Centre Amends Mineral Concession Rules to Boost Mining

On 30th March 2026, the Ministry of Mines notified amendments to the Mineral Concession Rules, enabling inclusion of contiguous areas and associated minerals to enhance exploration and production.

Key Points

Objective
- Boost supply of critical minerals
- Promote ease of doing business
- Strengthen Atmanirbhar Bharat
Legal Basis: Amendment to Mines and Minerals (Development and Regulation) Act, 1957 via MMDR Amendment Act, 2025.
Inclusion of Contiguous Areas
- Up to 10% expansion for Mining Lease (ML).
- Up to 30% expansion for Composite Licence (CL).
- Enables efficient extraction of deep-seated minerals.
Financial Provisions
- Auctioned leases: 10% auction premium on added area.
- Non-auctioned leases: additional royalty applicable.
Associated Minerals Inclusion
- Allows addition of other minerals (including minor minerals).
- State governments to approve within 30 days.
Incentives for Critical Minerals
- No extra charges for critical, strategic, or deep-seated minerals.
- Encourages extraction of difficult-to-mine resources.
Reforms in Minor Mineral Leasing
- Mandatory exploration (G3 level) before lease grant.
- Discovery of major minerals → area to be auctioned.
Sale from Captive Mines
- Removal of restriction on sale limits.
- Surplus minerals can be sold after meeting captive needs.