Union of India - Act
The Mineral Concession Rules, 1960
UNION OF INDIA
India
India
The Mineral Concession Rules, 1960
Rule THE-MINERAL-CONCESSION-RULES-1960 of 1960
- Published on 11 November 1960
- Commenced on 11 November 1960
- [This is the version of this document from 11 November 1960.]
- [Note: The original publication document is not available and this content could not be verified.]
16.
/748G.S.R. 1398, dated 11th November, 1960. - In exercise of the powers conferred by section 13 of [the Mines and Minerals (Regulation and Development) Act, 1957 (67 of 1957)] [ Nomenclature amended by Section 3 of the Mines and Minerals (Regulation and Development) Amendment Act, 1999 (38 of 1999), Now it stands as the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957).], the Central Government hereby makes the following rules, namely:-Chapter I
Preliminary
1. Short title
.-These rules may be called The Mineral Concession Rules, 1960.2. Definitions
.-In these rules, unless the context otherwise requires,-3. [ Saving of Act 33 of 1962 [Substituted by G.S.R. 908(E), dated 19.10.1963. ]
.-Nothing in these rules shall affect the provisions of the Atomic Energy Act, 1962 (33 of 1962, ][and the rules made thereunder in respect of licensing relating to atomic minerals listed in Part B of the First Schedule to the Act] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).].[Chapter II] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).] Grant Of Reconnaissance Permits4. Application for reconnaissance permit
.-(1) An application for reconnaissance permit shall be made to the State Government in Form A through such officer or authority as the State Government may specify in this behalf.4A. Acknowledgement of application
.-(1) Where an application for the grant of reconnaissance permit is delivered personally, its receipt shall be acknowledged forthwith.5. Refusal of application for a reconnaissance permit
.-(1) The State Government may after giving an opportunity of being heard and for reasons to be recorded in writing and communicated to the applicant, refuse to grant a reconnaissance permit over the whole or part of the area applied for.6. Status of grant on death of the applicant for reconnaissance permit
.-(1) Where an applicant for the grant of reconnaissance permit dies before the order granting him a reconnaissance permit is passed, the application for the grant of reconnaissance permit shall be deemed to have been made by his legal representative.7. Conditions of a reconnaissance permit
.-(1) Every reconnaissance permit granted under these rules, shall, in addition to any other conditions that may be specified therein, be subject to the following conditions, namely:-(i)The holder of reconnaissance permit shall progressively relinquish the area granted under the permit as follows:-(a)After completion of two years, the area shall be reduced to one thousand square kilometres or fifty per cent. of the area granted, whichever is less; and(b)The area would be further relinquished so that the permit holder is left with an area not more than twenty-five square kilometres at the end of the third year.(ii)The holder of the reconnaissance permit shall strictly adhere to the minimum expenditure commitment and specific physical targets specified in the order of grant of the permit failing which reconnaissance permit may be cancelled.(iii)The holder of reconnaissance permit shall make available all data collected by him during the reconnaissance operations to the Geological Survey of India, Indian Bureau of Mines and the State Government which may be made available to any prospecting investor after a minimum period of two years of the completion of the period of reconnaissance permit.(iv)The holder of reconnaissance permit shall not enter any forest land or any private land without obtaining permission of the Forest Department or the owner of the private land, as the case may be.(v)The holder of reconnaissance permit shall maintain accurate faithful account of all the expenses incurred by him on the reconnaissance operations.(vi)The holder of reconnaissance permit shall submit to the State Government a six monthly report of the work done by him and the valuable data collected by him during the period. The report shall be submitted within three months of the close of the period to which it relates.(vii)The permit holder shall also submit to the State Government within three months of the expiry of the permit, or abandonment of the operations or termination of the permit, whichever is earlier, a full report of the work done by him and all information relevant to mineral resources acquired by him in the course of reconnaissance permit in the area covered by the permit.(viii)While submitting reports under sub-clause (vi) or (vii), the permit holder may specify that the whole or any part of the report or data submitted by him shall be kept confidential; and the State Government shall thereupon, keep the specified portions as confidential for a period of two years from the expiry of the permit, or abandonment of operations or termination of the permit, whichever is earlier.(ix)The permit holder shall allow every officer authorised by the Central Government or the State Government in this behalf to examine at any time accounts maintained and furnish to the Central Government or the State Government or any other officer authorised by it in that behalf such information and returns.(x)The permit holder shall allow any officer authorised by the Central Government or the State Government in this behalf to inspect any reconnaissance operations carried on by him.(xi)The permit holder shall pay such permit fee as may be fixed by the State Government, being not less than five rupees per square kilometre and not more than twenty rupees per square kilometre of land held by the permit holder for each year or part thereof.7.
-A. Reconnaissance permit to be executed within three months.-(1) Where on any application for a reconnaissance permit an order has been made for the grant of such permit, a deed granting such permit shall be executed within ninety days of the date of the communication of the order or such further period as the State Government may allow in this behalf, and if no such deed is executed within such period due to any fault on the part of the applicant, the State Government may revoke the order granting the reconnaissance permit and in that event the fee paid shall be forfeited to the State Government.7.
-B. Security deposit.-(i) An applicant for a reconnaissance permit shall, before deed referred to in sub-rule (1) of rule 7-A is executed, deposit as security for the observance of the terms and conditions of the permit a sum of twenty rupees in respect of every square kilometre or part thereof for which the permit is granted.7.
-C. Prospecting licenses and mining leases of other minerals.-The applications received for grant of prospecting licenses or mining leases within the area granted under reconnaissance permit for minerals other than those for which the permit has been granted, shall not be refused on the grounds that the area is not available for grant. The State Government shall dispose of such applications as per provisions of these rules:Provided that if a prospecting license or a mining lease for other mineral has been granted to some other applicant within the area granted for a reconnaissance permit and where the reconnaissance permit holder discovers availability of minerals covered under his permit within the area so granted subsequently for prospecting or mining of minerals other than those covered under the reconnaissance permit, he shall have the right to get such areas vacated from the licensee or the lessee, as the case may be, and such licensee or lessee shall not hinder the reconnaissance operations being undertaken by the reconnaissance permit holder.7.
-D. Registers.-(1) A register of applications for reconnaissance permits shall be maintained by the State Government in Form G-1.Chapter III
Grant Of Prospecting Licenses In Respect Of Land In Which The Minerals Vest In The Government
8. [ Applicability of Chapter II, Chapter III and Chapter IV [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]
.-The provisions of Chapter II, Chapter III and Chapter IV shall apply to the grant of reconnaissance permits as well as grant and renewal of prospecting licenses and mining leases only in respect of the land in which the minerals vest in the Government of a State.]9. Application for prospecting license and its renewal
.-(1) An application for [a prospecting license and its renewal in respect of land in which the minerals vest in Government shall be made to the State Government in Form B and Form E, respectively] [ Substituted by G.S.R. 1278, dated 3.8.1963.] through such officer or authority as the State Government may specify in this behalf.10. Acknowledgment of application
.-(1) Where an application for the grant or renewal of a prospecting license is delivered personally, its receipt shall be acknowledged forthwith.11. Disposal of application for the grant and renewal of prospecting license
.- [* * *] [ Sub-Rule (1) omitted by G.S.R. 6(E), dated 7.1.1993.]12. Refusal of application for a prospecting license
.-(1) [The State Government may, ] [Substituted by G.S.R. 1243, dated 18.7.1963. ][after giving an opportunity of being heard and] [ Inserted by G.S.R. 734, dated 2.5.1979.] [for reasons to be recorded in writing and communicated to the applicant, refuse to grant or renew a prospecting license over the whole or part of the area applied for.] [Substituted by G.S.R. 1243, dated 18.7.1963. ][(1-A) An application for the grant or renewal of a prospecting license made under rule 9 shall not be refused by the State Government only on the ground that Form B or Form E, as the case may be, is not complete in all material particulars, or is not accompanied by the documents referred to in ] [Inserted by G.S.R. 734, dated 2.5.1979. ][clauses (d), (e), (f) and (g) of sub-rule (2)] [ Substituted by G.S.R. 449(E), dated 13.4.1988.] [of the said rule.] [Inserted by G.S.R. 734, dated 2.5.1979. ][(1-B) Where it appears that the application is not complete in all material particulars or is not accompanied by the required documents, the State Government shall, by notice, require the applicant to supply the omission or, as the case may be, furnish the documents without delay and in any case not later than thirty days from the date of receipt of the said notice by the applicant.] [ Inserted by G.S.R. 734, dated 2.5.1979.]14. Conditions of a prospecting license
.-(1) Every prospecting license granted under these rules, shall, in addition to any other conditions that may be specified therein, be subject to the following conditions, namely:-(i)the licensee shall pay such prospecting fee as may be fixed by the State Government, [being not less than rupee one and not more than rupees ten] [ Substituted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).] per hectare of land covered by the license for each year or part of a year of the period for which the license is granted or renewed;(ii)[ the licensee may win and carry for purposes other than commercial purposes- [Substituted by G.S.R. 724(E), dated 27.9.1994. ](a)any quantity of such minerals within the limits specified under column 3 of Schedule III without any payment;(b)any quantity of such minerals not exceeding the limit specified under column 4 of Schedule III, on payment of royalty for the time being specified in the Second Schedule to the Act in respect of those minerals:Provided that if any quantity in excess of the quantities specified in sub-clause (b) is won and carried away, the State Government may recover the cost of the excess quantity of minerals won and carried away;(iii)with the written approval of the State Government, the licensee may carry away quantities of minerals in excess of the limits specified in Schedule III, on payment of royalty for the time being specified in the Second Schedule to the Act, for chemical, metallurgical, ore-dressing and other test purposes;](iv)save in the case of land in respect of which the licensee is granted a mining lease, he shall, within six months next after the determination of the license or the date of abandonment of the prospecting operations, whichever is earlier, securely plug all bores and fill up or fence all excavations in the land covered by the license;(v)[ the licensee shall report to the State Government the discovery of any mineral not specified in the license within a period of sixty days from the date of such discovery. Consequent upon such reporting, such newly discovered mineral shall be deemed to have been included in the prospecting license;] [Substituted by G.S.R. 724(E), dated 27.9.1994. ][* * *] [ Clause (vi) omitted by G.S.R. 724(E), dated 27.9.1994.](vii)the licensee shall not, except with the previous sanction of the State Government, transfer his license:[Provided that no prospecting license shall be transferred to any person who has not filed an affidavit stating that he has filed an up-to-date income-tax returns and paid the income-tax assessed on him and paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961 (43 of 1961), and except on payment to the State Government of a fee of five hundred rupees:Provided further that the State Government shall not grant its sanction for the transfer of prospecting license unless the transferee has accepted all the conditions and liabilities which the transferor has in respect of such prospecting license:Provided also that the State Government may, by order in writing after providing the licensee the opportunity of being heard, cancel such prospecting license at any time if the licensee has, in the opinion of the State Government, committed a breach of this clause or rule 15-A;] [Substituted by G.S.R. 31(E), dated 22.1.2001, for the proviso (w.e.f. 22.1.2001). Earlier, it was inserted by G.S.R. 56(E), dated 17.1.2000. ](viii)[ the licensee shall not pay a wage less than the minimum wage prescribed by the Central or the State Government from time to time under the Minimum Wages Act, 1948 (11 of 1948);] [ Inserted by G.S.R. 86(E), dated 10.2.1987. ](ix)the licensee shall observe the provisions of the Mines Act, 1952 [(35 of 1952) and the provisions of the Atomic Energy Act, 1962 (33 of 1962), in so far as the latter relate to atomic minerals included in Part B of the First Schedule to the Act;] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](x)[ the licensee shall- [ Substituted by G.S.R. 449(E), dated 13.4.1988, for Clause (x). Earlier, it was inserted by G.S.R. 86(E), dated 10.2.1987.](a)take immediate measures for the planting in the same area or any other area selected by the Central or the State Government not less than twice the number of trees destroyed by reason of any prospecting operations;(b)look after them during subsistence of the license after which these shall be handed over to the State Forest Department or any other authority as may be nominated by the Central or State Government;(c)restore, to the extent possible, other flora destroyed by prospecting operations;](xi)[ the licensee shall pay to the occupier of surface of the land such compensation as may become payable under these rules; [ Inserted by G.S.R. 86(E), dated 10.2.1987.](xii)the licensee shall comply with the Mineral Conservation and Development Rules framed under section 18:][* * *] [ First proviso omitted by G.S.R. 724(E), dated 27.9.1994.][* * *] [ Second proviso omitted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]15. License to be executed within three months
.-(1) Where on any application for a prospecting license an order has been made for the grant of such license, a deed granting such license shall be executed within ninety days of the date of the communication of the order or such further period as the State Government may allow in this behalf, and if no such deed is executed within the said period due to any default on the part of the applicant, the State Government may revoke the order granting the license and in that event the fee paid shall be forfeited to the State Government.16. [ Report of information obtained by the licensee [Substituted by G.S.R. 835, dated 31.5.1979. ]
.-(1) The licensee shall submit to the State Government a ][six monthly report] [ Substituted by G.S.R. 724(E), dated 27.9.1994.][of the work done by him stating the number of persons engaged and disclosing in full the geological, geophysical or other valuable data collected by him during the period. The report shall be submitted within three months of the close of the period to which it relates.17.
[* * *] [ Rule 17 omitted by G.S.R. 724(E), dated 27.9.1994.]18. Maintenance of accounts
.-Every licensee shall maintain [an accurate] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).] and faithful account of all the expenses incurred by him on prospecting operations and also the quantity and other particulars of all minerals obtained during such operations and their despatch.19. Inspection
.-(1) The licensee shall allow every officer authorised by the Central Government or the State Government in this behalf to examine at any time accounts maintained under rule 18 and furnish to the Central Government or the State Government such information and returns as it or any officer authorised by it in that behalf may require.20. Security deposit
.-(1) An applicant for a prospecting license shall, before the deed referred to in sub-rule (1) of rule 15 is executed, deposit as security for the due observance of the terms and conditions of the license [a sum of two thousand five hundred rupees] [ Substituted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).] in respect of the every square kilometre or part thereof for which the license is granted.21. Registers
.-(1) A register of applications for prospecting licenses shall be maintained by the State Government in Form G.Chapter IV
Grant Of Mining Leases In Respect Of Land In Which The Minerals Vest In The Government
22. Applications for grant of mining leases
.-(1) An application for the grant of a mining lease in respect of land in which the minerals vest in the Government shall be made to the State Government in Form I through such officer or authority as the State Government may specify in this behalf.[* * *] [ Sub-Rule (2) omitted by G.S.R. 703, dated 30.3.1968.]23. Acknowledgment of application
.-(1) Where an application for the grant or renewal of a mining lease is delivered personally, its receipt shall be acknowledged forthwith.24. Disposal of application for mining lease
.- [* * *] [ Sub-Rule (1) omitted by G.S.R. 6(E), dated 7.1.1993.][* * *] [ Sub-Rule (2) omitted by G.S.R. 86(E), dated 10.2.1987.][* * *] [ Sub-Rule (3) omitted by G.S.R. 6(E), dated 7.1.1993.]| [24-A. Renewal of mining lease [Inserted by G.S.R. 86(E), dated 10.2.1987.].-(1) An application for the renewal of a mining lease shall be made to the State Government in Form J, at least twelve months before the date on which the lease is due to expire, through such officer or authority as the State Government may specify in this behalf.]](2) [ The renewal or renewals of a mining lease granted in respect of a mineral specified in Part A and Part B of the First Schedule to the Act may be granted by the State Government with the previous approval of the Central Government.(3) The renewal or renewals of a mining lease granted in respect of a mineral not specified in Part A and Part B of the First Schedule to the Act may be granted by the State Government:] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).][Provided that before granting approval for second or subsequent renewal of a mining lease, the State Government shall seek a report from the Controller General, Indian Bureau of Mines, as to whether it would be in the interest of mineral development to grant the renewal of the mining lease:Provided further that in case a report is not received from Controller General, Indian Bureau of Mines in a period of three months of receipt of the communication from the State Government, it would be deemed that the Indian Bureau of Mines has no adverse comments to offer regarding the grant of the renewal of mining lease.] [ Inserted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).][* * *] [ Sub-Rules (4) and (5) omitted by G.S.R. 6(E), dated 7.1.1993.](6) [ If an application for first renewal of a mining lease made within the time referred to in sub-rule (1) is not disposed of by the State Government before the date of expiry of the lease, the period of that lease shall be deemed to have been extended by a further period of two years or till the State Government passes order thereon, whichever is earlier:Provided that the leases where applications for first renewal of mining lease have been made to the State Government and which have not been disposed of by the State Government before the date of expiry of lease and are pending for disposal as on the date of the notification of this amendment, shall be deemed to have been extended by a further period of two years from the date of coming into force of this amendment or till the State Government passes order thereon or the date of expiry of the maximum period allowed for first renewal, whichever is the earliest:Provided further that the provisions of this sub-rule shall not apply to renewal under sub-section (3) of Section 8 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957).][* * *] [ Sub-Rule (7) omitted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](8) [ Notwithstanding anything contained in sub-rule (1) and sub-rule (6), an application for the first renewal of a mining lease, so declared under the provisions of section 4 of the Goa, Daman and Diu Mining Concession (Abolition and Declaration as Mining Lease) Act, 1987, shall be made to the State Government in Form J before the expiry of the period of mining lease in terms of sub-section (1) of section 5 of the said Act, through such officer or authority as the State Government may specify in this behalf:Provided that the State Government may, for reasons to be recorded in writing and subject to such conditions as it may think fit, allow extension of time for making of such application upto a total period not exceeding one year.] [ Inserted by G.S.R. 855(E), dated 14.10.1987.](9) [ If an application for first renewal made within the time referred to in sub-rule (8) or within the time allowed by the State Government under the proviso to sub-rule (8), the period of that lease shall be deemed to have been extended by a further period till the State Government passes orders thereon[or the date of expiry of the maximum period allowed for first renewal, whichever is earlier.] [ Substituted by G.S.R. 724(E), dated 27.9.1994, for sub-Rule (9). Earlier, it was inserted by G.S.R. 855(E), dated 14.10.1987.](10) [ The State Government may condone delay in an application for renewal of mining lease made after the time limit prescribed in sub-rule (1) provided the application has been made before the expiry of the lease.] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).][Substituted by Notification No. G.S.R. 510 (E) dated 18.7.2014 (w.e.f. 11.11.1960)] |
25.
[* * *] [ Rule 25 omitted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).][25-A. Status of the grant on the death of applicant for mining lease [Inserted by G.S.R. 129(E), dated 20.2.1991. ].-(1) Where an applicant for grant or renewal of mining lease dies before the order granting him a mining lease or its renewal is passed, the application for the grant or renewal of a mining lease shall be deemed to have been made by his legal representative.26. [ Refusal of application for grant and renewal of mining lease [Substituted by G.S.R. 1243, dated 18.7.1963. ]
.- ][(1)] [ Rule 26 renumbered as sub-Rule (1) thereof by G.S.R. 734, dated 2.5.1979.][The State Government may, after giving an opportunity of being heard and] [ Substituted by G.S.R. 449(E), dated 13.4.1988.][for reasons to be recorded in writing and communicated to the applicant, refuse to grant or renew a mining lease over the whole or part of the area applied for.] [Substituted by G.S.R. 1243, dated 18.7.1963. ]27. Conditions
.-(1) Every mining lease shall be subject to the following conditions [* * *] [ Certain words omitted by G.S.R. 449(E), dated 13.4.1988.]:-(a)the lessee shall report to the State Government the discovery in the leased area of any mineral not specified in the lease, within sixty days of such discovery;(b)if any mineral not specified in the lease is discovered in the leased area, the lessee shall not win and dispose of such mineral unless such mineral is included in the lease or a separate lease is obtained therefor;(c)the lessee shall pay, for every year, except the first year of the lease, such yearly dead rent [at the rates specified in the Third Schedule] [ Substituted by G.S.R. 86(E), dated 10.2.1987.][of the Act] [ Inserted by G.S.R. 449(E), dated 13.4.1988.] and if the lease permits the working of more than one mineral in the same area [the State Government shall not charge separate dead rent in respect of each mineral] [ Substituted by G.S.R. 703, dated 30.3.1968.]:Provided that the lessee shall be liable to pay the dead rent or royalty in respect of each mineral whichever be higher in amount but not both;(d)the lessee shall also pay for the surface area used by him for the purpose of mining operations, surface rent and water rate at such rate, not exceeding the land revenue, water and cesses assessable on the land, as may be specified by the State Government in the lease;[* * *] [ Clause (e) omitted by G.S.R. 724(E), dated 27.9.1994.](f)[* * *] [ Certain words omitted by G.S.R. 449(E), dated 13.4.1988.] The lessee shall commence mining operations within one year from the date of execution of the lease and shall thereafter conduct such operations in a proper, skillful and workman-like manner.Explanation .-For the purposes of this clause, mining operations shall include the erection of machinery, laying of a tramway or construction of a road in connection with the working of the mine;(g)the lessee shall at his own expenses erect and at all times maintain and keep in good repair boundary marks and pillars necessary to indicate the demarcation shown in the plan annexed to the lease;(h)the lessee shall not carry on, or allow to be carried on, any mining operations at any point within a distance of fifty metres from any railway line, except under and in accordance with the written permission of the railway administration concerned [or under or beneath any ropeway or any ropeway trestle or station, except under and in accordance with the written permission of the authority owning the ropeway] [ Inserted by G.S.R. 791, dated 26.2.1969.] or from any reservoir, canal or other public works, or buildings, except under and in accordance with the previous permission of the State Government;(i)the lessee shall keep [accurate and faithful ] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]accounts showing the quantity and other particulars of all minerals obtained and despatched from the mine, the number and nationality of persons employed therein, and complete plans of the mine, and shall allow any officer authorised by the Central Government or the State Government in this behalf to examine at any time any accounts, plans and records maintained by him and shall furnish the Central or the State Government with such information and returns as it or any officer authorised by it in this behalf may require;(j)the lessee shall keep accurate records of all trenches, pits and drillings made by him in the course of mining operations carried on by him under the lease, and shall allow any officer authorised by the Central or the State Government to inspect the same. Such records shall contain the following particulars, namely:-(a)the sub-soil and strata through which such trenches, pits or drillings pass;(b)any mineral encountered;(c)such other particulars as the Central or the State Government may, from time to time, require;(k)the lessee shall strengthen and support, to the satisfaction of the railway administration concerned or the State Government, as the case may be, any part of the mine which in its opinion requires such strengthening or support for the safety of any railway, reservoir, canal, road or any other public works or buildings;(l)the lessee shall allow any officer authorised by the Central or the State Government to enter upon any building, excavation or land comprised in the lease for the purposes of inspecting the same;(m)the State Government shall at all times have the right of pre-emption of the minerals won from the land in respect of which the lease has been granted:Provided that the fair market price prevailing at the time of pre-emption shall be paid to the lessee for all such minerals;(n)[ the lessee shall store properly the unutilised or non-saleable sub-grade ores or minerals for future beneficiation;] [ Substituted by G.S.R. 129(E), dated 20.2.1991.](o)[ in respect of any mineral which in relation to its use for certain purposes is classified as a major mineral and in relation to its use for other purposes as a minor mineral, the lessee who holds a lease for extraction of such mineral, under these rules whether or not it is specified as a major mineral in the lease deed, shall not use or sell the mineral or deal with it in whatsoever manner or knowingly allow any one to use or sell the mineral or deal with it in whatsoever manner as a minor mineral: [ Added by G.S.R. 842, dated 18.5.1963.]Provided that if on an application made to it in this behalf by the lessee, the State Government is satisfied that having regard to the inferior quality of such mineral, it cannot be used for any of the purposes by reason of which use it can be called a major mineral or that there is no market for such mineral as a major mineral, the State Government may by order permit the lessee to dispose of the mineral in such quantity and in such manner as may be specified therein as a minor mineral;](p)[ the lessee shall, in the matter of employment, give preference to the tribals and to the persons who become displaced because of the taking up of mining operations;] [ Inserted by G.S.R. 888, dated 18.10.1986.](q)[ the lessee shall not pay a wage less than the minimum wage prescribed by the Central or State Government from time to time under the Minimum Wages Act, 1948 (11 of 1948); [Inserted by G.S.R. 86(E), dated 10.2.1987. ](r)the lessee shall observe the provisions of Mines Act, 1952 ][(35 of 1952) and of the Atomic Energy Act, 1962 (33 of 1962), in so far as they relate to atomic minerals included in Part B of the First Schedule to the Act;] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).](s)[ the lessee shall- [ Substituted by G.S.R. 449(E), dated 13.4.1988, for Clause (s). Earlier, it was inserted by G.S.R. 86(E), dated 10.2.1987.](i)take immediate measures for planting in the same area or any other area selected by the Central or State Government not less than twice the number of trees destroyed by reasons of any mining operations;(ii)look after them during the subsistence of the lease after which these trees shall be handed over to the State Forest Department or any other authority nominated by the Central or State Government;(iii)restore, to the extent possible, other flora destroyed by the mining operations;](t)[ the lessee shall pay to the occupier of the surface of the land such compensation as may become payable under these rules; [ Inserted by G.S.R. 86(E), dated 10.2.1987.](u)the lessee shall comply with the Mineral Conservation and Development Rules framed under section 18.]28. [ Lapsing of leases [Substituted by G.S.R. 86(E), dated 10.2.1987. ]
.-(1) Subject to the other conditions of this rule where mining operations are not commenced within a period of one year from the date of execution of the lease, or is discontinued for a continuous period of one year after commencement of such operations, the State Government shall, by an order, declare the mining lease as lapsed and communicate the declaration to the lessee.29. Restrictions on determination of lease
.- [(1)] [ Rule 29 renumbered as sub-Rule (1) thereof by G.S.R. 1332, dated 28.11.1974.] The lessee shall not determine the lease except after notice in writing of not less than twelve calendar months to the State Government or to such officer, or authority as the State Government may specify in this behalf:[Provided that where a lessee holding a mining lease for a group of minerals applies for the surrender of any mineral from the lease on the ground that deposits of that mineral have since exhausted or depleted to such an extent that it is no longer economical to work the mineral, the State Government may permit the lessee to surrender that mineral, subject to the following conditions, namely:-(a)the lessee applies for such surrender of mineral at least six months before the intended date of surrender; and(b)the lessee gives an undertaking that he will not cause any hindrance in the working of the mineral so surrendered by an other person who is subsequently granted a mining lease in respect of that mineral:][Provided further that where a lessee applies for the surrender of the whole or a part of leasehold area on the ground that such area is barren or the deposits of minerals have since exhausted or depleted to such an extent that it is no longer economical to work in such area, the State Government shall permit the lessee, from the date of receipt of the application, to surrender that area if the following conditions are satisfied, namely:-(a)the leasehold area to be surrendered has been properly surveyed and is contiguous,(b)the lessee has paid all the dues payable to the Government under the lease up to the date of application, and](c)[ the lessee has obtained a certificate under rule 29-A:] [ Inserted by G.S.R. 329(E), dated 10.4.2003 (w.e.f. 10.4.2003). Earlier, it was omitted by G.S.R. 129(E), dated 20.2.1991.][Provided also that surrender of the lease area by the lessee shall be permitted only thrice during the period of the lease on fulfilling the conditions-(i)that at least a period of five years has elapsed since the last surrender; and(ii)that the provisions of the mining plan including the environment management plan thereof have been complied with.]30. Rights of lessee
.-Subject to the conditions mentioned in rule 27, the lessee with respect to the land leased to him shall have the right for the purpose of mining operations on that land-31. Lease to be executed within six months
.-(1) Where, on an application for the grant of a mining lease, an order has been made for the grant of such lease, a lease deed in Form K or in a form as near thereto as circumstances of each case may require, shall be executed within six months of the order or within such further period as the State Government may allow in this behalf, and if no such lease deed is executed within the said period due to any default on the part of the applicant, the State Government may revoke the order granting the lease and in that event the application fee shall be forfeited to the State Government.32. Security deposit
.-An applicant for a mining lease, shall, before the deed referred to in rule 31 is executed, deposit as security for the due observance of the terms and conditions of the lease [ten thousand rupees] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).].[33. Survey of the area leased - When a mining lease is granted by the State Government, arrangements shall be made by the State Government at the expense of the lessee for the survey and demarcation of the area granted under the lease and the survey of the area leased is to be conducted by the Total Station and Differential Global Positioning System.] [ Inserted by G.S.R. 634, dated 30.3.1963.]34. Manner of exercise of preferential rights for mining lease
.-A mining lease to any person who has a preferential right thereto under sub-section (1) of section 11, may, at his option, be granted to him either for the whole of the area for which he holds the prospecting license or such part or parts thereof as he may select but the State Government may, for any special reasons to be recorded in writing, reduce the area or exclude a portion therefrom.35. [ Preferential rights of certain persons [Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000). Earlier, it was omitted by G.S.R. 724(E), dated 27.9.1994. ]
.-Where two or more persons have applied for a reconnaissance permit or a prospecting license or a mining lease in respect of the same land, the State Government shall, for the purpose of sub-section (2) of section 11, consider besides the matters mentioned in clauses (a) to (d) of sub-section (3) of section 11, the end use of the mineral by the applicant.] [Inserted by G.S.R. 1707, dated 4.12.1962. ]36. Boundaries below the surface
.-The boundaries of the area covered by a mining lease shall run vertically downwards below the surface towards the centre of the earth.37. Transfer of lease
.-(1) The lessee shall not, without the previous consent in writing of the State Government [and in the case of mining lease in respect of any mineral specified in ] [ Inserted by G.S.R. 129(E), dated 20.2.1991.][Part A and Part B of] [ Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).][the First Schedule to the Act, without the previous approval of the Central Government,-] [ Inserted by G.S.R. 129(E), dated 20.2.1991.](a)assign, sublet, mortgage, or in any other manner, transfer the mining lease, or any right, title or interest therein, or(b)enter into or make any [bona fide] [ Inserted by G.S.R. 56(E), dated 17.1.2000.] arrangement, contract or understanding whereby the lessee will or may be directly or indirectly financed to a substantial extent by, or under which the lessee's operations or undertakings will or may be substantially controlled by, any person or body of persons other than the lessee:[* * *] [ First proviso omitted by G.S.R. 724(E), dated 27.9.1994.][Provided further that where the mortgagee is an Institution or a Bank or a corporation specified in Schedule V, it shall not be necessary for the lessee to obtain any such consent of the State Government.] [ Inserted by G.S.R. 345, dated 13.3.1973.][(1-A) The State Government shall not give its consent to transfer of mining lease unless the transferee has accepted all the conditions and liabilities which the transferor was having in respect of such mining lease.] [ Substituted by G.S.R. 724(E), dated 27.9.1994.]38. [ Amalgamation of leases [Inserted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000). Earlier, it was omitted by G.S.R. 724(E), dated 27.9.1994. ]
.-The State Government may, in the interest of mineral development and with reasons to be recorded in writing, permit amalgamation of two or more adjoining leases held by a lessee:Provided that the period of amalgamated leases shall be co-terminus with the lease whose period will expire first:Provided further that prior approval of the Central Government shall be required for such amalgamation in respect of leases for minerals specified in Part A and Part B of the First Schedule to the Act.]39. [ Pending applications for transfer and amalgamation [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).]
.-An application for the transfer of a mining lease or the amalgamation of mining leases pending at the commencement of these rules shall be disposed of in accordance with these rules.]40. Registers
.-(1) A register of applications for mining leases shall be maintained by the State Government in Form L.Chapter V
Procedure For Obtaining A Prospecting License Or Mining Lease In Respect Of Land In Which The Minerals Vest In A Person Other Than The Government
41. Applicability of this Chapter
.-The provisions of this Chapter shall apply only to the grant of prospecting licenses and mining leases in respect of land in which the minerals vest exclusively in a person other than the Government.42. Restrictions on the grant of prospecting license and mining lease
.- [(1) No prospecting license or mining lease shall be granted to any person unless he has filed an affidavit stating that he has-(i)filed up-to-date income-tax returns;(ii)paid the income-tax assessed on him; and(iii)paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961 (43 of 1961).]43.
[* * *] [ Rule 43 omitted by G.S.R. 449(E), dated 13.4.1988.]44. Conditions of prospecting license
.-Every prospecting license shall be subject to the following conditions:-45. Conditions of mining lease
.-Every mining lease shall be subject to the following conditions:-46. Transfer or assignment
.-(1) No prospecting license or mining lease or any right, title or interest in such license or lease shall be transferred to a person unless he has filed an affidavit stating that he [has filed an up-to-date income-tax return, paid in income-tax assessed on him and paid the income-tax on the basis of self-assessment as provided in the Income-tax Act, 1961 (43 of 1961)] [ Substituted by G.S.R. 449(E), dated 13.4.1988.].47. Submission of copy of license or lease
.-Every person obtaining a prospecting license or a mining lease shall, within three months of the grant of such license or lease, submit to the State Government concerned a certified copy of the license or lease in duplicate.48. Communication of transfer or assignment
.-Every transferee or assignee of a prospecting license or a mining lease or of any right, title or interest therein, shall, within one month of such transfer or assignment, inform the State Government of the transfer or assignment and of the terms and conditions of such transfer or assignment.49. Prohibition of premium
.-No person granting or transferring a prospecting license or any right, title or interest in any such license or lease shall charge or pay any premium in addition to, or in lieu of the prospecting fee, surface rent, dead rent or royalty payable, under the Act or such proportionate part of such fee, rent or royalty as is payable in respect of such right, title, or interest.50. Prohibition of working of mines
.-If the State Government has reason to believe that the grant or transfer of a prospecting license or a mining lease or of any right, title or interest in such license or lease is in contravention of any of the provisions of this Chapter, the State Government may, after giving the parties an opportunity to represent their views and with the approval of the Central Government, direct the parties concerned not to undertake any prospecting or mining operations in the area to which the license or lease relates.51. Returns and statements
.-The holder of a prospecting license or a mining lease shall furnish to the State Government such returns and statements and within such period as may be specified by it.52. Penalty
.- [[(1) If the holder of a prospecting license or a mining lease or his transferee or assignee fails, without sufficient cause, to furnish the documents or information, or returns referred to in rule 46, rule 47, rule 48, or rule 51, or acts in any manner in contravention of rule 49 or rule 50, he shall be punishable with imprisonment for a term which may extend to ] [Substituted by G.S.R. 805, dated 30.4.1963. ][one year or fine which may extend to five thousand rupees or with both] [Substituted by G.S.R. 449(E), dated 13.4.1988. ].Chapter VI
Grant Of Prospecting Licenses And Mining Leases In Respect Of Land In Which The Minerals Vest Partly In The Government And Partly In Private Persons
53. Chapters III and IV to apply to prospecting licenses and mining leases in respect of minerals which vest partly in Government and partly in private persons
.-The provisions of Chapters III and IV shall apply in relation to the grant of prospecting licenses and mining leases in respect of minerals which vest partly in the Government and partly in a private person as they apply in relation to the grant of prospecting licenses and mining leases in respect of minerals which vest exclusively in the Government:Provided that the dead rent and royalty payable in respect of minerals which partly vest in the Government and partly in a private person shall be shared by the Government and by that person in proportion to the shares they have in the minerals.Chapter VII
Revision
54. Application for revision
.-(1) Any person aggrieved by any order made by the State Government or other authority in exercise of the powers conferred on it by the Act or these rules may, within [three months] [ Substituted by G.S.R. 939, dated 12.4.1969.] of the date of communication of the order to him, apply to the Central Government in triplicate in Form N, for revision of the order. The application should be accompanied by [a Bank Draft for ] [Inserted by G.S.R. 449(E), dated 13.4.1988. ][five thousand rupees] [ Substituted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).][on a nationalised bank in the name of "Pay and Accounts Officer, Department of Mines" payable at New Delhi or through a treasury challan for ] [Inserted by G.S.R. 449(E), dated 13.4.1988. ] [five thousand rupees] [ Substituted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).][under the Head of Account-0853-Non-ferrous Mining and Metallurgical Industries-102 Mineral Concession Fees, Rents and Royalties:] [Inserted by G.S.R. 449(E), dated 13.4.1988. ]Provided that any such application may be entertained after the said period of [three months] [ Substituted by G.S.R. 939, dated 12.4.1969.] if the applicant satisfies the Central Government that he had sufficient cause for not making the application within time.[* * *] [ Sub-Rule (1-A) omitted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000). Earlier, it was inserted by G.S.R. 1195, dated 17.10.1973.]55. Orders on revision application
.- [(1) On receipt of an application for revision under rule 54, copies thereof shall be sent to the State Government or other authority and to all the impleaded parties calling upon them to make such comments as they may like to make within three months from the date of issue of the communication, and the State Government or other authority and the impleaded parties, while furnishing comments to the Central Government shall simultaneously endorse a copy of the comments to the other parties.] [Substituted by G.S.R. 129(E), dated 20.2.1991. ][* * *] [ Explanation omitted by G.S.R. 6(E), dated 7.1.1993.]Chapter VIII
Miscellaneous
56. Power to rectify apparent mistakes
.-Any clerical or arithmetical mistake in any order passed by the Government or any other authority or officer under these rules and any error arising therein from accidental slip or omission, may, within two years from the date of the order, be corrected by the Government, authority or officer, as the case may be:Provided that no order prejudicial to any person shall be passed unless he has been given a reasonable opportunity for stating his case.57. Copies of licenses and leases and annual returns to be supplied to Government
.-(1) A copy of every [reconnaissance permit, prospecting license and mining lease] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).] granted or renewed under these rules shall be supplied by each State Government within two months of such grant or renewal to [the Controller General, Indian Bureau of Mines] [ Substituted by G.S.R. 298, dated 28.2.1984.] and the [Director-General, Mines Safety] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).].58.
[* * *] [ Rule 58 omitted by G.S.R. 449(E), dated 13.4.1988. Earlier, it was substituted by G.S.R. 146, dated 16.1.1980.]59. [ Availability of area for regrant to be notified [Substituted by G.S.R. 146, dated 16.1.1980. ]
.- ] [ Substituted by G.S.R. 449(E), dated 13.4.1988.][(1) No area-(a)which was previously held or which is being held under a reconnaissance permit or a prospecting license or a mining lease; or(b)which has been reserved by the Government or any local authority for any purpose other than mining; or(c)in respect of which the order granting a permit or license or lease has been revoked under sub-rule (1) of rule 7-A or sub-rule (1) of rule 15 or sub-rule (1) of rule 31, as the case may be; or(d)in respect of which a notification has been issued under sub-section (2) or sub-section (4) of section 17; or(e)which has been reserved by the State Government or under section 17-A of the Act, shall be available for grant unless-(i)an entry to the effect that the area is available for grant is made in the register referred to in sub-rule (2) of rule 7-D or sub-rule (2) of rule 21 or sub-rule (2) of rule 40, as the case may be; and(ii)the availability of the area for grant is notified in the Official Gazette and specifying a date (being a date not earlier than thirty days from the date of the publication of such notification in the Official Gazette) from which such area shall be available for grant:Provided that nothing in this rule shall apply to the renewal of a lease in favour of the original lessee or his legal heirs notwithstanding the fact that the lease has already expired:Provided further that where an area reserved under rule 58 or under section 17-A of the Act is proposed to be granted to a Government company, no notification under clause (ii) shall be required to be issued:Provided also that where an area held under a reconnaissance permit or a prospecting license, as the case may be, is granted in terms of sub-section (1) of section 11, no notification under clause (ii) shall be required to be issued.] [Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000). ]60. [ Premature applications [Substituted by G.S.R. 146, dated 16.1.1980. ]
.-Applications for the grant of a ][reconnaissance permit, prospecting license or mining lease] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).][in respect of areas whose availability for grant is required to be notified under rule 59 shall, if-61. [ Lessor to supply certain information to the lessee [Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000). ]
.-Where any area has previously been held under a reconnaissance permit or prospecting license or mining lease, the person who was granted such permit or license or lease shall make available to the new permit holder or licensee or lessee the original or certified copies of all plans of abandoned workings in that area and in a belt preferably 60 metres surrounding it.] [Substituted by G.S.R. 146, dated 16.1.1980. ]62. Change of name, nationality, etc., to be intimated
.- [(1)] [ Rule 62 renumbered as sub-Rule (1) thereof by G.S.R. 805, dated 30.4.1963.][* * *] [ Omitted by G.S.R. 449(E), dated 13.4.1988.] An applicant for, or the holder of, a [reconnaissance permit, a prospecting license or a mining lease] [ Substituted by G.S.R. 56(E), dated 17.1.2000 (w.e.f. 18.1.2000).] shall intimate to the State Government within sixty days any change that may take place in his name, nationality or other particulars mentioned in the relevant Forms.63. Previous approval of the Central Government to be obtained through State Government
.-Where in any case previous approval of the Central Government is required under the Act or these rules, the application for such approval shall be made to the Central Government through the State Government.[63-A. [ Inserted by G.S.R. 21(E), dated 11.1.2002 (w.e.f. 11.1.2002).]The State Government shall dispose of the application for grant of reconnaissance permit, prospecting license or mining lease in the following period:-64. How the fees and deposit to be made
.-Any amount payable under the Act or these rules except that payable in respect of revision petition under sub-rule (1) of rule 54, shall be paid in such manner as the State Government may specify in this behalf.[64-A. [Inserted by G.S.R. 1164, dated 22.7.1976. ]The State Government may, without prejudice to the provisions contained in the Act or may other rule in these rules, charge simple interest at the rate of ][twenty-four per cent] [ Substituted by G.S.R. 129(E), dated 20.2.1991.][per annum on any rent, royalty or fee (other than the fee payable under sub-rule (1) of rule 54) or other sum due to that Government under the Act or these rules or under the terms and conditions of any prospecting license or mining lease from the sixtieth day of the expiry of the date fixed by that Government for payment of such royalty, rent, fee or other sum and until payment of such royalty, rent, fee or other sum is made.] [Inserted by G.S.R. 1164, dated 22.7.1976. ][64-B. Charging of royalty in case of minerals subjected to processing [Inserted by G.S.R. 743(E), dated 25.9.2000 (w.e.f. 25.9.2000). ].-(1) In case processing of run-of-mine is carried out within the leased area, then, royalty shall be chargeable on the processed mineral removed from the leased area.64.
-C. Royalty on tailings or rejects.-On removal of tailings or rejects from the leased area for dumping and not for sale or consumption, outside leased area such tailings or rejects shall not be liable for payment of royalty:Provided that in case so dumped tailings or rejects are used for sale or consumption on any later date after the date of such dumping, then, such tailings or rejects shall be liable for payment of royalty.[64-D. Manner of payment of royalty on minerals on ad valorem basis -| Royalty = | {| |
| 52.9100 |
| 64-D. Guidelines for computing royalty on minerals onad valorembasis.-Every mine owner, his agent, manager, employee, contractor or sub-lessee shall follow the following guidelines for computation of the amount or royalty on minerals where the royalty is charged onad valorembasis, namely:-GuidelinesThe guidelines for calculation of royalty in typical cases are as follows, namely:-[Case 1: All non-atomic and non-fuel minerals and minerals other than aluminium ] [Substituted by G.S.R. 329(E), dated 10.4.2003 (w.e.f. 10.4.2003). ][(bauxite and laterite despatched for use in alumina and aluminium metal extraction)] [ Inserted by G.S.R. 153(E), dated 4.3.2005 (w.e.f. 4.3.2005).][, primary gold, silver, copper, lead, zinc, nickel and tin- [Substituted by G.S.R. 329(E), dated 10.4.2003 (w.e.f. 10.4.2003). ]The Indian Bureau of Mines publishes "Monthly Statistics of Mineral Production" which contains Statewise total value of each mineral produced during a month in a State. The Statewise average value for different individual minerals as published by Indian Bureau of Mines in the "Monthly Statistics of Mineral Production" shall be the benchmark for computation of royalty by the concerned State Government in respect of any mineral produced any time during a month in any mine in that State. For the purpose of computation of royalty the State Government shall add twenty per cent. to this benchmark value. This value shall be reckoned to be the sale price for the purpose of computation of royalty. Also the value of the minerals published in the latest published issue of the "Monthly Statistics of Mineral Production" will be deemed to be applicable for the mineral mined in the previous month, irrespective of when the royalty actually accrues. If for a particular mineral, the information for a State is not published in a particular issue, the last information available for that mineral in the State in a previous issue shall be referred, failing which the latest published information for the mineral for all-India shall be referred.Case 2: For atomic minerals, prescribed under Atomic Energy Act, 1962 (33 of 1962)-The minerals under this category include ilmenite, leucoxene, rutile and zircon obtained mainly from the beach sand deposits in the coastal States. The basis of collection of royalty shall be the actual mineral content in the beach sand mined.(a) In case of sale in the domestic market, the per tonne sale price of the separated mineral actually realized, less the cost of transportation from the lease boundary to point of sale as shown by the mine owners in their sale vouchers or bills or invoices shall be considered for computingad valoremroyalty. To avoid payment of taxes on royalty the mine owners in their own interest record the price and royalty separately in the sale vouchers or bills or invoices instead of indicating a composite price inclusive of royalty. In case the price, royalty and transportation cost are not shown separately it shall be assumed that the price indicated in the sale vouchers or bills or invoices is exclusive of royalty and transportation cost, and royalty shall be charged accordingly.(b) In case of direct export be mine owners the sale value for the purpose of royalty shall ordinarily be the free on board (FOB) price realized less transportation charges from the lease boundary to the port, loading and unloading charges at the port, port charges (including sampling and analysis and demurrage charges, if any), insurance charges, royalty, taxes and interest charges on loan for export. However, in case of cost insurance and freight (CIF) sales, sea freight insurance and cost of unloading at the destination port shall also be deducted form such price. For such purposes the mine owner may prepare invoices or bills indicating the free on board price or cost insurance freight price as the case may be and each of the other charges separately.Explanation.-For the purposes of calculation of royalty in case of minerals produced in captive mines (other than aluminium ][(bauxite and laterite despatched for use in alumina and aluminium metal extraction)] [Substituted by G.S.R. 329(E), dated 10.4.2003 (w.e.f. 10.4.2003). ][, copper, lead, zinc, tin, nickel, gold and silver) and those not actually sold, case 1 and case 2 shall be applicable.] [Substituted by G.S.R. 329(E), dated 10.4.2003 (w.e.f. 10.4.2003). ]Case 3: For aluminium[(bauxite and laterite despatched for use in alumina and aluminium metal extraction)] [ Inserted by G.S.R. 153(E), dated 4.3.2005 (w.e.f. 4.3.2005).], primary gold, silver, copper, lead, zinc, nickel and tin-The total contained metal in the ore produced during the period for which the royalty is computed and reported in the statutory returns under Mineral Conservation and Development Rules, 1988 or recorded in the books of the mine owners shall be considered for the purposes of computing the royalty in the first place and then the royalty shall be computed as the percentage of the average metal price in the London Metal Exchange (hereinafter referred to as the LME) for copper, lead, zinc, nickel, silver and tin and London Bullion Market Association price (commonly known as London price) for gold during the period of computation of royalty. The foreign exchange rate for conversion of rupees shall be the selling rate on the last date of the period of computation as published in newspaper, namely, the Economic Times. For the LME prices as well as for London price of the commodity, either of the following three sources shall be referred to, namely:-{| |
| (i)Non-ferrous Report: Minerals and Metals Review,28/30, Anantwadi, P.O. Box 2749,Mumbai-400 002 |
| (ii)Metal Bulletin,16, Lower Marsh,London, SE-17 RJ |
| (iii)World Metal Statistics; (Monthly or Quarterly Summary),By World Bureau of Metal Statistics,27-A, High Street, Ware, Herts SG 12 9BA, United Kingdom. |