The Mines Act,1952

The Mines Act,1952

The Mines Act, 1952 was enacted to adjust the conditions of workers in the Mines. The Act aims to regulate the working conditions of the workers and provides the hours and limitations of employment. It ensures adequate safety measures and promotes the health and safety of mine workers. This act was passed on March 15, 1952, and became operational on July 1, 1952.

Applicability of the Mines Act, 1952:

The act does not apply when the mining is done for discovery purposes provided that the number of employees employed is not more than 20 people. The mine must exceed the depth of six metres, and for coal mining, fifteen metres.

Definition of Mine:

Section 2(1)(j) of the Mines Act, 1952 defines mines as any excavation for searching or obtaining minerals. Mines include:

1. Borings, boreholes, oil wells and crude conditioning plants that include pipes conveying mineral oil within the oil feed
2. All shafts that belong to the mine
3. All opencast working
4. All conveyors or ropeways provided for bringing or removal from mines or minerals.
5. All levels, planes, machinery, and works among others that belong to a mine
6. All the protective work got carried out in or adjacent to the mine
7. All workshops and stores situated within the surrounding area of mine that is under management
8. Power stations, transformer substations, and rectifier stations among others are used to perform the work of the mine or several mines under the same management
9. Any premises used for the depositing of sand or other material used in a mine owned by the owner of the mine

Mining Operations and Management of Mines (Chapter IV)

The Act casts duties and responsibilities on owners, agents, and managers to take suitable steps in adherence to rules and regulations. A notice of mining operations has to be given to the chief inspector, controller, Indian bureau of mines, and the district magistrate.

1. Notice to be given of mining operations [Section 16]
   1. The owner, agent or manager of a mine must give notice in writing containing particulars of the mine
2. Managers [Section 17]
   1. Every Mine is required to have a qualified manager
3. Duties and responsibilities of owners, agents, and managers [Section 18]
   1. The Managers, owners, and agents of mine are responsible for taking suitable steps in regard to matters relating to rules, regulations, and orders among other

The Mineral Laws (Amendment) Act, 2020 was introduced in March, 2020.  The Act amends the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act) and the Coal Mines (Special Provisions) Act, 2015 (CMSP Act).   An Ordinance with similar provisions was promulgated on January 10, 2020. 
 

• The MMDR Act regulates the overall mining sector in India. The CMSP Act provides for the auction and allocation of mines whose allocation was cancelled by the Supreme Court in 2014.  Schedule I of the Act provides a list of all such mines; Schedule II and III are sub-classes of the mines listed in the Schedule I.  Schedule II mines are those where production had already started then, and Schedule III mines are ones that had been earmarked for a specific end-use.
   
• Removal of restriction on end-use of coal: Currently, companies acquiring Schedule II and Schedule III coal mines through auctions can use the coal produced only for specific end-uses such as power generation and steel production.  The Bill removes this restriction on the use of coal mined by such companies.  Companies will be allowed to carry on coal mining operations for their own consumption, sale or for any other purposes, as may be specified by the central government.
   
• Eligibility for auction of coal and lignite blocks: The Bill clarifies that the companies need not possess any prior coal mining experience in India in order to participate in the auction of coal and lignite blocks.  Further, the competitive bidding process for auction of coal and lignite blocks will not apply to mines considered for allotment to: (i) a government company or its joint venture for own consumption, sale or any other specified purpose; and (ii) a company that has been awarded a power project on the basis of a competitive bid for tariff.
   
• Composite licence for prospecting and mining: Currently, separate licences are provided for prospecting and mining of coal and lignite, called prospecting licence, and mining lease, respectively.  Prospecting includes exploring, locating, or finding mineral deposits.  The Bill adds a new type of licence, called prospecting licence-cum-mining lease.  This will be a composite licence providing for both prospecting and mining activities.
   
• Non-exclusive reconnaissance permit holders to get other licences: Currently, the holders of non-exclusive reconnaissance permit for exploration of certain specified minerals are not entitled to obtain a prospecting licence or mining lease.  Reconnaissance means preliminary prospecting of a mineral through certain surveys.  The Bill provides that the holders of such permits may apply for a prospecting licence-cum-mining lease or mining lease.   This will apply to certain licensees as prescribed in the Bill.
   
• Transfer of statutory clearances to new bidders: Currently, upon expiry, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) can be transferred to new persons through auction.  This new lessee is required to obtain statutory clearances before starting mining operations.  The Bill provides that the various approvals, licences, and clearances given to the previous lessee will be extended to the successful bidder for a period of two years.   During this period, the new lessee will be allowed to continue mining operations.  However, the new lessee must obtain all the required clearances within this two-year period.
   
• Reallocation after termination of the allocations: The CMSP Act provides for the termination of allotment orders of coal mines in certain cases.  The Bill adds that such mines may be reallocated through auction or allotment as may be determined by the central government.  The central government will appoint a designated custodian to manage these mines until they are reallocated.
   
• Prior approval from the central government: Under the MMDR Act, state governments require prior approval of the central government for granting reconnaissance permit, prospecting licence, or mining lease for coal and lignite.  The Bill provides that prior approval of the central government will not be required in granting these licences for coal and lignite, in certain cases.  These include cases where: (i) the allocation has been done by the central government, and (ii) the mining block has been reserved to conserve a mineral. 
• Advance action for auction: Under the MMDR Act, mining leases for specified minerals (minerals other than coal, lignite, and atomic minerals) are auctioned on the expiry of the lease period.  The Bill provides that state governments can take advance action for auction of a mining lease before its expiry.