**Executive Summary**
This document is the Mines and Minerals (Development and Regulation) Amendment Act, 2025, published by the Ministry of Law and Justice. It amends the Mines and Minerals (Development and Regulation) Act, 1957. The Act received Presidential assent on August 21, 2025 and comes into force on a date appointed by the Central Government via official notification.
**Key Points / Main Content**
* **Definitions:**
* Defines "mineral exchange" as an electronic trading platform for minerals.
* **Lease Area Extensions:**
* Holders of mining leases for deep-seated minerals may apply for a one-time extension of the leased area up to 10%.
* Holders of composite licenses for deep-seated minerals may apply for a one-time extension of the area under the composite license up to 30%.
* **Disposal of Minerals**
* State Government may permit sale of dumps subject to certain conditions.
* **National Mineral Exploration and Development Trust:**
* The object of the Trust is to use the funds accrued to the Trust for exploration and development of mines and minerals within India, including the offshore areas, and outside India.
* The contribution to the Trust is increased from two to three percent.
* **Lease Approvals:**
* The requirement for previous Central Government approval for lease transfers is removed.
* **Royalty and Payments:**
* The Central Government may specify terms and conditions and additional amounts under sub-section (2) of section 6A.
* **Inclusion of Other Minerals in Mining Lease:**
* Holders of mining leases may apply to the State Government for the inclusion of any other mineral based on a geological report.
* The State Government shall permit inclusion of such mineral within sixty days of such application, subject to additional payments.
* **Development of Market:**
* The Central Government shall endeavor to promote the development of market, including the trading of minerals.
* **Schedule Amendments:**
* The Fifth, Sixth, and a new Eighth Schedule are amended regarding rates and payments related to different types of minerals and leases.
**Impact Analysis**
**Central Government**
* **Impact**: Responsible for appointing the effective date of the Act, prescribing rules for mineral exchange and market development, amending the Eighth Schedule, specifying conditions for inclusion of any mineral other than minor mineral in a lease granted in respect of a minor mineral, and regulating the inclusion of atomic minerals.
* **Action Required**: Issue notifications in the Official Gazette regarding the effective date of the Act, amendments to schedules, and rules related to mineral exchanges, market development, and the inclusion of minerals in existing leases.
**State Government**
* **Impact**: Responsible for extending leased areas and composite licences and permitting the inclusion of other minerals in mining leases.
* **Action Required**: Process applications for lease area extensions and inclusion of other minerals, ensuring compliance with the terms and conditions set by the Central Government and the additional payments specified in the Eighth Schedule.
**Holders of Mining Leases/Composite Licences**
* **Impact**: Can apply for extensions of lease areas or areas under composite licenses and request the inclusion of other minerals in mining leases.
* **Action Required**: Submit applications for lease area extensions or the inclusion of other minerals in their mining leases to the State Government, adhering to the prescribed terms and conditions and payment schedules.
**Mineral Exchanges/Participants of Mineral Exchanges**
* **Impact**: New regulations and processes will be defined by the Central Government
* **Action Required**: Await notification of regulations and processes for mineral exchange and oversight to ensure compliance.
Key Entities Referenced
Mines and Minerals (Development and Regulation) Amendment Act, 2025: Primary subject; amends the Mines and Minerals (Development and Regulation) Act, 1957
Mines and Minerals (Development and Regulation) Act, 1957: Act being amended by the primary subject
Ministry of Law and Justice: Legislative Department; published the Act
National Mineral Exploration and Development Trust: Amends provisions related to this trust
New Delhi: Location where the Act was published
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MINISTRY OF LAW AND JUSTICE
(Legislative Department)
New Delhi, the 21st August, 2025/Shravana 30, 1947 (Saka)
The following Act of Parliament received the assent of the President on the
21st August, 2025 and is hereby published for general inforBmiallt iNono:.— 106-F of 2025
THE MINES AND MINERALS (DEVELOPMENT AND
THE MINES AND MINERALS (DEVELOPMENT AND
REGULATION) AMENDMENT ACT, 2025
REGULATION) AMENDMENT BILL, 2025
No. 28 of 2025
(AS PASSED BY THE HOUSES OF PARLIAMENT)
[21st August, 2025.]
A
An Act further to amend the MBinIeLsL and Minerals (Development and
Regulation) Act, 1957.
further to amend the Mines and Minerals (Development and Regulation) Act, 1957.
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1. (1) This Act may be called the Mines and Minerals (Development and Short title and
Regulation) Amendment Act, 2025. commencement.
(2) It shall come into force on such date as the Central Government may, by
notification in the Official Gazette, appoint.
67 of 1957. 2. In the Mines and Minerals (Development and Regulation) Act, 1957 Amendment of
section 3.
(hereinafter referred to as the principal Act), in section 3, after clause (ae), the
following clause shall be inserted, namely:—2 THE GAZETTE OF IND2IA EXTRAORDINARY [Part II—
‘(af) “mineral exchange” means an electronic trading platform or
marketplace registered in accordance with the provisions of this Act, where
buyers and sellers of minerals, its concentrate or its processed forms (including
metals), transact, trade and enter into contract, including in derivatives;’.
Insertion of new 3.In the principal Act, after section 6, the following section shall be inserted,
section 6A. namely:—
‘6A. (1) Notwithstanding anything contained in section 10,—
Inclusion of
contiguous area
(a) a holder of a mining lease of deep-seated mineral, may apply
in the leased
area or area for a one-time extension of the existing leased area to include therein a
under composite contiguous area not exceeding ten per cent. of the existing leased area;
licence in case
of deep-seated (b) a holder of a composite licence in respect of deep-seated
minerals. mineral, may apply for a one-time extension of the area under the
composite licence, to include therein a contiguous area not exceeding
thirty per cent. of the existing area under the licence.
(2)Upon receipt of such application, the State Government may extend
the existing leased area or the area under composite licence, as the case may
be, to include therein the contiguous area subject to such terms and conditions
and on payment of such additional amount as may be prescribed by the Central
Government.
Explanation.—For the purposes of this section, the expression
“deep-seated minerals” means such minerals which occur at a depth of
more than two hundred meters from the surface of land with
poor surface manifestations.’.
Amendment of 4.In the principal Act, in section 8A, in sub-section (7A),—
section 8A.
(i)the words “up to fifty per cent. of the total mineral produced in a year”
shall be omitted;
(ii) for the first proviso, the following shall be substituted, namely:—
“Provided that the State Government may permit sale of dumps
which has been stacked up to such date as may be specified by the
Central Government in the leased area on payment of additional amount
specified in the Sixth Schedule:”.
Amendment of 5.In the principal Act, in section 9C,—
section 9C.
(i) for the marginal heading, the following marginal heading shall be
substituted, namely:—
“National Mineral Exploration and Development Trust.”;
(ii) in sub-section (1), for the words “National Mineral Exploration
Trust”, the words “National Mineral Exploration and Development Trust”
shall be substituted;
(iii) for sub-section (2), the following sub-section shall be substituted,
namely:—
“(2) The object of the Trust shall be to use the funds accrued to the
Trust within India, including the offshore areas, and outside India for the
purposes of regional and detailed exploration and development of mines
and minerals in such manner as may be prescribed by the Central
Government.”;
(iv) in sub-section (4), for the words “two per cent.”, the words “three
per cent.” shall be substituted;
(v) in sub-section (5), for the words “National Mineral Exploration
Trust”, the words “National Mineral Exploration and Development Trust”
shall be substituted.Sec. 1] THE GAZETTE OF IND3I(cid:3)A EXTRAORDINARY 3
6. In the principal Act, in section 10B, in sub-section (2), the words “, after Amendment of
section 10B.
obtaining the previous approval of the Central Government,” shall be omitted.
7.In the principal Act, in section 13, in sub-section (2),— Amendment of
section 13.
(i)after clause (k), the following clause shall be inserted, namely:—
“(ka) terms and conditions and additional amount under
sub-section (2) of section 6A;”;
(ii) in clauses (qqb), (qqc) and (qqd), for the words “National Mineral
Exploration Trust”, the words “National Mineral Exploration and
Development Trust” shall be substituted;
(iii)after clause (xb), the following clause shall be inserted, namely:—
“(xc) conditions for inclusion of any mineral other than minor
mineral in a lease granted in respect of a minor mineral under
sub-section (5) of section 15B;”.
8. In the principal Act, after section 15A, the following section shall be Insertion of new
section 15B.
inserted, namely:—
“15B. (1) A holder of a mining lease may apply to the State Government Inclusion of
for inclusion of any other mineral in his mining lease on the basis of a other minerals in
mining lease.
geological report in relation to that lease and the State Government shall
permit inclusion of such mineral within sixty days of such application, subject
to the payment of such additional amount on dispatch of the included mineral
as specified in the Eighth Schedule.
(2)The Central Government may, by notification in the Official Gazette,
and for reasons to be recorded in writing, amend the Eighth Schedule so as to
modify the entries mentioned therein with effect from such date as may be
specified in the said notification.
(3)The holder of mining lease shall submit such reports or returns to the
State Government and any other authority in respect of the included mineral
as may be specified by the Central Government.
(4)The provision of this section shall apply for inclusion of any minor
mineral in a lease granted in respect of a mineral other than minor mineral and
the State Government may, by notification in the Official Gazette, specify the
royalty and other payments to be made by the lessee on dispatch of such
included minor mineral.
(5)Inclusion of any mineral other than minor mineral in a lease granted
in respect of a minor mineral shall be made in accordance with the conditions
as may be prescribed for this purpose by the Central Government and such
rules may provide for all or any of the matters, namely:—
(i) the extent of presence of mineral other than minor mineral as
compared to minor mineral in the lease;
(ii) termination of the lease in the interest of regulation of mines
and mineral development and grant of a fresh lease in the area as a lease
in respect of mineral other than minor mineral;
(iii) regulation of such lease as a lease granted for mineral other
than minor minerals;
(iv) additional payment as specified in the Eighth Schedule to be
made upon inclusion of a mineral other than minor mineral.
(6) Any mineral may be included under this section in a mining lease
granted in respect of atomic mineral specified in Part B of the First Schedule
where the grade of atomic mineral is equal to or above the notified threshold
value with prior approval of the Central Government.4 THE GAZETTE OF IND4IA EXTRAORDINARY [Part II—
(7)No atomic mineral as specified in Part B of the First Schedule where
the grade of atomic mineral is equal to or above the notified threshold value
shall be included in the mining lease granted in respect of minerals other than
such atomic minerals.”.
Insertion of new 9. In the principal Act, after section 18A, the following section shall be
section 18B. inserted, namely:—
Development of “18B. (1) The Central Government shall endeavour to promote
market. development of market, including trading of minerals, its concentrate or its
processed forms (including metals) through mineral exchanges in such
manner as may be prescribed by the Central Government.
(2) The Central Government may, by notification in the Official Gazette,
appoint any authority to register and regulate mineral exchanges.
(3) In particular, and without prejudice to the generality of
the foregoing power, such rules may provide for all or any of
the following matters, namely:—
(a) registration of mineral exchanges and revocation of such
registration;
(b)regulation of all aspects and activities of mineral exchanges and
market oversight;
(c)levy of fees and other charges;
(d)maintenance of a data bank of information on activities relating
to mineral trading on mineral exchanges;
(e) prevention of cartelization, insider trading, circular trading,
market manipulation and any other matter which is detrimental to the
participants of the mineral exchanges;
(f)grievance redressal of participants of mineral exchanges; and
(g)any other matter which is to be, or may be, prescribed.”.
Amendment of 10.In the principal Act, in the Fifth Schedule,—
Fifth Schedule.
(i) for serial number 2 and the entries relating thereto, the following
serial numbers and the entries shall be substituted, namely:—
“2. Minerals specified in Part-D of the First Nil
Schedule
2A. Minerals specified in Seventh Schedule Equivalent to fifty per
(other than those specified in Part-D of the cent. of the royalty
First Schedule) payable”;
(ii) in the Explanation, for the words “National Mineral Exploration
Trust”, the words “National Mineral Exploration and Development Trust”
shall be substituted.
Amendment of 11.In the principal Act, in the Sixth Schedule,—
Sixth Schedule.
(i)under the sub-heading (i) for non-auctioned captive mines (other than
coal and lignite), after serial number 5 and the entries relating thereto, the
following serial numbers and the entries shall be inserted, namely:—
“5A. Minerals specified in Part-D of the First Nil”;
ScheduleSec. 1] THE GAZETTE OF IND5IA EXTRAORDINARY 5
(ii)in the Explanation, under clause (a), for the words “National Mineral
Exploration Trust”, the words “National Mineral Exploration and
Development Trust” shall be substituted.
12. In the principal Act, after the Seventh Schedule, the following Schedule Insertion of new
shall be inserted, namely:— Schedule.
“THE EIGHTH SCHEDULE
[See section 15B(1), (2) and (5)]
Type of mining lease Additional amount in Additional amount in
case the included mineral case the included
is a mineral specified in mineral is not a mineral
Part-D of the First specified in Part-D of the
Schedule or the Seventh First Schedule or the
Schedule Seventh Schedule
(1) (2) (3)
(i) Auctioned mining Nil. Nil.
lease (including coal
and lignite mining lease
auctioned on revenue
share basis for sale of
coal).
(ii) Non-auctioned Nil. Equivalent to amount
mining lease(cid:856) of royalty on the
included mineral.
(iii) Coal and lignite
Nil. Equivalent to amount
mining lease auctioned
of royalty on the
on per tonne basis or
included mineral.
power tariff basis.
Explanation.—For the purpose of this Schedule, it is hereby clarified that—
(i) the additional amount shall be in addition to royalty or payment to
the District Mineral Foundation and National Mineral Exploration
and Development Trust or any other statutory payment;
(ii) in case an additional amount specified in the Fifth Schedule is paid
by the lessee in respect of a mineral, no additional amount under this
Schedule shall be payable in respect of such included mineral;
(iii)in case of auctioned mines,—
(a)auction premium shall not be payable in respect of the included
mineral if the included mineral is a mineral specified in Part-D of the
First Schedule or the Seventh Schedule;
(b) auction premium shall be payable in respect of the included
mineral if the included mineral is not a mineral specified in Part-D of
the First Schedule or the Seventh Schedule.”.
— — ———
The above Bill has been passed by the Houses of Parliament.
DR. RAJIV MANI,
Secretary to the Govt. of India.
Dated the Deputy Chairman.
—————
I assent to this Bill.
UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI–110002
AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI–110054.
Dated the President.
MGIPMRND—169GI(S4)—22-8-2025.