New Delhi, Mar 1 (IANS): The Union Cabinet on Thursday approved the National Mineral Policy 2019 with an aim to ensure more a sustainable mining sector, more effective regulation and to encourage private sector in the field.

An official statement said that the policy will lead to sustainable mining sector development in the future while addressing the issues of project-affected persons, especially those residing in tribal areas.

The policy includes provisions which will give boost to the mining sector and introduce 'Right of First Refusal' for RP (reconnaissance permits) and PL (prospective licensing) holders to encourage the private sector to take up exploration.

It also provides for "auctioning in virgin areas for composite RP-cum-PL-cum-ML on revenue share basis, encouragement of merger and acquisition of mining entities and reconnaissance permits", said the statement.

The policy also aims at "encouragement of merger and acquisition of mining entities and transfer of mining leases and creation of dedicated mineral corridors to boost private sector mining areas".

It will replace the exisiting National Mineral Policy 2008.