**Executive Summary:**
This document, a response to Lok Sabha Unstarred Question No. 562 answered on July 23, 2025, by the Minister of Coal and Mines, details the production and growth rate of minerals in India, including Chhattisgarh and the Raoghat area of Kanker district. It outlines the increase in mineral production and the government's policies and measures to boost sustainable mineral production and attract investments in the mining sector to support Atmanirbhar Bharat goals. The document references amendments to the Mines and Minerals Development and Regulation Act (MMDR Act) of 1957 and the Offshore Areas Mineral Development and Regulation Act (OAMDR Act) of 2002, specifically those enacted in 2021 and 2023.
**Key Points / Main Content:**
* **Mineral Production Growth:**
* Increase in production of key minerals and nonferrous metals in the country.
* Compound Annual Growth Rate (CAGR) over the last five years for various minerals is provided, including Iron Ore (3.5%), Manganese Ore (5.5%), Bauxite (3%), Limestone (5%), Lead Zinc ore (3), Graphite (20), Aluminium (3), Copper (7), Lead (11) and Zinc (10).
* **Chhattisgarh and Kanker District Production:**
* Increase in the production of key minerals in Chhattisgarh, including Kanker district.
* CAGR for Iron Ore in Chhattisgarh is 5% and for Limestone is 2.8%.
* CAGR for Iron Ore in Kanker district is 11.8%.
* **Government Policies and Measures:**
* Amendment to the MMDR Act, 1957 (effective 28.03.2021) to increase mineral production, employment, and investment.
* Key amendments include removing end-use restrictions for mine auctions, allowing captive mines to sell up to 50% of minerals, and removing restrictions on mineral concession transfers.
* Further amendment to the MMDR Act, 1957 (effective 17.08.2023) to increase exploration and production of critical and deep-seated minerals.
* Central Government empowered to exclusively auction mining leases and composite licenses for 24 critical minerals.
* Introduction of exploration licenses for 29 critical and deep-seated minerals.
* Amendment to the OAMDR Act, 2002 (effective 2023) to introduce auction as the method of allocating operating rights in offshore areas.
**Impact Analysis:**
* **Mining Companies:**
* *Impact:* Increased opportunities for mineral exploration and production, particularly in critical and deep-seated minerals. Potential changes in operational practices to align with amended regulations.
* *Action Required:* Review and adapt to the amended MMDR and OAMDR Acts. Assess opportunities for auction participation, exploration licenses, and sales from captive mines.
* **State Governments (e.g., Chhattisgarh):**
* *Impact:* Potential increase in revenue from mineral production and auctions. Need to align state policies with central government amendments.
* *Action Required:* Update state mining regulations and facilitate the implementation of the amended MMDR Act.
* **Investors:**
* *Impact:* New avenues for investment in the mining sector, especially in critical minerals and offshore areas.
* *Action Required:* Evaluate investment opportunities in mineral exploration, production, and auction participation.
* **End-Use Industries:**
* *Impact:* Improved access to minerals, particularly critical minerals, potentially reducing import dependence and supporting domestic manufacturing.
* *Action Required:* Monitor policy changes and adjust sourcing strategies to take advantage of increased domestic mineral production.
Key Entities Referenced
Manganese Ore: A key mineral with significant production and growth rate.
Chhattisgarh: A state in India with increased mineral production.
Kanker district, Chhattisgarh: A district within the state of Chhattisgarh, specifically mentioned for its increased Iron Ore production.
Iron Ore: A key mineral with significant production and growth rate mentioned in the context of both national and state-level data.
Bauxite: A key mineral with significant production and growth rate.
Mines and Minerals (Development and Regulation) Act, 1957: A key legislation related to the regulation and development of mines and minerals in India, which has been amended to boost mineral production.
Atmanirbhar Bharat: A Government of India initiative focused on self-reliance, which the mining sector aims to support.
Offshore Areas Mineral (Development and Regulation) Act, 2002: A key legislation related to the regulation and development of minerals in offshore areas, which has been amended to enable early allocation of operating rights through auction.
GOVERNMENT OF INDIA
MINISTRY OF MINES
LOK SABHA
UNSTARRED QUESTION No. 562
ANSWERED ON 23.07.2025
PRODUCTION AND GROWTH RATE OF MINERALS
562. SHRI PRAVEEN PATEL:
SHRI BALABHADRA MAJHI:
SHRI BHOJRAJ NAG:
SHRI RAVINDRA SHUKLA ALIAS RAVI KISHAN:
SHRI VISHNU DAYAL RAM:
SHRI KHAGEN MURMU:
DR. SANJAY JAISWAL:
SHRI NABA CHARAN MAJHI:
SHRI MAHESH KASHYAP:
Will the Minister of MINES be pleased to state:
(a) the details on the production rate of Iron ore, non-ferrous metals, manganese and
bauxite;
(b) whether there is any increase in growth rate of other key minerals in the country
including Chhattisgarh and Raoghat area of Kanker district, if so, the details thereof; and
(c) the details of the policies and measures the Government has undertaken or planned
to boost sustainable mineral production and attract investments in the mining sector to
support Atmanirbhar Bharat goals?
ANSWER
THE MINISTER OF COAL AND MINES
(SHRI G. KISHAN REDDY)
(a) & (b): There has been an increase in the production of key minerals and non-ferrous
metals in the country. The details of the compound annual growth rate (CAGR) over last
five years are given below:
(Production quantity in Kilo Ton)
Mineral 2019-20 2024-25 (P) CAGR (%)
Iron Ore 244,083 289,395 3.5
Manganese Ore 2,910 3,802 5.5
Bauxite 21,825 24,705 3Limestone 359,464 449,581 5
Lead & Zinc ore 14,479 16,669 3
Graphite 35 85 20
Non-Ferrous Metal
Aluminium 3,635 4,199 3
Copper 408 573 7
Lead 132 225 11
Zinc 516 827 10
(P): Data is provisional
The production of key minerals has also increased in Chhattisgarh, including in Kanker
district. The details of CAGR over last five years are given below:
(Production quantity in Kilo Ton)
State of Chhattisgarh Mineral 2019- 2024- CAGR
20 25(P) (%)
Iron Ore 34,728 44,320 5
Limestone 42,699 48,938 2.8
Kanker district of the State of Chhattisgarh Iron Ore 2,943 5,134 11.8
(P): Data is provisional
(c): Ministry of Mines has taken various steps for increasing mineral production and to
make 'Atmanirbhar Bharat in the mining sector'. The Mines and Minerals (Development
and Regulation) Act, 1957 (MMDR Act, 1957) was amended with effect from 28.03.2021
with the objective of inter-alia increasing mineral production and time bound
operationalization of mines, increasing employment and investment in the mining sector;
increasing the pace of exploration and auction of mineral resources. Some of the key
amendments include removing end-use restrictions for auction of mines, allowing captive
mines to sell up to 50% of minerals produced during the year after meeting the
requirement of linked plant and removing restrictions on transfer of mineral concessions.
The MMDR Act, 1957 was further amended through the MMDR Amendment Act, 2023
with effect from 17.08.2023 with the objective of increasing exploration and production of
critical and deep-seated minerals which are essential for the advancement of many
sectors, including high-tech electronics, telecommunications, transport and defence.
Through the said amendment, the Central Government has been empowered to
exclusively auction mining lease and composite licence for 24 critical minerals listed in
the new Part-D of the First Schedule to the said Act. In order to boost exploration of criticaland deep-seated minerals, a new mineral concession namely, exploration licence has
been introduced for 29 critical and deep-seated minerals. Critical and deep-seated
minerals such as Cobalt, Lithium, Nickel, Gold, Silver, Copper are difficult to explore and
mine as compared to surfacial or bulk minerals. The exploration licence granted through
auction shall permit the licencee to undertake reconnaissance and prospecting operations
for critical and deep-seated minerals mentioned in the newly inserted Seventh Schedule
to the MMDR Act.
Further, the Offshore Areas Mineral (Development and Regulation) Act, 2002 [OAMDR
Act, 2002] was amended through the OAMDR Amendment Act, 2023 with an objective to
introduce the auction as the method of allocation of operating rights in the offshore areas
to enable early allocation of operating rights through a transparent and non-discretionary
process.
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