MINING LAW

Shailendra Trivedi
Officer on Special Duty
Mineral Resources Department
Government of Chhattisgarh 1
 MINERAL ARE SOURCE OF WEALTH

 Kautilya had grasped the crucial role of

minerals in building a nation’s strength,
 He said vkdj izHko% dks"k% Minerals
are sources of wealth",
 Kautilya gave such prime importance to
minerals that he made mineral
development a State monopoly and laid
down a code for mining and mineral
industry
2
 Important Minerals
82 ° E U TTA R 84 ° E

C H H A T T IS G A R H P R A DE SH
24°
M IN E R A L M A P 2 4°

Coal
N N

B a ik u n t h p u r

Iron ore
( K o ri a )
A m b ik a p u r
( S u rg u ja )
Jash pu r

Bauxite
K o rb a

R a ig a r h
22 ° B i la s p u r 2 2°
N J a n jg ir N
K a b ir d h a m

Limestone R agnan dgaon

D urg
R a ip u r
M ahasam und

M A H A R A SH T R A
Dolomite
D h a m ta r i M in e r a l In d e x
C o al
Kanker
20°
Ir o n O r e 20 °

Tin ore
N N

B a u x ite

L im e s to n e

D o lo m ite

Diamond D a n te w a r a
J a g d a lp u r T in O r e ( C a s s it e r it e )

D ia m o n d

G o ld

Corundum 18°
N

82° E
0 75
B a s e -M e ta ls
150 km

84 ° E
18°
N

3
 CONSTITUTION OF INDIA
Seventh Schedule
List I - Union List
Entry 54. Regulation of mines and
mineral development to the extent to
which such regulation and
development under the control of the
Union is declared by Parliament by
law to be expedient in the public
interest
 CONSTITUTION OF INDIA….
Seventh Schedule
List II – State List
Entry 23.Regulation of mines and
mineral development subject to
the provision of List I with respect
to regulation and development
under the control of the Union
 CONSTITUTION OF INDIA….

Article 244 (1)

Fifth Schedule Part B 5(1)
Notwithstanding anything in this Constitution, the
GOVERNOR may by public notification direct that
any particular Act of Parliament or of the Legislature of
the State shall not apply to a Scheduled Area or any
part thereof in the State subject to such exceptions
and modifications as he may specify in the notification
and any direction given under this sub-paragraph may
be given so as to have retrospective effect.
 LAND REVENUE CODE 1959

• SACTION 247. Government's title to

minerals (1) Unless it is otherwise
expressly provided by the terms of a
grant made by the Government, the
right to all minerals, mines and quarters
shall vest in the State Government
which shall have all powers necessary
for the proper enjoyment of such rights.
 Responsibility of Management
of Mineral Resources
• Management of mineral resources is the
responsibility of both the Central
Government and the State Governments
in terms of Entry 54 of the Union List (List I)
and
Entry 23 of the State List (List II) of the
Seventh Schedule of the Constitution of
India.

8
LEGAL STATUS OF MINING IN INDIA
LAW GOVERNING THE MINES
AND MINERALS IN THE COUNTRY
ARE PLACED UNDER TWO
CLASSIFICATION :

 SAFETY AND WELFARE OF

MINES

 REGULATION AND
DEVELOPMENT
SAFETY AND WELFARE OF MINES
ACT :
• INDIAN MINES ACT, 1952
RULES :
• THE MINES RULES - 1955
• THE COAL MINES REGULATION - 1957
• THE COAL MINES RESCUE RULES - 1959
• THE MINES CRECHE RULES – 1963
•THE MINES VOCATIONAL TRAINING
RULES - 1966
REGULATION AND DEVELOPMENT
ACTS
 OIL FIELDS (REGULATION AND DEVELOPMENT)
ACT, 1948
 COAL BEARING AREA (ACQUISHITION AND
DEVELOPMENT) ACT-1952
 MINES AND MINERAL (DEVELOPMENT AND
REGULATION) ACT-1957
 THE COKING COAL MINES (EMERGENCY
PROVISION) ACT - 1971
 COAL MINES (NATIONALISATION) ACT - 1973
 THE COAL MINES (CONSERVATION AND
DEVELOPMENT) ACT-1974
 REGULATION AND DEVELOPMENT
RULES :
 Grantie Conservation And Development
Rule – 1999
 Auction By Competitive Bidding of Coal
mines Rules, 2012
 Mineral (Auction) Rules, 2015.
 Minerals (Evidence of Mineral Contents)
Rules, 2015
 REGULATION AND DEVELOPMENT
RULES :
 COAL MINES CONSERVATION AND
SAFETY RULE - 1954
 MINERAL CONCESSION RULES – 1960
 MINERAL (other than Atomic and Hydro
Carbons Energy Minerals) CONCESSION
RULES – 2016
 MINERAL CONSERVATION AND
DEVELOPMENT RULES - 1988
 REGULATION AND DEVELOPMENT

RULES :
Marble Development And
Conservation Rules - 2002
Colliery Control Rules – 2004
Mines And Minerals ( Contribution
To District Mineral Foundation)
Rules, 2015
 Acts and Rules Framed by State

• Under Section 15 of MMDR Act Rules

framed for regulating grant of
prospecting licences and mining
leases in respect of all Minor minerals
• Under Section 23C of MMDR Act rules
framed for preventing illegal mining,
transportation and storage minerals

15
 Act and Rules framed by the State
 Chhattisgarh Mineral development Fund Act,
2003
 Chhattisgarh Mineral development Fund Rules,
2004
 Chhattisgarh Minerals (Mining, Transportation &
Storage) Rules, 2009
 Chhattisgarh Minor Mineral Rules – 2015
 Chhattisgarh Minor Mineral Sand Mining and
 Trading Regulation Directions ,2006
 Chhattisgarh District Mineral Foundation Rules
2016 16
 Rules framed by State

Chhattisgarh Minor Mineral Rules – 2015

NRrhlx<+ xkS.k [kfut jsr dk
mR[kuu ,oa O;olk; fofu;eu
funsZ”k] 2006
Chhattisgarh District Mineral
Foundation Rules 2015

17
What is:-
 Minerals : Minerals includes all minerals
expect mineral oils
 Mining: The process of obtaining minerals
from mine
 Mines: Mine means any excavation where
any operation for the purpose of searching
for or obtaining minerals has been or is
being carried on and includes:
 Mining operations : means any operations
undertaken for the purpose of winning any
mineral; 18
 SECTION - 4 OF MMDR ACT, 1957
Restriction For Mining And Prospecting Operation
 No person shall undertake any reconnaissance
prospecting or mining operations in any area,
expect under and in accordance with the terms
and conditions of a reconnaissance permit or of a
prospecting licence or, as the case may be, a
mining lease, granted under the mmrd act and
the rules made thereunder.
 Provided that nothing in this sub-section shall
apply to any prospecting operation undertaken
by GSI, IBM, AMD of central government and
the DGM of any state government.
SECTION - 4 OF MMDR ACT, 1957

 (1A) No person shall transport or

store or cause to be transported or
stored any mineral otherwise than
in accordance with the provisions
of this act and the rules made
thereunder..
SECTION – 4 A(4) LAPSING OF LEASE

Where the holder of mining lease failed to

undertake mining operations for a period of
two years after the date of execution of the
lease, or
having commenced mining operations, has
discontinued the same for a period of two
years
the lease shall lapse on the expiry of the
period of two years from the date of
execution of the lease or, as the case may
be, discontinuance of the mining operation
SECTION – 9 ROYALTIES

1. The holder of mining lease shall pay royalty in

respect of any mineral remove or consume by him,
at the rate as specified in the second schedule in
respect of that mineral.
3. The central government may by notification amend
the second schedule so as to enhance or reduce the
rate at which royalty shall be payable in respect of
any mineral.
Provided that the central government shall not
enhance the rate of royalty in respect of any mineral
more then once during any period of three years.
Section 9A- Dead rent to be paid by the lessee
The holder of a mining lease, pay to the State
Government,
. every year, dead rent at such
rate as may be specified, in the Third
Schedule
Provided that where the holder of such
mining lease becomes liable, under section
9, to pay royalty for any mineral removed
consumed by him from the leased area, he
shall be liable to pay either such royalty, or
the dead rent in respect of that area,
whichever is greater.
SECTION 9B
DISTRICT MINERAL FOUNDATION
In any district affected by mining related
operations, the State Government shall, by
notification , established a trust, as a non-
profit body, to be called the District Mineral
foundation
The object of the DMF shall be to work for
the interest and benefit of persons and
areas affected by the mining reletated
operations in such manner as may be
prescribed by the State Government
24
District Mineral Foundation Fund.

The holder of a mining lease or a prospecting

licence- cum-mining lease shall, in addition to
the royalty, pay to the DMF of the district in
which the mining operations are carried on, an
amount which is equivalent to such
percentage of the royalty paid in terms of
the second schedule, not exceeding one-
third of such royalty, as may be prescribed
by the central government.
 THE FOURTH SCHEDULE
• [See clause (ea) of section 3] 
• Notified Minerals
• Bauxite.
• Iron ore.
• Limestone.
• Manganese ore.”.
Minerals Are Classified in to two category

Minor Minerals
And
All Other Minerals
 SECTION 14 :- The provisions of sections
5 to 13 (inclusive) shall not apply to
quarry lease, mining lease in respect of
minor minerals
Section – 17A Reservation Of Area For
Purpose Of Conservation
(2)The state government, may with the approval
of the central government, reserve any area not
already held under any PL or ML, for
undertaking prospecting and mining operation
through a government company or corporation
owned or controlled by it and where it
proposed to do so it shall by notification in the
official gazette, specify the boundaries of such
area and the mineral or minerals in respect of
which area will reserved
 PENALTIES
SECTION-21: (1) Whoever
contravenes the provisions of sub
section (1) or (1A) of Sec.4 shall be
punished with imprisonment for a
term which may extend to five
years and fine which may extend to
five lakh rupees per hectare of the
area.
 Penalties
(2) Any rule made under any provision of
this Act may provide that any
contravention thereof shall be punishable
with imprisonment for a term which may
extend to two years and fine which may
extend to five lakh rupees or both and in
case of continuing contravention, with
additional fine which may extend to fifty
thousand rupees for every day during
which such contravention continues after
conviction for the first such contravention
 Penalties…
Section 21(5):
Whenever any person raises without
any lawful authority, any mineral from
any land, the State Government may
recover from such person the minerals
so raised, or where such mineral has
already been disposed of, the price
thereof, and may also recover from
such person, rent, royalty or tax as the
case may be, for the period during
which the land was occupied by such
person without any lawful authority.
 Cognizance of offences
Section 22.
No court shall take cognizance of
any offence punishable under this
Act or any rules made thereunder
except upon complaint in writing
made by a person authorized in this
behalf by the Central Government
or the State Government.
 Compounding of Offences
Section 23A.
(1) Any offence punishable under this Act or any
rule made thereunder may, either before or after
the institution of the prosecution, be compounded
by the person authorised under section 22, on
payment to that person, for credit to the
Government, of such sum as that person may
specify:
Provided that in the case of an offence punishable
with fine only, no such sum shall exceed the
maximum amount of fine which may be imposed
for that offence.
 Penalties…
SECTION – 23 A: COMPOUNDING OF OFFENCES

Any offence punishable under this Act or

any rule made thereunder may, either
before or after institution of the
prosecution be compounded by the
person authorised under section 22 to
make a complaint to the court with
respect to that offence, on payment to
that person, for credit to the government
of such sum as that person may specify
SECTION - 23(C) EMPOWER THE STATE
GOVERNMENT TO MAKE RULES FOR
PREVENTING ILLEGAL MININIG,
TRANSPORTATION AND STORAGE OF
MINERALS
GOVERNMENT OF CHHATTISGARH HAS
MADE THE RULES “CHHATTISGARH
MINERALS (MINING, TRANSPORTATION
AND STORAGE) RULES, 2009
CHHATTISGARH MINOR MINERAL RULES 2015
• Rule 5 - Restriction on the grant of PL
or quarry lease
• Any person other than an Indian national or a
company
• Forest area without clearance under FCA Act,
1980
• within a distance of :100 mt. from any bridge,
National or State Highway, railway line;
• 50 mt. from other road, river bank/nala/ canal etc.
(except sand or bajri) any public place;
• 10 mt. from gramin kachha rasta
• Not compact and contiguous
 Rule 20 and 21Power to grant PL and Quarry leases
Granting Type of Mineral Limitations Authority for
Authority Area E- Auction/
E-Tender
State Minerals Specified in Full Director
Govt. Part A and Part B of powers
Scheduled-I
Direct Minerals Specified in more Collector
or Part C of Scheduled- than
I and Part-A of ten
Scheduled -II Hectare
Collect Minerals Specified in up to Collector
or Part C of Scheduled- ten
I and Part-A of Hectare
Scheduled -II
 Rule 57. Amalgamation of leases
• The Director may, in the interest of mineral
conservation and development, record in writing
and permit amalgamation of two or more
adjoining leases held by a lessee/ lessees.
• (2) Lessee/ lessees shall submit an application
for amalgamation along with a common Quarry
Plan for leases proposed for amalgamation.
• (3) There shall be paid, in respect of every
application for amalgamation of leases, a non-
refundable application fee of rupees ten
thousand.

39
 Rule 57. Amalgamation of leases
(4) Period of amalgamated leases shall be co-terminus
with the lease whose period expires first.
(5) The leases situated within the distance of 50 meters,
from each other in all directions, may be treated as
adjoining leases: Provided that amalgamation of
leases shall not be allowed where any all-weather
road or nala or river or canal or high-tension power
line or railway line or any other restricted structure is
falling within the above mentioned area of 50 meters.
(6) The area between the lease as mentioned in sub-rule
(5) shall be the part of the amalgamated lease
40
 Rule 59. Permission for disposal of minor
minerals obtained during excavation Work
1) The Collector shall grant permission for
removal and use of any such Minor
Minerals obtained during deepening or
widening Panchayat ponds/ tanks, well,
water reservoir or any other digging work.
(2) The said permission shall be granted on
payment of an amount e equivalent to
royalty of such mineral in advance, for the
specified quantity and period.
41
Rule 60-Permission for disposal of Minor
Minerals from Mining Lease area
The Collector shall grant permission for
transportation or use of any Minor
Minerals obtained during mining
operations within the mining leas area for
the purpose of construction activities of the
Government including local government
bodies: Provided that in case of use of
Minor Mineral, collected within the Mining
Lease area, by other than works
department of the State Government,
42
Rule 60-Permission for disposal of Minor Minerals …

Provided that in case of use of Minor

Mineral, collected within the Mining
Lease area, by other than works
department of the State Government,
Collector shall sell it through auction.
Royalty shall be paid in advance for
the said sold Minor Mineral at
prescribed rates.
43
Chhattisgarh Minor Mineral Rule 2015
Rule 71 - Penalty for unauthorized extraction
(1) punishable with simple imprisonment for a term which may
extend to one year or with fine which may extend to twenty
Five Thousand rupees or with both
(2) Authorize officer may seize the minor mineral and its
products together, with all tools, equipments and vehicles
used in committing such offence.
(5) Authorize officer may either before or after the
institution of the prosecution, compound the
offence so committed under sub-rule (1) on
payment of such fine which may extend to double
the market value of mineral so extracted but in no
case it will be less than rupees five thousand or
ten times of royalty of minerals so extracted
whichever is higher
 SAND MINING IN CG
• COLLECTOR TO NOTIFY SAND
QUARRIES
• PANCHAYAT TO OPERATE
THEMSELVES & LEVY ROYALTY
• CANNOT BE GIVEN ON CONTRACT
• MONTHLY REVIEW OF SAND
MINING BY COLLECTOR
ACC Jamul Island Park in 1994
ACC JAMUL Island Park in 2009