Order dated 01.05.2024 under Section 20A Transition of existing mines of Barytes Felspar Mica and Quartz

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.