Rule 45 of Mineral Conservation and Development Rules 1988 Amended to Check Illegal Mining
In order to strengthen the monitoring mechanism for end-to-end accounting of minerals produced, traded or exported or finally consumed in the country, the Ministry of Mines has after in-depth consultation with State Governments and Central Ministries, amended Rule 45 of Mineral Conservation and Development Rules, 1988.
Some of the important features of amended Rule 45 of MCDR are:
(i) Compulsory registration of miners, traders, stockists, consumers and exporters of minerals,
(ii) Compulsory filing of monthly returns and annual returns inter-alia requiring mines to give details on production of minerals, sale of minerals, consumption of minerals, and in case of traders, stockist, exporter of mineral the source of minerals, sale/export of minerals or end-use of minerals,
(iii) Failure to file returns would lead to, in case of mining leases, suspension of mining licence, and in case of traders, stockist, exporter, the licences granted by the State Government.
The amended Rule 45 is available on the website of Ministry of Mines (http://mines.gov.in).
The amended Rule 45 is likely to strengthen State Governments to closely monitor the mineral production and track its movement till end-use or export particularly in the context of inter-State movement and trade. Rule 45 with close monitoring by State Governments is likely to substantially improve the revenue realization through royalty collections, and reduce the scope for illegal mining.
During the last few years, the Government had been receiving reports from various States on illegal mining of iron ore and manganese ore in contravention of the provisions of the Mines and Minerals (Development and Regulation) Act 1957, Forest (Conservation) Act 1980, the Environment (Protection) Act 1986, and other applicable laws including Central and State Acts and Rules and guidelines thereunder. The Central Government has noticed that the major reason for increase in illegal mining could be attributed to poor regulation of the mining sector at field level; and has taken a number of steps in collaboration or consultation with State Governments to improve the standard of mineral administration including proper accounting of produced ore from pithead to plant or port.
In order to strengthen the monitoring mechanism for end-to-end accounting of minerals produced, traded or exported or finally consumed in the country, the Ministry of Mines has after in-depth consultation with State Governments and Central Ministries, amended Rule 45 of Mineral Conservation and Development Rules, 1988.
Some of the important features of amended Rule 45 of MCDR are:
(i) Compulsory registration of miners, traders, stockists, consumers and exporters of minerals,
(ii) Compulsory filing of monthly returns and annual returns inter-alia requiring mines to give details on production of minerals, sale of minerals, consumption of minerals, and in case of traders, stockist, exporter of mineral the source of minerals, sale/export of minerals or end-use of minerals,
(iii) Failure to file returns would lead to, in case of mining leases, suspension of mining licence, and in case of traders, stockist, exporter, the licences granted by the State Government.
The amended Rule 45 is available on the website of Ministry of Mines (http://mines.gov.in).
The amended Rule 45 is likely to strengthen State Governments to closely monitor the mineral production and track its movement till end-use or export particularly in the context of inter-State movement and trade. Rule 45 with close monitoring by State Governments is likely to substantially improve the revenue realization through royalty collections, and reduce the scope for illegal mining.
During the last few years, the Government had been receiving reports from various States on illegal mining of iron ore and manganese ore in contravention of the provisions of the Mines and Minerals (Development and Regulation) Act 1957, Forest (Conservation) Act 1980, the Environment (Protection) Act 1986, and other applicable laws including Central and State Acts and Rules and guidelines thereunder. The Central Government has noticed that the major reason for increase in illegal mining could be attributed to poor regulation of the mining sector at field level; and has taken a number of steps in collaboration or consultation with State Governments to improve the standard of mineral administration including proper accounting of produced ore from pithead to plant or port.
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