National Mineral Exploration Trust Renamed and Mandate Expanded to Include Mineral Development and Critical Minerals

The Central Government, exercising powers conferred by the Mines and Minerals (Development and Regulation) Act, 1957, issued the National Mineral Exploration Trust (Amendment) Rules, 2025, on October 23, 2025. These rules further amended the National Mineral Exploration Trust Rules, 2015, and came into force upon their publication in the Official Gazette. The primary objective of these amendments was to broaden the scope and functions of the existing Trust, reflecting an updated approach to mineral resource management and development in India.

A significant change introduced by the amendment rules was the renaming of the "National Mineral Exploration Trust" to the "National Mineral Exploration and Development Trust." This nomenclature change was systematically applied across various provisions of the principal rules, including in rule 1(1) and rule 2(1)(b), (c), and (j), thereby formally extending the Trust's mandate beyond mere exploration to encompass development activities.

Further, the rules revised the financial contributions to the Trust. The percentage of contribution for a "composite licence" (a unified licence for both prospecting and mining activities) was increased from two percent to three percent in rule 6(1)(i) and rule 7(1)(b). Concurrently, the term "prospective license-cum-mining lease" was replaced with "composite licence" in rule 6(1)(ii) and rule 7(1)(a), aligning the terminology with contemporary licensing frameworks. The amendments also clarified the definition of "Offshore areas" by referencing clause (n) of section 4 of the Offshore Areas Mineral (Development and Regulation) Act, 2002, indicating an expansion of the Trust's operational jurisdiction.

The legislative intent behind these amendments was to enhance India's capacity for comprehensive mineral resource management, addressing both domestic and international aspects of exploration and development. The earlier legal position primarily focused on mineral exploration, but the revised framework sought to bridge statutory gaps by integrating development activities and strategic mineral considerations. The amendments aimed to bolster the nation's mineral security and reduce reliance on foreign imports for critical resources.

The core principle guiding this expansion was articulated in the amended object of the Trust. The legislation provided: “The object of the Trust shall be to use the funds accrued to the Trust within India, including the offshore areas, and outside India for the purposes of regional and detailed exploration and development of mines and minerals, and it shall undertake such activities as may be deemed necessary by the Governing Body to achieve its objects, including”. This provision explicitly broadened the geographical scope of the Trust's operations to include offshore areas within India and even activities outside the country, signifying a proactive approach to global mineral sourcing.

A key policy rationale was the strategic focus on "critical and strategic minerals." The rules mandated the Trust to support and fund the objectives and schemes of the National Critical Mineral Mission. This included promoting domestic critical mineral exploration, providing support for exploration activities outside India, and offering risk coverage for foreign sourcing and mineral recovery. These measures were designed to ensure a stable supply of minerals vital for national industries and defense, thereby strengthening economic resilience. The amendments also removed certain geographical restrictions, such as the phrases "across India" and "and rest of India," from the Trust's operational clauses, further enabling a more flexible and expansive approach to mineral exploration and development. The office of the Trust, previously implicitly fixed, can now be determined by the Executive Committee, allowing for administrative flexibility.

Keywords: National Mineral Exploration Trust, Amendment Rules 2025, Mineral Development, Critical Minerals, Offshore Areas, Mines and Minerals Act, Composite Licence, Mineral Exploration Geo Tags: India, New Delhi District: Not Applicable