Presents

GROUP 2/2A MAINS

NATURAL RESOURCES
DEPARTMENT

POLICY NOTES

“ஒரு நாள் ஒரு தலைப்பு ஒரு தேர்வு ஒரு GROUP 2 பதவி உங்களுக்கு"

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

Policy note:
Natural resources department
Syllabus:
Group 2A: Minerals: distribution and production of iron ore and bauxite;
Group 2: Minerals: iron ore,manganese, copper, bauxite, gold, silver, mica, coal, petroleum and natural
Gas

1. DEPARTMENT OF GEOLOGY AND MINING

1.1 Introduction
 Minerals play a vital role in theeconomic and infrastructure development ofa Nation.
 Tamil Nadu has varied geologicalrock formations and geomorphologicalfeatures.
 These rock formations contain
i) Major minerals like Limestone, Lignite,Magnesite, Vermiculite, Bauxite, Iron ore,
ii) Critical minerals like Graphite, Molybdenum, Platinum group of minerals, Rare
earthelements,
iii) Atomic Minerals like Ilmenite, Rutile, Garnet, Leucoxene, Monazite,
Zircon,Sillimanite,
iv) Petroleum and Natural Gas,
v) Minor minerals like Black Granite,Multi Colored Granite, Rough stone, Clay,
Gypsum, Silica Sand, Quartz, Feldspar,
vi)common use minerals like Gravel and Brickearth.
 Tamil Nadu is one among the mineralrich States in the Country and it has multiplemineral
resources in many parts of theState.
 The development of these mineralresources has resulted in rapid
industrialization of the State.
 In order toensure regular supply of minerals toindustries and general public, timely grant
ofmineral concessions by adopting scientific
exploration and eco-friendly methods, isindispensable.
 The mineral resources arenon-replenish able and hence it is imperative that the minerals should
be scientificallyquarried for the conservation of mineral forposterity, combined with effective
mineraladministration to achieve optimum mineralrevenue

1.2 Objectives
i. Use of modern technologies in the exploration of minerals.
ii. Augmentation of revenue through effective and efficient administration of minerals.
iii. Generation opportunities of employment

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

iv. Prevention of illegal mining and transportation of minerals by improving enforcement through use
of technology.
v. Implementation of projects for the welfare of the society in the areas affected by mining using
DistrictMineral Foundation Trust Fund.

1.3 Functions

 The primary function of the Departmentis mineral administration, i.e., grant ofmineral concessions
and regulating theproduction and transportation ofminerals.
 Mineral Concessions aregranted to applicants who could be
individuals, partnership firms, privatecompanies and public sector
undertakings.
 PSUs such as TAMIN,TANCEM, TANMAG, Neyveli LigniteCorporation India Limited
(NLCIL),Indian Rare Earths (India) Limited have
been granted leases for minerals suchas Granite, Graphite, Lime stone,
Magnesite, Lignite, Dunite and heavyminerals.
 Revenue is collected in the form oflevies such as royalty, surface right
compensation from the lessees ofmajor minerals; seigniorage fee, dead
rent, area assessment, annual brickmineral fee are being collected from
the lessees of minor minerals.
 Exploration of new mineral deposits isbeing carried out through GeologicalSurvey of India (GSI)
and notifiedagencies such as Mineral ExplorationCorporation Limited (MECL),Kudremukh Iron Ore
Corporation
Limited (KIOCL), Tamil Nadu CementsCorporation Limited (TANCEM), TamilNadu Magnesite
Limited (TANMAG) andTamil Nadu Minerals Ltd (TAMIN).
 For effective control of illicit mining andtransportation of minerals, apart frominspections by district
level officials,flying squads operating in the regionsof Salem, Villupuram, Tiruchirapalli
andMadurai are regularly monitoring themining areas and vehicles transportingminerals.
 In view of the sensitive eco-system,mining activities are not permitted in
the hill areas of Kodaikanal in Dindiguldistrict and the Nilgiris district.

1.4 Mineral Resources of Tamil Nadu

 Tamil Nadu is endowed with variousmajor minerals, minor minerals, oil andNatural Gas. These
minerals are detailedbelow:

A. Major minerals
Limestone:
 It is used inmanufacturing of lime,cement, chemicals,and fertilizers and inmetallurgical industries.

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

 It is of two types.
a) Crystalline Limestone, which mainlyoccurs in Salem, Tiruchirapalli, Karur,Dindigul, Madurai,
Virudhunagar, Coimbatore and Thoothukudi Disticts.
b) Non Crystalline Limestone Fossiliferous or Limestone occurs predominantly Tiruchirapalli,
Ariyalur, and Perambalur
Lignite:
 This energy mineral is foundin three areas namely Neyveli,Mannargudi and Ramanathapuram.
 The total reservesof Lignite inthese areas isestimated at34,764 million tonnes.
 The Neyveli LigniteCorporation India Limited (NLCIL) hasbeen mining Lignite in Neyveli over
anextent of 25,900 hectares in Cuddaloredistrict.

Marl:
 Marl is a sedimentary rock withmixed composition consisting of
carbonates.
 It is a material rich incarbonate minerals, clays and silt.
 It is used in theof manufacturing fertilizers and cement.
 It occurs as a sedimentary deposit in association with fossil ferrous limestone in Ariyalur district.
Magnesite:
 It is a magnesium carbonate mineral.
 It finds wide use in refractories as flux in sintering, blast furnace,
conditioners, ceramic filters and abrasives.
 One of the World’s best Magnesite deposit occur in the Chalk hills
of Salem district.
 Three leases are under operation over an extent of 192.86.0 ha.
Vermiculite:
 It is a micaceous mineral, which appears brownish yellow in color.
 It is used as insulators and in manufacture of vermitiles.
 TAMIN is mining this mineral over an extent of 23.70.5 ha in Sevathur village, Tirupathur district.
Bauxite:
 Aluminium is extracted from this ore.
 Bauxite is also used in refractory, cement, chemical, paint industries and in refining petroleum
products.
 The Shervaroy hills in Salem district and Kolli hills in Namakkal district
contain good deposits of Bauxite.

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

B. Critical Minerals:
Graphite:
 It is a naturally occurring crystalline Carbon used in crucible industry, insulators, electrode, atomic
reactors and foundry units.
 Graphite occurs mainly in Sivaganga and Madurai districts.
Molybdenum:
 Molybdenum occursmainly in Dharmapuri and Krishnagiri Districts.
 It is used to make alloys to increase strength, electrical hardness, conductivity and resistance to
corrosion and wear.
Platinum Group of Elements (PGE)
 The Platinum group elements are Osmium, Iridium, Ruthenium,
Rhodium, Platinum and Palladium.
 Platinum group of elements occur in Namakkal district.
 Platinum (Pt) is the most popular element of PGE.
 The Platinum group metals are a family of six structurally and chemically similar elements that are
most valued for their wide range of industrial, medical, and electronic applications.
 Platinum is probably the most recognized because of its use in jewellery,
but its main application is in the manufacture of catalytic converters.

Tungsten:
 It is a rare metal found naturally on earthalmost exclusivelyas compounds withother elements.
 It is used inany electrical and electronic applications.
 It is used in the form of tungsten carbide for very hard and tough dyes, tools, gauges and bits.
 Tungsten is used mostly in the production of tungsten steels and in
the aerospace industry to fabricate rocketengine nozzle throats and leading-edge reentry surfaces.
Tungsten occurs mainly in
Madurai district.

C. Atomic Minerals:

 Beach sands in Tirunelveli, Thoothukudi and Kanniyakumari districts

contain atomic minerals such as Monazite, Garnet, Ilmenite, Rutile, Sillimanite, Zircon and
Leucoxene.
 Beach sand minerals are used as abrasives, semi-conductors, and in
atomic reactors. The Indian Rare Earths (India) Limited has been mining these minerals in
Kanniyakumari district.

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

 Garnet also occurs as placer deposit in Tiruchirapalli district and as rock forming deposit in Madurai
district.
 The Ministry of Mines, Government of India, vide order dated 01.03.2019 notified the threshold
value of Monazite occurring in beach sand minerals and other placer deposits as 0.00%.
 Henceforth, any mineral concession of beach sand minerals shall be granted to a “Government
Company or Corporation owned or controlled by the Government” under the provisions of the
Atomic Minerals
Concession Rules, 2016.

D. Minor minerals
Granite:
 Tamil Nadu contains rich deposits of Granite.
 The hard crystalline rocks that are amenable to cutting and polishing are called Granite.
 Granite which are produced in different sizes such as monuments and tiles has hugemarket in the
foreign countries, earning substantial foreign exchange.
 Black Granite occurs in the districts of Krishnagiri, Dharmapuri, Salem, Villupuram and
Tiruvannamalai.
 Granites of various shades occur in the districts of Krishnagiri, Madurai, Virudhunagar, Salem and
Dindigul.
 Some of the most popular commercial varieties quarried in Tamil Nadu are Kunnam black, Zebra
white, Paradiso, Red wave, Tiger skin,
Desert brown and Kashmir white.
 A total of 38 black granite and 74 multicolored granite quarries over an extent of 329.86.0 ha are
under operation in Tamil Nadu.

Fire Clay:
 The main use of fire clay is in refractory, ceramic articles, cement industries and as decorative tiles.
 It is found in the districts of Ariyalur, Perambalur, and Cuddalore.
 11 leases are in operation over an extent of 44.413 hectares land.

Quartz and Feldspar:

 The districts of Salem, Karur, Dindigul, Namakkal, Tiruppur and Dharmapuri have good deposits of
Quartz and Feldspar.
 It is mainly used in glass, refractory, foundry, ceramic, electrical, abrasives and paint industries.

1.5 Mineral Revenue

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

 The revenue generated from the mineral resources during the financial year 2023-24 is Rs
1835.93 crore.
 Due to effective enforcement, during 2023-24, 5245 vehicles transporting minerals without valid
transport permits were seized.
 A penalty of Rs.17.43 crore was collected.
 In addition, 3891 criminal cases / FIRs have been filed.
 Goondas Act has been invoked against 4 habitual offenders.

1.6 District Mineral Foundation Trust

 The District Mineral Foundation Trust was established in all the districts except Nilgiris in the
year 2017.
 Lessees are required to contribute 30% of the royalty/seigniorage fee for leases granted prior to
12.01.2015 and 10% for leases granted subsequently, as a levy to this fund.
 It is utilized for the implementation of the welfare schemes for the socio-economic and
infrastructural development in order to improve the livelihood of the people and the areas
affected by mining activities.
 So far, Rs. 1471.10 crore has been contributed by the lessees from the period of establishment of
this Trust in 2017 till 31.03.2024.
 A minimum of 60% of the fund is earmarked for taking up projects under the high priority
sectors such as health care, drinking water, education, welfare of women and children, welfare of
aged and differently abled people, skill development, infrastructure, sanitation, environmental
preservation and measures to control pollution.
 The remaining fund is used for projects that fall under other priority sectors such as irrigation
development, energy and watershed development, environmental preservation and pollution
control measures.
 A total of 3164 projects have been taken up so far at a cost of Rs. 1027.98 crore.
 Out of these projects, 2017 have been completed and put to use

1.7 National Mineral Exploration Trust

 The National Mineral Exploration Trust was established in 2015.

 The lessees of major minerals have been contributing 2% on royalty to this Trust.
 A sum of Rs. 87.12 Cr has been contributed by them to the Trust till 31.03.2024.
 This fund is utilized for exploration of minerals regionally and particularly for strategic and
critical minerals, development of mineral resources, extraction of minerals by adopting modern
scientific and
technological methods, facilitate geophysical, geochemical, aerial geo-survey of mineral
potential areas and to organize capacity building programs.

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

 Recently, the NMET have approved the exploration projects submitted by Mineral Exploration
and Corporation Limited for Gold, REE in Krishnagiri and Tiruppur districts and the exploration
project for Graphite in Arasanur East block submitted by the Kudremukh Iron Ore Company
Limited.
1.8 E-Auctioning of Major Minerals
 After the enactment of the Amended Mines and Minerals (Development &Regulation) Act,
1957, grant of mineral concessions for major minerals are through e-auction.
 The area proposed for auction has to satisfy the norms specified in the
Minerals (Evidence of Mineral Contents) Rules, 2015. Accordingly, 10 limestone blocks have
been identified in Ariyalur and Cuddalore districts for auctioning of mining lease.
 The Department has published NIT on 04.03.2024 in accordance with Mineral Auction Rules,
2015 and the tender is under process.
 It is expected that substantial revenue will be generated on successful
completion of e-auction process.
 New mineral blocks of Gold and Limestone have been identified and Geological Reports have
been submitted by the exploration agencies.
Auction of these blocks will also be taken up by the Department shortly.

1.9 NEW INITIATIVES:

(i) e-Auctioning of Minor Minerals:

 Granting of mining leases for the major minerals by e-auction system is already in existence.
 However, the quarry leases for minor minerals including rough stones and granites in poramboke
lands are presently being granted through a manual tender cum auction procedure which causes
undue delay
in completion of the process.
 In order to expedite the process for granting quarry leases and to ensure transparency, it is
proposed to adopt the e-Auction procedure
to grant quarry leases in poramboke lands.
 During the budget session, the Hon’ble Minister has announced that e-auction system will be
extended to the minor minerals by making necessary amendment in the Tamil Nadu Minor
Mineral Concession
Rules, 1959 and the same is under process.
 Training program was also organized for district officers on conducting e-auctions through NIC.

(ii) Restoration of old abandoned mines and quarries, for public

utility.

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 NATURAL RESOURCES DEPARTMENT ENGLISH POLICY NOTES

 A Green Fund has been constituted in all districts for

reclamation, restoration and rehabilitation of abandoned mines
and quarries
 The Government have initiated collection of green fund at 10% and 50% of seigniorage fee
remitted by the lessees and is being collected in all the districts.
 Green fund collected up to March 31, 2024 is Rs 125.01 Cr.
 By using green fund, efforts are being taken to bring the abandoned mines / quarries in the State
to public utility.
 Presently, 720 abandoned quarries have been identified and in the first phase, abandoned
quarries in Kancheepuram and Chengalpattu districts will be taken up for restoration,
reclamation, and rejuvenation by using green fund.
 Feasibility study for assessment of the adoptive re-use of the abandoned quarries in
Kancheepuram and Chengalpattu districts
will be carried out for the same.

(iii) Granite waste disposal:

 The Government have made provisions for selling granite waste by inserting sub rule 8-C (11) of
Tamil Nadu Minor Mineral Concession Rules, 1959.
 The rate of seigniorage fee for granite waste has been fixed at Rs.100/- per tonne.
 The Government Natural Resources Department have issued guidelines for Standard Operating
Procedure (SOP) for disposal of granite waste from the existing and expired leases in
Government lands granted under Tamil Nadu Minor Mineral Concession Rules, 1959.
 Granite waste accumulated in expired Granite quarries in Government
lands have been estimated by using Drone Technology, by the empaneled agencies and the
Granite waste will be auctioned shortly
as per the G.O. and SOP.

(iv) Fossil Geological Park
 Fossils are the preserved remains or traces of animals, plants, and other organisms from the
remote past.
 Ariyalur and Perambalur districts are enriched with rich fossiliferous deposits and considered to
be geological hotspots.
 These formations consist of pockets of phosphatic nodules and fossils like Ammonites, Nautilus,
Belemnites, etc.
 It attracts large number of scientists from all over the world for geo-scientific studies and
therefore it is imperative to protect and
preserve these formations to study about life through ages and needs to be conserved for
posterity.

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(v) DGPS and Drone Survey Technology

 Twenty three agencies have been empaneled for conducting Differential GlobalPositioning
System (DGPS) survey for the existing / proposed mines / quarries to demarcate the lease area.
DGPS survey has been completed in 1132 mines/quarries.
 In order to prevent illicit mining/quarrying in the State, the Government has sanctioned an
amount of Rs. 25 crore as recurring expenditure for measuring the volume and extent analysis of
the mines and quarries using drones.
 So far, the Department has empaneled agencies for surveying the quarries/mines using drones.
 In the first phase drone survey has been completed in 200 quarries
and the reports are under scrutiny by Tamil Nadu Unmanned Aerial Vehicle Corporation.
(vi)Mineral Management System
 The development of software for Mineral Management System (online Mineral Administration)
was entrusted to the Tamil Nadu e-Governance Agency.
 TNeGA has developed 16 mineral concessionmodules which facilitates online receipt of quarry
lease applications, tracking of lease applications, scrutinizing and granting of lease applications.
 The online system for minor minerals, both mineral management system and epermit will be
made live shortly.
 Initially, the e-permit system for obtaining bulk permits has been launched on trial basis
inChengalpattu and Kancheepuram districts.
 Further, issuing of online bulk permits will be launched in Villupuram, Tiruvannamalai,
Dharmapuri and Krishnagiri districts in the
next phase.
 Action is being taken to enable generation of e-dispatch slips on security paper by the lessees, for
which printing of paper with security features has been entrusted to the Government Printing
Press.
 The Government have accorded sanction for an amount of Rs.3.78 crore for issuing e-permits
with security feature for transporting minerals

2. TAMIL NADU MINERALS LIMITED

 TAMIN’s endeavor is to exploit prudently the available natural resources and market them
profitably.
 The main objective of TAMIN is production and marketing of minor
minerals like black granite, multicolor granites blocks, granite finished products and major
minerals like Graphite, Limestone
& Vermiculite.
 TAMIN is the largest producer of natural graphite flakes in India.

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 TAMIN is the only authorized manufacturer of Indian Standard Sand popularly known as Ennore
Sand which is used as a reference material
for quality testing by every cement company in India

3. TAMIL NADU MAGNESITE LIMITED

 Magnesite Mineral ore is an essential raw material for manufacturing Refractory bricks used by
Steel Industry.
 India ranks 9thamong the Magnesite producing countries in
the world.
 Salem Magnesite Reserve is famous for its molecular structure and is
suitable for manufacturing refractory bricks.
 Tamil Nadu Magnesite Limited (A Government of Tamil Nadu Undertaking) was formed in the
year 1979

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