INTRODUCTION

The coastal stretch of Indian Sub-Continent extending over 6000 km on its eastern and western boards, has sand dunes of varying heights all along the coastal line.  These dune sand deposits are enriched with six important minerals viz. ilmenite, rutile, zircon, monazite, leucoxene (brown ilmenite), sillimanite and garnet. Some of them like zircon and monazite find typical uses in nuclear power generation and the rest in other industries.  Atomic Minerals Directorate for Exploration and Research (AMD) has conducted preliminary investigation along the coastal areas and estimated probable reserve for all these minerals.  As per AMD, 348 million tons (MT) of ilmenite, 18 MT of rutile, 21 MT of zircon, 8 MT of monazite, 107 MT of garnet and 130 MT of sillimanite are available for exploitation and likely to increase if further areas are explored. Considering the industrial applications, ilmenite & rutile the source minerals for titanium ores are used for production of white pigment, titanium metal and as flux for welding electrodes. Zircon are used in ceramic and refractory industries besides acting as such as basic raw material for the production of Zr metal and alloys for its use as structural materials in nuclear power reactors. The mineral ‘monazite’ is radio active as it contains thorium and uranium and requires special measures for production and storage for exclusive use by the Dept. of Atomic Energy (DAE). All these minerals except sillimanite and garnet which are used as refractory and ceramic are categorized as ‘Prescribed Substances’ in the Atomic Energy Act, 1962, due to their strategic use in the nuclear industries. These minerals are considered as Major Minerals and also categorized as ‘Atomic Minerals’ in the Mines & Minerals (Development & Regulation) Act, 1957.  Indian Rare Earths Limited (IREL), a Govt. of India Undertaking under the administrative control of DAE, Govt. of India is operating three mines and mineral separation plants in the State of Orissa, Kerala & Tamil Nadu for the past five decades.  Similarly, the only other agency authorized by DAE is Kerala Mines & Metals Ltd. (KMML), a State Govt. Undertaking for mining & mineral separation during the past several decades in Kerala State.

THE TECHNOLOGY OF MINING & MINERAL SEPARATION

The beach placer deposits occur in the form of sand dunes with heights varying from 4m to about 14m above the mean sea level (MSL).  All the minerals are heavier than ordinary sand with high specific gravities and hence designated as heavy minerals.  Heavy mineral concentration in the deposit varies from 20 to 60% by weight.  Mining is done to extract the raw sand by engaging either heavy earth moving equipment or dredging.  Heavy minerals are beneficiated in gravity spirals on the mine site in sand-slurry medium.  The beneficiated minerals are further transported to a Mineral Separation Plant for separating the constituent minerals by using the difference on their typical physical properties such as magnetic susceptibility, electrical conductivity, size etc.  During mining activity, care is taken to back-fill the excavated areas and do afforestation with prevalent species for ecological balance.  In the mineral separation plant sufficient protective measures are taken for the occupational health of workmen especially with respect to radioactive dust of monazite and radioactive waste disposal generated during plant operations.

POLICY ON EXPLOITATION OF BEACH SAND MINERALS

Under the Industrial Policy Resolution of 1991, the mining and production of minerals falling in the category of “Prescribed Substances” are reserved for the Public Sectors.  Considering the large potential reserves of beach sand heavy minerals in the coastal stretches of India, growing demand in the international market and scope for earning foreign exchange, a consensus decision was arrived in the interest of the country at setting up of new plants for exploitation of the deposits in the new locations.  In addition, the revenue generated from the value addition especially to ilmenite, which is the bulk mineral and source of titanium metal/paint pigment, Govt. of India has insisted for further value added facility to be developed while setting up such plants. Production of various value added products of these minerals are however, highly capital intensive and it may not be possible for only Public Sector Undertakings (both Central and State owned) operating in this field to set up the new plants on their own. Even though the process of minerals separation after mining from the beach sand placer deposits does not involve many chemicals, it uses imported equipment that requires a lot of investment.    In the light of the above considerations, Department of Atomic Energy, Govt. of India reviewed the Policy of Beach Sand Heavy Mineral exploitation and published an Extraordinary Notification dated 6th October 1998 to allow private sector participation to set up such plants within the framework of some specific guidelines.

OBJECTIVES OF THE BEACH SAND MINERALS POLICY

Considering the capital intensive beach sand Heavy Mineral placer deposits for its exploitation and further value addition to some of its minerals, prime objective is to allow a mix of both Public and Private sector participation (including foreign investment).  The other objectives of the policy are as follows:

1. Maximization of value addition to the raw minerals within the country.
2. Up-gradation of the existing process technologies to international standards.
3. Attracting funds and new technology necessary for the purpose through participation of private sector (domestic and foreign).
4. Appropriate dispersal of the new production facilities with an eye on regional balance.
5. Regulating the rate of exploitation of the reserves by the facilities such that the exploitable reserves last for about hundred years without adversely affecting the investor’s techno-economic considerations regarding plant size etc.

• Mining of placer deposits to beneficiate the heavy minerals and further separation of its constituent Atomic minerals / Prescribed Substances viz. ilmenite, rutile, zircon, monazite & leucoxene in addition to sillimanite & garnet.
• Value addition per se to the minerals produced.
• Integrated activities comprising of both mining, mineral separation and value addition.

The Policy liberalized the participation of wholly Indian companies with or without joint venture with the Central or State Governments concerned or any existing/new Central/State PSUs.
Considering the in-house capability of the technology on mining & mineral separation by the two PSUs viz. IREL & KMML, Foreign Direct Investment (FDI) is permitted up to a maximum of 74% foreign equity participation in the pure value addition projects and also in the integrated projects subjected to maximum level of value addition to the products of mining & mineral separation with more advanced/latest technology in comparison with the technology practiced at present. Foreign equity participation is permitted through instrument of Joint Venture company (ies) with Central / State PSUs such that the independent equity holding of at least one PSU is not less than 26% of the total equity. In case the Joint Venture envisages maximum value addition (say pigment as final product in the case of ilmenite) participation of PSU is not must.  
The policy also defines the nature of value addition in case of a pure value addition project as well as integrated projects up to any intermediate stage considering the maximum level of value addition that could be achieved as per the international standards, further to the mining and mineral separation of raw minerals. Projects which maximizes the foreign earnings through export of value added products, which do not have significant demand in the domestic market or in excess of the domestic demand at the relevant times shall be given preference by Govt. of India for such Private / FDI participation.

REGULATORY FRAMEWORK FOR EXPLOITATION OF DEPOSITS

The exploitation of beach sand deposits and separation of heavy minerals are guided under following regulatory framework & statutory provisions:

1. The minerals occur in the placer deposits and mined for further beneficiation and separation of its constituent minerals.  Hence Mines Act, 1952, Metalliferous Minerals Regulation 1961, Mines & Minerals (Development & Regulation) Act, 1957, Mineral Concession Rules, 1960, Mineral Conservation Development Rules, 1988 etc. are applicable.
2. Ilmenite, rutile, zircon, monazite & leucoxene (brown ilmenite) are defined as ‘Prescribed Substances’ under Atomic Energy Act, 1962.  Govt. of India, Department of Atomic Energy vide Order No. S/O. 213 (E) dated March 15, 1995 notified the appointment of licensing authority under the Atomic Energy (Working of Mines, Minerals and Handling of Prescribed Substances) Rules, 1984.  Necessary License and approvals are to be obtained from DAE under the aforesaid statutory provisions before proceeding with the installations & operation of mining & mineral separation plant.
3. Monazite is one of the constituent minerals in the beach sand placer deposit, contains thorium and uranium and has a potential use for nuclear applications.  Hence, Atomic Energy Regulatory Board (AERB) conducts regulatory inspection of plants engaged in such activities to monitor radioactive exposure of employees and its mitigation.  Director General of Mines Safety (DGMS) conducts routine inspections for the safety, health and environment of working mines as per the directives of Govt. of India.  
4. The beach placer deposits are located within 500m from the high tide line (HTL) of the sea shore and covered under the Coastal Regulation Zone (CRZ) vide notification SO 114(E) dated 19.02.1991 issued by Ministry of Environment & Forests (MoEF), Govt. of India.  Under the notification, the entrepreneurs have to obtain No Objection Certificate (NOC) from the State Pollution Control Board, Dept. of Environment of the State Govt. and also from MoEF, Govt. of India prior to the installation of plants within CRZ.

The setting up of Greenfield projects in the beach sand sectors even after the liberalization of Policy shall adhere to guidelines as follows:

1. The area is identified & reserve estimated on the coastal stretch based on the preliminary investigation by AMD.  Detailed investigation is undertaken with the help of laboratory studies to develop a flow sheet for selection of equipment and maximum recovery of individual minerals.  Ground water study is done through reputed agencies to assess the adverse impact of mining.  
2. Environment Impact Assessment (EIA) & Environment Management Plan (EMP) reports are prepared on one season base data through approved agencies of MOEF.  CRZ maps for the area is prepared through authorized agencies and NOC is obtained from the State Pollution Control & Environment Departments to operate mines within CRZ.  After obtaining necessary clearances, the user agency applies for mining lease under Mineral Concession Rules, 1960.  
3. In case of existence of forest land in the applied area, application is also made to obtain NOC from State Forest Dept. under Forest (Conservation) Act, 1980 & Forest (Conservation) Rules, 1981 for use of forest land for non-forest purposes.
4. Since the beach sand minerals are categorized as Major minerals, approvals are obtained from Ministry of Mines, Govt. of India (Department of Atomic Energy is the nodal agency for Atomic minerals / Prescribed Substances in beach placer deposits) based on the recommendation of the State Govt.
5. Based on the application from the user agency for a private participation, Ministry of Industry, Govt. of India issues license for setting up a Greenfield project with private participation as per the guidelines of Policy on Exploitation of Beach sand Minerals, 1998.
6. Based on the application by the user agency to DAE, license is issued for production of Prescribed Substances from the mining lease area after setting up of mining & mineral separation plant. Under the provisions of Atomic Energy (Working of Mines, Minerals and Handling of Prescribed Substances) Rules, 1984.

The beach sand placer deposits has a huge potential of reserves of the Atomic minerals in addition to garnet and sillimanite.  Hence, it has attracted small and big entrepreneurs in addition to overseas investors for joint venture participation.  IREL and KMML has already moved forward to look for joint venture participation including Foreign Direct Investment in the mining, mineral separation and value addition in the Greenfield projects in addition to the expansion of capacities of operating plants.  Most of the proposals are delayed due to non-availability of clearances either from the respective State Govt.(s), MoEF or Ministry of Industry, Govt. of India.  However, a number of private entrepreneurs of Indian origin engaged in production of non-prescribed minerals have applied for a number of mining leases in the coastal states such as Andhra Pradesh, Tamil Nadu etc.  The private investors have taken advantage of the Policy and follow a novel method of obtaining NOC first from DAE soon after applying for grant of mining lease to the State Govt.  Even though, the deposits are located within CRZ, clearances from State Pollution Boards and MoEF are not obtained prior to application of mining leases.  The mining and mineral separation plants are not approved by AERB for safe disposal of radioactive wastes.  The State Govt. considers grant of mining lease based on the NOC issued by DAE.  The private entrepreneurs adopt manual mining by removing mineral much above ground level and separate minerals in a crude method to sell the mineral ilmenite in the domestic & international market at low price without value addition.  The mined out area is not back filled neither afforested to maintain the ecological balance.  The most important fact of abandoning the mines after sacrificial working makes it technologically unworkable & financially unviable for further mining and the minerals left is a permanent loss for the country. The resultant effect is that the very purpose of value addition to the bulk mineral is overlooked and the basic philosophy of earning foreign exchange, import of latest technology through joint venture participation through foreign investors are not fulfilled.  Since, there is no report of such establishments to AERB, the disposal of radioactive wastes and the health of personnel are not monitored.  In addition, statistics of production of beach sand heavy minerals are not reported to Indian Bureau of Mines (IBM) and the evaluation of Policy implementation is not performed due to lack of information. 

CONCLUSION

After enforcement of Policy on Beach Sand Minerals sector containing Prescribed Substances in the year 1998, with the objective of generating additional foreign exchange, inviting foreign entrepreneurs for Foreign Direct Investment & technological up-gradation to existing methodology, little is achieved during the past few years.  The beneficiaries are mostly small private companies who could use NOC issued by DAE to obtain the mining lease from the respective State Govt. and sell the products to their advantage in the domestic/international market without any value addition.  The deposits are exploited in a most un-scientific manner sterilizing the potential reserves.  In light of the above, Govt. of India may have to review the Policy for Beach Sand Minerals exploitation with stringent measures for its effective implementation.   

The author is Chairman and Managing Director 
Indian Rare Earths Limited 
With A K Das, General Manager (S & E), IRE Lts., Mumbai