Govt introduces MMDR Amendment Bill, 2026, proposes reforms to boost critical mineral exploration and mining
New Delhi, August 10
The government on Monday introduced the Mines and Minerals Amendment Bill, 2026 in the Lok Sabha, proposing a series of changes to the existing mining framework, including allowing leaseholders to add multiple minerals to an existing mining lease, expanding the scope of mineral exploration funding and removing the cap on the sale of minerals from captive mines.
The Bill seeks to amend the Mines and Minerals (Development and Regulation) Act, 1957, with a focus on facilitating mineral exploration and development, particularly of critical and strategic minerals, while providing greater flexibility to mining lease holders.
Under the proposed amendments, holders of a mining lease granted for a specific mineral will be able to apply to the state government for inclusion of other minerals in the existing lease.
For inclusion of critical and strategic minerals and other specified minerals, including lithium, graphite, nickel, cobalt, gold and silver, no additional amount will be required to be paid. For other minerals, the leaseholder will have to pay an amount equivalent to the royalty applicable to that mineral.
In the case of auctioned mines, the leaseholder will also be required to pay the auction premium applicable to the included mineral. The central government may modify these payment requirements through a notification.
The Bill also proposes provisions for inclusion of minor minerals in mining leases granted for major minerals. In such cases, the state government may determine the royalty and other payments. Minor minerals include building stones, gravel, sand and other minerals declared as minor minerals by the Centre.
For inclusion of major minerals in minor mineral leases, the central government will prescribe conditions through Rules. However, an atomic mineral above a specified grade cannot be included in a mining lease granted for non-atomic minerals.
The proposed legislation also seeks to expand the scope of the National Mineral Exploration Trust. The Trust, currently mandated to fund mineral exploration, will be empowered to finance the development of mines and minerals as well. The Trust will be renamed the National Mineral Exploration and Development Trust.
Another key proposal is the removal of the existing limit on the sale of minerals produced from captive mines. At present, captive mines can sell up to 50 per cent of the minerals produced in a year after meeting end-use requirements. The Bill seeks to remove this ceiling.
It also empowers state governments to permit the sale of mineral dumps stacked within the leased area up to a date specified by the central government.
For deep-seated minerals, which occur at a depth of more than 200 metres below the land surface, the Bill proposes a one-time extension of the area covered under a mining or composite lease.
The leased area may be extended by up to 30 per cent of the existing area under a composite licence and by up to 10 per cent under a mining lease. A composite licence provides rights for both prospecting and mining.
The Bill also proposes the establishment of an authority for registration and regulation of mineral exchanges. A mineral exchange has been defined as a registered electronic trading platform or marketplace for trading minerals and metals.
The central government will frame Rules governing mineral exchanges, including their registration, levy of fees and charges, prevention of insider trading and market manipulation, and grievance redressal mechanisms.
The proposed amendments are aimed at broadening the mineral resource base available to miners, encouraging exploration and development of critical minerals, and creating greater flexibility in the use and trading of mineral resources.
— ANI
Reader Comments
The removal of the 50% cap on captive mine sales is a double-edged sword. On one hand, it gives companies flexibility, but on the other, it could lead to hoarding and black marketing of minerals. The government needs to strengthen monitoring mechanisms before implementing this. 😕
As someone from Jharkhand where mining has both helped and hurt our communities, I'm cautiously optimistic. Expanding the National Mineral Exploration Trust to fund mine development is good, but we need better environmental safeguards and local community rehabilitation plans. Mining reforms must prioritize people above profits.
Interesting to see India pushing forward with mineral exchange platforms similar to what we have in the West. The insider trading and market manipulation safeguards are essential. Let's hope this attracts international investment and brings transparency to the sector. 🇮🇳
Good initiative but I'm skeptical about the execution. In India, we often see policies that look great on paper but fail at the ground level. The state governments have their own interests and this could become another bureaucratic mess. Also, who's monitoring that atomic minerals don't get misused? Need clarity.
As a mining industry professional, I can say this is a massive step forward. The ability to add minerals to existing leases without additional costs for critical minerals like lithium and cobalt is a game-changer. India has massive potential for these minerals, and this bill could unlock billions in investments. 👏
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.