India’s top court orders revision of National Mineral Policy by 2017 end

<p>The Supreme Court of India has directed the government to consider revising the National Mineral Policy by December this year so as to better regulate the domestic mining sector which includes coal, iron ore, bauxite mining along with other industrial minerals. The revision would also stop illegal mining activities thereby regularising supply-side dynamics and import dependence of many minerals.</p> <p>Prime Minister Narendra Modi has ambitious plans to expand the country&rsquo;s industrial metal capacity as part of his various infrastructure overhaul programmes. A revised National Mineral Policy would help in this direction by making it easy for the investors to get approval for mining leases.</p> <p style="text-align: center;"><img style="vertical-align: middle;" src="http://www.alcircle.com/uploads/images/bauxite_Aug3.png" alt="News" width="517" height="290" /></p> <p>A two-judge panel of the Supreme Court, led by M.B. Lokur, said the policy effective since 2008 &ldquo;seems to be only on paper and is not being enforced perhaps due to the involvement of very powerful vested interests or a failure of nerve.&rdquo;</p> <p>In 2015, India embraced competitive auctions as its long-term approach to resource allocation scrapping the earlier system which had opened up multiple avenues for unscrupulous activities. Along with the auctioning of exploration and mining rights, the cabinet also approved a national mineral exploration policy last year.</p> <p>{googleAdsense}</p> <p>India ranks fifth in the list of countries having highest bauxite reserves. &nbsp;As per UNFC system, resources of bauxite in India are placed at about 3,480Mt which is about 5% of the world total. These resources include 593Mt reserves and 2,887Mt remaining resources.</p> <p>Over the years, India&rsquo;s bauxite ore production has remained reasonably in line with its aluminium output and is estimated to rise this year buoyed by increasing domestic demand. However, investors remain sceptical about the country&rsquo;s tightening environmental restrictions, illegal mining practices, and rising socio-political issues which may come in the way of attaining the production targets set for the coming five years period.</p>