Scientific Mining Policy
PREAMBLE
The National Mineral Policy, 2008, declared by the Government of India (GoI) replaces the National Mineral Policy, 1993. The new policy allows for large presence and participation by the private sector in the mining sector in order to augment the contribution of mining sector to the national gross domestic product (GDP) and more employment for the skilled and semi-skilled or unskilled people in the employable age group and secure supply of minable minerals and rocks for the mills, smelters and factories.
The quantum leap in the mineral production under the new policy will also guarantee steady supply of finished products like steel of all specifications, cement, and rocks (for the aggregate producing mills). India is also a world leader (with a place among the top ten nations) in respect of certain natural minerals like Muscovite mica, iron ore, manganese ore, coal and lignite.
Undoubtedly, even though the mining of minerals and rocks (whether strip mining or subsurface mining) are an essential input in the economic activity of nations, it is not without environmental and social consequences. Or else, the quarrying/mining operations create large scars on the land surface transforming the natural topography, soil cover and micro and macro flora and fauna. Gladdeningly, the National Mineral Policy, 2008 adequately addresses such issues in relation to the environment and societal impacts.
BASIC FEATURES
The new Scientific Mining Policy document appropriate for the state to ensure at least 5% growth in the State gross domestic product (SGDP) is presented in the following pages. In Kerala, the extracted natural materials from the upper most crust of the earth have been coming from quarries, mine pits, beaches and also from the river channels. There are no other large endowments of other industrials/metallic minerals in the state. Historically, gold was panned from the sand of Nilambur valley, Phlogopite mica from Vattiyurkavu, graphite from Vellanad and cat’s eye variety chrysoberyl from the river alluviam of Neyyar and Vamanpuram Ar.
The extractive industry [Mining and Quarrying (M&Q)] is the primary source of raw rock or partially prepared sand, metal and rock-rubble to maintain the existing infrastructure and/or making new ones in the state specifically in the sectors of roads, multilane highways, railroads, dams for drinking water supply, homes, schools, colleges, hospitals, seawalls, groynes, breakwaters for ports, new airports and seaports and such other installations.
FUNDAMENTAL ISSUES
Basic issues in the M&Q sector are the reluctance of the operators to follow the newer stipulations and regulations in regard to the opening of new M&Q, operating these with adequate safety and security (to the workers and public in the neighbourhood), belittling the social and environmental concerns and implementation of a decent exit policy.
This mind set on the part of the industry and the growing environmental awareness and deep concern of the common public about the perceived harms to the environment inflicted by the M&Q operations have led to sort of a stand-off leading to delay in supply of M&Q products to the needy clients.
What is called for in this background is formulation of this new scientific mining policy that will redress the concern of the public on the one hand and on the other ensure the supply of the material of the required volume and quality to the clients without long lead-time.
REGULATORY FRAME WORK
The growth of any industry, including the M&Q industry in the state is essential for the welfare of the people, new jobs for the employable group and better quality of life. Industry gives away money as wages to the ones directly employed by them and takes away money from the consumers of their wares. One Nobel winning economist recently wrote that “my expenditure is your income and your expenditure is my income”.
In other words business is a two way street. Minimal interventions and regulations are the fertile soil for industry. It is true in the M&Q sector. The government therefore shall promote the M&Q industry with equanimity, but shall ensure on the part of operators compliance with the Environmental Impact Assessment (EIA) and Social Impact Assessment (SIA) framework governing such activities.
ROLE OF LSGS-DEPARTMENTS/AGENCIES
The authority to dispense permissions or withhold permissions vested in the Panchayaths is not congenial to the growth of the existing industry or new investments. Therefore, when it comes to issues like Q&M operations, the final decisions shall be dispensed at the District level by an expert committee presided over by the District Collector. Currently at least 10 or more government agencies need to grant approval of one or other sort before the mine or quarry is opened in the state.
VISION
Under the scientific mining policy, it is the bounden duty of the state to ensure free and fair supply of minerals, rocks and value added rock products (like for e.g., coarse and fine aggregates) to meet the internal needs (in the manufacturing and infrastructure sectors (both for upkeep and creating new ones) as well as export across the state’s border. The government shall pursue this policy with due diligence to the environmental health of the mining/quarrying landscape/land parcels as well as that of the land area in the downstream.
MISSION
In India, excluding petroleum and natural gas, other mineral resources of the country are jointly managed by the union government and state governments, whose framework is stipulated specifically in the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). The union government also framed the Mineral Concession, 1960 for regulating the reconnaissance permits, prospecting licenses and mining leases in respect of all minerals other than atomic minerals and minor minerals. With an eye on the conservation and systematic development of mineral resources of the country, Central Government has framed the Mineral Conservation and Development Rules, 1988 (MCDR) primarily with the intent of ensuring national needs and demands as well as a sharp focus on the environmental health. Keeping in mind the national policy, states framed rules governing the extraction of minor minerals.
The State of Kerala, as a matter of policy (but within the regulatory umbrella of the EIA and SIA) shall allow exploration and scientific extraction of minerals, rocks and ores primarily for use and consumption within the state or for export across the borders.
OBJECTIVES
The new scientific mining policy is like a three legged stool. The leg one is uninterrupted supply of extracted natural materials like mineral, rock and value added rock products – the essential inputs in mineral based industries and in keeping and making modern infra-structure. The second leg is minimising the environmental damage, while the third one is minimising the social impact of M&Q operations.
STRATEGIES
a. Resource Mapping and Delineation
The State shall encourage a fast track mapping of mineral/rock resources by Mining and Geology Department as the nodal agency, in cooperation with the Geological Survey of India (Kerala unit) and such other competent agencies to assess the state’s potential of utilizable mineral/rock resources for industry, new infrastructure creation and upkeep of the ones in place (e.g., roads, rail tracks, breakwaters, seawalls etc.).
Further, government shall notify such proven mineral/rock bearing areas and parcels of land. Also, the state shall require the Directorate of Mining Geology Department of Kerala, the Geological Survey of India (Kerala Unit) and such other statutory agencies to map to identify the potential sites for “Opening super mines/quarries” in parts of the state and on a scale of 1:25000 or 1:12500 or better to assess the minable/quarriable reserves in the state.
b. Technology Adoption
Generally speaking, with the exception of a very few operators, most of the M&Q activities in the state continue to follow the human intensive and classical methods. When the country is undergoing a modernisation of the day to day operations and governance, the M&Q sector or administration in the state of Kerala cannot continue to stay insulated from the structural and procedural reforms and mineral and rock inventory, quarterly/annual rates of production etc.
Therefore, the e-Governance policy promoted by the state shall be expeditiously extended and implemented in the Directorate of Mining and Geology, Govt. of Kerala (DM&G of GOK) in order to inject efficiency of governance, provide public access to the potentially extractable resources, and eliminate delays in delivery of service to public. Therefore,
A. The DM&G of GOK shall design, implement and maintain a GIS based geodatabase with data, charts and thematic maps of all the extractable mineral/ rock resources, and operating and abandoned mines and quarries. All quarriable and minable resources of the state in a geodatabase shall be published in the website in the public domain (of the DM&G of GOK).
B. Also, Digital photogrammetric mapping of operating mines/quarries shall be implemented and monitored periodically to assess the quanta of material already extracted with utmost precision in order to prevent or eliminate revenue loss to the state.
C. High resolution Remote sensing satellite images shall be appropriately used in conjunction with topographic maps to expedite and speed up the reconnaissance and mapping and updating of rock/mineral resources of the state.
c. Environmental Responsibility
An old Chinese proverb reads like this “If you cannot grow it or buy it, you got to mine it”. Yet, mining, another form of quarrying is not a harmless process to the landscape, soil, ecosystem and finally the ecological balance.
The steadily growing population of the country and of the state has placed newer and steeply rising demands for more food grains and agricultural products, and infrastructure such as new homes, schools, colleges and play grounds, hospitals, multilane highways, metros, airports and sea ports etc.
Further, creating opportunities for earning a decent wage/salary and leading a meaningful life for its citizens is also the states responsibility. In order to meet most or all of these demands directly or indirectly, we need to look at the crustal skin of solid earth for extracting materials for input in creating, augmenting, supplying and fulfilling such needs.
The M&Q business feeding the needs of consumer with or without value addition certainly affects the topmost part of the crust of the solid earth, but to variable depths. The need to be environmentally responsible the extractive-industry-sector need to implement the policies proposed by the Indian Bureau of Mines and the stipulations there of by the DM&G of GOK. Our society and the administration have bestowed equally serious checks and controls to ensure minimum or slight damage during the M&Q operations.
The EIA of the new projects are mandated only to secure the health of the ecosystem in and around the operations and to reduce or eliminate loss/damage to the environment. The implementation of recommendations of EIA study will guarantee a responsible M&Q operations. Equally important shall be the compliance of the operator with respect to the SIA recommendations.
d. Processes and Practices
Current responsibilities, processes and practices bestowed in or followed by the DM&G is disproportionate to the existing professional/technical manpower at its disposal and hence leads to delays and postponements of immediate action and resolve on the issues before them. In other words, DM&G of the state is kind “over burdened with” a variety of tasks like proper monitoring of mining /quarrying activities, regulating the issuance of permits/leases, estimating the reserves of minable/quarryable resources, maintaining a “near real time inventory” as well as plugging the revenue leaks in the mining/quarrying sector.
The government shall therefore suitably expand the professional/technical workforce of the DM&G of GOK based on the proposal by the latter.
The GOK shall approve appointment of a Regional Environmental Officer each in the southern, central and northern regions under the DM&G, to oversee the operations, expedite processing of the applications for permits by scrutinizing EIA document (and if need be after field verification/studies), and compliance with the mandated regulatory framework, etc.
e. HR Development
The M&Q sector of the state badly needs professionals like Mining Engineers and Geophysicists besides Geologists. Therefore, government shall identify universities, Engineering Colleges and Polytechnic Colleges for launching new course of study, viz., M.Sc in Applied Geophysics, B.Tech Degree in Mining Engineering and Diploma in Mining Engineering. To begin with, during the AY15-16, sufficient funds shall be made available for a M.Sc. Degree Course in Applied Geophysics (in University of Calicut), B.Tech degree in Mining Engineering (College of Engineering, Trivandrum) and a diploma course in mining Engineering (the Central Polytechnic College, Trivandrum).
f. R&D
The EFG based numerical designation of mineral/rock resources takes into account economic and social aspects in the E axis, while in the F axis is embedded the environmental questions. The G axis is set apart for geological feasibility. Therefore knowledge of UNFC-2009 based numerical EFG classification of minable and quarriable resources of the state, be reckoned, along with EIA and SIA while granting permission or otherwise for mining/quarrying of a resource. This new scheme of classification of mineral/rock resources are perhaps a leap forward in respect of scientific and economic profiling of the deposit which is very useful for the extractive industry.
g. Socio –Economic Factors
M&Q are certainly industries that contribute to the SGDP (state gross domestic product) and therefore the state shall promote such industries. Nevertheless, this industry will be effectively brought under the scanner to decipher the environmental and social impacts. The government shall require all new applicants seeking lease/permit to successfully pass/clear what is known as SIA (Social Impact Assessment). In other words SIA and EIA compliance shall be mandatory.
h. Labour – Industry Relation
All along, in Kerala the labour-industry relations have been occasionally volatile. Truly there is a huge demand for transparency in this sector. With the advent of “aadhar” now it is easier for transferring the financial benefits like wages, bonus, sick pay etc., to aadhar linked employee bank account.
In fact, the government shall welcome and promote such policies of direct remittances to the employee’s bank account linked to aadhar. Labour laws and community health benefit provision will be enforced effectively in the M&Q sectiors.
i. Import- Export
In today’s globalised economy has put in place a new regime of very few restrictions on trade across the national borders. It is more so between the state borders with the implementation of the new GST regime from 1-1-15. Therefore the government shall not impose restrictions in the interstate trade of raw or value added products of M&Q origin. Further, the state shall not go against the national policy/ies on trade of minerals and rocks.
j. Reviewing Regulatory Framework
Existing Rules governing the M&Q operations are largely based on the stipulations of the GOI framed by the Indian Bureau of Mines (IBM). In fact, these rules undergo amendments and modifications to accommodate the new national policies. In respect of minor minerals also, the primary prescriptions are by the IBM.
The lease and permit stipulations and several tiers of clearance (for e.g., local body or panchayath, DM&G, Department of Environment and Climate Change, State Pollution Control Board etc to name a few) as practiced today in Kerala are again based fully or partly on the IBM guidelines.
In order to attract more operators and to scale up production, the government shall put in place a single window clearing system in respect of new operations in the M&Q sector at the district level instead of clearance at the level of panchayaths. There shall also be a review mechanism or a state level appellate authority to redress the decisions at the District level.
k. Procedures and practices of Agencies
Current practice of decision making on the permit/lease applications or issuing stop-work-memos, at the state level and approval by the concerned Panchayath is cumbersome, time consuming from the point of view of investor.
For achieving the national level of growth for the SGDP, the current practices and procedures followed by the agencies involved need a review and scrutiny. The rules framed decades ago will not serve any useful purpose in the current environment and might be unattractive to the prospective investor. The government shall therefore appoint a committee to identify the anachronistic /redundant rules and if required shall remove them from the statute books.
l. Rehabilitation and Mine Closure Policy
The IBM from time to time has stipulated rules, regulations and conventions governing the M&Q initiation, operation and exit processes. The environmental and ecological restoration of abandoned M&Q is among the responsibilities of operator/company.
Further, the relevant recommendations by the scientific committee on REUSE OF ABANDONED QUARRIES AND MINE PITS, 2011 (vide. GO (MS) No. 57/2011/ID dated 25-02-2011) shall be invoked as and when required. The recovery and reclamation of the mined /quarried land shall be made mandatory and be declared as the responsibility of the mining company. The mining policy fixes the responsibility of reclamation of mined areas to mine owners failing which suitable clause of penalty may be imposed on the mine owners
m. Co-ordination/Integration/Interfacing of Departments/Agencies
A mining/lease or permit issuance currently needs clearing by the Gram Panchayath, revenue department, M&GD, Directorate of Environment and Climate Change, State Pollution Control Board etc.
This is a serial process and incurs great deal of time/delay. Therefore the government shall modify this process suitably, for e.g., by a single window clearance system at the district level.
CONCLUSIONS
The Scientific Mining Policy of Kerala proposed in the foregoing paragraphs is an approach addressing, the states need for natural extractable raw materials, like minerals, rock and aggregates manufactured from rocks.
Secondly, and equally importantly, the scientific mining policy shall bestow diligent care and committed concern on the varied aspects of earth’s environment viz., water, air, soil and ecosystem (WASE) and aim to minimise or eliminate the impairments done, if any.
Thirdly, the new scientific mining policy enshrines the Social Impact Assessment as one of the three pillars of the policy.
Within the framework Scientific Mining Policy is included modernisation of the systems and processes in the issuance of leases/permits, closure plan adoption of new technologies, also considerations and with-in the state creation of HR or technical manpower.
Application of modern technologies like GIS based geodatabase of the mineral and rock resources of the state shall ensure transparency and expedite decision making.
Equally important is the digital photogrammetric monitoring operating mines and quarries to precisely asses and estimate the off take of the extracted material and hence immensely afford plugging of revenue/royalty loss to the state.
Alternatively, a new process of plugging revenue loss by taxing the end-user, as proposed and recommended in the ABANDONED QUARRY REUSE REPORT can be very efficient and transparent. This process is now in practice in the states of Odisha and Gujarath.
A single window clearance of lease/permit for opening new Mines and Quarries is considered extremely effective instead of the serial process of approval by at least 10 or more agencies of the government.
There shall be a state level Appellate authority to review the decisions at the District level.
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(Compiled by Dr.Thrivikramji.K.P., Chairman of the Committee appointed by the State Planning Board, vide (Vide:Order No 7037/KSPB/ 13/I&I/SPB Dtd. 26-2-2014)
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