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New Delhi, 12 March 2012
Mining Sector
CHECK ILLEGAILTY
WITH GROWTH
By Dhurjati Mukherjee
Illegal mining scandals are hitting the headlines in
various States. Be it Madhya Pradesh wherein an IPS officer is alleged to have
been killed by the mining mafia, or Karnataka where the High Court has quashed
the FIR against former Chief Minister Y S Yeddyruppa in illegal mining or Goa
where the ruling Congress had to bite the dust thanks to mining scams, the
nation is unfortunately inundated by these. A concerned Centre is making
efforts to stem the rot but these may not be enough.
It cannot be denied that the mining industry itself is
facing a plethora of issues concerning environment clearances, land
acquisition, rehabilitation of the affected population, evacuation logistics et
al. Despite being one of the largest sources of minerals worldwide the problems
and scandals have come in the way of ensuring optimal extraction of such
resources.
The proposed amendment in the Mines and Minerals
(Development & Regulation) Act was expected to help address issues
affecting the growth of this sector. However, in its current form, as approved
by the Union Cabinet, the Bill has raised more concerns for the sector. While
there is little doubt that the mining sector would have a more humane face-- to
ensure better livelihood for a large section of population in the mining belt,
say for example the clause of prospective miners having to take concurrence of gram
sabhas before securing mining leases, it hasn’t gained the confidence of
the industry. Rather the latter is unhappy with some of the laws and
regulations, which it terms as stringent.
However, the tough stance in the Bill against illegal
mining is no doubt noteworthy. Under Section 30(4) of the Bill, any mining
lease can be terminated on the directive of the Centre for unlawful activities.
Indicating the Centre’s resolve to combat the menace of illegal mining head on,
the Bill very aptly provides stringent penalties including fines extending to
ten times the value of the mineral mined or three years of imprisonment or
both. Environmental concerns have also been duly considered.
It would be worthwhile if the Government made a note
of a recent report prepared by the Western Ghats Ecology Expert Panel led by
ecologist, Madav Gadgil, which recommended an indefinite moratorium on new
environmental clearances for mining in the ecologically sensitive zone (ESZ) in
Goa and Ratnigiri and Sindhudurg districts in Maharashtra.
It suggested that mining be banned in over 80 revenue blocks and strictly
regulated in another 75-odd revenue blocks or taluks spread over five states --
Maharashtra, Karnataka, Kerala, Tamil Nadu, Gujarat apart from Goa.
In ESZ-I, it suggested that all mining must be phased
out by 2016 while another significant recommendation was the setting up of the
Western Ghats Ecology Authority, under the Environment Protection Act, to
reform environmental impact analysis and clearance process and introduce
transparency. At the same time, the question of the benefits of mining
percolating down to the local communities, including tribals and the backward
castes cannot be ignored. But it is ironic that the mineral rich States such as
Jharkhand, Orissa and Chhattisgarh have a low per capita GDP compared to the
national average.
Therefore, emphasis on a sustainable development
framework was recently outlined in the strategy paper of the Ministry of Mines
among which mention may be made of the following points: enforce critical
components of sustainability through regulatory changes like increasing
financial commitment for mine closure and link it to post closure
rehabilitation cost; promote large-scale mining through creation of SPVs
similar to UMPP for large-scale power projects; incentivise private sector
R&D in mineral beneficiation and processing so as to utilize lower
grades and extract important by-product metals such as Mo, Co, Ni, platinum
group elements and rare earth elements; award companies which outperform
on sustainability; and provide best practice case studies and concepts for
implementation.
The mineral sector has the potential to accelerate the
pace of development of the economy besides generating employment for the
economically backward communities in the mineral-rich States. In addition, it
can contribute $ 55-70 billion revenue to the Central and State governments in
the form of corporate tax, royalty and export duty collections by the year
2025.
But there is need for the mining sector to adhere to
rules and regulations and adopt sustainable practices. This was the theme of
the 4th Asian Mining Congress held in Kolkata, though
many speakers emphasized on the huge potential of the mining sector and the
need for impetus for its further growth. In fact, it has been estimated that if
the potential of the sector is unlocked, it could add over $ 210 billion to the
country’s GDP and create 15 million direct and indirect jobs by the year 2025
or even earlier.
The aspect of stagnating coal input in the country is
another aspect to be considered. Delays in coal mining projects have affected
the Coal India Ltd output. Its recently retired chairman, N. C. Jha, noted that
though behind everything is the contribution of mining – directly or indirectly
– social activists and the society at large are averse to mining. Mining, he
stated, has to be done taking care of the needs of society and be responsive to
the environment for which a sustainable approach is necessary.
Accordingly, the following measures need to be
implemented: enhancing exploration through modern techniques; land acquisition
for mining in a judicious manner keeping in view social issues; introduction of
IT in mining; opening of high capacity underground mines; R&D initiatives
for effective utilization of clean coal technologies; and meeting demand
side management (as the demand for coal is expected to reach 980 million
tonnes) by the terminal year of the 12th Plan.
The question of sustainable mining in Asia is another aspect looked into by experts. Some
insist that accelerated production practices were imperative keeping in view
the need for ‘power for all’ by 2030 or 2032. Besides, a single point clearance
for mining being accorded within 90 days and also induction of modern
technology to boost up production could be done.
Some others seek exports of minerals to be discouraged
and focus on underground mining. While the aspect of undertaking major steps
for tackling problems faced by engineers and technologists is too important viz
earth resource conservation and management; solid waste disposal and management;
environmental management of abandoned and degraded land; mining in
ecologically fragile areas; and information technology and diffusion of clean
technology.
The growth of the mining sector is no doubt necessary
but the industry henceforth has to abide by the prevalent rules and
regulations, stop illegal mining and also ensure a better livelihood for the
affected population. Then only can the growth of the mining sector become
people-centric and help the overall development of the States and economy as a
whole. Besides, hopefully erase the illegal mining headlines. ---INFA
(Copyright,
India News and Feature Alliance)
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