Parliament Enacts Amendments to Mines and Minerals Development and Regulation Act

The Mines and Minerals (Development and Regulation) Amendment Act, 2025, an Amendment Act, received presidential assent on August 21, 2025, and was published for general information on the same date. This legislation further amends the Mines and Minerals (Development and Regulation) Act, 1957, and will come into force on a date to be appointed by the Central Government through a notification in the Official Gazette. The enactment introduces several significant changes aimed at modernizing the regulatory framework for the mining sector.

A key provision of the Act is the insertion of a new definition for "mineral exchange," which means an electronic trading platform or marketplace registered in accordance with the provisions of this Act, where buyers and sellers of minerals, their concentrates, or processed forms (including metals), transact, trade, and enter into contracts, including in derivatives. The Act also introduces a new section allowing for a one-time extension of existing leased areas for deep-seated minerals. Holders of a mining lease for deep-seated minerals may apply to include a contiguous area not exceeding ten per cent. of the existing leased area, while holders of a composite licence may apply to include a contiguous area not exceeding thirty per cent. of the existing area under the licence. This extension is subject to terms and conditions and additional payments prescribed by the Central Government, with "deep-seated minerals" specifically defined as those occurring at a depth of more than two hundred meters from the surface of land with poor surface manifestations.

Furthermore, the legislation amends Section 8A of the principal Act by omitting the phrase "up to fifty per cent. of the total mineral produced in a year" regarding mineral sale and empowering State Governments to permit the sale of stacked dumps within leased areas upon payment of an additional amount specified in the Sixth Schedule. The National Mineral Exploration Trust has been renamed the National Mineral Exploration and Development Trust, and its object has been expanded to include the "development of mines and minerals" using funds accrued to the Trust within India, including offshore areas, and outside India. The contribution to this Trust has also been increased from two per cent. to three per cent. The requirement for previous Central Government approval for certain actions under Section 10B has been omitted, streamlining processes.

A new Section 15B has been inserted, enabling mining lease holders to apply to the State Government for the inclusion of any other mineral in their existing leases based on a geological report. The State Government is mandated to permit such inclusion within sixty days, subject to an additional payment specified in the newly introduced Eighth Schedule. This provision also covers the inclusion of minor minerals in non-minor mineral leases and vice-versa, with specific conditions for atomic minerals requiring prior Central Government approval. 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 in such manner as may be prescribed by the Central Government.” Additionally, the Central Government is now mandated to promote the development of markets, including trading of minerals through mineral exchanges, and may appoint an authority to register and regulate these exchanges, with rules covering aspects such as registration, market oversight, fees, data maintenance, and prevention of market manipulation like cartelization and insider trading.

The legislative intent behind these amendments is to foster greater efficiency, transparency, and investment in the Indian mining sector. The introduction of mineral exchanges aims to develop a robust and regulated market for mineral trading, addressing a previous gap in the statutory framework by providing an organized platform for transactions and preventing market manipulation. The expansion of the National Mineral Exploration and Development Trust's mandate and increased funding underscores a policy rationale to boost exploration and development activities, which are crucial for identifying new mineral reserves and ensuring sustainable resource utilization.

The provisions allowing for the extension of leased areas for deep-seated minerals and the inclusion of co-occurring minerals in existing leases are designed to enhance operational flexibility for miners and optimize resource recovery. This addresses practical issues where multiple minerals might be found within a single lease area or where contiguous areas are necessary for efficient extraction, thereby reducing the need for separate, often cumbersome, licensing processes. By streamlining these procedures and removing the requirement for certain central government approvals, the Act seeks to improve the ease of doing business in the mining sector. The amendments to the Fifth and Sixth Schedules, along with the introduction of the Eighth Schedule, establish clear mechanisms for additional payments, ensuring that the State Governments receive appropriate revenue while facilitating these operational changes. These measures collectively aim to create a more conducive environment for mineral development and regulation in India, aligning with the broader economic objectives of resource security and industrial growth.

Keywords: Mines and Minerals, Development and Regulation, Amendment Act, Mineral Exchange, Deep-seated Minerals, National Mineral Exploration and Development Trust, Mining Lease, Mineral Trading, India, Mineral Exploration

Geo Tags: India District: Not Applicable