Daily Current Affairs : 20-June-2024
Offshore mining refers to the extraction of mineral assets from seabeds that lie deeper than 200 meters underneath the sea floor. This emerging zone has received attention globally due to the abundance of treasured minerals that may be observed in oceanic regions. India, with its big Exclusive Economic Zone (EEZ) overlaying over two million rectangular kilometers, has good sized offshore mineral reserves. These minerals consist of gold, diamonds, copper, nickel, cobalt, manganese, and uncommon earth factors, all of which are essential for financial growth and technological improvement.
Importance of Offshore Mining
Offshore mining is crucial as it gives the capacity to lessen India’s dependence on mineral imports. By tapping into those undersea sources, the country can increase its domestic mineral production, supporting key industries like electronics, renewable energy, and manufacturing.
However, despite its promise, offshore mining faces several challenges:
- High Capital Requirements: Mining from the seabed involves costly technology and infrastructure.
- Skilled Labor Shortage: The industry requires specialized knowledge, and there is a lack of trained professionals.
- Limited Private Sector Involvement: Many private players are hesitant to invest because of the high risks and unclear regulations.
New Rules for Offshore Mining
In response to the potential of offshore mining, the Indian government has introduced new policies to regulate and control the sector. These regulations were enacted under the Offshore Areas Mineral (Development and Regulation) Act, 2002, which governs the development of mineral resources in India’s maritime zones.
Key Features of the New Rules
- Scope of Regulation: The new rules apply to all minerals found offshore, except for mineral oils and hydrocarbons.
- Stages of Mining: The guidelines define the essential stages for exploring offshore minerals, which include:
- Exploration and feasibility studies
- Economic assessments of the viability of mining
- Classification of mineral assets and reserves
- Long-Term Planning: The rules are designed to ensure sustainable and efficient extraction, while minimizing environmental impact.
These new policies are expected to streamline offshore mining operations and attract more investments, enabling India to make the most of its offshore mineral resources.
Important Points:
What is Offshore Mining?
- Involves extracting mineral resources from seabeds deeper than 200 meters.
- India’s Exclusive Economic Zone (EEZ) spans over 2 million square kilometers and holds valuable minerals like gold, diamonds, copper, nickel, cobalt, manganese, and rare earth elements.
Importance of Offshore Mining
- Reduces dependence on imported minerals.
- Boosts domestic production for industries such as electronics, renewable energy, and manufacturing.
Challenges of Offshore Mining
- High Capital Requirements: Expensive technology and infrastructure needed.
- Skilled Labor Shortage: Need for specialized expertise in the industry.
- Limited Private Sector Involvement: High risks and unclear regulations deter investment.
New Rules for Offshore Mining
- Introduced under the Offshore Areas Mineral (Development and Regulation) Act, 2002.
- Regulates mineral extraction in India’s maritime zones, excluding mineral oils and hydrocarbons.
Key Features of the New Rules
- Scope of Regulation: Applies to all offshore minerals except oils and hydrocarbons.
- Stages of Mining: Includes exploration, feasibility studies, economic assessments, and classification of mineral resources.
- Sustainable Practices: Aims for long-term, environmentally responsible extraction processes.
Expected Impact
- The rules are expected to streamline offshore mining operations and attract more investments, enhancing India’s ability to utilize its offshore mineral resources.
Why In News
The Centre has introduced rules for offshore minerals in anticipation of upcoming auctions, aiming to regulate and streamline the process of resource extraction while attracting both domestic and international investment. These new regulations are designed to ensure transparency, sustainability, and optimal utilization of India’s vast offshore mineral reserves.
MCQs about Regulating Offshore Mining
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What is the primary objective of introducing new rules for offshore mining in India?
A. To encourage environmental destruction
B. To regulate and streamline offshore mining operations
C. To increase mineral imports
D. To limit private sector involvement in mining
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Which of the following minerals is NOT mentioned as part of India’s offshore mineral reserves?
A. Gold
B. Diamond
C. Oil
D. Nickel
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What is one of the key challenges faced by the offshore mining industry in India?
A. Lack of natural resources
B. High capital requirements
C. Limited mineral demand
D. Absence of government regulations
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Under which act are the new rules for offshore mining introduced in India?
A. Mines and Minerals (Development and Regulation) Act, 1957
B. Offshore Areas Mineral (Development and Regulation) Act, 2002
C. Environmental Protection Act, 1995
D. Mineral Resource Management Act, 2010
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