The Ministry of Mines, Government of India, issued a notice dated July 11th, 2025, regarding the methodology for calculating the Average Sale Price (ASP) of Rock Phosphate, reference No. M.VI-16/68/2025-Mines VI. As per Rule 42(3) of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (MCR, 2016), ASP is the weighted average of ex-mine prices of non-captive mines and merchant sales by captive mines. The Indian Bureau of Mines (IBM) publishes ASP within 45 days of the monthly returns filing due date as per Rule 43.
The Ministry proposes to amend the MCR, 2016 to link the ASP of Rock Phosphate with international prices and prices published by the Department of Fertilizers, Government of India, in its monthly bulletins. The draft amendment is placed as an annexure for comments/suggestions from the public, governments, mining industry stakeholders, and concerned entities. The last date for comments/suggestions is August 1, 2025.
Comments/suggestions should be sent via email in MS-Office Word format to jspolicy-mines@gov.in, with the subject "Comments/ suggestions on the amendment of the MCR, 2016 for specifying methodology for ASP for Rock Phosphate" or by post to Shri Mustaq Ahmad, Director, Ministry of Mines, 3rd Floor, A-Wing, Shastri Bhawan, Dr. Rajendra Prasad Road, New Delhi - 110 001, superscribing the envelope with the same subject line.
The draft amendment includes a formula for the Indian Bureau of Mines (IBM) to use to arrive at the average sale price of Rock Phosphate: Average Sale Price = Price of Rock Phosphate (CFR) X Average reference price as published in the monthly rate of Reserve factor bulletins of the Department of Fertilizers, Government of India, for the said month X Conversion Factor. The conversion factors depend on the grade of Rock Phosphate: Above 30% P2O5: 0.85; Above 25% to 30% P2O5: 0.75; Above 20% to 25% P2O5: 0.33; Up to 20% P2O5: 0.22.
The Minerals (Other than Atomic and Hydro Carbons Energy Mineral) Concession Rules, 2016 were originally published in the Gazette of India under number G.S.R. 279(E) on March 4th, 2016 and last amended under number G.S.R. 118(E) on February 20th, 2024.
Key Entities Referenced
Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (MCR, 2016): The primary set of rules being amended, concerning mineral concessions.
Ministry of Mines: The ministry responsible for the notification and amendment of the MCR, 2016.
Indian Bureau of Mines (IBM): Organization responsible for publishing the Average Sale Price (ASP) of minerals and will use the amended formula.
Mines and Minerals (Development and Regulation) Act, 1957: The act that grants the government powers to make rules regarding mineral concessions.
Department of Fertilizers: Publishes the monthly prices of rock phosphate, which the amendment intends to link to ASP.
Draft Notification to amend the Minerals (Other than Atomic and Hydro
Carbon Energy Minerals) Concession Rules, 2016
[TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II,
SECTION 3, SUB-SECTION (i)]
GOVERNMENT OF INDIA
MINISTRY OF MINES
NOTIFICATION
New Delhi, the ___July, 2025
G.S.R.___(E).— In exercise of the powers conferred by section 13 of the Mines
and Minerals (Development and Regulation) Act, 1957 (67 of 1957), the Central
Government hereby makes the following rules further to amend the Minerals
(Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules,
2016, namely:—
1. Short title and commencement.— (1) These rules may be called the Minerals
(Other than Atomic and Hydro Carbons Energy Minerals) Concession Amendment
Rules, 2025.
(2) They shall come into force on the date of their publication in the Official
Gazette.
2. In the Minerals (Other than Atomic and Hydro Carbons Energy Minerals)
Concession Rules, 2016 in rule 45, after sub-rule (10), the following sub-rule shall
be inserted, namely:—
“(11) The following formula shall be used by Indian Bureau of Mines for arriving
at the average sale price of Rock Phosphate:
Average =Price of Rock Phosphate (CFR)XAverage referenceXConversion
Sale Price as published in the monthly rate of Reserve factor
for Rock bulletins of Department of Bank of India for
Phosphate Fertilizers, Government of India. the said month
Where conversion factor for various grades of Rock Phosphate shall be as
follows:
Grade Conversion Factor
Above 30% P O 0.85
2 5
Above 25% to 30% P O 0.75
2 5
Above 20% to 25% P O 0.33
2 5
Up to 20% P O 0.22”.
2 5[F. No. M.VI-16/68/2025-Mines VI]
(Dinesh Mahur)
Joint Secretary
Note:- The Minerals (Other than Atomic and Hydro Carbons Energy Mineral)
Concession Rules, 2016 were published in the Gazette of India, Extraordinary,
Part II, Section 3, Sub-section (i) vide number G.S.R. 279(E), dated the 4th March,
2016 and lastly amended vide number G.S.R. 118(E), dated the 20th February,
2024.