Context:
A new Bill has been passed to boost India’s mineral sector, ensure secure supply chains for critical minerals, and align with the National Critical Mineral Mission. This comes amid global supply disruptions and India’s heavy import dependence for key resources.
Key Amendments
1. Renaming and Expanding NMEDT
- National Mineral Exploration Trust (NMET) renamed to National Mineral Exploration and Development Trust (NMEDT).
- New mandate includes offshore and international exploration for critical minerals.
- Funding boost: Contribution from mining leaseholders increased from 2% → 3% of royalty payable.
2. Setting Up Mineral Exchanges
- Establishment of electronic trading platforms for minerals, concentrates, processed forms, and metals.
- Goal: Transparent, dynamic price discovery and more efficient market operations.
3. Incentives for Critical Mineral Extraction
- Easier inclusion of new critical minerals in existing mining leases.
- No extra royalty for critical minerals listed in the Seventh Schedule or Part D of the First Schedule if added to an existing lease.
4. One-Time Lease Area Extension
- Deep-seated minerals (below 200m): Up to 10% extension.
- Composite licences: Up to 30% extension.
5. Removal of Captive Mine Sale Cap
- Earlier: Only up to 50% of minerals from captive mines could be sold.
- Now: No limit — companies can sell 100% surplus minerals.
- Extra measure: States allowed to authorise sale of old mineral dumps.
PIB
