Section 11 of MMDR : Section 11: Grant Of Composite Licence Through Auction In Respect Of Minerals Other Than Notified Minerals

Explanation using Example

Imagine a scenario where a private company, "Future Minerals Pvt. Ltd.", is interested in exploring and potentially mining a non-coal mineral resource such as copper in a particular region of a state. The area is known to have some evidence of copper deposits, but the extent and economic viability of the deposits are not yet fully established.

The state government, as per Section 11 of The Mines and Minerals (Development and Regulation) Act, 1957, decides to grant a composite licence for this mineral through an auction process. Since the evidence of mineral content is inadequate, the company cannot directly apply for a mining lease.

Future Minerals Pvt. Ltd. participates in the e-auction conducted by the state government and wins the bid. The state government then grants them a composite licence, which includes both the right to prospect (explore) and the potential to subsequently mine (if economically viable deposits are found).

The company carries out prospecting operations within the specified period and submits their geological report to the state government. The report confirms the presence of economically viable copper deposits. Consequently, the state government, following the prescribed procedure by the Central Government, grants a mining lease to Future Minerals Pvt. Ltd. for the area they have outlined in their geological report.