‘Squatting’ on mining assets a concern, says Mines Secretary

Certain miners holding on to their acquired blocks without commencing timely operations — or ‘squatting’ — is a cause for concern that the industry must look to address, Union Mines Secretary Keshav Chandra said at the 60th Annual General Meeting of the Federation of the Indian Mineral Industries (FIMI) here on Tuesday.

Separately, the senior official told mediapersons that India had kept prospects open on a return to lithium exploration in Mali. He also informed that a policy for processing of lithium and nickel was in the works.

Mr. Chandra mentioned that the government was also concerned about ‘squatting’ over mines.

Speaking to reporters on the sidelines of the AGM, Mr. Chandra explained that mining commences after “arduous” process of approvals, including forest and environment clearances.

Thereafter, after the mining lease is signed, the miners are expected to commence operations within a given “substantial” time-frame. Despite that, some operations do not start, he said.

“It affects mineral wealth [of the country]; the production gets compromised. I requested members to expedite [operationalisation] and not contravene the provisions,” he said in response to a query from The Hindu.

In his address, Mr. Chandra said that ‘squatting’ would not help anybody and was centred on speculation.

“Squatting is not going to help anybody. It [squatting] is a speculation, so no activity should promote any speculation,” he said, emphasising the very purpose of government reforms in the mining sectors were aimed at accelerating production and ensure the country’s progress in this sector.

Mr. Chandra affirmed that India was looking “very openly” at visiting the Russian project for lithium extraction in Mali.

Russia’s State Atomic Energy Corporation had approached India last year for a collaborative effort for lithium extraction in the West African country.

It was reported that the pact was kept on hold owing to the political instability in Mali. “We are looking at it very openly. We are looking at all the possibilities,” he said in response to a query from The Hindu.

The Mines Secretary also said at the AGM that a “very substantial” scheme for domestic processing of nickel and lithium was in the works.

“For lithium and nickel, very soon we would be launching our [Mines Ministry’s] scheme,” he said, adding they would aid to localise the entire battery ecosystem relying on the two minerals.

Statutory clearances

In his address, outgoing president of the federation Shantesh Gureddi, highlighted that securing timely statutory clearances, notably forest clearances, entailed “lengthy” timelines and was “often hindered by procedural complexities”.

He added that the overall paradigm was further complicated with the involvement of multiple agencies, resulting in “overlapping jurisdictions, further complicating the process”.

“We humbly urge that these critical gaps be addressed expeditiously so that projects can proceed on time and the sector’s full potential can be realised,” he said.