THE MINES AND MINERALS ACT, 1957

1. THE MINES AND MINERALS
ACT, 1957 By,
Santhiya C
22ENVA16

2. INTRODUCTION:
• The Government of India introduced the Mines and Minerals (Development
and Regulation) Act in 1957.
• It was introduced to manage and control minerals.
• The fundamental foundation for Indian mining regulation was provided by
this regulation.
• It provided regulations for providing out mining leases and controlling
mining actions.
• But, due to changing circumstances and requirements, amendments to the
act were deemed necessary
• Except for minor minerals and atomic minerals, all minerals are covered by
this act.
• The Act also attempts to safeguard the safety of miners and the
environment.

3. Some of the most important provisions of this Act are:
• The Act allows licenses to explore, leases to mine, and other mineral concessions.
concessions.
• The Act regulates the mining of minerals.
• The Act ensures the safety of miners.
• The Act also had provisions to safeguard the environment.
• Minerals are classified into major and minor categories under the MMDR Act.
Coal, iron ore, and bauxite are major minerals. These minerals are crucial for the
the country’s strategic importance. Sand, gravel, and limestone are minor minerals
minerals that are not strategically important.

4. • The Central Government can give leases for mining major minerals under the
MMDR Act. State Governments can give mining leases for minor minerals.
• The MMDR Act regulates mining’s environmental aspects. Mining companies
need permission from the Central Government before they can start mining.
Mining companies must follow environmental standards while mining, as required
by the Act.

5. AMENDMENTS MADE IN THE MINES AND MINERALS
(DEVELOPMENT AND REGULATION) ACT, 1957:
 To address the shortcomings and complexities of the original act. The Act has been
amended many times by MMDR Amendment Bill 2021, 2020, 2016 and 2015 to reform
the mineral sector.
 The 2015 amendment to the Mines and Minerals Act made changes to promote the
following:
• Sustainable mining,
• Transparency, and
• The welfare of affected communities.
 The Mines and Minerals Development and Regulation Act 2015 holds immense
significance in the mining sector.
 The goal is to encourage mining that is responsible and sustainable. The act protects
the communities affected by the mining sector. The Act ensures transparency and
accountability in how the mineral resources are used.

6. SCOPE OF THE MINES AND MINERALS (DEVELOPMENT AND
REGULATION) ACT 2015:
The MMDR Act 2015 expanded the scope of the original act and introduced
several key provisions, including:
• Mining License - Creation of New Category: The Mines and Minerals
Act Amendment 2015 introduced the concept of “mining license” as a new
category, allowing for greater participation and ease of obtaining licenses for
mining operations.
• Maximum Area - Amended: The maximum area that can be granted for
mining leases was increased, providing more opportunities for the exploration
and extraction of mineral resources.

7. • Creation of New Institutions: The amendment established the
National Mineral Exploration Trust (NMET) and the District Mineral
Foundation (DMF) to promote sustainable development, fund welfare
projects, and address the concerns of mining-affected communities.
• Notified Minerals and Other Minerals – Auctions: The
amendment mandated the auctioning of certain minerals, ensuring a
transparent and fair process for their allocation. This helped in reducing
discretion and preventing illegal mining activities.

8. The following are some of the key MMDR Act Amendment highlights:
• Introduction of a new system of auctioning major mineral blocks: In 2015, a new
a new system for auctioning major mineral blocks was introduced. Mineral blocks are
auctioned to the highest bidder under the new system. The system ensures efficient and
and capable companies receive allocated blocks.
• Strengthening of environmental regulations: The 2015 amendment also
strengthened the environmental regulations for mining. Mining companies must get
environmental clearances from the Central Government before starting operations, as
per the Act. The Act mandates mining companies to follow environmental standards
while mining.
The 2015 amendment to the MMDR Act was aimed at bringing transparency and
accountability to the mining sector. The auction of major mineral blocks was introduced
introduced to ensure that the blocks are allocated to the highest bidder. The creation of
of the DMFs was aimed at ensuring that the benefits of mining are shared with the local
local communities.

9. MMDR Amendment Bill, 2021:
 Transparency in the Auction Process: The bill passed by a voice vote, is aimed at
bringing more transparency in the auction processes of the mines.
 Enhancing Employment: The major objective of the amendment is to generate
employment in the mining sector and enhance the contribution of the mining sector
sector in the total GDP of the country. The Ministry of Mines has claimed an
increment of about 55 lakh direct and indirect employment to be generated due to the
the reforms.
 Attracting Domestic as well as Foreign Investment: The government, through
this amendment, is making an effort to attract domestic as well as foreign investment
investment in the mining sector plus involvement of safe and effective technology in
the sector.
 Increasing the Contribution of Mining to GDP: The objective is to enhance the
contribution of the mining sector in the GDP to up to at least 2.75% which at present
present is around 1.75%

10. PENALITIES:
• (1) Whoever obstructs the Chief Inspector and inspector or any person authorised in
the discharge of his duties or refuses or willfully neglects to afford any reasonable
facility for making any entry, inspection, examination or inquiry in relation to any
mine shall be punishable with imprisonment of a term which may extend to three
months, or with fine which may extend to five hundred rupees, or both.
• (2) Whoever refuses to produce on the demand of the Chief Inspector or any
registers or other documents kept in pursuance of this Act or prevents or attempts to
prevent or does any thing which he has reason to believe to be likely to prevent any
person from appearing before or being examined by an inspecting officer acting in
pursuance of his duties under this Act, shall be punishable with fine which may
extend to three hundred rupees.

11. Whoever contravenes any provision of the Act or of regulation, rule or bye-law or of
any order made under section 22 (1A),(2)(3) OR section 22A (2)shall be punishable:
a) If such contravention results in loss of life, with imprisonment which may
extend to two years, or with fine which may extend to five thousand rupees,
or with both, or
b) If such contravention results in serious bodily injury with imprisonment
which may extend to one years, or with fine which may extend to three
thousand rupees, or with both;
c) If such contravention otherwise causes injury or danger to persons employed
in the mine or other persons in or about the mine, with imprisonment which may
extend to three months or with fine which may extend to one thousand
rupees, or with both.

12. CONCLUSION:
• The Mines and Minerals (Development and Regulation) Act, 1957, and its
subsequent amendment in 2015 play a crucial role in regulating the mining
sector in India.
• These laws aim to strike a balance between resource extraction and
sustainable development while safeguarding the rights and interests of all
stakeholders involved.
• . This act provides for:
 The governance of mining leases within the country.
 The purpose of why the lease is given.
 How to ensure the well being of the people living in the areas where mines are
auctioned.

13. THANK YOU