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SHORT NOTES ON MMDR

CHAPTER II

GENERAL RESTRICTIONS ON UNDERTAKING PROSPECTING AND MINING OPERATIONS

4. Prospecting or mining operations to be under licence oF lease. 

-No person can undertake reconnaissance, prospecting, or mining operations in any area without a reconnaissance permit, prospecting license, exploration license, or mining lease granted under this Act and its rules, unless this sub-section affects operations under a prospecting license or mining lease granted before the Act's commencement.

-This sub-section does not apply to prospecting operations conducted by the Geological Survey of India, the Indian Bureau of Mines, the Atomic Minerals Directorate for Exploration and Research, State Government Directorates of Mining and Geology, and the Mineral Exploration Corporation Limited, a government company under the Companies Act, 2013 (18 of 2013), or other entities, subject to Central Government conditions.

-This sub-section does not apply to any mining lease in force before the commencement of this Act in the Union territory of Goa, Daman, and Diu.

-(1A) This Act and its rules prohibit any person from transporting, storing, or causing to be transported or stored any mineral in any other manner.

-(2) The Act allows State Governments to undertake reconnaissance, prospecting, or mining operations for specified minerals in areas not already held under any mineral concession, after consultation with the Central Government and following rules made under section 18, after prior consultation with the Central Government.

 4A. Termination of prospecting licences, exploration licences or mining leases. -

(1) The Central Government can request the State Government to terminate a prospecting license or exploration license or mining lease for any mineral other than a minor one in any area or part thereof, after consultation with the State Government. This is done to regulate mines and mineral development, preserve the natural environment, control floods, prevent pollution, avoid public health risks, ensure safety of structures, conserve mineral resources, and maintain safety in mines.

(2) The State Government can prematurely terminate prospecting licenses or mining leases for minor minerals if it deems it necessary for various reasons, such as regulation of mines, environmental preservation, flood control, pollution prevention, public health, and safety of buildings, monuments, or other structures, or for other purposes as deemed fit.

(3) Premature termination of prospecting licenses, exploration licenses, or mining leases requires a reasonable opportunity for the holder to be heard.

(4) If a mining lease holder fails to produce and dispatch for two years after the lease's execution or discontinues production and dispatch for two years, the lease will lapse upon the expiry of the two-year period or discontinuation of production and dispatch.

The State Government can extend a lease by one year within three months of receiving an application from the holder of the lease, if they cannot continue production and dispatch due to factors beyond their control, and this extension cannot be granted more than once during the entire lease period.

The lease will lapse if production and dispatch are not undertaken or continue before the end of the extended period.