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.