Comparison between the Mines and Minerals (Development and Regulation) Act, 1957 and the Amendment Bill, 2025

Provision

Mines and Minerals (Development and Regulation) Act, 1957

Mines and Minerals (Development and Regulation) Amendment Bill, 2025

Inclusion of other minerals in a mining lease

·       Lease granted only for a specific mineral.

·       No detailed mechanism for adding minor/major minerals in existing leases.

·       Lease holders may apply to the state government to add other minerals.

·       For inclusion of critical and strategic minerals, and other specified minerals, no additional amount need to be paid.

o   Critical & Strategic minerals (lithium, graphite, nickel, cobalt, gold, silver)

·       For inclusion of other minerals, the lease holder must pay an amount equivalent to the royalty for that mineral. 

·       Centre may revise payment rules via notification.

·       For addition of a minor mineral to a mining lease issued for a mineral other than a minor mineral (major minerals), the state government may decide the royalty and other payments.

·       For inclusion of major minerals in minor mineral leases, the central government will prescribe rules. Atomic minerals above a specified grade cannot be included in non-atomic leases.

National Mineral Exploration Trust (NMET)

·       NMET was established to fund mineral exploration.

·       All lessees are required to pay two percent of royalty into the Trust. 

·       The Bill widens the scope of the Trust to also fund development of mines and minerals.

·       Funds can be used for offshore & international projects.

·       Bill also renamed the National Mineral Exploration and Development Trust (NMEDT).  

·       The Bill increases the rate of contribution to three percent of the royalty.

Sale of minerals from captive mines

·       Captive mines are allowed to sell only up to 50% of minerals produced in a year after meeting end-use requirements.

·       The Bill removes the limit on sale of minerals. 

·       The Bill also empowers state governments to allow sale of mineral dumps stacked in the leased area up to a date specified by the central government.

Deep-seated minerals (minerals which occur at a depth of more than 200 metres below the surface of land)

No provision for automatic area extension.

·       The Bill allows for a one-time extension of the area under a mining or composite lease.  

·       The mining area may be extended by up to 30% of the existing leased area under a composite licence and by up to 10% of the existing leased area under a mining lease.

·       A composite licence provides rights for both prospecting and mining.

Mineral exchanges (a registered electronic trading platform or marketplace for trading minerals and metals).

No provision for mineral exchanges.

·       Establishes authority to register & regulate mineral exchanges (electronic trading platforms).

·       Centre to frame rules on:

o   manner of registration

o   levy of fees and other charges,

o   prevention of insider trading and market manipulation

o   grievance redressal.