The Ministry of Mines is evaluating the possibility of the open acreage approach for mineral exploration in the country. This proposal is in line with the Open Acreage Licensing Policy introduced by the Ministry of Petroleum and Natural Gas.

At an industry interaction organised by the Federation of Indian Chambers of Commerce & Industry, Secretary, Ministry of Mines, Arun Kumar said, “We are conscious of OALP and our four-member team has gone over to the Petroleum Ministry today to understand if we can get some learning from them.”

But the Open Acreage Licensing approach for minerals will not be in line with the one that has been enabled for petroleum and natural gas, Kumar said. “In oil exploration, the minimum block size is 350 km square and the level of risk in oil is much higher than in mineral, so both systems cannot be compared off the hook…So it is not that I am debunking the system, but any miner would know the difference between petroleum and mineral exploration. We will study the system and then we will see.”

The calls for an open acreage licensing model in mineral exploration gained momentum after the Oil Ministry enabled the same for petroleum and natural gas in the country. The OAL approach will allow explorers to monetise any minerals that are excavated from a contracted area. The government will call bids on the portion of the revenue proceeds from the sale of such minerals.

Minister of State (Independent Charge) for Mines, Piyush Goyal, was also present at the event. Addressing industry representatives on concerns regarding varying levies on mineral exploration he said, “We will speak to the states regarding this.”

Related Topics
comment COMMENT NOW