Representation send to Ministry of Mines in response to their reply to PMO Reference

Dear Sir,

The Ministry of Mines, Section officer Mr. Sandeep Kumar has mentioned that, the said notification was issued based on the recommendation of the Department of Atomic Energy (DAE). The Department of Atomic Energy already constituted a committee very early and found out that even in separation of Individual minerals also, the monazite percentage will be more than 0.1%. That is why DAE prescribed the limit for export as 0.25%.
After the said notification, our nation’s mineral production is completely affected, out total 325 Major mineral mining leases more than 70 leases were terminated. More than 50,000 employees lose their jobs.  Since beach minerals are replenishable in nature, since we failed to collect the same, they were transported to the nearby country Srilanka and after this notification, they have re-started the production of Ilmenite and sell it to its origin nation of India. Thus India is buying its own mineral from the nearby countries because of this notification. So Ministry of Mines Notification GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 affects very much of our nation’s economic development.
Moreover all the sea ports and Airports are equipped with gadgets to find out the radioactive material’s transportation and connected with more than 900 police stations.
Hence there is no necessity to notify the said amendments.  In case, such a proposal is submitted, it is the duty of the Ministry of Mines to publish the same inviting suggestions / objections for the same. That is also not followed.
Though we have more than 25% of Total world reserve, because of this notification, our Indian Industries are importing these mineral, thereby we loose our valuable foreign exchange. This is completely against the aim of our Honourable Prime Minister “MAKE IN INDIA” Scheme.
Due to covid-19, our nation’s economy is very much affected and peoples also affected. It is not possible to create 50,000 new employments for the people who lose their jobs.
Hence our humble request is the Honourable Prime Minister / Honourable Mines Minister / Honourable Minister for Atomic Energy may kindly be advise to the officials to convene a meeting either in Ministry of Mines, Shastri Bhawan or at Department of Atomic Energy, Anusakthi Bhawan, Mumbai comprising of DAE officials, Ministry of Mines officials and Beach Mineral mining lessees and our association representatives. We will explain the impact how our Indian Industry is affected for want of raw material, such as Ilmenite, Rutile, Zircon etc.,
Yours faithfully,
C.Sakthi Ganapathi
Secretary.
*******************
——— Forwarded message ———
From: <cpgrams-darpg@nic.in>
Date: Thu, Jul 22, 2021 at 11:01 AM
Subject: Grievance Disposal
To: <president@beachminerals.org>

Dear Sir/Madam,
Your Grievance with Registration No.PMOPG/E/2021/0425083 has been disposed.
Logon to: https://pgportal.gov.in/Status/ViewStatusClickLink/893C12AF63609399439EB5AE42EF8DCF4A87DDD7CE270FC2A8A2B78207911687B77D9B8DDFD71A5C94705B970B137BA4578FF1EC9012279FE5636CE85D55F62AUE1PUEcvRS8yMDIxLzA0MjUwODM= for viewing details and providing your feedback on the resolution of the grievance.

 

MINISTRY OF MINES NOTIFICATION GSR 126(E) DT. 19.02.2019 AND  GSR 134(E) DT. 20.02.1019 are against the National Mineral Policy notified by Government

As per the above notifications, the private mining lessees for beach sand minerals will have to relinquish their rightful mining leases. No fresh mining lease could be granted for beach sand minerals, for any private players. The Vision of the National Mineral Policy (NMP), 2019, is while the Government Agencies will continue to perform the tasks assigned to them, for Survey and Exploration, whereas the Private Sector would be encouraged to take up Exploration activities. The aim is to promote Domestic industry, to reduce Import Dependency and to feed into Make in India initiative. Moreover the MoM Notifications GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 are totally deviating, contrary and conflict, to the  Vision of NMP 2019.

 

National Mineral Policy, 2019, insists that the regulatory environment is conducive, to ease of doing business with simpler, transparent and time-bound procedures, for obtaining clearances. Since mining contributes significantly to state revenues, there is a need for an efficient regulatory mechanism with high penetration of e-governance systems. Mining contributes significantly to employment generation, thus, there shall be a keen focus on gender sensitivity in the mining sector at all levels. But the above notification is completely against the National Mineral Policy, 2019, notified by the MoM, Government of India.

 

There is a rumor that, the above said notifications are issued in order to take action against, Illegal Mining complaints against Private Mining Lessees. It is pertinent to point out here that, there are several procedures to penalise and punish the illegal miners, in accordance with the law and in case, if the lessee is punished, then automatically the leases will get terminated. Whereas in this case, only based on the complaints, these Notifications were issued. This is absolutely against the National Interest.

 

Due to business rivalry, the complaints were framed by a section of people, allegation against all other Private Beach Mineral mining lessees. In several occasions, the State and Central Govt. Authorities carried out Inspections, along with Executive Magistrates and submitted Inspection Reports that, the alleged complaints are false and baseless.  Such Inspection Reports are readily available in Ministry of Mines file number 16/90/2007-M.VI (Part-IV) and 16/13/2013-M.VI. The Tamil Nadu State Govt. vide their letter No. 7810/MMD2/2011-1 dated 23.07.2013, also sent the Detailed Report stating that, all the complaints are False and the allegations were made, only with Business Rivalry.

It is pertinent to point out here that, from the year 2013 onwards, the entire mining operations were stopped and the lessees are permitted only to process the existing mined minerals stocks. So, the present Notification is absolutely unwarranted and unjustified.

 

Our Country have significant Reserves of Ilmenite, Garnet and Monazite containing  Rare Earths (Table 1), but these Resources remain grossly under-utilized with the Production to Reserve Ratio (PRR) being a meager of 0.0018%, when  compared to Global PRR of 0.01%. India is stuck in this paradox and must leverage its plentiful Resources, to transform into a major Global Producer.

S.No. Mineral World Reserves

Million Tonnes**

Reserves in India

Million Tonnes*

Percentage share of Global Reserves
1 Ilmenite 1400 593 35
2 Garnet 420 168 40
3 Sillimanite NA 226 NA
4 Zircon 243 34 14
5 Rutile 310 31 10
6 Monazite 17 12 71

Table 1 – (*Indian figures are based on  AMD, Hyderabad Report. **World figures are based on USGS Report for the year 2013)

 

Beach Sand Minerals and their Derivatives find Diverse Applications, in day to day use as well as, Strategic and High-tech Applications. With proper Encouragement and Recognition from the Government for the BSM sector, this could be a Mega Opportunity, for a successful “Mine In India” and “Make In India” Programmes.

 

The BSM Sector was brought under the controlled regime, due to the presence of the mineral Monazite. It is pertinent to note that until 1998, this sector was restricted only to Public Sector Companies and it was observed, there was no Substantial Developments in the country.  Recognizing the untapped Potential of the Beach Sand Minerals sector, the Department of Atomic Energy (DAE) announced the Policy on Exploitation of Beach Sand Minerals in 1998 and opened up this sector to wholly Indian Owned Private Companies. This brought participation and Significant Investments in the Country by Private Sector Companies. Since the Entry of the Private Sector in the BSM Industry, the Production of Beach Sand Minerals has substantially increased and the Export Value has increased from Rs. 35 Crores in 1998 to over Rs 5000 Crores in 2016. The Private Sector Producers have spearheaded   not only Mineral Production, but also invested in the Value Chain.

 

The current Estimated Production and Demand figures for the Minerals and Value-Added Products of Ilmenite (Table 2) amplify the incongruity in Domestic Production, despite ample Resource Potential.

 

Mineral/ Product   Indian production (lakh tons)   Indian Demand (lakh tons)   World Production (lakh tons)   World Demand (lakh tons)   Average Growth Rate / Year India Scenario
Garnet 7 0.15 12 12.5 5-8% Exporter
Ilmenite 11 1 175 190 3-5% Exporter
Zircon 0.4 0.8 15.5 15.5 3-5% Importer
Rutile 0.25 0.45 9.75 9.75 5-8% Importer
TiO2 Pigment 0.50 2.20 72.0 70.0 3-5% Importer
Rare Earths Negligible RE products imported 1.7 1.6 5-10% Importer

Table 2  (* These figures are estimated based on the production figures available with the producers worldwide and port statistics on import and export of the minerals and their products when it was at the peak).

 

It is a pity to mention that the present “Make in India” Government is driving this BSM Sector, by Importing our requirements and  ignoring all the Financial, Technical and Managerial Resources, which are indigenously and cheaply available.

 

 

The fall out of the notifications will be as follows:

  1. Foreign Investors will loose their faith over our nation for investment, as these Notifications amounts to termination of existing Mining Leases also. So, they feel insecurity to invest in India.

 

  1. The Beach Sand Policy of 1998, invited Private Sectors to participate and make Investments in the mining, mineral separation and value addition to Ilmenite. Pursuant to this Policy, Private Miners made significant Investments, which amounts to acquire Mining licenses and set up Mineral Separation facilities (with huge investments). Private miners thus not only enhanced the growth of the mineral sands industry, by earning significant foreign exchange of more than Rs. 3,000 Crores per year through exports, but also provided direct and indirect employment for more than one lakh persons. Thus the participation of Private Miners in the BSM Industry, has created a significant impact in socio economic development of the regions, which were otherwise very backward.

 

  1. Private miners have also made significant investments in Value Addition of Ilmenite Mineral, for Production of Titanium-di-oxide by meeting part of the India’s Domestic need and reducing the Import burden.

 

  1. Before entry of the Private Players, these Garnet sand were dumped into the sea, as rejects by the Government Companies.

 

  1. It is pertinent to point out here that, before the entry of Private Players, our Country was far behind in achieving the Garnet Production and Export, among the world. After entry of Private Players, India became No.1 Producer and Exporter of Garnet. The achievement is well published in Roskil International magazine with graphical representation.

 

  1. Because of these Notifications, the 30 years earned World Market by Indian Producers, will be lost forever which could not be regained by Indian producers in future.

 

  1. Our Country will permanently loose the foreign exchange earnings, of more than Rupees 3,000 Crore per year.

 

  1. Indian Titanium producers will be bound to import the raw material from the overseas countries, when we are already blessed with abundant resources of 1/3rd of the total world reserve. (Please refer DAE, Joint Secretary Speech and High Level Committee report of Nidhi Aayog.)

 

  1. These minerals are Replenishable Beach Placer deposits. Unless it is not utilized within a stipulated time, it will become a National Waste and there is possibility for these minerals getting shifted to neighbor countries. These minerals get deposited by the action of wind, will be used for domestic purpose and once that is shifted to neighbor country, which is loss to our Nation and the State.

 

  1. Our Indian Private Mining Companies has made huge investments, to Upgrade Quality of Products, to meet the International standards, by which India has gained No.1 Position in the Global Garnet Market, continuously for the past 10 years. Now, these Notifications will reverse our Nation’s No.1 Position.

 

  1. The allegations and illegal mining complaints about BSM Industry were raised from the year 1997 onwards. Meanwhile all the complaints were proved as False and Baseless, by the State Government Officials, the Central Government officials, the Joint Inspection team and the Honourable High court and as well as the Government Authorities. Now only one PIL is pending with the Honourable High Court of Madras for long time, since the petitioners could not be able to produce,  valid documentary evidence to support for illegal mining. As such there was no illegal mining happened, the case is pending before the Court. For example :  One of our association member M/s. V.V. Mineral has paid royalty for 98 Lakhs of M.Tons and transported the same with valid transport permit, where as they have exported only about 52 Lakhs of M.Tons of heavy minerals.  How this can be proved that illegal mining was happened??  In case the illegal mining is proved and then the concerned Private mining company is ready to, get penalised under section 21 of MMDR Act.

 

  1. Already a request was made to the Department of Atomic Energy, to facilitate posting of their officials, in all the Sea Ports, for carrying out Inspection & Cross Examination, for Radioactive materials if any, in the Beach Sand Minerals prior to Export. The DAE Minutes held on 15.07.2013 will establish the same.

 

  1. All sea ports and airports were well equipped with latest Gadgets and equipments to monitor the movement of Radioactive Material  and the equipments are inter-linked with sufficient number of Police Stations. Hence, it is not at all possible for export of any Radioactive Material. The reply to Parliament (Lok shaba) question No. 896 dated 20.12.2017 will establish the same.

 

  1. The set up already made by Private Miners, towards Value addition of the mineral Ilmenite has to be either closed down or import Ilmenite at higher cost. Perhaps, this will make their product uncompetitive compared to the titanium dioxide product imported from China.

 

  1. Beach Sand Mineral mining is Eco-friendly mining. It provides, huge number of employment, for both uneducated people and as well as educated people. In the beach mineral industries of Tamil Nadu, more than one lakh people get employment, through our association members. Being this area located in rain shadow area, agriculture activity or any other Industry were not developed. Whereas, the BSM Industries help these area people to live their life happily. Now, they are lost their jobs and starving for their day to day activities. In fact this has affected the education of many children and children have lost their education, due to the parents who lost their job from these Beach Sand Mineral Industry.

 

  1. We are proud to express that one of our Indian Private Beach Sand Mineral Producer have achieved, to make our India to reach No. 1 position in Producer and Exporter of Garnet Mineral and as well as to reach No. 2 position in Producer and Exporter of Ilmenite, in the world. However, by these Notifications, our country will loose the above credit.

 

  1. The main moto of National Mineral Policy and MMDR Act, for Exploration of Minerals by Government Agencies with the aid of NMET and subsequent Exploitation of Minerals by Private Sectors. But the latest MoM Notifications, totally deviating form the Policy and not having any relation or reference to the Policy. It will also have remarkable impact on Investments made by existing Private Mining Companies, Marketing network that developed in the past 3 decades, Millions of Foreign Exchange Revenue to our Nation, Employment Opportunities to thousand of people. Moreover, this will ease the Foreign Companies to utilize this golden opportunity, against the Indian Private Mining companies in the International Market. Thus our Indian Companies reputation will get spoiled in the International Market, which can not be regained, in the next 40 years.

 

  1. The aim of the National Mineral Policy, 2019 is to “Encourage Extraction of the Replenishable Deposits of Beach Sand Minerals for improved economic growth”. Whereas, these Notifications are irrelevant and extraneous to the National Mineral Policy, 2019.

 

  1. The efficient and trained manpower in the BSM industry will become obsolete. Perhaps, their expertise and experience will not have any value in the new filed.

 

  1. These Beach Sand Minerals and their derivative products, which have major Applications in Manufacturing, Electronics, Medical, Clean Energy and Defense have significant Market Demand and Revenue Generation Potential in today’s Economic Scenario. This opportunity to beneficially use these Resources may be lost as technological innovations look for alternate and substitute materials which will render these Mineral Resources of no value in the long term. This will be a National Loss and Poor utilization of the Country’s Natural Resources.

 

  1. The Capital and Infrastructural facilities set up by these Private Mining Companies will also become infructuous and they are forced to end up in huge losses to an approximate value of more than 10,000 crores of rupees as the investments become useless, due to these Impugned

 

  1. The Final Products and also the Semi Processed Minerals, having worth of hundreds of crores of rupees, will become useless, resulting in huge financial losses to the Private Mining Companies .

 

This drastic action, will totally eliminate the Private Sector from Beach Sand Minerals Industry. This action is similar to cutting off the hand, in order to cure the wound in the finger.

 

Flouting of Procedures in the Mining Sector, is not a new thing our country and the issues need to be resolved, by stringent control and not by total eradication of Private Mining operation. It may be noted that similar flouting of rules, in the Iron Ore Mining Sector were resolved peacefully. Hence similar steps need to be taken in this BSM sector also and Private sectors may be allowed to participate in Mining and Mineral Separation of BSM, for development of the Nation.

 

It is pertinent to point out here that, all over the world, Monazite is easily available and there is no demand for that. Only difference is In India the Monazite is available in better quality. So the Govt. Company, itself stopped their Monazite production w.e.f. 2004. Reply of Parliament question 420 dated 26.11.2014 will establish the same. Moreover, all over the world, none of the country including India, use Thorium available in Monazite for any purpose as, it is not a fissile material. But research is going on in India to use it in 3rd Stage Nuclear Programme may be after 2050 only. Even now also, Monazite cannot not be exported as, it is in the negative list and storage of monazite tailings either by way of back filling or stored in separate trenches under the institutional control of Government, is managed by Atomic Energy Regulatory Board (AERB) in accordance with the law.

 

We have no objection to take stringent action against illegal miners in accordance with law. But completely stoppage of Private Beach Mineral Producers will amounts our nation will lose valuable Foreign Exchange, Trust Worthiness for Investment, Revenue to the State and Employment Opportunity. Above all this amounts to loss of the naturally deposited Mineral Wealth.

 

 

IMPACT OF THE MINISTRY OF MINES NOTIFICATION GSR 126(E) DT. 19.02.2019 AND  GSR 134(E) DT. 20.02.1019 BY REDUCING THE THRESHOLD VALUE (TLV) OF BEACH SAND MINERALS.

As per the above notifications, the private mining lessees for beach sand minerals will have to relinquish their rightful mining leases. No fresh mining lease could be granted for beach sand minerals, for any private players. The Vision of the National Mineral Policy (NMP), 2019, is while the Government Agencies will continue to perform the tasks assigned to them, for Survey and Exploration, whereas the Private Sector would be encouraged to take up Exploration activities. The aim is to promote Domestic industry, to reduce Import Dependency and to feed into Make in India initiative. Moreover the MoM Notifications GSR 126(E) DT. 19.02.2019 and GSR 134(E) DT. 20.02.1019 are totally deviating, contrary and conflict, to the  Vision of NMP 2019.

 

National Mineral Policy, 2019, insists that the regulatory environment is conducive, to ease of doing business with simpler, transparent and time-bound procedures, for obtaining clearances. Since mining contributes significantly to state revenues, there is a need for an efficient regulatory mechanism with high penetration of e-governance systems. Mining contributes significantly to employment generation, thus, there shall be a keen focus on gender sensitivity in the mining sector at all levels. But the above notification is completely against the National Mineral Policy, 2019, notified by the MoM, Government of India.

 

There is a rumor that, the above said notifications are issued in order to take action against, Illegal Mining complaints against Private Mining Lessees. It is pertinent to point out here that, there are several procedures to penalise and punish the illegal miners, in accordance with the law and in case, if the lessee is punished, then automatically the leases will get terminated. Whereas in this case, only based on the complaints, these Notifications were issued. This is absolutely against the National Interest.

 

Due to business rivalry, the complaints were framed by a section of people, allegation against all other Private Beach Mineral mining lessees. In several occasions, the State and Central Govt. Authorities carried out Inspections, along with Executive Magistrates and submitted Inspection Reports that, the alleged complaints are false and baseless.  Such Inspection Reports are readily available in Ministry of Mines file number 16/90/2007-M.VI (Part-IV) and 16/13/2013-M.VI. The Tamil Nadu State Govt. vide their letter No. 7810/MMD2/2011-1 dated 23.07.2013, also sent the Detailed Report stating that, all the complaints are False and the allegations were made, only with Business Rivalry.

It is pertinent to point out here that, from the year 2013 onwards, the entire mining operations were stopped and the lessees are permitted only to process the existing mined minerals stocks. So, the present Notification is absolutely unwarranted and unjustified.

 

Our Country have significant Reserves of Ilmenite, Garnet and Monazite containing  Rare Earths (Table 1), but these Resources remain grossly under-utilized with the Production to Reserve Ratio (PRR) being a meager of 0.0018%, when  compared to Global PRR of 0.01%. India is stuck in this paradox and must leverage its plentiful Resources, to transform into a major Global Producer.

S.No. Mineral World Reserves

Million Tonnes**

Reserves in India

Million Tonnes*

Percentage share of Global Reserves
1 Ilmenite 1400 593 35
2 Garnet 420 168 40
3 Sillimanite NA 226 NA
4 Zircon 243 34 14
5 Rutile 310 31 10
6 Monazite 17 12 71

Table 1 – (*Indian figures are based on  AMD, Hyderabad Report. **World figures are based on USGS Report for the year 2013)

 

Beach Sand Minerals and their Derivatives find Diverse Applications, in day to day use as well as, Strategic and High-tech Applications. With proper Encouragement and Recognition from the Government for the BSM sector, this could be a Mega Opportunity, for a successful “Mine In India” and “Make In India” Programmes.

 

The BSM Sector was brought under the controlled regime, due to the presence of the mineral Monazite. It is pertinent to note that until 1998, this sector was restricted only to Public Sector Companies and it was observed, there was no Substantial Developments in the country.  Recognizing the untapped Potential of the Beach Sand Minerals sector, the Department of Atomic Energy (DAE) announced the Policy on Exploitation of Beach Sand Minerals in 1998 and opened up this sector to wholly Indian Owned Private Companies. This brought participation and Significant Investments in the Country by Private Sector Companies. Since the Entry of the Private Sector in the BSM Industry, the Production of Beach Sand Minerals has substantially increased and the Export Value has increased from Rs. 35 Crores in 1998 to over Rs 5000 Crores in 2016. The Private Sector Producers have spearheaded   not only Mineral Production, but also invested in the Value Chain.

 

The current Estimated Production and Demand figures for the Minerals and Value-Added Products of Ilmenite (Table 2) amplify the incongruity in Domestic Production, despite ample Resource Potential.

 

Mineral/ Product   Indian production (lakh tons)   Indian Demand (lakh tons)   World Production (lakh tons)   World Demand (lakh tons)   Average Growth Rate / Year India Scenario
Garnet   7   0.15   12   12.5   5-8% Exporter
Ilmenite   11   1   175   190   3-5% Exporter
Zircon   0.4   0.8   15.5   15.5   3-5% Importer
Rutile   0.25   0.45   9.75   9.75   5-8% Importer
TiO2 Pigment   0.50   2.20   72.0   70.0   3-5% Importer
Rare Earths   Negligible   RE products imported   1.7   1.6   5-10% Importer

Table 2  (* These figures are estimated based on the production figures available with the producers worldwide and port statistics on import and export of the minerals and their products when it was at the peak).

 

It is a pity to mention that the present “Make in India” Government is driving this BSM Sector, by Importing our requirements and  ignoring all the Financial, Technical and Managerial Resources, which are indigenously and cheaply available.

 

 

The fall out of the notifications will be as follows:

  1. Foreign Investors will loose their faith over our nation for investment, as these Notifications amounts to termination of existing Mining Leases also. So, they feel insecurity to invest in India.

 

  1. The Beach Sand Policy of 1998, invited Private Sectors to participate and make Investments in the mining, mineral separation and value addition to Ilmenite. Pursuant to this Policy, Private Miners made significant Investments, which amounts to acquire Mining licenses and set up Mineral Separation facilities (with huge investments). Private miners thus not only enhanced the growth of the mineral sands industry, by earning significant foreign exchange of more than Rs. 3,000 Crores per year through exports, but also provided direct and indirect employment for more than one lakh persons. Thus the participation of Private Miners in the BSM Industry, has created a significant impact in socio economic development of the regions, which were otherwise very backward.

 

  1. Private miners have also made significant investments in Value Addition of Ilmenite Mineral, for Production of Titanium-di-oxide by meeting part of the India’s Domestic need and reducing the Import burden.

 

  1. Before entry of the Private Players, these Garnet sand were dumped into the sea, as rejects by the Government Companies.

 

  1. It is pertinent to point out here that, before the entry of Private Players, our Country was far behind in achieving the Garnet Production and Export, among the world. After entry of Private Players, India became No.1 Producer and Exporter of Garnet. The achievement is well published in Roskil International magazine with graphical representation.

 

  1. Because of these Notifications, the 30 years earned World Market by Indian Producers, will be lost forever which could not be regained by Indian producers in future.

 

  1. Our Country will permanently loose the foreign exchange earnings, of more than Rupees 3,000 Crore per year.

 

  1. Indian Titanium producers will be bound to import the raw material from the overseas countries, when we are already blessed with abundant resources of 1/3rd of the total world reserve. (Please refer DAE, Joint Secretary Speech and High Level Committee report of Nidhi Aayog.)

 

  1. These minerals are Replenishable Beach Placer deposits. Unless it is not utilized within a stipulated time, it will become a National Waste and there is possibility for these minerals getting shifted to neighbor countries. These minerals get deposited by the action of wind, will be used for domestic purpose and once that is shifted to neighbor country, which is loss to our Nation and the State.

 

  1. Our Indian Private Mining Companies has made huge investments, to Upgrade Quality of Products, to meet the International standards, by which India has gained No.1 Position in the Global Garnet Market, continuously for the past 10 years. Now, these Notifications will reverse our Nation’s No.1 Position.

 

  1. The allegations and illegal mining complaints about BSM Industry were raised from the year 1997 onwards. Meanwhile all the complaints were proved as False and Baseless, by the State Government Officials, the Central Government officials, the Joint Inspection team and the Honourable High court and as well as the Government Authorities. Now only one PIL is pending with the Honourable High Court of Madras for long time, since the petitioners could not be able to produce,  valid documentary evidence to support for illegal mining. As such there was no illegal mining happened, the case is pending before the Court. For example :  One of our association member M/s. V.V. Mineral has paid royalty for 98 Lakhs of M.Tons and transported the same with valid transport permit, where as they have exported only about 52 Lakhs of M.Tons of heavy minerals.  How this can be proved that illegal mining was happened??  In case the illegal mining is proved and then the concerned Private mining company is ready to, get penalised under section 21 of MMDR Act.

 

  1. Already a request was made to the Department of Atomic Energy, to facilitate posting of their officials, in all the Sea Ports, for carrying out Inspection & Cross Examination, for Radioactive materials if any, in the Beach Sand Minerals prior to Export. The DAE Minutes held on 15.07.2013 will establish the same.

 

  1. All sea ports and airports were well equipped with latest Gadgets and equipments to monitor the movement of Radioactive Material  and the equipments are inter-linked with sufficient number of Police Stations. Hence, it is not at all possible for export of any Radioactive Material. The reply to Parliament (Lok shaba) question No. 896 dated 20.12.2017 will establish the same.

 

  1. The set up already made by Private Miners, towards Value addition of the mineral Ilmenite has to be either closed down or import Ilmenite at higher cost. Perhaps, this will make their product uncompetitive compared to the titanium dioxide product imported from China.

 

  1. Beach Sand Mineral mining is Eco-friendly mining. It provides, huge number of employment, for both uneducated people and as well as educated people. In the beach mineral industries of Tamil Nadu, more than one lakh people get employment, through our association members. Being this area located in rain shadow area, agriculture activity or any other Industry were not developed. Whereas, the BSM Industries help these area people to live their life happily. Now, they are lost their jobs and starving for their day to day activities. In fact this has affected the education of many children and children have lost their education, due to the parents who lost their job from these Beach Sand Mineral Industry.

 

  1. We are proud to express that one of our Indian Private Beach Sand Mineral Producer have achieved, to make our India to reach No. 1 position in Producer and Exporter of Garnet Mineral and as well as to reach No. 2 position in Producer and Exporter of Ilmenite, in the world. However, by these Notifications, our country will loose the above credit.

 

  1. The main moto of National Mineral Policy and MMDR Act, for Exploration of Minerals by Government Agencies with the aid of NMET and subsequent Exploitation of Minerals by Private Sectors. But the latest MoM Notifications, totally deviating form the Policy and not having any relation or reference to the Policy. It will also have remarkable impact on Investments made by existing Private Mining Companies, Marketing network that developed in the past 3 decades, Millions of Foreign Exchange Revenue to our Nation, Employment Opportunities to thousand of people. Moreover, this will ease the Foreign Companies to utilize this golden opportunity, against the Indian Private Mining companies in the International Market. Thus our Indian Companies reputation will get spoiled in the International Market, which can not be regained, in the next 40 years.

 

  1. The aim of the National Mineral Policy, 2019 is to “Encourage Extraction of the Replenishable Deposits of Beach Sand Minerals for improved economic growth”. Whereas, these Notifications are irrelevant and extraneous to the National Mineral Policy, 2019.

 

  1. The efficient and trained manpower in the BSM industry will become obsolete. Perhaps, their expertise and experience will not have any value in the new filed.

 

  1. These Beach Sand Minerals and their derivative products, which have major Applications in Manufacturing, Electronics, Medical, Clean Energy and Defense have significant Market Demand and Revenue Generation Potential in today’s Economic Scenario. This opportunity to beneficially use these Resources may be lost as technological innovations look for alternate and substitute materials which will render these Mineral Resources of no value in the long term. This will be a National Loss and Poor utilization of the Country’s Natural Resources.

 

  1. The Capital and Infrastructural facilities set up by these Private Mining Companies will also become infructuous and they are forced to end up in huge losses to an approximate value of more than 10,000 crores of rupees as the investments become useless, due to these Impugned

 

  1. The Final Products and also the Semi Processed Minerals, having worth of hundreds of crores of rupees, will become useless, resulting in huge financial losses to the Private Mining Companies .

 

This drastic action, will totally eliminate the Private Sector from Beach Sand Minerals Industry. This action is similar to cutting off the hand, in order to cure the wound in the finger.

 

Flouting of Procedures in the Mining Sector, is not a new thing our country and the issues need to be resolved, by stringent control and not by total eradication of Private Mining operation. It may be noted that similar flouting of rules, in the Iron Ore Mining Sector were resolved peacefully. Hence similar steps need to be taken in this BSM sector also and Private sectors may be allowed to participate in Mining and Mineral Separation of BSM, for development of the Nation.

 

It is pertinent to point out here that, all over the world, Monazite is easily available and there is no demand for that. Only difference is In India the Monazite is available in better quality. So the Govt. Company, itself stopped their Monazite production w.e.f. 2004. Reply of Parliament question 420 dated 26.11.2014 will establish the same. Moreover, all over the world, none of the country including India, use Thorium available in Monazite for any purpose as, it is not a fissile material. But research is going on in India to use it in 3rd Stage Nuclear Programme may be after 2050 only. Even now also, Monazite cannot not be exported as, it is in the negative list and storage of monazite tailings either by way of back filling or stored in separate trenches under the institutional control of Government, is managed by Atomic Energy Regulatory Board (AERB) in accordance with the law.

 

We have no objection to take stringent action against illegal miners in accordance with law. But completely stoppage of Private Beach Mineral Producers will amounts our nation will lose valuable Foreign Exchange, Trust Worthiness for Investment, Revenue to the State and Employment Opportunity. Above all this amounts to loss of the naturally deposited Mineral Wealth.

 

 

Indian Mineral Sand Policy

Our association send one letter to PM Office regarding Indian Mineral policy. This is for our members information.

*******************

Date : 25-02-19

To

 

Shri.P.K.Mishra,

Additional Principal Secretary,

Office of the Honourable Prime Minister,

South Block,

New Delhi – 100 011

 

Indian mineral sands policy

 

The most recent changes to the Indian mineral sands policy, by regulatory change and with no consultation with the industry or the wider community, has taken India back to October 1998 and ensures that the country will miss out on the upcoming electric car revolution and further developments in many industries including aerospace, aeronautical and defence.

To put this into perspective India’s policy changes to restrict handling of monazite to state owned enterprises by imposing a limit of 0% monazite in all minerals, effectively re-nationalises the industry. This in turn means that India will be unable to compete for high end manufacturing and jobs in the next transport revolution and gifts China, a strategic rival, a stranglehold on this developing business.

India’s new policy is in stark contrast to the policies that have been put in place in the other major mineral sands producing countries and to illustrate this point I have outlined below the policies currently in place in those countries that compete with India in the mineral sands industry.

Australia: All mineral sands exportable and recognition that monazite is the only mineral sand with appreciable levels of radiation activity. Apart from monazite there are no restrictions on supplying ilmenite, zircon, rutile or xenotime unless they contain greater than 500 parts per million (ppm) or 0.05% of combined U3O8 + ThO2.

Control of monazite is undertaken by notification to the relevant Government body and export approval can be granted for 10 years after provision of information based upon a principal of know your customer and the ultimate end use. Otherwise no restrictions except for that monazite is classed as a hazardous material and the appropriate transport regulations must be met.

Kenya: All mineral sands (including monazite) are exportable but monazite requires specific export approval as it is classed as a ‘Strategic Mineral’ as it is radioactive. Recently approval has been granted for the export of rare earth minerals for 21 years with a slightly higher royalty of 5%.

In the new Mining Act of 2016 there is specific provision for the continuance of mineral licence conditions which does not allow for changes to licence and royalty provisions even if there are changes to the Act. Hence this provides certainty to the holder of the mining licence that terms and conditions of their mining licence cannot be changed during the term of their licence either in the future or retrospectively.

Mozambique: All mineral sands are exportable including monazite and there are no restrictions on the mining or handling of monazite except for normal OH&S provisions governing the handling of radioactive minerals.

USA: No restriction beyond normal hazardous material OH&S regulations. Currently plans are in place to export monazite to Canada for processing.

Vietnam: All mineral sands are exportable except monazite which is classed as a strategic mineral and subject to Prime Ministerial control. Vietnam is a leading supplier of ilmenite and zircon to China.

Finally nowhere else except India classifies the standard mineral sands of ilmenite, rutile, zircon or leucoxene as rare earth minerals for the very simple reason that they contain no rare earths at all.

The outcome of these most recent changes is to restrict India’s participation in the mineral sands industry and hence to restrict its ability to participate in the benefits that flow from the daily and future use of the elements contained in these minerals.

Examples of current, cutting edge manufactured products produced from mineral sands that are either under development or have recently been introduced include the following:

 

Ilmenite and rutile:

Both these titanium bearing minerals are consumed in the development and production of a myriad number of products used in daily life. However apart from the traditional production of TiO2 pigment there is a growing requirement for specialist titanium metal alloys in both the aerospace, aircraft and military/defence industries. This requirement is based around titanium metals properties of being corrosion resistance and having a very high strength to weight ratio. Hence demand is growing for titanium metal for submarine hulls, missile bodies and particularly in the construction of the new generation Boeing and Airbus passenger aircraft.

In aircraft the high strength to weight ratio of titanium metal is advantageous in reducing aircraft weight while maintaining structural integrity. These properties have also led to the development of new titanium/aluminium alloys for use in the new generation and fuel efficient aircraft engines currently under development by both General Electric and Rolls Royce where titanium alloys are used in high stress areas such as turbine airfoils, exhaust systems and compressor blades.

In defence the use of titanium metal is well established in submarine hull construction due to its properties and with the growing uncertainty in geopolitics, this demand is projected to expand. For the same reasons titanium metal alloys are used in missile bodies another area of defence spending growth.

Another example of the new or increasing commercial application of titanium dioxide is in photocatalytic or self-cleaning glass. First commercialised in 2001 in the UK, the ongoing technical developments in this field are assisting this technology to spread into lower level commercial and residential applications and hence increasing demand for this technology and hence for titanium dioxide.

In all the above cases irrespective of whether they are construction, defence or aerospace/aeronautical applications, a secure and long term supply source of ilmenite and rutile are required. Without these supply sources there can be no industrial development.

 

Zircon:

Zircon sand’s primary constituent zirconium is once again a material used every day in deodorants, ceramics and a multitude of everyday uses. Once again technological developments are leading to increased demand for zircon and zirconium compounds in many applications but particularly in advanced ceramic applications. Further zirconium’s high temperature and corrosion resistance means it is used extensively in nuclear power plants, satellites, space vehicles generally where high temperatures are experienced and aircraft engines.

New applications are particularly seen in the development of new, lightweight composite materials being increasingly used in the aeronautical industry and defence industries.

 

Monazite:

Monazite has one major use and that is as a source of rare earth elements. Previously it was used in gas mantle and cigarette lighters however its only use now is a source of rare earths.

Rare earths are used in a surprising number of everyday products but their main use is as a source of neodymium, praseodymium, samarium and dysprosium, the major elements in rare earth based magnets. Such magnets are used in any number of applications including mobile phones, computers, motor vehicles, speakers, wind turbines, electric hand tools, adhesive magnets, mineral separation, roller coasters, MRI machines, electric vehicles and many traction motors, electric guitars and many more applications. However the growth area is in the demand for electric vehicles which is poised to grow exponentially in the next decade as vehicles move from the internal combustion motor to electric motors.

 

Hence by not permitting the mining and exploitation of these minerals India will continue to miss out on the benefits of this modernisation of industry that is currently underway. These benefits are not restricted to employment or technology but also to the development of a sustainable and modern economy. These restrictions will ensure that India remains reliant on external supply sources with its attendant costs to the economy and its balance of payments.

Apart from the loss of current and future manufacturing and technology the ban on the movement and transportation of mineral sands enforced by the Tamil Nadu Government in November 2016 has created uncertainty amongst India’s trading partners regarding the application of the relevant laws in India. Further it has shown that sovereign risk is a real and ongoing threat to both international investment and the development of cutting edge and modern domestic industries in India. Without access to a long term and stable supply of raw materials no downstream manufacturing can be considered and ‘Make in India’ is not possible.

 

Thanking You.

 

Yours Truly,

for Beach Minerals Producers Association

President

 

 

IMPACT OF THE RECENT NOTIFICATION BY MINISTRY OF MINES FIXING THE TLV OF MONAZITE IN TOTAL HEAVY MINERALS AS 0.0% IN BEACH SAND MINERALS DEPOSITS.

IMPACT OF THE RECENT NOTIFICATION BY MINISTRY OF MINES FIXING THE TLV OF MONAZITE IN TOTAL HEAVY MINERALS AS 0.0% IN BEACH SAND MINERALS DEPOSITS.

As per this notification, it prima facie appears that the private sector who are presently having mining leases for beach sand minerals will have to relinquish their rightful mining leases, even though nothing specific is mentioned in the notifications regarding the existing mining leases. It is amply clear that it will not be possible to get any fresh mining lease for beach sand minerals by any private player.

History of Beach Sand Minerals Industry in India:

India is endowed with a coastline of over 6000 km and hosts some of the largest heavy  mineral placer deposits along the coastal stretches as well as  a few inland, mostly in the states of Tamilnadu, Andhra Pradesh, Orissa, Kerala and Maharashtra. These beach placers contain a multi mineral suite of heavy minerals comprising Ilmenite, Garnet, Leucoxene, Rutile, Zircon, Sillimanite  and Monazite. Most of these minerals occur together and their individual contents  vary from deposit to deposit depending on various factors associated with their formation by  natural geological processes. The major mineral in most of these Beach sand mineral deposits is ilmenite.

India contains significant reserves of Ilmenite, Garnet and Monazite containing  Rare earths ( Table 1), but these resources remain grossly underutilized with the production to reserve ratio ( PRR) being a meagre 0.0018 % when  compared to global PRR of 0.01% . India is stuck in this paradox and must leverage its plentiful resources to transform into a major global producer .

 

S.No. Mineral World Reserves

Million Tonnes**

Reserves in India

Million Tonnes*

Percentage share of global reserves
1 Ilmenite 1400 593 35
2 Garnet 420 168 40
3 Sillimanite NA 226 NA
4 Zircon 243 34 14
5 Rutile 310 31 10
6 Monazite 17 12 71

Table 1     ( *India figures are based on  AMD,. Hyderabad report . **World figures are based on USGS report for 2013)

Beach sand minerals and their derivatives find diverse applications in day to day use as well as strategic and high tech applications. The key impediment for the growth of this sector has been the constraints and challenges faced due to current mining policies and rules governing the Beach sand minerals. With proper encouragement and recognition from the Government for the BSM sector, this could be a mega opportunity for a successful “Mine in India “ and “Make In India” programme.

BSM Industry  scenario

The beach sand minerals mining activity in India is over a century old and commenced in 1908 when the beach sand containing monazite was mined and taken to European countries from the erstwhile Travancore state. After independence, the BSM sector was brought under the controlled regime due to the presence of monazite. It is pertinent to note that until 1998, this sector was restricted only to Public sector companies   and there was no substantial development in the production capacity of these beach sand minerals and no significant value addition facilities.  Recognising the untapped potential of the Beach Sand Minerals sector, the Department of Atomic Energy (DAE) announced the Policy on exploitation of Beach Sand Minerals in 1998 and opened up this sector to wholly Indian owned companies which brought in significant investments by private sector companies. Since entry of the private sector, the production of beach sand minerals has substantially increased and the export value has increased from Rs. 35 crores in 1998 to over Rs 5000 crores in 2016. The private sector producers have spearheaded   not only mineral production but   also invested in the value chain.

 

The current estimated production and demand figures for the minerals and value-added products of ilmenite (Table 2) amplify the incongruity in domestic production despite ample resource potential.

 

Mineral   /product   Indian production

(lakh tonnes)

  Indian Demand

(lakh tonnes)

  World

production

(lakh tonnes)

  World

demand

(lakh tonnes)

  Average Growth rate / year India

Scenario

Garnet 7 0.15 12 12.5 5-8% Exporter
Ilmenite 11 1 175 190 3-5% Exporter
Zircon 0.4 0.8 15.5 15.5 3-5% Importer
Rutile 0.25 0.45 9.75 9.75 5-8% Importer
TiO2pigment 0.50 2.20 72.0 70.0 3-5% Importer
Rare Earths Negligible RE products imported 1.7 1.6 5-10% Importer

Table 2  (* These figures are estimated based on the production figures available with the producers worldwide and port statistics on import and export of the minerals and their products when it was at the peak).

It may be worth mentioning that if only government companies will be exploiting the beach sand minerals in India in future as contemplated in the notifications, it is definite that the beach sand mineral deposits will always remain under the earth for generations and India will have to totally depend on import of beach sand minerals and their value added products as it can be seen from the scale of operation of the public sector units for the last more than 50 years. It is a pity that the present “Make in India” government is driving this sector for import of our requirements ignoring  all the financial, technical and managerial capabilities which are locally available.

The fall out of the notifications will be as follows:

  1. The value addition units set up by private miners to value add the ilmenite has to be either closed down or import ilmenite which is their feed material. This has to be at an extra cost and the value-added product produced by importing the ilmenite will make their product uncompetitive to the titanium dioxide product imported from China. This is due to the bad experience faced by VV Titanium Private Limited during the last few years when ilmenite production by private miners were suspended in Tamilnadu. Indian Rare Earths Limited (IRE) was not able to supply even one grain of the mineral and instead they were interested in export of ilmenite at the cost of the local industry. It is also a pity that IRE does not have any value addition facility for any of these minerals nor have any intention to set up any. Hence this move will definitely help China.
  2. It is a proud moment to state that Indian private beach sand mineral producers had made it possible to make India the second largest producer and exporter of the mineral garnet in the world. However, by this notification, it will be totally demolished. It is also a pity that IRE, instead of producing garnet, are selling the garnet concentrate (as they are unable to produce marketable grade) to outside companies to produce garnet.
  3. All the private beach sand mineral producers in India will look for investment abroad where the concentration of the heavy minerals are much less than what is available in India as they have the technicality to produce these minerals at lower cost, which will result in capital outflow for the country.
  4. India will have to import the requirement of all the beach sand minerals and their value added products which will have a double effect of reduction in export of around Rs. 5000 crores and increase of imports to the tune of around Rs. 3000 crore minimum at the present level and will exponentially increase when the industrial and economic activity of India improves.
  5. The occurrence of the beach sand minerals is unique and there is the possibility of inhabitation on these deposits in due coarse of time if it is timely exploited. Over the years, there is a possibility of these deposits becoming not mineable due to inhabitation.
  6. Almost more than 50,000 persons who are directly employed by the private mining companies will become jobless in addition to another 1,00,000 indirect employees facing destruction.
  7. The efficient and trained manpower in the BSM industry will become obsolete.

 

WHO IS GOING TO BENEFIT BY THESE NOTIFICATIONS:

  1. Countries like China and Australia who are competitors for the beach sand mineral products and value added products.
  2. The self declared activists and environmentalists who are backed by agencies who are determined to destruct the technological, financial and economical development of our nation.

 

Representation to reverse the DGFT notification No. 26 of 2018

Copy of representation submitted to the Honourable commerce Minister is posted for information of our members

******************

To,

Shri. Suresh Prabhu,

Honourable Minister for Commerce,

Government of India, New Delhi

  

Respected Sir,

Sub: Export Policy of Beach Sand Minerals (BSM) in Chapter 26 of Schedule 2 of  ITC(HS) Classification of Export and Import Items 2018 – regarding.

Ref: Directorate of Foreign Trade Notification No. 26/2015-2020, New Delhi, Dated 21, August, 2018.

 

Our organization consisting of the private Beach Sand Minerals (BSM) miners, producers and exporters as members is concerned about the above referred notification and wish to bring the following facts for the consideration of the honourable minister for  perusal and consideration in the interest of the country.

This notification is a retrograde step in the development of Beach sand Minerals (BSM) in the country which is vital for the development of the country.

In the above notification Note 1 states “ Export of Rare Earth compounds classified as Beach Sand Minerals (BSM), namely (ilmenite, rutile, leucoxene (Titanium bearing mineral), Zircon, Garnet, Sillimanite and monazite (Uranium and Thorium), shall be regulated in terms of Sl. No. 98A of Chapter 26 Schedule 2 of ITC (HS) Classification.”

The above statement itself is fundamentally erroneous as the definition of rare earths given is totally wrong. Rare Earths is a group of 17 elements in the periodic table. Out of the above mentioned minerals, only monazite mineral contains  rare earths and no other beach sand mineral contain any trace of rare earths. Monazite contains around 65% of rare earth elements, 8-10% of thorium and 0.30 to 0.35% of uranium. Hence, the statement “Rare Earth compounds classified as Beach Sand Minerals (BSM)” is not at all correct and gives a totally false implication. We like to inform that none of the minerals other than monazite contain any trace of rare earths elements.

Only monazite mineral can be classified as “Rare Earth Compounds” and not any other mineral under BSM.

The beach sand mining in India is more than one century old. The first mining was started in 1908 when the beach sand containing monazite was mined and taken to European countries from the erstwhile Travancore state. Subsequently, processing facilities were set up to separate the minerals like monazite, ilmenite etc. in Manavalakurichi presently in Tamilnadu and Chavara, Kerala. Till 1965, only private players were in the field and the companies were producing and exporting around 3.00 lakh tpa of ilmenite. After taking over of the private industries in 1965 by Indian Rare Earths Ltd.,(IRE),  a government of India undertaking under the control of Department of atomic energy, IRE and Kerala Minerals and Metals Limited (KMML), a Kerala government enterprise were the only organizations in the field. Till 1998, these two companies were producing only around 4.00 lakh tones per annum of these minerals. This amounted to a growth of only around 30% from 1965 to 1998 ( a period of 33 years) which was around 2-3 % of the world production. After opening up of the industry to private sector for mining and production of all minerals other than monazite in 1998, the annual production of BSM in India had gone up to around 12.00 lakhs tones in 2012.  The private sector started production of ilmenite only in 2002 and zircon and rutile in 2006. This growth is phenomenal as within a period of  ten years the production had increased threefold. It may also be noted that India is the second largest producer of garnet in the world. It is pertinent to point out here that, India has 40% of the total world reserve of Garnet and 35% of total world reserve of Ilmenite.

Subsequently as per the recommendation of the National Planning Commission High Level Committee, Govt., of India de-listed Ilmenite, Rutile, Zircon, and Leucoxene and recommended Ministry of Mines to amend MMDR Act, to de-list the same from first schedule and DAE dispensed of the licensing procedure from DAE and directed to obtain license from Atomic Energy Regulatory Board under Radiation Protection Rules.

After opening up of this sector to private for BSM mining and production of the various minerals other than monazite, there was phenomenal increase in production and export of these minerals which affected the monopoly of the international producers as India became the main competitor. With a view to curtail the production and export from India, the foreign companies with the help of various vested interests in India started a campaign to malign the private producers. One of the main points raised in all these falsifications is illegal export of monazite. This false campaign had its own impact on the various government and other agencies and the genesis of this notification may also be the same.

Ever since the Atomic Energy Act was implemented in India, monazite export was banned and all other BSM products need to get a monazite content certificate for export of any consignment. Accordingly, Atomic Minerals Division (AMD) was the nodal agency to take samples and issue the certificate.  The export can take place only if AMD certifies that the monazite content is within the prescribed limit. But this procedure was dispensed with DAE as per the recommendation of the High Level Committee of the National Planning Commission (The report is available in http://planningcommission.gov.in/reports/genrep/rep_nmp.pdf and in page No. 168 to 182 relating to beach sand minerals). We represent DAE to reintroduce the Monazite  Test Certificate Procedure again and we are ready to bare the cost etc.,  But DAE did not agree our request indicating that there is no demand for monazite in overseas countries as it is freely available all over the world. Now DAE fix gadgets in all ports and airports equipped with facilities to measure the radiation level of consignments.

We also like to bring to the notice of all concerned that the canalising of the export is proposed through Indian rare Earths Limited (IREL), which has vested interest in this business, them being one of the producers of these minerals and a competitor to our members. Making them as the canalizing agent for BSM minerals will have the following implications:

  1. For each mineral, there are different quality specifications which may not be in the range of IREL, resulting that IREL representative will not be able to understand the implications and will cause hurdles in the export of these minerals.
  2. The marketing of the products by our members is totally different than that of IREL. Our members produce the minerals as per the required specification of each buyer. And this will result in the representative of IREL not understanding of the real situation and will result in delay of exports.
  3. There is a likelihood that IREL may underquote to the customers once the price at which our members sell to their customers through this process which will affect the export from our country and also the business of our members.
  4. IREL is likely to charge exorbitant amounts for their services to make up for their operational losses as at present, which may make our export business unviable, as this will be additional expense for our members.
  5. This notification is brought with immediate effect. Our members are  at the various stages of executing their orders and IREL is not tuned to handle this with immediate effect. Many of the consignments are at the stages of transportation to the ports, stock at the port, vessels already commissioned and vessels partially loaded. What will happen to these cases?”
  6. The delay by IREL is likely to result of pour members losing their export orders.

If the present notification is implemented, the private sector enterprises in the BSM sector will be totally wiped out in India resulting in import of all the country’s requirement of BSM and their derivative products draining valuable foreign exchange and more than 50,000 people will loss their employment who get direct / indirect employment by way of beach mineral industry.

Moreover if, these minerals are not utilized for our nation’s development by way of export, there are possibilities that these resources may become waste due to the Technology development and there is possibilities to transported to the nearby countries by way of wave action and sea current.

It is worth mentioning that for these minerals, normally long term export contracts for more than three years are signed when the prices are high. There are many pending contracts valid till now and if not honored, the Indian companies will have to pay huge penalty as damages. Further, valuable foreign exchange will also be lost. We could not recapture the overseas market developed for the last 20 years.

Hence, to ensure the country’s interest and the interest of the miners and exporters, and to ensure that monazite does not leave the country, the following alternative action plans are recommended:

  1. The  practice of monazite certificate from a designated authority as was prevalent till 2007 may be re-introduced as a pre-requisite for export of BSM and the producers may be allowed to export all the BSM other than monazite as was practiced till 2007.
  2. If the government feels that canalisation needs to be implemented, a separate agency who is not a producer of the BSM may be appointed for this purpose so that both private and public sector is brought within the purview of this agency.
  3. The producers may be allowed to export the minerals till the agency is appointed and the formalities are over. It is suggested that if at all required to have a canalizing agency, an incubation period of atleast three months may be allowed for appointment of this agency and till such time the producers may be allowed to export their products as was done till now.

It is requested that the honourable minister looks into this matter in detail and instruct to make necessary modification in the notification considering the various aspects  indicated so that national interest is of primary interest.

Yours truly

N.Pauldurai @ Perumal

President

Beach Mineral Producers Association.

Industrial Growth, moderately substantially better percentage is reduced in the FICCI industrial confidence survey in terms of industry as well as firms. FICCI draft survey is attached.

FICCI_BCS_-_June_2018

Mineral Industry give 64% of its revenue to Government through various taxes

All over the world, Indian Government will get 64% of the total mineral revenue by way of various taxes, whereas, other countries, the government will get less than 45%. The comparison of FIMI in submission about royalty revision is given below for the information of our members.

 

royalty note FIMI