New Delhi: Coal India Limited (CIL) on Tuesday said it has been awarded a composite licence for the grant of a mineral concession by the Ministry of Mines, under the Mines and Minerals (Development and Regulation) Act, 1957. In a regulatory filing to the stock exchanges, the company said, “The Composite License for Grant of Mineral Concession has been awarded to CIL by Ministry of Mines, Government of India.”
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The licence relates to the Kawalapur REE and RM block, the filing said. As per the terms outlined, the mining lease deed will be executed by the state government, and the holder of the composite licence will become the holder of the mining lease after five years.
A mineral concession granted by the Ministry of Mines is a legal right, similar to a licence or lease, that allows companies to explore, prospect and mine specified minerals within a defined area.
According to the mineral block summary, the Kawalapur REE and RM block is located in Kawalapur village in Ramtek tehsil of Nagpur district, Maharashtra, and has a total area of 398.23 hectares earmarked for auction.
The block is at a G3 (preliminary exploration) stage and has been recommended for grant of a composite licence. Exploration has been carried out by the Geological Survey of India’s Central Region, Maharashtra unit, Nagpur.
The summary notes that geological resources of rare earth elements (REE) in the block are estimated at about 27.95 million tonnes, with an average grade of 4.35 percent total rare earth elements at a cut-off grade of 1,000 ppm. The mineralisation is associated with weathered soil profiles formed by disintegration of pegmatite rock.
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SEM studies cited in the block summary indicate that among heavy rare earth elements (HREE), dysprosium, gadolinium and yttrium are dominant, with yttrium being the most prominent and xenotime identified as the yttrium-bearing mineral. In light rare earth elements (LREE), lanthanum, cerium, praseodymium, samarium and neodymium dominate, with cerium identified as the most abundant and monazite as the cerium-bearing phase.
