National mineral exploration policy(nmep)basepaper

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NATIONAL MINERAL EXPLORATION POLICY
(Non-Fuel and Non-Coal Minerals)
BASE PAPER FOR DISCUSSION
1. INTRODUCTION
India‟s mineral sector can best be characterized as one of immense potential that is waiting
to be tapped. Exploration to uncover this potential is crucial. For this, a sound and
comprehensive strategy is required to be framed which can be implemented in a
coordinated, systematic and consistent manner.
A desirable strategy would have to be carried out under a policy framework that-
(i) establishes priorities, in terms of mineral commodities, areas, mining technology etc.;
(ii) identifies and defines roles for the groups of key players in the sector viz., government,
the exploration industry, research and academic bodies, and financiers;
(iii) recognizes that coordinated activity amongst all these players is vital to success in
exploration, and, therefore, creates the institutional mechanisms necessary for this purpose;
(iv) outlines the changes in the enabling framework (legal, regulatory, financial, fiscal etc.)
required for obtaining the best possible results in exploration; and
(v) estimates the resources required, in terms of funds, human capital and technology, and
the means of harnessing these to the tasks ahead.
The proposed National Mineral Exploration Policy (NMEP) document has to address the
issues outlined above.
2. SCOPE OF THIS DOCUMENT
The NMEP has to spell out the strategy and action plan that the Government will adopt for
ensuring comprehensive exploration of India‟s (non-fuel and non-coal) mineral resources. It
will have to cover the various actions needed as prerequisites to exploration and thereby
help in sustainable and efficient exploitation of India‟s mineral resources.
Successful exploration requires the bringing together of the best of knowledge and
experience, the latest and most advanced technology, highly trained human resources, and
also enormous financial resources, on an open, collaborative and inter-disciplinary platform.
A large portion of the effort is clearly of a public good character and, hence, needs to be
publicly funded.
The NMEP will, therefore, have to spell out the details of the specific tasks that the
Government will undertake in this sector, and the resources that it proposes to commit
thereto.
Before finalizing the NMEP, the Government wishes to consult as widely as possible all the
stakeholders in this sector. There are several options amongst which choices have to be

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made. In order to facilitate informed and structured discussion, Government have felt it
necessary to place before the stakeholders a discussion paper that covers all the relevant
issues.
3. BACKGROUND AND THE ACTUAL EXPERIENCE THUS FAR
The framework governing exploration activity in the country can be considered essentially in
two parts:
(a) The institutional and administrative structure through which public exploration activity is
funded and implemented; and
(b) The legal and regulatory framework that governs the activities of the Government and,
more importantly, the private sector.
The following paras detail and analyze the developments in this sector, especially since the
time the economy was liberalized in the early 1990s.
3.1 Institutional and Administrative Structure for Exploration
3.1.1 Baseline Geoscientific Data generation:
Historically, the Geological Survey of India (GSI), established in 1851, has been the most
important institution that has performed the task of mineral exploration. GSI is entrusted with
the lead role in the task of carrying out geological mapping and acquiring geophysical and
geochemical data for the entire country. It generates and disseminates baseline data to
other exploration agencies for accelerating the mineral exploration process. There have
been also some notable contributions by the Departments of Geology of several State
Governments.
The baseline geoscience data generation carried out by GSI so far has resulted in
identification of an area of nearly 0.57 million sq km of Obvious Geological Potential (OGP)
which needs to be explored on higher priority. Within the OGP favorable areas for various
mineral commodities have been demarcated. These are Gold (1,02,890 sq km), diamond &
precious stones (3,00,000 sq km), base metals (1,81,150 sq km), Platinum Group Elements
(PGE) (8,130 sq km), iron ore (5,135 sq km), manganese (4,600 sq km), chromite (2,690 sq
km), molybdenum (6,000 sq km), coal &lignite (60,215 sq km) and tin &tungsten (1,300 sq
km), and bauxite (32,520 sq km).
3.1.2 Discoveries from GSI and State Government efforts:
GSI has also been engaged in regional scale exploration of minerals and, to some extent,
detailed exploration as well.
Some of the important discoveries that have resulted from the work of the GSI and the State
Governments since independence are as follows:

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Sl.
No.
Name of Deposit
Year of
Discovery
Mineral
Commodity
Resource in
Million Tonnes
Greenfield
(G) /
Brownfield
(B)
1 Khetri Copper, Rajasthan 1947 Copper 94.82 G
2 Dalli-Rajhara, Chhattisgarh 1949 Iron 245 G
3 Amarkantak , MP 1950 Bauxite 20.4 G
4 Hutti , Karnataka 1956 Gold
2.138- Ore, > 3500
kg Gold
B
5 Rangpo , Sikkim 1957 Basemetal 0.7 G
6
Rakha-Roam-Tamapahar ,
Jharkhand
1958 Copper 200.49
G
7 Bailadila , MP 1959 Iron 494.76 B
8 Mussourie, Uttarakhand 1960 Phosphorite 18.52 G
9 Jhabua , MP 1960 Phosphorite 0.887 G
10 Junagarh Gujarat 1961 Limestone 917 G
11 Sukinda , Odisha 1962 Chromite 189 B
12 Goa 1963 Iron 889 B
13 Bellary-Hospet , Karnataka 1963 Iron 714 B
14
Turamdih-Nandup-
Bayanbil-Dhadkadih
Jharkhand
1964 Copper 17.85
G
15 Malanjkhand , MP 1966 Copper 236.4 G
16 Virudhachalam, Tamil Nadu 1966 Limestone 139
G
17 Wajrakarur, AP 1968 Diamond
2713 - Ore,
141728 ct-
Diamond
B
18 G.R. Halli, Karnataka 1969 Gold
0.65 - Ore, 2327Kg
Gold
B
19 Bonai-Kendujhar, Odisha 1969 Manganese 13.83 B
20 Rajpura-Dariba, Rajasthan 1970 Basemetals 356
G
21 Mangampeta , AP 1971 Baryte 68.48 G
22 Sargipalli , Odisha 1972 Lead-Zinc 5.7 G
23 East Coast Bauxite 1975 Bauxite 2000 G
24 Harur, Tamil Nadu 1976 Molybdenum 15.42 G
25 Kudremukh, Karnataka 1976 Iron 1233 B
26 Hirapur, MP 1976 Phosphorite 18.66 G
27 Jaisalmer, Rajasthan 1977 Limestone 565 G
28 Tosham , Haryana 1982 Tin-Tunsten 60.89 G
29 Ajjanhalli, Karnataka 1986 Gold
5.91 – Ore 9866 kg
Gold
B
30
Nagaur-Sriganganagar ,
Rajasthan
1988 Potash 2475
G
31 Sittampundi, Tamil Nadu 1988 PGE
1.35 - Ore, 2.728
tonnes of PGE
G

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32 Bhukhia , Rajasthan 1990 Gold 83.62 G
33 Litang Valley , Meghalaya 1992 Limestone 8116 G
34 Baula- Nauasahi Odisha 1993 PGM 14.2 G
35 Beku , W.Bengal 1995 Caesium 0.107 G
36 Hira-Buddini , Karnataka 1996 Gold
0.6 - Ore, 6231 kg
Gold
B
37
Mainpur Kimberlite Field -
Chhattisgarh
1997 Kimberlite
Diamondiferous
kimberlite pipes
G
38 Hanumalpura, Karnataka 1998 PGE 1.5 - Ore
G
39
Ghoraburani Iron ore belt,
Odisha
1999 Iron 188
B
40
Latio-Ka-Khera (East),
Rajasthan.
1999 Basemetal 12.95
with 4.32% Pb+Zn
B
41
Dona East Block, Kurnool
district, Andhra Pradesh
2000 Gold
4.86
with 1.90 g/t Au.
G
42 Kasargod district, Kerala.
2001 Clay 23.23 B
43
Ratnagiri district,
Maharashtra
2002 Bauxite 5.7 G
44
Sundergarh and Bolangir
district, Orissa
2002 Manganese Ore 6.7 with 20 to
31.4% Mn
B
45
Jaintia Hills district,
Meghalaya.
2004 Limestone 395.86 G
46
Baniwala-Ki-Dhani block
and Dokan block, Sikar
District, Rajasthan
2007 Basemetal 13.17 with 0.45%
Cu and 25.56 with
0.38% Cu
G
47 Andhra Pradesh 2007
Diamond/Kimberl
ite Clan Rocks
Timmasamudram
Kimberlite cluster
B
48
Banswara district,
Rajasthan
2010 Gold 50.13 with 2.06 g/t
of gold
G
49
Vellampatti area, Tamil
Nadu
2010 Molybdenum 2.74 with 0.102 %
Mo
G
50
Vaddemanu Block,
Gargeypuram Block,
Kurnool District, Andhra
Pradesh
2012 Limestone 3,125 of cement
grade limestone
B
51
Khera block, Mundiyawas-
Khera, Alwar district,
Rajasthan
2012 Basemetal 26.30 mt (Cu) +
1.32 mt (Au) +
1.51 mt (Ag) with
0.34 % Cu, 0.66 g/t
Au, 6.55 g/t Ag.
G
52
Sagasahi East block,
Sundergarh district, Odisha
2012 Iron ore 44.33 with 62.61%
Fe
B

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53
Bhora Sar, Bariyara, Udhal
and Sandha block,
Jaisalmer district,
Rajasthan
2013 Phosporite 2.6 with 5.56%
P2O5
G
54
Kalamang (West) block,
Sundargarh District, Odisha
2013 Iron ore 53.16 with 51.23-
58.22% Fe.
B
55
Mendhamaruni block,
Sundargarh District,
Odisha,
2013 Iron ore 30.33 with 50.40-
62.11% Fe
B
56
Newari-Barwadih area,
Sonbhadra District,UP
2013 Glauconite
(Potash)
635.30 with 4.8%
K2O
G
57
Jagpura area, Banswara
District, Rajasthan
2014 Gold 5.105 gold ore with
1.78 g/t
B
58
Tikara, Chiklar and
Gowthana areas, Betul
Belt, Betul District, MP
2014 Graphite 4.73 with 9%-
11.68% FC
B
Note: Greenfields and Brownfields refer to the extent to which previous exploration has
been conducted. The general meaning of brownfields exploration is that which is
conducted within close proximity to known ore deposits. Greenfields are the
remainder. 36 discoveries of GSI from amongst the above 58 important mineral finds
since 1947 are green field discoveries.
3.1.3 GSI Activity Missions
GSI carries out its geoscientific activities through five missions namely –
Mission – I : Baseline Geoscience Data
Mission – II : Natural Resource Assessment
Mission –III : Geoinformatics
Mission –IV : Fundamental and Multi-disciplinary Geoscience and Special Studies and
Mission – V : Training and Capacity Building
The first two missions are directly connected to mineral exploration efforts. Mission-II
pertains to all activities related to field investigations for mineral explorations. All activities
carried out under Mission-I (Baseline Geoscience Data Generation) are also directly related
to mineral exploration. This is because the generation of these pre-competitive data is a vital
input for Mineral Exploration. Similarly, substantial activities of other Missions are also
directly or indirectly related to either Mission-I or Mission-II.
In the current five year plan period (2012-17), the number of mineral exploration
programmes on non-fuel commodities carried out by GSI range from 109 to 129 per annum.
During this period, the mineral investigation items for base metals was the largest followed
by Gold, Rare Earth Elements & Rare Metals (REE & RM), Platinum Group of Elements
(PGE) and diamond with the respective shares of about 21%, 16%, 11%, 11% and 7%. The
mineral group wise breakup of the mineral investigation programmes taken up by GSI during
the current FYP is given in the table below.

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Number of mineral investigation projects taken up by GSI
Year
2012-
13
2013-
14
2014-
15
2015-
16
Total Percent
Basemetals 22 19 26 24 91 20.7
Gold 14 16 17 21 68 15.5
REE & RM 10 11 13 14 48 10.9
PGE 16 16 7 8 47 10.7
Diamond 7 8 8 9 32 7.3
Others 32 36 37 49 154 35.0
Total 101 106 108 125 440
The Mission-wise Expenditure of GSI during 2004-05 – 2014-15 is given below:
Mission-wise Expenditure (2004-05 – 2014-15)
YEAR M-1 M-II M-III M-IV M-V TOTAL
2004-05 126.91 68.66 44.24 46.24 6.78 292.83
2005-06 138.91 73.07 42.38 49.87 6.82 311.05
2006-07 130.97 73.98 35.52 49.19 7.77 297.43
2007-08 146.14 78.38 35.91 50.73 7.82 318.98
2008-09 201.48 106.90 45.33 69.27 9.83 432.81
2009-10 232.48 127.21 53.05 83.79 12.41 508.94
2010-11 262.66 130.62 56.55 88.04 13.50 551.37
2011-12 362.88 153.29 70.87 103.39 20.50 710.93
2012-13 321.14 155.58 68.59 102.97 15.30 663.58
2013-14 498.43 186.71 92.54 127.95 18.36 923.99
2014-15 349.88 172.04 72.30 105.85 22.64 722.71
TOTAL 2771.89 1326.46 617.28 877.28 141.72 5734.63
Details of GSI‟s total expenditure in last 11 years under both plan and non-plan towards
Baseline geoscience data generation and Mineral Exploration activities are given the
table below:
Table: Plan and Non-plan Expenditure towards Baseline geoscience data
generation and Mineral Exploration
(In Rupees Crore)
Year
Expenditure on
Baseline data
generation and
Mineral exploration
Expenditure as
percentage
of
total expenditure
in that year
2004-05 227.33 77.63
2005-06 244.43 78.58
2006-07 231.44 77.82

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2007-08 250.43 78.51
2008-09 334.39 77.26
2009-10 384.33 75.52
2010-11 432.36 78.42
2011-12 585.27 82.32
2012-13 533.64 80.42
2013-14 782.31 84.67
2014-15 567.01 78.46
TOTAL 4572.94
The total expenditure of GSI in the last eleven years i.e., from 2004-05 to 2014-15 is about
Rs. 5735 crores. The share of expenditure on baseline geoscience data generation and
mineral exploration activities works out to about Rs.4573 crore, which is about 80% of the
total spend.
3.2 Legal and Regulatory Framework Governing Exploration Activities
3.2.1 Reconnaissance Permits (RPs):
As far as the legal and regulatory framework is concerned, the Mines and Minerals
(Development and Regulation) Act, 1957, which is the main statute of the sector, did not, as
initially drafted, have any specific provisions relating to exploration. The Act initially provided
for only prospecting and mining operations, to be undertaken in terms of a prospecting
license and a mining lease respectively.
An Expert Group was set up by the Government of India in 1997 to look into mining laws
keeping in view the liberalization of the economy that had commenced in the early 1990s.
This Group noted that guidelines had been issued in October, 1996, increasing the area for
a single prospecting license up to 5000 sq kilometers in order to facilitate aerial prospecting.
The Expert Group also noted that in the Conference of Ministers of Mines and Geology of
the State Governments held in 1996, one of the focus areas was the creation of new
opportunities for exploration and mining in the country in the background of the National
Mineral Policy, 1993.
Based upon the deliberations of the Expert Group, the Government introduced the
Reconnaissance Permit as a new form of mineral concession through an Amendment in
1999. A Reconnaissance operation was defined as an operation undertaken for preliminary
prospecting of a mineral through regional, aerial, geophysical, or geo-chemical surveys and
geological mapping, however excluding pitting, trenching, drilling (except drilling of bore-
wells on a grid as specified from time to time by the Central Government) or sub-surface
excavation. The law provided that the Reconnaissance permittee would have a preferential
right for obtaining a prospecting license initially, and a mining lease eventually.

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The expectation was that the new mechanism of a reconnaissance permit, together with
some assurance about being able to progress eventually to a mining lease based on the
strength of the exploration and prospecting carried out, would be attractive to bring in private
sector expertise, technology and resources into mineral exploration.
The actual experience with RPs as a form of mineral concession from 2001 to 2015 has
been as follows:
Since the introduction of RPs as a new mineral concession in 2001, 401 RP licenses have
been granted for various commodities. These are spread all over India but mostly fall in OGP
areas. Out of these, those for diamond and gold were about 70% of the total. This pattern
conforms to that of global private exploration expenditure about half of which is only on gold.
From the above figures, it is further observed that the exploration expenditure through the
RPs is about Rs 6673 per sq km over a period of 14 years. Thus, the expenditure per sq km
per year works out to Rs. 477 i.e. about USD 7.3. As per available data, the government
expenditure per sq km per year is about 15 USD. Thus, the reported RP expenditure is less
than half of the government expenditure per unit area. RP data also show that only about
14% of area has been aerogeophysically covered for diamond exploration whereas these
surveys are critical for diamond exploration. It is also observed that the geophysical and
geochemical surveys are short of UNFC guidelines as regards other commodities.
Thus, the objectives envisaged by the government through the instrument of RPs do not
appear to have been achieved to the desired extent.
3.2.2 The Hoda Committee:
The High Level Committee on National Mineral Policy (Hoda Committee, 2006) noted
that though the National Mineral Policy 1993 aimed at encouraging the flow of private
investment and introduction of state of the art technology in exploration and mining, the
results of this liberalization (which was then over a decade old) had not been encouraging.
1 Total number of RPs issued : 401
2 Number of RPs actually implemented : 341
3 Area covered by RPs : 5.18 lakh sq km
(a) No of RPs on Diamond : 156 (Area-2,31,551 sq km)
(b) No of RPs on Gold : 83 (Area- 95,295 sq km)
(c) No of RPs on Base Metals : 76 (Area- 80, 380 sq km)
4 Number of RPs where final reconnaissance
reports were submitted to IBM and State
Governments.
191
Number of RPs on relatively easily
discoverable surficial mineral (leading to
automatic transition)
17
Number of RPs where no work has been done
:
55
5 Amount of committed expenditure : Rs. 43,522 lakh
6 Actual expenditure reported : Rs. 34,569 lakh
RPs graduated to PLs and MLs : About 15

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Foreign Direct Investment (FDI) in the mining sector had also been progressively liberalized
over the period. (From 2006, 100% FDI in the mining sector has been permitted through the
automatic route). Yet, the results had been far from satisfactory. The Committee noted that
this was mainly because of procedural delays in the processing of applications for mineral
concessions and the absence of an adequate infrastructure in the mining areas.
3.2.3 National Mineral Policy, 2008:
The role of the State in the overall development of the mineral sector was reviewed in 2008,
and this resulted in the issue of the National Mineral Policy (NMP), 2008. As far as survey
and exploration are concerned, NMP 2008 stated that Government agencies would continue
to perform the tasks assigned to them for exploration and survey. However, the private
sector, in future, would be the main source of investment in reconnaissance and exploration
and government agencies would expend funds primarily in areas where private sector
investments are not forthcoming despite the desirability of programmes due to reasons such
as high uncertainties.
NMP 2008 proposed two instruments to achieve these objectives, based on the Hoda
Committee Report.
(a) An open sky policy of non-exclusivity for reconnaissance work so as to expedite
completion of reconnaissance work for the entire country as early as possible.
(b) Large area prospecting license (LAPL), a new instrument to attract large investments and
high technology, to be used exclusively for minerals other than bulk minerals which did not
need risk investment and high technology.
The Hoda Committee had not recommended any preferential or automatic right to a
LAPL/PL for an open sky RP holder but said that such RP holder would be entitled to a
LAPL/PL on the basis of the first-in-time principle and not merely on priority. It added,
however, that “fulfilment of the data requirement as laid down in the MCR as a condition
precedent to the grant of LAPL/PL to the RP holder would have to be rigorously ensured”.
At the same time, the Committee also recommended that a “LAPL/PL can be granted
directly in an RP-held area to a non-RP holder if the application for a LAPL/PL is filed by the
non-RP holder before an application is filed by the RP holder. However, the LAPL/PL
applicant will have to either (a) show basic geological information (reconnaissance) data on
the basis of which the concession is sought, which means that this facility will be available
only for areas relinquished by GSI/RP holders/DMG; or (b) show the desire and ability to use
superior technology that a non-exclusive RP holder would not be inclined to use. In both
cases, the applicant must satisfy the authorities about the accuracy and genuineness of the
data.”
Apart from the inherent administrative difficulties in implementing such a policy, it would also
seem that the recommendations would have placed an impossible burden on the executive
machinery of the Government.
The two concessions proposed by the NMP 2008, as above, did not get included in the law.
Even if they had, it is not clear that the expected results would have been achieved for the
further reasons given below:

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Reconnaissance is based on baseline geoscientific data. It is taken up in an area only when
the data indicates presence of specific minerals in that area. In other words, the very nature
of reconnaissance work is selective, conditional and mineral-specific and, therefore, even an
open sky policy of non-exclusivity for this work might not have helped in expediting the
completion of reconnaissance work for the entire country. As regards the LAPL, there is no
reason to believe that this would have fared any better than RPs.
As far as relative priorities are concerned, NMP 2008 laid down the following as high priority:
(a) Minerals in which the country has a poor resource-cum-reserve base despite having the
geological potential.
This does not provide much direction for prioritization of exploration through public
expenditure. Going by the above considerations, even iron ore qualifies to be a priority
commodity in the same bracket as deficient minerals. However, as per estimates as on date,
the country has sizable reserves which will last for many years from now with even increase
in demand. The identification of thrust minerals through this criterion is, thus, hazy.
(b) Minerals for which there is demand within the country either for use or for export after
processing.
This criterion for identification of priority minerals is also not clear. It appears to be based on
omnibus criteria and the exclusion of any mineral from this category is not easy.
(c) Exploration for lower grade hematite, magnetite, base metals, noble metals, diamonds
and ilmenite will be put on the fast track.
This consideration appears almost all-inclusive.
It is necessary that the relative priorities with regard to mineral commodities be
unambiguously spelt out for an effective strategy of exploration. MP 2008, therefore, does
not provide guidelines that can be practically used to arrive at clear cut mineral exploration
priorities for the country.
3.2.4 Recent Policy Initiatives:
Recent years have seen several developments in the mineral sector, especially by way of
judicial pronouncements, that have far reaching and wide ranging ramifications for the
exploration sector also.
In sum, these developments require that all actions of the Government in the mineral sector
have to stand the test of Article 14 of the Constitution. In practical terms, this means that
complete transparency and equal opportunity for all must be ensured and all scope for
arbitrariness and unfettered discretion should be eliminated.
Accordingly, amendments have been made to the MMDR Act by the Amendment Act of
2015. The most important feature of this amendment is the grant of mining leases and
composite licenses only through an auction process. The Amendment Act has also provided
for the introduction of non-exclusive reconnaissance permits.

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4. BASELINE GEOSCIENCE AND EXPLORATION DATA AVAILABILITY
4.1 Baseline geoscience data
Baseline geoscience data is used for understanding the geology, structure, stratigraphy,
metallogeny etc for various mineral commodities. GSI shares its baseline data as per its data
sharing and accessibility policy. This data is in the form of hard copies of published maps,
and in digital form which is available on its portal. MoD citing its letter No. F.7(7)/64/D (GS-
III) dated 25.08.1967 has imposed a number restrictions on the dissemination of maps,
ground and aero geophysical data, and data pertaining to restricted areas etc. Further, as
per the restrictions of MoD, about 40% area of the country falls within the restricted area.
GSI‟s data sharing policy conforms to the restrictions of MoD.
The generation of geoscience data and its dissemination by exploration agencies increases
mineral targeting efficiency. It also encourages earth science professionals to conduct
research in mineral exploration in order to reduce geological uncertainty and enhance the
opportunities for discovery. There is evidence from mineral rich countries like Australia and
Canada that increased exploration activity, and discovery of economic resources, can be
directly attributed to the release of pre-competitive baseline, geoscience data. A study
commissioned for the Prospectors and Developers Association of Canada (PDAC) has
found that one dollar spent on baseline geoscience data generation pulls in five dollars of
private exploration expenditure. The high quality interpretation that can lead to the discovery
of a deposit depend upon the nature of data and its resolution. The compatibility of baseline
geoscience data with the end user softwares for spatial and statistical analysis for
prospectivity is also important.
4.2 Comparison of Baseline Geoscience Data Availability: India vs Australia
Australia is uniformly held out as an example of a country with high quality baseline data
availability. A comparison between the baseline data availability with GSI and Australia is
attempted below to indicate how India should proceed.
Australia India Remarks
A download facility for
all of Australia's
geological map images
at 1:250K scale is
available.
Hard copies on 1:50K scale
are available for more than
98% of entire country for
purchase. Soft copies of
1:50 K geological maps is
available to Govt. agencies
through MoU.
Unrestricted Areas:
Digital Geological maps are
ready
The digital shape files need
to be put in the public
domain for free download
along with Open Series Map
(OSM) layers.
Restricted Areas:
Digital Geological maps are
ready
along with OSM layers.
Approval of Ministry of
Defence (MoD) needs to be
sought.
Digital Map of the
continent is available at
1:100K and 1:250K
scale and for some
areas, at 1:5M or
1:500K or 1:1000K
scale.
Digital Map of more than
98% of the country is
available on 1:50K scale.
Not accessible to the public.
Accessible to Govt.
agencies through MoU.

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Gravity Map of entire
country is covered. Raw
digital and processed
data is freely
downloadable in various
formats.
Hard copy of compiled
Bouger gravity contour map,
on 1:5M/ 2M scale with 5
mGal contour interval,
carried out by GSI, NGRI,
SOI, OIL and ONGC for the
entire country is available
for sale. Restricted for
purchase by registerd and
authorized users only.
Gravity data on Scale 1:50K
to be placed in public
domain.
Approval of MoD needs to
be sought.
Aeromagnetic Mapping
of entire country is
completed. Raw digital
and processed data is
freely downloadable in
various formats.
a) Aeromagnetic map (high
altitude) of 13.69 lakh sq km
is in the analog form. It is
available only for
government agencies
through MoUs and MoD
clearance. For the rest, it is
restricted.
a) Digital data sharing is
required.
b) 120 m flight height and
500 m line spacing data
being generated :
Digital data (raw as well as
processed data) needs to
be put on public domain for
free download.
be sought.
b) Aeromagnetic map (low
altitude) of 8.4 lakh sq km
over selected blocks is in
analog form and part of it
i.e., 5.04 lakh sq km is in
digital form. It is available
only for government
agencies through MoUs and
MoD clearance. For the
rest, it is restricted.
Radiometric Mapping of
entire country is
completed. Raw digital
and processed data is
freely downloadable in
various formats.
Radiometric survey
(Gamma ray) of 6.73 lakh
sq km has been completed.
Out of this, the data of 5.04
lakh sq km area is in both
analog and digital form. The
remaining area has only
analog data. Requires MoD
clearance for dissemination.
Digital data is required to be
made available in the public
domain.
be sought.
National Geochemical
Survey project has
covered entire country
with sample density of
one sample per 1000 sq
km to 10,000 sq km.
The data is available in
the form of reports and
GIS compatible digital
form. This is available
for free download.
National Geochemical
Mapping (NGCM) has been
carried out with sample
density of one per sq km
over 5.4 lakh sq km. Hard
copies and softcopies of
toposheet wise reports are
available. NGCM reports
are uploaded in the portal
for public view.
Unrestricted Areas:
Digital NGCM maps are
ready.
Restricted Areas:
Digital NGCM maps are
ready
be sought.

13
National Geophysical
Mapping (NGPM) for ground
magnetic and gravity data is
being collected at one data
per 2.5 sq km interval and
has covered an area of 2.81
lakh sq km. The data is in
the form of reports. It
includes gravity data and
hence not in public domain.
Digital data is required to be
made available in the public
domain.
be sought.
Onshore Deep Seismic
Reflection Data (DSRD)
is available for more
than 15,000 km. DSRD
for other areas is being
acquired. The data is
available to the public in
GIS compatibility.
India is yet to take up such
Deep Seismic Reflection
projects.
Offshore
Bathymetric, surface/sub-
surface sediment,
geophysical data are made
available with the approval
of MOD.
Required data will be
provided in the process of
allocation of exploration
licence.
In a nutshell, in keeping with the international best practices of providing pre-competitive
baseline geoscience data to the stake holders, India needs to do the following to
complete data generation to levels comparable to those of Australia:
i. Provide digital geological maps in public domain
ii. Provide already acquired analog/ digital aeromagnetic data to exploration
agencies
iii. Complete NGCM and NGPM data acquisition for the entire OGP area on priority
followed by integration of the entire data set and providing the same to the public
in digital form as part of baseline geoscience data.
iv. Low altitude, close spaced aerogeophysical (magnetic, Electro-magnetic (EM),
radiometric, gravity) data, expected to be acquired by 2021, needs to be
disseminated in digital form to exploration agencies.
In case of geospatial data pertaining to restricted areas, MOD clearance followed by
Survey of India (SOI) certification is mandatory. It has been calculated that about 10% of
the OGP areas lies within these restricted areas.

14
The figure showing the restricted areas in the OGP map of GSI is given below at Figure-
1:
Figure-1
4.3 Mineral Exploration data
GSI has a repository of more than 8500 reports of mineral investigations carried out by it
since 1941. These reports can be immensely useful for planning exploration strategies
and focusing on targets. Metadata of all these reports are accessible on the GSI Portal.
Full reports of more than 6100 reports are also available on the GSI Portal and are
accessible as per the data sharing policy of GSI. However, unlike international best
practices, the geoscientific data in these reports is not available on a geospatial format. In
order facilitate easy access, extraction and analysis of this data by users, GSI has taken

15
up a project of digitization of data of all its mineral exploration reports, wherein all data
including maps and tables containing physical and chemical characteristics of samples,
lithologs, etc. will be digitized and stored on a geospatial format. This data will be made
available in the GSI Portal by mid 2016.
5. WAY FORWARD
5.1 BASELINE GEOSCIENCE DATA GENERATION
(a) AEROGEOPHYSICAL DATA
There is an urgent need for collecting aerogeophysical data on a uniform flight height and
spacing. GSI is in the process of taking up a National Airborne Geophysical Mapping
Program (NAGMP) involving acquisition of aeromagnetic and gravity data. Initially an
area of about 8 lakh sq km including the OGP area will be taken up on priority. The
project is expected to start from 2016-17 and is planned to be completed by 2020-21. The
airborne geophysical surveys over the OGP areas will be carried out with a uniform flight
line spacing of 1000m with flight altitude of 120m. The cost of the project is expected to
be about Rs. 1500 crores. The project also includes acquisition of EM and radiometric
data in focused anomalous areas within the OGP. This data acquired will also have
applications in identifying structures conducive for trapping oil and natural gas,
demarcating aquifers, and locating zones with potential for radioactive mineral
concentration.
For the rest of the country (about 24 lakh sq. kms), aeromagnetic and aerogravity survey
could be carried out with a wider flight spacing. This would require about six more years
for completion. Assuming that it is taken up from 2020-21, it would end by 2027-28.
(b) NGCM
Till 2015, GSI has completed National Geochemical Mapping in an area of 5.4 lakh sq km
in the entire country. Out of this coverage, 2.37 lakh sq km lies in the OGP. Within the
OGP, GSI has identified the core OGP measuring about 3.44 lakh sq km. Out of the
coverage of 5.4 lakh sq km, 1.58 lakh sq km lies in the core OGP. GSI targets to cover
the core OGP by 2017, and rest of the OGP by 2020-21.
Currently, GSI carries out NGCM at the rate of about 1 lakh sq km per year. However, it
may be possible to expedite NGCM coverage by taking up additional 42,000 sq. km per
year. To achieve this, an additional requirement of about 60 vehicles and chemical
analysis capacity of a further 12,500 samples will have to be met. Vehicles are important
because all the sampling activity involves off-roading where outsourced vehicles do not
become available, even at increased hire rates. Three additional XRF and ICP-MS will be
required to analyze the samples. The increased infrastructure will be fully utilized in the
course of NGCM coverage of the entire country and mineral exploration projects. By thus
expediting the NGCM program, the OGP area can be covered by 2020. The extra
budgetary requirement for this purpose will be about Rs. 14 crore.

16
The status of coverage of NGCM as on 31st
March 2015 is given below at Figure-2:
Figure-2
(c) NGPM
National Geophysical Mapping has been completed in an area of 2.81 lakh sq km out of
which 1.27 lakh sq km lies in the OGP. An area of 1.02 lakh sq km has been covered in
the core OGP. The remaining core OGP area is planned to be completed by 2018, and
the entire OGP by 2024-25.

17
The status of coverage of NGPM as on 31st
March 2015 is given below at Figure-3:
Figure-3
5.2 OGP AREA: NEED FOR PERIODIC REVIEW
The following aspects of the currently identified OGP area need to be kept in
mind:
 OGP area of entire country for gold, basemetal, diamond, ferrous, PGE, bauxite, coal
etc is 5.707 lakh sq km.
 An area of about 10% (0.56 lakh sq km) of OGP falls under restricted area as per
SOI guidelines (Fig-1).
 About 3 lakh sq km (53%) of OGP is marked for diamond and precious minerals out
of which approximately 1.82 lakh sq km is exclusively for these and the remaining
area of approximately 1.28 lakh sq km overlaps with gold, basemetal, chromite, iron
ore, bauxite etc.

18
 Small part of OGPs (each less than 6000 sq km) is represented by chromite, iron,
manganese, tin-tungsten, molybdenum.
 Coal and lignite account for 0.6 lakh sq km of OGP which is exclusive of all other
minerals.
 The commodities like chromite and PGE; iron and manganese; Gold and basemetal
mostly have large overlapping fields in respect of geology.At present, OGP does not
cover all strategic and fertilizer minerals which is one of the priority sectors for the
country
The mineral potential of geological terrains needs to be evaluated periodically by
incorporating the basic geoscientific data and exploration data as and when it is available.
Hence, the concept of OGP is dynamic and needs to be revisited periodically with the
updation of database for various mineral commodities.
OGP maps need to be prepared by GSI in respect of fertilizer minerals, nickel, cobalt,
antimony, Rare Earths & Rare Metals (RMRE), lithium, bismuth etc.
Considering the fact that understanding of the mineral systems is evolving with time and
new exploration data is being added every year, GSI should upgrade the OGP areas
mineral-wise at least every five years, and bring out a detailed atlas. In this connection,
an action plan for the first review should be formulated immediately.
5.3 PROBING DEEP SEATED/CONCEALED MINERAL DEPOSITS
Australia has launched the UNCOVER initiative in the year 2010 as they have almost
exhausted easily discoverable near-surface resources. UNCOVER involves application of
advanced geophysical techniques like DSRS, Magneto Tellurics (MT) in conjunction with
high resolution geochemistry and geochronology. India too needs such an initiative to
target concealed mineral deposits. Characterizing India's cover, Investigating India‟s
Lithospheric Architecture, Resolving 4D geodynamic and metallogenic evolution and
Detecting and characterizing the distal footprints of ore deposits would be the main
components of this initiative. Investigating lithospheric architecture involves acquisition of
MT and DSRS up to a depth below moho-discontinuity up to Lithosphere-Asthenosphere
Boundary (LAB >70 km).
This initiative needs to be taken up immediately on a pilot scale. The Precambrian
metallogeny of the northern portion of Aravalli Craton i.e., the Northern Delhi Fold Belt
and Khetri Copper belt, hosting numerous basemetal mineral prospects, in areas of Nim-
ka-thana, Dhani-Basri, Khetri, Satkuli, Suhara, Dokan etc (bounded by global co-
ordinates, 75ºE to 78ºE and 26ºN to 29ºN), appear to be the most suitable areas for such
a pilot scale project to be taken up on the lines of the UNCOVER vision. The project
could be in collaboration with agencies in India National Geophysical Research Institute
(NGRI) and the proposed National Centre for Mineral Targeting (NCMT)) and abroad
(Geoscience Australia).
An approximate length of 500km can be planned as a pilot project. The exploration and
exploitation could be limited to the outcropping zones within a sea of quaternary cover
sediments (nearly 75% of surface area).

19
The major work components would include:
1. Regolith characterization (transported/local, source rock) - Requires Fieldwork,
Sampling, Geochronology, Geochemistry, Remote Sensing etc.
2. Depth to Basement (depth of quaternary sediments/ regolith cover over basement) --
Requires geophysical data (AEM, EM, Gravity and seismic), Selective drilling to
characterize geophysical signals, Integration for creation of depth models and depth
maps, existing drill data compilation and interpretation.
3. Distal footprints -- Requires DSRS Data for ~500km, Geochronology, Mineral System
Studies, Geochemistry, Alteration Mapping etc followed by integration and deposit
Modelling.
NGRI is carrying out an MT survey in India under the title INDEX, broadly inspired by
Crustal mapping projects such as Lithoprobe (Canada), Sinoprobe (China), Earth-Scope
(USA) and Deep Seismic Reflection Survey (Australia). The MT survey is on a very wide
spacing and only of academic value. However, this experience and expertise of NGRI
could prove to be handy for the proposed UNCOVER project in India. The project could
be initiated in India in collaboration with the countries which are successfully carrying out
and using this data for exploring concealed and deep seated deposits. The collaboration
should involve NGRI, GSI, ONGC, IITs on pilot scale basis. Transects (~ length is 500
km) should be preferably across Western Dharwar Craton to Eastern Dharwar Craton for
researching on the known Gold metallogeny and applying it in the other areas for Gold
mineralization in addition to delineating diamondiferous roots beneath Dharwar Craton.
Another such transect would be across Khetri to Bundelkhand Craton for targeting
concealed and deep seated copper-gold mineral system in the alluvium covered terrain
and also for Kimberlite field in the Bundelkhand Craton. Such pilot projects would bring
valuable information as well as develop the teams to carry out such work in India for
intensifying mineral exploration process.
Financial necessities for a pilot scale CRUSTAL MAPPING: As a part of UNCOVER
vision, acquisition of Deep Seismic Reflection Survey (DSRS), Magneto Telluric (MT)
and Geochronology (SHRIMP) are the essential components.
Two such seismic acquisitions and absolute age dating as part of UNCOVER viz., i.
Khetri to Bundelkhand Craton and ii. Across Western Dharwar Craton to Eastern Dharwar
Craton approximately cost around 53 crores. The above figure excludes the expenditure
of GSI for covering NGPM, NGCM, RS, aerogeophysical, mineralogical and chemical
analysis. The details are given at Annexure – I.
5.4 PRIORITIZATION OF PUBLICLY FUNDED REGIONAL AND DETAILED
EXPLORATION
There is a need for a closer look at the prioritization of publicly funded regional and
detailed exploration.
Global exploration priorities in respect of private exploration expenditure are broadly
defined by the economics of the demand and supply of various minerals. Over the past
several years gold has claimed the lion‟s share of global private exploration expenditure,
amounting to around half the total.
As far as the GSI‟s own priorities are concerned, there are set in the Five Year Plan
documents on the basis of mineral deficits, the trade deficit and value in foreign exchange

20
GSI has prioritized its mineral exploration programmes for noble metals & minerals.
Accordingly annual programmes are framed. The programmes are finalized in the CGPB
and SGPB deliberations with exploration agencies and other stakeholders.
In order to narrow down trade deficit and also give thrust to exploration for high value
forex mineral commodities with an emphasis towards which the country is deficient within
OGP are the main concerns. Priorities for these commodities are to be given for both
regional and detailed exploration keeping in view the India's priorities. Fertilizer minerals
(Potash and Sulphur), Basemetals, Molybdenum, Nickel, Tungsten, Cobalt, Antimony,
Tin, Rare Earths & Rare Metals (RMRE), Lithium, Bismuth, Selenium, Platinum Group of
Metals (PGE) are to be given priority by government as private and public exploration is
negligible for the above mentioned commodities except for basemetals as reflected in the
RP analysis.
Strategic minerals/metals (tin, cobalt, lithium, germanium, gallium, indium, niobium,
beryllium, tantalum, tungsten, bismuth & selenium, molybdenum, nickel etc.) occur
usually in very low concentrations (<1%) in rocks. Hence, these are difficult to locate and
identify by normal megascopic and microscopic techniques, which are used in
identification of rock–forming minerals that occur in major to minor quantities (>1%).
Therefore, these mineral commodities need to be explored with modern concepts and
tools for possible breakthrough requiring high investments in sophisticated survey and
spatial data management technologies to produce more detailed data and information of
areas and depths so far unexplored. Specific and high precision laboratory studies aimed
at guiding and substantiating field studies pertaining to ore localization are the need for
success in exploration for strategic minerals (Annexure-II).
Based on the global demand supply of minerals and our country's dependency on
imports, gold, diamond need to be continued. Private players are keen to invest in the
regional and detailed exploration of these commodities which is supported by RP data.
The demand-supply in respect of various mineral commodities is dynamic and fast
changing. The mineral intelligence of IBM will develop a mechanism to provide biennial
reports for prioritizing the exploration of various mineral commodities. India, has
traditionally been a major centre for cutting and polishing of diamonds produced in the
world and to retain this traditional monopoly of Indian Diamond Industry, there is strong
need to modernize and enhance the diamond exploration activities in the country to
ensure guaranteed supply of rough diamonds to our gem and jewelry industry (The
details are given in Annexure-III).
5.5 ORE BENEFICIATION
Ore beneficiation studies and related petrological characterization of the ore /gangue
minerals is vital in understanding the nature and control of mineralization. The economic
viability of any mineral depends largely on the amenability of the ores for beneficiation. In
view of the marginal / low grade nature of the many ores of our country, the beneficiation
aspects have to be given due importance for successful recovery of these metals from
the ores.
In this regard the Ore dressing laboratory of IBM with its excellent infrastructural facility
needs to be fully leveraged. This IBM facility needs to take up R&D projects/pilot scale
projects to develop flow sheet for various mineral deposits of our country. At present the
Ore Dressing Facility faces acute shortage of trained manpower, which needs to be

21
addressed immediately. The activities of this facility needs to be synergize through
CGPB platform for accelerating the development of beneficiation process/flow sheets for
upgrading the lean grade ores, as well as complex ores like PGE, Nickel, REE & RM &
fertilizer minerals. This assumes significance in view of enhanced G2 & G1 level
exploration planned in coming years, wherein ore beneficiation studies are mandatory for
UNFC Compliance.
There are five major areas that need to be focused upon by IBM
i. Identify lean ores or waste of important technology metals and work on the
beneficiation mechanisms along with other labs and institutions in a consortia to
lead to Flow Sheet development. Process development for extraction of PGE, REEs
and technology metals which are produced as by-products of base metals (Mo, Re,
Te, Se, Ge, Cd,In, Ga,V, Sc) is an urgent necessity which needs to be addressed
by focussed R&D.
ii. Identify crucial apparatus / equipment that is dependent on imports. IBM needs to
work on cost effective capital equipment development in the country. Typically the
equipment fall into the following three categories:
a. comminution equipment such as ball mills, rod mills and attritors. Here the
design and fabrication of equipment, surface engineering with hard facing
materials and grinding media are the areas of concern;
b. separation equipment: column floatation; cyclones; digestors and
precipitators etc where chemical and physical mechanisms are used
c. field related equipment: magnetic, or electric or microwave or
sonication where fields are used in addition to chemical and physical
methods
d. hybrid equipment where part reactions such as digestion etc and fields are
combined to obtain higher efficiencies e.g. treating ilmenite with microwave
and digestion
iii. Energy Efficiency studies in ore dressing
iv. Water conservation in ore dressing and water recycling circuits in ore dressing
v. Up grading existing methods to become more environmentally friendly eg:
dust/waste collection mechanisms to be added to the existing systems
5.6 NATIONAL GEOSCIENCE DATA REPOSITORY (NGDR)
All geological, geochemical, geophysical and mineral exploration data will have to be
made available in public domain on a digital platform compatible with GIS. Accordingly, a
National Geoscientific Data Repository (NGDR) will be created by GSI which will collate
all baseline and mineral exploration information generated by various central and state
govt. agencies and also mineral concession holders and maintain these on a geospatial
database. This database will be made available in public domain with appropriate
mechanism of free access. The requirements are detailed in section 4.7.
National standard in regards to submission of softcopies of mineral exploration reports
need to be initiated in India in line with those in developed countries. These standards
should include guidelines in relation to the submission of mineral exploration digital data.
Mineral Exploration Reporting Template (MERT) formats need to be built to facilitate the
creation of geochemical, drilling and other spatial data in the required data templates to
assist mineral exploration agencies to comply with the reporting guidelines. A suitable

22
format to read, retrieve and disseminate the data submitted through MERT should be
developed (Annexure-IV). This data will enable ease of storage, retrieval and usage of
Data Repository. Any research made by making use of the NGDR is to be communicated
to the data authority for keeping a check on data sharing benefits and further
dissemination.
Baseline geoscience data to the exploration agencies should be made available in both
interpreted and raw data form compatible with common softwares for avoiding biased
interpretations and giving scope of applying interpretation skills independently by domain
experts of exploration agencies.
AMDER need to provide their data which do not have atomic minerals more than the
threshold values decided by DAE of the blocks to the respective State Governments for
augmentation of rare earth elements, garnet, sillimanite, illeminite, rutile, zircon etc.
Geophysical data is an integral part of baseline geoscience data and is a vital component
used in searching concealed and deep seated deposits. The geophysical data generated
by NGRI (MT, seismic, gravity, aerogeophysical etc) may be disseminated through their
portal or linked with the proposed National Geoscience Repository.
5.7 THE PRIVATE SECTOR IN EXPLORATION
Government‟s objective is to facilitate, encourage and incentivize private sector
participation in all spheres of mineral exploration. Government thereby hope to harness
the technical expertise, technological capability and the financial resources of the private
sector to discover and exploit the country‟s vast mineral resources.
Involvement of private sector in exploration depends on the following:
(a) Generation of comprehensive, pre-competitive baseline geoscientific data;
(b) Free dissemination and availability of such data;
(c) Incentives structures that provide an appropriate risk-return scenario; and
(d) Ease of doing business and earning the returns from investment.
Creation and free dissemination of pre-competitive geoscience data has been dealt with
at length in the earlier parts of this paper.
The legal framework now in place does not impose any restrictions on the participation of
the private sector in exploration. There are two mineral concessions that can be obtained
by private sector participants, namely, Non-Exclusive Reconnaissance Permit (NERP)
and the Composite License (Prospecting License-cum-Mining Lease).
In order to provide incentives to NERP holders, the framework gives them the option to
either retain the reconnaissance results with themselves (in contrast to the requirement of
the earlier rules that mandated compulsory sharing of such information with the State
Governments), or to opt for passing on the information to the State Governments in case
they are of an auctionable nature. The present structure of auctions (ascending, forward,
electronic auction) too permit the holder of the NERP to have a virtual right of first
refusal. This procedure is also consistent with the overall policy of Government of not
giving any mineral concession otherwise than the auction.

23
Full transferability of mineral concessions at any stage has also been built into the
scheme of the Act. The experience abroad seems to indicate that about seven transfers
take place on an average between initial exploration and commercial mining of a deposit.
The very simple requirements for effecting a transfer now built into the Act will help in
players interested only in particular segments of the activity and value chain to enter and
exit with ease.
Apart from participating through the obtaining concessions, the Government also wishes
to engage the private sector for taking up specific tasks in exploration. Engagement of
the private sector could be in various forms. Private entities could be employed to
conduct specific exploration tasks on the basis of limited competitive bidding amongst
pre-qualified entities. Private entities could also be engaged to carry out exploration work
with the right to a certain share in the revenue accruing to government should there be a
successful auction based on the results of their exploration. Such share could be either
in the form of a lump sum or as an annuity. Government will develop model contracting
procedures and standard agreement templates under which either the Central
Government or State Governments and their agencies can engage private sector
expertise in specific cases.
There is also a need for clarity in the applicable tax laws and the provision of suitable
fiscal incentives. The legal structure now provides for transfer of rights under the mining
laws at any stage. There needs to be clarity on whether the expenditure incurred on
exploration can be offset against the receipts from sale of any rights arising therefrom.
There are separate provisions in the Income Tax Act relating to prospecting for mineral
oil. Such provisions include special allowances to cover infructuous or abortive
exploration expenses in respect of any area surrendered prior to the beginning of
commercial production by an assessee [Section 42(1)(a)], as also to cover cases where
transfers of any prospecting business for oil is made and there are expenditures incurred
but remain unallowed [Section (42)(2)].
However, as far as other minerals are concerned, the deductibility of expenses is far
more restricted. Section 35E provides that prospecting expenditure incurred in a period
of up to 4 years prior to the year of commencement of commercial production only will be
allowed as a deduction over a period of the next 10 years.
The tax incentives in respect of prospecting for minerals should be on par with that
available for prospecting of mineral oils.
5.8 ROLE OF STATE GOVERNMENTS AND PSUs
State Governments have a key role to play in building up a steady stream of auctionable
prospects. They will have to take up mineral exploration reports prepared by the GSI and
build on them to complete G3 or G2 level of exploration. States also need to buil up the
exploration capabilities of their staff. The Central Government will have to provide suitable
incentives to expedite this process.
In order to bring in greater number of agencies for regional scale mineral exploration in
the country a significant provision has been incorporated in the MMDR Amendment Act
2015. In pursuance of this provision the government has permitted 7 PSUs, in addition to

24
GSI & MECL, to carry out prospecting operations without licence or lease. The activities
of these agencies will be co-ordinated and monitored through the CGPB mechanism.
5.9 NATIONAL CENTRE FOR MINERL TARGETING (NCMT)
India has exploited most of its outcrop and near surface mineral deposits. It has become
imperative to focus on identification of deep-seated (below 300m to 1000m in the initial
phase) and concealed mineral targets. Such an exercise requires thorough
understanding of the geological and geochemical framework, knowledge of occurrence of
ore-forming mineral systems and the extent of thickness of non-mineralized cover rocks
over the concealed mineral producing belts. Geophysical studies always play a vital role
in exploration of buried ore deposits.
Deep exploration is a cost-intensive exercise with high degree of risk factor. It is
therefore, essential to adopt an integrated approach for selecting suitable geological
tracts before undertaking multidisciplinary geoscientific surveys and subsequent deep
drilling projects. If country is to look for sizable new resources for sustained growth of its
mineral-based industry, the country has to embark on a systematic programme of
capacity building in mineral targeting.
The capacity building programme has to be a multi-disciplinary and collaborative effort
that brings together the best of expertise in the GSI, academic and research institutions
and the exploration and mining industry
This activity is proposed to be housed in a not-for-profit autonomous institution that will be
known as the National Centre for Mineral Targeting (NCMT). The NCMT could be a
company registered under Section 8 of the Companies Act, 2013 with 49 % shareholding
from the Government and 51 % from others, including the private sector. The NCMT will
be a unique applied research enterprise focusing on increasing the discovery rate in
mineral exploration and the quality of discoveries without relying on substantial increases
in exploration expenditure. NCMT will aim to add value to the mineral exploration sector
through various collaborative research, training and information dissemination programs.
This approach is expected to allow to maintain the balance between fundamental and
applied research outputs by ensuring that fundamental research is aligned with
application in mineral sector. Moreover NCMT will fill the knowledge gap in the field of
mineral exploration and act as a think tank for the overall development of the sector A
concept note on the proposed NCMT is annexed (Annexure-V).
In the varied geological environment, the strategic metals viz., selenium, gallium, indium,
tin, tungsten, molybdenum etc., generally occur in association with other major metals like
aluminum, copper, gold etc. Tailor-made collaborative projects on deposit scale on these
strategic metals could be formulated for arriving at the industrial scale beneficiation and
metallurgical plants (IBM, GSI, NML, HGML, BARC, IREL, AMDER etc).
Drilling is correlated with the exploration success. Australia drills between 100 and 120
lakh meters annually, while Canada‟s exploration drilling was 110 lakh meters. The
annual exploration drilling in India is only about 5 lakh meters.
Developed countries significantly invest in research on drilling technology to enhance the
efficiency and quality of drilling. Deep Exploration Technologies Co-Operative Research
Centre in Australia introduced coiled tube drill rigs to undertake cheap, safe and

25
environmentally friendly mineral exploration with high speed drilling of 30m per hour.
Such drilling projects are taken up collaboratively by government and industry. The
proposed NCMT will also address research and adoption of such fast track,
environmental friendly drilling technology.
5.10 UTILIZATION OF NMET
The country faces multiple challenges in mineral exploration, where focused projects
need to be sponsored for targeting new surficial, concealed and deep rooted deposits in
both Greenfield and Brownfield areas. To convert resource base to reserve, detailed
exploration of the delineated deposits needs to be carried out. To address all the diverse
issues in mineral exploration sustained and focused investment is required to accelerate
mineral exploration with a view to enhance the contribution of the mining industry to GDP
of the country.
Recently a National Mineral Exploration Trust (NMET) has been established under
Section 9C of the MMDR Amendment Act 2015. The NMET is intended to accelerate
exploration activities in the mineral sector in the country whereby the fund shall be utilized
for development of diverse activities of regional and detailed exploration for minerals
including exploration for deep seated and concealed deposits. The trust also aims at
funding for capacity building and research projects related to mineral exploration.
Keeping the above in view, the NMET could be used for funding of appropriate
exploration projects with focus on generating necessary baseline data, exploration for
concealed and deep seated deposits and prospecting for strategic minerals.
5.11 CAPACITY BUILDING
At present, there are more than 80 universities/ colleges/ ISM/ IITs/ IISER offering PG
courses in Geosciences from which about 4000 PGs and 100 PhDs pass out every year.
Currently, more than 15 to 20 courses on mineral exploration, from basic to advanced
courses including field training, are being conducted by GSI Training Institute (GSITI) to
the geoscientists of GSI and other State and Central agencies. Training Institute of MECL
also offers training on Mineral Exploration.
Universities are to be encouraged to call GSI or Mineral Industry experts for knowledge
sharing events. Universities should be timely communicated by the proposed NCMT to
include exploration advancements in their curriculum. Training in advanced exploration
techniques with foreign partnership/ country may be made available to the geoscientists.
Mineral exploration is a specialized domain in Geosciences. Dissemination of baseline
geoscience data as well as mineral exploration reports to the public is expected to attract
researchers on Mineral Exploration.
The Exploration field needs a thorough knowledge on Geochemistry, Geophysics,
Structural Geology, Geostatistics, and Geology in addition to the advanced computer
knowledge on geospatial analysis, modelling etc. Within each subject components as
mentioned above, further specialization is required in sub domains like seismic, gravity,
magnetic, gamma ray-spectrometry, hyper-spectra etc within geophysics. In addition the
geoscientists need the data to apply their skills of mineral exploration. The proposed
National Geoscience Repository (NGR) would certainly provide data to the learners as
well as experts for researching on mineral potentiality. Keeping the above in view, a close

26
association of experts of different disciplines, knowledge transfer between them, and with
the beginners, is essential for broadening exploration activities in India.
The Indian Mineral Sector requires practitioners who have the skill sets necessary to
keep up with the latest advances. Virtually all technical jobs within mining and mineral
exploration, including geology, engineering, mineral processing, environmental
assessment and surveying, require practical field exposure and training for supporting the
accelerated pace of mineral exploration. It may be pertinent to note that, the Industry
needs supply of trained manpower particularly computer applications, surveying, drilling
technology, GIS applications by draughtsman, Remote Sensing & GIS applications for
graduate level workforce in mining and mineral sector.
The training programmes of GSI and other institutes will be evaluated and modified
keeping in view the above requirements as well as the priorities spelt out by the policy.
GSI has carried out joint ventures in India with the advanced countries in the past that
has benefitted the national geoscience database for mineral targeting. Advanced
Geochemical sampling for predicting mineralized zones as secondary distal foot prints
was jointly attempted with BRGM, France. Under the title INDIGEO, collaboration with
ITC Netherlands brought about advanced GIS data management in GSI.
5.12 REVAMPING OF CGPB AND GAC
Central Geological Programming Board (CGPB) is the mechanism evolved by GSI for
formulation and detailing of the programmes in the Earth science area, through close co-
ordination between GSI, stakeholder Ministries and Organizations and State Geological
Departments to avoid duplication of work and ensure synergy. State Level Programming
Boards provide inputs from the State Departments of Mining and Geology while
subcommittees of the Central Board provide the inputs from within GSI (including special
programmes) as well as from stakeholder Ministries and Organizations.
CGPB was reconstituted in 2009 into 12 committees as per HPC recommendation, in
order to align and achieve sectoral goals of various mineral commodities with national
priorities. Out of the 12 committees, 8 directly concern mineral exploration activities and 2
other have supporting role to mineral investigations. Of late it is felt that the CGPB
platform is not able to revitalize the mineral sector as per its mandate. The CGPB
secretariat in GSI was established to formulate short term and long term plans,
coordinate the activities in the mandate and priorities of the National Mineral Policy.
However, the performance and delivery mechanism of the CGPB secretariat are not up to
the expectation of the mineral sector.
CGPB secretariat needs to develop annual plans and five year plans for various mineral
commodities in consultation with state governments/ industry through SGPB – CGPB
mechanism on one hand and on the other hand interact with mineral industry and
academic/research institutes to help develop exploration technologies. The secretariat
need to coordinate and monitor all mineral exploration activities in the country to ensure
accelerated exploration with firm timelines and targets. Accordingly, the activities of
CGPB Secretariat need to be thoroughly examined to have the desired outcomes.
The Geoscience Advisory Council (GAC) was constituted to help administrators,
geoscientists and academicians to identify and suggest gap areas in our present of
pursuing geosciences and to give directions to organizations to individually and

27
collectively carry geosciences activities to meet future challenges. The GAC was
constituted to act as advisor on geoscientific aspects to the MoM, in general, and GSI in
particular. Towards achieving these goals GAC secretariat was established within GSI.
However, the results from GAC have not been satisfactory. There is an urgent need for
revitalization of GAC secretariat to undertake the following activities in consultation with
GAC members:
(i) interact with institutes/ industry to identify gap areas in geosciences in the country
(ii) study the latest geoscientific developments & practices in developed countries
(iii) identify the gap areas and suitable methods to address the same, and if needed,
to consult other domain experts /groups in India and abroad.
6. FOREST RELATED ISSUES
UNFC guidelines mandate a certain density of boreholes for each level of investigation for
resource/reserve estimation. Accordingly, there is a minimum requirement of 20
boreholes per sq km in case of coal, lignite and metallic ores, and 16 per sq km in case of
non-metallic ores at G3 level.
However, as on date, in India, drilling up to a maximum of 20 boreholes per 10 sq km in
case of coal, lignite and metallic ores, and a maximum of 16 boreholes per 10 sq km in
case of non-metallic ores only is permitted without attracting the provisions of the Forest
(Conservation) Act, 1980, provided there is no felling of trees. This is a major stumbling
block in exploration.
In order to facilitate expeditious decision on applications seeking prior approval of Central
Government under the Forest (Conservation) Act, 1980 for prospecting of minerals in
forest areas, the Ministry of Environment, Forest and Climate Change (MoEFCC) has
formulated a simplified format of the application. This format has been published in the
Forest (Conservation) Amendment Rules, 2014 as „Form-C‟, in Appendix to the Forest
(Conservation) Rules, 2003.
To simplify the process further, MoEFCC has conveyed that site inspection by concerned
Regional Office of the Ministry will be insisted only if the actual area of the forest land
proposed to be utilized for construction of new roads/ paths and for drilling of bore holes/
sample collection pits etc. is more than 100 hectares. Further, forest land which
undergoes permanent change in the land use due to prospecting activity shall only be
considered for the purpose of the compensatory afforestation and Net Present Value
(NPV). The Ministry has also stipulated that proposals seeking prior approval under the
Forest (Conservation) Act, 1980 for prospecting in forest land are exempted from the
requirement of the submission of documentary evidence in support of settlement of rights
in accordance with the provisions of the Scheduled Tribes and Other Traditional Forest
Dwellers (Recognition of Forest Rights) Act, 2006 as stipulated in the Ministry‟s letter
No.11-9/98-FC dated 3rd August, 2009.
Though of late MoEFCC has taken some initiatives in simplifying the procedures, the
limited numbers of boreholes allowed per sq. km for prospecting without prior approval is
still proving to be inadequate for UNFC compliance for resource estimation. It is felt that
the provisions of Forest (Conservation) Act 1980 should be amended so that G3/ G2 level
of exploration, which do not involve degradation of forest, could be carried out freely
without attracting the statutory provisions.

28
For strategic and critical minerals, MoEFCC needs to take a flexible view on these
restrictions as is being envisaged in USA.
The other way, but by no means as a substitute to statutory amendments, to address the
issue is technological. Advanced portable drilling technology (eg. Man Portable Drilling
Rigs) with minimum impact on forest environment should be deployed experimentally.

29
ACTIONABLE POINTS
1. Baseline geoscience data Acquisition
i. GSI will complete NGCM and NGPM data acquisition on 1:50K for the entire
OGP area on priority followed by integration of entire data set and share it to
the public in digital form.
ii. Till 2015, GSI has completed National Geochemical Mapping in an area of
5.4 lakh sq km in the entire country. Out of this coverage 2.37 lakh sq km lies
in the OGP. Within the OGP, GSI has identified the core OGP measuring
about 3.44 lakh sq km. Out of the coverage of 5.4 lakh sq km, 1.58 lakh sq
km lies in the core OGP. GSI targets to cover the core OGP by 2016-17. Rest
of the OGP areas will be completed by 2020-21.
iii. National Geophysical Mapping has been completed in an area of 2.81 lakh sq
km out of which 1.27 lakh sq km lies in the OGP. An area of 1.02 lakh sq km
has been covered in the core OGP. The remaining core OGP area is planned
to be completed by 2017-18.
iv. Low altitude, close spaced aerogeophysical (magnetic, EM, radiometric) data
in an area of about 8 lakh sq km including the OGP area is planned to be
completed by 2020-21. The data is planned to be acquired at a uniform flight
line spacing of 1000m and flight altitude of 120m.
2. Baseline geoscience data Dissemination
Exploration activity, and discovery of economic resources, can be directly attributed to
the release of baseline geoscience data. Following are the details of baseline
geoscience data which will be made available to the mineral exploration agencies with
the consent of the MoD for enhancing mineral discoveries:
i. GSI to place digital geological maps on 1:50 K of unrestricted areas which
includes about 90% of the OGP area in the public domain.
ii. Already acquired analog/ digital aeromagnetic data of unrestricted area will be
made available to exploration agencies.
iii. NGCM and NGPM data generated in unrestricted areas will be made
available on public domain or the core OGP area on priority followed by
integration of entire data set and will share it with the exploration agencies.
iv. Low altitude, close spaced aerogeophysical data in an area of about 8 lakh sq
km including the OGP area is planned to be completed by 2021. The data of
unrestricted area will be shared through the GSI portal.
v. These data of restricted areas will be made available to exploration agencies
with necessary modifications.
3. Updation of the OGP area
The OGP will be updated by GSI periodically, at least once in five years, on various
mineral commodities. In this connection,

30
i. OGP atlas with supporting geoscientific data of new exploration findings and
understanding of mineral system shall be prepared and shared with the mineral
exploration agencies.
ii. The OGP maps for fertilizer minerals, strategic, Rare Earths & Rare Metals
(RMRE), nickel, cobalt etc will be prepared by GSI and put in the portal.
4. Special Pilot Projects for targeting concealed and deep seated deposits
Two pilot scale projects are envisaged for the country on a collaborative basis between
GSI, NGRI, AMDER and international partners. These are (i) the stretch between Khetri
to Bundelkhand Craton and ii. A transect across Western Dharwar Craton to Eastern
Dharwar Craton. It will be a collaborative project with GSI, NGRI, AMDER, IITs and
international partners. These will be implemented within next five years. The approximate
cost of the project will be about Rs. 53 crore.
5. Creation of a National Geoscience Data Repository (NGDR)
i. A National Geoscientific Data Repository will be created by GSI on a geospatial
database which will collate all baseline and mineral exploration information
generated by various central and state govt. agencies and also mineral
concession holders. This database will be in public domain with appropriate
mechanism of free access.
ii. A mineral exploration reporting template for submitting mineral investigation
information for NGDR will be developed by GSI for use by various exploration
agencies within four months. A draft of the template is at Annexure IV.
6. Creation of National Centre for Mineral Targeting (NCMT)
i. A specialized autonomous body called National Centre for Mineral targeting
(NCMT) for mineral exploration is being proposed to apply unique applied
research enterprise focusing on increasing the discovery rate in mineral
exploration and the quality of discoveries without relying on substantial increases
in exploration expenditure. This specialized unit will run on PPP mode and draw
experts from both public and private sectors.
ii. The NCMT will have complete access to the NGDR for analysis, interpretation,
research and guidance to exploration agencies.
iii. An annual support of about Rs. 300 crores for the first five years by the
Government would be required.
7. Prioritization of mineral commodities in regional and detailed exploration
i. The priorities can be defined in terms of strategic importance, trade deficit and
high forex value of minerals. Accordingly, fertilizer minerals (potash and sulphur),
basemetals, strategic minerals like molybdenum, nickel, tungsten, cobalt,
antimony, tin, rare earths & rare metals (RMRE), lithium, bismuth, selenium,
Platinum Group of Metals (PGE) are to be given priority by government.
ii. As evident from domestic as well as global trends, exploration for gold, diamond
need to be continued.

31
iii. IBM will biennially update its database on strategic and critical mineral
requirement of the country based on the domestic and global supply demand. This
data will be utilised for prioritizing exploration for strategic and critical minerals by
the exploration agencies.
8. Ore beneficiation to utilize leaner grade ore and for strategic requirements.
i. Upgradation of low grade ores and formulation of flow sheets for economical
extraction of strategic byproducts are important areas. The existing Ore dressing
laboratory of IBM with its elaborate infrastructural facility will be geared up for taking
up such projects. This will find application in minerals including REE & RM &
fertilizer minerals, nickel, PGE, low grade base metal etc.
ii. Flow Sheet and Process development for extraction of PGE, REEs and technology
metals which are produced as by-products of base metals (Mo, Re, Te, Se, Ge, Cd,
In, Ga,V, Sc) is an urgent necessity which will be addressed by focussed R&D.
9. Utilization of NMET Funds
The NMET funds could be used for funding of appropriate exploration projects with focus
on generating necessary baseline data, exploration for concealed and deep seated
deposits and prospecting for strategic minerals.
10. Incentives to the Private Sector
i. The Government will develop model contracting procedures and standard
agreement templates under which either the Central Government or State
Governments and their agencies can engage private sector expertise for specific
tasks in exploration.
ii. Provisions in the tax laws will be proposed to include special allowances to cover
infructuous or abortive exploration expenses in respect of any area surrendered
prior to the beginning of commercial production.
iii. The tax incentives in respect of prospecting for minerals should be on par with that
available for prospecting of mineral oils.

32
ANNEXURE-I
FINANCIAL REQUIREMENTS FOR UNCOVER PILOT PROJECTS
The seismic acquisitions and absolute age dating for the two proposed pilot projects viz.,
(i) Khetri to Bundelkhand Craton and (ii) Across Western Dharwar Craton to Eastern
Dharwar Craton approximately cost around 53 crores. This figure excludes the
expenditure of GSI for covering NGPM, NGCM, Remote Sensing, aerogeophysical,
mineralogical and chemical analysis. The break-ups of financial requirements are as
below:
Deep Seismic Reflection Survey: The average cost of DSRS is $6,000/ km or $60,000-
70,000 per day and the factor of 20-30% to the acquisition cost for this as it takes skilled
people and advanced software. A standby rate of 80% the day rate to account for
weather malfunctions etc to be included separately. The mobilization and demobilization
costs very much depend on a job, but could be from 1 to 5 days at 80% the day rate.
With all these, approximately, $1,00,000 per day or $10,000 per km may be considered
for DSRS as per the expenditure values of Geoscience Australia.
Acquisition of DSRS will cost Rs. 23.5 crore (AUD 10,000 x Rs. 47 x 500 km) for a 500
km transect. Other parameters like the safety of geophone cables (14 km length), traffic
moderation during acquisition, avoiding settlement areas, extra care of machinery are to
be included in Indian condition.
Magnetotelluric Survey: The audio MT method images a few km deep and costs $800
to $900 per station. The Broadband MT (BBMT) method images the mid and upper crust
(up to 20km deep) costs $1,500 per station. The long period MT needs deep crust and
mantle (~70km) and these cost $3000 per station. A combination of MT survey stations
need to be planned as per the mineral target and subsurface geology. Most surveys in
advanced countries are 5km sample spaced (BBMT) with 30km being a long period
sounding.
A combination of 100 nor. Deep MT; 100 nor. BBMT; and 100 nor. audio MT with 5km
separation for 500 km would cost;
$900 x Rs 47 x 100 stations = Rs. 42.3 lakh
$1500 x Rs 47 x 100 stations = Rs. 70.5 lakh
$3000 x Rs 47 x 100 stations = Rs. 141 lakh
TOTAL = Rs. 2.53 crore.
Consideration of proper spacing requires thorough geological requirement of the terrain.
SHRIMP Dating: Costs for high quality U-Pd SHRIMP analysis is $ 8000 per sample,
which includes a full data report and interpretations as per Geoscience Australia
standards. Suitable suites of acidic rocks containing zircons need to be dated for 4D
mapping. Analytical cost for dating of about 15 suites (15 x $8000 x Rs 47 = Rs. 38 lakh.)
of one pilot area would be around 38 lakh.

33
ANNEXRURE-II
EXPLORATION FOR STRATEGIC MINERALS
The demand for technology and strategic minerals (Tin, Cobalt, Lithium, Germanium,
Gallium, Indium, Niobium, Beryllium, Tantalum, Tungsten, Bismuth & Selenium, Mo, Ni etc.)
is growing at a faster pace. Studies indicates that for India cobalt, germanium, molybdenum
and tungsten are the strategic minerals in the higher risk bracket. There is a significant
amount of import dependence for procurement of these materials.Hence, focused efforts are
needed to augment the mineral reserve/resource base of the country in terms of their
strategic significance for its use in high technology and defense industries in the coming
years.
Strategic minerals/metals occur usually in very low concentrations (<1%) in rocks. Hence,
these are difficult to locate and identify by normal megascopic and microscopic techniques,
which are used in identification of rock–forming minerals that occur in major to minor
quantities (>1%). Therefore, these mineral commodities need to be explored with modern
concepts and tools for possible breakthrough requiring high investments in sophisticated
survey and spatial data management technologies to produce more detailed data and
information of areas and depths so far unexplored. Specific and high precision laboratory
studies aimed at guiding and substantiating field studies pertaining to ore localization are the
need for success exploration for strategic minerals.
Exploration efforts are needed to be focused in various potential geological environments in
India. Major exploration activity to be concentrated in the Metallogenic Provinces located in
the Peninsular region which is the most important domain so far as mineral resources are
concerned. The areas which warrants accelerated exploration efforts include the in the
Precambrian terrain in order to search for RMRE search in Alkaline syenite-carbonatite and
pegmatite settings reported from different parts of the country needs further studies for their
viability including beneficiation of such ores. Concentration of REE elements may also be
studied in the bauxite deposits of the country. Regional and semi-regional studies including
integrated geological/geophysical and geochemical surveys for rare metal and REE
mineralization in albitite zones especially in Khetri Belt. The major cratonic blocks viz,
Bundelkhand, Dharwar Bastar and Singhbhum needs to be probed fully for Sn-W-Mo
association within acid magmatic rocks. Focus should also be on Quaternary sediments to
find presence of concentration of gold, tin, diamond, etc. in riverine placers and monazite,
ilmenite, rutile, etc. in beach placers, and bauxite as cappings.
‘RARE-METAL AND RARE-EARTH MINERAL RESOURCES’ (RMRE)
The Rare earth elements (REE) are characterized by high density, high melting point, high
conductivity and high thermal conductance. These unique properties make them
indispensable for a variety of emerging and critical technology applications relevant to India‟s
energy security. Generally the light rare earth elements are more common and more easily
extracted than heavies. In spite of its low atomic weight Yttrium has properties more similar
to the heavy lanthanides and is included with this group. Scandium is found in a number of
minerals although it may also occur with other rare earth elements (REE).The principal
sources of rare earth elements are the minerals bastnäsite, monazite, and loparite and the
lateritic ion-adsorption clays. The ever increasing demand for these RM and REE
necessitates a concerted effort to augment the resource position of our country. The Atomic
Minerals Division (AMD) of the Department of Atomic Energy has been actively engaged in
the exploration of such mineral deposits in different parts of our country. The Geological

34
Survey of India, as a part of routine mineral survey, has been carrying out preliminary
investigation for identifying such RM and REE rich zones in selected sectors.
GEOLOGICAL ENVIRONMENTS SUPPLYING REE RESOURCES
Deposits that supply rare earth resources can be divided into two categories; igneous
deposits formed by igneous rocks or associated hydrothermal activity and weathering
deposits created from weathered rocks . Examples of igneous deposits include carbonatite
deposits, alkali rock-related deposits, and hydrothermal iron deposits. Carbonatite which is
an igneous rock consisting mainly of carbonate mineral is an important source of REE
resources.
Objectives:
Identification of HREE deposits and of REE minerals are two of the challenges facing
research on REE deposits. The first challenge is to identify and discover deposits capable of
supplying HREE, which are relatively rare compared with LREE. We also need to study
deposits that may be enriched in HREE, such as alkali rocks and placer deposits. The
second challenge is to clarify the existence form of REE minerals, and quantitatively
evaluate them. Although REE are contained within a variety of minerals, the majority of
silicate minerals are difficult to utilize as resources, hence there is a need to explore REE
deposits that are suitable for mineral processing and refining, and extractable economically.
Resolution of the above issues will lead to the development of more REE deposits.The
present investigation strategy of GSI for search of Rare Metal/Rare Earth Elements
(RM/REE) mineralisation includes identification of zones of anomalous concentration of
RM/REE elements on the basis of Base Line Data Generation (STM & NGCM) and
delineation of target zones for enhanced potential through reconnaissance stage
investigations. If enhanced potentiality is established in the area, follow up investigation
under prospecting stage is carried out. Besides, GSI is trying to collect and examine the
chemical and other data generated from the past mapping and investigation reports for
locating suitable target areas for further search of REE. In India, monazite is the principal
source of rare earths and thorium. AMD has been carrying out its resource evaluation for
over five decades. It occurs in association with other heavy minerals, such as ilmenite,rutile,
zircon, etc. in concentrations of 0.4 - 4.3% of total heavies in the beach and inland placer
deposits of the country. Though Mineral Commodity Summaries 2010 shows the Indian
production as 2700 tonnes & reserves as 3.1 Million tonne, however, as per Department of
Atomic Energy, Mumbai the production of rare earth in India in 2008 was only 35 tonnes
while estimated reserves has increased to 10.21 million tonne.
Geological provinces in India favorable for RM/REE mineralization, is as follows:
(i) RM/REE mineralisation in pegmatites and quartz veins
• Nellore Mica Belt, Andhra Pradesh
• Bihar Mica Belt, Jharkhand
• Bhilwara mica belt, Rajasthan
• Sausar belt (in skarns) in central India
• Tin belt of Orissa and Chhattisgarh
(ii)RM/REE in carbonatite complex
• Newania carbonatite-fenite complex, Udaipur district of Rajasthan.
• Ambadongar carbonatite complex, Gujarat.
• Purulia carbonatite, West Bengal.

35
• Sung valley Ultramafic Alkaline carbonatite complex, East Khasi HillsDistrict,
Meghalaya.
• Carbonatite and molybdenum bearing areas in Tamil Nadu.
•Mundwara alkalic carbonatite complex in Sirohi district, Rajasthan.
(iii) RM/REE in igneous complexes
• Alkaline rocks in Rajasthan.
• Nepheline syenite of Kishangarh, Ajmer district, Rajasthan.
• Around Sirohi, Sirohi district, Rajasthan.
• Granite plutons within Erinpura Granite Terrain.
• Jalore and Sewaria granitoid terrain in Rajasthan.
• Chhotnagpur Gneissic Complex in Jharkhand.
• Bundelkhand Granitoid Complex.
• Gneisses and granites in the western part of the North Purulia Shear
Zone,Jharkhand
(iv)REE enrichment in laterites
• Jharkhand – Eastern India
• Orissa – Eastern India
• Laterites developed over Deccan Traps in Gujarat – Western India
Hence, a detailed RMRE exploration needs to be carried by adopting the following:
 Meeting the gap between state-of-the-art academic knowledge in REE Geology and
current field exploration practices as adopted by China/Australia to create efficiency.
 Knowledge enhancement by exposing the practicing geoscientists to new and recent
developments in fundamentals of REE Mineralization.
 Knowledge pooling by enabling direct or indirect interaction amongst related fields,
national and international experts to create synergy and higher level of understanding
and efficacy.

36
ANNEXURE-III
DIAMOND EXPLORATION ACTIVITIES
India, has traditionally been a major centre for cutting and polishing of diamonds
produced in the world. The Indian diamond industry, because of high skills of the artisans
and cheap cost of labour, has an edge over other countries. The gem and jewellery
industry expanded vastly in the 1980s, employingnearly3.4 million workers in the Gem &
Jewellery sector, of which about 80% is engaged in diamond cutting and polishing
industry consuming about 60% by value and 85% by volume of the annual world
production of around 150 millions carats (Mct).The geographical distribution of Indian
diamond industryis mainly confined to Gujarat (Surat-Jaipur) and Mumbai region, with a
negligible presence in Panna district of Madhya Pradesh. With over a million strong
workforce and deployment of the latest technology, India continues to be the dominant
player in the world‟s diamond cutting and polishing industry.
The indigenous production, around 80,000 carats/year, comes from a single mine
developed over Majhgawan pipe and a small production from the gravels and the
conglomerates, all located in the Panna Diamond Belt in Madhya Pradesh. The
production is insignificant and does not even meet 0.1% requirement of rough diamonds
for the cutting and polishing industry. The country‟s requirement of rough stones is totally
met through imports.
The overall gross export of Cut & Polished diamonds 2014-15 is at Rs.1,48,073 crores ,
while the imports for the same period is Rs.1,25,680 crores . The projected demand –
supply gap of global rough diamonds is set to increase, as no new major discoveries
were made in the last decade apart from Bunder deposit of MP.
In order to lessen our dependence on imports of diamond and increase the domestic
production, the Government of India has been laying emphasis over the last few plan
periods, on assessing the potential of known resources and developing a strategy for
search of kimberlites and lamproites in geologically favourable areas by employing state-
of-the-art techniques. Diamond occurrences in India are quite widespread. Information on
the ancient diamond mines and geology of the diamond-bearing strata is mostly available
from the writings of the medieval period European travellers and traders and Portuguese
and British Officials and geologists of the Geological Survey of India (GSI). Systematic
geological details are obtained from the investigations carried out for diamond since
1950s, mostly by the GSI, which were at peak in 1980s with implementation of National
Diamond Project (NDP).
The Government of India, under the aegis of the Ministry of Mines implemented the NDP
with the cardinal objective of assessing diamond potential of the known primary and
secondary deposits and evaluating them. It was a collaborative programme implemented
by GSI – MECL – NMDC, with GSI as the lead agency, in two states viz., erstwhile
Andhra Pradesh (AP) and erstwhile Madhya Pradesh (MP). The project work was carried
out in two phases, during 1980-87 in AP and during 1980-88 in MP. The Department of
Mines and Geology, Government of AP was also associated with the project in AP for a
short period. After completion of the NDP, GSI continued its efforts to locate primary
source rocks for diamond and to assess diamond potential of the unexplored primary and
secondary resources, beyond NDP. The State Geology and Mining Departments of
Chhattisgarh (formerly part of Madhya Pradesh) and Orissa and NMDC also participated
in diamond exploration independently from time to time. After liberalization of the National
Mineral Policy in 1990s, many Indian and multinational companies that have staked

37
claims in several States, started their exploratory operations in right earnest. Efforts of all
the organisations resulted in discovery of a few kimberlite/lamproite bodies in the already
known fields and also a few bodies in virgin areas. The efforts of GSI supported by public
and private agencies resulted in locating numerous kimberlites and lamproites in the past
two decades. However, the most significant achievement has been Rio Tinto‟s discovery
of a diamond deposit at Bunder in Chhatarpur district of Madhya Pradesh. This discovery,
with an estimated diamond resource of around 27 million carats (Mct) is the world‟s
largest diamond discovery in the last decade. This has the potential of providing around
3.0 Mct of rough diamonds annually for the next 8 to 10 years, starting from 2016. To cut
on import dependence and augment indigenous rough diamond supply, the Government
agencies like GSI and other public sector agencies continue to give priority for regional
diamond exploration programmes.
India’s Worry: According to Gem & Jewellery Export Promotion Council (GJEC), India
spends ~ $10 per carat on the polishing and cutting of diamonds, against China‟s ~ $17.
Expectedly, India wants to retain this edge. But the fact that China itself is a major
consumer of polished diamonds besides Hong Kong, US and India is adding fuel to the
ongoing fire. There is acute shortage of rough diamond supply to support global demand
with emphasis on indigenisation of cutting and polishing sector by African governments.
This has resulted in reduced supply of uncut diamonds by African producers to both India
and China who are competing for the same supply sources. China‟s proactive
engagement in the African continent has resulted in the increase by 20% in rough
diamond imports even though the global supply fell by 3% between 2006-11. China is
making every effort to modernise its cutting and polishing industry and make it
competitive.
Hence, to retain the traditional monopoly of Indian Diamond Industry, there is strong need
to modernize and enhance the diamond exploration activities in the country to leverage
the significant potential for new diamond resources. This only can ensure the guaranteed
supply of rough diamonds to our industry and help retain its traditional top slot in the
global diamond industry and support its 3.4 million completely dependent manpower.

38
ANNEXURE-IV (1)
RAW DATA FORMAT
Drill hole locations.
Downhole assays.
Downhole survey data.

39
Downhole lithology (geology)
Downhole -structure, veining, weathering, etc
Surface geochemistry

40
ANNEXURE-IV (2)
Data Types
Acceptable formats for digital data
Data Type Description Format Suffix
Tabular data Point locations,
geochemistry,
heavy mineral,
diamond
indicator and
drilling data
Delimited ASCII .txt
Report text Documents,
figures etc.
previously
provided only in
hardcopy
Adobe Acrobat with
Text editable
.pdf
Figures and
photographs
not embodied
in report text
Figures, core
photographs,
aerial photographs
etc.
Adobe Acrobat
GEOTIFF/TIFF
(colour)
JPEG
GIF
PNG
.pdf
.tif
.jpg
.gif
.png
GIS data Maps Files of maps,Plans WGS 84 .shp
Geophysics Raw and processed
located data and
gridded data. For
example, magnetics,
radiometrics, EM,
DTM and gravity
data
ASEG GDF2
ASEG GXF
ER Mapper grid
XML (including
schema)
gdf
.gxf
.grd, .ers
.xml, .xsd
Geophysical
and other
remotely
sensed images
Images derived
From geophysical/
remote sensing
surveys, e.g. TMI,
Bouguer,
radiometrics,
Landsat 5 or 7
GEOTIFF/TIFF
(colour)
TIFF (greyscale)
Compressed ER
Mapper
JPEG
GIF
PDF
PNG
.tif
.tif
.ecw
.jpg
.gif
.pdf
.png
Geophysical
Inversion and
Numerical
Modelling
Models Points (DXF or
ASCII)
Images
Surfaces
3D grids
.dxf
.txt
.pdf
.tif
.jpg
.gif
.pnf
.dxf

41
Data Type Description Format Suffix
Petrophysical
and
geophysical
log data
Raw and
processed
wireline and
MWD data
(for further
information, see
petroleum data
submission
guidelines at
DLIS
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42
ANNEXURE - V
A CONCEPT NOTE FOR CREATION OF
NATIONAL CENTRE FOR MINERAL TARGETING
Over the last two decades, the rate of new mineral discoveries of
economic significance has reduced steadily despite extensive regional mineral
exploration work by the Geological Survey of India and several other
organizations including MECL. There has been growing concern on sustainability
of raw material security in respect of strategic minerals of elements like
Tungsten, Molybdenum, Cobalt, Nickel, Lithium, Boron, Rare Earths, Platinum
Group of Elements, Vanadium, Niobium-Tantalum, Potash and mineral ores for
obtaining energy critical element like Gallium, Germanium, Selenium, Indium and
Tellurium. The latter set of elements play vital role in generation of „clean‟
energy.
2. The availability of mineral resources in respect of several other mineral
commodities has shown some upward swing in India, largely due to sustained
„brown-field‟ exploration activities notably in the lateral and depth-ward
exploration of the already working mines such as lead-zinc in Agucha (Pb-Zn),
lead-zinc-silver in Rajpura-Dariba (Pb-Zn-Ag), copper (Cu) in Khetri and iron ore,
bauxite, coal and limestone in already known mineral belts. Despite a substantial
increase in resource base shown in the mineral inventory prepared by the Indian
Bureau of Mines, the augmentation of resources in „green-field‟ terrains is largely
of lower grades or smaller tonnage that are not presently economically viable for
opening mines (Appendix-I). As a result, barring a medium tonnage Pb-Zn
deposit of Kayar in Ajmer district of Rajasthan, there have been no new mines of
gold, lead, zinc, copper, phosphorite, manganese, diamond and tungsten
opened since more than last twenty years. Indeed the number of mines reporting
production has decreased over the last couple of years. The contribution of
mineral industry to the India‟s GDP has also decreased since last five years and
presently it hovers around two per cent (Ministry of Mines, 2014-15).
3. It is notable that India‟s known mineral deposits and working mines are
located in hilly tracts where it was possible to make geological observations and
sampling of prospective mineralized rocks. Ancient mine pits have also played
important role in discovering mineral deposits. Indian exploration agencies have

National mineral exploration policy(nmep)basepaper

National mineral exploration policy(nmep)basepaper

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