Mining Policy: The Wrinkles That Remain

Context: An analysis of the challenges associated with the recent amendments to the Mines and Minerals (Development and Regulation) Act (MMDRA).

Significance of MMDRA:

• Puts an end to regressive practices:
  • Ending new captive mines that can only be used to feed one specific end-user as now Existing captive mines can sell up to 50% of their output to third parties.
  • Ending transfers, when a lease changes hands,
  • Ending the assorted clearances that a mine requires to operate to the new lease-holder.

Challenges in the mining industry:

• Unrealistic pricing norms: Abort local mining and extend dependence on imports, E.g. Case of Bauxite, raw material for aluminium.
• Issues with the MMDRA: Fails to take into account the changes and their environmental impact:
  • It allows for the carry-over of clearances to the new operator’s provision.
  • Absence of periodic renewal of environmental clearances poses a risk; for e.g. global mining major Vale was marred in controversy after the dam storing its iron ore waste burst and killed 270 people in Brazil.

Way forward

• Incorporate Environmental Impact Assessment (EIA) as an ongoing process: This would minimize environmental hazards, protect health and lives.
• Holding mandatory public hearings: carrying local communities along.