Mine Management and Legislation - MCQs from AMIE Exams (Set 3)

Each question carries two marks.

1. Which one of the following might a manager be responsible for?
(a) determining organizational objectives
(b) implementing policy decisions
(c) formulating policies for the organization as a whole
(d) all of the above

2. Rule no 58 of the CMR 1957 standardized the signs and conventions for preparing mine plans and sections and are depicted in the second schedule. The convention for the shaft is




3. A mining lease can be granted at a time for a minimum period of –––– years and a maximum period of –––– years as per MMDR Act 1957.
(a) 10 and 20
(b) 20 and 30
(c) 20 and 50
(d) 10 and 50

4. A person is said to be competent if he has attained
(a) 21 years and permitted in writing by the overman
(b) 20 years and permitted in writing by the sirdar
(c) 20 years and permitted in writing by the mine manager
(d) 18 years and permitted in writing by the overman.

5. The maximum area that can be granted to the prospecting license holder as per MMDR Act 1957 is ––––.
(a) 50 km²
(b) 25 km² 
(c) 10 km²
(d) 10,000 km²

6. Who among the following will act as the "secretary to the safety committee"?
(a) manager
(b) safety officer
(c) assistant manager
(d) workmen's inspector
(e) none of the above

7. The initial rate of return is the rate for which the algebraic sum of present or future or annual worths of all cash flows is
(a) less than zero
(b) zero
(c) greater than zero
(d) one

8. A mine can not be opened, reopened or worked without the –––– as per the coal mines regulation.
(a) regional manager
(b) assistant manager
(c) project officer
(d) manager

9. In an underground metal mine, there are 700 persons working daily. The number of Workmen's Inspector required for the mine is ––––.
(a) 0
(b) 5
(c) 1
(d) 3

10. A woman employed in the mine can obtain the facility of crèche for her children if the age of the children are
(a) below 8 years
(b) below 6 years
(c) below 5 years
(d) below 3 years


1. (b)

2. (a)

3. (b) 
  • The maximum period for which a mining lease may be granted shall not exceed thirty years:  Provided that the minimum period for which any such mining lease may be granted shall not be less than twenty years.  
  • A mining lease may be renewed for a period not exceeding twenty years with the previous approval of the Central Government.
4. (c) “Competent person” in relation to any work or any machinery, plant or equipment means a person who has attained the age of 20 years and who has been duly appointed in writing by the manager as a person competent to supervise or perform that work, or to supervise the operation of that machinery, plant or equipment, and who is responsible for the duties assigned to him, and includes a shot fired.

5. (b) No person shall acquire in respect of any mineral or prescribed group of associated minerals (a) one or more prospecting licences covering a total area of more than twenty-five square kilometres; (b) one or more mining leases covering a total area of more than ten square kilometres.

6. (b) For every mine wherein more than 100 persons are ordinarily employed, the owner, agent or manager shall constitute a Safety Committee for promoting Safety in the mine.

Composition of Safety Committee 

(a) the manager who shall be the Chairman ;  
(b) five officials or competent persons of the mine nominated by the Chairman ;  
(c) five workmen nominated by the workmen of the mine
(d) Workmen’s Inspector  
(e) the Safety Officer, or where there is no Safety Officer, the senior-most mine official next to the manager, who shall act as Secretary to the Committee.

7. (b) The Internal Rate of Return (IRR) is the discount rate that makes the net present value (NPV) of a project zero. Put another way, the initial cash investment for the beginning period will be equal to the present value of the future cash flows of that investment. (Cost paid = present value of future cash flows, and hence, the net present value = 0).

8. (d) No mine shall be opened, worked or reopened unless there is a manager of the mine, being a person duly appointed and having such qualifications under the mine regulations.

9. (d) For every mine wherein 500 or more persons are ordinarily employed,  the owner, agent or manager shall designate three suitably qualified employees of the mine in consultation with the registered trade union in the mine. When the number of persons employed in a mine exceeds 1500, the Workmen’s Inspector shall be assisted by one additional Workmen’s Inspector in mining discipline for every additional 1000  persons or part thereof.

10. (b) A crèche comprises of a room or rooms where the essential accommodation is reserved for the children of the women employees, where the children are under 6 (six) years of age.

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