**Executive Summary**
The Ministry of Mines has issued a notice regarding proposed amendments to the Mineral Concession Rules, 2016 [M(OAHCEM)CR, 2016], to link the Average Sale Price (ASP) of Iron Ore with International Prices/Index. The notice invites comments and suggestions on the draft amendment rules by July 3, 2025. The proposed amendment aims to address issues arising from the current system of computation of ASP of iron ore.
**Key Points / Main Content**
* **Purpose of Amendment:** To amend the Mineral Concession Rules, 2016, to link the ASP of Iron Ore with International Prices/Index.
* **Computation of ASP (Current Rules):**
* Rule 42(3) defines the ASP of any mineral grade as the weighted average of the ex-mine prices of non-captive mines and merchant sales by captive mines.
* Rule 43 requires the Indian Bureau of Mines (IBM) to publish the ASP of each mineral grade within 45 days from the due date for filing monthly returns.
* **Proposed Amendment:**
* The Indian Bureau of Mines (IBM) to compute the daily price of Iron Ore (60 to below 62% Fe grade) Fines in Indian Rupees based on daily prices published by S & P Global Platts or other reputed publications.
* Provides detailed formulas and conversion factors for calculating the daily price and average sale price of Iron Ore of various grades.
* **Comment Solicitation:**
* Comments/suggestions are invited from the general public, state and union territory governments, mining industry stakeholders, and industry associations.
* The last date for receiving comments/suggestions is July 3, 2025.
* Comments can be sent via email to jspolicy-mines@gov.in or by post to Dr. Ashish Saxena, Deputy Secretary, Ministry of Mines.
* The subject line of the email and envelope should be "Comments/ suggestionson the proposal for amendment in the Mineral Concession Rules for linking the ASP of Iron Ore with International Prices/Index".
**Impact Analysis**
**General Public, Governments of States and Union Territories, mining industry stake-holders, industry associations, and other persons and entities concerned**
* **Impact:** The proposed amendment affects the method of calculating the average sale price of iron ore, potentially impacting revenue, investment decisions, and overall market dynamics.
* **Action Required:** Review the draft amendment rules and provide comments/suggestions to the Ministry of Mines by July 3, 2025, via email or postal mail.
**Indian Bureau of Mines (IBM)**
* **Impact:** IBM will need to adopt a new methodology for calculating and publishing the average sale price of iron ore, based on international price indices.
* **Action Required:** Implement the new computation procedure as outlined in the draft amendment rules, specifically Rule 45(11).
Key Entities Referenced
Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016: The primary rules being amended in this notification.
Ministry of Mines: The government ministry issuing the amendment.
Indian Bureau of Mines (IBM): The agency responsible for publishing the average sale price of Iron Ore.
Mines and Minerals (Development and Regulation) Act, 1957: The act that provides the power to amend the Minerals Concession Rules.
[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 ___June, 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 procedure shall be used by the Indian Bureau of Mines for publishing the
average sale price of Iron Ore, namely:—
(a) The Indian Bureau of Mines shall compute the daily price of Iron Ore (60 to below
62% Fe grade) Fines in Indian Rupees on the basis of prices published daily by S & P
Global Platts or other reputed publications for Iron Ore (60 to below 62% Fe grade)
Fines in the following manner, namely:—
Daily price of Iron Ore (60 P – United States Reference rate of
to below 62% Fe grade) = Dollar (USD) 55 X Reserve Bank of X A
Fines India for the day
Where,
P = IP, when IP is less than or equal to USD 120; and
P = IP – 1/2 x (IP - USD 120), when IP is greater than USD 120;
Where, IP (International Price) is the price published by S & P Global Platts or
other reputed publications for Iron Ore (60 to below 62% Fe grade) Fe Fines; and
A = 1 when IP is less than or equal to USD 100;A = 0.85 when IP is more than USD 100; provided that calculated daily price of
iron ore (60 to below 62% Fe grade) should not be less than the daily price of iron
ore at A = 1 and the IP is equal to USD 100.
(b) Where the Reserve Bank of India reference rate is not available for any day on which
the International Price is available, the Reserve Bank of India reference rate for the
immediately preceding day shall be used.
(c) The simple arithmetic average of the daily prices of Iron Ore (60 to below 62% Fe
grade) Fines for the month, as computed under clause (a), shall be published by the
Indian Bureau of Mines as the average sale price of Iron Ore (60 to below 62% Fe
grade) Fines for that month.
(d) The average sale price of remaining grades of Iron Ore for the month shall be
calculated on the basis of average sale price of Iron Ore (60 to below 62% Fe grade)
Fines in the following manner, namely:—
Average sale price of Iron Ore (60 to
ASP of remaining below 62% Fe grade) Fines for the Conversion
= X
grades of Iron Ore month Factor
[as computed under clause (c)]
Where, the conversion factor for other remaining grades of Iron Ore is as follows:
Type of Iron Grade Conversion Factor
Ore
(i) Lumps (a) Below 45% Fe (For Magnetite Ore only) 0.20
(b) 45% to below 51% Fe 0.30
(c) 51% to below 55% Fe 0.65
(d) 55% to below 58% Fe 0.96
(e) 58% to below 60% Fe 1.11
(f) 60% to below 62% Fe 1.22
(g) 62% to below 65% Fe 1.34
(h) 65% and above Fe 1.47
(ii) Fines (a) Below 45% Fe (For Magnetite Ore only) 0.10
(b) 45% to below 51% Fe 0.19
(c) 51% to below 55% Fe 0.45
(d) 55% to below 58% Fe 0.72
(e) 58% to below 60% Fe 0.80
(f) 62% to below 65% Fe 1.10
(g) 65% and above Fe 1.21
(iii) Concentrate 1.00
Concentrate
(iv) (a) 60% to below 62% Fe (5-40 mm size 1.10
Calibrated CLO)
Lump Ore (b) 62% to below 65% Fe (5-40 mm size 1.67
(CLO) CLO)(c) 65% and above Fe (5-40 mm size CLO) 1.84
[F. No. 16/40/2021-Mines VI-Part (2)]
(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.