Diamond Mining in Panna

• 16 Sep 2024

Why in News?

Recently, Panna district in Madhya Pradesh, a well-known diamond mining hub, announced an auction of rough diamonds.

Key Points

• Panna’s Diamond Industry:
  • Panna has been a diamond mining center for centuries.
  • The district’s diamond deposits have dwindled due to over-mining, making large discoveries rare.
  • Mining serves as an alternative income source for the largely tribal population, with modest daily earnings of Rs. 250-300.
• Legal Issues: Most of the remaining diamond deposits are located in protected forest areas, restricting mining activities. The government is exploring legal solutions to expand operations.
  • Mines and Minerals (Development and Regulation) Act, 1957: MMDR Act, 1957 governs mineral exploration and extraction in India. It grants the central government the authority to control mineral resources.
    • When one finds a diamond, notify the local authorities, such as the District Collector or relevant mining department, about the diamond.
      • Comply with regulations under the Mines and Minerals (Development and Regulation) Act, 1957, and the rules set by the Directorate General of Mines Safety (DGMS).
  • Mineral Concession Rules, 1960: These rules provide the detailed procedures for obtaining mining leases and licenses.
    • Diamonds found on government land or within licensed mining areas, rights may belong to the government or the mining leaseholder, subject to the Mineral Concession Rules, 1960.
  • Distinction: Despite land ownership, the extraction of minerals requires separate permits from the government, and ownership of minerals may differ from land ownership.

Mines and Minerals (Development and Regulation) (MMDR) Act, 1957

• Regulation of Mineral Resources:
  • The Act governs the exploration, extraction, and regulation of mineral resources in India, providing the central government with authority to control and manage these activities.
• Licensing and Lease:
  • It establishes the framework for granting licenses and leases for mineral exploration and mining, including procedures for obtaining mining rights.
• Control and Compliance:
  • The Act mandates adherence to prescribed standards and regulations for mineral extraction, ensuring environmental protection and proper management of resources.
• Central Government Authority:
  • The central government has the power to issue directives and enforce regulations related to the development and regulation of mineral resources, including the collection of mineral royalties and fees.