Home | Databases | WorldLII | Search | Feedback Indian Numbered Acts

MINES AND MINERALS (REGULATION AND DEVELOPMENT) ACT 1957

ACT NO. 67 OF 1957 1*

1.(1)Short title, extent and commencemnt. This Act may be called the Mines and Minerals (Regulation and Development) Act, 1957.

(2) It extends to the whole of India.

(3) It shall come into force on such date 2 as the Central Government may, by notification in the Official Gazette, appoint. 2 Declaration as to expendiency of Union Control. 2.Declaration as to expendiency of Union Control. It is hereby declared that it is expedient in the public interest that the Union should take under its control the regulation of mines and the development of minerals to the extent hereinafter provided. 3 Definitions. 3.Definitions. In this Act, unless the context otherwise requires,- (a) "minerals" includes all minerals except mineral oils; (b) "mineral oils" includes natural gas and petroleum; (c) "mining lease" means a lease granted for the purpose of undertaking mining operations, and includes a sub-lease granted for such purpose; (d) "mining operations" means any operations undertaken for the purpose of winning any mineral; ---------------------------------------------------------------------- 1The Act has been extended to : Goa, Daman and Diu with modifications by Reg. 12 of 1962, s. 3 and Sch. ; Dadra and Nagar Haveli (w.e.f. 1-7-1965) by Reg. 6 of 1963, s. 2 and Sch. I; Pondicherry on 1-10-1963 with modification by Reg. 7 of 1963, s. 3 and Sch. I; Sikkim vide Notification No. S. O. 756 (E), dated the 23rd November, 1979, Gazette of India, Extraordinary, Pt. II, Sec. 3 (ii), p. 132 (with modifications), and came into force in that State w.e.f. 7-1-1980 vide Notification No. G.S.R. 2 (E), dated the 5th January, 1980, Gazette of India, Extraordinary, Pt. II, Sec. 3 (i), p. 4. 2[1st June, 1958 vide Notification No. G.S.R. 432 dated the 29th May, see Gazette of India, 1958, Extraordinary, Pt. II, 3 (i), P.

88 (e) "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sand used for prescribed purposes, and any other mineral which the Central Government may, by notification in the Official Gazette, declare to be a minor mineral; (f)"prescribed" means prescribed by rules made under this Act (g) "prospecting licence" means a licence granted for the purpose of undertaking prospecting operations ; (h) "prospecting operations" means any operations undertaken for the purpose of exploring, locating or proving mineral deposit ; and (i) the expressions, "mine" and "owner", have the meaning assigned to them in the Mines Act, 1952. GENERAL RESTRICTIONS OF UNDERTAKING PROSPECTING AND MINING OPERATIONS 4 Prospecting or mining operations to be under licence or lease. 4. Prospecting or mining operations to be under licence or

lease. (1)No person shall undertake any prospecting or mining hoperation in any area, except under and in accordance with the therms and conditions of a prospecting licence or, as the case may be, a mining granted under this Act and the rules made thereunder: Provided that nothing in this sub-section shall affect any prospecting or mining operations undertaken in any area in -accordance with terms and conditions of a prospecting licence or mining lease grant before the commencement of this Act Which is in force at Such commencement: 1[Provided further that nothing in this sub-section shall apply to any prospecting operations undertaken by the Geological Survey of India, the Indian Bureau of Mines, the Atomic Minerals. Division of the Department of Atomic Energy of the Central Government, the Directorates of Mining and Geology of any State Government (by whatever name called), and the Mineral Exploration Corporation Limited., a Government company within the meaning of section 617 of the Companies Act, 1956] 2[Provided also that nothing in this sub-section shall apply to any mining lease (whether called mining lease mining concession or by any other name) in force immediately before the commencement of this Act in the Union territory of Goa Daman and Diu.]

(2) No prospecting licence or mining lease shall be granted than in accordance with the provisions of this Act and the rules thereunder.

1[(3)Any State Government may, after prior consultation with the Central Government and in accordance with the rule made under section 18, undertake prospecting or mining operations with respect to any minerals specified in the First Schedule in any area within that State which is not already held under any prospecting licence or mining lease.]

3[4A.(1)Termination of Prospecting licences or mining leases. Where the Central Government, after consultation the State Government is of opinion that it is expedient in the interest of regulation of mines and mineral development preservation of natural environment, control of floods, prevention of pollution, or to avoid danger to public health or communications or to ensure safety of buildings, monuments or other structures or for conservation of mineral resources or for maintaining safety in the mines or for such other purposes, as the Central Government may deem fit, it may request the State Government to make a premature termination of a prospecting licence or mining lease in respect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of such request, the State Government shall make an order making a premature termination of such prospecting licence or mining lease with respect to the area or any part thereof.

(2) Where the State Government after consultation Central Government ------------------------------------------------------------------- 1 Ins by Act 56 of 1972, s.2 2 Ins by Act 37 of 1986 s.2 (w.e.f 10-2-1987) 3 Subs by s.3 ibid (w.e.f 10-2-1987) 4 Ins by Act 16 of 1987 s.14 (w.e.f 1-10-1963) ------------------------------------------------------------------ 89 5 Restrictions on the grant of prospecting licences or mining leases. 5. Restrictions on the grant of prospecting licences or mining

leases. (1)No prospecting licence or mining lease shall be granted by a State Government to any person unless he- (a) is an Indian national; and (b) satisfies such conditions as may be prescribed: Provided that in respect of any mineral specified in the First Schedule, no prospecting licence or mining lease shall be granted except with the previous approval of the Central Government. Explanation.-For the, purposes of this sub-section, a person shall be deemed to be an Indian national,- (a)in the case of a public company as defined in the Com panies Act, 1956, only if a majority of the directors of the company are citizens of India and not less than sixty per cent of the share capital thereof is held by person-, who are either citizens of India or companies as defined in the said Act; (b)in the case of a private company as defined in the said Act, only if all the members of the company are 'citizens of India; (c)in the case of a firm or other association of individuals, only if all the members of the firm or members of the association are citizens of India; and (d) in the case of an individual only if he is a citizen of India.

(2) No mining lease shall be granted by the State Government unless it is satisfied that- (a) there is evidence to show that the area for which the lease is applied for has been prospected earlier and the existence of mineral contents therein has been established: Provided that nothing in this clause shall apply to any area if such area has already been prospected by a Department or an agency of the Government and the existence of mineral contents therein has been established-, (b)there is a mining plan duly approved by the Central Government for the development of mineral deposits in the area concerned. 90 6 Maximum area for which a prospecting licence or mining lease may begranted. 6.1[ Maximum area for which a prospecting licence or mining

lease may be granted.(1)No person shall acquire 2*** in respect of any mineral or prescribed group of associated minerals- (a) one or more prospecting licences covering a total area of more than twenty-five square kilometres; or (b) one or more mining leases covering a total area of more than ten square kilometres: Provided that if the Central Government is of opinion that in the interests of the development of any mineral, it is necessary so to do it may, for reasons to be recorded by it in writing, permit any person to acquire one or more prospecting licences or mining leases covering an area in excess of the aforesaid total area ; (c) any mining lease or prospecting licence in respect of an area which is not compact or contiguous: Provided that if the Central Government is of opinion that in the interests of the development of any mineral, it is necessary so to do, it may, for reasons to be recorded in writing, permit any person to acquire a prospecting licence or mining lease in relation to any area which is not compact or contiguous.]

(2)For the purposes of this section, a person acquiring by, or in the name of, another person a prospecting licence or mining lease which is intended for himself shall be deemed to be acquiring it himself.

3[(3) For the purposes of determining the total area referred to

in sub-section (1), the area held under a prospecting licence or mining lease by a person as a member of a co-operative society, company or other corporation, or a Hindu undivided family or a partner of a firm, shall be deducted from the area referred to in sub-section

(1) so that the sum total of the area held by such person, under a prospecting licence or mining lease, whether as such member or partner, or individually, may not, in any case, exceed the total area

specified in sub-section (1).] 7 Periods for which Prospecting licences may be granted or renewel. 4[7. Periods for which Prospecting licences may be granted or

renewel. (1)The period for which a prospecting licence may be granted shall not exceed three years.

(2) A prospecting licence shall, if the State Government is Satisfied that a longer period is required to enable the licensee to complete prospecting operations, be renewed for such period or periods as that Government may specify: Provided that the total period for which a prospecting licence is granted does not exceed five years: Provided further that no prospecting licence granted in respect of a mineral included in the First Schedule shall be renewed except with the previous approval of the Central Government. -----------------------------------------------------------------------

1 Subs by Act 56 of 1972 s.3 for sub-section (1) 2 Omitted by Act 37 of 1986 s.5 (w.e.f 10-2-1987) 3 Ins by s.3 56 of 1972 4 Subs by Act 25 of 1994, 45 (w.e.f. 25-1-1994) ---------------------------------------------------------------------- 91

(1) The maximum period for which a mining lease may be granted shall not exceed thirty years: Provided that the minimum period for which any such mining lease may be granted shall not be of less than twenty years. 1. a period not exceeding twenty years.

(2) A mining lease may be renewed for a period not exceeding twenty years. Provided that no mining lease granted in respect of a mineral specified in the First Schedule shall be renewed except with the previous approval of the Central Government.

(3)Notwithstanding anything contained in sub-section (2), if the Central Government is of opinion that in the interests of mineral development it is necessary so to do, it may, for reasons to be recorded, authorise the renewal of a mining lease for a further period or periods not exceeding [ Twenty years in each case]1 9 Royalties in respect of mining leases.

9.Royalties in respect of mining leases. (1) The holder of a mining lease granted before the- commencement of this Act shall, notwithstanding anything contained in the instrument of lease or in any law in force at such commencement, pay royalty in respect of any 2[mineral removed or consumed by him or by his agent manager, employee, contractor or sub-lessee] from the leased area after such commencement, at the rate for the time being specified in the Second Schedule in respect of that mineral.

(2)The holder of a mining lease granted on or after the commence- ment of this Act shall pay royalty in respect of any 2[mineral remove or consumed by him or by his agent, manager, employee, contractor or sub-lessee] from the leased area at the rate for the time being specified in the Second Schedule in respect of that mineral. --------------------------------------------------------------------- 1 Subs by Act 25 of 1994. s.5 (w.e.f 25-5-1994) 2 Subs by Act 56 of 1972 s.4 for"mineral removed by him" --------------------------------------------------------------------- 92 1[(2A) The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972,(56 of 19722) shall not be liable to pay any royalty in respect of any coal consumed by a workman engaged in a colliery provided that such consumption by the workman does not exceed one-third of a tonne per month.]

(3)The Central Government may, by notification in the Official Gazette, amend the Second Schedule so as to enhance or reduce the rate at which royalty shall be payable in respect of any mineral with effect from such date as may be specified in the -notification : 2[Provided that the Central Government shall not enhance the rate of royalty in respect of any mineral mote than once during any period of three years.]3

4[9A.(1)Dead rent to be paid by the lessee. The holder of a mining lease, whether granted before or after the commencement of the Mines and Minerals (Regulation and Development) Amendment Act, 1972, (56 of 1972.) shall, notwithstanding anything contained in the instrument of lease or in any other law for the time being in force, pay to the State Government, every year, dead rent at such( rate as may be specified, for the time being, in the Third Schedule, for all the areas included in the instrument of lease: Provided that where the holder of such mining lease becomes liable, under section 9 to pay royalty for any mineral removed or consumed by him or by his agent, manager, employee, contractor or sub- lessee 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.

(2)The Central Government may, by notification in the Official Gazette, amend the Third Schedule so as to enhance or reduce the rate at which the dead rent shall be payable in respect of any area covered by a mining lease and such enhancement or reduction shall take effect from such date as may be specified in the notification: Provided that the Central Government shall not enhance the rate of the dead rent in respect of any such area more than once during any period of three years.]5 PROCEDURE FOR OBTAINING, PROSPECTING LICENCES OR MINING LEASES, IN RESPECT OF LAND IN WHICH THE MINERALS VEST IN THE GOVERNMENT 10 Application for propsecting licences or mining leases.

10. Application for propsecting licences or mining leases. (1) An application for a prospecting licence or a mining lease in respect of any land in which, the minerals vest in the Government -------------------------------------------------------------------- 1 Ins. by Act 56 of 1972, s. 4. 2 Subs. by s. 4, ibid., for the proviso 3 Subs by Act 37 of 1986 s.8 (w.e.f. 10-2-1987) 4 Ins by s.5 ibid 5 Subs by s.9 ibid (w.e.f. 10-2-1987) -------------------------------------------------------------------- 93 shall be made to the State Government concerned in the prescribed form and shall be accompanied by the prescribed fee.

(2)Where an application is received under sub-section (1), there shall be sent to the applicant an acknowledgment of its receipt within the prescribed time and in the prescribed form.

(3)On receipt of an application under this section, the State Government may, having regard to the provisions of this Act and any rules made thereunder, grant or refuse to grant the licence or lease. 11 Preferential right of certain persons.

11.Preferential right of certain persons. (1)Where a prospecting licence has been granted in respect of any land the licensee shall have a preferential right for obtaining a mining on respect of that land over any other person: 1[Provided that the State Government is satisfied that the:- (a) has undertaken prospecting, operations to establish mineral resources in such land; (b) has not committed any breach of the terms and conditions of the prospecting licence; and (c) is otherwise a fit person for-being granted the mining lease.]

(2)Subject to the provisions of sub-section (1), Where two or more persons have applied for a prospecting licence or a mining lease in respect of the same land, the applicant whose application was received earlier shall have a preferential right for the grant of the licence or lease as the case may be, over an applicant whose application was received later: Provided that where any such applications are received on the same day, the State Government, after taking into consideration the

matters specified in sub-section (3), may grant the prospecting licence or mining lease, as the case may be, to such one of the applicants as it may deem fit.

(3) The matters referred to in sub-section (2) are the following:- (a) any special knowledge of, or experience in, prospecting operations or mining operations, as the case may be, possessed by the applicant; (b) the financial resources of the applicant (c) the nature and quality of the technical staff employed or to be employed by the applicant:- (d) such other matters as may be prescribed.

(4) Notwithstanding anything contained in sub-section (2) but

subject to the provision of sub-section (1), the State Government may for any special reasons to be recorded and With the previous approval of the Central Government, grant a prospecting licence or a mining --------------------------------------------------------------------- 1. Subs. by Act 37 of 1986, s.10 (w.e.f.10-2-1987) --------------------------------------------------------------------- 94 lease to an applicant whose application was received later in preference to an applicant whose application was received earlier. 12 Registers of prospecting licences and mining leases.

12.Registers of prospecting licences and mining leases. (1)The State Government shall cause to be maintained in the prescribed form- (a) a register of applications for prospecting licences (b) a register of prospecting licensees ; (c) a register of applications for mining leases ; and (d) a register of mining lessees ; in each of which shall be entered such particulars as may be prescribed,

(2) Every such register shall be open to inspection by any person on payment of such fee as the State Government may fix. RULES FOR REGULATING THE (RANT OF PROSPECTING LICENCES AND MINING LEASES 13 Powers of central Government to make rules in respect of minerals. 13. Powers of central Government to make rules in respect of

minerals. (1)The Central Government may, by notification in the Official Gazette, make rules for regulating the grant of prospecting licences and mining leases in respect of minerals and for purposes connected therewith.

(2)In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely : - (a) the person by whom, and the manner in which, applications for prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be made and the fees to be paid therefore ; (b) the time within which, and the form in which, acknowledgment of the receipt of any such application may be sent respect of the same land are received on the same day: (c) the matters which may be considered where application in respect of the same land are received on the same day. 1 * * * * * * * * (e) the authority by which prospecting licences or mining leases in respect of land in which the minerals vest in the Government may be granted; (f) the procedure for obtaining a prospecting licence or a mining lease in respect of any land in which the minerals vest in a person other than the Government and the terms on --------------------------------------------------------------------- 1. omitted by act 37 of 1986,s.11 (w.e.f.10-2-1987). -------------------------------------------------------------------- 95 which, and the conditions subject to which, such a licence or lease may be granted or renewed; (g) the terms on which, and the conditions subject to which, any other prospecting licence or mining lease may be granted or renewed; (h) the facilities to be afforded by holders of mining leases to persons deputed by the Government for the purpose of undertaking research or training in matters relating to mining operations ; 1.[(i) The fixing and collection of fees for prospecting licences or mining leases, surface rent, security deposit, fines, other fees or charges and the time within which and the a manner in which the dead rent or royalty shall be payable;"] (j) the manner in which rights of third parties may be protected (whether by payment of compensation or otherwise) in cases where an such party may be prejudicially affected by reason of an prospecting or mining operations; (k) the grouping of associated minerals for the purposes of section 6 ; (l) the manner in which, and the conditions subject to which, a prospecting licence or a mining lease may be transferred; (m) the construction, maintenance and use of roads, power transmission lines, tramways, railways, aerial ropeways, pipelines and the making of passages for water for mining purposes on any land comprised in a mining lease; (n) the form of registers to be maintained under this Act; 2 * * * * * * * (p) the reports and statements to be submitted by holders of prospecting licences or owners of mines and the authority to which such reports and statements shall be submitted; (q) The period within which applications for revision of any order passed by a State Government or other authority in exercise of any power conferred by or under this act may be made 3*["the fees to be paid therefor and the documents which accompany such applications"] and the manner in which such applications shall be disposed of; and 1[(qq) the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the like destroyed by reason of any prospecting or mining operations shall be made in the same area or in any other area selected by the Central Government (whether by way of reimbursement of the cost of rehabilitation or otherwise by the person holding the pros- pecting licence or mining lease."] --------------------------------------------------------------------- 1 Subs by Act 37 of 1986 s.11(w.e.f. 10-2-1987). 2. Omitted by s.11, ibid. 3. Ins by s.11, ibids. --------------------------------------------------------------------- 96 (r) any other matter which is to be, or may be, prescribed under this Act. 1[13A. Power of Central Government to make rules for the grant of prospecting licences or mining lseases in respect of

territorial waters or continental shelf of India. (1)The Central Government may, by notification in the Official Gazette, make rules for the grant of prospecting licences or mining leases in respect of_ any minerals underlying the ocean within the territorial waters or the continental shelf of India.

(2) Without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a) the conditions, limitations and restrictions subject to which such prospecting licences or mining leases may be granted; (b) regulation of exploration and exploitation of minerals within the territorial waters or the continental shelf of India ; (c) ensuring that such exploration or exploitation does not interfere with navigation and (d) any other matter which is required to be, or may be, prescribed.] 14 Sections 4 to 13 not to apply to minor minerals. 14.Sections 4 to 13 not to apply to minor minerals. The provisions of 5[section 5 to 13] (inclusive) shall not apply to 3[quarry leases, mining leases or other mineral concessions] in respect of minor minerals. 15 Power of State Governments to make rules in respect of minor minerals. 15. Power of State Governments to make rules in respect of

minor minerals. (1)The State Government may, by notification in the Official Gazette, make rules for, regulating the grant of 4[quarry leases, mining leases or other mineral concessions] in respect of minor minerals and for purposes connected therewith. 5[(1A) In particular and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters, namely:- (a)the person by whom and the manner in which, applications for quarry leases, mining leases or other mineral concessions may be made and the fees to be paid therefore; (b)the time within which, and the form in which, acknowledgement of the receipt of any such applications may be sent; (c)the matters which may be considered where appli- cations in respect of the same land are received within the same day; (d)the terms on which, and the conditions subject to which and the authority by which quarry leases, mining leases or other mineral concessions may be granted or renewed; (e)the procedure for obtaining quarry leases, mining leases or other mineral concessions; (f)the facilities to be afforded by holders of quarry leases, mining leases or other mineral concessions to persons deputedby the Government for the purpose of undertaking researchor training in matters relating to mining operations; (g) the fixing and collection of rent, royalty, fees, dead rent, fines or other charges and the time within which and the manner in which these shall be payable; (h)the manner in which rights of third parties may be protected (whether by way of payment of compensation or otherwise) in cases where any such party is prejudicially affected by reason of any prospecting or mining operations; (i)the manner in which rehabilitation of flora and other vegetation such as trees, shrubs and the like destroyed by reason of any quarrying or mining operations shall be made in the same area or in any other area selected by the State Government (whether by way of reimbursement of the cost of rehabilitation or otherwise) by the person holding the quarrying or mining lease; (j)the manner in which and the conditions subject to which, a quarry lease, mining lease or other mineral con- cession may be transferred; (k)the construction, maintenance and use of roads power transmission lines, tramways, railways, serial rope ways, pipelines and the making of passage for water for mining purposes on any land comprised in a quarry or mining lease or other mineral concession; (l)the form of registers to be maintained under this Act, (m)the reports and statements to be submitted by holders of quarry or mining leases or other mineral concessions and the authority to which such reports and statements shall be submitted; (n)the period within which and the manner in which and the authority to which applications for revision of any order passed by any authority under these rules may be made, the fees to be paid therefore, and the powers of the revisional authority ; and (o) any other matter which is to be, or may be, prescribed.]

(2) Until rules are made under sub-section (1) , any rules made by a state Government regulating the grant of 3 [quarry leases, mining leases or other mineral concessions] in respect of minor minerals which are in force immediately before the commencement of thes Act shall continue in force.

(3) The holder of a mining lease or any other mineral concession

granted under any rule, made under sub-section (1) shall pay 1[royalty or dead rent, whichever is more] in respect of minor minerals removed or consumed by him or by agent, manager, employee, contractor or sun-lessee at the rate prescribed. --------------------------------------------------------------------- 1 Ins. by Act 56 of 1972, s.6. 2 Subs by Act 37 of 1986 s. 12 (w.e.f 10-2-1987). 3 Subs. by s.7, 56 of 1972, for certain words. 4 Subs. by s.8, 56 of 1972, for certain words. 5 Ins by s. 13, 37 of 1986 (w.e.f 10-2-1987) 6 Ins by s. 8, 56 of 1972, (with retrospective effect) 7 Subs by S. 13, 37 of 1986 --------------------------------------------------------------------- 97 for the time being in the rules framed by the State Government in respect of minor minerals: Provided that the State Government shall not enhance the rate of

[royalty or dead rent] in respect of any minor mineral for more than