Exploration and Mining

Opportunities in India
An Investor Guide

Be part of an exciting high growth economy

Ministry of Mines, Government of India

August 15, 2015
Contents
Abbreviations........................................................... 3 4. Taxation and Royalties................................... 16
Conversion.........................................................3 4.1 Overview..................................................16
4.2 Direct Taxes..............................................16
1. Introduction to India........................................ 4
4.3 Indirect Taxes...........................................16
1.1 Geography.................................................4
4.4 Mining Levies..........................................17
1.2 Political System.........................................4
4.5 Other Levies.............................................18
1.3 Economy of India......................................5
4.6 Incentives.................................................18
2. Exploration and Mining in India.................. 6
Appendix................................................................. 19
2.1 Introduction...............................................6
2.2 Structure of Minerals and Mining Classification of Minerals in India.................... 19
Sector..........................................................6 Major Minerals................................................19
2.3 Exploration in India..................................7 Minor Minerals................................................20
2.4 Mineral Resources/Reserves....................8
Geology of Indian Subcontinent........................ 22
2.5 Mineral Production...................................9
Geological Setting of Peninsular Region......22
3 . Mineral and Mining Sector Legislation Geology of Extra-peninsular Area................23
in India.............................................................. 10
3.1 Overview..................................................10 Metallogenic Map of India.................................. 24
3.2 Legislation................................................10
Mineral Provinces.................................................. 25
3.3 Mineral Administration and
State-wise Details of Mineral Belts/
Regulation................................................12
Terrains within the OGP Areas.....................25
3.4 Types of Concessions.............................12
State-wise and Mineral-wise Details
3.5 Grant of Mining Lease...........................13 within the OGP Areas.....................................27
3.6 Grant of Composite License..................14
3.7 Grant of Non-exclusive Mineral-wise Reserves and Resources.............. 28
Reconnaissance Permit (NERP)............14
Information for the Investors.............................. 31
3.8 National Mineral Exploration Trust
(NMET).....................................................15 Important Websites and Links............................ 32
3.9 Indicative Clearances.............................15
 1 | Introduction to India

Abbreviations
CL Composite License
CRIRSCO Committee for Mineral Reserves International Reporting Standards
DMF District Mineral Foundation
FDI Foreign Direct Investment
GDP Gross Domestic Product
GSI Geological Survey of India
IBM Indian Bureau of Mines
INR Indian Rupee
IT Income Tax
km kilometre
m metre
MAT Minimum Alternate Tax
MCDR Mineral Conservation and Development Rules, 1988
MCR Mineral Concession Rules, 1960
ML Mining Lease
MMDR Mines and Minerals (Development & Regulation) Act, 1957
MT Million Tonne
NERP Non-Exclusive Reconnaissance Permit
NGCM National Geo-chemical Mapping Programme
NGPM National Geo-physical Mapping Programme
NMET National Mineral Exploration Trust
OGP Obvious Geological Potential
SEZ Special Economic Zone
sq. km. square kilometres
UNFC United Nations Framework Classification
USD US Dollar

Conversion
lakh 0.1 million
crore 10 million

3
Exploration and Mining Opportunities in India

1 Introduction to India
India | Snapshot

Capital New Delhi

Population 1,210 million in 2011
Area 3.2875 million sq. km.
Languages 22 languages
Official Language Hindi
English is used for all
official purposes
Currency Indian Rupee (`)
Exploration Ship of GSI: Samudra Ratnakar Time Zone Indian Standard Time
GMT + 05:30
1.1 Geography Religion Hinduism (~80%), Islam
India is the seventh largest country in the world (~13%), Christianity,
by area, with an area of 3.2875 million square kilo Sikhism, Buddhism,
metres (sq. km.). The mainland of India extends Jainism and others.
between latitudes 8 4 and 37 6 north, longi- Gross Domestic Product USD 2,067 billion in 2014*
tudes 68 7 and 97 25 east and measures about (at current prices)
3,214 km from north to south between the ex- Gross Domestic Product USD 7,393 billion in 2014*
treme latitudes and about 2,933 km from east to (at purchase power parity)
west between the extreme longitudes. It is bound
GDP per capita USD 1,631 in 2014*
by the Indian Ocean on the South, the Arabian (at current prices)
Sea on the South-West and the Bay of Bengal on
the South-East. India shares land borders with GDP per capita USD 5,833 in 2014*
(at purchase power parity)
Pakistan to the West; China, Nepal and Bhutan to
the North-East; and Myanmar and Bangladesh to Accounting Year April 1 to March 31
the East. India has coastline of 7,516.6 km. *Source: World Bank

1.2 Political System

India is a federal state organised into 29 states Legislative The Indian legislature com-
and 7 union territories. India is the worlds larg- prises the Lok Sabha (House of the People)
est democracy governed by the Constitution of and the Rajya Sabha (Council of States)
India with a bicameral parliamentary form of forming both the Houses of the Parliament.
government. The federal government comprises The Rajya Sabha has a maximum of 250
three branches. nominated representatives. The Lok Sabha
comprises representatives of people elected
Executive the President of India is the Head
every five years through universal adult suf-
of the State, while the Prime Minister is the
frage. Maximum strength of the Lok Sabha
Head of the Government and runs office
is 552 members and the current strength of
with the support of the Council of Ministers. the Lok Sabha is 545.

4
 1 | Introduction to India

Judicial The Supreme Court of India is current prices). Whereas on the basis of pur-
the apex body of the Indian legal system chasing power parity, the GDP of India expand-
followed by the High Courts of respective ed from USD 3,274 billion in 2005 to USD 7,393
States and subordinate Courts. billion in 2014. During the last decade, India
witnessed a consistent growth rate above 6% ex-
1.3 Economy of India cept in two years due to various macro-econom-
The Indian Rupee (symbol: `, ISO code: INR) is ic conditions.
the official currency of India. The exchange rate The sovereign debt is classified as invest-
of Rupee is market determined and the Reserve ment grade by the following major credit rating
Bank of India intervenes as and when required agencies.
to maintain a stable exchange regime (i.e. man- Standard & Poors: BBB- (Positive Outlook)
aged float). As per the World Bank, the GDP of
Fitch Ratings: BBB- (Stable Outlook)
India expanded from USD 834 billion (at current
prices) in 2005 to USD 2,067 billion in 2014 (at Moodys Ratings: Baa3 (Positive Outlook)

GDP and GDP per capita at Current Prices and Annaul

Annual GDP Growth Rate (2005-2014)
10 12
Purchase Power Parity (2005-2014)
Thousands
Trillions

8.5
9
7.5 10
8

7 6.5
8
6 5.5
Percentage

5
4.5 6
4
3.5
3 4
2.5
2

1 1.5 2
Source: World Bank GDP Growth Rate
0 0.5 Source: World Bank
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 0
GDP Current GDP PPP GDP per capita GDP per capita PPP 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

5
Exploration and Mining Opportunities in India

2 Exploration and Mining in India

2.1 Introduction 2.2 Structure of Minerals and Mining

During the last decade, India had witnessed a Sector
consistent high growth above 6% mainly due to The Ministry of Mines (MoM), Government of
rapid urbanization that has increased demand India is responsible for the entire minerals and
for infrastructure and consumer goods. This de- mining sector in the country that includes legis-
mand led to more than two fold increase in crude lation, administration, policy formulation etc. in
steel production from 32.6 million tonnes (MT) in respect of all mines and minerals other than coal
2004 to 81 MT1 in 2013 and demand for metals and lignite, natural gas and petroleum, but in-
and minerals in general. cluding offshore minerals. In India, the minerals
India, being the seventh largest country in are classified as minor minerals and major min-
the world, is well endowed with various miner- erals. The power to frame policy and legislation
al resources. Government of India has recent- relating to minor minerals is entirely delegated
ly enacted amendments to Mines and Minerals to the State Governments while policy and leg-
(Development & Regulation) Act, 1957 (MMDR) islation relating to the major minerals is dealt by
and notified rules that would help in over- the MoM. All the mineral legislations in the coun-
coming many challenges associated with the try conform to the provisions of the MMDR Act,
minerals and mining sector such as low level 1957. MoM through its attached office, Geologi-
mineral exploration and exploitation, low tech- cal Survey of India (GSI) facilitates exploration,
nology deployment, fragmented and small geological mapping and mineral resource as-
concession areas etc. India is poised to witness sessment in the country. Indian Bureau of Mines
great leaps of growth in minerals and mining (IBM), a subordinate office of the MoM is mainly
sector with the adoption of transparent and non- responsible for regulation of mining in the coun-
discretionary grant of mineral concessions through try. Mineral concessions in India are granted to
an auction process. Indian nationals or entities incorporated in India

1.Source: World Steel Association

6
 2 | Exploration and Mining in India

only. The entire sector is organised as depicted million sq. km. is mappable and GSI has covered
graphically below. 3.09611 million sq. km. (98.41%) on 1:50,000
scale till March 31, 2013. GSI has identified 0.571
2.3 Exploration in India million sq. km. as Obvious Geological Potential
(OGP) area for minerals. A major part of this
India is a mineral rich country and has favour-
OGP area is yet to be fully explored.
able geological milieu which is yet to be fully
explored, assessed and exploited. Its geological Most of the exploration activities in the
setup is similar in many ways to that of resource country are of conventional type with restricted
rich countries like Canada, Australia, Brazil, input from geochemistry, geophysics and re-
South Africa, Chile and Mexico etc. Exploration mote sensing. The finds so far, are located near
activities in India are mostly carried out by GSI, the surface (mostly up to a vertical depth of 100
MECL, various State DGMs, public sector un- m). Therefore, with fast depletion of easily ac-
dertakings (PSU) and private sector entities both cessible and shallow or near surface ore bodies
domestic and subsidiaries of many global com- and decline in the rate of locating new mineral
panies. deposits within shallow depths, the challenge
GSI, established in 1851, is the principal lies in identifying new area for locating near sur-
agency for geological mapping and regional face deposits and deep seated and concealed/
mineral resource assessment in India. India has hidden ore bodies through modern and sophis-
a total land area of 3.2875 million sq. km. spread ticated exploration methods/ techniques on the
across 5,065 topo sheets and an area of 3.146 basis of conceptual studies.

Major Minerals Minor Minerals

Policy and Legislation Ministry of Mines, GoI State Government

Regulation Indian Bureau of Mines Directorate of Geology & Mining

Central State Private

GSI, MECL & Rio Tinto India, De

Exploration Others GMDCL, CSMDCL, Beers India etc.
MPSMCL, OMCL,
RSMML, APMDCL
NMDC, SAIL, and Others Vedanta, Alcoa
Mining NALCO, MOIL etc. India, Hindalco etc.

APMDCL Andhra Pradesh Mineral Development Corporation Ltd. MPSMCL Madhya Pradesh State Mining Corporation Ltd.
CSMDCL Chhattisgarh State Mineral Development Corporation Ltd. NALCO National Aluminium Company Ltd.
GMDCL Gujarat Mineral Development Corporation Ltd. NMDC National Mineral Development Corporation Ltd.
GoI Government of India OMCL Odisha Mining Corporation Ltd.
MECL Mineral Exploration Corporation Ltd. RSMML Rajasthan State Mines & Minerals Ltd.
MOIL MOIL Ltd. SAIL Steel Authority of India Ltd.

7
Exploration and Mining Opportunities in India

India has more than 7,500 km. long coastline Obvious Geological Potential Area
and the territorial waters cover more than 0.15
Mineral Area (sq. km.)
million sq. km. Seabed resources of these areas
Gold 1,02,809
and the Exclusive Economic Zone (EEZ) covering
about 1.87 million sq. km. have also come to light Diamond and Precious Stones 3,00,000
in recent years. If legal continent shelf is taken Base Metals 1,81,150
into account, total offshore area would become Platinum Group of Elements 8,130
about 3.09 million sq. km. This may also require Iron ore 5,135
exploration of resources. Manganese ore 4,600
In the off-shore area, Marine and Coastal Chromite 2,690
Survey Division of GSI and National Institute of Manganese 6,000
Oceanography are the main institutes which are Tin and Tungsten 1,300
carrying out preliminary offshore exploration for
Bauxite 32,520
economic minerals. The explorations were main-
ly carried out for economic heavy minerals (HM),
construction sand, phosphatic nodules/sand,
lime mud and polymetallic nodules. thematic mapping and glaciological studies in
the Antarctic. Remote Sensing & Aerial Surveys
To boost mineral exploration in the coun-
(RSAS) Division of GSI is engaged in multi-
try, GSI has initiated the National Geochemical
sensor airborne surveys since 1965. The Marine
Mapping Programme (NGCM) in 2001. Stream
sediment samples are collected on a 1 km 1 km and Coastal Survey Division of GSI, besides
grid and analysed for 68 elements and the result- studying the geomorphology of the sea bed, is in-
ant geochemical values are plotted on a 1:50,000 volved in the collection of bathymetric, magnet-
scale base map. GSI also initiated National Geo- ic, seismic and sediment distribution data within
physical Mapping Programme (NGPM) to gener- the Territorial Water and the Exclusive Economic
ate basic and derived maps of Bouguer Anomaly Zone of India.
and International Geomagnetic Reference Field
(IGRF) corrected magnetic total field maps of the 2.4 Mineral Resources/Reserves
country on 1:50,000 scale at an observation den-
The data of mineral resources/reserves as per Unit-
sity of one station per 2.50 sq. km. GSI initiatives
ed Nations Framework of Classification (UNFC)
also include National Geomorphological and
for Fossil Energy and Minerals Reserves and Re-
Lineament Mapping Programme, Hyperspectral
sources 2009 is compiled and maintained by the
Mapping, Airborne Survey, Heli-borne Survey,
Indian Bureau of Mines covering the detailed in-
Aeromagnetic Survey, Polar Studies and Marine
formation on various items and deposit-wise min-
and Coastal Surveys.
eral inventory. It is updated at regular intervals
Besides initiating the NGCM and NGPM, and published annually in the form of a Mineral
GSI has also initiated National Aeromagnet- Year Book. This report covers mineral prospects/
ic Survey for the OGP areas and is expects to deposits/ mines in freehold and leasehold are-
complete it for the entire country by the end of as, their status, infrastructure, geology and ex-
2020. GSI has been associated with the Indian ploration, ore characteristics, estimated reserve/
Antarctic Programme since the beginning and resource, details of feasibility, details of mining
its scientists regularly participate in the Ant- along with production data etc. The data is sourced
arctic expeditions. The Polar Studies Division from various exploration agencies including GSI,
of GSI carries out regional geological mapping, State DGMs and public and private sector mining

8
 2 | Exploration and Mining in India

organisations. This report presently comprises a 2.5 Mineral Production

total of 16,000 deposits of which 8,000 are in free-
hold areas, 800 in public sector leasehold, 7,100 India has significantly large resources of iron
private leasehold and 100 in partly leasehold. ore, bauxite, chromium, manganese ore, baryte,
rare earths and mineral salts. In India, minerals
are broadly classified into minor minerals and
major minerals (non-minor). At present, there
are more than 3,700 active major mines in India
employing over 5 lakh people. India produced
90 minerals that included 4 fuel minerals, 11
metallic, 52 non-metallic and 23 minor miner-
als in 2012-13. The value of mineral production
in 2012-13 was Rs. 2,85,761 crore (approx. USD
44.65 billion), which is about 2.4% of the GDP.
Fuel minerals account for 64% of production,
metallic minerals 15%, non-metallic minerals
Airborne Survey Helicopter of GSI: Dhruv 3% and minor minerals 18%.

Production Indias
Mineral
World India Rank
Metallic Minerals
Bauxite 248.00 15.36 6th
Chromite 25.80 2.95 3rd
Iron ore 2,969.00 136.00 5th
Manganese ore 48.30 2.32 7th
Metals
Aluminium 47.00 1.68 8th
Copper (refined) 20.30 0.49 10th
Steel (crude/liquid) 1,547.00 78.30 4th
Lead (refined) 10.50 0.12 15th
Zinc (slab) 12.60 0.70 3rd
Industrial Minerals
Barytes 9.70 1.74 2nd
Kyanite, alusite & sillimanite 0.41 0.05 4th
Magnesite 24.50 0.21 11th
Apatite & rock phosphate 215.00 2.13 13th
Talc/steatite/ pyrophyllite 7.80 1.18 2nd
Mica (crude) 0.32 0.001 16th
Mineral Fuels
Coal & lignite 7,691.00 604.00 3rd
Petroleum (crude) 4,008.00 38.00 25th

9
Exploration and Mining Opportunities in India

3Mineral and Mining Sector

Legislation in India

3.1 Overview MMDR Act enables all the State Governments to

exercise their powers within a uniform national
Indias mineral and mining sector operates under
framework. The State Governments, as owners of
a federal structure wherein the Central Govern-
onshore minerals, grant mineral concessions and
ment formulates the legislation for all minerals
collect royalty, dead rent and fees as per the pro-
except the minor minerals and the State Govern-
visions of MMDR Act, 1957.
ments formulate legislation for minerals classified
as minor minerals. Government of India permits In case of offshore areas, the ownership of
100% Foreign Direct Investment (FDI) in explora- minerals vests exclusively with the Central Gov-
tion, mining, mineral processing and metallurgy ernment. In order to regulate the mining and de-
through the automatic route, by way of equity velopment of minerals in the offshore area, the
participation in a company incorporated in India, Parliament has enacted the Offshore Areas Min-
for all non-fuel and non-atomic minerals. erals (Development and Regulation Act, 2002.
The Act empowers the Central Government to
India has written legal and constitutional
grant mineral concessions for offshore areas and
framework to manage the mineral sector. Na-
collect royalty. The Indian Bureau of Mines has
tional Mineral Policy provides the direction for
been notified as the administrative authority for
mineral sector. Management of mining sector is
concession management of offshore areas.
the responsibility of the Central Government and
the State Governments. The State Governments
are the owners of minerals occurring onshore. 3.2 Legislation
The Constitution bestows power to the Parlia- The Mines and Minerals (Development & Regu-
ment to enact legislation relating to the mining lation) Act (MMDR), 1957 is the principle legisla-
and the States are bound by the Central legisla- tion that governs the mineral and mining sector
tion. The Mines and Mineral (Development and in India. The MMDR Act, 1957 together with the
Regulation) Act 1957 is the central legislation in following rules and legislation comprises the le-
force for regulation of mining operations. The gal framework for this sector.

10
 3 | Mineral and Mining Sector Legislation in India

Mineral Concession Rules (MCR), 1960 Offshore Areas Mineral (Development &
The MCR, 1960 defines the process of grant of Regulation) Act, 2002
mineral concessions as per the provisions of Sec- The Offshore Areas Mineral (Development and
tion 13 of the MMDR Act, 1957. The rules lay Regulation) Act, 2002, provides for development
down the process and timelines for grant of con- and regulation of mineral resources in the territo-
cessions, disposal and refusal of applications and rial waters, continental shelf, exclusive economic
the basic conduct of accounts, registers and infor- zone and other maritime zones of India and to
mation reports. provide for matters connected to it.

Mineral Conservation & Development Rules Offshore Areas Mineral Concession Rules, 2006
(MCDR), 1988 The Offshore Areas Mineral Concession Rules,
2006, lay down the process for grant and re-
The MCDR, 1988 prescribes guidelines for the
newal of reconnaissance permits, exploration li-
conservation and development of minerals as
censes and production leases as per provisions
per the provisions of Section 18 of the MMDR
of Section 35 of the Offshore Areas Mineral (De-
Act, 1957. The rules prescribe procedures for
velopment and Regulation) Act, 2002. The rules
carrying out prospecting and mining opera-
prescribe for measures for protecting the marine
tions and the general requirements relating to environment and safety measures to be followed
preparation of mining and prospecting plans in the leased area. The rules also define the op-
and filing of notices and returns. The rules also erational guidelines for each concession granted
cover guidelines for protection of the environ- under the act.
ment.
Recent Developments
Mines Act, 1952
The MMDR Act, 1957 was amended through the
The Mines Act, 1952 prescribes the laws relating MMDR Amendment Act, 2015. The amendment
to the regulation of labor safety in mines, regu- that came into force on January 12, 2015 has
lations for carrying out mining operations and ushered in the regime of transparent and non-
management of mines. It lays down the basic discretionary grant of mineral concessions. The
provisions for health and safety of people em- major features of the Amendment Act are:
ployed in mines and regulates their working Mining Leases will now be granted for a
conditions. It also has provisions relating to in- term of 50 years.
spection of mines and procedure of reporting to The mineral concessions will now be grant-
be followed. ed through auction process and will not be
renewed after the expiry of the concession.
Mines Rules, 1955
The Central Government will prescribe the
The Mines Rules, 1955 defines the framework
terms and conditions for grant of mineral
for medical examination of persons employed or
concessions through competitive bidding.
to be employed in mines, basic health and san-
Reconnaissance Permits will henceforth be
itation provisions and welfare amenities for the
granted on non-exclusive basis.
miners and their families.
The Central Government has the authority
State Minor Mineral Concession Rules to reserve mines for specific end uses at its
Various State Governments have prescribed rules discretion.
for the grant of mineral concessions in respect of District Mineral Foundation is to be set up
minerals classified as minor minerals under the in each mineral bearing district for local area
MMDR Act, 1957. development.

11
Exploration and Mining Opportunities in India

National Mineral Exploration Trust is to be pact due to mining. Besides being a regulator,
set up for regional and detailed exploration it also maintains a repository of information
in the country. relating to minerals and mining activity in the
Government of India is in the process of country and all the mines are required to file
simplifying and updating the sub-ordinate legis- mandatory returns with IBM. It also prepares
lation relating to the mineral and mining sector mineral maps, mineral resource and reserve in-
in India that includes necessary amendments to ventory and publishes technical and statistical
MCR, 1960 and MCDR, 1988. As a part of this in- information relating to the minerals and mining
itiative, the Central Government has notified the activity in the country.
following rules for implementation of provisions
of the MMDR Amendment Act, 2015. 3.4 Types of Concessions
Minerals (Evidence of Mineral Contents) As per the MMDR Amendment Act, 2015, the
Rules, 2015: Rules that prescribe procedures following three types of concessions could be
to be followed for conducting the explora- granted for exploration and mining of minerals.
tion to determine mineral content so that the Mining lease granted through auctions is trans-
mineral blocks could be taken up for auction ferable.
of mineral concessions.
1. Mining Lease
Mineral (Auction) Rules, 2015: Rules that
detail the process to be followed for auction This concession is granted through an auction
with respect to grant of minerals concessions. process where the bidder succeeding in the auc-
tion can undertake mining operations after ob-
Mineral (Non-exclusive Reconnaissance taining requisite clearances.
Permits) Rules, 2015: Rules that detail the
process to be followed for grant of Non-ex- 2. Composite Licence
clusive Reconnaissance Permit. (Prospecting Licence-cum-Mining Lease)
National Mineral Exploration Trust Rules, This licence granted through an auction process
2015: Rules that detail the objectives, func- where the bidder succeeding in the auction is re-
tions, operations of the National Mineral Ex- quired to undertake exploration and prospecting
ploration Trust. work to upgrade the exploration in the mineral
concession area within a prescribed time. On es-
3.3 Mineral Administration and tablishing the commercially exploitable mineral
content in the concession area, the concession-
Regulation
aire can apply for transition to mining lease for
Each State Government takes care of all the min- undertaking mining operations after obtaining
eral administration related matters (such as grant requisite clearances. Composite licence granted
of concessions, collection of royalties and pay- through auction is transferable.
ments etc.) within the state offices distributed
over entire state. 3. Non-exclusive Reconnaissance Permit (NERP)
Pursuant to recently notified the Mineral (Non-
Indian Bureau of Mines (IBM)
exclusive Reconnaissance Permits) Rules, 2015,
Indian Bureau of Mines, a subordinate office of this permit is granted to all the eligible explorers
the Ministry of Mines is mainly responsible for within 30 days from the date of filing of an
regulation of mining in the country. It carries online application, provided the applicant meets
out inspection of mines, approves mining plans the eligibility conditions and the application is
and mine closure plans and conducts environ- complete in all respects. The permit holder is
mental studies to minimise environmental im- not be entitled to make any claim for the grant

12
 3 | Mineral and Mining Sector Legislation in India

of any prospecting licence-cum-mining lease or the second round of auction. The highest initial
a mining lease. price offer discovered in the first round becomes
the floor price in the second round and the bid-
3.5 Grant of Mining Lease der who submits the highest final price offer is
declared as the Preferred Bidder.
Pursuant to recently notified Mineral (Auction)
Rules, 2015, the State Government issues an or- The Preferred Bidder receives the Letter of
der notifying an area for grant of Mining Lease. Intent from the State Government on submis-
Prior to auctioning the notified area(s), the State sion of the first instalment (10%) of the upfront
Government is required to complete explora- payment (i.e. 0.50% of the Value of Estimated Re-
tion up to G2 level [conforming to UNFC and sources). The Preferred Bidder becomes the Suc-
CRIRSCO standards prescribed under Minerals cessful Bidder on satisfying eligibility conditions,
(Evidence of Mineral Contents) Rules, 2015] and furnishing performance security (i.e. 0.50% of
establish indicated mineral resources in the area the Value of Estimated Resources) and obtaining
to be granted under concession. The State Gov- necessary approvals and consents. Subsequently,
ernment is also required to prepare Information the Successful Bidder needs to submit the second
Memorandum containing Geological Report, instalment (10%) of the upfront payment and
precise area maps, cadastral maps etc. and make executes a Mine Development and Production
it available as a part of the Tender Document. Agreement with the State Government. The Min-
ing Lease is executed on payment of the third in-
The State Government issues a Notice In-
stalment (80%) of upfront payment.
viting Tender where eligible bidders could par-
ticipate in a 2-round ascending forward online The upfront payment can be adjusted in full
electronic auction process. A bidder is required within the first five years of commencement of
to quote a percentage (of the value of mineral dis- mineral production. The Mining Lease will be
patched) that he is willing to share with the State valid for a period of 50 years from the date of ex-
Government. In the first round of auction, the ecution of Mining Lease. A concessionaire is not
bidder submits a technical bid and an initial price permitted to acquire one or more Mining Leases
offer [equal to or more than the Reserve Price i.e. covering a total area of more than ten sq. km. in a
minimum percentage (of the value of mineral dis- particular State. The concessionaire is permitted
patched)] and top 50% of the Technically Quali- to extract the other minerals found in the conces-
fied Bidders or 5 whichever is higher proceed to sion area subject payment of applicable levies.

State Government publishes Preferred Bidder will pay first

Eligible Bidders could participate
Notice Inviting Tender and sells installment (10%) of Upfront
in a 2-stage ascending forward e-
Payment (0.5% of the Value of
Tender Document that includes auction and bidder submitting
Estimated Resources) and receive
Geological Report and Resource highest price is chosen (as
a Letter of Intent from the State
Estimation Preferred Bidder)
Government

Mining Lease Grant Process

State Government will execute Preferred Bidder submits

Successful Bidder will sign Mine Performance Security (0.5% of the
Mining Lease deed with the
Development and Production Value of Estimated Resources),
Successful Bidder on receiving
Agreement with the State Mine Plan and second installment
third installment (80%) of Upfront (10%) of Upfront Payment to the
Government after obtaining
Payment; Concessionaire can State Government to become
necessary approvals/clearances
commence mining operations Successful Bidder

13
Exploration and Mining Opportunities in India

The concessionaire is required to complete comes the Successful Bidder on complying with
detailed exploration and prepare a detailed fea- terms of eligibility, obtaining various approvals
sibility study report conforming to the Mineral and submitting scheme of prospecting. The con-
(Evidence of Mineral Contents) Rules, 2015 over cessionaire is obliged to complete the prescribed
the entire area under the mining lease, within a level of prospecting within 3 years (extendable
period of five years from the date of commence- further for a period of 2 years).
ment of the Mining Lease. The concessionaire will be eligible for grant
of a Mining Lease, after establishing the econom-
3.6 Grant of Composite License ically extractable mineral content and obtaining
necessary clearances and approvals needed for
State Government issues an order notifying an
grant of a Mining Lease. The concessionaire is
area for grant of Composite License (i.e. Pros-
required to follow similar procedure and make
pecting License followed by a grant of Mining
payments as applicable to a Mining Lease (as
Lease) after completing exploration up to G3 lev-
described above). On surrendering the area in
el [conforming to UNFC and CRIRSCO standards
excess of maximum area limit permitted for a
prescribed under Minerals (Evidence of Mineral
Mining Lease, the concessionaire can execute a
Contents) Rules, 2015] and establishing inferred
Mining Lease deed. A concessionaire is not per-
mineral resources in the area to be granted un-
mitted to acquire one or more Prospecting Li-
der concession. The State Government is also
censes covering a total area of more than twenty
required to prepare Information Memorandum five sq. km. in a particular State.
containing Geological Report, precise area maps,
cadastral maps etc. and make it available as a
part of the Tender Document. 3.7 Grant of Non-exclusive
Composite License is also granted through Reconnaissance Permit (NERP)
a similar 2-round ascending forward online elec- Pursuant to recently notified Non-exclusive Re-
tronic auction process as followed for the grant of connaissance Permit Rules, 2015, an interested
a Mining Lease. After declaration of the Preferred applicant is required to submit an online appli-
Bidder, the State Government will issue a Letter of cation to the State Government in a prescribed
Intent on submission of the performance security format accompanied by a fee of Rs. 1,000/- per
(i.e. 0.25% of the Value of Estimated Resources) sq. km. The State Government will grant NERP
by the Preferred Bidder. The Preferred Bidder be- within 30 days from the date of filing of an appli-

State Government publishes Eligible Bidders could participate Preferred Bidder will submit
Notice Inviting Tender and sells Performance Security (0.25% of the
in a 2-stage ascending forward e-
Value of Estimated Resources) and
Tender Document that includes auction and bidder submitting
Prospecting Scheme to the State
Geological Report and Resource highest price is chosen (as Government and receives Letter of
Estimation Preferred Bidder) Intent to become Successful Bidder

Composite Licence Grant Process

Concessionaire completes G2
The remaining process is same as
level of exploration in prescribed Successful Bidder obtains necessary
that of grant of ML except
time to establish mineral content clearances and approvals and the
enhanced Performance Security
and becomes eligible for Mining State Government grants a
(0.5% of the Value of Estimated Composite Licence
Lease after surrender of area in
Resources as applicable to ML).
excess of permitted area for ML

14
 3 | Mineral and Mining Sector Legislation in India

cation and the same will be made available online step up the exploration activities. The NMET will
for the download by the applicant. seek expertise from the government entities as
The State Government will specify the valid- well as the private sector. NMET will facilitate
ity period of NERP at the time of grant and the large scale deployment of latest technologies in
validity will stand terminated over such area(s) the area of exploration.
which are notified for grant of concessions
through auction. A concessionaire is not permit- 3.9 Indicative Clearances
ted to acquire one or more NERPs covering a to-
The clearances required for exploring or mining
tal area of more than 10,000 sq. km. in a particular
an area under a grant are dependent on the type of
State, provided that area granted under a single
concession. A list of indicative clearances, approv-
NERP shall not exceed 5,000 sq. km.
als and permits may be included as a part of the
Tender Document at the time of auction by a State
3.8 National Mineral Exploration Trust Government. Some of the mandatory clearances/
(NMET) approvals, inter alia, required for commencement
of exploration or mining operations include:
Realising the need to increase the spend on the
exploration activity that would facilitate high Environment and Forest Clearance
growth in the mining sector, GoI has created Wildlife Clearance (sanctuary/ reserve/ spe-
NMET. NMET will give a fillip to the explora- cial zone clearances)
tion in the country by undertaking large scale Land Owners Consent
exploration projects. As per the recently notified
Explosive License
NMET Rules, the concessionaires (i.e. ML and
CL holders) are required to contribute 2% of the Permission for Mine Opening
royalty amount to the NMET fund. The funds Transmission line from State Transmission /
accumulated with the NMET will be utilised to Distribution Companies

15
Exploration and Mining Opportunities in India

4 Taxation and Royalties

4.1 Overview Mineral concessions are granted to only Indian
entities. A foreign company is taxed only on the
The principal taxes/ payments applicable to min-
income received in India from Indian operations.
ing industry in India are:
At present, the Income Tax is computed on
Direct Taxes Corporate Income Tax (IT) or
the basis of basic rate (30%), applicable surcharge
Minimum Alternative Tax (MAT).
(5% or 10% of the basic rate) and an Education
Indirect Taxes Custom Duty, Service Tax, Cess of 3% on total tax (i.e. tax computed using
Value Added Tax (VAT) etc. basic rate including surcharge).
Mining Levies Royalty or Dead Rent, con- A company is liable to pay the higher of two
tribution to National Mineral Exploration ways in which income tax is computed i.e. either
Trust (NMET) and District Mineral Founda- at the rate of Minimum Alternative Tax (MAT) or
tion (DMF), Surface Rent (if applicable), Ap- the normal tax rate. MAT is payable at the rate of
plication Fee (if applicable) etc. 18.5% plus applicable surcharge and an Educa-
The taxes/ levies listed above are inclusive tion Cess of 3%.
and not exhaustive; the actual amount of taxes/
levies may vary depending on the States.
4.3 Indirect Taxes
Customs Duty
4.2 Direct Taxes
The customs duty is levied on the import of goods
Income Tax (or Minimum Alternative Tax) into India as per the Customs Act, 1962 and the
As per Income Tax Act, 1961, the Income Tax is rates prescribed in the First and Second Schedule
applicable for any company incorporated in India of the Customs Tariff Act, 1975. Customs duty is
or having its management and control in India. computed on the basis of the value of the import-

Illustration: For an Indian company, the income tax is computed as follows.

Effective IT Rate Taxable Income of the Company (INR) Surcharge Applicable (%)
32.445% Greater than 10 lakh less than or equal 5
to 10 crore
33.99% Greater than 10 crore 10
Basic Rate = 30%

Illustration: For a foreign company, the income tax is computed as follows.

Effective IT Rate Taxable Income of the Company (INR) Surcharge Applicable (%)
42.024% Greater than 1 crore less than or equal 2
to 10 crore
43.26% Greater than 10 crore 5
Basic Rate = 40%

16
 4 | Taxation and Royalties

ed goods. The basic components of customs duty Value Added Tax

on imports are:
The application of Value Added Tax (VAT) is
Basic customs duty under the purview of the State Government and
Additional customs duty in lieu of excise is levied on the sale or purchase of goods within
duty the state. At present, in most states minerals
are liable for a VAT at the rate of 4% and 20%.
Special additional customs duty in lieu of
However, precious metals like gold and silver are
sales tax/Value Added Tax (VAT)
taxed at the reduced rate of 1%. Since the mine
Education cess output is subject to VAT, miners are allowed to
Secondary and Higher Education Cess claim a refund of VAT paid on their inputs. The
Mineral imports generally attract lower du- VAT cost flows from the mining company to the
ties since most minerals are not subject to excise manufacturer and then to the distributor and
duties and as a result, the additional customs reseller.
duty in lieu of excise duty is zero. Exports are
generally exempt from customs duty. 4.4 Mining Levies
Export Duty Royalty
In exceptional cases, when there is a shortfall in Royalty on mining is collected by the State Gov-
the domestic supply to satiate the domestic de- ernment. In the case of Union Territories, the
mand, the government may regulate the supply same is charged by the Central Government.
of minerals through imposition of export duties. Since August 2009, only 9 minerals (chrysotile,
dolomite, limestone including lime kankar, lime
Service Tax shell, monazite, ochre and for stowing, slate and
The Service Tax is levied by the Central Govern- tungsten) are being charged royalty on units of
ment as per the provisions of the Finance Act, production basis. Royalty on all the remaining
1994/ 2015 at the rate of 14% on specified services minerals is on ad valorem basis as percentage of
provided by service providers in India. Mining price notified by the government.
companies may attract service tax for the services The rates of royalty are notified by the Cen-
availed during exploration, mineral production, tral Government (in case of major minerals) or
handling, transportation etc. Some of the taxable the State Government (in case of minor minerals)
services relevant to the mining industry are: and vary from mineral to mineral and may be en-
Survey and exploration of minerals hanced or reduced. Any enhancement, however,
can be done only once in three years.
Site formation and clearance
Excavation, demolition and earth moving Dead Rent (if applicable)
services
In the event that a mine is temporarily closed, the
Mining of minerals lessee is required to pay dead rent. The rates can
A service provider paying the tax can claim be enhanced once in three years. A lessee is liable
a refund for the Service Tax paid on its inputs. to pay royalty or dead rent whichever is higher
However, the credit is restricted to providers and not both.
of taxable services or manufacturers of taxable
goods. No credits are available to primary pro- Contribution to National Mineral
ducers or miners, who are neither service provid- Exploration Trust
ers nor manufacturers. Exporters are allowed to The MMDR Amendment Act, 2015 envisages the
claim a refund of the Service Tax paid on their establishment of the National Mineral Explora-
inputs acquired for use in taxable activities. tion Trust (NMET) with an objective of regional

17
Exploration and Mining Opportunities in India

and detailed exploration. As per the Act, the hold- Entry Tax Levied on entry of the scheduled
er of ML or CL is required to pay a sum equal to goods into a local area for consumption, use
two percent of the royalty as a contribution to the or sale therein at such rate not exceeding
Trust. The contributions received by the NMET twelve percent of the purchase value of such
will be used for exploration activities. goods from such date as may be specified by
the State Government. The liability to pay
Contribution to District Mineral Foundation Sales Tax gets reduced by the amount of En-
The MMDR Amendment Act, 2015 envisages the try Tax paid.
establishment of the District Mineral Foundation Forest Tax Levied on forest produce re-
in all districts affected by mining related opera-
moved from forest areas.
tions and contribution received are utilised for
local area development and to promote sustaina- Compensatory Afforestation Charges
ble development in mining and exploration. Levied to promote afforestation and com-
pensate for deforestation and loss to flora in
A concessionaire holding an ML or CL
the leased forest area.
granted on or after the date of commencement of
the MMDR Amendment Act, 2015, is required to Net Present Value of Forest Land Diverted
contribute a particular amount to the DMF, be- for Mining Levied on the part of land that
sides the royalty payable. The amount of contri- has been diverted for the purpose of carrying
bution shall not exceed one-third of the royalty out exploration or mining operations. The
prescribed by the Central Government. value depends on the density of the forest.
Stamp Duty Tax levied on documents as
Surface Rent (if applicable)
per provisions of the Indian Stamp Act, 1899
A lessee may be liable to pay surface rent at the and the rules framed thereunder.
rate specified by the State Government. How-
Water Tax Charged as per the powers
ever, surface rent may not be applicable in case
granted under Article 246 and 262 of the In-
the land is owned by the State Government. For
dian Constitution.
access to surface right of the private land, lessee
may have to pay to surface rent to the private Cess is levied on mineral ore under various
owner. legislations. For instance, cess on iron ore,
manganese ore and chrome ore are levied
Application Fee under the Iron Ore Mines, Manganese Ore
Application fee may be applicable in certain in- Mines and Chrome Ore Mines Labour Wel-
stances. For e.g. an amount of Rs. 1,000 per sq. fare Cess Act, 1976.
km. is the application fee payable for Non-Exclu-
sive Reconnaissance Permit. 4.6 Incentives
Where mining is carried out in a Special Econom-
4.5 Other Levies ic Zone (SEZ) and the mined minerals are export-
In addition to the levies under the MMDR Act and ed, the mining company is eligible for tax holiday
the general taxes listed above, the concessionaire for certain number of years subject to fulfilment
may be required to pay certain other levies and of certain conditions. Special deduction on pros-
taxes during the course of mining operations de- pecting of minerals under Income Tax is available
pending on specific situations. to them.

18
 1 | Introduction to India

Appendix
Classification of Minerals in India
Major Minerals
Minerals under the First Schedule of the MMDR Act, 1957
PART A. Hydro Carbons Energy Minerals
1. Coal and Lignite

PART B. Atomic Minerals

1. Beryl and other beryllium-bearing minerals 7. Titanium bearing minerals and ores (il-
menite, rutile and leucoxene)
2. Lithium-bearing minerals 8. Tantalum-bearing minerals
3. Minerals of the rare earths group contain- 9. Uraniferous allanite, monazite and other
ing Uranium and Thorium thorium minerals
4. Niobium-bearing minerals 10. Uranium bearing tailings left over from
5. Phosphorites and other phosphatic ores con- ores after extraction of copper and gold,
taining Uranium ilmenite and other titanium ores
6. Pitchblende and other Uranium ores 11. Zirconium bearing minerals and ores in-
cluding zircon
PART C. Metallic and Non-Metallic Minerals
1. Asbestos 5. Lead
2. Chrome Ore 6. Precious stones (Diamond, Ruby )
3. Copper ore 7. Zinc
4. Gold

Metallic and Non-Metallic Minerals under the Second Schedule of the MMDR Act, 1957
8. Apatite & Rock Phosphate 19. Wollostonite
9. Garnet 20. Cadmium
10. Graphite 21. Columbite Tantalite
11. Kyanite 22. Nickel
12. Limestone 23. Perlite
13. Lime shell 24. Pyrite
14. Magnesite 25. Rock Salt
15. Selenite 26. Silver
16. Sillimanite 27. Tungsten
17. Tin 28. Vanadium
18. Vermiculite

19
Exploration and Mining Opportunities in India

Notified Minerals under the Fourth Schedule of the MMDR Act, 1957
29. Bauxite 31. Limestone
30. Iron ore 32. Manganese ore

Minor Minerals
Rule 70 of Mineral Concession Rules
1. Building Stone 4. Ordinary sand other than sand used for pre-
scribed purpose
i. purposes of refractory and manufac-
2. Gravel
ture of ceramic
ii. metallurgical purposes
3. Ordinary clay iii. for manufacture of silvicrete cement
iv. optical purposes
v. purposes of stowing in coal mines
vi. for manufacture of sodium silicate
vii. for manufacture of sodium silicate
Notification No General Statutory Rule GSR 436 dated 01.06.1958
5. Boulder 10. Brick-earth
6. Shingle 11. Fullers earth
7. Chalcedony pebbles used for ball mill 12. Bentonite
purposes only
8. Limeshell, kankar and limestone 13. Road metal
(used in kilns for manufacture of lime 14. Reh-matti
used as building material Notification No
M.II-169(40)/58 dated 20.09.1961)
9. Murrum 15. Slate and shale when used for building
material

Notification No GSR 1041 dated 03.09.1959

16. Marble

Notification No GSR 341 dated 25.02.1965

17. Stone used for making household 18. Quartzite and sandstone when used for pur-
Utensils poses of building or for making road metal
and household utensils

Notification No GSR 124 dated 28.01.1967

19. Saltpetre

Notification No GSR 95 E dated 03.02.2000

20. Ordinary earth (used or filling or levelling purposes in construction or embankments, roads,
railways, building)

20
 Appendix | Classification of Minerals in India

Notification No GSR 333 dated 10.02.2015

21. Agate 37. Gypsum
22. Ball clay 38. Jasper
23. Barytes 39. Kaolin
24. Calcareous Sand 40. Laterite
25. Calcite 41. Limekankar
26. Chalk 42. Mica
27. China clay 43. Ochre
28. Clay (Others) 44. Pyrophyllite
29. Corundum 45. Quartz
30. Diaspore 46. Quartzite
31. Dolomite 47. Sand (Others)
32. Dunite or Pyroxenite 48. Shale
33. Felsite 49. Silica Sand
34. Felspar 50. Slate
35. Fireclay 51. Steatite or Talc or Soapstone
36. Fuschite Quartzite

21
Exploration and Mining Opportunities in India

Geology of Indian Subcontinent

Indian sub-continent has a land area of 3.2875 Geological Setting of Peninsular Region
million sq. km. of which about 74% is constituted
The spatial distribution of these Precambrian
of hard rock while the remaining 26% lies under
rocks segments is restricted in the five cratonic
a thick alluvial cover. As a part of the ancient su-
areas, known as Dharwar craton, Aravalli cra-
per continent Gondwanaland, geologically India
ton, Singhbhum craton, Bastar craton and Bun-
is akin to the mineral rich counterpart continents
delkhand craton. These cratonic areas are skirted
Australia, Africa and South America and hence
holds immense potential for natural resourc- by Proterozoic mobile belts, along which the cra-
es. The country can be divided into three well tons have coalesced to form a composite land-
marked regions from south to north each having mass of the Indian Peninsular shield area.
a distinct lithological and tectonic setting. The Dharwar Craton, situated in southern
part of India, comprises mostly of Peninsular
Peninsular India Gneiss basement rock of tonalite-trondhjemite-
The first is the Peninsular or Peninsular Shield granodiorite (TTC) composition and granite-
(Shield being a term used for geologically very greenstone terrain in the north and the Proterozoic
old and stable parts of the crust) lying to the Southern Granulite Terrain in the south with
south of the plains of the Indus and Ganges river the Palghat-Cauvery shear zone marking their
systems. It has Precambrian (Archaean Prote- contact. The Dharwar craton is bounded in
rozoic) shield area, restrictively overlain by the the northeast by the Eastern Ghat Mobile Belt
Gondwana, Deccan Trap and Tertiary to Recent (EGMB). It is a granulite terrain made up of
Sedimentary Formations. charnockite, khondalite, quartzite, calc-granulite,
pyroxene granulite and leptynites.
Indo-Gangetic Alluvial Tract
The Singhbhum Craton, situated in eastern
The second division comprises these Indo- part of India, is the richest mineralized cratonic
Gangetic alluvial plains stretching across northern block in India. It comprises Archaean nucleus of
India from Assam and Bengal on the east, through South Singhbhum, Proterozoic Dalma volcanic
Bihar and Uttar Pradesh, to the Punjab on the belt and Chotanagpur Gneissic Complex (CGC).
west. It has Neogene-Quaternary sediments lying
between the Peninsular areas and the Himalayas. Central Indian Precambrian Shield is a mosa-
ic of two crustal provinces the Bastar Craton and
Extra-Peninsula Bundelkhand Craton separated by a prominent
The third is the Extra-Peninsula, the mountain- east-west trending Central Indian Shear (CIS) or
ous region formed of the mighty Himalayan Central Indian Tectonic Zone (CITZ).The cratonic
ranges, is divided into four litho-morphotecton- components of Bastar includes Basement Gneiss,
ic belts from south to north namely, (i) Foothill Sukma metamorphic suite, Bengpal Group,
belt (Sub-Himalayas), (ii) Main Himalayan belt Bailadilla group, undifferentiated granites and
(Lesser Himalayas), (iii) Indus-Shyok belt (Great basic dykes. The Bundelkhand Craton includes
Himalayas) and (iv) Karakoram belt (Tethys gneiss-supracrustal-granite litho associations of
Himalyas), extending over 2500 km. It has Pre- Mahakoshal, Sausar and Betul-Chindwara belts
cambrian shield elements and a thick sequence of and the granulites in Sausar terrain, Bundelkhand
Phanerozoic rocks. gneiss-granitoid terrain and the cover sequences

22
 1 | Introduction to India

of Vindhyan and Bijawar Supergroup. The Pre- potential exists. The major part of multi-coloured
cambrian of the Western Indian Shield compris- dimension stones is restricted to the Precambrian
es the Banded Gneissic Complex (BGC) and the terrain.
Aravalli-Delhi mobile belts with Trans-Aravalli
basins.
Geology of Extra-peninsular Area
During the Palaeoproterozoic to Neopro- The Himalayan mountain chain emerged during
terozoic period Peninsular India witnessed the the Tertiary. The foothill Himalaya is a 10 50 km
development of a number of large intracraton- wide Miocene to Recent Molasse sequence repre-
ic / pericratonic platformal sedimentary basins sented by Siwalik, Murree and Subathu Group of
referred to as the Purana basins. The basins to rocks. This is followed to the north by the Lesser
the south of the Son-Narmada-Tapti (SONATA) and Higher Himalaya, represented by geological
lineament - Cuddapah, Kaladgi-Bhima, Pakhal, sequence of Proterozoic age with Phanerozoic
Indravati, Abujhmar and Chhattisgarh occur as cover. The foothill Himalaya is separated from
isolated basins and the sediments to the north the Lesser Himalaya by the northdipping Main
form the continuous Vindhyan Basin. The Phan- Boundary Fault (MBF) or the Main Boundary
erozoic rocks in India, other than Deccan trap, are Thrust (MBT). Main Frontal Thrust (MFT) limits
mainly developed in the Gondwana basins and the margins of the Siwalik Zone against the Gan-
the western Indian shelf and coastal areas. It oc- ga Plains to the south.
cur within the suture zones of Precambrian cra-
The metallogeny of the most impressive
tonic blocks of Peninsular India and are exposed
Himalayan mountain range is not fully well stud-
along three major rift valleys, Godavari, Mahana-
ied. The Himalaya deserves a thorough scanning
di and Damodar.
for possible but varied metallogeny ranging from
The Deccan Trap of Upper Cretaceous to Eo- sedimentary-digenetic types in the Frontal belt,
cene age, however, covers a large area (0.6 mil- SEDEX type and hydrothermal deposits in Lesser
lion sq. km.) of the Peninsular India are extensive Himalaya, Tertiary granitic pluton related metal-
sheets of horizontally bedded lavas of tholeiitic lization in Central crystalline, bedded deposits in
flood basalts. Mesozoic, Tertiary and quaternary Tethyan sediments, ophiolite related metalliza-
sediments occur at places. Achaean-Proterozo- tion along Indus-Tsangpo suture zone and por-
ic sequence is by far the most important hosts phyry type deposits in Trans-Himalayan region.
for occurrence of metallic deposits. In addition, There are many prominent hydrothermal altera-
igneous, metamorphic and a few sedimentary tion zones with or without mineral shows which
rocks also form a variety of dimensional stones may also lead to metal concentration in deeper
for which large domestic market as well as export levels.

23
Metallogenic Map of India

24
Mineral Provinces
State-wise Details of Mineral Belts/Terrains within the OGP Areas
OGP area
Name of state Geological Terrain Major Mineral Commodities
(sq. km.)
Andhra Pradesh 1,31,500 Granite-gneissic terrain & lay- Gold, Diamond, Base Metal, PGE,
& Telangana ered complex of A.P., Green- Iron-ore, Manganese, Bauxite,
stone belts, EGMB, Cuddapah Limestone, Coal
basin & Pranhita-Godavari val-
ley coal field
Karnataka 80,000 Granite-greenstone terrain & Gold, Diamond, Base Metal, PGE,
layered complex, Greenstone Bauxite, Iron-ore, Manganese,
belt & Western Ghat Chromite, Limestone
Tamil Nadu 17,300 Harur-Uttangarai belt, Green- Gold, Base Metal, PGE, Iron-ore,
stone belt, Granulite belt, Sit- Bauxite, Chromite, Molybdenum,
tapundi complex, Attur-Sa- Lignite
tyamangalam belt, Neyveli &
Mannargudi lignite field
Kerala 6,000 Nilambur-Attapadi belt, West- Gold, Bauxite, PGE
ern Ghat
Maharashtra 28,100 Sakoli fold belt, Sausar belt, Gold, Base Metal, Diamond, Man-
Wairagarh belt, Satpura basin ganese, Bauxite, PGE, Coal, Iron-
ore
Madhya Pradesh 31,300 Mahakoshal fold belt, Betul belt, Gold, Base Metal, Diamond,
Aravalli fold belt, Bundelkhand Limestone, Bauxite, PGE, Coal
granitoid province, Vindhyans,
Bauxite belt of Amarkantak.
Satpura, Son-Mahanadi & Nar-
mada basin
Chhattisgarh 57,250 Sonakhan, Bailadila-Rowghat Gold, Diamond, Iron-ore, Baux-
belt, Bauxite belt of Phutka pa- ite, Limestone, Coal
har, Satpura, Son-Mahanadi &
Narmada basin
Orissa 47,025 Baula-Nuasahi belt, Gangpur Gold, Diamond, Base Metal, Iron-
belt, Bonai-Noamundi belt, Garu ore, Manganese, Chromite, PGE,
mahisani belt, Eastern Ghat Mo- Bauxite, Coal
bile belt, Part of Bastar craton,
Son-Mahanadi coal basin

25
 OGP area
Name of state Geological Terrain Major Mineral Commodities
(sq. km.)
Jharkhand & 23,550 Singbhun-Gangpur fold belt, Gold, Base Metal, Bauxite, Man-
Bihar Ranchi plateau, Chhotanagpur ganese, Chromite, PGE, Iron-ore,
gneissic complex, Rpro- Jojo- Mica, Coal
hatu belt, Son-Mahanadi valley
coal basin.
West Bengal 5,240 Singhbhum-Gangpur-Purulia Gold, Base Metal, Coal
fold belt, Daling Group, Damo-
dar - Koel & Rajmahal coal basin
Gujarat 25,100 Aravalli fold belt, South Delhi Gold, Base Metal, Bauxite, Lime-
fold belt, Cambay & Kalol basin stone, Lignite
Rajasthan 1,02,000 Bhilwara Supergroup, Aravalli Gold, Tungsten, Tin, Base Metal,
& Delhi fold belt, Sanchor lig- Limestone, Lignite
nite basin
Uttar Pradesh & 9,100 Mahakoshal fold belt, Bun- Base Metal, Diamond, Gold
Uttarakhand delkhand Granitoid province,
Vindhyans
Haryana 1,300 North Delhi fold belt, Tosham Base Metal, Tin, Tungsten
belt
Meghalaya 2,510 Shillong Plateau, Mikir Hills, Limestone, Base Metal, PGE, Iron-
Singrimari coal basin ore, Coal
Assam 940 Karbi Anglong domain, Singri- Base Metal, Iron-ore, Coal
mari coal basin
Sikkim 1,000 Daling Group Base Metal
Goa 1,500 Green stone belt Iron, Manganese, Bauxite, Gold
Total 5,70,715
Source: Geological Survey of India

26
State-wise and Mineral-wise Details within the OGP Areas
(square kilometres)
Mineral Diamond
Platinum
State & Pre- Base Manga- Molybde- Coal & Tin &
No. State Gold Group of Iron Ore Chromite Bauxite
OGP cious Metal nese num Lignite Tungsten
Elements
Stones
1 Andhra 131,500 3,000 117,000 33,000 300 400 500 - - 11,000 - 6,000
Pradesh
2 Rajasthan 102,000 25,000 85,350 - - - - - 16,000 - -
3 Karnataka 80,000 35,000 62,000 2,000 4,000 2,130 1,360 360 - - - 300
4 Chhattisgarh 57,250 2,800 45,000 205 - 7,450 350
5 Odisha 47,025 8,680 29,000 4,800 1,400 700 1,110 1,400 - 1,725 19,000
6 Madhya 31,300 5,650 18,400 9,000 - - - - - 5,600 - 350
Pradesh
7 Maharashtra 28,100 5,500 18,000 5,500 1,000 430 - - 3,100 - 750
8 Gujarat 25,100 5,500 18,300 - 5,800 1,000
9 Jharkhand & 23,550 11,180 - 12,120 430 300 600 430 - 3,350 - 250
Bihar
10 Tamil Nadu 17,300 1,000 3,000 1,500 1,000 800 500 6,000 3,300 - 200
11 Uttar Pradesh 9,100 4,500 5,600 4,500 - - - - - - - -
12 Kerala 6,000 1,000 2,000 - - - - - - - - 3,000
13 West Bengal 5,240 2,580 3,330 - - - - - 1,940 -
14 Meghalaya 2,510 - - - - - - - 760 - -
15 Goa 1,500 1,500 600 600 - - - 1,050
16 Haryana 1,300 - - - - - - - - - 1,300 -
17 Sikkim 1,000 1,000 - - - - - - - -
18 Assam 940 - - 750 - - - - - 190 - -
Total Area 570,715 112,890 300,000 181,150 8,130 5,135 4,600 2,690 6,000 60,215 1,300 32,250
Source: Geological Survey of India

27
Mineral-wise Reserves and Resources
[as on April 1, 2010 and April 1, 2013 (Projected)]
Remaining
No. Mineral Unit Reserves Total Resources
Resources
1 Alexandrite N. E. N. E. N. E.
2 Andalusite 000 tonnes 18,450 18,450
3 Antimony (P) tonnes
Ore 10,588 10,588
Metal 174 174
4 Apatite (P) tonnes 30,792 22,630,348 22,661,140
5 Asbestos tonnes 2,510,841 19,655,762 22,166,603
6 Ball Clay tonnes 16,777,842 66,615,662 83,393,504
7 Barytes tonnes 31,584,128 41,149,746 72,733,874
8 Bauxite 000 tonnes 592,938 2,886,682 3,479,620
9 Bentonite tonnes 25,060,508 543,306,838 568,367,346
10 Borax tonnes 74,204 74,204
11 Calcite tonnes 2,664,338 18,281,110 20,945,448
12 Chalk 000 tonnes 4,332 585 4,917
13 China Clay 000 tonnes 177,158 2,528,049 2,705,207
14 Chromite (P) 000 tonnes 107,221 214,530 321,751
15 Cobalt Ore (P) MT 45 45
16 Copper (P) 000 tonnes
Ore 237,573 1,273,445 1,511,018
Metal 2,997 9,222 12,219
17 Corundum (P) tonnes 597 267,218 267,815
18 Diamond (P) carats 984,875 30,876,432 31,861,307
19 Diaspore tonnes 2,859,674 3,125,144 5,984,818
20 Diatomite 000 tonnes 2,885 2,885
21 Dolomite 000 tonnes 738,185 6,992,372 7,730,557
22 Dunite 000 tonnes 17,137 168,232 185,369
23 Emerald N. E. N. E. N. E.
24 Feldspar tonnes 44,503,240 87,832,212 132,335,452
25 Fire Clay 000 tonnes 30,104 683,415 713,519
26 Fluorite (P) tonnes 4,574,118 13,614,193 18,188,311
27 Fullers Earth tonnes 58,200 256,593,879 256,652,079
28 Garnet tonnes 19,324,793 37,638,032 56,962,824

28
 Remaining
No. Mineral Unit Reserves Total Resources
Resources
29 Gold (P) tonnes
Ore (Primary) 14,615,965 480,188,061 494,804,026
Metal (Primary) 72 569 640
Ore (Placer) 26,121,000 26,121,000
Metal (Placer) 6 6
30 Granite 000 cubic metre 263,692 45,966,608 46,230,300
(Dimension Stone)
31 Graphite tonnes 8,031,864 166,817,781 174,849,645
32 Gypsum 000 tonnes 39,096 1,247,402 1,286,498
33 Iron Ore (P) 000 tonnes 6,608,287 13,967,420 20,575,707
Haematite
34 Iron Ore (P) 000 tonnes 34,592 10,712,763 10,747,355
Magnetite
35 Kyanite tonnes 1,574,853 101,670,767 103,245,620
36 Laterite (P) 000 tonnes 58,151 477,309 535,460
37 Lead and Zinc (P)
Lead and Zinc Ore 000 tonnes 102,795 606,248 709,043
Metal Lead 2,115 9,889 12,004
Zinc 10,893 24,963 35,856
Lead + Zinc 141 141
38 Limestone 000 tonnes 14,926,392 170,008,720 184,935,112
39 Magnesite (P) 000 tonnes 20,782 307,339 328,121
40 Manganese Ore 000 tonnes 141,977 288,003 429,980
41 Marble 000 tonnes 276,495 1,654,968 1,931,463
42 Marl tonnes 139,976,150 11,704,870 151,681,020
43 Mica kilogram 190,741,448 341,495,531 532,236,979
44 Molybdenum (P) tonnes
Ore 19,371,698 19,371,698
Contained MOS2 12,668 12,668
45 Nickel Ore (P) MT 189 189
46 Ochre tonnes 54,942,176 89,319,089 144,261,265
47 Perlite 000tonnes 428 1,978 2,406
48 PGM (Metal) tonnes of metal 16 16
content
49 Potash MT 21,816 21,816
50 Pyrite 000 tonnes 1,674,401 1,674,401
51 Pyrophyllite tonnes 23,275,451 32,807,451 56,082,902
52 Quartz/ Silica 000 tonnes 429,223 3,069,808 3,499,031
Sand
53 Quartzite 000 tonnes 86,599 1,164,649 1,251,248

29
 Remaining
No. Mineral Unit Reserves Total Resources
Resources
54 Rock Phosphate (P) tonnes 65,391,551 249,119,998 314,511,549
55 Rock Salt 000 tonnes 16,026 16,026
56 Ruby kilogram 236 5,112 5,348
57 Sapphire kilogram 450 450
58 Shale 000 tonnes 15,331 580 15,911
59 Sillimanite tonnes 4,085,052 62,902,385 66,987,437
60 Silver (P) tonnes
Ore 118,281,065 401,288,894 519,569,959
Metal 7,908 21,880 29,788
61 Slate 000 tonnes 2,369 2,369
62 Sulphur (Native) 000 tonnes 210 210
63 Talc/Steatite/ 000 tonnes 90,026 178,996 269,022
Soapst
64 Tin (P) tonnes
Ore 6,973 83,719,193 83,726,166
Metal 1,181 101,094 102,275
65 Titanium minerals tonnes 22,030,223 371,965,694 393,995,917
66 Tungsten (P) tonnes
Ore 87,387,464 87,387,464
Contained WO3 142,094 142,094
67 Vanadium (P) tonnes
Ore 24,633,855 24,633,855
Contained V2O5 64,594 64,594
68 Vermiculite tonnes 1,704,007 803,003 2,507,010
69 Wollastonite tonnes 2,487,122 14,082,751 16,569,873
70 Zircon tonnes 1,347,470 1,786,482 3,133,952
Source: Indian Bureau of Mines
N. E. : Not Estimated
(P) : Provisional as on 01.04.2013

30
Information for the Investors
Geological Survey of India and Indian Bureau of Compilation and digitization of ~5,000 maps
Mines could provide the following information on 1:50,000 scales in advanced stage
to the potential investors. Derivative map from Aero-geophysical Sur-
Geological Map of India (1:2M, 1:5M and vey Remote Sensing study
1:50000) Indian Mineral Year Book
Mineral Atlas of India (1:2M, 77 maps sheets) Detailed Information Dossier (DID)
Mineral Belt Map (1:50,000) For Gold, Diamond, Bauxite, Iron ores, Manga-
Tectonic Map (1:2M, 1:7.5M) nese, Molybdenum, Chromite, Tungsten and
Copper-lead-zinc (Basic data on mineral provinc-
Sea Bed Sediment Maps (1:0.5M)
es, belts, occurrences and known deposits)
Geological and Mineral Maps of states
More than 1,500 Publications
District Resource Maps More than 45,000 unpublished professional
Seismo-tectonic Atlas of India reports available in soft copies

31
Important Websites and Links
Website/Act/Rule URL
Ministry of Mines website http://www.mines.gov.in
National Mineral Policy http://mines.gov.in/writereaddata/Content/88753b05_
NMP2008[1].pdf
Mines and Minerals (Development & Regula- http://egazette.nic.in/
tion) Act, 1957 writereaddata/1957/E-2142-1957-0052-97089.pdf ;
http://ibm.nic.in/writereaddata/
files/07102014115602MMDR%20Act%20
1957_10052012.pdf
The Mines and Minerals (Development and http://www.mines.gov.in/writereaddata/Up-
Regulation) Amendment Act, 2015 loadFile/The_Mines-and-Minerals_Amendment_
Act,2015.pdf
Mineral Concession Rules, 1960 http://mines.gov.in/writereaddata/UploadFile/Min-
eral%20Concession%20Rule,%201960.pdf
Mineral Conservation & Development Rules, http://mines.gov.in/writereaddata/UploadFile/Min-
1988 eral%20Conservation%20and%20Development%20
Rules,%201988.pdf
Mineral (Auction) Rules, 2015 http://mines.gov.in/writereaddata/UploadFile/Min-
eral%20(Auction)%20Rules,%202015.pdf
The Minerals (Evidence of Mineral Contents) http://www.mines.gov.in/writereaddata/Up-
Rules, 2015 loadFile/Minerals(EvidenceofMineralContents)
Rules_2015.pdf
The Mineral (Non-exclusive Reconnaissance http://www.mines.gov.in/writereaddata/Upload-
Permit) Rules, 2015 File/1.pdf
The Mines Act, 1952 http://www.dgms.net/ma_1952.pdf, http://india.gov.
in/mines-act-1952
The Mines Rules, 1955 http://www.dgms.net/mr.pdf
The Offshore Areas Mineral (Development and http://mines.gov.in/writereaddata/UploadFile/Off-
Regulation) Act, 2002 shore_Areas_Mineral_Development_Regulation_
Act_2002.pdf
The Offshore Areas Mineral Concession Rules, http://mines.gov.in/writereaddata/UploadFile/Off-
2006 shore%20Areas%20Mineral%20Concession%20
Rules,%202006.pdf
Atomic Minerals Act http://dae.nic.in/?q=node/153
Geological Survey of India http://portal.gsi.gov.in
Income Tax website http://www.incometaxindia.gov.in/Pages/default.aspx
Service Tax website http://www.servicetax.gov.in/

32
Indian Bureau of Mines http://ibm.nic.in/
Mineral Exploration Corporation Limited http://www.mecl.gov.in/
Survey of India http://www.surveyofindia.gov.in/

State Directorates of Geology & Mining

Department of Mines and Geology, Andhra http://web-grafix.in/apmines/
Pradesh
Department of Mines & Geology, Bihar http://mines.bih.nic.in/
Directorate of Geology and Mining, Mineral http://chhattisgarhmines.gov.in/
Resources Department, Chhattisgarh
Department of Mines & Geology, Goa http://www.goadmg.gov.in/
Commissioner of Geology & Mining, Industry http://www.geomining.gujarat.gov.in/
& Mines Department, Gujarat
Department of Mines & Geology, Jharkhand http://www.jharkhand.gov.in/mines-geology
Department of Mines and Geology, Karnataka http://mines.kar.nic.in/
Directorate of Geology and Mines, Mineral Re- http://www.mineralresources.mp.gov.in/home
sources Department, Madhya Pradesh
Directorate of Geology and Mines, Maharashtra http://www.mahadgm.gov.in/Index.aspx
Directorate of Geology and Mines, Steel & http://www.orissaminerals.gov.in/Website/default-
Mines Department, Odisha new.aspx
Directorate of Geology and Mines, Rajasthan http://www.dmg-raj.org/
Department of Geology and Mining, Tamil http://www.tnmine.tn.nic.in/
Nadu
Directorate of Geology and Mining, Uttar http://mineral.up.nic.in/
Pradesh
Directorate of Mines and Minerals, West Bengal http://www.dmm.gov.in/

33