Published on 18 Feb 2025
The National Mineral Policy (NMP) 2019 is a strategic initiative aimed at fostering sustainable and efficient development of the mineral sector in India.
Objectives of the National Mineral Policy, 2019
Sustainable Mining: Prioritize environmentally friendly practices to minimize ecological impact.
Example: Implementation of the 'Swacchata Hi Seva' campaign for waste management and ecosystem preservation in mining areas.
Resource Efficiency: Optimize mineral use through technologies like zero-waste mining and beneficiation.
Example: Adoption of advanced mineral processing techniques to extract maximum value from low-grade ores.
Investment Attraction: Create a favorable environment for domestic and foreign investment in the mining sector.
Example: Streamlining the mining approval process through the Mines and Minerals (Development and Regulation) Amendment Act, 2021.
Employment Generation: Develop the mining workforce through skill development and training programs.
Example: Collaboration between the mining industry and Skill India Mission for workforce development.
Technological Advancement: Encourage adoption of modern technologies for efficient and sustainable mining operations.
Example: Use of remote sensing and GIS for resource mapping and exploration.
Regulatory Improvement: Enhance transparency, accountability, and ease of doing business in the mining sector.
Impact of the Policy
Positive Impacts
Increased Investment: Policy reforms such as the auctioning of mineral blocks and relaxed FDI norms have attracted significant investments from companies like Vedanta, JSW Steel, and Adani Group.
Enhanced Technology Adoption: The emphasis on technology upgradation has led to the adoption of advanced mining equipment and techniques, improving efficiency and safety.
Example: Coal India has invested in longwall mining technology to enhance productivity.
Sustainable Mining Practices: The policy's focus on environmental protection has encouraged mining companies to adopt sustainable practices, such as mine closure plans and water management initiatives.
Example: NMDC has undertaken afforestation and soil conservation measures in its mining areas.
Job Creation: The growth of the mining sector has led to direct and indirect employment opportunities, particularly in mineral-rich states like Odisha, Jharkhand, and Chhattisgarh.
Negative Impacts
Land Acquisition Challenges: Expansion of mining activities often leads to conflicts with local communities over land acquisition and displacement.
Example: The Posco India’s project in Odisha faced significant opposition due to land acquisition issues.
Environmental Concerns: Despite efforts towards sustainable mining, there are concerns about the impact of mining on biodiversity, water resources, and air quality.
Example: Coal mining in Jharkhand has led to deforestation and water pollution.
Infrastructure Bottlenecks: The rapid expansion of the mining sector has put pressure on existing infrastructure, leading to transportation bottlenecks and increased logistics costs.
Price Fluctuations: The global commodity market is volatile, impacting the profitability of mining operations and creating uncertainties for investors.
Way Forward
Strengthen Regulatory Framework: Enhance transparency, accountability, and ease of doing business in the mining sector through clear and consistent regulations.
Promote Sustainable Mining: Emphasize environmental protection, social responsibility, and resource efficiency in mining operations.
Foster Technology Adoption: Encourage investment in research and development to improve mining technologies and reduce environmental impact.
Diversify Mineral Basket: Explore and develop new mineral resources to reduce dependency on traditional minerals.
Geography
NATIONAL MINERAL POLICY 2019
Objectives of the National Mineral Policy 2019
Impact of the NATIONAL mineral Policy
General Studies Paper 1
Resources Distribution
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