Section 18 in Jharkhand Minor Mineral (Auction) Rules, 2017
18. Grant of Composite Licence.
(1)Upon completion of the auction process, the preferred bidder shall submit a performance security in the manner specified in sub-rule (1) of rule 19 and upon receipt of such performance security, the Director, Mines/Deputy Commissioner shall issue a letter of intent to the preferred bidder.(2)On receipt of the letter on intent the preferred bidder shall be considered to be the successful bidder upon fulfilment of the following conditions, namely:-(a)compliance with all the terms and conditions of eligibility:(b)obtaining all consents, approvals, permits, no-objections and the like as may be required under applicable laws for commencement of prospecting operations; and(c)submitting the Scheme of prospecting.(3)Upon fulfilment of the conditions specified in sub-rule (2) the Director, Mines/Deputy Commissioner shall grant a Composite Licence to the successful bidder and such Composite-Licence shall be subject to the provisions of the Act and the rules made thereunder, as applicable to a prospecting licence and mining lease.(4)The minimum area for grant of a Composite Licence shall not be less than the minimum area for which a mining lease may be granted in accordance with the provisions of the Jharkhand Minor Mineral Concession Rules, 2004 as amended from time to time and the maximum area shall be in accordance with section 6 as applicable to a prospecting licence.(5)The holder of a Composite Licence shall conduct geological exploration of the area under the Composite Licence so as to ascertain evidence of mineral contents and shall submit periodic reports in accordance with the Act and rules made thereunder, as applicable to a prospecting licence and all reports, studies and other documentation related to the geological exploration of the area under the Composite Licence shall be submitted to the Director, Mines/Deputy Commissioner.(6)If a holder of a Composite Licence,-(a)fails to complete prospecting operations or fails to establish the existence of mineral contents in accordance with the guidelines issued by the Director, Geology such holder shall not be eligible to receive a mining lease and the Composite Licence shall be terminated;(b)completes prospecting operations in accordance with the guidelines issued by the Director, Geology resulting in determination of evidence of mineral contents, such holder shall make an application to the Director, Mines/Deputy Commissioner for grant of a mining lease accompanied with the first instalment, being ten percent of the upfront payment:Provided that the mining lease shall be granted only with respect to the area for which evidence of mineral contents has been found and shall not be for an area larger than the maximum area for which a mining lease may be granted under the Act:Provided further that any excess area shall be deemed to be surrendered by the holder of Composite Licence after completing its reclamation.(7)Upon receipt of the duly completed mining lease application and the first instalment of the upfront payment as specified in clause (b) of sub-rule (6), the Director, Mines/Deputy Commissioner shall issue a letter of intent for mining lease.(8)A Mine Development and Production Agreement shall be executed between the Director, Mines/Deputy Commissioner and the holder of Composite Licence if the holder of a Composite Licence-(a)continues to comply with the terms and conditions of eligibility;(b)pays the second instalment being ten percent of the upfront payment;(c)furnishes the enhanced performance security as specified in sub-ruled(2) of rule 19;(d)satisfying the conditions with respect to Mining Plan specified in Jharkhand Minor Mineral Concession Rules, 2004 as amended from time to time;(e)obtains all consents, approvals, permits, no-objections and the like as may be required under applicable laws for commencement of mining operations; and(f)satisfies such other conditions as may be specified by the Director, Mines with the prior approval of the State Government.(9)The holder of the Composite Licence shall pay the third instalment being eighty percent of the upfront payment, subsequent to execution of the Mine Development and Production Agreement and upon such payment, the State Government shall execute a Mining Lease Deed with the holder of the Composite Licence within thirty days of the date of completion of all the conditions specified in sub-rule(8).(10)The mining lease shall be subject to the provisions of the Act and the rules made thereunder.(11)The mining lease shall be for minerals found in the area pursuant to exploration prior to the auction:Provided that where subsequent to the auction, any new mineral is discovered, then the holder of the mining lease shall follow the provisions of the Jharkahnd Minor Mineral Concession Rules, 2004 as amended from time to time for inclusion of such new mineral in the Mining Lease Deed.(12)The date on which a duly executed Mining Lease Deed is registered shall be the date of commencement of the mining lease.
