'New national mineral exploration policy to be ready by Jan'

Mumbai: The new national mineral exploration policy will be ready by January which will seek to tap the private sector, a senior government official said Wednesday.

"The National Mineral Exploration Policy will be ready in the next two months. The draft exploration policy, which is in the public domain, will be revised to include some critical aspects," Mines Secretary Balvinder Kumar told reporters on the sidelines of the India Copper Forum here.

The government is working on a detailed plan to allow the private sector to actively participate in mineral exploration.

In the years to come, mining is expected to be a key industry, attracting huge investments (both domestic and foreign) thereby generating additional employment, Kumar said.

Besides the centrally-run Mineral Exploration Corporation (MECL), state PSUs will also be encouraged to enter into joint ventures with global players for exploration, Kumar said.

"Separate policy for deep-seated minerals such as diamonds and gold is being considered, which will lead to amendment in the MMDR (Mines and Minerals Development and Regulation) Act," he added.

The government, which recently amended the MMDR Act of 2015, is likely to start auctioning mines by the end of this year, with around 70 leases planned in the first phase.

The government is planning to auction 60-70 mines by December, and another 50-60 mineral blocks will be put up for auction next year, he said.

Also, 8-10 copper blocks will be put for auction over the next one year.

Earlier, the Centre had said that 12 mineral-producing states had identified 80-90 blocks that would go under the hammer starting this month.

The Mines Ministry has identified 199 such mines that can be auctioned. They are located in mineral-rich states such as Rajasthan, Jharkhand, Madhya Pradesh, Chhattisgarh, Karnataka and Odisha.

Kumar said the government is also gearing up MECL and the Geological Survey of India (GSI) to search for more mineral reserves.

The GSI recently found greenfield mines having 26.3 billion tonnes of copper and 1.3 MT of gold and silver in Alwar in Rajasthan.

The secretary also said National Mineral Exploration Trust has been set up to enhance mineral exploration, apart from a District Mineral Fund for the rehabilitation of people affected by mining.