rules.

(3) He shall carry out all such orders and directions as may be given in writing under these rules by the State Government or any person authorised in this behalf by that Government and shall forward a copy of each of such orders or directions to the holder of prospecting licence or, as the case may be, the granite quarry lease.

RULE 40 SUPPLY OF MATERIALS, APPLIANCES AND FACILITIES

(1) The mining engineer shall ensure that there is sufficient provision of proper materials, appliances and facilities at all times at granite quarry for the purpose of carrying out the provisions of these rules and orders issued thereunder and where he is not owner or agent of the granite quarry, he shall make requisition in writing to the owner or agent for anything required for the aforesaid purpose. A copy of every such requisition shall be recorded in bound paged book kept for the purpose.

(2) On receipt of a requisition under sub-rule (1), the owner or agent shall provide as soon as possible the materials and facilities requisitioned by the mining engineer.

RULE 41 QUARTERLY AND ANNUAL RETURNS

—The owner, agent, mining engineer or manager of every granite quarry shall submit to the State Government or any person authorised in this behalf by that Government and the Controller General of Indian Bureau of Mines returns in respect of such granite quarry within the time specified in respect of such returns, namely:—

(a) a quarterly return in Form F for every quarter ending 30th June, 30th September, 31st December or 31st March before the 15th of the following month for the preceding quarter;

(b) an annual return in Form-G which shall be submitted before the 1st July of each year for the preceding year:

Provided that in case of abandonment or surrender of a granite quarry, such annual return shall be submitted within ninety days of the date of abandonment or surrender.

RULE 42 NOTICE OF CERTAIN APPOINTMENTS

—When any new appointment is made of an agent, mining engineer, geologist and manager for the purpose of these rules or when the employment of any such person is terminated or any such person leaves the said employment or when any change occurs in the address of any such person, the owner of the granite quarry or the holder of the prospecting licence, relating to such appointment, termination, living or change in address shall, within fifteen days from the date of such appointment, termination, leaving or change in address, give a notice in Form H to the State Government or any person authorised in this behalf by that Government.

RULE 43 RECORDS OF BOREHOLES

—The owner, agent, mining engineer, geologist or manager of every granite quarry or the holder of a prospecting licence shall keep a record of all boreholes in Form I and shall retain all records and samples of the strata passed through. He shall not destroy such records of boreholes and samples of strata except with the prior approval of the State Government or any person so-authorised on this behalf.

RULE 44 TRANSFER OF RECORDS OF TRANSFEREES

—When the ownership of prospecting licence or a granite quarry lease is transferred, the previous owner or his agent shall make over to the new owner or his agent within a period of seven days of the transfer of the ownership, borehole cores preserved if any, all plans, sections, reports, registers and other records maintained in pursuance of the Act, rules or orders made thereunder, and all correspondence relevant thereto relating to the prospecting licence or granite quarry lease; and when the requirements of these rules have been duly complied with, both previous and the new owners or their respective agents shall forthwith send to the State Government or any person authorised in this behalf by that Government a detailed list of borehole cores, plans, sections, reports, registers and other records that have been transferred.

RULE 45 COPIES OF NOTICES AND RETURNS TO BE MAINTAINED

—The owner, agent, mining engineer or manager of every granite quarry or a holder of a prospecting licence shall maintain the labour attendance register, production and despatch register, explosives consumption register, test reports and details of mining machinery and copies of all notices and returns, plans, sections and schemes submitted to the State Government or any person authorised in this behalf by that Government under these rules, at an office established by the licensee or lessee and these shall be made available at all reasonable times to the State Government or any person authorised in this behalf by that Government for inspection.

RULE 46 REVISION

(1) Any person aggrieved by any order made or direction issued by any person authorised by the State Government to make or issue such order or direction under these rules may within ninety days of the communication of such order apply to the State Government for revision of the said order:

Provided that any such application may be entertained after the said period of ninety days if the applicant satisfies the State Government that he had sufficient cause for not making the application within time.

(2) Every order, against which a revision application is preferred under sub-rule (1), shall be complied with pending the decision of the State Government in such revision:

Provided that the State Government may on an application by the applicant, suspend the operation of the order appealed against pending disposal of the revision application.

(3) On receipt of an application for revision under sub-rule (1), the State Government after giving a reasonable opportunity of being heard to the aggrieved person, may confirm, modify or set aside the order or direction.

(4) Every application submitted under the provisions of this rule shall be accompanied by a Treasury Receipt showing that a fee of five hundred rupees has been paid into a State Government Treasury or any branch of the State Bank of India doing Treasury Business to the credit of the State Government.

RULE 47 PENALTY

—Whoever contravenes any of the provisions of these rules shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to five thousand rupees or with both and in the case of continuing contravention with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention.

RULE 48 FACILITIES FOR UNDERTAKING RESEARCH OR TRAINING

—Every holder of a prospecting licence or a lease shall afford all reasonable facilities to persons authorised by the Central Government or the State Government for the purpose of undertaking research or training in matters relating to mining or geology.

RULE 49 TERRITORIAL JURISDICTION

—The territorial jurisdiction of a person authorised by the Central Government or the State Government for the purpose of these rules shall be as notified by the Central Government or the State Government, as the case may be, in the Official Gazette from time to time.

RULE 50 OBLIGATION TO SUPPLY OTHER INFORMATION

—The owner, agent, mining engineer, gelogist or manager of every granite quarry shall furnish such information regarding such quarry or any matter connected therewith as the Central Government or the State Government or any person authorised in this behalf by the Central Government or the State Government, as the case may be, may require by an order in writing and the information shall be furnished within such time as may be specified in the aforesaid order,

RULE 51 PROVISIONS OF THESE RULES TO BE APPLICABLE TO GOVERNMENT

—The Government or its agencies carrying out mining operations without a lease shall be bound by all the provisions of these rules in the same manner as they are applicable to holders of granite quarry leases.

RULE 52 APPLICABILITY OF THE PROVISIONS OF MINOR MINERAL CONCESSION RULES FRAMED BY the State Government

—The provisions of the Minor Mineral Concession Rules or any other rules framed by the State Government under Sec. 15 of the Act shall be applicable to granite quarry leases to the extent they are not repugnant to or inconsistent with these rules.

RULE 53 DELEGATION OF POWERS

—The State Government may, by notification in the Official Gazette, direct that any other exercisable by it under these rules may, in relation to such matters and subject to such conditions, if any, be exercisable also by such officer or authority subordinate to the State Government as may be specified in the notification.

MINERAL CONSERVATION AND DEVELOPMENT RULES, 1988

In exercise of the powers conferred by section 18 of the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules for conservation and development of minerals, namely:-

RULE 1. SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Mineral Conservation and Development Rules, 1988.

(2) They shall come into force from the date of their publication in Official Gazette.

RULE 2. APPLICATION

These rules shall apply to all minerals except-

(i) petroleum and natural gas;

3[(ii) coal, lignite and sand for stowing;]

(iii) any mineral declared as prescribed substances for the purpose of the Atomic Energy Act, 1962 (33 of 1962); and

(iv) minor minerals.

RULE 3 DEFINITIONS

In these rules, unless the context otherwise requires,-1

'(a) "abandonment of mine" means final closure of a mine either whole or part thereof when the mineral deposits within mine or part thereof, have been fully extracted or when the mining operations have become uneconomic;';

b (aa) "Act" means the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957);

(b) "agent", when used in relation to a mine, means any person whether appointed as such or not, who acts as the representative of the owner in respect of the management of the mine or any part thereof;

(c) "authorised officer" means any officer of the Indian Bureau of Mines duly authorised in writing by the Controller General, Indian Bureau of Mines to perform the functions under these rules;

(d) "benefication" means processing of minerals or ores for the purpose of- 

(i) regulating the size of a desired produce;

(ii) removing unwanted constituents; and

(iii) improving quality, purity or assay grade of desired product;

(e) "boring" or "drilling" means the penetration of alluvial material, rocks or formations by holes for obtaining geological information, and for drawing samples therefrom;

(f) "Chief Controller of Mines" means the Chief Controller of Mines of the Indian Bureau of Mines;

(g) "Controller General" means the Controller General of the Indian Bureau of Mines;

(h) "Controller of Mines" means me Controller of Mines of the Indian Bureau of Mines;

(i) "development" means the driving of an opening to, or in an ore-body or seam or removing overburden or unproductive or waste materials as preparatory to mining or stoping;

(j) "environment" and "environmental pollution", shall have the same meanings, assigned respectively to these terms in Environment (Protection) Act, 1986 (29 of 1986);

4 '(jj) "final mine closure plan" means a plan for the purpose of decommissioning, reclamation and rehabilitation in the mine or part thereof after cessation of mining and mineral processing operations that has been prepared in the manner specified in the standard format and guidelines issued by the Indian Bureau of Mines;

4 (jjj) "financial assurance" means the sureties furnished by the leaseholder to the competent authority so as to indemnify the authorities against the reclamation and rehabilitation cost;';

(k) "Form" means a Form set forth in Schedule to these rules;

(l) "geologist" means a person appointed in writing by the owner or agent to perform the duties of a geologist under these rules;

(m) "manager" when used in relation to a mine, means any person appointed by the owner or agent and includes the owner or the agent if he appoints himself to be such manager, undersection 17 of the Mines Act, 1952(35 of 1952);

4 (mm) "mine closure" means steps taken for reclamation, rehabilitation measures taken in respect of a mine or part thereof commencing from cessation of mining or processing operations in a mine or part thereof;';

(n) "mining engineer" means a person appointed in writing by the owner or agent to perform the duties of a mining engineer under these rules;

(o) "mining plan" means a mining plan prepared undersection 5of the Act and the rules made thereunder;

4 '(oo) "progressive mine closure plan" means a progressive plan, for the purpose of providing protective, reclamation and rehabilitation measures in a mine or part thereof that has been prepared in the manner specified in the standard format and guidelines issued by Indian Bureau of Mines;';

(p) "prospect" means an area where prospecting operations for minerals are being carried out and includes any area held under prospecting licence;

(q) "recognised person" means a person granted recognition by the competent authority to prepare mining plan;

(r) "Regional Controller" means the Regional Controller of Mines of the Indian Bureau of Mines;

(s) "shaft" means a vertical or inclined way or opening leading from the surface to workings below ground or from one part of me workings below ground to another, and includes an incline;

(t) "stoping" means making any underground excavation other than development working made for the purpose of winning ores or minerals and includes extraction or splitting or reduction of pillars or blocks of minerals;

4 '(tt) "temporary discontinuance" means the planned or unplanned suspension of mining operations in a mine or part thereof and where the operations are likely to be resumed after certain time;'.

(u) "year" means the twelve months period beginning from the first day of April and ending on the thirty-first day of March of the following year;

(v) all other words and expressions used in these rules but not denned shall have the meanings respectively assigned to them in the Act.

RULE 3A. SCHEME OF RECONNAISSANCE

Every holder of a reconnaissance permit shall submit to the Controller General and the Regional Controller or the authorised officer within a period of sixty days from the date of execution of the reconnaissance permit, a scheme of reconnaissance operations indicating the manner in which he proposes to carry out reconnaissance operations in the area covered by the permit and in particular-

(a) particulars of the area such as aerial extent, boundaries; (b) the scale of the plan and the area of geological mapping; and (c) the particulars of the machines and instruments to be used.

RULE 3B. MODIFICATION OF SCHEME OF RECONNAISSANCE

(1) A reconnaissance scheme prepared and submitted underrule 3Amay be modified at any time on geological considerations by the holder of a reconnaissance permit during continuance of the reconnaissance permit.

(2) Any modification carried out under sub-rule (1) shall be intimated to the Controller General and the Regional Controller or the authorised officer by the holder of reconnaissance permit within a period of fifteen days.

RULE 3C. RECONNAISSANCE OPERATIONS TO BE CARRIED OUT IN ACCORDANCE WITH THE SCHEME OF RECONNAISSANCE

Every holder of the reconnaissance permit shall carry out the reconnaissance operations in accordance with the scheme of reconnaissance submitted underrule 3Aor with such modifications, if any, as intimated underrule 3B, or as directed by the Controller General or Regional Controller or the authorised officer.

RULE 3D. INTIMATION ABOUT RECONNAISSANCE OPERATIONS

Every holder of a reconnaissance permit shall send to the Controller General, Controller of Mines and the Regional Controller, an intimation inForm AAof the commencement of reconnaissance operations so as to reach them within a period of fifteen days of such commencement.

RULE 3E. SUBMISSION OF REPORTS ABOUT RECONNAISSANCE OPERATIONS

Every holder of reconnaissance permit shall send to the Controller General, Controller of Mines and the Regional Controller any yearly report inForm BBalong with all the aerial, photo-geological, geophysical, geochemical and such other data collected by him as per the conditions stipulated in the reconnaissance permit so as to reach them within thirty days after expiry of every year from the date of execution of the reconnaissance permit or the expiry of the reconnaissance permit or the abandonment of the reconnaissance permit or termination of reconnaissance permit, whichever is earlier.]

RULE 4. SCHEME OF PROSPECTING

(1) Every holder of a prospecting licence shall submit to6[the Controller General and the Regional Controller or the authorised officer] within a period of 60 days fromthe date of execution of the prospecting licence, a scheme of prospecting indicating the manner in which he proposes to carry out the prospecting operations, in the area covered by the licence and in particular- 

(a) particulars of the area;

(b) the scale of the plan and the area of geological mapping;

(c) the number of pits, trenches, and bore holes which he proposes to put in the area;

(d) the particulars of the machines to be used;

(e) the details of exploratory mining7[if any, proposed] to be undertaken; (f) the number of samples proposed to be drawn and analysed; (g) the beneficiation studies proposed to be undertaken; and

(h) any other matter relevant for the preparation of a scheme of prospecting, as directed by the Controller General or the authorised officer from time to time by a general or specific order.

(2) Notwithstanding anything contained in sub-rule (1) a scheme of prospecting shall include- 

(a) baseline information of prevailing environmental conditions before the beginning of the prospecting operations;

(b)8[steps proposed to be taken for protection of environment which will include] prevention and control of air and water pollution, progressive reclamation and rehabilitation of the land disturbed by the prospecting operations, a scheme for the plantation of trees, and such other measures, as may be directed from time to time by the Controller General or the authorized officer for minimising the adverse effect of prospecting operations on the environment.

(3) The prospecting scheme under sub-rule (1) shall be prepared by a recognised person or a geologist or a mining engineer employed under clause (a) of sub-rule (1) ofrule 42.

RULE 5. MODIFICATION OF SCHEME OF PROSPECTING

(1) A prospecting scheme prepared and submitted underrule 4may be modified at any time on geological considerations by the holder of a prospecting licence during continuance of the prospecting licence.

(2) Any modification carried out under sub-rule (1) shall be intimated to9[the Controller General and the Regional Controller or the authorised officer] by the holder of a prospecting licence within a period of fifteen days.

RULE 6. PROSPECTING OPERATION TO BE CARRIED OUT IN ACCORDANCE WITH SCHEME OF PROSPECTING

Every holder of a prospecting licence shall carry out the prospecting operations in accordance with the scheme of prospecting submitted under rule 4 or with such modifications, if any, as intimated under rule 5 or as directed by the Controller General or the authorised officer.

RULE 7. INTIMATION ABOUT PROSPECTING OPERATIONS

Every holder of a prospecting licence shall send to the Controller General, Controller of Mines and the Regional Controller, an intimation inForm Aof the commencement of prospecting operations so as to reach them within a period of fifteen days of such commencement.

RULE 8. REPORT OF PROSPECTING OPERATIONS

(1) Every holder of a prospecting licence shall submit to the Controller General, Controller of Mines and the Regional Controller-  

10        [***]

(b) an yearly report in11[Form B] so as to reach them within thirty days after the expiry of one year from the date of execution of the prospecting licence or the expiry of the prospecting licence whichever is earlier;

PROVIDED that in case the prospecting operations are abandoned, the report in11[Form B] shall be submitted within a period of thirty days from the date of such abandonment:

PROVIDED FURTHER that in case the prospecting operations are continued for a period exceeding one year, the report in11[Form B] shall be submitted once every year and a final report in11[Form B] within a period of three months after the completion of the prospecting operations or the expiry of the prospecting licence, whichever is earlier.

(2) Where prospecting operations are carried out by the authorities specified in the second proviso to sub-section (1) ofsection 4of the Act without a prospecting licence, such authority shall submit the annual report in11[Form B] to the Controller General in respect of each area where prospecting operations have been undertaken by them:

PROVIDED that this sub-rule shall not apply in a case where field operation consists of only geological mapping or geo-physical or geo-chemical investigations.

RULE 9. MINING PLAN

(1) No person shall commence mining operations in any area except in accordance with a mining plan approved under clause (b) of sub-section (2) ofsection 5of the Act.

(2) The Controller General or the authorised officer12[or the officer authorised in this behalf by the State Government, as the case may be,] may require the holder of a mining lease to make such modification in the mining plan referred to in sub-rule (1) or impose such conditions as he may consider necessary by an order in writing if such modifications or imposition of conditions are considered necessary- 

(a) in the light of the experience of operation of mining plan;

(b) in view of the change in the technological development.

RULE 10. MODIFICATION OF MINING PLAN

(1) A holder of a mining lease desirous of seeking modifications in the approved mining plan as are considered expedient, in the interest of safe and scientific mining, conservation of minerals, or for the protection of environment, shall apply to the Controller General,12[or the officer authorised in this behalf by the State Government,as the case may be,] setting forth the intended modifications and explaining the reasons for such modifications.

(2) The Controller General or the authorised officer13[or the officer authorised in this behalf by the State Government, as the case may be,] may approve the modifications under sub-rule (1) or approve with such alterations as he may consider expedient.

RULE 11. MINING PLAN TO BE SUBMITTED BY THE EXISTING LESSEE

(1) Where mining operations have been undertaken before the commencement of these rules without an approved mining plan, the holder of such mining lease, shall submit a mining plan within a period of one year from the date of commencement of these rules,14[to the Regional Controller or the authorised officer or the officer authorised in this behalf by the State Government as the case may be, for approval].

(2) If a holder of a mining lease has not been able to submit the mining plan within the specified time for reasons beyond his control, he may apply for extension of time giving reasons to the following authorities:-

(a) to the Regional Controller for extension of time up to six months;

(b) to the Controller of Mines for extension of time exceeding six months but not exceeding one year;

(c) to the Chief Controller of Mines for extension of time beyond one year;

13[(d) to the officer authorised in this behalf by the State Government in respect of mining plan approved by the State Government.]

14[(3) The Regional Controller, Controller of Mines, the Chief Controller of Mines or the authorised officer or the officer authorised in this behalf by the State Government, as the case may be, on receiving an application made under sub-rule (2) may, on being satisfied, extend the period for submission of the mining plan for the period mentioned in clause (a), (b), (c) or (d) of the said sub-rule.]

(4) The Regional Controller13[or the officer authorised in this behalf by the State Government, as the case may be,] may approve the plan as submitted by the lessee under sub-rule (1) or may require modifications to be carried out in the plan and the lessee shall carry out such modifications and re-submit the modified plan for15[***] approval.

14[(5) The Regional Controller or the officer authorised in this behalf by the State Government, as the case may be, shall, within a period of 90 days from the date of receipt of the mining plan or the modified mining plan, convey, approval for disapproval to the applicant and in case of disapproval shall also convey the reasons for disapproving the said mining plan or the modified mining plan.]

(6) If no decision is conveyed within the period stipulated under sub-rule (5), the mining plan or the modified mining plan, as the case may be, shall be deemed to have been provisional approved and such approval shall be subject to the final decision whenever communicated.

(7) The mining plan submitted under sub-rule (1) shall be prepared by a recognised person.

RULE 12. REVIEW OF MINING PLAN

15[***](2) The owner, agent, mining engineer or manager of every mine shall review the mining plan as prescribed under rule (1) and submit a scheme of mining for the next five years of the lease to the Regional Controller16[or the officer authorised in this behalf by the State Government, as the case may be,] for approval.

(3) The scheme of mining shall be submitted to the Regional Controller16[or the officer authorised in this behalf by the State Government, as the case may be,] at least one hundred twenty days before the expiry of the five years' period, for which it was approved on the last occasion.

(4) The Regional Controller or the authorised officer16[or the officer authorised in this behalf by the State Government, as the case may be,] shall convey his approval or refusal to the scheme of mining within ninety days of the date of its receipt.

(5) If approval or refusal of the scheme of mining is not conveyed to the holder of the mining lease within the stipulated period the scheme of mining shall be deemed to have been provisionally approved that such approval shall be subject to final decision whenever communicated.

(6) The provisions ofrules 9,10and13shall apply to the scheme of mining in the same way as they are applicable to the mining plan.

(7) Every scheme of mining submitted under sub-rule (2) shall be prepared by a recognised person or a person employed under clause (b) of sub-rule (1) ofrule 42.

RULE 13. MINING OPERATIONS TO BE IN ACCORDANCE WITH MINING PLANS

(1) Every holder of a mining lease shall carry out mining operations in accordance with the approved mining plan with such conditions as may have been prescribed under sub-rule (2) ofrule 9or with such modifications, if any, as permitted underrule 10or the mining plan or scheme approved underrule 11or12, as the case may be.

(2) If the mining operations are not carried out in accordance with the mining plan as referred to under sub-rule (1), the Regional Controller or the authorised officer may order suspension of all or any of the mining operations and permit continuance of only such operations as may be necessary to restore the conditions in the mine as envisaged under the said mining plan.

RULE 14. PROSPECTING AND MINING OPERATIONS

The prospecting and mining operations shall be carried out in such a manner so as to ensure systematic development of mineral deposits, conservation of minerals and protection of environment.

RULE 15. OPENCAST WORKING

(1) In opencast workings the benches formed shall be so arranged that the benches in ore/mineral and overburden are separate so as to avoid mixing of waste with the ore/minerals.

(2) The benches in overburden shall be kept sufficiently in advance so that their workings do not interfere with the working of ore/minerals.

(3) Orientation of the workings and sequence of mining operations shall be such that different grades of ore/minerals can be obtained simultaneously for blending with a view to achieve optimum recovery of ore/minerals from the deposit.

RULE 16. SEPARATE STACKING OF NON-SALABLE MINERALS

(1) The overburden and waste material obtained during mining operations shall not be allowed to be mixed with non-salable or sub-grade minerals/ores. They shall be dumped and stacked separately on the ground earmarked for the purpose.

(2) The ground selected for dumping of overburden, waste material, the sub-grade or non-salable ores/minerals shall be away from working pit. It shall be proved for absence or presence of underlying mineral deposits before it is brought into use for dumping.

(3) Before starting mining operations, the ultimate size of the pit shall be determined and the dumping ground shall be so selected that the dumping is not carried out within the limits of the ultimate size of the pit except in cases where concurrent back filling is proposed.

RULE 17. UNDERGROUND MINING OPERATIONS

(1) Mining operations in underground shall be carried out in such a way so as to achieve optimum ore/mineral recovery.

(2) The method of underground development of the deposit shall be planned in accordance with the method of stoping which shall be selected with due consideration of the geology of the deposit and geomechanical properties of the ore and the adjoining rocks.

(3) The size of development openings, size of blocks and pillars shall be such that the workings remain stable during the development and stoping stages and between such stages.

(4) The stoping practices shall be such as to case minimum disturbance to the surface.

(5) In case of a doubt as to the optimum ore/mineral recovery under subrule (1), or the method of underground development under sub-rule (2), or size of openings, blocks or pillars under sub-rule (3) or the stoping practices under sub-rule (4), it shall be referred to the Chief Controller of Mines for decision.

(6) The Chief Controller of Mines may order such investigations and tests to be carried out as are considered necessary before arriving at a decision on any matter referred to him under sub-rule (5).

RULE 18. SUB-GRADE MINERALS TO BE BROUGHT TO SURFACE

(1) All the sub-grade ore/minerals wherever obtained in underground workings shall be brought to the surface instead of leaving or packing them in underground.

(2) As far as practicable the complete width of the ore/mineral body shall be worked:

PROVIDED that the Chief Controller of Mines may permit in writing leaving of certain portions underground if it is necessary for the support or protection to the mine workings.

RULE 19. PROHIBITION OF REDUCTION OF BLOCKS

All the blocks formed in underground workings shall be regular in size and shape. Once a block is formed it shall not be splitted or reduced in size until the stage of commencement of stoping: PROVIDED that the Chief Controller of Mines may permit reduction in the size of blocks on an application in writing made by the owner, agent, mining engineer or manager giving reasons for doing the same.

RULE 20. BENEFICIATION STUDIES TO BE CARRIED OUT

(1) If the Controller General or the authorised officer, having due regard to the nature of mining operations and grade of ore/mineral is of the view that the sub-grade ore/mineral contains certain recoverable product, he may direct the owner, agent, mining engineer or manager of the mine to get the beneficiation investigations carried out.

(2) The report of the beneficiation investigation so carried out shall be submitted to the Controller General or the authorised officer as the case may be immediately after the investigation is over.

(3) In a mine having a beneficiation plant, feed products and tailings shall be regularly sampled and analysed at suitable intervals and records of the same maintained in bound paged book:

PROVIDED that the Controller General or the authorised officer may require the sampling and analysis to be done at any other interval than in practice.

RULE 21 MACHINERY AND PLANT

(1) Where heavy earth moving is used in mines, the owner, agent, mining engineer or manager of the mine shall maintain Log Books in respect of each machine showing date-wise account of hours worked, hours not worked, reasons for non-working, consumption of fuel/energy and lubricants and output of the machine during the corresponding working hours. The summary of operation each machine shall be recorded in the Log Book at the end of each month bringing out the percentage availability and percentage utilisation of the machine, average hourly performance and average fuel/energy consumption per hour.

(2) Each page of the Log Book shall be numbered and the summary shall be signed and dated by the mining engineer.

(3) The Log Book shall be made available to the authorised officer on demand.

RULE 22 NOTICE FOR OPENING OF A MINE

(1) The owner, agent, mining engineer or manager of every mine shall send to the Controller General, Controller of Mines and the Regional Controller an intimation in17[Form C] of the opening of a mine so as to reach them within fifteen days of such opening.

(2) The intimation in17[Form C] sent to the Regional Controller under sub-rule (1) shall be accompanied with a copy of mining plan approved under clause (b) of sub-section

(2) ofsection 5of the Act18[only when the mine is being opened after a lapse of 5 years' period from the date of approval of mining plan].

RULE 23. ABANDONMENT OF MINES

(1) The owner, agent, mining engineer, or manager of every mine shall not abandon a mine or a part of mine during the subsistence of the lease except with prior permission in writing of the Controller General or the authorised officer.

(2) The owner, agent, mining engineer, or manager of every mine shall send to the Controller General, Controller or Mines and the Regional Controller under register cover, a notice in21[Form D] of his intention to abandon a mine or a part of a mine so as to reach them at least ninety days before the intended date of such abandonment.

(3) Such a notice shall be accompanied by plans and sections on a scale of not less than 1 cm- 10 metres setting forth accurately the work done in the mine upto the time of submission of the notice including the measures envisaged for the protection of the abandoned mine or part thereof, the approaches thereto, and the environment: PROVIDED that the Controller General may require the plans and sections to be prepared on any other suitable scale.

(4) The Controller General or the authorised officer may an order in writing made before the proposed date of abandonment, prohibit abandonment or allow it to be done with such conditions as he may specify in the order.

22["(5) The leaseholder shall not abandon a mine or part thereof unless a final mine closure plan duly approved by the Regional Controller of Mines or the officer authorized by the State Government in this behalf, as the case may be, is implemented. For this purpose, the lessee shall be required to obtain a certificate from the Regional Controller of Mines or the officer authorized by the State Government in this behalf to the effect that protective, reclamation and rehabilitation work in accordance with the final mine closure plan or with such modifications as approved by the competent authority, have been carried out before abandonment of mine.".

RULE 23A MINE CLOSURE PLAN

19Every mine shall have Mine Closure Plan, which shall be of two types :— (i) a progressive mine closure plan; and (ii) a final mine closure plan.

RULE 23B SUBMISSION OF PROGRESSIVE MINE CLOSURE PLAN

19— (1) The owner, agent, manager or mining engineer shall, in case of fresh grant or renewal of mining lease, submit a progressive mine closure plan as a component of mining plan to the Regional Controller of Mines or officer authorized by the State Government in this behalf as the case may be.

(2) The owner, agent, manager or mining engineer shall, in case of existing mining lease submit a progressive mine closure plan to the Regional Controller of Mines or the officer authorized by the State Government in this behalf, as the case may be, for approval within a period of one hundred and eighty days from the date of commencement of this rule.

(3) The owner, agent, manager or mining engineer shall review the progressive mine closure plan every five years from the date of its approval in case of existing mine or from the date of opening of the mine in Case of fresh grant or from the date of renewal of mining lease, as the case may be, and shall submit to the Regional Controller of Mines or officer authorised by the State Government in this behalf, as the case may be, for its approval.

(4) The Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, shall convey his approval or refusal of the progressive mine closure plan within ninety days of the date of its receipt.

(5) If approval or refusal of the progressive mine closure plan is not conveyed to the owner, agent, manager or mining engineer of the mining lease within the period as specified in sub-rule (4), the progressive mine closure plan shall be deemed to have been provisionally approved, and such approval shall be subject to final decision whenever communicated.

RULE 23C SUBMISSION OF FINAL MINE CLOSURE PLAN

—19(1) The owner, agent, manager or mining engineer shall submit a final mine closure plan to. Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, for approval one year prior to the proposed closure of the mine.

(2) The Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, shall convey his approval or refusal of the final mine closure plan within ninety days of the date of its receipt to the owner, agent, manager or mining engineer.

(3) If approval or refusal of the final mine closure plan is not conveyed to the owner, agent, manager or mining engineer of the mining lease within the period as specified in sub-rule (2), the final mine closure plan shall be deemed to have been provisionally approved, and such approval shall be subject to final decision whenever communicated.

RULE 23D THE MODIFICATION OF MINE CLOSURE PLAN

—19(1) The holder of a mining lease desirous of seeking modifications, in the approved mine closure plan, shall submit to the Controller General or the officer authorised by the State Government in this behalf, as the case may be, for approval setting forth the intended modifications and explaining the reasons for such modifications.

(2) The Controller General or the officer authorised by the State Government in this behalf, as the case may be, may approve the modifications as submitted u/Cl. (1) or approve with such alterations as he may consider expedient.

RULE 23E RESPONSIBILITY OF THE HOLDER OF MINING LEASE

19— (1) The owner, agent, manager or mining engineer shall have the responsibility to ensure that the protective measures contained in the mine closure plan referred to in this rule including reclamation and rehabilitation works have been carried out in accordance with the approved mine closure plan or with such modifications as approved by the Regional Controller or the officer authorised by the State Government in this behalf under this rule.

(2) The owner, agent, manager or mining engineer shall submit to the Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, a yearly report before 1st July of every year setting forth the extent of protective and rehabilitative works carried out as envisaged in the approved mine closure plan, and if there is any deviation, reasons thereof.

RULE 23F FINANCIAL ASSURANCE

19— (1) Financial assurance, has to be furnished by every leaseholder. The amount of financial assurance shall be rupees twenty five thousand for A category mines and rupees fifteen thousand for B category mines, per hectare of the mining lease area put to use for mining and allied activities. However, the minimum amount of financial assurance to be furnished in any of the forms referred to in clause (2) shall be rupees two lakh for A category mines and rupees one lakh for B category mines : Provided that a leaseholder shall be required to enhance the amount of financial assurance with the increase in the. area of mining and allied activities : Provided further that where a leaseholder undertakes reclamation and rehabilitation measures as part of the progressive closure of mine, the amount so spent shall be reckoned as sum of the financial assurance already spent by the leaseholder and the total amount of financial assurance, to be furnished by the lessee, shall be reduced to that extent;

(2) The financial assurance shall be submitted in one of the following forms to Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, or any amendment to it:

(a) Letter of Credit from any Scheduled Bank;

(b) Performance or surety bond;

(c) Trust fund build up through annual contributions from the revenue generated by mine and based on expected amount sum required for abandonment of mine; or

(d) Any other form of security or any other guarantees acceptable to the authority;

(3) The lessee shall submit the financial assurance to the Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, before executing the mining lease deeds. In case of an existing mining lease, the lessee shall submit the financial assurance along with the progressive mine closure plan.

(4) Release of financial assurance shall be effective upon the notice given by the lessee for the satisfactory compliance of the provisions contained in the mine closure plan and certified by the Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be.

(5) If the Regional Controller of Mines or the officer authorised by the State Government in this behalf, has reasonable grounds for believing that the protective, reclamation and rehabilitation measures as envisaged in the approved mine closure plan in respect of which financial assurance was given has not been or will not be carried out in accordance with the mine closure plan, either fully or partially, the Regional Controller of mines or the officer authorised by the State Government in this behalf, shall give the lessee a written notice of his intention to issue the orders for forfeiting the sum assured atleast thirty days prior to the date of the order to be issued.

(6) Within thirty days of the receipt of notice referred to in sub-rule (5), if no satisfactory reply has been received in writing from the lessee, the Regional Controller of Mines or the officer authorised by the State Government in this behalf as the case may be, shall pass an order for forfeiting the surety amount and a copy of such order shall be endorsed to the concerned State Government.

RULE 24 NOTICE OF TEMPORARY DISCONTINUANCE OF WORK IN MINES AND OBLIGATIONS OF THE LEASE HOLDERS

—20(1) The owner, agent, mining engineer or manager of every mine shall send to Controller General, Controller of Mines and the Regional Controller of Mines a notice in Form D-l when the mining or mineral processing operations in the mine or part thereof are discontinued for a period exceeding ninety days so as to reach them within one hundred and five days from the date of such temporary discontinuance.

(2) Where the discontinuance takes place as a result of the occurrence of natural calamity beyond the control of the owner, agent, mining engineer or manager of a mine, or in compliance with any order or directions issued by any statutory authority established under any law in force or any tribunal or a Court, a telegraphic intimation shall be sent to the Controller General and the Regional Controller within a period of twenty four hours of such discontinuance, and a notice of discontinuance, under this sub rule shall be submitted to the Controller General, Controller of Mines and the Regional Controller within a period of fifteen days of such discontinuance in Form D-1.

(3) During the temporary discontinuation of mine or part thereof, it shall be the responsibility of the owner, agent, manager or mining engineer to comply with the reasonable prohibitive measures to restrict access for unauthorised entry, provide protective measures to potentially danger sources of electrical and mechanical installations, the mine openings or workings and all other structures. It shall be ensured that all contaminated effluents are controlled and all physical, chemical, biological monitoring programmes have been continued. It shall also be ensured that all rock piles, over burden piles and stock piles and tailings and other water impoundment structure have been maintained in stable and safe conditions.".

RULE 25. INTIMATION OF REOPENING OF A MINE

The owner, agent, mining engineer or manager of every mine shall send to the Controller General, Controller or Mines and the Regional Controller an intimation in21[Form C] of reopening of a mine after temporary discontinuance, so as to reach them within fifteen days from the date of such reopening.

RULE 26. STOPING OF VEIN, ETC

(1) No stoping shall be commenced, conducted or carried out except with prior permission in writing of the Controller General, or the authorised officer.

(2) The owner, agent, mining engineer or manager of every mine shall send to the Controller General, Controller of Mines and the Regional Controller under registered cover a notice in21[Form E] intimating his intention to commence the stoping of any vein, lode, reef or mineral deposit, so as to reach them at least sixty days before the date of commencement of such operations.

(3) Such notice shall be accompanied by plans and sections on a scale of not less than 1 cm=10 metres showing the details of the block proposed to be stoped, the manner of stoping, the mineralised and barren zones indicating estimated percentage recovery from stopes:

PROVIDED that the Controller General 1[or the Chief Controller of Mines, as the case may be,] may, by an order in writing and subject to such conditions as he may specify therein, permit or require the plans and sections to be prepared on any other suitable scale.

(4) The Controller General or the authorised officer may by an order in writing made before the proposed date of commencement of sloping operations prohibit the stoping or allow it to be done under such conditions as may be specified in the order.

RULE 27. GENERAL REQUIREMENTS ABOUT PLANS AND SECTIONS

(1) Every plan or section prepared or submitted in accordance with the provisions of these rules shall- 

(a) show the name of the mine and of the owner and the purpose for which the plan or section is prepared;

(b) show the true north or the magnetic meridian and the date of the latter;

(c) show a scale of the plan at least twenty-five centimetres long and suitably sub-divided;

(d) unless otherwise provided, be on a scale having a representative factor of- 

(i) 200 : 1 in case of mica mines and other mines having small-scale workings below ground;

(ii) 2000 : 1 in case of mines having large open cast working and also in case of surface plans of large leasehold areas; and

(iii) 1000 :1 in other cases:

PROVIDED that the Chief Controller of Mines may, by an order in writing and subject

to such conditions as he may specify therein, permit or require the plans to be prepared on any other suitable scale;

(e) be properly inked in on a durable paper or on tracing cloth or other suitable material and be kept in good condition.

(2) The conventions prescribed under the Metalliferous Mines Regulations, 1961, shall be used in preparing all plans and sections required under these rules.

(3) The plans and sections shall be accurate within such limits of error as the Controller General may specify by a general or special order.

(4) The plans and sections required under these rules shall be maintained upto-date within three months.

RULE 28. TYPES OF PLANS AND SECTIONS

(1) The owner, agent, mining engineer or manager of every mine shall keep the following plans and sections:- 

(a) a surface plan showing every surface feature within the mining lease boundaries such as building, telephone, telegraph or power transmission line, watermain, tramline, railway, road, river, water-course, reservoir, tank, borehole, shaft and incline opening, opencast working, dumps and dumping ground, the waste land, forest, sanctuaries, agricultural land and grazing land and subsidence on the surface;

(b) a surface geological plan of the area of leasehold, on a scale specified or approved by the Controller General by a General or special order in writing showing- 

(i) all the lithological units exposed in the area, in the pits, trenches and in any other

openings made for prospecting and mining operations showing contact between lithological units;

(ii) structural details like strike, dip, fold, fault, plunge of ore body;

(iii) location of prospecting pits, trenches, boreholes and any other openings made for prospecting and/or mining operations;

(iv) existing mine workings, dumps;

(c) a transverse section or sections of the workings through the shaft or shafts and main adits indicating clearly the strike and dip of the vein, lode, reef, or mineral bed or deposit at different points, and such sections of the strata sunk or driven through in the mine or proved by boring, as maybe available;

(d) a longitudinal mine section or sections showing a vertical projection of the mine working including outlines of all stoped out areas, where a reef, vein, lode or mineral bed/deposit or part thereof has dip exceeding thirty degrees from the horizontal plane:

PROVIDED that, with the permission in writing of the Controller General24 [or the Chief Controller of Mines, as the case may be,] and subject to such conditions as he may specify therein, such sections may be prepared in relation to any other suitable plan;

(e) an underground plan showing- 

(i) the position of the workings of the mine below ground;

(ii) every boreholes and shaft (with depth), drive, cross-cut, winze, raise, excavation (stoped ground) and every tunnel and air passage connected therewith;

(iii) every pillar or block of mineral left for the support of any structure on the surface; and underground magazines, if any;

(iv) the general strike of the veins, lodes, reefs and mineral beds or deposits;

(v) the position of every dyke, fault and other geological disturbance with the amount and direction of throw.

(2) Whenever the underground plan referred to in clause (e) of sub-rule (1) is brought up-to-date, the then position of the workings shall be shown by a dotted line drawn through the ends of the workings, and such dotted line shall be marked with the date of the last survey:

PROVIDED that the Controller General24[or the Chief Controller of Mines, as the case may be,] may, by an order in writing and subject to such conditions as he may specify therein approve any other method of showing the up-to-date position of the working of the mine.

(3) Where different reefs, lodes, veins or mineral beds or deposits overlie or run parallel to one another, the workings of each reef, lode, vein or mineral bed or deposit shall be shown on separate plant and/or longitudinal section or sections; however if two reefs, lodes, veins, or mineral beds or deposits are so situated in relation to eachother that the parting between workings made therein is less than ten metres at any place, such workings shall also be shown on a combined plan and/or longitudinal section, as the case may be, in different colours.

(4) The plans kept under clauses (a) and (e) of sub-rule (1) shall also show the settled boundary of the mining lease, or where the boundary is in dispute, the boundaries claimed by the owner of the mine and by the owners of the mines adjacent to the disputed boundary:

PROVIDED that where it is not possible to show the complete boundary of leasehold on the same plan an additional key plan or any other suitable scale showing such boundaries and the outline of the workings shall also be maintained.

(5) The owner, agent, mining engineer or manager of every mine shall keep the following:- 

(a) A key plan on a scale of 1:63,000 or 1:50,000 incorporating the following:- 

25[(i) an administrative surface map showing the boundary of the mining lease, and the adjoining area lying preferably within five kilometres thereof;]

(ii) contours at not more than fifteen metres intervals;

(iii) natural drainage system such as rivers, streams, nalahs, water reservoirs, ponds, lakes, irrigation dams and canals;

(iv) roadways and railways;

(v) places of historical and archaeological importance, monuments, places of worship, pilgrimage and of tourist interest;

(vi) forests with tree density, sanctuaries, wastelands, agricultural lands, grazing lands; (vii) boundaries of all villages and towns with their population; (viii) predominant wind direction; (ix) any other relevant features:

26[PROVIDED that where topographical map is classified as restricted, the particulars referred to in items (i) to (ix) shall be incorporated in the key plan to the extent available in the administrative27[surface] maps.]

(b) An environment plan of the area of mining lease inclusive of the adjoining area within five hundred metres of the boundary of a lease area on 1:5000 scale incorporating the following:- 

(i)25[an administrative surface map showing the boundary of the mining lease]; (ii) contour lines at five metres intervals; (iii) all features indicated in sub-clauses (iii) to (ix) of clause (a) above;

(iv) area occupied by mine workings, area deforested, area covered by dump with the height of the dump, processing plant, surface building, workshop, mining township;

(v) area reclaimed and area afforested, location of protective barriers, check dams

erected to contain solid and liquid effluents generated byprospecting, mining, beneficiation or metallurgical operations carried out in the mine;

(vi) all pumping stations and the courses of discharge of mine water:

28[PROVIDED that the particulars with regard to items (ii), (iv) and (v) shall be applicable only upto sixty metres beyond the boundary of lease area.]

(6)  (a) The Controller General may, by an order in writing, require such additional details to be shown on the plans and sections required to be kept under these rules or the preparation and maintenance of such plans and sections showing such details and on such scale and within such time as he may specify in the order.

(b) The Controller General or the authorised officer may, by an order in writing, require the owner, agent, mining engineer or manager of a mine to submit to him within such time, such plans and sections, or tracings thereof, as he may specify in the order.

RULE 29. COPIES OF PLANS AND SECTIONS TO BE SUBMITTED

The owner, agent, mining engineer or manager of every mine shall, on or before the 31st day of March every year submit to the Controller General, Controller of Mines and the Regional Controller a copy of the plans and sections maintained underrule 28

RULE 30. PREPARATION OF PLANS

(1) All plans, sections and tracings or copies thereof kept at the mine shall be serially numbered or suitably indexed.

(2) Every plan, section or part thereof prepared under these rules shall carry thereon a certificate for its correctness and shall be signed by the mining engineer with date:

PROVIDED that the geological plans and sections shall be certified and signed by the geologist employed underrule 42.

(3) Every copy of a plan and section or part thereof submitted or maintained under these rules shall bear a reference to the original plan or section from which it was copied and shall be certified thereon by the owner, agent, mining engineer or manager to be a true copy of the original plan or section.

RULE 31. PROTECTION OF ENVIRONMENT

Every holder of a prospecting licence or a mining lease shall take all possible precautions for the protection of environment and control of pollution while conducting prospecting, mining, beneficiation or metallurgical operations in the area.

RULE 32. REMOVAL AND UTILISATION OF TOP SOIL

29[ (1) Every holder of a prospecting licence or a mining lease shall, wherever top soil exists and is to be excavated for prospecting or mining operations, remove it separately.

(2) The top soil so removed shall be utilised for restoration or rehabilitation of the land which is no longer required for prospecting or mining operations or for stabilising or landscaping the external dumps.

(3) Whenever the top soil cannot be utilised concurrently, it shall be stored separately for future use.]

RULE 33. STORAGE OF OVERBURDEN, WASTE ROCK, ETC

(1) Every holder of prospecting licence or a mining lease shall take steps so that the overburden, waste rock, rejects and fines generated during prospecting and mining operations or tailings, slimes and fines produced during sizing, sorting and beneficiation or metallurgical operations shall be stored in separate dumps.

(2) The dumps shall be properly secured to prevent escape of material therefrom in harmful quantities which may cause degradation of environment and to prevent causation of floods.

(3) The site for dumps, tailings or slimes shall be selected as far as possible on impervious ground to ensure minimum leaching effects due to precipitations.

(4) Wherever possible, the waste rock, overburden, etc. shall be back-filled into the mine excavations with a view to restoring the land to its original use as far as possible.

(5) Wherever back-filling of waste rock in the area excavated during mining operations is not feasible, the waste dumps shall be suitably tarraced and stabilised through vegetation or otherwise.

(6) The fines, rejects or tailings from mine, beneficiation or metallurgical plants shall be deposited and disposed in a specially prepared tailings disposal area such that they are not allowed to flow away and cause land degradation or damage to agricultural field, pollution of surface water bodies and ground water or cause floods.

RULE 34. RECLAMATION AND REHABILITATION OF LANDS

Every holder of prospecting licence or mining lease shall under take the phased restoration, reclamation and rehabilitation of lands affected by prospecting or mining operations and shall complete this work before the conclusion of such operations and the abandonment of prospect or mine.

RULE 35. PRECAUTION AGAINST GROUND VIBRATIONS

Whenever any damage to public buildings or monuments is apprehended due to their proximity to the mining lease area, scientific investigations shall be carried out by the holder of mining lease so as to keep the ground vibrations caused by blasting operations within safe limit.

RULE 36. CONTROL OF SURFACE SUBSIDENCE

Stoping in underground mines shall be so carried out as to keep surface subsidence under control.

RULE 37. PRECAUTION AGAINST AIR POLLUTION

Air pollution due to fines, dust, smoke or gaseous emissions during prospecting, mining, beneficiation or metallurgical operations and related activities shall be controlled and kept within 'permissible limits' specified under various environmental laws of the country including Air (Prevention and Control of Pollution) Act, 1981 (14 of 1981) and the Environment (Protection) Act, 1986 (29 of 1986) by the holder of prospecting licence or a mining lease.

RULE 38. DISCHARGE OF TOXIC LIQUID

very holder of prospecting licence or a mining lease shall take all possible precautions to prevent or reduce the discharge of toxic and objectionable liquid effluents from mine, workshop, beneficiation or metallurgical plants, tailing ponds, into surface water bodies, ground water aquifier and usable lands, to a minimum. These effluents shall be suitably treated, if required, to conform to the standards laid down in this regard.

RULE 39. PRECAUTION AGAINST NOISE

Noise arising out of prospecting, mining beneficiation or metallurgical operations shall be abated or controlled by the holder of prospecting licence or a mining lease at the source so as to keep it within the permissible limit.

RULE 40. PERMISSIBLE LIMITS AND STANDARDS

The standards and permissible limits of all pollutants, toxins and noise referred to inrules 37,38and39shall be those notified by the concerned authorities under the provisions of the relevant statutes from time to time.

RULE 41. RESTORATION OF FLORA

(1) Every holder of prospecting licence or a mining lease shall carry out prospecting or mining operations, as the case may be, in such a manner so as to cause least damage to the flora of the area held under prospecting licence or mining lease and the hereby areas.

(2) Every holder of prospecting licence or a mining lease shall-

(a) take immediate measures for planting in the same area or any other area selected by the Controller General or the authorised officer not less than twice the number of trees destroyed by reason of any prospecting or mining operations.

(b) look after them during the subsistence of the licence/lease after which these trees shall be handed over to the State Forest Department or any other authority may be nominated by the Controller General or the authorised officer; and

(c) restore, to the extent possible, other flora destroyed by prospecting or mining operations.

RULE 42. EMPLOYMENT OF GEOLOGIST AND MINING ENGINEER

Table Qualifications Experience Category of the mines (1) (2) (3)

(i) Diploma in Mining or Post-graduate degree in Geology with First Class Metalliferrous Mine Manager's Certificate Nil All Category "B" Mines

(ii) Holder of first class Metalliferrous Mine Manager's Certificate Two years experience after obtaining the Certificate All Category "B" Mines

(iii) Diploma in Mining or Post-graduate degree in Geology or equivalent 3 years experience in supervisory capacity in mine All Category "B" Mines

(iv) Graduate in Geology or holder of second class Metalliferrous Mine Manager's Certificate 5 years experience after graduation or one year's experience after obtaining the certificate All Category "B" Mines

(v) Secondary School Leaving Certificate with Mines Foreman's Certificate. 5 years experience as a Mines Foreman/Mate All open cast mines of Category "B"]

(e) The person permitted to be employed in lieu of mining engineer shall be bound by these rules in the same way as the mining engineer.

(7) Where, due to reduction in average employment in the mine, a category 'A' mine qualifies to becomes a category 'B' mine, the employment of a mining engineer as required for category 'B' mine may be done only with previous permission in writing of the Controller General or the authorised officer and subject to such conditions as he may specify.

RULE 43. DUTIES OF GEOLOGIST

(1) It shall be the duty of the geologist to conduct prospecting operations in accordance with the provisions of these rules.

(2) He shall- 

(a) prepare the necessary geological plans and sections which are required to delineate the ore body;

(b) calculate ores reserves and its grade;

(c) be responsible for providing all the necessary information required for controlling the quality of the minerals produced;

(d) maintain proper records of the prospecting operations and records of sinking of shafts and boreholes as provided under these rules;

(e) work out the appropriate method of sampling and ensure preparation of samples accordingly;

(f) maintain an assay plan in cases of underground workings;

(g) maintain all technical data for determining the shape and size of each stope block;

(h) update the reserve figures, grade-wise and category-wise at the end of every year in case of a working mine;

(i) identify the associated rocks and minerals and maintain proper records of the stacks of non-salable/sub-grade ores and minerals produced;

(j) carry out all such orders and directions as may be given in writing under these rules by the Controller General or the authorised officer33[and shall forward a copy of all such orders or directions to the holder of the prospecting licence or, as the case may be, the mining lease].

RULE 44. DUTIES OF MINING ENGINEER

(1) It shall be the duty of the mining engineer to take all necessary steps to plan and conduct mining operations, so as to ensure conservation of minerals, systematic development of the mineral deposits and protection of environment in and around the mining lease are in accordance with these rules.

(2) He shall be responsible for the preparation and maintenance of the plans, sections, reports and schemes in accordance with these rules.

(3) He shall be responsible for carrying out the study of the associated rocks and minerals, identifying them and stacking the various minerals produced separately.

(4) He shall carry out all such orders and directions as may be given in writing under these rules by the Controller General or the authorised officer 1[and shall forward a copy of such orders or directions to the holder of prospecting licence or, as the case may be, the mining lease].

(5) Wherever the mining engineer is appointed to supervise the prospecting operations underrule 42, he shall also carry out the duties of the geologist.

(6)  (a) The mining engineer shall ensure that there is sufficient provision of proper materials, appliances and facilities at all times at the mine for the purpose of carrying out the provisions of these rules and orders issued thereunder and where he is not the owner or agent of the mine, he shall make requisition in writing to the owner or agent for anything required for the aforesaid purpose. A copy of every such requisition shall be recorded in a bound paged book kept for the purpose.

(b) On receipt of a requisition under clause (a), the owner or agent shall provide as soon as possible the materials and facilities requisitioned by the mining engineer.

RULE 45. MONTHLY, QUARTERLY AND ANNUAL RETURNS

(1) The owner, agent, mining engineer or manager of every mine shall submit to the Controller General, Controller of Mines and the Regional Controller, returns in respect of each mine as per category 'A' or 'B' specified in clause (b) of sub-rule (1) ofrule 42, in the relevant form and within the time specified in respect of such returns, namely:- 

34[(a) a monthly return which shall be submitted before the 15th of every month in respect of preceding month in the Form as indicated below: In respect of category 'A' mines 

(i) for iron ore inForm F1;

(ii) for manganese ore inForm F2; (iii) for bauxite and laterite inForm F3; (iv) for chromite inForm F4;

(v) for copper, lead, zinc, pyrites, gold and tungsten inForm F5; (vi) for mica inForm F6; (vii) for precious and semi-precious stones inForm F7;

(viii) for all other minerals inForm F8; and In respect of category 'B' mines

(ix) for all minerals inForm F9;

(b) an annual return inForm Gwhich shall be submitted before 1st July each year for the preceding year in respect of mines using explosives.

(c) an annual return which shall be submitted before the 1st July each year for the preceding year in the Form as indicated below:

In respect of category 'A' mines

(i) for iron ore inForm H1;

(ii) for manganese ore inForm H2; (iii) for bauxite and laterite inForm H3; (iv) for chromite inForm H4;

 (v) for copper, lead, zinc, pyrite, gold, and tungsten inForm H5; (vi) for mica inForm H6; (vii) for precious and semi-precious stones inForm H7;

(viii) for all other minerals inForm H8; and In respect of category 'B' mines

(ix) for all minerals inForm H9:

PROVIDED that in case of abandonment of a mine, the annual return of that mine shall be submitted within ninety days of abandonment.]

(2) Where under the provisions of clauses (a) and (c) of sub-rule (1), the monthly and the annual returns have been sent in the form prescribed for category 'A' mine, they shall not, except with the previous permission in writing of the Controller General, be sent in the form prescribed for category 'B' mines, notwithstanding any reduction in the average employment of the mine during the succeeding periods.

RULE 46. NOTICE OF CERTAIN APPOINTMENTS

When any new appointment is made of an agent, mining engineer, geologist, manager or any person under sub-rule (6) ofrule 42or when the employment of any such person is terminated or any such person leaves, the said employment or when any change occurs in the address of any such person, the owner of the mine or the holder of the prospecting licence shall, within fifteen days from the date of such appointment, termination, leaving or change in address give a notice in35[Form I] to the Controller General, Controller of Mines and the Regional Controller.

RULE 47. NOTICE OF SHAFT SINKING AND BOREHOLES

The owner, agent, mining engineer, geologist or manager of every mine or the holder of a prospecting licence shall send intimation in35[Form J] to the Controller General, Controller Mines and the Regional Controller within fifteen days after the commencement of any of the following operations:

(a) the sinking of trial shaft or borehole to a depth exceeding ten metres from the surface, or

(b) the extension of an existing shaft or borehole to a depth exceeding ten metres, or

(c) the sinking of a new shaft or boreholes commencing from underground workings:

PROVIDED that the Controller General or the authorised officer may permit such intimation to be given collectively within such extended period as may be specified by him.

RULE 48. RECORDS OF SHAFTS AND BOREHOLES

The owner, agent, mining engineer, geologist or manager of every mine or the holder of a prospecting licence shall keep a record in36[Form K] of all shafts or boreholes exceeding ten metres in depth and shall retain all records and sample of the strata passed through for a period of not less than twelve months after the completion of the work or abandonment thereof:

PROVIDED that the records of boreholes and shafts exceeding one hundred metres length shall not be destroyed except with the prior approval of the Controller General or the Regional Controller.

RULE 49. CHANGE IN THE NAME OF MINE TO BE NOTIFIED

The owner, agent, mining engineer or manager of every mine shall send a notice in36[Form C] to the Controller General, the Controller of Mines and the Regional Controller, of any change in the name of the mine within thirty days of such change.

RULE 50. NOTICE OF TRANSFER OF PROSPECTING LICENCE OR MINING LEASE

Without prejudice to the provisions of the Act or any rules made thereunder or the terms and conditions of a prospecting licence or a mining lease, prohibiting or restricting the transfer of a prospecting licence or a mining lease, every holder of a prospecting licence or a mining lease who transfers or assigns his licence or lease or any right, title or interest thereunder to any other person, shall, within thirty days of the date of such transfer or assignment send an intimation thereof in36[Form L] to the Controller General, the Controller of Mines and the Regional Controller.

RULE 51. TRANSFER OF RECORDS TO TRANSFEREES

When the ownership of a prospecting licence or a mining lease is transferred, the previous owner or his agent shall make over to the new owner of his agent within a period of seven days of the transfer of the ownership, borehole cores preserved, if any, all plans, sections, reports, registers and other records maintained in pursuance of the Act, Rules or Orders made thereunder, and all correspondence relevant thereto relating to the prospecting licence or mining lease; and when the requirements of these rules have been duly complied with, both previous and the new owners or their respective agents shall forthwith send to the Controller General, Controller of Mines and the Regional Controller a detailed list of borehole cores, plans, sections, reports, registers and other records that have been transferred.

RULE 52. COPIES OF NOTICES/RETURNS TO BE SUBMITTED TO THE STATE GOVERNMENT

The owner, agent, mining engineer or manager of every mine or a holder of a prospecting licence shall simultaneously submit a copy each of the notice/return/intimation required to be submitted under these rules to the State Government concernedin whose territory the mine or the prospecting area is situated or to such authority as that Government may specify in this behalf.

RULE 53. COPIES OF NOTICES AND RETURNS TO BE MAINTAINED

The owner, agent, mining engineer or manager of every mine or a holder of a prospecting licence shall maintain the labour attendance register, production and despatch register, explosives consumption register, mineral analysis reports and details of mining machinery and copies of all notices and returns, plans, sections and schemes submitted to the Controller General under these rules, at an office established in the area where mining or prospecting operations are carried on, and these shall be made available at all reasonable times to the officer of the Indian Bureau of Mines for inspection.

RULE 54. POWER TO ISSUE DIRECTIONS

(1) The owner, agent, mining engineer, geologist or manager of every mine shall comply with such directions being directions for purposes of providing for systematic development of mineral deposits, conservation of minerals and for the protection of the environment by preventing or controlling pollution which may be caused by prospecting, mining, beneficiation or metallurgical operations, as the Controller General may issue from time to time. A copy of the proposed directions to be issued to any particular mine will be sent by the Controller General to the owner, agent, mining engineer, geologist or manager of the mine concerned, and to the State Government, and any comments received from the owner, agent, mining engineer, geologist or manager of the mine and the State Government within thirty days of the date of service of the notice, shall be duly considered by him before issuing any such directions. General directions applicable to a class of mines shall be issued by the Controller General with the previous approval of the Central Government in consultation with the State Government concerned.

(2) An order made under sub-rule (1) shall- 

(a) in the case of an order of a general nature or affecting a class of persons, be notified in Official Gazette; and

(b) In the case of an order directed to a specified individual, be served on such individual, (i) by delivering or tendering it to that individual, or if it cannot be so delivered or tendered, by affixing it on the outer door or some other conspicuous part of the premises in which that individual lives, and a written report thereof shall be prepared and witnessed by two persons living in neighbourhood.

RULE 55. EXAMINATION OF MINERAL DEPOSITS AND TAKING OF SAMPLES

The Controller General or any officer duly authorised by the Government to enter and inspect a mine, and examine any mineral deposit in any area under prospecting licence or mining lease and take samples therefrom at any time for the purpose of these rules.

RULE 56. PROHIBITION OF DEPLOYMENT IN CERTAIN CASES

If any mine or part thereof, which in the opinion of the Controller General, Chief Controller of Mines or the Controller of Mines poses a grave and immediate threat to the conservation of minerals or to environment, he may, by an order in writing to the owner, agent, mining engineer or manager, require him to take such measures as may be specified in the order and may prohibit, until the requirements as specified in the order are complied with to his satisfaction, the deployment of any person other than those required for compliance with the requirement of the order.

RULE 57. REVISION

(1) Any person aggrieved by any order made or direction issued under these rules by any officer subordinate to the Controller General,37[or an officer of the State Government, as the case may be,] may within thirty days of the communication of such order or direction, apply to the Controller General for a revision of the order or direction, provided that any such application may be entertained after the said period of thirty days if the applicant satisfies the Controller General that he had sufficient cause for not making the application within time:

37[PROVIDED that if any order made or direction issued as aforesaid by an officer subordinate to the Chief Controller of Mines, the application shall be made to the Chief Controller of Mines who shall deal with the application in the manner prescribed hereunder.]

(2) Every order against which a revision application is preferred under sub-rule (1) shall be complied with pending receipt of the decision of the appellate officer:

38[PROVIDED that the Controller General or Chief Controller of Mines, as the case may be, may suspend operation of the order appealed against, pending disposal of the revision application.]

(3) On receipt of an application for revision under sub-rule (1), the Controller General37[or the Chief Controller of Mines, as the case may be,] after giving a reasonable opportunity of being heard to the aggrieved person, may confirm, modify or set aside the order passed by an officer subordinate to him.

38[(4) Any person aggrieved by any order made or direction issued by the Chief Controller of Mines may within thirty days of the communication of such order or direction, apply to the Controller General for a revision of the order or direction, provided that any such application may be entertained after the said period of thirty days, if the applicant satisfies Controller General that he had sufficient cause for not making the application within time.]

37[(5) On receipt of any such application under sub-rule (4), the Controller General may confirm, modify or set aside the order or direction made or issued by the Chief Controller of Mines or may pass such orders in relation to the applicant, as it may deem fit and such decision shall be final.]

(6) Every order against which a revision application is preferred under sub-rule (4), shall be complied with pending receipt of the decision of the37[Controller General]: PROVIDED that the37[Controller General] may, on an application made by the applicant, suspend operation of the order appealed against pending disposal of the revision application.

(7) Every application submitted under the provisions of this rule shall be accompanied by Treasury Receipt showing that a fee of Rs.Rs. 1000/- has been paid into a Government Treasury or any branch of the State Bank of India doing Treasury Business to the credit of the Central Government under Major Head-0853-Non-Ferrous Mining & Metallurgical Industries, 800-Other receipts' or by a Bank Draft on aNationalised Bank for Rs. 1000/- in the name of Pay & Accounts Officer, Indian Bureau of Mines payable at Nagpur.

RULE 58 PENALTY

Whoever contravenes any of the provisions of these rules shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to five thousand rupees or with both and in the case of continuing contravention, with an additional fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention.

RULE 59. PRESERVATION OF CORES, ETC

The owner, agent, mining engineer, geologist or manager of every mine or the holder of a prospecting licence shall preserve intact all cores and specimens of different types of rocks and minerals obtained during drilling or sinking operations and arrange for them to be laid out in a serial order with identification marks, showing the progressive depth at which they are obtained. Such specimens shall not be broken except for the purpose of analysis and testing in which case, representative samples of the specimens so broken will be preserved for a period of not less than six months from the date of completion of drilling or sinking operations. The Controller General, by an order in writing, may require the cores or specimens of rocks and minerals obtained from specific boreholes or shafts to be preserved for any specific period or relax the provisions of this rule to such an extent as he may deem fit.

RULE 60. FACILITIES FOR UNDERTAKING RESEARCH OR TRAINING

Every holder of a prospecting licence or a mining lease shall afford all reasonable facilities to persons authorised by the Controller General for the purpose of undertakings research or training in matters relating to mining or geology.

RULE 61. SUBMISSION OF RECORDS/REPORTS REGARDING RESEARCH IN GEOLOGY OR MINING

(1) Any person, institution or agency carrying on prospecting or mining operations related to any research in geology or mining, shall inform the Controller General and the Regional Controller, within a period of thirty days of commencement of such research related operations, indicating briefly the aspects proposed to be covered under such research together with the name and address of the person, institution, or agency carrying out such research work and the expected duration of the research related operations.

(2)(a) On completion of the said research work, a report describing the observations, analysis and conclusions reached as a result of the said research work shall be submitted to the Controller General within thirty days of its completion.

(b) The information so received will be kept confidential, if required. The Government will, however, be free to utilise the information for general studies, planning or policy making purpose.

(3) The provisions of sub-rules (1) and (2) shall also apply mutatis mutandis to any agency of the Central Government or State Government carrying out the research work.

RULE 62. TERRITORIAL JURISDICTION OF CONTROLLER OF MINES/REGIONAL CONTROLLER

The Controller general may by a notification in the Official Gazette prescribe the limits of the territorial jurisdiction of the Controller of Mines and the Regional Controller for purposes of these rules.

RULE 63. OBLIGATION TO SUPPLY OTHER INFORMATION

The owner, agent, mining engineer, geologist or manager of every mine shall furnish such information regarding their mine or any matter connected therewith as the Controller General or the authorised officer may require, by an order in writing, and the information shall be furnished within such time as may be specified in the aforesaid order.

RULE 64. PROVISIONS OF THESE RULES TO BE APPLICABLE TO GOVERNMENT

The Government or its agencies carrying out mining operations without a mining lease shall be bound by all the provisions of these rules in the same manner as they are applicable to holders of mining leases.

RULE 65. CHIEF CONTROLLER OF MINES, ETC. TO EXERCISE POWERS OF THE REGIONAL CONTROLLER OF MINES

Any power granted under these rules to the Regional Controller of Mines may be exercised by the Controller of Mines or the Chief Controller of Mines.

RULE 66. REPEAL AND SAVING

TheMineral Conservation and Development Rules, 1958are hereby repealed. Notwithstanding such repeal, anything done or any action taken, including any order made, direction given or notice issued under the Mineral Conservation and Development Rules, 1958 shall insofar as it is not inconsistent with the provisions of these rules, be deemed to have been done, taken, made, given or issued, as the case may be, within the corresponding provisions of these rules.

Footnotes:

1. Inserted by The Mineral Conservation and Development (Amendment) Rules, 2003

3. Substituted by GSR 227(E),dt. 4. Inserted by Mineral Conservation and Development (Amendment) Rules, 2003

6. Substituted by GSR 227(E), dt. 7. Inserted by GSR 55(E), dt. 8. Substituted by GSR 55(E), dt. 9. Substituted by GSR 227(E), dt. 10. Omitted by GSR 580(E), dt. 11. Substituted by GSR 580(E). dt.4-8-1995.

12. Inserted by GSR 55(E), dt. 13. Inserted by GSR 55(E), dt. 14. Substituted by GSR 55(E) dt. 15. Omitted by GSR 55(E), dt. 16. Inserted by GSR 55(E), dt. 17. Substituted by GSR 580(E), dt.4-8-1995.

18. Inserted by GSR 227(E), dt. 19. Inserted by The Mineral Conservation and Development (Amendment) Rules, 2003

20. Sunbstituted by The Mineral Conservation and Development (Amendment) Rules, 2003

21. Substituted by GSR 580(E), dt. 22. Substituted by The Mineral Conservation and Development (Amendment) Rules, 2003.

24. Inserted by GSR 55(E), dt. 25. Substituted by GSR 55(E), dt. 26. Inserted by GSR 227(E), dt. 27. Inserted by GSR 55(E), dt. 28. Inserted by GSR 227(E), dt. 29. Substituted by GSR 227(E), dt. 33. added by GSR 227(E), dt. 34. Substituted by GSR 580(E), dt. 35. Substituted by GSR 580(E), dt. 36. Substituted by GSR 580(E), dt. 37. Inserted by GSR 55(E), dt. 38. Substituted by GSR 55(E), 17-1-2000.

MARBLE DEVELOPMENT AND CONSERVATION RULES, 2002

G.S.R. 369(E).—In exercise of the powers conferred by Sec 18 read with Sees 21 & 26 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central Government hereby makes the following rules for conservation and systematic development of and scientific mining to conserve the marble resources and to provide a uniform frame-work with regard to systematic and scientific exploitation of marble throughout the country, namely:—

RULE 1 SHORT TITLE AND COMMENCEMENT

(1) These rules may be called the Marble Development and Conservation Rules, 2002.

(2) They shall come into force from the date of their publication in the Official Gazette.

RULE 2 APPLICATION

—These rules shall apply to prospecting and quarrying or mining of marble.

RULE 3 DEFINITIONS

— (1) In these rules, unless the context otherwise requires,— 

(a) "Act" means the Mines and Minerals (Development and Regulations) Act, 1957 (67 of 1957);

(b) "agent", when used in relation to a quarry or mine, means any person

whether appointed as such or not, who acts as the representative of the

owner in respect of the management of the quarry or mine or any part thereof;

(c) "development" means removing overburden or unproductive or waste materials as preparatory to mining;

(d) "drilling" means the penetration of alluvial material, rocks or formations

by holes for obtaining geological information and for drawing samples therefrom;

(e) "environment" and "environmental pollution" shall have the same

meanings respectively assigned to them in the Environment (Protection) Act, 1986 (29 of 1986 );

(f) "Form" means a Form set forth in Schedule to these rules;

(g) "geologist" means a person having a post graduate degree in Geology from a University established or incorporated by or under an Act of Parliament or any institution recognised by the University Grants Commission established under Sec. 4 of the University Grants Commission

Act, 1956 (3 of 1956) or any qualification equivalent thereto and appointed in

writing by the prospecting licensee, owner or agent to perform the duties of a geologist under these rules;

(h) "marble" means crystalline metamorphosed calcarious or dolomitic rocks and serpentine rock types which are— 

(i) amenable to be recovered as dimensional stone; and

(ii) capable of taking polish.

(i) "lease" means a lease granted for the purpose of undertaking mining or quarrying operations for marble;

(j) "manager" when used in relation to a mine or a quarry, means any person appointed by the owner or agent and includes the owner or the agent if he appoints himself to be such manager, under Sec. 17 of the Mines Act, 1952 (35 of 1952);

(k) "mining engineer" means a person having a Bachelor degree in mining engineering from a University established or incorporated by or under an Act of Parliament or including any institution recognised by the University Grants Commission established under Sec. 4 of the University Grants Commission Act, 1956 (3 of 1956) or any qualification equivalent thereto and appointed in writing by the owner or agent to perform the duties of a mining engineer under these rules;

(l) "prospect" means an area where existence of marble has been established;

(m) "prospecting licence" means a licence granted for the purpose of undertaking any operation for the purpose of exploring, locating or proving marble deposits;

(n) "quarry" means an opencast working as defined in Mines Act, 1952 (35 of 1952);

(o) "recognised person" means a qualified person granted recognition by the competent authority under these rules to prepare mining plan;

(p) "year" means the twelve months period beginning from the first day of April and ending on the thirty first day of March of the following year.

(2) All other words and expressions used in these rules but not defined shall have the meanings respectively assigned to them in the Act.

RULE 4 PROSPECTING TO PRECEDE MINING OPERATIONS

—No lease shall be granted by the State Government unless it is satisfied that there is evidence to show that the area for which the lease is applied for has been prospected earlier or marble or the existence of marble therein has been established otherwise.

RULE 5 PERIOD FOR WHICH PROSPECTING LICENCE MAY BE GRANTED

—The period for which a prospecting licence may be granted shall not exceed two years;

RULE 6 PERIOD FOR WHICH LEASES MAY BE GRANTED

—The maximum period for which a lease may be granted shall not exceed thirty years:

Provided that the minimum period for which any such lease may be granted shall not be less than twenty years.

RULE 7 MINIMUM AND MAXIMUM AREA FOR GRANT OF A MINING LEASE

(1) The minimum area that may be granted under a lease for ensuring mining activities to optimum depth shall not be less than four hectares with the restriction that the dimension on any one side of such area shall not be less than 200 metres.

(2) The maximum area that may be granted under a mining lease shall not exceed fifty hectares:

Provided that the State Government, if it is satisfied on the basis of proposed production level, geological, topographical or other conditions, may for the reasons to be recorded in writing, grant a lease over an area more than the maximum area or less than the minimum area specified under this rule.

RULE 8 SCHEME OF PROSPECTING

— (1) Every holder of a prospecting licence for marble shall submit to the State Government or any person authorised in this behalf by that Government within a period of sixty days from the date of execution of the prospecting licence, a scheme of prospecting indicating the manner in which he proposes to carry out the prospecting operation, in the area covered by the licence and the scheme shall incorporate the following, namely:— 

(a) particulars of the area;

(b) the scale of the plan and the area of geological mapping;

(c) the number of pits, trenches, and bore holes which he proposes to put in the area and the locations thereof;

(d) the particulars of the machines to be used;

(e) the details of exploratory mining to be undertaken;

(f) the number of samples proposed to be drawn and tested;

(g) baseline information of prevailing environmental conditions before the beginning of the prospecting operations;

(h) any other matter relevant for the preparation of a scheme of prospecting, as directed by the State Government or any person so authorised from time to time by a general or specific order.

(2) The prospecting scheme under sub-rule (1) shall be prepared by a recognised person or a geologist or a mining engineer employed under clause (a) of sub-rule (1) of Rule 34.

RULE 9 MODIFICATION OF SCHEME OF PROSPECTING

(1) A prospecting scheme prepared and submitted under Rule 8 may be modified at any time on geological considerations by the holder of a prospecting licence during continuance of the prospecting licence.

(2) Any modification carried out under sub-rule (1) shall be intimated to the State Government or any person authorised in this behalf by that Government, by the holder of a prospecting licence within a period of fifteen days.

RULE 10 PROSPECTING OPERATIONS TO BE CARRIED OUT IN ACCORDANCE WITH SCHEME OF PROSPECTING.

(1) Every holder of a prospecting licence for marble shall carry out the prospecting operations in accordance with the scheme of prospecting submitted under Rule 8 or with such modifications, if any, as intimated under Rule 9 or as directed by the State Government or any person authorised by that Government in this behalf.

(2) Every holder of a prospecting licence may win and carry two hundred tonnes of marble during the period of prospecting licence, after paying due royalty, under the law for the time being in force, for the purposes of tests and determining its commercial viability.

(3) Every holder of a prospecting licence shall have priority to claim a mining lease over an area prospected by him, in case he applies for a mining lease atleast thirty days before the expiry of the prospecting licence.

RULE 11 REPORT OF PROSPECTING OPERATIONS

—Every holder of a prospecting licence for marble shall submit to the State Government or any person authorised in this behalf by that Government an annual report in Form-A so as to reach it or him, as the case may be, by 30th April for the previous year :

RULE 12 MINING PLAN AS A PRE-REQUISITE TO THE GRANT OF LEASE

(1) No lease shall be granted by the State Government unless there is a mining plan duly approved by the State Government or any person authorised in this behalf by that Government for the development of marble deposit in the area concerned.

(2) (a) For the renewal of any lease over an area exceeding one hectare the State Government shall require the lessee to submit a mining plan duly approved by the State Government or any person authorised in this behalf by that Government for the development of marble deposit in the area concerned.

(b) For the purpose of renewal of a mining lease up to an area of one hectare, the State Government shall specify a simplified scheme of mining to be submitted by the lessee for approval by the State Government or any other person authorised in this behalf.

RULE 13 MINING PLAN TO BE PREPARED BY A RECOGNISED PERSON

(1) No mining plan shall be approved unless it is prepared by a qualified person recognised in this behalf by the State Government or any person authorised by that Government or by a recognised person under Rule 22-B of the Mineral Concession Rules, 1960.

(2) No person shall be granted recognition for the purposes of sub-rule 1) by the State Government or any person authorised by that Government unless he holds—

(i) a degree in mining engineering or a post-graduate degree in geology granted by a University established or incorporated by or under an Act of Parliament or any institution recognised by the University Grants Commission established under Sec. 4 of the University Grants Commission Act, 1956 (3 of 1956) or any qualification equivalent thereto; and

(ii) professional experience of five years of working in a supervisory capacity in the fiel of mining or mineral administration after obtaining a degree or qualification require under clause (i).

RULE 14 GRANT OF RECOGNITION BY STATE GOVERNMENT

(1) Any person possessing the qualifications and experience required under sub-rule (2) of Rule 13 may apply for recognition to thcompetent authority designated by the State Government for this purpose.

(2) The competent authority after making such enquiry as it deems fit, may grant or refuse to grant recognition and where recognition is refused, the competent authority shall record reason in writing and communicate the same to the applicant.

(3) A recognition shall be granted for an initial period of ten years and may be renewed for further periods not exceeding ten years at a time:

Provided that the competent authority may refuse to renew recognition for reasons to be recorded in writing after giving an opportunity of hearing to the person concerned.

RULE 15 APPROVAL AND SUBMISSION OF MINING PLAN

—On receipt of the application for granto of mining lease for undertaking mining operations for marble, the State Government shall take decision to grant precise area for the said purpose and communicate such decision to the applicant and on receipt of the communication from the State Government of the precise area to be granted, the applicant shall submit a mining plan within a period of three months from the date on which such communication is received or such other period as may be allowed by the State Government for approval and the said mining plan shall incorporate—

(i) the plan of the precise area showing the nature and extent of the marble deposit, spot or spots where the excavation is to be done in the first year and its extent, a detailed cross-section and detailed plan of spots of excavation based on the prospecting data gathered by the applicant and a tentative scheme of mining for the first five years of the lease;

(ii) details of the geology and lithology of the precise area including marble reserves of the area;

(iii) the extent of manual mining or mining by the use of machinery and mechanical devices on the precise area;

(iv) the plan of the precise area showing natural water courses, limits of reserved and other forest areas and density of trees, if any, assessment of impact of mining activity on forest, land surface and environment including air and water pollution, details ol scheme for restoration of the area by afforestation, land reclamation, use of pollution control devices and of such other measures as may be directed by the Central or the State Government from time to time;

(v) annual programme and plan for excavation on the precise area from year to year for five years; and

(vi) any other matter which the State Government or any person so authorised may require the applicant to provide in the mining plan.

RULE 16 MINING PLAN AS A PRE-REQUISITE TO THE COMMENCEMENT OF MINING OPERATIONS.

(1) No person shall commence mining operations for marble in any area except in accordance with a mining plan approved under these rules.

(2) The State Government or any person authorised in this behalf by that Government may require the holder of a lease to make such modifications in the mining plan referred to in sub-rule (1) or impose such conditions as it considers necessary by an order in writing if such modifications or imposition of conditions are considered necessary in the light of the experience of operation of mining plan or in view of the change in the technological development.

(3) A holder of a lease, desirous of seeking modifications in the approved mining plan as are considered expedient, in the interest of safe and scientific mining, conservation of marble, or for the protection of environment, shall apply to the State Government or any person authorised in this behalf by that Government setting forth the intended modifications and explaining the reasons for the same.

(4) The State Government or any person authorised in this behalf by that Government may approve the modifications under sub-rule (3) or approve with such alterations as it may consider expedient.

RULE 17 MINING PLAN TO BE SUBMITTED BY THE EXISTING LESSEE.

— (1)  (a) Where mining operations for marble covering leasehold areas exceeding one hectare have been undertaken before the commencement of these rules without an approved mining plan, the holder of such lease shall submit a mining plan within a period of one year from the date of commencement of these rules, to the State Government or any person authorised in this behalf by that Government for its approval.

(b) In case of existing mining leases upto one hectare, the State Government shall specify a simplified scheme of mining and every lessee shall submit such scheme of mining within a period of one year from the date of commencement of these rules to the State Government or any person authorised in this behalf by that Government for its approval.

(2) If a holder of a lease has not been able to submit the mining plan or scheme of mining within the time specified in sub-rule (1) for reasons beyond his control, he may apply for extension of time giving reasons to the State Government or any person authorised in this behalf by that Government.

(3) The State Government or any person authorised in this behalf by that Government on receiving an application made under sub-rule (2) may, on being satisfied, extend the period for submission of the mining plan or scheme of mining for a period which may not exceed one year.

(4) The State Government or any person authorised in this behalf by that Government may approve the mining plan or scheme of mining submitted by the lessee under sub-rule (1), or may require modifications to be carried out in the mining plan or scheme of mining and the lessee shall carry out such modifications and resubmit the modified mining plan or scheme of mining for approval of the State Government or the person so authorised, as the case may be.

(5) The State Government or any person authorised in this behalf by that Government shall, within a period of ninety days from the date of receipt of the mining plan or scheme of mining or the modified plan or scheme of mining, convey its or his approval or disapproval to the applicant and in case of disapproval, it or he shall also convey the reasons for disapproving the said mining plan or scheme of mining or the modified mining plan or scheme of mining.

(6) If no decision is conveyed within the period stipulated under sub-rule (5), the mining plan or scheme of mining or the modified mining plan or scheme of mining, as the case may be, shall be deemed to have been provisionally approved and such approval shall be subject to the final decision whenever communicated.

(7) The mining plan or scheme of mining submitted under sub-rule (1) shall be prepared by a recognised person.

RULE 18 REVIEW OF MINING PLAN

— (1) Every mining plan duly approved under these rules shall be valid for the entire duration of the lease.

(2) The owner, agent, mining engineer or manager of every mine or quarry shall review the mining plan as referred to in sub-rule (1) and submit a scheme of mining for the next five years of the lease to the State Government or any person authorised in this behalf by that Government for approval.

(3) The scheme of mining shall be submitted to the State Government or any person authorised in this behalf by that Government at least one hundred twenty days before the expiry of the five years' period, for which it was approved on the last occasion.

(4) The State Government or any person authorised in this behalf by that Government shall convey its or his approval or refusal to the scheme of mining within ninety days of the date of its receipt.

(5) If approval or refusal of the scheme of mining is not conveyed to the holder of the lease within the stipulated period, the scheme of mining shall be deemed to have been provisionally approved and such approval shall be subject to final decision whenever communicated.

(6) The provisions of Rule 13 shall apply to the scheme of mining in the same way as they are applicable to the mining plan.

(7) Every scheme of mining submitted under sub-rule (2) shall be prepared by a recognised person or a person employed under sub-rule (1) of Rule 34.

RULE 21 SYSTEM OF WORKING

—(1) System of working in marble quarries shall be performed by formation of benches. (2) Such benches in marble and overburden including weathered marble shall be formed separately and the benches in overburden or weathered marble shall be kept sufficiently in advance so that their working does not interfere with the working of marble.

(3) In order to ensure optimum production with minimum waste generation, every lease holder shall endeavour to deploy machinery and equipment as indicated below :—

(a) For small quarry or mine (having area upto one hectare);

(viii) Hydraulic jacks     as needed

(c) For large quarry or mine (having area more than three hectares); 

(ii) Mobile cranes (15 to 20 tonnes)      as needed (iii) Derrick crane (20 to 40 tonnes) or Loader as needed (iv) Excavator (0.9 cu.m. to 1.1. cu.m.)           as needed

(v) Tippers or Loaders  two for each excavator (vi) Wagon drills (vii) Slot liners (viii) Line drilling machines (ix) Diamond wire saws         as needed (x) Chain saws or diamond belt saws (xi) Hydraulic jacks (4) The State Government may, from time to time, notify scale of deployment of machinery indicated in clauses (a), (b) and (c) of sub-rule (3).

RULE 22. SEPARATE STACKING OF NON-SALEABLE MARBLE

(1) The non-saleable marble rejects at quarry or mine bottom shall regularly be collected and transported to the surface and the quarry or mine floor kept reasonably clear of debris.

(2) Small marble blocks from such non-saleable marble suitable for possible use in manufacture of bricks as well as flooring or wall tiles by small scale industries sector shall not be used as ballast, road metal or stone aggregate and such material shall be segregated from the dumps of marble rejects and stored separately for future use as far as possible, whenever such dumps are worked for recovery of stone aggregate or used as quarry or mine backfill.

(3) The ground selected for dumping of top soil, overburden, waste material or non-saleable marble shall be away from working quarry or mine.

(4) Before starting mining or quarrying operations, conceptual ultimate limits of the quarry or mine shall be determined and dumping ground shall be so selected that dumping is not carried out within the limits of the ultimate size of the quarry or mine except where simultaneous back filling is proposed.

RULE 23. COPIES OF PLANS AND SECTIONS TO BE SUBMITTED

—The owner, agent, mining engineer or manager of every marble quarry and mine shall submit to the State Government or any person authorised in this behalf by that Government, a copy of the plans and sections maintained under these rules, as and when required by that Government or such person, as the case may be.

RULE 24. PREPARATION OF PLANS

(1) All plans, sections and tracings or copies thereof kept at the marble quarry or mine shall be serially numbered or suitably indexed.

(2) Every plan, section or part thereof prepared under these rules shall carry thereon a certificate for its correctness and shall be signed by the mining engineer with date.

(3) Every copy of a plan and section or part thereof submitted or maintained under these rules shall bear a reference to the original plan or section from which it was copied and shall be certified thereon by the owner, agent, mining engineer or manager to be a true copy of the original plan or section.

RULE 25. PROTECTION OF ENVIRONMENT

—Every holder of a prospecting licence or a lease shall take all possible precautions for the protection of environment and control of pollution while conducting prospecting, mining or processing of marble in the area for which such licence or lease is granted.

RULE 26. REMOVAL AND UTILISATION OF TOP SOIL

(1) Where top soil exists and is to be excavated for prospecting or mining operations for marble, it shall be removed separately.

(2) The top soil so removed shall be utilised for restoration and rehabilitation of the land which is no longer required for prospecting or mining operations or for stabilizing or landscaping the external dumps.

(3) Where top soil cannot be used concurrently, it shall be stored separately for future use.

RULE 27. STORAGE OF OVERBURDEN WASTE ROCK, ETC

(1) The overburden, waste rock and nonsaleable marble generated during prospecting or mining operations for marble shall be stored separately in properly formed dumps on grounds earmarked.

(2) Such dumps shall be properly secured to prevent the escape of material in harm' quantities which may cause degradation of the surrounding land or silting of water courses.

(3) Wherever possible, such waste rock or overburden or other rejects, shall be backfilled in the worked out marble quarry or mine, where marble has been recovered upto the optinmum depth, with a view to restore the land to its original use or desired alternate use, as far possible, and where the backfilling is not feasible, the waste dumps shall be suitably terraced a stabilised by planting vegetation or otherwise.

RULE 28. RECLAMATION AND REHABILITATION OF LANDS

—Every lease holder shall undertake ir phased manner restoration, reclamation and rehabilitation of lands affected by prospecting mining operations and shall complete this work before the conclusion of such operations and the abandonment of the marble quarry or mine.

RULE 29. PRECAUTION AGAINST AIR POLLUTION

—Air pollution due to dust, exhaust emissions fumes during prospecting, mining or processing operations for marble and related activities shall be controlled and kept within permissible limits specified under any environmental laws for the time being in force.

RULE 30. DISCHARGE OF EFFLUENTS

—Every holder of a prospecting licence or a lease shall take possible precautions to prevent or reduce to a minimum the discharge of toxic and objectionable liquid effluents from marble quarry or mine, workshop or processing plant, into surface or ground water bodies, and usable lands. These effluents shall conform to the standards laid down in this regard.

RULE 31. PRECAUTION AGAINST NOISE

—Noise arising out of prospecting, mining and processing operations for marble shall be abated or controlled by the holder of prospecting licence or a lease at the source so as to keep it within the permissible limit.

RULE 32. PERMISSIBLE LIMITS AND STANDARDS

—The standards and permissible limits of all pollutants, toxins and noise referred to in Rules 29, 30 and 31 shall be those notified by the concerned authorities under the provisions of the relevant statutes from time to time.

RULE 33. RESTORATION OF FLORA

—Every lease holder shall take immediate measures for planting in the area held under the lease or any other area selected by the State Government for this purpose, such number of trees sufficient to improve the environment and to minimise effects land degradation during the entire period of such lease. He shall look after such tree plantation during the subsistence of the lease.

RULE 34. EMPLOYMENT OF MINING ENGINEER

— (1) For the purpose of carrying out mining opertions in accordance with these rules, every holder of a marble quarry and mine lease shall employ,— 

(a) in the case of a machanised marble quarry or mine, a whole time mining engine possessing the following qualifications, namely:— (i) degree in mining engineering with minimum one year's experience of working mines including marble quarries or mines,or (ii) post graduate degree in geology with first class metalliferous mines manage certificate or post graduate degree in geology with minimum three years' experience of working in supervisory capacity in mines including marble quarries mines, or (iii) diploma in mining with first class metalliferous mines manager's certificate diploma in mining with three year's experience in supervisory capacity in mines including marble quarries or mines, or (iv) first class metalliferous mines manager's

certificate with minimum two years' experience of working in mines including marble quarries or mines after obtaining the certificate.

(b) in the case of a marble quarry or mine lease other than the machanised marble quarry or mine lease,— (i) a part time mining engineer possessing qualification as specified under clause (a) above; or (ii) a part time mining engineer, possessing a post graduate degree in geology or second class metalliferous mines manager's certificate, or (iii) a whole time mining engineer possessing secondary school leaving certificate and mine foreman certificate with minimum five years' experience of working as mines foreman or mate in mines including marble quarries or mines. Explanation.—For the purpose of this sub-rule, mechanized marble quarry or mine means a marble quarry or mine where machine capable of deep drilling is deployed or heavy machinery

for excavation, handling or lifting or transporting of overburden and marble blocks is deployed.

(2) A part time mining engineer possessing qualifications specified in sub-clause (i) of clause (a) of sub-rule (1) may be employed to supervise upto a maximum of six marble quarries or mines in case where all such marble quarries or mines are located within a radius of twenty kilometers: 

Provided that a person possessing the qualifications other than those specified in sub-clause (i) of clause (a) of sub-rule (1) may be employed as part time mining engineer in quarries or mines upto a maximum of three

marble quarries or mines in case where such quarries or mines are located within a radius of fifty kilometers.

RULE 35. DUTIES OF MINING ENGINEER

(1) It shall be the duty of the mining engineer to take all necessary steps to plan and conduct mining operations, so as to ensure conservation of marble, systematic development of the marble deposits and protection of environment in and around the marble quarry or mine lease area in accordance with these rules.

(2) He shall be responsible for the preparation and maintenance of plans, sections, reports and schemes in accordance with these rules.

(3) He shall carry out all such orders and directions as may be given in writing under these rules by the State Government or any person authorised in this behalf by that Government and shall forward a copy of each of such orders or directions to the holder of prospecting licence or, as the case may be, the marble quarry or mine lease.

RULE 36. SUPPLY OF MATERIALS, APPLIANCES AND FACILITIES

(1) The mining engineer shall ensure that there is sufficient provision of proper materials, appliances and facilities at all times at marble quarry or mine for the purpose of carrying out the provisions of these rules and orders issued thereunder and where he is not the owner or agent of the marble quarry or mine, he shall make requisition in-writing to the owner or agent for anything required for the aforesaid purpose. A copy of every such requisition shall be recorded in bound paged book kept for the purpose.

(2) On receipt of a requisition under sub-rule (1), the owner or agent shall provide as soon as possible the materials and facilities requisitioned by the mining engineer.

RULE 37. HALF YEARLY AND ANNUAL RETURNS

(1) The owner, agent, mining engineer or manager of every marble quarry or mine shall submit to the State Government or any person authorised in this behalf by that Government returns in respect of such marble quarry or mine within the time specified in respect of such returns, namely:— (a) a half yearly return in Form-B for every half year ending 30 September and 31st March before the 15 of the following month for the preceding half yearly period; (b) an annual return in Form-C which shall be submitted before the 1st July of each year for the preceding year: Provided that in case of abandonment or surrender of a marble quarry or mine, such annual return shall be submitted within ninety days of the date of abandonment or surrender.

(2) The State Government or any person authorised in this behalf by that Government shall forward a copy, each of the half yearly return in Form-B and annual return in Form-C received under sub-rule (1), to the Controller General of Indian Bureau of Mines within thirty days from the date of such receipt.

RULE 38. TRANSFER OF RECORDS OF TRANSFEREES

—When the ownership of a prospecting licence or a marble quarry or mine lease is transferred, the previous owner or his agent shall make over the new owner or his agent within a period of seven days of the transfer of the ownership borehole cores preserved if any, all plans, sections, reports, registers and other records maintained in pursuance of the Act, rules or orders made thereunder, and all correspondence relevant thereto relating to the prospecting licence or marble quarry or mine lease; and when the requirements of these rules have been duly complied with, both previous and the new owners or their respective agents shall forthwith send to the State Government or any person authorised in this behalf by that Government a detailed list of borehole cores, plans, sections, reports, registers and other records that have been transferred.

RULE 39. COPIES OF NOTICES AND RETURNS TO BE MAINTAINED

—The owner, agent, mining engineer or manager of every marble quarry or mine or a holder of a prospecting licence shall maintain the labour attendance register, production and despatch register, explosives consumption registers test reports and details of mining machinery and copies of all notices and returns, plans, sections and schemes submitted to the State Government or any person authorised in this behalf by the Government under these rules, at an office established by the licensee or lessee and these shall be made available at all reasonable times to the State Government or any person authorised in this behalf by that Government for inspection.

RULE 40. REVISION

(1) Any person aggrieved by any order made or direction issued by any person authorised by the State Government to make or issue such order or direction under these rules may within ninety days of the communication of such order apply to the State Government for revision of the said order : Provided that any such application may be entertained after the said period of ninety days if the applicant satisfies the State Government that he had sufficient cause for not making the application within time.

(2) Every order, against which a revision application is preferred under sub-rule (1), shall be complied with pending the decision of the State Government in such revision: Provided that the State Government may on an application by the applicant, suspend the operation of the order appealed against pending disposal of the revision application.

(3) On receipt of an application for revision under sub-rule (1), the State Government after giving a reasonable opportunity of being heard to the aggrieved person, may confirm, modify or set-aside the order or direction.

(4) Every application submitted under the provisions of this rule shall be accompanied by a Treasury Receipt showing that a fee of five hundred rupees has been paid into a State Government Treasury or any branch of the State Bank of India doing Treasury Business to the credit of the State Government.

RULE 41. PENALTY

—Whoever contravenes any of the provisions of these rules shall be punishable with imprisonment for a term which may extend to one year, or with fine which may extend to five thousand rupees or with both and in the case of continuing contravention with an additional, fine which may extend to five hundred rupees for every day during which such contravention continues after conviction for the first such contravention.

RULE 42. FACILITIES FOR UNDERTAKING RESEARCH OR TRAINING

—Every holder of a prospecting licence or a lease shall afford all reasonable facilities to persons authorised by the Central Government or the State Government for the purpose of undertaking research or training in matters relating to mining or geology

RULE 43. TERRITORIAL JURISDICTION

—The territorial jurisdiction of a person authorised by the Central Government or the State Government for the purpose of these rules shall be as notified by the Central Government or the State Government, as the case may be, in the Official Gazette from time to time

RULE 44. OBLIGATION TO SUPPLY OTHER INFORMATION

—The owner, agent, mining engineer, geologist or manager of every marble quarry or mine shall furnish such information regarding such quarry or mine or any matter connected therewith as the Central Government or the State Government or any person authorised in this behalf by the Central Government or the State Government, as the case may be, may require by an order in writing and the information shall be furnished within such time as may be specified in the aforesaid order

RULE 45. PROVISIONS OF THESE RULES TO BE APPLICABLE TO GOVERNMENT

—The Government or its agencies carrying out mining operations without a lease shall be bound by all the provisions of these rules in the same manner as they are applicable to holders of marble quarry or mine leases

RULE 46. APPLICABILITY OF THE PROVISIONS OF MINOR MINERAL CONCESSION RULES FRAMED BY THE STATE GOVERNMENT

—The provisions of the Minor Mineral Concession Rules or any other rules framed by the State Government under Sec 15 of the Act shall be applicable to marble quarry or mine leases to the extent they are not repugnant to or inconsistent with these rules

RULE 47. DELEGATION OF POWERS

—The State Government may, by notification in the Official Gazette, direct that any power exercisable by it under these rules may, in relation to such matters and subject to such conditions, if any, as may be specified in the notification be exercisable also by such officer or authority subordinate to the State Government.