Miners oppose MMDC plan

SHILLONG, MAY 4: Coal miners have expressed strong reservation against the state government’s proposal to involve the Meghalaya Mineral Development Corporation Ltd (MMDC) for carrying out coal mining activity in the state.

This came a day after the new approach to revive coal mining in Meghalaya was announced by the chief minister Mukul Sangma in a consultative meeting held with the coal miners on Wednesday.

According to the government, the proposal was as per section 11 A (3)(a) of the Mines and Minerals (Development & Regulation) Act 1957, which can be seen as an option to restore coal mining following the NGT ban imposed since 2014.

As per a presentation, the government had stated that the MMDC will act as a facilitator cum miner for the land/mine owners and individual mine owners have to willingly approach MMDC Ltd for taking up mining of coal.

It went on to add that the mining will be done on purely scientific method as per the provisions of the MMDR Act 1957 and the Mineral Concession Rules, 1960.

Terming the proposal as an attempt to take away the rights of the tribal people over the minerals, the Jaintia Hills Coal Miners and Dealers’ Association (JHCMDA) has decided to soon convene a public meeting to take a decision on the matter.

“We strongly opposed the proposal of the Congress led Meghalaya United Alliance (MUA-II) government to allow the MMDC to take control over the mines,” JHCMDA president Balios Swer said.

He said, “If such proposal is being allowed, we are made to understand from the presentation given to us, that the tribal people would only have the ownership right over the land but not on the minerals.”

According to him, this will only bring a huge loss to the people of the state.

Also expressing opposition on the move to rope in the mine developer operator (MDO) model, Swer said, “We are of the view that this would no doubt attract global players, which would rather make us to become outsider in our own land.”

He said in view of this, the association has decided to immediately call for a public meeting which would be attended by coal miners from across the region, to discuss on the matter and according take necessary decision.

The state government as per the presentation also proposed two models of operation which includes sub-leasing and mine developer cum operator (MDO) was also proposed in the context of the state.

Section 3(3)(c) of the Coal Mines (Nationalisation) Act allows MMDC to sub-lease the mines to any person in any area on terms and conditions as prescribed in the instrument granting the sub-lease.

The sub-lessee will bear all cost including mining, taxation, royalty, sharing revenue with MMDC and any other expenditure that may arise in due course.

On the other hand, the role of the mine/land owners under the MDO model has to approach the MMDC voluntarily and enter into a tripartite agreement with MMDC & MDO.

Apart from bringing in mining expertise, MDO also finances the mine start-up costs thus freeing up the mine owner from initial start up investment for operating the mines besides bringing strong mining plan and operational expertise.

It also proposed that the agreement can be made in the form of Revenue sharing on tonnage basis after deduction of operating cost and proportionate deduction of capital cost incurred by MMDC/MDO.

If more than one land owners are involved, the sharing can be made proportionate to the land holding and if possible proportionate to the mineable reserve in the land holding.

“This might prove to be a win win situation for all,” the presentation stated.