Investment Opportunities

To enable mining companies to reconnoitre large areas in a short span of time using modern techniques of satellite imagery, aerial photographs, aeromagnetic and regional geochemical surveys, an RL will be granted over an area of 100 to 10,000 sq. km. in respect of a mineral or group of minerals. Unless stipulated otherwise, the licence will be non-exclusive for a period of 12 months and will not be renewable. However, the licensee will have the right to an exploration licence over 10% of the area held under an RL provided the criteria for the grant for such a licence and other requirements of the law are met. The Licensing Authority will take a decision the application for an RL within 120 days from the date of filing of complete application.

The application fee for an RL will be Rs. 15,000. The licensee will be obliged to carry out an approved work programme and comply with other conditions of the RL.

An Exploration licence will be granted over an area not exceeding 1,000 sq. km. for a period not exceeding three years where the applicant meets the specified criteria. The application must provide adequate information about the applicant, description and a sketch map of the area, work programme and expenditure to be undertaken and technical and financial resources available to the applicant.

Application fee for EL will be Rs. 25,000 and fee for each renewal will be Rs. 50,000. In addition, rent of the land over which the licence is granted will have to be paid. The rent will increase progressively each year.

On completion of full feasibility study, if the holder of an El can demonstrate the deposit, though potentially viable, can not be commercially developed, due to depressed metal/mineral prices utilizing proven technology or with financing on commercial terms which are reflective of current market conditions for other mining projects., he may, within 180 days before the expiry of the EL, apply for a Mineral Deposit Retention Licence. The application must be accompanied with full justification and data and the prescribed fee. The applicant for an MDRL will have to demonstrate the exploration operation had progressed as far as practicable and that the applicant is able and willing to comply with the conditions of the MDRL and has complied with the terms and conditions of the EL.

The application fee for an MDRL or its renewal will be Rs. 100,000 each and the licensee shall, in respect of the MDRL area, pay in advance, for each year, the rent applicable for the responding period of the EL.

The holder of an EL or an MDRL may apply for a mining lease for over an area subject to a maximum of 250 Sq. Km. within his EL or MDRL in respect of the mineral/minerals discovered. The application shall be accompanied by detailed information including technical and financial resources available for development of the mine, work programme for development and operation of the mine, production schedule, financing plan, environmental protection plans, proposals for procurement and use of local goods and services, training of nationals and the prescribed application fee. The application will be considered, in accordance with specified criteria, within 120 days after receipt of application or receipt of any additional information requested. The licence will remain valid while the application is under consideration.
The application fee for an ML or its renewal will be Rs. 100,000 each and the land rent will be Rs. 3,000 per sq. kilometre/year to be paid in advance each year.