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Mines were considered to be of surpeme importance towards the economic welfare of the society and defence of the nation against external aggression. One of the most crucial statement in the Arthasestra reads: akaraprabhavah kosah kosat dandah prajayate prthivi kosadandabhyam prapyate kosabhusana || ! (2.12.37) 'The treasury has its source in the mines; from the treasury the army comes into being. with the treasury and the army, the earth is obtained with the treasury as its ornament' (2.12.37). Thus mines.

V-4 have primordial importance. It has been stated more explicitly (7.14.25) that 'mines are the source of implements of war: : samgramopakarananam yoni khani Gold, silver, diamonds, gems, pearls, corals, conch-shells, metals, salt and ores derived from the earth, rocks and liquids were recognised as materials coming under the purview of mines (2.6.4). The Superintendent of Hines was supposed to be an expert in mineralogy, smelting and colouring gems (2.12.1) and to establish factories for the above items and also derviatives like the caustic alkali (2.12.27). The metallic ores had to be sent to the respective Metal orks for producing twelve kinds of metals and commodities' (2.12.23 & 35-36). From the mines and the metal works had to be collected 'the price, the share, the surcharge, the monopoly tax, penalty, duty, compensation, fine, inspection fee and manufacturing charges' (2.12.35-36). Thus the state was supposed to have complete control over the mineral resources.