New mining policy in 2 months, says minister

02 August 2007

"Once they give their consent, we will take it to the cabinet. It will take between one to two months," he said.

The new policy is aimed at facilitating private foreign and domestic firms invest in the exploration and mining of gold, diamonds and metals like copper and zinc in the country.

Government officials say only 10 per cent of the country''s land mass has been explored for its mineral wealth, and that mounds of paperwork involved in project clearance and lack of geological data and modern technology are blocking new discoveries.

But the policy is unlikely to have a smooth sailing given the opposition even within the ruling coalition at the centre to the proposed changes in mining policy.

The CPI-M, the ruling UPA government''s Left partner, described the proposed mining policy that allows for export of iron ore as "shortsighted and harmful," and asked the government not to approve it, as it would rob the country of its resources.

Indiscriminate exports of iron ore and other mineral resources will denude India of its natural resources," the party CPM politbureau said. It demanded that the mining policy should "not be approved by the Union cabinet and be placed before parliament for further discussion."