Mines policy gets cabinet approval

The National Mineral Exploration Policy, which would enable auction of 100 blocks consisting mainly of gold and diamond on a revenue sharing basis through competitive bidding route, was cleared by the Union Cabinet on Wednesday.

This newspaper had first reported about the policy being formulated by the government to boost the country’s mining potential, especially by involving the private sector in auction of mines. Out of the 100 blocks, 72 consist of gold and diamond while the rest are iron-ore blocks.

To encourage mineral exploration, the mines ministry has already not-ified the National Mine-ral Exploration Trust (NMET).

“Through this policy, the government wants to attract private sector in exploration. States will also play a greater role by referring exploration projects, which can be taken up through NMET,” sources said.

The policy has proposed that private entities engaged in carrying out regional and detailed exploration would get a certain share in revenue (by way of royalty or premium) in mining operation from the successful bidder after the e-auction of the mineral block.