**Executive Summary**
This order, issued by the Government of India's Ministry of Mines on May 1st, 2025, addresses the reclassification of Barytes, Felspar, Mica, and Quartz from minor to major minerals. It outlines the implications and regulatory changes following this reclassification, and the required actions by existing lease holders and State Governments to facilitate a smooth transition. Key deadlines include registration with the Indian Bureau of Mines by July 31st, 2025.
**Key Points / Main Content**
* **Reclassification of Minerals:**
* Barytes, Felspar, Mica, and Quartz are now classified as major minerals, effective February 20th, 2025.
* This reclassification stems from the importance of these minerals in downstream industries, their association with critical minerals, and their role in energy transition and greenhouse gas reduction.
* Mining of these minerals will now be regulated under the Mines and Minerals (Development and Regulation) Act and associated rules for major minerals.
* **Obligations for Existing Lease Holders:**
* Registration: Existing lease holders must register online with the Indian Bureau of Mines (IBM) by July 31st, 2025.
* Royalty Payments: Royalty payments to State Governments will continue at existing rates until March 31st, 2026, or until further directions.
* Lease Deed Amendments: Lessees can apply for inclusion of names of other minerals found in their leased area. State Governments shall allow inclusion in the lease deed.
* Mining Plan Validity: Existing mining plans remain valid until March 31st, 2027, or their expiry date, provided a copy is submitted to IBM by December 31st, 2025.
* Financial Assurance: Existing financial assurance submitted to State Governments remains valid until March 31st, 2027.
* **Mining Plan Submission and Approval:**
* Lessee may submit a mining plan to the State Government for its approval for carrying out mining up to 31st March, 2027, provided that the approval of the State Government shall be accorded on or before 30th June, 2025 and submit a copy of the approved mining plan document to IBM on or before 31st December, 2025.
* For mining beyond March 31st, 2027, a fresh mining plan must be submitted to IBM at least 180 days before.
* **Exemptions and Reporting:**
* Exemption from filing digital aerial images of mining lease area under Rule 34A of the MCDR 2017 on or before 1st July, 2025. However, the existing lease holders have to submit digital aerial images of mining lease area to the Indian Bureau of Mines under Rule 34A of the MCDR 2017 on or before 1st July, 2026.
* Exemption from online self-assessment reports for FY 2024-25 but it is required for FY 2025-26 to be submitted on or before 1st July, 2026.
* Must maintain a three-star rating from FY 2028-29 onwards.
* No penalty for non-filing of monthly and annual returns to IBM until September 30th, 2025, provided returns continue to be submitted to State Governments. Lessees must submit returns under Rule 45 of MCDR 2017 to IBM from October 2025 onwards.
* **Role of the Indian Bureau of Mines:**
* IBM will start publishing Average Sale Price of Barytes, Felspar, Mica, and Quartz from October 2025.
**Impact Analysis**
**Lease Holders of Barytes, Felspar, Mica, and Quartz**
* **Impact:** The classification of Barytes, Felspar, Mica, and Quartz as major minerals will affect their operational procedures, cost structure, and potentially open up new avenues for extraction and utilization of associated critical minerals.
* **Action Required:** Register online with IBM by July 31st, 2025. Submit a copy of the existing approved mining plan to the Indian Bureau of Mines on or before 31st December, 2025. Ensure compliance with the MCDR 2017 and associated major mineral regulations.
**State Governments**
* **Impact:** State Governments are responsible for ensuring a smooth transition of existing mining leases to major mineral status. They are required to facilitate the inclusion of other minerals in the lease deed to promote the development of critical minerals.
* **Action Required:** Issue directions to the existing mining lease holders as may be required and also consider for the inclusion of other minerals in the lease deed to promote the development of critical minerals.
**Indian Bureau of Mines (IBM)**
* **Impact:** IBM needs to update its systems to accommodate the registration of existing lease holders, monitor compliance under MCDR 2017 for the four reclassified minerals, and collect returns.
* **Action Required:** The IBM shall start publishing Average Sale Price of these minerals with effect from October 2025.
Key Entities Referenced
Mines and Minerals (Development and Regulation) Act, 1957: The primary law governing the development and regulation of mines and minerals in India. The document is ordering changes to the implementation of this law.
Mineral Conservation and Development Rules, 2017 (MCDR 2017): Rules framed in exercise of the powers conferred by section 18 of the Mines and Minerals (Development and Regulation) Act, 1957.
Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (MCR 2016): Rules framed in exercise of the powers conferred by section 13 of the Mines and Minerals (Development and Regulation) Act, 1957.
State Governments: Applicability of mineral regulations and royalty payments. Key stakeholders affected by the document’s order.
Indian Bureau of Mines: A government agency that regulates the mining sector and to whom lessees must submit reports.
No. 16/7/2024-Mines VI-Part (2)
Government of India
Ministry of Mines
Shastri Bhawan, New Delhi
Dated: ist May, 2025
ORDER
Whereas, the Mines and Minerals (Development and Regulation) Act, 1957
(hereinafter, ‘the Act’) was enacted to provide for development and regulation of
mines and minerals in the country.
And whereas, minor minerals are those minerals which are specified or
notified under section 3(e) of the Act.
And whereas, the minerals Barytes, Felspar, Mica and Quartz were declared
as minor minerals vide Notification No. S.O. 423(E) dated the 10" February, 2015
in exercise of the powers conferred by section 3(e) of the Act.
And whereas, an inter-Ministerial Committee (hereinafter, ‘the Committee’)
was constituted on 11'? March, 2024 in NITI Aayog on Mines and Minerals Sector.
The said Committee in its report dated 4'9 November, 2024 has observed that
Quartz, Felspar and Mica are found in pegmatite rocks, which are an important
source of many critical minerals such as Beryl, Lithium, Niobium, Tantalum,
Molybdenum, Tin, Titanium, Tungsten, etc. These minerals have vital role in
various new technologies, in energy transition, spacecraft industries, healthcare
sector, etc. When the leases of Quartz, Felspar or Mica are granted as minor
mineral leases, the lease holders may not declare existence of critical minerals or
extract the critical minerals associated with it such as Lithium, Beryl, etc. as their
primary objective is to use these minerals as minor minerals for construction, glass
/ ceramic making, etc. Consequently, the critical minerals associated with these
minerals are neither getting extracted nor reported.
And whereas, the said Committee further observed that Baryte has various
industrial applications which is used for oil and gas drilling, electronics, TV screens,
rubber, glass, ceramics, paint, radiation shielding, medical applications etc. It is
found in association with ores of Antimony, Cobalt, Copper, Lead, Manganese and
Silver. eee as
Yr .And whereas, the Committee had observed that Geological Survey of India
and other exploration agencies do not explore the areas containing Barytes,
Felspar, Mica or Quartz on account of these being minor minerals. Accordingly, in
view of the above observations, the Committee recommended that since Barytes,
Felspar, Mica and Quartz are used as raw material for important downstream
industries and found in association with critical minerals or other important major
minerals which are important for energy transition or reduction in greenhouse
gases, making it difficult to mine them separately, these minerals may be deleted
from the list of minor minerals.
And whereas, the Central Government in exercise of the powers conferred
by section 3(e) of the Act has amended the notification no.S.O. 423(E) dated the
1oth February, 2015 to omit the entries relating to the mineralsBarytes, Felspar,
Mica and Quartz vide Notification No. S.O. 924 (E) dated 20th February, 2025.
Therefore, on and from 20th February, 2025, the minerals Barytes, Felspar, Mica
and Quartz are minerals other than minor minerals (hereinafter, ‘major minerals’).
And whereas, as per section 13 of the Act, the Central Government is
empowered to make rules in respect of major minerals.
And whereas, pursuant to the reclassification of minerals Barytes, Felspar,
Mica and Quartz as major minerals, the existing leases of these minerals will be
regulated in accordance with the provisions of the Act and the rules framed
thereunder in respect of other major minerals.
And whereas, the Central Government has framed theMinerals (Other than
Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (hereinafter,
‘MCR 2016’) in exercise of the powers conferred by section 13 of the Act.
And whereas, the Central Government has framed the Mineral
Conservation and Development Rules, 2017 (hereinafter, ‘MCDR 2017’) in
exercise ofthe powers conferred by section 18 of the Act in the interest of
conservation and systematic development of minerals in the country.
And whereas, the Central Government vide letter of even number dated
21S! February, 2025 had issued certain guidelines to the State Governments for
transition of existing mining leases of Barytes, Felspar, Mica or Quartz to major
Dy aie
-
weminerals.
And whereas, the Central Government has received representations from
the State Governments, mining associations and the individual lease holders on
various issues related to transition of the existing minor mineral mining leases of
Barytes, Felspar, Mica or Quartz to major mineral category.
And whereas, the Central Government has examined these issues in
consultation with the State Governments to ensure smooth transition of the existing
mining leases of these four minerals into major mineral category to maintain
production of these minerals.
And whereas, the Section 20A of the Act provides that the Central
Government may issue such directions to the State Governments, as may be
required for the conservation of mineral resources, or on any policy matter in the
national interest, and for the scientific and sustainable development and
exploitation of mineral resources.
Now therefore, notwithstanding anything contained in the MCR 2016 and
MCDR 2017, in exercise of the powers conferred under Section 20A of the Act, the
Central Government, for the conservation of mineral resources, in the national
interest, and for the scientific and sustainable development and exploitation of
mineral resources, hereby directs the following:
i. The existing lease holders ofBarytes, Felspar, Mica or Quartz shall cause
themselves registered online with the Indian Bureau of Mines under the
provisions of Rule 45(1) of the MCDR 2017 on or before 315" July, 2025.
ii. The existing mines ofminerals Barytes, Felspar, Mica or Quartz shall
continue to pay royalty to the State Governments at the existing rates
specified by the respective State Governments upto 318! March, 2026 or till
further directions, whichever is earlier.
iii. The lessees of existing mines ofminerals Barytes, Felspar, Mica or Quartz
may apply for inclusion of names of the minerals found in their leased area
which are not already specified in the mining lease. The State Government
shall, in the interest of mining of critical minerals and overall mineral
development, allow inclusion of names of such minerals in the lease deed.
iv. The existing mining plans for these four minerals approved by the respective
State Governments shall continue to remain valid till 318 March, 2027 or their
Soot ree
‘Siy7 FY aysexpiry, whichever is earlier, provided that the lessee shall submit a copy of
the existing approved mining plan to the Indian Bureau of Mines on or before
318' December, 2025. For cases where the validity of the mining plan is
expiring before 31$' March, 2027:
a. the lessee may submit a mining plan to the State Government for its approval
for carrying out mining upto 31S March, 2027 provided that the approval of
the State Government shall be accorded on or before 30 June, 2025. In
such cases, the lessee shall submit a copy of the approved mining plan
document to Indian Bureau of Mines on or before 318' December, 2025;
OR,
the lessee may submit the mining plan document for approval by the
Indian Bureau of Mines to carry out mining beyond its validity period.
b. For carrying out mining beyond 31*' March, 2027, the lessees will submit
fresh mining plan for approval of IBM at least 180 days before 31S March,
2027.
v. All the mining leases of minerals Barytes, Felspar, Mica or Quartz shall be
exempt from filing digital aerial images of mining lease area under Rule 34A
of the MCDR 2017 on or before ist July, 2025. The existing lease holders of
these four minerals shall submit digital aerial images of mining lease area to
the Indian Bureau of Mines under Rule 34A of the MCDR 2017 on or before
1st July, 2026.
vi. The existing financial assurance submitted to the State Governments at the
existing rates for financial assurance given to the State Governments for the
purposes of due and proper implementation of the progressive mine closure
plan or the final mine closure plan, as the case may be, shall be considered
to be valid till 318 March, 2027, for compliance of Rule 27 of the MCDR 2017.
vii. All the mining leases of mineralsBarytes, Felspar, Mica or Quartz shall be
exempt from filing of online self-assessment report as per the star rating
template under Rule 35 of the MCDR 2017 for FY 2024-25. However, such
lease holders shall be required to submit the online self-assessment report as
per the star rating template for FY 2025-26 within the prescribed timeline, i.e.,
on or before 1° July, 2026. Further, the existing lease holders shall be
required to maintain three star rating from FY 2028-29 and thereafter
maintain the same on year-on-year basis.
viii. The lessees of mineralsBarytes, Felspar, Mica or Quartz shall not be
ATpenalized for non-filing of monthly and annual returns under Rule 45 of MCDR
2017 to the Indian Bureau of Mines till 30! September, 2025, subject to the
condition that the lessees shall continue to submit their returns to the State
Governments as per the existing provisions and the lessees shall submit
returns under Rule 45 of MCDR 2017 to the Indian Bureau of Mines from
October, 2025 onwards. IBM shall start publishing Average Sale Price of
these minerals with effect from October, 2025.
. No penalty shall be imposed on the existing mines ofBarytes, Felspar, Mica
or Quartz till 315 March, 2026 for contravention of the provisions of the MCR
2016 and the MCDR 2017, other than Rule 45 of MCDR 2017.
. The exemptions from the rules are applicable only for the period as specified
above and the respective rule shall be applicable beyond the period of
exemption specified.
(Dinesh Mahur)
Joint Secretary to the Government of India
Phone No.: 011-23384334
To:
Principal Secretary / Secretary,
In-charge of Mining Department,
All State Governments and Union Territories
Copy for information to: Controller General, Indian Bureau of Mines, Nagpur.