The Mines and Minerals (Development and Regulation) Act, 1957

(1)This Act may be called the Mines and Minerals1(Development and Regulation) Act, 1957. (2) It extends to the whole of India. (3) It shall come into force on such date2as the Central Government may, by notification in theOfficial Gazette, appoint.

It is hereby declared that it is expedient in thepublic interest that the Union should take under its control the regulation of mines and the developmentof minerals to the extent hereinafter provided.

In this Act, unless the context otherwise requires,-- 1[(a) "composite licence" means the prospecting licence-cum-mining lease which is a two stageconcession granted for the purpose of undertaking prospecting operations followed by miningoperations in a seamless manner; (aa) "dispatch" means the removal of minerals or mineral products from the leased area andincludes the consumption of minerals and mineral products within such leased area; (ab) "Government company" shall have the same meaning as assigned to it in clause (45) ofsection 2 of the Companies Act, 2013 (18 of 2013); (ac) "leased area" means the area specified in the mining lease within which the miningoperations can be undertaken and includes the non- mineralized area required and approved for theactivities falling under the definition of "mine" as referred to in clause (i); (ad) "minerals" includes all minerals except minerals oils; (ae) "minerals concession" means either a reconnaissance permit, prospecting licence, miniglease, composite licence or a combination of any of these and the expression concession shall beconstrued accordingly;] (b) "mineral oils" includes natural gas and petroleum; (c) "mining lease" means a lease granted for the purpose of undertaking mining operations, andincludes a sub-lease granted for such purpose; (d) "mining operations" means any operations undertaken for the purpose of winning anymineral; (e) "minor minerals" means building stones, gravel, ordinary clay, ordinary sand other than sandused for prescribed purposes, and any other mineral which the Central Government may, bynotification in the Official Gazette, declare to be a minor mineral; 2[(ea) "notified minerals" means any mineral specified in the Fourth Schedule;] (f) "prescribed" means prescribed by rules made under this Act; 3[(fa) "production" or any derivative of the word production means the winning or raising ofmineral within the leased area for the purpose of processing or dispatch;] (g) "prospecting licence" means a licence granted for the purpose of undertaking prospectingoperations; 4* * * * * (h) "prospecting operations" means any operations undertaken for the purpose of exploring,locating or proving mineral deposit ; 5*** 6[(ha) "reconnaissance operations" means any operations undertaken for preliminary prospectingof a mineral through regional, aerial, geophysical or geochemical surveys and geological mapping,but does not include pitting, trenching, drilling (except drilling of boreholes on a grid specified fromtime to time by the Central Government) or sub-surface excavation; (hb) "reconnaissance permit" means a permit granted for the purpose of undertakingreconnaissance operations; 7***] 3[(hba) "Schedule" means the Schedules appended to the Act;] 8[(hc) "Special Court" means a Court of Session designated as Special Court undersub-section (1) of section 30B; and] (i) the expressions, "mine" and "owner", have the meaning assigned to them in the Mines Act,1952 (35 of 1952). 3[Explanation.--For the purpose of this clause, -- (i) a mine continues to be a mine till exhaustion of its mineable mineral reserve and a minemay have different owners during different times from the grant of first mining lease tillexhaustion of such mineable mineral reserve; (ii) the expression "mineral reserve" means the economically minearble part of a measuredand indicated mineral resource.]

(1) 1[No person shallundertake any reconnaissance, prospecting or mining operations in any area, except under and inaccordance with the terms and conditions of a reconnaissance permit or of a prospecting licence or, asthe case may be, of a mining lease, granted under this Act and the rules made thereunder]: Provided that nothing in this sub-section shall affect any prospecting or mining operationsundertaken in any area in accordance with terms and conditions of a prospecting licence or mining leasegranted before the commencement of this Act which is in force at such commencement: 2[Provided further that nothing in this sub-section shall apply to any prospecting operationsundertaken by the Geological Survey of India, the Indian Bureau of Mines, 3[the Atomic Minerals Directorate for Exploration and Research] of the Department of Atomic Energy of the CentralGovernment, the Directorates of Mining and Geology of any State Government (by whatever namecalled), and the Mineral Exploration Corporation Limited., a Government company within the meaningof 4[clause (45) of section 2 of the Companies Act, 2013 (18 of 2013), and any 5[other entities includingprivate entities that may be notified for this purpose, subject to such conditions as may be specified bythe Central Government]]:] 6[Provided also that nothing in this sub-section shall apply to any mining lease (whether calledmining lease mining concession or by any other name) in force immediately before the commencementof this Act in the Union territory of Goa, Daman and Diu.] 7[(1A) No person shall transport or store or cause to be transported or stored any mineral otherwisethan in accordance with the provisions of this Act and the rules made thereunder.] (2) 8[No 9[mineral concession]] shall be granted otherwise than in accordance with the provisions ofthis Act and the rules made thereunder. 8[(3)Any State Government may, after prior consultation with the Central Government and inaccordance with the rule made under section 18, 10[undertake reconnaissance, prospecting or miningoperations with respect to any mineral specified in the First Schedule in any area within that State whichis not already held under any 11[mineral concession]].]

1[4A.Termination of prospecting licences or mining leases.--(1) Where the Central Government,after consultation with the State Government, is of opinion that it is expedient in the interest ofregulation of mines and mineral development, preservation of natural environment, control of floods,prevention of pollution, or to avoid danger to public health or communications or to ensure safety ofbuildings, monuments or other structures or for conservation of mineral resources or for maintainingsafety in the mines or for such other purposes, as the Central Government may deem fit, it may requestthe State Government to make a premature termination of a prospecting licence or mining lease inrespect of any mineral other than a minor mineral in any area or part thereof, and, on receipt of suchrequest, the State Government shall make an order making a premature termination of such prospectinglicence or mining lease with respect to the area or any part thereof. (2) Where the State Government 2*** is of opinion that it is expedient in the interest of regulation ofmines and mineral development, preservation of natural environment, control of floods, prevention ofpollution or to avoid danger to public health or communications or to ensure safety of buildings,monuments or other structures or for such other purposes, as the State Government may deem fit, it may,by an order, in respect of any minor mineral, make premature termination of prospecting licence ormining lease with respect to the area or any part thereof covered by such licence or lease. 3[* * * * *] (3) No order making a premature termination of a prospecting licence or mining lease shall be, madeexcept after giving the holder of the licence or lease a reasonable opportunity of being heard. (4) Where the holder of a mining lease fails to undertake 4[production and dispatch] for a period of5[two years] after the date of execution of the lease or having commenced 4[production and dispatch],has discontinued the same for a period of 5[two years], the lease shall lapse on the expiry of the period of5[two years] from the date of execution of the lease or, as the case may be, discontinuance of the5[production and dispatch]: 6[Provided that the State Government may, on an application made by the holder of such lease beforeit lapses and on being satisfied that it shall not be possible for the holder of the lease to undertakeproduction and dispatch or to continue such production and dispatch for reasons beyond his control, makeanorder, within a period of three months from the date of receipt of such application,to extend the period oftwo years by a further period not exceeding one year andsuch extension shall not be granted for more thanonce during the entire periodof lease: Provided further that such lease shall lapse on failure to undertake production and dispatch or havingcommenced the production and dispatch fails to continue the same before the end of such extendedperiod.]