Explanation:

Statement 1: District Mineral Foundation (DMF) is a trust set up as a non-profit body, in those districts affected by the mining works, to work for the interest and benefit of persons and areas affected by mining related operations. It is funded through the contributions from miners.

Statement 2: The Central Government notified on 17 September 2015, the rates of contribution payable by miners to the DMFs. In case of all mining leases executed before 12th January, 2015 (the date on which MMDR Amendment Act came into force) miners will have to contribute an amount equal to 30% of the royalty payable by them to the DMFs. Where mining leases are granted after 12.01.2015, the rate of contribution would be 10% of the royalty payable (Subsequent to the enactment of MMDR Amendment Act, mining leases are given out after auctions; hence, a lower levy). Thus, every holder of a mining lease or a prospecting licence-cum-mining lease shall, in addition to the royalty, pay to the District Mineral Foundation of the district in which their mining operations are carried on.