The Union Mines ministry has initiated discussions with the Ministry of Environment, Forests and Climate Change to keep exploration activities out of the purview of forest clearance procedures.

Usually, one of 50-odd prospecting or exploration activities are said to be successful, that is, mining commences in one of the areas where exploration or drilling activities are carried out.

Restoration of forest

The Mines Ministry is also of the view that forest areas where drilling is carried out can be restored back to their original.

According to Alok Tandon, Mines Secretary, “active consultations” are underway and “public comments have also been sought”. “We have requested the Ministry of Environment and Forest to consider that exploration activity not be treated as diversion of forest area. So we are in active consultation with them. This is part of the Cabinet note and comments have been sought on this from the public, too,” he said on the sidelines of the 56th Annual General Meeting of the Federation of Indian Mineral Industries (FIMI) here on Friday.

Sumit Deb, Chairman and Managing Director of NMDC–the country’s largest iron-ore miner–will be the new President of FIMI.

According to Tandon, on an average only one out of 25-50 cases of exploration would result in the discovery of mineral. Which means, only in one case would there finally be a diversion of the forest land. “So, if we exclude exploration activity and not consider it as diversion of forest area or a non-forestry activity then exploration activity can move forward,” he explained.

Tandon added that the Mines Ministry is working on a separate policy for giving incentive for the promotion of these deep-seated minerals.

Procedural reforms needed, too

During the first six years of the auction regime (FY16 to FY21) as many as 108 auctions were carried out by the States and from FY22 onwards, 95 auctions have taken place. “The growing momentum of the auction regime can fetch rich dividends in terms of mineral production growth. However, the time taken to bring auctioned mine into production needs to be reduced further by procedural reforms,” he said.

The result of the Centre’s intervention through District Mineral Foundation is “quite encouraging”. Around ₹64,000 crore have been collected from DMF at all-India level, of which ₹33,000 crore have been spent on completed and on-going projects.

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