OFFSHORE SAND MINING IN KERALA: ECONOMIC POTENTIAL AND CONCERNS
The Union government has decided to start offshore sand mining along Kerala’s coast under the Offshore Areas Mineral (Development and Regulation) Amendment Act, 2023 (OAMDR Amendment Act). However, the state government and local communities are strongly opposing the move due to concerns about its impact on the environment and livelihoods.
Why is the Government Promoting Offshore Sand Mining?
Economic Potential
- The Geological Survey of India (GSI) has conducted studies since 1985 identifying construction-grade sand deposits off Kerala’s coast.
- These deposits, located within territorial waters and the Exclusive Economic Zone (EEZ), contain sand with 80% to 96% purity.
- The estimated 750 million tonnes of sand reserves can meet Kerala’s construction needs for the next 25 years at a rate of 30 million metric tonnes annually.
Auction Plan
- The government plans to auction sand blocks in five coastal sectors: Ponnani, Chavakkad, Alappuzha, Kollam North, and Kollam South.
Revenue Generation
- Offshore sand mining is expected to generate revenue through shipping, trade, and GST collection.
About Sand Mining
- Sand is classified as a “minor mineral” under the Mines and Minerals (Development and Regulations) Act, 1957 (MMDR Act), with states managing its administration.
- The Ministry of Environment, Forests, and Climate Change (MoEFCC) introduced the “Sustainable Sand Mining Management Guidelines 2016” to promote eco-friendly mining practices.
What is Offshore Mining?
Offshore mining involves extracting minerals from the seabed.
Potential in India
India’s EEZ covers over two million square kilometers, with significant offshore mineral resources such as:
- Lime mud (off Gujarat and Maharashtra coasts)
- Construction-grade sand (off Kerala coast)
Heavy mineral placers (off Odisha, Andhra Pradesh, Kerala, Tamil Nadu, Maharashtra coasts)
Polymetallic nodules (Andaman and Lakshadweep seas)
Offshore Critical Mineral Auction
- In 2024, India launched its first offshore mineral auction under the OAMDR Act, 2002, offering 13 blocks across the Arabian and Andaman Seas for minerals like lithium, cobalt, nickel, and copper.
Legal Framework for Offshore Mining
OAMDR Amendment Act 2023
- Amends the OAMDR Act, 2002, which governs mineral exploration and extraction in India’s waters.
- Introduces a transparent auction process and a trust for mining-affected people.
- Removes discretionary renewals and sets a 50-year lease period.
Rules Framed Under the Act
- Offshore Areas (Existence of Mineral Resources) Rules, 2024: Applicable to all minerals except mineral oils and hydrocarbons.
- Offshore Areas Operating Right Rules, 2024: Lessees can surrender their lease after 10 years if uneconomical.
Exploration Stages
- Reconnaissance Survey (G4): Initial exploration.
- Preliminary Exploration (G3): Detailed study based on G4 results.
- General Exploration (G2): Preparation for production.
- Detailed Exploration (G1): Confirms the precise quantity and quality.
- A minimum of G2-level exploration is required for auctioning blocks.
About Offshore Sand Mining
- Environmental Risks: Mining activities release toxic wastewater, impacting marine ecosystems and biodiversity. Coastal erosion and natural disaster risks may increase.
- State Revenue Loss: The 2023 amendments allocate all royalty revenues to the central government, sidelining state authorities. Kerala’s government argues for a fair revenue-sharing mechanism.
- Community Opposition: Fishing communities fear loss of livelihoods and damage to marine habitats.
- Global Competition: Rising demand for minerals essential for renewable energy and electric vehicles leads to concerns about resource exploitation.
- Climate Change Impact: Disturbing the seabed could release stored carbon, accelerating climate change.
- Limited Knowledge of Deep-Sea Ecosystems: India’s deep-sea environments remain largely unexplored, making it difficult to predict mining impacts.
Way Forward
Comprehensive Environmental Assessments
- Conduct independent Environmental Impact Assessments (EIAs) before mining begins.
- Learn from global best practices, such as Norway’s stringent marine resource policies.
Sustainable Mining Practices
- Limit extraction volumes and designate no-mining zones near sensitive areas.
- Align mining activities with Sustainable Development Goals (SDGs), particularly SDG 13 (Climate Action) and SDG 14 (Life Below Water).
Fair Revenue Sharing
- Modify revenue frameworks to allocate a fair share to states and local communities.
- Establish community development funds for affected populations.
Conclusion
The government’s offshore sand mining initiative presents economic opportunities but also poses significant environmental and social challenges. A balanced approach focusing on sustainable mining, fair revenue distribution, and ecological preservation is essential to address stakeholder concerns and ensure long-term benefits.
Mains Question:
- “Discuss the economic potential and environmental concerns associated with offshore sand mining in Kerala. Suggest measures to ensure sustainable mining practices.” (150 WORDS)