The offshore areas mineral (development and regulation) Act, 2002 [OAMDR Act] falling under the purview of the ministry of mines, governs the development and regulation of mineral resources in various maritime zones of India. Recently amended effective August 17, 2023, the act now employs a transparent and non-discretionary auction process for the allocation of operating rights in offshore areas.
Notable changes include the establishment of a trust to address the concerns of mining-affected individuals, enhanced exploration efforts, disaster relief provisions, and the elimination of discretionary renewals. The amendment has standardised lease periods of fifty years, introduction of composite licenses, defined area limits for different operating rights, and facilitating the easy transfer of composite licenses and production leases.
The ministry, focusing on the exclusive economic zone beyond territorial waters, specifically for lime-mud and poly metallic nodules, has identified blocks for potential mining. Seeking input from relevant ministries/departments to avoid project overlap, the ministry is actively considering comments on the allocation of operating rights.
To implement the amended act, the ministry has formulated two draft rules: Offshore Areas Mineral Auction Rules and Offshore Areas Existence of Mineral Resources Rules. These drafts, available for stakeholder feedback until January 25, 2024, on the ministry’s official website, detail norms for exploration of various minerals and deposits.
The Offshore Areas Existence of Mineral Resources Rules draw inspiration from the Minerals (Evidence of Mineral Contents) Rules, 2015, under the MMDR Act. They advocate a minimum G2 level of exploration for considering a block for auction for production lease.
In the case of blocks containing construction grade silica sand and lime mud or calcareous mud, G3 level exploration is acceptable for auctioning a production lease. For the grant of a composite license, the block should undergo exploration up to G4 level or have the mineral potentiality of the block identified.
As reported by the Press Information Bureau, in addition to these rules, the ministry is actively engaged in formulating other regulations under the OAMDR Act, including the offshore areas mineral conservation and development rules, offshore areas Mineral concession rules, and offshore areas mineral trust rules.
