MINERAL CONCESSION RULES, 1960
These rules may be called the Mineral Concession Rules, 1960.
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1. Vide G.S.R. 1398, dated 11th November, 1960, published in the Gazette of India, 1960, Pt. II, Sec. 3(i), p. 1747.
In these rules, unless the context otherwise requires,—
(i) “Act” means the Mines and Minerals 1[(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.
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2. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
—(1) An application for reconnaissance permit shall be made to the State Government in Form A through such officer or authority as the State Government may specify in this behalf.
(2) (a) Every such application shall be accompanied by a non-refundable fee
calculated at the rate of five rupees per square kilometre.
(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
1) Where an application for the grant of reconnaissance permit 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 D1. ]
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1 Subs. by G.S.R. 56(E), dated 17 th January 2000, for chapter II relating to certificate of Approval.
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. ]
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1. Subs. by G.S.R. 56(E), dated 17 th January 2000, for chapter II relating to certificate of Approval.
—(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. ]
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1. Subs. by G.S.R. 56(E), dated 17 th January 2000, for chapter II relating to certificate of Approval.
—(1) A register of applications for reconnaissance permits shall be maintained by the State Government in Form G1.
(2) A register of reconnaissance permits shall be maintained by State Government in Form H1.]
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1. Subs. by G.S.R. 56(E), dated 17 th January 2000, for chapter II relating to certificate of Approval
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
—(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 kilometres 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 tweny-five square kilometres 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
—(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 kilometre 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. ]
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1 Subs. by G.S.R. 56(E), dated 17 th January 2000, for chapter II relating to certificate of Approval.
—(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 F1, 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 clearanc
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.]
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1. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
—(1) An application for 1[a prospecting licence and its renewal in respect of land in which the minerals vest in Government shall be made to the State Government in Form B and Form D respectively] through such officer or authority as the State Government may specify in this behalf.
(2) Every such application shall be accompanied by—
(a) a 2[non-refundable] fee calculated in accordance with the provisions of Schedule II; and
3[***]
4[(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:]
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—(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.
1[***]
2[(2)(a) An application for the renewal of a 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 with
—(1) 1[The State Government may, 2[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.]
2[(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 in 3[clauses (d), (e), (f) and (g) of sub-rule (2)] of the said rule.]
2[(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 t
(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.]
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1. Ins. by G.S.R. 129 (E), dated 20th February, 1991.
1 [***]
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1. Rule 13 omitted by G.S.R. 56 (E), dated 17th January, 2000.
—(1) Every prospecting licence 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 licensee shall pay such prospecting fee as may be fixed by the State Government, 1[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;
2[(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 Schedu
.—(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).
.—(1) The licensee shall submit to the State Government a 2[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 su
Every licensee shall maintain 1[an accurate] 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.
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1. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
.—(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.
.—(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 licence 1[a sum of two thousand 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.
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1. Subs. by G.S.R. 21 (E), dated 11th January, 2002 (w.e.f. 11-1-2002).
.—(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.
Minimum area for grant of mining lease shall not be less than—
(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.
Beach sands or placers are mono or multi-minera
.—(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.]
2[(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.]
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.—(1) No mining plan shall be approved 2[***] unless it is prepared by a qualified person recognised in this behalf by the Central Government, 3[or duly authorised officer].
(2) No person shall be recognised by the Central Government for 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
4[(ii) professional experience of five years of working in a supervisory capac
2[(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.]]
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1. Ins. by G.S.R. 86 (E), dated 10th February, 1987.
2. Subs. by G.S.R. 908 (E), dated 19th October, 1989.
—(1) An application for the grant of a mining lease in respect of land in which the minerals vest in the Government shall be made to the State Government in Form I through such officer or authority as the State Government may specify in this behalf.
1[***]
(3)(i) Every application for the grant of renewal of a mining lease shall be
accompanied by—
(a) 2[a non-refundable fee of two thousand and five hundred rupees;]
3[***]
4[(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
.—(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.
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 period 2[not exceeding twenty years] unless he applies for a lesser period.
Explanation.—“Own industry” means an industry of which the lessee is the owner or in which he holds not less than fifty per cent of controlling interest.]
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1. Ins. by G.S.R. 86 (E), dated 10th February, 1987.
2. Subs. by G.S.R. 345 (E), dated 30th March, 1994.
—(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.
2[(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.]
2[(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:]
3[Provided that before granting approval for second or subsequent renewal of a mining lease, the State Govern
1[***]
2[***]
3[***]
4[(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 fact 5[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 i
.—(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.]
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1. Ins. by G.S.R. 129 (E), dated 20th February, 1991.
[(1)] 3[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.]
4[(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.]
5[(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
1) Every mining lease shall be subject to the following conditions 1[***]:—
(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 rent 2[at the rates specified in the Third Schedule] 3[of the Act] and if the lease permits the working of more than one mineral in the same area 4[the State Government shall not charge separate dead rent in respect of each mineral]:
&
.—(1) Subject to the other conditions of this rule where mining operations are not commenced within a period of one year from the date of execution of the lease, or is discontinued for a continuous period of one year after commencement of such operations, the State Government shall, by an order, declare the mining lease as lapsed and communicate the declaration to the lessee.
(2) Where a lessee is unable to commence the mining operation within a period of one year from the date of execution of the mining lease, or discontinues mining operations for a period exceeding one year for reasons beyond his control, he may submit an application to the State Government, explaining the reasons for the same, at least three months before the expiry of such period.
(3) Every application under sub-rule (2) shall be accompanied by a fee of Rs. 200.
.—(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.]
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1. Ins. by G.S.R. 329 (E), dated 10th April, 2003 (w.e.f
[(1)] The lessee shall not determine the lease except after notice in writing of not less than twelve calendar months to the State Government or to such officer, or authority as the State Government may specify in this behalf:
2[Provided that where a lessee holding a mining lease for a group of minerals applies for the surrender of any mineral from the lease on the ground that deposits of that mineral have since exhausted or depleted to such an extent that it is no longer economical to work the mineral, the State Government may permit the lessee to surrender that mineral, subject to the following conditions, namely:—
(a) the lessee applies for such surrender of mineral at least 6 months before the intended date of surrender; and
(b) the lessee gives an undertaking that he will not cause any
Subject to the conditions mentioned in rule 27, the lessee with respect to 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.
.—(1) Where, on an application for the grant of a mining lease, an order has been made for the grant of 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 if no 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.
1[(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.]
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&n
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 lease 1[ten thousand rupees].
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1. Subs. by G.S.R. 56(E), dated 17 th January, 2000, for “two thousand rupees”. Earlier the words “two thousand rupees” were substituted by G.S.R. 888, dated 18 th October, 1986.
When a mining lease is granted by the State Government, arrangements shall be made 1[by the State Government] at the expense of the lessee for the survey and demarcation of the area granted under the lease.
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1. Ins. by G.S.R. 1133, dated 7th September, 1961.
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 part or parts 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.
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.]
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1. Ins. by G.S.R. 56 (E), dated 17 th January, 2000. Earlier Rule 35 was omitted by G.S.R. 724 (E), dated 27th September, 1994.
The boundaries of the area covered by a mining lease shall run vertically downwards below the surface towards the centre of the earth.
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.]
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1. Ins. by G.S.R. 804, dated 22nd May, 1979.
1) The lessee shall not, without the previous consent in writing of the State Government 1[and in the case of mining lease in respect of any mineral specified in 2[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 any 2[ 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 lessees operations or undertakings will or may be substantially controlled by, any person or body of persons other than the lessee:
3[***]
4[Provided further tha
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.]
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1.Ins. by G.S.R. 56 (E), dated 17th January, 2000. Earlier rule 38 was omitted by G.S.R. 724 (E), dated 27 th September 1994.
An application for the transfer for a mining lease or the amalgamation of mining leases pending at the commencement of these rules shall be disposed of in accordance with these rules.]
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1. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
.—(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.
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.
[(1) No prospecting licence or mining lease shall be granted to any person unless he has filed an affidavit stating that he 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 (43 of 1961).]
2[(2) Except with the previous approval of the Central Government, no prospecting licence or mining lease shall be granted in respect of any mineral specified in the First Schedule to the Act.]
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1. Subs. by G.S.R. 449 (E), dated 13th April, 1988.
&nb
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, 1[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 paym
Every mining lease shall be subject to the following conditions:—
(i) the provisions of clauses (b) to (l) 1[and (p) to (u)] of sub-rule (1) of rule 27 shall apply to such leases with the modification that in clauses (c) and (d) for the words “State Government” the word “lessor” shall be substituted;
2[(ia) mining operations shall be undertaken in accordance with the duly approved mining plan;]
3[***]
(iii) the lease may contain such other conditions, not being inconsistent 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 b
.—(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 he 1[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.
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1. Subs. by G.S.R. 449 (E), dated 13th April, 1988.
Every person obtaining a 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.
Every transferee or assignee of a prospecting licence or a mining lease or of any right, title or interest therein, shall, within one month of such transfer or assignment, inform the State Government of the transfer or assignment and of the terms and conditions of such transfer or assignment.
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.
If the State Government has reason to believe that the grant or transfer of a prospecting licence or a mining 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.
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.
[(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 to 2[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 to 2[one year or fine which may extend to five thousand rupees or both].
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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 of 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.
—(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, within 1[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 by 2[a Bank Draft for 3[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 3[five thousand rupees under the Head of 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 of 1[three months] if the applicant satisfies the Central Government that he had sufficient cause for not making the applic
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 accidental slip 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.
.—(1) A copy of every 1[reconnaissance permit, prospecting licence and mining lease] granted or renewed under these rules shall be supplied by each State Government within two months of such grant or renewal to 2[the Controller General, Indian Bureau of Mines] and the 2[Director-General, Mines Safety].
(2) A consolidated annual return of all 1[reconnaissance permit, prospecting licences and mining leases] granted or renewed under these rules shall also be supplied by each State Government to 2[the Controller General, Indian Bureau of Mines] in such form as may be specified by him, not later than the 30th day of June following the year to which the return relates. A copy of such return shall also be supplied by the State Government to the 1[Director-General, Mines Safety] at the same time.
(3) Every State Government shall send copies of a
[(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,
&
Applications for the grant of a 2[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
3[(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.]]
—————
1. Subs. by G.S.R. 146, dated 16th January, 1980.
2. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
3. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
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 orginal or certified copies of all plans of abandoned workings in that area and in a belt preferably 60 metres surrounding it.]
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1. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
[(1)] 2[***] An applicant for, or the holder of a 3[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.
4[(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 the case.]
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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.
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
The Guidelines for calculation of royalty in typical cases are as follows, namely:—
2[Case 1: All non-atomic and non-fuel minerals and minerals other than aluminium 3[(bauxite and laterite despatched for use in alumina and aluminium metal extraction)], primary gold, silver, copper, lead, zinc, nickel and tin—
The Indian Bureau of Mines publishes ‘Monthly Statistics of Mineral Production which contains statewise total value of each mineral produced during a month in a State. The statewise average value for different
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 tailings 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. ]
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1. Ins. by G.S.R. 743 (E), dated 25th September, 2000 (w.e.f. 25-9-2000).
—(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. ]
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1. Ins. by G.S.R. 743 (E), dated 25th September, 2000 (w.e.f. 25-9-2000).
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.
.—(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 to 1[the Controller General, Indian Bureau of Mines].
—————
1. Subs. by G.S.R. 298, dated 28th February, 1984.
.—(1) Notwithstanding anything contained in these rules, the prospecting or mining operations in respect of atomic minerals listed in Part B of the First Schedule of the Act shall be subject to following conditions:—
(i) if the holder of a prospecting licence or mining lease discovers any atomic mineral in the area granted under licence or lease, not specified in the licence or lease, discovery of such mineral shall also be reported to the Director, Atomic Minerals Directorate for Exploration and Research, Hyderabad within 60 days from the date of discovery of such mineral;
(ii) the licencee or lessee shall not win or dispose of such atomic mineral unless such atomic mineral is included in licence or lease or a separate licence or lease for the purpose has been obtained;
.—(1) A 1[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 of 1[reconnaissance or prospecting or mining] operations to the 2[Director General, Geological Survey of India,] Calcutta 3[and the Director of Geology and Mining of the State in which the 1[reconnaissance or prospecting or mining] operations are carried on].
(b) all information pertaining to investigations of 4[atomic minerals] collected by him during the course of 1[reconnaissance or prospecting or mining] operations to the 5[Director, Atomic Minerals, Directorate for Exploration and Research, Hyderabad,] 6[and to the Director of Geology and Minin
Where more than one mineral is found in an area and lease is granted for exploiting two or more minerals, 1[the periods of lease for all minerals shall be co-terminus with that for which the first lease was originally granted].
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1. Subs. by G.S.R. 56 (E), dated 17th January, 2000.
On the commencement* of 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.
—————
* Deemed to have come into force on 26th November, 1960.
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, Lepidolite, Mica, Pitchblende, Quartz, Samarskite, Scheelite, Topaz, Tantalite, Tourmaline.
(ii) Iron, Manganese, Titanium, Vanadium and Nickel minerals.
(iii) Lead, Zinc, Copper, Cadmium, Arsenic, Antimony, Bismuth, Cobalt, Nickel, Molybdenum and Uranium minerals and Gold and Silver, 1[Arsenopyrite], Chalcopyrite, Pyrite, 1[Pyrrhotite] and 1[Pentlandite].
(iv) Chromium, Osmiridium, Platinum and Nickel minerals.
(v) Kyanite, Sillimanite, Corundum, Dumortierite and 1[Topaz].
&
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;]
2[(v) for manufacture of silvicrete cement;
(vi) for manufacture of sodium silicate;
(vii) for manufacture of pottery and glass.]
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1. Ins. by G.S.R. 1446, dated 2n
[(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 the reconnaissance 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 land, 3[***] 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.
&nbs
[(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 payble 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 the 2[reconnaissance permit or prospecting licence or mining lease] and shall be carried out by an officer appointed by the State Government by notification in this behalf. ]
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1. Ins. by G.S.R. 86 (E), dated 10th February, 1987.
2. Subs. by G.S.R. 56 (E), da
—(1) Where a prospecting operation is to be undertaken by the Geological Survey of India, the Indian Bureau of Mines, the Atomic Minerals Division of the Department of Atomic Energy of the Central Government, the Directorate of Mining and Geology of any State Government (by whatever name called), or the Mineral Exploration Corporation Limited, the State Government shall issue a notification in the Official Gazette giving details of the area, and the period for which prospecting operations are to be undertaken.
(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 sub-rule (1), if the prospecting operations have been completed
—(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:
2[***]
3[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 is extended by a fresh notification.] ]
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1. Ins. by G.S.R. 86 (E), dated 10th February, 1987.
2. Sub-rule (2) omitted by G.S.R. 9 (E), dated 4th January, 1999 (w.e.f. 4-1-1999).
&n
1[***]
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1. Form A1 omitted by G.S.R. 86 (E), dated 10th February, 1987.
1[***]
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1. Form A2 omitted by G.S.R. 86 (E), dated 10th February, 1987.
1[SCHEDULE II
[See rule 9(2)(a)]
(1) For first square kilometre or part thereof two hundred fifty rupees.
(2) For each additional square kilometre fifty rupees.]
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1. Subs. by G.S.R. 21(E), dated 11th january, 2002, for Schedule II (w.e.f 11-1-2002). Earlier Schedule II was subsitituted by G.S.R. 888, dated 18th October, 1986.
1[***]
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1. Schedule IV omitted by G.S.R. 1010, dated 15th September, 1973.
1[SCHEDULE V
(See rule 37)
1. A Scheduled Bank as defined in clause (e) of section 2 of the Reserve Bank of India Act, 1934 (2 of 1934).
2. A Bank specified in column 2 of the First Schedule to the Banking Companies (Acquistition and Transfer of Undertakings) Act, 1970 (5 of 1970).
3. A Finance Corporation owned and controlled by a State Government.
4. A State Industrial Development Corporation.
5. Unit Trust of India.
6. Industrial Finance Corporation of India.
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