THE NATIONAL MINERAL POLICY – 1993

The first National Mineral Policy (NMP) was declared in 1990, but after the announcement of Statement of Industrial Policy (SIP) in July-1991, NMP of 1990 became inconsistent with the SIP. Therefore, a fresh NMP was announced in March-1993. This policy statement was further put into executive action with legal framework by amending the MMRD Act on 25/01/1994. It had more stress on induction of foreign technology and foreign equity participation in exploration and mining for high value and scare mineral and encouragement of foreign equity investment in joint ventures in mining.

The National Mineral Policy-1993 (for Non-Fuel and Non-Atomic Minerals) is an extremely well-drafted document. It appreciates the fact that India’s finite and non-renewable natural resources have to be managed in close integration with the “long-term national goals and perspectives” with a focus on “scientific methods of mining, beneficiation and economic utilization.” Clause 1.3, in the preamble to the policy, emphasizes such aspects of mining as “protection of forest, environment and ecology from adverse effects of mining, enforcement of mining plan for adoption of proper mining methods and optimum utilization of minerals, exports of mineral in value-added form and recycling of metallic scrap and mineral.” The policy also states that “an optimal depletion rate shall be worked out in respect of each mineral, keeping in view the domestic and global resource position, the international market situation and the needs for stable and sustained economic development.” While all this is to the good, there is one element in item No. 7 on strategy of mineral development that says: “Conservation of minerals shall be construed not in the restrictive sense of abstinence from consumption or preservation for future use but as positive concept leading to augmentation of resource base through improvement in mining methods, beneficiation and utilization of low grade ore and rejects, recovery of associated minerals, reduction in the requirements of mineral per unit of material output, etc.”

The basic objectives of the National Mineral Policy is as follows-

(a) To explore for identification of mineral wealth in the land and in off-shore areas;

(b) To develop mineral resources taking into account the national and strategic considerations and to ensure their adequate supply and best use keeping in view the present needs and future requirements;

(c) To promote necessary linkages for smooth and uninterrupted development of the mineral industry to meet the needs of the country;

(d) To promote research and development in minerals;

(e) To ensure establishment of appropriate educational and training facilities for human resources development to meet the manpower requirements of the mineral industry;

(f) To minimize adverse effects of mineral development on the forest, environment and ecology through appropriate protective measures; and

(g) To ensure conduct of mining operations with due regard to safety and health of all concerned.