Mining Companies to Share Profits with Indigenous Indians

20 September 2010 (Last Updated September 20th, 2010 18:30)

An Indian ministerial panel has approved a mining bill that will see mining companies share 26% of their profits with the local population of communities affected by mining projects. The bill, which applies to all minerals except petroleum and natural gas, will seek to bring more investme

An Indian ministerial panel has approved a mining bill that will see mining companies share 26% of their profits with the local population of communities affected by mining projects.

The bill, which applies to all minerals except petroleum and natural gas, will seek to bring more investment to the mining sector.

The bill also states that, if a mining project is not successful, the company has to pay to the locals an amount equal to the royalty paid to the government, reports The Asian Age.

The bill has yet to be approved by the Indian cabinet and parliament.

Land acquisition has become a major issue in India, with mining giants such as Vedanta, Posco and Arcelor Mittal facing protests from local people who would be displaced by mining projects.