Mineral Exploration Scenario in India: Prospect, Promise and Policy Reforms
Authors: Kumar Pramod , Pandey Pradeep 
Published: August 2022

Abstract
India is endowed with unique geological and tectonic setting conducive to host potential mineral resources. A look at the mineral resource status of selected minerals in India indicates abundant and/or adequate resources of iron, chromite, manganese, bauxite, coal, limestone, dolomite, mica, zinc, graphite but deficient to scarce resources of nickel, cobalt, molybdenum, copper, sulphur, potash, apatite, rock phosphate, gold, PGE’s, diamond etc., in spite of the vast obvious geological potential (OGP) blocks that exist in India. The OGP blocks have been estimated to around 1 lakh Km2 for gold, 3 lakh Km2 for diamond, 1.6 lakh km2 for base metals, 8000 km2 for PGEs and 5000 km2 for iron ores. By a rough estimate only 10% of this is explored and less than 2% is mined. The Reserve to Resource ratio which, as per mineral exploration practice, should be over 50% is woefully low for most of the minerals. For instance it is 17% for bauxite, 14% for copper, 24% for iron 14% for lead-Zinc, 8% for limestone and 30% for chromite etc. This calls for highly focused exploration strategy at high confidence level.
India need to take a leaf out of strategies of many other countries and frame her own policy based on OGP areas to trigger the mining growth by accelerating mineral exploration programme. Benefits that flow from the mineral exploration/mining sector have huge impact on local populace, industry especially mineral dependent industries, employment and overall prosperity. Recent amendments in the Mines and Minerals (Development and Regulations) Act-1957 in the year 2021, have sought to bring out the potential of the mineral sector such as to increase the revenue of the State, escalate employment, maintain the continuity of mining operation, increase production, time bound operationalization of mines, increase the speed of exploration and auction of mineral resources and lastly to resolve the long pending issues that have decelerated the growth of this sector. This is an encouraging step and likely to bear fruits. These legislative and policy reforms in the mineral exploration and mining sector have laid down a sustainable road map that aims to boost mineral output by 200% in the next 7 years and raise the GDP contribution to 2.5%. Mineral laws Amendments Act 2020 are transformative and investor friendly. Mining is now defined as legal entity and hence seamless transfer of mining lease is possible. New auction mechanism instituted will ensure transparency, eliminate discretion, reducing bureaucratic delay and easier trading of mineral rights. Setting up of District Mineral foundation (DMF) will work for the interest and benefit of mining related operations and overcome the local resistance to the mineral exploration and mining activities. The National Mineral Exploration Trust (NMET) will focus on extending more financial assistance to government and also the private sectors to augment advance technology and will surely give fillip to exploration initiatives. The paper deals with such ideas in relation to the required thrust in mineral exploration sector in Indian context.