The Ministry of Mines has made amendments to the Minerals Concession Rules to enhance the exploration and production of critical minerals essential for electric vehicles, high-tech electronics, and defense equipment. The new rules, named Minerals Concession Rules 2026 and notified on March 30, outline procedures for incorporating contiguous areas in mining leases and licenses for deep-seated and associated minerals. These changes aim to bolster the mining sector, ensuring a stable supply of minerals for various industries and supporting the ‘Atmanirbhar Bharat’ initiative.
The amendments introduced through the Mines and Minerals (Development and Regulation) Act, 1957, provide a streamlined process for extending mining lease areas by up to 10% for mineral holders. In the case of composite licenses, the extension can be up to 30% of the existing area. The rules also facilitate the inclusion of minor minerals in mining leases within a specified timeframe, promoting efficient extraction of deep-seated minerals that might otherwise remain untapped.
Furthermore, the amendments allow for the inclusion of major minerals in leases granted for minor minerals, enhancing the efficiency of mining operations. The rules also eliminate restrictions on the sale of minerals from captive mines, enabling miners to sell surplus minerals after meeting the end-use plant requirements. These changes are expected to simplify business operations in the mining sector, increase mineral production, and benefit both state governments and industry stakeholders.
The revised rules, formulated after extensive consultations with state governments, central ministries, and industry bodies, aim to incentivize the production of critical and strategic minerals. By providing a conducive regulatory framework, the amendments seek to promote optimal mining practices and ensure a steady supply of minerals for industrial use.
