Central Government Amends Mineral Concession Rules, Updates Mineral List and Introduces Rubidium Pricing Mechanism

The Ministry of Mines issued a significant notification on July 21, 2025, introducing the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Amendment) Rules, 2025. These rules, published as G.S.R. 486(E), were enacted by the Central Government in exercise of the powers conferred by section 13 of the Mines and Minerals (Development and Regulation) Act, 1957. The amendments aim to update and streamline the regulatory framework governing mineral concessions in India. The new rules came into force immediately upon their publication in the Official Gazette on July 21, 2025.

Among the key provisions, the amendment rules omitted clause (ia) from rule 44 of the principal Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016. Furthermore, rule 45 saw several modifications, including the expansion of the list of minerals in sub-rule (7) to incorporate Zirconium and Caesium alongside Titanium. This change was reflected in the substitution of phrases, for instance, "and Titanium in" was replaced with ", Titanium, Zirconium and Caesium in," and "and Titanium sponge metal" was substituted with ", Titanium sponge metal, Zirconium sponge and Caesium metal." A crucial new provision was inserted after sub-rule (10) of rule 45, establishing a clear methodology for determining the average sale price of Rubidium. The legislation provided: “The Indian Bureau of Mines shall publish average sale price of Rubidium in Indian Rupees on the basis of prices published by the United States Geological Survey or other reputed publications for Rubidium Carbonate for the latest available calendar year by multiplying such price with the following, namely: (a) average reference rate of Reserve Bank of India for the said calendar year; and (b) the conversion factor of 1.35.” This new sub-rule (11) mandates a specific calculation for the average sale price of Rubidium, ensuring a standardized and transparent valuation process.

Further changes were introduced in rule 67, where the reference to "Atomic Minerals Division" in sub-rule (1) was updated to "Atomic Minerals Directorate for Exploration and Research," reflecting a change in the official designation of the authority. Significantly, the power to undertake certain actions under the second proviso to sub-section (1) of section 4 of the parent Act was shifted from the State Government to the Central Government, with the phrase "the State Government shall" being replaced by "under the second proviso to sub-section (1) of section 4, the Central Government shall." Sub-rule (3) of rule 67 was also substituted, granting the Central Government the explicit power to revoke a notification issued under sub-rule (1) before its stated expiry period. Lastly, rule 68 was amended by omitting the words and letter "Part C of" and by substituting "State Government" with "Central Government" in its first proviso, further centralizing certain regulatory authorities.

The legislative intent behind these amendments appears to be multifaceted, aiming to modernize the existing statutory framework for mineral concessions. The inclusion of minerals like Zirconium and Caesium in the concession rules addresses earlier statutory gaps, acknowledging their increasing strategic and economic importance. The introduction of a precise mechanism for publishing the average sale price of Rubidium fills a critical void, providing clarity and consistency in the valuation of this rare earth element, which is essential for fair concession practices. The amendments also reflect a policy rationale to centralize certain regulatory and oversight powers, particularly concerning minerals managed by the Atomic Minerals Directorate, shifting authority from State Governments to the Central Government. This move likely seeks to ensure uniformity in policy implementation and strategic control over critical mineral resources. The changes also streamline administrative processes, such as the power granted to the Central Government to revoke notifications, enhancing regulatory flexibility. These amendments collectively update the legal position, ensuring the rules remain relevant to contemporary mineral exploration and development needs.

Keywords: Minerals Concession Rules, Mines and Minerals Act, Rubidium pricing, Zirconium, Caesium, Central Government powers, Ministry of Mines, India, Mineral policy

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