KOLKATA (miningweekly.com) – The Indian government has set a deadline of April 1 next year for the completion of general exploration by 288 merchant mining leases that are slated to expire on March 31, 2020.
In a statement, the Mines Ministry said that the auction process for these leases has to be initiated well in advance of the 2020 expiry date to ensure a seamless transition.
“The rules mandate that exploration up to G2 level be carried out in the mining leases expiring, and the rule also lays down the timelines of the exploration plant prepared with approval of Indian Bureau of Mines,” the Ministry statement said.
As reported by Mining Weekly Online earlier this month, with barely 24 months left before the expiry of leases for 348 non-captive mineral mines, just two Indian states have been able to submit reports to establish a semblance of readiness to conduct fresh auctions and continuation of operations of these mines without disruptions.
Hence, the latest deadline set for existing mining lease holders to complete fresh exploration within their lease hold areas is a push by the federal government to local authorities, as well as existing lease holders to expedite the process towards timely fresh auction.
The Mines, Minerals Development Amendment Act 2015 has made auction mandatory for allocation of mining leases. However, for those allocated mining leases prior to the date of promulgation of the Act, lease holders have been permitted operation of the mines until March 30, 2020 following which leaseholds of these 348 mines will have to be put up for fresh auctions.
Officials say that with the deadline for exploration now set for April 2019, the government is aiming to start a fresh round in the auction process for the expiring mining leases by July 2019.