Professional Documents
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Block
4
MINERAL EXPLORATION AND MINERAL ECONOMICS
UNIT 13
Basics of Exploration 151
UNIT 14
Exploration Methods 169
UNIT 15
Mineral Economics 203
Glossary 221
145
Course Design Committee
Prof. Vijayshri Prof. Pankaj Kumar Srivastava Prof. Benidhar Deshmukh
Former Director University of Jammu, Discipline of Geology
School of Sciences Jammu School of Sciences, IGNOU
IGNOU, New Delhi
Prof. J. P. Shrivastava (Retd.) Prof. R. Krishnamurthy Dr. M. Prashanth
Centre of Advanced Study in Geology Indian Institute of Technology Discipline of Geology
University of Delhi, Delhi Roorkee School of Sciences, IGNOU
Prof. R. Pavanguru (Retd.) Prof. Kiran Pal Verma (Retd.) Dr. Kakoli Gogoi
Osmania University Geological Survey of India Discipline of Geology
Hyderabad Faridabad School of Sciences, IGNOU
Production
Mr. Rajiv Girdhar Mr. Sunil Kumar Mr. Hemant Kumar
A.R. (P), MPDD, IGNOU A.R. (P), SOS, IGNOU S.O. (P), MPDD, IGNOU
Acknowledgement: We gratefully acknowledge Prof. Meenal Mishra, for thoroughly reading the course material and
providing her valuable suggestions to improve the course. Ms. Savita Sharma for preparation of CRC and some of the
figures. Ms. Sujang Khiamniungan for preparation of the maps of Units 9, 10, 11 and 12.
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BGYET-141: ORE GEOLOGY AND
INDUSTRIAL MINERALS
Block 1 Introduction to Ore Geology
Unit 1 Basics of Ore Geology
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BLOCK 4: MINERAL EXPLORATION AND MINERAL
ECONOMICS
The Earth’s crust is made up of different kinds of rocks which vary in their physical
properties. Most of the deposits which were exposed to the crust or which were close to near
the surface of the crust have been already discovered and are either mined or being mined.
It has become increasingly more difficult to find out a new mineral deposit as most of them
are expected to be deep-seated and concealed. The discovery of new mineral deposit is
very important not only to compensate depletion of resources due to mining, but also to add
new resources of the nation. Geological exploration is carried out in many steps with each
step followed by a sequence of different activities and geological concepts. The purpose of
geological exploration is to find out an economic mineral/fuel deposit at minimum cost and
minimum time-frame. Properties of earth such as magnetism, compressibility, density,
rigidity, etc. can be measured by the use of suitable instruments on the earth surface and
from the results recorded, the arrangement and distribution of the underneath rocks can be
ascertained.
Block 4: Mineral Exploration and Mineral Economics comprises three units. The block
will acquaint you with principles and stages of mineral exploration. We will discuss various
exploration methods viz. geological, geophysical, geochemical, geobotanical and remote
sensing methods. We will also discuss the national mineral policy and mineral conservation
laws.
This block consists of 3 units.
In Unit: 13 Basics of Exploration, you will get acquainted with the basics of geological
exploration, principles and stages involved in the mineral exploration along with the major
methods of exploration in brief.
In Unit: 14 Exploration Methods, we will familiarise you about different surface and sub-
surface mineral exploration methods that involve various activities to identify/ quantify and
extract economically hidden deposits to the surface. We will also discuss their importance
and limitations in various stages of each mineral exploration methods.
In Unit: 15 Mineral Economics, you will get aware with the principles of mineral policy and
development. Further we will also discuss the salient features of India’s Mineral
Conservation Rules and define Sea bed mining laws in India.
Expected Learning Outcomes
After studying this block, you should be able to:
explain the prospecting guides which lead to the discovery of buried ore deposits;
discuss principle of mineral exploration;
identify various stages involved in the mineral exploration;
discuss various exploration methods viz. geological, geophysical, geochemical,
geobotanical and remote sensing methods;
appreciate concepts of National Mineral Policy of India; and
define Sea Bed Mining laws in India.
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In order to evaluate your learning while reading the self-learning material of this block, we
have provided self-assessment exercises under the caption “Self Assessment Questions
(SAQ)” at a few places and at the end “Terminal Questions” in all units of the block, which
invariably end with answers to the questions, set in these exercises. You should attempt the
exercises yourself and not be tempted to look up the answers given under the caption
“Answers” beforehand. It should be noted that the check your progress is provided as study
tools to help you keep on the right track as you read the units.
We advise that as you read the units, jot down important points in the space provided in the
margins of each page. In fact, broad margins in the booklet are provided for you to write your
notes on. Make your notes as you work through the materials. This will help you prepare for
the term end examination (TEE) and also in assimilating the content.
Your feedback pertaining to this block will help us undertake maintenance and timely
revision of the block. Send your feedback to us to the address given below or e-mail to
kakoligogoi@ignou.ac.in or mprashanth@ignou.ac.in:
The Course Coordinator BGYET-141
Discipline of Geology
School of Sciences
IGNOU, Maidan Garhi
New Delhi – 110068
India
We hope that you would enjoy reading the self-learning material.
Wishing you success and all the best in this endeavour!!
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UNIT 13
BASICS OF EXPLORATION
Structure____________________________________________________
13.1 Introduction 13.4 Principle of Mineral Exploration
Expected Learning Outcomes Brownfield Exploration
13.1 INTRODUCTION
The economic growth as well as security of any nation, depends upon the availability of continuous
flow of minerals, metals and fuels. Therefore, the discovery of new mineral deposit is very important
not only to compensate depletion of resources due to mining, but also to add new resources of the
nation. The scientific method for locating or finding new mineral deposit is called exploration. The
main aim of the geological exploration is to discover mineral deposits of appropriate size and grade
which can be profitably mined from the Earth. The exploration, however, is expensive with high risk
and often takes several years before an ore body can be defined and potentially mined.
Till now, you have understood that finding a new mineral and or fuel deposit as well as finding out
extension of the existing deposits are important to sustain industrial growth. You are already aware
that a mineral deposit is a natural concentration of one or more than one mineral or metal
assemblage within the host rock in a limited area and is too small in size in comparison to the Earth
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crust. The ore body in a deposit generally contains a definite shape with finite
quantity (tonnes) and average quality (grade) The shape varies according to the
complex nature of the deposit such as layered, disseminated, veins, pockets/
lenses and folded/deformed. The deposit may be exposed on the surface or can
be hidden below the overburden of sediments or barren rock cover, alluvium.
Most of the deposits which were exposed on the crust or which are close or
near to the surface of the crust have been already discovered and are either
mined or being mined. It has become increasingly more difficult to find out a
new mineral deposit as most of them are expected to be deep-seated and
concealed. Geological exploration is carried out in many steps with each step
followed by a sequence of different activities and geological concepts. The
purpose of geological exploration is to find out an economic mineral/fuel deposit
at minimum cost and minimum time-frame. Various geological features and
concepts provide clues that guide these efforts in locating a deposit are varied.
In this unit, we will try to understand the basics of geological exploration,
principles and the stages involved in the mineral exploration along with the
major methods of exploration in brief.
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The presence of oxidised minerals on the surface gives clue as to what lies
beneath it. For example, the sulphide minerals, on coming in contact of water
get oxidised very easily and their metal content is carried away in solution or
else fixed as stable compounds in the form of oxides, carbonates, silicates
elsewhere, leaving behind iron rich rock on the surface. Limonite is the term
used for rock/ore containing several hydrous iron oxide minerals which often
predominate the weathered outcrop of the ore deposit. Under favourable
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conditions, colour, texture and structure of the limonite can furnish valuable
clues about the nature of unweathered mineralisation lying beneath it.
Gossan: The extreme oxidation and leaching of the sulphide body produces
exceedingly ferruginous rock, the product is known as gossan (Figs.13.2a and
13.2b). The gossans are characterised by different honeycomb patterns called
as boxwork structure/texture (Fig. 13.3) and colours. The boxwork texture vary
from brecciated, banded, diamond mesh, triangular, cellular, contour, sponge,
and colloform textures (Fig. 13.4). The colours of a gossan significantly varies
from red, yellow, brown to black. This colour is due to the iron hydroxide and
oxide mineral phases. The depth of gossan may extend up to hundreds of
meters. The interpretation of gossans and leached capping of rocks is one of
the earliest recognised guides to the sulphide ore deposit and has led to the
discovery of many of the important deposits. The Zn–Pb deposit of Rajpura-
Dariba (Rajasthan) was discovered through gossan. Some of the diagnostic
features of gossans are listed in Table -13.1.
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Fig. 13.3: Field Photograph showing box work structure. (Source: www.gsi.gov.in)
Wall Rock Alteration: There are two main divisions of wall rock alteration:
hypogene and supergene.
• Hypogene alteration is caused by ascending hydrothermal solutions.
• Supergene alteration is caused by descending meteoric water reacting with
previously mineralised ground.
Noticeable mineralogical changes might take place laterally within hydrothermal
(epithermal and mesothermal) deposits. In case of a primary mineralisation at a
depth, one may find a zone of enrichment which may serve as a guide. In case
of a deposit resulting wall rock alteration involving introduction of certain
chemical elements and at the same time removal of others may exhibit
mineralogical changes in the pre-existing rocks. These mineral assemblages
may form alteration haloes starting from ore body to outwardly which are
characteristic of the deposit. The appearance of an altered rock may be the first
sign of approaching ore body. Wall rock alteration is widely used effectively as
a guide to hydrothermal ores and porphyry copper deposit. Such alteration
zones associated with the porphyry copper deposit are shown in Figure 13.5.
13.3.3 Stratigraphic and Lithological Guides
Some mineral deposits are hosted exclusively by specific rock types. Such
litho-units/rocks constitute an ideal stratigraphic guide and lithological guide. If
the stratigraphic unit/ sedimentary beds host ore body, it is called as
stratigraphic guide. If the igneous rock hosts the ore body, the term
lithological guide is used instead of stratigraphic guide.
The syngenetic mineral deposits are formed by the same process and at the
same time of the geological time frame as the enclosing rocks. Such sequences
act as the stratigraphic/lithological guides. This includes many sedimentary
mineral deposits of coal, petroleum, bauxite, phosphorite (Fig.13.6), iron and
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Fig. 13.5: Hydrothermal alteration zones associated with the porphyry copper
deposits. Chl- chlorite, Epi- epidote, Carb- carbonate, Q- quartz, Kaol-
kaolinite, Alun- alunite, Ser- sericite, py- Pyrite, K-feld- potassium
feldspar, Bi- biotite, mag- magnetite, anh- anhydrite.
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SAQ 1
a) What is prospecting?
b) What do you mean by geological guides?
c) What do you mean by gossan?
d) Give examples of indicator plants.
You have already studied that the mineral exploration is the process to find out
economic mineral/fuel deposit hosted in the surrounding rocks at a minimum
cost and a minimum time-frame. The general principle of mineral exploration is
to collect various geological data from several places, and extrapolating
this data-set over a larger area to develop a conceptual model for the mineral
deposit. Exploration is progressed in various stages with each stage having
increased sophisticated and advanced techniques. However, it is very rare to
find out sufficiently enriched ore bodies, and so most exploration programmes
stop after the first/couple of stages. The exploration pyramid shows that with
every increasing step from the initial desk study research chances of getting
economic deposit becomes less and less likely (Fig. 13.7).
The exploration geologist uses existing geological data from the known ore
body by enhancing the reserve in strike and dip continuity of a known ore-body
or in the vicinity of an existing mine. The risk in brownfield exploration is
considerably lower than in the greenfield exploration. The Indian example of
the brownfield type is the rediscovery of world-class largest and richest zinc-
lead ore body at Rampura-Agucha during 1977. The other successful examples
of this exploration type are the discovery of the Ridgeway porphyry Cu-Au
deposit below 450 m of overlying sediment in Australia and Merlin Cu-Mo-Au
prospect in Australia in 2009.
13.4.1 Greenfield Exploration
Greenfield exploration essentially comprises of a terrain where the existence of
any ore deposit is not known. These areas are also called virgin areas as they
have never been subjected to any exploration activities before. Greenfield
exploration is carried out in the virgin geological terrain where no pre-existing
mines or prospects (in contrast with the brownfield exploration), is conducted in
the vicinity of existing mines. In other words, this type of exploration is a result
of a broad based grassroot conceptual model-based exploration programme
well away from the known ore-bodies or known mineralised belts. The world’s
largest and richest Pb-Zn deposit in the Broken Hill (Australia) was discovered
through greenfield exploration in 1883. Another example is the discovery of
knowledge-based basin model for the Kanpur-Maton-Jhamarkotra rock
phosphate deposit in the Lower Aravalli Formation in Rajasthan during 1968.
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1. Reconnaissance Stage
Reconnaissance is the preliminary step in any of the mineral exploration
programme for virgin area. It is a regional stage study of already identified
areas to study enhanced mineral potential or targets on a regional scale.
Various activities in the reconnaissance survey include:
• regional geological mapping on 1:50,000 or 1:25000 scale;
• remote sensing and airborne geophysical survey;
• preliminary geochemical survey by chip/grab sampling of rocks: and
• weathered profile and pitting/trenching to expose mineralised zone/s an at
ideal location.
The petrographic and ore mineralogical studies help to determine rock types
and ore mineral assemblages. The regional scale favourable features and
magnetic anomalies/ gravity anomalies etc. can be delineated with the help of
remote sensing and airborne geophysical methods.
The main objective of this reconnaissance survey is to explore the entire larger
area within stipulated time frame and to reduce it by identifying the target area
(probable mineralised area) for further exploration in the next stage. The targets
are ranked on the basis of its geological evidences worth for further
investigation towards identification of deposits. Normally, the reserve
calculation is not required at this stage.
2. Prospecting Stage
Next stage after reconnaissance survey is the prospecting stage and is
generally conducted for smaller areas (up to few tens of sq. kms.). The
prospecting is the systematic searching process carried out for a mineral
deposit by narrowing down areas of promising enhanced mineral potential
identified during reconnaissance stage. Different activities at this stage include:
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• outcrop identification;
• detailed geological mapping on 1:25,000 or 1:12,500 scale;
• ground geophysical; and
• geochemical orientation survey/studies.
The sampling of rock/soil/stream sediments/debris is carried out at closer
intervals (Fig. 13.9). The pitting and trenching, and limited drilling may also be
done at this stage to expose the ore- body. The diamond drilling on wide
spaced section lines (at 100-1000 m depending upon mineral types),
petrographic, and ore mineralogical studies and borehole geophysical logging
may also be part of this stage.
The main objective is to be more definitive exploration to identify a deposit as
the target for further definite exploration. Based on interpretation of geological,
geophysical and geochemical results, reserve calculation is done to assess the
ore deposits.
3. Preliminary Exploration
Preliminary exploration is the initial delineation of an identified deposit over a
comparatively very small area (less than a sq.km to a few sq.kms). At this
stage, the large-scale geological mapping on 1:5000 to 1:1000 scale is
executed. This is done by linking of prepared maps with topo-grid and
assessment of lithology, structure, mineralisation. Detailed litho-geochemical
survey, pitting, trenching and fresh bed rock and channel sampling on all
outcrop sections is done. Drilling on systematic pattern up to 50 to 120 m depth
and at an interval of 50 m – 500 m strike length (e.g., 50 m for gold, 200 m for
base- metals and 400 m – 500 m for limestone) and borehole geophysical
survey is also done. Geophysical survey may also be done, if needed. The
detailed chemical analysis of samples for important trace elements with high
precision, bulk sampling for laboratory and bench scale beneficiation tests are
some of the important aspects of this stage.
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The main objective of this stage is to establish the major geological features of
the mineral deposit like economically viable zones, their strike length, width and
depth. These are identified on the basis of surface studies and drilling data.
These studies provide a reasonable indication of continuity of an ore-body. It
also provides useful information about shape, size, structure and grade of an
ore body.
4. Detailed Exploration
We have learnt in the stages of exploration that the exploration generally starts
with low impact activity, including desktop research and field inspections, to
determine whether signs of minerals/ fuel deposits are present. This is followed
by more intense and costly techniques like geochemical sampling, drilling and
geophysical surveys. Every deposit has its own special features which control
the choice of exploration methods.
You will study about types of exploration methods in details in Unit 14.
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Learners, you have learnt about the principles and stages of mineral
exploration. Now, spend a few minutes to perform an exercise to check your
progress.
SAQ 2
a) What is the difference between Brownfield and Greenfield
explorations?
b) Write different stages of mineral exploration.
c) List out various activities that are carried out in reconnaissance survey.
13.6 ACTIVITY
• Make a poster, showing various activities carried out in physiographic and
structural guides.
13.7 SUMMARY
In this unit, we have discussed various aspects of mineral exploration. Let us
summarise it now.
• The scientific method for locating or finding new mineral deposit is called
exploration. The major aim of the geological exploration is to discover
mineral deposits of appropriate size and grade which can be profitably mined
out from the Earth.
• The clues which lead to possible discovery of the mineral deposits are called
as geological guides. There are different types of guides like physiographic,
lithological and stratigraphic guides, mineralogical guides, structural and
geobotanical guides etc.
• Gossan is extremely oxidised weathered ferruginous rock, formed due to
oxidation and leaching of the sulphide body. It is characterised by different
boxwork textures as well as colours.
• Exploration activity is broadly undertaken in four stages, however with each
stage following a sequence of different activities.
• A reconnaissance survey is to explore the entire larger area within the
stipulated time frame and to reduce it by identifying the target area (probable
mineralised area) for further exploration in the next stage.
• Prospecting stage is more definitive exploration to identify a deposit as the
target for further definite exploration.
• Preliminary exploration stage is to establish the major geological features of
the mineral deposit such as economically viable zones, their strike length,
width and depth.
• Detailed exploration stage is to delineate a detailed three-dimensional ore
body through closely spaced sampling from outcrops, trenches, boreholes,
shafts and tunnels.
13.11 ANSWERS
SAQ 1
a) Prospecting involves searching an area for mineral deposits especially by
drilling and excavation with the view to mine it at a profit. A geologist
prospecting an area is looking for surface exposure of minerals by
observing irregularities in colour, shape or rock composition. Prospecting is
very often followed immediately by exploration.
b) Many geological structures such as shear zones and lineaments are
favourable locales for the deposition of mineral deposits. These are the
initial clues which help the exploration geologists to understand where to
look for a specific mineral deposit. These clues which lead to the possible
discovery of the mineral deposits are called as guides.
c) When the extreme oxidation and leaching of the sulphide body produce
exceedingly ferruginous rock, the product is known as gossan. The gossans
are characterised by different honeycomb patterns called as box work
texture and colours.
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UNIT 14
EXPLORATION METHODS
Structure______________________________________________
14.1 Introduction Self-Potential Method
14.1 INTRODUCTION
In the previous unit, you have studied about basic principles and stages of mineral exploration.
Mineral exploration has its own characteristic and is dominated by “High Risk-High Reward”
proposition as the occurrence of mineral deposit is not uniform worldwide. In this unit, you will learn
about different mineral exploration methods that involve various activities to identify/ quantify and
extract economically hidden deposits to the surface. The physicochemical properties of the minerals
like specific gravity, electrical conductivity, magnetic susceptibility, radioactivity, propagation of
seismic waves and mode of occurrence of minerals enables in locating ore deposits of economic
interest.
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maps provide useful details regarding rock outcrops and their boundaries,
vegetation, geomorphology, lithology and lithological variations of the area
under investigation. Various surface exploration methods viz. geological,
geochemical, geobotanical, photogeology and remote sensing are carried out
during preliminary & detailed survey.
Let us discuss them in the following sections.
14.3.1 Geological Exploration
The occurrence of ore bodies are mainly controlled by geologic setting with
specific structural and tectonic setting and their spatial distribution over a wide
area.
Selection of most prospective area for exploration requires a sound geological
knowledge which includes structure of the area, age of the rocks, rock types
and basin modelling etc. Good acquaintance is required to make perfect
predictions and draw parallels between an established ore deposit and the
unknown potential mineralisation sought after exploration. The broad activities
involved in geological exploration are:
• to prepare a field database from different sources; and
• plot in geological base map.
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Fig. 14.2: Topographic maps (a) 1:250000; (b) 1: 50000 and (c) 1: 25000 scales.
(Source: www.surveyofindia.gov.in)
The activities carried out during geological exploration can be subdivided into
three main categories namely regional scale, belt scale and deposit scale.
• Regional Scale: Surface features, like broad geological contacts,
existence of shear zones and weathering features are regionally plotted in
the base map. Study of aerial photographs, satellite images, airborne
geophysical data acquisition, wide spaced soil sample, grab and chip
sampling of surface exposures for broad geochemical surveys and
weathering profiles are collected and recorded.
• Mineral Belt Scale: Geological base map survey is scaled up to 1:25000
or 1:10000 scales using theodolite and GPS survey instruments. Detailed
study of geological structural setting such as stratigraphy and
identification of host rock, surface shows of mineralisation, existence of
ancient mining and smelting signatures are recorded and plotted in the
base map. Additionally, ground geophysics, geochemistry, pitting,
trenching data are acquired for data integration.
• Mineral Deposit Scale: After integrated study of the area, maximum
information of the mineral deposit is acquired by triangulation station
survey. Thereafter, base map in larger scale of 1:5000 or 1:1000 is
prepared. Additionally, closely spaced surface drilling, trenches, pits and
boreholes is carried out along and across the mineral body to delineate
and extension of the mineral deposit (Fig. 14.3).
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Fig. 14.3: Surface map of the Zawar deposits showing Balaria, Mochia Magra,
Baroi, and Zawarmala mining blocks, India. (Source: Haldar, 2018).
iv) River and glacial floating: River float tracing consists of finding and tracing
the ore bearing rock fragments by estimating travel distance of the float on
the basis of degree of wearing along the traverse line of the river. If the float
is absent in the alluvium, and then the search will continue towards up slope
direction. Shallow pits / trenches are dug at the spot where the last float was
traced (Fig. 14.4).
Similarly, in glacial float tracing, a systematic search of ore bearing boulders
along the direction of glacier movement are traced. This is done by observing
the orientation of terminal moraines, eskers and drumlins.
water]. This is done for tracing of metal pieces and fragments of ore minerals,
which have been migrated from the outcrops in the up slope area of the river.
Systematic panning helps to trace the primary mineral deposit based of the
concentration of ore fragments in each panning spot (Figs.14.5a and 14.5b).
camera above the ground with specific technique and can be interpreted in the
laboratory using certain optical instrument.
Aerial photographs are generally classified into two types: (a) vertical and (b)
oblique; Vertical photographs are taken by a camera pointing vertically
downward in most of the cases. Whereas oblique photographs are taken at an
angle to obtain permanent record of cliffs and similar features which are difficult
to access.
During acquisition of aerial photographs, a camera mounted airplane takes a
series of photographs in its flying directions on regular parallel lines over the
interested area (Fig. 14.6).
Fig. 14.6: Typical aerial photography survey to obtain full stereo coverage.
(Source: Redrawn from Roger, 2010)
Broadly two types of optical equipments are used for aerial photo interpretation,
namely:
• Pocket field stereoscope for quick view of the field survey data (Fig.
14.7a), and
• Mirror stereoscope (Fig. 14.7b).
These instruments have binocular eyepieces to get enlarged image view.
These interpreted photo data are transferred into a scale corrected geological
base map for generation of a photogeological map. Now a days, multi-image
interpretation using satellite images with air photos have been carried out in
mineral exploration. Additional equipment, such as image analyser and colour
additive viewers are utilized in the exploration program to analyse multispectral
photos.
• Active Sensors: They emit energy and measure the intensity of energy that
gets reflected from the object or area under investigation. A few examples of
active sensors are Radar (microwave) and Lasers (Fig. 14.9).
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Fig.14.9: Schematic diagram showing active and passive sensor position with
respect to Sun and Earth for data collection.
The digital data is processed and converted into an image with the help of
software, giving rise to imagery for interpretation and decision making. After
acquiring raw satellite images, the processes viz. image restoration, image
enhancement and data extraction are carried out before their interpretation and
integration with other geological data. After digital processing of satellite
images, extraction of geological information is carried out by two approaches,
namely spectral approach and photogeological approach.
1) In spectral approach, unique spectral reflectance characteristics of every
identical unit in the image data are used to separate them from each other.
2) In the photogeological approach, different photogeological elements like
topography, erosion, tone, texture, drainage pattern, vegetation, and land
use are captured to infer the presence of topographical expression,
geological structure or lithology.
iii) Geographic Information System (GIS)
Geographic Information System (GIS) is a system that can handle a wide range
of spatial and georeferenced data. It can collect, store, organise, integrate and
analyse geological, geobotanical, geophysical, geochemical, remote sensing
and cultural data of same area. GIS system can model the acquired data to
produce a composite map required for geological interpretation (Fig.14.10).
Data received from various sources are directly entered into GIS system using
DBMS, RDBMS and SQL software. They can be stored and can provide ways
to modify, revise, refine, update the database. It can also export the data to
other systems in a common (ASCII) format as per requirement.
• GIS for Mineral Exploration
Geographic Information System (GIS) is a robust technique for identification of
the target of mineralized zones based on the modelling using overlay analysis.
This kind of analysis analyzes and interpolate multiple data received from
various sources pertaining to same area or similar object either in vector or
raster mode. They are stored in GIS system as individual data file or a layer. A
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Fig. 14.11: Overlay analysis with multilayer data of Rajpura- Dariba base metal
belt for identification of drill targets by GIS application. (Source:
Redrawn from Haldar, 2018)
GIS manipulates and overlays the information derived from different data files
simultaneously and interrelate all geocoded source data files during
interpretation. This generates a thematic map for identification of the target area
for exploration of sulphide deposits in Rajpura-Dariba mineral belt.
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Fig. 14.12: Typical geochemical cycle. (Source: Redrawn from Gandhi and Sarkar,
2016)
• Geochemical Prospecting
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Elemental dispersion can give rise to two types of haloes: primary and
secondary. Halo is a region surrounding an ore deposit in which the ore
concentration is intermediate between that of the ore and that of the country
rock.
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Rn U, all types
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ii. Stream sediment surveys: Stream sediment sampling is the most widely
used tool in reconnaissance geochemical survey. The survey is based on
the chemical analysis of samples of stream sediments from drainage course
that led to discover mineral bodies at a greater distance. The stream
sediments comprise of clays, detrital fine grained rocks, organic matter,
inorganic colloidal and clast with iron and manganese coatings. All these
components of the sediments exhibit different mobility (ability to move
freely). The detrital grains enriched in ore(s) and indicator elements are
deposited downstream. However, following the path of increasing the
elemental concentration(s) upstream lead to locate the mineralisation target.
This is the simple technique that allows rapid evaluation of areas at
relatively low cost (Fig. 14.15).
iii. Lithogeochemical survey: This survey is conducted to collect samples
from unweathered host rock to identify primary dispersion and trace
elements, association which are different from country rock. Samples are
collected from fresh outcrops, wall rocks and drill holes.
iv. Glacial drift survey: The drift survey is conducted to collect samples of
debris deposited by moving ice in a glaciated terrain. The drift sequence is
examined for the presence of heavy minerals, mineralised clasts, relative
abundance of major, minor and trace elements. This is helpful in tracing
back to the original place of the source by estimating the distance travelled
from the sampling point.
v. Hydrogeochemical survey: Sampling of ground water, surface water and
hot spring water are conducted in this method. Ground water provides
information about occurrence of Cu, Zn, Pb, S, Mo, Sn, Ni and Co caused
by chemical weathering, oxidation and leaching of overburden. Hot spring
water are characterised by probable locations of B, Li and Hg
mineralisation. Changes of elemental values of acquired water sample
depend on time and season.
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Fig. 14.15: Distribution of samples from the Sonapet Valley area, Jharkhand,
showing gold contents. (Source: Redrawn from Talapatra, 2006)
B) Non-conventional Methods
Non-conventional geochemical exploration techniques are used in areas where
the conventional exploration techniques are not applicable especially for deeply
buried deposits covered by transported soil, desert sands, talus or debris etc.
Some of the non-conventional geochemical exploration techniques are:
1) Vapour or gas survey,
2) Electrogeochemical,
3) Radiogenic isotope geochemistry,
4) Polymetallic poly nodule survey,
5) Hydrocarbon geochemical survey, etc.
Following are the major components of the geochemical survey:
bags. The rock chips are kept in cloth bags with code numbers indicating
project name, location, and sample type with description. Geological
observations and sketches are recorded in a field notebook. The sample is
further reduced to 50g by drying, screening, grinding, coning, and quartering
at the camp site. Each sample of quantity of 1-5 gm. is sent to laboratory for
chemical analysis and remaining sample is preserved for future reference.
Water is collected in a specialised clean, hard, polyethylene sampling bottle.
The quantity of surface water and groundwater sample varies between 100
and 1000ml depending upon the number of elements and type of analysis
(as per requirement).
ii. the maps emphasise the regional elemental distribution pattern at local or
regional scale.
Fig. 14.16: Principal component analysis (PC1 vs PC2) of Scotty Creek sandstone
samples from Kim ore body drill fan dataset. (Source: Redrawn from
Fisher et.al. 2014)
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Table 14.2: Common indicator plants (Source: Sen and Guha, 1993).
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Learners, you have learnt about the surface exploration methods. Before
discussing about the subsurface exploration methods, spend a few minutes to
perform an exercise to check your progress.
SAQ 1
a) List the broad activities of geological exploration.
b) What do you mean by passive and active sensors?
c) What are the pathfinder elements?
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Fig. 14.18: Sketch showing an excess mass in the crust that locally enhance the
gravity field producing gravity high (positive anomaly).
The magnetic survey uses high precision magnetometer that measures the dip
and the declination, which is operable in air (airborne), sea (marine) and land
(ground). Different types of magnetometers like, fluxgate, proton-precision,
overhauser are used in exploration survey. Airborne is cost effective and is
applicable to cover large area. Marine magnetic survey is used for investigation
of ocean floor polymetallic nodules and the ground magnetic survey is suitable
for small area coverage.
For example, the zinc-lead mineralisation across Rampura-Agucha supergiant
deposit is shown in Fig. 14.20, wherein the conductors that fall in the vicinity of
structurally favourable locales endorsed by gravity and magnetic anomalies.
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Fig. 14.20: Gravity and magnetic profiles over Rampura-Agucha mineral belt,
India. (Source: Gandhi and Sarkar, 2016)
3. Electrical Method
All electrical methods are dependent primarily on the properties of resistivity
and conductivity of subsurface rock masses to propagate electric current. Wide
variety of method includes either due to naturally occurring electrical field within
the earth or by inducing artificially generated current through the ground.
Different techniques of electrical methods are available that employ different
instruments and procedures as shown in Table 14.3.
Table 14.3: Different techniques of Electrical Methods.
Sulphide
veins, Mining, geothermal, Large sulphide
Groundwater, Sulphide ore,
Graphite, petroleum, ground water disseminations,
Sulphide ore graphite deposits
ground exploration graphite
water
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Fig. 14.22: (A) Telluric Current flow lines in a lava of low resistivity resting on a
zone of high density; and (B) the potential difference produced by
these currents L= Electrode spacing, Zs = thickness at satellite station,
Z0= thickness at base station.
Figs.14.22a and 14.22b illustrates that the change in the thickness (ΔZ) is
approximately proportional to the change of current density (Δµ) between the
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base station and the satellite station. The telluric current survey is done in the
initial stage of oil exploration in areas where there is less information known
about thickness of the sedimentary rock strata.
6. Magnetotelluric Method
According to the principle of electromagnetic induction, an alternating electric
current has an associated alternating magnetic field. Measurement of the
intensity of components of this field in the same direction as the component of
voltage provides another means of determining the thickness and apparent
resistivity of a layered sequence of rocks. Magnetotelluric surveying combines
these measurements. The depth of investigation is from 300 m below the
ground down to the 10,000 m or much deeper by detecting higher frequencies
with long period soundings. This method is useful to know basement structures
for oil & gas prospecting (Fig.14.23).
7. Resistivity Method
Resistivity surveys are conducted by putting electric current directly into the
ground and measure the resistance of the rocks through which the current
passes by means of arrays of receiver electrodes. For example, metallic
sulphides can conduct electric current by movement of charged ions and these
ions can be easily detected by an anomalous low resistance zone (Fig.14.24).
The conventional practice in this survey is to use source and sink electrodes
connected to an electric power source to compel current to flow into the ground.
An ammeter is placed in this circuit to measure the input current. Two other
electrodes connected to a voltmeter are placed in other positions to measure
the difference in potentials. This depends on the resistivity in the zone bounded
by the two equipotential surfaces that reach to the land surface at potential
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provides additional information about the spatial variation in the lithology and
grain surface chemistry measurement. Two different modes of survey being
conducted, i.e., time domain and frequency domain IP. In the former, the
measurement of decaying voltage over a certain time period is measured after
injection of current into the ground. In the later mode, apparent resistivity of
subsurface bodies is measured when a variable low frequency alternating
current is injected into the ground (Fig.14.26).
Fig. 14.26: Schematic sketch map how Induced Polarisation works. (Source:
adapted from Bleil, D.F., 1953)
9. Electromagnetic Method
This method directly measures the magnetic field associated with the low
frequency alternating current flow, generated in a loop of wire called transmitter
suspended either on or above the ground surface.
The primary alternating magnetic field, created by the current flow from
transmitter coil can be detected with minor deflection in amplitude by means of
a receiver coil in a homogeneous subsurface material. However, if there is a
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conductor material below the ground, the primary magnetic field will induce a
set of alternating current called eddy current to flow within it. It will generate its
own secondary electromagnetic field which distorts the primary field. The
receiver will detect the response from both arrivals of primary and secondary
fields. It differs in amplitude, phase and direction that reveal the presence and
geometry of subsurface conductive materials associated with the sulphide ore
bodies (Figs.14.27 and 14.28).
Fig. 14.30: Pitting and trenching for gold prospects. (Source: www.gsi.gov.in)
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If the depth of ore bodies is too large for pitting and trenching, then it is tested
by boring and drilling. Making a hole in the soil is referred to as boring where
as in the solid rock is referred to drilling, which can be done with the help of
light weight portable drilling machine. Drilling is the most effective means of
exploration of mineral deposit of all types and also for other geological activities
like rock types, stratigraphy, structure, wall rock alteration, geochemical zoning,
ore guides and control.
Several types of drilling techniques are available. Percussion drilling, Rotary
drilling, Diamond drilling (Fig. 14.31) and Auger drilling are the commonly used
drilling methods in mineral exploration. The choice of drilling method normally
depends upon the depth of the drill hole, location of drill site, geometry of ore
target, and the kind of sample needed.
Logging also known as well logging/ borehole logging is a technique for
systematic recording of rock properties including its fluid contents down the drill
hole. Some of the rock properties which can be logged are electrical resistivity,
self-potential, gamma ray emission, density, magnetic susceptibility, and
acoustic velocity.
Fig. 14.31: Schematic diagram of surface diamond drilling unit. (Source: Redrawn
from Haldar, 2018)
Learners, you have learnt about the subsurface exploration methods. Now,
spend a few minutes to perform an exercise to check your progress.
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SAQ 2
a) What do you mean by direct and indirect subsurface methods?
b) What is self-potential method?
c) How resistivity survey methods are conducted?
14.5 ACTIVITY
• Prepare a list of surface and subsurface exploration methods you have
studied in this unit.
14.6 SUMMARY
Let us sum up what we have learnt in this unit.
• Principles of exploration methods are based on physicochemical properties
like specific gravity, electrical and magnetic properties, velocity of seismic
waves, radioactivity of minerals
• Two broad types of exploration methods are used to locate economically
viable mineral deposits, namely surface and subsurface explorations.
• Surface exploration methods include geological, geochemical, geobotanical,
photogeology and remote sensing to prepare detailed geological maps of the
surveyed area.
• Geochemical and geobotanical surveys involve sampling of soil, rock, water,
air and vegetation to find out an anomalous value with respect to the
background value of the surveyed area. Indicator elements and plants help
to identify occurrence of near surface mineral deposit.
• Remote sensing is the collection of information about an area without
physical contact using different kind of sensors installed in vehicles,
balloons, aircraft or satellites.
• Aerial photos and satellite imageries are used in the detection of various
geological features controlling mineralisation or hydrocarbon accumulation.
• Geographic Information System (GIS) helps to identify mineral deposits
based on integration and interpolation of multiple georeferenced source data
and modelling using software and computer hardware.
• Let us summarise the main subsurface methods as given in Table 14.3.
Table 14.3: Summary of subsurface (geophysical) methods. (Abbreviation:
A: Airborne Survey; B: Bore hole Survey; & G: Ground Survey;
PGE: Platinum group of elements)
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14.8 REFERENCES
• Bleil, D.F., (1953) Induced polarization: A method of geophysical
prospecting, Geophysics, 18: 636–661p.
• Bhattacharya, S., Wright, A., Clayton, J., Price, W., Southern, E. and Evans,
H. (1984) Close genetic linkage between X-linked retinitis pigmentosa and a
restriction fragment length polymorphism identified by recombinant DNA
probe L1.28. Nature 309, 253–255p. https://doi.org/10.1038/309253a0
• Charles J., Whatley Michael K.G. and Evans K.M. (2006) Introduction to
mineral exploration, Blackwell publishing, 499p.
• Fisher, L., Gazley, M.F., Baensch, A., Barnes, S.J., Cleverley, J., & Duclaux,
G. (2014) Resolution of geochemical and lithostratigraphic complexity: a
work flow for application of portable X-ray fluorescence to mineral
exploration. Geochemistry: Exploration, Environment, Analysis, 14: 149-
159p.
• Gandhi, S.M and Sarkar, B.C. (2016) Essentials of Mineral Exploration and
Evaluation, 1st edition, Elsevier Cambridge, 410p.
• Grant, F. S. and West, G. F. (1965) Interpretation Theory in Applied
Geophysics, McGrawHill, New York, 361p.
• Haldar, S. K. (2018), Mineral Exploration Principles and Applications,
Elsevier Publications, 374p.
• Marjoribanks Roger (2010) Geological Methods in Mineral Exploration and
Mining, Springer Publications, 2nd edition, 243p.
• Sabins, F.F. (1997), Remote Sensing, Principles and Interpretation, W H
Freeman and Company, 450p.
• Sawant, P. T. (2011), Engineering and General Geology, New India
Publishing Agency, New Delhi, 486p.
• Sen, A. K. and Guha, P. K. (1993), A Handbook of Economic Geology,
Published by Modern Book Agency Pvt Ltd, Calcutta, 332p.
• Singh, Parbin (2013) Engineering and General Geology. S.K. Kataria and
Sons. ISBN: 8188458511, 9788188458516, 600p.
• Talapatra, Ashoke K. (2006), Modelling and Geochemical Exploration of
Mineral Deposits, Capital Publishing Company, New Delhi, 170p.
• https://pubs.usgs.gov/of/1995/ofr-95-0831/CHAP3.pdf
• http://zonge.com/rock-properties-lab/ore-minerals-physical-properties/
• https://openei.org/wiki/Magnetotellurics
• www.surveyofindia.gov.in
• www.gsi.gov.in
(Above websites are excessed between 10th and 20th June 2021)
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14.10 ANSWERS
SAQ 1
a) The broad activities of geological exploration are:
• Review of existing data and field work
• Surface guides
• Topographic survey
• River and glacial floating
b) The passive sensors use reflected or transmitted portion of electromagnetic
spectrum of solar radiation and thermal radiation from the target area. The
active sensors emit energy and measure intensity of energy that gets
reflected back from the object or area under investigation.
c) Pathfinder or indicator elements/minerals are characteristic parameters in
geochemical prospecting to detect hidden ore bodies.
SAQ 2
a) The direct methods involve collection of samples from subsurface rock
strata by digging drill holes, trenches, pits, exploratory tunnels and the rock
samples are examined and tested in the laboratory. The indirect methods
are extensively used by applying different geophysical techniques to locate
mineral ore bodies.
b) Self-potential (spontaneous potential) method involves measurement of
natural electrical potential due to electrochemical reactions between the
solutions and the surrounding subsurface rocks.
c) Resistivity surveys are conducted by putting electricity directly into the
ground and measure the resistance of the rocks through which the current
passes, by means of arrays of receiver electrodes.
Terminal Questions
1. Please refer to section 14.3.
2. Please refer to section 14.4.
3. Please refer to subsections 14.3.3 and 14.3.4.
4. Please refer to section 14.4.
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UNIT 15
MINERAL ECONOMICS
Structure______________________________________________
15.1 Introduction 15.4 Mineral Conservation Laws
Expected Learning Outcomes Regulatory Framework for Mineral
Developments in India
15.2 National Mineral Policy
Mineral Concession System
Peculiarities associated with Mineral
Resources Mineral Conservation and
Development Rules-2017
Rationale of Mineral Policy
15.5 Exclusive Economic Zone
Objectives of National Mineral Policy
15.6 Seabed Mining Laws
Types of Policies
15.7 Summary
15.3 National Mineral Policy of India
15.8 Activity
Historical Perspective
15.9 Terminal Questions
National Mineral Policy-2019
15.10 References
15.11 Further/Suggested Readings
15.12 Answers
15.1 INTRODUCTION
You have been introduced in BGYCT-133 course that mineral resources are the backbone of the
economic growth of any country. We also know that mineral deposits are non-renewable resources,
therefore they must be used judiciously. A well-planned programme for their systematic exploration,
extraction and optimum utilisation is the basic requirement of any country guided by national goals
and perspectives. The economic principles, therefore, must be applied to the mineral resources and
related mineral-based industry for their proper governance and management.
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The academic discipline which deals with the economic and policy issues
associated with the prospecting, exploration, extraction, production, recycling
and application of mineral commodities is studied under the subject of ‘Mineral
Economics’. The origin of the term Mineral Economics can be traced back to
about 200 years in the writings of David Ricardo. However, it has developed as
a separate discipline of Applied Economics only after World War-II. Principles
and practices based on economic theories applied to understand various
aspects of the mineral industry is studied under mineral economics
(MacKenzie, 1987). Thus, mineral economics is a multidisciplinary branch
involving geology and economics disciplines. It also focuses on the optimum
use of mineral commodities and the conservation of its resources for future use.
In this unit, we will try to understand some of the basic aspects of Mineral
Economics.
Such policy of the government deals with the long-term strategy for the
development of mineral resources and mineral/mining industries that
constitutes the essence of the National Mineral Policy of any country. It is
essentially a broad statement of objectives of mineral development which
indicates the direction of such type of expected development. It ultimately forms
the basis to formulate legislation. The Mineral Policy of any country not only
provides guidance and advice to different authorities and the mineral industry,
but also addresses the challenges and responds to important government
commitments.
A National Mineral Policy can also be viewed as a subset of the country’s
economic, trade and industrial policy. It must be compatible to the national
policies on the environment, foreign exchange and labour. Hence, the
formulation of mineral policy also requires a broad understanding of the macro-
economic parameters and strategies.
15.2.3 Objectives of the National Mineral Policy
You have learnt about need and background for formulation of National Mineral
Policy. Now let us read about it in this section.
The specific goals and objectives of a National Mineral Policy vary with the
unique attributes and needs of the nation. For example, the Mineral policy of a
mineral-rich, highly industrialised nation (e.g., USA, Canada, Australia) may not
be appropriate for a mineral-poor industrialised nation (e.g., Japan and
Germany) which largely depends upon import for the mineral supply to their
industries. Similarly, the policy for a mineral-rich developing country (e.g., India,
Chile, Brazil) will be somewhat different as compared to minerals poor non-
industrialized country (e.g., Nepal, Bangladesh).
The Mineral Policy of any country should be an explicit and comprehensive
document and must help in serving three principal functions:
1. To guide mineral industries at the government's position regarding key
issues.
2. To guide government departments, administrators and lawmakers on the
direction and expectation of the nation about regulating the sector.
3. To act as a consensus-building tool, allowing important issues to be
identified, discussed and agreed upon before detailed legislative drafting and
administrative revisions.
The objectives of the National Mineral Policy briefly include the following:
1. To provide a fair and balanced fiscal and regulatory framework.
2. To foster a viable mineral sector for ensuring mineral supplies.
3. To improve mineral conservation and use.
4. To promote improved technical performance and increased
international competitiveness in all facets of the industry.
5. To facilitate enhanced mineral exports and access to new and
traditional markets.
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This policy was subsequently replaced by the second Industrial Policy in 1956
which is followed by the Mines and Minerals (Development and Regulation) Act,
1957 and Mineral Concession Rules 1960. According to this, the state
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governments /public sectors enterprises have exclusive rights to develop all the
major minerals, listed in Schedule A (such as coal, lignite, mineral oil, iron ore,
copper, zinc, atomic minerals, etc.). The other minor minerals listed in Schedule
B were opened for the development by the private as well as public sectors.
The minor minerals are considered to be of the local importance and are
supposed to be developed on a small scale for the benefit of local people. The
minor minerals include: building stone, marble, gravel, chalcedony, pebble,
limestone for lime burning, brick earth, fuller's earth, bentonite, clay and sand.
These minerals are used for the non-industrial purposes, road metal, slate and
shale etc. The afore mentioned Acts was amended subsequently in different
years.
Let us now know about the latest National Mineral Policy of India.
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10. The Policy also mentions making efforts to harmonize taxes, levies and
royalty with world benchmarks to help the private sector.
In the previous sections, we studied about the National Mineral Policy, its
objectives and salient features. Before going to the next section spend 5
minutes to check how you are progressing.
SAQ 1
a) What are the main objectives of National Mineral Policy?
b) When was the first separate National Mineral Policy of India declared?
c) When was the latest National Mineral Policy of the country adopted?
and competitive auction process. The most recent amendment in the MMDR
Act was carried out by the Mineral Laws (Amendment) Act, 2020 to ease out
business and opening commercial mining and allowing domestic as well as
global investors to invest. Important mining regulations enacted by the
Government of India as summarised in Table 15.1.
Table 15.1: List of important mining regulations in India.
be renewed for the total period for which a PL is granted that does not
exceed 5 years. In a State, a person can be granted a maximum area of 25
sq. km in one or more PLs. But if the Central Government believes that in
the interest of the development of any mineral it is necessary to do so, the
maximum area limit can be relaxed.
3. Mining Lease (ML): This lease is granted to undertake mineral winning
operations of minerals. A ML for any mineral or associated minerals is
granted for a minimum period of 20 years and a maximum period of 30
years. The ML can be renewed for a period not exceeding 20 years each. In
a State, a person can be granted a maximum area of 10 sq. km in one or
more MLs. But if the Central Government believes that in the interest of the
development of any mineral it is necessary to do so, the maximum area limit
can be relaxed.
The Mineral Concession Rules, 1960 outline the procedures and conditions to
obtain a Prospecting License or Mining Lease. The Mineral Conservation and
Development Rules, 2017 lays down guidelines to ensure mining on a scientific
basis, whereas at the same time, conserving the environment. The provisions
of MCR and MCDR, but are not applicable to coal, atomic minerals and minor
minerals. The minor minerals that come under the purview of the State
Governments are separately notified.
In the next section, we will discuss in detail the Mineral Conservation and
Development Rules.
15.4.3 Mineral Conservation and Development
Rules- 2017
The Mineral Conservation and Development Rules (MCDR) were enforced for
the first time in 1955 to lay adequate emphasis on the systematic development
of mines, leading to the conservation of mineral resources. These rules derive
power from the MMRD Act 1948. Later with the adoption of MMRD Act 1957,
the MCDR were also changed and modified to MCDR 1958. The MCDR apply
to all minerals except for (i) petroleum and natural gas; (ii) coal, lignite and sand
for stowing; and (iii) minor minerals. The MCDR-1958 was repealed in 1988
and was replaced by MCDR-1988. Further, in supersession of the Mineral
Conservation and Development Rules, 1988, the Central Government replaced
it with the Mineral Conservation and Development Rules, 2017 by exercising
the powers conferred to section 18 of the MMRD Act, 1957.
As discussed in previous sections, the Mineral Conservation and Development
Rules (MCDR) provide guidelines to ensure mining operation including mine
closer on a scientific basis. The rules also define sustainable mining. The
MCDR-2017 defines various rules divided into 12 chapters. The rules
concerning the Reconnaissance and Prospecting Operations having 6 rules
regarding the scheme of Reconnaissance or Prospecting Operations, its
inspection by the competent authority and reports to be submitted by PL holder.
Rules for Mining Operations:
Rules for Mining Operations of MCDR-2017 comprises of 21 rules related to
Mining plan, operations in Open Cast mines, Underground mining operations,
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The Coastal States have certain sovereign rights in the Exclusive Economic
Zone which include:
1. Sovereign rights to explore and exploit, conserve and manage the natural
resources, whether living or non-living, in the waters superjacent to the
seabed and its subsoil;
2. Rights in regard to other activities of the economic exploration and
exploitation of the zone, such as production of energy from water-currents
and winds;
3. Right to establish and use artificial islands, installations and structures;
We must understand that the territorial sea and the exclusive economic zone
are two different zones. The difference between the two is that the territorial sea
confers to full sovereignty over the waters, whereas the EEZ is merely a
"sovereign right" which refers to the coastal state's rights below the surface of
the sea. The surface waters in EEZ are international waters.
India with its long coastline of about 2750 nautical miles and 1280 islands are
having a vast interest in the development of its EEZ. India has enacted the law
in 1976 known as The Territorial Waters, Continental Shelf, Exclusive
Economic Zones and Maritime Zones Act, 1976 to outline limits of the
territorial waters, continental shelf, EEZ and other maritime zones of India. As
per this act, land minerals and other resources underlying the ocean within the
territorial waters, the continental shelf or the Exclusive Economic Zone are
vested with the Union of India. It also provides the legal framework:
• Specifying the nature, scope and extent of India’s rights;
• Jurisdiction and control of various maritime zones;
• Maritime boundaries between India and its neighbouring countries; and
• The exploration, exploitation, conservation and management of natural
resources within the maritime zones.
The total area included within the EEZ of India is about 20,00,000 square
kilometers. The famous Bombay High oilfield, which is 63 nautical miles off the
western coast of India, falls in this zone.
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SAQ 2
a) Which is the main Act for the development of minerals and mining in
India?
b) What is Mineral Concession rule?
c) What is the difference between territorial sea and EEZ?
d) Name the international authority for regulating and administrating deep
15.7seaSUMMARY
economic exploitation.
Let us summarise what we have learnt in this unit.
• Nations formulate a policy for exploration, exploitation and consumption of
their mineral resources depending upon the available mineral inventory, geo-
political situation, priorities and defence preparedness.
• The National Mineral Policy is a subset of the country’s economic, trade and
industrial policy. It must be in tune with the national policies on the
environment, foreign exchange and labour.
• The Mineral Policy of any country not only provides guidance and advice to
different authorities and the mineral industry, but also addresses the
challenges and responds to important government commitments.
• National Mineral policy can be of the three types: Open door policy, Close
door policy and Mixed type of policy.
• In India, the Mineral Policy Statement came in to existence as a part of the
Indian Industrial Policy Resolution-1948. Indian Bureau of Mines was also
established in 1948 to regulate and monitor mining activities in the country.
• In 2017, the Supreme Court of India, announced a fresh, more effective,
meaningful and implementable policy which has resulted in the form of a
latest New National Mineral Policy in 2019 (NMP-2019).
• The Mines and Minerals Development and Regulation Act, 1957, ('MMDR')
and the Mines Act, 1952, together with the rules and regulations framed
under them constitutes the basic laws governing the mineral and mining
sector in India.
• The MMDR Act has several inbuilt rules and regulations which include the
Mineral Concession Rules (MCR- 1960) and Mineral Conservation and
Development Rules (MCDR-2017).
• In India, the State Governments are the owner of the minerals located within
the boundaries of the State concerned. The Central Government is the
owner of the minerals underlying the ocean within the territorial waters or the
EEZ as per Article 297 of the Constitution of India.
• In 1982, UN conference on Law of the Sea resulted in the Law of Sea
Convention which came into force in 1994.
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Unit 15 Mineral Economics
…………………………………………………………………………………………..……………….….............….….....…
• As per articles 151 and 153 of the United Nations Convention on the Law of
the Sea, the International Seabed Authority is in charge of regulating and
administrating deep-sea economic exploitation.
15.8 ACTIVITY
• Make a flow chart to organise various stages as prescribed in the
Concession system for getting the RP to ML.
15.10 REFERENCE
• Chaterjee, K.K., (2008) Introduction to Mineral Economics, New Age
International, 379p.
• Ray, S.C., and Sinha, I. N., (2016) Mines and Mineral Economics, Phi
Learning Pvt Ltd. 241p.
• https://ibm.go
• https://mines.gov.in
(Websites accessed between 03/04/2021 and 10/08/2021)
15.12 ANSWERS
SAQ 1
a) The objectives of the National Mineral Policy briefly include the following:
i) To provide a fair and balanced fiscal and regulatory framework.
ii) To foster a viable mineral sector for ensuring mineral supplies.
iii) To improve mineral conservation and use.
iv) To promote improved technical performance and increased
international competitiveness in all facets of the industry.
v) To facilitate enhanced mineral exports and access to new and
traditional markets.
vi) To strengthen overall contribution of minerals in regional and national
development.
vii) To protect fragile environment and promote sustainable development.
219
Block 4 Mineral Exploration and Mineral Economics
…………………………………………………..……………………………………………………….….............….…......
220
GLOSSARY
Auger Drilling : In auger drilling system, rock is cut and broken with the help
of a simple blade bit mounted on the end of a rotating string
of rods. As the drill advances, extra rod sections are added to
the top of the drill string. It is a popular method when an
overburden penetration is necessary to obtain a small
bedrock sample.
Blanket Deposit : It is a flattened ore deposit whose length and width is more
than its thickness. Traditionally, this term is used by miners
and has no real scientific meaning.
Contact Deposit: : This term is mainly used for mineral deposit occurring
between the two dissimilar rocks. This type of ore body
occurs at the contact of sedimentary and igneous rocks.
Density Logs : The application of this tool is very similar to that of the sonic
logging tool except that it uses the emitted gamma radiation
in place of sound waves.
Diamond Bit : A rotary drilling bit that uses diamonds as the cutting edge.
221
Diamond Drilling : Diamond drill of rotary type is the most versatile and
extensively used tool in the mineral exploration. Diamond
drilling uses a rotating hollow diamond-encrusted drill bit to
grind or cut the rock producing a cylindrical core sample.
Epithermal : These are formed at shallow depths away from the surface
Deposits: and the temperature ranges from 50°C - 200°C.
Epigenetic : The ore deposit formed after the formation of host rock in
Deposit which they occur, e.g., vein. These ore minerals have been
introduced into pre-existing country rock after their formation.
Feasibility Study : The study is to confirm and maximize the value of the
preferred technical and business options identified in the pre-
feasibility study stage.
222
Geophysical : Refers to recording or mapping of physical properties of rocks
and minerals through an application of physics.
GPS Survey : GPS (or global positioning system) uses signals from
satellites to pinpoint a location on the Earth's surface.
GPS also provides data about velocity and time
synchronisation for various forms of travel.
Hypothermal : These deposits are formed at great depths near the intrusion
Deposits and the temperature ranges from 300°C - 500°C.
223
Mineral : It is a sign of mineralisation that is well-intentioned of further
Occurrence investigation.
Neutron Logs : The neutron log provides a measure of the porosity of the
formation.
224
this method.
Rotary Drilling : In rotary drilling, the drilling results from the continuous
rotation of the bit under constant pressure. The samples are
recovered by grinding and rotation of the drill rod without
hammering.
225
NOTES
226
NOTES
227
NOTES
228
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