RESOURCE AND RESERVE

Total Mineral Resource – A total mineral resource is a naturally occurring concentration of

mineral raw material in or on the earth`s crust of economic interest and with specified
geological certainty. Total mineral resource is the sum of Mineral Reserves and Remaining
Mineral Resources.
Total Mineral Resource = Reserve + Remaining or additional resource

Reserve

Mineral Reserve- A mineral reserve is the economically mineable part of total Mineral
resource (Measured or Indicated Mineral Resource.) as demonstrated by mineability
assessments. In accordance with the stage of mineability assessment. Reserves are classified
into the following two broad categories:

Proved Mineral Reserve- Proved Mineral Reserves are the economically mineable part of a
Measured Mineral Resource. Demonstrated to be economically mineable by a feasibility
study or actual mining activity. (111)
Probabable Mineral Reserve- Probable Mineral Reserves are the economically mineable part
of Indicated Mineral Resource and in some circumstances, Measured Mineral Resources.
Demonstrated to be economically mineable by a Prefeasibility Study. (121) (122). A
Probable Mineral Reserve has a lower level of confidence than a Proved Mineral Reserve

RESOURCE
• A Mineral Resource is a concentration or occurrence of material of intrinsic economic
interest in or on the Earth’s crust in such form and quantity that there are reasonable
prospects for eventual economic extraction.
• The geological characteristics of a Mineral Resource (such as location, quantity,
grade, and continuity) are known, estimated, or interpreted from specific geological
evidence and knowledge.

Resource is classified into

1) Inferred Mineral Resources
a) An Inferred Mineral Resource is that part of a Mineral Resource for which
tonnage, grade and mineral content can be estimated based on geological
evidence and assumed, but not verified, geological and/or grade continuity.
b) The information on which the estimates are based, may be limited or of
uncertain quality and reliability. Due to the uncertainty attached to Inferred
Mineral Resources, it cannot be assumed that all or a portion of such resource
will be upgraded to an Indicated or Measured Mineral Resource as a result of
more Exploration
2) Indicated Mineral Resources
a) An Indicated Mineral Resource is that part of a Mineral Resource for which
tonnage, densities, shape, physical characteristics, grade and mineral content can
be estimated with a reasonable level of confidence.
b) It is based on exploration, sampling and testing information gathered through
appropriate techniques from locations such as outcrops, trenches, pits,
workings and drill holes.
c) This category has a confidence level higher than Inferred Mineral Resources
but a lower confidence level than Measured Mineral Resources.
 3) Measured Mineral Resources
a) A Measured Mineral Resource is estimated in the same manner as an Indicated
Mineral Resource, except that (1) it can be estimated with a high level of
confidence; (2) the information must be detailed and reliable; and (3) the
locations are spaced closely enough to confirm geological and/or grade
continuity

Remaining Mineral Resource- A Remaining Mineral Resource is the balance of the Total
Mineral Resources that have not been identified as Reserves. In accordance with the stage of
mineability assessment, Remaining Mineral Resources are subdivided into following six
categories.

1. Feasibility Mineral Resource- Demonstrated to be potentially economic by a

Feasibility Study or prior mining activity (211)
2. Prefeasibility Mineral Resource-Demonstrated to be potentially economic by a
Prefeasibility study. (221) (222)
3. Measured Mineral Resource- Estimated by Detailed Exploration and Geological
study. Intrinsically Economic. (331)
4. Indicated Mineral Resource- Estimated by General Exploration and Geological Study.
(332)
5. Inferred Mineral Resource – Estimated by Prospecting and Geological Study (333)
6. Reconnaissance Mineral Resource- Estimated by geological reconnaissance and
Geological Study provided that quantities can be estimated (334)
 MINERAL CONSUMPTION AND SUBSTITUTION AND CONSERVATION

Consumption of a particular mineral, in its turn, is influenced by substitution and they have a
complementary relationship. Consumption in the economic sense means destruction of utility
for obtaining satisfaction.
Consumption Pattern
Consumption is inter-linked with human want. Human want can be classified as:
(i) Necessaries (must be consumed)
(ii) Comforts (desirable over and above necessaries)
(iii) Luxuries (wasteful)

Theory of Substitution
The Law of Diminishing Marginal Utility governs substitution. Substitution aims at
obtaining maximum satisfaction at minimum cost. When a consumer realizes that the
marginal utility of a new commodity is more than that of the one he has been consuming, he
will want to switch over to the new commodity. This is how substitution takes place.
Reasons for Substitution of Minerals
(1) Finite resource (e.g. high grade rock phosphate in India)
(2) Nonrenewable resource (e.g. natural cryolite of Ivigtut, S. Greenland)
(3) Fixed location (e.g. substitution of coal by lignite in Southern and Western India)
(4) Geological nature and cost of production (e.g. substitution of copper by aluminium)
(5) Long gestation of exploration of mineral deposits, development of mines and
establishment of processing and consuming plants (e.g. substitution of coal based power
by diesel based power)
(6) Chance discovery of mineral deposits (e.g. substitution of coal by petroleum in the 2nd
quarter of 20th century due to discovery of large scale oil fields in USA towards the end
of 19th century)
(7) Environmental implications (e.g. chrysotile asbestos)
(8) International relation (e.g. substitution of steel by aluminium, magnesium, titanium as a
structural material in France during Napoleon’s time and in USA during World War II).

Modes of Substitution
(1) Substitution by lower grade variety of the same mineral. It may be:
a) After beneficiation in which case the gestation period increases (e.g. rock
phosphate)
b) Without beneficiation in which case the quality of the final product (e.g. coal
power) or productivity (e.g. coal in pig iron manufacturing) is compromised
(2) Primary mine product by byproduct (e.g. ruby block/ sheet mica by splittings) or by
waste (e.g. sheet mica by scrap mica)
(3) Substitution by scrap through recycling (e.g. steel, glass)
(4) Substitution by another mineral commodity (e.g. copper by aluminium in electrical
transmission)
(5) Substitution by a different substance (e.g. coal and petroleum by solar, wind, wave
energies; cement by timber; steel, aluminium by plastic)
(6) Substitution of a different substance by mineral commodities (e.g. wood by fibre glass in
boats).
 CONSERVATION OF MINERALS

Extraction of minerals has increased at large scale for meeting the ever increasing population
of country. Minerals are non-renewable resources & liable to be exhausted. They cannot be
replenished also and gradually depleted by exploitation. Due to improper and excessive use,
minerals in certain regions are on the verge of extinction. Since, these are earthly treasure
which belongs to entire mankind of present and future generations and have decisive role on
cultural, social and industrial/economic development, there is a need of conservation of
minerals. We have moral and social obligations conserve them, avoid their misuse and
wastage.

As per National Mineral Policy 2008, conservation of mineral shall be construed not in the
restrictive sense of abstinence from consumption or preservation for use in the distant future
but as a positive concept leading to augmentation of reserve base through improvement in
mining methods, beneficiation and utilisation of low grade ore and rejects and recovery of
associated minerals. The Government is aiming for an adequate and effective legal and
institutional framework mandating zero waste mining as the ultimate goal and a commitment
to prevent sub-optimal and unscientific mining. Mineral Sectoral value addition through latest
technique of beneficiation, calibration, blending, sizing, concentration, pelletisation,
purification and general customising of product is being encouraged.

Methods of Conservations:

This could only' possible through the adoption of conservation techniques. In India
conservation strategy is more important because of the scarcity of certain important minerals
which need conservation and new technological revolution currently going on in the count'
which will evolve better mining and processing technology in future for judicious
exploitation mineral resources.

Following measures are necessary for the conservation of minerals:

1. New explorations should be carried on to find out locations and new areas of minerals
using latest technology. In case of India sea floor exploration and mining may yield
good dividend.
2. Meticulous utilization of mineral resources.
3. Optimum utilization of resources by developing advanced technologies for use of low
grade ores.
4. New researches should be undertaken to find out and develop 'replacement minerals'
for use in place of scarce minerals which are in short supply and are going to be
depleted soon.
5. Create social awareness regarding conservation of minerals and minimisation of
wastage of resources.
6. Avoid use and acceptance of minerals which are not essential.
7. Export of mineral should be minimised.
8. Researches should also be carried out to develop new technology and promote waste
utilization, reuse and recycle minerals.
9. There should be curbing on wasteful mining methods. Miners should be imparted
training to adopt new techniques of mining, use latest technology and machines and
take maximum precaution' cause little damage to the environment maximum
utilisation of by-products.
 10. There should be proper development of infrastructural facilities in mining areas, suite
location for processing plants and refineries and encouragement to private sectors to
establish research units and adequate provision for financial support and loans.
11. Processing plants should invariably be in mining areas to reduce transport cost.
12. In conservation policy emphasis should be placed on sustainable mining. Similarly
more reliance should be placed on the exploitation and utilisation of such mineral
resources which are renewable and are in plenty.
13. Control population growth to reduce demand for minerals.

Sustainable System of Mineral Production:

Conservation-decreasing product size, increasing product durability and using only what we
need by efficient methodology.

Cheapest, easiest, quickest means of mining and extraction should be avoided.

ELEMENTS OF NATIONAL MINERAL POLICY

Minerals are a valuable natural resource being the vital raw material for infrastructure, capital
goods and basic industries. As a major resource for development the extraction and
management of minerals has to be integrated into the overall strategy of the country’s
economic development. The exploitation of minerals has to be guided by long-term national
goals and perspectives. Just as these goals and perspectives are dynamic and responsive to the
changing global economic scenario so also the national mineral policy has to be dynamic
taking into consideration the changing needs of industry in the context of the domestic and
global economic environment

1. Development of mineral- short, medium and long-term demand and supply

2. Development of mineral-mineral specific strategy
3. Improvement in the life of associated people
4. Sustainable utilization + economic growth
5. Mineral concession
6. Import substitution, value addition and export
7. Conservation of minerals

1. To exploit the country’s geological potential it is important that scientific and detailed
prospecting is carried out in search of its mineral resources. It will be ensured that regional
and detailed exploration is carried out systematically in the entire geologically conducive
mineral bearing area of the country using state-of-the-art techniques in a time bound manner.

2. To achieve both these goals of large scale prospecting and optimal mining large
investments will be required together with the latest technologies in prospecting and mining.

3. A framework of sustainable development will be designed which takes care of bio

diversity issues and to ensure that mining activity takes place along with suitable measures
for restoration of the ecological balance
4. As the country develops and industry grows assured availability and proximity of mineral
resources will play an important role in giving a competitive edge to Indian industry.

5. Mining infrastructure requires a special thrust as the economic efficiency of evacuation of

minerals from pit mouth to user point or port or rail head is closely linked to the end use
value of the mineral and of the viability of the industry using the mineral. Innovative
structures will be devised for developing and financing the infrastructure needs of the mining
sector.

6. To enable the use of state of the art exploration techniques, scientific mining and optimal
use of minerals through ore dressing and beneficiation technologies it is necessary not only to
promote research and development in minerals but to simultaneously establish appropriate
educational and training facilities for human resources development to meet the manpower
requirements of the mineral industry

STRATEGY OF MINERAL DEVELOPMENT

General Strategy
Conservation and Mineral Development
Scientific Methods of Mining
Mining as an Industry with Linkages
Mining Equipment and Machinery
Manpower and Infrastructure Development
Financial Support for Mining
Mineral Development & Protection of Environment
Relief & Rehabilitation of Displaced and Affected Persons
Mine Closures
Mine Safety

MMDR Act

The Government has amended the Mines and Minerals (Development and
Regulation) (MMDR) Act 1957, through the MMDR Amendment Act 2015 with effect from
12.1.2015, for promoting the mining sector. The amendments in the MMDR Act, 1957 will
give impetus to the sector by:

(i) removing discretion in grant of mineral concessions, as mineral concessions will now be
granted through auction by competitive bidding;

(ii) allowing opening of mines which were closed due to pendency of decision on
applications for second or subsequent renewal through extension of validity of lease period of
the existing leases;

(iii) providing security of tenure of mining lease period with a uniform lease period of 50
years;

(iv) simplification of procedure, and removal of delay by eliminating requirement of prior

approval of Central Government for grant of mining lease through auction;
(v) establishment of National Mineral Exploration Trust, a dedicated fund to encourage
exploration to augment mineral resources;

(vi) allowing easy transferability of mineral concessions granted through auction, which
would facilitate investments into the mining sector;

(vii) establishment of District Mineral Foundation, which will work for the interest and
benefit of persons, and areas, affected by mining related operations.

The Central Government has further empowered State Governments in respect of 31

minerals, which have been notified as ‘minor’ minerals on 10.2.2015, for regulation of grant
of mineral concessions and for purposes connected therewith.

MMDR-Mines and Minerals (Development and Regulation)

MCR-Mineral Concession Rules (1960)
MCDR-Mineral Conservation & Development Rules (1988)