Government of India Ministry of Mines

REPORT OF THE WORKING GROUP ON

MINERAL EXPLORATION & DEVELOPMENT (OTHER THAN COAL & LIGNITE)

FOR THE TWELFTH FIVE YEAR PLAN

SUB GROUP – I ON

SURVEY AND MINERAL EXPLORATION

October, 2011

REPORT OF THE WORKING GROUP ON MINERAL EXPLORATION & DEVELOPMENT (OTHER THAN COAL & LIGNITE)

FOR THE TWELFTH FIVE YEAR PLAN

(SUB GROUP – I ON SURVEY AND MINERAL EXPLORATION)

CONTENTS

Chapter Title Page Nos. Foreword i – iv Executive Summary v – xi Chapter – I Introduction 1 – 18

1.1.0 Preamble 1 – 3 1.2.0 Geoscientific database for mineral prognostication in India 3 – 5 1.3.0 Exploration and Regulatory Agencies 6 – 9 1.4.0 Thrust of Exploration and priorities accorded in plan periods

(1947-2005) till the Xth Plan 9 – 14

1.5.0 Present Status 14 – 16 1.6.0 Thrust Areas 16 – 18

Chapter – II

Review of performance during Eleventh Plan

19 – 45

2.1.0 Preamble 19 – 23 2.2.0 Thrust Areas during XI Five Year Plan 23 – 25 2.3.0 Mission-I Baseline Geoscience data generation target and

achievement of GSI 25 – 28

2.4.0 Mission-II - Mineral Resources Assessment 28 – 33 2.5.0 Regional Mineral Survey Prognostication by central 7 State

Agencies other than GSI 33 – 37

2.6.0 Research and Development 37 – 38 2.7.0 Technology Infusion 38 – 40 2.8.0 Training of Human Resources 40 – 41 2.9.0 Status of Initiatives introduced during XI Plan period 42 – 43 2.10.0 2.11.0

Dissemination of Survey and Exploration Data Conclusion

44 – 45 45

Chapter – III

Review of National Mineral Inventory (Item No. 1&2 of Term of Reference)

46 – 67

3.1.0 Preamble 46 3.2.0 Historical Background of Mineral Inventory 46 – 48 3.3.0 Classification and Categorization of Reserves/Resources 48 – 49 3.4.0 End-use grade classification of the Mineral Resources 49 – 50 3.5.0 Present status of the Mineral Inventory (NMI) 50 3.6.0 Quality data dissemination 51 3.7.0 Availability of Mineral Resources in India and comparison

with World Resources 51 – 52

3.8.0 Balance life of Mineral Inventory 52 3.9.0 Identification of the gap areas 52 – 54 3.10.0 Future Development and Conservation

54 – 67

c

Chapter – IV Assessment and Strategy for Speedy Exploitation of the Proven and Viable Mineral Deposits [ToR – (iii)

68 – 92

4.1.0 Preamble 68 – 69 4.2.0 Assessment of Resources and Reserves of Mineral

Commodities 70

4.3.0 Strategy for speedy exploration of the proven deposits 70 – 74 4.4.0

4.5.0

Measures suggested minimizing ecological degradation and maintaining environment conservation due to excessive Mining Activities Recommendations and Suggested Road Map

74 – 75 76 – 92

Chapter – V Thrust Areas and Exploration Strategy in XIIth Five Year Plan 2012-2017 [TOR-(iv) & TOR-(vii)]

93 – 166

5.1.0 Preamble 93 – 94 5.2.0 Technological inadequacy: The Gaps 94 – 96 5.3.0 Repercussions of Technology Inadequacy 96 – 97 5.4.0 Technology Infusion 97 – 102 5.5.0 Strategy for Regional and detailed Exploration 102 – 106 5.6.0

5.7.0 5.8.0

5.9.0

5.10.0

5.11.0

5.12.0

National Centers for Excellence on Research and Development – Pertaining to Mineral Exploration and sustainable development Priorities for Regional Exploration Mission-II: A Mineral Resource Assessment Identification of National Mineral Priorities Strategy of Mineral Exploration by GSI – Mineral Commodity-wise Assessment of National Mineral Demand/Supply Scenario with Emphasis on Strategic Minerals Promotional Role of Central and State Govt. Agencies and Opportunity Potential of GSI Summary Recommendation for Mineral Exploration

106 – 107 107 – 121 121 – 131 132 – 135 135 – 139 140 – 158 158 – 166

Chapter – VI The Role of State Institution in view of the National Mineral Policy – 2008 [TOR – (vi)]

167 – 181

6.1.0 Preamble 167 6.2.0 Geological Survey of India (GSI) 168-169 6.3.0 Indian Bureau of Mines (IBM) 169-171 6.4.0 Mineral Exploration Corporation Limited (MECL) 171-172 6.5.0 State Directorates of Geology & Mining 172 6.6.0 Capacity Development of State DGMs 172-173 6.7.0 Other Govt. Agencies/PSUs involved in Mineral Exploration 174 6.8.0 Assessment of powers, roles, jurisdictions and limitations

including overlapping of powers 174-175

6.9.0 Recommendation and Suggested changes required in the functioning of the institutions in view of the NMP – 2008

175-181

Chapter – VII Exploration Activities by Private Sector – Prospects and Constraints [TOR – (v)]

182-192

7.1.0 Preamble 182-183 7.2.0 Status and review of the private investment made and

mineral exploration carried by Private Sector 183-185

7.3.0 Constraints in attracting Private Investment in Exploration 185-186 7.4.0 Status and Review of access to geological and exploration

data 186-188

d

7.5.0 Review of issues related to Mining Tenement Registry 188-189 7.6.0 Strategies for facilitating private sector in mineral

exploration 189-191

7.7.0 Recommendations 192 Chapter –VIII Geoscientific studies in offshore areas [TOR – (viii)]

193-228

8.1.0 Preamble 193-196 8.2.0 Offshore geoscientific studies by Geological Survey of India

(GSI) 196-202

8.3.0

8.5.0

Identifying the existing gap areas in geoscientific studies and promising mineral rich zones Major Recommendations

202 – 226 226 – 227

Chapter – IX Investment Required for Mineral Exploration [TOR –(ix)] 228 – 246 9.1.0 Preamble 228 9.2.0 World scenario in mineral exploration spending 228-230 9.3.0 Indian scenario in exploration spending 230-232 9.4.0 Scale of private investment expected during XIIth plan 232-235 9.5.0

9.6.0

Financial out lays (agency-wise projection of promotional funding) for the XIIth plan period Geological Survey of India

235 235-237

9.7.0 9.8.0 9.9.0 9.10.0

Indian Bureau of Mines Mineral Exploration Corporation Limited State Government and others Overall Expenditure for Mineral Exploration

237 237-238 238-240 240-246

Chapter – X

Conclusions and Recommendations

247- 279

10.1 Preamble 247-248 10.2 Review of Achievements 248 10.3 Recommendations 248-259 10.4 Implementation Agenda and Impact Feasibility Analysis 259-279

ANNEXURES

280-304

Annexure – I Order on setting up of Working Group on Mineral Exploration and Development [other than Coal and Lignite] for Twelfth Five Year Plan [2012-17]

281-287

Annexure-II Order on Setting up of Sub Group I on on Mineral Exploration and Development [other than Coal and Lignite] for Twelfth Five Year Plan [2012-17]

288-290

Annexure-III Meeting Notice of 1st meeting of Sub Group I 291-292 Annexure-IV Minutes of the 1st meeting of Sub Group I held on 11th April

2011 293-301

Annexure-V Letter forwarding approved minutes of 1st meeting of Sub-Group I

302

Annexure-VI Meeting notice of 3rd meeting of Sub Group I 303-304

F O R E W O R D

The Planning Commission, Govt. of India constituted a Working Group on Mineral Exploration and Development (other than Coal & Lignite) in the context of formulation of the Twelfth Five Year Plan (2012-2017), under the chairmanship of Secretary, Ministry of Mines, Government of India vide their O.M. No. I&M-3(24)/2010 dated 23rd February, 2011. The Working Group was divided into four separate Sub-Groups and each of the sub-groups has to function in the ambit of the Terms of Reference as given in Annexure – I.

2. Sub-Group-I was constituted vide order No. 10(59)/2010/M 5 dated 30.03.2011 with the Additional Secretary, Ministry of Mines as the Chairman and the Director(Technical), Ministry of Mines as the Member-Secretary. The composition of the Sub-Group-I is given at Annexure-II. The Terms of Reference (ToRs) of Sub-Group-I are basically concerned with issues related to enhancement of mineral exploration activities, both onshore and offshore, in the country.

3. Despite India’s significant geological potential for mineral deposits, investments in exploration have been inadequate and the country does not rank very high in terms of its mineral resource base amongst similarly geologically endowed nations. Mineral exploration activities therefore need to be stepped up and investment inflows for exploration have to be facilitated. These involve diverse issues of baseline data generation, data dissemination, technology infusion for exploring concealed deposits, strategies for attracting private investments and offshore geoscientific studies. Adequately addressing these issues require consultation and collaboration for framing short term and long term plans and also for implementing an effective strategy.

4. Sub-Group-I initiated a wide ranging consultation process involving the key Central Govt. agencies engaged in Mineral exploration, State Governments, Federation of Indian Mineral Industries, Pvt. Sector Companies and other stake holders for identification and elaboration of concrete issues that need to be addressed under the framework of the ToRs of the Sub-Group.

5. The first meeting of Sub-Group-I was held on 11-4-2011 at New Delhi under the Chairmanship of the Additional Secretary, Ministry of Mines wherein it was decided to constitute three Working-Groups(WG), comprising subject experts, within Sub-Group-I to deal with different groups of related issues within the ToRs of Sub-Group-1. The GSI lead Working Group-I headed by the Director General, GSI was to cover ToRs (iii), (iv), (vii) and (ix). The other nominated members of the WG-I were Dr.K.Rajaram, GSI, Shri M.S.Jayaram, GSI, Shri M.Sengupta, IBM, Shri S.K Lagoo, MECL, Shri Subhash Bahadur, FIMI and Representatives from Rajasthan and M.P. Governments. The MECL & IBM lead Working Group-II was assigned the job of dealing with ToRs (i), (ii), (viii) and (ix). The WG-2 headed by Dr.S.K.Haldar, Director (Technical), MECL had Shri V.K.S.Visen, MECL, Shri R.N.Meshram, IBM, Shri M.S.Jayaram, GSI and Dr.Anjani Kumar, MECL as the other nominated member of the WG-II. MoM lead Working-Group-3 was given the responsibility of compiling the reports and to cover ToRs (v) and (vi). Dr.S.K.Wadhawan, Director(Technical), Ministry of Mines headed this WG-III besides being the Member Secretary of the Sub-Group-I. The other nominated members of the WG-III were Shri A.K.Bhandari, C-TEMPO, Shri G.S.Jaggi, OSD (HPC), MoM, Shri S.K.Sharma & Shri Subhash Bahadur, FIMI, Shri Arun Kalra, De Beers India Pvt. Ltd., and Dr. Nik Senapati, Rio Tinto.

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6. To access the mineral exploration related information available with the State Governments, a questionnaire with suitable format was circulated to the mineral rich states for their response and inputs in the Plan formulation. These were followed by letters at Additional Secretary’s level to the Principal Secretary (Mines) of the mineral rich States and personal meetings by GSI and MECL officials with the State Governments.

7. Conveners of the Working Groups were advised to coordinate and convene meetings of the respective working groups and make full utilization of the documents such as National Mineral Policy-2008, HPC Report on GSI restructuring, draft reports on restructuring and repositioning of IBM and MECL, Mineral Year Book, proposed MMDR Act, Report on modernization in GSI, CGPB Meetings recommendations, Detailed Information Dossiers prepared by GSI and Documents / position papers published by C-TEMPO and FIMI, Draft McKinsey Report, and relevant parts of the Report of Chawla Committee on allocation of natural resources. After a lot of deliberations and discussions in the Sub-group meetings the scheme of Chapters were finalized for the Draft document on XIIth Five Year Plan (activities of the Sub-Group are briefly stated in Annexure III to IV). A dedicated e-mail box / address was created for free flow of information and data accessibility amongst the Sub-Group and Working Group members.

8. The targets / achievements of the earlier five year plans in general and the 11th Plan in particular were reviewed and the gap areas were identified for defining the thrust areas in the 12th Plan. While defining the thrust areas, the Sub Group and the working groups discussed in detail the crucial issues of expeditious baseline data generation; technology infusion required for exploring deep seated and concealed deposits; National Mineral Policy Vs. State Mineral Policy; scrapping of the concept of reservations of areas by State Governments; implementation of seamless transition from prospecting to detailed exploration to mining; transparency of concession granting procedures and the concept of an online mining tenement registry.

9. Several meetings of the Working Groups were held to draft sub-reports on allocated Chapters as per the ToRs. Each chapter of the document stresses on specific ToRs wherein the related issues are detailed and elaborated and the recommendations follow as logical corollaries. The document has not only highlighted the recommendations but also indicated actions required to be taken on them, in a time-bound manner and by specified agencies as detailed in implementation agenda and impact-feasibility table at the end of the document.

10. The draft Chapters were circulated to the Sub-Group members for their comments and feedback. A Core Group comprising the Conveners of the three working groups, Shri A. K. Bhandari, C-TEMPO and Shri Subhash Bahadur, FIMI were given the responsibility of finally collating and integrating the draft Chapters.

11. The draft Sub-Group report and recommendations was reviewed in the meetings of all the Sub-Groups held at New Delhi under the Chairmanship of the Secretary, Ministry of Mines on 30th June - 1st July 2011 and on 23rd September 2011. The observations and concrete suggestions made during the deliberations in these meetings have been appropriately incorporated in the relevant Chapters.

12. The Core Group of Sub-Group-I met a number of times and edited the chapters to bring them into a suitable shape for the final report. The Feasibility - Impact analysis and rating, introduced by Planning Commission, was carried out on each recommendation. The details of the required funding along with the

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implementing agency for the recommendations that require Plan Fund have been tabulated in the implementation agenda and impact-feasibility table.

13. The thrust areas in mineral exploration, together with the Feasibility-Impact rating, for the 12th Plan period highlighted in the document and detailed in the different chapter are:

a) GSI to complete geophysical and geochemical mapping expeditiously, with the assistance of outsourcing and service contracts, if necessary. (HFHI)

b) The completion of Geomorphological and Lineament Mapping (GMM) on 1:50,000 scale by GSI. (HFHI)

c) Hyper Spectral Mapping (HSM) in OGP areas on 1:50,000 scale by end of 12th Plan. (HFHI)

d) National Aeromagnetic Surveys by the GSI in a comprehensive and systematic manner for OGP by end of 12th Plan and rest of the country (including off-shore) by end of 13th Plan. (HFHI)

e) Prepare and implement a project to enable 1:50,000 scale geological, geophysical, and geochemical maps to be served on internet in GIS platform in line with international practice. (HFHI)

f) Create a National Geophysical Data Repository and a National Drill Core Repository to assist entrepreneurs to take-up exploration. (HFHI)

g) Conducting High – risk exploration for deep-seated mineral deposits through modern technology infusion. (HFHI)

h) Provide for independent regulation of concessions and appropriate Legislation on Transferability of the mineral concessions. (HFHI)

i) Develop and roll out a country wide Mining Tenement Registry and link-up with State Land Records Database for interface with digitized cadastral maps. (LFHI)

j) Special attention needed for exploration and search for strategic, scarce and deficit minerals to reduce imports. (HFHI)

k) State Directorates of Mining and Geology to be developed to create facilities for concession system, mine plan and closure, sustainable mining practices (SDF) and stakeholder protection and royalty system. (HFHI)

l) Repositioning of MECL in promotional role for deep seated and concealed mineral deposit exploration using HTREL (LAPL) under new MMDR Act. (HFHI)

m) Facilitate capacity development of State Mineral Development Corporations and promote joint ventures in exploration with MECL and central PSUs and private sector. (HFHI)

n) Adoption of Globally acceptable reporting systems such as UNFC and JORC for assessing mineral reserves/resources. (HFHI)

o) Incentivize the private sector to create R&D institutions, create laboratory facilities. (LFHI)

p) Develop beneficiation techniques for zero waste mining. (HFHI) q) GSI to complete the procurement of Ocean Going Research Vessel

(OGRV); Geo-technical Vessel (GTV) and Coastal Launch for offshore and coastal geoscience work. (HFHI)

r) Create and enhance capacity of GSI and States for offshore / Coastal geoscience including Coastal geomorphology and beach sand / tidal deposit resources. (HFHI)

14. The comprehensive plans for generating and disseminating quality baseline geological data; focusing on exploration of deep seated and concealed deposits and technology infusion for the same; rolling out online mining tenement registry;

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bringing transparency in the grant of mineral concessions; enforcing UNFC and JORC compliance of mineral resources information etc, are likely to give positive results in accelerating mineral exploration and attracting private investments for the same during the XIIth Plan Period. .

15. We would like to place on record our gratitude to all the members of Sub-Group, State Governments, FIMI and the representatives of the private sector companies for providing all necessary inputs and making valuable suggestions. The dedicated efforts put in by the members of Core Group are highly appreciated and gratefully acknowledged.

(Dr.S. K. Wadhawan) DIRECTOR (Technical),

Ministry of Mines &

Member Secretary – Sub Group I

(S. K. Srivastava) Additional Secretary Ministry of Mines

& Chairman, Sub Group I

v

Sub Group I Mineral Exploration and Development

[other than coal and lignite] Executive Summary 1. INTRODUCTION India’s geology setup is similar in many ways to that of resource rich countries

like Canada, Australia, Brazil, South Africa, Chile and Mexico etc. The share of the mining sector in the GDP of these countries in 2010 ranged from 15.1% to 2.3 %. However, in India mining sector accounts for just 2.2% of the GDP (source : McKinsey Report, 2011).

Global spending on exploration in 2010 was $10.68 billion with major share of Canada (18%), Australia (11%), US (8%), Peru (7%), Mexico (6%). The exploration spending (including for oil and gas) in India is around $ 15 /sq. km. compared to $ 124/ sq. km. in Australia and $ 118 / sq. km. in Canada (source : McKinsey Report, 2011).

Experience in other countries shows that reserves can increase significantly with additional exploration and beneficiation drives by state-of-the-art technology, e.g. Australia’s known iron ore reserves increased hundred fold in 40 years from 400 million tonnes in 1966 to 40 billion tonnes in 2005, whereas India’s resource base of Iron ore rose from 5000 million tonnes in 1955 to 25,249 million tonnes in 2005.

National Mineral Policy, 2008 envisaged that the private sector would in future be the main source of investment in reconnaissance and exploration and government agencies will expend public funds primarily in areas where private investment are not forthcoming due to high uncertainties.

The decline in the availability of non-bulk surfacial deposits, on account of exploitation of all known deposits, which have sustained the human civilization over several millenniums, it has become imperative world over to look for deep seated mineral resources and also intensifying exploration in the obvious geological potential (OGP) areas in the country for meeting the ever growing need of the industry.

Since independence, the value of mineral production increased from a level of Rs. 58 crores in 1947 to Rs.53,793 crores in 2008-09 (excluding fuel minerals) amounting to a growth of 927 times in about 62 years.

2. REVIEW OF ELEVENTH FIVE YEAR PLAN (2007- 2012) A. The chief two objectives of the 11th Plan were the following

• Intensification of exploration activities for, 1. low volume – high value minerals such as gold, diamond, base-metals and

PGE; and 2. augmentation of existing resources in respect of ferrous and non-ferrous

and industrial minerals • Encourage private sector investment in mineral exploration

B. On review of the achievements of the Plan period the following areas of concern have been identified:

1. Investments in exploration are grossly inadequate and not commensurate to geological potential of the country.

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2. GSI’s modernization plan needs to be accelerated to meet emerging challenges.

3. There is an acute shortage of geoscientists in mining sector in general and GSI in particular

4. Impact of increased investment in R&D is not visible and has not resulted in significantly enhanced output

C. The following significant initiatives have been taken during the Plan period to achieve the targets set for the mining sector

1. National Mineral Policy 2008 has been approved by the Government of India on 13.03.2008

2. HPC Report on Functioning of the Geological Survey of India has been presented on 31.03.2009 and recommendations of the HPC are being implemented in a phased manner.

3. Revised MMDR Act has been drafted and is to be introduced shortly in Parliament

4. Restructuring of IBM and the proposal of repositioning of MECL are being concretised

5. Modernisation programme of GSI as an offshoot of the HPC recommendations has been taken up

6. The usage of IT in general and Geoinformatics in particular has been vigorously pursued through the Portal Phase I & II of GSI. These have brought abot a sea change in data storage, data analyses and data dissemination. The DPR for the Portal Phase III programme is to be finalized shortly.

7. The process of construction/ procurement has been initiated for a new Ocean Going Research Vessel for GSI for seabed survey and exploration for non-living resources etc., as a replacement of RV “Samudra Manthan”

D. Keeping in view the objectives of the Plan and the gap areas identified the following issues were identified for defining the path ahead: Need to improve management capacity at Central and State Government

levels by: 1. strengthening scientific and regulatory capabilities of concerned

organizations; 2. improving HRD in terms of trained manpower 3. computerization in geo-spatial data collection, integration and analyses and

also for processing and management of mineral concessions; and 4. development of SDF

Formulation of comprehensive framework for sustainable development of country’s mineral resources, taking due notice of conflicting interests of various agencies

On the basis of the current status of mineral exploration in India vis-à-vis the global scenario and the review of the XI Plan, the ToRs of the Sub Group 1 have been deliberated and discussed and necessary recommendations presented in the different chapters. The brief outline of the issues and recommendations of the different chapters are presented below.

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3. NATIONAL MINERAL INVENTORY (NMI) – [TOR – I & II] Preparation of mineral inventory was included in IBM’s Charter in 1968 and the

first NMI by IBM in 1971 covered 17 important minerals. NMI is being updated every five years commencing from 1985 UNFC codification for NMI was adopted w.e.f. 01.04.2000 The latest inventory (2005) included 65 minerals which have been grouped as :

1. Metallic Minerals a) Ferrous Group b) Non-Ferrous Group

1. Non- Metallic Minerals 2. Precious & Semi-Precious Minerals 3. Strategic Minerals 4. Fertilizers Minerals

NMI (2005) covers 17195 deposits distributed in: a) 8824 freehold areas. b) 653 public sector leases c) 7641 private leases d) 77 part leaseholders/others

Provisional figures for 2010 available for 22 minerals. As per inventory, mineral commodities are classified as :

a) Abundant, b) Adequate c) Deficient and d) Scarce

Life indices are liable to change with changes in resource inventory, demand & supply position, production pattern, technology development and applications.

Substantial portion of mineral reserves fall in unclassified, unknown, inferred and reconnaissance categories.

Recommendations / Future Strategy for upgrading the NMI 1. Mission approach needs to be initiated to enhance confidence levels of unclassified,

unknown, inferred and reconnaissance categories 2. Special attention has to be paid for exploration and search for strategic, scarce and

deficit minerals to reduce imports. 3. Resources are required to be augmented by - search for concealed deposits - lowering of threshold values

- conservation of existing resources by (a) zero waste mining (b) improved beneficiation

4. Development in IT has to be leveraged for updating of NMI every two years. 5. JORC system of reporting besides UNFC has to be introduced 4. EXPEDITIOUS EXPLOITATION OF PROVEN AND ECONOMICALLY VIABLE

MINERAL DEPOSITS [TOR – III ] ‘Obvious Geological Mineral Potential’ (OGP) of area around 0.57 million sq. km has

been divided into the following five major mineral belts

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1. N.E. Peninsular Belt/ Chota Nagpur and Orissa Plateau (Jharkhand, West Bengal and Orissa)

2. Central Belt (Chhattisgarh, A.P., M.P. & Maharashtra) 3. Southern Belt (Karnataka Plateau and Tamil Nadu) 4. S.W. Belt (Karnataka and Goa) 5. N.W. Belt / Aravalli Belt (Rajasthan and Gujarat)

From the perspective of the proposed MMDR Act, government agencies may

concentrate on these identified zones. Suggested Road-map for Speedy Exploitation 1. IBM to update online database comprising Tenement Registry and Resource

Inventory 2. Investment climate and fiscal regime needs to be improved through the new

MMDR Act with special focus on augmentation of exploration activities in priorty areas.

3. Fair, transparent and efficient concession granting procedures has to be ensured 4. Reduction and rationalization of clearance granting procedures (forest,

environment) 5. Improvement of infrastructure in OGP areas 6. Improvement of monitoring and supervision through State DGMs 7. Utilisation of state-of-art contemporary technology in exploration, besides mining

and beneficiation has to be facilitated 5. IDENTIFICATION OF TECHNOLOGICAL GAPS IN MINERAL EXPLORATION

(WITH SPECIAL EMPHASIS ON DEEP SEATED / CONCEALED DEPOSITS) - [TOR – IV]

The following gaps in technological and geo-scientific inputs for implementing an accelerated mineral exploration programmes have been identified: Absence of detailed structural, geophysical ( ground and aero-geophysical) and

geochemical data Use of obsolete and time consuming drilling equipments and lack of advanced drilling

techniques. Outsourcing for these needs to be explored. Lack of off-shore mineral exploration techniques Lack of application of advanced beneficiation technological know how Technical deficiency in application of multivariate statistical analyses, interpretation

and multi-thematic / multidimensional modeling Leading edge mineral exploration technologies need to be applied. Some of these

are: (i) The hyperspectral remote sensing and Geomorphological - Lineament mapping

for prognostication and identification of mineralized zones. (ii) 3-D seismic surveying which provides detailed geological and mineral mapping

capability at both a regional and project scale facilitating improved selection of prospective terrain and an accelerated exploration cycle.

Absence of data and interpretation of low-altitude multisensor airborne surveys with software support for data synthesis and interpretation aimed at anomaly location

Lack of Application of geochemical surveys particularly of gas collection (nano -gas collection) for identification of sulphide deposits and energy resources

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Need for specific and high precision laboratory studies aimed at guiding and substantiating field studies pertaining to ore localization

Remedial Measures for bridging Technological Gaps The remedial measures envisaged and planned for filling the geoscientific and technological gaps are as below: 1. Interpretation of integrated geological, geophysical and geochemical data 2. Software for prognostication of anomalies for search of deep-seated deposits 3. Acquisition, Integration and Interpretation of low-altitude multi-sensor airborne survey

data through a National Aeromagnetic Survey Programme 4. State-of-the-art ground geophysical techniques e.g. - 3-D Seismic Surveying - Magnetotelluric Surveying - Borehole Resistivity and gravity surveying - Spectral IP Methodology 5. High Resolution Hyper-spectral airborne / satellite imageries 6. Advanced drilling techniques such as Reverse Circulation, Rotary Air Blast, Controlled

Deflection, combined coring/non-coring 7. Off-shore exploration techniques applied at closer intervals - Multi-beam bathymetry - Multi-channel Seismic, magnetic and gravimetric 8. Develop Concept based models of mineral belts by integrating all the available

geoscientific data of the mineral belts comprising - Systematic and Thematic Mapping at progressively larger scale - Geomorphological and structural studies - Geochemical surveys - Aeromagnetic survey - Ground geophysics - Hyperspectral studies 9. Detailed Geological Mapping , Drilling and 3 D geological modeling at larger scale 10. Ground Geophysics

3D seismic surveying – useful for deposits such as VMS, SEDEX, MVT, IOCG, lode and porphyry copper-gold, kimberlite pipes and uranium in association with unconformities

Borehole Resistivity Tomography – for VMS, SEDEX and IOCG type deposit Borehole Gravity for expanded search radius Spectral IP Survey

Besides the issues listed above the identified necessary back-up and support in terms of capacity building and training required for enhancing exploration activities in the country are enumerated below. 1. Research-Development – Installation and operationalisation of advanced laboratory

techniques 2. I.T. Delivering System : Database building and information sharing among exploration

agencies 3. Human Resource Development in

Geospatial Surveying

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Ore Deposit Modeling Geostatistical Techniques and multivariate analysis 3D/4D integration and interpretation of geological, geochemical and

geophysical data for multi-thematic, multi-dimensional modeling for deep, concealed deposits

Acquisition, processing and interpretation of high resolution geophysical data 6. FACILITATING PRIVATE SECTOR INVESTMENT IN MINERAL EXPLORATION [

TOR – V ] Legislative framework to be built so as to incentivise exploration activity Exploration companies to be encouraged through priority in grant of concessions,

seamless transition and security of tenure and free transferability of concessions without the need of stage-wise approval

Allow listing of exploration companies on stock exchange and introduce concept of flow-through shares

Fiscal and taxation regime to be reviewed and rationalized to make it globally competitive.

Concession granting procedures to be simplified and made transparent Increased application of e-governance for expeditious grant of concession. State agencies (GSI, IBM, DMG’s) to be strengthened suitably for baseline data

generation, exploration and monitoring and supervision of exploration activities when conducted by outsourcing.

7. REVIEW OF PRESENT AND SUGGESTED FUTURE ROLE OF STATE

AGENCIES – [TOR – VI] GSI and DGM need to be strengthened so that they are able to concentrate on

generation of basic geo-scientific data in a time bound manner and its ready dissemination to private investors to facilitate regional and detailed exploration as also for competitive bidding mechanism.

Greater co-ordination to be achieved through the medium of CGPB/ SGPBs Emphasis on detailed mineral exploration to shift from GSI and DGM’s to private

sector Educational and Research institutions to be encouraged to undertake enhanced

interest in geo-scientific activities through collaborations or joint ventures. 8. PROMOTIONAL ROLE OF CENTRAL AND STATE GOVERNMENT AGENCIES

– [TOR – VII] National Mineral Policy 2008 advocates linking role of state agencies to systematic

investigation for development of resource base of: ─ scarce / deficient minerals; ─ strategic minerals; and ─ minerals where private sector is reluctant to invest

Adequate funding should be provided to GSI and DMG’s for development of these mineral resources to reduce dependence on imports

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9. OFFSHORE GEO-SCEINTIFIC STUDIES AND MINING – [TOR – VIII] MoES and GSI to conduct, on agreed sharing basis, Swath Bathymetric Survey in

shallow and deep water regions of the EEZ Preparation of comprehensive Seabed Topographic and Sediment distribution Map Interpretation of geo-morphological features to decipher morpho-tectonic set-up Identify promising mineral zones and thereafter conduct regional and detailed mineral

exploration GSI to concentrate on regional exploration of placer minerals, lime mud, phosphatic

sediments, poly-metallic nodules, hydrothermal deposits etc. GSI to complete procurement of the replacement OGRV for RV Samudra Manthan

and initiate procurement of the 2nd new OGRV MoES and NIO to concentrate on deep sea sector of Central Indian Ocean Basin for

detailed exploration of poly-metallic nodules and sulphide minerals 10. INVESTMENT REQUIRED FOR MINERAL EXPLORATION [TOR – IX] The recommended organization wise break-up of investment required for the implementation of the envisaged 12th Plan targets are as follows: GSI (Promotional & Capital) : Rs. 4,596 crores MECL (Promotional & Capital) : Rs. 175 crores State Govt. and other agencies : Rs. 2,000 crores IBM : Rs. 50 crores

Total : Rs. 6,821 crores

CHAPTER-I

INTRODUCTION 1.1.0 PREAMBLE:

1.1.1 The mineral deposits are geological entities within the earth’s crust having

anomalous concentration of some elements of value. Such concentrations are inhomogenously distributed in the earth’s crust, largely controlled by the polarity of tectono-magmatic domains created by the crustal evolutionary processes and or produced by conducive surficial environments and processes. Besides appropriate concentration, the elements should be available in appropriate physico-chemical state, which would be amenable to their economic winning. In order to ensure the survival and prosperity of future generations, it is of paramount importance for mankind to understand the earth and its dynamic processes and to harness the earth resources without offending the natural forces that balance the ecological systems of biosphere and atmosphere.

1.1.2 The earth’s resources have been tapped and utilized from the prehistoric era. The objective was solely resource utilization without much understanding of the factors controlling the localization of economic minerals and no appreciation for environmental impact of such exploitations.

1.1.3 Mineral assets of any country play a direct role in the growth and prosperity of a country and its people. It is therefore, unavoidable that substantial investments are made for exploration of these assets through different agencies having the skills to do the job. Consumption of minerals and their required production has been consistently high in developed countries. Statistics demonstrates that 20% of world population residing in Europe, North America, Japan and other developed countries consume bulk of the mineral resources. Analysis of current data, however, establishes that the demand in these countries has reached a saturation level. Current trends indicate that demand of the remaining 80% of the global population would increase manifold from the current low levels in the coming years, which may lead to a serious crisis This being the background, developing countries including India continue prioritizing the vital activity of updating the National Geoscientific Information and base line data for the purpose of identifying new geological domains potential for housing additional mineral resources. It is also needed to intensify activities of mineral search using modern techniques thus augmenting mineral production keeping in view the future needs of the country.

1.1.4 With the fast exploitation of known deposits and decline in the rate of locating new mineral deposits within shallow depths, which have sustained the human civilization over several millenniums, it has become imperative to look for deep-seated and concealed deposits under thick overburden for meeting the ever growing need of mankind. Though under the prevailing globalized economic order there may be many avenues to obtain minerals and metals from out side the country, however, every nation thrives to build up and secure its own resource base in order to face any unforeseen eventuality. A developing country like India, which is poised to flourish as a major global economic power, would certainly thrive for self reliance in as much mineral commodities as possible by unraveling the resources available within its territory and acquiring the capability of their economic extraction and utilization by adopting latest techniques and technologies. The probe for deep-seated mineral resources is obviously fraught

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with many high risk activities including technological and economic hurdles extending from the stages of their search and exploration to exploitation.

1.1.5 India having 2.4% of the global area, sustains 17.5% (Census-2011) of the world

population. Our per capita consumption of minerals and its products is one of the lowest in the world. In the pre-independence period the major activity was restricted to coal. In addition, the country’s mineral exploration strategy was limited to the selected major minerals that too, confined to better grade and large ore deposits occurring at or near the surface. In the post independence era, the demand for growth has driven the demand for mineral resources leading to significant expansion and diversification of mineral exploration. New discoveries though made were not enough to fully meet the demand. Therefore, it is essential that the country continues to strengthen the resource base through vigorous exploration activities by Government /Private Sector agencies.

1.1.6 It is a fact that the mineral production in India in the post independence period has

grown in quantity as well as in value. The Table-1.1 on growth of mineral production figures indicates the factual position. The growth rate in the energy sector is manifold and there is steady growth even in metallic and non-metallic sector, except in gold where there is reverse trend. Since independence, the value of mineral production increased from a level of Rs. 58 crores in 1947 to Rs.53,793 crores in 2008-09 (excluding fuel minerals) amounting to a growth of 927 times in about 62 years. Though a significant part of the increase is a reflection of the increase in price of commodities, a substantial growth in production has also happened, driven by demands arising out of population growth and development of the economy. This upward trend in mineral production could not have been achieved without matching discoveries of mineral deposits by the different exploration agencies.

1.1.7 Different minerals are usually hosted in different geological set ups, created by

variable geological processes. It is, therefore, easy to appreciate that even a country with extremely diverse geological setup cannot be endowed with all minerals required for the development of the country. It is also true that it requires intense exploration efforts to identify the diverse geological setup and locate targeted minerals likely to be hosted in them. India lacks adequate resource base in respect of a number of minerals, for which the country has to depend largely on imports. Therefore, the need for pursuing exploration efforts with modern concepts and tools for possible breakthrough, mainly in locating concealed/deep seated mineral deposits and deficient and non-existent mineral commodities remain the ongoing priority. It is also necessary to divert due attention to low grade ores in order to convert yester-year’s waste into tomorrow’s resource with the help of technological innovations.

1.1.8 The National Mineral Policy-2008 reflects the seriousness and the concern of the

Government for the development of the mineral sector. It has been revised to attune it to the current realities in world economy, barriers to international trade and dismantled investment flows. To keep pace with new mineral policy, acts and rules are being evolved in order to adapt to international best practices. The Ministry of Mines has framed a new draft Mines and Minerals (Development and Regulation) Bill, 2011 to replace the MMDR Act 1957 after intensive consultations with the stake holders and State Governments. The draft MMDR act envisages

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four broad types of mineral concessions which are – (i) non-exclusive Reconnaissance Licence (RL), High Technology Reconnaissance cum Exploration Licence (HTREL) as a distinctive tool for high technology exploration starting from reconnaissance specifically for deep seated deposits rather than bulk minerals, Prospecting Licence (PL) and Mining Lease (ML) instead of existing three which are – Reconnaissance Permit (RP), Prospecting Licence (PL) and Mining Lease(ML). The HTREL is a new type of mineral concession and it is proposed to be granted only for deep seated deposits for multiple minerals (other than iron ore, bauxite, limestone etc.). The Government agencies involved in regional and detailed mineral exploration both on and off shore are the Geological Survey of India and the Directorates of Mining and Geology of different states and the Public Sector Undertakings of the central and the state government such as Mineral Exploration Corporation Limited (MECL) etc. Further, it is recommended that GSI has to complete its geophysical and geochemical mapping expeditiously with the assistance of outsourcing and service contracts if necessary, so as to develop potential areas for prospecting and prospects can be competitively awarded. For minerals likely to be found as surfacial deposits and where prospecting does not require high technology, the State Governments should be incentivised and enabled to take up prospecting and exploration so that adequately prospected ore bodies can be put to bid. With the changes and modifications in the rules and regulations a conducive and compatible environment may lead to attract capital investment and technology transfer by the private sector including foreign companies, both in high risk field of mineral exploration and in the mining and metallurgical industries, considering India’s as yet unexplored high geological potential for new mineral discoveries.

1.2.0 GEOSCIENTIFIC DATABASE FOR MINERAL PROGNOSTICATION IN INDIA 1.2.1 India has a total land area of 3.28 million sq. km. of which 2.42 million sq km.

comprises hard-rock terrain, while the rest is occupied by a thick alluvial cover.

In view of the identified obvious geological potential (OGP) areas, only 20-25% of the hard-rock area (approximately 571000 sq km) holds potential for solid fuel and non-fuel schedule mineral resources. Besides the country has potential for industrial and minor minerals over large area. At present 504598.43 hectares area is under mineral lease, which forms a considerable part of the total area of the known mineral prospects and deposits. Out of the leased area only a small part is under active exploitation. Large areas under lease are still awaiting exploration. Still a large area covering the known mineralized areas having favourable geological condition for the localization of mineral prospects are yet to be explored. However, considerable areas have been given for regional reconnaissance under RP mainly to private agencies, in some states, but these also pertain to traditionally known potential domains. As a follow up of the NMP-2008 in order to attract large investment and high technology the Ministry of Mines has framed a new draft Mines and Minerals (Development and Regulation) Bill, 2011 to replace the MMDR Act 1957 after intensive consultations with the stake holders and State Governments wherein a new type of mineral concession to be known as High Technology Reconnaissance cum Exploration Licence (HTREL) has been introduced. It is a type of mineral concession which combines the features of a Reconnaissance Licence (RL) and Prospecting Licence (PL) i.e it combines the large area character of an RL with the permissions for general and detailed exploration available under PL and is thus given for larger areas and

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longer periods of time, not exceeding six years. The draft MMDR Act further permits the State Government to notify certain areas where the mineral is a bulk mineral occurring in large surfacial deposits like iron ore, bauxite, limestone, dolomite etc. for reconnaissance or prospecting operations to be undertaken (only) by the GSI, the Atomic Minerals Directorate, the State Directorate, MECL, CMPDIL or such other agencies as may be notified in this behalf for a maximum period of six years to generate data for competitive award of mining leases.

Indian Landmass – Geographical vis-à-vis Geological Setting: The Geographical units from south to north in Indian landmass are:

Peninsular India: Precambrian (Archaean – Proterozoic) shield area, restrictively overlain by the Gondwana, Deccan Trap and Tertiary to Recent Sedimentary Formations.

Indo– Gangetic alluvial tract: Neogene-Quaternary sediments lying between the Peninsular areas and the Himalayas.

Himalayan Region: Precambrian shield elements and a thick sequence of Phanerozoic rocks.

Naga – Andaman fold belt: Tertiary fold belt which includes parts of Indo – Burma Range and Andaman – Nicobar island arc.

1.2.2 In India, all the major non-fuel mineral deposits are mainly confined to the Precambrian rocks, belonging mostly to the Archaean to Middle Proterozoic and some within the late Proterozoic age. The spatial distribution of the ancient crustal segments is restricted in the cratonic areas, known as Dharwar craton, Aravalli craton, Singhbhum craton, Bastar craton and Bundelkhand craton. These cratonic areas are skirted by Proterozoic mobile belts, along which the cratons have coalesced to form a composite landmass of the Indian Peninsular shield area. The intra-cratonic basins were formed in the mid-Proterozoic as well as in late-Proterozoic age and the Proterozoic rocks have wide expanse, covering major part of Peninsular India and Lesser and Central Himalayan belts. The Deccan Trap, however, covers a large area (0.6 million sq. km.) of the Peninsular India. The metallogenic provinces in Precambrian terrain of Peninsular India are related to Archaean granite-greenstone belts, Proterozoic fold belts, including high grade granulite terrain, and thermally reactivated granite gneiss complexes and mid-to late-Proterozoic cover sediments.

1.2.3 The Phanerozoic rocks in India, except Deccan Traps, are mainly exposed in the

Himalayas, as also in linear basin belts of Gondwana in Peninsular India and coastal areas. Most of the solid energy resources are located in the Gondwana and Tertiary basins. Potash, of low grade, is present in the evaporite basin of western India.

1.2.4 Holocene and Quaternary sediments and weathered profiles have concentrated a

few metals (gold, tin) as placers. Laterite profile host enormous resources of bauxite, clays, nickel and titanium etc. A wide variety of heavy minerals of economic significance, including rare minerals, are found in beach sand and in near-shore conditions of east and west coasts of India.

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1.2.5 The huge resources of dimension stones occur in the Archaeans to the

Phanerozoics rocks. The major part of the multi-coloured and black commercial granites, however, is restricted to the Precambrian terrain in India.

1.2.6 India has more than 7500 km. long coastline and the territorial waters cover more

than 0.15 million sq.km. Seabed resources of these areas and the EEZ covering about 1.87 million sq.km. have also come to light in recent years. If legal continent shelf is taken in account total offshore area would become about 3.09 million sq km. This may also require exploration for resources.

1.2.7 A critical review of all these settings is definitely suggestive of India’s exploration

potential for natural resource endowments. 1.2.8 The Geological Survey of India has built up a national geoscience database in the

form of 1:50,000/1:63,360 scale geological maps covering the entire country, using ground survey, aerial photographs and satellite imageries. The plan for preparation of geochemical and geophysical maps for the entire country has already taken off during the Xth Plan period. The database is continuously updated as the new data are incorporated. In addition to the existing facility of aerogeophysical survey by fixed wing aircraft for a faster coverage, procuring new set of equipments and helicopter will strengthen the continuing program of multi-sensor aerial survey. Plan for generation of such multi-parametric data sets is with the objective of having better insight into the potential of a geological target in terms of mineral resources by means of thorough analysis of the data with the help of advanced tools. Seabed survey and preliminary assessment of mineral resources are being carried out by GSI in the EEZ including territorial waters for the last three decades with its own Research Vessel and two Coastal Launches.

1.2.9 Creation of National Geoscience Information and knowledge base (as on

31.03.2011)

Coverage of 98.31% of the country (out of total mappable area of 3.146 million sq. km.) by geological mapping on 1:50,000/63,360 scale.

Reconnoitary survey of 1.97 million sq.km. of Exclusive Economic Zone (2.014 million sq. km.) within territorial waters and in EEZ beyond territorial waters.

Airborne geophysical survey (TOASS) of 291,976 sq. km. was covered by deploying multisensors.

Coverage of 147,795 sq. km. in geologically critical areas of the country by specialized (1: 25,000) thematic mapping (STM).

Geological mapping of 19000 sq. km. in Antarctica through participation in all the 30 scientific expeditions – GSI officers gave leadership in 8 teams.

Path breaking research data in Petrology, Palaeontology, Geochronology, Geophysics and Geochemistry.

Creation of large database/information necessary for mineral development, water resources, power projects, engineering projects, surface transport, urban and rural development, environment assessment, coastal zone development, natural hazard management.

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1.3.0 EXPLORATION AND REGULATORY AGENCIES

1.3.1 The Ministry of Mines(MOM) was created after independence with the responsibility of survey and exploration of all minerals other than petroleum, natural gas and atomic minerals; for mining and metallurgy of non ferrous metals and for administration of all mines and minerals other than coal, natural gas and petroleum.

1.3.2 The Central Government departments, State Government departments, Central

and State Undertakings etc. solely carried out investigations for search of minerals and their development upto the VIII Five Year Plan. With the opening up of mineral sector to private agencies, Multi National Companies (MNC’s), Indian companies and also their joint ventures have entered into survey and exploration since the IX Five Year Plan.

1.3.3 The Central Government departments under the Ministry of Mines involved in

mineral exploration, development and mineral administration are the Geological Survey of India (GSI), Public Sector Undertakings such as Hindustan Copper Limited (HCL), National Aluminium Company Limited (NALCO), Mineral Exploration Corporation Limited (MECL) and besides above the joint venture company Hindustan Zinc Limited (HZL). State Government departments such as the Directorates of Geology and Mining and the Public Sector Undertakings of the State Governments are also engaged in survey and mineral exploration besides mineral administration and development.

1.3.4 The Geological Survey of India (GSI) was established in 1851 is one of the

oldest geological surveys of the world. It was formed with the responsibility of mineral search and exploration, both on and offshore, as one of the specified tasks. This activity comprises multidisciplinary surface and sub-surface probes, through well defined stages (P-I, P-II, E-I and E-II) within the realm of Preliminary Exploration, as defined in the GSI Misc. Pub.58, 1981 and BIS booklet IS 12595, 1989. The accredited function of GSI in this field comprises search and prospecting for all minerals, except oil and gas and atomic minerals, leading to resource evaluation upto “Possible” category. Different stages of exploration by GSI are in conformity with the exploration inputs for G4, G3, G2 (partly) stages of UNFC system. The resource estimation is currently classified as indicated resource (332), inferred resource (333) and reconnaissance resource (334). It may be stressed that the mineral search by other organizations derive substantial support and lead from the fundamental geo-scientific studies conducted by GSI through ground, airborne and marine surveys. Introspective analysis of the regional data-sets generated and continuously updated by GSI, in conjunction with remotely sensed information serve as basic clues for mineral prognosis.

1.3.5 The National Mineral Policy-2008 has brought forward radical reforms in the

mineral policies of the country. The salient features of this policy are facilitating role by the government agencies including the GSI. The Government agencies will expend public funds primarily in areas where the private sector investments are not forthcoming. In conducting exploration for minerals special attention will be given by the government agencies to the development of the strategic minerals through systematic investigation of potential sources which are difficult to otherwise access. The expected private sector investments would form the

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primary force in future reconnaissance, prospecting and mining activities, It is also envisaged that GSI would continue to act as the principal national agency for generating basic as well as front line advanced level data and provide updated data on mineral information to prospective investors in order to facilitate investment decisions. It would also play the role of monitoring the work of the private exploration agencies. GSI has already published General Information Dossiers (GID) and updating Detailed Information Dossier (DID) in respect of important minerals. Geology and mineral resources of the states have been published as Miscellaneous Publication 30. In addition documents reviewing the status of exploration of different Schedule Minerals have been prepared and would supply the required data for prospective investors. GSI has already built up portal to disseminate information to public through progress reports, records, memoirs and maps on different scales. It is foreseen that future role of GSI in mineral sector would reflect a judicious blend of national priorities towards planned development missions of the Government with commercial activities. It would collaborate with the commercial organizations in a time-bound, cost-effective and competitive manner to identify new targets, assess them properly to make them investment-worthy properties and augment the resource base of the country.

1.3.6 A High Powered Committee (HPC) was appointed by the Government of India to

study in depth and recommend the repositioning of the GSI. As per the HPC report a new Vision and Charter for GSI has been adopted. GSI has been restructured in the form of five Missions comprising – Baseline data generation; Natural Resource Assessment; Geoinformatics; Fundamental and Multidisciplinary geoscience and Training and Capacity development. In addition 3 support systems to provide administrative, S&T and policy support have also been incorporated. The human resource management involves recruitment, promotion and training for placing suitable persons at key positions. The annual recruitment of the geoscientists has been substantially stepped up. Geology has been declared as ‘organised service’ and Geophysics, Chemistry and Engineering have been proposed to be declared as organised service. A new Data Dissemination Policy has to been adopted by GSI. The CGPB mechanism has been revamped. The GSI is being modernized by the acquisition of the modern survey and laboratory equipments on a fast track basis.

1.3.7 Established in the year 1948, The Indian Bureau of Mines (IBM) is a multidisciplinary organization under the Ministry of Mines which has been assigned with the responsibility to look the major aspects of the country’s mining and mineral industry. It fulfills the dual role of enforcing statutory provisions as well as engaging in various development activities. It is engaged in promotion, conservation and scientific development of mineral resources and protection of environment in mines other than coal, petroleum and natural gas, atomic and minor minerals. To fulfill its charter of functions, IBM plays a multifaceted role as a regulator, consultant, facilitator, data repository, R&D centre and as an advisor to the Government. It undertakes regulatory inspections and study of mines, approves mine plans and mining schemes and research on the beneficiation of low grade ores/minerals and on special mining problems. It publishes and updates statistical information on mineral inventory, (both lease-hold and freehold areas), mineral production, export and import of minerals etc. after every five years as per United Nations Framework Classification (UNFC). It facilitates in creating awareness about assessment of reserves as per UNFC and also maintains Mining

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Tenement Data. IBM advises on all aspects of mineral industry, trade and legislation to the Government. IBM acts as a nodal agency to monitor the progress of work as well as details about the relinquishment of areas etc., by the RP/PL holders. IBM has also been entrusted with the responsibility of granting Exploration Licence for minerals resources offshore in the territorial waters, continental shelf, exclusive economic zone (EEZ) and other maritime zones in India vide an Act of the Government of India which has come into force from 15.01.2010. A committee has been formed under the Chairmanship of Joint Secretary (Mining Legislation) on 23.09.2009 for reviewing and restructuring of functions and roles of IBM in terms of policy directions given in the National Mineral Policy 2008. The committee on 20.12.2010 constituted five sub-groups for critically examining various functions of IBM given in the draft report before its submission to the Peer Committee.

1.3.8 The Mineral Exploration Corporation Ltd. (MECL) was carved out of GSI in the

year 1972 with the sole objective of reducing the gap between the discovery of the mineral prospect and its commercial exploitation. It carries out detailed mineral exploration as a follow up of the GSI’s regional exploration. Its activities enhance the confidence level of resource estimation both in quantity and the quality to “Pre-feasibility mineral resources (221) / Measured mineral resources” categories. In the present scenario MECL is not only carrying out the promotional and quasi-commercial exploration activities on behalf of the Government but is also competing with the domestic private players and with the MNCs in mineral exploration.

1.3.9 MECL has been adapting to the needs of exploration with the modern

developments. In addition to the conventional drilling activities, it carries out geophysical and geochemical surveys, base line environmental and remote sensing studies. MECL has also stood up to the demands of slim hole drilling for CBM, Oil Shale Exploration in collaboration with M/S BRGM, France in NE India and deep drilling for evaporates in Rajasthan. The company has been registering profits from the Xth Five Year Plan onwards.

1.3.10 Ministry of Mines while preparing the Results-Framework Document for the year

2010-2011 has included in one of the objectives as Repositioning of MECL in light of New Mineral Policy-2008.This was necessary as MECL is the only exploration company under Government. Accordingly, a Repositioning Plan was prepared giving due emphasis on modified vision, mission, objectives and SWOT analysis. The strategic business, technology and manpower plan has been formulated and built upon the core strength in line with NMP-2008 and to avail new related opportunities in the mineral sector.

1.3.13 National Geophysical Research Institute (NGRI), since its inception in 1964,

has been carrying out basic and applied research in the areas of solid earth geophysics, study of history of lithosphere, understanding of processes of earthquake and related phenomena and understanding the interior of the earth. It has been actively engaged in developing various geological, geophysical and geochemical technologies oriented for mineral exploration. In this direction, NGRI has introduced and implemented air-borne geophysical techniques and covered several mineralized belts. The new initiatives of NGRI include mapping of the active Indian plate, carbon sequestration, multi-parametric observatories and 4D seismic survey.

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1.3.14 Atomic Minerals Directorate for exploration and research, earlier known as the Atomic Minerals Division (AMD) was formed in the year 1949 and is one of the oldest units of the Department of Atomic Energy (DAE). It was established to carry out survey & exploration for the raw materials required for the atomic energy programme of the country. It is engaged in building up resource position of rare metal and rare earth elements besides the atomic minerals. The new mineral policy has spared the atomic minerals from its purview due to strategic and defense consideration as a result the atomic minerals continue to be under the control of the Government.

1.3.15 Besides the Central Govt. agencies mentioned above, almost all State Governments have Directorates of Mines & Geology (DMG). They monitor the mining activities in the State, co-ordinate with Central Government and advise the State Government in the matters related to the mineral industry. The State DMGs have the power to award/renew Reconnaissance Permit (RP), Prospecting Licence (PL) and Mining Lease (ML) as per the provisions of the MMDR Act, 1957 and MCR Act, 1960. The MMDR Act, 1957 also empowers the State Government to frame rules to prevent illegal mining. The Ministry of Mines have formulated a three pronged strategy for the prevention of illegal mining viz. constitution of Task Force by the State Government at State and District levels having representatives from IBM, Framing of rules under section 23C of the MMDR act, 1957 and furnishing of quarterly returns of illegal mining for review by the Central government. Accordingly, 20 States Governments have constituted the Task Force and 17 states have framed rules under section 23C of the MMDR Act, 1957 and during the year 2010-2011, 16 State Governments have submitted quarterly returns on illegal mining.

1.3.16 Generally, the exploration efforts of DMG's are concentrated on surface shows. The exploration by State Governments is mainly confined to the freehold and the leasehold areas of the State Mineral Development Corporations. The exploration activity in the private leasehold areas is very negligible and the efforts are mainly directed towards development of immediate extensions of the working mines.

1.3.17 The Public Sector Undertakings (PSUs) such as HCL, NALCO, NMDC, MOIL, the joint venture companies of the Government such as HZL and BALCO and the private sector companies both Indian as well as foreign are conducting exploration mostly in their leasehold areas towards planning and development of mines. The exploration is to enhance confidence level of reserves/resources in their specific areas rather than to add to mineral inventory. Moreover, the exploratory data is confined to comparatively shallow depths and there is seldom, if any, attempt to probe the deep seated deposit in their operational area.

1.4.0 Thrust of Exploration and priorities accorded in Plan periods (1947-2005) till

the Xth Plan 1.4.1 During First Five Year Plan (1951-56), Coal exploration was intensified with a

modest beginning; systematic regional exploration by GSI gained momentum and fresh plan of production - linked exploration programmes were drawn up.

1.4.2 Thrust in power, steel and agriculture necessitated massive exploratory inputs for

coal, limestone and iron ores, manganese and base metals in the Second Five Year Plan (1956-61). Base metal exploration always remained the highest priority since then, though priorities in other sectors changed.

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1.4.3 During the beginning of the Third Five Year Plan Period (1961-66), emphasis was given for bauxite exploration and substantial resources were established in Madhya Pradesh and Maharashtra. Discovery of bauxite in Amarkantak and Phutka Pahar area in Madhya Pradesh led to the setting up of Bharat Aluminium Corporation (BALCO). Discovery of phosphorite was a major breakthrough. For the first time in the world sedimentary phosphorite horizons were located in the Precambrian rocks of Udaipur District of Rajasthan. Large resources were established by GSI in Rajasthan, Mussoorie area of Uttar Pradesh and Jhabua area of Madhya Pradesh.

1.4.4 During the Second and Third Five Year Plans, the GSI set up ‘Coal Public

Sector Unit’ (for supporting the public sector agency in their exploration efforts). Intense exploration activities in the early years of the Second Five Year Plan were initially concentrated in South Karanpura and Ramgarh Coalfields and these efforts led to the development of several new mines. The regional exploration by GSI also led to the discovery of vast multi-seam quarriable reserves of coal in the eastern part of the Singrauli Coalfield, which culminated in the development of large open cast mines.

1.4.5 The Fourth Five Year Plan (1969-74) witnessed significant discoveries of base

metal belts. Major base metal deposits were located in Singhbhum, Khetri and Malanjkhand. In the Singhbhum belt, new copper deposits came to light in Turamdih, Ramchandra Pahar, Nandup and Dhadkidih. Discovery of Rajpura-Dariba lead-zinc belt in Rajasthan was also a major achievement. A belt of lateritic nickel-cobalt association was deciphered in Orissa. In early seventies coal exploration again gained prominence and highest priority was assignment to it. During this period, airborne geophysical surveys were introduced in the mineral search activities of GSI. The exploiting agencies in public sector viz., HCL, HZL etc., were established for mine development and enhanced production.

1.4.6 The Fifth Five Year Plan period (1974-79), witnessed the major discovery of East

Coast bauxite from the states of Andhra Pradesh and Orissa, thereby bringing the country in the front-line in world inventory on bauxite. Massive exploration efforts made by GSI and supported by MECL led to the enhancement of reserves by seven times within 18 months in the 1974-76 period. This was followed by the exploration and establishment of substantial reserves for manganese ore in Madhya Pradesh, Maharashtra and Orissa, besides chromium ore in Orissa. These were considered as ‘critical minerals’ for the development of steel and alloy industries. The Tin belt of Orissa - Madhya Pradesh found place in the Mineral Map of India. Exploration for metallurgical coal and refractory raw materials in free hold and leasehold areas also received thrust and priority.

1.4.7 During the Sixth Five Year Plan period (1980-85) emphasis was laid on

exploration of the ores of base metals, manganese, chromium, tin, tungsten, besides fertilizer minerals, including those of phosphorous and potash. The thrust was also assigned to exploration for gold and diamond. These activities resulted in locating new blocks in Rajpura-Dariba lead-zinc belt of Rajasthan. Discovery of gold deposit at Chigargunta in Andhra Pradesh, proved the southern extension of the Kolar Gold Field. A tin prospect was also established in Tosham in Haryana. Massive exploration efforts by GSI and MECL were directed towards locating

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potash deposits in the covered terrain of Western Region. Trillion tonnes of halite resources were established in Sri Ganganagar District.

1.4.8 In the Seventh Five Year Plan period (1985-90) efforts were made to enhance

the resources of base metals, tin, tungsten, fertilizer and refractory minerals, precious metals, diamond, rare metals and rare-earths. Efforts were made in obtaining latest available technology in the exploration of tin and tungsten by collaborative studies with BRGM of France. The planned efforts in mineral exploration by GSI and MECL led to the discovery of new prospect in the Rajpura-Dariba belt, Ghugra and Kayar in Rajasthan; gold deposits of Kempinkote, Wandalli, Uti, Champion East Lode and Mysore Mine Block in Karnataka, potash deposits of Marwar Basin in Rajasthan, extension of copper deposits in Khetri belt in Rajasthan and in Malanjkhand, Madhya Pradesh.

1.4.9 During the Eighth Five Year Plan period (1992-97), highest priority was accorded

for high value and high-tech minerals. Accelerated exploration programme to improve the resource position of marginal, poor or deficit categories of minerals were also given greater attention. The commodities, which enjoy unlimited demand and have potential for export, also received attention. The search for base metals, gold, tin, tungsten, molybdenum, platinum group of elements, diamond, rock phosphate and low silica dolomite got priority. In view of having attractive export market, preliminary assessment of decorative / dimension stones was taken up all over the country for the first time on regional scale.

1.4.10 New gold deposits were identified in Ajjanahalli, Chinmulgund, Hira-Buddini and

G.R. Halli in Karnataka. In the Dona area, Andhra Pradesh, gold prospects were identified and explored by GSI and MECL. The Bhukia area in Banswara district, Rajasthan was included in the Gold Map of India. This is a significant breakthrough, as except for southern states and a few small occurrences in central and eastern parts of the country, gold prospects were not known in other parts. New kimberlite bodies, identified in the eastern part of Madhya Pradesh, led to the opening up of a new diamond field having great potentiality. Manganese and Chromite ore reserves were augmented in Orissa. In the Harur-Uttangarai belt of Tamil Nadu, molybdenum deposits were discovered. Low silica dolomite was located in Madhya Pradesh and limestone potential areas were identified and explored in Meghalaya and Arunachal Pradesh.

1.4.11 In the Coal Sector an additional reserve of 8,372 million tonnes of coal has been

estimated by GSI in the coalfields of Andhra Pradesh, Jharkhand, M.P., Maharashtra, Orissa and West Bengal. In addition, reserves have been augmented by 1,706 million tonnes due to reassessment. The significant prospects include Sohagpur CF (Madhya Pradesh) having high grade coal with coking propensity, Talcher and Ib River fields (Orissa), Korba CF (M.P.), Birbhum CF (West Bengal) and Auranga CF (Jharkhand). Godavari Valley CF of Andhra Pradesh also added to the reserves substantially. MECL continued detailed exploration for coal in Jharia, Raniganj, East and West Bokaro, Karanpura, Talchir, Hasdo-Arand, Rajmahal, Pench - Kanhan Valley, Wardha valley, Godavari valley coalfields besides North Eastern States and upgraded nearly 15000 mt of coal reserves. In addition it has taken up priority regional exploration in Talchir, North Karanpura (Rohne-Rautpara) and Godavari valley coalfields and identified a reserve of 6500 million tonnes. State Directorates of Mines & Geology of North

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Eastern States also carried out investigations and identified a few coal seams, which are of local significance. DGMs of Bihar, (Ithkori CF), Maharashtra (Nagpur and Chandrapur dist), and Orissa (Talchir CF and IB valley CF) carried out exploration work and estimated about 490 m.t. of various grades of coal.

1.4.12 More than 422 million tonnes of lignite has been assessed by GSI and MECL in

the major lignite belts along east-coast of Tamil Nadu (Lalpettai - Neyveli - Mannargudi areas) and west-coast of Gujarat (area between Rajpardih and Vastan). Other promising areas are in east of Nileswar in Kasargod district of Kerala, Tiruchirapalli of TN, Bikaner in Rajasthan.

1.4.13 The Ninth Plan Period (1997-2002) witnessed thrust for search of energy

minerals, gold, diamond, rare metals, molybdenum and basemetals etc. Preliminary assessment of decorative/dimension stones on regional scale was taken up all over the country and huge resources established. In Bhukia area, Rajasthan, gold resources were established. Resources of PGE ore has been established for the first time in the country from Baula-Nuasahi area of Orissa. Resource of rare metal (cesium ore) was established in Purulia district, West Bengal and molybdenum resources were established from Harur-Uttangarai belt of Tamil Nadu. Resources of iron ore and manganese ore were augmented in Orissa. Besides high value and high tech minerals, exploration for energy and other minerals continued for the augmentation of the resources. GSI and MECL together added 31.61 mt of lead-zinc ores in Rajasthan. South Sindesar ridge/Sindesar Khurd and Latio-ka-khera (E) in Dariba-Bethumni belt and Kayar in Ajmer have been the significant lead-zinc findings in Rajasthan. Singhana-II, Surhari and Kalapahar in Rajasthan, Dhadkidih in Jharkhand and Kallur in Karnataka were the important copper prospects explored during IX Plan period. HZL, HCL, State DGMs of Rajasthan, West Bengal, MP, Karnataka, UP and Jharkhand also carried out base metal exploration. ACC-RIO TINTO Exploration Ltd., BHP Minerals in association with HZL and Phelps Dodge were the private sector players engaged in the base metal exploration.

1.4.14 For the energy sector exploration continued with a thrust for augmentation of coal,

lignite and coal-bed methane resources. GSI established 1015 m.t. of coking and superior quality coal from Sohagpur, Raniganj, Tatapani-Ramkola etc. coalfields, 5088 m.t. of power grade coal in Talcher, Ib river, Auranga, Rajmahal, Mand-Raigarh, Wardha and Godavari Valley Coalfiedls, 111 m.t. of lignite in Gujarat and Tamil Nadu and 14 trillion c. ft. (974 b.c.ft) of Coal Bed Methane prognosticated in deeper parts of Jharia, Bokaro, Raniganj and North Karanpura coalfields of Damodar Valley. MECL established 14,290 m.t. of coal reserves and 25,338 m.t. of lignite reserves during the IX plan period. DGM, Kerala also contributed 1.15 m.t. of lignite reserves.

1.4.15 Economic reforms and liberalisation measures were announced in the mineral

sector to provide opportunities to private sector for participation and involvement in natural resource build up by way of technology transfer and upgradation / sophistication to improve productivity. A total of thirteen mineral commodities were thrown open to private investment. Foreign investment was allowed jointly with Indian partners. The minerals having exportable surplus resources like iron, manganese, chromite, bauxite and deficient noble and strategic minerals, diamond and high tech rare metals and rare earths have evoked their interest and attention.

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The leading multinational mining agencies apart from other Indian Companies showed interest. Most of the private investment in exploration was in the States of Rajasthan, Karnataka, Andhra Pradesh, Madhya Pradesh, Orissa and Chhattishgarh.

1.4.16 In the changing and liberalised scenario, the need for reliable geoscientific data

base with constant refinement was felt and high quality data base has been generated by the national agencies like GSI, MECL, NRSA, NGRI and IBM etc. This data helped investment decisions in mineral exploration/mining in India.

1.4.17 During the Xth Plan (2002-2007) period major thrust was accorded to exploration

for high value minerals like gold, diamond and PGE minerals. Efforts for augmenting resource base for those mineral commodities having key role in sustaining industrial growth also continued. Application of state of the art technology for exploration and integrated multi-disciplinary approach was introduced during this period.

1.4.18 Additions of 12,177 million tonnes of coal, 941 million tonnes of lignite, 8.2 million

tonnes of copper ore, 0.8 million tonnes of lead-zinc ore, 37.42 million tonnes of iron ore, 14.38 million tonnes of manganese ores, 5.70 million tonnes of bauxite, 1883 million tonnes of limestone, 42.49 million tonnes of gold ore and 5.56 billion cubic meters of CBM were made by GSI during the Xth Plan period mostly by way of new discoveries.

1.4.19 The conceptual approach and application of multi-disciplinary data synthesis, has

led to the discovery of several kimberlite/lamproite pipes by GSI during the same period. Among these from four pipes in Andhra Pradesh diamond has been recovered. In Maharashtra diamond was recovered from Wairagarh conglomerate. In the same period NMDC has identified few blocks for PL out of their RP area.

1.4.20 MECL has identified and established 12,077 million tonnes of coal and 5320

million tonnes of lignite adding these to the total energy mineral resources in the country during the Xth Plan period. In addition they have augmented 149 million tonnes of base metal (including bauxite) and 4.60 million tonnes of gold ore reserves to the national mineral inventory.. The State Governments have contributed in the addition of limestone and dolomite resources.

1.4.21 Substantial geoscientific data has been generated by GSI during this period. An

area of 1440 sq.km. has been mapped on a scale 1:50,000; around 41,994 sq.km. by specialized thematic mapping on 1:25,000 scale; a total of 1,30,816 line kilo meters was covered by multi-sensor aerogeophysical survey and 1,13,174 sq.km. covered by geochemical survey.

1.4.22 Some of the programmes planned for the Xth Plan period had to be curtailed by

GSI due to acute shortage of technical man-power. In absence of recruitment and wastage through superannuation the strength of the work force reduced with a consequent reduction in activities.

1.4.23 Modernization efforts in GSI initiated during the IXth Plan proceeded during the

Xth Plan. Attempts have been made to make up the shortfalls in achievement during the IXth Plan period. Orders were placed for helicopter and heliborne

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survey equipments. Similarly the administrative procedures for obtaining clearance for the replacement ocean going vessel have been completed and further procedure for procurement will be completed during the next plan period. MECL and the State departments could not do any modernization due to financial constraints.

1.4.24 The XIth Plan(2007-2012) laid emphasis on intensification of exploration for low-volume high value minerals such as gold, diamond, base metals and PGM.

The other main objectives were Improvement of National Mineral Inventory, Restructuring and modernisation of GSI, Modernisation of IBM and State Directorates, Acceleration of the process of adoption of UNFC system of classification of mineral resources, Development of minerals in NER, Strengthening R&D activities in all aspects of exploration and mining. 1.4.25 Some of the major achievements of the XIth Plan were:

Adoption of the National Mineral Policy 2008

Initiation for replacement of the MMDR Act,1957

Implementation of the recommendations of the HPC report on restructuring of GSI

Repositioning and restructuring of IBM and MECL are in progress.

National Mineral Inventory modified as per UNFC.

IBM has been entrusted with the power of granting Exploration Licence (EL) for offshore areas and tenement registry.

Strengthening of the mineral rich states by suggesting measures for the augmentation of the revenues based on Hoda Committee recommendations.

Initiation of modernization plan of GSI and acquisition of new Ocean Going Research Vessel for GSI.

Intensification in the usage in GSI of IT in general and Geoinformatics in particular through the Portal Phase I and II programme for efficient data storage, analysies and dissemination. The DPR for the Portal Phase III is being finalized.

Improvement in scientific and regulatory capabilities, computerization, HRD and development of SDF in central and state agencies.

1.5.0 PRESENT STATUS 1.5.1. The Geological Survey of India (GSI) has been and continues to be the leading

government department engaged in the assessment and regional exploration of gold, diamond, base metals, iron ore, manganese ore, bauxite limestone and PGE minerals along with coal and other mineral resources. The multidisciplinary data base thus created forms the base for the future development of the minerals and the mineral based industries. The salient features of this basic data can be easily

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accessed from the GSI portal and the detailed reports can be procured at a nominal price. The data dissemination is based on the guidelines of the National Mineral Policy 2008 to give a boost to the private sector investments.

1.5.2. MECL possesses the entire spectrum of mineral exploration facilities under one roof in the country. It carries forward the regional exploration done by GSI by detailed exploration of potential prospects thereby enhancing the level of confidence of the resources. The base line environmental data studies are carried out alongwith the detailed exploration. In addition, the pre-feasibility studies are also done by MECL for some selected promising exploration blocks. Based on the findings of GSI and MECL the Government identifies and allots the blocks for mining and captive mining purposes to private / public sector organizations. Further, the salient features of the exploration reports are uploaded in the MECL website for the benefit of the perspective investors and the detailed exploration reports can be procured at a nominal cost. It is a step forward towards the easy dissemination of the data to facilitate the private entrepreneurs for investment in the mineral sector.

1.5.3. The State Directorates of Geology and Mining of the some of the mineral rich

states are also engaged in the mineral exploration activities in their respective states.

1.5.4. The Indian private sector and some foreign entrepreneurs have been actively

involved in mineral exploration in their respective Leasehold areas. 1.5.5. The private sector players have confined themselves to minerals such as gold,

diamond, base metals and iron ores. The exploration and development of other minerals which are not so valuable have been totally neglected by these players and hence it is left for the government agencies to take up the exploration and the development of these mineral for the overall development of the country.

1.5.6. A new opportunity for reassessment is likely to come up as a result of the

reduction in the threshold values of some minerals such as iron ore, chromite, bauxite, limestone etc. The existing resources have to be revisited to work out the new resource position of these minerals.

1.5.7. The position of India in minerals like barytes, chromite, talc/steatite/pyrophyllite,

iron ore, manganese ore, bauxite and magnesite are quite comfortable. In 2008, India ranked within the first ten of the world in terms of quantum of production for the following minerals–

Barytes (Second) Coal-lignite (Third) Chromite (Second) Iron Ore (Fourth) Bauxite (Sixth) Manganese Ore (Fifth) Kyanite/Sillimanite/Andalusite (Fourth) Talc/Steatite/Pyrophyllite (Second) Magnesite (Tenth)

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From the year 2003 to 2008, India’s position in mica block and splitting production has slipped from 8th position to 15th and that of magnesite from 9th to 10th position. However, in cases of manganese ore and talc/steatite/pyrophyllite production there has been an improvement from 8th to 5th and from 3rd to 2nd positions respectively. In addition, India also ranked fifth in zinc (slab) and steel (crude/liquid), eighth in aluminum metal and tenth is copper (refined) metals production in the world in 2008.

1.5.8 Although the country is more or less self reliant in respect of few minerals, a

significant gap exists in respect of large number of critical minerals and metals for which the country is partly or largely dependent on imports. These deficient and critical minerals and metals require a special attention for their exploration and development both by the private entrepreneurs and the government agencies during the XIIth five year plan in a holistic manner for the development of the mineral sector in public private partnership mode.

1.5.9 Intensification of exploration both regional and detailed needs to be carried out mostly in the identified obvious geological potential (OGP) area with specific emphasis for low volume high value minerals.

1.5.10 Besides the conventional mineral exploration in the known mineralised belts vast

tract of the areas which are not known for mineral occurrences i.e. the Himalayas, Indo-gangetic plains, Deccan traps and deserts require a special approach towards systematic mineral exploration.

1.5.11 The vast coast line upto and beyond Exclusive Economic Zone (EEZ) has by and

large been unexplored for mineral wealth. Systematic and detailed exploration in this field has to be speeded up by the GSI. Services of other exploration agencies and private parties have to be utilized to reap the benefits of national development.

1.6.0 THRUST AREAS 1.6.1 The major thrust areas in the XIIth Five Year Plan will be :

a. GSI to complete geophysical and geochemical mapping expeditiously, with the assistance of outsourcing and service contracts, if necessary so as to develop potential areas for prospecting which can be competitively awarded for further detailed exploration and utilization of proved mineral resources.

b. The Geomorphological and Lineament Mapping (GMM) on 1:50,000 scale by GSI. c. Complete National Geochemical mapping (NGCM) of the Obvious Geological

Potential (OGP) areas by end of 12th Plan and rest of country of 13th Plan. d. Hyper Spectral Mapping (HSM) in OGP areas on 1:50,000 scale by end of 12th

Plan. e. National Aeromagnetic Surveys by the GSI in a comprehensive and systematic

manner for OGP by end of 12th Plan and rest of the country (including off-shore) by end of 13th Plan.

f. Conducting High–risk exploration for deep-seated mineral deposits through modern technology infusion.

g. Provide for independent regulation of concessions and appropriate Legislation on Transferability of the mineral concessions.

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h. Develop and roll out a country wide Mining Tenement Registry and link-up with State Land Records Database for integration with digitized cadastral maps.

i. Prepare and implement a project to enable 1:50,000 scale geological, geophysical, and geochemical maps to be served on internet in GIS platform in line with international practice.

j. Concession framework to be made more investor friendly through new legislations. k. Special attention needed for exploration and search for strategic, scarce and deficit

minerals to reduce imports. l. Create a National Geophysical Data Repository and a National Drill Core

Repository to assist entrepreneurs to take-up exploration. m. State Directorates of Mining and Geology to be developed to create facilities for

concession system, mine plan and closure, sustainable mining practices (SDF) and stakeholder protection and royalty system.

n. Repositioning of MECL in promotional role for deep seated and concealed mineral deposit exploration using HTREL (LAPL) under new MMDR Act.

o. Facilitate capacity development of State Mineral Development Corporations and promote joint ventures in exploration with MECL and central PSUs and private sector.

p. Adoption of Globally acceptable reporting systems such as UNFC and JORC for assessing mineral reserves/resources.

q. Incentivize the private sector to create R&D institutions, create laboratory facilities. r. Develop beneficiation techniques for zero waste mining. s. GSI to complete the procurement of Ocean Going Research Vessel (OGRV); Geo-

technical Vessel (GTV) and Coastal Launch for offshore and coastal geoscience work.

t. Create and enhance capacity of GSI and States for offshore / Coastal geoscience including Coastal geomorphology and beach sand / tidal deposit resources.

Table – 1.1

GROWTH OF MINERAL PRODUCTION IN THE COUNTRY

(1948 -2009)

Mineral/Ore Unit 1948

1958 1968 1978 1988-89 1998-99 1999-00 2000-01 2001-02 2002-03 2003-04 2006-07 2007-08 2008-09

(P)

Coal Th.tonnes 30334 46036 70613 10134

0

194375 292270 299996 313696

327787 341272 361156 430832 457082 492945

Lignite Th.tonnes 73 19 126 3613 12589 23419 21847 24247 24813 26018 27958 31285 33980 32421

Natural Gas m.cu.m -- -- 601 1721 9250 25706 26884 27860 28038 29964 30908 31747 32417 32849

Petroleum

(Crude)

Th.

tonnes

255 440 5853 11271 32040 32722 32011 32426 37032 33044 33373 33988 34118 33506

Bauxite Th.tonnes 23 169 2131 1663 4395 6610 6854 7993 8688 9867 10924 15733 22625 15554

Chromite Th.tonnes 23 64 206 766 926 1418 1696 1972 1549 3069 2905 5296 4873 3981

Copper Ore Th.tonnes 327 111 484 2132 5132 4230 3121 3498 3418 3071 2903 3274 3242 2983

Dolomite Th.tonnes 83 177 1284 2003 2261 2922 2875 3032 3251 3630 4051 5172 5852 4469

Gold Kg 5612 3291 3588 2774 2011 2683 2442 2615 2810 3153 3457 2361 2969 2464

Iron Ore Th.tonnes 2329 9055 27051 39288 49911 72230 73475 80587 86226 99072 122838 187696 213246 215437

Lead Conc Tonnes 1346 3341 3365 16834 40485 62842 62865 54487 52386 59107 73069 107334 125755 134179

Limestone Th.tonnes 4056 10533 21030 31061 65314 113213 127891 127338 130912 155744 153390 196695 193089 203555

Manganese

Ore

Th.tonnes 541 1379 1610 1619 1386 1538 1565 1595 1587 1678 1776 2116 2697 2829

Silver Kg 398 3416 2026 12138 38928 55409 53627 46150 57675 59502 37870 53271 80697 105301

Zinc. Conc Tonnes -- 7391 12839 66026 121993 349934 359924 366095 398837 486162 590276 947387 1035828 1225590

Tin Conc. Kg - - - 570 25137 39391 22812 12979 13887 10630 15576 100835 63218 59776

Source: IBM Year Book, 2009 ( ‘P’ : Projected )

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CHAPTER – II

REVIEW OF PERFORMANCE DURING XI PLAN

2.1.0 : PREAMBLE

Since long India has a consistent history of planning for exploration and exploitation of mineral resources not only to keep pace with ever increasing demand for mineral raw material but also to fulfill the national objective of rapid industrialization. The XI Plan follows, in its broader perspective, more or less the pattern of X plan attributing importance to scientific exploration and exploitation of minerals and for sustained development of the mineral industry. However, during the course of XI Plan, due to:

(i) the introduction of The National Mineral Policy, 2008 (NMP-2008) (For Non-

Fuel And Non-Coal Minerals), Government of India, Ministry of Mines, (ii). the Implementation of Report on the Functioning of the Geological Survey of

India by the High Powered Committee, Government of India, Ministry of Mines, March, 2009, and

(iii) the re-examination of The Mines and Minerals (Development and Regulation)

Act, 1957 (MMDR Act) a paradigm shift has taken place with its concomitant impact of far reaching results in the implementation of the current plan. 2.1.1. The National Mineral Policy, 2008:

The salient features of mineral survey, exploration and prospecting that have been recognized and given due importance in the National Mineral Policy, 2008 are: The exploration and exploitation of minerals to be guided by long term national

goals and perspectives; Regional and detailed exploration to be systematically carried out in geologically

conducive mineral bearing areas of the country using state of the art techniques in a time-bound manner;

Strengthening of GSI, IBM, MECL and the State Directorates of Mining and Geology with manpower, equipment and skill upgradation to the level of state of the art;

The Central Geological Programming Body / Board (CGPB) of GSI to coordinate the regional exploration work amongst various agencies;

Specific attention to be paid in areas having poor resources-cum- reserve base however with geological potential for large resources;

Prioritizing exploration of minerals which are in demand for domestic use or for export after processing;

Development of strategic minerals through systematic investigation of potential resources by government agencies;

Development of the mineral industry with assured availability and proximity of mineral resources to impart a competitive edge to Indian industries;

Recognition of prospecting and mining as independent activities with transferability of concessions;

Encouraging private participation in future as main source of investment in reconnaissance and exploration;

Expending of public funds in inaccessible high risk areas; Adoption of open sky policy of non-exclusivity for reconnaissance and exploration

work so as to complete the exercise for the entire country as early as possible;

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Disaggregated and mineral specific approach to be guiding principle in the strategy of development of any mineral;

Cluster approach of exploitation in case of small deposits; Small scale mining for small and isolated deposits for economic exploitation with

modest capital expenditure and short lead time; The endeavour of the government being to design suitable fiscal measures,

conducive to the promotion of mineral exploration and development within the context of the budget.

To develop capital market structure for targeting risk investment into survey and prospecting;

Induction of foreign technology and participation in exploration as equity investment in joint ventures;

Facilitating accession to “risk funds” from capital markets and venture funds; Development of a proper inventory of resources and reserves; Portraying of resource inventory in accordance with the latest version of UNFC

System; Maintaining of a mining tenement registry and a mineral atlas; To promote research and development in mineral exploration, exploitation and

beneficiation, to establish appropriate educational and training facilities for human resources development to meet the manpower requirements;

Summaries of work done by public agencies to be kept in the form of meta data in the public domain and detailed reports to be made available to interested investors on cost-recovery basis;

Sustainable development framework to commence right from the exploration stage; Sequel to mining, striving for sustainable development, taking care of bio-diversity,

ecological balance, protecting the interests of the indigenous tribal populations, based on international best practices;

2.1.2. Restructuring of GSI as per the recommendations of HPC:

Re-invention of GSI through radical revamping, as per the recommendations of the HPC, commenced during the XI Plan is being continued, salient observations, of which are:-

Revamping of GSI on comparative line with the organizational set-up effectively existing elsewhere in other geoscience organizations of the world.

Laying down of new vision for GSI with enunciation of a new Charter. Identification of 5 key Missions within the Charter as :

(I). Base Line Geo-Science data Generation, (II). Natural Resources Assessment,

A. Mineral Resource Assessment; B. Natural Energy Resources (except Oil & Gas); C. Subsurface Hydrology etc.

(III). Geo-informatics, (IV). Fundamental and Multi-disciplinary Geo-Science and Special

Studies, and (V). Training and Capacity Building.

Establishment of 3 Support Systems for the Missions: (i). S&T Support System, (ii). Administrative Support System and (iii). Policy Support System.

Revamping and re-constitution of CGPB, the Trustee of GSI’s Charter to 12 new Committees as given below:-

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I. Ferrous Minerals II. Precious Metals and Minerals III. Non-ferrous and Strategic Minerals IV. Industrial and Fertilizer Minerals V. Energy Minerals and Resources (Coal, Lignite and Geothermal) VI. Marine Geology & Exploration and Coastal Geoscience VII. Airborne Survey and Remote Sensing VIII. Geology & Mineral Resources of North-Eastern Region IX. Geoscientific Investigations (Geotechnical Investigation, Natural Hazards,

Climate Change, Environmental Geology, Shallow Sub-Surface Geology & Sub-Surface Hydrology)

X. Fundamental and Multi-disciplinary Geosciences XI. Geo-informatics and data management XII. Geoscience for sustainable development

2.1.3. As the quantification of targets and achievements for the ensuing XII Plan are to be mentioned Mission-wise, a brief mention on the functioning of the Missions I & II which pertain to mineral surveys & exploration is given:

Mission-I - Base-Line Geoscience Data Generation : - Systematic geological mapping (ground surveys) to map the general

geology, geological structures and the geological succession (and includes associated studies in stratigraphy, petrology and geochronology)

- Geophysical mapping covering attributes such as gravity, magnetism, electromagnetism, radioactivity, electric resistivity, etc., by airborne, marine surveys and ground surveys.

- Geochemical mapping (ground survey) to identify and even quantify distribution of various elements from stream sediments or other collection methodologies. Such surveys are supplemented with Multispectral and Hyperspectral Surveys conducted by remote sensing to get ‘spectral signatures’ for many major elements and minerals.

- Geomorphological survey (through remote sensing) to map the landform and surface features.

Mission-II A- Mineral Resource Assessment (Non-Fuel and Non-Coal) : Search, location and estimation of India’s mineral resources too are one of the main activities of GSI. In the mineral sector (excluding energy), the tasks before GSI are to: - Delineate new target regions through synthesis of multidisciplinary

Earthscience data in areas for which potential is yet to be established and take up exploration.

- Discover concealed ore bodies in the already delineated target areas of obvious geological potential.

- Take up systematic exploration for minerals having poor resource-cum reserve-base or for lower grade mineral ores in locales of favourable geological potential.

- Re-orient the organizational methodology to undertake collaborative ventures with State level agencies and private entrepreneurs.

In the hydro sector the tasks are to: - Integrate basin-wise geological and geophysical data to locate potential

areas for deep aquifers and study effects of seismic activities on aquifers etc.

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2.1.4. The baseline geoscience data generation carried out by GSI so far has resulted in identification of an area of nearly 5.7 lakhs sq.km of Obvious Geological Potential (OGP) in various States of the country, the details of which are indicated in Table-2.1.

DETAILS OF OBVIOUS GEOLOGICAL POTENTIAL (OGP) IN VARIOUS STATES OF

THE COUNTRY CARRIED OUT BY GSI Table-2.1

Sl.No. State OGP (Km2) 1 Andhra Pradesh 131500 2 Rajasthan 102000 3 Karnataka 80000 4 Chhattisgarh 57250 5 Orissa 47025 6 Madhya Pradesh 31300 7 Maharashtra 28100 8 Gujarat 25100 9 Jharkhand & Bihar 23550 10 Tamil Nadu 17300 11 Uttar Pradesh 9100 12 Kerala 6000 13 West Bengal 5240 14 Meghalaya 2510 15 Goa 1500 16 Haryana 1300 17 Sikkim 1000 18 Assam 940

Total Area 570715

Introduction of a strong and effective management system both administrative and human resources;

Declaration of GSI as an Attached Office of Ministry of Mines; Establishment of IT Infrastructure and connectivity through Mission-III, Geo-

informatics for effective data dissemination of exploration activity through GSI Portal;

Establishment of laboratory network for effective management of geological, geophysical and chemical data generated on exploration activity;

Recommendation for establishing drill core repositories at regional and national level, backed by suitable legislation and with best international practice, for archiving of drill cores generated by the agencies involved in exploration activity.

Recommendation for a continuing process of collecting, cataloguing and displaying fossils, geological specimen, and meteoritic rocks in order to maintain the interest in geoscience for future generations through establishment of parks and museums in various states.

Thrust on international cooperation such as GSI to enter into bilateral arrangements with world geoscience organizations for knowledge acquisition, skill and technology transfer and strategic partnership.

Forging of geoscience partnerships with central institutions, state governments, universities, academic institutions, etc. for various R&D progress in geoscience.

Establishment of registered body of professionals as Indian Geoscience Congress for effective interaction amongst geoscientists’ community.

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2.1.5. Re-examination of the MMDR Act, 1957 :

Following the international best practice adopted by the countries elsewhere in the world, the MMDR Act, 1957 is being re-examined for bringing in drastic changes in the various legislative clauses, especially in the current system of allocation of mineral concessions. Pertinent observations are:

Against the earlier three types of mineral concessions, allocation of four broad categories in the draft MMDR Act :

(i). Non exclusive Reconnaissance Permit (RP), (ii). Prospecting Licence (PL), (iii). Large Area Prospecting Licence (LAPL) proposed to be changed to High Technology Reconnaissance cum Exploration License (HTREL) (to be granted for deep seated deposits for multiple minerals other than bedded deposits of iron ore, bauxite, limestone etc.) (iv). Mining Lease (ML).

Incorporation of the principle of security of tenure under chronological priority (FCFS).

Transferability of the mineral concessions at all stages. Provision for awarding PL in a competitive bid manner. Provision for exploration data acquisition for deep seated/ concealed deposits in

a high risk-high reward situation by junior exploration companies and raising of funds through venture capitals and selling of data acquired.

Provision for baseline data acquisition in a low risk-low reward situation by small firms.

Outsourcing of baseline geoscience data generation by GSI through above two types of modes. 2.2.0 : THRUST AREAS DURING XI FIVE YEAR PLAN 2.2.1. Thrust areas of XI Plan Period, wherein significant importance was paid, include:

Survey and mineral exploration components of X Plan which were initiated to match with the Vision-2020 Statement of the Ministry of Mines are continued during the XI Plan Period. 2.2.2. Taking into consideration the near exhaustion of resources to the proximity of surface, multidisciplinary approach to mineral exploration was adopted during the XI plan period which comprises large scale and detailed geological mapping aided by interpretative analysis of aerogeophysical and remotely sensed data, ground geophysical survey, geochemical prospecting and surface and subsurface exploration through pitting, trenching and drilling. Emphasis has been given for mineral search and assessment for low volume high value minerals such as gold, diamond, platinum group of minerals and efforts towards augmentation of the existing resources in respect of ferrous, non ferrous and industrial minerals of high demand (basemetals, iron ore, limestone for steel industry etc.). 2.2.3. Augmentation of the National Mineral Inventory, particularly for those minerals in which reserves are low such as base metals, nickel, tin, graphite, noble metals, precious stones and rock phosphate. 2.2.4. Thrust has been laid on the development of minerals in the NER with the States of this region playing a major role and the Central Government agencies facilitating their initiatives with specific interventions. Thus a special emphasis has been attributed to

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development of mineral sector in NER, Himalayas, Coastal regions, desert areas, areas covered by vast expanse of Deccan Trap, thick alluvium, etc. 2.2.5. A major part of the exploration activities during the XI Plan period is concentrated in extension/ gap areas within the potential geological domains/ mineral belts for different mineral commodities. Further, efforts are also being made to identify new areas with favorable signatures on the basis of improved geological understanding. 2.2.6. GSI continued Regional surveys and preliminary resource appraisal for minerals in the freehold area within the identified potential geological domain. MECL continued to take up promotional / contractual work in order to upgrade the status of the prospects in the lease hold and freehold areas. IBM took up project studies for evaluation of resources, beneficiation studies and conservation of wide spectrum of rocks and minerals. AMD pursued its objective by exploring and updating resource position of rare metals and rare earth elements through their annual programs. In addition Public Sector undertakings and the private sectors were engaged in mineral exploration in their RP/PL/ML areas. 2.2.7. Mineral reserve / resource of the country is augmented in each plan period by applying state of art technology for exploration and integrated multidisciplinary approach as per the priority of the nation. 2.2.8. Restructuring and modernization of the GSI in the areas of instrumentation for both ground and airborne surveys, and acquisition of state-of-the-art laboratory facilities with high precision capabilities. 2.2.9. Modernization of the IBM and the State directorate for establishment of national registry (cadastral) and a mineral atlas. The database would comprise both physical and resource inventory and include a Tenement Registry with details of Greenfield areas, Brownfield areas and Relinquished areas including areas identified by the GSI as not worth pursuing. The data would be maintained online giving instant information to the prospective investors. 2.2.10. Acceleration of the process of adoption of United Nations Framework Classification (UNFC) system of classification of mineral resources so as to present reserves/resources of minerals on an internationally uniform system and help in attracting more private investment into the sector. 2.2.11. The liberalization of economy which envisaged increased flow of private and foreign capital in the mineral sector continued to prevail during the XI Plan Period. 2.2.12. The national agencies namely GSI, MECL, AMD, NRSA, NGRI, IBM etc., in addition to their engagements in exploration work, have also accorded top priority for creation of multi-thematic geoscientific database for dissemination. This database has helped private investment in mineral sector. Constant refinement of geoscientific database by application of latest information technology is under progress to facilitate quick growth in mineral sector. 2.2.13. GSI has established a comprehensive portal for dissemination of metadata in respect of regional exploration work carried out, so as to expand the scope of investment for further exploration work.

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2.2.14. Intensive baseline data collection and exploration ventures were carried out by state agencies, Public sector undertakings and Private exploration agencies undertook exploration work for commodities like gold, basemetal, PGE, diamond, rare metal, REE, along with exploration for few industrial minerals as well as coal and lignite. Commodities having high potential for exports like iron ore, manganese ore etc. received priority. The resource appraisal of these minerals added to the existing level of inventories in the known mineralized belts. As per the National Mineral Policy, 1993 and 2008 the government agencies continued its exploration activities mainly in freehold areas and spent public funds primarily in areas where private sector investment was not forth coming. 2.3.0. MISSION-I BASELINE GEOSCIENCE DATA GENERATION

TARGET AND ACHIEVEMENTS OF GSI 2.3.1. In physical terms the GSI has been given following targets for baseline

data collection during XIth Plan Period : A. Baseline data collection:

i) Specialised Thematic Mapping - 35,000 sq.km. ii) Geochemical Mapping - 1,80,000 sq.km. iii) Geophysical Mapping - 2,40,000 sq.km. iv) Multi-sensor aerial survey (TOASS)- 96,000 sq.km. v) Heliborne Survey - 46,000 sq.km

(actual quantum of area depends on the time schedule of procurement of equipments.)

The programme of airborne survey for large tracts will continue to be designed for the purpose of identifying potential signatures of mineralized properties. This will be followed by ground surveys to convert the prospects into targets deserving more thorough and intense exploration probing. Ground geophysical surveys in extension of known belts is to continue for correct assessment of their significant geological potential. 2.3.2. Systematic Geological Mapping : Systematic geological mapping is normally carried out to decipher the geology, structure and stratigraphy of an area. Though 98.305% of the country has been completed by way of systematic geological mapping, yet occasionally this component of work is carried out in some gap areas, in Assam and Nagaland. During the XI Plan, though no target has been fixed, yet 1949 sq.kms. has been covered till March, 2011. The projection that has been made upto March, 2012 is 666 sq.kms. which will also be achieved (pl.see Table 2.3). 2.3.3. Specialized Thematic Mapping : Specialized Thematic Mapping (STM) is carried out by GSI to generate new sets of high resolution data to understand the growing concepts and knowledge based in geological sciences which helps in interpreting intriguing geological problems, especially in locating potential mineralized zones. During the current Plan, coverage of 28,009 sq. km. has been achieved till the end of March, 2011 and an additional 8378 sq. km area is anticipated in the last year of the plan period. Thus, an area of 36,387 sq. km is likely to be covered during XI Plan against the target of 35,000 sq km (103.94%). Total coverage of 1,54,559 sq. km has been done under this progamme since inception.

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STM target that was achieved during the X Plan has led to the launching of the following mineral exploration programmes during the XI Plan period:

Exploration for low grade iron ore (at cut-off grade of Fe-45%) in Kendujhar district, Orissa.

Investigation for polymetallic mineralization in Pali district, Rajasthan. Investigation for basemetals in Sikar district, Rajasthan. Investigation for copper and associated precious metals in Alwar district,

Rajasthan. Investigation for copper and associated minerals in Banaskantha district, Gujarat. Investigation for establishing zones of copper and associated mineralization in

Chandrapur district, Maharashtra. Preliminary investigation for Platinum group of elements, nickel and chromium in

Sindhudurg district, Maharashtra. Investigation for tungsten mineralization in Sonbhadra district, Uttar Pradesh. Basemetal investigation in Sikar district, Rajasthan. Preliminary investigation for phosphorite in Pali district, Rajasthan.

Preliminary investigation for nickel, cobalt and platinum group of elements in the Chandrapur district, Maharashtra.

2.3.4. National Geochemical Mapping Programme :

GSI continued the National Geochemical Mapping program of the country initiated in the X Plan to cover entire country on a systematic grid pattern for creating multi elemental database for diverse application and use including mineral exploration. During XI Plan, 176 programmes were taken up covering a total area 87,691.60 sq. km till March, 2011. Coverage of additional 25647.40 sq. km. area is anticipated during the remaining period of the XI Plan. By the end of March, 2011 a total coverage of 2,00,714 sq. km has been achieved under this Programme since its inception.

During the XI Plan the thrust of Geochemical Mapping has been especially in the mineral prognosticated areas. The analytical data received so far are being processed and made use to prepare toposheet-wise elemental contour maps. In addition, statistical data processing is also being carried out. The elemental contour maps together with, the statistical determinations are studied in conjunction with the available geological base maps/data sets under GIS platform.

Interpretation of the geochemical data generated earlier has led to identification of a number of areas for mineral targeting. Mineral investigations that have emanated due to these studies are listed below:

In Kerala, two distinct gold anomalous zones with values ranging between 50 to 668 ppb have been delineated.

Geochemical anomalies have led to formulation of two mineral investigation programmes for gold in Bankura district, West Bengal.

Preliminary exploration for base metals has been taken up in the area between Ri-Bhoi district, Meghalaya on the basis of anomalous values of copper, lead and zinc.

Two new zinc anomaly zones have been picked up for further studies in Rajasthan.

A copper rich zone in parts of Pur-Banera Belt, Rajasthan has been identified by geochemical mapping.

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2.3.5. Geophysical Mapping :

GSI continued the systematic ground gravity-magnetic surveys under the Project Geophysical Mapping initiated during the end of X Plan period on 1:50,000 scale with an average station density of one station per 2.5 sq km. During XI Plan, 49 geophysical mapping items were launched and till 31.03.2011 an area of 82,933.50 sq. km has been covered. An additional area of about 20,930.50 sq. km is expected to be covered during the remaining part of XI Plan. Since initiation of the project, coverage of 1,53,151.50 sq.km has been done till now. 2.3.6. Airborne Geophysical Survey : Airborne geophysical surveys enable faster coverage of large tracts and is particularly useful in covered and inaccessible areas. The aerogeophysical data in corroboration with geological maps of terrain can be used for prognosticating favorable locales for concealed mineral deposits. The Remote Sensing and Aerial Surveys (RSAS) Division of GSI is engaged in airborne geophysical surveys for data acquisition employing magnetic and gamma ray spectrometric techniques. The surveys are followed by data processing, preparation of aerogeophysical maps, interpretation and ground evaluation of delineated anomalies / conductive zones to aid exploration of minerals and groundwater.

Multisensor Airborne Survey/Twin Otter Aerial Survey System (TOASS) :

During the first four years of the XI Plan coverage of over 82,821 sq.km was done in the following areas (Table-2.2) against a target of 96000 sq.km.

Table-2.2 Area of Operation Area covered (sq. km.)

Baihar-Kutru area (Extension of Malanjkhand) 5353 Kanker area, Bastar Craton, Central India 1818 Cannanore-Cape Comorin (Coastal area) 32,625 Kanker-Dhamtari area, Bastar Craton, Central India 6428 Mauranipur-Sarila area 5622 Hosadurg –Vengurla (West Coast area) 30,975

Total : 82,821 sq. km. Coverage of additional 8695 sq km is anticipated, during the last year of the XI

Plan bringing the total to 95 percent of the target envisaged. Ground evaluation of the TOASS generated multisensor aerogeophysical data has been useful in identification of some important mineralized zones during XI Plan period including basemetals. Multisensor Heliborne Geophysical Survey:

Heliborne Survey was planned for an area of ~46,000 sq.km and the actual quantum of work was depended on the time schedule of procurement of equipments. No heliborne survey could be carried out during the first four years of plan period. The heliborne system was procured and the process of installation and integration of geophysical sensors in Dhruv helicopter is under progress. The survey could not be initiated so far due to non completion of integration and test flying work. The proposed targets will be carried forward to the XII Plan. 2.3.7. Baseline data Generation – Achievements in Nut-shell :

The Table-2.3 below gives the achievement in respect of various components of

Baseline data collection activity carried out in GSI till the end of March, 2011:

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Table-2.3 Programme

Target (sq. km.)

Achievement till

March 2011 (sq. km.)

Projection till March

2012 (sq. km.)

Anticipated Total

Achievement in sq. km. (percent)

Specialized Thematic Mapping (1:25,000 scale)

35,000 28,009 8378 36,387 (103.96)

Systematic Geological Mapping (1:50,000)

- 1949 666 2615

Geochemical Mapping (1:50,000 scale)

1,80,000 87,691.60 25,647.40 1,13,339 (62.97)

Geophysical Mapping (1:50,000 scale)

2,40,000 82,933.50 20,930.50 1,03,864 (43.28)

Aerial Survey Multisensor/Aeromagnetic Survey (with Twin Otter)

96000 82,821 8695 91,516 (93)

Marine Survey * Bathymetry (line km.) 33,201 3000 36,201 Magnetic (line km) 36,675 3000 39,675 Systematic coverage within Territorial Water (sq.km.)

10,043 1397 11,440

* dealt separately in Chapter - VII The anticipated shortfall in the achievements during the Plan Period can be

attributed to the shortage of manpower. The XI Plan proposal was formulated on the basis of sanctioned strength of geologists and geophysicists wherein the filed-in strength of officers are far less. Shortfall in the targets of the Airborne Survey was due to the breakdown of navigational system of aircraft during 2010-2011. 2.4.0. MISSION-II – MINERAL RESOURCES ASSESSMENT :

Targets and Achievements of GSI Regional Exploration: vi) Large Scale Mapping 13,000 sq.km. vii) Detailed Mapping 172 sq.km. viii) Ground Geophysical Surveys 600 Line Km. iv) Exploratory Drilling 4,29,000 meters (1,32,000 meters for

non-coal mimerals and the remainder for coal and lignite).

MECL: MECL 10,66,325 meters (4,79,700 meters for non-coal minerals and the remaining for coal and lignite) The above stated plan of action is to be specifically carried out for base metals, gold, diamond, PGE, RM+REE, strategic and ferrous minerals. State Government and others: Only a few states have identified programmes. Similar actions are planned by various state agencies, Public sector undertakings

and others to share the burden with GSI and MECL. 2.4.1. Work components carried out by GSI, Achievements made till March, 2011 and the Projection upto March, 2012 are given (Table-2.4) below:

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Table-2.4 Programme Target Achievement

till March, 2011

Projection till March,

2012

Anticipated Total Achievement (Percent)

Large Scale Mapping (Sq.km.)

13,530.50 6,509.03 1,379.92 7,888.95 (58.30)

Detailed Mapping(Sq.km.)

172 127.17 31.865 159.035 (92.46)

Drilling (Meter) 4,29,000 (including coal

and lignite)

2,46,962.55 64,166.37 3,11,128.92 (72.50)

Shortfalls are due to shortage of manpower, drill machine related problems and in

getting forest clearances. 2.4.2. Commodity-wise Mineral Resources established during the XI Plan period (First

four years) in different Blocks of the States are given in Table-2.5

Table-2.5 : COMMODITY-WISE SIGNIFICANT AUGMENTATIONS OF RESOURCES DURING XI PLAN PERIOD BY GSI

Sl no

Commodity Locality/Block State and District

Resources

Grade

1. Ghoraburhani Orissa, Sundergarh district

19.91mt

55% to 60.6%Fe

2. Pathuripenth-Madhyapur

Orissa, Kendujhar district

0.043 mt

3.

Iron ore (haematite)

NMDC Block, Sandur Schist Belt

Karnataka, Bellary district

8.00 mt

>55% Fe

4. Valayapatti and Rajampalayam

Tamil Nadu, Namakkal District

14.03mt

31 to 37% Fe

5. Kelur Tamil Nadu, Tiruvannamalai district

13.93mt

37.54% to 43.11% Fe

6.

Iron ore (magnetite)

Thattayendertettai-Valasivaramani-Mahadevi area

Tamil Nadu, Namakkal District

10.94mt

7. Manganese Bonai-Keonjhar Orissa, Kendujhar district

10.625mt

20 to 30% Mn

8. Gangas

Block/Jasma-Bhupal Sagar Belt

Rajasthan, Rajsamand district

0.80 mt

0.5% Cu

9. Dhani Basri Rajasthan, Dausa district

0.60 mt

1.18%Cu and 1.53g/t Au

10.

Copper ore

Baniwala ki Dhani Rajasthan, Sikar district

27.15 mt

0.37% Cu

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11. Dokan Rajasthan, Sikar district

53.38 mt

0.38% Cu

12. Dokan North Rajasthan, Sikar district

24.15 mt

0.37% Cu

13. Kundla ki Dhani Rajasthan, Sikar district

4.63 mt

0.37% Cu

14. Thanewasna Maharashtra, Chandrapur district

6.64 mt

1.1% Cu

15. Dubarpeth-Karanji Maharashtra, Chandrapur district

1.34 mt

0.67% Cu

16. Gangutana Haryana, Mahendragarh district

2.12 mt

0.4% Cu

17. Ghagri Rajasthan 2.35 mt 18. Muariya, Betul

Belt Madhya Pradesh, Betul District

0.71 mt

7.60% Zn, 1.73% Pb, 0.75% Cu, 131ppm Cd and 77ppm Ag

19. Parsola Rajasthan, Udaipur district

0.40mt 0.5% Zn

20. Bhuyari Madhya Pradesh, Chhindwara district

1.56mt 2%Zn

21. Dehalwara Madhya Pradesh, Betul district

1.12mt 1.83%

22. Koparpani Madhya Pradesh, Chhindwara district

1.37mt 0.85%Zn

23. Bis-khan-khari Madhya Pradesh, Betul district

1.91mt 1.14%Zn

24. Jangaldehri Madhya Pradesh, Betul district

1.91mt 1.10%Zn

25.

Zinc ore

Ghisi Madhya Pradesh, Betul district

0.25mt 2.78%Zn

26. Ajjanahalli Central Sector

Karnataka, Tumkur district

0.10 mt

1.65g/t Au

27.

Gold

Ajjanahalli East Block (East,West,Main & North Sector)

Karnataka, Tumkur district

3.01 mt

1.70g/t Au

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28. Ajjanahalli Block-C

Karnataka, Tumkur district

0.213524 mt

1.45g/t Au

29. Delwara West, Bhukia Gold Belt

Rajasthan, Banswara district

34.73 mt

1.87g/t Au

30. Delwara Block, Bhukia Gold Belt

Rajasthan, Banswara district

1.30 mt

1.5g/t Au

31. Khankariya Gara, Bhukia Gold Belt

Rajasthan, Banswara district

1.24 mt

0.96g/t Au

32. Dugocha Main and Dugocha North Block

Rajasthan, Udaipur district

0.16 mt

2.07g/t Au

33. Gundelpara Block, Bhukia Gold Belt

Rajasthan, Banswara district

1.932 mt

3.978g/t

34. Bharkundi Rajasthan, Dungarpur district

4.5 mt

0.25g/t

35. Baghmara Chhattisgarh, Raipur district

0.09 mt

0.93g/t

36. Sonadehi Chhattisgarh, Kanker district

2.28 mt

0.699g/t

37. Sonapahari Uttar Pradesh, Sonbhadra district

0.053 mt

3.03g/t Au

38. Sindauri East Jharkhand, Ranchi district

3.10 mt

1.81g/t

39. Parasi Jharkhand, East Singhbhum district

0.87mt

40. Chagapuram, Pebberu Block

Andhra Pradesh, Mahboobnagar district

Kimberlite pipes identified CGK-1 & CGK-2

41. Maldakal and Penchukalpadu, Chagapuram sub block

Andhra Pradesh, Mahboobnagar district

Kimberlite pipes identified CGK-3 & CGK-4

42.

Diamond

Turkandoni Karnataka, Raichur district

Two kimberlite pipes identified

43. Bauxite Kadalia Orissa, Kendujhar district

1.97 mt

48.34%Al2O3, 19.44% Fe2O3, 4.04%

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SiO2, 2.5%TiO2 and 24.54%LOI

44. Platinum Group of Elements

Hanumalapura (Block A & B)

Karnataka, Devnagere district

0.546 mt

0.5ppm to 2.93 ppm Pt+Pd

45. Velampatti Tamil Nadu, Dharmapuri district

2.74 mt 0.102% Mo

46.

Molybdenum

Harur Tamil Nadu, Dharmapuri district

12.68 mt

0.032%Mo

47. Graphite Arasanur Tamil Nadu, Sivaganga district

0.76 mt

13%FC

48. Uchichimedu, Vridhachalam sub basin

Tamil Nadu, Cuddalore district

33.74 mt

Cement grade

49. Lum Syrman Block

Meghalaya, Jaintia Hill district

366.62 mt

Cement grade

50. Nimar Madhya Pradesh, Katni district

1.49 mt

Flux grade(grade-II)

51. Miniyun ki Dhani Rajasthan, Jaisalmer district

336.07mt Cement grade

52.

Limestone

Miniyun ki Dhani Rajasthan, Jaisalmer district

235.28 mt

SMS grade

During XI Plan period (2007-2012), MECL was mostly engaged in detailed

exploration of base metals and gold in Jharkhand and Rajasthan States. Besides, MECL also carried out detailed exploration of silica sand in Assam. The aforesaid detailed exploration programmes were carried out as Promotional schemes of Govt. of India, Ministry of Mines, based on preliminary work done by GSI in these prospects. Data considered was as on 31.03.2011. 2.4.3. Cumulative Resource Augmentation as established by GSI and MECL during the

XI Plan period (first four years) is shown in Table-2.6 given below. Table-2.6

Mineral / Ore GSI MECL Total (million tonnes) Bauxite 1.97 - 1.97 Chromite - 2.03 2.03 Coal 10109.64 11.393 21502.64 Copper Ore 123.16 39.79 162.95 Glass Sand - 320.53 320.53 Graphite 0.76 - 0.76 Gold Ore 53.57 19.21 72.78 Iron Ore 66.85 168.77 235.62 Lead-Zinc 8.30 8.38 16.68

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Lignite 0.70 3413 3413.70 Limestone (Cement Grade)

736.43 1.92 738.35

Limestone (SMS Grade) 235.28 - 235.28 Limestone (Flux Grade) 1.49 - 1.49 Manganese Ore 10.69 - 10.69 + (5.03 MOIL) Platinum Group 0.54 - 0.54 2.5.0. REGIONAL MINERAL SURVEY PROGNOSTICATION BY CENTRAL & STATE

AGENCIES OTHER THAN GSI 2.5.1. Iron Ore :

MECL has augmented 168.77 million tonnes of iron ore (Haematite) resouces with +60% Fe in the following places: In Durg district of Chhattisgarh, MECL has estimated a total of 66.27

million tonnes of Iron ore (Haematite) resources with +60% Fe (Hematite) on behalf of SAIL.

102.50 million tonnes of Iron ore resources(Hematite) with an average +60% Fe content in Orissa, on behalf of M/s. NINL.

NMDC has augmented a total a total measured resource (331) of 242.92 million tonnes in the following areas In Dantewada area in Chhattisgarh measured resource of 229.82 million

tonnes was estimated In Donamalai area in Karnataka 13.10 million tonnes of measured

resource was augmented

State DGMs has augmented the following resources: DGM, Chhatisgarh has augmented resource of 63.99 million tonnes which

includes 15 million tonne of high grade haematite in Rawghat area,Kanker district, 5 million tonne with 60-66% Fe in Bailadila area, Dantewara district and 1.10 million tonnes in Aridongri area, Kanker district.

DGM, Orissa has augmented resource of 213.18 million tonnes which includes 2.182 million tonne with 55.68 to 63.54% Fe in Sundergarh district.

DGM, Karnataka has augmented a total iron ore resource of 14.20 million tonnes with grade ranging from 38% to 52% Fe of which 2 million tonnes of resource is present in southeast of Melanahalli, east of Gangapur village, Chikkanayakanahalli Taluk, Tumkur district, 6.2 million tonnes of haematite/ magnetite iron ore with grade ranges from 38% to 48% Fe in parts of Basavapattana, Hosanagara, Kabbal villages of Chennagiri taluk, Davangere district and 7.8 million tonnes of iron ore with grade ranging from 40 to 50% in Madapura, Haveri district.

DGM, Maharastra has augmented 0.34 million tonnes in Padve-Majgaon area, Sindhudurg district.

DGM Kerala carried out reconnaissance survey in Kozhikod and Mallapuram district covering an area of 97 sq km and identifies number of BMQ bands in Kallanod, Kakkayam and Allam para areas.

DGM Madhya Pradesh carried out investigation in Neemuch/Mandsour district and augmented reconnaissance resource (334) of 1.06 million tonnes of low grade iron ore.

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2.5.2. MANGANESE ORE Resources established by State DGM , Public & Private Sectors:

DGM, Karnataka has augmented a tentative resource of 0.025 million tonnes with grade varying from 20% to 28% MnO2. Public Sector Undertakings and Private Agencies

Manganese Ore India Limited (MOIL) carried out detailed exploration by drilling for manganese ore in Balaghat district of Madhya Pradesh and Bandara & Nagpur districts of Maharashtra and augmented the manganese reserve ore by 5.03 million tonnes. The detailed exploration work in these areas will continue during XII Plan for augmentation of manganese ore reserves.

2.5.3. CHROMITE

MECL has estimated 2.03 million tonnes of Chromite reserves on behalf of M/s. IDCOL

2.5.4. Base Metal

MECL has augmented the resources in the following areas : In Dhobani mine area, Singhbhum (East) district, Jharkhand, a measured

resource of 5.22 million tonnes of copper ore with 1.31% Cu ( 331) has been augmented.

In Devtalai( ph-II) , Bhilawara district, Rajasthan, an indicated resource ( 332) of 2.47 million tonnes with 0.97% Cu has been augmented.

In Dariba Akola area, Rajsammand district, Rajasthan, an indicated resource (332) of 2.63 million tonnes of copper ore with 0.80% Cu has been augmented.

In Dhani Basri, Dausa district, Rajasthan, a measured resource (331) of 5.13 million tonnes of copper ore with 1.17% Cu has been augmented.

In Satkui area, Jhunjhunu district, Rajasthan, an indicated resource( 332) of 3.33 million tonnes copper ore with 1.22% Cu has been augmented.

In Sanganer area, Bhilwara district, Rajasthan, an indicated resource (332) of 17.21 million tonnes of copper ore with 0.32% Cu has been augmented.

In Bajta north, Ajmer district, Rajasthan , an inferred resource (333) of 1.24 million tonnes with 0.70% Cu has been augmented. In Wari area, Chhitorgarh district,Rajasthan an indicated resource ( 332) of 2.56 million tonnes of copper ore with 1.09% Cu has been augmented.

2.5.5. Lead & Zinc

MECL has augmented following resources : In Banskhapa- Piparia area, Betul district, Madhya Pradesh, an indicated

resource (332) of 0.92 million tonne of zinc-copper ore has been augmented. In Central sub block of Rajsammand district, Rajasthan an inferred resource

(332) of 3.84 million tonne of of lead-zinc ore with 1.60% Pb & 3.76% Zn has been augmented.

In Ganeshpura area, Ajmer distict, Rajasthan, an inferred resource (333) of 0.97 million tonnes of Pb-Zn ore with 1.33% Pb and 1.44% Zn has been augmented.

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In Rewara Block, Chittorgarh district, Rajasthan, an indicated resource(332) of 2.65 million tonnes of Pb, Zn & Cu ore with 3.42% Pb, 0.65% Zn and 0.38% Cu has been estimated.

2.5.6. Gold

MECL has augmented the following resources. In Parasi Central( Ph-I & Ph-II) , Ranchi district, Jharkhand, a measured resource

(331) of 7.47 million tonnes of gold ore with 0.98 g/t gold has been augmented. In Bhukia East Block, Banswara district, Rajasthan, an indicated resource (332)

of 11.74 million tonne of gold ore with 2.51g/t gold has been augmented.

State DGM DGM Karnataka has carried out preliminary survey and sampling of quartz /

quartzite (BIF) for gold in the old working areas around Kudurekonda village, Devanagere district

2.5.7. Diamond

NMDC pursued exploration by geological mapping, geophysical mapping, pitting trenching, drilling and bulk sampling in their ML, PL and RP areas in Andhra Pradesh and Madhya Pradesh. The details of which are as follows:

In ML areas of Andhra Pradesh 10.14 sq km of geological mapping, 1.05 l. km of

geophysical survey and 5689.02m of drilling was carried out and measured resources were estimated in the following areas (Table 2.7):

Table: 2.7 Area Measured Resource (331)

million tonnes Grade CPHT

Chigicherla 5.57 1.5 Anumpalli 35.10 0.91 Venkatampalle 5.89 6.15

In PL areas of Andhra Pradesh i.e. Eredikere, Khairevu, Bagnayakanahalli,

Kalyandurg and Pillalpalli, geological mapping of 107.045 sq km, geophysical survey of 189.81 l.km and 1529m of drilling were carried out and studies are in progress to identify kimberlite indicater minerals by EPMA. In Madhya Pradesh 25.08 sq km mapping and 561.32 l.km of geophysical surveys were carried out in PL areas (Baghain & Sarang)

In Tikamgarh area of Madhya Pradesh RP work is in progress State DGMs have carried out work as detailed below: DGM, Orissa has discovered a diamondiferous olivine lamproite body in

Kalmidadar area, Nuapada district.

DGM, Uttar Pradesh has found diamond grains (4 nos) weighing 22.6 to 88 mg in pits from the channels of Baghain River

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Private Agencies De Beers India Private limited carried out investigation in 34018 sq km (24

Reconnaissance Permit area) for identifying kimberlite / lamproite bodies, host rock for diamond, in the States of Andhra Pradesh, Karnataka, Maharashtra, Madhya Pradesh, Chhattisgarh, Uttar Pradesh and Jharkhand and made a total investment in excess of Rs 130 crores. A total of 46 kimberlites / lamproids has been discovered in the States of Karnataka (29), Orissa (9) and Andhra Pradesh (8). Based on the 4 lamproite bodies discovered in Andhra Pradesh De beeres applied for Prospecting licence over an area of 343 sq km (12 PL) and the same were granted. However, the exploration result in these PL areas did not give encouraging results. Rio Tinto 2.5.8. BAUXITE

State DGM

DGM, Chhatisgarh has augmented a resource of 18.00 million tonnes which includes 11.00 million tonnes of metal grade bauxite with 35% to 60% Al2O3. in Kabirdham district.

DGM, Orissa, has augmented a resource of 0.125 million tonnes with Al2O3 content varying from 55.20% to 56.40% in Sundergarh district.

2.5.9. PLATINUM GROUP OF ELEMENTS(PGE)

DGM Uttar Pradesh in Ikona-Dangli area, Lalitpur district, carried out investigation by drilling. In three boreholes (IKBH-1,2,3) PGE zones were intersected with values ranging between 1.63 ppm and 4.27 ppm.

DGM Karnataka has carried out preliminary investigation in the northeastern part of Srirangapatna town of Mandya district (57 D/15).

2.5.10. LIMESTONE/ DOLOMITE

MECL has estimated 1.92 million tonnes of Limestone of reserves of flux grade

on behalf of M/s. SAIL ( Nandini Mine Block of Bhilai Steel Plant). DGM, Chhattisgarh has augmented a total resource of 84.53 million tonnes which

includes 69.21 million tonnes limestone of all grades in Kabirdham district with CaO% varying from 31% to 45.98%.

DGM, Madhya Pradesh has estimated a total indicated resource (332) of 145.27 million tonnes of dolomite in Dewas and Chattarpur districts (124.15 million tonnes in Dewas) and an indicated resource (332) of 70 million tonnes of limestone in Satna district.

DGM, Rajasthan has augmented a resource of 613.5 million tonnes of cement grade and 382 million tonnes of SMS grade which includes 180 million tonnes of SMS grade limestone and 133 million tonnes of cement grade limestone in Sam area, Jaisalmer district.

DGM, Kerala carried out investigation for lime shell deposit in Thanneerkukkam area of Vembanad Lake, Thiruvananthapuram district and estimated a total resource of 0.06 million tonnes.

In Kandamkali area, Kannur district preliminary investigation for locating lime shell deposit over an area of 0.925 sq km was carried out.

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2.5.11. CLAY

DGM, Kerala has augmented resource of 52.37 million tonnes of china clay which includes resource of 24.00 million tonnes of china in Erikkulam area, Kasaragod distict.

2.5.12. SILLIMANITE:

DGM, Maharashtra has augmented a resource of 0.042 million tonnes in Walni-Khatgaon area , Chandrapur district.

2.5.13. DIMENSION STONE

DGM, Nagaland has augmented a resource of 317 millon tonnes comprising sandstone, marble, slate, granite.

DGM, Karnataka has augmented a resource of 4.31 million cubic meters of dimension stone granites and dolerites

2.5.14. GLASS SAND:

MECL has augmented a measured resource(331) of 322.45 million tonnes with 88.42% SiO2, over 1.80 sq. km area in Jiajuri ( Ph-II) , Nagaon district, Assam

2.6.0. RESEARCH AND DEVELOPMENT 2.6.1. Research in Geological Survey of India has mainly been concentrated in the domain of fundamental earth science issues like geodynamics, crustal evolution, ore genesis and ore mineralisation, soft sediment geology, palaeo-climate, palaeo-seismic, coastal dynamics etc. These field based studies complemented with laboratory based research viz., experimental petrology, petrogenetic grids, phase stability, isotope geology, geochemistry, high precision laboratory data and rapid chemical analysis ultimately form the core of research activities. Such Research & Development in GSI supplements mineral exploration activity in assessing quantity as well as quality of the resources arrived. The need for ore beneficiation studies are strongly felt in coordination with departments like IBM. 2.6.2. The prioritized sectors warranting R&D activities in mineral sector as outlined in the XI Plan was to develop concept-oriented exploration and ore deposit modeling coupled with detailed characterization of important geotectonic/metallogenic/ orogenic belts of India, crustal evolution, preparation of Standard Reference Samples for use in National Geochemical Mapping (NGCM), development of spectral library of minerals and rocks in hydrothermally altered zones. Research and development in mineral sector during XI plan period was aimed to address the following aspects. 2.6.3. Re-evaluation of all mineral deposits explored more than a decade ago in view of advancement in ore dressing/beneficiation technique and technological advancement in utilizing low grade ores in metallurgy and value added products. 2.6.4. Conceptual modeling along with geological and tectonic studies using advances in geological knowledge for defining new targets for further exploration. 2.6.5. Orientation of Research and development activity in a way to ensure maximum economic recovery of the associated minerals and valuable metals.

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2.6.6. Acquiring of Data processing software for modeling to be used to mineral prognostication in unknown areas as a broad guide. 2.6.7. Fluid inclusions, isotopic and geochronological studies for better understanding of ore and mineral formation processes. 2.6.8. Integration and concurrent synthesis of various data generated on geology, geochemistry, geophysics, economic considerations and other related information using GIS software to refine the possible targets in unknown areas so as to reduce the risk in investment. 2.6.9. Setting up of National Spatial Data Infrastructure (NSDI) involving Geological Survey of India and other organizations engaged in earth science studies. 2.6.10. Multi-elemental geochemical mapping and PGRS studies in Precambrian terrain in order to search for Dhani Basri type Cu-Au mineralisation. 2.6.11. Studies on concentration of rare metals and REE reported from different parts of the country for their viability including beneficiation of such ores. Evaluation of concentration of these elements also in the bauxite deposits of the country. 2.6.12. R&D studies on controls, distribution and timing of VHMS deposits in the Indian peninsular areas with particular emphasis on South Delhi Fold Belt (SDFB) in Western India and Betul Belt (BB) in Central India in order to define the key geological events that control the distribution and timing of high value VMS deposits and thereby developing new criteria for locating these deposits. 2.6.13. GSI had carried out R&D programmes for development and standardization of methodology for Cl, Br, I, B, Te, and Sn & Ti required for estimation of NGCM samples. R & D work is under progress for the development and standardization of methodology for Cl, Br & I at the Chemical Laboratory, Marine Wing by the Chromatograph instrument. RSAS Laboratory, Bangalore has carried out R & D work for B, Faridabad Laboratory of NRO has developed methodology for Te estimation. SRO Laboratory, Hyderabad has developed methodology for Sn and Ti. 2.7.0. TECHNOLOGY INFUSION : 2.7.1. The GSI has undertaken an extensive programme of modernization during XI plan period on the advice of the Parliamentary Standing Committee on Industries, and as per guidelines laid down by an Expert Panel on Modernization of GSI, constituted by Ministry of Mines. The modernization programme is aimed at refurbishing and upgrading the in house capabilities of GSI with a view to enabling it to meet new challenges and achieve the identified goals in the coming decades. The expert panel has identified a detailed list of state-of-the-art equipment for field survey, ground geophysical survey and marine survey, drilling operations, laboratory studies and development of IT infrastructure and accessories. 2.7.2. During XI plan period, the target of technological infusion in mineral sector of GSI was to strengthen the state of the art equipment in chemical laboratories like ICP-MS, higher version of AAS, ICPAES etc. to match world standard in precision and also to facilitate logical conclusion of mineral exploration within scheduled time

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2.7.3. In addition to this during XI plan period onwards the suggested technology infusion in other disciplines are as follows:

Modernization and augmentation of equipment for ground geophysical survey-multi-channel gamma ray spectrometry, multi frequency EM system etc.

High-end petrological instrument for diamond, strategic and PGE exploration. State of the art drilling machine (reverse circulation, hydraulic etc.) etc

2.7.4. In order to improve the quality of exploration for mineral resources of the country following equipments /instruments were procured or are in the process of procurement as per the plan.

The airborne survey is strengthened by procurement of heliborne multi-sensor airborne survey system comprising on board sensors like magnetic, gravity, time domain electromagnetic (TDEM) and gamma ray spectrometry and hyper spectrometry for which GSI has finalized the process of procurement of equipments.

Ground geophysical survey is also being strengthened by procuring new instrument like Multi electrode resistivity-IP unit, multi-frequency EM profiling unit, transient EM sounding and profiling unit, micro gravimeter and sub audio magnetic unit.

2.7.5. The actual status of machineries/equipments procured by GSI during XI plan period is as given in Table-2.8 below:

Table-2.8 Geological Geophysical Chemical

Equipment l Rig & Accessories

1. Advance Polarising microscope

2. Trinocular Polarising Microscope

3. Magnetic barrier Lab Separator

4. Field Spectrometer 5. Gas

Chromatograph 6. Instrument for

landslide investigation

7. SX-100 EPMA 8. SEM 9. EDX 10. MEQ with sensor 11. Triaxial Test

Machine 12. Grinding ball for

pulverizer

CG-5 Auto Grave Gravimeter

lti Electrode Resistivity resistivity equipments lti parameter Borehole logger.

Integrated geodetic seismological System

cro Core logger

1. ICP-MS – 2 nos. AAS with

GTA&GHA 3.Direct Solid Mercury Analyzer – 3 nos.

1. Rotary Core drilling flush couple RH threaded HX & NX casing

2. HQ,NQ wire line drilling Rod

3. Duplex double acting skid mounted mud pump.

4. Heavy duty diamond core drilling-1000m

5. Hydrocyclone 6. NX,HX casing

Sophisticated machinery/equipments under process of procurement are as detailed below: 1 Laser Ablation Multicollector ICP-MS (LA-MC-ICP-MS)

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2 Deep capacity 2000 mtrs.NQ Wire line System or equivalent Drill Rig – 1 no. 3 Laser Ablation ICPMS 4 Trinocular polarizing Microscope = 25 Nos. 5. Multiparameter Borehole Logger 2.7.6. As regard the Modernisation Programme of GSI, during the first four years of the XI Five Year Plan, GSI has utilised Rs196.22 crore (FY.2007-08 – 40.59 cr; FY2008-09-Rs 40.02 cr; FY 2009-10 Rs.36.81 cr; FY 2010-11- Rs.78.80 cr) under Modernisation & Replacement Scheme, and Rs 50.09 crore (FY.2007-08 –Rs12.40cr; FY 2008-09-Rs12.14 cr; FY 2009-10 Rs 11.87 cr; FY 2010-11- Rs13.68 cr.) for the Information Dissemination Scheme. The total fund utilisation for both the schemes taken together works out to be Rs 246.31crore. 2.8.0. TRAINING OF HUMAN RESOURCES 2.8.1 The Geological survey of India has accorded a Mission status to GSITI with the objective of Training and capacity building for different domains of activities including the mineral sector in tune with the recommendation of High Power Committee (HPC) constituted by Government of India. In order to fulfill the desired objective , GSITI is building up the required capacity to develop into a knowledge sharing institute not only in respect of its own resources, but also of other stakeholders of the geo-scientific sector including Central and State Government institutions, private sector institutions, academic and research institutions, etc. 2.8.2 The National Mineral policy has stressed the need for a comprehensive institutional framework for Training to develop appropriate educational and training facilities of human resource to meet manpower requirement in the mineral sector. 2.8.3 Presently the training needs of GSI and other organisations to some extent are met by Geological survey of India Training Institutes (GSITI). The training Institute provides refresher and capsule courses for inservice geo scientists of GSI and other earth science related organisations/ departments/universities in the country but also to function as a internationally reputed training facility for private sectors and geoscientists from other institutions. 2.8.4 The training needs assessment is a critical activity for training and development function and accordingly Training Needs Assessment (TNA) evaluates critical factors of following nature:

(a) Organisation, its goal and objective (b) Jobs and relative tasks required to be accomplished (c) Competency and skill needed to execute and perform the job. (d) Individuals/groups that are to be trained.

2.8.5 The Regional Training Institutes of GSITI conducts short-term courses for regional geoscientists of GSI. The preparation of the Regional Training Institute Calendar is guided by SGPB inputs taking into consideration the needs of state governments; assessment of the overall country wide training needs coupled with general directions followed by Geological survey of India Training Institute. Each Regional Training Institute is scheduled to conduct at least one course in a year specially catering to the region specific needs of geoscientists of the state governments of the region, so that these organisations too can develop parallel capabilities.

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2.8.6 The Field Training Centers (FTC) of GSITI started conducting Orientation courses for new inductees in the department under GSITI in respect of specialization of that Centre and short term courses for geoscientists of DGM, central organizations and other stake holders in the sector. FTCs are being strengthened in order to provide suitable working facilities including field labs and field mapping equipment and LAN based computer facilities. 2.8.7 The training courses conducted by the RTI & FTC takes care of the needs of the mineral sector for the development of core competence and capacity building. 2.8.8. Under Mission-V (Training and Capacity Building), several courses and training modules on Mission-I (Baseline Geoscience Data Generation) and Mission-II A (Mineral Resources Surveys) were conducted during the XI Plan period to augment the skilled manpower resource (Table-2.9).

PROGRAMMES CONDUCTED BY GSI TRAINING INSTITUTE UNDER MISSION-I AND MISSION-II DURING XI PLAN PERIOD

Table-2.9 Mission-I Mission-II FSP

Proposed

ConductedTotal No. of

Personnel trained

Proposed

Conducted

Total No. of Personnel

trained 2007-08 9 7

2(outside FSP)

9 166*+28** 3 3 2(outside FSP)

5 44*+46**

2008-09 5 4 3(outside FSP)

7 56*+63** 3 3 3 22*+28**

2009-10 22 11 3(outside FSP)

14 196*+31**+ 29***

12 5 5 61*+9**

2010-11 (in

progress)

24 6 2(outside FSP)

8 384*+93** 13 4 5(outside FSP)

9 99*+56**

* GSI, ** Outside GSI, *** Foreign National.

Under Mission-I, the framework of the basic courses that were conducted during the XI Plan period comprises :

Geochemical data handling and preparation of geochemical maps. Application of Remote Sensing and GIS for Mineral Exploration. Airborne Geophysical data interpretation. Refresher course in STM.

The framework of advanced course that was conducted incorporates : Processing of geophysical data and Advanced course in structural geology

Under Mission-II, the basic and advanced courses conducted are as follows:

Field workshop in Iron and Manganese explorations. Advanced course in conceptual ore deposit modeling and mineral exploration. Contact course on mineral exploration with Indian School of Mines and IITs

(DST Sponsored). Advanced course in mineral exploration. Advanced course in determination of gold and PGE using latest state of the

art instrumentation techniques.

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2.9.0. STATUS OF INITIATIVES INTRODUCED DURING XI PLAN PERIOD 2.9.1 National Mineral policy, 2008:

The liberalization of economy in 1992 envisaged increased flow of private and

foreign capital in the mineral sector and National Mineral Policy was annonced in 1993. As the amount of private and foreign investment was not forthcoming as expected, during the middle of X Plan Government constitutred Shri Anwarul Hoda Committee to review the policy of encouraging the flow of private investment and introduction of high end technology for exploration and mining. Based on the recommendations of the committee National Mineral Policy, 2008 has been announced by the Government of India in March, 2008. To give effect to the directions enunciated in the National Mineral Policy, 2008, legislative clauses have been formulated in consultation with State Governments for incorporation in the revised draft MMDR Act, 2011 before being introduced in the Parliament. 2.9.2 Restructuring of GSI: The Ministry had constituted a High Power Committee (HPC) to suggest measures to strengthen the GSI as per the NMP, 2008 and Hoda Committee report. The HPC has submitted its report on 31.3.2009 with a number of recommendations including on issues of training and capacity building. The recommendations are being implemented in a phased manner. HPC has envisioned to make GSI a world class survey organization. To achieve these, HPC has proposed right sizing of the GSI apart from providing technological inputs. Out of 74 major recommendations made by committee, action has been completed on most of the recommendations and rest are at various stages of implementations. 2.9.3 Restructuring of IBM: A committee has been constituted in the Ministry of Mines under the Chairmanship of Joint Secretary (M&R) for review and restructuring of the functions and role of IBM in terms of policy directions given in the National Mineral policy, 2008. the committee has prepared a draft report which has been put up on the website of the ministry for inviting comments of the stakeholders. The IBM restructuring report after series of consultation with stakeholders is being finalized shortly. After this the desired modernization work for the National Regulator in pursuance of the recommendations of the committee report will be taken up. Meanwhile to strengthen the man power in IBM, the Ministry of Mines has been able to persuade the Government to allow the IBM to revive 86 scientific and technical posts, which has been abolished earlier. Separately, the Ministry has also been able to ensure filling up of posts in Statistical Division of IBM. 2.9.4 Repositiong of MECL in line with NMP 2008 initiated by employing a private consultant. The Reposition process involves detailed Corporate, Business and Manpower Plans. 2.9.5 Modernisation of GSI: As part of the effort to meet emerging challenges GSI is constantly up grading its technology both for field as well as laboratory equipment. As a sequel to the HPC recommendations a committee on modernization of GSI was constituted to address the diverse fields of its activities in terms of hi-tech instruments as well as the professional skills of the scientific support system in the organization. The Committee has mainly gone into the aspect of modernization of the laboratories in GSI, which are basically involved in analyses and various determination of mineralogical, physical, chemical and other parameters of the natural substances as well as

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modernisation of the instruments used or required for measurements of vaious physical properties of the earth itself in the field. The Report of the Committee on Modernisation in GSI has listed out number of instruments/equipments as required modern technology infusion in GSI over the next two decades or so (from XI Plan to XV Plan period). The report also comprises a year-wise prioritization of equipment procurement during the XII Plan.

2.9.6 New Ocean Going Research Vessel : As a part of its modernization programme GSI is in the process of acquisition of a new ocean going research vessel [OGRV] for seabed survey and exploration for non-living resources etc., as a replacement of RV “Samudra Manthan” at a cost estimate of Rs.549.50 crores. This tailor made new multi-disciplinary research vessel fitted with state-of-the-art equipments will undertake geological, geophysical and geo-chemical mapping of seabed. The contract, for construction of the OGRV, between M/s Hyundai Heavy Industries Co. Ltd (M/s HHI) and GSI was signed on 4.03.2011 and the first instalment amounting to Rs. 39.74 crore i.e. the 7.5% of the contract amount was made on 16.03.2011. M/s HHI submitted the tentative schedule of project management proposal and corresponding payment schedule as per the contract. 2.9.7 Geoinformatics in GSI : GSI through its programme of GSI Net and Portal is pursuing a varied and multifaceted programme of introducing IT in its technical and administrative functioning. The GSI Portal Phase I and II have been almost completed and Phase III is in DPR stage. This programme has important bearing in dissemination of baseline and exploration data in public domain. 2.9.8 National Inventory as per United Framework Classification (UNFC) System:

The NMP 2008 lays down that a national inventory of mineral resources will be based on a comprehensive and up to date review of exploration data. IBM in coordination with GSI will maintain a database in digitized form comprising both a Resource Inventory and a Tenement Registry in accordance with the latest version of the UNFC system. The tenemnt registry will also give information of both leasehold areas as well as freehold areas in terms of greenfield, brownfield and relinquished areas including areas given up by the GSI and other reconnaissance permit / prospecting licence holders. It is envisaged in the policy that the data would be maintained online giving instant information to prospective investors on what is available for reconnaissance, prospecting and mining. Summaries of work done by the public agencies will be kept in the form of metadata in the public domain and detailed reports will be made available to interested investors on cost recovery basis. 2.9.9. In order to introduce such a system, the Ministry of Mines has started work on a Mining Tenement System, in consultation with the concerned Ministries/Departments of the Central and State Governments. A pilot project for Durg and Bellary districts has been completed and based upon which MTS registry component is being developed by the IBM. The DPR preparation for the project is started by appointment of a consultant. 2.9.10. National Mineral Inventory (NMI) as per UNFC:

The IBM had taken up work in the X Plan to present the NMI in line with the

UNFC systewm to improve the quality of information for assessing the economic viability of deposits. The IBM is updating the NMI as per the UNFC classifications and the updation of NMI as on 1.4.2010 is under process and already the work has been completed for 22 minerals out of 64 minerals. NMI will be completed by March, 2012

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2.10.0. DISSEMINATION OF SURVEY AND EXPLORATION DATA : 2.10.1. The demand for geoinformation is steadily increasing and all geoscientific agencies have to adopt requisite strategic steps to meet the demand. The prime focus of agencies dealing with Earth science data should now be to develop interoperable datasets across board. Various national geoscience organizations viz. Geological Survey of India (GSI), Indian Bureau of Mines (IBM), National Natural Resource Management System (NNRMS), National Remote Sensing Agency (NRSA), National Resource Development Management System (NRDMS), Ministry of Earth Sciences, Ministry of Home Affairs and various State Directorates, etc., are engaged in serving the nation with their own vision, mission and strategies. Concerted effort by all is the need of the hour for making data of each one available to others. This not only would reduce duplicity of data but also open avenues for taking up multi-disciplinary tasks. The best way to achieve this objective is to utilize the currently available open standards developed by National Spatial Data Infrastructure (NSDI), Open Geospatial Consortium (OGC), International Standards Organization (ISO), the World Wide Web Consortium (W3C) and other organizations. 2.10.2. GSI is the main repository of geoscientific data in the country since its inception in 1851. Optimum utilization of these multi-theme data available in the forms of maps, reports and publications, has been a problem. There was thus a strong need for organising and storing the data so that retrieval becomes more efficient and responsive to the specific requirements of the geoscientific communities, mineral industries and planners. Opening up of mineral sector, emphasis on mineral exploration, opportunities for investment in Mineral industry by MNCs and Private sectors have all added to the urgency of customised information packages. Moreover, basic geological data are useful in National Activities like planning for mineral exploration and exploitation, civil engineering projects, natural hazard management, seismotectonics studies and environmental appraisals besides various research projects relevant to earth sciences. 2.10.3. GSI has been proactive in recognizing the strategic role of Information technology in today’s environment and has decided to vigorously implement and modernize the information infrastructure (christened GSI Net & Portal) during XI Plan based on an open, state of the art technology platform. 2.10.4. The vast volume of geo-scientific data gathered over last 160 years called for efficient management by the way of a centralized digital archive, which could be accessed and shared with the broader community over an information highway. GSI took up a project to build an organization-wide network and Enterprise Portal, primarily to cater to its intra-organizational needs along with dissemination of information to public. Information Technology (IT) infrastructure established during XI Plan at GSI consists of :

Local area Network (LAN) in all of its offices located throughout the country Wide Area Network (WAN) built with MPLS IP VPN technology that connects all

of its office LANs A web Portal (www.portal.gsi.gov.in) hosted from the Data Centre at CHQ,

Kolkata Enterprise GIS and other workflow based office automation applications (MIS) Organizational e-mail, IP Telephony and Video-Conferencing facilities

2.10.5. IT infrastructure is utilized to serve the following purposes:

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Activities and projects (Field Season Programme) of GSI Associated geoscientists (CV, specialization, experience etc) Products like Unpublished Project Reports, Publications (Records, memoirs),

Maps (Geological Quadrangular Maps, District Resource Maps etc.) 1:2 M geological map of the country as an interactive web map service) Seismotectonic Map Service on 1:2M scale Contents of popular interest viz. Case studies, Photo gallery, write-up on Indian

geology, Geotourism, Opinion Poll on various issues etc. 2.11.0. CONCLUSION : 2.11.1. Several crucial mid-course initiatives that were taken up by the Ministry of Mines during the Plan period are in the process of rigorous implementation, the fruitful results of which are yet to materialize in the ensuing Plan period. 2.11.2. For intensifying the mineral exploration as envisaged in the plan, restructuring, modernization and capacity building activities have been introduced in the Geological Survey of India, IBM, and MECL. 2.11.3. Similarly, policy initiatives were introduced in the draft MMDR Act, 1957 for streamlining of the allocation of mineral resources and for attracting investments in mineral sector. 2.11.4. There is a need for capacity building in the Central and State agencies with the mineral sectors in terms of manpower, technology and management.

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CHAPTER–III  

REVIEW OF NATIONAL MINERAL INVENTORY (Terms of Reference (ToR) i & ii).

3.1.0 PREAMBLE 3.1.1. Minerals have been in use since the earliest period of human civilization.

However, major jump in mineral consumption came about with the industrial revolution. Growth of Industries was based on minerals and mineral products. With the result, the economy of most industrial countries became mineral dependent. It was during the World War II, that the awareness of mineral resources and the need to inventory them became a reality. In India, activities in this direction were initiated in the year 1968, when the task of preparation of inventory of mineral resources was included in the charter of functions of the Indian Bureau of Mines. Since then inventory of important minerals of India are being prepared and updated at regular intervals. The National Mineral Policy-2008 stressed for the updation of the National Mineral Inventory of the database in digitized form comprising both a Resource Inventory and a Tenement Registry. The resource inventory will be in accordance with the latest version of the UNFC system while the tenement registry will give information of both Leasehold Areas as well as Freehold Areas in terms of green field, brown field and relinquished areas.

3.1.2. The mineral inventory is a comprehensive document covering all aspects of

mineral deposits. The structure of National Mineral Inventory prepared by Indian Bureau of Mines covers the detailed information on various items and deposit-wise mineral inventory. The present structure of the National Mineral Inventory (NMI) covers mineral prospects/deposits/mines in freehold and leasehold areas, their status, infrastructure, geology & exploration, ore characteristics, reserve/resource estimation, details of feasibility, details of mining along with production data, etc. 

3.2.0. HISTORICAL BACKGROUND OF MINERAL INVENTORY 3.2.1 The first National Mineral Inventory (NMI) was released by IBM in 1971 covering

17 important minerals. It was increased to 47 minerals of importance for the core industries like Iron & Steel, Cement, Chemical, Fertilizer, etc. by 1974. The sources of data were the exploration agencies including Geological Survey of India, State Directorates of Mining &Geology and the individual mining/exploration organisations both in the public and private sectors. The data included the information on location of deposits, geological set up, lease status, details of exploration, chemical and physical characteristics of ores/minerals, etc. Similarly, data on reserves of various categories was also collected. Subsequently updation of National Mineral Inventory at 5 years intervals was formalised and National Mineral Inventory as on 1.1.1985 was released in July, 1987 with incorporation of additional features such as adoption of reserves classification as per GSI Bulletin MISC. Publication No. 58 of 1981. The 5 yearly

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National Mineral Inventory updation as on 1.4.90 was taken up and certain problems and gaps were identified. The important issues were assessment of recoverable reserves, lack of end-use grade classification, lack of standard formats for reporting exploration activity, untimely receipt of information and data, lack of information on nature of land, forest or otherwise, etc. The new features of the National Mineral Inventory as on 1.4.90 were the change over from calendar year to financial year basis, inclusion of decorative granite, marble, systematic assessment of recoverable reserves based on due scrutiny of data on recovery factors, inclusion of conditional resources for the first time and adoption of end use classification in respect of 47 minerals. Subsequently five yearly updation of inventory as on 1.4.95 pertaining to 61 minerals was carried out. The updation as on 1.4.2000 covered 64 minerals. GSI was entrusted with the responsibility of national mineral inventory for coal and lignite.

3.2.2. Subsequently, in accordance with the decision taken in Geneva Conference of

United Nation Economic Commission for Europe (UNECE) in November, 1999, where both the Government and the Industry from India represented, process of implementation of the United Nations Framework Classification (UNFC) for minerals, which is universally acceptable and understandable, was started. In May, 2000, Government of India constituted Task Force to formulate field guide lines in quantitative terms as per UNFC for having a uniform interpretation in the country. In August, 2000, Task Force submitted its field guidelines. This was further discussed in a Seminar at Agra in December, 2000. Further consultations with all the Government agencies and industries were held and in February, 2001, a final version of field guidelines was submitted to the Government. In May, 2001, a decision was taken by the Government on the strategy for implementation of UNFC, which were further put for consultations from May, 2001 to January, 2003 for ensuring the workability of the strategy. In the Conference of Central and State Ministers of Mines, held in January, 2003, the final approval was accorded for adoption of UNFC and implementation of strategy.

3.2.3 A two-fold strategy for implementation of UNFC was adopted. As per the first

strategy, the available resources in NMI as on 1.4.2000, prepared by IBM, were manually codified as per UNFC, covering 64 non-coal, solid minerals. The NMI database maintained by IBM was modified in collaboration with BRGM, France by October, 2003 and generation of summary output for resources as on 1.4.2000 was completed by November, 2003. The CMPDI had been given the responsibility to implement the UNFC in the inventory of coal and lignite.

3.2.4. As a part of implementation of the second strategy of adoption of UNFC for future

exploration and resource estimation, IBM had organised extensive training programme on UNFC for the concerned Central and State agencies. Besides, concerned industries and individuals were also covered. GSI and MECL also imparted in-house training to their officers. Amendments in MCDR, 1988, were also made to make statutory for all non-coal major mineral mines to report to IBM their reserves/resource data as per UNFC and also for ML applicants to submit plan accordingly. The amendments were modified by Gazette Notification No.185 dated 17.4.2005.

3.2.5 The last inventory as on 1.4.2005 covering 65 minerals was completed in 2007

fully in accordance with UNFC.

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3.2.6 The mineral inventory is a comprehensive document covering all aspects of

mineral deposits. The structure of National Mineral Inventory prepared by Indian Bureau of Mines covers the detailed information on various items and deposit-wise mineral inventory. The present structure of the National Mineral Inventory (NMI) covers mineral prospects/deposits/mines in freehold and leasehold areas, their status, infrastructure, geology & exploration, ore characteristics, reserve/resource estimation, details of feasibility, details of mining along with production data, etc.

 3.3.0 CLASSIFICATION AND CATEGORISATION OF RESERVES / RESOURCES 3.3.1. Initially classification of reserves/resources was limited to the categories of

Measured, Indicated and Inferred, basically depending on the mode of exploration. Although this was being followed, there was no uniformity in terms used by exploration agencies. To overcome this difficulty and also keeping in view the progressive trend both in technological and economical spheres of the country, the Geological Survey of India in the year 1981 came out with a standard system of classification (GSI Misc. Publication No. 58, June 1981) and recommended classification of mineral resources based on both geological assurance and economic viability of the mineral deposit. The Indian Bureau of Mines, keeping in mind the classification suggested by GSI in general, and the actual data received from various agencies on reserve/resource estimation and exploration in particular, made slight modification in the scheme suggested by GSI and adopted the modified scheme in the National Mineral Inventory from 1985 onwards till the updation as on 1.4.2000.

3.3.2. Depending on the degree of geological assurance and economic feasibility, the

mineral resources were divided into two types, namely, “identified” or “discovered” and “undiscovered” mineral resources. The identified or discovered mineral resources were categorised into proved, probable and possible categories and the undiscovered mineral resources were divided into prospective and prognostic categories.

3.3.3. In January, 2003, the Government of India decided to adopt the United Nations

Framework Classification (UNFC) to Indian mineral sector. United Nations Framework Classification (UNFC) is a system classifying the estimates based on three digit codes representing 3 axes, namely, Geological assessment, Feasibility assessment and Economic viability. The main objective of this classification is to create an instrument that will permit reserve/resources of solid fossil fuels and mineral commodities to be classified on an internationally uniform system based on market economy criteria. The system has been designed to allow incorporation of existing terms into it in order to make them comparable and compatible, thus enhancing international communication. The three-digit code system of the classification directly reflects the procedures used in the practice to investigate and evaluate mineral reserves/resources and accommodates the results of these investigations and evaluations, i.e. the reserves/resource figures quoted in the respective reports and documents.

3.3.4 The three axes of this classification are Economic axis (E), representing codes

(1,2,3) in order of descending economic viability; Feasibility axis (F) with codes (1,2,3) in order of decreasing feasibility and Geological axis (G) having codes

49

(1,2,3,4) in order of decreasing geological certainty. The system uses eight terminologies. Each terminology is represented by three-digit codes (EFG). For example, the highest category will be (111) i.e. economically viable, feasibility study completed and geologically explored in detail whereas lowest category will be represented by (334) i.e. potentially economic, no feasibility done and reconnoitered. As per this system, there are eight standard terms and corresponding ten standard codes.

  

S. No. Terms Codes

1. Reconnaissance Mineral Resources 334

2. Inferred Mineral Resources 333

3. Indicated Mineral Resources 332

4. Measured Mineral Resources 331

5. Pre-feasibility Mineral Resources 221 and 222

6. Feasibility Mineral Resources 211

7. Probable Mineral Reserve 121 and 122

8. Proved Mineral Reserve 111

Guidelines have been formulated, reflecting type and quantum of work required to be carried out according to the nature of deposit so that uniformity is maintained while assigning the codes and terminologies.

 3.4.0. END-USE GRADE CLASSIFICATION OF THE MINERAL RESOURCES 3.4.1 Exploration has multi- disciplinary approach, as it uses to accomplish its goal

applying knowledge tools from geophysics, geochemistry, geo-modeling through various utility software, drilling and exploratory mining. The ultimate aim of this activity is to delineate and establish resource base for the country. Hence, an exploration geologist, engaged in proving mineral endowment, is required to quantify the resources, establish its geological certainty, determine the economic viability for its exploitation based on the available indigenous technology and future trends. The data so generated can only be useful if it speaks where it can find its end use. Thus, it requires a complete understanding of utilisation of minerals for specific industry with particular reference to the emerging technology and production of mineral-based products. It is also desirable to determine not only the principal chemical constituents but also the deleterious and toxic elements which have direct bearing on the utility of a mineral for a given industry and product. Considering all these factors it is necessary to have end use grade classification for minerals.

3.4.2. In the National Mineral Inventory upto 1985, due to non-availability of data on chemical constituents and physical characteristics, only some critical constituents were considered for classifying reserves according to end-use grades. In order to evolve standard guidelines for classification of minerals according to end-use grades, an Expert group was constituted in 1986 by the Ministry of Mines to draw requisite guidelines for field geologists and mining engineers to classify mineral resources according to their industrial application. The report of the Expert Group was published by IBM in December, 1989. This Group had standardised grades

50

of various minerals for different end-use applications for the purpose of reserve estimation. The recommendations and guidance contained therein had formed the basis of resource classifications according to its end-use grade, in the National Mineral inventory as on 1.4.1990, 1.4.1995 and 1.4.2000. More than a decade had passed since these end-use grade classifications were adopted. Changes in specifications due to newer uses of minerals in their physical and chemical forms and in technologies are the inevitable phenomenon. Therefore, it was felt necessary to review afresh these specifications. Three Committees were constituted in 2004 under the Chairmanship of Controller General, Indian Bureau of Mines to consider independently each group of minerals, namely (i) Metallic Minerals (Ferrous Group), (ii) Metallic Minerals (Non-Ferrous Group), and (iii) Non-Metallic Minerals (Industrial Minerals Group). The members in these committees were drawn from IBM, GSI, MECL, HCL, HZL, Bureau of Indian Standards, NALCO, Hindustan Aluminium Company, SAIL, Directorate of Geology and Mining of various states, representatives from FIMI and Cement Manufacturers Association etc. who had examined the specifications, deliberated in details and offered their views to revise the end use specifications suitably. The final report based on the recommendations of these committees was submitted in September, 2004 and the recommendations made therein were adopted in the inventory as on 1.4.2005 and in the current updation as on 1.4.2010.

3.5.0 PRESENT STATUS OF NATIONAL MINERAL INVENTORY (NMI)  3.5.1 Subsequent to the adoption of UNFC in 2003, and codification of NMI data as

on 1.4.2000 in tune with this system ,the updation of NMI as on 1.4.2005 for 64 minerals was completed in March 2007.The National Mineral Inventory as on 1.4.2005 was UNFC compliant.

3.5.2 Further the quinquenial updation of NMI as on 1.4.2010 has been taken from the

Annual Programme 2010-11 and the target for completion of updation as on 1.4.2010 is 31-3-2012. Presently provisional figures as on 1.4.2010 are available for 22 minerals.

 3.5.3. The Table-III-1 gives the mineral-wise details on number of deposits under

freehold, public sector leasehold, private leasehold, partly leasehold and total number of deposits. As such the NMI presently comprises total 17,195 deposits of which 8,824 are in Freehold areas, 653 in public sector leasehold, 7,641 private leasehold and 77 in partly leasehold.

 3.5.4. Summarised account of mineral resources of 64 minerals contained in the NMI

are given in Table-III-2 incorporating the details on Total Resources in Freehold, Total Resources in leasehold including partly leasehold and Total All-India Resources. These 64 minerals have been grouped into 7 groups such as Metallic Minerals – Ferrous Group; Metallic Minerals–Non-Ferrous Group, Precious and Semi-Precious Minerals, Strategic Minerals, Fertilizer Minerals and Non-Metallic Minerals. The detailed account of resources in Reserve Category, Remaining Resource Category and gradewise availability of the mineral resources, their distribution in freehold areas, leasehold areas and the details on exploration activities have been covered in the mineral-wise reviews have been made available on IBM website (ibm.gov.in).

51

3.6.0. QUALITY DATA DISSEMINATION  3.6.1. Mineral inventory plays a crucial role in evolving overall development strategy for

judicious management of country’s mineral resources. The information on mineral resources plays a vital role for identification of areas for exploration, application for mining leases, planning for mineral based industries, formulation of mineral trade policies, development of infrastructure, identification of priority sectors in mineral exploration, etc.

 3.6.2. Through Local Area Network and Wide area Network connecting the various

offices of IBM and the Ministry of Mines, instant data retrieval has been facilitated. District-wise updated reserves/resources of all minerals as on 1.4.2005 and total reserves/resources as on 1.4.2010 of selected minerals are also available on IBM Website.

3.6.3. The mineral inventory has been fully computerised. Three types of standard

output are generated - (i) The district-wise, category-wise, grade-wise and sector-wise resources/reserves of all the minerals; (ii) Deposit-wise summary information showing location, resources/reserves, grades and status of each deposit; (iii) Deposit-wise detailed information showing data on geology, exploration, reserves/resources as per UNFC, grade, chemical analysis, physical characteristics, infrastructure, etc. These reports cover mineral-wise information on all-India as well as state-wise and district-wise parameters, total Resources and Reserves by grades and categories. The leasehold areas have been further classified into private, public, captive and non-captive. Publication on “NMI as on 1.4.2005 at a glance” and a handbook on “National Mineral Inventory as on 1.4.2005” has been brought out by the Indian Bureau of Mines as a ready reference to mineral inventory. Mineral reserves/ resources are also disseminated regularly through “Indian Mineral Year Book” and by posting on IBM web site (ibm.gov.in). Besides, the deposit-wise detailed information output sheets for freehold areas are disseminated to interested public on nominal charges.

 3.6.4. The developments in the information/computer technology and quick data

dissemination may be utilized for the early updation of the National Mineral Inventory may be after two years gap instead of existing five years so as to make the inventory data more helpful and meaningful for the investors.

 3.6.5. The adoption of UNFC scheme for the reserve/resource reporting alone may not

be very useful for the FDI and venture capital flows. Instead other reporting systems such as JORC etc. which are acceptable in some countries may also be introduced in the mineral reserves/resource to produce bankable document.

3.7.0. AVAILABILITY OF MINERAL RESOURCES IN INDIA AND COMPARISON

WITH WORLD RESOURCES  3.7.1. The status of total resources, estimated domestic production during 2011-12 and

life indices of important minerals beyond 1.4.2012 based on estimated current level of production are given in Table-III-4. However, it is to be appreciated that the basic data on individual mineral resources has been collected by different organisations based on different parameters of estimation of resources. In view of this, the status of Total Resources vis-à-vis life of mineral deposits may be

52

viewed irrespective of the techno-economics of the deposits. 3.7.2. The position regarding Total Resources in respect of important minerals in India

is given in Table-III-3 and the percentage share of Indian reserves in the total world reserve base has been given in the same table so as to give a comparative idea of the Indian resources with respect to the world resources.

3.8.0. BALANCE LIFE OF MINERAL INVENTORY 3.8.1. The total resources considered for working out life indices of important minerals

requires a cautious approach. For a better appreciation, the entire group of mineral commodities has been classified based on indigenous availability as “Abundant Minerals”, “Adequate Minerals”, “Deficit Minerals” and “Scarce Minerals”. Considering the present and anticipated production levels, exports, imports, etc., the balance life of present mineral resource which include Proved Reserve, Probable Reserve, Feasibility Resource, Prefeasibility Resource, Measured Resource and Indicated Resource categories have been broadly worked out. The details are given in Tables-III-5, III-6, III-7 and III-8.

3.8.2 The balance life of mineral commodities has been estimated on the basis of the

known resources of a particular mineral and the present trend of its production. However, in future the balance life of minerals may change due to the change in the resource inventory, demand/supply position, technological developments and the change in the production pattern.

 3.9.0 IDENTIFICATION OF THE GAP AREAS 3.9.1 The details of the abundantly, adequately, deficit and scarcely available minerals

as per the National Mineral Inventory are given in Tables-III-5, III-6, III-7 and III-8. The analysis of this data shows that substantial resources of the minerals fall in unknown, unclassified, inferred (333) and reconnaissance (334) categories and the demand for the strategic, scarce and deficit minerals is mostly met through imports. The discussion on the gap areas in exploration has been dealt with in detail in Chapter-V. However, the existing gaps in the exploration of some of the ferrous and non-ferrous group minerals as per National Mineral Inventory are given below:

3.9.2. Ferrous group of minerals

i) Iron ore (Hematite)

Total resources of Iron ore (Hematite) in the country are estimated at about 17,882 million tonnes. Out of this, about 2,573 million tonnes (14%), resources have been placed under unclassified and not known grade in the National Mineral Inventory as on 1.4.2010. The areas having such resources need to be examined for classifying it into usable grade.

  Out of the total resources of Iron ore (Hematite) estimated in the country, about

6,284 million tonnes (35%) resources are placed under inferred (333) & reconnaissance (334) categories of UNFC. These resources are based on limited and preliminary exploration. If the areas having such resources are examined for further detailed exploration, confidence level of the resources endowment in the country may improve.

53

 ii) Manganese Ore

Total resources of Manganese ore in the country are estimated at about 378 million tonnes. About 8.4% (32 million tonnes) have been placed under unclassified and not known grade in the National Mineral Inventory as on 1.4.2005.The areas having such resources needs to be examined for classifying it into end use grade.

Out of the total resources of Manganese ore estimated in the country, about 163 million tonnes (43%) are placed under inferred (333) & reconnaissance (334) categories of UNFC. These resources are based on limited and preliminary exploration. If the areas having such resources are examined for further detailed exploration, the confidence level of the resources in the country endowment may improve . iii) Chromite.

Total resources of Chromite in the country are estimated at about 203 million

tonnes. Out of this, about 43 million tonnes ( 21%) resources have been placed under unclassified & not known grade in the National Mineral Inventory as on 1.4.2010.The areas having such resources need to be examined for classifying it into end use grade.

Out of the total resources of Chromite estimated in the country, about 74 million

tonnes (36%) are placed under inferred (333) & reconnaissance (334) categories of UNFC. These resources are based on limited and preliminary exploration. Further examination of these areas for detailed exploration, may improve the confidence level of the resources position in the country.

 3.9.3. Non-Ferrous group of Minerals

i) Bauxite

Total resources of Bauxite in the country are estimated at about 3,290 million tonnes. Out of this, about 41 million tonnes (1.2%) resources have been placed under unclassified and not known grade in the National Mineral Inventory as on 1.4.2005.The areas having such resources need to be examined for classifying it into end use grade.

Out of the total resources of Bauxite estimated in the country, about 1,086 million

tonnes (about 33%) resources are placed under inferred (333) category of UNFC. These resources are based on limited and preliminary exploration. If the areas having such resources are examined for further detailed exploration, then confidence level of the resources in the country may improve.

 ii) Copper

The total resources of copper ore in the country as on 1.4.2010 are estimated at about 1558 million tonnes with about 12.3 million tonnes of copper metal.

  Of the total resources of copper ore about 741 million tonnes (47%) resources

have been estimated under inferred (333) category. These resources are based on a very limited and preliminary exploration. If these areas are examined for

54

further detailed exploration, the confidence level of resource position of copper ore in the country, may improve.

 iii) Lead & Zinc

The total resources of lead-Zinc ore in the country as on 1.4.2005 are estimated at about 523 million tonnes containing about 7 million tonnes of lead metal, 24 million tonnes of zinc metal.

Of the total resources of lead-zinc ore about 39% has been estimated under

inferred (333)& reconnaissance (334) categories which are based on a very limited and preliminary exploration. If these areas are examined for further detailed exploration, the confidence level of resource endowment in the country, may improve.

 3.9.4 The mineral requirement of the industry in future development of the country may

be kept in mind and a detailed exploration programme may be planned as a mission for the enhancement of the levels of confidence specially of the unclassified, unknown, inferred (333) and reconnaissance (334) category of mineral resources.

3.9.5 Special attention has also to be paid for the exploration and search of strategic,

scarce and deficit mineral to reduce import dependency. 3.10.0. FUTURE DEVELOPMENT AND CONSERVATION 3.10.1 The mineral resources are finite and exhaustible hence the conservation of

mineral resources is essential. Keeping in view the approach in National Mineral Policy 2008, a concept needs to be build up leading to augmentation of reserves/resources base through improvement in mining methods, beneficiation, utilization of low grade ores and rejects and recovery of associated minerals to achieve the national goal of zero waste mining. Accordingly, due emphasis may be given on low volume high value minerals like gold, diamond, base metals, platinum group of minerals and rare earth elements.

3.10.2 In view of the lack of new discoveries of non-bulk surfacial deposits it has

become necessary to have multi-disciplinary approach for locating concealed mineral deposits. In addition to this, emphasis may be given to mine small deposits having low grade with high tonnage adopting a concept of cluster mining. The beneficiation technique needs to be developed at par with the international standard state of the art techniques for extraction for high value and strategic minerals.

3.10.3 Zero waste mining has been recognized as the national goal in the NMP-2008.

The minerals are the valuable resources, therefore their extraction has to be maximized by scientific methods of mining, beneficiation & economic utilization by adopting the existing technology and new technology wherever required. A co-ordinated effort in PPP mode between R & D institutions, the entrepreneurs, mining machinery manufactures and statutory bodies is need of the hour to achieve the zero waste mining.

3.10.4 In view of the upgradation of technologies for utilization of low grade ores for

conservation and optimum utlisation of minerals, threshold values for many of the

55

industrial minerals/ferrous minerals (apatite and rock phosphate, bauxite, baryte, chromite, dolomite, fluorite, graphite, iron ore, limestone, magnesite, manganese ore and wollastonite) were lowered during the XIth Plan period. Lowering of threshold values is a positive concept leading to augmentation of resource base. This will facilitate mineral conservation through improved zero-waste mining, beneficiation and utilization of low grade ore and rejects. Lowering of threshold values will also increase the target areas where exploration needs to be taken up.

3.10.5 In the last few years demand for iron ore has increased mainly in China as well as in India. The need of the hour is to build up a new resource inventory through depth and extension probing in areas of established iron ore occurrences. Most of the hematite iron ore of the country is on the basis of arbitrary cut off grade of 55% Fe. The rationale of the cut off grade is not clear. As the boundary between ore and non ore is economy driven and demand oriented, the necessity of reassessment of iron ore at lower threshold value from existing 55% Fe to 45% Fe is needed to bring new areas of hematite iron ore to augment resources of the country. Lowering of threshold value will increase the resource base of iron ore between 45% and 55% Fe which is currently considered as waste. This is remaining as unutilized and un-assessed comprising both fines and lumps. There is ample scope for utilization of the beneficiated fines. New ore beneficiation techniques have made the use of lower grade ore and there is availability of such type of ore, but quantity of such ore is unknown because of the low grade material was not estimated earlier. The new prospects and areas within existing mines require reassessment through optimization based on economic grade and scheduled for production based on market demand. Such exercise would obviously enhance the resource base.

 3.10.6 Many industries do not opt for low grade ore and concentrate in the creamy

portion of the deposit unless GSI identifies new areas of iron ore with 45% Fe and above, no other agency will venture for assessment of such occurrences. Hence in the freehold areas, GSI through regional exploration programme will identify new areas of iron ore with + 45% Fe. The State Govt will also take up the job for speedy completion. After regional evaluation, wherever needed, MECL will carry out detailed exploration for conversion of resources to reserves. Exploration will be put on the fast track. In leasehold areas the job may rest with the leasee. IBM will monitor and take active role in the leasehold areas for proper inventory of iron ore. Government agencies can be entrusted with the job of detailed exploration keeping in view the conservation aspect.

 3.10.7 To achieve the optimal utilization of iron ore in any deposit the threshold value to

be lowered and grade wise inventory of ores have to be made. Scheduling of deposit is essential through optimization to prevent sub-optimal unscientific mining. Mineral sectoral value addition through latest techniques of beneficiation, calibration blending, sizing, concentration, pelletisation, purification and general sustenance is the need of the hour for sustainable development.

 3.10.8 Other important mineral commodities (chromite, manganese ore, bauxite) for

which threshold values have been lowered have to be explored by regional research (reconnaissance /prospecting). GSI and State Government departments will take up the job in free hold areas. Detailed Exploration as a follow up will be the responsibility of MECL in promising areas.

56

TABLE-III-1

LIST OF MINERALS COVERED IN THE NATIONAL MINERAL INVENTORY SHOWING THE MINERAL-WISE NUMBER OF DEPOSITSAS ON 1.4.2010*/1.4.2005

Sl. No. MINERAL NAME Freehold

Leasehold public

Leasehold private

Partly leasehold Total

1. Andalusite * 10 0 0 0 10 2. Antimony * 4 0 0 0 4 3. Apatite * 21 3 0 0 24 4. Asbestos 122 1 68 0 191 5. Barytes 163 4 100 1 268 6. Bauxite 540 26 268 12 846 7. Borax * 6 0 0 0 6 8. Calcite 113 1 64 0 178 9. Chromite * 68 20 15 0 103

10. Chinaclay 664 15 415 1 1095 11. Cobalt * 6 5 1 0 12 12. Copper 223 14 1 1 239 13. Diatomite * 9 1 0 0 10 14. Diamond 48 3 0 1 52 15. Dunite 9 7 13 1 30 16. Emerald 18 0 3 0 21 17. Felspar 154 15 427 0 596 18. Fireclay 474 21 361 2 858 19. Gold 207 12 0 5 224 20. Iron ore (Haematite) 338 49 524 3 914 21. Iron ore (Magnetite) * 109 2 37 0 148 22. Kyanite 94 7 13 0 114 23. Lead-zinc ore 110 4 5 1 120 24. Magnesite 98 13 26 0 137 25. Manganese ore 265 29 327 1 622 26. Molybdenum * 27 1 0 0 28 27. Nickel ore * 17 1 1 0 19 28. Perlite 2 0 1 0 3 29. Potash * 20 0 0 0 20 30. Platinum group of metals * 27 1 0 0 28 31. Pyrite * 12 2 0 1 15 32. Rock phosphate * 56 12 1 1 70 33. Rock salt * 0 2 0 0 2 34. Ruby * 8 3 0 0 11 35. Sapphire * 4 1 0 0 5 36. Sillimanite 30 9 2 1 42 37. Silver 13 14 7 1 35 * Figures as on 1.4.2010

57

Sl. No. MINERAL NAME Freehold

Leasehold public

Leasehold private

Partly leasehold Total

38. Sulphur * 2 0 0 0 2

39. Tungsten * 38 0 0 0 38

40. Vanadium * 26 1 0 0 27

41. Vermiculite 35 2 11 0 48

42. Wollastonite 6 1 4 1 12

43. Ballclay 16 2 72 - 90

44. Bentonite 46 1 20 8 75

45. Corundum * 80 3 8 - 91

46. Diaspore 12 4 53 - 69

47. Dolomite 258 20 407 - 685

48. Fluorite 17 11 4 1 33

49. Fuller’s Earth 30 1 9 0 40

50. Garnet 56 7 88 0 151

51. Granite Dimension stone

516 53 292 28 889

52. Graphite 191 8 148 1 348

53. Gypsum 440 65 30 0 535

54. Limestone 1605 92 1473 4 3174

55. Marble 54 5 48 0 107

56. Mica 52 1 158 0 211

57. Ochre 101 0 99 0 200

58. Pyrophyllite 24 5 79 0 108

59. Quartz – Silica Sand 607 38 1334 1 1980

60. Quartzite 61 0 97 0 158

61. Talc/Steatite/ Soapstone

334 1 526 0 861

62. Tin ore 24 8 1 0 33

63. Titanium minerals 104 8 0 0 112

64. Zircon * 0 18 0 0 18

* Figures as on 1.4.2010

58

TABLE – III – 2 LIFE INDICES OF IMPORTANT MINERALS

(Unit in 000 tonnes )

Sl. No

Mineral

Total Resources as on 1.4.2005/

1.4. 2010* ( Resources

considered for life index in Parenthesis)

Resources as on 1.4.2012 (Resources

considered for life index after depletion of production

from 2005-06 to 2011-12/& 2010-11 to 2011-12.

Estimated domestic

production during

2011-12

Life index beyond 1.4.2012

1. 2. 3. 4. 5. 6.

1. Asbestos 21736

(11150 ) 21731

(11145) 0.706 Very large

2. Bauxite (i)All grade (ii)Refractory

3289817

(2203705)

NA

3177306

(2091194) -

16073

-

130

-

3. Ballclay 79291 (37930) 74075 (32714) 745 44 4. Barytes 74203 ( 66096) 63370 (55263) 1548 36 5. Bentonite 530573 (277392) - Not estimated -

6. Calcite 22574(18367)

22039(17832) 76 234

7. Chromite * (i) All grade

200047(129414)

191499 (120866)

4274 28

(ii)Refractory

- Not estimated -

8. Copper ore 1394427 (659790) 1372252 (637615)

3168 256

9. Chalk -

- Not estimated -

10. Corundum * 110(18) 109.9(17.9) 0.013 Very large 11. Diaspore 5337 (3127) 5179(2969) 23 132 12. Diatomite * 2885 (634) - Not estimated - 13. Dolomite 7533108 (2059911) 7496063

(2022866) 5292 382

14. Diamond Gem & Industrial 000 carates

4582(3029) 4492 (2939) 13 229

15. Fireclay 704763 (171269) 701285

(167791) 497 338

* Figures as on 1.4.2010

59

Sl. No.

Mineral

Total Resources as on 1.4.2005/

1.4. 2010* (Resources

considered for life index in Parenthesis)

Resources as on 1.4.2012 (Resources

considered for life index after depletion of production

from 2005-06 to 2011-12/& 2010-11 to 2011-12.

Estimated domestic

production during

2011-12

Life index beyond 1.4.2012

1 2 3 4 5 6 16. Felspar 90781 (52531) 87446 (49196) 476 103 17 Fluorspar 20166 (18163) 12675 (18131) 4.6 Very large 18 Fuller’s Earth 256652 (970) - Not estimated - 19 Graphite

(i) All grade (ii) 40% FC

168775 (17778)

167816(16819)

137 122

- Not estimated - 20 Gypsum 1236873 (806829) 1213079 (783035) 3399 230

21. Garnet (all grades except gem)

57647 (31324) 49915 (23592) 1105 21

22. Granite (000cub.m.)

37426001 (4593182)

- Not estimated -

23. Gold ore- Primary Placer

390289(131571) 26121 (2552)

386400(127682)

556

230

24. Iron ore Haematite & Magnetite * Unit-Millione- tonnes

25250 (12844)

23853 (11447) 200 57

25. Kyanite 102613 (7320) 102568 (7275) 6.4 Very large 26. Kaolin 2595661(985057) 2581907 (971303) 1965 494

27. Lead-Zinc ore 522579 (316879)

514218 (308518) 1194 258

28. Limestone 175345000 (56406000)

173930566 ( 54991566 )

202062 272

29. Manganese ore

378569 (215837) 361309 (198577) 2466 80

60

Sl. No.

Mineral

Total Resources as on 1.4.2005/

1.4. 2010* (Resources 

considered for life index in 

Parenthesis)

Resources as on 1.4.2012 (Resources considered for life

index after depletion of production from

2005-06 to 2011-12/2010-11 to 2011-1

Estimated domestic

production during 2011-

12

Life index beyond 1.4.2012

1 2 3 4 5 6 30. Magnesite 337882 (196273) 335962 (194353) 274 708

31. Mica tonnes 393855 (221331) 378763(206239) 2156 96

32. Marble 1792638 (285950) - Not estimated -

33. Ochre 93441 (69242) 86332 (62133) 1016 61 34. Pyrophyllite 33695(25611) 32250 (24166) 206 117 35. Rock Salt* 16026(16009)* 16023(16006) 1.7 Not estimated 36. Potash* 21815060

(18141760) * - Not estimated -

37. Rock-* Phosphate & Apatite * all grade

296287 (113564)

24229(17078)

292750 (110033)

24214(17063)

1767

7

62

Not estimated

38. Silver ore 244633 (167422) 244632(167421) 81 tonnes Not estimated 39. Sillimanite 74340 (54514) 74110 (54284) 33 Very large 40. Silica

Minerals 3238211

(1368571) 3215390 (1345750) 3260 413

41. (i) Sulphur* (ii) Pyrite *

210 (nil) 1674401(147045)

- Not estimated -

42. Steatite 312335(196904) 306641(191210) 813 235

43. Slate NA - Not estimated - 44. Tin ore 86552 (57442) 86551(57441) .076 Not estimated

45. Tungsten ore *

87387 (45450) 87387 (45450) - Not estimated -

46. Vermiculite 2438 (1788) 2364 (1714) 11 162 47. Wollastonite 20242 (16068) 19370 (15196) 125 122 48. Zircon * 3134 (2418) - Not estimated - * Figures as on 1.4.2010

61

TABLE – III-3 ABUNDANTLY AVAILABLE MINERALS (Figures in thousand tonnes in case not indicated exclusively)

Country’s available resources

(Resources considered for life

index in parenthesis)

Production Export Import Mineral

1.4.2005/ 1.4.2010 *

% of world **

2009-10 % of world**

2008-09 2009-10 2008-2009 2009-10

Life at present rate of produc

tion

Remarks

FUELMINERALS

1. Coal 267210$ 13 532062 - 1656 2471 59004 73257 - Production and export increasing

2. Lignite 39073$ 1 34080 - 11 NA ++ NA METALLIC MINERALS 3. Iron Ore # (million tonnes )

25249 ( 7062.6)

4 218.6 9.5 68.9 101.531 0.069 0.897 75 Production and export increasing

4. Bauxite 3289817 (2203705)

2.85 13952 7 1708.4 475.6 45.6 54.3 130 Production decreasing - Metallurgical grade is abundant

5. Titanium Minerals

388388 NA NA - 226.3 465 11.071 NA - Export increasing.

NON METALLIC MINERALS 6. Limestone (million tonnes)

175345 (56406)

NA 229 NA 2.12 2.4 3.6 3.9 272 - Production increasing - Low silica grade being less is imported - Abundant for cement and B.F.grade

7. Dolomite (million tonnes)

7533 (2059.9)

NA 5.18 NA 19 Nil 0.01 0.45 382 - Production decreasing - Import increasing for refractory grade - Abundant for met. grade

8. Barytes 74203 (66096)

8.4 2138.5 38.9 843.8 999.3 1.7 NA 36 Production increasing, export increasing

* Figures as on 1.4.2010($ Reserves figures of Coal & Lignite are in Million tones as on 1.4.2009, as per IMYB2009) (# Hematite -14630 + Magnetite-10619= 24249 million tonnes as on 1.4.2005) ** Based on Mineral Commodities Summary 2010 ++ Negligible

62

Country’s available resources(Resources considered for life

index in parenthesis)

Production

Export

Import Mineral

1.4.2005/ 1.4.2010 *

% of world

2009-10 % of world

2008-09

2009-10

2008-09 2009-10

Life at present rate of

production Remarks

9. Bentonite (million tonnes )

530.57 (277.39)

NA NA NA 567 457 ++ NA - Resources are large

10. Fireclay 704763 (171269)

NA 410 NA 5.6 NA ++ NA 383 Production decreasing

11.Fuller’s Earth (million tonnes )

256.65 (0.97)

NA NA NA NA NA NA NA - Resources are large

12. Kaolin (Chinaclay)

2595661 (985057)

NA 2578.2 8.4 120 NA 62 46.7 494 Production increasing

13. Magnesite 337882 (196273)

0.6 mg

286.3 5.73 12.3 161 51.4 66.1 708 Production increasing

14. Sillimanite 74340 (54514)

NA 31 7 2.013 NA ++ NA Very large Resources are large Production decreasing.

15. Silica sand & Quartz

3238211 (1368571)

NA 2282.7 NA 17 8 10.2 15.4 413 Production decreasing

16. Quartzite 1144957 ( 480815 )

NA 108 NA 185.3 26 ++ NA - Production increasing

17. Garnet (Abrasive.)

57647 (31324)

NA 1565.5 50 252 171.4 NA NA 21 Production increasing

18. Calcite 22574 (18367)

NA 50 NA 9.8 NA 66.2 NA 234 Production decreasing

19. Felspar 90781 (52531)

NA 455.5 2.4 NA 316 0.3 7.3 103 Production decreasing

MINOR MINERALS / ROCKS

20. (i) Marble

1792638 (285950 )

NA NA NA 306.5

275.5

313.7

431 -

Import increasing and export decreasing

(ii) Granite‘000m3

37426001 (4593182)

NA

NA

NA 3959 3827.6

50.8 Tonnes

51.2 Tonnes - - do -

(iii) Slate - NA NA NA 154 125 ++ NA - export decreasing

63

TABLE – III-4 - ADEQUATELY AVAILABLE MINERALS  

(Figures in ‘000 tonnes in case not indicated exclusively) Production Export Import

MINERAL

Country’s Total Resource as on

1.4.2005/1.4.2010 * (Resources

considered for life index in parenthesis)

% of

world **

2009-10 (000 t)

% of world

** 2008-09

2009-10

2008-09

2009-10

Life index at present production

Remarks

METALLIC MINERALS 21. Manganese ore

378569 (215837)

10.37 2439 7.17 205 289 852.2 798 80 -

22. Chromite

200047* (129414)

12.57 3413 17 1899 689 94.4 95.8 28 -

NON-METALLIC MINERALS 23. Ball Clay 79291

(37930)

NA

898

NA

232

NA

122

NA

44

Production decreasing

24. Mica 393.855 (221.331)

NA 1.21 67 191 94 2.3 1.7 96 Production of crude mica decreasing.

25. Gypsum 1236873 (806829)

NA 3422 1.71 209 100 891 1548.7 230 Export decreasing and Production decreasing

26. Graphite 168775 (17778)

7.32 109 12.38 2 NA 7.3 12.7 122 Production decreasing

64

Production Export Import

MINERAL

Country’s Total Resource as on 1.4.2005/1.4.2010 * (Resources considered for

life index in parenthesis)

% of world

**

2009-10(000t)

% of world**

2008-09

2009-10

2008-09 2009-10

Life index at present producti

on

Remarks

27. Steatite 312335 (196904)

NA 835 9 99.5 87.8 5.2 N.A. 235 Production and export decreasing.

28. Wollastonite 20242 (16068)

NA 132 NA 21.4 12.8 0.2 N.A. 122 Increasing production and exports decreasing

29. Ochre 93441 (69242)

NA 1023 NA 0.65 1.08 1.35 1.14 61 Production fluctuating

30. Vermiculite 2438 (1788)

NA 13 0.0023 1.12 N.A. 0.3 N.A. 162 Production increasing

31. Pyrophyllite 33695 (25611)

NA 242 9 N.A. N.A. N.A. N.A. 117 Production decreasing

32. Salt Rock 16026

(16009 )* NA

02 6 1001.

5 1545 32 N.A. Very

large Production decreasing

* Reserves Figures as on 1.4.2010 ** Based on Mineral Commodities Summary 2010

65

TABLE – III-5

DEFICIT MINERALS (Figures in ‘000 tonnes in case not indicated exclusively)

Production Export (tonnes) Import (Tonnes)

MINERAL

Country’s Total Resource as on 1.4.2005/1.4.2010* (Resources considered for

life index in parenthesis)

% of world

**

2009-10 (000 t)

% of world**

2008-09

2009-10

2008-09

2009-10

Life index at present producti

on

Remarks

METALLIC MINERALS 33. Copper ore

1394427 (659790)

2.11 metal

content

3228

20

26.6

40.4 2264.7

2187.4

256

Production fluctuating. Export increasing.

34. Lead-Zinc ore 522579 (316879) 3.3 Pb 5.0 Zn

7102 - 169 44 78.2 (Zn)

59.9 (Zn)

258 -

35. Pyrite 1674401 (147045)

NA NA NA NA NA NA NA - -

NON-METALLIC MINERALS

36. Apatite 24229 (17078)* NA

05 NA NA NA NA NA

Very large Production decreasing.

37. Rock- Phosphate

296284* (113567 )

1.9 1546.7 NA 5.4 NA 5009.6 5683 62 Production decreasing.

2 Asbestos

21736 (11150)

NA 0.233

0.01 0.9 NA 346.6 331.4

Very large

Production fluctuating.

3 Fluorite

20165 (18163)

8.7 14

0.27 0.2 NA 153.7 147.1

Very large

Production increasing.

40. Kyanite 102613 (7320) NA

6 1.36 0.2 NA 0.2

NA Very large Production increasing.

66

TABLE – III-6 SCARCE MINERALS (Production figures in thousand tonnes in case not indicated exclusively)

 

Country’s Total Resource as on

1.4.2005/1.4.2010* (Resources considered

for life index in parenthesis)

Production Export Import Mineral

1.4.2005 1.4.2010*

% of world**

2009-10 % of world **

2008-09

2009-10 2008-09

2009-10

Life at present rate of producer

Remarks

METALLIC MINERALS

41. Gold Ore (primary) Metal primary(t)

390289 (131571)

490.8(85.12)

NA

0.001

518 -

NA -

NA -

NA -

0.77 -

NA -

230 -

Mostly imported Production decreasing

42. Silver ore Metal

244633(167422)

10.2 ( 6.05)

NA

0.0026

138 -

NA -

NA -

NA -

5.7 -

NA -

Very large Mostly imported Production increasing..

43. PGM (t) 16.2 * ++ NA NA 36 (t) NA 54 NA Not-

Estimated Imports only

44. Antimony Ore Metal

10.58 *

0.17 *

NA

++

NA

NA

NA

NA

0.47

NA

Not-

Estimated

Domestic demand met by import of metal, alloys and conc.

45. Molybdenum ore (000 tonnes) MoS2(000t)

19287 *

12.6

NA

NA

NA NA 30 NA 26 NA NA Domestic demand met by import of metal, alloys and conc.

67

Country’s Total Resource as on

1.4.2005/1.4.2010* (Resources

considered for life index in

parenthesis)

Production Export Import

Life at present rate of

product- ion Mineral

1.4.2005 1.4.2010*

% of world **

2009-10 % of world **

2008-09

2009-10 2008-09 2009-10

Remarks

46 Nickel Ore 188710 * NA NA NA NA NA 0.3 0.09 Not- Estimated

Domestic demand met by import of metal, alloys and conc.

47 Tin Ore

86552 (57442)

NA ++ ++ ++ NA 0.98 NA Not- Estimated

Domestic demand met by import of metal, alloys and conc.

48 Tungsten Ore Metal

87387 *

142*

NA

NA NA 15.9 NA 0.02 0.08 Not- Estimated

Domestic demand met by import of metal, alloys and conc.

49. Vanadium Ore Metal

24719*

65

0.5 -

Nil -

- -

- -

- -

0.4 -

0.6

Not- Estimated

Production of vanadium sludge reported.

50. Cobalt Ore 44910 NA Nil - 0.5 NA 7.8 9.5 Not- Estimated

Domestic demand met by imports of metals, alloys and concentrates.

NON METALLIC MINERALS

51. Diamond (000 Carats)

4582 (3029)

0.79 16.810 0.23 57960 66091 143464 130101 229 Mostly imported Production increasing..

52. Potash

21815000*

NA Nil NA NA NA NA NA Not- Estimated

Mostly import

53. Native sulphur 210 * NA NA NA 171 125 1286 1534 Not- Estimated

Only import

54. Borax 74.2 * NA NA NA 1.5 NA 98.5 78 Not- Estimated

Only import.Domestic production is Nil

* Reserves Figures as on 1.4.2010 ** Based on Mineral Commodities Summary 2010 ++ Negligible

68

CHAPTER – IV

ASSESSMENT AND STRATEGY FOR SPEEDY EXPLOITATON OF THE PROVEN AND VIABLE MINERAL DEPOSITS [ToR (iii)]

4.1.0 PREAMBLE

4.1.1 The extent of utilization of mineral resources is a measure of growth and

prosperity of a nation. Exploration activities during the last six decades have resulted in identification of large resources of iron ore, bauxite, chromite and manganese ore along with several medium to small deposits of other mineral commodities. These resources have not yet been exploited to their fullest extent and the mineral potential of the country remains untapped for want of capital and appropriate technology.

4.1.2 The exploration and exploitation efforts taken by Government agencies besides private organizations during XI Plan have contributed to substantial augmentation in the National Mineral Inventory both in terms of number of minerals explored and produced and in quantitative reserves. Still our country lacks production of many minerals and continues to be net importer of minerals resulting in substantial trade deficit. As such efforts are required to narrow down, not only the trade deficit but also to give boost to exports of minerals for the valuable foreign exchange.

4.1.3 Per capita consumption of mineral resource is one of the lowest in spite of remarkable progress made in other fields since independence. Today the country is comfortably placed in respect of resource position and exploitability of many mineral commodities which have paved the way for phenomenal development of core sectors like steel, thermal power, cement, aluminium, basemetals, ferro-alloys, fertilizer, chemical etc. However, deficiency exists in many other important commodities making us import-dependent for those to a significant extent.

4.1.4 Life indices of many Mineral Commodities cause anxiety and warrant revisit to and

re-examination of Mineral Belts and Deposits’ occurrences. Depending upon the resource availability, the occurrence of mineral commodities have been categorized into (i) abundant, (ii) adequate, (iii) deficit and (iv) scarce (Table – IV-1).

4.1.5. In response to conducive geological milieu, mineral deposits occur in distinct

clusters / zonation distributed over prominent geographical loci of the country constituting contiguous areas (Fig 4.1). Table-IV-2 brings out in detail the cluster / zonation, mineral belts occurring within the zone, OGP area in sq.km for the categories of mineral commodities – abundant, adequate, deficit and scarce.

69

Figure 4.1 OBVIOUS GEOLOGICAL MINERAL POTENTIAL (OGP) AREAS CONTAINING ALL

THE MINERAL BELTS OF INDIA

4.1.6 ‘Obvious Geological Mineral Potential’ (OGP) of area around 0.57 million sq. km

has been divided into the following five major mineral belts 1. N.E. Peninsular Belt/ Chota Nagpur and Orissa Plateau (Jharkhand, West

Bengal and Orissa) 2. Central Belt (Chhattisgarh, A.P., M.P. & Maharashtra) 3. Southern Belt (Karnataka Plateau and Tamil Nadu) 4. S.W. Belt (Karnataka and Goa) 5. N.W. Belt / Aravalli Belt (Rajasthan and Gujarat)

From the perspective of the proposed MMDR Act, government agencies may concentrate on these identified zones.

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4.2.0. ASSESSMENT OF RESOURCES AND RESERVES OF MINERAL COMMODITIES

4.2.1. India produces as many as 87 minerals, which include 4 fuel, 10 metallic, 47 non-

metallic, 3 atomic and 23 minor minerals (including building and other materials). The Indian mining industry is characterized by a large number of small operational mines. The number of mines which reported mineral production (excluding minor minerals, petroleum (crude), natural gas and atomic minerals) in India was 2628 in 2010-11. Out of 2628 reporting mines, 377 were located in Gujarat followed by Andhra Pradesh (372), Jharkhand (288), Madhya Pradesh (251), Rajasthan (215), Karnataka (211), Orissa (159), Tamil Nadu (156), Maharashtra (142), Chhattisgarh (135) and West Bengal (111). These 11 states together accounted for 91.96% of the total number of mines in the country in 2010-11.

4.2.2. For resources and reserves of deposits that have been projected as per Indian

System, IBM has suggested a method of conversion to UNFC Code for effective integration into National Mineral Inventory Database. The conversion is as follows:

Status of

estimation of resource

Category of resource as per Indian System

UNFC Code

Remark

Freehold Deposit i. Grade of reserve classified:

Proved in situ reserve Probable in situ reserve Possible in situ reserve

222 221 333

Equivalent of pre-feasibility study leading to classification of economic grade

ii. Grade of reserve unclassified:

Proved in situ reserve Probable in situ reserve Possible in situ reserve

331 332 333

iii. Conditional resource with grade classified

Proved in situ reserve Probable in situ reserve Possible in situ reserve

331 332 333

iv. Conditional resource with grade unclassified

Proved in situ reserve Probable in situ reserve Possible in situ reserve

331 332 334

Similarly, UNFC Codification for the resources and reserves has been suggested for leasehold areas as well as for temporarily closed mines. 4.3.0. STRATEGY FOR SPEEDY EXPLOITATION OF PROVEN DEPOSITS : 4.3.1. During XI Plan period, GSI & MECL have brought out significant augmentation in

certain categories of mineral deposits. Table-Iv-3(a) & IV-3(b) depict the localities / blocks wherein resources were proved, states & districts in which they occur, resources estimated and the strategy suggested.

71

4.3.2. In order to effect speedy exploration of proven deposits the State Mineral

Development Corporations need to be facilitated towards their capacity development and promote joint ventures in exploration with MECL and Central PSUs and the Private Sector State Govt. will work-out the funding mechanism analysed disused as suggested in Chapter – VII

4.3.3. In addition to above, strategy for speedy exploration of proven deposits has also

been spelt out herein for certain category of mineral commodities: Iron Ore:

In certain areas, several small, isolated but workable deposits occur in close proximity and profitable exploitation of these individual deposits is not possible unless it is carried out through cluster mining by a technically and financially sound individual or a joint Group. Economic exploitation of the following isolated deposits where feasibility study has already been carried out can be done through cluster mining with conditions of proper environmental management and systematic development of the resources:

i. Bellary-Hospet Sector, Karnataka: a good number of small deposits lie in close proximity. ii. Chandrapur, Bhandara and Gadchiroli districts of Maharashtra: has 14 isolated deposits.

There are areas of iron ore, which are not available for exploitation as these deposits fall under Forest cover or National Park region and also owing to sensitive environmental issues requiring necessary clearance from Government. Problems of Forest clearance and environmental issues have to be addressed properly to increase iron ore production.

Manganese:

From Bonai-Kendujhar Belt, Kendujhar district of Orissa GSI has estimated

resources for manganese in a number of blocks namely Lasarda (Bolani) block, Lasarda and Pacheri blocks, Lasarda North Extension block, Kendudihi- Parulipada block, Pacheri South block, Bolani Block,, Lasarda North Extension (Bolani) block, Damurda (north) block. These resources need detailed exploration and feasibility studies to get ready to be mined. In view of occurrence of large proportion of low grade manganese ore in eastern India, most effective measures are to be undertaken for beneficiation to improve manganese grade for marketing. Bauxite:

During the XI Plan period DGM, Chhattisgarh has estimated a resources of

metal grade bauxite in Pathrai-Sarbhanja area in Mainpat Plateau, Surguja district, 55 lakh tonnes of bauxite in Bandhtola area, Kabirdham district and 110 lakh tonnes from Kawardha and Pandaria Tehsils, Kabirdham district. Mysore Mineral

72

Ltd. has estimated about 1.49 million tonne bauxite from Paduvare-Byndoor, Bagalkote district, Karnataka. NALCO and BALCO have categorized bauxite reserves in Panchpatmali, Koraput district, Orissa and Bodai-Daldali mine and Mainpat mine in Chhattisgarh.

The current bauxite production (5.4 million tonnes) utilizes only a small part

of the total resources available and there is ample opportunity of further increase in production. India is currently exporting about 5.4 lakh tonnes of alumina annually. Gold:

During the XI Plan period on promotional scheme of Govt. of India, MECL has carried out detailed exploration in the areas where GSI had carried out regional exploration in Bhukia East block, Rajasthan and Parasi Central block, Jharkhand and placed the deposits in 331 category of UNFC.

In Aravalli Fold Belt in Bhukia area, Banswara district, Rajasthan a resource

of 87.10 million tonnes gold ore has been estimated by GSI with average grade of 1.91 g/t. These deposits deserve further detailed exploration and feasibility studies. Most of these deposits are ideally suited for small-scale mining operation as they occur in clusters. Exploration coupled with mining is an attractive proposition as most of these deposits have been explored only up to shallow depths and there are indications of further continuity of the ore bodies to deeper levels. Opencast mining of small-sized deposits, improved milling process, higher recoveries by improved leaching/processing methods, and extraction of gold from huge tailing dumps of Kolar offer good potential.

The deposits like Chigargunta, Bisanattam and Ramagiri in Andhra Pradesh

which were previously mined and subsequently closed can be considered for reopening because of the increase in gold prices. Copper:

Under Singhbhum Copper Belt, the Turamdih cluster of deposits consisting

of five prospects viz. Turamdih, Dhadkidih, Nandup, Byanbil and Ramchandrapahar extending over a strike length of 5 km hold potential for cluster mining through open cast method after detailed exploration by MECL. The Chapri-Sideswar deposits of central part of SCB deserve attention for exploitation as Chapri block with a combination of wide ore zone and high tonnage hold potential for open cast mining while Sideswar having narrow zone with rich copper ore bodies can be thought for underground mining in near future. The Khetri Copper belt has significant copper deposits at Khetri, Kolihan, Chandmari, Banwas, Singhana, etc. Two mines, viz., Khetri and Kolihan mines of HCL are producing copper ore at present.

The Khetri Mine Area and North Khetri Copper Belt require deeper level

probing. The South Khetri Copper Belt is relatively less explored. From Satkui-Dhanota upto Raghunathgarh, the area is spotted with a number of old workings.

73

Among the blocks Bhagal-Akola, Sanganel-Siwaha, Alwar-Jaipur, Devtalai, and Baniwali ki Dhani, which require immediate attention for detailed exploration some have been taken up by MECL during the XI plan period. Resources of North-Eastern Region:

For strategic exploitation of the resources available in North-Eastern

Region, following mineral based industries are suggested:

Assam Granite polishing industry at Bura Mayang, Kamrup district based on the

granite deposit of Bura Mayang. Ceramic industry at Bokajan, Karbi-Anglong district /Golaghat based on

the clay deposits of upper Deopani. Mini cement plant at Lanka, Nagaon district based on limestone deposit

at new Umrangshu, N.C.Hills. Glass industry at Nagaon based on the glass sand deposits of Jiyajuri.

Meghalaya A resource of 6371.5 million tonnes of limestone (chemical, SMS &

cement grade) has been estimated over an area of 558 sq. km in Litang valley, Jaintia hills district, Meghalaya in ten blocks.

This deposit alone can produce 4500 million tonnes of cement. A cement plant of 1000 tpd capacity can run for more than 1000 years.

This region has ample scope for setting up of export oriented cement plants with the available coal, bauxite and power potential in Meghalaya and adjoining areas and gypsum imported from eastern Bhutan.

Export oriented cement plant at Dawki/ Shella, East Khasi hills based on limestone deposits of Mawmluh-Mawsmai.

Cement plant at Sutunga based on limestone deposits of Litang valley, Jaintia hills.

Paper grade lime plant at Lumshnong, Jaintia hills. Ceramic whiteware plant at Mulieh, Jaintia hills based on kaolin deposit

of Mulieh. Calcium carbide plant at Ichamati/shella, East Khasi hills based on

limestone deposits nearby. Mizoram

Decorative slabs/tiles plant at Turial, Aizawl dist based on shell limestone deposits in the vicinity.

Nagaland Enhancing production of Wazeho cement plant with expansion of Satuja

limestone quarry. Cement plant at Langpotrop, Tuensang district. Decorative stone (marble) plant at Satuja, Phek district. Hydrated lime plant at Longpotrop, Tuensang district. Integrated plant for calcium carbide, hydrated lime and bleaching

powder at Dimapur. Lime-burnt clay Puzzolona plant near Dimapur. Dolomite mining in Rupa for SMS grade.

74

Arunachal pradesh Ferrosilicon plant based on quartzite in Kalaktang, West Kameng

district. 246.75 million tonnes of dolomite in Arunachal Pradesh - suitable for

refractory and cement industries. Available Talc, marble resources can be utilized for decorative purposes. Graphite resources available in Sung Valley can be utilized locally.

Sikkim The Polymetallic deposit (Cu+Pb+Zn+Co) of Bhotang Mine (mining

operation closed) of Rangpo requires deep probing and further studies for reopening the same.

Exploitation of Dikchu copper-lead-zinc deposit of East district Sikkim requires feasibility and economic viability studies.

4.4.0 MEASURES SUGGESTED FRO MINIMIZING ECOLOGICAL DEGRADATION AND MAINTAINING ENVIRONMENT OF CONSERVATION DUE TO EXCESSIVE MINING ACTIVITIES:

4.4.1 Extraction of mineral reserves has always resulted in varying degrees of environmental resource degradation and social impacts, including displacement, all across the globe. The Indian mining sector has been facing severe criticism on several issues relating to its performance vis-à-vis sustainable development.

4.4.2 The Extraction of mineral reserves resulted in varying degree of environmental degradation and social impact like forest cover, biodiversity, water pollution, air pollution, etc. and mine wastes, including displacement. In mineral industry generally two types of wastes are generated. One is the solid waste generated during mine development, which includes overburden, side-burden, inter-burden, sub-grade mineral (mineral percentage below the threshold value) and the mineral rejects with negligible percentage of mineral mixed with waste. The other one is the process waste, which is generated from the ore beneficiation in the form of tailings and slurries. Thus, generation of waste material whether in large or small quantities as a result of mining activity is inevitable.

4.4.3 It is observed that 2000 million tonnes of waste is likely to be generated every year

by producing 1000 million tonnes of mineral. Since for every tonne production of ore, minimum essential waste and sub-grade will also be produced following the increment in GDP it is imperative to understand the gravity of the situation and to formulate a methodology for achieving the target of zero waste mining and gradual reduction in waste generation in the most sensitive area needs to be identified. Considering the share of production of important minerals in the national scenario, the most sensitive area will be the minerals which contribute a lions share in the overall scenario, i.e., the coal sector followed by iron ore, limestone, chromite, manganese ore, bauxite and other minerals.

4.4.4 The foremost impact of open cast mining and quarrying is the land degradation.

The degradation is due to excavations, pits, mine roads, dumping of waste in the

75

soil, and effect on landscape. The advent of sophisticated mining machines has led to an increase in the number of open cast mines and quarries. This has resulted in noise pollution at different sites of mining operations.

4.4.5 Mining activities impact in three important areas on the environment:

The environmental impact on exploration; The environmental impact over the life of a mine including mine closure and

financial assurances for mine site rehabilitation; Maintaining rehabilitation measures where mining activity has ceased. The environmental impact mitigation approach should be:-

Sustained development of mineral wealth with minimum environmental degradation.

Prevention of long term environmental side effects by adopting “mitigation measures" so that remedies do not become unmanageable and expensive in the long run.

The utilization of the mineral resources of the country, within a sustainable development framework leading to responsible environmental management, is essential.

4.4.6 Mitigation measures could be achieved by proper environmental management in

the operative mines and quarries and impact assessment programmes in the case of new mineral projects. Because of the complex nature of mining operations, like underground and above ground, and on-and-offshore, controlling authorities. They will have to be specialist in environmental management as well as mineral extraction. Government will have to ensure that the costs of environmental impacts of the mining industry are not passed over to the community.

4.4.7 The regulations related to mine closure should be periodically revisited to ensure the provisions therein, including the financial surety for rehabilitation of the environment to the maximum feasible level and support for workers and communities who were dependent on the mining activity for sustenance.

4.4.8 Environmental degradation can be minimized by following the suggestions given

below: • Air pollution from mining waste can be limited by following best practices adopted

internationally. These include, excavation from a new pit to start only after the first is exhausted, so that excavation from second pit can refill the first;

• Separating out and managing the top soil to retain its fertility • Following safety measures regarding height and slope of overburden dumps • Drainage system to handle run off after rains • Mines closure must be mandatory for all minerals, including coal. The closure plan

need to pay attention to the rehabilitation of the workers and communities who were dependent on the mining activity for sustenance

• Financial surety that is currently provided for, needs to be increased substantially. In other words, the regulations related to mine closure also need redrafting.

76

4.5.0. RECOMMENDATIONS AND SUGGESTED ROAD MAP

4.5.1 To keep pace with the demand from the basic industries in the manufacturing

sector the markets for minerals have been growing both in terms of diversity and magnitude. To meet the anticipated GDP growth, a rapid development of the mining sector is the need of the hour and the approach will be speedy exploitation of the already proven and viable mineral deposits. Therefore, it is imperative to achieve the best use of available mineral resources through exhaustive mining for total exploitation of the resources and at the same time improving the beneficiation techniques for substantial utilization of low grade ores in order to reduce the wastage percentage and environmental degradation.

4.5.2 The resources proven in respect of iron ore, bauxite, chromite and manganese ore and several medium to small deposits of other mineral commodities remain either unutilized or exploited to their fullest extent. Lack of capital inflow and advance technology, are the main reasons behind the unutilization or under-utilization of the mineral resources.

4.5.3 The strategy to accelerate the exploitation of mineral resources or to increase

production of metals should include the followings:

To identify, assess and exploit discovered mineral deposits, particularly of deficit and scarce category.

To exploit the resources of marginal grades and tonnage by introducing modern technology and adequate fund flow.

To speedily increase of the reserve base of iron ore through re-assessing the proven deposits with changed threshold value.

To increase domestic production of manganese, viable alternatives to be worked out for exploitation of small scale deposits.

To bring large investment for exploitation of copper, lead and zinc to maximize the extraction of mineral resources. This can be done through technological upgradation for exhaustive mining, bringing in advance beneficiation techniques to bring down the cut off grade of mining, and use of unutilized already generated waste at the mine/pit heads. This will ensure utilization of the entire run of mines and zero wastage mining as envisaged in the NMP, 2008.

To make efforts to establish industries based on mineral near to the proven deposit wherever feasible, for speedy exploitation

To intensify R & D activity for exploiting the marginal grade ores, rejects and recovery of associated minerals through advance scientific mining, ore dressing and beneficiation technologies

To facilitate cluster mining of small deposits, grant lease to the clusters as a single deposit for effective implementation of mining plan, closure and SDF.

To strengthen the information delivery system for providing instant information to prospective investors on viability of proven deposits with likely increase in production through technological upgradation in mining and beneficiation.

77

To ease tax laws wherever possible and by enabling the forest clearance process

State Governments to immediately develop the capability of State Minerals Development Corporations for analyzing the generated data after exploration / prospecting and offering suitable prospects for competitive award. This is since the State mining departments convert the resources into reserves by undertaking feasibility and economic viability studies of the discovered mineral deposits through joint ventures with MECL and Central PSUs and Private Sector.

To give incentive for using the equipment and machinery thereby improving the efficiency of mines

To undertake mitigation measures by adopting proper environmental management in the operative mines and quarries and impact assessment programmes.

Encourage State Governments to prepare Action Plans for their State Directorates so as to enable them to take-up large scale mapping promotional exploration through State Mineral Development and promote joint ventures with MECL and Central PSUs and Private Sector including development of Mining Plan, closure and SDF.

78

TABLE – I V-1

LIFE INDICES OF IMPORTANT MINERAL COMMODITIES

(Unit in 000 tonnes ) Sl. No

Mineral Total Resources as on 1.4.2005/ 1.4.

2010* ( Resources

considered for life index in

Parenthesis)

Resources as on 1.4.2012 (Resources

considered for life index after depletion of

production from 2005-06 to 2011-12/& 2010-11 to 2011-12

Estimated domestic

production during

2011-12

Life index beyond

1.4.2012

1. 2. 3. 4. 5. 6. 1. Asbestos 21736 (11150 ) 21731 (11145) 0.706 Very large 2. Bauxite

(i)All grade (ii)Refractory

3289817 (2203705) NA

3177306 (2091194) -

16073 -

130 -

3. Ballclay 79291 (37930) 74075 (32714) 745 44 4. Barytes 74203 ( 66096) 63370 (55263) 1548 36 5. Bentonite 530573 (277392) - Not estimated -

6. Calcite 22574(18367)

22039(17832) 76 234

7. Chromite * (i) All grade

200047(129414)

191499 (120866)

4274 28

(ii)Refractory

- Not estimated -

8. Copper ore 1394427 (659790) 1372252(637615)

3168 201

9. Chalk - - Not estimated - 10. Corundum * 110(18) 109.9(17.9) 0.013 Very large 11. Diaspore 5337 (3127) 5179(2969) 23 132 12. Diatomite * 2885 (634) - Not estimated - 13. Dolomite 7533108 (2059911) 7496063

(2022866) 5292 382

14. Diamond Gem & Industrial 000 carats

4582(3029) 4492 (2939) 13 229

15. Fireclay 704763 (171269) 701285

(167791) 497 338

16. Felspar 90781 (52531) 87446 (49196) 476 103

79

17 Fluorspar 20166 (18163) 12675 (18131) 4.6 Very large 18 Fuller’s Earth 256652 (970) - Not estimated - 19 Graphite

(i) All grade 168775 (17778)

167816 (16819)

137

122

(ii) 40% FC - Not estimated - 20 Gypsum 1236873 (806829) 1213079

(783035) 3399 230

21. Garnet (all grades except gem)

57647 (31324) 49915 (23592) 1105 21

22. Granite (000cub.m.)

37426001 (4593182)

- Not estimated -

23. Gold ore- Primary Placer

390289(131571) 26121 (2552)

386400 (127682) 556 230

24. Iron ore Haematite & Magnetite * Unit-Millione- tonnes

25250 (12844)

23853 (11447)

200

57

25. Kyanite 102613 (7320) 102568 (7275) 6.4 Very large 26. Kaolin 2595661(985057) 2581907

(971303) 1965 494

27. Lead-Zinc ore 522579 (316879) 514218 (308518) 1194 258 28. Limestone 175345000

(56406000) 173930566 ( 54991566)

202062 272

29. Manganese ore

378569 (215837) 361309 (198577) 2466 80

30. Magnesite 337882 (196273) 335962 (194353) 274 708 31. Mica tonnes 393855 (221331) 378763(206239) 2156 96 32. Marble 1792638 (285950) - Not estimated -

33. Ochre 93441 (69242) 86332 (62133) 1016 61 34. Pyrophyllite 33695(25611) 32250 (24166) 206 117

35. Rock Salt* 16026(16009)* 16023(16006) 1.7 Not estimated

36. Potash* 21815060 (18141760) *

- Not estimated -

37. Rock-* Phosphate & Apatite * all grade

296287 (113564) 24229(17078)

292750 (110033) 24214(17063)

1767 7

62 Not estimated

38. Silver ore 244633 (167422) 244632(167421) 81 tonnes Not estimated

39. Sillimanite 74340 (54514) 74110 (54284) 33 Very large 40. Silica Minerals 3238211 (1368571) 3215390

(1345750) 3260 413

80

41. (i) Sulphur* (ii) Pyrite *

210 (nil) 1674401(147045)

- Not estimated -

42. Steatite 312335(196904) 306641(191210) 813 235 43. Slate NA - Not estimated -

44. Tin ore 86552 (57442) 86551(57441) .076 Not estimated

* Figures as on 1.4.2010

Table – IV-2

MINERAL DEPOSITS ZONATION

ZONATION I. North-Western Zone

Mineral Belt State OGP Area (in Sq.km.)

Commodity Category

Rajasthan 25000 Gold Scarce Rajasthan 25650 Basemetal Deficit Gujarat 5000 Gold Scarce Gujarat 18000 Basemetal Deficit

i. Aravalli Fold Belt

Gujarat 1000 Bauxite AbundantRajasthan 9000 Basemetal Deficit ii. North-Delhi Fold Belt Haryana 1000 Basemetal Deficit

iii. Mangalwar Province, Sand Mata Complex, Jahazpur Belt

Rajasthan 32000 Basemetal Deficit

Rajasthan 1700 Basemetal Deficit iv.South-Delhi Fold Belt Gujarat 300 Basemetal Deficit

iv. Hindoli Group Rajasthan 17000 Basemetal Deficit II. North-Eastern Zone i. Gorumahisani and Badam Pahar Belt

Orissa 940 Gold Scarce

Jharkhand 11180 Gold Scarce Orissa 7740 Gold Scarce

ii. Singbhum Fold Belt

West Bengal 2580 Gold Scarce Jharkhand 11180 Basemetal Deficit Orissa 4800 Basemetal Deficit

iii. Singhbhum and Sargipalli Belt

West Bengal 2580 Basemetal Deficit iv. Barganda – Parasia Jharkhand 720 Basemetal Deficit v. Daling Group of Rocks West Bengal 750 Basemetal Deficit Sikkim 1000 Basemetal Deficit vi. Bonai-Noamundi Jharkhand 600 Manganese Adequate

81

Province Orissa 400 Manganese AdequateOrissa 410 Manganese AdequateOrissa 24000 Scarce Andhra Pradesh 7500

Diamond & Precious Stones

Scarce

vii. Eastern Ghat Province

Andhra Pradesh 500 Manganese Adequateviii. Gangpur Province Orissa 300 Manganese Adequateix. Baula-Nausahi Belt Orissa 400 Chromite Adequatex. Roro-Jojohatu Belt Jharkhand 430 Chromite Adequatexi. Sukinda Belt Orissa 1000 Chromite Adequatexii. Gorumahisani Orissa 300 Iron ore Abundant

Orissa 700 Iron ore Abundantxiii. Bonai-Noamundi Province Jharkhand 300 Iron ore Abundantxiv. Baula-Nausahi Belt Orissa 400 PGE Scarce xv. Roro-Jojohatu Belt Jharkhand 430 PGE Scarce xvi. Sukinda Belt Orissa 1000 PGE Scarce xvii. Ranchi Plateau Jharkhand 250 Bauxite Abundant III. Central Zone i. Sakoli Fold Belt Maharashtra 5500 Gold Scarce ii. Kotri-Volcanic Belt Chhattisgarh 1600 Gold Scarce iii. Sonakhan Belt Chhattisgarh 1200 Gold Scarce

Madhya Pradesh

4450 Gold Scarce iv. Mahakoshal

Uttar Pradesh 4500 Gold Scarce v. Malanjkhand Madhya

Pradesh 1200 Gold Scarce

vi. Betul Belt Madhya Pradesh

2000 Basemetal Deficit

Chhattisgarh 45000 Scarce vii. Tokapal-Mainpur-Raigarh-Sakri Belt Orissa 5000 Scarce viii.Wairagarh Belt Maharashtra 18000

Diamond & Precious Stones Scarce

ix. Sausar Belt Maharashtra 430 Manganese Adequatex. Bailadila Chhattisgarh 75 Iron Ore Abundantxi. Rowghat Chhattisgarh 60 Iron Ore Abundantxii. Dalli-Rajhara Chhattisgarh 70 Iron Ore Abundantxiii. Redy area Maharashtra 100 Iron Ore Abundantxiv. Meta-ultramafic Complex

Maharashtra & Madhya Pradesh

1000 PGE Scarce

xv. Pendrapat, Phutkapahar & Mainpat Bauxite Belt

Chhattisgarh 350 Bauxite Abundant

xvi. Amarkantak Madhya Pradesh

350 Bauxite Abundant

xvii. Sindhudurg Maharashtra 750 Bauxite Abundant

82

Andhra Pradesh 33000 Basemetal Deficit xviii. Cuddapah Province Andhra Pradesh 38500 Scarce Andhra Pradesh 68000 Scarce xix. Kimberlite &

Lamproite Domain Karnataka 45000

Diamond & Precious Stones Scarce

IV. South-Western Zone i. Basemetal deposits Karnataka 2000 Basemetal Deficit

Karnataka 400 Manganese Adequateii. Sandur Zone Karnataka 250 Iron Ore Abundant

iii. Iron Manganese Belt Goa 600 Manganese Adequate250 Iron Ore Abundantiv. Shimoga Belt Karnataka 400 Manganese Adequate360 Iron Ore Abundantv. Chitradurga Belt Karnataka 560 Manganese Adequate

vi. Bababudan Karnataka 270 Iron Ore Abundantvii. Iron Ore Deposits Goa 800 Iron Ore Abundantviii. Magnetite Deposits Andhra Pradesh 300 Iron Ore Abundantix. Western Dharwar Craton

Karnataka 4000 PGE Scarce

x. Layered Complex Deposits

Andhra Pradesh 300 PGE Scarce

Konkan 750 Bauxite AbundantKarnataka 300 Bauxite Abundant

xi. Bauxite Belt

Goa 300 Bauxite AbundantV. Southern Zone

Karnataka 35000 Gold Scarce Andhra Pradesh 3000 Gold Scarce Tamil Nadu 500 Gold Scarce

i. Green Stone province

Goa 1500 Gold Scarce Tamil Nadu 500 Gold Scarce ii. Waiyanad, Nilumbur,

Attapadi Kerala 1000 Gold Scarce iii. Sattamangalam Belt Tamil Nadu 1500 Basemetal Deficit

Tamil Nadu 3000 Scarce iv. Granulite Terrain Kerala 2000

Diamond & Precious Stones

Scarce

v. Nuggehalli Schist Belt Karnataka 360 Chromite Adequatevi. Sittampundi-Kondapalli Tamil Nadu 500 Chromite Adequatevii. Iron Ore Belt Tamil Nadu 1800 Iron Ore Abundantviii. Sittampundi-Karungalpatti

Tamil Nadu 1000 PGE Scarce

83

Table – IV-3(a) SIGNIFICANT AUGMENTATION OF RESOURCES DURING XI PLAN PERIOD BY GSI

AND STRATEGY FOR SPEEDY EXPLOITATION

Sl. No

Commodity & Categorization of Mineral with

respect to availability

Locality/Block State and District

Resources

Strategy to be adopted for exploitation

1. Ghoraburhani Orissa, Sundergarh district

19.91mt with 55% to 60.6% Fe

Resources of this deposit are categorized under (332) and needs feasibility and economic viability studies for exploitation.

2. Pathuripenth-Madhyapur

Orissa, Kendujhar district

0.043 mt Resources of this deposit are categorized under (334) and needs detailed exploration, feasibility and economic viability studies for exploitation.

3.

Iron ore (haematite) -Abundant

NMDC Block, Sandur Schist Belt

Karnataka, Bellary district

8.00 mt with >55% Fe

Resources of this deposit are categorized under (333) and needs detailed exploration, feasibility and economic viability studies for exploitation.

4. Valayapatti and Rajampalayam

Tamil Nadu, Namakkal District

14.03mt with 31 to 37% Fe

5. Kelur Tamil Nadu, Tiruvannamalai district

13.93mt with 37.54% to 43.11% Fe

6.

Iron ore (magnetite) -Abundant

Thattayendertettai-Valasivaramani-Mahadevi area

Tamil Nadu, Namakkal District

10.94mt

Resources of these deposits are categorized under (333) and needs detailed exploration, feasibility and economic viability studies for exploitation.

84

7. Manganese - Adequate

Bonai-Keonjhar Orissa, Kendujhar district

10.625mt with 20 to 30% Mn

These resources categorized under (333) and need detailed exploration and feasibility studies to get ready to be mined. In view of occurrence of large proportion of low grade manganese ore in eastern India, most effective measures are to be undertaken for beneficiation to improve manganese grade.

8. Gangas Block/Jasma-Bhupal Sagar Belt

Rajasthan, Rajsamand district

0.80 mt with 0.5% Cu

The resources

categorized under

(333) It needs

detailed exploration,

feasibility studies

and economic

viability studies for

exploiting.

9. Dhani Basri Rajasthan, Dausa district

0.60 mt with 1.18%Cu and 1.53g/t Au

It needs detailed exploration, feasibility studies and economic viability studies for exploitation.

10. Baniwala ki Dhani

Rajasthan, Sikar district

27.15 mt with 0.37% Cu

11. Dokan Rajasthan, Sikar district

53.38 mt with 0.38% Cu

12.

Copper ore - Deficit

Dokan North Rajasthan, Sikar district

24.15 mt with 0.37% Cu

The resources of copper ore can be classified as `Low grade-high tonnage’ deposits and occur in one belt. These

85

13. Kundla ki Dhani Rajasthan, Sikar district

4.63 mt with 0.37% Cu

are categorized under (333) and need detailed

exploration,

feasibility studies

and economic

viability studies for

exploiting together.

14. Thanewasna Maharashtra, Chandrapur district

6.64 mt with 1.1% Cu

15. Dubarpeth-Karanji

Maharashtra, Chandrapur district

1.34 mt with 0.67% Cu

These deposits (333) need detailed exploration, feasibility studies and economic viability studies for exploiting in a small scale by erecting concentration plants nearer to the group of deposits to make it economical.

16. Gangutana Haryana, Mahendragarh district

2.12 mt with 0.4% Cu

This deposit (333) needs detailed exploration, feasibility studies and economic viability studies for exploiting.

17. Ghagri Rajasthan 2.35 mt This deposit (333) needs detailed exploration, feasibility studies and economic viability studies for exploiting.

86

18. Parsola Rajasthan, Udaipur district

0.40mt with 0.5% Zn

Resources categorized under (333) and it needs detailed exploration, feasibility studies and economic viability studies for exploiting.

19. Muariya, Betul Belt

Madhya Pradesh, Betul District

0.71 mt with 7.60% Zn, 1.73% Pb, 0.75% Cu, 131ppm Cd and 77ppm Ag

20. Bhuyari Madhya Pradesh, Chhindwara district

1.56mt with 2%Zn

21. Dehalwara Madhya Pradesh, Betul district

1.12mt with 1.83%

22. Koparpani Madhya Pradesh, Chhindwara district

1.37mt with 0.85%Zn

23. Bis-khan-khari Madhya Pradesh, Betul district

1.91mt with 1.14%Zn

24. Jangaldehri Madhya Pradesh, Betul district

0.99mt with 1.10%Zn

25.

Zinc ore - Deficit

Ghisi Madhya Pradesh, Betul district

0.25mt with 2.78%Zn

These deposits (333) need detailed exploration, feasibility studies and economic viability studies for exploiting in a small scale (cluster mining) by erecting concentration plants nearer to the group of deposits to make it economical.

26. Ajjanahalli Central Sector

Karnataka, Tumkur district

0.10 with 1.65g/t Au

27. Ajjanahalli East Block (East,West,Main & North Sector)

Karnataka, Tumkur district

3.01 mt with 1.70g/t Au

28. Ajjanahalli Block-C

Karnataka, Tumkur district

0.213524 mt with 1.45g/t Au

Resources categorized under (333) and those need detailed exploration, feasibility studies and economic viability studies for exploiting.

29.

Gold - Scarce

Delwara West, Bhukia Gold Belt

Rajasthan, Banswara district

34.73 mt with 1.87g/t Au

Deposits are categorized under (333). After carrying

87

30. Delwara Block, Bhukia Gold Belt

Rajasthan, Banswara district

1.30 mt with 1.5g/t Au

31. Khankariya Gara, Bhukia Gold Belt

Rajasthan, Banswara district

1.24 mt with 0.96g/t Au

32. Gundelpara Block, Bhukia Gold Belt

Rajasthan, Banswara district

1.932 mt with 3.978g/t

out further detailed exploration and feasibility studies these deposits are ideally suited for small-scale mining operation as they occur in clusters. Exploration coupled with mining is an attractive proposition as most of these deposits have been explored only up to shallow depths and there are indications of further continuity of the ore bodies to deeper levels.

33. Dugocha Main and Dugocha North Block

Rajasthan, Udaipur district

0.16 mt with 2.07g/t Au

34. Bharkundi Rajasthan, Dungarpur district

4.5 mt with 0.25g/t

35. Baghmara Chhattisgarh, Raipur district

0.09 mt with 0.93g/t

36. Sonadehi Chhattisgarh, Kanker district

2.28 mt with 0.699g/t

37. Sonapahari Uttar Pradesh, Sonbhadra district

0.053 mt with 3.03g/t Au

38. Sindauri East Jharkhand, Ranchi district

3.10 mt with 1.81g/t

39. Parasi Jharkhand, East Singhbhum district

0.87mt

Resources categorized under (333) and those need detailed exploration, feasibility studies and economic viability studies for exploiting.

40. Diamond - Scarce

Chagapuram, Pebberu Block

Andhra Pradesh, Mahboobnagar district

Kimberlite pipes identified CGK-1 & CGK-2

Bulk samples were collected from these kimberlite pipes and those found to be not diamondiferous.

88

41. Maldakal and Penchukalpadu, Chagapuram sub block

Andhra Pradesh, Mahboobnagar district

Kimberlite pipes identified CGK-3 & CGK-4

42. Turkandoni Karnataka, Raichur district

Two kimberlite pipes identified

43. Bauxite - Abundant

Kadalia Orissa, Kendujhar district

1.97 mt with 48.34%Al2O3, 19.44% Fe2O3, 4.04% SiO2, 2.5%TiO2 and 24.54%LOI

Resources categorized under (333) and those need detailed exploration, feasibility studies and economic viability studies for exploiting.

44. Platinum Group of Elements - Scarce

Hanumalapura (Block A & B)

Karnataka, Devnagere district

0.546 mt with 0.5ppm to 2.93 ppm Pt+Pd

Resources categorized under (333) and those need detailed exploration, feasibility studies and economic viability studies for exploiting.

45. Velampatti Tamil Nadu, Dharmapuri district

2.74 mt with 0.102% Mo

46.

Molybdenum - Scarce

Harur Tamil Nadu, Dharmapuri district

12.68 mt with 0.032%Mo

Resources categorized under (333) and those need detailed exploration, feasibility studies and economic viability studies for exploiting.

47. Graphite - Adequate

Arasanur Tamil Nadu, Sivaganga district

0.76 mt with 13%FC

Resources categorized under (333) and those need detailed exploration, feasibility studies and economic viability studies for exploiting.

48. Limestone -Abundant

Uchichimedu, Vridhachalam sub basin

Tamil Nadu, Cuddalore district

33.74 mt with Cement grade

Resources categorized under (333) and those

89

49. Lum Syrman Block

Meghalaya, Jaintia Hill district

366.62 mt with Cement grade

50. Nimar Madhya Pradesh, Katni district

1.49 mt with Flux grade(grade-II)

51. Miniyun ki Dhani Rajasthan, Jaisalmer district

336.07mt with cement grade

52. Miniyun ki Dhani Rajasthan, Jaisalmer district

235.28 mt with SMS grade

need detailed exploration, feasibility studies and economic viability studies for exploiting.

Table-IV-3(b)

SIGNIFICANT AUGMENTATION OF RESOURCES DURING XI PLAN PERIOD BY MECL AND STRATEGY FOR SPEEDY EXPLOITATION

Sl. No.

Commodity & Categorization of mineral with

respect to availability

Locality/Block State and District

Resources

Strategy to be adopted for exploitation

1. On behalf of Bhilai Steel Plant, SAIL

Chhattisgarh Durg District,

66.27mt -

2.

Iron ore (haematite) - Abundant

On behalf of M/s NINL

Orissa 102.50mt with +60%Fe

-

3. Chromite - Adequate

On behalf of M/s IDCOL

2.03mt -

4. Copper ore -Deficit

Dhobani Mine Jharkhand, East Sighbhum district

5.22mt with 1.31%Cu

Resources categorized under (331) and needs feasibility and economic viability studies for exploitation.

90

5. Devtalai (phase-II)

Rajasthan, Bhilwara district

2.47mt with 0.97%Cu

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

6. Dariba-Akola Rajasthan, Rajsamund district

2.63mt with 0.80% Cu

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

7. Dhani Basri Rajasthan, Dausa district

5.13 with 1.17%Cu

Resources categorized under (331) and needs feasibility and economic viability studies for exploitation.

8. Satkui Rajasthan, Jhunjhunu district

3.33mt with 1.22% Cu

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

9. Sanganer Rajasthan, Bhilwara district

17.21mt with 0.32% Cu

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

10. Bajta North Rajasthan, Ajmer district

1.24mt with 0.70%Cu

Resources categorized under (333) and needs further detailed exploration, feasibility and economic viability studies for exploitation.

91

11. Wari Rajasthan, Chittaurgarh district

2.56mt with 1.09%Cu

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

12. Banskhapa-Pipariya

Madhya Pradesh, Betul District

0.92mt Zn-Cu ore

Resources of this deposit are categorized under (332) and needs feasibility and economic viability studies for exploitation.

13. Central Sub Block

Rajasthan, Rajsamund district

3.84mt with 1.60%Pb and 3.76% Zn

Resources categorized under (333) and needs further detailed exploration, feasibility and economic viability studies for exploitation.

14. Ganeshpura area

Rajasthan, Ajmer district

0.97mt with 1.33%Pb and 1.44% Zn

Resources categorized under (333) and needs further detailed exploration, feasibility and economic viability studies for exploitation.

15.

Zinc ore and Lead-zinc ore - Deficit

Rewara Rajasthan, Chittaurgarh district

2.65mt with 3.42%Pb, 0.65% Zn and 0.38% Cu

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

16. Gold - Scarce Parasi Central Jharkhand, East Singhbhum district

7.47mt with 0.98g/t Au

Resources categorized under (331) and needs feasibility and economic viability studies for exploitation.

92

Bhukia East Rajasthan, Banswara district

11.74 mt with 2.51g/t Au

Resources categorized under (332) and needs feasibility and economic viability studies for exploitation.

17. Limestone (flux grade) -Abundant

Nandini Mines,Bhilai Steel Plant

Chhattisgarh, Durg district

1.92mt -

93

CHAPTER – V

THRUST AREAS AND EXPLORATION STARATEGY IN THE XII FIVE YEAR PLAN 2012-2017 [ ToR (iv) & (vii) ]

5.1.0. Preamble

This chapter outlines technological gaps in mineral exploration with special enphasis on deep seated deposits in the country and identifies the measures to fill-in these gaps through acquisition of advance technological know how and equipments. It outlines the strategy for faster and scientific, regional and detailed exploration through application of modern techniques. The chapter has also dealt with the National priority of mineral commodities after assessing their demand: supply scenario.

5.1.1. Minerals are precious natural resources of any country-- non-renewable in nature and limited in quantity. Mineral resource is a vital raw material for infrastructure, capital goods and basic industries. The demand for natural mineral resources has become acute in the fast growing industrialization. In the country, the per capita consumption of most minerals like copper, lead-zinc, aluminum and related products, like power, steel, fertilizers, etc. is one of the lowest. The demand for various metals and minerals will grow 4-5 times over the next 15 years (9-11% growth per annum) against a backdrop of globally dwindling and increasingly scarce resources. With the existing mineral potential in India, the aspiration of the mining sector in the GDP is to increase from the current contribution of 2.3% to around 7-8% over 20 years. The mining sector needs to play a major role if India has to realize the potential growth of 9% per annum in the coming years. The importance of the sector in the growth of GDP in mineral rich countries indicates the ample opportunities are available for India on account of its vast mineral potential but insufficient exploration. The reserves for iron ore and bauxite in Australia grew 150 to 200% between 1985 and 2005. In contrast, in India they increased by 10-20% only, even though geologically both the countries have similar geological set up. Considering the fact that it takes 10-15 years of gestation time to convert a mineral discovery into a producing mine, more intensified exploration activity is the dire necessity of the day. 5.1.2. The data of IBM (2008) on export and import of minerals, mineral based products and metal & alloys are given in Tables V-1 to V-6. India exported 29 varieties of mineral commodities and earned Rs.1,09,296 crores of revenue. However, import of 29 mineral commodities valued at Rs.5,14,509 crores, resulted in a net deficit of Rs.4,05,213 crores. Similarly, the net deficit in trading (export/import) of mineral based products and metals and alloys is Rs.26,000 crores and Rs.1,17,250 crores respectively. Hence, it can be seen that the total deficit in mineral trading during 2008-09 alone stands at nearly Rs.5,48,463 crores, mostly in terms of foreign exchange. Efforts are required to narrow down, not only the trade deficit but also to give thrust to exploration for minerals, which attracts high value foreign exchange. 5.1.3. Geologically, India has a tremendous potential for targeting deep-seated and concealed mineral deposits. India has a favourable geological milieu and is well endowed

94

with mineral resources which are yet to be fully explored, assessed and exploited because of non-adoption of advanced techniques. Most of the exploration activities in the country are of conventional type (based mostly on geological data) with restricted input from geochemistry, geophysics and remote sensing. 5.1.4. A viable and sustainable exploration strategy should include:

Adaptation of the state-of-art technology to explore deep seated/ concealed deposits.

Intensive search for new mineral findings based on baseline data generation by GSI and other agencies. Complete NGCM and National Aeromagnatics and Hyper Spectral Mapping of OGP by end of XIIth Plan and rest of the country by end of XIIIth Plan.

Intensive search on National priority for minerals in which the country is deficient or scarce.

The strategy requires application of different advance techniques for regional and detailed exploration. The technological gaps are to be met through acquiring state of the art technology and equipments and IT applications.

5.1.5. The Peninsular region is the most important domain so far as mineral resources are concerned. Metallogenic provinces as well as various mineral deposits in India are mainly concentrated in the Peninsular region. The Phanerozoic and Tertiary sequences contain coal and lignite. The Holocene and Quaternary sediments have presence/concentration of gold, tin, diamond, etc. in riverine placers and monazite, ilmenite, rutile, etc. in beach placers, and bauxite as cappings. 5.1.6. Systematic geological mapping carried out hitherto by GSI has brought out 5.71 sq.km of Obvious Geological Potential (OGP) area on which the priority and strategy in respect of mineral exploration are exercised during the XIIth Plan period. 5.2.0. TECHNOLOGY INADEQUACY: THE GAPS 5.2.1. Though GSI, over its period has developed core competency in systematic geological mapping and mineral exploration by following the traditional and conventional method, yet it has failed to keep up with the international technological innovations in these fields. Near exhaustion of surface and shallow surface deposits and dire need of probing for deep seated mineral deposits have necessitated introspection of the age-old practices of GSI with ageing manpower and outdated infrastructure. 5.2.2. The technology inadequacy has been highlighted time and again by the various committees with a strong recommendation for infusion of state of the art equipments and machineries for GSI. In view of the appreciable cost-outlay involved in the procurement of sophisticated equipments and machineries, phasing out of the technology infusion in GSI has been envisaged in the High-Powered Committee of Ministry of Mines (March, 2009). 5.2.3. The yawning gap of technology inadequacy exists in all stages such as:

In the generation of baseline geoscience data and in the pre-exploration stage,

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During exploration and Post-exploration stage

5.2.4. In this era of mobile mapping resorted to elsewhere in other Geological Surveys, GSI is carrying out mapping with Brunton Compass. 5.2.5. There is an absence of remote sensing study on lineament for structurally controlled epigenetic mineral deposits. 5.2.6. Inadequacy of latest analytical instruments with lower detection limits has hampered accurate analysis of geochemical samples for fruitful interpretation of anomaly zones. 5.2.7. There exists a lack of applicability of geochemical surveys particularly in collection of gas (nano-gas collection) for identification of sulphide deposits and energy resources. 5.2.8. While collating the baseline data generated, the absence of quality structural, geophysical (both ground and aerogeophysical) and geochemical data required for synthesizing and deposit modeling applicable uniquely for each identified mineral belt is acutely felt. 5.2.9. With the result, for deposit modeling, GSI has technical deficiency in application of computer based multivariate statistical analyses, interpretation based on multi-thematic and multidimensional modeling in order to establish characteristic inter-relationships of various parameters that lead to mineral modeling. The application in fact helps in 3-dimensional modeling of mineral belt and in deposit prognostication in gap areas in the brownfield. Such modeling will effectively prognosticate the concealed/ deep seated deposits. 5.2.10. In baseline geoscience data generation, GSI is yet to apply methodologies such as hyperspectral remote sensing and geomorphological mapping for prognostication and identification of mineralized zones. The methodologies are carried out with respect to locating specific mineral commodities in secondary enriched deposits or identifying annular/radial drainage pattern, abrupt change in the river course, etc., identifying the geochemical sampling zones, eg., in identification of channel/braid/point bars for riverine deposits. 5.2.11. Airborne magnetic surveys are effective in delineating major structures which may control the locations of epithermal gold deposits, and also in detecting magnetic “lows” or “flat zones” resulting from the destruction of magnetite by hydrothermal alteration. Radiometric surveys may detect potassium enrichment accompanying this alteration. Filtering and image-processing techniques are particularly useful in enhancing magnetic and radiometric data to reveal subtle structures and alteration systems. Usage of outdated and obsolete sensors, absence of high-accuracy sensors and image processing softwares have rendered the airborne surveys carried-out so far ineffective for meaningful interpretations. Airborne Surveyes completed so far show variations in scale of data collection suitable mostly for generation of raster images and

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their unviability to be integrated with digitized formats for comprehansive data processing and limited multi thematic interpretation. 5.2.12. With the development of several sophisticated geophysical ground survey instruments and improved data processing & interpretation software, geophysical investigation techniques need to be modernized at par with the latest global trends. Geological Survey of India needs expertise to upgrade its functioning in number of domains as far as ground geophysical investigations are concerned. 5.2.13. GSI has assessed mineral resources for mostly up to a vertical depth of 120m. Save for the few investigations, GSI so far has not targeted deep seated or concealed deposits mainly because of lack of high-end technologies in the field of exploration. 3-D seismic surveying provides detailed geological and mineral mapping capability at both a regional and project scale facilitating improved selection of prospective terrain and an accelerated exploration cycle. The technology has been successfully deployed on four continents over a broad range of terrain from desert to boreal forest and the high Arctic. To augment Exploration’s deep search initiatives, existing 3-D seismic technology has been modified to assist targeting massive sulphides located at depths ranging from 500m to 2000m. 3-D seismic survey is yet to be implemented in GSI. 5.2.14. Drilling machines that are currently in use in mineral exploration are outdated, sometime obsolete and time consuming, with the result operational cost has become heavy and uncontrollable. 5.2.15. Some of the surveys such as magnetotellurics (MT), borehole resistivity tomography and borehole gravity and spectral IP surveys are totally absent in GSI. 5.3.0. REPERCUSSIONS OF TECHNOLOGY INADEQUACY:

GSI so far has followed antiquated mineral exploration techniques utilizing surface geological methods coupled with geochemical and geophysical studies, applying remote sensing techniques (restricted to interpretation of satellite imageries and air photos) and sub-surface probe through drilling.

The absence of modern exploration techniques along with proper infrastructure for capacity building and multidisciplinary R&D activity has inhibited any systematic approach to explore concealed (whether near-surface or deep-seated deposits) in green-field areas, or even near surface deposits in brown-field areas. By not adopting modern analytical methods, multidisciplinary approach of research could not make much headway in GSI towards its approach to applied fields of geology, particularly mineral exploration.

The above deficiency has caused further impediment in growth of GSI in the domain of human resources. By not grooming new expertise in new research domains and protocols as well as by not nurturing expertise in GSI’s traditional fields of strengths, GSI is really starving for expertise to take its modernization plans to a desired level.

Technological imbalance in the field of exploration and exploitation has led to the failure to estimate the full potential of a mineral deposit and its total exhaustive

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exploration, particularly that which is deep-seated. Exploration has been carried out mostly to assess resources upto depth of 120m even though exploration and exploitation techniques exist for deep-seated bodies upto a depth of 2500m.

Low grade and high tonnage deposits are largely remained untapped for lack of beneficiation techniques. Even, potential deposits of strategic minerals could not be exploited for want of advance technical know how on beneficiation and the country has to depend heavily for the import to sustain its industrial and strategic growth. Indeed, the activity of exploration has become sluggish in respect of such commodities.

Non-adoption of technological advancement has greatly impeded the generation of additional information necessary for ascertaining the status of a prospect/ deposit in the geological, feasibility and economic axes of UNFC. This has a direct bearing in the investment scenario in the mining sector.

Though GSI in recent years has started delivering its product through its enterprising Portal, most of the states have yet to come up with world class information infrastructure for sharing of information with all the stakeholders and, thereby, failed to attract investments.

5.4.0. TECHNOLOGY INFUSION: 5.4.1. In recent times, mining has become a high risk proposition with the depletion of surface and shallow deposits necessitating probing of additional resources at deeper levels. Rising demand, outpacing supply and increasing cost of mining have led to increasing commodity prices. At the same time, replenishing mineral reserves has become more difficult due to the availability of ores mostly at lower grades, at deeper levels with constraints such as inadequate capital, infrastructure, human resource, etc. which are the critical parameters that sustain the growth of the mining sector. To keep pace with the growing demand, India must enhance domestic mineral production, and for that, exploration activity by acquiring advance technological know how and sophisticated instruments in field of exploration, mining, beneficiation and R&D activities. 5.4.2. In the field of Thematic Geological Mapping (TGM), the technology infusion that has been envisaged includes: Field Laptop, or Table PC, Mapping GPS unit, GSI Portal, Digital toposheets with facility for field data capture using wireless network, etc., mobile mapping vans with portable generator. 5.4.3. In view of completion of systematic geological mapping over the country, an Integrated Thematic Mapping (ITM) has been visualized, initiation being within the XII Plan period, for purpose of which the technology infusion that is to be introduced includes: Ground Penetration Radars [GPR], shallow drills, deep drills, Thermal Ionization Mass Spectrometer and Electron Probe Micro Analyzer and Microgravimeter, etc. 5.4.4. As a redressal measure for effective analytical output with lower detection limits of geochemical samples, augmentation of the state of the art instruments such as ICPMS, AAS, XRF and DMA, in the laboratories of GSI has been incorporated during XII Plan period.

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5.4.5. In the field of geophysical mapping, the technology infusion that is being proposed includes high precision gravimeter and total field magnetometer. 5.4.6. With the advent of new satellites data, geomorphological mapping and lineament studies have taken a new dimension as satellite remote sensing provides direct perspective of large regions. The data helps to prepare landform maps, thereby, finding increasingly wider applications in various fields of resource surveys. With the advancement in digital image processing techniques, the satellite data in conjunction with Digital Elevation Model (DEM) have great potential in lineament detection and mapping. Therefore, there is a need for preparation of detailed lineament maps of the entire country, which along with landform maps could form the basis for applications in various fields of Earth Science including resource survey. 5.4.7. In case of hyperspectral mapping, Space borne and Airborne Hyperion data with specific spectral range (necessary for geological objects) are to be procured and utilized. To achieve these objectives, necessary infrastructure has to be built up and Spectroradiometer, data processing Software and Hyperspectral remotely sensed data are to be procured. The major problem, which needs to be resolved, is the procurement of Hyperspectral data for an area of interest. The country is depending on the freely available data to be downloaded whether that area is of our interest or not. If data are required for a particular area, with exact areal extent, they are to be procured after reaching an understanding with the data generating agencies, either USGS or Australian Agencies, sourced through the World Bank Technical Assistance. Data processing softwares and expertise are also to be sourced through the World Bank. In this context, it is also contemplated to have a continuous acquisition of hyperspectral data in collaboration with ISRO/ NRSG/NNRMS. 5.4.8. Under technology infusion, procurement action that has been initiated at the fag end of the XI Plan period in the domain of Aerial Geophysical Mapping (AGPM) includes: Heliborne survey system with sensors low-altitude (<150m), high-resolution Time Domain Electro Magnetic, magnetic, gravity and radiometric heliborne sensors; new fixed wing Multisensor survey system; upgradation of the TOASS; Hyper Spectral Sensors and continuous upgradation of hardware and software. 5.4.9. The ground geophysical techniques require induction of additional inventions. With the development of several sophisticated geophysical survey instruments and improved data processing & interpretation software, geophysical investigation techniques need to be modernized at par with the latest global trends. Geological Survey of India needs expertise to upgrade its functioning in number of domains as far as ground geophysical investigations are concerned. In this context, the role of 3-D seismic surveying is of paramount importance:

The challenges to locate deep seated and concealed ore bodies are partially addressed by 2-D and 3-D seismic profiling in hard rock terrains. To quote an example, deposits of Witwatersrand, S.Africa and Sudbury & Matagami, Canada have been successfully located on deep exploration through 3-D seismic surveys.

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Depending upon the size of the target, modern large loop time-domain electromagnetic system extends the depth of exploration to about 500m. Seismic reflection method in hard rock environment opens up the depth range to 2500m, the limit at which advance mining methods are capable of economically extracting ore. The 2-D survey is well suited for the determination of the lithostructure and the detection of the mineralized zone. In 3-D seismic survey, the vertical seismic profiling detects the configuration of the deposit.

3-D seismic geophysical exploration provides– accurate volumetric images of the sub-surface for interpreting the structural

and stratigraphic framework of ore deposits; under favourable circumstances, directly delineate large deep seated ore

bodies; create dense volume of sub-surface data sampling; efficient horizon picking in

vertical and time-slice orientation and volume visualization on interpretation of data through specialized soft ware.

3-D seismic surveys have been successful in detecting and imaging – large massive sulphide deposits such as magmatic and volcanic (VMS)

deposits; massive, sedimentary exhalative (SEDEX) and IOCG type deposits; lode gold and porphyry deposits; uranium deposits formed along unconformity surface; Mississippi Valley type (MVT) deposits; kimberlite pipes from their host rocks.

5.4.10. To enhance the pace of drilling and quality/reliability of subsurface information, it is necessary to induct improved techniques and equipments such as reverse circulation drilling with inbuilt system for controlled deflection of borehole path and adopting a combination of coring and non-coring operations in a single borehole. Rotary Air Blast (RAB) drilling which is fastest and cheap method is also to be inducted. State of the art drilling machines such as reverse circulation, hydraulic rigs, etc., are in the process of procurement during the XII Plan period. 5.4.11. In addition to above, technology infusion that is additional and proposed in the field of mineral exploration includes:

Magnetotellurics (MT) survey:

It involves electromagnetic geophysical method of imaging the earth's subsurface. Magnetotelluric method depends mainly on the electrical resistivity parameter of the earth. The various rock types exhibit a wide range of electrical resistivity parameter (from 10-1 to 106 Ohm.m). Such a huge range of resistivity is another advantage for electrical and EM methods to differentiate various rock

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types (which obviously include the host rock of mineralization) and its character with ease as compared to other geophysical methods.

MT is now used by many exploration agencies in commercial exploration surveys around the world for hydrocarbon (oil and gas) exploration, geothermal exploration, and mining exploration. MT is used for various base metals (nickel) and precious metals exploration, as well as for Kimberlite mapping for targeting diamond.

Borehole Resistivity Tomography:

Electrical Resistivity surveying along the earth’s surface is a well-known

geophysical exploration technique. Due to its conceptual simplicity, low equipment cost and ease of use, the method is routinely used in mineral exploration. Borehole resistivity tomography, in which both current electrodes and potential electrodes are placed in two boreholes, can provide detailed information about resistivity distribution between the boreholes. Single borehole VRP data can detect conductive zones within a 30 m range around the borehole. A BRT (Borehole Resistivity Tomography) test survey may be conducted to map massive and semi-massive sulfide zones between boreholes up to 180 m apart. The boreholes need to be water filled so as the electrode array couples to the rock formation.

Borehole gravity logging for expanded search radius around boreholes:

In mining applications, borehole gravity data can be used to detect massive

sulphide bodies and to estimate their tonnage independent of their shape, or map bulk densities of formations intersected by the hole. Borehole gravity measurements reflect the distribution of rock densities at depth with greater target sensitivity and resolution than surface measurements. There are two types of basic information that can be obtained from borehole gravity measurements. Information concerning the distribution of densities, both in the vicinity of the hole and remote from it, allows the explorationist to construct a three dimensional representation of the subsurface geology with improved spatial resolution and sensitivity for deeply buried structures.

Spectral IP method:

Spectral IP (Induced Polarization) refers to IP measurements of amplitude and phase of the received signal made in the frequency band approximately 0.00l Hz to l000 Hz. Spectral IP arose from the need to solve two problems: (l) the contamination of IP data by “electromagnetic coupling” in areas with conductive surface conditions and (2) the desire to discriminate between economic and non-economic mineralisation, based on different grain sizes. Spectral IP is an anomaly follow up technique, not a reconnaissance technique.

5.4.12. A large group of Geological Surveys has initiated an international collaboration for data harmonization in geology. The desire to develop a common geoscience conceptual model and XML exchange standard is based on the need of users to be able to access

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digital geoscience data from a variety of sources, process them using common software packages, and integrate them with the data from other discipline. Following this international best practice, GSI has initiated action during the XI Plan, integration of digital geoscience data that have been generated. 5.4.13. GSI NET - Portal Project

A proposal for setting up of GSI NET and PORTAL in two Phases at a cost of Rs. 25 crores [Rs.12.20 crore in Phase-I and Rs. 12.80 crore in Phase-II] has been initiated in the XIth Plan. The project was executed by TCS and covers Office automation application, GSI Reports, Maps and Spatial data, and Email and other applications. Presently, GSI wants to develop an integrated Web enabled interactive system called Online Core Business Integrated System (OCBIS) under Portal Phase III incorporating the State of the Art technologies using which all scientific and administrative processes of GSI can be managed and automated. This will integrate and underpin the interdependence and data flow/workflow mechanism between core activities like field season project management, data management, product management, personnel management, budget and expenditure management, Document & Content Management Services, Spatial Data Solution and Services, e-Governance and holistic integration of all these components with Core Business Processes of GSI.

The system will be capable of displaying the information on geological map of India using GIS tools on the Portal. The proposed system will also enhance the existing information systems at GSI in terms of proper linkages and usability for carrying out the statutory functions of GSI. The core business processes of GSI include Field Season Program (FSP), Laboratory Management System (LMS), GIS and Scientific Applications, Published and Unpublished Reports, GSI Technical Publications and Administrative Services. Portal Phase III envisions to implement a State-of-the-Art Integrated Platform with proper data and process workflow integrated with various IT systems providing core business processes facilitating real time collaboration and interaction for all stakeholders. Chief Objectives of Portal III 1. Integrate all available data in a spatial environment, allowing search and

exploration using attribute-based and area of interest (AOI) based queries. 2. Enable geoscientists in the field and laboratories to explore, observe, consult and

make decisions using the spatial and attribute data service, which serves existing data in the form of maps, reports and publications.

3. Seamless integration of the existing core business - FSPMIS (Field season project management information system), LMS (Laboratory Management system), GIS and Geoscientific application with reports and other administrative transactional systems.

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4. Monitoring of progress of all core activities of GSI – for instance field season projects by supervisory officers through the system which shows intermediate phases of mapping and investigation activities.

5. Implementation of IP v6 compliant ICT (network and applications) 6. Development of online Material Management System (MMS), which will cater the e-

Procurement processes implementing e-payment gateway. 7. Preparation of IT policy, data dissemination policy, data management policy, IPR of

GSI in different aspects of core activities Portal Phase III will be carried out in two distinct stages namely

• Pre-DPR stage which includes Migration of GSI network to NICNET, Migration of GSI Mail to NIC Email and Pilot Geoinformatics Services

• The DPR stage will involve appointing a consultant who will prepare a DPR as well as RFP for the Online Core Business Integrated System (OCBIS) and manage the implementation of OCBIS by a selected system integrator.

The project entitled 'Consultancy Services for Conceptualization and Design of Online Core Business Integrated system {OCBIS} for Portal Phase III of GSI by National Institute for Smart Government (NISG) has been initiated.

5.4.14. As the vision of GSI is to follow the norms of best international practice followed elsewhere in the other countries, in its entire gamut of activity the need and the urgency of Quality Assessment, Assurance, Control and Management has been felt as a mandatory exercise for purpose of which a Quality Management Cell has been established within GSI. 5.4.15. Exercising of Quality Assessment, Assurance and Control does not stop with the output of quality analytical result of geochemical samples. As GSI is the custodian of Geoscience Data Base generated in the country in the near future, pervasiveness of Quality Control in each and every gambit of activity of GSI is a necessity for purpose of which “Standard Operating Procedure” in every domain activity is being standardized, peer reviewed, efficacy tested and implemented. Training and Capacity Building of GSI (Mission-V) strives to achieve this goal. 5.4.16. Efforts are underway in acquiring ISO Accreditation Certification for the Analytical Laboratories of GSI. 5.5.0. STRATEGY FOR REGIONAL AND DETAILED EXPLORATION: 5.5.1. On infusion of technology in the field of thematic geological mapping, achievement of the following objectives is anticipated.

High resolution mapping with application of emerging global concepts backed up by precision laboratory studies

In the case of fundamental geological issues, for understanding the kinematics and dynamics of terrain evolution in the global perspective.

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5.5.2. Similarly in the domain of integrated thematic mapping, the objectives that are to be realized are as follows:

Surface mapping with multidisciplinary inputs. Area specific selective drilling (upto 300m) to decipher shallow-subsurface

geology, particularly for identification of concealed active faults, physico-mechanical characteristics of loose/ unconsolidated litho-package, delineating water saturation level etc.

In areas with geological issues – surface mapping backed with a few deep stratigraphic drilling.

Digital overlay of multidisciplinary data package for 3D modeling to locate concealed / deep seated ore bodies.

Customised data package to fulfill end user demands.

5.5.3. The strategy of acquiring geochemical data is for utilization on : Development of scientific manpower with domain expertise, through in-house and

outsourced training, coupled with enhanced deployment in the NGCM items. Scaling up of chemical analytical capability by augmenting procurement of high

precision analytical instruments. Coverage of some extra-peninsular area, using helicopter as means of

accessibility, in the later Plan periods.

5.5.4. The strategy Geophysical Mapping (GPM) involves : The strategies adopted for undertaking the Geophysical Mapping programme

follow the contours of that of the NGCM programme for obtaining complimentary gravity and magnetic data in NGCM covered areas.

Development of scientific manpower with domain expertise, through in-house and outsourced training, coupled with phased escalation in deployment.

Priority target identified in recognized mineral provinces and NGCM covered areas.

5.5.5. The strategy of utilization of Geomorphological Mapping (GMM) is the usage of multi-level multi-spectral remote sense data with appropriate ground checks. 5.5.6. The strategy of utilization of Aerial Geophysical Mapping (AGPM) incorporates:

Low-altitude (<150m), high-resolution Time Domain Electro Magnetic, magnetic, gravity and radiometric heliborne aero-geophysical surveys including extra-peninsular area.

Constitution of National Task Force involving GSI, AMD and NRSA (GSI being the nodal agency) for data sharing as well as close collaboration for multi-sensor geophysical survey.

Acquisition of multi-sensor aero-geophysical data through TOASS Ground follow up of anomaly zones. Modelling of aero-geophysical anomalies, using advanced data processing

systems, for delineation of target blocks deep seated mineral diposits.

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5.5.7. Technology infusion in Multi-Spectral/Hyperspectral Remote Sensed Mapping (MSM/HSM) is expected to make an impact on:

Acquisition of Hyper-spectral images and creation of data base. Training personnel for image interpretation. Interpretation of Hyper-spectral data to target mineral areas.

5.5.8. The natural outcome that is envisaged on implementation of technology infusion in respect of drilling activity in mineral exploration is setting up of a National Core Repository within GSI in addition to establishing Core Repositories at every Regional Centre. In the proposed revision of MMDR Act, 1957 a suggestion has been made for deposition of drill cores of both private and public sector agencies with GSI in the National Core Repository for archiving and detailed studies at a later date. The repository is contemplated to have all the digital and analogue data of core logs, correlative studies, litho variations, stratigraphic successions, mineral zone variations, etc. The repository will also have an attached laboratory facility for sampling of cores, studying of thin and polished sections of minerals and ores and also for sampling for high end analysis by various other agencies such as Universities, academicians, research scholars, private and public agencies. 5.5.9. Geologically, India has a tremendous potential for targeting deep-seated and concealed mineral deposits. India has favourable geological milieu and is well endowed with mineral resources which is yet to be fully explored, assessed and exploited. Indian sub-continent has a land area of 3.28 million sq. km. Of this 2.42 million sq. km. (about 74%) is constituted of hard rocks while the remaining 0.86 million sq. km. (about 26% of the total area) lies under a thick alluvial cover. Indian land mass is broadly divided into three major physiographic divisions, namely, i) the Peninsular region ii) the Indo-Gangetic alluvial plain region and iii) the Extra-Peninsular Himalayan region, each having a distinct lithologic and tectonic setting. Metallogenic provinces as well as various mineral deposits in India are mainly concentrated in the Peninsular region and to a lesser extent in the Himalayan region. 5.5.10. With the help of geo-scientific data collected during course of systematic mapping and regional exploration, Geological Survey of India has identified litho-tectonic domains covering an area of 5.71 lac. sq km as potential repositories for scheduled 1C and 1A (Coal & Lignite) minerals, most of the area of which is located in Peninsular part of India. For the metallic deposits, the Archaean-Proterozoic sequences are by far the most important host with major deposits concentrated in the age group of 3 to 1 Ga. Some of the varied metallogenic environments that have been identified in these sectors are volcano-sedimentary/sedimentary environments hosting base metal and ferrous group of minerals; ultramafic-magmatic environment hosting nickel, chromium, PGE and diamond deposits; acid-intermediate-basic magmatic environments hosting gold, molybdenum, copper etc.; late hydrothermal environment hosting mica, wolfram, tin, RM and REE etc. 5.5.11. The Phanerozoic and Tertiary sequences contain coal and lignite. The Holocene and Quaternary sediments have presence/concentration of gold, tin, diamond etc in riverine placers and monazite, ilmenite, rutile etc in beach placers. The weathered profiles yield large resources of bauxite, clay, titanium and nickel. In addition, igneous,

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metamorphic and a few sedimentary rocks as well also form a variety of dimensional stones for which large domestic market as well as export potential exists. 5.5.12. The search for deep-seated and concealed metaliferous deposits is driven by:

Concept-based mineral belt modeling (especially in virgin or Greenfield areas); Data based exploration (on the basis of nature of occurrences of shallow level

deposits existing in Brownfield areas) and geoscientific possibility of similar mineralization or extension of shallow deposits at greater depths.

5.5.13. Greenfield exploration is highly conceptual and to be based on predictive power of genetic models on tectonic evolution of litho-package, probabilistic ore genesis and expected ore mineralization in the tectonic milieu. 5.5.14. In Brownfield exploration, geology is better understood since the mineral commodity is known and exploration methodology for the commodity in that belt is already defined. 5.5.15. In this era of technological innovation, exploration techniques for exploitation of deep seated ore bodies upto a depth of 2500 m do exist. The search and exploration of deep seated mineral resources, without having much apparent surface shows, is not a venture in isolation but calls for total understanding and comprehension of the causative processes and factors which could lead to possible ore localization and has to be carried out by concept based or data driven based mineral belt modeling. 5.5.16. GSI needs to complete its geophysical and geochemical mapping expeditiously, with the assistance of outsourcing and service contracts if necessary, so as to develop potential areas for prospecting, so that such prospects can then be competitively awarded, as provided in the legislation. It is also recommended that for minerals likely to be found as surficial deposits and where prospecting does not require high technology, State governments should be incenticized and enabled to take up prospecting and exploration so that adequately prospected ore bodies can be put to bid. Similar line of strategy has also been advised by Hoda Committee. 5.5.17. The exploration activity in the country can be intensified by taking following key initiative :

GSI to complete its geophysical and geochemical mapping baseline data expeditiously, with the assistance of outsourcing and service contracts if necessary. For successful completion of this task GSI should ensure adequate support mechanism like proper quality checks, measures to coordinate among multiple subcontractors etc.

Complete NGCM on OGP by end of 12th Plan and rest of country by end of 13th Plan. Take up and complete National Aeromagnetic mapping and National Hyper Spectral Mapping for OGP areas by end of 12th Plan and rest of country by end of 13th Plan.

GSI should digitise and make the baseline data (existing and additional data generated) publicly available in line with the best international practices to enable the exploration companies to use it in their exploration efforts.

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Create National Geophysical data repository and National Drill Core Repository to assist entrepreneurs to take up exploration.

GSI should step up the regional assessment activities to identify known mineralization areas for auctioning. This should be parallel to the exploration activity conducted by private companies through the RP/LAPL route. It is also essential to ensure that the geoscience data generated by companies is submitted and documented for future reference.

5.5.18. During the XI Plan period, private entrepreneurs both national and MNC’s have also taken up regional search through ground surveys and/or aerial survey followed with ground work. The programme of these organizations for the XII Plan period is not certain. In case of the Public Sector units, the exploration programmes are mostly oriented at the development of existing resources and delineation of the ore bodies within their lease-holds with the main object of helping the mining activity or to augment the resources to be blocked for active mining. 5.6.0. NATIONAL CENTRES FOR EXCELLENCE ON RESEARCH AND DEVELOPMENT – PERTAINING TO MINERAL EXPLORATION AND SUSTAINABLE DEVELOPMENT 5.6.1. Evaluation of metallogenic potential of different parts of cratonic India requires use of advance methods, e.g. the Terranechron method used by GEMOC, Australia. The method uses analyses of detrial zircons for date, Hf-isotope and trace elements to know age, magma source, magma residence time and chemistry of rocks of magmatic origin. This would help in identifying (i) areas of remobilization, even if concealed, important in identifying mineral potential zones; (ii) Metal Isotope analyses (Cu, Fe, Zn, Mo, Sb, Ni….) for direct information on sources of metal, (iii) using isotopes as fluid tracers (Hf, Sr, Nd ), (iv) indicator for mineral surveys. 5.6.2. GSI needs international expertise for technology upgradation and technology assimilation. To achieve that goal, GSI has proposed a centralized facility that would be developed in the CHQ, Kolkata and to be named as ‘Integrated Research & Development Centre for Geosciences [IRDCG]. The IRDCG will incorporate all existing high-quality instrumentation available in the CHQ and upgrade them, besides procuring some more. The IRDCG would spearhead high-quality research in diverse fields of geology utilizing state of the art instrumentation and through formation of several experts’ research groups. IRDCG would be supplemented by two satellite centres at Faridabad and Bangalore with facilities that can be developed independently. 5.6.3. Some of the important research topics envisaged by the IRDCG are either non-existent or have very scanty presence in India. GSI has very limited number of officers exposed to such modern research. IRDCG plans to adopt such technologies and methodologies through extensive interaction evolving collaborative programs with international researchers and undergoing training in reputed international institutes. There are many fields in which international collaboration is required. Some such fields of research are: (i) Uranium disequilibrium dating, (ii) application of ‘Terranechron’ models for mineral exploration, (iii) palaeo-monsoon reconstruction using speleothem etc.

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5.6.4. IRDCG plans to incorporate many a sophisticated instrumentation like HR-SIMS, AMS, LA-GC-IRMS etc. Such instruments are capable of producing huge volume of high-precision data if operated to their full capacity. In such cases, these instruments would be able to fully cater to GSI’s demand and necessity of high-precision analyses in near future. GSI lacks experience in handling such sophisticated instruments and seek World Bank assistance to help to maintain the sophisticated instruments, and in that process, GSI’s in-house officers would get opportunities to gain experience in maintenance of such sophisticated instruments. 5.6.5. Improved beneficiation techniques are needed for exploiting and mining at an increasingly low grade. Though improved beneficiation techniques are being pursued by many organizations, eg. M/s HCL for copper, HZL for lead-zinc, NML for tungsten and DMRL for titanium, advanced technology needs to be acquired, particularly for deficient commodities. As an example, further research has to be carried out to extract tungsten from scheelite, available in plenty in the country and which normally gives a richer concentrate than wolframite. 5.7.0. PRIORITIES FOR REGIONAL EXPLORATION: 5.7.1. GSI acquires geological, geophysical (both aerogeophysical / ground geophysical) and geochemical data under baseline geoscience data collection which is the major activity of GSI. These data’s are used for mineral exploration as well as for any other societal need work 5.7.2. Geological Mapping:

Geological data is collected through geological mapping (ground surveys) on

different scale to map the general geology, geological structure and the geological succession which also includes associated studies in stratigraphy, petrology, mineralization and geochronology. Major part of the country has been mapped systematically with 1:50000 scale but mapping being dynamic continuous updating of geological data of the country as per the need is done by carrying out geological mapping on larger scale to update the map in the light of evolving scientific concepts and advancements in knowledge in different branches of earth science. In this context, theme based mapping is required to address the specific aspects of scientific enquiry, for resolving critical geological problems, or at times to cater to the needs of various specialized activities of the Department. GSI has launched specialized theme based large scale (1:25,000 or larger) studies/mapping items (STM) from VIII plan period onwards. This kind of mapping involves collection of multi-disciplinary data, which is complemented by precision laboratory studies and has immense application in prognostication of mineral resources; environmental analysis , natural hazard recognition and risk management, land use management, evaluation of major civil engineering projects. This integrated geoscientific data helps to resolve many of the geological ambiguities and sometimes opens up new avenues for future investigation in respect of the problem/area. The major challenge ahead in this data acquisition is particularly in the field of advance structural maps of mineral potential belts of the country for mineral prognostification and for targeting deep seated and concealed deposits.

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5.7.3. During the XII Plan, about 4200 sq. km area is likely to be covered under systematic geological and 80,000 sq km under Specialised Thematic Mapping by GSI in the following areas:

i. Systematic Geological Mapping (1:50,000) Northeastern Region - 4200 sq km 2400 sq km Mapping in unmapped area of Manipur 1800 sq km Mapping in unmapped area of Nagaland

ii. Specialized Thematic Mapping (1:25000) Central Region - 16500 sq. km In Maharashtra, Specialised Thematic Mapping is proposed in the following

areas: To understand stratigraphy, structure, tectonometamorphic evolution and

metallogenic aspects of the gneiss-supracrustal terrain in Western Bastar craton.

Ground characterization of lineaments in Konkan region In Precambrian rocks in parts of Sindhudurg district for bringing out the

lithostratigraphy, structure and tectonometamorphic history with a view to search for Fe,Mn,Ni,Cr,Co and PGE mineralisation.

In Chhattisgarh, Specialised Thematic Mapping is proposed in the following areas:

To understand the stratigraphy, structure, tectonometamorphic evolution and metallogenic aspects of eastern Bastar Craton.

To bring out tectonostratigraphy and metallogeny of Bilaspur and Raigarh belt To carry out basin analysis of Indravati and Chhattisgarh sedimentary basins

with a view to understanding the metallogeny, if any.

In Madhya Pradesh Specialised Thematic Mapping is proposed in the following areas:

In parts of Guna, Vidisha district to elucidate the stratigraphy and structure of the area to unravel various components of Deccan Trap and associated rocks to bring out a uniformity of nomenclature and to search for mineralisation.

Bijawar in parts of Chhattarpur and Sagar districts. Mahakoshal Group between Sidhi and Singrauli. Mahakoshal in parts of Shahdol and Sidhi districts. Bundelkhand Gneissic Complex in parts of Chhatarpur and Tikamgarh districts Bundelkhand Gneissic Complex in parts of Chhatarpur and Panna districts, Northern Region – 11000 sq. km In Uttarakhand Specialized Thematic Mapping is proposed in the following

areas: To build detailed lithostratigraphy, tectonic and mineralization in Almora,

Chamoli and Pithoragarh districts

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To build lithostratigraphy, biostratigraphic zonation of stromatolite with special reference to mineralization in Pithoragarh district

To establish stratigraphic status of volcano-sedimentary sequence of Bhimtal Formation around Padampur – Dalkandiya area for finding out control of basemetal mineralization

To establish the lithostratigraphy of the Siwalik Belt in parts of Uttarakhand

In Uttar Pradesh Specialized Thematic Mapping is proposede to establish contact relationship between Mahakoshal Group and Dudhi Granitoid complex in parts of Sonabhadra and Mirjapur districts with reference to understand the Au, Zr, W and associated mineralization

In Haryana Specialised Thematic Mapping is proposed in the following areas: To bring out detailed geomorphology to demarcate the extent of Flood Plain

and establish late Quaternary stratigraphy of Ghaghar River basin, Haryana and Punjab

To study geological and geoenvironmental aspects along the western bank of Yamuna River for understanding the causes of river degeneration and workout suitable rejuvenation strategy.

Structural mapping along Himalayan Frontal Fault in the foothills of Himalaya between Yamuna and Ghaghar Rivers in parts of Panchkula, Ambala and Yamuna Nagar districts for identifying active fault zones and their effects on drainage geomorphology.

Segregation of basement and intrusive components of the granitoids of Haryana for classification and minero-petrological characterization of granitoids and their implication on Proterozoic crustal evolution.

In Himachal Pradesh Specialized Thematic Mapping is proposed in the following areas:

To establish the lithostratigraphy of Siwalik belts and palaeoenvironment of Siwalik basin

To delineate limestone and dolomite bands in Krol Belt, Sirmaur district for quality assessment of cement and glass Industry

To establish stratigraphic status of Vaikrita Thrust sheet in relation to Kulu and Jutogh thrust sheets in districts Shimla and Sirmaur

In Jammu & Kashmir Specialized Thematic Mapping is proposed in the following areas:

To build up stratigraphic set up of Karakorum Group of rocks and its relationship with Karakorum granitoid complex and Shyok Tectonic belt.

To understand the geotechnical problems along the proposed Jammu-Udhampur - Qazigund rail line alignment

To understand the geotechnical problems along the road corridor between Lakhanpur-Thein-Basohli-Bani-Bhadrawah area in Kathua, Udhampur and Doda districts.

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Northeastern Region – 8000 sq. km In Assam Specialized Thematic Mapping is proposed to elucidate

lithostratigraphy / morphostratigraphy and neotectonic elements of quaternary sediments and to establish Neogene-Quarternary boundary.

In Meghalaya Specialized Thematic Mapping is propsed to elucidate the tectono-magmatic history, characterization of high grade metasediments and to know parentage of gneissic complex & granites

In Arunachal Pradesh Specialized Thematic Mapping is proposed to ascertain the detailed lithostratigraphy and contact relationship between Siyom Group and Ragidoke Formation and to establish tectono-sedimentary evolution of Gondwana and Siwalik Groups.

In Mizoram Specialised Thematic Mapping is proposed in Thinghinglian, Buhchang and adjoining areas in Aizal district and Bilkhawthlir dtsricts.

In Sikkim Specialised Thematic Mapping is proposed to establish the nature of proterozoic granitoids in Lingtse gneiss in Sikkim Himalayas

Eastern Region – 14,000 sq. km In Bihar, Specialised Thematic Mapping is proposed: In Chotanagpur granite gneiss and unclassified metamorphics between Pathra

and Sihuli in parts of Gaya and Aurangabad districts In Munger-Rajgir Group of rocks to examine the structural and stratigraphic set

up up around Barhmariya-Jamalpur area in parts of Lakhisarai, Jamui & Munger districts.

In Orissa, Specialised Thematic Mapping is proposed: around Kudarsahi- Kuchaiburi-Kuhisila, Mayurbhanj district in Contact zone of EGMB and Precambrian metasedimentaries in the east of

Rengalbera district to study crustal evolution in Binjbahal-Bhimkond-Samakud, east and south east of Malayagiri district for

study of the tectonic set up and nature of Malayagiri shear zone with an emphasis on metallogeny

In Jharkhand, Specialized Thematic Mapping is proposed: In North Singhbhum Mobile Belt in Ranchi and Saraikela-Kharsawan District

for locating favourable areas of copper and gold mineralisation. In Jamda-Koira belt of Iron-Ore Group in West Singhbhum district, with

special emphasis on locating favourable areas of iron and manganese mineralisation.

In Gorumahisani–Badampahar belt of Iron-Ore Group in East Singhbhum district, with special emphasis on locating favourable areas of gold & PGE mineralization

In Jamda - Koira belt and adjoining areas of Iron-Ore Group in West Singhbhum district, Jharkhand with special emphasis on locating favourable areas of gold mineralisation.

Western Region – 13,500 sq. km In Rajasthan Specialized Thematic Mapping is proposed in:

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Granitoid bodies of Aravalli Fold belt for identification of various phases of granitic activity and their emplacement with emphasis on their economic significance. (continued from XI Plan)

Along the Albitite line to bring out the tectonic significance and mineral potential of the albitite zone.

Porphyritic granite-alkali (albite rich) granite pluton and their mafic enclaves of Khetri and North Delhi Fold belts to work out the genesis, tectonics and mineral potential.

Mangalwar Complex and North Delhi Fold belt to work out the stratigraphic and structural relationship

Along transect within the basement rocks flanking Bhukia gold prospect to work out the regional stratigraphic set up.

In Banswara district to work out the stratigraphy of the Aravalli fold Belt and identification of potential areas for phosphorite and Manganese deposits

To identify and establish the greenstone-granite stratigraphy of the lower Aravalli volcanics and its tectonic setting

In Banswara district to workout the significance of volcanics and its role in mineralization of gold and graphite

In Sirohi district to bring out structure, tectonics of kimberlite-lamprophyre clan of rock in Delhi Supergroup.

To workout the deformational tectonics of the major shear zones their significance and metallogenic characteristics

In Sawai Madhopur- Indergarh area to identify facies changes and sea transgression/regression and sediment characteristics of various lithologies of Vindhyan Supergroup.

Mesozoic-Tertiary succession in Jaisalmer Basin with special emphasis on lithostratigraphy and structure

Study of different conglomerate horizons of Western Rajasthan for resolving stratigraphic problem.

In Gujarat Specialized Thematic Mapping is proposed in: In Kachchh to study and elucidation of alkaline and inetermediate alkaline

Mesozoic rocks and their weathering profiles for rare earth concentration Coastal dynamics study along eastern and southern coast of Saurashtra to

elucidate the evolution of coast of the Bhavnagar, Porbandhar and Junagarh

Southern Region – 17000 sq.km In Southern Region Specialized Thematic Mapping is proposed in the following

areas in the states of Andhra Pradesh, Karnataka, Tamil nadu and Kerala: Tectonostratigraphic and metallogenic study in Eastern Ghat belt, Andhra

Pradesh Basin Analysis of Cuddapah and Pakhal basin Evolution of Dharwar Craton, Karnataka Strutural, tectanomagmatic and metamorphic evolution of South Granulite

Terrain, Tamil Nadu Structural framework and kinematics of the major shear zones to locate

possible shear zones, Tamil Nadu

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Amphibolite facies to granulite facies transition zone in Krishnagiri-Kaveripattinam-Karimangalam Sector in Northern Tamil Nadu.

Granulite and associated rocks of Tirunalveli Block, South Granulite Terrain, Tamil Nadu

Structural studies in East of Kadavur basin in parts of Thiruchirapalli and Karur district, Tamil Nadu

Strutural, tectonomagmatic and metamorphic evolution of South Granulite Terrain, Kerala.

5.7.4. Geochemical Mapping :

Geochemical Mapping Programme, on the scale it is done in GSI, envisages a

regional geochemical survey and is likely to prognosticate regional geochemical anomaly of significant mineral commodities. Not only it picks up anomalies in known mineral belts, but also provides information of elemental concentrations in unknown or covered areas. It was originally envisaged that GSI will complete National Geochemical Mapping (NGCM) by the end of XIII Plan. Out of a total 8.13 lakh sq.km. area that encompasses 5.71 lakh sq.km area covered by host rocks/ formations of potential mineralization, GSI by the end of the XI Plan is likely to cover 2.30 lakh sq.km. In order to make a speedy coverage of regional exploration, for which geochemical survey forms a leading edge technology, the country needs to geochemically map the remaining 5.83 lakh sq.km. at a faster pace. With its limited human resource engaged in multi-variant activities, GSI need to share its burden with the State Directorate of Geology and Mining and also outsource the project (only the sampling part) in meaningful manner under its overall guidance, monitoring and quality control.

The first phase (Phase-1) of the nation wide Geochemical Mapping Programme in

India was initiated by GSI at the beginning of X Five Year Plan and will span over a period of XI, XII and XIII Five Year Plan.

The National Geochemical Mapping (NGCM) Project has completed nine years

since its inception in F. Y. 2002-2003 (F.S. 2001-2002). Up to March 2011 an area of 2,00,714 sq km which is about 24.69% of the total area [8.13 lakhs sq.km to be covered during phase I] has been covered. An additional area of about 12,439 sq. km is expected to be covered during the remaining part of XI Plan.

During the XII Plan, about 2,83,500 sq.km area spreading over 405 number of

toposheet is likely to be covered under Geochemical Mapping in the sectors given below. If the total area of NGCM has to be covered expeditiously i.e., by the end of XII Plan, then the remaining area left out to be covered is about 3 lakh sq.km which can be covered either by outsourcing or by service contracts.

Central Region – 63,000 sq.km;

Maharashtra Madhya Pradesh Chhattisgarh

90 - toposheet to cover the major parts of mineral belts in Central Region.

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Northern Region – 3500 sq.km;

U.P. Uttaranchal HP Punjab Haryana J&K

5 - toposheets to cover the parts of Peninsula and extra Peninsula in Northern Region.

North-Eastern Region – 5600 sq km

Assam Meghalaya Nagaland Tripura Arunachal Pradesh

8 toposheets to cover the parts of Peninsula, extra-Peninsula and Indo-Burma Arc in Northeastern Region.

Eastern Region – 47,600 sq km

West Bengal Sikkim Bihar Jharkhand Orissa

68 - toposheets to cover the major parts of mineral belts and extra Peninsula in Eastern Region.

Western Region – 44,800 sq km

Rajasthan Gujarat

64 - toposheets to cover the major parts of mineral belts in Western Region.

Southern Region – 1,19,000 sq km Andhra Pradesh Karnataka Goa Tamil Nadu Kerala

170 - toposheets to cover Peninsular Gneissic Complex, Proterozoic Cuddapah basin, granite-gneiss – greenstone terrain, magmatitic terrain with high grade supracrustals, Miopliocene, Quaternary sediments and laterite in Southern Region.

5.7.5. Geophysical Mapping :

Ground Geophysical Survey: Systematic ground gravity-magnetic mapping for the preparation of G-M maps of

the country in 1: 50,000 scale is the mission of GSI. This involves acquiring G-M data at an average frequency of one station per every 2.5 sq.km over the entire Indian shield, the Indo-Gangetic plain, the Eastern and Western Ghat areas including the coastal plains and other covered areas. However, this excludes the inaccessible terrains both in the extra peninsular regions and even over the shield. Such areas are expected to be covered by Heliborne Surveys by GSI.

Such coverage will pave the way for grass root level planning in prognostication of

potential areas for the exploration of metallic/non-metallic mineral deposits in addition to the demarcation of potential hazard areas from environmental point of view. Even 3D

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basin configuration and important geohydrological parameters can be mapped through such endeavours.

A total of an area of 1,53,151 sq. km has been covered under the project

Geophysical Mapping with a station density of 1 station per 2.5 sq km for the preparation of G-M maps at 1 - 2 mGal contour interval till 31.03.2011. An additional area of about 12,439 sq. km is expected to be covered during the remaining part of XI Plan. Thus by the end of XI Plan (31.3.2012) a total of 1,65,590 sq.km (OGP area covered is ~1,10,100 sq.km) area is likely to be covered.

During the XII Plan, about 2,23,250 sq.km area spreading over 320 number of toposheet is likely to be covered under Geophysical mapping in the sectors given below. If the total area of GPM has to be covered expeditiously i.e. by the end of XII Plan, as suggested by Chawla Committee report and Mackinsey report, then the remaining area left out to be covered is about 5 lakh sq.km which can be covered either by outsourcing or by service contracts.

Central Region – 51830 sq km

Maharashtra Madhya Pradesh Chhattisgarh

73 - toposheets to cover the major parts of mineral belts in Central Region.

Northern Region – 20700 sq.km

U.P. Uttaranchal HP Punjab Haryana J&K

30 toposheets to cover the parts of Peninsula and extra Peninsula in Northern Region.

North-Eastern Region – 8160 sq.km

Assam Meghalaya Mizoram Tripura Arunachal Pradesh

12 - toposheets to cover the parts of Peninsula, extra Peninsula and Indo-Burma Arc in Northeastern Region.

Eastern Region – 49680 sq km

West Bengal Bihar Jharkhand Orissa

72 - toposheet to cover the major parts of mineral belts and extra Peninsula in Eastern Region.

Western Region – 48960 sq km

Rajasthan Gujarat

72 – toposheet to cover the Pur-Banera and Rajpura-Dariba mineral belts in Western RegionSouthern Region – 43920 sq km

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Andhra Pradesh Karnataka Goa Tamil Nadu Kerala

61 - toposheets to cover Peninsular Gneissic Complex, Proterozoic Cuddapah basin, granite-gneiss – greenstone terrain, magmatitic terrain with high grade supracrustals, Miopliocene, Quaternary sediments and laterite in Southern Region.

Magnetotellurics (MT) survey: This survey technique is to be used for exploration covering parts of the mineral

belt in order to differentiate various rock types. This will help to identify the host rock(s) of mineralization which is being unique in each mineral belt.

MT will be used for various basemetals (nickel) and precious metals exploration,

as well as for Kimberlite mapping for targeting diamond. 5.7.6. Airborne Surveys :

The newly constituted Remote Sensing and Aerial Survey Division (RSAS) of Geological Survey of India (GSI) is mainly engaged in activities of erstwhile AMSE Wing and Photo-geology & Remote sensing Divisions. The major activities of the Division include Multisensor aerogeophysical surveys by TOASS for acquisition of magnetic and gamma ray spectrometric data, processing and interpretation of data to identify the aerogeophysical anomalies and preparation of the aerogeophysical maps. The interpreted aerogeophysical data is further integrated with remote sensing data on GIS platform and thereby target areas are identified. Airborne geophysical surveys operation enables rapid scanning of large tracts of diverse terrain, particularly covered and inaccessible areas, thereby prognosticating favourable locales for concealed natural resources including mineral and oil deposits. The GSI aircraft (TOASS) is fitted with dedicated equipment for geophysical survey (magnetic, electromagnetic and radiometric) for better understanding of the ground geology. The facilities are used for collecting information to interpret subsurface geology required for the refinement of geological maps and to delineate conductive zones, which may indicate presence of mineralized zones, ground water aquifer etc. This is to be followed up by extensive ground survey to select the target areas for further exploration.

Twin-Otter Multisensor Airborne Surveys:

The work programme for Twin-Otter Multisensor Airborne Surveys has been

planned for covering an area of 76,000 sq.km involving about 1,50,000 line km with traverse spacing of 500m, keeping in view the scientific needs and demand for surveys vis-à-vis availability of infrastructure. The details of the areas to be taken up during this plan are given below:

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Multisensor Airborne Geophysical Surveys in different parts of the country Sl. No.

Region Proposed items

background

Location (Lat./ Long.)

Quantum of coverage (Sq km)

Objective

1. Western Region

Alwar area, parts of Rajasthan

26046’-28015’N 76000’-77030’E

13,922 To aid mineral investigation and refinement of geological maps.

2. Western Region

Neem ka Thana 26010’-28000’N 74056’-76000’E

6,704 - do -

3. Western Region

Banswara-Udaipur

23008’-25030’N 73056’-76000’E

18,838 - do -

4. Western Region

Khetu 27022’30”-29000’N 74025’-75045’E

11,963 - do -

5. Western Region

Marwar 25030’-28000’N 73030’-75000’E

15,572 - do -

6. Central Region

Chandrapur-Gadchiroli

20000’-20045’N 79030’-80000’E

4,290

7. Central Region

Chandrapur-Gadchiroli

20000’-20030’N 80000’-80015’E

1,430

Identification of target areas for multi-metal surveys including gold and also for diamond investigation.

8. Southern Region

Chitradurga Schist Belt

14014’-15004’N 76026’-76055’E

1,150 To aid search of concealed sulphide ore bodies.

9. Southern Region

Shimoga Schist Belt

13055’-14000’N 75035’-76000’E

1,200 To aid identification of mineralized zones.

10. Southern Region

Hutti-Maski Schist Belt

15042’42”-16018’24”N 76036’20”-76055’E

1,050 sq.km To aid search for sulphide ore bodies associated with gold mineralization.

11. Western Region

Kuchchh area 23010’-24000’N 69015’-71000’E

30,000 l.km To map intrusive bodies in the area to understand crust mantle relation due to high seismic area.

12. Southern Region

Northern part of Jonnagiri Belt

15015’-17000’N 76030’-78000’E

To aid search for kimberlite/ lamproite bodies.

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13. Southern Region

Dharmapuri suture rift zone, Tamilnadu

12000’-13000’N 78015’-79000’E

15,000 l.km To identify areas for mineral targeting.

14. Central Region

Abujmar-Sonakhan belt of Bastar Dist., MP

19000’-22000’N 80030’-83000’E

To aid geological mapping and identify areas for mineral targeting.

15. Central Region

Balrampur Fault zone in Surauja & Sidhi dist., MP & Chhattisgarh

Parts of degree sheets 64 I, M & E

- do -

16. Central Region

Extension of Nagpur-Raigarh shear zone in west below Deccan Traps in parts of Maharashtra & Chhattisgarh

Parts of sheets 46 K, O, P; 55 P, H, L & K.

Base metal targeting.

17 Southern Region

Coimbatore-Erode area of Tamilnadu.

10030’-11030’N 76040’-78015’E

25,000 l.km 12,500 sq.km

To aid mineralization.

5.7.7. Heliborne Surveys :

The RSAS has acquired the civil version of HAL made Dhruv helicopter along with Heliborne geophysical sensor from Pico envirotec, Canada during the XI plan period comprising five on board sensors including magnetic, gravity, Time Domain Electromagnetic (TDEM) and gamma ray spectrometric and Hyperstral system for low altitude, detailed geophysical surveys at close traverse intervals in order to detect shallow level, concealed geological bodies of relevance. These high resolution surveys are to be taken up primarily based on geological considerations, potential areas identified through interpretation of multisensor aerogeophysical data collected by TOASS and in areas that cannot be surveyed by TOASS due to technical and other constraints. The heliborne geophysical survey systems is in the process of integration and installation and will be operational during XII Plan after successful completion of the test survey evaluation of the performance of the sensors.

The heliborne surveys are planned for low altitude, detailed geophysical surveys at

close traverse intervals in order to detect shallow level, concealed geological bodies of relevance. The heliborne surveys are planned over the Aladahalli-Nuggihalli area (Test area) for comparison of this data with that of TOASS data acquired during 1986-87. The heliborne surveys will be taken up over the six selected blocks during XII Plan. However, the Dhani-Punagarh area, Pali District, Rajasthan, having about 15,000 lKm, will be flown during the last year of the XI plan as per the F.S, 2010-12, subject to the

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availability of the Helicopter after the integration of the sensors and also if survey over test area is successfully completed.

Sl. No.

Proposed items

background

Proposed items background

Location (Lat./Long.)

Quantum of coverage (*)

Objective

1. Southern Region

Shimoga Schist Belt Karnataka

14000’-14°30’N 75°00-76°00E

600 sq.km For Gold Exploration

2 North-Eastern Region

Naga Hills, Ophiolite Belt parts of Nagaland And Manipur States.

1500 sq.km To aid in locating areas

for mineral targeting

3 Northern Region

Bara-Sigri in Lahaul-Sipti, UP

800 l.km 400 sq.km

- do -

4. North-Eastern Region

Foothills of Arunachal Pradesh

24000’-26000’N 92000’-95000’E

8,000 l.km 4,000 sq.km

To enhance regional

geological database and to delineate

areas for mineral

targeting. 5. North-Eastern

Region Brahmaputra valley and Schuppen belt of Nagaland, Ophiolite belt of Nagaland and Manipur.

25000’-27000’N 94000’-97000’E

6. North-Eastern Region

Khasi-Jaintia hills block, Meghalaya

25000’-26000’N 91000’-93000’E

30,000 l.km 15,000 sq.km

To aid regional geological

mapping and to help identify

areas for mineral

targeting. 7 North-Eastern

Region Garo hills district of Meghalaya and adjacent parts of Brahmaputra valley

25010’-26030’N 89010’-90050’E

24,000 l.km 12,000 sq.km

- do -

8 North-Eastern Region

Karbi-Anglong block, Assam

24040’-26040’N 92045’-93050’E

16,000 l.km 8,000 sq.km

- do -

9 Southern Region

Bhadrachalam area, AP.

To aid search mineral

targeting. 10. North-Eastern

Region Tyrsad-Barapani shear zone, Meghalaya

2,400 l.km 1,200 sq.km

To know the configuration of shear zone

and locate auriferous

zones

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11. North-Eastern Region

Dudhnoi-Ronjang lineament zone, Meghalaya

1,600 l.km 800 sq.km

Polymetal targeting

12. North-Eastern Region

Umpyrtha-Rajapara area, Meghalaya

2,000 l.km 1,000 sq.km

Basemetal targeting.

13 Southern Region

Salem-Ottakamand And Dindigul area (south of Coimbatore), TN

11000’-12000’N 76040’-78015’E and 10000’-10030’N 76040’-78015’E

20,000 sq.km - do -

(*) Generally there is an overlap of about 10% due to looping and connecting the survey lines. The actual total coverage will be extra L.km than the envisaged targeted line km. 5.7.8. National Aeromagnetic Mapping Program:

Aeromagnetic survey is an important stage between the data and the resource discovery and used as a reconnaissance tool to aid in geological mapping and determination of strategy for finding buried deposits under cover of overlaying soil, weathered and loose rock and water. The surveys are useful for bringing out regional geological setting and deciding the strategies for exploration along the extension of the mineral prospects. National Aeromagnetic Mapping Program is for taking up aeromagnetic (Total Field) surveys on uniform scale and on national level covering the different parts in systematic way as a joint endeavour of different Government organizations with possible public private participation for producing seamless aeromagnetic map of India. Considering the enormity of the task with area, time and budget the surveys are prioritized over different parts of the country in following manner:

Peninsular plateau including coastal plains Northern mountains including Himalayan region Northern Great plains Territorial waters Exclusive Economic Zone (EEZ) The objective of the aeromagnetic survey is for preparation of seamless

aeromagnetic map of India at altitude level of 120m and line spacing of 500m for geological mapping, mineral exploration, structural and tectonic studies. Expert committee in their report suggested for line spacing as per the terrain and suggested 250m line spacing which is under consideration.

The data which will be coming out of aeromagnetic survey are: Aeromagnetic (Total field) data-sets Varieties of filtered magnetic maps Depth to magnetic sources Combine interpretation maps (incl. basement lithology) GSI, RSAS, Division, Bangalore will be the Nodal agency and in collaboration with

different stake holders such as AMD, NGRI, ONGC, DGH, Oil India etc., this project is proposed to be initiated in XII Plan and completed in XIII Plan. Ten fixed wing planes are likely to be deployed through outsourcing for coverage of peninsular India, coastal plains

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and Northern mountain regions. The first phase spanning the XII Plan shall be covering Peninsular India (Peninsular plateau and the coastal plains) and Northern mountain regions, starting with Deccan trap covered area and the total Project cost is expected to be around Rs.1900 crores for over five years. A total of 22,70,000 sq km area is likely to be covered during the XII Plan by carrying out two sorties per day. The prioritization of the area and the quantum of work to be carried out year wise are to be finalized in the expert committee meeting and as per that Detailed Project proposal planned. Year-wise break up of the likely aeromagnetic survey work for XII Plan is as follows:

Field Season Area to be covered

2013-14 Aerogeophysical survey of area under cover of Deccan traps. 2014-15 Aerogeophysical coverage of area under cover of Deccan

traps and continuation over rest of peninsular plateau and coastal plains.

2015-16 Continuation of aerogeophysical surveys over peninsular plateau and coastal plains.

2016-17 Aerogeophysical surveys over Northern Mountain regions.

5.7.9. Hyperspectral Survey :

Remote sensing technique using Hyperspectral (mainly airborne) are being used as an important tool for mineral exploration, particularly the hydrothermal alteration zones where country rocks get altered into distinct mineral assemblages. Many ore bodies are generated from hydrothermal solutions that invade and chemically alter host rocks with development of distinctive zones of secondary mineral assemblages. These zones are considered valuable indicators of possible ore deposits. Identification and delineation of hydrothermal alteration zones have long been the important task of field and laboratory workers. Hydrothermally altered country rocks associated with secondary minerals in distinct sequences are recognisible in various spectral bands of remote sensing data. Multispectral remote sensing using Landsat TM/ETM+ data is useful for recognizing these altered zones.

GSI proposes to carry out a National Programme on application of Hyperspectral

remote sensing in different mineralized zones of India showing hydrothermal alteration with following objectives:

Delineation of mineralized zone using multispectral data. Studying the pattern of alteration using space borne Hyperion/ airborne

AVIRIS or HyMAP and Field Spectrometer. Building up of spectral library on the alteration/mineralized zone, and Application of the results in extension/virgin areas.

Infrastructure at the regional levels have to be developed as far as the three

components are concerned, i.e., Spectroradiometer, data processing software, Hyperspectral remotely sensed data. Initially, spectral library is to be built by spectroradiometer, and then/or simultaneously space borne and Airborne Hyperion data

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with specific spectral range (necessary for geological objects) are to be procured and utilized.

GSI has taken up Pilot Projects of Hyperspectral Mapping during the XI Plan. This

work is to be continued during the XII Plan. Besides, during XII Plan GSI is proposing to create a terrain wise spectral library for all the Obvious Geological Potential areas. 5.7.10. Geomorphological and Lineament Mapping :

National Mission on Geomorphological and lineament mapping on 1:50,000 scale

was initiated in the XI Plan (2008) as a collaborative programme involving, GSI, Department of Space (DOS) and other similar organizations. Accordingly a project for National Geomorphological Mapping on 1:50,000 scale with three years duration was taken up with GSI and ISRO as nodal agencies for quality and execution. The entire work is to be carried out through outsourcing and 32 partner institutes under the control of NRSC as working centres. Work of each partner institute will be supervised by mentor engaged by NRSC, whereas NRSC and GSI will provide legacy data, carry out external quality check both on pre and post field maps and will also assist the work centres in carrying out their work as per the programme. GSI till 31-3-2011 has completed quality checking of about 100 toposheets and likely to complete another 500 sheets by the end of 31-03-2011. During the XII Plan, GSI is proposing to do quality checking (Pre and post field) of 4400 toposheets. 5.8.0. MISSION-II: A. MINERAL RESOURCE ASSESSMENT IDENTIFICATION OF

NATIONAL MINERAL PRIORITIES:

With the help of baseline geo-science data, Geological Survey of India has identified an area of 5.71 sq km as obvious geological potential (OGP) for scheduled 1C & 1A (coal & lignite) minerals, most of the area of which is located in Peninsular part of India. Commodity-wise identification and demarcation of these domains has been done and mineral discoveries, which have been or are currently being exploited, occur within these belts. Still substantial area within the potential geological domain is left, which needs systematic exploration for a proper assessment of their potential for different mineral commodities. The major part of the exploration activities of GSI during the XII Plan period will be concentrated in these known mineral belts with a thrust towards locating minerals in which the country is deficient. A. Basemetals:

In India basemetal occurrences are mainly hosted by supra-crustal rocks and granitoids of late-Archaean and early Proterozoic ages. This type of geological environment for hosting basemetals occupies an area of 1,82,000 sq km and is confined to mineral belts of Rajasthan, Jharkhand, Madhya Pradesh, Maharashtra, Gujarat, Andhra Pradesh, Karnataka, West Bengal, Sikkim and Orissa.

Exploration programmes of GSI for basemetals during the XII Plan are largely to

be pursued in some of these belts. Through ground survey, a total area of 4500 sq km is proposed to be covered by Large Scale Mapping (scale-1:10,000 to 1:12,500) or

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Specialized Thematic Mapping (1:25,000 scale) and 45 sq km by Detailed Mapping (scale-1:2000). Total target for Pitting and trenching is proposed as 6,000 cubic meter and for drilling 75,000 meter. The state-wise areas, in which the items are likely to be proposed, are as follows:

1. Rajasthan: Thrust areas include gap areas of earlier reported prospects of

North Delhi Fold belt (Mina-ka-Nangal, Patan, Dokan, Baniwala-ki-Dhani, Dariba and Nim ka Thana-Patan Belt and their further north eastern extension and southwestern extensions i.e. i) Mahawa South Block, Sikar district; ii) Nanagwas block, Sikar district, iii) Dariba North Block, Sikar district iv) Bichhu ki Dhani, Sikar district, v) Nathuwala Block, Sikar district, vi) Khera Block of Mundiyawas-Khera area, Alwar District and vii) Maton-Umra-Parola area, Udaipur District.

Other thrust areas are West of Khetri, Pur-Banera Belt and South Delhi Fold Belt.

The investigations to be carried out by GSI are i) west of Khetri Copper Belt in aeolean sand covered area (concealed deposit), ii) Devimata Pipaldaran area, north of Zawar, Udaipur district, iii) Dantlia Block, Udaipur district, iv) Bhimana Block, Sirohi district, v) Ghugra, Namukiya ki Dhani and Ararka, Ajmer district, vi) Dhulkhera West-Suras Block and Devpura Block of Pur-Banera Belt and vii) the area between Bokri-Malwali prospects, Khetri Copper Belt.

2. Maharashtra: In Sakoli Fold Belt, the proposed items will be from i) Chamurshi

area, Gadchiroli district, ii) Gangajhari area, Bhandara district and iii) Thanewasna area, Chandrapur district ( to prove deeper continuity of the proved existing lode).

3 Madhya Pradesh: Investigation for basemetal is proposed in Ratwar area, Sidhi

district. 4 Chhattisgarh: Investigations are proposed within the Precambrian Metamorphic

Belt of Chhattisgarh in i) Dompahar area, Bilaspur district and ii) Bothapani area, Mahasamund district.

5. Haryana: Two investigations proposed in North Delhi Fold Belt in Haryana are i)

north of Bakrija, Mahendragarh district and ii) unexplored areas near Dantal-Binahari-Thanawas, Begopur and Bathota-Ki-Dhani areas, Mahendragarh district.

6.Uttarakhand: Bhandarigaon-Kothera-Gangolihat area, Pithorgarh district 7. Meghalaya: An investigation for basemetal is proposed in the area between

Chokagiri and Rongkhinggiri, East Garo Hills. Same programmes are also proposed in the States of Gujarat, Himachal Pradesh,

Jammu & Kashmir, Andhra Pradesh, Karnataka, Tamil Nadu, Jharkhand, Orissa and Sikkim.

B. Gold: Gold mineralisation in India has been established to occur in diverse geological

environment, and an area of about 1,12,000 sq km has been prognosticated as potential geological domain of gold bearing belt in peninsular India distributed in the states of

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Rajasthan, Gujarat, Karnataka, Andhra Pradesh, Tamil Nadu, Kerala, Goa, Maharashtra, Orissa, West Bengal, Jharkhand, Bihar, Madhya Pradesh, Chhattisgarh and Uttar Pradesh,. These are similar to known gold hosting geological environments all over the world. The potential geological environments for primary and secondary gold prospects recognized so far are as follows:

Aravalli Fold Belt (Rajasthan and Gujarat) – Bhukia-Delwara Belt Southern greenstone province(Karnataka, A.P., Tamil Nadu and Goa) Sakoli fold Belt (Maharashtra) Gorumahisani and Badampahar Belt(Orissa) Singhbhum Fold Belt(Jharkhand, Orissa, West Bengal) Kotri Volcanic Belt (Chhattisgarh) Sonakhan Belt (Chhattisgarh) Mahakoshal Fold Belt (Madhya Pradesh and Uttar Pradesh) Waynad, Nilumbar and Attapadi Valley (Tamil Nadu and Kerala) Malanjkhand (Madhya Pradesh):

Besides, incidences of gold have also been reported from the Proterozoic

Supracrustal Belts of Darjeeling-Sikkim Himalayas and the metamorphites of the Almora Group, Ramgarh Group and Bhimtal Formation in the Lesser Himalaya. Secondary gold in laterite is reported in lateritic caps over supracrustal rocks of southern, central and eastern India and also occurrences of placer gold in fluviatile sand is reported in the Peninsular and sub-Himalayan areas.

During the XII Plan, exploration efforts would continue in the un-explored territories

of this geological assemblage and also in the areas which have indicated mineralization. The belt where gold exploration likely to be carried out during XII plan is as follows:

Peddavura Schist Belt and surrounding PGC terrain, Nalgonda and Guntur districts, Andhra Pradesh

Veligallu Greenstone Belt, Cuddapah district, Andhra Pradesh Extension areas of Mailaram, Khammam district, Andhra Pradesh Extension areas Bandalamattu, Nallakonda and Dukonda, Guntur district Cuddapah Supergroup Kurnool and Cuddapah district, Andhra Pradesh Western contact of Ramagiri Schist Belt, Anantapur district of Andhra

Pradesh. Chitradurga Schist Belt, Tumkur district, Karnataka Other Schist Belt in Karnataka and Goa. Mahakoshal Belt in Uttar Pradesh Betul Belt in Madhya Pradesh. Singhbhum Copper belt in the states of Jharkhand. Aravalli Fold Belt of Rajasthan. Himalayan region in Uttaranchal.

Some programmes are also proposed in the States of Uttar Pradesh, Arunachal Pradesh, Kerala, Tamil Nadu, Bihar, Orissa and Chhattisgarh.

The regional exploration work proposed involves 3900 sq km LSM and 30 sq km DM,

15600 cu m PT and 32,000m of drilling.

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C. Diamond:

Geographic distribution of different known diamond occurrences and their source rocks reveal that they are confined to Peninsular India, which comprises four cratonic masses namely Dharwar, Aravalli-Bhundelkhand, Singhbhum and Bastar. The Narmada–Son lineament, Godavari rift and Mahanadi rifts separate this cratons. The host rocks identified for diamonds are the paleo-proterozoic Sakoli conglomerates in Maharastra, neo-proterozoic Cumbum pebbly sandstone in AP, neo to meso-proterozoic (1300-1100 Ma) lamproites and kimberlites in AP, Karnataka, Chattisgarh, MP and Orissa. Host rocks of Neo-proterozoic are Vindhyan and Banganapalli conglomerates in MP and AP respectively, Jurassic Gollapalli sandstone/conglomerate in AP, Cretaceous lamproites dykes intruding the Gondwana coal fields in Jharkhand and Quaternary gravels in AP, MP and Orissa.

GSI has tentatively identified about 3 lakh sq km area in the four cratons as most

potential area for search of diamonds including other gemstones in India. For diamond exploration on a regional scale Archaean cratons are the most promising areas and includes both primary (Kimberlites/Lamproites) and secondary source rocks (conglomerates and gravels) for diamond which are grouped into 3 regions: i)South Indian tract of Andhra Pradesh(SIDP), comprising Archaean age Dharwar craton ii)Central Indian tract of Madhya Pradesh(CIDP) comprising Bundhelkhand and Bastar craton and iii) Eastern Indian tract of mostly Chhattisgarh and Orissa (EIDP), lying between Mahanadi and Godavari valleys comprising Singhbum craton.

Based on the known diamond occurrences, diamond-host rocks and geological

and tectonic set up, potential/ promising area identified for search of kimberlites and lamproites are as follows:

Granite-greenstone terrain hosting the known Wajrakarur, Raichur and

Narayanpet kimberlite fields in Andhra Pradesh and Karnataka and adjacent areas.

Area occupied by the Nallamalai Fold Belt in the eastern part of the Cuddapah Basin.

Area between the north eastern corner of the Cuddapah Basin and the Pakhal Basin, particularly occupied by the Munneru, Dindi and the Paleru river basins.

Western part of the Bastar Craton in Maharashtra Areas occupied by the Mainpur and Tokapal kimberlite fields and marginal

areas occupied by the Chhattisgarh, Pairi-Khariar, Singora, Indravati, Sabari and Albaka sedimentary basins in Chhattisgarh Basins.

Area adjoining the Raigarh metamorphic belt in Chhattisgarh. Granitic terrain adjoining the Khariar sedimentary basin in Orissa Areas covered by the Ib, Tel and Mand river basins in Orissa Panna Diamond Belt and its surrounding Bundelkhand Granite terrain in

Madhya Pradesh and Uttar Pradesh.

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During XII Plan search for kimberlite/lamproite, the source rock for diamond would continue in the some of the above mentioned potential geological domain involving about 30,000 sq km reconnaitory mapping, 2200 cu m of P/T and 4000m of drilling. D. Platinum Group of Elements (PGE)

Platinum group of Elements/Metals (PGE/PGM) (Pt, Pd, Rh, Ru, Os, Ir) are the rarest of precious metals in the earth’s crust. These metals are recovered from a few primary deposits and as byproduct in Ni-Cu production. Obvious Geological Potential area identified by GSI for PGE is 8000 sq km in Peninsular India which comprises Baula-Nuasahi Belt of Orissa; Sukinda Belt of Orissa; Roro-Jojohatu Belt of Jharkhand; Layered Ultrabasic-basic Complexes of Andhra Pradesh; Sittampundi, Karugalpatti, Sirlapalle and Korapudi complexes of Tamil Nadu; Layered complexes in greenstone belt of western Dharwar Craton and meta-ultramafic complexes of Maharashtra, Madhya Pradesh and Chhattisgarh. Ophiolite belts of Cenozoic age in the Extra Peninsular India and Andaman-Nicobar islands also attract attention for PGE mineralisation.

During the XII Plan period the reconnaissance and prospecting stage

investigations of GSI are proposed with a total target for Large Scale Mapping or STM 6000 sq km, Detailed Mapping of 60 sq km, drilling 31,200 m and P/T of 15,000 cu.m in the States of Tamil Nadu, Kerala, Maharashtra, Madhya Pradesh, Andhra Pradesh, Karnataka and Jharkhand. The details of which are as follows:

1. Tamil Nadu: Exploration for platinum group of elements in Sittampundi Ultramafic

Complex, Tamil Nadu Exploration for for PGE in part of Mettupaliyam Ultrmafic Belt, Tamil Nadu

2. Kerala: PGE in the ultramafic/ mafic rocks of Nilambur valley in Malappuram District,

Kerala. PGE in the ultramafic/ mafic rocks around Adakkathodu, Kannur District,

Kerala. Preliminary investigation for PGE in the ultramafic/ mafic rocks in Karthikulam

and Kalavalli areas, Wayanad District Preliminary investigation for PGE in the ultramafic/ mafic rocks around

Kalpetta, Wayanad District. 3. Jharkhand:

Jojohatu-Tonto area, West Singhbhum District; Dublabera-Kunderkocha area, East Singhbhum District;

4. Maharashtra: Akeri, Khardewadi, Malewadi, Niguda, Kunkavle areas, Sindhudurg district.

5. Madhya Pradesh: Rakhabdev ultramafic suites in Alirajpur district.

6. Andhra Pradesh: Northern part of the western margin of Ramagiri Schist Belt, Anantapur District,

Andhra Pradesh. Chimakurthy Area, Prakasham District, A. P. Chimalpahad Ultramafic Complex, Khammam District, A. P.

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Kondapalli Area, Krishna District, A.P. Nellore Schist Belt, Nellore District, A. P.

7. Karnataka: Ultramafic intrusives in Dharwar and Sargur schist Belts Some items are also proposed in the States of Arunachal Pradesh, Bihar,

Chhattisgarh, Gujarat, Orissa, Uttar Pradesh, Jammu & Kashmir, Nagaland and Manipur. E. Bauxite:

Bauxite resources are dominantly located in the Peninsular area. The Obvious Geological Potential area for bauxite is 30,000 sq km which comprises East Coast Belt, bauxite belts of Madhya Pradesh, Orissa and Chhattisgarh (Amarkantak, Mainpat, Pendrapat and Phutkapahar), bauxite belt of Maharashtra (Sindhudurg district), and bauxite belt of Konkan, bauxite belt of Gujarat, Karnataka, Kerala and Goa.

During XII Plan period investigations for bauxite with 250 sq km Large Scale Mapping, 8 sq km of Detailed mapping and 6400m of drilling is likely to be proposed in the States of Chhattisgarh, Gujarat, Madhya Pradesh, Jharkhand. And Andhra Pradesh

F. Iron Ore:

Major iron ore deposits in India, distributed in several geographical locales are grouped under five zones designated as Zone – I to Zone-V, have been identified in the country on commercial ground which are as below: Zone I- Occur in the Bonai Iron Ore ranges of Jharkhand, Orissa and adjoining areas of eastern India. This also includes Gorumahisani-Badampahar, Tomka-Daiteri belts. Zone II – Comprises the iron ore deposits in the long (225 km.) North-south trend in linear belt in central India in the states of Chhattisgarh, Madhya Pradesh and Maharashtra (East) Zone III – Occur in Bellary –Hospet region of Karnataka. Zone IV – Includes the rich magnetite deposits of Bababudan –Kudremukh areas of Karnataka Zone V – Cover the rich iron ore of Goa and coastal Maharastra

In addition, magnetite rich banded magnetite quartzite occurs in parts of Andhra Pradesh, Rajasthan, Tamil Nadu and Kerala.

Iron ore occurring in different geological formation, if assessed, will augment the

iron ore resources of the country. Hence there is scope for assessment in new areas and reassessment in the areas where mining is under operation or under active consideration. The future exploration activities have to be carried out to augment resources over the known deposits which were not explored earlier in totality and in greenfield areas of geologically potential domains.

The total potential area for iron ore in different geological domains tentatively

identified in the country is around 8000 sq km. It includes around 7000sq km potential domain in peninsular India and around 1000 sq. km in extra Peninsular regions of the country. These potential areas are mainly those geological domains where BIF, which is the host rock for iron ore, are exposed. Out of the potential areas of 7000sq km, the area

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explored is around 5900 sq. km. As very scanty and marginal investigation has so far been carried out in the extra peninsular region of J&K state and Himachal Pradesh, the bulk of 1000 sq km potential area in the extra peninsular India may be treated as greenfield areas. Thus the total greenfield areas within the tentatively identified potential areas in both Peninsular and extra-Peninsular region is around 2000 sq km which is to be assessed by reconnaissance mineral investigation under green field area exploration. The remaining explored 6000 sq km area of the potential domain within the peninsular India warrant reassessment.

During XII Plan search and reassessment for iron ore would continue in the some

of the above mentioned potential geological domain involving about 2100 sq km Large Scale mapping or STM, 20 sq km Detailed Mapping, 3800 cu m of P/T and 9000m of drilling.

G. Manganese ore Manganese ore is an important material required in iron and steel industry. A good

number of manganese ore provinces are located in Peninsular India which includes deposits of Madhya Pradesh and Maharashtra, Orissa, Karnataka, Andhra Pradesh and Goa. Two states namely Karnataka and Orissa dominate the reserve of manganese ore. An area of about 4600 sq km has been tentatively identified as potential geological domain of manganese belt which comprises the following: 1. Sandur Fe-Mn-Au zone(Karnataka): 2. Chitradurga polymetallic (Fe, Mn, Au) zone(Karnataka): 3. Shimoga Fe-Mn,Cu,Fe (Ti,V)(Karnataka): 4. Goa Fe-Mn belt: 5. Sausar Mn Belt (Maharashtra): 6. Bonai-Noamundi Fe-Mn province(Jharkhand & Orissa): 7. Eastern Ghat Mn-Al province(Orissa & A.P.): 8. Gangpur Mn Province(Orissa)

Although India has substantial amount of metallurgical grade manganese ore but

chemical grade and battery grade ores are rare. Consumption pattern and future needs of metallurgical grade manganese also indicates that the resource position is reaching critical stage and requires augmentation. Search for metallurgical and chemical grade manganese ores in the extension areas of known mining districts and geologically potential belts would continue during the XII Plan period involving LSM (950 sq km) or STM, DM (10 sq km), Pitting-Trenching (5000 cum) and Drilling (4800m). Exploration activities would be focused in the following areas.

1. Orissa:

Bonai-Kendujhar belt and In a narrow manganiferous zone between Munigurha in south and Hardatal in

the north constituting the south-central segment of the Eastern Ghats Granulite belt in Orissa.

2. Maharashtra: Sausar belt, Nagpur district

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Some items are also proposed in Jharkhand, Andhra Pradesh and Karnataka. H. Chromite The Indian chromite deposits occur in three distinct associations, which are as follows: Geological association Distribution of deposits Archaean Greenstone association

Sukinda and Nuasahi in Orissa. Sinduvalli and Byrapur in Karnataka, Bhandra and Ratnagiri in Maharashtra, Roro and Jojohatu in Jharkhand and Ponda-Dudsagar area in Goa.

Proterozoic Granulite association

Kondapalli in Andhra Pradesh, Sitampundi complex in Tamil Nadu.

Mesozoic Ophiolite association

Chromite occurrences in Manipur, Nagaland, Andaman & Nicobar islands and Jammu & Kashmir.

The economically important chromite deposits are mainly restricted within the

Archean greenstone belts. The distribution of the chromitites is very irregular and they occur as massive, disseminated, granular and nodular types, the latter being characteristic of chromites in ophiolites

In India there is no reported occurrence of large chromite deposit of typical

‘Bushveld type’. However the occurrence of stratiform chromitites in Archean greenstone belts (e.g., Nuggihalli, Nuasahi, Sukinda) and in high-grade terrains (e.g., Sittampundi, Kondapalli) are presumably genetically linked with high-Mg parent melts that characterized the Archaean magmatism.

The assessment of exploration status reveals that the total potential area of chromite includes 2690 sq.km in Peninsular India and 306 sq. km in Extra Penninsular Region.

In the unexplored areas investigations will be carried out during XII plan involving

large scale mapping (750 sq km), detailed mapping(6 sq km),Pitting-trenching (1500 cum) and drilling(2000m) in the following areas:

1. Tangeria- Maulabhanj- Bhuasuni Parbat, Chandar area and laterite covered zone to the south of Sukinda- Maruabil in Orissa.

2. The ultramafic/ mafic rocks of Khammam District, Andhra Pradesh I. Rare Metals (RM) and Rare Earth Elements (REE)

Rare metal mineralization occurs in diverse geological set ups. The primary mineralization can be classified as (a) felsic volcanic hosted, (b) granite hosted, (c) pegmatite hosted and (d) alkaline ultramfic carbonatite complex hosted. In India, Rare Earth Elements are produced principally from by-products of beach sand mining. The geological provinces favourable for RM/REE mineralization, which deserve attention, are as follows:

(a) Bihar mica belt of Jharkhand and Bihar, (b) Bhilwara mica belt, Rajasthan, (c)

Tin belt of Orissa and Chhattisgarh, (d) Chhotnagpur Gneissic Complex in Jharkhand and West Bengal,(e) Bundelkhand Granitoid Complex (f) Nellore mica belt, Andhra Pradesh

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and (g) Jalore and Sewaria granitoid terrain in Rajasthan, (h) carbonatite and molybdenum bearing areas in Tamil Nadu and (i) Sung valley, Meghalaya.

During the XII Plan, search for RM and REE proposed to be taken up with 3000 sq

km Large Scale Mapping and 10 sq.km Detailed Mapping in (i) major pegmatites of central and southern Tamil Nadu in Karur, Dindigul, Trichinopally, Kanyakumari and Tirunelveli districts. (ii) REE in BIF of Bundelkhand Granitic Complex, Lalitpur district, U.P. and in the States of Andhra Pradesh, Jharkhand, West Bengal, Orissa, Rajasthan, Gujarat and Meghalaya. J. Strategic Minerals (Tungsten, Molybdenum, Nickel) a) Tungsten:

The geological domains so far identified by GSI for tungsten are: i). Extension areas of Degana, Balda-Dewa ka Bera and Bar-Babra belt in

Rajasthan, ii). In hydrothermally altered zone associated with gold mineralization in Uttar

Pradesh and iii) Western part of Sakoli Fold belt of Maharashtra. During the XII Plan period investigation for tungsten are proposed in the following

areas: 1. Maharashtra: Inzewara area, Bhandara district. 2. Uttar Pradesh: Investigation for tungsten mineralisation in the rocks of

Mahakoshal Group, Mahwariya area, Sonbhadra district,U.P 3. Uttarakhand: Investigation for tungsten mineralisation in Jaurasi-

Dharapani area, Almora and Chamoli districts, Uttarakhand 4. Besides, GSI along with DMG, Rajasthan, DMRL and AMD are actively

considering taking up tungsten investigation along the western part of the South Delhi Fold Belt in Rajasthan.

b) Molybdenum: The geological domains important for the search of molybdenum are:

i). Extension areas of Bhabani-Harur-Uttangarai belt, ii). Hydrothermal setting in Bundelkhand granitoid complex.

Investigations proposed by GSI for molybdenum during XII plan is in Harur-Uttangarai Belt, Dharmapuri district, Tamil Nadu.

c) Nickel: In India, so far, no substantial magmatic Ni-Cu sulphide resource has been

identified despite local abundance of potential host rocks. In India, nickeliferous ores have been reported from various localities in Orissa, Jharkhand, Manipur, Nagaland, Andaman Islands etc. The major nickel ore resource of India is related to the lateritisation of ultramafics occurring in Sukinda ultramafic field, Baula-Nuasahi and Simlipal Hills of Orissa. Appropriate mining and extraction technology is yet to be developed to use the ore. The situation calls for improvement in extraction technology and search for nickel in the layered complexes and komatiites of Southern and Eastern India.

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During the XII Plan period for the strategic minerals the target proposed is 1100 sq km of Large Scale Mapping or STM, 6 sq km of detailed mapping, 600 cu m. of Pitting/Trenching and 4000m of drilling. K. Fertiliser minerals: i) Phosphorite (Rock Phosphate) Phosphate deposits are confined to Proterozoic sedimentary rocks located in Udaipur district of Rajasthan; Jhabua, Sagar and Chattarpur districts of Madhya Pradesh and Dehra-Dun and Lalitpur districts of Uttar Pradesh. Potential apatite deposits are located in Purulia district of West Bengal and Singhbhum district of Jharkhand.

During the XII Plan period investigations for phosphorite proposed in Fatehgarh

Formation, Jaisalmer district, Rajasthan and in Kachaldara-Kalikhet-Nawapara area, Meghnagar Tehsil, Jhabua district, Madhya Pradesh. ii) Potash

Potash (sylvite, sylvinite & polyhalite) deposits are confined to the evaporite sequence present within the Mawar Supergroup in the northwestern part of Rajasthan and as glauconite present within sandstone in the Proterozoic basins in the country. The investigations for potash are likely to be proposed in these areas.

During the XII plan period for the fertilizer minerals the target proposed is 700 sq km of Large Scale Mapping or STM, 10 sq km of detailed mapping, 1000 cu m. of Pitting/ Trenching and 3000m of drilling. L. Limestone, dolomite and high Mg rocks

India has huge resources of limestone and dolomite distributed over different parts of the country which are mostly hosted within the platformal proteozoic sediment bearing basins. India is comfortably placed in the world in annual capacity and production of cement. Although cement grade limestone occur in all the limestone bearing areas, SMS, BF and chemical grade limestones occur in selective areas. Due to increase in steel production of the country, the demand for SMS and BF grade limestone and dolomite is increasing. Concerted efforts for locating SMS and BF grade limestone along with cement grade limestone from the states of Meghalaya, Rajasthan, Madhya Pradesh, Gujarat, Orissa and Assam is imperative to meet the growing demand. During the XII plan period GSI is proposing investigations for limestone in the states of Andhra Pradesh, Tamil Nadu, Rajasthan, Meghalaya, Karnataka, Gujarat, Madhya Pradesh, Chhattisgarh, Uttarakhand, Himachal Pradesh and Orissa. The details are as follows: Rajasthan: To locate low silica SMS (LD-grade) limestone in Tertiaries of Western Rajasthan, particularly in Jaisalmer district. Andhra Pradesh: Preliminary investigation for limestone in:-

i) (Palnad basin) around Dachepalli and Nadikudi in Guntur District. ii) (Palnad basin) around Macherla in Guntur District. iii) (Bhima basin) Basheerabad, near Tandur, Ranga Reddy district. iv) (Cuddapah basin) Jammalamadugu and Banganapalli ,Cuddapah district and Kurnool district. v) around Yaparla, Gummadam villages in Pebber Mandal,Mahaboobnagar Nagar District.

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Meghalaya: i) Larket North Block, Litang Valley, Jaintia Hills District, Meghalaya ii) Exploration of lime stone and dolomaitic limestone in Jowai-Muktapur Road, Jaintia Hills District, Meghalaya

During the XII Plan period for the limestone, dolomite and high Mg rocks the target proposed is 1500 sq km of Large Scale Mapping, 100 sq km of detailed mapping, 1000 cu m. of Pitting/Trenching and 40,000m of drilling.

M. Graphite:

The resources of graphite in India, particularly of high grade are limited. Graphite is reported from manganese belt of Madhya Pradesh-Maharashtra; granulite terrain in Eastern Ghat, Kerala, Andhra Peadsh, Tamil Nadu and Arunachal Pradesh.

During the XII Plan period for the graphite the target proposed is 500 sq km of Large Scale Mapping, 5 sq km of detailed mapping, 600 cu m. of Pitting/Trenching and 1500m of drilling. N. Other Minerals (Baryte, glass sand, kyanite, clay, sillimanite, gypsum etc)

The Mangampet deposit in Cuddapah district of Andhra Pradesh is the single largest deposit in the world. Minor contributions are given by Rajasthan and Himachal Pradesh. The resources of sillimanite are very limited in India. There is shortage of lumpy sillimanite for which exploration efforts need to be intensified. Search for sillimanite is being proposed in Mairang-Langtor-Nongdong area, East Khasi Hills, Meghalaya.The resources of kyanite is also very limited in India. But its demand increases with the growing of Iron and Steel industry for its use as refractory along with sillimanite. The investigation is proposed in the State of Maharashtra in Sakoli Fold Belt in Dahegaon-Pipalgaon area. Gypsum occurs as Pan type of deposits in inter-dune areas in parts of Haryana & Rajasthan and in Uttar Pradesh. During the XII Plan period GSI proposes to take up investigations for gypsum in the States of Haryana and Uttar Pradesh. The details are as follows:

i) Assessment for Gypsum in Gonti-Maletha area, Jhansi district, U.P. ii) To locate new gypsum occurrences in covered areas as well as find their depth

persistence in parts of Hissar and Bhiwani districts, Haryana. India has abundant resources of kaolin which can easily meet internal and external

demand but new capacities for processing have to be established and existing capacities have to be augmented in the country to meet the increased requirement of processed kaolin in the future.

To re-assess the clay deposits and to study the sedimentological history of Sriperumpudur - Avadi Upper Gondwana Basin, Tamil Nadu during the XII Plan period GSI proposed to take up an investigation for clay deposit in Kancheepuram and Tiruvallur districts and another programme proposed in Kallamedu area, Ariyalur taluk, Perambalur district, Tamil Nadu.

During the XII Plan period for the other minerals the target proposed is 1500 sq km of Large Scale Mapping or covering through STM, 20 sq km of detailed mapping, 3000 cu m. of Pitting/Trenching and 3000m of drilling.

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5.9.0. STRATEGY OF MINERAL EXPLORATION BY GSI – MINERAL COMMODITY-WISE :

5.9.1. Table –V-7 projects the components of mineral exploration that are

envisaged for the different commodities by GSI during XII Plan

MINERAL WISE PHYSICAL TARGET IN RESPECT OF MINERAL EXPLORATION PROGRAMME OF GSI DURING XII PLAN

Table-V-7

Sl. no.

Mineral State Items Quantum

Large scale Mapping (1:10,000 to 1:12,500)

3900 sq km

Detailed mapping (1:1000 to 1:2000)

30 sq km

Drilling 32000 m Pitting/trenching 15600 cu m

1. Gold Andhra Pradesh Karnataka Goa Rajasthan Jharkhand Madhya Pradesh Uttar Pradesh, Uttaranchal Uttarakhand Arunachal Pradesh Kerala Tamil Nadu Bihar Orissa Chhattisgarh

GCS and other samples. GPS

52000 nos 450 lkm

Reconnaissance Mapping(1:50,000scale)

30000 sq km

P/T 2200 cu m

2. Diamond & Precious stones

Andhra Pradesh Karnataka Chhattisgarh Maharashtra Madhya Pradesh Orissa Uttar Pradesh Bihar

GCS and other samples. Drilling GPS

3000 nos 4000 m 450 lkm

Large scale Mapping (1:10,000 to 1:12,500)

6000 sq km

Detailed mapping (1:1000 to 1:2000)

60 sq km

Pitting/trenching(in cu m) 15000 cu m Drilling 31200 meter

3. PGE and Nickel

Andhra Pradesh, Karnataka, Tamil Nadu, Kerala Maharashtra, Madhya Pradesh Jharkhand GCS and Other samples 34000 nos

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Arunachal Pradesh Bihar Chhattisgarh Gujarat Orissa Uttar Pradesh Jammu & Kashmir Nagaland, Manipur

GPS 600 lkm

Large scale Mapping (1:10,000 to 1:12,500)

2100 Sq km

Detailed mapping (1:1000 to 1:2000)

20 sq km

Pitting/trenching 3800 cu m Drilling 9000 meter Geochemical and other samples

9000 no

4. Iron ore Orissa Jharkhand Chhattisgarh Madhya Pradesh Maharashtra Karnataka Andhra Pradesh, Uttar Pradesh, Rajasthan, Meghalaya Assam

GPS 300 lkm

Large scale Mapping (1:10,000 to 1:12,500)

950 sq km

Detailed mapping (1:1000 to 1:2000)

10 sq km

Drilling 4800 m Pitting/trenching 5000 cu m

5. Manganese Maharashtra, Orissa Jharkhand Andhra Pradesh Karnataka

Geochemical and other samples.

3000 nos

GPS 300 l.km Large scale Mapping (1:10,000 to 1:12,500)

750 sq km

Detailed mapping (1:1000 to 1:2000)

6 sq km

Drilling 2000 meter Pitting/trenching 1500 cu m

6. Chromite Andhra Pradesh, Orissa

Geochemical and other samples.

7500 nos

Large scale Mapping (1:10,000 to 1:12,500)

4500 sq km

Detailed mapping (1:1000 to 1:2000)

45 sq km

Pitting/trenching 6000 cu m Drilling 75000 meter Geochemical and other samples

45000 nos

7. Basemetal Rajasthan Maharastra, Madhya Pradesh, Chhattisgarh, Haryana, Uttarakhand Meghalaya Gujarat Himachal Pradesh Geophysical survey 750 lkm

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Jammu & Kashmir Andhra Pradesh Karnataka Tamil Nadu Jharkhand, Orissa Sikkim,

Large scale Mapping (1:10,000 to 1:12,500)

250 sq km

Detailed Mapping 8 sq km Drilling 6400 m

8. Bauxite Madhya Pradesh Chhattisgarh Jharkhand Gujarat Andhra Pradesh

Geochemical and other samples.

6400 nos

Large scale mapping (1:10,000 – 1:12500)

3000 sq km

Detailed mapping (1:1000 to 1:2000)

10 sq km

Drilling 4000 m Geochemical and other samples.

4000 nos

9. RM-REE Tamil Nadu Uttar Pradesh Andhra Pradesh Jharkhand West Bengal Orissa Rajasthan Gujarat Meghalaya

Large scale Mapping (1:10,000 to 1:12,500)

1100 sq km

Detailed mapping (1:1000 to 1:2000)

6 sq km

Pitting/trenching 600 cu m Geochemical and other samples.

3000 nos

Drilling 4000 m

10. Strategic Minerals (W, Sn, Mo,Ni)

Maharashtra Uttar Pradesh Uttarakhand Tamil Nadu Rajasthan Orissa Chhattisgarh Andhra Pradesh J&K

Large scale Mapping (1:10,000 to 1:12,500)

1500 sq km

Detailed mapping (1:1000 to 1:2000)

100 sq km

Drilling 40000 meter Pitting/trenching 1000 cu m

11. Limestone dolomite and high Mg rocks

Andhra Pradesh TamilNadu Rajasthan Meghalaya Karnataka Gujarat Madhya Pradesh Chhattisgarh Uttarkhand Himachal Pradesh Orissa,

Geochemical and other samples.

20 000 nos

Large scale Mapping (1:10,000 to 1:12,500)

500 sq km

Detailed Mapping 5 sq km Pitting Trenching 600 cu m

12. Graphite Tamil Nadu Chhattisgarh Orissa Arunachal Pradesh Drilling 1500 m

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Geochemical and other samples.

900 nos

GPS 150 l.km Large scale Mapping (1:10,000 to 1:12,500)

1500 sq km

Detailed Mapping (1: 1000 to 1:2000)

20 sq km

Pitting/trenching 3000 cu m Drilling 3000 m

13. Other Minerals (Baryte, glass sand, kyanite, clay, sillimanite, gypsum etc)

Haryana Uttar Pradesh Tamil Nadu Himachal Pradesh Maharashtra Kerala Andhra Pradesh Rajasthan, Gujarat Meghalaya, Assam J&K

Geochemical and other samples.

6000 nos

Large scale Mapping (1:10,000 to 1:12,500)

700 sq km

Detailed mapping (1:1000 to 1:2000)

10 sq km

Pitting/trenching 1000 cu m Drilling 3000 m

14.

Fertilizer Minerals (Phosphorite and Potash)

Madhya Pradesh Rajasthan Chhattisgarh Gujarat Andhra Pradesh Karnataka Uttarakhand West Bengal

Geochemical and other samples.

3000 nos

Total Target in respect of various components of Mineral Exploration Activity (except coal & lignite)

Reconnaissance Mapping(1:50,000scale) 30000 sq km Large scale Mapping (1:10,000 to 1:12,500) 26750 sq km Detailed mapping (1:1000 to 1:2000) 330 sq km Drilling 219900 m Pitting/trenching 61300 m Geochemical and other samples. 196800 nos Geophysical survey 3000 lkm 5.10.0. ASSEMENT OF NATIONAL MINERAL DEMAND/SUPPLY SCENARIO WITH

EMPHASIS ON STRATEGIC MINERALS : 5.10.1. Minerals are an essential part of the development strategy of a country. In

most instances, Indian mineral production has struggled to catch up with the kind of demand that the recent spurt in economic growth has created. The following table (Table-V-8) depicts Resources vis-à-vis Production scenario as estimated by the end of XI Plan period.

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Table-V-8 Salient features of estimated apparent consumption, domestic Production, Resource situation and life index during XII Plan Period (9% Growth Rate)

(Unit in 000 tonnes)

Estimated apparent consumption

Estimated domestic production

Minerals

2011-12 terminal

year of XI Plan

2016-17 terminal year of XII Plan

9%

2011-12 terminal year of XII Plan

2016-17 terminal year of XII Plan

9%

Total estimated balance of

reserves/resources as on 1.4.2017 based on NMI as

on 1.4.2005 (Proved &

probable reserves in parentheses)

Life index (Proved

+probable reserves beyond

1.4.2017)

I. Fertiliser Mineral Rock phsphate 8591 13219 1844 2837 307735(34431) 12 Potash* 0 0 0 0 21815000 Sulphur 1932 2972 312 481 1670856(52972) 110 II. Flux & Construction Mineral Asbestos (Tonnes) 392940 604587 277 426 21730493(6034676

) 14165

Dolomite 6146 9456 6156 9473 7454679(906727) 95 Fluorspar 185 285 10 16 20055(9102) 569 Gypsum 5658 8705 4066 6256 1185562(17344) 3 Wollastonite 132 203 157 242 18291(6582) 27 III. Ceramic & Refractory Mineral Quartz & other silica minerals#

3152 4850 3443 5298 4337290(824174) 155

Fireclay 480 739 487 749 698166(52704) 70 Ball Clay 1185 1823 1067 1642 66559(19798) 12 China clay(kaolin) 2994 4607 3062 4713 2560882(187342) 40 Magnesite 404 622 340 523 333641(71892) 137 Graphite 135 208 130 199 166995(8970) 45 Pyrophyllite 288 442 288 442 30235(16030) 36 Kyanite 7 10 7 10 102526(1285) 129 Sillimanite 37 57 36 56 730869(10953) 196 Vermiculite 14 22 15 23 2255(1582) 69 IV. Export Potential Minerals Barytes 1356 2086 2540 3908 45025(7135) 2 ** Bentonite 537 826 0 0 530573(25061) - **Fuller’s Earth 100 154 0 0 256652(58) - Mica (crude) 108 166 1 2 371(46) 23 Talc/steatite 879 1353 992 1526 299894(103085) 68 Note: * Remaining resource ** It has not been possible to work out the life indices in respect of bentonite and fullers

earth because the production figures are not available. # Includes in Quartzite

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5.10.2. Strategy to meet the demand in respect of deficient minerals, particularly strategic minerals

India needs to significantly step up exploration activity in the country to enhance its

mineral reserves to meet the future demand. The line of action envisaged is:

(i) GSI should step up regional resource assessment activities in identified Mineral belts, both for conclealed deposits in gap areas and for deep seated deposits in areas/blocks where estimation is made upto nearly 120m. This is in parallel to the exploration activity conducted by private companies through the RP route.

(ii) In addition, Strategic minerals with low resource potential in India and scarce/ consolidated global supply need to be acquired internationally. These include cobalt, tungsten, lithium, tin, fertilizer minerals, etc. that have low reserve base, lower likelihood of future finds and scarce supply/ consolidated market structure globally. This acquisition of key minerals has to be centrally coordinated. For this, as recommended by the Mackinsey Committee Report, it is necessary to set up a designated ‘central resource planning cell’ under the Ministry of Mines (mirroring the one planned under Cabinet Secretary) to support PSUs and private sector in international source acquisition of strategic minerals. 5.10.3. Assessment to meet the growing demand A. Future exploration of basemetals

In course of survey over a prolonged period of time, Geological Survey of India has identified a number of domains with favorable geological signatures for basemetal exploration. Best possible targets from this need to be selected through scanning by Geomorphological, Hyperspectral, geochemical, and ground geophysical surveys. Bigger area surrounding these targets should be investigated through airborne geophysical survey for locating favorable physical signatures from rocks. Utilizing remote sensing data, detailed trace mineral studies and detailed in depth laboratory studies are primarily needed to locate and identify the path finders which may lead to the discovery of new deposits of these minerals. (i) Copper:

Most of the deposits are widely distributed and are of rather poor grades. R&D in beneficiation has to be kept up for utilization of low grade deposits. This can be achieved through further inputs for intensive exploration with an aim of firming up and upgradation of reserve figures in known prospects and in the extension areas of the known or established deposits. Exploration:

The regional exploration by the GSI established potential target areas for further detailed probing in the state of Rajasthan, Jaharkhand (Singbhum), Madhya Pradesh (Betul), Karnataka, etc. The Khetri Mine Area and North Khetri Copper Belt require deeper level probing (G-2 Stage). The South Khetri Copper Belt is relatively less explored and deserve G-4 Stage investigation. Several prospects in North Delhi Fold Belt in the

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Alwar-Jaipur basin require immediate attention for detailed exploitation under G-3 Stage. While many reported occurrences need to be investigated under various stages of G-4 Stage.

In Singhbhum Copper Belt augmentation of copper resource may be effectively

done by attempting re-evaluation/re-assessment of the deposits already established (G-Stage), as in Turamdi, Bayanbil, Ramchandra Pahar, Nandup and Dhadkidih of Jharkhand state. (ii) Lead and Zinc:

The exploration efforts of GSI, MECL and DMG, Rajasthan in recent times have proved a number of small deposits such as Devpura, Ghughra, Kayar, Sawar, Bajta, within Pur Banera, Sawar-Bajta, Ghughra-Kayar belts in Rajasthan. In the other states, some of the proven deposits include Askote (Uttaranchal), Kolari-Bhanori (Maharashtra) and Dhukonda (Andhra Pradesh). M/s HZL have employed state-of-the-art fast drill machines and have carried out advanced geophysical surveys involving deep penetration IP and time domain (INFINITEM) for exploration in their lease hold areas.

These small deposits mentioned above may be taken up for mining in clusters

along with the other high tonnage low grade/low grade high tonnage in their vicinity with the development of suitable beneficiation technology including graphite separation, etc. and increasing the smelting capacities. (iii) Bauxite

India has a comfortable resource position in bauxite. In course of survey over a prolonged period of time, Geological Survey of India has identified a number of domains with lateritic and bauxite cappings for bauxite exploration. Data generated in course of geological mapping activities has helped in identifying favorable geological set ups. Best possible targets from this need to be selected through scanning by geochemical and ground geophysical surveys. Bigger area surrounding these targets should be investigated through airborne geophysical survey for locating favorable physical signatures from rocks. Utilizing remote sensing data and detailed laboratory studies are primarily needed to locate and identify the path finders which may lead to the discovery of new deposits of bauxite.

Most of the deposits are widely distributed and are of varying grades. Keeping this

in view, augmentation of bauxite resources in the country is of utmost importance. This can be achieved through further inputs for intensive exploration and beneficiation with an aim of firming up and upgradation of reserve figures in known prospects and in the extension areas of the known or established deposits. Exploration

Apart from GSI, a number of Private and state DMGs have built of plan for exploration of bauxite on a large scale. They include NALCO (in Panchpatmali hill of Koraput district of Orissa), DMG, Maharashtra (in Satara), Chhattisgarh Mineral Development Corporation Limited (in the Kabirdham, Sarguja district), DMG Orissa, DMG Jharkhand and DMG Gujarat. GSI will conduct investigation in Andhra Pradesh (in East Godavari district).

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5.10.4. Future exploration of Strategic Minerals (i) Tungsten

R&D activity in beneficiation has been undertaken by DMRL and NML. This is likely to bring down the cut off grade for exploitation. In the light of the lower cut-off that is going to be emerged, GSI, DMRL, DMG Rajasthan, AMD and NML are planning to undertake jointly exploration on tungsten in Rajasthan.

It is proposed to take up tungsten investigation in Rajasthan (both wolframite and scheelite) along the western part of the South Delhi Fold Belt and also the possibility of further investigation/re-assessment of the known deposits at Balda and Degana.

DGM, Kerala is to take up an exploration programme for tungsten in collaboration with GSI, Kerala unit, during the F.S. 2010-12. This would be based on the results of the U.N. assisted Project on scheelite mineralization in the Attappadi valley of Palakkad district. The detailed drilling shall be rendered by DGM Kerala.

(ii) Tin The country has a poor resource base in Tin. Tin deposits are located in

Chhattisgarh (Bastar and Dantewada districts) and Haryana (Bhiwani district), the latter in association with tungsten. Hence a plan has to be drawn for sustainable supply of tin from global source. (iii) Titanium

India has good potential in case of titanium-bearing minerals. GSI, AMD and State DMGs have to gear up exploration activity in the known occurrences along the coastal areas. In view of the high TiO2 value (32%) in one of the sample on Gujarat coast near Dandi (finding by GSI), it was decided that collaboration may be made between GSI and AMD for study of Titanium in Gujarat. (iv) Molybdenium

Geological set up favouring occurrence of Molybdenum is not much in place in the country. Hence a plan has to be drawn for sustainable supply of tin from global source. However, DGM, Tamil Nadu is carrying out molybdenum exploration in the Salem districts. Molybdenum assessment is also being made by AMD in the Khandela area, Rajasthan.

GSI is carrying out investigation on molybdenum in Kanigiri area, Parkasam district, Andhra Pradesh. (v) Atomic minerals & Rare Metal and Rare Earth Elements:

The thrust area in the XII Plan will on sedimentary basins and delineation of areas by E-M and magnetic studies along with a massive drilling programme. The Cuddapah basin of South India is going to be great hope for future of atomic minerals. (vi). Lithium

Though a number of occurrences are reported from Rajasthan, Andhra Pradesh and West Bengal, these are having low concentration of lithium bearing minerals. Hence, a plan has to be drawn for sustainable supply of tin from global source.

AMD is planning to take up lithium investigation in the brines of playas and most likely in the pegmatites. They have been informed of the lithium concentration (Ferrysicklerite) in the pegmatites from Sirohi district, Rajasthan.

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5.11.0. PROMOTIONAL ROLE OF CENTRAL AND STATE GOVERNMENT AGENCIES AND OPPORTUNITY POTENTIAL OF GSI :

Mineral exploration is high risk and high investment area of activity. Its success ratio depends much on the degree of investment, high sense of understanding of the favourable geological milieu of mineralization and the natural mineral/ metal endowment in different crustal segments of the globe.

Under such condition, the investment will not be forthcoming for the scarce mineral commodities.

While GSI, MECL, DMGs of the State Governments and various Central and State PSUs will continue to perform the tasks assigned to them for exploration and survey, the private sector would in future be the main source of investment in reconnaissance and exploration and Govt. agencies will expend funds primarily in area where private sector investments are not forthcoming.

Strategy should be framed for exploration strategy for minerals having poor resource cum reserve base in locales of favourable geological milieu. GSI has already identified such geological favourable milieu, particularly for rare rarth, PGE, tungsten, tin, rock phosphate, nickel, molybdenum, gold, diamond and silver, etc. through continuous integrated multi-disciplinary exploration strategy. Technological gaps are being identified and measures going to be taken to fill up these gaps. The advance technology requires investment on a large scale and assistance through outsourcing. The Govt. agencies must play a major role towards this aspect.

In the exploration ventures, especially in the Greenfield, close interactions with the reputed educational institutes may be highly beneficial for knowledge build up and induction of modern laboratory determination techniques.

It is necessary to create network of Government R&D institutions and set up R&D facilities to cover gaps in R&D in beneficiation and technological upgradation in mining.

5.11.1. Promotional roles of different Central and State Agencies in the development of mineral sector are briefly dealt in, as highlighted in the HPC Report of GSI. The XII Plan proposal, if presented by the Central / State agency, is reproduced at appropriate junctures. A. Atomic Minerals Directorate for Exploration and Research : The promotional role of AMD includes :

To take steps as may be necessary from time to time to protect the interests of the country in connection with atomic energy by exercise of the powers conferred on it by the Government of India by the provisions of the Atomic Energy Act.

To survey the territories of India to locate of useful minerals in connection with atomic energy.

Promoting research in AMD laboratories and sponsoring it in existing institutions and universities.

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Entrusted with the responsibility of locating additional uranium and other (thorium, zircon, rare metals and rare earths) resources for the country’s three-stage nuclear power programme.

For the XII Plan period, AMD is entrusted with the responsibility of locating additional uranium and other (thorium, zircon, rare metals and rare earths) resources for the country’s three-stage nuclear power programme. Survey and exploration for uranium in India is carried out by AMD through conceptualized multi-disciplinary approach including air-borne radiometric and geophysical surveys along with integrated ground radiometric-geological-geochemical and geophysical surveys to identify potential zones for surface and sub-surface exploration to augment the inventory of uranium and other atomic mineral resources required for the indigenous Nuclear Power Programme. In India, several Proterozoic and Phanerozoic geological domains provide excellent geological setup for unconformity-related, strata-bound type, vein-type, sediment-hosted and calcrete-types of uranium mineralisation. Numerous uranium occurrences reported from these domains enhance the future prospects of locating promising uranium mineralisation. During XII Plan, exploration for uranium, thorium, zirconium, rare metal and rare earth elements aided by the existing and expected additional facilities would be continued to support indigenous nuclear power programme. A total of 8,15,000m of drilling [Departmental: 3,25,000m (XII Plan new projects: 3,00,000m and XI Plan continuing project: 25,000) and contract: 4,90,000m (XII Plan new project: 2,40,000m and XI Plan continuing project: 2,50,000m] is planned. A total of 19 projects, comprising 12 under R & D Sector (XII Plan New Project - 8 & XI Plan continuing – 4) and 7 under I & M Sector (XII Plan New Projects – 4 & XI Plan continuing – 3) are proposed. Under the proposed plan-projects of AMD, thrust will be on synergising multi-disciplinary activities of AMD to achieve the goal of augmenting resources of uranium, rare metal and rare earth elements, monazite and zircon to facilitate scaling up of the indigenous Nuclear Power Programme. Following proposals for modernization has been envisaged for XII Plan period :

The new techniques like Z-TEM, gravity gradiometry, hyper spectral remote scanning etc. are being proposed (1,50,000 L.km) to test the various models of mineralization upto a depth of 2 km with the help of multinational companies having expertise in use of these technologies. This shall help in obtaining geological data on deep conductors and alteration zones related with mineralisation.

Development of database, its retrieval, sharing and portability to exploration software for better analyses and interpretation and creation of ore deposit modeling facilities.

Indigenous design, development and deployment of borehole multi-parametric logging system; fully automatic mechanized Advanced Gamma-ray Borehole Logging unit, Portable gamma-ray spectrometers, Prototype DSP based beta-gamma spectrometer, Portable Radon Radiation Detection Systems; IR Spectrometers.

Installation of Radon Measuring Systems, Alpha-Spectrometry System; DSP-based multi-channel gamma-ray Spectrometers, Instrumental Neutron Activation Analysis Systems; Mossbauer Spectrometer, Automatic Multi-Sample Analyser, Isotope Ratio Mass-Spectrometer with oxygen extraction and purification system;

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InVia Raman Microscope and Raman-Spectrometer; Binocular stereomicroscopes; MPV Compact Microscopes

GSI is not represented in the Council of Management of AMD. However, AMD is a member of CGPB. GSI has opportunities to collaborate in the areas of systematic geological mapping, geochronology, petrology, airborne geophysical survey, instrumentation and in drilling. Opportunities for sharing exploration data under a common platform still need to be explored.

B. Central Ground Water Board :

The activities of the Board include macro-level hydrogeological investigations, deep exploratory drilling coupled with remote sensing studies, geophysical studies and pumping tests to study the subsurface hydrogeological features and nation-wide monitoring of the behaviour of water table and water quality through a network of 15640 hydrograph stations. Central Ground Water Board has also helped the Rajiv Gandhi National Drinking Water Mission in identifying suitable ground water sources for drinking water supply.

Ground water exploration aided by drilling is one of the major activities of the Board with the objective to discover aquifers in different hydrogeological conditions.

The National Geochemical Mapping Programme (NGCM) project of GSI includes stream sediment sampling in grids of one sq.km to produce 1:50000 scale geochemical maps. These are likely to be of value to CGWB to know the water chemistry of small river run-offs. This apart, all the geological reports carry a brief account of the water resources and also in many cases, the groundwater resources / aquifers if they occur in the surveyed area. For basin and hydrological studies, CGWB uses GSI’s geological maps and special thematic maps. GSI’s proposed National Geomorphological and Lineament mapping programme is likely of great value to CGWB for location of aquifers and in better understanding basin / regional hydrology and drainage.

C. Indian Institute of Remote Sensing :

The goal of Indian Institute of Remote Sensing is to develop a systematic capacity from ‘pixel to policy’ through human capacity building in Natural Resource Management. IIRS has several R&D projects that help in operationalisation of technology in various application areas like landslide hazard zonation, ground water targeting, etc.

Geoinformation is a thrust area for GSI. Training and capacity building of GSI and its partners in remote sensing and aerial photography is clearly a promising area for collaboration.

D. Indian Bureau of Mines :

IBM was constituted for the promotion of conservation, scientific development of mineral resources and protection of environment in mines other than coal, petroleum & natural gas, atomic minerals an dminor minerals. IBM has a statutory role in this regard through appropriate provisions in the rules made under the Mines & Minerals (Development & Regulation) Act, 1957.

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The mandate of IBM includes technical consultancy services to the mining industry for the appraisal of mineral reserves, and the preparation of feasibility reports of mining projects, including beneficiation plants. IBM prepares mineral maps and a countrywide inventory of mineral resources of leasehold and freehold areas. It also promotes and monitors community development activities in mining areas. IBM also functions as Data Bank of Mines and Minerals and publishes related statistical periodicals.

GSI and IBM can synergise their spatial data both under the Tenement Registry System and under the GSI portal in respect of statutory data filed with IBM. In case revamp of CGPB provides for IBM representation at State Geological Programming Board, IBM can further leverage its position in State Geological Programming Board meetings for mutual benefit.

E. Mineral Exploration Corporation Limited (MECL) :

With a mandate to take up systematic exploration of minerals and bridge the gap between the initial discovery of a prospect and its eventual exploitation, MECL has recently diversified into mining and beneficiation of minerals, production well drilling for CBM and sampling and analysis of coal stocks. MECL has the largest fleet of drills in the country.

Proposal of exploration for the XII Plan period as submitted by MECL is given in Table-V-9.

Table-V-9 MINERAL WISE PROPOSED ACTION PLAN FOR MECL

DURING THE XIITH PLAN

SL. MINERAL STATE FIELD / BELT EXPLORATION INPUTS

A. BASE METAL 1. Copper

Jharkhand Rajasthan

Singhbhum Copper belt South Khetri Copper- belt Chitar-Kalab-Kalan Sector Baniwala Ki-Dhani

Environmental studies : 3 Scenes

Geological Mapping : 10 Sq.Km.

Promotional Drilling : 15,000m Geophysical Survey : 10 Sq.km. Sampling & Analysis : 10,000 Nos. Exploratory Mining : 100m

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B. BASE METAL 2. Lead- Zinc

Rajasthan Madhya Pradesh Sikkim

Pur Baneru Belt Sawar-Bajata Pindwara-watera Rajpura-Dariba Deri-Ambaji Belt Betul Belt Small occurrence

Environmental Studies: 3 Scenes

Geophysical Survey : 10 Sq.km. Geological Mapping : 10 Sq.Km.

Promotional Drilling : 15,000m

Sampling & Analysis: 7500 Nos.

Exploratory Mining-100m

C. GOLD

Andhra Pradesh Karnataka Tamil Nadu Rajasthan Jharkhand Kerala

Ghanpur Schist Belt Gadwal Schist Belt Veligallu Schist Belt Gani Kalva Area Ramgiri-Penkacherla Schist Belt Hutti-Muski Schist Belt Kushtigi-Hengund Schist BeltChitradurga Schist Belt Hagari - Schist Belt Shimoga Schist Belt Mangalur Schist Belt Extension of Kolar- Schist Belt Arawali Fold Belt (Prospects in Bhukia & Adjoining area) Singhbhum Fold Belt (Prospects adjacent to Parasi Central block) Southern Granulite- Terrain

Environmental Studies-3 Scenes Geological Mapping : 10 Sq.km. Promotional Drilling : 15,000m Sampling & Analysis-10,000 Nos. Exploratory Mining-100m

SL. MINERAL STATE FIELD / BELT EXPLORATION INPUTS

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D. FERTILISER

MINERALS

i. Potash

ii. Rock Phosphate

Rajasthan Madhya Pradesh West Bengal Andhra Pradesh

Henseran Evaporite Group (Satipura, Jaitpur areas) Area between Jamar kotra-jhabua Jhabua belt Singhbhum Belt / Chhotanagpur Gneissic-Terrain in Purulia distt. Cuddapah basin

Environmental Studies : 3 Scenes

Geological Mapping : 25 Sq.km.

Promotional Drilling : 20,000m Geophysical Logging : 10,000m Sampling & Analysis: 6000 Nos. Exploratory mining : 200m

E. STRATEGIC

MINERALS

(Tin, Tungsten, Molybdenum)

Maharashtra Rajasthan Tamil Nadu

Sakoli fold belt Sewaria Granite Syenite-Carbonatite province (Sirohi area) Deva-ka-Bera Udwaria, Extension area of Degana prospect Harur Uttangiri belt

Environmental Studies : 2 Scenes

Geological Mapping : 5 Sq.km.

Promotional Drilling : 5000m Sampling : 3000 Nos. Exploratory Mining : 100m

F. HIGH TECH

MINERAL

(Cesium, Lithium & Rubidium

and Fullerene)

West Bengal Rajasthan Andhra

Chhotanagpur Gneissic complex Sewaria Granite Area Mangampeta Baryte Belt

Environmental Studies :2 Scenes

Geological Mapping : 5 Sq.km.

Promotional Drilling : 5000m Piting & Trenching : 500 Cu.m. Sampling & Analysis : 1500 Nos. Exploratory Mining : 100m

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SL. MINERAL STATE FIELD / BELT EXPLORATION INPUTS

G. PLATINUM GROUP OF ELEMENTS (PGE)

Orissa Tamil Nadu Andhra Pradesh Karnataka Jharkhand Manipur & Nagaland

Sukinda, Bolanausai area Sitampundi layered complex Mettuppalaiyam Mafic Ultrmafic complex Chimakurthi Mafic Ultrmafic complex Layered Complex in Hanumalapura and adjoining areas West Singhbhum distt. Ophiolite Belt

Environmental Studies: 3 Scenes Geological Mapping : 10 Sq.km. Promotional Drilling : 10,000m Sampling Analysis: 9000 Nos. Exploratory Mining : 100m

H. FERROUS GROUP (Iron, Chromite & Manganese)

Orissa M.P. Jharkhand Chhattisgarh Maharashtra Karnataka Tamil Nadu

Badampahar Belt Bonai-Keonjhar Belt Tomka-Daiteri Belt Sukinda Belt Eastern Ghat Belt Mansar-Balaghat Belt Bonai-Keonjhar Belt Raughat, Bailadila & Kabirdham distt. Sausar Belt , Chandrapur & Gadchiroli districts (Gondi-Pimpari area) Sandur Schist Belt Chitradurga Schist Belt Granulite terrain (BMQ bands in Mamakkal and Tiruvannamalai districts)

Environmental Studies: 3 Scenes

Geological Mapping : 20 Sq.km.

Promotional Drilling : 20,000m Sampling & Analysis : 18,500 Nos. Exploratory Mining : 100m

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SL. MINERAL STATE FIELD / BELT EXPLORATION INPUTS

I. BAUXITE

Orissa Andhra Pradesh Jharkhand Chhattisgarh Maharashtra

Kadalia block in Bonai –Keonjhar Belt Unexplored plateau in Eastern Ghat Belt Unexplored plateau in Eastern Ghat Belt Lohardaga area Jamirapat, Pandripat areas Konkan belt

Environmental Studies : 1 Scenes

Geological Mapping : 5 Sq.km.

Promotional Drilling : 5000m Sampling & Analysis : 5000 Nos. Exploratory Mining : 100m

J. INDUSTRIAL MINERALS (Non- Metallic) Limestone (SMS, BF) High Mg Flux

Nagaland Arunachal- Pradesh Meghalaya Andhra Pradesh Karnataka Orissa

Nimi Limestone Tidding, Hinli, Menga Litang Valley and its continuity Cuddapah Basin Kaladgi Basin Mafic-Ultramafic Complex

Environmental Studies : 2 Scenes Geological Mapping : 5 Sq.km. Promotional Drilling : 5000 m Sampling & Analysis : 5000 Nos.

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MINERAL WISE PROPOSED ACTION PLAN FOR MECL DURING THE XIITH PLAN

Sl. No.

Mineral Remote Sensing (Scene)

Envir. Studies(Scene)

Geophy.Survey

(Sq.km.)

Geophy. Logging

(m)

Survey+Geol.

Mapping(Sq.Km.)

Drilling (m)

Explora-tory

Mining (m)

Sampling &

Analysis(Nos. of

samples)

1 Base metals

i. Copper – 3 10 – 10 15000 100 10000

ii. Lead-Zinc – 3 10 – 10 15000 100 7500

2 Gold – 3 – – 10 15000 100 10000

3 Fertiliser Minerals – 3 – 10000 25 20000 200 6000

4 Strategic Minerals – 2 – – 5 5000 100 3000

5 High Tech Minerals** – 2 – – 5 5000 100 1500

6 PGE / PGM – 3 – – 10 10000 100 9000

7 Ferrous Group of Minerals – 3 – – 20 20000 100 18500

8 Bauxite – 1 – – 5 5000 100 5000

9 Industrial Minerals (non Metallic)

– 2 – – 5 5000 – 5000

10 Miscellaneous (other Minerals, Ground water, geotechnical, large diam.drilling etc.)

2 2 5 – 10 10000 4000 8000

Total : 2 27 25 10000 115 125000 5000 83500

Note : ** In adition to 100m of mining, pitting & trenching - 500 Cu.m.

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MECL is in a position to partner with GSI in order to undertake commercial operations involving exploration, survey and geotechnical investigations, particularly in the international arena.

Reposition MECL to do promotional exploration for deep-seated minerals using HTREL ( LAPL ) under new MMDR Act. An annual corpus of Rs.25 crore needs to be provided to MECL and a scheme to incentivize MECL through profit sharing mechanisms needs to be devised (eg. Joint venture or Special Purpose Vehicle (SPV) between MECL and entrepreneurs at prospect level).

F. National Centre for Antarctic and Ocean Research :

The National Centre for Anatarctic and Ocean Research also focuses on the geology and geomorphology of Antarctica continent. GSI participates in the annual Antarctic expedition for geological mapping and glacialogical studies on the frozen continent since is initial expedition in 1981-82.

G. National Environmental Engineering Research Institute :

GSI and NEERI can coordinate in the geochemical mapping programme in which a huge quantity of samples need to be chemically analysed and interpreted. They can also jointly analyse the organic and metal data being systematically collected by GSI from different drainage basins to check the true anomalous value taking the possible pollution levels in the area and its surroundings.

H. National Geophysical Research Institute :

NGRI’s work is related to R&D in earth sciences and includes: Carrying out basic and applied research in the frontier areas of solid earth

geophysics. Studying the history of the lithosphere and crustal evolution in space and time

through integrated geological, geochemical, geophysical and geochronological studies.

Devising new geophysical methods, techniques and instruments for the exploration of minerals and ground water resources.

Understanding the processes involved in earthquakes and related phenomena. To understand the earth’s interior and its physical properties. NGRI has been working on regional and global problems, which address the

structure and evolution of the earth, with special reference to the Indian shield and active plate boundaries of the Indian plate. Many of the studies and techniques are similar to those of GSI, though GSI generally works systematically and at regional level.

NGRI collects data on airborne geophysical surveys in association with GSI and NRSC and jointly analyses them.

NGRI participates in the CGPB. NGRI activities are guided by a research council set up by the CSIR. Director General, GSI is a member of the Research Council.

Exploration of gas-hydrates along Indian continental margins, palaeo-environment, petrology, trace element, rare earth element and isotope studies, geophysical survey and logging; and High resolution airborne geophysical surveys for oil and mineral exploration are the major areas where there is overlap of work with GSI. Data and capacity sharing potential exists in:

150

Sharing of gravity and magnetic data to prepare detailed maps. Utilisation of national facilities in absolute gravity, geochronology,

environmental geochemistry labs. Utilisation of sophisticated softwares for modeling and interpretation of

different data sets. I. National Natural Resources Managememnt System (NNRMS) of the Department of Space :

Planning Commission - NNRMS adopts various advanced technologies of satellite and aerial remote sensing; Geographical Information Systems (GIS); Precise Positioning Systems; database and networking infrastructure and advanced ground-based survey techniques. Remote sensed data can complement ground based information for GSI’s main tasks regarding geology and mineral exploration. GSI’s ground presence gives it the ability to quickly launch large remote sensing programmes since system development and verification using ground facilities are relatively easy to mount.

Spatial Information, images and maps, forms and foundation and basis for most planning and implementation of developmental activities; infrastructure development; disaster management support; environmental monitoring; natural resources management; business geogrpahics and many other national activities. Generating the information on the nation’s natural resources and its infrastructure; updating and maintaining the information sets and integrating these with administrative and social datasets provides the most optimal and scientific decision-alternatives in support of national development. Both NNRMS and GSI have portals hosting spatial and non-spatial databases. Synergy of these databases, and bringing them under the NSDI architecture will provide enormous synergy in GIS-based applications, 3-D modeling, etc. for a huge number of users at central and state level, including the NNRMS Sedctoral Standing Committee programmes.

GSI had many collaborative projects with NNRMS, mainly on the study and interpretation of Satellite imagery and using other remote sensing techniques. NNRMS has being carrying out jointly with GSI two major national programmes using satellite imagery:

1. Geomorphological and Lineament mapping: Five pilot projects have already been completed and legend system is being finalized. A National Project is planned over a time frame and with a prioritization to be determined on the basis of GSI’s ability to spare resources for ground verification etc. in order to generate 1:50000 scale maps. This project is to be completed within 12 Plan Period.

2. Hyperspectral mapping of the landmass: Since GSI’s perception is that this technology is relevant to GSI only in the context of mapping of mineral potential; it may be taken up in about 5.14 lakh sq.km area which has mineral potential This will be completed with 12th Plan Period and the remaining area of the country will be taken up in the 13th Plan.

The proposed Airborne Radar (Microwave) survey of the terrain by NNRMS

will also useful in the interpretation of geological structures of regional and

151

area-specific nature. The interpretation of structural data is used in the groundwater and mineral surveys.

5.11.2. State Departments of Geology and Mining :

The State Departments of Geology and Mining (DGM) of various states have a role in the exploration for minerals and geochemical investigation in addition to regulation. Many State departments are equipped in both man-power and equipments to take up the works on Regional geological mapping, detailed mapping and contouring drilling and in the chemical analysis of samples. The roles and facets of State DGM and the need for enhancing their capacity for large scale mapping, promotional exploration, concession management including mining plan, closure and SDF, etc. are further ellaborated in Chapter – VI A. Department of Mines and Geology, Andhra Pradesh : The Department is entrusted with regulatory and promotional taks, which involves mineral investigation, exploration, processing of mineral concession applications. Monitoring of production and dispatch, collection of mineral revenue and development of Mineral based industries in the State. The Department collects large amounts of geomorphological, geological, geochemical, aeromagnetic, multispectral, gravity, density, resistivity from RP holders, survey and inspection field data from the new areas applied by entrepreneuers, existing mines, mine plans, waste dumps, processing and beneficiation plants, etc. and also from the regular field investigations and explorations. The Department is also collecting both textural and graphical data from various central and state geological agencies, maps, toposheets, lease data, investigation programmes, etc. B. Department of Mines & Geology, Bihar : The Department looks after the management, development and administration of mineral resources alongwith extensive and intensive geological exploration for commodities limestone, pyrates, mica, bauxite, feldspar, fireclay, magnetite, haematite, gold, lead and dimensional stones. C. Directorate of Geology and Mining, Chhattisgarh : Chhattisgarh is the richest State in terms of mineral wealth, with 28 varieties of major minerals, including diamonds. Chhattisgarh, alon with two other Indian Sttes has almost all the coal deposits in India. All the tin ore is in Chhattisgarh. A fifth of iron ore reserves in the country are located here, and one of the best quality iron ore deposits in the world is found in the Bailadila mines in south Chhattisgarh, from where it is exported to Japan. Rich deposits of Bauxite, Limestone, Dolomite and Corundum are found in the State. The Raipur-based Directorate of Geology and Mining is reputed to be one of the best knowledge and resource centres in mining minerals. D. Commissionerate of Geology and Mining, Gujarat : The activities of the Commissionerate of Geology & Mining Department is mainly connected with the mineral exploration, development & administration of industrial minerals and dimension and decorative stones. The important mineral resources in Gujarat include limestone, lignite, bauxite, bentonite, chalk, chinaclay, dolomite, marble

152

and granite; besides oil and natural gas. Granite, silica, china clay, fire clay etc are the other minerals. The Geochemical mapping of Kachchh project is a collaborative project with GSI that aims at generating baseline data on geochemical landscaping of the area in Kachchh to identify areas of mineralization, agriculture, forest, human and animal health, environment, landscape reclamation, etc. E. Department of Mines & Geology, Jharkhand : Jharkhand is endowed with vast natural resources specially the different variety of minerals ranging from Iron ore, Copper ore, Coal, Mica, Bauxite, Fire clay, Graphite, Kyanite, Sillimanite, Lime stone, Uranium and other minerals. Jharkhand is referred to as Museum of Minerals with a variety of minerals from Uranium to Copper, Mica to Clays and all the minor minerals used in construction process. The functions of the Department include :

To regulate and administer the business of mines and minerals. Granting mineral concessions Collecting revenue through minerals Development of mines, establishment of mineral-based industries Mineral conservation and mine closure.

F. Directorate of Mines and Geology, Karnataka :

The functions of the Department include : Geological and structural mapping Mineral resources estimation Environmental Impact Studies Mining regulation Mine revenue and royalty collection, etc.

The exploration programmes taken up by DMG, Karnataka in respect of different commodities are given in Table-V-10.

153

Table-V-10.

ACTION PLAN OF DMG, KARNATAKA FOR THE XII PLAN Sl no Mineral Deposit/District Exploration inputs

1. Exploratory drilling for limestone

Malked, Sedam Taluk and Jewargi Taluk of Bhima Basin, Gulbarga District.

Not indicated

2. Exploratory drilling for cement grade limestone

Melanahalli, Chikkanayakanahalli Taluk, Tumkur District

Not indicated

3. Banded Magnetite Quartzite

Hulgur and Shivasamudrum, Malvalli Taluk, Mandya District

Not indicated

4. Titaniferous magnetite

Teganahalli, K.R.Pet Taluk, Mandya District

Not indicated

5. Gold Shimoga scist belt, Halehikeri, south of Sagar

Not indicated

6. Gold BIF of eastern part of Sorab Taluk, Shimoga District

Not indicated

7. PGE Sargur scist belt Not indicated 8. Quartz/quartzite Desani, Arsikere Taluk, Hassan

District Not indicated

9. Quartz/quartzite Rayalpadu, Srinivaspura Taluk, Kolar District

Not indicated

10. Steatite/soapstone Bylakeri and Hosahalli, C.N.Halli Taluk, Tumkur District

Not indicated

11. Ornamental stone Davanagere Taluk, Davanagere District

Not indicated

12. Ornamental stone Mulkalmuru Taluk, Chitradurga District

Not indicated

13. Low grade iron ore Honnali and Basavapatna in Shimoga schist belt

Not indicated

14. Bauxite Talgad and Mundahalli, Bhatkal Taluk, Uttar Kanada District

Not indicated

G. Directorate of Geology and Mines, Madhya Pradesh : The State of Madhya Pradesh is richly endowed with mineral wealth. It is the sole producer of diamond in the country. The National Mineral Development Corporation Ltd., is operating the only mechanized diamond mine at Majhgawan in Panna district since 1958 and is now producing 81000 carats of diamond annually. Coal, limestone, manganese ore, bauxite, copper ore, dolomite, fire clay, slate pyrophyllite-diaspore are the main minerals occurring in the State. Malajkhand, the country’s largest open-cast copper ore mine, is situated in Balaghat district. CBM exploration is taking place. The State is fast emerging as a dimensional stone producer. In terms of the mineral production, the State ranks third next only to Jharkhand and Chhattisgarh.

154

H. Directorate of Geology and Mines, Maharashtra : The Departmnet is situated in Nagpur and is involved in the exploration for various minerals and mineral administration at the district level. Maharashtra has many mineral deposits including coal, manganese, iron ore, limestone and tungsten. I. Directorate of Geology and Mines, Orissa : The varied geological base in the State has been host to many important mineral deposits. Prolonged and consolidated exploration efforts by various Government and semi-Government agencies have led to the discoveries of minerals like iron ore, manganese, chromite, coal, bauxite, limestone, dolomite, fire clay, china clay, nickel, lead ore, copper, quartz, etc. Notable occurrences of gemstones including diamond, gold and platinum group of elements (PGE) have been located in the State. The activities of the Department include:

Mineral exploration Ground geophysical survey for mineral / groundwater targeting Engineering geology and geotechnical studies Groundwater and mineral targeting base on High Resolution Aeromagnetic Survey

(HRAMS) Environment impact assessment study in mining belts Urban environmental studies Remote Sensing application for mineral targeting, groundwater, environmental and

coastal geomorphological studies. GSI may collaborate with the State Government for re-assessment of low grade

iron ore and nickel from chromite ore burden and in exploring coastal mineral sands. J. Directorate of Geology and Mines, Rajasthan : Mineral deposits being exploited in Rajasthan include lead, zinc and copper deposits. The most favmous of the mines are those at Rajpura-Darriba and Zawar near the city of Udaipur in the State of Rajasthan. The mines form one of the most modern mining and smelting complexes in India and they are also famous for the remains of ancient metal mining dating to 2000 BC exemplifying very early, medieval production of zinc metal in retort furnaces. The activities of the Department include :

Regional Geological Mapping Detailed Geological Mapping and contouring Drilling (both coring and non-coring) Chemical analysis and Beneficiation studies of rocks / minerals & ores.

The action plan of DMG, Rajasthan for the XII Plan is given in Table-V-11

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Table-V-11

ACTION PLAN OF DMG, RAJASTHAN FOR THE XII PLAN Sl no. Mineral Deposit/District Exploration inputs

1. A few projects will be planned and executed to take up systematic delineation of suitable plots for minerals like sandstone, masonry stones, marble, granite, limestone (flooring) and schist stone/ slatestone, etc. (it involves identification of Government land, collection of revenue records, awareness generation among villagers, approval at Government level, subsequent notification for leasing out of such delineated plots, etc.)

2. Lignite Gap areas of Bikaner, Nagaur and Barmer districts. (*)

Not indicated

3. Basemetal and Noble metals. The area of Delhi Fold Belt from Banswara in the south to Khetri in the north via Udaipur, Bhilwara and Ajmer districts by deep drilling.(*)

Not indicated

4. Cement grade and steel grade limestone.

Jaisalmer, Nagaur, Chittaurgarh, Jodhpur and Pali Districts.

Not indicated

5. Gypsum,potash, fluorite, quartz, feldspar, soapstone, chinaclay, bentonite, siliceous earth, precious and semiprecious stones, etc.

Not indicated Not indicated

(*)Subject to availability of special funds from Govt. of India. K. Directorate of Geology and Mining, Tamil Nadu : Tamil Nadu is one of the leading States in the reserves of the following minerals : lignite, garnet, magnesite, quartz, feldspar, clay, limestone, bauxite, graphite and granite. The Department undertakes scientific exploration and facilitates optimal exploitation and judicious conservation of minerals. L. Directorate of Geology and Mining, Uttar Pradesh : Uttar Pradesh has many mineral deposits including gold, diamond, platinum of group of elements, granite and limestone. The minerals like rock phosphate, pyrophyllite - diaspore, silica sand, marble, dolomite, etc., are also explored by the Directorate. The functions of the Directorate include :

To explore the mineral resources by geological mapping, drilling and sampling for the estimation of reserves.

Engaged in the promotion of conservation and scientific development of mineral resources, and mineral based industries in the State.

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Exploration of base metals and high value minerals. M. Department of Mines and Minerals, West Bengal : The Department aims at scientific exploration of minerals found in West Bengal, i.e., apatite, asbestos, barites, base metals, china clay, coal, ochre, moulding sand, glass sand, graphite, mica and titanium ore. The activities of the Department include :

Mineral concession and regulation and environmental regulation Facilitating private participation in the exploration of Apatite & Tungsten and other

minerals Coal Bed methane production from the Raniganj coal reserves Opening up the State’s mining industry to private investment.

The exploration items that are proposed for XII Plan period by DMG, West Bengal

are given in Table-V-12

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Table-V-12 ACTION PLAN OF DMG, WEST BENGAL FOR THE XII PLAN

Sl. no.

Mineral Deposit/District Exploration inputs

1. Pyrophyllite

Phusra, P.S.Kasipur, Purulia District(Probable northern extension of the investigared mineralisation of Jinamonipur will be assessed)

Not indicated (one year item)

2. Apatite (Detailed Exploration of the deposit identified by GSI through Regional Exploration)

Kutni, P.S.Boro, Purulia District

Not indicated (three year item)

3. Apatite (Detailed Exploration of the deposit identified by GSI through Regional Exploration)

Chrugora, P.S.Boro, Purulia District

Not indicated (three year item)

4. Databank on investigated mineral resources of West Bengal in digital format and updating of state mineral inventory.

(Five years)

5. GPS survey of established mineral resources in parts of Purulia, Bankura and Birbhum Districts for registration of georeferences of the surface extents of mineral resources to develop database for Geoinformatics and Data Management and Tenement Registry.

(Five years)

6. Blackstone(Road metals) Purulia and Midnapur Districts

Not indicated (two year item)

7. Quartz Purulia District Not indicated (two year item)

8. Clay Bankura District Not indicated (four year item)

9. Magnetite and associated minerals

Saltora-Mejia area, Bankua District

Not indicated (two year item)

10. Quartz Bankura District Not indicated (four year item)

11. Silica sand Bankura District Not indicated (three year item)

12. Calibration of geophysical anomalies with mineralisation values of quartz vein

Bankura District Not indicated (two year item)

13. Blackstone(Road metals) Chhatna-Saltora-Gangajalghati area, Bankua and Birbhum Districts

Not indicated (three year item)

14. Talc-steatite Darjeeling district Not indicated (five year item-preferably in collaboration with GSI)

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15. Assessment of existing database of established mineral resources of West Bengal and further exploration in G-axis & F-axis as per UNFC guidelines as required to suite the acceptability.

16. Digitisation of existing and upcoming geospatial database for developing information layerson GIS platform to cater the need of mineral industry and interacting with other Central and State Agencies through portal service.

5.12.0. SUMMARY RECOMMENDATIONS FOR MINERAL EXPLORATION:

1. GSI to complete geophysical and geochemical mapping expeditiously, with the assistance of outsourcing and service contracts, if necessary so as to develop potential areas for prospecting which can be competitively awarded for further detailed exploration and utilization of proved mineral resources.

2. GSI to carryout 4200 sq. kms. Systematic Geological Mapping (1:50,000 scale) in NER and 80,000 sq. kms. Specialised Thematic Mapping (1: 25,000 scale) in the country.

3. The Geomorphological and Lineament Mapping (GMM) on 1:50,000 scale by GSI to be completed within 12th Plan.

4. GSI to complete National Geochemical mapping (NGCM) of the Obvious Geological Potential (OGP) areas by end of 12th Plan and rest of country of 13th Plan through outsourcing / service contracts if necessary.

5. Hyper Spectral Mapping (HSM) in OGP areas on 1:50,000 scale by end of 12th Plan. 6. National Aeromagnetic Mapping by the GSI in comprehensive and systematic manner

for OGP by end of 12th Plan and rest of the country (including off-shore) by end of 13th Plan through collaboration with stake holders and also through outsourcing / service contracts if necessary.

7. Conducting High –risk exploration for deep-seated mineral deposits through modern technology infusion.

8. To facilitate exploration activities GSI to prepare and implement project to enable 1:50,000 scale geological, geophysical, and geochemical maps to be served on internet in GIS platform in line with international practice under its Portal Phase III Project.

9. Special attention needed for exploration and search for strategic, scarce and deficit minerals to reduce imports.

10. Create National Geophysical Data Repository and National Drill Core Repository to assist entrepreneurs to take-up exploration.

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Physical Targets envisaged for work components of Mission-I – Geoscience Data Generation and for Mission-II – Mineral Resource Assessment of GSI are given below in a nutshell:

Work Component Total Target (sq.km.) Region-wise Target (sq.km.) Systematic Geological Mapping (1:50,000 scale)

4200

1. Northeastern Region 4200 Specialised Thematic Mapping (1:25,000 scale)

80,000

1. Central Region 16,500 2. Northern Region 11,000 3.Northeastern Region 8,000 4. Eastern Region 14,000 5. Western Region 13,500 6. Southern Region 17,000 Geochemical Mapping 2,83,500 1. Central Region 63,000 2. Northern Region 3,500 3.Northeastern Region 5,600 4. Eastern Region 47,600 5. Western Region 44,800 6. Southern Region 1,19,000 Geophysical Mapping 2,23,250 1. Central Region 51,830 2. Northern Region 20,700 3.Northeastern Region 8,160 4. Eastern Region 49,680 5. Western Region 48,960 6. Southern Region 43,920 Multisensor Airborne Surveys 76,000 & 1,50,000 L.km 1. Central Region 5,720 2. Northern Region 3.Northeastern Region 4. Eastern Region 5. Western Region 66,999 & 30,000 6. Southern Region 15,900 & 40,000 88619 & 70,000 Heliborne Surveys 1. Central Region 2. Northern Region 400 & 800 3.Northeastern Region 43,500 & 84,000 4. Eastern Region 5. Western Region 6. Southern Region 20,600 Geomorphological Mapping 4400 Toposheets

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In view of the several drastic measures that were contemplated for introduction during the middle of the XI Plan period and introduced at the fag end are yet to be implemented on full scale in the ensuing XII Plan period for fruitful results. In Baseline Geoscience Data generation, innovative concepts such as Hyperspectral Mapping, Geomorphological Mapping, Heliborne Surveys, etc., and in mineral exploration, introduction of technology infusion by way of the state of the art geophysical instruments for probing of deep seated ore bodies are all expected to bring in revolutionary changes in the near future in mineral resource surveys, exploration, prospecting and exploitation. Concomitant with this development, upgradation of skilled man-power resource and development of infrastructures have been taken up on priority basis. Along with augmentation of human resources within GSI so as to complete the envisaged targets, it has also been recommended by several committees, constituted to assess the functioning and performance of GSI, the balance of areas of OGP to be covered beyond the targets of GSI is to be outsourced with GSI being the Nodal Agency for effective monitoring and quality checking. Thus the GSI is poised for multifarious activities with the expectation of its performance on a higher degree of accuracy, precision and timely culmination.

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Table : V-1 : EXPORT OF MINERALS (2008-09)

S.No. Item Unit Quantity Value ('000

Rupees)

% of Total Export(2008-

09) 1 Diamond* ** 722606545 66.11 2 Iron Ore '000t 68904 217253097 19.88 3 Granite tonne 3958853 48149007 4.41 4 Alumina tonne 968245 15823892 1.45 5 Prec./Stone '000t 19637 7791082 0.71 6 Building &Monumental

Stone tonne 1291492 3783042 0.35

7 Coal (excluding Lignite)

'000t 1656 3484645 0.32

8 Marble tonne 306545 3628602 0.33 9 Emerald tonne ** 4800533 0.44 10 Bauxite tonne 3708188 0.34 11 Chromite tonne 1899028 9736103 0.89 12 Slate tonne 154017 20720520 0.90 13 Mica tonne 191037 1802852 0.16 14 Titanium Ores & Conc. tonne 226306 1872050 0.17 15 Zinc Ore & Conc. tonne 25 2389172 0.22 16 Garnet tonne ** 1939894 0.18 17 Barytes tonne 843789 2982457 0.27 18 Manganese Ore tonne 205424 9206074 0.84 19 Felspar (Natural) tonne ** 924103 0.08 20 Silica Sand tonne 17164 182087 0.02 21 Abrasive(Natural) tonne 156998 1444288 0.13 22 Steatite tonne 99520 650768 0.06 23 Fullers Earth tonne X X 24 Bentonite tonne 566890 1414440 0.13 25 Salt tonne 1001498 1487346 0.14 26 Gypsum & Plaster tonne 209157 157652 0.01 27 Wollastonite tonne 21413 220102 0.02 28 Graphite tonne 1909 91887 0.01 29 Magnesite tonne 12284 136358 0.01

(Source: IBM Mineral Year Book,2009) *Exports after processing the imported diamond in the country. * *Quantity not available - Export (including re-export) of ore & minerals at Rs.109296 Crores accounted for 13% of total

value of all merchandise export from India. - Increasing trend - 15.03% more than the previous year.

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Table : V-2 : IMPORT OF MINERALS (2008-09)

Sl. No.

Item Unit Quantity Value ('000 Rupees)

% of Total Import(2008-

09) 1 Petroleum(crude) '000tonnes 130042 3468454807 67.41 2 Diamond* ** 748858813 14.55 3 Coal

(Excluding Lignite) '000tonnes 59004 413413525 8.09

4 Coke tonne 1882191 46063197 0.90 5 Copper ore &Conc. tonne 2264732 178221088 3.46 6 Rock Phosphate tonne 5009662 48404898 0.94 7 Sulphur# tonne 1286429 29944603 0.58 8 Iron ore (Total) '000tonnes 69 611112 0.01 9 Prec.& semi Prec. Stone

(Total) tonne ** 4832841 0.09

10 Asbestos (Total) tonne 346658 8744931 0.17 11 Zinc ore & Conc. tonne 78201 2217983 0.04 12 Limestone tonne 3603340 5607948 0.11 13 Magnesite (Total) tonne 51422 1427008 0.03 14 Natural Gas tonne 8306769 128867509 1.28 15 Borax (Total) tonne 98533 1994633 0.04 16 Fluorspar tonne 153749 2558710 0.05 17 Bauxite(Refractory Grade) tonne 45612 988232 0.02 18 Kaoline tonne 62083 632016 0.01 19 Ball clay tonne 122026 755642 0.01 20 Mica (Total) tonne 2323 424930 0.01 21 Graphite tonne 7309 247346 22 Lead ore & Conc. tonne 5148 193822 23 Manganese ore (Total) tonne 852198 19818562 0.39 24 Sand-Metal Free tonne 1041318 332095 0.01 25 Gypsum tonne 890912 1419361 0.03 26 Tungsten ore & Conc. tonne 20 370 27 Vanadium ore & (Conc.) tonne 39 22500 28 Tin ore & Conc. tonne 979 464371 0.01 29 Dolomite tonne 10119 111105

(Source: IBM Mineral Year Book,2009) * Export after processing the imported diamond in the country. ** Quantity not available

# Excluding sublimed, precipitated and colloidal - Value of imports of ore& minerals at Rs.514509 Crores, accounted for 37% of the total value of all merchandise imported to India. - Increasing trend- 47% more than the previous year. - Deficit in mineral trading:

Import - Rs.514509 Crores Export (-) - Rs.109296 Crores Net deficit - Rs.405213 Crores

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Table V-3 : EXPORT OF MINERAL BASED PRODUCTS (2008-09)

S.No. Item Unit Quantity Value

('000 Rupees)

% of Total Export

(2008-09) 1 Petroleum Products '000tonnes 38572 1210860000 97.79 2 Cements (Total) tonne 3260261 8809436 0.71 3 Refractory bricks /

Firebricks tonne 730254 2675674 0.21

4 Soda Ash tonne 86203 1095634 0.09 5 Refractory Materials tonne 730254 2675674 0.22 6 Titanium Dioxide tonne 6833 616091 0.05 7 Caustic Soda tonne 56499 1435584 0.12 8 Graphite Products tonne 15899 968340 0.08 9 Phosphoric Acid,

Phosphorous & Phosphatic Fertilizers

tonne 76578 2542579 0.21

10 Potash Fertilizers tonne 41446 616524 0.00 11 Aluminium Fluoride tonne 8417 719245 0.01 12 Silicon Carbide

Products tonne 5661 206577 0.00

13 Asbestos Cement & Products

tonne 40659 484304 0.00

14 Bleaching Powder tonne 14939 638686 0.01 15 Boric Acid tonne 581 29567 0.00 16 Calcium Carbide tonne 250 8728 0.00 Total: 1234382643

(Source: IBM Mineral Year Book,2009) Export excluding petroleum products:Rs.123825 (-)Rs.121086 =2739 Crores

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Table V-4 : IMPORT OF MINERAL BASED PRODUCTS (2008-09)

S.No. Item Unit Quantity Value ('000 Rupees)

% of Total Export(2008-09)

1 Petroleum & Products '000 20327 642690000 69.16 2 Phosphoric acid/Element tonne 1656950 116546139 12.54 3 Potash fertilizer tonne 5062896 131474703 14.15 4 Fire Bricks/Refractory Bricks tonne 778781 10309931 1.11 5 Calcium carbide tonne 70861 2526028 0.27 6 Soda Ash tonne 358555 4120215 0.44 7 Titanium dioxide tonne 14090 1379447 0.15 8 Other refractories tonne 72574 1435321 0.15 9 Caustic Soda tonne 152446 2713648 0.29 10 Graphite(Artificial) tonne 32281 2080876 0.22 11 Asbestos cement, Boric acid, H.F. etc. tonne 11317 392037 0.04

Total: Rs. 915668345 (Source: IBM Mineral Year Book,2009)

Total import excluding petroleum etc. : Rs.92928(-)Rs. 64269 = Rs.28659 Crores Export of mineral products excluding petroleum & its products(-) Rs.2739 Crores Net deficit due to metallic & non- metallic sector = Rs.25920 Crores (Say Rs.26,000 Crores)

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Table - V-5: IMPORT OF METALS & ALLOYS (2008-09)

S.No. Item Unit Quantity Value ('000

Rupees)

% of Total Export

(2008-09) 1 Gold (Total) Kg. 771045 953238640 47.78 2 Iron & Steel (Total) tonne 11778361 603114119 30.23 3 Silver tonne 5696 94684290 4.75 4 Copper And Alloys & Scrape tonne 129662 10124299 0.50 5 Aluminium Alloys & Scrap tonne 564928 68722275 3.44 6 Nickel & Alloys tonne 20194 19362231 0.97 7 Zinc Alloys & Scrap tonne 94694 7977278 0.40 8 Lead And Alloys & Scrap tonne 209455 18878086 0.95 9 Ferro Alloys: Total tonne 140415 18147906 0.91

10 Silicon tonne 19998 2140234 0.11 11 Tin & Alloys tonne 5665 4604114 0.2 12 Platinum (Total) Kg. 53967 136803700 6.86 13 Cobalt Alloys & Scrap (Total) tonne 804 1766544 0.09 14 Tungsten Alloys & Scrap Kg. 303988 711863 0.04 15 Magnesium & Scrap tonne 7745 1640852 0.08 16 Pig iron (Spiegelisesen) tonne 35484 1780758 0.09 17 Antimony Alloys & Scrap tonne 967 245595 0.01 18 Molybdenum & Scrap tonne 420 1284932 0.06 19 Other Minor Imports (Tantalum &

Telurium) tonne 8++ 45573 0.00

20 Chromium Alloys & Scrap tonne 600 280271 0.01 21 Manganese (Total) tonne 7176 1191814 0.06 22 Selenium tonne 164 435275 0.02 23 Boron tonne ++ 3517 0.00 24 Cadmium & Scrap tonne 526 113505 0.01 25 Mercury tonne 115 90531 0.00

TOTAL: 1947388202 (Source: IBM Mineral Year Book,2009)

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Table ..V-6 : EXPORT OF METALS & ALLOYS (2008-09)

S.No. Item Unit Quantity Value

('000 Rupees)

% of Total Export (2008-09)

1 Iron & Steel Tonne 8381102 505364618 61.45 2 Copper & Alloys including Brass &

Bronze Tonne 278655 80988135 9.85

3 Aluminium & Scrap Tonne 429433 53404671 6.49 4 Pig & cast iron including Spiegeleisen Tonne 541757 14671746 1.78 5 Ferro Alloys Tonne 960100 68781535 8.36 6 Zinc & Alloys & Scrap Tonne 209434 18428890 2.24 7 Tin & Alloys & Scrap Tonne 2243 1296515 0.16 8 Tungsten Alloys & Scrap Kg. 166283 290497 0.04 9 Other metal & Alloys - - 218443 0.03

TOTAL: 743445050 (Source: IBM Mineral Year Book,2009)

1. This account for 9.8% of the total export. 2. Export of metal & alloys has been Rs.82239 Crores in 2008-09, registering an

increase of 23.93% as compared to previous year.

3. Deficit in international trade of metal& alloys:

Import - Rs.199489 Crores Export - Rs.82239 Crores --------------------------- Rs.117250 Crores ---------------------------

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Chapter VI

The Role of State Institutions in view of the National Mineral Policy – 2008 [TOR – vi]

6.1.0 Preamble 6.1.1 National Mineral Policy, 2008 is focused on encouraging private sector participation in exploration and mining in order to encourage discovery and scientific mining of minerals, including those at deeper levels requiring high technology at prospecting and exploration stage. The new Policy enunciates measures to streamline and simplify the procedures for grant of mineral concessions, develop a sustainable framework for optimum utilisation of the country's mineral resources for its industrial growth and at the same time improving the life of people living in the mining areas located in the backward and tribal regions of the country.

6.1.2 As per the NMP, the guiding strategy for development of any mineral should naturally keep in view its ultimate end uses in terms of demand and supply in the short, medium and long terms and it has to be market oriented, adopting mineral specific strategy to maximise gains from the comparative advantage which the country enjoys. Mineral development will be prioritized in terms of import substitution, value addition and export, in that order.

6.1.3 The Policy aims to ensure basic uniformity in mineral administration across the country, to ensure that the development of mineral resources keeps pace and is in consonance with the national goals.

Some of the important areas of focus in the new National Mineral Policy, inter-alia, are:

(i) Ushering in greater liberalization and private sector involvement. Widen the scope of the regulatory framework of the Government to focus from conventional areas of managing the mineral concession systems to regulating the mineral sector holistically through addressing issues of simplification, transparency and sectoral best practices in order to attract capital and technology in the sector.

(ii) Developing partnerships with stakeholders including State Government, various Ministries / Departments of the Central Government and Mineral industries, for development and conservation of mineral resources and a strategy to ensure raw materials security.

(iii) To ensure that the interests of host populations and other vulnerable sections are fully protected and the benefit of the economic activity in the mining sector flows equitably to the stakeholders.

6.1.4 There are a number of Govt. organizations, institutions and agencies engaged in the field of prospecting and exploration of minerals. These organisations along with their core capabilities are tabulated in Table – VI.1.

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6.2.0 The important organisations which have fundamental roles in the mineral industry are detailed below.

Geological Survey of India (GSI)

6.2.1 The Geological Survey (GSI) a premier organization of earth sciences was founded in 1851. In the hundred and fifty nine years since its inception, GSI has continued to expand and diversify into various geosciences activities, and made significant contribution in the developing Mineral Sector of the Country. Over the years, it has also attained the status of a geo-scientific organisation of international repute. The principal function of GSI relate to creation and updation of national geoscientific data and mineral resource assessment and conducting multifarious geo-technical and geo-environmental studies. The Geological Survey of India is an attached office to the Ministry of Mines. 6.2.2 The thrust areas of the Geological Survey of India were redefined and a new charter was created and notified during XIth Plan. The Charter includes: the creation and updation of national geo-scientific data-base through specialized

thematic studies, geochemical and geophysical mapping.

concept oriented search for concealed mineral deposits with stress on minerals in which the country is deficient, precious minerals, noble metals, strategic minerals and high-tech minerals.

compilation and digitization of maps for archival and disseminations by creating the GSI portal and interconnectivity between different GSI offices to offer easy free flow of data.

Up-gradation of field and laboratory equipments to improve its capabilities to discover hitherto undetected mineral targets.

6.2.3. A High Powered Committee (HPC) which was constituted by the Ministry to suggest measures for strengthening of the GSI has made number of recommendations including on issues of training and capacity building. The recommendations are being implemented in a phased manner.

6.2.4 To enhance the activity of interaction between various stakeholders the CGPB was constituted primarily to co-ordinate countrywide activities on geological mapping, mineral prospecting, exploration and exploitation, with the Geological Survey of India (GSI) as the nodal department and the State Geology and Mining departments and Central Government institutions as the participating members. The Central Geological Programming Board and its 12 Committees have been reconstituted to provide for better coordination between Central and State level stakeholders by encouraging the regular functioning of State Level Geological Programming Boards (SGPB), setup by the State Governments to achieve the requisite synergy. The Central Geological Programming Board is supported by 12 Committees for the various sub-sectors. The Committees meet twice a year and submit recommendations to the Central Board in respect of the respective sub-sectors.

6.2.5 It is also imperative to upgrade Central Geological Programming Board (CGPB) into a National Geological Programming Board (NGPB) for joint programming with States

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for sharing of resources and data and creation of synergy. NGPB Secretariat is to be located in GSI’s DGCO, New Delhi. 6.2.6 As a followup of the HPC recommendation and as operationalised by CGPB Committee XII on Geoscience for Sustainable Development, the Ministry of Mines has taken the lead to establish an Indian Geosciences Congress [IGC] as a registered body of professionals at Director General - GSI’s Camp Office at New Delhi. The IGC will help to enlarge scope for geoscientific intervention for sustainable development in different spheres of society in general and mining sector in particular where application of geosciences is required or possible and function as a non-profit body devoted to the cause of geosciences for interchange of geoscientific knowledge outside the official structures. 6.2.7 In line with national geoscientific priorities and GSI’s Vision, a Geoscience Advisory Council [GAC] has been constituted [to be notified shortly] to advise Ministry of Mines on geoscientific policy matters in general and the role and direction of GSI in particular to meet emerging challengens in the field of geosciences. GAC will be headed by Hon’ble Minister of Mines and consist of representiatives from Ministry of Earth Sciences, Ministry of Science and Technology, Ministry of Environment and Forests, Department of Atomic Energy, Planning Commission, etc. 6.2.8 GSI needs exposure to best international geoscientific practices and to emerging trends in geoscience, including geoscientific policy formulation in a multi-disciplinary environment. Funding from World Bank during XII Plan is proposed to be around Rs.265 crores for Technical Assistance particularly for knowledge upgradation in use of modern and sophisticated geophysical methods for regional mineral surveys; creation of a centre of excellence for fundamental and multidisciplinary geoscience research; re-organizing the GSI Portal as a geodata service for a variety of societal and economic purposes; and developing the existing training infrastructure to evolve into a world class capacity building centre [GSI-Training Institute, Regional Training Institutes and Field Training Centres]. 6.3.0 Indian Bureau of Mines (IBM) 6.3.1 The Indian Bureau of Mines (IBM) is a subordinate office under the Ministry of Mines. IBM prepares mineral maps and a countrywide inventory of mineral resources of leasehold and freehold areas. It is engaged in the promotion of scientific development of mineral resources of the country, conservation of minerals, protection of environment in mines. It performs regulatory functions, namely enforcement of the Mineral Conservation and Development Rules, 1988, the relevant provisions of the Mines and Minerals (Development and Regulation) Act, 1957, Mineral Concession Rules, 1960 and Environmental (Protection) Act, 1986 and Rules made there under. It also undertakes scientific, techno-economic, research oriented studies in various aspects of mining, ore beneficiation and environmental studies.

6.3.2 IBM also functions as data bank of mines and minerals and publishes statistical periodicals. It also brings out technical publications/ monographs on individual mineral commodities and bulletins of topical interest. IBM imparts training to technical and non-

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technical officials of IBM and also persons from the mineral industry and other agencies in India and abroad.

6.3.3 A committee has been constituted in the Ministry of Mines to review and restructure the functions and role of IBM in terms of the Policy directions given in the National Mineral Policy 2008. The Ministry of Mines has also persuaded the Government to allow the IBM to revive 86 scientific and technical posts, which had been abolished earlier.

6.3.4 As the frequency of updation of mineral inventory needs to be reduced, for handling huge inventory database and for online and continuous updation of mineral inventory necessary logistics in the form of structural changes, hardware and software needs to be provided. Once the online collection of data is initiated, the updation of National Mineral Inventory should be continuous process.

6.3.5 IBM performs a critical role that of an advisor to the Government in matters and issues of the mineral sector. It is felt that this is a core area of the functions assigned to IBM that would need substantial strengthening in terms of manpower and knowledge in areas of short, medium and long term mineral-wise strategies, Regional Mineral Development Studies, Mineral taxation and legislative processes keeping in view changes in technology and demand for a particular mineral or a group of minerals. Such information is crucial for policy and planning for the entire sector. IBM should evolve as a strong Mineral Intelligence Centre and policy thinker for addressing the varied issues of mineral security and create a mechanism for development of Models to identify the Demand and Supply of minerals keeping in mind both present and future needs. It will also extend advisory support services to the State Governments for formulation of State specific mineral policies and programmes within the ambit of National Mineral Policy.

6.3.6 The Mineral Economics Division of IBM would be required to play an important role in gathering mineral related intelligence for formulation of policies of mineral trading. IBM requires to devise a system for effective mineral intelligence and forecasting system in mineral trading to safeguard the national interest and ensure effective development of the mineral sector. Material studies incorporating the demand-supply- import-export for formulating medium and long term trade policies would need to be taken up. Frequent interactions with similar international organisations by way of meetings, seminars, conferences etc. need to be put in place. Close liaison with Trade Commissioners in the Indian Embassies of various countries would need to be a continuing activity. Presently the Mineral Economics Division of IBM handles these activities with limited staff. As a result the activities are confined to collection of data on production and resources and attending to references by way of notes on bilateral trade possibilities as and when received. In view of growing significance of world data, it is necessary to set up a World Mineral Intelligence and World Legislation Branch in IBM. This branch would consist of “Region Specialists” who would be involved in collecting, compiling and maintaining a database on country-wise and region-wise basis. This data may be collected through Indian High Commissions/Embassies in the respective countries and in some cases by deputing officers in important mineral producing nations as ‘Mineral Attaché.’

6.3.7 It is mandatory for all concession holders of non-coal major minerals to report their mineral reserves/resources as per UNFC. It is also mandatory for all successful

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applicants for mining lease to submit Mining Plans giving details of the reserves/ resources in the area proposed to be allotted to them in terms of UNFC. The UNFC practice guide mentioned in the MCDR illustrates the conditions to be satisfied for classification of exploration information vis- a-vis UNFC Codes for resource and reserve. In case of a holder of mining lease, and any Government agency conducting mining operation, the Mining Plan or Mining scheme should clearly indicate the annual exploration work that shall be carried out along with mining operations. The results of all the exploration work so carried out shall be reported to the IBM and State Directorate General of Mining and Geology, giving details of the mineral exploration in G3, G2 or G1 Axis, F2 or F1 Axis, and E2 or E1 Axis. In case of no find, the same shall be also reported as ‘Nil” report giving details of the exploration activities carried out. In case the holder of a mining lease fails to report as required above, IBM may recommend to the concerned State Government to take suitable action to cancel the Mining Lease for violation of MCDR, 1988 or MCR, 1960, as the case may be. 6.3.8 In case of non-freehold areas that are held under a mining lease, in all such cases where the resources or reserves have not been categorized in terms of UNFC, the mining lease holder shall be required to categorize his entire lease area into such areas that are covered under a mining scheme and such area which are not covered under a mining scheme. In case of areas covered under a mining scheme the lease holder shall be required to submit details of the exploration plan in the mining scheme, indicating the annual targets for completion of the exploration activity. 6.3.9 All mining lease holders shall be required to adhere to the timelines set above for reassessment of their resources and reserves in terms of UNFC, and report to the IBM. The IBM shall closely coordinate with the State Governments for ensuring imposition of special condition in all the mining leases and monitor the reports and ensure that all mining lease holders comply with the provisions of the special conditions. 6.3.10 In order to achieve the goal of ensuring mine level compliance with UNFC it is necessary to strengthen IBM with necessary manpower and institutional support. IBM is required to maintain data on exploration and assessment of resources and reserves in the country as per UNFC system. Therefore, IBM will have to undertake periodic field inspections of the Reconnaissance/Prospecting/Mining areas to ensure proper compliance of the UNFC after reviewing reconnaissance and prospecting plans proposals as filed under proviso of MCDR.

6.4.0 Mineral Exploration Corporation Limited (MECL)

6.4.1. Mineral Exploration Corporation Limited (MECL) is the premier exploration agency under the administrative control of Ministry of Mines to bridge the gap between initial discovery of mineral prospect and its eventual exploitation. It carries out mineral exploration activities both under programme funded by the Government of India and the contractual programmes on behalf of other agencies including Public Sector, Private Sector and the State Governments on agreed terms and conditions.

6.4.2 Considering the present need to concentrate on exploration of high tech., strategic minerals, platinum group of elements due to their application in high technology area as

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well as to augment resources of previous and deficit minerals, there is an urgent need for enhancement in the exploration efforts systematically to search additional mineral bearing areas by applying latest techniques of exploration in shortest possible time and in a cost effective manner. MECL is fully equipped and can provide all services right from prospecting stage to detailed exploration of mineral deposit. It has the facilities to undertake integrated exploration activities like Remote sensing, Detailed mapping, geophysical survey (both surface and borehole survey) geochemical survey followed by exploratory drilling, exploratory mining, analysis of samples, assessment of mineral deposits using latest software in the field of mineral exploration.

6.4.5Ministry of Mines is finalizing its programme of Repositioning of MECL in the light of NMP 2008 and long term goals of the sector.

6.5.0 State Directorates of Geology & Mining 6.5.1 The State Departments of Geology and Mining (DGM) of various states have a role in the exploration for minerals in addition to regulation and mineral administration. Exploration involve geological survey & mineral prospecting, detailed exploration by drilling, assessment of reserves & grade in lease hold areas, petrological & ore dressing studies. Mineral administration involves number of activities comprising grant of mineral concessions, collection of mineral revenue & dead rent, royalty assessment and collection, stoppage of illegal mining and illegal transportation of minerals, ensuring systematic & scientific mining, plantation, environment conservation and welfare schemes for mine labourers.

6.5.2 Many State departments are not equipped in terms of man-power and equipments to take up the works on Regional geological mapping, detailed mapping and drilling for detailed exploration as envisaged in the NMP. The Role, Function and Resource base of the DGMs of some of the mineral rich States are tabulated in Table – VI.2.

66..66..00 CCaappaacciittyy DDeevveellooppmmeenntt ooff SSttaattee DDGGMMss 6.6.1 The National Mineral Policy, 2008 has laid out the broad contours of the future evolutionary direction of the mineral sector. While the GSI will be the principal agency for regional mapping and survey and IBM will be instrumentality to ensure that the regulatory environment is conducive to investment and technology flows. The Policy gives a clear indication of the need for the Central and State Government to play a facilitating and regulatory role while encouraging more and more private sector participation in exploration and mining, so as to make it the main source of investment in the sector. The policy, therefore, requires that GSI, IBM and the State Directorate of Geology & Mining (DGM) be strengthened with manpower, equipment and skill sets for the purpose.

6.6.2 HPC has envisaged that the GSI Training Institute [GSI-TI] at Hyderabad should be developed into a ‘Centre of Excellence’ for providing high quality cutting edge training/ knowledge delivery with state-of-the-art facilities. Thus GSI-TI has embarked upon elaborate programme of capacity building based on wide range of Training Needs Assessment to raise the technical ability of departmental candidates, officers of various

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State Govts., students and research scholars and faculty from University and geoscientists from private sector. Six Regional Training Institutes and ten Field Training Centres are being established at different locations in India for providing specific Regional Training Modules. 6.6.3 The recent spurt in the illegal mining has resulted due to lack of capacity of the State DGMs to monitor the mining tenements and plan effectively. The States should have an online link with the Indian Bureau of Mines (regulatory authority of Central Governments) for effective remedial measures. 6.6.4 Most of the State DGMs lack adequate competence and laboratory backup for ore testing and beneficiation studies, in approval of mining plans, checking of illegal / unscientific mining, awareness about sustainable mining practices and GIS based mining tenements and mineral concession database etc. 6.6.5 However, there is a large gap in respect of the quality of resources in the State Directorates, which need to be addressed through a management and technology oriented intervention. The following components need to be addressed for upgradation of the DGMs in tune with the NMP 2008.

a. Setting up of laboratories for testing and, ore beneficiation studies. b. Creation of facilities for large scale (more than 1:50 K) geological, geophysical,

geochemical mapping. c. Setting up of Portals and Websites for geospatial data, mineral resource

inventories, tenement data and mineral concession related data and online linking with IBM.

d. Capacity building for reducing the time taken for processing of mineral concession applications

e. Creation of mechanisms to prevent and detect illegal mining. Setting up facility for the study of remotely sensed data for detection of illegal mining and training of the DGM’s officials.

f. Setting up of facilities for EIA and sustainable development studies. g. Creation of facilities for scrutiny and approval of prospecting and mining plans

and mine closure plans. This need to include management of mine closure events.

h. Training and human resource development for sector. i. Reclamation of the abandoned mines causing environmental degradation.

6.6.6 State Governments must be encouraged and facilitated to prepare Action Plans for their State Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession management including mining plan, closure and SDF; promotional R&D; and laboratory facilities. These need to be funded out of State Cess as per the proposed New MMDR Act. 6.6.7 The capacity development of State Mineral Development Corpns. must be facilitated and joint ventures in exploration with MECL and Central PSUs and private sector need to be promoted. To implement these State Governments need to provide the funding mechanisms for which a model mechanism has to be conceptualized.

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6.7.0 Other Government agencies / PSUs involved in mineral exploration 6.7.1 Atomic Minerals Directorate for Exploration and Research

The Atomic Minerals Directorate for Exploration and Research (AMD) is one of the oldest units of the Department of Atomic Energy (DAE). AMD started functioning from New Delhi in 1948 as the ‘Rare Minerals Survey Unit' and then as the ‘Atomic Minerals Division’ in 1958 till it was shifted to Hyderabad in 1974. It was established to carry out survey and exploration for the raw materials required for the atomic energy programme of the country.

The principal mandate of the organization is to carry out geological exploration and discover mineral deposits required for the nuclear power programme of India.

The main research and development (R&D) oriented activities of the Directorate include assessment, evaluation, characterization, and categorization of atomic minerals, design and fabrication of radiometric instruments and development of ore extraction flow sheets. The survey, exploration and research activities of the Directorate are to identify and establish the mineral resources of Uranium, Beach sand resources. Airborne gamma-ray spectrometric (AGRS), regional / detailed geochemical, geophysical and ground radiometric surveys are carried out to delineate favourable areas for exploration by drilling. Once a deposit is established, mutually agreed reports on reserve estimates are prepared jointly with the Uranium Corporation of India Limited (UCIL) for planning commercial exploitation.

6.8.0 Assessment of powers, roles, jurisdictions and limitations including overlapping of powers 6.8.1 The annexure on the core activities of different agencies involved in mineral prospecting / exploration related work (Table – VI.1) is apparent that there is significant overlap in the activities. To develop synergy in the activities of the different organization it is important that the structure and effectiveness of CGPB and SGPB is strengthened for mineral exploration programming in the Country. 6.8.2 GSI and IBM have defined charter of functions, powers, roles and jurisdictions. However GSI need concentrate in developing National Map of aero-magnetics, geochemical and geophysical, besides the geological, baseline data. IBM needs to prioritise the development of online tenement registry and computerization of NMI besides its other functions. 6.8.3 The State DGMs need to be strengthened with man power, equipment and skill sets either through Central assistance or through their own resources for implementing a far more extensive programme of mineral exploration. This is especially important with the requirement of reassessment of reserves with the reduction in the threshold value of 22 minerals.

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6.8.4 The forest clearance issue needs to be revisited, reviewed and necessary amendments introduced to the FC Act in view of the fact that most of the deposits to be explored lie within forested areas. 6.8.5 The exploration activity is also affected at times on accounts of the jurisdictions of the Central and State Governments and by the Government and Private sector interactions. The state governments award the Reconnaissance Permit to private parties for the reconnaissance of the larger areas. Many of these parties hold the areas without doing any thing for a long period or say up to the expiry of the R.P. During this period the area neither gets explored by these parties nor by the government agencies involved in the exploration activities. 6.9 Recommendations and Suggested changes required in the functioning of the institutions in view of the NMP - 2008 6.9.1 GSI need to collaborate and train the DGMs for baseline data generation, so that it may concentrate its resources in the upcoming challenges of locating deep and concealed deposits and sophisticated and upgraded baseline data. It needs to also concentrate on geological, geophysical and drilling capacity upgradation. GSI need also to explore the possibility of expeditious baseline data generation with the assistance of outsourcing and service contracts if necessary. 6.9.2 IBM should evolve as a strong Mineral Intelligence Centre and policy thinker for addressing the varied issues of mineral security and create a mechanism for development of Models to identify the Demand and Supply of minerals keeping in mind both present and future needs. 6.9.3 DGMs need to give a greater thrust on exploration; co-ordination with GSI on baseline data generation through CGPB; and collaboration with Pvt. Ventures in prospecting and exploration. The resource base of the DGMs needs to be strengthened for taking up these activities on a more extensive scale. The upgradation in man power, equipment and skill is especially important with the requirement of reassessment of reserves with the reduction in the threshold value of 22 minerals. Capacity upgradations of the DGMs are also required for reducing the time taken for processing of mineral concession applications. 6.9.4 A percentage of the royalty/ cess collected by the States, as contained in the draft MMDR, need to be dedicated for capacity development of the DGMs for an enhanced role in mineral exploration and mineral administration. 6.9.5 State Governments must be encouraged and facilitated to prepare Action Plans funded by their own resources for their State Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession management including mining plan, closure and SDF; promotional R&D; and laboratory facilities. 6.9.6 Central agency like MECL need to continue with the detailed exploration of potential prospect through Government funding till such time the domestic private

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companies along with junior global companies are fully engaged with serious exploration ventures in Greenfield areas. 6.9.7 GSI and MECL should also give adequate emphasis for locating concealed & deep seated deposits through concept driven approach. This methodology on the one side will attract investors coming to the mining sector as well as create a shelf of reports available readily for investment in the small deposits. 6.9.8 The global trend also points towards an accelerated utilization of low grade ores through proper blending and beneficiation techniques. Keeping in view consumption trends of the finite mineral resources and also in view of mineral security utilization of low grade ores needs to be aggressively encouraged. IBM needs to take a lead in this regard. 6.9.9 In the exploration ventures, especially in the Greenfield, close interactions with the reputed educational institutes may be highly beneficial for knowledge build up and induction of modern laboratory determination techniques. The Government, through national and State agencies, should provide support to the industry by conducting regional search for favourable metallogenic domains and preliminary prospecting in the form of promotional grant. 6.9.10 Following the example of countries like Australia, Canada and USA who are highly ranked by Fraser, India needs to have a dedicated centre for R&D in Exploration. As the stress towards concealed and deep seated deposits will need to increase, GSI and MECL in collaboration with academic institutes like ISM and IITs need to develop a centre for R&D in Exploration.

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Table – VI.1 SYNERGY AMONG DIFFERENT AGENCIES DOING EXPLORATION / PROSPECTING RELATED WORK IN INDIA

GSI- Geological Survey of India, MECL – Mineral Exploration Corporation Limited, IBM – Indian Bureau of Mines, DGM – State Department of Geology & Mines, AMD - Atomic Minerals Directorate for Exploration and Research, Department of Atomic Energy, MOIL – formerly Manganese Ore India Ltd., NMDC – National Mineral Development Corporation Ltd., NGRI – National Geophysical Research Institute, NRSC – National Remote Sensing Centre, NIO – National Institute of Oceanography, NCAOR – National Centre for Antarctica & Ocean Research, DES – Department of Earth Sciences, ONGC – Oil and Natural Gas Corporation, CMPDI – Central Mine Planning and Development Institute, Univ. – Universities including Indian Institute of Technology at Kharagpur, Roorkee and Mumbai, Indian School of Mines, Wadia Institute of Himalayan Geology, Institute of Geomagnetism, National Institute of Ocean Technology, Indian Institute of Science, Centre for Earth Science Studies & Indian Institute of Petroleum

Sl. No.

Activity GSI (1)

MECL(2)

IBM(3)

DGM (4)

AMD(5)

MOIL(6)

NMDC(7)

NGRI (8)

NRSC (9)

NIO (10)

NCAOR(11)

DES (12)

ONGC (13)

CMPDI (14)

Univ. (15)

1.Regional Systematic mapping on progressive scale

2.Regional exploration for minerals

3.Detailed exploration for minerals

4. Geophysical survey

5.Surface geochemical survey

6.Geomorphological and lineament mapping

7. Marine Survey

8.National Mineral Inventory and Register of Mining Tenement

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Table – VI.2

The Roles, Functions and Resource Base of the State DGMs

Resource Base Sl. No.

State Role & Function Human Resource

Infrastructure Funding Modernisation Proposal

Remarks

1 Andhra Pradesh

Mineral investigation, exploration, estimation of reserves, mineral regulatory work involving processing of mineral concessions, monitoring of production, mineral audit and development of Mineral based industries in the State.

967 (Total Sanctioned)

Theodolites, resistivity survey (geophysical) instruments and scintilometers; AAS, Flame Photometer, Jaw Crusher etc.

Rs. 11 Crs (2011-12)

Strengthening in terms of man power and infrastructure. Enhanced budgetary allocation for modernisation

2 Chhattisgarh Exploration of mineral resources as well as mineral development and regulatory work involving processing of mineral concessions and collection of revenue.

38 Geologist 31 Chemist 33 Drilling personnel 10 Surveyors

Remote Sensing, Cartography, Survey, Drilling, Petrological facilities and Chemical laboratory.

Rs. 82 Crs for XIth Plan

Upgradation of Remote sensing, petrology and survey facilities, Development of Mining Tenement Registry System

Rs 150 Cr. is expected for 12th Plan for mineral exploration and development

3 Gujarat Mineral exploration, development & administration of Industrial minerals and dimension and decorative stones; Geological Surveys to Regulate Mines and Mineral Developmental activities.

4 Jharkhand Exploration for minerals; Regulation and administration of mines and minerals; Granting Mineral Concessions; Collecting revenue;

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establishment of mineral-based industries; Mineral Conservation and Mine closure.

Resource Base Sl. No.

State Role & Function Human Resource

Infrastructure Funding Modernisation Proposal

Remarks

5 Karnataka Geological and structural mapping; Mineral resources estimation; Environmental Impact Studies; Mining regulation; Mine revenue and royalty collection, etc.

65 (Tech) (including 33 Geologists)

chemical laboratories and metallurgical laboratory

6 Kerala Mineral Exploration; granting of mineral concessions and collection of royalty; scrutiny of PL reports; convener of SGPB; extending mineral exploration service to Pvt. Sector.

15 Geologists Drilling machines, chemical laboratory and gem testing laboratory

10 more geologists and training of geologists in mineral exploration

7 Madhya Pradesh

Geological Survey and Mapping; Mineral Prospecting and delineation of mineral deposits; Processing mineral concession applications; Collection of mineral revenue.

65 (Tech) 31 (Driller) 13 (Surveyor) Total : 318

Chemical Laboratory, Petrological Laboratory and Photogeological cell

Rs. 33.72 Crs (XIth Plan)

Manpower enhancement; Equipments and Training of personnel

Rs. 80.73 Cr. (XIIth Plan)

8 Maharashtra Geological Surveys and drilling; Processing of mineral concession applications, assessment and collection of mineral revenue.

480 total sanctioned.

Additional 30 officers and 30 staff; Training of personnel; Rs. 2.5 Cr. for IT connectivity

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with District and Regional Offices Rs. 4 Crs for vehicle , video camera, GPS

Resource Base Sl. No.

State Role & Function Human Resource

Infrastructure Funding Modernisation Proposal

Remarks

9 Orissa Mineral exploration; Ground geophysical survey for mineral;

Mineral targeting base on High Resolution Aeromagnetic Survey; Environment impact assessment study in mining belts, Remote Sensing application for mineral targeting, environmental and coastal geomorphological studies.

Sophisticated laboratory facilities

10 Rajasthan Mineral search & prospecting, assessment of reserves, drilling, assessment of reserves, ore dressing studies

Mineral administration involving processing of mineral concessions, collection of revenue, rent, royalty, environment conservation and stoppage of illegal mining.

73 Geoscientists, 87 Mining Enggs 8 Chemists 10 Drill Enggs.

Petrological and Chemical Labs and Drilling Units.

Rs. 40 Crs for XIth Plan

Rs. 32.50 Crs for five truck mounted coring drill rigs, two Wire Line drill machines for deep drilling (upto 800-900 m depth), Survey equipments, Modernisation of chemical labs and manpower for exploration.

Rs. 80 Crs. is required for XIIth Plan

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11 Tamil Nadu Scientific exploration;

facilitates optimal exploitation and judicious conservation of minerals.

154 (Tech.)

12 Uttar Pradesh

Mineral Exploration and Prospecting; estimation of reserves; Mineral administration including survey monitoring and revenue collection.

631 (Total) Chemical analysis & beneficiation of minerals; Photogeology and remote sensing lab; Geophysical Lab; and Drilling

Modernisation and Capacity building through Khanij Vikas Nidhi established in 1998.

State Govt. has created Khanij Vikas Nidhi with 10% of mineral revenue

Resource Base Sl. No.

State Role & Function Human Resource

Infrastructure Funding Modernisation Proposal

Remarks

13 West Bengal Prospecting and Exploration of minerals; Reserve estimation; Processing mineral concession and regulation; Assessment of Royalty and Dead Rent.

271 Total Sanctioned, Filled up 127

Rs. 5.57 Crs. for XI Plan from State Plan

Rs. 11.4 Crs. Requirement for modernization in XII Plan

Development of Geoinformatics, Data Management, Portal Services, Training in mineral exploration, procurement of necessary laboratory equipments are required and proposed for XII Plan

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Chapter VII Exploration Activities by Private Sector – Prospects and Constraints

[TOR – v] 7.1.0 Preamble 7.1.1 India fares poorly among mining nations in terms of score/ ranking, in the 2001 World Bank sponsored “Mining Sector Reforms and Investment: Results of a Global Survey” and also in the Fraser Institute’s “Policy Potential Index” as measured in 2006-07 and 2009-10. An unenviable situation has arisen where rather than foreign investors flocking to India, it is Indian entrepreneurs who are going overseas in search of mineral resources. Similarly regarding FDI although the cumulative foreign investment had touched around US$ 800 million by February 2011, this has largely been confined to mining projects e.g. Vedanta’s aluminum complex. The investment in prospecting/ exploration has been miniscule. 7.1.2 Despite the geological potential and both in terms of the data generation by the national survey organisation and in terms of the concession framework, it was observed that investments in exploration are still grossly inadequate. As regards access to capital for exploration, there are huge inadequacies which need to be addressed to provide the requisite investor confidence. 7.1.3 Mining essentially comprises prospecting and exploration, including appraisal and evaluation; followed by, if found viable, mining and beneficiation. 7.1.4 Exploration/ prospecting for discovery of new resources necessitate specialized knowledge and expertise. In most countries, be it the USA, Canada, Australia, South Africa etc, exploration is not a state sponsored activity. Instead through incentives that guarantee security of tenure, priority in grant of concession, free transferability etc, small private but dedicated exploration companies, often focused on a particular mineral or a group of minerals, are encouraged to function in this line of activity. These companies are mostly funded by venture or hedge funds, and market forces decide fund allocation and the choice of commodity. 7.1.5 The Geological Survey of India the principal agency for geological mapping and regional mineral resource assessment in the country. Detailed survey and exploration is done by Mineral Exploration Corporation and Directorate of Mining and Geology of State Government and various Central Public Sector organizations in the country. Since the exploration requires large financial inputs, exploration of mineral resources was opened to private (Indian and foreign) investment as enunciated in the National Mineral Policy of 1993 (NMP 1993). Initially many global mineral resource conglomerates evinced keen interest, attracted by the country’s excellent but largely under explored geology, with huge tracts underlain by potentially mineral rich proterozoic and greenstone belts similar to those of Canada and Australia; Large pool of skilled geo-scientific personnel; functioning legal and administrative frame work; good banking system and large population of potential investors. 7.1.6 In India mineral concessions are granted by states, as per their own policies, interests and priorities which often are not in consonance with NMP 2008. On many occasions, commitment for investing in downstream smelting/ refining installations within the state are sought at the time of grant of RP/ PL which defeats the purpose of fostering exploration entrepreneurship. The preference/ priority accorded to captive

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mining and providing ‘linkage’ to downstream plants (steel, cement, power etc) in allotment of mineral blocks by many States acts as a disincentive to investments in prospecting and exploration which are based on geoscientific considerations. The location of industry for downstream value addition and end use are techno-economic decisions, based mainly on the availability of infrastructure, manpower and overall governance, which need to left to the entrepreneur. 7.1.7 Globally, investment in mineral exploration is limited to select commodities which are (in decreasing order): gold; copper-zinc-lead-nickel; diamond; and platinum group. These are high value – low volume commodities, and their discovery involves a great deal of risk and therefore high level of investment. Consequently, world over rather than expending tax-payers’ money, ‘junior exploration companies’, funded by private capital, are encouraged to pursue such risky activities. 7.1.8 India needs to encourage exploration and mining of such commodities through the initiative of private entrepreneurs. Barring reservation of sensitive areas, all area which have potential of hosting these commodities should be kept open for private investment. Incentives to attract private investment can be in the form of expeditious grant of concessions, security of tenure, seamless transition from RP to PL and PL to ML, and free transferability of concessions without prior approval as enunciated in the NMP. 7.1.9 Bringing the taxation regime at par with the global standards can make the industry globally competitive and lead to an inflow of private investment in mineral exploration. So far India does not have a mechanism and practices in place where private exploration companies can raise risk capital from the market, or one that promotes the establishment of venture capital or hedge funds. 7.1.10 While the Government agencies will continue to perform the tasks assigned to them for exploration and survey, the private sector would in future be the main source of investment in reconnaissance and exploration and government agencies will expend public fund primarily in areas where private sector investments are not forthcoming despite the desirability of programmes due to reasons such as high uncertainties. To expedite completion of reconnaissance work for the entire country as early as possible an open sky policy will be adopted. At the same time to attract large investments and high technology for locating deep seated and concealed deposits of minerals, a new instrument to be known as High Technology Reconnaissance cum Exploration Licence is proposed to be introduced through the new MMDR Act. 7.1.11 It will be ensured that regional and detailed exploration is carried out systematically in the entire geologically potential mineral bearing areas of the country using state-of-the-art techniques in a time bound manner. Zero waste mining will be the National Goal and mining technology will be upgraded to ensure extraction and utilization of the entire run-of mine. The regulatory environment will be improved to make it more conducive to investment and technology flows.

7.2.0 Status and Review of private investment made and mineral exploration carried by Private Sector.

7.2.1 Investment made and exploration carried out by some important Private firms, amongst many others, are collated below :

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7.2.1.1 Hindustan Zinc Ltd.(HZL) : A Sterlite Group/ Vedanta Resources Company is India’s first and only fully integrated zinc-lead producer with lowest cost production globally.

Besides detailed mine exploration for proving and delineation purposes, HZL has been aggressively pursuing regional green and brown field exploration over eight RPs covering 4130 sq.km. area in Rajasthan, Gujarat, Maharashtra, Karnataka, Uttrakhand and HP under a country wide reconnaissance programme to identify areas for further prospecting. Already 14 PL applications (250 sq.km.) in Rajasthan, TN and MP are pending approval for grant.

In recent years it as been achieving around 70,0100 meter per annum of drilling utilizing specialised techniques enabling reaching depths of even +1000 meters in deep probing holes. Going forward, it intends to ramp up the drilling rate to 80,000 – 100,000 meters per annum.

HZL’s (regional) exploration budget is in the range of $8-10 million per annum. 7.2.1.2 De Beers India Private Limited : It is a subsidiary of world’s leading diamond producer. It commenced exploration activities in India in 2001 initially from AP and Karnataka and subsequently extended to MP, Chhattisgarh, Orissa Maharashtra and Jharkhand.

Area covered by RP is over 80,160 sq.km. (53 Nos) of which around 34,000 sq.km. was during the XIth Plan period. It presently holds 6317 sq.km. in RPs and an additional 343 sq.km. in 12 PLs. DIPL has discovered a total of 46 kimberlites/lamproites in India : 29 in Karnataka, nine in Orissa and eight in Andhra Pradesh. Based on the four lamproites discovered on he RPs in Kurnool district of AP, DIPL applied and was granted PLs over an area of 343 sq.km. However, as exploration results on the PLs were not encouraging, all the PLs were relinquished. Work is in progress on the Mahbubnagar RPs in AP, where four kimberlites were recently discovered. As such DIPL has not established any reserves or resources for diamonds in India.

DeBeers has expended over Rs.130 crores in exploration so far, of which Rs.33 crores was during the XIth plan period.

7.2.1.3 Rio Tinto India Pvt Ltd. : It is a subsidiary of the global mining conglomerate with interests in a diverse range of commodities. In India it has concentrated basically on diamond exploration and recently iron ore and bauxite. It has covered over 40,000 sq.km. in a number of RPs spread over five states. It has discovered 36 kimberlites pipes, of which ‘Bunder’ deposit in MP is undergoing $60 million pre-feasibility studies. It is continuing exploration activities in six States for iron ore and bauxite, besides diamonds. Since 2002 till date , Rio Tinto has spent approx. Rs.150 crores on exploration in India. 7.2.1.4 Vale India Private Limited : Vale India Private Limited, the latest global mining major to enter India, a subsidiary Indian Company of Vale Group has started its operation in India from 2005 basically looking for areas for Reconnaissance & Prospecting purposes with focus on bulk minerals like Iron, manganese, coal and also for base metals and PGE prospects. It has identified few potential areas in the States of Orissa, Maharashtra & Andhra Pradesh for its prospecting and reconnaissance work. One RP & 9 PL applications have been submitted from 2008 to till date and grants are awaited for investment in exploration activity in these areas.

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7.2.15 Anglo - American Group : is another diverse commodity global exploration and mining conglomerate. It entered India in 1999, and between 2001 and 2007 covered approx. 30,000 sq km through a number of RPs in Rajasthan (22,000 sq km) and AP (8,000 sq km) in search of base metals at an outlay of over $ 5 million. Its RP applications in Jharkhand are pending since 2003. 7.2.16 Adi Gold Mining Pvt. Ltd. : is the India specific subsidiary of Canadian registered Pebble Creek Mining, with interest solely on base metals. It acquired 3.86 sq km PL over the Askot (copper-zinc-lead, with subordinate amounts of Ag-Au) deposit (Pithoragarh district) in 2000. Adi Gold has expended $ 13 million on exploration of the deposit. In 2005, it applied for conversion of the PL to ML which although granted is still subject to Forest/ Wildlife clearance. 7.3.0 Constraints in attracting Private Investment in Exploration 7.3.1 Notwithstanding the well-intentioned objective of opening up the mineral sector to private investment, the primary reason for the failure to achieve the goal can be ascribed to the inability to translate the spirit of the policy into concrete terms that would attract and facilitate private investment. Thus necessary reforms for creating a conducive environment still remain to be framed, let alone implemented. 7.3.2 The new National Mineral Policy (NMP) 2008 seeks to correct the situation and takes note of areas, such as grant of mining permits, where sectoral reforms are required. Now that necessary provisions have been proposed in the draft MMDR Bill 2010, it is hoped that the global perception may improve. 7.3.3 Reservation of areas: The National Mineral Policy 2008 (NMP 2008) states in Para 5.2, “Private sector would in future be the main source of investment in reconnaissance and exploration, and government agencies will expend public funds primarily in areas where private sector investment are not forthcoming …..”. However in stark contrast, enormous areas continue to be reserved for exploration by government agencies such as the Geological Survey of India (GSI), Central Mine Planning and Design Institute (CMPDI), State Directorates of Mines & Geology (DMGs), besides Mineral Exploration Corporation Ltd, state government undertakings etc Thus private entrepreneurs are not only deprived of large areas which are potentially attractive for conducting exploration, but are perceived as competitors by the state agencies that otherwise should function as facilitators. 7.3.4 Even though major mining conglomerates may have separate exploration divisions for augmenting their reserves/ resources, in most cases the risky task of discovering mineral deposits is usually the preserve of small but highly proficient and focused organizations, referred to as ‘junior exploration companies’. These junior companies are offered incentives to aid them in their exploration endeavours. In many cases the initial discovery is made by these juniors, who then dispose of the concession to the majors, and themselves move to newer fields. 7.3.5 Risk Capital: To fund their activities, the ‘junior exploration companies’ depend on either hedge or venture funds for their capital requirement, which they usually raise from the stock exchanges. However in India, regulations do not permit such stand

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alone companies to list on the stock exchanges, and consequently raise risk capital from the market. In this way, India is deprived of the services and benefits accruing from such entrepreneurs. 7.3.6 Fiscal Regime: Globally the Indian mineral industry is one of the most highly taxed. Mining activity does not invariably produce windfall profits. The risk involved in mineral exploration and mining needs to be highlighted, where the costs of number of previous failures have to be offset by the so-called ‘windfall-gains’ arising from a single subsequent economic discovery (bonanza). Under such a highly taxed regime, it is felt that very few entrepreneurs would come forward to invest in the Indian mineral sector. 7.3.7 Security of tenure is currently not guaranteed under prevailing regulations. Any investor who has spent time and money on prospecting and exploration would like to be assured of security of tenure and seamless transfer of concessions, e.g. R.P to P.L, and P.L to M.L. The expression, “Preferential Treatment” in the present rules is ambiguous and could give scope for exercising undesirable discretion. There have been instances, where under the guise of “In the interest of mineral development’, RP holders have been deprived of the opportunity to secure PL, by allotment of the prospected area to state agencies. 7.4 Status and Review of access to geological and exploration data 7.4.1 GSI has covered almost whole of the country on 1:50,000 scale geological maps. Geophysical and Geochemical mapping of the country are in progress. All the 4905 1:50K Geological Maps are available in digital formats. Digital GCM maps on 1:50K with distribution contours 42 to 59 elements of 300 toposheets are also available. GSI has also made available digitised ground GP Maps on 1:50K of 84 toposheets. There are 84 1:50 K sheets wherein digitised data of GM, GCM and GPM can be integrated (in parts of Andhra Pradesh, Karnataka, Orissa, Maharashtra, Haryana, Uttarpradesh, Assam, West Bengal, Meghalaya, Tamil Nadu and Jharkhand)

7.4.2 One of the directions of the National Mineral Policy is that in order to exploit the country's geological potential it is important that scientific and detailed prospecting is carried out in search of its mineral resources. It has to be ensured that regional and detailed exploration is carried out systematically in the entire geologically conducive mineral bearing area of the country using state-of-the-art techniques in a time bound manner. The GSI has been geared to make all its reports, maps, etc. (non-restricted, non-sponsored) available free of cost and upload the same on the GSI portal. However, at the same time the sale of printed copies continues and the pricing of these publications is done as per the guidelines issued from time to time.

7.4.3 GSI has a made available most of its geoscientific data on the public domain. The Policy of data dissemination GSI in this regard is summarized as under.

7.4.3.1 Published Maps: GSI will continue to print and publish maps of different scales and themes both as hard copy prints along with soft copy (pdf) format contained in CD after obtaining statutory clearance from SOI/ MOD as required. Hereafter all State Geological & Mineral maps as and when published will also be available in GSI portal as raster images for free viewing in the public domain.

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7.4.3.2 Published Reports & Journal: GSI prints and publishes scientific documents (containing text and graphic data) through different serials (Records, Memoirs, Journal of Geoscience etc) enlisted with the Controller of Publication. Most of these printed books will also be made available in GSI portal after its release depending upon available bandwidth and hardware-software configuration of the GSI portal.

7.4.3.3 Unpublished Maps: The uploaded maps will be converted as images along with sheet-specific legends and will be made available in the Internet. Paper prints of these maps will also be available for sale. Dissemination of other unpublished thematic maps with or without customisation will also be guided by the same principle.

7.4.3.4 Unpublished Reports: GSI unpublished reports will be classified as:

(a) Limited Circulation reports (reports on exploration of all minerals including energy minerals, which are not sponsored/ promoted by other organisations)-- text part of the report with maps of 1: 50K and smaller scales will be uploaded in GSI portal for viewing in the public domain. The hard copy of the report will be available for sale under the existing pricing policy from the respective Regions/ Wings and Operational offices. Free distribution and other modes of dissemination of hardcopy to various organisations will be discontinued hereafter.

(b) Open-File Reports (all other reports including mapping, societal issues, R&D etc); For category (b), there will be 4 subcategories:

(b)(i) Reports on earthquake geology & seismology; landslide; environmental geology and other reports covering societal issues released 2004 onwards will be uploaded in GSI portal in its complete form for downloading/ printing, except the reports selected by GSI for conventional printing/ publishing. Priority of uploading will depend on the assessment of demand, particularly by the State Government Departments. Uploading of reports released before 2004 will be considered based on specific request. Henceforth these reports will not be priced. (b)(ii) Reports on geological/ thematic mapping containing maps of 1:50K and or 1: 25K without SOI topographic contours will be put in the portal after 2 years of release/ circulation within GSI. This is the minimum time required for the authors(s) of the report to publish their work in national/ international journal. (b)(iii) Reports on geochemical mapping will be uploaded with the geochemical maps (contours) of specific elements for public viewing. In future when data of all the 68 elements will be available part raw data indicating soil fertility, elements of health hazard etc will also be uploaded along with the report. Hard copy of the report will be available for sale along with the maps/ data to exploration agencies both private and public.

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(b)(iv) Reports/Data/ Maps generated through R&D projects particularly those having immediate utility to the Society/ Research community will be uploaded in GSI portal. Henceforth these reports will not be priced. (c) Restricted Circulation Reports (primarily Marine, aero-geophysical and ground gravity survey reports): For these reports the existing practice/ policy will continue till SOI/MOD revises its restriction policy. (d) Secret Reports (those sponsored by Defence and or containing sensitive text/ graphic data) and (e) Sponsored Project Reports (reports generated through commercially sponsored investigations): These Reports will not be put in the public domain. 7.4.5 It is recommended that GSI must prepare and implement the project under its Portal Phase IIII (OCBIS) to enable serving of 1:50,000 scale geological, geophysical and geochemical maps on Internet in GIS platform, in line with international practice. 7.4.4 GSI is also making available on its Portal the metadata, after the statutory lock-in period, on the RP reports submitted by the RP holders. 7.5 Review of issues related to Mining Tenement Registry 7.5.1 The NMP 2008 lays down that a national inventory of mineral resources will be based on a comprehensive and up to date review of exploration data. Indian Bureau of Mines will maintain a database in digitized form comprising both a Resource Inventory and a Tenement Registry in accordance with the latest version of the UNFC system. The Tenement Registry will also give information of both Leasehold Areas as well as Freehold Areas in terms of green field, brown field and relinquished areas given up reconnaissance permit /prospecting licence holders. Summaries of work done by public agencies will be kept in the form of meta-data in the public domain after the mandatory lock in period and detailed reports will be made available to interested investors on cost recovery basis. 7.5.2 In some developed countries like Australia and Canada, a specialised software has been designed and developed which displays the details such as ownership, area granted, mineral worked, tenure of the concession, taxes, quality and quantity of the ore deposit, area relinquished after reconnaissance of RP and PL, area available for grant, prospecting reports available, details of infrastructure, land details with ownership status, etc. This online Computerised system has been found very user friendly, as it provides the information on GIS platform. The information available online has speeded up the decision making process and has attracted huge investment in mining industry. 7.5.3 Updated tenure maps in hard copy, ‘single window’ service for Concessions / Permits, Licenses and on-line status of application needs to be implemented by the State Govts. IBM should be an active participant in maintaining and updating the tenement registry. 7.5.4 The project on Computerized Online Register of Mining Tenements envisages display of information on Mineral Resource of the country (excluding atomic minerals, oil and natural gas) to achieve all the objectives as enunciated in the National Mineral Policy.

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7.5.5 The on-line Computerised register of mining tenement system would have graphical information database (GIS) as well as information in textual form. The part of the textual information is already available in IBM’s existing database. 7.5.6 These two databases, i.e., non-spatial database and spatial database would be seamlessly integrated so as to retrieve graphical information as well as relevant textual information. 7.5.7 The system will be thus web-enabled and access to the system will be given online to prospective investors, government organizations and private public through Internet as per policy of the Government. This will provide the information pertaining to mining industry in India as per need of the global requirement resulting in huge growth of the mineral sector. 7.5.8 It is recommended to implement project on Mining Tenement Registry and link up with State Land Records Database for digitized cadastral maps. IBM and 10 mineral rich States need to be enabled to upgrade their Hardware, Connectivity and Software for executing this project. 7.6 Strategies for facilitating private sector in mineral exploration 7.6.1 Simplification of the procedures for RP/ PL/ ML applicants.

A common grievance of private enterprises relates to the process of granting RP/ PL blocks which often takes six to seven years, or even more. According to MCR, 1960 the State Government is to dispose off applications for RP in 6 months, PL in 9 months and ML in 12 months. However, it takes several years even for grant of a RP. To curtail the entire process, it is imperative to not only drastically reduce the number of procedures involved, but also simplify and expedite them to the extent possible, and preferably bring them all under a ‘single window’, which should be responsible for grant in a time bound manner. 7.6.2 Transparency in the transactions. Transparency in all public dealings is essential to inspire confidence in the system, and thereby attract investors. Concessions need to be granted in a transparent manner within a fixed time frame. For this purpose, a system of on-line tracking of applications needs to be established.

7.6.3 Application of e-governance in the transactions.

a. The goal should be to bring ‘on-line’ the entire process from application–to–grant of concessions. E-governance of the application process is important so that an applicant can keep track of his application.

b. According to MCR, 1960 the State Governments are supposed to maintain registers on applications for RPs and for RPs granted in Form G-1 & Form H-1 respectively. However, most State Govts. are not even maintaining this information, which is vital for knowing the areas available. The State Govts. Need to aim to have on-line mining tenement systems to provide information on a real-time basis.

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c. A real-time online register of mining and exploration licenses in GIS format compiled for each state, or aggregated into a central national database. In the interim, free access to a hard-copy tenure map for each state that is updated regularly would serve as a satisfactory transition to a fully online system.

d. The establishment of a comprehensive Tenement Registry by IBM in conjunction with respective State Directorates on a priority basis is an important milestone that needs to be reached in this process of e-governance.

e. According to MCR, 1960 the RP reports are to be kept confidential for a period of two years, after which they can be made available. However, most of the DGMs/ Exploration Agencies are hesitant to give copies of these reports after this confidentiality period. In some instances these are constrained to be obtained under provisions of RTI.

f. While some steps towards e-governance have been initiated, it needs to be pushed forward by facilitating easy availability of all geoscientific data (geological, geophysical and geochemical), exploration reports and maps, whether generated in house or by previous licensees through the websites/Portal of GSI/ IBM/ State Directorates.

g. Aerogeophysical data need also be made available in digital form. The procedure for Permissions for Airborne Survey also needs to be reviewed, for the present cumbersome system takes almost one year to get the required permission.

h. As the RP reports are given to GSI and IBM also, either of the agencies should be empowered to make available these reports, at printing cost. In fact, reducing the confidentiality period from two years to only 4 months can also be considered, as a RP holder has priority for a PL only for 3 months from relinquishment of RP. GSI should also integrate the data in the RP reports in the DIDs on different commodities after the confidentiality period.

7.6.4 Training capacity building / Strengthening of the State Directorates for taking up exploration

a) Barring a few State directorates that have full fledged exploration wings,

activities of most others is limited to administering leases and licenses and collecting royalties on production from mines. It would be desirable to strengthen the state directorates so that they may also undertake mineral prospecting and exploration in co-ordination with central agencies e.g. GSI, MECL. Accordingly, manpower and financial support will need to be assessed and made available to the States.

b) State Governments are needed to prepare Action Plans for their State

Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession management including mining plan, closure and SDF; promotional R&D; and upgradation of laboratory facilities.

c) Capacity development of State Mineral Development Corpns. have to be

facilitated and joint ventures in exploration with MECL and Central PSUs / private sector have to be promoted.

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7.6.5 Healthy competition between the government/ private sector activities

a. NMP 2008 specifically states that “Private Sector would in future be the main source of investment in reconnaissance and exploration and government agencies will expend public funds primarily in areas where Private Sector investment are not forthcoming despite the desirability of programmes due to reasons such as high uncertainties.” Private investors are keen to enter the high risk field of exploring for gold, diamonds, PGM and base metals. In these commodities therefore private entrepreneurs need to be actively encouraged.

b. Reservation of areas should be an exception such as for exigencies involving national security, rather than a rule.

c. Government institutions need to function as facilitators and vehicles of generating basic geoscientific database which may aid exploration agencies. In addition, they need also take up the task of probing for mineral resources in remote locations, or at greater depths for which private investments are not forthcoming.

7.6.6 Healthy revenue and taxation policies. Mineral resources belong to the nation, and anybody enjoying profits from extracting these finite, non-renewable assets needs to compensate the state adequately. However, it needs to be realized that mineral exploration involves a great deal of risk. Profits arising from an economic discovery have to offset the expenses incurred in innumerable failures preceding it. A fiscal regime involving fair and equitable taxation as per global standards along with incentives to reward risk initiative is felt as necessary to attract private investment in the mineral exploration. 7.6.7 Implementation of seamless transition from prospecting to detailed

exploration to mining. Private investment would be attracted by a policy that incorporates as its cornerstones, (a) seamless transition; (b) security of tenure and (c) transferability of concessions. These have already been enunciated in the NMP 2008. The policy would have to be implemented in a fair, consistent and transparent manner by all administering authorities. Instances of previously explored RP/ PL blocks being put up for auction / bidding or reserved for State PSUs have served to discourage potential investors. Therefore to attract a larger share of private investment into this sector, it is imperative to create an investor friendly atmosphere. A common refrain amongst the few global exploration companies presently within the country is that though India ranks quite high in mineral potential, but ranks quite low in the context of investor friendly policies and regulatory/ administrative procedures. 7.6.8 It is strongly felt by the stakeholders that there is an urgent need for independent regulation of mineral concessions. It is recommended that suitable mechanism be created such as National and State Mineral Regulatory Authorities and Mining Tribunals as well as Special Courts be set up suitably funded out of cess as proposed in the new MMDR Act.

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7.7 Recommendations The following recommendations are made to attract investment in the mining sector:

1. It is recommended that GSI must prepare and implement the project under its Portal Phase IIII (OCBIS) to enable serving of 1:50,000 scale geological, geophysical and geochemical maps on Internet in GIS platform, in line with international practice.

2. Implement project on Mining Tenement Registry and link up with State Land Records Database for integration with digitized cadastral maps. IBM and 10 mineral rich States need to be enabled to upgrade their Hardware, Connectivity and Software for executing this project.

3. State Governments are needed to prepare Action Plans for their State Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession management including mining plan, closure and SDF; promotional R&D; and upgradation of laboratory facilities.

4. Capacity development of State Mineral Development Corpns. have to be facilitated and joint ventures in exploration with MECL and Central PSUs / private sector have to be promoted.

5. Reservation of areas for government agencies stopped completely, except in exigencies of national security.

6. Security of tenure should be guaranteed, and free transferability of concessions allowed without prior approval.

7. Concessions should be granted in a transparent manner in affixed time frame. 8. Review and rationalization of taxes, levies, royalties, duties to make the industry

globally competitive. 9. Indian Bureau of Mines (IBM) to be suitably modernized along scientific lines

and strengthened to serve as single authority in all matters concerning mining (approvals, inspection and developmental) and SDF.

10. Suitable mechanism needs to be created for independent regulation of mineral concessions such as National and State Mineral Regulatory Authorities and Mining Tribunals as well as Special Courts need to be set up suitably funded out of cess as proposed in the new MMDR Act.

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CHAPTER – VIII

GEOSCIENTIFIC STUDIES IN OFFSHORE AREAS

(To R vii)

8.1.0. Preamble

Geoscientific studies in offshore area involve geological, geophysical, geochemical, sedimentological and palaeontological investigations of the ocean floor and continental margins. The deep ocean floor is the latest essentially unexplored frontier of research warranting detailed mapping in support of both economic (petroleum and metal mining) objectives, Defence (submarine) objectives, the basic scientific objectives of evolution, tectonics, climate and sea level oscillations.

The Indian subcontinent is surrounded by three seas viz., Arabian Sea in the west, Bay of Bengal in the east and Indian Ocean in the south having a coastline of around 7500 km with a wide continental shelf. At the 200 nautical miles limit from the coast, as per the provisions made in the Third United Nations Conference on Law of the Sea (III UNCLOS), the Exclusive Economic Zone (EEZ) of India including Territorial Waters (TW) is about 2.02 million sq. km. Under Article 76 of the UNCLOS the outer limit of the continental shelf could be extended up to 350 nautical miles from the shore depending on several parameters including thickness of the sediments in the area. In the Indian scenario, the area of the extended continental shelf may be about 1.07 million sq. km, thereby making the total offshore area (around 3.09 million sq. km) almost equal to the land area of the country. Exclusive Economic Zone (EEZ) has to be covered by marine surveys for mapping the seabed and locating mineral and energy resources of the sea; which under the International Convention of Sea is to be completed by provision made in the 3rd United Nations Conference on Law of Sea (UNCLOS). As per the law of the sea, India has sovereign right over the EEZ including Territorial waters (TW). The area under territorial waters (TW) extends up to a perpendicular distance of 12 nautical miles from the coastline. India enjoys exclusive economic right to map, assess, explore and harness the mineral wealth of the seabed up to the EEZ within specific time target for the purpose of ‘staking claim’.

The two tiny far flung groups of island, namely Lakshadweep Islands on the west and Andaman and Nicobar Islands on the east of the mainland have helped greatly to increase the extent of our EEZ. This large area remains unexplored due to lack of technology and infrastructure in physically accessing the seabed lying at depths up to a few thousand meters. Exploration of oceans by other countries, technological innovations and the knowledge that the sea as the store house of valuable mineral wealth, conventional and non-conventional energy sources, and strategic reasons have propelled to explore the oceans.

Offshore survey, search, assessment and evaluation of minerals are carried out by many governmental and non-governmental organizations. Liberalization policy of the Government of India opened doors for investment and developmental activities by the private investors especially in near coastal waters. The National Mineral Policy, 2008 provides the basis for offshore surveys under the following clauses:

Para 5.2 states that Government agencies will continue to perform task assigned to them for exploration and survey, the private sector would in future be the main source of investment in reconnaissance and exploration and government agencies will expend public funds primarily in areas where private sector investments are not

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forthcoming despite the desirability of programme due to reasons such as high uncertainties. To expedite completion of reconnaissance work for the entire country as early as possible,

Para 5.3: It is necessary to ensure that India’s exclusive economic zone is explored and exploited to the maximum possible extent. The Ministry of Earth Sciences (MoES) and its agencies are entrusted with the task of sea-bed exploration and mining. Cooperation between MoES and GSI will be institutionalized so as to achieve this objective within a time bound framework. The task of mapping out the extended economic zone will be expedited and completed within the time prescribed by the International Sea Convention so that no area of sea bed mining is lost to the country.

Para 10.5: India is a pioneer investor and has been allocated a mine site area of 75,000 square kilometers in Central Indian Ocean Basin for exclusive survey and exploration. Deep ocean resources represent an exceptionally large and potentially important mineral resource. Integrated systems for exploration, exploitation, mining and processing of these resources shall be expedited with the development/acquisition of necessary technologies. However, appropriate mechanism for coordinating the survey and exploration of Deep Sea Bed Area will be established by the Ministry of Earth Sciences.

Though the investment policy has been liberalized, the state agencies have to gear up to meet the growing needs of the industry and have to give priority to geotechnical, environmental studies for the development of ports, harbours, submarine pipelines, Single Buoy Mooring (SBM) Systems, besides mapping and resources evaluation on closer grids within the EEZ of India. Moreover, survey as well as assessment of the non-renewable resources within the extended continental shelf would also constitute a key responsibility of state agencies. In this connection, GSI along with MoES and its agencies shall be working in close interaction towards collection of geoscientific data and identifying offshore mineral rich zones for overall development in this sector. A draft MoU between Ministry of Mines/GSI and MoES/NCAOR on Comprehensive Topographic Survey of Exclusive Economic Zone of India is under preparation.

8.1.1 Review of offshore geoscientific Activities / studies

A review of mineral exploration undertaken so far in the country indicates that more than 98% of the seabed within the EEZ (excluding TW) has been covered by reconnaissance mapping by the Government agencies with their available man power and resources till XI Plan period, whereas about 85.7% of the offshore area within Territorial Waters has already been covered by geological mapping till March 2011.

8.1.2 AGENCIES INVOLVED IN EXPLORATION

Offshore survey, search, assessment and evaluation of minerals are carried out mainly by many governmental and non-governmental organizations. Geological Survey of India (GSI), National Institute of Oceanography (NIO), Oil and Natural Gas Corporation Limited, Indian Navy and various departments coming under Ministry of Earth Science (MOES) are engaged in collection of offshore data around India. All these organizations are engaged in the collection of atmospheric, seawater (both surface and sub surface), physical, chemical and geological parameters seabed and sub-seabed of the oceans and seas as part of their operations for various purposes

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according to their own programmes and priorities. Broadly they can be divided in to three categories namely strategic, economic and scientific though some of the data collected falls in more than one group or depending on the density or quality it migrates from one to the other. Collection of data from the oceans and seas is an expensive affair considering the cost of procurement and maintenance of the research vessels, exploration equipment, and other resources including human resources.

National Institute of Oceanography (NIO), set up in the year 1966 under Department of Science and Technology as CSIR (Council for Scientific and Industrial Research) laboratory for research on various disciplines of oceanography, is engaged in collection of various parameters as part of its research programmes. Initially, NIO utilized chartered vessels for collection of data. Later with the procurement of its own research vessels, a large amount of scientific data has been collected from Indian and international waters. Its scientific expeditions have contributed greatly to the knowledge of the evolution of the seas, tectonic processes, palaeo-climate, chemical characteristics, genesis and evolution of sub-sea formations and processes responsible for their development.

Oil and Natural Gas Corporation Limited (ONGC) coming under Petroleum and Natural Gas Ministry is also involved in the sub-surface exploration of the Indian waters mainly for petroleum exploration. Seismic and gravity surveys, drilling etc., have brought out sub-surface information about structure, lithology and origin of sedimentary units present below the seabed. Though the investigations are primarily for oil exploration, a large amount of scientific information is generated as a spin off of this work. Directorate General of Hydrocarbons (DGH) under the Ministry of Petroleum and Natural Gas was established in the year 1993 for exploration of non-conventional hydrocarbon energy; gas hydrates, etc. DGH has also been working in collaboration with other departments for exploring the potential of CNG (compressed natural gas) from the continental shelf of India.

Indian Navy collects offshore data for R &D purpose and also for strategic reasons. National Hydrographic Office of INHO under MoD is engaged in bathymetric survey for the preparation of admiralty charts since independence and during the past years Indian Navy has surveyed the waters around India in great detail mainly for navigational purpose.

Department of Ocean Development (DoD) was established in 1981, with a primary mandate of formulation and implementation of programmes in ocean science and technology for long term scientific, technical, economical and geopolitical benefits. Right from the inception of the Department, it has been implementing national programmes such as Polar Science and Polymetallic nodules. With the adoption of ocean policy statement and U.N conference on Environment Development in 1992 and with UN Convention on Law of the Sea coming into force in 1995 for India, the activities of the Department have been expanded and oriented towards exploration and exploitation of living and non-living resources within our EEZ and beyond for the socio-economic benefit and sustainable development of marine sector.

In 2006, Government of India created a new Ministry of Earth Sciences (MoES) through a merger of the Indian Meteorological Department (IMD), the National Centre for Medium Range Weather Forecasting (NCMRWF), the Indian Institute of Tropical Meteorology (IITM), Pune, and Earth Risk Evaluation Centre (EREC), and the Ministry of Ocean Development (MoD). Some of these institutes are engaged in the collection of data from the seas for weather prediction and many other

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purposes. National Institute of Ocean Technology (NIOT) Chennai, National Centre for Antarctic & Ocean Research (NCAOR) Goa, and Indian National Centre for Ocean Information Services (INCOIS) Hyderabad, Integrated Coastal and Marine Area Management Project Directorate (ICMAM-PD) Chennai, and Centre for Marine Living Resources & Ecology (CMLRE) Kochi are some of the institutions either newly created or brought under its control. Some of them also collect various types of offshore data for technology demonstration, monitoring, Modeling and prediction of various types of environmental hazards related to sea.

Oceans have always influenced the life and history of man. Because of its vastness and interplay of processes, oceans control the atmosphere and global climate besides being a vast storehouse of resources necessary for sustenance of life on earth. The greatest unexploited mineral resources on earth are on the deep-sea floor, including manganese nodules; cobalt-rich manganese crusts that contain nickel, copper, cobalt, and manganese; and hydrothermal deposits that contain copper, lead, zinc, gold and silver. The Ministry of Earth Sciences, a nodal ministry of Govt. of India is pursuing research and developmental work in respect of resources like polymetallic nodules, cobalt crusts and hydrothermal sulphides in Indian Ocean outside the EEZ of India.

8.2.0 Offshore geoscientific studies by Geological Survey of India (GSI):

GSI is one of the pioneer organizations involved in exploring the oceans around India. Initially, scientists from GSI participated in the cruises organized under the international Indian Ocean Expedition in 1964. The Marine Wing of GSI was initially set up as a small unit in August 1965. It started coastal and offshore operations in a miniscule manner way back in early seventies by survey and mapping of selected parts of coastal waters using country boats and other small fishing crafts. GSI first acquired its ocean going vessel R.V. Samudra Manthan in 1983. Subsequently, two coastal launches R.V. Samudra Kaustubh and R.V. Samudra Shaudhikama joined the fleet in 1984 and with this GSI began its systematic offshore mapping and exploration for survey and assessment of non-living resources within EEZ including Territorial Waters of India in Bay of Bengal and Arabian Sea. Subsequently, offshore mineral investigations in promising areas, site specific geotechnical investigations along with R & D studies were also taken up.

In pursuance of the Charter of Geological Survey of India, the main emphasis of marine survey has been on seabed mapping and exploration for non-living resources in the offshore sector in the Exclusive Economic Zone and also in areas of interest in the international waters. The various thrust areas identified cater to the needs and challenges of the Nation, fulfilling the short term and long term socio-economic needs. They encompass baseline data collection (geological, geophysical), assessment of offshore mineral potential, geochemical scan for hydrocarbons, basic research and development in furtherance of understanding of various processes of earth science, industrial and port development, evaluation of natural processes and thereby mitigating the damages due to natural hazards, historical and archaeological evolution of coastal areas.

Initially the surveys were mainly for the preparation of bathymetric and seabed sediment maps along with collection of information of sub-seabed features by coring, shallow seismic and magnetic methods. Later, with the acquisition of more sophisticated equipment both onboard and laboratories, the studies were diversified into mineral exploration and other disciplines like geotechnical studies, environmental

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studies, ocean energy and studies for academic and commercial purposes. GSI is also engaged in collaborative work with other academic, scientific, commercial and government institutions in the field of marine geology. Systematic mapping on 2X 5 km grid has been completed over about 86 percent of TW. Similarly mapping of EEZ in 5 X 20 km grid has also been achieved over about 98 percent. Since 2009-10, Marine Wing has been reorganized as Marine & Coastal Survey Division with operational offices located in Kolkata, Vishakhapatnam, Mangalore and Kochi.

In keeping pace with the worldwide trend and in pursuance of its Chartered functions, the Geological Survey of India has expanded its geological activities to sea bed survey and offshore mineral exploration during the last four and half decades. The offshore survey will receive new impetus with the induction of the replacement vessel for RV Samudra Manthan will all modern sophisticated equipment, and geotechnical vessel with 30 m drilling capabilities in shallow waters, which are likely to be commissioned by early 2013 and 2014 respectively, and augmentation of the capability in the survey and analytical study of marine sediments.

1. Systematic Seabed Mapping:

Systematic seabed mapping (single beam bathymetric, magnetic and seabed sampling up to 2 to 3 m below sea floor) on reconnaissance scale within Exclusive Economic Zone (EEZ) is more or less complete (98%). The left over area lies close to the international boundaries with the neighbouring countries.

Mapping Achievement:

During XI Plan Period (since April 2007) an area of 10173 sq km has been surveyed for seabed mapping (by 13 cruises) within the Territorial Waters of India against a target of 9923 sq km. Majority of seabed survey has been carried out in the Tamil Nadu (5 cruises) and Gujarat coast (5 cruises) and the remaining part in the Gangetic offshore of West Bengal (2 cruises) and Maharashtra coast (1 cruise).

Till 2009-10, seabed mapping has been completed for 1,28,480 sq km out of 1,50,000 sq km in 5 km x 2 km grid within Territorial Waters and 18,48,318 sq km out of 18,64,900 sq km in the EEZ beyond Territorial Waters on reconnaissance scale of 40 km x 20 km grid. The total EEZ coverage including TW is 19,76,798 sq km out of a total EEZ area of 20,14,900 sq km. During 2010-12 (Upto March 2011) an area of 720 sq km in the Territorial Waters and 860 sq km in EEZ has been mapped. The total TW/EEZ coverage as on March 2011 is as under.

Area (Sq.

Km) Coverage till March

2011 Balance area

Total EEZ (including TW)

2014900 1978378 36522

Territorial Water 150000 129200 20800

EEZ Beyond TW 1864900 1849178 15722

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The State-wise breakup of achievements in Mapping of TW is as under:

Cruise Target(Sq.Km) Achievement (Sq.Km)

Tamil Nadu 3950 4070

Maharashtra 530 600

Gujarat 3910 3842

WB 1533 1661

Total TW 9923 10173

2. Parametric Survey:

Parametric Survey has been taken up to fill up the data gaps (Bathymetry, Magnetics, Swath Bathymetry, sampling, seismics, sidescan etc). Offshore parametric data has been collected from EEZ of India by 18 cruises of RV Samudra Manthan, 23 cruises of RV Samudra Kaustubh and 19 cruises of RV Samudra Shaudhikama from April 2007 till March 2011.

3. Multibeam Bathymetric Survey:

One of the major programme as per the NMP 2008 and to be executed jointly by the Ministry of Earth Sciences and GSI is the project entitled ‘Swath bathymetric Survey of the Exclusive Economic Zone (EEZ)’. This multi-institutional project aimed at carrying out a comprehensive seabed topographic mapping of the entire EEZ of India using the state-of-the art technologies of multi-beam swath bathymetric systems. The EEZ has been divided into two domains – shallow water (upto 500 m water depths) and the deep-water areas beyond 500m isobath.

GSI has started Multibeam bathymetric survey since 2007-08 and till 2010-11, GSI has surveyed 102262 sq km area of the EEZ where 803 sq km falls within shallow water and 101459 sq km lies in deeper water. The shallow water survey till date was limited in the Orissa and Gujarat coast whereas the deep water survey was carried out in the Comorin Ridge, Swatch of No Ground, Arc-trench Gap in Andaman EEZ and Kerala offshore.

GSI proposes to continue the Multibeam bathymetric survey within the Indian EEZ both in the shallow water and deep water domain in the forthcoming years. Upto 2013-14, there is a plan to cover another 186900 sq km area (184000 sq km in the deep water domain and 2900 sq km in shallow water domain) spread over the East coast continental slope (72000 sq km), Andaman EEZ (106000 sq km), Kerala, Maharashtra and Gujarat offshore (2000 sq km each), Orissa continental shelf (2000 sq km) and Gujarat continental shelf (900 sq km).

The achievement is as under:

Ship RV Samudra Manthan

Parameters Bathymetry Magnetics Swath Samples

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Target 39618 42978 186891 566

Achievement 28693 28854 130159 502

Achievement in respect of coastal vessel is as under:

Ship RV Samudra Kaustubh and RV Samudra Shaudhikama

Parameters Bathy Magnetics Seismic Swath Sidescan Samples Curent

Target 8510 3085 5985 1180 100 1647 93

Achievement 9055 3413 4414 977.2 241 1739 116

4. Resource Appraisal:

(1) Placer Mineral Resources:

The resource evaluation survey so far carried out has demarcated promising zones of 923 sq km area in the east coast and 210 sq km area in the west coast. Out of the 923 sq km area in the east coast, 37.5 sq km area has been surveyed in 0.5 x 0.5 km grid, 515.5 sq km area has been surveyed in 1 km x 1 km grid and rest of the area has been investigated in 2 x 1 km and 3 x 2 km grid. These promising zones are located in Orissa (455 sq km) and Andhra Pradesh (468 sq km). The heavy mineral suite is mainly represented by ilmenite, sillimanite and garnet (90 % of the heavies) with minor amounts of magnetite, zircon, monazite, rutile, ortho and clino pyroxenes, hornblende, epidote and kyanite. Sea bed mapping off Tamil Nadu at present is in progress and about 32 sq km area off Taingapatnam, Chinnaturai and Madilam in the Gulf of Manner region are characterized by the occurrence of placer minerals having concentration more than 3 wt%. In the West coast, 210 sq km promising zones have been located where seabed sampling has been carried out for 116 sq km in 0.5 km x 0.5 km grid, 20 sq km in 1 km x 0.5 km grid and the rest of the area in 2 x 1 km and 2 x 2 km grid. Most of the favourable zone lies off Aleppy – Quilon and Trivandrum – Kanyakumari blocks of Kerala and Tamil Nadu and only 19.25 sq km lies off Ratnagiri in Maharashtra. GSI has provided Indian Bureau of Mines through Ministry of Mines the basic metadata of 46 prospective blocks (26 in the East Coast and 20 in the West Coast) for placer mineral occurrences on 5’ X 5’ grid, based on the results of various investigations carried out for further regional exploration.

(2) Sand resources:

Considering the acute shortage of construction grade sand, investigations for relict marine sand within the TW and beyond have been carried out in the western offshore since last one decade. Sand occurrences were reported in the seabed beyond the territorial waters of Kerala coast during several cruises onboard RV Samudra Manthan. On the basis of the preliminary indication, survey was further continued onboard RV Samudra Shaudhikama which revealed presence of relict sand in the mid to outer continental shelf areas beyond the present inner continental shelf having mud/sand deposition. Till the end of 2009-10, ten cruises (six cruises for detailed survey and four cruises for reconnoitory survey) have been carried out on

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board RV Samudra Shaudhikama off Kerala coast and three cruises off Karnataka coast exclusively for the investigation of sand occurrences. Potential area of about 13750 sq km has been identified between Kollam (Quilon) and Kasargod on the basis of preliminary survey during seabed and parametric mapping. Several blocks off Kollam, Chavakkad, Ponnani, Beypore etc have been surveyed further on various grids ranging from 1 x 1 km to 5 x 2 km which has confirmed the presence of relict sand. Vibrocoring in these sectors have brought out persistence of sand upto 1 to 1.5 m below the seafloor in general with a higher thickness of about 3 m in the buried channel of Ponnani - Beypore. Two cruises carried out off Kollam have indicated probable offshore resources of relict sand of about 184 million tonnes over an area of 180 sq km extending to a subsurface level of 1.5 m and located 25-40 km away from the coast. To test the utility of the identified relict sand for construction purpose, seabed sand samples have been provided to the DGM, Kerala for arranging necessary laboratory analysis.

(3). Lime Mud Deposits:

High grade of lime mud occurrences are found in water depth of 100 – 200 m off Andhra Pradesh and in water depth of 180 – 1200 m off Gujarat. High grade Lime Mud deposits have been found in the continental margin of Gujarat, Andhra Pradesh and Andaman & Nicobar Islands.

Off Andhra Pradesh:

Based on the findings of various cruises on the eastern continental shelf off Visakhapatnam, it is proposed to carry out detailed geological, geophysical and geochemical surveys in selected parts of outer continental shelf and slope off Visakhapatnam – Pentakota in Andhra coast.

Lime mud deposits have also been located in nearly 650 sq. km. area offshore Pudimadaka in the North Andhra coast where the thickness of the bed is around 2.5 metre. The lime mud is crystalline in nature, white in colour with CaCO3 concentration around 92%. These deposits are available at a water depth from 130 to 180 metre.

Off Gujarat:

High grade Lime Mud deposits have been found in the continental margin of Gujarat between 180 and 1200 metre water depth. This lime deposit is composed of very soft, pale yellowish cream to white colour and resembles like plaster of paris. This deposit is usually found underlain by a dark grey to greenish grey clay bed of 40 to 50 cm thickness. During gravity core sampling, the maximum thickness ever found is around 2.5 metre. The bottom of this lime mud deposit has not been intersected during core sampling. From the seismic profiles, it appears that the thickness of the lime mud deposit may range from 6 to 18 metre. The maximum CaCO3 content in this deposit is around 94.00%.

Off Andaman & Nicobar Islands:

High grade calcareous sediment containing 50 to 80% CaCO3 has been located in Andaman and Nicobar Sea in the Invisible Bank, Rutland Island and Little Andaman region as well as in some other locations in the west of Andaman & Nicobar Islands. Calcareous sediments have been located at water depth of 1000 metre in the offshore region west of Andaman and Nicobar Islands.

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(4). Phosphatic sediments:

Phosphatic sediment (15 – 20% P2O5) found in water depths of 100 – 200 m south east of Chennai and in water depths of 200 – 1000 m off Gujarat coast.

Phosphorite Nodules:

Off Gujarat, Maharashtra and Tamil Nadu:

Phosphorite nodules having P2O5 concentration between 15 and 20% have been reported associated with lime mud deposit occurring in the southeast of Chennai at a water depth of 100 to 200m spread over an area of around 600 sq. km.

Phosphatic nodules have also been reported at a water depth of 350 to 550 metre associated with lime mud in the offshore region of Gujarat. The concentration of P2O5 in phosphatic nodules varies from 15.6 to 18.6% and in phosphate rich lime mud, the concentration is 9.8%.

Phosphate is also reported in limestone deposits offshore Vengurla in Maharashtra where P2O5 concentration is more than 5%. Oolites are also found in this region.

Off Nagapattinam – Pt. Calimere area: Sporadic enrichment of phosphorite in the form of nodules/encrustations between water depths 45 and 412 m have been observed between 10o20’ and 10o29’ N lat off Point Calimere. The P2O5 content varies from 4-6% in the southern sector and concentration of phosphatic material varies from 0.1 kg per sq km to 2.03 kg per sq km.

Besides the above offshore programmes, the other achievements are as follows:

Oolites and calcareous sands have been found in water depth of 50 – 200 m off Andhra Pradesh, Tamil Nadu, Maharashtra and Gujarat coast.

Reconnaissance Survey for identification of potential sites for Ocean Thermal Energy Conversion (OTEC) has been carried out in the offshore region off Havelock and Little Andaman in Andaman & Nicobar Group of Islands. The survey indicated favourable thermal gradient from OTEC point of view.

Investigations have also been conducted for Geotechnical Appraisal for a Tidal Power Plant in Durgaduani Creek in Sundarban Delta, West Bengal.

During the course of survey by RV Samudra Manthan, a wide area west of Lakshadweep, occurrence of micro-manganese nodules has been identified at water depths ranging from 2800 m to 4300 m. The chemical composition of these nodules are as follows: Mn: 5% - 41%, Fe: 0.3 – 5.3%, Cu: 530 – 900 ppm; Pb: 230 – 1600 ppm; Zn: 790 – 4800 ppm; Ni: 700 – 1000 ppm; Co: 80 – 300 ppm; Ferromanganese encrustations have also been located in the Andaman sea off Batti Malva.

With regard to the survey for oil and gas resources, Geological Survey of India has not undertaken any specific survey on its own though surveys had been carried out for Geochemical scan for hydrocarbons including analysis

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for hydrocarbons by gas chromatography particularly in the western offshore and Krishna-Godavari basin for ONGC and also in Sundarban prodelta region as a sponsored project and all the samples were handed over to ONGC as per the agreement.

(5). Manganese Nodules:

Occurrence of manganese nodules has been reported from Central Indian Ocean and Marine Wing is contemplating to take up detailed investigation in the Wharton Basin, West Crozet Basin, Australian Basin etc., with the acquisition of Replacement Vessel for R.V. Samudra Manthan.

(6). Alternative Energy Resources:

Ocean Thermal Energy Conversion (OTEC), harnessing wind, wave and tide are thought to be alternative sources of energy for future needs. It is a continuing programme for collection of basic data for suggesting possible areas for establishment of suitable plants for OTEC. Some favourable sites in the offshore sectors of Havlock, Little Andaman and Car Nicobar Islands and Pondicherry have already been identified through the surveys.

8.3.0 Identifying the existing gap areas in geoscientific studies and promising mineral rich zones

On examination of the work so far carried out in the offshore sector involving seabed mapping and mineral investigation, the following gap areas in terms of work output and information due to gaps in the technology and infrastructure, man-power and time have been identified:

Multibeam bathymetry, magnetic survey and sampling in the Mid Oceanic Ridge in Indian Ocean and in the Andaman Sea.

Investigation of Lime mud occurrences in the selected sectors in the Arabian Sea and the Bay of Bengal.

Survey for geological, geophysical and geochemical mapping of seabed within the remaining area of EEZ

Resource evaluation within the EEZ and beyond.

Search for sulphides mineralization, ferromanganese and cobalt rich encrustation, phosphate rich sediments, lime mud deposits will be taken up.

Identification of potential areas for gas-hydrate accumulation.

Search for polymetallic nodules in selected sectors of Indian Ocean other than CIB.

Remaining unmapped area off Maharashtra and Gujarat in West coast and off Tamil Nadu in the East Coast by coastal vessels.

Survey for offshore resources, mainly placer minerals and creation of database of shelf and deep sea deposits and energy resources.

Study of in-situ geotechnical and mass physical properties of seabed sediments along with close spaced bathymetry, shallow seismic and side scan sonar survey using coastal vessels / new Geotechnical vessel in the

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near shore areas off Orissa, Andhra Pradesh, Kerala, Karnataka, Goa and Maharashtra.

Mapping of remaining unmapped area, spread over in the offshore areas of Andaman & Nicobar and Lakshadweep Islands in the deep sea and in parts of Ganga and Mahanadi deltas and also some places in Maharashtra and Gujarat coast is proposed.

Regional assessment of construction grade silica sand in Andaman & Nicobar Islands.

Identifying sites for harnessing tidal energy in Sundarban in West Bengal and in Gujarat.

Creation of additional database for means of specific surveys with coastal launches and through drilling shallow water from about 6m to 30m with the acquisition of new tailor-made Geotechnical vessel.

Study of geo-environmental parameters in relation to various anthropogenic activities viz. port activity, mining of heavy minerals, bank erosion, channel aggradations, shoreline changes along the active delta and coastal plains in the sedimentary basins will be carried out.

Study under Projects with high societal values like evidence of last glacial maxima, land–ocean interaction, environmental catastrophes in Holocene.

Scientific collaborations with national and international earth science organisations on the relevant themes on marine domain;

R&D work on design and development of current meter and technology development for in-situ measurement of thermal gradient of sea floor sediments at 1.0 to 1.5m below sea floor will be taken up.

R&D investigation to study tectonic set up of the ocean basin for building up ocean basin models and ocean environment etc. to build up magnetic stratigraphy of deep-sea sediments to study impact of changes in ocean-circulation on the climate and deep-sea sediments; sea-surface temperature (SST) of Indian Ocean during Neogene with special reference to monsoon-related changes.

Studies on collation/correlation of evidences of LGM in Indian Ocean.

Participation in international endeavour for study of issues of global concern viz. climatic changes, sea level fluctuation and coastal hazards would continue during the XII Plan.

Intra-organizational collaboration with various departments of GSI viz. AMSE, Glaciology & Antarctica Division etc. for inputs of new thought and dimension.

Completion of systematic mapping of sea bed (in 1:50,000 scale) within the territorial water.

Geotechnical mapping (1:50,000 scale) of territorial water in the tune of 80,000 sq. km., by the end of XII Plan to facilitate development / management of port, harbour, pipe line installation, mineral resource exploitation.

Sea bed mineral resource evaluation by high resolution survey.

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Geochemical scans in potential areas of gas hydrate occurrences.

Appraisal of sites for Ocean Thermal Energy Conversion (OTEC) emerging area for Non Conventional Energy Resources.

Closer spaced mapping of additional area of about 1.0 mill ion sq. km. under Legal continental shelf

8.3.1. Strategy for offshore exploration, development and mining.

i. In the XII Plan, strategy continues to be seabed mapping in greater detail which is essential for identifying the promising mineral zones and to carry out regional and detailed exploration for the minerals in the identified mineral rich zones. This work shall be carried by government Agencies and the private investors by using the state-of-the art exploration technology. The GSI shall be identifying mineral rich zones along with the seabed mapping in the shallow water sector for placer minerals/ lime mud / phosphatic sediments etc and in deep water sector for Polymetallic nodules and hydrothermal deposits / gas hydrates / OTEC. The work in deep water sector will be initiated on acquisition of the new Replacement Ocean Going Vessel. The MoES and NIO will concentrate in the deep sea sector of Central Indian Ocean Basin for identifying Polymetallic Nodules and Sulphide mineralisation as per their perspective plans. As of now, offshore mineral exploration and mining can be prioritised for placer minerals which are available in huge quantity in the continental shelf, in particular in the inner-shelf along Orissa, Andhra Pradesh, Tamil Nadu, Kerala, Karnataka and Goa.

ii. As indicated in NMP, 2008 the programmes with inter institute collaboration have to be strengthened further and the modality of sharing of offshore samples and data with universities and other institutes has to be worked out. Technology transfer between professional organizations, universities and national laboratories is only possible by undertaking collaborative programmes which will serve to bridge the gap in the technical know-how and to share the knowledge. At the same time, duplication of work on overlapping responsibilities can also be avoided. Keeping in view of these promises, GSI has been making endeavour to involve other organisations MoES, DST, ISRO, ONGC, DGH and AMD to share the infrastructure for a common cause. Some of the projects are - multibeam swath bathymetric coverage of the EEZ, polymetallic nodule explorations, coastal dynamics and site selection for OTEC etc.

iii. Under the provisions of Offshore Areas (Development and Regulation) Act, 2002 (vide gazette notification dated 7th June, 2010) notified mineral bearing offshore blocks were notified for grant of Exploration Licence and the notified blocks have been allotted to the entrepreneurs. As a sequel to Govt.'s continuing initiatives in the last five years and in liberalisation of exploration and exploitation of minerals, several Multinational Companies are also taking up exploration activity. However, the required technology, infrastructure, experience and expertise have to be developed by entrepreneurs and in this respect they may seek assistance from the government in terms of providing required basic data for exploration, training and guidance.

Draft guidelines for exploration to meet the requirement of UNFC criteria are also prepared and are under finalisation. The basic data available for the allotted blocks may be classified under Reconnaissance (G-4) stage in general and Prospecting (G-3) stage in certain cases. It is, however, beneficial to consider the available data as baseline data and explore the block all over again through collection

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of data continuously to bring the stage of exploration to G-1 stage. Geophysical exploration in contiguous blocks, if combined, makes the data more meaningful and interpretable. The exploration methods are definitely time consuming and expensive. Different organisations under the government may not be able to provide required infrastructure and man-power for this type of exploration even if it is preferred by the entrepreneurs.

To facilitate the Public sector / private sector to come forward to invest and develop the required infrastructure / technology for the offshore mineral exploration, the following measures are suggested for speedy implementation:

1. Government of India, through its agencies, to provide consultancy services and training for entrepreneurs in the methods of exploration, infrastructure and capacity building

2. Encouraging introduction of special courses in Universities / Institutes for offshore mineral exploration.

3. Encouraging entrepreneurs to develop their own technical team and infrastructure with assistance from government, wherever required.

4. Government agencies to continue preliminary exploration in new areas/ extension areas.

5. Government, through their agencies, to develop technology for green methods of offshore mining, beneficiation, metal extraction, etc.

6. Encouraging entrepreneurs to carryout exploration, mining and marketing of placer minerals.

7. Government to have mechanism in place to monitor the activities of the entrepreneurs to adhere to accepted practices of exploration, mining and marketing without damaging environment of the leasehold areas and neighbouring zones and restrict themselves to authorised mineral extraction.

8. To provide safeguards against encroachments onto the coastal areas for supporting activities.

8.3.2 Action Plan for GSI during XII Plan period

The major offshore activity components envisaged during the XII Plan period include mapping of seabed in near shore and offshore region, collection of parametric data on different themes, search for mineral and energy resources, environmental investigations in connection with coastal hazards like coastal and bank erosion, etc. The offshore surveys will receive new impetus with the induction of the replacement vessel for R.V. Samudra Manthan, and augmentation of the existing capability for analytical study of marine sediment and biota.

Systematic seabed mapping on reconnaissance scale within Exclusive Economic Zone (EEZ) is nearing completion. The coverage of territorial waters (TW) by seabed mapping with shallow seismic, bathymetric, magnetic and multibeam survey will continue in XII Plan.

With the commissioning of the replacement vessel of R.V. Samudra Manthan, it is envisaged that parametric survey for additional parameters with state-of-the-art equipment of the new vessel will be carried out for the entire area of EEZ during XII Plan.

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8.3.3 Thrust areas for GSI in Marine Surveys during XII Plan:

The thrust areas for future theme based offshore programmes for Marine and Coastal Survey can be broadly divided as under:

Deep Sea Sector:

Close grid seabed mapping (geological, geophysical and geochemical) along with multibeam bathymetry, multi-channel seismic, magnetic, gravimeter, side scan, deep core sampling, dredge, heat probe etc. within EEZ (present as well as areas likely to be gained on delineation of outer limit of Legal Continental Shelf).

The multibeam swath bathymetric survey within the EEZ to be undertaken jointly by GSI and MoES under an MoU.

Search for sulphide mineralization in the Andaman Sea within EEZ and beyond in the Mid Oceanic Ridge System in the Indian Ocean.

Search for phosphate rich sediments, lime mud, ferromanganese encrustations, etc within EEZ.

Geochemical scan for thermogenic hydrocarbons, high resolution survey for gas hydrate occurrences within EEZ in association with DGH.

Selection of favourable sites for OTEC and fresh water generation from sea water.

Survey for cobalt rich encrustations and polymetallic nodules in selected sectors of Indian Ocean other than Central Indian Ocean Basin.

Shallow Water Sector:

Seabed mapping of the remaining area of Territorial Waters

Multibeam swath bathymetric survey of TW and outer continental shelf to be undertaken jointly by GSI and MoES under a MoU.

Resource evaluation of offshore relict silica sand for construction purpose and carbonate sand

To search, delineate, evaluate and prepare 3-D models of placer deposits including search / assessment of placer mineral resources in the inner shelf region

Generation of Site specific geotechnical data of seabed and sub-seabed in shallow waters up to 30m isobaths for developmental activities like ports, harbours, single & multi buoy mooring system etc.

Detailed geotechnical survey for oil field development, drilling platforms, laying of pipelines and cables etc.

Surveys/R&D studies of near shore areas for understanding coastal processes and the related dynamics.

Strategic studies of seabed morphology; study for Archaeological finding and R&D programme.

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Coastal Surveys:

Since coastal surveys are now a part of M&CSD, the following studies are projected for future:

Placer Mineral resource evaluation in the beach sand and sand dunes.

Coastal erosion studies – identify and demarcate areas vulnerable for coastal erosion and suggest remedial measure

Environmental impact studies of coastal areas, remedial measures, geochemical pollution of environments (in association with NEERI)

Morphology and evolution of sand bars / spits, coastal lagoons, their evolution, palaeoclimate

Detailed/area specific work schedules with physical targets for Marine Surveys proposed during XII Plan has been indicated in Annexure - 1

8.3.4 SALIENT FEATURES OF XII PLAN :

A. Survey onboard RV Samudra Manthan:

1. Multibeam bathymetry, magnetic survey and sampling in the Andaman Sea.

2. Study of the occurrences of offshore phosphatic sediment resources of Gujarat.

3. Multibeam bathymetric survey in the selected sectors of the continental slope in the Bay of Bengal.

B. Survey onboard of Replacement Vessel of RV Samudra Manthan:

The proposed replacement vessel of RV Samudra Manthan, with improved ship manoeuvrability and dynamic positioning system, would be equipped with state-of-the-art equipments. The new vessel will be commissioned in September 2013 during the XII Plan period.

The following projects are planned to be taken up by the replacement vessel.

1. Survey for geological, geophysical and geochemical mapping of seabed within the Andaman EEZ and in the Lakshmi Ridge along 10 km / 5 km or even closer cruise track intervals by multibeam bathymetry, multichannel seismic, magnetic, gravimeter, side scan, deep core sampling, dredge, heat probe etc. within EEZ towards preparation of seabed maps.

2. Search for lime mud off Andhra Pradesh EEZ and phosphatic sediments of Gujarat EEZ by multibeam bathymetry and close grid sediment sampling is proposed.

C. Survey onboard Coastal Launch:

1. The remaining unmapped area off Gujarat in West coast and off Tamil Nadu in the East Coast will be surveyed by coastal vessels.

2. In keeping with the Charter of functions, Marine & Coastal Surveys endeavor to carry out survey for offshore resources, mainly placer minerals, relict silica sand deposits and creating database of shelf and deep-sea deposits and energy resources.

208

3. Study of geotechnical and mass physical properties of seabed sediments along with close spaced bathymetry, multibeam bathymetry, shallow seismic and side scan sonar survey using coastal vessels are proposed in the near shore areas off Orissa, Andhra Pradesh, Kerala, Karnataka, Goa and Maharashtra.

4. Parametric study (Seismic and magnetic studies) off Andhra Pradesh & Orissa in the east coast and off Tamil Nadu, Kerala, Karnataka & Maharashtra in the West coast will be taken up.

5. Multibeam bathymetric survey within Andhra Pradesh and Gujarat and Maharashtra in the West Coast is proposed.

D. Survey onboard mechanised boat:

Limited survey on mechanised boat with portable equipment along with application of satellite remote sensing data as and when required in the nearshore Territorial Water region will be taken up.

E. R& D Studies:

(i) Recurrence of disasters along the country’s coastline in recent years has prompted GSI to continue focus on reinterpretation of data on various parameters of the coastal tracts, relevant for the formulation of sustainable land-use policy in coastal sectors. Study of geo-environmental parameters in relation to various anthropogenic activities will be carried out.

(ii) Study under Projects with high societal values like evidence of last glacial maxima, land – ocean interaction, environmental catastrophes in Holocene etc, will be pursued with application of modern laboratory techniques.

(iii) Scientific collaborations with national and international earth science organizations on study of sea bed fluctuation and mapping of coastal areas will continue to receive attention.

F. Collaborative programmes

National and international cooperation and collaboration in the sphere of offshore survey and research for understanding active earth-processes and of seabed resources would remain an important sphere of activity of the Marine & Coastal Survey Division. Participation in various international endeavours for study of issues of global concern viz. climatic changes, sea level fluctuation and coastal hazards would continue during the XII Plan.

8.3.5 Modernization Plan of GSI: As part of modernization Plan of GSI, the following equipment are proposed to be procured as shown in table below:

209

REQUIREMENT OF EQUIPMENTS FOR MODERNISATION OF SHORE BASED LABORATORIES

M&CSD, GSI, MANGALORE

Marine and Coastal Survey Laboratories:

Sl. No.

ITEM No. of Equipment proposed to be

required

1 Laser Particle Size Analyser-0.2 micron to 4mm 2 2 Quartz/Ceramic Distillation Plant ( 1 litre per hour ) 2 3 Digital Pipette 20 ml 5 4 De-mineralization plant 1 5 Analytical Sieve Shaker, with Computer, Balance, two 2

6 Automated thin section maker 1 7 Isodynamic separator with ferromagnetic separator 1 8 Magnetic separator 1 8 LSR Digital Cameras for field and laboratory use 5 9 Agate mortar 2 10 Readymade Fume chamber 1 11 Scanning Electron Microscope with Energy Dispersive 1

Palaeontology

Sl. No.

ITEM No. of equipment proposed to be

required

1 Stereo Binocular -microscope with 300X magnification and digital camera attachment with monitor and imaging software

3

2 Catalogues for Pollens and Spores 1

3 Micro splitter 2

Chemical Division

Sl. No.

ITEM No. of equipment proposed to be

required

1 Water Analysis Kit for pH, Conductivity, salinity, DO, ORP 1

2 Micro wave activated reaction plant 1

210

3 De-mineralization plant 1

4 ICPOES 1

5 Pulveriser 1

WCO-II, M&CSD, GSI, KOCHI

Marine survey equipments as part of routine F.S.Programme

Sl. No.

ITEM No. of

Equipment proposed to

be required

1 D/GPS with Antenna for carrying out boat surveys 12 Scientific Digital Portable Echo sounder bathymetry 1

Up gradation of Petrological Laboratory in connection with OCG training course

Sl. No.

ITEM No. of

Equipment proposed to

1 Compound Microscope (both reflected and transmitted source) with Integrated Digital camera attachment

1

2 Petrologic Polarizing Microscope with Integrated Digital camera attachment

1

3 Stereo-zoom microscope with digital camera attachments 1

4 Automatic Sieve Shaker with Accessories for wet and dry 15 Laser Diffraction Particle size analyzer Measuring range 0.1 to

875 micron 1

6 Motorized-Liquid Limit Device 1

Upgradation of wet-sedimetological laboratory

Sl. No.

ITEM No. of

Equipment proposed to

1 Fume chamber with hot plate 1 EACH2 Electronic weighing Machine Weighing range 0.1kg to 1kg. 1

3 Vacuum Filtration System for analysis of suspended solids in water

1

211

ECO-I, M&CSD, GSI, KOLKATA

SEDIMENTOLOGY LABORATORY:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Laser particle size analyzer for size analysis 1

2 XRD (X-Ray Diffraction) unit for Clay mineralogy and mineralogical studies

1

3 DTA (Differential Thermal Analyser) unit for Clay mineralogy and mineralogical studies

1

4 A fuming chamber needs to be installed for developing a heavy mineral separation unit

1

5 Water distillation plant 3

PALAEONTOLOGICAL AND PETROLOGICAL LABORATORY:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Scanning Electronic Microscope (SEM) 1

2 Stereomicroscope 2 no. (replacement) | The present

3 Petrological microscope 2 no. (replacement)| microscopes too old to work.

GEOTECHNICAL LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 3 Gang – Consolidometer Oedeometer for consolidation test

1

2 Direct shear apparatus for shear test of sand di t

1

3 Casagrande’s apparatus for liquid limit test (IS:9259,IS:2720 & BS:1377)

1

4 Cone penetrometer for liquid limit test 1

5 Hand torvane / Pocket shear meter 1

6 Vane shear apparatus-AIM-108 1

7 Permeability measurement – AIM 13102 1

212

FOR ALL LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Mettlar Balances 3

2 Ovens 3

3 Hot plates 3

4 Magnetic stirrers 3

ECO-II, M&CSD, GSI, VISAKHAPATNAM

SEDIMENTOLOGY LABORATORY:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Laser particle size analyzer for size analysis 1

2 XRD (X-Ray Diffraction) unit for Clay mineralogy and mineralogical studies

1

PALAEONTOLOGICAL AND PETROLOGICAL LABORATORY:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Scanning Electronic Microscope (SEM) 1

2 Stereomicroscope 1 no. (replacement)| The present

3 Petrological microscope 1 no. (replacement)| microscopes too old to

GEOTECHNICAL LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 3 Gang – Consolidometer Oedeometer for consolidation test

1

2 Direct shear apparatus for shear test of sand di t

1

3 Casagrande’s apparatus for liquid limit test (IS:9259,IS:2720 & BS:1377)

1

213

4 Cone penetrometer for liquid limit test 1

5 Hand torvane / Pocket shear meter 1

6 Vane shear apparatus-AIM-108 1

7 Permeability measurement – AIM 13102 1

CHEMICAL LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Corning EEL Flame photometer 1

2 Klett Summerson Coloro meter 1

3 Spectrophotometer 1

4 pH meter 1

5 Temperature meter 1

FOR ALL LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Mettlar Balances 3

2 Ovens 6

3 Hot plates 6

4 Magnetic stirrers 6

GEOPHYSICSAL LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Magnetic susceptibility meter (MS2) 1

MIISION-I, MSCD, KOLKATA

DMPPL & M & C LABORATORIES:

Sl. No.

ITEM No. of Equipment proposed to be required

1 Up gradation of AutoCad Map 3D2010 along with Raster Design software - from time to time

-01 license

2 Up gradation of Civil 3D 2010 along with Raster Design software –time to time

2 licenses

3 Up gradation of ‘Surfer version 8’ software to the latest available version

1 License

214

4 Up gradation of ‘ Grapher v. 4 software to the latest available version

1 License

5 Up gradation of Arc GIS v2010 software along with extensions

1 License

6 New procurement of ‘ERDAS’ Software along with compatible system.

1

7 Wide format A0 colour plotter with latest art of technology

1

8 Wide format A0 colour scanner with latest art of technology

9 High-end computer system with not less than 2GB RAM.

4

10 MS office 2007 or latest software 4 Licenses

PETROLOGY LABORATORIES:

1. List of Major Instruments available at the Lab:

a) Laser Particle Size Analyser -MASTERSIZER2000: (Malvern Instruments, UK).

Useful for volumetric size analysis of sediments within 0.02 micron to 2000 micron size-range; quick and reproducible results. Generated huge data since installation in 2006.

Presently awaiting major repair.

b) Analytical Sieve Shaker (Retsch): (Retsch, Germany )

Provides weight percent size analysis of coarser sediments.

In working condition

c) Differential Thermal Analyser - SDT Q600: (TA Instruments, USA)

Provides simultaneous measurement of weight change (TGA) and differential heat flow (DSC) from ambient temperature to 1500 °C; useful in identifying mineral phases if present in sufficient quantum.

Working; microbalance needs repair.

d) Leica DMRX Microscope:

Polarizing microscope for petrographic studies in transmitted and reflected light.

Working

Supporting equipments include Isodynamic Separator, water distillation Plant, Fume Chamber, Centrifuge, Ultrasonic Bath, Ovens, Hot plate, Electronic Balance, electric stirrer, refrigerator, Jenapol Microscope, ultraviolet lamp, glasswares, circular saw, digital cameras etc. The supporting instruments are used for processing and follow-up work like dispersion, drying, sieving, clay separation, heavy mineral studies, grinding etc.

215

2. List of Instruments proposed to be procured in next 10 years:

a) Advanced trinocular polarizing microscope with high resolution digital imaging, motorized stage movement, PC with software for image analysis and measurement – 1 no.

b) Binocular stereomicroscope fitted with high resolution digital camera -1 no.

c) Optical microscope fitted with cold cathode luminoscope for cathodoluminiscence applications especially on carbonates- 1 no.

d) Optical microscope fitted with digital heating-freezing stage for microthermometric fluid inclusion studies. - 1 no.

e) Sample handling unit for all kinds of geological materials (fresh and weathered / altered rocks, sediments, soils etc.) with facilities like cutting, grinding, vacuum impregnation, grain mounting, freeze-drying, crushing of rocks/sediments, gold and carbon coating. – 1 no.

f) Digital Scanning Electron Microscope with capability for secondary electron, backscattered electron and transmission scanning electron imaging; to be equipped with EDXA System for quantitative microanalysis and for producing X-Ray elemental maps – 1 no.

g) X-Ray Diffraction Unit -1 no.

h) High-yield water plant – 1 no.

i) Wooden shelves / cabinets for glasswares – 4 nos.

j) Display units for small museum – 4 no.

k) High-end computers – 3 nos.

l) Comprehensive solution for uninterrupted power supply for the whole lab.

CHEMICAL LABORATORIES:

INSTRUMENTS REQUIRED UNDER MODERNIZATION SCHEME IN NEXT 10 YERS FOR GSI, CHEMICAL DIVISION MARINE WING : IN XI PLAN

Sl No

Name of Instrument No of Units required

Remarks

1 Water analysis Kit with Probes 3 The existing units are getting old. At-least one unit of the same is to be kept in the each Ship in working condition.

2 Ultrapure Water Purification System (Millipore)

1

3 Electronic Balance (Digital Five Decimal accuracy Single Pan,

1

216

Max. 100 gms. capacity)

4 Direct Mercury Analyzer 1

5 Ion Analyzer : Ion Selective Electrodes for analysis of Cl, F, Br, I, S, NO3, SO4 etc.

1

6 Atomic Absorption Spectrophotometer with Flame, VGA & GTA etc.

1 The existing instrument was installed in 2005 which requires early replacement.

7 Conductivity & pH Analyzer 1

GEOPHYSICS INSTRUMENTATION:

Sl. No.

ITEM No. of equipment proposed to be required

1 Digital Multi Meter (dot - 700) 2

2 Digital Multimeter / Analog Multimeter (Model : XB-30) 2

3 Digital Cable fault localizer-(5 km max). 2

4 Relay Testing Kits (0- 30Amp). 2

5 Frequency Counter. 2

6 High-voltage tester 90-1K 2

7 High-voltage tester 90-1V(manually adjustable) 2

8 Oscilloscope (CKOSCOPE10MHZ - 10MHz Single Trace) 2

8 Oscilloscope (Tektronix 465B) (100 MHz Dual Trace Oscilloscope). 2

9 Transistor / Diode Tester - Kit or Assembled 2

10 D.C. Power Supply.( 0-18V@3A)and (0-30V@ 5A) 2

11 VELLEMAN LAB1U - Three in One Lab Unit - Power Supply, Multimeter, and Soldering Station - All in one unit.

2

12 Printed Circuit Board Testing : EL Infrared Circuit Board Inspection System

2

13 Printed Circuit Board Testing : Electronics Failure Analysis and Functional Inspection

2

14 Portable PIC IC Tester (PIC-17000). 2

NOTE :Out of two units one unit for Kolkata Lab and the other unit for WC op I , Mangalore Office.

217

PALAEONTOLOGY LABORATORY:

ADDITIONAL LAB. MACHINERY/EQUIPMENTS REQUIRED

1. Binocular Stereo-Microscope with cold light source and electronic counters – 2 Nos. (Minimum of 100X magnification in 10X eye-piece)

2. Electric oven with thermostat – 1 No.

3. Electronic Weighing Balance – 1 No.

4. Computers (High end) - 2 Nos.

5. Computer printer - 1 No. (for Director’s computer)

6. Laptop computer - 1 No

7. Ultrasonic bath (for cleaning tests prior to SEM photomicrography) – 1 No.

Acquisition of New Research Vessels: Construction of New Ocean Going Research Vessel with state-of-the-art survey equipment has commenced in the month of March, 2011 and the vessels is expected to be delivered in September, 2013 to replace R.V. Samudra Manthan. The process of acquisition of a new Geotechnical Vessel with drilling facility in shallow waters has begun and this vessel will also be available for surveys in 2014. In addition, one Coastal Launch to carryout survey in very shallow waters and estuaries is proposed to be acquired during the XII Plan. The existing coastal vessels (R.V. Samudra Kaustubh and R.V. Samudra Shaudhikama) will be deployed during the XII Plan as per the scheduled programmes.

Proposal for acquisition of additional deep sea vessel: Geological Survey of India is in the process of acquisition of a new multidisciplinary research vessel with state-of-the-art scientific equipment. This vessel will replace the existing R.V. Samudra Manthan. The new vessel will be equipped with 240-channel single streamer seismic survey system, Multi-beam echo-sounders, Synthetic Aperture Sonar, Gravimeter, Magnetometer, underwater Video camera, ROV, ADCP, Multi-corer, CTD, deep corer, water sampler rosette, dredge, etc. The vessel is designed to carry out surveys in water depths up to 6000m and has endurance of 45 days with a total complement of 71 persons including 25 scientists. In addition to the general mapping tasks, specific surveys for polymetallic nodules, cobalt encrustations, hydrothermal sulphide deposits in the deep oceans can be undertaken with the vessel. This type of vessel is unique in terms of its capabilities. The vessel is being built at M/s Hyundai Heavy Industries, South Korea, top ship builder of world and the vessel is expected to be delivered in September, 2013. The cost of the vessel is Rs 549.5 crore. Shipping Corporation of India as the lead consultant and M/s Wartsila Ship Design, Norway as the second consultant has been working on the project to assist and guide GSI. Training at three levels has been made part of the acquisition process to ensure capacity building to effectively utilise various scientific equipment by the time the vessel is delivered. 215 cruise have planned for a estimate effective life period of 35 years for the vessel. Exploration for the polymetallic nodules, cobalt encrusrtations, hydrothermal sulphide mineralisation, in the deep ocean region has also been

218

included in the programme schedule in addition to the exploration for gas hydrates, phosphorite sediment, lime mud, OTEC sites, mapping for the study of sedimentation and tectonic history of oceans etc are important themes for the vessel. However, it is also known that the large area of Exclusive Economic Zone (EEZ), Legal Continental Shelf (LCS), areas of interest in the deep oceans (specifically Indian Ocean) cannot be covered by a single vessel of this sort. With the increasing demand for the base metals, REE and precious metals worldwide and depletion of these reserves on land, search for these deposits in the theoretically potential regions is essential for the sustainable development of any nation. Therefore, there will be heavy competition for the exploration and exploitation of the deep sea deposits by all the technologically advanced countries, particularly the ‘pioneer investors’. China and Russia have already moving forward in this direction. If India does not take steps to accelerate its efforts, she may not only be left behind in the competition but may lose all the potential regions which are relatively in proximity as the International Seabed Authorities (ISA) has the provision in the regulations to allot mining licence to any capable country on application. Preparedness to face the a situation seems to be inevitable for India and the onus of responsibility mainly lies with related ministries viz., Ministry of Mines and Ministry of Earth Sciences. Support of Defence Ministry and Ministry of Shipping may also be required in pursuing these objectives. Geological Survey of India, on their part proposes to acquire another Ocean Going Vessel with the similar design as that of the vessel under construction. One vessel can be fully dedicated for the deep ocean surveys for mineral exploration in the Indian Ocean with coordinated effort with the Ministry of Earth Sciences. The proposal can be pursued in the XII Plan period itself. Geological Survey of India may have to induct more officers for this purpose with the specified special task.

8.3.6 Man power requirement and training in offshore geoscientific activities

I. Man-power requirement

GSI: As per the HPC document human resource projected for marine survey is:

Geologists / Geophysicists / Geophysicist (Instrumentation) / Chemists

120 55 - 40

Till the replacement vessel of RV Samudra Manthan is delivered, the following man power will be required.

Geologists / Geophysicists / Geophysicist (Instrumentation) / Chemists

75 25 15 15

After the delivery of the new ocean going vessel and Geotechnical vessel, the manpower requirement would be as under:

Geologists / Geophysicists / Geophysicist (Instrumentation) / Chemists

125 60 15 30

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Training at Internationally reputed Institutions by experts in various fields on data acquisition, processing and interpretation are being planned and to be implemented immediately as part of acquisition of new vessels. This will be followed up onsite training by the Original Equipment Manufacturers (OEM) and training onboard new vessels. Periodic hands-on-training for the GSI officers will be introduced to get familiarization with data acquisition and interpretation and of collation of the same with the existing database. GSI, being the Nodal Agency for the exploration work both onshore and offshore areas as per the NMP 2008; specific training programmes shall be formulated for the private entrepreneurs for facilitating the exploration in the offshore sector.

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Table – VIII-1

TENTATIVE SCHEDULE OF DEPLOYMENT OF RESEARCH VESSELS

(a) R.V. Samudra Manthan (25 days cruise period) / Replacement Vessel (45 days cruise period)

S.No. Theme Work proposed per Cruise

R.V. SAMUDRA MANTHAN (2012-13 & part of 2013-14)

1. Andaman-Nicobar Sector : Theme based close grid seabed mapping along 10 km / 5 km or even closer cruise track intervals by swath bathymetry, sampling etc. within EEZ towards preparation of seabed maps (geological, geophysical and geochemical)

2 cruises

Area :12000 sq.km

Swath bathymetry:12000 sq.km

Sampling :10 Gravity

Corer (GC)

Water Samples : 8 stations

Current observation : 8 stations

Environmental param:8 stations

2. Gujarat : Search for phosphatic sediments off Gujarat:

2 cruises

Area: 2500 sq. km

Swath bathymetry: 2500 sq.km

Sampling: 50 (GC)

Water Samples : 5 stations

Environmental param: 5 stations

3. Andhra Pradesh, Tamil Nadu: Swath Bathymetry of continental slope sector off Andhra Pradesh and Tamil Nadu

3 cruises

Area: 15000 sq. km

Swath bathymetry: 15000 sq.km

Sampling: 10 (GC)

Water Samples : 5 stations

Environmental param: 5 stations

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REPLACEMENT VESSEL (2013-14, 2014-15, 2015-16 & 2016-17)

4. Andaman-Nicobar Sector : Theme based close grid seabed mapping along 10 km / 5 km or even closer cruise track intervals by swath bathymetry, sampling etc. within EEZ towards preparation of seabed maps (geological, geophysical and geochemical)

4 cruises

Area :12000 sq.km

Swath bathymetry: 12000 sq.km Sensor surveys :1450 lkm

Side scan :250 lkm

Sampling: 130 GC

Water Samples : 8 stations

Current observation : 8 stations

Environmental param:8 stations

(at 10 km line interval and 10 km sampling interval)

5. Andhra Pradesh: Search for lime mud deposits off Andhra Pradesh.

3 cruises

Area: 2500 sq. km

Swath bathymetry: 2500 sq.km

Sensor surveys: 3000 lkm (at 1km interval)

Sampling: 150 (GC)

Water Samples : 5 stations

Current observation : 5 stations

Environmental param: 5 stations

(sampling on 2 X2 km grid in 500 sq.km + 10 X 10 km grid in the remaining area)

6 Lakshmi Ridge: Theme based close grid seabed mapping along 10 km / 5 km or even closer cruise track intervals by multichannel seismic, magnetic, gravimeter, side scan, deep core sampling, dredge, heat probe etc. within EEZ towards preparation of seabed maps (geological, geophysical and geochemical)

6 cruises

Area :12000 sq.km

Swath bathymetry:12000 sq.km Sensor surveys :1450 lkm

Side scan :250 l km

Sampling :130 (GC)

Water Samples : 8 stations

Current observation : 8 stations

Environmental param:8 stations

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7 Search for lime mud deposits, off Gujarat

3 cruises

Area: 2500 sq. km

Swath bathymetry: 2500 sq.km

Sensor surveys: 3000 lkm (at 1km interval)

Sampling: 150 (GC)

Water Samples : 5 stations

Current observation : 5 stations

Environmental param: 5 stations

(sampling on 2 X2 km grid in 5000 sq.km + 10 X 10 km grid in the remaining area)

1. Deployment of R.V. Samudra Manthan is planned for FS 2012-13 & early part of 2013-2014 only since she is likely to be decommissioned in late 2013

2. Only four cruises are proposed for Replacement Vessel in 2013-14 as the Vessel is expected in September, 2013

3. Sensor surveys include Multichannel seismic / Magnetometer / Gravity surveys.

4. Side scan surveys shall be limited to selected sectors based on the results of the Multibeam surveys.

5. After gaining practical experience of the various operations and time required, quantum of work for each cruise may have to be modified.

(b) R.V. Samudra Kaustubh and R.V. Samudra Shaudhikama

1. Tamil Nadu: Sea bed mapping within TW:

5 Cruises

Area :620 sq.km

Sensor surveys : 200 lkm

Sampling :60 (GC);

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:15 stations

2. Marine resource Survey: Assessment of Placer Mineral occurrences off Andhra Pradesh

5 Cruises

Area :50 sq.km

Vibrocores : 66 Stations

Water Samples : 10 stations

Current observation : 10 stations

Environmental param:10 stations

3. Multibeam Bathymetry off Andhra Pradesh / Orissa

5 Cruises

Area :200 sq.km

Swath bathymetry: 200 sq.km

Sampling :10 (GC);

Water Samples : 10 stations

223

Current observation : 10 stations

Environmental param:10 stations

4. Parametric Studies (Seismic and magnetic studies) off Andhra Pradesh & Orissa

10 cruises

Bathymetry: 350 lkm

Shallow seismic: 350 lkm

Magentic: 350 lkm

5. Geotechnical investigations: off Andhra Pradesh, Orissa & West Bengal

10 Cruises

Area :100 sq.km

Sensor surveys : 150 lkm

Sampling :10 (GC)/VC

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:5 stations

6 Systematic seabed mapping off Gujarat

5 cruises

Area :1000 sq.km

Bathymetry : 230 lkm

Shallow seismic : 230 km

Magnetic survey : 230 lkm

Sampling : 80 grab/VC/GC

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:6 stations

7 Multibeam Bathymetric Survey off Gujarat & Maharashtra

10 cruises

Area :100 sq.km

Swath bathymetry: 100 sq.km

Sampling :5 (GC);

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:5 stations

8 Parametric Studies (Seismic and magnetic studies) off Tamil Nadu & Maharashtra

10 cruises

Bathymetry: 350 lkm

Shallow seismic: 350 lkm

Magentic: 350 lkm

9 Geotechnical investigations off Kerala / Karnataka / Maharashtra

5 cruises

Area :100 sq.km

Sensor surveys : 150 lkm

Sampling :10 (GC)/VC

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:5 stations

224

10 Sand investigation for Relict Sand Resources off Kerala / Karnataka / Maharashtra

5 cruises

Area :200 sq.km

Sensor surveys : 150 lkm

Sampling :70 (GC)/VC

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:5 stations

TOTAL CRUISES 70 CRUISES

(c) Geotechnical Vessel with drilling capability (if available)

1. Geotechnical investigation of Seabed and sub-seabed in shallow water as close as to coast to 30m within TW of India in the east coast

3 Cruises

Area :100 sq.km

Swath bathymetry :100 sq.km

Sensor surveys : 105 lkm

Sampling :30 (GC): 8 drilling points

Water Samples : 8 stations

Current observation : 8 stations

Environmental param:8 stations

2. Site specific geotechnical studies for offshore structures like ports, harbours, single buoy mooring system etc

3 Cruises

Area : 50 sq.km

Swath bathymetry: 50 sq.km

Sensor surveys : 55 lkm

Side scan : 250 lkm

Sampling :12 drilling points

Water Samples : 12 stations

Current observation : 12 stations

Environmental param:12 stations

3. To search, delineate, evaluate and prepare 3-D models of placer resources, carbonate sands etc.

3 Cruises

Area :10 sq.km

Swath bathymetry:10 sq.km

Sensor surveys : 25 lkm

Side scan : 100 lkm

Sampling :55 drilling points

Water Samples : 5 stations

Current observation : 5 stations

Environmental param:5 stations

225

(d) Nearshore Survey with hired mechanised Boat (as and when required)

PROPOSED WORK PROGRAMME DURING FS 2014-15, 2015-16, 2016-17 FOR THE COASTAL LAUNCH (EAST COAST & WEST COAST)

S.No. Nature of Work Work proposed

During FS

1 Systematic mapping of nearshsore zone off Andhra Pradesh, Orissa & Kerala

Area :300 sq.km

Sensor surveys : 300 lkm

Sampling :396

Drilling : 15 locations

Water Samples : 15 stations

Current observation : 15 stations

Environmentalparam:15 stations

2 Site specific geotechnical studies in the nearshore sector for offshore structures like ports, harbours, single buoy mooring system etc off Andhra Pradesh, Orissa & Kerala

Area :150 sq.km

Swath bathymetry:150 sq.km

Sensor surveys : 330 lkm

Sampling :60 drilling points

Water Samples : 15 stations

Current observation : 15 stations

Environmental param:15 stations

3 To search, delineate, evaluate and prepare 3-D models of placer resources, in the near shore zone. off Orissa & Kerala

Area :150 sq.km

Sensor surveys : 330 lkm

Sampling :150 drilling points

Water Samples : 15 stations

Current observation : 15 stations

Environmental param:15 stations

Territorial Water Map Compilation:

It is proposed to complete the following TW seabed maps which are at different stages of compilation during the following field season programmes.

Op: West Coast-I

Sl No. F.S. Sheet Nos.

41 G/11 & G/15 (off Navibandar, Gujrat) 1 2012-13

58 D/10 & D/14 (off Varkala, Kerala)

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47 G/3 & G/7 (off Jaigarh, Maharashtra) 2

2013-14

47 G/1 (off Harnai, Maharashtra)

47 G/2 (off Dhabol, Maharashtra) 3 2014-15

58 H/4 & H/8 (off Manavalakurichi, Tamil Nadu)

58 C/7 (off Aleppey, Kerala) 4 2015-16

58 C/8 (off Kayamkulam, Kerala)

58 C/1 & C/5 (off Kochi, Kerala) 5 2016-17

58 C/6 (off Vayalar, Kerala)

Op: East Coast-II

Sl No. F.S. Sheet No

1 2012-13 66D/5 (off Kelambakkam, Tamil Nadu)

2 2013-14 66D/2 and 66D/6 (off Mahabalipuram, Tamil Nadu)

3 2014-15 66D/3 (off Utukuru, Tamil Nadu)

4 2015-16 57P/16 & 66D/4 (off Marakkanam, Tamil Nadu)

5 2016-17 58 M/13 (off Pondicherry, Tamil Nadu)

R&D (Palaeontological) Studies:

a) 2012 –13: Comparative diversity and functional morphological study of the smaller benthonic foraminifers of the shelf areas off Karnataka – Kerala - Tamilnadu coast, Arabian Sea.

b) 2013 – 15: To establish a relation between the generation of radiolarians and silicification in the water mass of Indian Ocean on and around Carlsberg Ridge.

c) 2015 –17: Relative diversity of Radiolarian species with time and space in Bay of Bengal, Arabian Sea and Andaman Sea.

8.5.0 Major Recommendations:

To carryout close grid seabed mapping (geological, geophysical and geochemical) along with multibeam bathymetry, multi-channel seismic, magnetic, gravimetric, side scan, deep core sampling, dredge, heat probe etc. within EEZ (present as well as areas likely to be gained on delineation of outer limit of Legal Continental Shelf).

To carry out comprehensive topographic and sedimentation map under the proposed MoU with MoES in a time-bound manner.

Identify mineral rich zones along with the seabed mapping in the shallow water sector for placer minerals/ lime mud / phosphatic sediments etc and in deep water sector for Polymetallic nodules and hydrothermal deposits / gas hydrates / OTEC.

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To continue mapping of seabed in near shore and offshore region, collection of parametric data on different themes, search for mineral and energy resources, environmental investigations in connection with coastal hazards like coastal and bank erosion

In pursuance of NMP, 2008 the programmes with inter institute collaboration have to be strengthened further and the modality of sharing of offshore data

To search for phosphate rich sediments, lime mud deposits in addition identification of potential areas for gas-hydrate accumulation.

Search for hydrothermal sulphide mineralization, ferromanganese and cobalt rich encrustation, polymetallic nodules in selected sectors of Indian Ocean

GSI to closely monitor the process of acquisition of a new multidisciplinary research vessel which is fitted with state-of-the-art scientific equipment as replacement of R.V. Samudra Manthan and procurement of a new Geotechnical Vessel with drilling facility shallow waters and down-the-hole-tools for timely delivery.

To pursue of one new coastal launch for survey in shallow waters and near coastal lagoons and estuaries in the initial stage.

To adhere to the Modernization Plan of GSI for procurement of various advanced equipment for the laboratories and research vessels.

Acquisitions of another Ocean Going Vessel and second Geotechnical Vessel have been proposed to be pursued during XII Plan for taking up procurement during XIII Plan period.

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CHAPTER-IX

INVESTMENT REQUIRED FOR MINERAL EXPLORATON (Item-IX of Terms of reference)

9.1.0 Preamble Minerals have always formed the backbone of the industrial development world-

over since time immemorial. The need and greed for minerals has been changing the geopolitical scenario from time to time. The ever going-on global exploitation of the minerals for the industrial development leads to the depletion of the existing known mineral resources as the minerals are known to be the depleting assets. Hence, there has always been a need for continuous augmentation of the mineral resources by regular exploration for the newer mineral deposits. Mineral exploration is a high risk and high investment area of activity. Its success ratio depends much on the degree of investment, high sense of understanding of the favourable geological milieu of mineralization and the natural mineral/metal endowment in different crustal segments of the globe. The rich and the affluent nations afford to meet their exploration needs and they also invest in the unexplored and unexploited mineral wealth bestowed with the developing nations for their own interests. The fast growing economies such as the “BRICS”(Brazil, Russia, India, China and South Africa) nations have been investing in their exploration ventures and have also opened up for encouraging the foreign investments. Some of the other nations such as Columbia, Chile, Peru, Quebec (Canada), Arizona(US) and Western Australia have moved far ahead in attracting foreign investments in mineral sector by liberalizing their mineral policies, granting concessions in a very short time, giving incentives to the investors, bringing transparency in the administrative system and providing them high quality geological database. The other nations have to follow policies of these countries by the liberalizing their mineral policies in a more positive manner so as to attract more and more foreign investments

9.2.0 World scenario in mineral exploration spending :

9.2.1 The regional spending in mineral exploration for the last ten years (2001

to 2010) is detailed in TABLE-IX-1.

The analysis of the TABLE- IX-1 on regional exploration spending in the world during the last 10 years (2001 to 2010) reveals some interesting features. There has been a continuous increase in the exploration expenditure from 2001 to 2010 except in the years 2002 and 2009 which have witnessed a decline in the expenditure. In the year 2001 world planned amount on exploration spending was US$ 2.20 billion out of which 2.00 billion was consumed by 679 companies. The figures rose to the total plan of US$ 11.2 billion in 2010 out of which US$ 10.68 billion was consumed by 2089 companies. The number of companies which utilized these funds also kept on increasing from 679 in 2001 to 2089 companies in 2010. The average YoY basis increase on the total world exploration expenditure comes out to be around 25%. In the total world exploration spending of US$ 62.096 billion during 2001 – 2010, the average shares of Latin America (25%), Australia (13%), Africa (15%), Pacific and South

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East Asia (5%), Canada (19%), US (8%) and the Rest of the World including Europe, Middle East, Russia, CIS countries and countries of Indian Sub continent (15%) have been US$ 15.481, 8.128, 9.432, 3.168, 11.595, 4.723 and 9.596 billions respectively (TABLE – IX-2). The Latin America has registered the highest share percentage of total world exploration expenditure because of the liberal mineral policies of nations such as Chile, Peru, Brazil and Argentina which has resulted in encouraging and attracting the foreign investments. The rest of the world including Indian Sub Continent have shown a positive trend even in 2002 when the whole world registered a negative growth in exploration spending may be due to aggressive and ambitious mineral sector programmes of China but in 2009 these countries also joined the whole world in the slowdown. The years 2007 and 2008 have seen a sudden spurt of increase in the exploration spending globally. The North and South America share 35% of the world exploration expenditure during 2001 – 2010. (Data source : Metal Economic Group , Canada, compiled and communicated by FIMI, 2011). TABLE-IX-3A shows the top ten countries of the world namely Canada, Australia, U.S., Russia, Mexico, Peru, Chile, South Africa, China, Brazil, Argentina and other countries in order of decreasing exploration expenditure from the year 2007 to 2010. The McKinsey report, 2011 has benchmarked Brazil (4), Chile (6) and Peru (7) amongst the 7 best practice mining geographies alongwith USA (1), Canada (2), Australia (3) and South Africa (5). The Parameters for these positioning have been financial, physical, policy and mining potential and key elements of policy and system. The exploration has been a common factor in all these parameters. The report further shows an average exploration per annum spending in U.S from 2000 to 2008 with a +26% rise, Western Australia (2000 -2010) with +11% rise whereas mining industry in Chile and Brazil have seen a per annum growth of +18% and +6% from 2000 to 2010.The coming five years may see some change in the traditional mineral exploration patterns as the conservative countries are likely to break the bureaucratic and political shackles and open up for foreign investors by liberalizing the mineral policies in a more investor friendly manner as a result the order of investment is expected to increase substantially in Africa and rest of the world including Indian sub-continent.

TABLE-IX-1 WORLD EXPLORATION EXPENDITURE

Year

Planned Amount

(US $ Billion)

Amount Utilised (US $

Billion)

No. of Compani

es

%age increased / decreased over last

year

2001 2.2 2.0 679 (-) 15.38 / (-) 14.52 2002 1.9 1.73 724 (-)13.64 / (-) 13.50 2003 2.4 2.19 917 26.32 / 26.58 2004 3.8 3.55 1138 58.33 / 62.10 2005 5.1 4.9 1431 34.21 / 38.02 2006 7.5 7.13 1624 47.05 / 45.51 2007 10.50 9.99 1821 40.00 / 40.00 2008 13.2 12.6 1846 26.00 / 26.00 2009 7.7 7.32 1846 -- N.A -- / (-) 42.00 2010 11.20 10.68 2089 45.45 / 45.90

(Source : Metals Economic Group, Canada)

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9.2.2 The report of Metal Economic Group, Canada citied that the global spending for gold exploration. was US $ 2.30 billion in 2005 being 47% of total world exploration expenditure rose to US $ 3.21 billion in 2006, 4.10 billion in 2007 and 4.914 billion in 2008 and with a slight decline to 3.51 billion in 2009 again rose to US $ 5.45 billion in 2010 being 51% of the total world exploration expenditure of US $ 10.68 billion (TABLE IX-3B). In case of base metals the expenditure on exploration from 2005 -2010 has been US $ 1.42, 2.28, 3.60, 5.04, 2.64 and 3.52 billions respectively sharing between 30-40% of the total world exploration expenditure every year. Copper enjoyed the lion’s share in the base metal exploration expenditure. The world exploration spending for diamond has been US $ 0.64 billion in 2005 showed a gradual increase in the expenditure to US $ 0.86, 1.00 and 1.008 billions in 2006, 2007 and 2008 respectively and then started declining to US $ 0.36 billion in 2009 and 0.32 billion in 2010. The percentage of the diamond exploration expenditure to the total world exploration expenditure has been continuously declining from 13% in 2005 to 12% in 2006, 10% in 2007, 8% in 2008, 5% in 2009 and 3% in 2010.roughly indicating that much more funds are spent in other minerals than diamond. The exploration expenditure in the platinum group of metals (PGM) has been almost flat ranging only between 2-4% of the total world exploration expenditure. The world spending on the exploration for the other mineral commodities also saw a gradual increase from 7% in 2005 to 11% in 2010 with a slight decline in 2009. There has been a general growth in the mineral exploration expenditure from 2005 to 2008 but after a decline in 2009 the positive trend again continued from 2010. The decline of 2009 is also witnessed in gold exploration expenditure but here the spending forms 48% of the total world exploration expenditure meaning thereby that inspite of a decline in the global mineral exploration there has been a continued interest in the gold exploration as compared to the other minerals. This may be attributed to the phenomenal rise in the gold prices which keep on scaling newer heights day by day. Similarly, the way silver is scaling new high prices these days silver and base metals from which silver is recovered as a bye product may see fresh interest and free flow of funds in exploration and mining of these metals in near future. The demand for diamond and platinum group of metals may also increase but basically the overwhelming thrust will continue to remain on the gold, silver and base metals only.

9.2.3 A review of recent discoveries of gold deposits in various parts of the globe in

the last few years shows that they are commensurate with exploration spending in the respective regions. In essence, risk venturing is paying due dividends and further scrutiny may authenticate this opinion.

9.3.0 Indian scenario in exploration spending 9.3.1 Before the coming up of the National Mineral Policy-1993 wherein the mineral

sector (excluding the atomic minerals) was thrown open to the private sector, the mineral sector was completely under the government patronage. The policy did have an impact in the circle of private entrepreneurs but the government sector did not properly adjust itself to the new changes. As a result the private players had to undergo the stringent red-tape procedures with a lot of delays in getting the job done. The policy thus, could not deliver the desired results. The new National Mineral Policy-2008 was put forward in order to further promote the private sector participation in the mineral sector. This policy included some

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liberal factors for the encouragement of the private sector players such as measures for the improvement in the regulatory environment conducive to private investment, transparency in the allocation of concessions, sustainable development of the biodiversity and the mining, development of infrastructure in the mineral rich area and data dissemination by the state agencies etc. This policy has started showing some positive developments but the governmental procedural mindset still requires a much softening. The State Governments, who are the custodians of the mineral property, still have to go a long way for the success of the National Mineral Policy-2008.

9.3.2 To push forward the National Mineral Policy-2008 for encouraging the private

sector investments in mineral sector, the government has initiated some measures which include amendments of the Mines and Minerals Regulation & Development Act, 1957, in 1994; the issue of guidelines for Prospecting Licences (PL) for large areas in 1969; the amendment of MMRD Act w.e.f. 20.12.99 (with prominence to ‘development’ over ‘regulation’); the amendment of MCR, 1960 w.e.f. 05.05.2005 and the amendments of MCDR, 1988 w.e.f. 18.1.2000 and further the Ministry of Mines has framed a new Mines and Minerals (Development and Regulation) Bill, 2011 to replace the MMDR Act 1957 after intensive consultations with the stake holders and State Governments. This draft legislation has been referred to a Group of Ministers under the Chairmanship of the Hon’ble Finance Minister. The draft MMDR act envisages four broad types of mineral concessions which are – (i) Reconnaissance Licence (RL), Prospecting Licence (PL), Large Area Prospecting Licence (LAPL) and Mining Lease instead of existing three which are – Reconnaissance Permit (RP), Prospecting Licence (PL) and Mining Lease. The LAPL is a new type of mineral concession and it is proposed to be granted only for deep seated deposits for multiple minerals (other than iron ore, bauxite, limestone etc.). LAPL as a concession is thus, not an asset with a value; rather it is a method of locating an asset of value. The process of e-dissemination of the geoscientific data by GSI, IBM and MECL, sale of MECL exploration reports, sustainable development of bio diversity with mining, bringing transparency in the grant of mineral concessions by regular interaction of the Central and State governments and inviting the private entrepreneurs in different government forum for interaction etc. are some of the other measures being introduced to put forward the National Mineral Policy 2008. With these investor friendly changes in the rules and regulations it is hoped that a conducive and compatible environment will be created to attract capital investment and technology transfer by the private sector including foreign companies, both in high risk field of mineral exploration and in the mining and metallurgical industries, considering India’s high geological potential for new mineral discoveries.

9.3.3 Impressed by the many fold increase in the foreign investments in mineral and

mining sector in Latin American countries such as Brazil, Chile, Peru and Argentina, Western Australia, South Africa, Quebec (Canada), Columbia, Arizona (US) etc. the Government of India hired a consultant M/S Faser Institute/ M/s McKinsey to study the mining policies of these countries and suggest/ recommend measures for implementing in the Indian mineral policy. McKinsey report has benchmarked USA, Canada, Australia, Brazil, South Africa, Chile and Peru as the 7 Best Practice Mining Geographies. It has ranked India as being the last in the composite policy and mineral potentials where

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Quebec, Chile, Western Australia, Arizona, Brazil and Peru are far ahead in decreasing order. The rank of India has also been placed as poor on the major policy and regulatory issues, quality of geological information and policy potentials. The processing time taken in India for mining rights is longer than almost all other countries. The report has placed Colombia at the first place followed by Botswana, South Australia, Brazil, Ghana and so on. The unique qualities of the policies of these countries are that they grant small licences within 13 to 20 days for large mines typically in 30 days, on line system for applications and introduction of fixed timelines for processing of applications, single point agency for all approvals, providing strong infrastructural backup, developing Cooperative Research Centres with grants for the government, providing free on line access to geological and geophysical information high rate of conversion of EL/PL into ML and fund provision under Exploration Incentive Scheme for encouraging exploration etc.

9.3.4 The expenditure on exploration activities in the developed countries is largely

met by the Private Sector, while in India this funding comes mainly from the Government. With the recent liberalization of economic policies, it was contemplated that a major share of exploration spending will be borne by the Private Sector but till this time no significant overtures in the new direction are visible. The possibilities of any change in the funding situation are still in the nascent stage and as such major responsibility of exploration funding is expected to be continued with the public sector as before for quite sometime to come. Moreover, in a country like India, it may not be feasible to shift away the entire responsibility of mineral sector from the hold of public sector at one stroke in view of the far-reaching societal impact and overall national interest towards resources build-up keeping an eye on sectoral balance.

9.3.5 The level of funding for mineral exploration (including solid fuel sector) in India

has been inadequate in comparison with the global scenario. The current exploration spending in India is at US$ 15/sq.km as compared to US$ 124/sq.km. in Australia and US$ 118/sq.km. in Canada (Mckinsey Report, 2011). GSI being the premier exploration agency in India can be taken as an indicator on the extent of exploration activities in the country. In this regard it may be mentioned that, since the beginning of the 8th Five Year Plan (1992-1997) till the end of the fourth year of the XIth Plan period, the cumulative Plan expenditure towards Mineral Sector by GSI is Rs. 1790 crores only. Despite the fact that there was a significant boost in exploration spending since IXth Plan period onwards still the country’s spend on exploration projects is low at 0.5% of the global spend (Mckinsey Report, 2011).

9.4.0 Scale of private investment expected during XIIth plan 9.4.1 Domestic private investment for exploration has remained insignificant in the

country before and after liberalization. Traditionally, the private mining companies in India seldom look ahead of immediate commercial interest and any spending other than on-going production is related to the development of the mine working in immediate extension of their existing property. The MNCs also have shown a very cold response.

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9.4.2 The opening up of the mineral sector to the private sector players and the

Foreign Direct Investment (FDI) with the introduction of the New Mineral Policy in 1993, it was expected that besides the domestic investments foreign investments will also start flowing in for mineral exploration and mining. The results were not encouraging as all proposals were considered on a case to case basis by the Foreign Investment Promotion Board (FIPB) resulting in delays. The FDI policy was further liberalized in January, 1997 which opened up an “automatic approval” route for investments involving foreign equity participation upto 50% in mining projects and upto 74% in services incidental to mining. The liberalization process in the mining sector continued as a result the FDI cap for all non-atomic and non-fuel minerals has been fully opened upto 100% through the automatic route including diamonds and precious stones from February, 2006. From then onwards the FDI in the mining sector have been US$ 6.62 million in 2006-07, US$ 444.26 million in 2007-08, US$ 34.22 million in 2008-09 and US$ 86.63 million in the first half of 2009-10 i.e from April 2009 to September 2009 (Source: DIPP). The year 2007-08 saw the highest FDI flow of US$ 444.26 million which has also resulted in achieving the highest ever number of RPs (60 nos.) during the year. To accelerate the FDI infusion the Government of India through Ministry of Mines has been interacting with Namibia, Argentina, Prospectors and Developers Association of Canada, Western Australia, Canada, Chile, South Africa, Iran ,Thailand etc. through diplomatic channels, entering into MoUs, participating in and organizing exhibitions and investor’s meets.

9.4.3 The Government of India is further contemplating on the softening of the

stringent legislations for the benefit of the investors. It has appointed M/S McKinsey & Co. for the analysis of the policy models of Latin America countries, Western Australia, South Africa and suggest measures for the investor friendly mining policies.

9.4.4 In the existing scenario some of the major foreign players such as De Beers

India, Rio Tinto, Anglo American, Adi Gold Mining, Hindustan Zinc Limited (HZL) of Vedanta Group etc. are actively engaged in mineral exploration in the country. De Beers India presently has 53 RPs covering an area of 80,160 sq.km and 12 PLs over an area of 343 sq.km. The total investment by DIPL in India is in excess of Rs. 130 crores on exploration of which Rs. 33 crores were invested during the XI plan period. It has an annual budget of US$ 2.0 million which translates into about Rs. 45 crores for the XIIth Five Year Plan Period and if it succeeds at the RP stage and moves to the PL and ML stages their budget may far exceed this amount. Rio Tinto has spent around Rs. 150 crores since 2002 till date in India on mineral exploration. Its Bunder Deposit in Chhatarpur district of Madhya Pradesh is in US$ 60 million Pre feasibility stage. Anglo American has spent US$ 5 million between 2001-2007 on base metal exploration. Adi Gold Mining is an Indian subsidiary of M/S Pebble Creek Mining Limited, Canada intends to develop Ascot Deposit of Uttaranchal as a commercial mineral producer. It has invested US$ 13 million in India and Ascot till now. The HZL has 8 RPs covering an area of 4130 sq.km. in Rajasthan. Its regional exploration budget is in the range of US$ 8 to 10 millions/annum meaning thereby around US$ 50 million for the five year plan period.

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9.4.5 De Beers has 9 RP applications pending for an area of 9,753 sq.km. in Andhra Pradesh, Chhitisgarh and Jharkhand. HZL has 14 RP for an area of 17,865 sq.km in the states of Rajasthan, Gujarat, Maharashtra, Karnataka, Uttaranchal and Himachal Pradesh and 14 PL applications for 250 sq.km. in Rajasthan, Tamil Nadu and Madhya Pradesh pending for approval and Vale India Pvt Limited has 1 RP and 9 PL applications pending for approval. Once these pending applications are granted the company has a proposal to spend Rs 10-12 crores on exploration in three years. The company has plans to file 10 applications involving an additional expenditure od Rs. 10-12 crores. It has lined up an exploration budget in the range of Rs.22-25 crores, excluding administrative and other overheads. Australian Indian Resources (AIR) Group of Companies has from 2003 till date applied for 119 PLs (2863.02 sq.km) in various states for a host of minerals including gold, ferro-sand non ferrous minerals, platinum group and rare earth minerals. Only six licences have been granted over an area of 111.18 sq.km. Jindal Steel and Power Ltd.(JSPL) has spent Rs. 53.58 lakhs on drilling for iron ore between 2008-2011 and Hutti Gold Mines Limited (HGML) has been engaged in both regional as well as mine level exploration. Manganese Ore India Limited (MOIL) has a proposal of around 36000m of drilling for augmenting the resources during the XIIth Five Year Plan period.

9.4.6 A total of 372 RPs have been granted with Madhya Pradesh (82), Rajasthan

(72), Karanataka (57), Andhra Pradesh (53), Chhattisgarh (38), Orissa (26), Uttar Pradesh (20), Maharashtra (10) are the leading states in terms of grant of RPs. The highest number of 66 RPs was granted in the year 2007-08 followed by 56 in the year 2009-2010 and the lowest being 6 RPs in the year 2006-07. The analysis of the grant of RPs yearwise does not follow any regular pattern to denote about the interest being shown by the investors (TABLE- IX-4).

9.4.7 For making any reasonable projection of expected private investment for

exploration in the next five years of the XIIth plan period several factors have to be considered. Traditionally, the domestic private sector is not really ready to go out to the high risk, high-investment areas outside their known fields of industrial and minor minerals, that too on limited scale only. Comparatively bigger corporate bodies in majority are oriented towards joint venture propositions in league with global enterprises and are largely dependant on their prospective foreign partners, both in terms of financing and technology. Ultimately it is the granting of RP or PL by State Governments, permission of DGCA to fly, defense clearance etc. determines the actual implementation of the projects and consequent investment flow. The review of global pattern of investment in exploration reveals that Asian Countries even otherwise has been less attractive for the MNC’s.

9.4.8 In view of the scenario presented above and the existing dynamic and investor

friendly National Mineral Policy-2008 which emphasizes on the promotion of the private investors by suggesting the liberalization of the legislations, quick and fast granting of mineral concessions, easy access and dissemination of the technical data from the government agencies etc. The efforts of the government towards analyzing the mining policy models of the attractive FDI destination countries for implementation of such models in India may bear fruits and there appears a scope of substantial improvement in order of private investment (foreign & domestic) during the XIIth Plan period. Further, keeping in view the

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upward trend in the Indian economy, high demand of minerals specially iron ore in China, the improving state of infra structure in the country may motivate interest in the private investors (both domestic & foreign) in the mineral sector as a result an optimistic projection of expected private investment in the XIIth Plan period would be more than US $ 1 billion. It is obvious that even if the investment flow matches above projection, it will be spent only for searching gold, diamond and base-metals betraying a severe lack of balanced approach to much cherished national goal of resource augmentation on a wider spectrum;. It is therefore evident that during the XIIth Plan private investment alone cannot be expected to attend the national priorities.

9.4.9 It may be realized that even with the outstretched expectation of private sector

contribution of US $ 1 billion for next five years the nation cannot fulfill the balance to reach the optimum level of spending of 4% of global spending on exploration. Hence, within the possible means the national exploration agencies will have to be supported for ensuring a balanced growth in this sector in the foreseeable future. This should also include adequate thrust on up-gradation of their capability through modernization of equipment and acquiring of state-of-the-art technology and expertise in all related field of mineral exploration at a pace to match the global advancements.

9.5.0 Financial out lays (agency-wise projection of promotional funding) for the

XIIth plan period.

9.5.1 The financial out-lays for Govt. agencies viz. GSI, IBM, MECL, State DGMs and others are presented below, which are in consonance with work plan and schemes of modernization presented in chapter IV and V.

9.6.0 Geological Survey of India: 9.6.0 Geological Survey of India:

To execute the activity of XII plan period a total financial outlay of Rs 4596 crores is proposed by GSI which includes the expenditure under plan head (salary) of Rs 237 crores and a construction budget for Rs 263 crores. The break up of the outlay is given below: 1. Systematic Geological Mapping and Specialised Thematic Mapping ( with a

target of STM:80,000sq km + SGM:4200sq km field work and cost of analyses of samples, procurement of field laptops, GPS units, Digital Toposheets etc): Rs 10 crores

2. National Geochemical Mapping (with a target of 2,83,500sq km field work, analyses of samples for 9 packages): Rs 160 crores

3. National Geophysical Mapping (with a target of 2,23,250sq km field work): Rs 20 crores

4. National Hyperspectral Mapping (collection of Hyperion data, preparation of Hyperion Library, procurement of spectroradiometer, procurement of processing software and hyperspectral remotely sensed data): Rs 50 crores

5. National Geomorphological Mapping: 2 crores 6. Marine Coastal Survey : Rs 330 crores 7. Multisensor Aerogeophysical Survey (Heliborne and TOASS, continuous

upgradation of hardware and software): Rs 45 crores 8. National Geophysical Data Repository: Rs 10 crores

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9. Exploration activity in energy sector(with a target of 349 sq km LSM and 2,34,340m drilling): Rs 56 crores

10. Exploration activity in non-energy sector(with a target of Rec Mpping 30,000sq km, LSM 26,700m and 2,19,900m drilling) : Rs 204 crores

11. National Drill Crore Repository: Rs 25 crores 12. Data Dissemination in virtual sector (Procurement of hardware and software

and publication, Inf Dissemination and Printing): Rs 230 crores 13. Research and Development: Rs 172 crores 14. Training and Capacity building: Rs 32 crores 15. Modernization Activity: a) Procurement of High Cost Items: (i) Committed

(Repl Vessel and Geotechnical Vessel): Rs 612 crores ; (ii) Proposed (Two coastal launches): Rs 100 crores; b) Lab and Drilling item (State of the art drilling machines such as reverse circulations, hydraulic rigs etc): Rs 670crores

16. Expenditure under Dir. & Admn, Misc Major Expdt and Motor vehicle(Rs 236.61+Rs 63.90+Rs 25.00): Rs 325 crores

17. Construction budget of GSI: Rs 263 crores 18. For outsourced items ( National Aeromagnetic Mapping, NGCM for 3,00,000

sq km area and NGPM of 5,00,000 sq km area) a total provision of Rs 1282 crores

Details of Financial Outlay under Survey and Mineral Exploration Sector

(Rs. in crore) I REGIONAL EXPLORATION ACTIVITY a) National Hyperspectral Mapping 50

b) National Geochemical Mapping(GSI 2,83,500sq km +Outsourcing of 3,00,000sq km) 600

c) National Geophysical Mapping (GSI 2,23,250sq km+outsourcing of 5,00,000sq km) 160

d) National Geomorphological & Lineament Mapping 2 e) National Aeromagnetic Survey 700 f) Multisensor Geophysical Survey (Heliborne & TOASS) 45 g) Marine Coastal Survey 330 h) National Geophysical Data Repository 10 i) Regional Mapping 10 Total 1907II DETAILED MINERAL EXPLORATION (a) Energy & Non Energy 260 (b) National Drill Core Data Repository 25 Total 285III DATA DISSEMINATION IN VIRTUAL SECTOR

Procurement and Maintenance of Soft and Hardware & Publication, Info. Dissem. & Printing 230

IV RESEARCH AND DEVELOPMENT

R & D, Antarctica Expl., Spl. Investigation, Centre of Excellence on Fundamental Research and Grant -in aid 172

V TRAINING AND CAPACITY BUILDING Training and Capacity Building 32VI MODERNISATION ACTIVITY

(a) High Cost Items - Committed (Repl. Vessel + Geotechnical Vessel) 612

(b) High Cost Items - Proposed (Coastal Launche) 100

237

(d) Procurement of Equipment other than High Cost Items (Lab & Drilling Items) 670

Total 1382VII

Overhead Expenditure (Salary, DTE, OE, Prof Service, Motor Vehicle & Other Expenditure etc. ) 325

TOTAL 4333 Construction Budget of GSI 263 GRAND TOTAL 4596 The phasing of Operational Expenditure during the XII plan period excluding the expenditure under capital items i,e High and low cost modernization equipments worth Rs 1382 crores, construction budget of Rs 263 crores and outsourcing component for M-1 of Rs. 1282 crores is shown below [Rs 4596 crores – (Rs 1382 crores + Rs 263 crores + Rs. 1282)=Rs 1669 crores]:

(Rs in crore) 2012-13 2013-14 2014-15 2015-16 2016-17 Total

269 299 332 367 401 1669

The scheme-wise details along with he expenditure breakup for mineral exploration (Mission II) of the proposed Plan outlay for 12th Plan both Revenue and Capital Heads of GSI are provided in Table-IX-5.

9.7.0 Indian Bureau of Mines:

9.7.1 Provision of Rs. 50 crores has also been made for the implementation of the scheme on Computerized Online Register on Mining Tenement System and linking up with State Land Records Database for digitized cadastral maps.

9.8.0 Mineral Exploration Corporation Ltd:

9.8.1 The annual drilling capacity of MECL has risen from 1.72 lakhs meters in the

Xth Plan period to around 2.38 meters in the XIth Plan period registering an increase of 38%. Similarly, the exploratory/developmental mining has also increased from around 4000m. in the Xth Plan period to around 6600 meters in the XIth Plan period registering an increase of around 60%. These activities have been supplemented by other geological/geophysical components connected with exploration of minerals. With the modernisation and technological upgradation programme being taken up/implemented, the drilling productivity and the drilling capacity is expected to increase upto the level of 2.60 lakh meters annually. Excluding the share of coal exploration on behalf of Ministry of Coal and other contractual assignments for different minerals on behalf of other PSUs/Private Sector, MECL envisages annual achievement of 25000m drilling and 1000m of exploratory mining together with matching activities in conformity with National priority during the XII th Plan period.

9.8.2 A provision of over Rs. 250 crores on the average price of inputs was made for the purpose under the Promotional head for MECL during the XIth Five Year Plan period from 2007-08 to 2011-12 for the exploration of a wide mix of mineral deposits by the Government of India through Ministry of Mines. In addition an amount of Rs. 66 crores towards replacement of machinery / equipment / instruments was also to be made available. Out of the proposed promotional funding of Rs. 250 crores for the XIth Five Year Plan period an amount of only Rs 50 crores was actually sanctioned and only Rs. 32.65 has

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been provided upto the first four years of the XIth Five Year Plan period. For the last year of the plan period around Rs. 8.00 crores is expected to be released from such fund. Hence, a total of only Rs. 40.65 crores is likely to be funded from the sanctioned Rs.50.00 crores being only 81.30% of the approved promotional exploration fund for the XIth Five Year Plan period. Similarly, only Rs. 27.31 has been received upto the first four years of the XIth Five Year Plan period and for the last year around Rs. 9.00 crores is expected thereby a total of Rs. 36.31 crores is likely to be funded towards replacement/procurement of machinery / equipment / instruments from approved promotional funding being only 82.50% of the sanctioned amount of Rs.44.00 crores. This shows that there has been a considerable reduction in the XIth Five Year Plan period. The other factors contributing for the reduction in promotional funding being the government’s policy towards reducing the promotional funding to the government agencies so as to encourage the private sector players in mineral exploration.

9.8.3 Inspite of the coming up of the private sector players in mineral exploration and with the encouragement being provided by the government to these players to invest in the mineral sector as per the National Mineral Policy-2008 the interest of the private sector players has been only in a few high value minerals such as gold, diamond, base metals etc. This interest is slowly getting reduced because of the shortage of good deposits with high grades and huge tonnage in these minerals. The other minerals get totally neglected due to a similar policy for the bulk as well as the non bulk minerals. There is a need for a separate policy for the bulk as well as non bulk minerals. This will boost the exploration and exploitation of the long neglected low value minerals and may even attract the private sector players in this segment of the mineral inventory which is also the need of the hour as per the requirements of the National Mineral Policy-2008.

9.8.4 It is proposed that for the promotional exploration activities an outlay of Rs.125 crores and for replacement of machinery/equipment/instrument Rs.50 crores totaling to Rs.175 crores would be required by MECL during the XIIth Five Year Plan Period from 2012 – 2017.

9.9.0 State Government and others:

9.9.1 The Directorates of Mines and Geology (DMG) of Andhra Pradesh, Chhattisgarh, Jharkhand, Karnataka and Rajasthan have proposed budgetary provisions of Rs.467.27 crores for the XIIth Five Year Plan Period. The details of budgetary provisions are given in TABLE-IX-6.

9.9.2 During the XIth Five Year Plan Karnataka State has carried out exploration for limestone, iron ore, manganese, ornamental stone, quartz, feldspar, steatite, PGE and china clay and has granted 18 PLs to 14 private entrepreneurs for gold, manganese, corundum, iron ore, limestone, clays, dolomite, laterite and white quartz.during the XIth Plan Period out of which 3 PLs have been executed.

9.9.3 Jharkhand State has been carrying out mineral exploration in iron ore,

limestone, granite, quartz, graphite, bauxite, manganese and soap stone apart from coal and has granted and execution of 6 PLs to 5 private companies for iron ore & manganese, coal, quartz & feldspar and limestone besides 5 PLs to 5 private companies for coal.

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TABLE: IX-6 Statewise budgetary provisions of some important states for the XIIth Plan

Period. Sl.No. State Budget for XIIth

Plan Period (In crores rupees)

Remarks (In crores rupees)

1 Andhra Pradesh No funds allocated for exploration.

Mineral investigation projects worth Rs.2.36 crores taken up from DMRTUF* during 2007-08 and 2008-09

2 Chhattisgarh 150.00 For mineral exploration & development

3 Jharkhand 131.77 Includes Rs. 49.59 crores for modernization and infra structure

4 Karnataka 70.00 Total Rs.70.00 crores for modernisation

5 Rajasthan 80.00 Includes Rs.32.50 crores for modernisation

Total 431.77 * DMRTUF Development of Mineral Resources and Technology Upgradation Fund 9.9.4 Andhra Pradesh is the second largest storehouse of mineral resources in India.

State occupied 1st position in value of minor minerals (27%) and 3rd in mineral revenue collection (>Rs. 2000 crores) of the entire country. There is no allocation of funds for mineral exploration by the state government. The state government has created Development of Mineral Resources and Technology Upgradation Fund (DMRTUF) by allocating a marginal 10% of the sales turnover of the state owned Andhra Pradesh Mineral Development Corporation in 1997 with a set objectives to optimizing the mineral resources through scientific studies with involvement of both State and Central scientific organizations and Universities. The state has disposed 7731 mineral concession applications, granted 32 ML/PLs for major minerals and 1858 QLs for minor minerals during the year 2010-2011. The state has constituted State and District level Task Force Committees to curb illegal mining and has booked 18530 cases of illicit transportation of minerals during 2010-2011.

9.9.5 The state of Chhattisgarh has granted and execution of 64 PLs to 54 private

companies for iron ore, limestone, dolomite, tin ore, marble, fire clay, quartz, granite, silicious shale/porcellinite, quartzite and ornamental stones and thrust was given to the exploration of bauxite, iron ore, limestone and mafic/ultramafic rocks during the XI five Year Plan period.

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9.9.6 Rajasthan state has been carrying out exploration for limestone, noble and base metals, dimensional and decorative stones in addition to the lignite exploration during the XIth Five year Plan period.

9.9.7 Kerala State has granted 3 PLs to three companies on granite and

dimensional stones and through DMG china clay, bauxite, iron ore, tile and brick clays sand, and lime shell deposits were explored during the XIth Five year plan period.

9.9.8 Maharashtra State DGM has granted 23 PLs to 18 private companies for

manganese (8Nos), iron ore (11Nos), limestone (3Nos) and zinc (1No). The DGM has carried out exploration for iron ore during the IXth Plan and proposes to carry out manganese exploration during the XIIth Plan period.

9.9.9 The West Bengal Directorate of Mines and Minerals has granted 6 PLs for

coal, 1 PL for quartz, felspar and mica and 3 PLs for silica sand and fire clays (Total 10Nos) during the XIth Plan period. The DMM is also engaged in the exploration of kyanite, black stone, quartz-felspar, pyrophyllite, glass sand, apatite, clays, magnetite and talc-steatite.

9.9.10 The inputs received from the State Governments of some of the mineral rich

states propose Rs 431.77 crores (TABLE-IX-6). On an average the mineral rich states propose around Rs.50-70 crores for the exploration fund and around Rs. 20-30 crores for modernization activities. Taking into consideration 12 mineral rich states @ Rs 100 crores the total amount may be envisaged as Rs. 1200 crores. For the rest of the states with adequate mineral resources an amount of Rs. 800 crores may be earmarked. Hence, a total of Rs. 2000 crores may be made available to the State Governments for exploration and related activities during the XIIth Five Year Plan period 2012-2017 keeping in view the objectives of NMP 2008 which emphasizes on the strengthening of the state government DMGs.

9.9.11 The state governments may further develop a mechanism for the generation of

funds for exploration from the revenue collection of the mineral sector. The Andhra Pradesh government has made a modest beginning by creating Development of Mineral Resources and Technology Upgradation Fund (DMRTUF) by allocating a marginal 10% of the sales turnover of the state owned Andhra Pradesh Mineral Development Corporation with a set objectives to optimizing the mineral resources through scientific studies with involvement of both State and Central scientific organizations and Universities. The other states may also follow such initiatives or may develop a mechanism of their own for generating funds for mineral exploration in their respective states.

9.10.0 Overall Expenditure for Mineral Exploration. 9.10.1 The overall expenditure estimated for the XIIth Five Year Plan for mineral

exploration and related activities (other than coal and lignite alone totals to Rs 6821 crores.

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The organization wise break-up is as follows:

Agency Estimates GSI (Promotional & Capital) Rs. 4596 crores IBM Rs. 50 crores MECL (Promotional & Capital) Rs. 175 crores State Govt. and other agencies Rs. 2000 crores Total Rs. 6821 crores

9.10.2 The annual phasing of expenditure of Rs.6821 crores is given below:

Exploration Agency 2012-

2013 2013-2014

2014-2015

2015-2016

2017-2017

Total

GSI i) Operational

Expenditure ii) Outsourcing

component iii) Capital Items iv) Construction

Budget

269

--------

--------

--------

300

--------

--------

--------

332

--------

--------

--------

367

--------

--------

--------

401

--------

--------

--------

1669

1282

1382

263

Total 4596 IBM

i) Computerised Online Register on Mining Tenement System

10

10

10

10

10

50 Total 50 MECL

i) Promotional ii) Capital

22 10

23 10

25 10

27 10

28 10

125 50

Total 32 33 35 37 38 175 State Govt. and other agencies

500 500 500 500 500 2000

GRAND TOTAL 6821

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TABLE-IX-2 WORLD WIDE REGIONAL EXPENDITURE ON MINERAL EXPLORATION AND DEVELOPMENT

(US$ BILLION)

Sl.No Location /Region

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Amt. % Amt. % Amt. % Amt. % Amt. % Amt. % Amt. % Amt. % Amt. %

Amt %

1 Latin America

0.576 28.8 0.448 26.00 0.518 23.00 0.773 21.80 1.127 23.00 1.711 24.00 2.398 24.00 3.150 25.00 1.900 26.00 2.880 27.00

2 Australia 0.349 17.5 0.304 18.30 0.339 15.50 0.522 14.70 0.637 13.00 0.784 11.00 1.199 12.00 1.764 14.00 0.950 13.00 1.280 12.00

3 Africa 0.277 13.8 0.257 14.00 0.374 17.10 0.572 16.10 0.833 17.00 1.141 16.00 1.598 16.00 1.890 15.00 1.100 15.00 1.390 13.00

4 Pacific and South East Asia

0.133 6.7 0.085 4.90 0.093 4.20 0.156 4.40 0.196 4.00 0.285 4.00 0.400 4.00 0.630 5.00 0.440 6.00 0.750 7.00

5 Canada 0.333 16.6 0.317 18.27 0.471 21.50 0.696 19.60 0.931 19.00 1.355 19.00 1.898 19.00 2.394 19.00 1.170 16.00 2.030 19.00

6 U.S. 0.158 7.9 0.125 7.18 0.153 7.00 0.284 8.00 0.392 8.00 0.570 8.00 0.799 8.00 0.882 7.00 0.510 7.00 0.850 8.00

7 Rest of world (including Europe, Middle-East, Russian, CIS Countries and countries of Indian Sub-continent)

0.175 8.7 0.197 11.35 0.244 11.10 0.547 15.40 0.784 16.00 1.284 18.00 1.698 17.00 1.890 15.00 1.250 17.00 1.500 14.00

2.001 100.00 1.733 100.00 2.192 100.00 3.550 100.00 4.900 100.00 7.130 100.00 9.990 100.00 12.60 100.00 7.32 100.00 10.680 100.00

(Source: Metals Economic Group, Canada)

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TABLE 3A: EXPLORATION EXPENDITURE OF TOP TEN COUNTRIES

S.NO. Country 2007 2008 2009 2010

US$ billion %age US$ billion %age US$ billion %age US$ billion %age

1 Canada 1.8981 19 2.394 19 1.17 16 2.02 18 2 Australia 1.1988 12 1.764 14 0.95 13 1.25 11 3 U.S. 0.6993 7 0.882 7 0.44 6 0.79 8 4 Russia 0.5994 6 0.63 5 0.36 5 0.41 4 5 Mexico 0.5994 6 0.756 6 0.36 5 0.63 6 6 Peru 0.4995 5 0.63 5 0.51 7 0.79 7 7 Chile 0.3996 4 0.504 4 0.36 5 0.50 5 8 South Africa 0.3996 4 0.378 3 0.23 3 0.00 - 9 China 0.2997 3 0.378 3 0.29 4 0.41 4 10 Brazil 0.2997 3 0.378 3 0.23 3 0.30 3 11 Argentina - - - - - - 0.30 3 12 Other countries 3.0969 31 3.906 31 2.42 33 3.28 31 Total 9.99 100 12.6 100 7.32 100 10.68 100 Source: Metals Economic Group, Canada

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TABLE IX-3B: MINERAL-WISE WORLD EXPLORATION EXPENDITURE (US $ BILLION) Sl.No. Mineral 2005 2006 2007 2008 2009 2010

1 Gold 2.30 (47%) 3.21 (45%) 4.10 (41%)4.914 (39%) 3.51 (48%) 5.45 (51%)

2 Base Metals 1.42 (29%) 2.28 (32%) 3.60 (36%) 5.04 (40%) 2.64 (36%) 3.52 (33%)

Cu 1.6 (22%)

Zn-Pb 0.36 (5%)

Ni 0.66 (9%)

3 Diamond 0.64 (13%) 0.86 (12%) 1.00 (10%) 1.008 (8%) 0.36 (5%) 0.32 (3%)

4 Platinum Group of Metals(PGM) 0.20 (4%) 0.21 (3%) 0.30 (3%) 0.378 (3%) 0.15 (2%) 0.21 (2%)

5 Other Minerals 0.34 (7%) 0.57 (8%) 1.00 (10%) 1.26 (10%) 0.66 (9%) 1.18 (11%)

Total 4.90 (100%) 7.13

(100%) 10.0

(100%) 12.6

(100%) 7.32 (100%) 10.68 (100%) Source : Metals Economic Group, Canada

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TABLE – IX- 4

No. of Reconnaissance Permits approved from 2000-2001 to 2010 – 2011

State 2000-01

2001-

02

2002-03

2003-04 2004-05 2005-06

2006-07

2007-08

2008-09

2009-10

2010 -11

Total

Andhra Pradesh 18 8 6 6 - 1 - 7 3 4 - 53

Arunachal Pradesh - - - - - - - 1 - - - 1

Chhattisgarh - - 16 7 1 - 1 6 1 4 2 38

Gujarat - - - - 4 - - - - - - 4

Jharkhand - - 1 - - 1 - 1 1 - - 4

Karnataka 15 13 8 5 1 2 - 4 3 1 5 57

Kerala - - - - - 1 - - - - - 1

Manipur - - - - - - - 1 - - - 1

Madhya Pradesh - - 8 5 7 - 3 19 4 27 9 82

Maharashtra - - - - - - - 10 - - - 10

Orissa - - 6 9 1 5 2 1 - 2 - 26

Rajasthan 5 14 2 13 3 3 - 8 7 15 2 72

Uttar Pradesh 2 - - - 8 - - 6 - 3 1 20

West Bengal ‐  ‐  ‐  1  ‐  ‐  ‐  2  ‐  ‐  ‐  3 

Total 40 35 47 46 25 13 6 66 19 56 19 372

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Table IX – 5

SCHEMEWISE ESTIMATED PLAN EXPENDITURE DURING THE XII PLAN PERIOD (2012 - 17) (Rs. In Lakh)

Schemes 2012-13 2013-14 2014-15 2015-16 2016-17 Total 1 Survey & Mapping (M-1) 12412.52 13572.07 14618.40 15916.76 16988.07 73507.822 Mineral Exploration (M-II) 5631.38 6183.04 6860.74 7635.20 8476.11 34786.473 Infrm. Dissm. (MIII+ Pub& Adv) 4058.03 4521.47 4988.72 5542.83 6224.54 25335.594 R & D (MIVA) 2121.24 2746.95 3565.04 4195.13 4702.43 17330.795 Spl. Investigation (MIVB + Antarc) 532.79 573.98 574.41 620.86 629.03 2931.076 HRD (MV) 837.04 908.19 944.23 1027.50 1084.38 4801.34

7 Modernisation & Replacmt. (STSS) 36300.00 43474.00 23848.64 20826.01 22006.42 146455.07

Total 61893.00 71979.70 55400.18 55764.29 60110.98 305148.15

Outsourcing compoent for M-1 128200.00

Grand Total 433348.15

Commodity wise distribution of the budget for Mission II of GSI

Commodity Ferrous group

Non Ferrous and strategic group

Precious group

Industrial and Fertilizer Minerals group

Coal and Lignite

Iron ore:52 Basemetal:112 Gold:98 Limestone:37 100 Manganese:24 Bauxite:6 PGE:150 Graphite: 13

Tin, Tungsten & Molybdenum:27

Diamond: 42 Baryte, Glass sand, Kyanite, Sillimanite and Gypsum:38

Number of item in the plan period Chromite:19

Rare Metal and REE:75 Fertilizer: 17 Total No. of item in the plan period

95 220 290 105 100

Amount Proposed 30 cr 64 cr 80 cr 30 cr 56 cr

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CHAPTER – X

IMPACT FEASIBILITY OF CONCLUSIONS AND RECOMMENDATIONS SUB GROUP – I ON MINERAL EXPLORATON AND DEVELOPMENT

(OTHER THAN COAL & LIGNITE)

10.1 Preamble

10.1.1 Sub-Group – I on Mineral Exploration and Development (other than coal & lignite) for the Twelfth Five Year Plan (2012-17) was constituted vide office order dated 30th March, 2011 by Ministry of Mines [MoM] under the Chairmanship of Additional Secretary(Mines) and Director(Technical) as the Member Secretary to deal with the matters with the relating to mineral exploration, technological gaps in exploration of deep seated deposits, private sector participation in exploration, Mining Tenement System, resource invantorisation and development of off-shore mining. The composition and Terms of Reference (ToR) of the Sub-Group–I are given in Annexure – I.

10.1.2 In order to address all issues prepare the Plan document as per the ToR, three Working Groups were constituted with lead responsibilities starting with 1) Shri A. Sundaramoorthy, DG, GSI, 2) Dr. S.K. Haldar Director(Technical), MECL and 3) Dr. S.K. Wadhawan, Director(Technical), MoM, who is also the Member Secretary of the Sub-Group – I. Accordingly Meetings of the constituent members were held at regular intervals and draft document finalized in the Report of Sub-Group – I after due deliberations and considering feed-back, comments received from stake-holders and concrete suggestions received from Secretary(Mines) from time to time.[Annexure II to VI]

10.1.3 Union Ministry of Mines is responsible for survey and exploration of all minerals, other than natural gases, petroleum and atomic minerals; for mining and metallurgy of non-ferrous metals like aluminium, copper, zinc, lead, gold, nickel, etc. and for administration of the Mines and Minerals (Development and Regulation) Act (MMDR ACT), 1957 in respect of all mines and minerals other than coal, natural gas and petroleum but including offshore minerals. In performing its functions, the Ministry is assisted by the Geological Survey of India and Indian Bureau of Mines. The State Governments are the owners of minerals occurring onshore.

10.1.4 In exercise of the powers vested by the Constitution of India, Parliament after declaring it to be in expedient in the public interest has enacted the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR ACT). The MMDR Act enables all the States to exercise their powers within a uniform national framework. However, since State Governments continue to be owners of onshore minerals in their respective jurisdiction, the royalty and other revenues are collected by the State Governments and credited to the consolidated fund of the State.

10.1.5 In case of offshore areas, the ownership of minerals vest exclusively in the Union Government as per Article 297 of the Constitution of India. In order to regulate

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the mining and development of minerals in the offshore areas, the Parliament has enacted the “Offshore Areas Minerals (Development and Regulation) Act, 2002” for this purpose. The Act empowers the Union Government to grant the minerals concessions for offshore areas and collect the royalty, which is created to the consolidated fund of India. As per a Cabinet decision, the concession management in case of offshore areas has been allocated to the Indian Bureau of Mines, a subordinate office of Ministry of Mines, which has been notified as the Administering Authority.

10.2 On review of the achievements of the ongoing 11th Five Year Plan the following issues and significant processes having significant bearing in mineral exploration and development have been identified:

10.2.1 Several crucial mid-course initiatives that were taken up by Ministry of Mines

during the Plan period are in the process of rigorous implementation, the fruitful results of which are yet to materialize in the ensuing Plan period.

10.2.2 For intensifying the mineral exploration as envisaged in the plan, restructuring, modernization and capacity building activities have been introduced in the Geological Survey of India, IBM, and MECL.

10.2.3 Similarly, policy initiatives were introduced in the draft MMDR Act, 1957 for streamlining of the allocation of mineral resources and for attracting investments in mineral sector.

10.2.4 There is a need for capacity building in the Central and State agencies with the mineral sectors in terms of manpower, technology and management.

10.3 RECOMMENDATIONS AND IMPACT FEASIBILITY

While listing the major recommendations as emerged during the deliberations on the matters pertaining to the ToR for the Sub-Group I on Mineral Exploration and Development that have been detailed in previous Chapters, impact feasibility has been brought out as per the following categories : (i) High Feasibility & High Impact [HFHI]

(ii) High Feasibility & Low Impact [HFLI]

(iii) Low Feasibility & High Impact [LFHI]

(iv) Low Feasibility & Low Impact [LFLI]

10.3.1 The major thrust areas in the XIIth Five Year Plan will be :

10.3.1.1 GSI to complete geophysical and geochemical mapping expeditiously with the

assistance of outsourcing and service contracts so as to develop potential areas for prospecting which can be competitively awarded for further detailed exploration and utilization of proved mineral resources. (HFHI)

10.3.1.2 The Geomorphological and Lineament Mapping (GMM) on 1:50,000 scale by end of 2012-13. (HFHI)

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10.3.1.3 Complete National Geochemical mapping (NGCM) of the Obvious Geological Potential (OGP) areas by end of 12th Plan and rest of country of 13th Plan, with outsourcing and service contracts. (HFHI)

10.3.1.4 Hyper Spectral Mapping (HSM) in OGP areas on 1:50,000 scale by end of 12th Plan. (HFHI)

10.3.1.5 National Aeromagnetic Surveys by the GSI in collaboration with other stake holders in a comprehensive and systematic manner for OGP by end of 12th Plan and rest of the country (including off-shore) by end of 13th Plan. (HFHI)

10.3.1.6 Conducting High –risk exploration for deep-seated mineral deposits through modern technology infusion. Private sector will be facilitated to carry out exploration in LAPL for basemetal, gold and PGE, whereas GSI and MECL will also be strengthened to carry out exploration for PGE, technology metals, etc. (HFHI)

10.3.1.7 Develop and roll out a country wide Mining Tenement Registry and link-up with State Land Records Database for integration with digitised cadastral maps. (LFHI)

10.3.1.8 Prepare and implement a project to enable 1:50,000 scale geological, geophysical, and geochemical maps to be served on internet in GIS platform in line with international practice. (HFHI)

10.3.1.9 Concession framework to be made more investor friendly through new legislations. (HFHI)

10.3.1.10 Provide for independent Regulation of concessions and appropriate Legislation on Transferability of the mineral concessions. (HFHI)

10.3.1.11 Special attention needed for exploration and search for strategic, scarce and deficit minerals to reduce imports. (HFHI)

10.3.1.12 Create a National Geophysical Data Repository and a National Drill Core Repository to assist entrepreneurs to take-up exploration. (HFHI)

10.3.1.13 State Directorates of Mining and Geology to be developed to create facilities for concession system, mine plan and closure, sustainable mining practices (SDF) and stakeholder protection and royalty system. (HFHI)

10.3.1.14 Repositioning of MECL in promotional role for deep seated and concealed mineral deposit exploration using HTREL (LAPL) under new MMDR Act. (HFHI)

10.3.1.15 Facilitate capacity development of State Mineral Development Corporations and promote joint ventures in exploration with MECL and central PSUs and private sector. (HFHI)

10.3.1.16 Adoption of Globally acceptable reporting systems such as UNFC, JORC etc. for assessing mineral reserves/resources. (HFHI)

10.3.1.17 Incentivize the private sector to create R&D institutions for process development, create laboratory facilities. (LFHI)

10.3.1.18 Develop beneficiation techniques for zero waste mining through R&D institutions. (HFHI)

10.3.1.19 GSI to complete purchase of Ocean Going Research Vessel (OGRV); Geo-technical Vessel (GTV) and Coastal Launch for offshore and coastal geoscience work. (HFHI)

10.3.1.20 Create and enhance capacity of GSI and States for offshore / Coastal geoscience including Coastal geomorphology and beach sand / Tidal deposit resources. (HFHI)

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Keeping in view the review of the 11th Plan and the Terms of Reference of the Sub Group 1, the thrust areas in the 12th Plan and the corresponding physical and budgetary targets are detailed in the Chapters three two to nine. The recommendations of the individual Chapters are given below. 10.3.2 FUTURE DEVELOPMENT AND CONSERVATION VIS-À-VIS THE NMI  10.3.2.1 Keeping in view the approach in National Mineral Policy 2008, a concept needs

to be build up leading to augmentation of reserves/resources base through improvement in mining methods, beneficiation, utilization of low grade ores and rejects and recovery of associated minerals to achieve the national goal of zero waste mining. Accordingly, due emphasis may be given on low volume high value minerals like gold, diamond, base metals, platinum group of minerals and rare earth elements. (HFHI)

10.3.2.2 In view of the lack of new discoveries of non-bulk surfacial deposits it has become necessary to have multi-disciplinary approach for locating concealed mineral deposits. MECL has to be repositioned to take up promotional exploration for concealed deposits. (HFHI)

10.3.2.3 In addition to this, emphasis may be given to mine small deposits having low grade with high tonnage adopting a concept of cluster mining. The beneficiation technique needs to be developed at par with the international standard state of the art techniques for extraction for high value and strategic minerals. (HFHI)

10.3.2.4 Zero waste mining has been recognized as the national goal in the NMP-2008. The minerals are the valuable resources, therefore their extraction has to be maximized by scientific methods of mining, beneficiation & economic utilization by adopting the existing technology and new technology wherever required. A co-ordinated effort in PPP mode between R & D institutions, the entrepreneurs, mining machinery manufactures and statutory bodies is need of the hour to achieve the zero waste mining. (HFHI)

10.3.2.5 In view of the upgradation of technologies for utilization of low grade ores for conservation and optimum utlisation of minerals, threshold values for many of the industrial minerals/ferrous minerals (apatite and rock phosphate, bauxite, baryte, chromite, dolomite, fluorite, graphite, iron ore, limestone, magnesite, manganese ore and wollastonite) were lowered during the XIth Plan period. Lowering of threshold values is a positive concept leading to augmentation of resource base. Lowering of threshold values will also increase the target areas where exploration needs to be taken up. (HFHI)

10.3.2.6 In the last few years demand for iron ore has increased and building up a new resource inventory through depth and extension probing in areas of established iron ore occurrences is needed. Most of the hematite iron ore of the country is on the basis of arbitrary cut off grade of 55% Fe. The necessity of reassessment of iron ore at lower threshold value from existing 55% Fe to 45% Fe is needed to bring new areas of hematite iron ore to augment resources of the country. Lowering of threshold value will increase the resource base of iron ore between 45% and 55% Fe which is currently considered as waste. This is remaining as unutilized and un-assessed comprising both fines and lumps. There is ample scope for utilization of the beneficiated fines. New ore

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beneficiation techniques have made the use of lower grade ore and there is availability of such type of ore, but quantity of such ore is unknown because of the low grade material was not estimated earlier. The new prospects and areas within existing mines require reassessment through optimization based on economic grade and scheduled for production based on market demand. (HFHI)

10.3.2.7 Many industries do not opt for low grade ore and concentrate in the creamy portion of the deposit unless GSI identifies new areas of iron ore with 45% Fe and above, no other agency will venture for assessment of such occurrences. Hence in the freehold areas, GSI through regional exploration programme will identify new areas of iron ore with + 45% Fe. The State Govt will also take up the job for speedy completion. After regional evaluation, wherever needed, MECL will carry out detailed exploration for conversion of resources to reserves. Exploration will be put on the fast track. In leasehold areas the job may rest with the lessee. IBM will monitor and take active role in the leasehold areas for proper inventory of iron ore. Government agencies can be entrusted with the job of detailed exploration keeping in view the conservation aspect. (HFHI)

10.3.2.8 To achieve the optimal utilization of iron ore in any deposit the threshold value to be lowered and grade wise inventory of ores have to be made. Scheduling of deposit is essential through optimization to prevent sub-optimal unscientific mining. Mineral sectoral value addition through latest techniques of beneficiation, calibration blending, sizing, concentration, pelletisation, purification and general sustenance is the need of the hour for sustainable development. (HFHI)

10.3.2.9 Other important mineral commodities (chromite, manganese ore, bauxite) for which threshold values have been lowered have to be explored by regional research (reconnaissance /prospecting). GSI and State Government departments will take up the job in free hold areas. Detailed Exploration as a follow up will be the responsibility of MECL in promising areas. (HFHI)

10.3.3 RECOMMENDATIONS AND SUGGESTED ROAD MAP FOR ASSESSMENT

AND STRATEGY FOR SPEEDY EXPLOITATON OF THE PROVEN AND VIABLE MINERAL DEPOSITS

10.3.3.1 To meet the anticipated GDP growth, a rapid development of the mining sector is the need of the hour and the approach will be speedy exploitation of the already proven and viable mineral deposits. Therefore, it is imperative to achieve the best use of available mineral resources through exhaustive mining for total exploitation of the resources and at the same time improving the beneficiation techniques for substantial utilization of low grade ores in order to reduce the wastage percentage and environmental degradation. (HFHI)

10.3.3.2 The strategy to accelerate the exploitation of mineral resources or to increase production of metals should include the followings: (HFHI)

To identify, assess and exploit discovered mineral deposits, particularly of deficit and scarce category.

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To exploit the resources of marginal grades and tonnage by introducing modern technology and adequate fund flow.

To speedily increase of the reserve base of iron ore through re-assessing the proven deposits with changed threshold value.

To increase domestic production of manganese, viable alternatives to be worked out for exploitation of small scale deposits.

To bring large investment for exploitation of copper, lead and zinc to maximize the extraction of mineral resources. This can be done through technological upgradation for exhaustive mining, bringing in advance beneficiation techniques to bring down the cut off grade of mining, and use of unutilized already generated waste at the mine/pit heads. This will ensure utilization of the entire run of mines and zero wastage mining as envisaged in the NMP, 2008.

To make efforts to establish industries based on mineral near to the proven deposit wherever feasible, for speedy exploitation

To intensify R & D activity for exploiting the marginal grade ores, rejects and recovery of associated minerals through advance scientific mining, ore dressing and beneficiation technologies

To facilitate cluster mining of small deposits, grant lease to the clusters as a single deposit for effective implementation of mining plan, closure and SDF.

To strengthen the information delivery system for providing instant information to prospective investors on viability of proven deposits with likely increase in production through technological upgradation in mining and beneficiation.

To ease tax laws wherever possible and by enabling the forest clearance process

State Governments to immediately develop the capability of State Minerals Development Corporations for analyzing the generated data after exploration / prospecting and offering suitable prospects for competitive award. This is since the State mining departments convert the resources into reserves by undertaking feasibility and economic viability studies of the discovered mineral deposits through joint ventures with MECL and Central PSUs and Private Sector.

To give incentive for using the modern equipment and machinery thereby improving the efficiency of mines.

To undertake mitigation measures by adopting proper environmental management in the operative mines and quarries and impact assessment programmes for sequential landuse.

Encourage State Governments to prepare Action Plans for their State Directorates so as to enable them to take-up large scale mapping promotional exploration through State Mineral Development and promote joint ventures with MECL and Central PSUs and Private Sector including development of Mining Plan, closure and SDF.

10.3.4 RECOMMENDATIONS FOR MINERAL EXPLORATION

10.3.4.1 GSI to complete geophysical and geochemical mapping expeditiously with the assistance of outsourcing and service contracts so as to develop potential

253

areas for prospecting which can be competitively awarded for further detailed exploration and utilization of proved mineral resources. (HFHI)

10.3.4.2 GSI to carry out 4200 sq. kms. Systematic Geological Mapping (1:50,000 scale) in NER and 80,000 sq. kms. Specialised Thematic Mapping (1: 25,000 scale) in the country. (HFHI)

10.3.4.3 The Geomorphological and Lineament Mapping (GMM) on 1:50,000 scale by GSI to be completed by the end of 2012-13. (HFHI)

10.3.4.4 GSI to complete National Geochemical mapping (NGCM) of the Obvious Geological Potential (OGP) areas by end of 12th Plan and rest of country of 13th Plan through outsourcing / service contracts if necessary. (HFHI)

10.3.4.5 Hyper Spectral Mapping (HSM) in OGP areas on 1:50,000 scale by end of 12th Plan in collaboration with NRSC, ISRO, [PC-NNRMS]. (HFHI)

10.3.4.6 National Aeromagnetic Mapping by the GSI in a comprehensive and systematic manner for OGP by end of 12th Plan and rest of the country (including off-shore) by end of 13th Plan through collaboration with stake holders and also through outsourcing / service contracts if necessary. (HFHI)

10.3.4.7 Conducting High –risk exploration for deep-seated mineral deposits through modern technology infusion. New Concession Instrument [LAPL/HTREL] to be developed for the purpose and MECL to do promotional exploration under LAPL. (HFHI)

10.3.4.8 Prepare and implement a project to enable 1:50,000 scale geological, geophysical, and geochemical maps to be served on internet in GIS platform in line with international practice under GSI’s Portal Phase III Project. (HFHI)

10.3.4.9 Special attention needed for exploration and search for strategic, scarce and deficit minerals to reduce imports. (HFHI)

10.3.4.10 Create a National Geophysical Data Repository and a National Drill Core Repository to assist entrepreneurs to take-up exploration. (HFHI)

Targets envisaged for work components of Mission-I – Geoscience Data Generation and for Mission-II – Mineral Resource Assessment of GSI are given below in a nutshell:

Work Component Total Target (sq.km.)

Region-wise Target (sq.km.)

Systematic Geological Mapping (1:50,000 scale)

4200

1. Northeastern Region 4200 Specialised Thematic Mapping (1:25,000 scale)

80,000

1. Central Region 16,500 2. Northern Region 11,000 3.Northeastern Region 8,000 4. Eastern Region 14,000 5. Western Region 13,500 6. Southern Region 17,000 Geochemical Mapping 2,83,500 1. Central Region 63,000

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2. Northern Region 3,500 3.Northeastern Region 5,600 4. Eastern Region 47,600 5. Western Region 44,800 6. Southern Region 1,19,000 Geophysical Mapping 2,23,250 1. Central Region 51,830 2. Northern Region 20,700 3.Northeastern Region 8,160 4. Eastern Region 49,680 5. Western Region 48,960 6. Southern Region 43,920 Multisensor Airborne Surveys

76,000 & 1,50,000 L.km

1. Central Region 5,720 2. Northern Region 3.Northeastern Region 4. Eastern Region 5. Western Region 66,999 & 30,000 6. Southern Region 15,900 & 40,000 88619 & 70,000 Heliborne Surveys 1. Central Region 2. Northern Region 400 & 800 3.Northeastern Region 43,500 & 84,000 4. Eastern Region 5. Western Region 6. Southern Region 20,600 Geomorphological Mapping 4400 toposheets

10.3.5 RECOMMENDATIONS AND SUGGESTED CHANGES REQUIRED IN THE

FUNCTIONING OF THE INSTITUTIONS IN VIEW OF THE NMP – 2008

10.3.5.1 GSI need to collaborate and train the DGMs for baseline data generation, so that it may concentrate its resources in the upcoming challenges of locating deep and concealed deposits and sophisticated and upgraded baseline data. It needs to also concentrate on geological, geophysical and drilling capacity upgradation. GSI need also to explore the possibility of expeditious baseline data generation with the assistance of outsourcing and service contracts if necessary. (HFHI)

10.3.5.2 In line with national geoscientific priorities and GSI’s Vision, a Geoscience Advisory Council [GAC] has been constituted [to be notified shortly] to advise Ministry of Mines on geoscientific policy matters in general and the role and direction of GSI in particular to meet emerging challenges in the field of geosciences. GAC will be headed by Hon’ble Minister of Mines and consist of representatives from Ministry of Earth Sciences, Ministry of Science and

255

Technology, Ministry of Environment and Forests, Department of Atomic Energy, Planning Commission, etc. [HFHI]

10.3.5.3 Similarly to foster geosciences partnership and encourage applications of geosciences for sustainable development amongst other objectives, Ministry of Mines has taken the lead to establish an Indian Geosciences Congress [IGC] as a registered body of professionals at GSI, DG, Camp Office, New Delhi. The IGC will help to enlarge scope for geoscientific intervention for sustainable development in different spheres of society in general and mining sector in particular where application of geosciences is required or possible and function as a non-profit body devoted to the cause of geosciences for interchange of geoscientific knowledge outside the official structures [HFHI].

10.3.5.4 HPC has envisaged that the GSI Training Institute [GSI-TI] at Hyderabad should be developed into a ‘Centre of Excellence’ for providing high quality cutting edge training/ knowledge delivery with state-of-the-art facilities. Thus GSI-TI has embarked upon elaborate programme of capacity building based on wide range of Training Needs Assessment to raise the technical ability of departmental candidates, officers of various State Govts., students and research scholars and faculty from University and geoscientists from private sector. Six Regional Training Institutes and ten Field Training Centres are being established at different locations in India for providing specific Regional Training Modules.[HFHI]

10.3.5.5 GSI needs exposure to best international geoscientific practices and to emerging trends in geoscience, including geoscientific policy formulation in a multi-disciplinary environment. Funding from World Bank during XII Plan is proposed to be around Rs.112.5 crores for Technical Assistance particularly for knowledge upgradation in use of modern and sophisticated integrated geoscientific for regional mineral surveys and developing the existing training infrastructure to evolve into a world class capacity building centre [GSI-Training Institute, Regional Training Institutes and Field Training Centres]. [HFHI]

10.3.5.6 IBM should evolve as a strong Mineral Intelligence Centre and policy thinker for addressing the varied issues of mineral security and create a mechanism for development of Models to identify the Demand and Supply of minerals keeping in mind both present and future needs. (HFHI)

10.3.5.7 DGMs need to give a greater thrust on exploration; co-ordination with GSI on baseline data generation through CGPB; and collaboration with Pvt. Ventures in prospecting and exploration. The resource base of the DGMs needs to be strengthened for taking up these activities on a more extensive scale. The upgradation in man power, equipment and skill is especially important with the requirement of reassessment of reserves with the reduction in the threshold value of 22 minerals. Capacity upgradation of the DGMs are also required for reducing the time taken for processing of mineral concession applications.

10.3.5.8 A percentage of the royalty/ cess collected by the States, as contained in the draft MMDR, needs to be dedicated for capacity development of the DGMs for an enhanced role in mineral exploration and mineral administration. (HFHI)

10.3.5.9 State Governments must be encouraged and facilitated to prepare Action Plans funded by their own resources for their State Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession

256

management including mining plan, closure and SDF; promotional R&D; and laboratory facilities. (HFHI)

10.3.5.10 Central agency like MECL need to continue with the detailed exploration of potential prospect through Government funding till such time the domestic private companies along with junior global companies are fully engaged with serious exploration ventures in Greenfield areas. (HFHI)

10.3.5.11 GSI and MECL should also give adequate emphasis for locating concealed & deep seated deposits through concept driven approach. This methodology on the one side will attract investors coming to the mining sector as well as create a shelf of reports available readily for investment in the small deposits. (HFHI)

10.3.5.12 The global trend also points towards an accelerated utilization of low grade ores through proper blending and beneficiation techniques. Keeping in view consumption trends of the finite mineral resources and also in view of mineral security utilization of low grade ores needs to be aggressively encouraged. IBM needs to take a lead in this regard. (HFHI)

10.3.5.13 In the exploration ventures, especially in the Greenfield, close interactions with the reputed educational institutes may be highly beneficial for knowledge build up and induction of modern laboratory determination techniques. The Government, through national and State agencies, should provide support to the industry by conducting regional search for favorable metallogenic domains and preliminary prospecting in the form of promotional grant. (HFHI)

10.3.5.14 Following the example of countries like Australia, Canada and USA who are highly ranked by Fraser, India needs to have a dedicated centre for R&D in Exploration. As the stress towards concealed and deep seated deposits will need to increase, GSI and MECL in collaboration with academic institutes like ISM and IITs need to develop a centre for R&D in Exploration. (HFHI)

10.3.6 RECOMMENDATIONS FOR ENHANCING EXPLORATION ACTIVITIES BY

PRIVATE SECTOR The following recommendations are made to attract investment in the mining

sector:

10.3.6.1 It is recommended that GSI must prepare and implement the project under its Portal Phase IIII (OCBIS) to enable serving of 1:50,000 scale geological, geophysical and geochemical maps on Internet in GIS platform, in line with international practice. (HFHI)

10.3.6.2 Implement project on Mining Tenement Registry and link up with State Land Records Database for digitized cadastral maps. IBM and 10 mineral rich States need to be enabled to upgrade their Hardware, Connectivity and Software for executing this project. (HFHI)

10.3.6.3 State Governments are needed to prepare Action Plans for their State Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession management including mining plan, closure and SDF; promotional R&D; and upgradation of laboratory facilities. (HFHI)

10.3.6.4 Capacity development of State Mineral Development Corpns. have to be facilitated and joint ventures in exploration with MECL and Central PSUs / private sector have to be promoted. (HFHI)

257

10.3.6.5 Reservation of areas for government agencies stopped completely, except in exigencies of national security. (HFHI)

10.3.6.6 Security of tenure should be guaranteed, and free transferability of concessions allowed without prior approval. (HFHI)

10.3.6.7 Concessions should be granted in a transparent manner in a fixed time frame. (HFHI)

10.3.6.8 Review and rationalization of taxes, levies, royalties, duties to make the industry globally competitive. (HFHI)

10.3.6.9 Indian Bureau of Mines (IBM) to be suitably modernized along scientific lines and strengthened to serve as single authority in all matters concerning mining (approvals, inspection and developmental) and SDF. (HFHI)

10.3.6.10 Suitable mechanism needs to be created for independent regulation of mineral concessions such as National and State Mineral Regulatory Authorities and Mining Tribunals as well as Special Courts need to be set up suitably funded out of cess as proposed in the new MMDR Act. (HFHI)

10.3.7 RECOMMENDATIONS IN GEOSCIENTIFIC STUDIES IN OFFSHORE AREAS

10.3.7.1 To carryout close grid seabed mapping (geological, geophysical and

geochemical) along with multibeam bathymetry, multi-channel seismic, magnetic, gravimetric, side scan, deep core sampling, dredge, heat probe etc. within EEZ (present as well as areas likely to be gained on delineation of outer limit of Legal Continental Shelf). (HFHI)

10.3.7.2 To carry out comprehensive topographic and sedimentation map under the proposed MoU with MoES in a time-bound manner. (HFHI)

10.3.7.3 Identify mineral rich zones along with the seabed mapping in the shallow water sector for placer minerals/ lime mud / phosphatic sediments etc and in deep water sector for Polymetallic nodules and hydrothermal deposits / gas hydrates / OTEC. (HFHI)

10.3.7.4 To continue mapping of seabed in near shore and offshore region, collection of parametric data on different themes, search for mineral and energy resources, environmental investigations in connection with coastal hazards like coastal and bank erosion. (HFHI)

10.3.7.5 In pursuance of NMP, 2008 the programmes with inter institute collaboration have to be strengthened further and the modality of sharing of offshore data. (HFHI)

10.3.7.6 To search for phosphate rich sediments, lime mud deposits in addition identification of potential areas for gas-hydrate accumulation. (HFHI)

10.3.7.7 Search for hydrothermal sulphide mineralization, ferromanganese and cobalt rich encrustation, polymetallic nodules in selected sectors of Indian Ocean. (HFHI)

10.3.7.8 GSI to closely monitor the process of acquisition of a new multidisciplinary research vessel which is fitted with state-of-the-art scientific equipment as replacement of R.V. Samudra Manthan and procurement of a new Geotechnical Vessel with drilling facility shallow waters and down-the-hole-tools for timely delivery. (HFHI)

10.3.7.9 To pursue acquisition of new coastal launch for survey in shallow waters and near coastal lagoons and estuaries in the initial stage. (HFHI)

258

10.3.7.10 To adhere to the Modernization Plan of GSI for procurement of various advanced equipment for the laboratories and research vessels. (HFHI)

10.3.7.11 Acquisition of another Ocean Going Vessel and second Geotechnical Vessel have been proposed during XII Plan for taking up work for procurement from XIII Plan period. (HFHI)

10.3.8 OVERALL EXPENDITURE FOR MINERAL EXPLORATION

10.3.8.1 The overall expenditure estimated for the XIIth Five Year Plan for mineral

exploration and related activities (other than coal and lignite alone totals to around Rs 6821crores.

10.3.8.2 The organization wise break-up is as follows:

Agency Estimates GSI (Promotional & Capital) Rs. 4596 crores IBM Rs. 50 crores MECL (Promotional & Capital) Rs. 175 crores State Govt. and other agencies Rs. 2000 crores Total Rs. 6821 crores

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10.3.8.3 The annual phasing of expenditure of Rs.6821 crores is given below:

Exploration Agency 2012-2013

2013-2014 2014-2015 2015-2016 2017-2017 Total

GSI v) Operational

Expenditure vi) Outsourcing

component

vii) Capital Items

viii) Construction Budget

269

--------

--------

--------

300

--------

--------

--------

332

--------

--------

--------

367

--------

--------

--------

401

--------

--------

--------

1669

1282

1382

263

Total 4596 IBM

ii) Computerised Online Register on Mining Tenement System

10

10

10

10

10

50

Total 50 MECL

iii) Promotional iv) Capital

22 10

23 10

25 10

27 10

28 10

125 50

Total 32 33 35 37 38 175 State Govt. and other agencies

500 500 500 500 500 2000

GRAND TOTAL 6821 10.4 Implementation Agenda and Impact Feasibility Analysis -

Implementation Agenda and Impact Feasibility Analysis of the recommendations pertaining to Sub Group – I Mineral Exploration and Development have been provided in Table X – 1. It also shows the implementing Agency, time period of implementation and funds requirement for XII Plan period [indicative] and impact feasibility assessment as explained at para 10.3 above.

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TABLE X – 1 : IMPLEMENTATION AGENDA AND IMPACT FEASIBILITY

SUB GROUP – 1 ON MINERAL EXPLORATION AND DEVELOPMENT

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment

1. 10.3.1.1 GSI to complete geophysical and geochemical mapping expeditiously, with the assistance of outsourcing and service contracts, if necessary so as to develop potential areas for prospecting which can be competitively awarded for further detailed exploration and utilization of proved mineral resources.

Survey & Mapping (Mission-I)

GSI, DGM with assistance of outsoursing and service contract

12th Plan for OGP area of the country.

760.0 (160 + 600)

HFHI

2. 10.3.1.2 The Geomorphological and Lineament Mapping (GMM) on 1:50,000 scale by end of 2012-13.

Survey & Mapping (Mission-I)

GSI & NRSC

2012-13 2.0 HFHI

3. 10.3.1.3 Complete National Geochemical mapping (NGCM) of the Obvious Geological Potential (OGP) areas by end of 12th Plan and rest of country of 13th Plan.

Survey & Mapping (Mission-I)

GSI, DGM with assistance of outsourcing and service contract

12th Plan for OGP area of the country

[600.0 - included at Sl.No.1]

HFHI

HF - HIGH FEASIBILITY LF - LOW FEASIBILITY HI - HIGH IMPACT LI - LOW IMPACT

261

S. No.

Recom. No.

Main Recommendations

Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

4. 10.3.1.4 Hyper Spectral Mapping (HSM) in OGP areas on 1:50,000 scale by end of 12th Plan.

Survey & Mapping (Mission-I)

GSI & NRSC

XII Plan 50.0 HFHI

5. 10.3.1.5 National Aeromagnetic Surveys by the GSI in a comprehensive and systematic manner for OGP by end of 12th Plan and rest of the country (including off-shore) by end of 13th Plan.

Survey & Mapping (Mission-I)

GSI & outsourcing

XII & XIII Plan

700.0 during XII plan and Rs.4000 cr.for entire project.

HFHI

6. 10.3.1.6 Conducting High –risk exploration for deep-seated and concealed mineral deposits through modern technology infusion. Private sector will be facilitated to carry out exploration in LAPL for basemetal, gold and PGE, whereas GSI and MECL will also be strengthened to carry out investigations/promotional exploration for PGE, technology metals, etc. with special attention needed for exploration and search for strategic, scarce and deficit minerals to reduce imports.

Mineral Exploration (Mission-II)

GSI, MECL & outsourcing State DGMs

XII & XIII Plan

+ 385.0 [260 GSI + 125.00 MECL] + State DGMs (for XII plan period only).

HFHI

7. 10.3.1.7 Develop and roll out a country wide Mining Tenement Registry and link-up with State Land Records Database for integration with digitized cadastral maps. IBM and 10 mineral rich States need to be enabled to upgrade their Hardware, Connectivity and Software for executing this project.

IBM & State DGMs

XII Plan onwards

50.0 LFHI

262

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

8. 10.3.1.8 Prepare and implement a project to enable 1:50,000

scale geological, geophysical, and geochemical maps to be served on internet in GIS platform in line with international practice.

Information Dissemination (Mission III)

GSI XII Plan 230.0 HFHI

9. 10.3.1.9 Concession framework to be made more investor friendly through new legislation.

IBM, MOM XII Plan onwards

Not Available [N.A.]

HFHI

10. 10.3.1.10 Provide for independent Regulation of concessions and appropriate Legislation on Transferability of the mineral concessions.

IBM, MOM XII Plan N.A. HFHI

11. 10.3.1.12 Create a National Geophysical Data Repository and a National Drill Core Repository to facilitate entrepreneurs to take-up exploration.

Survey & Mapping (Mission-I) and Mineral Exploration (Mission-II)

GSI XII Plan 35.0 (10.0 + 25.0)

HFHI

263

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

12. 10.3.1.13 State Directorates of Mining and Geology to be developed to create facilities for concession system, mine plan and closure, sustainable mining practices (SDF) and stakeholder protection and royalty system.

State DGMs & IBM

XII Plan 2000.0 [ to be sourced from proposed Mineral Cess]

HFHI

13. 10.3.1.14 Repositioning of MECL in promotional role for deep seated and concealed mineral deposit exploration using HTREL (LAPL) under new MMDR Act.

MECL & MOM

XII Plan Cross reference [Cf.] S.No.6

HFHI

14. 10.3.1.15 Facilitate capacity development of State Mineral Development Corporations and promote joint ventures in exploration with MECL and central PSUs and private sector.

State DGM, MECL

XII Plan Cf. S.No.12

HFHI

15. 10.3.1.16 Adoption of Globally acceptable reporting systems such as UNFC, JORC etc. for assessing mineral reserves/resources.

IBM & MECL

XII Plan Cf. & to include provision of S.No.32

HFHI

16. 10.3.1.17 Incentivize the private sector to create R&D institutions and labs for process development, both through venture capital route for high risk commercial R&D and business plan for mine level R&D solutions.

Pvt. Sec/ FIMIL

XII Plan onwards

N.A. Scheme of incentives (fiscal & non fiscal) to be worked out.

LFHI

264

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

17. 10.3.1.18 Develop beneficiation techniques for zero waste mining

through R&D institutions. Central

and State PSUs, IBM & Pvt. Sec.

XII Plan onwards

Cf. S.No. 16

HFHI

18. 10.3.1.19 GSI to purchase a Coastal Launch for offshore and coastal geoscience work.

Modernisation and Replacement (STSS)

GSI XII & XIII Plan

100.0 HFHI

19. 10.3.1.20 Create and enhance capacity of GSI and States for offshore / Coastal geoscience including Coastal geomorphology and beach sand / Tidal deposit resources.

Survey & Mapping (Mission-I)

GSI & State DGMs

XII Plan onwards

330.0 HFHI

20. 10.3.2.1 Keeping in view the approach in National Mineral Policy 2008, a concept needs to be build up leading to augmentation of reserves/resources base through improvement in mining methods, beneficiation, utilization of low grade ores and rejects and recovery of associated minerals to achieve the national goal of zero waste mining. Accordingly, due emphasis may be given on low volume high value minerals like gold, diamond, base metals, platinum group of minerals and rare earth elements.   

GSI, IBM, MECL

XII Plan Cf.S.No.6

HFHI

265

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

21. 10.3.2.2 In view of the lack of new discoveries of non-bulk

surfacial deposits it has become necessary to have

multi-disciplinary approach for locating concealed

mineral deposits. MECL has to be repositioned to take

up promotional exploration for concealed deposits.

MECL XII Plan Cf.S.No.6 and S.No. 13

HFHI

22. 10.3.2.3 Emphasis may be given to mine small deposits having

low grade with high tonnage adopting a concept of

cluster mining. The beneficiation technique needs to be

developed at par with the international standard state of

the art techniques for extraction for high value and

strategic minerals. Process R&D on business lines to

prepare flow sheets for clients on commercial basis -

key to ensure that low grade ores are explorable. IBM

should not do promotional R&D at mine level (which is

presently being done and at subsidized rates,

preventing private sector competition) but take up only

pre-competitive and regional R&D required for general

understanding of scope of the problem.

IBM & State DGMs

XII Plan Cf.S.No.17

HFHI

266

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

23. 10.3.2.7 Many industries do not opt for low grade ore extraction and concentrate in the creamy portion of the deposit. Unless GSI identifies new areas of iron ore with 45% Fe and above, no other agency will venture for assessment of such occurrences. Hence in the freehold areas, GSI through regional exploration programme will identify new areas of iron ore with + 45% Fe. The State Govt will also take up the job for speedy completion. After regional evaluation, wherever needed, MECL will carry out detailed exploration for conversion of resources to reserves. Exploration will be put on the fast track. In leasehold areas the job will rest with the lessee as per directions issued by State Govt. under Rule 27 (3) MCR. IBM will monitor and take active role in the leasehold areas for proper inventory of iron ore. Government agencies can be entrusted with the job of detailed exploration keeping in view the conservation aspect.

Mineral Exploration (Mission-II)

GSI, MECL & State DGMs

XII Plan onwards

Cf. S.No. 17

HFHI

24. 10.3.2.8 To achieve the optimal utilization of iron ore in any deposit the threshold grade to be lowered and grade wise inventory of ores have to be made. Scheduling of deposit is essential through optimization to prevent sub-optimal unscientific mining. Mineral sectoral value addition through latest techniques of beneficiation, calibration, blending, sizing, concentration, pelletisation, purification and general sustenance is the need of the hour for sustainable development.

IBM, State DGMs and Pvt. Sec.

XII Plan onwards

As indicated at Sr.No.6, 17and 23.

HFHI

267

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirem

ent (Crores]

Impact-

Feasibility

Assessment

25. 10.3.2.9 Other important mineral commodities (chromite,

manganese ore, bauxite) for which threshold values

have been lowered have to be explored by regional

research (reconnaissance /prospecting). GSI and

State Government departments will take up the job in

free hold areas. Detailed Exploration as a follow up will

be the responsibility of MECL in promising areas. IBM

to ensure that Lessees report these resources in lease

areas as part of Mining Scheme.

  

Mineral Exploration (Mission-II)

GSI, IBM, MECL, State DGMs

XII Plan onwards

+385.0 [260 GSI + 125.00 MECL + State DGMs] indeterminate as indicated at S.No.6

HFHI

26. 10.3.3.2 The strategy to accelerate the exploitation of mineral

resources or to increase production of metals should

include the following:

MECL, Central and State PSUs, IBM

XII plan onwards

+2175 [MECL 125 + 2000 States] indicated also at S.No.6 and 13.

HFHI

268

To identify, assess and exploit discovered mineral deposits, particularly of deficit and scarce category. To exploit the resources of marginal grades and tonnage by introducing modern technology and adequate fund flow. To speedily increase of the reserve base of iron ore through re-assessing the proven deposits with changed

threshold value. To increase domestic production of manganese, viable alternatives to be worked out for exploitation of small scale

deposits. To bring large investment for exploitation of copper, lead and zinc to maximize the extraction of mineral resources.

This can be done through technological upgradation for exhaustive mining, bringing in advance beneficiation techniques to bring down the cut off grade of mining, and use of unutilized already generated waste at the mine/pit heads. This will ensure utilization of the entire run of mines and zero wastage mining as envisaged in the NMP, 2008.

To make efforts to establish industries based on mineral near to the proven deposit wherever feasible, for speedy exploitation

To intensify R & D activity for exploiting the marginal grade ores, rejects and recovery of associated minerals through advance scientific mining, ore dressing and beneficiation technologies

To facilitate cluster mining of small deposits, grant lease to the clusters as a single deposit for effective implementation of mining plan, closure and SDF.

To strengthen the information delivery system for providing instant information to prospective investors on viability of proven deposits with likely increase in production through technological upgradation in mining and beneficiation.

To ease tax laws wherever possible and by enabling the forest clearance process State Governments to immediately develop the capability of State Minerals Development Corporations for analyzing

the generated data after exploration / prospecting and offering suitable prospects for competitive award. This is since the State mining departments convert the resources into reserves by undertaking feasibility and economic viability studies of the discovered mineral deposits through joint ventures with MECL and Central PSUs and Private Sector.

To give incentive for using the equipment and machinery thereby improving the efficiency of mines To undertake mitigation measures by adopting proper environmental management in the operative mines and

quarries and impact assessment programmes. Encourage State Governments to prepare Action Plans for their State Directorates so as to enable them to take-up

large scale mapping promotional exploration through State Mineral Development and promote joint ventures with MECL and Central PSUs and Private Sector including development of Mining Plan, closure and SDF

269

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment

27. 10.3.5.1 GSI needs to collaborate and train the DGMs for baseline data generation, so that it may concentrate its resources for the upcoming challenges of locating deep and concealed deposits and sophisticated and upgraded baseline data. It needs to also concentrate on geological, geophysical and drilling capacity upgradation. GSI need also to explore the possibility of expeditious baseline data generation with the assistance of outsourcing and service contracts if necessary.

HRD (Mission V)

GSI, State DGMs

XII Plan Cf. S.No.1 and 28

HFHI

28. 10.3.5.4 HPC has envisaged that the GSI Training Institute [GSI-TI] at Hyderabad should be developed into a ‘Centre of Excellence’ for providing high quality cutting edge training/ knowledge delivery with state-of-the-art facilities. Thus GSI-TI has embarked upon elaborate programme of capacity building based on wide range of Training Needs Assessment to raise the technical ability of departmental candidates, officers of various State Govts., students and research scholars and faculty from University and geoscientists from private sector. Six Regional Training Institutes and ten Field Training Centres (FTC) are being established at different locations in India for providing specific Regional Training Modules, and infrastructure needs to be created /upgraded for the purpose. Wherever possible, FTC will be upgraded in PPP mode.

HRD (Mission V)

GSI XII Plan 32.0 (also see S.No.31)

HFHI

270

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment

29. 10.3.5.2 In line with national geoscientific priorities and GSI’s Vision, a Geoscience Advisory Council [GAC] has been constituted to advise Ministry of Mines on geoscientific policy matters in general and the role and direction of GSI in particular to meet emerging challenges in the field of geosciences. GAC will be headed by Hon’ble Minister of Mines and consist of representatives from Ministry of Earth Sciences, Ministry of Science and Technology, Ministry of Environment and Forests, Department of Atomic Energy, Planning Commission, etc. GAC will set the future geo-science policy direction for the sector and will conduct studies etc through consultancies.

HRD (Mission V)

GSI XII Plan 5.0 [approx.]

HFHI

30. 10.3.5.3 To foster geosciences partnership and encourage applications of geosciences for sustainable development amongst other objectives, the Ministry of Mines has taken the lead to establish an Indian Geosciences Congress [IGC] as a registered body of professionals at GSI (DGCO), New Delhi. The IGC will help to enlarge scope for geoscientific intervention for sustainable development in different spheres of society in general and mining sector in particular where application of geosciences is required or possible and function as a non-profit body devoted to the cause of geosciences for interchange of geoscientific knowledge outside the official structures.

HRD (Mission V) (a new head – Grant-in-Aid to be opened)

GSI XII Plan 14.0 HFHI

271

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment 31. 10.3.5.5 GSI needs exposure to best international geoscientific

practices and to emerging trends in geoscience, including geoscientific policy formulation in a multi-disciplinary environment. Funding under World Bank. Technical Assistance # during XII Plan is proposed to be around Rs.112.5 crores; particularly for knowledge upgradation for GSI and State DGM personnel in the areas covered under Missions 1 to 4. # TA (from World Bank) is mainly to comprise following:- a. Capacity Building through GSITI etc. 70.50 crores b. Modernisation of GSI TI Centres 42.00 crores ----------------- Total : 112.50 crores. ------------------- (~ 25 Million US Dollars @ Rs. 45 Rs. per dollar)

Proposed under World Bank TA

GSI XII Plan 112.50 # [TA from World Bank] (also see S.No.28)

HFHI

272

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment

32. 5.6.2

GSI needs international expertise for technology

upgradation and technology assimilation. To achieve

that goal, GSI has proposed a centralized facility that

would be developed as a centre of Excellence the

CHQ, Kolkata and to be named as Integrated Research

& Development Centre for Geosciences [IRDCG](refer

to the Report of the Committee on Modernisation in

GSI – available on GSI’s Portal]. IRDCG will

incorporate all existing high-quality instrumentation

available in the CHQ and upgrade them, besides

procuring some more and build up a resource sharing

network. It would spearhead high-quality research in

diverse fields of geology utilizing state of the art

instrumentation and through formation of several

experts’ research groups. IRDCG would be

supplemented by two satellite centres at Faridabad and

Bangalore with facilities that can be developed

independently.

R&D Mission IV

GSI XII Plan 172.0 HFHI

273

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment 33. 10.3.5.6 IBM should evolve as a robust Mineral Intelligence

Centre and policy thinker for addressing the varied issues of mineral security and create a mechanism for development of Models to identify the Demand and Supply of minerals keeping in mind both present and future needs.

IBM XII Plan NA HFHI

34. 10.3.5.7 DGMs need to give a greater thrust on exploration; co-ordination with GSI on baseline data generation through CGPB; and collaboration with Pvt. Ventures in prospecting and exploration. The resource base of the DGMs needs to be strengthened for taking up these activities on a more extensive scale. The upgradation in man power, equipment and skill is especially important with the requirement of reassessment of reserves with the reduction in the threshold grade of 22 minerals. Capacity upgradation of the DGMs are also required for reducing the time taken for processing of mineral concession applications.

HRD (Mission V)

GSI, State DGMs

XII Plan onwards

Cf. S.No.24 and 27

HFHI

35. 10.3.5.8 A percentage of the royalty/ cess collected by the States, as contained in the draft MMDR Act, needs to be dedicated for capacity development of the DGMs for an enhanced role in mineral exploration and mineral administration.

State DGMs

XII Plan onwards

Cf. S.No.12

HFHI

36. 10.3.5.9 State Governments must be encouraged and facilitated to prepare Action Plans funded by their own resources for their State Directorates, so as to enable them to take up large-scale mapping, promotional exploration, concession management including mining plan, closure and SDF; promotional R&D; and laboratory facilities.

State DGMs, IBM

XII Plan onwards

Cf.S.No.12

HFHI

274

S. No.

Recom. No.

Main Recommendations Mission/ Scheme

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment 37. 10.3.6.5 Reservation of areas for government agencies to be

stopped completely, except in exigencies of conservation of minerals in national interest.

New MMDR Act

MoM, State DGMs

XII Plan N.A. HFHI

38. 10.3.6.6 Security of tenure should be guaranteed, and free transferability of concessions allowed (other than leases).

New MMDR Act

MoM, State DGMs, IBM

XII Plan N.A. HFHI

39. 10.3.6.7 Concessions should be granted in a transparent manner in fixed time frame.

New MMDR Act

MOM, IBM XII Plan N.A. HFHI

40. 10.3.6.8 Review and rationalization of taxes, levies, royalties, duties to make the industry globally competitive.

MoM, IBM XII Plan N.A. HFHI

41. 10.3.6.9 Indian Bureau of Mines (IBM) to be suitably modernized along scientific lines and strengthened to serve as single authority in all matters concerning mining (approvals, inspection and developmental) and SDF.

MoM, IBM XII Plan N.A. HFHI

275

S. No.

Recom. No.

Main Recommendations Mission/ Scheme

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment

42. 10.3.6.10 Suitable mechanism needs to be created for independent regulation of mineral concessions such as National and State Mineral Regulatory Authorities and Mining Tribunals Special Courts need to be set up suitably funded out of cess to enforce regulatory provision.

New MMDR Act

MoM, IBM, State DGMs

XII Plan N.A. HFHI

43. 10.3.7.1 10.3.7.2 10.3.7.3 10.3.7.4

To carryout close grid seabed mapping (geological, geophysical and geochemical) along with multibeam bathymetry, multi-channel seismic, magnetic, gravimetric, side scan, deep core sampling, dredge, heat probe etc. within EEZ (present as well as areas likely to be gained on delineation of outer limit of Legal Continental Shelf).

To carry out comprehensive topographic and sedimentation map under the proposed MoU with MoES in a time-bound manner.

Identify mineral rich zones along with the seabed mapping in the shallow water sector for placer minerals/ lime mud / phosphatic sediments etc and in deep water sector for Polymetallic nodules and hydrothermal deposits / gas hydrates / OTEC.

To continue mapping of seabed in near shore and offshore region, collection of parametric data on different themes, search for mineral and energy resources, environmental investigations in connection with coastal hazards like coastal and bank erosion.

Survey & Mapping (Mission-I)

GSI XII Plan Cf.S.No.18 & 19.

HFHI

276

10.3.7.5 10.3.7.6 10.3.7.7 10.3.7.8 10.3.7.9 10.3.7.10

In pursuance of NMP, 2008 the programmes with inter institute collaboration have to be strengthened further and the modality of sharing of offshore data.

To search for phosphate rich sediments, lime mud deposits in addition identification of potential areas for gas-hydrate accumulation.

Search for hydrothermal sulphide mineralization, ferromanganese and cobalt rich encrustation, polymetallic nodules in selected sectors of Indian Ocean.

GSI to closely monitor the process of acquisition (already underway) of a new multidisciplinary research vessel which is fitted with state-of-the-art scientific equipment as replacement of R.V. Samudra Manthan and procurement of a new Geotechnical Vessel with drilling facility shallow waters and down-the-hole-tools for timely delivery.

To pursue procurement of a new coastal launch for survey in shallow waters and near coastal lagoons, estuaries is in the initial stage.

To adhere to the Modernization Plan of GSI for procurement of various advanced equipment for the laboratories and research vessels.

277

S. No.

Recom. No.

Main Recommendations Mission/ Scheme of

GSI

Implementing

Agency

Time period [years]

Funds requirement

(Crores]

Impact-Feasibili

ty Assess

ment 44. 10.3.7.11 GSI to prepare plans for acquisition of another

geotechnical vessel and a second multidisciplinary ocean going research vessel which is fitted with state-of-the-art scientific equipment for deep sea survey and exploration.

Modernisation and Replacement (STSS)

GSI To be completed in XIII Plan

Cf.S.No.18, 19 (no funds in XII plan)

HFHI

45. 10.3.8.1 The overall expenditure estimated for the XIIth Five Year Plan for mineral exploration and related activities (other than coal and lignite.

- - - -

Agency Estimates GSI (Promotional & Capital) Rs. 4596 crores IBM Rs. 50 crores MECL (Promotional & Capital) Rs. 175 crores State Govt. and other agencies Rs. 2000 crores [States to

get sourcing from proposed Mineral Cess]

278

Details of Financial Outlay under Survey and Mineral Exploration Sector

(Rs. in crore) I REGIONAL EXPLORATION ACTIVITY a) National Hyperspectral Mapping 50

b) National Geochemical Mapping(GSI 2,83,500sq km +Outsourcing of 3,00,000sq km) 600

c) National Geophysical Mapping (GSI 2,23,250sq km+outsourcing of 5,00,000sq km) 160

d) National Geomorphological & Lineament Mapping 2 e) National Aeromagnetic Survey 700 f) Multisensor Geophysical Survey (Heliborne & TOASS) 45 g) Marine Coastal Survey 330 h) National Geophysical Data Repository 10 i) Regional Mapping 10 Total 1907II DETAILED MINERAL EXPLORATION (a) Energy & Non Energy 260 (b) National Drill Core Data Repository 25 Total 285III DATA DISSEMINATION IN VIRTUAL SECTOR

Procurement and Maintenance of Soft and Hardware & Publication, Info. Dissem. & Printing 230

IV RESEARCH AND DEVELOPMENT

R & D, Antarctica Expl., Spl. Investigation, Centre of Excellence on Fundamental Research and Grant -in aid 172

V TRAINING AND CAPACITY BUILDING Training and Capacity Building 32VI MODERNISATION ACTIVITY (a) High Cost Items - Committed (Repl. Vessel + Geotechnical Vessel) 612 (b) High Cost Items - Proposed (Coastal Launche) 100

(d) Procurement of Equipment other than High Cost Items (Lab & Drilling Items) 670

Total 1382VII

Overhead Expenditure (Salary, DTE, OE, Prof Service, Motor Vehicle & Other Expenditure etc. ) 325

TOTAL 4333

Construction Budget of GSI 263

GRAND TOTAL 4596

279

The phasing of Operational Expenditure during the XII plan period excluding the expenditure under capital items i,e High and low cost modernization equipments worth Rs 1382 crores, construction budget of Rs 263 crores and outsourcing component for M-1 of Rs. 1282 crores is shown below [Rs 4596 crores – (Rs 1382 crores + Rs 263 crores + Rs. 1282)=Rs 1669 crores]: (Rs in crore)

2012-13 2013-14 2014-15 2015-16 2016-17 Total 269 300 332 367 401 1669

SCHEMEWISE ESTIMATED PLAN EXPENDITURE DURING THE XII PLAN PERIOD (2012 - 17) (Rs. In Lakh)

Schemes 2012-13 2013-14 2014-15 2015-16 2016-17 Total Survey & Mapping (M-1) 12412.52 13572.07 14618.40 15916.76 16988.07 73507.82Mineral Exploration (M-II) 5631.38 6183.04 6860.74 7635.20 8476.11 34786.47Infrm. Dissm. (MIII+ Pub& Adv) 4058.03 4521.47 4988.72 5542.83 6224.54 25335.59R & D (MIVA) 2121.24 2746.95 3565.04 4195.13 4702.43 17330.79Spl. Investigation (MIVB + Antarc) 532.79 573.98 574.41 620.86 629.03 2931.07HRD (MV) 837.04 908.19 944.23 1027.50 1084.38 4801.34

Modernisation & Replacmt. (STSS) 36300.00 43474.00 23848.64 20826.01 22006.42 146455.07

Total 61893.00 71979.70 55400.18 55764.29 60110.98 305148.15

Outsourcing component for M-1 128200.00

Grand Total 433348.15

280

ANNEXURES

281

ANNEXURE – I

282

283

284

285

286

287

288

ANNEXURE – II

289

290

291

ANNEXURE – III

IMMEDIATE FAX/ Speed Post

Government of India Ministry of Mines

F.No.11[17]2011-M.I New Delhi, dt.31.3.2011

MEETING NOTICE Sub : Setting up of Sub-Group I on Mineral Exploration and Development [other

than] coal and lignite] for Twelfth Five Year Plan [2012-17] –reg. The undersigned is directed to refer to this Ministry’s ORDER No.10(59)/2010/M 5 dated 30th March 2011 on the above subject whereby the Composition and Terms of Reference of the Sub-Group-I on Mineral Exploration and Development [other than coal and lignite] for Twelfth Five Year Plan [2012-17] were circulated (copy enclosed for ready reference). Shri S.K. Srivastava, Additional Secretary, Ministry of Mines and Chairman, Sub-Group-I on Mineral Exploration and Development [other than coal and lignite] for Twelfth Five year Plan [2012-17] will hold the first meeting of this Sub-Group-I on 11th April 2011 at 11.00 AM in Aluminium Room, 1st Floor, D-Wing, Ministry of Mines, Shastri Bhawan, New Delhi and discuss on policy measures for ensuring modernisation, automation in mining sector, development of R&D in mineral & geoscientific sectors and strengthening of regulatory agencies, State DGMs, IBM, etc., and review related issues of availability of human resources, reporting standards, etc. All Members of Sub-Group-I are requested to attend the above-said meeting.

[Dr. S. K. Wadhawan] Director [Technical]

To,

1. Director General, Geological Survey of India, 27, J.L. Nehru Road, Kolkata – 700 016. Fax-033-22861676.

2. Controller General, Indian Bureau of Mines, 2nd Floor, Indira Bhawan, Civil Lines, NAGPUR- 440 102, Fax 0712 2565073,

3. Chairman-cum-Managing Director, Mineral Exploration Corporation Limited, Dr. Babasaheb Ambedkar Bhavan, High Land Drive Road, Seminary Hills, Nagpur – 440 006. Fax- 0712 2510107.

Contd/---- 2

292

:: 2 ::

4. Adviser, Ministry of Earth Sciences, Mahasagar Bhavan, CGO Complex,

Lodi Road, New Delhi‐110003. Fax- 011 24362644.

5. Secretary, Ministry of Mining & Geology, 29-A, Khanij Bhawan, Arera Hills,

Bhopal – 462002.Fax-0755-2551795

6. Secretary, Department of Mining & Geology, Govt. of Rajasthan, Shastri Circle, Udaipur. Fax – 0294 252349.

7. Director, Atomic Minerals Division, Department of Atomic Energy, AMD Complex, Begumpet, Hyderabad-500 016.

8. Secretary General, Federation of Indian Mineral Industry, FIMI House, B-311,Okhla Industrial Area, Phase-I, New Delhi – 110 020. Fax – 011 26814593 26814594.

9. Anglo-American Services Pvt. Limited, The Grand, 2nd Floor, Nelson Mandela Road, Vasant Kunj, New Delhi – 110 070. Fax 011 41015000.

10. Rio Tinto [India] Pvt. Limited, 3rd Floor, The Capital Court, Olof Palm Marg, Munirka, New Delhi – 110 067. Fax – 011 26164878.

11. DeBeers India Pvt. Limited, Advanced Business Centre, 83 Maker Chambers VI, Nariman Point, Mumbai - 400 021. Fax: 022 22832823.

293

ANNEXURE – IV

Minutes of meeting of Sub-Group-I on ‘Mineral Exploration and Development [other than coal and lignite]’ for Twelfth Five Year Plan [2012-17] held under

the Chairmanship of Additional Secretary, Ministry of Mines, New Delhi at 11: 00 AM on 11th April, 2011 at Ministry of Mines.

A meeting of Sub-Group-I on Mineral Exploration and Development [other than

coal and lignite] for Twelfth Five Year Plan [2012-17] was held under the Chairmanship of AS (Mines) in Ministry of Mines [MoM], New Delhi at 11: 00 AM on 11th April, 2011. The List of participants and their contact nos. is at Annexure-I 1.0 AS (M) welcomed the participants which was followed by brief introduction by the

participants.

2.0 While making his opening remarks, AS(M) stated that preparation of a detailed document for the XII Plan (2012-17) is an important task and the work assigned to Sub-Group I on Mineral Exploration & Development should proceed as per Terms of Reference as circulated amongst all participants (Annexure-II).

3.0 AS(M) also observed that a lot of material has already been prepared during the last two-three years and is available with MoM covering various aspects of policy issues and functioning of MoM and its attached and subordinate Departments. These include: National Mineral Policy (2008), High Powered Committee [HPC] report on restructuring of GSI, Reports on restructuring and repositioning of IBM and MECL, IBMs Mineral Year Book and Reports, MMDR Act, MoM’s Report on Modernisation in GSI, CGPB Meetings’ recommendations, Detailed Information Dossiers prepared by GSI, and documents/ position papers published by C-Tempo and FIMI, etc. He asked participants to draw from these and add new data relevant to the themes of the Sub-Group-I in a structured and time-bound manner.

4.0 AS(M) suggested that in order to address all issues and prepare the Plan Document as per the ToR, three Working Groups be constituted with lead responsibilities starting with 1) DG, GSI (Shri A. Sundramoorthy), 2) MECL and IBM (Dr. S.K. Haldar) and 3) Director (Technical), MoM (Dr. S.K. Wadhawan), who is also the Member Secretary of the Sub Group-I.

5.0 AS(M) invited views and all representatives from different Govt. and non-Govt. organizations who were requested to provide inputs as required. Comments from the participants were invited and detailed discussions were held on modalities of data compilation and preparing the XII Plan Documents Following decisions and actions plans emerged during the Meeting:

294

1. GSI lead Working Group – 1 will compile sub-report covering ToR (iii), (iv),

(vii), (ix).

2. MECL & IBM lead Working Group – 2 will compile sub-report covering ToR (i), (ii), (viii), (ix).

3. Director (Tech), MoM lead Working Group – 3 will compile sub-report covering ToR (v), (vi).

4.1. Working Group-I will comprise the following:- 1. Shri A. Sundramoorthy, DG, GSI, Kolkata 2. Dr. K. Rajaram, Dy. DG, GSI, Nagpur 3. Shri M.S. Jairam, Director, CHQ, GSI 4. Shri. M. Sengupta, IBM, Nagpur 5. SHri S.K. Lagu, MECL, Nagpur 6. Shri Subhash Bahadur, FIMI, New Delhi 7. Representatives of Rajasthan & M.P. 4.2. Working Group-2 will comprise the following: 1. Dr. S.K. Haldar, Director (Tech), MECL, Nagpur 2. Shri V.K.S. Visen, MECL, Nagpur 3. Shri Mesh Ram, IBM, Nagpur 4. Shri M.S. Jairam, GSI, CHQ, Kolkata 5. Shri S.K. Biswas (Retd. Director, GSI) Consultant, MECL 6. Dr. Anjani Kumar, MECL, Nagpur 4.3. Working Group-3 will comprise the following: 1. Dr. S.K. Wadhawan, Director (Tech), MoM 2. Shri G.S. Jaggi, Director OSD-HPC, MoM 3. Shri A.K. Bhandari, Director C-Tempo, New Delhi 4. Shri S.K. Sharma & S. Bahadur, FIMI 5. Shri Arun, Kalra, De Beers India Pvt. Ltd., New Delhi

6. Dr. Nik Senapati, MD Rio Tinto, New Delhi/Shri Tony Harding, Rio Tinto, Bangalore

4.4. Dr. S.K. Haldar, Convener of Working Group –II had requested for the

inclusion of Sh. S.K. Biswas, (Retd. Director, GSI) Consultant, MECL, considering his past association and experience in preparation of such documents. It was decided that a formal proposal to this effect be submitted by Dr. Haldar for approval of Secretary [Mines].

5.0 Member Secretary to create a dedicated e-mail box/address for free flow of

information and data accessibility .

295

6.0 Working Group Conveners are required to coordinate and announce dates for holding meetings of the respective members wherein other members of the Sub-Group I are also welcome to attend and participate in the deliberations and contribute, whenever possible.

7.0 Next meeting of the Sub-Group I to review status and progress of activities

will be held under Chairmanship of AS(M) on 25th April 2011 at 1200 hrs. at MoM, New Delhi.

8.0 Considering huge amount and diverse nature of data to be handled and

compiled, it was decided to request Sec(M) to kindly consider extension of the last date for submission of draft document to 30th May 2011.

9.0 Detailed discussions were held on broad scheme of Chapters and its contents to

be prepared. It was suggested to prepare the following Chapters for the draft document on XII Five Year Plan:-

Chapter I : Introduction Chapter II : Review of Performance during XI Plan Chapter III : Review of National Mineral Inventory Chapter IV : Strategy for accelerated exploitation of proven

mineral deposits Chapter V : Thrust Areas and Exploration Strategy Chapter VI : Change in Role of State Institutes in view of

National Mineral Policy Chapter VII : Geoscientific studies in off-shore areas Chapter VIII : Investment required for promotional Mineral

Explorations.

The details of sub-chapters are at Annexure III. The three Working Groups will compile data and prepare the aforesaid Chapters accordingly.

These will be firmed up in the meeting of 25th April 2011. 10.0 MoES will contribute on TOR (viii) and other relevant Geoscientific activities

related to Chapters VII and VIII (TOR viii & ix), etc. The meeting ended with a vote of thanks to the Chair.

296

Annexure I of Annexure IV List of Participants

S. No. Name & Designation

Department/ Organization Telephone & Fax Nos.

1 Shri S.K. Srivastava Additional Secretary

Ministry of Mines – (In Chair)

as.dom@nic.in, 011-23387158

2 R.K. Sharma Secretary General

FIMI

fimi@fedmin.com, 011-26814591

3 Dr. S.K. Haldar Director(Technical) MECL

MECL, Nagpur, dt@mecl.gov.in, 09423682361

4 V.K.S. VISEN HoD (Exploration)

MECL, Nagpur cmrcl_ngp@sancharnet.in, 0712 – 2511829 09423685584

5 Dr. S.K. Wadhawan Director (Technical)

Ministry of Mines Email – dirtech.mom@nic.in, 011-23385329, 09818188277

6 M.S. Jairam Director

Geological Survey of India m.jairam@gsi.gov.in, 09831915154

7 A.K. Bhandari Director

C-TEMPO Email – a.k.bhandari@nic.in, 011 – 24363199

8 Nik Senapati M.D. Rio Tinto India

Rio Tinto India Nik.senapati@riotinto.com, 011-42330315, 9810494990

9 Tony Harding G.M. Exploration

Rio Tinto Exploration, Bangalore tony.harding@riotinto.com, 080-41989831, 09591914005

10 A.B. Chowdhary Director

Ministry of Earth Sciences Email – ab.chowdhary@nic.in

11 A. Sundaramoorthy DG, GSI

Geological Survey of India dg@gsi.gov.in, 033-22861656

12 G.S. Jaggi Director

OSD, IC – HPC, Ministry of Mines, hpcgsi@gmail.com, 09868889923

297

13 Arun Kalra Head – Business Development

De Beers India Pvt. Ltd. Arun.kalra@debeersgroup.com, 09810737900

14 Subhash Bahadur FIMI

FIMI subhashbahadur@yahoo.co.in, 01244144015, 09811197210

298

Annexure II of Annexure IV

Terms of Reference of Sub-Group-I on ‘Mineral Exploration and Development [other than coal and lignite]’

for Twelfth Five Year Plan [2012-17] (i) To assess the reserves and resources of all ores/minerals (excluding fuel minerals) as

per United Nations Framework Classification (UNFC) system.

(ii) To review the National Mineral Inventory for identifying gap areas and to suggest corrective measures to improve the quality and standard of information and to assess the balance life of mineral inventory based on consumption pattern of various ores, minerals and evolving a strategy for development and conservation perspective of 10 to15 years.

(iii) To assess possibilities of zonation or prioritization of mineral resource bearing areas as

'mineral belts' for speedy exploitation of proven and economically viable mineral deposits.

(iv) To identify. technological gaps in mineral exploration(with special emphasis on deep

seated deposit) and suggest measures for filling up the gaps and to draw up an exploration strategy for regional and detailed exploration of ores/minerals keeping in view the national priorities demand, (domestic and global), and availability of resources, particularly minerals of strategic importance.

(v) To suggest strategy for facilitating private sector exploration through provision of easy

access to pre-competitive geological and exploration data, including GIS based information and Mining Tenement information.

(vi) To review the present role of various State and Central Institutions like GSI, IBM and

State Directorates of Geology & Mining etc. and suggest enhancements in their role so that these institutions become more effective in facilitating growth of the mining industry in the country through geo scientific partnership.

(vii) To suggest promotional role of both the Central and State Government agencies in the

context of National Mineral Policy, 2008 for mineral exploration particularly for those minerals in which the resource base is poor and for the development of which private sector may be reluctant to invest.

(viii) To suggest measures to encourage and facilitate offshore mining in the national interest

and geo scientific activities.

(ix) To assess and indicate investment that would be required to be made by the Central and State Governments for promotional exploration in the XII Plan, if deemed necessary to be carried out as a matter of national policy.

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ANNEXURE – III of Annexure IV

REPORT OF THE WORKING GROUP ON MINERAL EXPLORATION AND

DEVELOPMENT(OTHER THAN COAL & LIGNITE) FOR THE TWELFTH FIVE YEAR PLAN.

(SUB GROUP – 1 ON SURVEY AND MINERAL EXPLORATION)

Preface Executive Summary, Conclusions & Recommendations Chapter – I INTRODUCTION Preamble. Geoscientific data base for mineral prognostication. Exploration Agencies. Review of Plan wise priorities for exploration. Present status of exploration. Chapter – II REVIEW OF PERFORMANCE DURING XIth PLAN 1.4.0 Preamble. 1.5.0 Thrust Areas during XIth Plan Period. 1.6.0 Significant achievements in mineral exploration during XIth Plan period. 1.7.0 Regional surveys for mineral prognostication. 1.8.0 Achievements in Research & Development. 1.9.0 State-of-the-art technology upgradation. 1.10.0 Training of human resource. 1.11.0 Application of information technology to mineral sector. 1.12.0 Identification of gaps/backlogs/spillovers of XIth plan. Chapter – III REVIEW OF NATIONAL MINERAL INVENTORY.[TOR-(i) & (ii)] 3.1 Preamble. 3.2 Historical background of mineral inventory. 3.3 UNFC and other classification and categorization of reserves/resources. 3.4 Latest end use grade classification of the mineral resources. 3.5 Present status of National Mineral Inventory (NMI). 3.6 Measures taken for improvement of quality and standard of data dissemination. 3.7 Available mineral resources in India based on UNFC system and comparison

with world resources. 3.8 Consumption pattern Vs. Balance life of mineral inventory. 3.9 Identification of the gap areas. 3.10 Strategy for future development and conservation.

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Chapter – IV ASSESSMENT AND STRATEGY FOR SPEEDY EXPLOITATON OF THE PROVEN AND VIABLE MINERAL DEPOSITS.[TOR-(iii)] 1.4 Preamble. 1.5 Identifying proven and economically viable mineral deposits in different ‘mineral

belts’. 1.6 Strategy of prioritization for the speedy exploitation of the proven and

economically viable deposits with special emphasis on gold, diamond, copper, lead-zinc, iron ore, chromite, manganese ore, bauxite etc.

1.7 Suggest measures to minimize ecological degradation and environment conservation while excessive mining activities.

Chapter – V THRUST AREAS AND EXPLORATION STRATEGY IN XIIth FIVE YEAR PLAN 2012-2017.[TOR-(iv) & TOR-(vii)] 1.2 Preamble. 1.3 Identification of technological gaps in mineral exploration with special emphasis

on deep seated /concealed deposits. 1.4 Suggest measures for filling up the gaps. 1.5 Draw up strategy for regional and detailed explorations. 1.6 Identification of national mineral priorities. 1.7 Assessment of national mineral demand/supply scenario with emphasis on

strategic minerals.

Chapter – VI ROLE OF THE STATE INSTITUTIONS AND THE CHANGES REQUIRED THEREIN IN VIEW OF THE NATIONAL MINERAL POLICY, 2008.[TOR-(v) & TOR-(vi)] 1.2 Preamble. 1.3 Geological Survey of India (GSI). 1.4 Indian Bureau of Mines (IBM). 1.5 Mineral Exploration Corporation Limited (MECL). 1.6 State Directorates of Geology & Mining. 1.7 Other Government agencies / PSUs involved in mineral exploration. 1.8 Assessment of powers, roles, jurisdictions and limitations including overlapping

of powers. 1.9 Suggest changes required in the functioning of the institutions in view of the NMP

– 2008.

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Chapter – VII GEOSCIENTIFIC STUDIES IN OFFSHORE AREAS.[TOR-(viii)] 1.6. Preamble. 1.7. Review of offshore geoscientific studies. 1.8. Identifying the promising mineral rich zones and the existing gap areas. 1.9. Strategy for offshore exploration, development and mining. 1.10. Training of man power in offshore geoscientific activities. Chapter–VIII INVESTMENTS REQUIRED FOR PROMOTIONAL EXPLORATION.[TOR-(ix)] 1.5 Preamble. 1.6 World scenario in mineral exploration spending. 1.7 Indian scenario in mineral exploration spending. 1.8 Scale of private investment (including FDI) expected during XIIth Plan. 1.9 Analysis of public/private sector interface in mineral exploration in view of the

National Mineral Policy-2008. 1.10 Financial outlays (agency-wise projection of promotional funding) for the XIIth

Plan period.

302

ANNEXURE – V

303

ANNEXURE - VI

IMMEDIATE FAX/ Speed Post

Government of India Ministry of Mines

F.No.11[17]2011-M.I New Delhi, dt.12.05.2011

MEETING NOTICE Sub : 3rd Meeting of Sub-Group I on Mineral Exploration and Development [other than coal and lignite] for Twelfth Five Year Plan [2012-17] –reg. The undersigned is directed to inform that the third meeting of Sub-Group-I on Mineral Exploration and Development [other than coal and lignite] for Twelfth Five Year Plan [2012-17] is scheduled to be held under the chairmanship of Shri S.K. Srivastava, Additional Secretary, Ministry of Mines on 25th May 2011 at 11.00 AM in Aluminium Room, 1st Floor, D-Wing, Ministry of Mines, Shastri Bhawan, New Delhi. 2. All the Conveners of the Working Groups 1 to 3 of the afore said Sub-Group are requested to make a PowerPoint presentation on the progress of activities and status of preparation of the draft report. It is expected that the same is in the process of finalisation. All Members of Sub-Group-I are requested to attend the above-said meeting.

[Dr. S. K. Wadhawan] Director [Technical]

To,

1. Director General, Geological Survey of India, 27, J.L. Nehru Road, Kolkata – 700 016. Fax-033-22861676.

2. Controller General, Indian Bureau of Mines, 2nd Floor, Indira Bhawan, Civil

Lines, NAGPUR- 440 102, Fax 0712 2565073,

3. Chairman-cum-Managing Director, Mineral Exploration Corporation Limited, Dr. Babasaheb Ambedkar Bhavan, High Land Drive Road, Seminary Hills, Nagpur – 440 006. Fax- 0712 2510107.

4. Adviser, Ministry of Earth Sciences, Mahasagar Bhavan, CGO Complex,

Lodi Road, New Delhi‐110003. Fax- 011 24362644.

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5. Secretary, Ministry of Mining & Geology, 29-A, Khanij Bhawan, Arera Hills,

Bhopal – 462002.Fax-0755-2551795

6. Secretary, Department of Mining & Geology, Govt. of Rajasthan, Shastri Circle, Udaipur. Fax – 0294 252349.

7. Director, Atomic Minerals Division, Department of Atomic Energy, AMD Complex,

Begumpet, Hyderabad-500 016.

8. Secretary General, Federation of Indian Mineral Industry, FIMI House, B-311,Okhla Industrial Area, Phase-I, New Delhi – 110 020. Fax – 011 26814593 26814594.

9. Anglo-American Services [India] Pvt. Limited, Unit No:12, Southern Park, Plot

number D-2, District Centre, Saket, New Delhi – 110 017. Fax 011 46820014.

10. Rio Tinto [India] Pvt. Limited, 3rd Floor, The Capital Court, Olof Palm Marg, Munirka, New Delhi – 110 067. Fax – 011 26164878.

11. DeBeers India Pvt. Limited, Advanced Business Centre, 83 Maker Chambers VI,

Nariman Point, Mumbai - 400 021. Fax: 022 22832823. Copy for information to –

1. PPS to Sec(M)

2. Sr. PPS to AS(M) [Dr. S. K. Wadhawan]

Director [Technical]