Indian Parliament Introduces New Mining Guidelines

Indian parliament last week introduced a new mining policy it hopes will attract foreign and domestic investment, but the new policy made no mention of changes to royalty payments demanded by mineral-rich states. The policy was approved by the federal government after nearly two years’ controversy as state and federal politicians wrangled over key details. It is likely to be checked in parliament, followed by a legislative amendment to existing mining laws. It aims to shorten the time it takes for mining leases to be granted to about six months to a year, a process that can currently drag on for years. But it skirted the issue of royalties. Under the new guidelines, foreign and domestic investors should find it easier to invest in the exploration and mining of gold, diamonds and metals like copper and zinc, and prospecting companies will automatically obtain a mining licence. Only 10 percent of India's land mass has been explored for its mineral wealth, and industry officials say this is largely due to the mass of paper work involved. "Prospecting and mining shall be recognised as independent activities with transferability of concessions playing a key role in mineral sector development," the document said. Until now, overseas prospecting companies have avoided coming to India because they could not sell the data they mapped, and could only utilise the information if they mined themselves.