(1) Financial assurance, has to be furnished by every leaseholder. The amount of financial assurance shall be rupees twenty five thousand for A category mines and rupees fifteen thousand for B category mines, per hectare of the mining lease area put to use for mining and allied activities. However, the minimum amount of financial assurance to be furnished in any of the forms referred to in clause (2) shall be rupees two lakh for A category mines and rupees one lakh for B category mines.
Provided that a leaseholder shall be required to enhance the amount of financial assurance with the increase in the area of mining and allied activities:
Provided further that where a leaseholder undertakes reclamation and rehabilitation measures as part of the progressive closure of mine, the amount so spent shall be reckoned as sum of the financial assurance already spent by the leaseholder and the total amount of financial assurance, to be furnished by the lessee, shall be reduced to that extent;
(2) The financial assurance shall be submitted in one of the following forms to Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, or any amendment to it :
(a) Letter of Credit from any Scheduled Bank;
(b) Performance or surety bond;
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(c) Trust fund build up through annual contributions from the revenue generated by mine and based on expected amount sum required for abandonment of mine; or
(d) Any other form of security or any other guarantees acceptable to the authority;
(3) The lessee shall submit the financial assurance to the Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, before executing the mining lease deeds. In case of an existing mining lease, the lessee shall submit the financial assurance along with the progressive mine closure plan.
(4) Release of financial assurance shall be effective upon the notice given by the lessee for the satisfactory compliance of the provisions contained in the mine closure plan and certified by the Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be.
(5) If the Regional Controller of Mines or the officer authorised by the State Government in this behalf, has reasonable grounds for believing that the protective, reclamation and rehabilitation measures as envisaged in the approved mine closure plan in respect of which financial assurance was given has not been or will not be carried out in accordance with the mine closure plan, either fully or partially, the Regional Controller of mines or the officer authorised by the State Government in this behalf, shall give the lessee a written notice of his intention to issue the orders for forfeiting the sum assured atleast thirty days prior to the date of the order to be issued.
(6) Within thirty days of the receipt of notice referred to in sub-rule(5), if no satisfactory reply has been received in writing from the lessee, the Regional Controller of Mines or the officer authorised by the State Government in this behalf as the case may be, shall pass an order for forfeiting the surety amount and a copy of such order shall be endorsed to the concerned State Government.
(7) Upon the issuance of order by the Regional Controller of Mines or the officer authorised by the State Government in this behalf, as the case may be, the concerned State Government may realise any letter of credit or bond or any other surety, guarantee provided or obtained as financial assurance for the purpose of performance of protective, reclamation, rehabilitation measures and shall carry out those measures, or appoint an agent to do so.]
1 [24. Notice of temporary discontinuance of work in mines and obligations of the lease holders. –
(1) The owner, agent, mining engineer or manager of every mine shall send to Controller General, Controller of Mines and the Regional Controller of Mines a notice in Form D-1 when the mining or mineral processing operations in the mine or part thereof are discontinued for a period exceeding ninety days so as to reach them within one hundred and five days from the date of such temporary discontinuance.
______________________________________________________________________________ 1 Substituted by G.S.R. 330 (E), dated 10.4.2003.
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(2) Where the discontinuance takes place as a result of the occurrence of natural calamity beyond the control of the owner, agent, mining engineer or manager of a mine, or in compliance with any order or directions issued by any statutory authority established under any law in force or any tribunal or a court, a telegraphic intimation shall be sent to the Controller General and the Regional Controller within a period of twenty-four hours of such discontinuance, and a notice of discontinuance, under this sub rule shall be submitted to the Controller General, Controller of Mines and the Regional Controller within a period of fifteen days of such discontinuance in Form D-1.
(3) During the temporary discontinuation of mine or part thereof, it shall be the responsibility of the owner, agent, manager or mining engineer to comply with the reasonable prohibitive measures to restrict access for unauthorised entry, provide protective measures to potentially danger sources of electrical and mechanical installations, the mine openings or workings and all other structures. It shall be ensured that all contaminated effluents are controlled and all physical, chemical, biological monitoring programmes have been continued. It shall also be ensured that all rock piles, over burden piles and stock piles and tailings and other water impoundment structure have been maintained in stable and safe conditions.]