Section 8 of MMDR : Section 8: Periods For Which Mining Leases May Be Granted Or Renewed

Explanation using Example

Imagine a company, RockSolid Mining Inc., has discovered a significant deposit of bauxite, which is listed in Part A of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957. They apply for a mining lease to extract this mineral. According to Section 8 of the Act, the lease they're granted can be for a maximum of thirty years but not less than twenty years, ensuring they have ample time to extract the mineral resources efficiently.

After two decades, RockSolid Mining Inc. finds that the bauxite deposit is still abundant and wishes to continue their operations. They apply for a renewal of their mining lease. In line with the Act, they can get a renewal for up to twenty years, but they need the Central Government's approval to do so.

During their operations, if RockSolid Mining Inc. uses coal or lignite for their own power generation (captive purpose), the Act allows them to sell up to 50% of the total coal or lignite they produce in a year, after fulfilling their own power plant's needs. This sale is subject to certain conditions and additional payments as specified in the Sixth Schedule of the Act, and these terms can be modified by the Central Government if needed.