Govt keen to engage overseas investors in mineral exploration

Mines Ministry also stressed on the need for raising exploration spend from the current 0.4% The Dollar Business Bureau

For attracting private sector in exploration, the government proposes three models— revenue share from mining lease proceeds for 50 years, reimbursement of costs, and joint venture with public sector.

The government is actively thinking of allowing private sector companies including overseas exploration firms to carry out mining activities in the country. The Ministry of Mines said on Thursday that it is in the process of bringing a national mineral exploration policy so as to ensure active participation from private companies in the sector. “The government is committed towards bringing in an attractive exploration policy to encourage private investment and expertise into the sector and has set up National Mineral Exploration trust (NMET),” said a statement from the ministry on Thursday. Addressing a conference on Exploration in India, Narendra Singh Tomar, Minister of Mines and Steel, said the process of auctioning mines is likely to start soon and the MMDR (Mines and Minerals Development and Regulation) Act 2015 was amended to bring in transparency in the auction process. The minister said that five states have already issued notices for auctioning of mines in 28 blocks for major minerals. He also stressed on the need for raising the exploration spend from the current 0.4%. Speaking on various challenges before the sector, Balvinder Kumar, Secretary, Ministry of mines, expressed hope that the draft National Mineral Exploration Policy, which will be ready in few months, would address the current concerns before the sector. The Mines Secretary suggested three models for attracting private sector participation in exploration— revenue share from mining lease proceeds for 50 years, reimbursement of costs with reasonable profits, joint venture with public sector on proceeds. Focusing on exploration in greenfield as well as brownfield areas by utilizing the state of the art technology for the mineral exploration is the need of the hour, said Narendra Kothari, Chairman CII National Committee on Mining and Chairman cum-Managing Director NMDC Limited. “Despite having good geological reserves, India lags behind in the global exploration map,” said P R Mandal, Head Strategy and Business Development, Essel Mining & Industries Limited. Industry leaders including Sunil Duggal, Chief Executive Officer of Hindustan Zinc Limited and Charles Devenish, Chairman, Geomysore Services Private Ltd, stressed on the need for carving an industry friendly policy with some tax incentives to encourage exploration in the country.

November 04, 2015 | 2:18pm IST.

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The Dollar Business Bureau - Dec 04, 2015 08:48 IST

Govt keen to engage overseas investors in mineral exploration

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