Official Update: Ministry of Coal Amends Approval Rules for Opening Coal Mines
Executive Summary: In exercise of powers conferred by sub-sections (1) and (2) of section 18 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957), Ministry of Coal On December 23, 2025, published the Colliery Control (Amendment) Rules, 2025 in the official Gazette. This amendment modifies Rule 9 of the principal 2004 rules, changing the prior approval process required to open a coal mine, a seam, or a section of a seam. The updated framework establishes different approval authorities depending on whether the colliery owner is a registered company or not.
Deep Dive: Analysis
1. The Primary Change for Registered Companies: Under
the amended rule, owners of collieries that are registered companies must
obtain prior approval from the Board of the company instead of CCO before
opening a coal mine, a seam, or a section of a seam.
2. The Board's Responsibility and Notification: The
Board of the company is tasked with ensuring all requisite permissions
prescribed by the Central Government, the State Government, and statutory
bodies are obtained before granting its approval.
After opening the mine or seam, an intimation must be sent
to the Coal Controller Organisation within a period of fifteen days. The Coal
Controller Organisation may prescribe a specific form for this purpose.
3. Rules for Non-Companies: For colliery owners that
are not registered as companies under the Companies Act, 2013, the process is
different. These entities cannot open a coal mine, seam, or section without the
direct prior approval of the Coal Controller Organisation.
4. Recommencing Discontinued Operations: The
notification outlines that these approval requirements also apply to the
recommencement of mining operations. If operations in a mine, seam, or section
have been discontinued for a period of one hundred and eighty days or more, the
owner must go through the approval process again before restarting.
Key Insights: Compliance and Tracking
1. Shift in the Initial Approval Step: For registered
companies, the amendment shifts the initial formal approval step for opening a
mine or seam to the corporate board level, provided all external statutory
permissions are already met.
2. The 15-Day Window: Registered companies have a
strict fifteen-day window after opening the mine, seam, or section to notify
the Coal Controller Organisation.
3. Indicative List of Permissions: To assist with
compliance, the Coal Controller Organisation will maintain an indicative list
of the permissions required from the Central Government, the State Government,
and statutory bodies for these purposes.
Actionable Advice (What businesses should consider)
●
Update Internal Protocols: Corporate
colliery owners should consider updating their internal governance protocols to
ensure that the Board formally reviews and approves all mine, seam, or section
openings prior to commencement.
●
Track Discontinued Operations: Mining
companies should track any paused operations closely. If a stoppage reaches or
exceeds 180 days, businesses should prepare to repeat the formal approval
process before restarting work.
●
Prepare for Compliance Reporting:
Businesses should monitor the Coal Controller Organisation's portal to access
the indicative list of required permissions and to obtain the prescribed form
for the 15-day intimation process.