Category: Act/Rule/Notifications

The National Planning Commission constituted a High Level Committee to submit report on National Mineral Policy.  Page No.  168 to 182 speaks about Beach Minerals.

The original report can be download from http://planningcommission.gov.in/reports/genrep/rep_nmp.pdf

 

National Mineral Policy Report of High Level Committee.

Key proposals of the National Mineral Policy 2019

 Proposes to increase the production of major minerals by 200 per cent in seven years, and reduce trade deficit in
mineral sector by 50 per cent in seven years.

 Aims to attract private investment through incentives like financial package, right of first refusal at the time of
auction etc. or any other appropriate incentive according to international practices.

 Introduces the concept of Exclusive Mining Zones which will come with in-principle statutory clearances for
grant of mining lease.

 Emaphasises on simplifying the clearance process and making it time-bound for mineral development and commencement of mining operations.

 Proposes to identify critically fragile ecosystems and declare such areas as “no-go areas”/ “inviolate areas”.

 Encourages merger and acquisition of mining entities, and transfer of mining leases that have been granted in a
transparent manner to ensure seamless supply of ores and scaling up of business.

 Focuses on a long term export-import policy for the mineral sector to provide stability for investing in large
scale commercial mining activity.

 Proposes harmonising royalty and all other levies and taxes with mining jurisdiction across the world.

 Emphasises on ensuring welfare of mining-affected people / communities and ensuring rehabilitation and resettlement, by suitable implementation of all relevant Acts / Rules.

 Introduces the concept of Inter-Generational Equity in mineral resource exploitation.

Proposes development of an over-arching inter-ministerial body, under the aegis of the Ministry of Mines, to institutionalise mechanisms of sustainable mining. The body will also advise the Government on rates of royalty, dead rent etc

 

NMP 12-03-2019

According to the MMDR Act, Section 9, all the major mineral mining lessee has to remit the royalty as per the 2nd Schedule of the MMDR Act. The second schedule will be revised once in 3 years.  Recently, Govt., of India revised the 2nd Schedule of the Act. 

As per the present revision, the royalty for beach minerals. According to the present revision the rate of royalty for the Beach Minerals are given below.

 

1) Garnet – 4 % of average Sale price on advalreum basis.

2) Ilmenite, Rutile, Zircon, Leucoxene –  2% of average Sale price on advalreum basis.

3) Silimanite – 2.5% of average Sale price on advalreum basis.

4) Monazite – Rs. 125 per M.Ton

 

Note : In addition to this, 10% of export duty on FOB Price will also applicable for export of Ilmenite, Rutile etc.,

 

Notification on Rates of Royalty on Minerals and Dead Rent (1 September, 2014)