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Legal Framework related to Mining and
Environment Protection
-Saloni Kulshrestha
Brief Overview
Perceptions about existing mining
sector
Effects of Mining on the
Environment
Need for Sustainable
Development
Mining and Law
Regulatory Framework for
Management of Environmental
Problems of Mining Sector
Salient features of The MMDR Act,
1957 and MMDR Amendment Bill, 2015
 India being a mineral rich country is endowed with a
large number of minerals and fuels, consisting of a total
of 88 minerals.
 Indian mining industry occupies the GDP contribution
of 2.2% to 2.5%.
 India is one of the top ten mineral producing nations in
the world coming at par with countries like United
States, China, Russia etc.
 Thus, Mining and mineral exploration is an important
industry which brings significant economic
opportunities
 As the scale of mining activity has increased, so has
the level of impact upon the environment.
 The community now expects & demands that the
resources sector must apply high standards of
environmental management to address the
Environmental issues and must integrate
environmental considerations with mine
development.
 This is where the need for sustainable development
arises
So let us now see how
environment protection forms
a part of planning and design
for obtaining approvals and
lease of contemporary Indian
mines, thereby benefiting both
the mining industry as well as
the community as a whole.
 Overlapping of interests among the three: i.e mineral reserves,
forest cover and tribal zones.
 Economic and social benefits of mining not apparent.
 There is social dissatisfaction and unrest among the people
towards the mining.
 The legal and regulatory policies regarding mining and
environment are inadequately factored focussing majorly on
long term impacts.
 Too much pressure on land, air, water, forests and biodiversity
due to excessive demand.
 Overall life quality of people damaged.
 Lack of enforcement and successful implementation of
existing sustainable mining policies.
 Air- Blasting operations at open cast and surface mines is one the main causes of air pollution from
mining operations. Also smelter operations without proper preventive actions or safeguards could be
another cause for air pollution due to pollutants resulting from heavy metals.
 Water-Water has always been important for mining as it is used in large quantity for mining
operations. Water could be polluted during a mining operation as a result of acid mine drainage, toxic
metal contamination, increased sediment level in streams. Disposal of contaminated used water is also
a big problem faced by the industry.
 Land- Land suffers the most damage of all resources, in terms of movement of rocks and over burden
(materials overlying a mineral deposit must be moved before mining) during the mining which severely
impacts surface of the earth. Other than that, deep underground or opencast mines leave the land
hollow or scarred, thus making it unfit for being used for any other purpose.
 Forest and Biodiversity- Deforestation due to mining continues to be one of the leading causes of
loss of forest cover on earth.Though deforestation may be small compared to the total amount it may
lead to loss of important biodiversity and species extinction. Moreover due to the high level of pollution
and damage caused by mining residues in form of metals, dust, contaminants etc, the land as water
bodies become poisonous and unfit for sustaining its rich biodiversity.
 Sustainable development basically means that development
should take place in such a manner that the needs of the
present generation are met without compromising with the
needs of the future generations.
 Joint Study- ‘Breaking New Ground’ –need for integration of
economic activity with environmental integrity was
recognised. Such integration aims at sustainable
development.
 According to the report ‘In the mining and metals sector,
investments should be financially profitable, technically
appropriate, environmentally sound and socially responsible’.
 Need to take into account Global Trends in sustainable
development.
 Sustainability principles have application for all stages of
mine life cycle – exploration, mine planning, construction,
mineral extraction, mine closure and post-closure
reclamation and rehabilitation
Law plays a very crucial role in moulding the
approach of mining industry with sustainable
methods:
Mining
companies
are made to
comply with
certain
prescribed
environmental
obligations at
mining sites.
Mining companies
must pay money as
security to the
Department of
Mines and Energy so
that mining sites
can be rehabilitated
and any
environmental
harm caused by
mining activities
can be cleaned up
without the
government having
to pay for it.
There are
punishments
and penalties
under criminal
offences for
mining
companies that
cause serious or
material harm
or nuisance to
the by preaching
any
environmental
obligations
An official
permission/
grant or
authorisation is
required from
the governing
authority under
the Ministry of
Mines before
undertaking
exploration or
mining
activities
mining
companies
are required
to have
certain
environment
al protection
management
systems
installed in
place for their
mining sites.
 M.C. Mehta v Union Of India & Ors the Supreme Court reached the following conclusion while discussing
the problem of environmental degradation through mining in the Aravalli region: ‘The mining activity can
be permitted only on the basis of sustainable development and on compliance of stringent conditions. The
Aravalli hill range has to be protected at any cost. In case despite stringent condition, there is an adverse
irreversible effect on the ecology in the Aravalli hill range area, at a later date, the total stoppage of mining
activity in the area may have to be considered. For similar reasons such step may have to be considered in
respect of mining in Faridabad District as well. Violation of any of the conditions would entail the risk of
cancellation of mining lease. The mining activity shall continue only on strict compliance of the stipulated
conditions.’ M.C. Mehta v Union Of India & Ors Writ Petition (civil) 4677 of 1985
 Samatha Judgement: In 1997 the Supreme court of India ruled that mining in Schedule V areas should not
be allowed without the participation of the local people. The judges laid out certain duties for any entity
that mined in Schedule areas: 20% of net profits to be set aside as a permanent fund for the establishment
and maintenance of water resources, schools, hospitals, sanitation and transport facilities, reforestation
and maintenance of ecology, among others. Samatha v State of Andhra Pradesh 1997 Supp(2) SCR 305
 The basic umbrella Act for Development and Regulation of
mineral deposits and for grant of various Mineral
Concessions.
 Applicable to all States and all Minerals except Mineral Oils.
 Provide for termination by the Central Government and the
State Governments, if in their opinion it is expedient in the
interest of preservation of natural environment, prevention
of pollution, conservation of mineral resources, safety in
mines etc.
 Indicates about payment of Royalty & Dead rent.
 Empowers Central Government to make Rules in respect of
minerals.
 Empowers State Governments to make Rules in respect of
minor minerals.
 Section 13(2) lists the matters that are covered by rules
framed by the Central Government. These matters include
the manner in which rehabilitation of flora and other
vegetation shall be made in the same area or in any other area
selected by the Central Government. Section 15(1)A(i)
includes the manner in which the rehabilitation of flora and
other vegetation shall be made in the same area or in any
other area selected by the State Govt.
 Section 18(1) delegates the powers to the Central Govt to
frame rules for major minerals for conservation and
systematic development of minerals and for the protection of
environment by preventing or controlling any pollution
which may be caused by prospecting and mining operations.
 Section 21 outlines the penalties as outlined below. It states
that whoever contravenes the provisions of sub-section (1) or
sub-section (1A) of section 4 shall be punished with
imprisonment for a term which may extend to two years or
with fine which may extend to twenty-five thousand rupees
 Transparecy :Removal of discretion, auction to be sole method of
allotment.
 The tenure of mineral leases has been increased from the existing
30 years to 50 years.
 Problem of second and subsequent renewals remaining pending:
The Bill addresses this by providing that mining leases would be
deemed to be extended from the date of their last renewal to 31st
March, 2030 (captive mines) and till 31st March, 2020 (merchant
miners) or till the completion of the renewal already granted, if
any, or a period of fifty years from the date of grant of such leave,
whichever is later.
 Safeguarding interest of affected persons: There is provision to
establish District Mineral Foundation in the districts affected by
mining related activities.
 Encouraging exploration and investment: Transfer of mineral
concessions granted through auction will be permitted in order to
encourage private investors.
 Simplification of procedures and removal of delay: The
amendment removes the need for "previous approval" from
the Central Government for grant of mineral concessions in
case of important minerals like iron ore, bauxite, manganese
etc. thereby making the process quicker and simpler.
 Stronger provisions for checking illegal mining: In order to
address the serious problem of illegal mining, the penal
provisions have been made further stringent by prescribing
higher penalties up to 5 lakh rupees per hectare and
imprisonment up to 5 years. State Governments will now be
able to set up Special Courts for trial of offenses under the
Act
 The Forest (Conservation) Act, 1980 and Rules, 1981-
 The Forest Conservation Act prohibits diversion of any
forestland to the non-forestry activities including mining.
 However with the permission of the Government of India
the diversion is permitted only if the area approved for the
mining does not contain any bio-diversity and do not harm
the ecosystem.
 All the mining projects existing or old sanctioned before
the enactment of the Act are to be reviewed before
renewing the lease.
References are also made to Revenue and Forest
Department to ascertain their views on the
suitability of the site from the point of public
nuisance or forestry angle. The area is also inspected
by a geologist of this Directorate to ascertain the
suitability of the area from mineral potential point
of view
Applications are received and processed in the
Directorate of mines.
The application is thereafter sent to the draughtsman
and surveying section to ascertain the availability of
the area
If the area involved is a forest land the case is processed for
clearance under section 2 of FCA the state govt agrees in
principle to grant the prospecting licence/mining lease.
Clearance under section 2 of FCA 1980 involves a detailed
proposal from the applicant in terms of Forest Conservation
Rules and the guidelines prescribed by Ministry of
Environment. The applicant is also directed to obtain
environmental clearance in terms of EIA Notification.
 Establishes an institutional structure for preventing and abating
water pollution. It establishes standards for water quality and
effluent. Polluting industries must seek permission to discharge
waste into effluent bodies.
 Under this act consents are required:
 To establish a mining project.
 To operate the mining project.
 While issue of these consents the Pollution Control Board
specifies the standards for water pollutants and monitor the
same
 The Water (Prevention and Control of Pollution) Cess, Act,
1977- provides framework for collection of levy and Cess on
water consumed by industries including mining industry. The
Cess collected is to be used by CPCB and PCBs to prevent and
control water pollution.
 Provides for the control and abatement of air pollution. It
entrusts the power of enforcing this act to the CPCB. This
law defined an air pollutant as “any solid, liquid or gaseous
substance present in the atmosphere in such concentration
as may be or tend to be injurious to human beings or other
living creatures or plants or property or environment.”
 Under this act consents are required:
 To establish a mining project.
 To operate the mining project.
 While issue of these consents the Pollution Control Board
specifies the standards for air
The Environment (Protection) Act, 1986
 Authorizes the central govt to protect and improve
environmental quality, control and reduce pollution
from all sources, and prohibit or restrict the setting
and /or operation of any industrial facility on
environmental grounds.
 It is under this Act that makes it mandatory for the
specified 30 categories of industries including mining
which have investment beyond certain threshold that
an Environment Impact Assessment is required.
 Provides for the protection of birds and animals and
for all matters that are connected to it whether it be
their habitat or the waterhole or the forests that
sustain them.
 In case of sanctuaries and National Park diversion is
not generally allowed unless the project is of national
importance and no other alternative is available.
 In such cases the no objection has to be initially
accorded by the Indian Board of Wildlife and State
Legislature before consideration by MoEF for
diversions.
 The mining industry, the government and the local people
must work together to care for future generations.
 There is also a need for better planning of
reclamation/restoration system to bring back the derelict
land in short time for use.
 The enabling framework needs more focused
strengthening to ensure that the principles of
environmental management practices are adopted there
should be a commitment among the stakeholders, policy
makers, and regulators at the highest level on environment
protection.
 Maybe that is how we can prevent it from being merely
a “Search and Destroy Mission”.
Thankyou.

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MINING IN INDIA

  • 1. Legal Framework related to Mining and Environment Protection -Saloni Kulshrestha
  • 2. Brief Overview Perceptions about existing mining sector Effects of Mining on the Environment Need for Sustainable Development Mining and Law Regulatory Framework for Management of Environmental Problems of Mining Sector Salient features of The MMDR Act, 1957 and MMDR Amendment Bill, 2015
  • 3.  India being a mineral rich country is endowed with a large number of minerals and fuels, consisting of a total of 88 minerals.  Indian mining industry occupies the GDP contribution of 2.2% to 2.5%.  India is one of the top ten mineral producing nations in the world coming at par with countries like United States, China, Russia etc.  Thus, Mining and mineral exploration is an important industry which brings significant economic opportunities
  • 4.  As the scale of mining activity has increased, so has the level of impact upon the environment.  The community now expects & demands that the resources sector must apply high standards of environmental management to address the Environmental issues and must integrate environmental considerations with mine development.  This is where the need for sustainable development arises
  • 5. So let us now see how environment protection forms a part of planning and design for obtaining approvals and lease of contemporary Indian mines, thereby benefiting both the mining industry as well as the community as a whole.
  • 6.  Overlapping of interests among the three: i.e mineral reserves, forest cover and tribal zones.  Economic and social benefits of mining not apparent.  There is social dissatisfaction and unrest among the people towards the mining.  The legal and regulatory policies regarding mining and environment are inadequately factored focussing majorly on long term impacts.  Too much pressure on land, air, water, forests and biodiversity due to excessive demand.  Overall life quality of people damaged.  Lack of enforcement and successful implementation of existing sustainable mining policies.
  • 7.  Air- Blasting operations at open cast and surface mines is one the main causes of air pollution from mining operations. Also smelter operations without proper preventive actions or safeguards could be another cause for air pollution due to pollutants resulting from heavy metals.  Water-Water has always been important for mining as it is used in large quantity for mining operations. Water could be polluted during a mining operation as a result of acid mine drainage, toxic metal contamination, increased sediment level in streams. Disposal of contaminated used water is also a big problem faced by the industry.  Land- Land suffers the most damage of all resources, in terms of movement of rocks and over burden (materials overlying a mineral deposit must be moved before mining) during the mining which severely impacts surface of the earth. Other than that, deep underground or opencast mines leave the land hollow or scarred, thus making it unfit for being used for any other purpose.  Forest and Biodiversity- Deforestation due to mining continues to be one of the leading causes of loss of forest cover on earth.Though deforestation may be small compared to the total amount it may lead to loss of important biodiversity and species extinction. Moreover due to the high level of pollution and damage caused by mining residues in form of metals, dust, contaminants etc, the land as water bodies become poisonous and unfit for sustaining its rich biodiversity.
  • 8.  Sustainable development basically means that development should take place in such a manner that the needs of the present generation are met without compromising with the needs of the future generations.  Joint Study- ‘Breaking New Ground’ –need for integration of economic activity with environmental integrity was recognised. Such integration aims at sustainable development.  According to the report ‘In the mining and metals sector, investments should be financially profitable, technically appropriate, environmentally sound and socially responsible’.  Need to take into account Global Trends in sustainable development.  Sustainability principles have application for all stages of mine life cycle – exploration, mine planning, construction, mineral extraction, mine closure and post-closure reclamation and rehabilitation
  • 9. Law plays a very crucial role in moulding the approach of mining industry with sustainable methods: Mining companies are made to comply with certain prescribed environmental obligations at mining sites. Mining companies must pay money as security to the Department of Mines and Energy so that mining sites can be rehabilitated and any environmental harm caused by mining activities can be cleaned up without the government having to pay for it. There are punishments and penalties under criminal offences for mining companies that cause serious or material harm or nuisance to the by preaching any environmental obligations An official permission/ grant or authorisation is required from the governing authority under the Ministry of Mines before undertaking exploration or mining activities mining companies are required to have certain environment al protection management systems installed in place for their mining sites.
  • 10.  M.C. Mehta v Union Of India & Ors the Supreme Court reached the following conclusion while discussing the problem of environmental degradation through mining in the Aravalli region: ‘The mining activity can be permitted only on the basis of sustainable development and on compliance of stringent conditions. The Aravalli hill range has to be protected at any cost. In case despite stringent condition, there is an adverse irreversible effect on the ecology in the Aravalli hill range area, at a later date, the total stoppage of mining activity in the area may have to be considered. For similar reasons such step may have to be considered in respect of mining in Faridabad District as well. Violation of any of the conditions would entail the risk of cancellation of mining lease. The mining activity shall continue only on strict compliance of the stipulated conditions.’ M.C. Mehta v Union Of India & Ors Writ Petition (civil) 4677 of 1985  Samatha Judgement: In 1997 the Supreme court of India ruled that mining in Schedule V areas should not be allowed without the participation of the local people. The judges laid out certain duties for any entity that mined in Schedule areas: 20% of net profits to be set aside as a permanent fund for the establishment and maintenance of water resources, schools, hospitals, sanitation and transport facilities, reforestation and maintenance of ecology, among others. Samatha v State of Andhra Pradesh 1997 Supp(2) SCR 305
  • 11.  The basic umbrella Act for Development and Regulation of mineral deposits and for grant of various Mineral Concessions.  Applicable to all States and all Minerals except Mineral Oils.  Provide for termination by the Central Government and the State Governments, if in their opinion it is expedient in the interest of preservation of natural environment, prevention of pollution, conservation of mineral resources, safety in mines etc.  Indicates about payment of Royalty & Dead rent.  Empowers Central Government to make Rules in respect of minerals.  Empowers State Governments to make Rules in respect of minor minerals.
  • 12.  Section 13(2) lists the matters that are covered by rules framed by the Central Government. These matters include the manner in which rehabilitation of flora and other vegetation shall be made in the same area or in any other area selected by the Central Government. Section 15(1)A(i) includes the manner in which the rehabilitation of flora and other vegetation shall be made in the same area or in any other area selected by the State Govt.  Section 18(1) delegates the powers to the Central Govt to frame rules for major minerals for conservation and systematic development of minerals and for the protection of environment by preventing or controlling any pollution which may be caused by prospecting and mining operations.  Section 21 outlines the penalties as outlined below. It states that whoever contravenes the provisions of sub-section (1) or sub-section (1A) of section 4 shall be punished with imprisonment for a term which may extend to two years or with fine which may extend to twenty-five thousand rupees
  • 13.  Transparecy :Removal of discretion, auction to be sole method of allotment.  The tenure of mineral leases has been increased from the existing 30 years to 50 years.  Problem of second and subsequent renewals remaining pending: The Bill addresses this by providing that mining leases would be deemed to be extended from the date of their last renewal to 31st March, 2030 (captive mines) and till 31st March, 2020 (merchant miners) or till the completion of the renewal already granted, if any, or a period of fifty years from the date of grant of such leave, whichever is later.  Safeguarding interest of affected persons: There is provision to establish District Mineral Foundation in the districts affected by mining related activities.  Encouraging exploration and investment: Transfer of mineral concessions granted through auction will be permitted in order to encourage private investors.
  • 14.  Simplification of procedures and removal of delay: The amendment removes the need for "previous approval" from the Central Government for grant of mineral concessions in case of important minerals like iron ore, bauxite, manganese etc. thereby making the process quicker and simpler.  Stronger provisions for checking illegal mining: In order to address the serious problem of illegal mining, the penal provisions have been made further stringent by prescribing higher penalties up to 5 lakh rupees per hectare and imprisonment up to 5 years. State Governments will now be able to set up Special Courts for trial of offenses under the Act
  • 15.  The Forest (Conservation) Act, 1980 and Rules, 1981-  The Forest Conservation Act prohibits diversion of any forestland to the non-forestry activities including mining.  However with the permission of the Government of India the diversion is permitted only if the area approved for the mining does not contain any bio-diversity and do not harm the ecosystem.  All the mining projects existing or old sanctioned before the enactment of the Act are to be reviewed before renewing the lease.
  • 16. References are also made to Revenue and Forest Department to ascertain their views on the suitability of the site from the point of public nuisance or forestry angle. The area is also inspected by a geologist of this Directorate to ascertain the suitability of the area from mineral potential point of view Applications are received and processed in the Directorate of mines. The application is thereafter sent to the draughtsman and surveying section to ascertain the availability of the area If the area involved is a forest land the case is processed for clearance under section 2 of FCA the state govt agrees in principle to grant the prospecting licence/mining lease. Clearance under section 2 of FCA 1980 involves a detailed proposal from the applicant in terms of Forest Conservation Rules and the guidelines prescribed by Ministry of Environment. The applicant is also directed to obtain environmental clearance in terms of EIA Notification.
  • 17.  Establishes an institutional structure for preventing and abating water pollution. It establishes standards for water quality and effluent. Polluting industries must seek permission to discharge waste into effluent bodies.  Under this act consents are required:  To establish a mining project.  To operate the mining project.  While issue of these consents the Pollution Control Board specifies the standards for water pollutants and monitor the same  The Water (Prevention and Control of Pollution) Cess, Act, 1977- provides framework for collection of levy and Cess on water consumed by industries including mining industry. The Cess collected is to be used by CPCB and PCBs to prevent and control water pollution.
  • 18.  Provides for the control and abatement of air pollution. It entrusts the power of enforcing this act to the CPCB. This law defined an air pollutant as “any solid, liquid or gaseous substance present in the atmosphere in such concentration as may be or tend to be injurious to human beings or other living creatures or plants or property or environment.”  Under this act consents are required:  To establish a mining project.  To operate the mining project.  While issue of these consents the Pollution Control Board specifies the standards for air
  • 19. The Environment (Protection) Act, 1986  Authorizes the central govt to protect and improve environmental quality, control and reduce pollution from all sources, and prohibit or restrict the setting and /or operation of any industrial facility on environmental grounds.  It is under this Act that makes it mandatory for the specified 30 categories of industries including mining which have investment beyond certain threshold that an Environment Impact Assessment is required.
  • 20.  Provides for the protection of birds and animals and for all matters that are connected to it whether it be their habitat or the waterhole or the forests that sustain them.  In case of sanctuaries and National Park diversion is not generally allowed unless the project is of national importance and no other alternative is available.  In such cases the no objection has to be initially accorded by the Indian Board of Wildlife and State Legislature before consideration by MoEF for diversions.
  • 21.  The mining industry, the government and the local people must work together to care for future generations.  There is also a need for better planning of reclamation/restoration system to bring back the derelict land in short time for use.  The enabling framework needs more focused strengthening to ensure that the principles of environmental management practices are adopted there should be a commitment among the stakeholders, policy makers, and regulators at the highest level on environment protection.  Maybe that is how we can prevent it from being merely a “Search and Destroy Mission”.