Home India Ministry of Law and Justice The Mines and Minerals (Development and Regulation) Amendmen...
Date: 2025-08-21 Category: Extra Ordinary State: Union Government Country: India

The Mines and Minerals (Development and Regulation) Amendment Act, 2025 No.28 of 2025

Issued by Ministry of Law and Justice · Legislative Department

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Executive Summary & Key Takeaways

Executive Summary: The Mines and Minerals Development and Regulation Amendment Act, 2025, was enacted to further amend the Mines and Minerals Development and Regulation Act of 1957. It received presidential assent on August 21, 2025, and will come into force on a date appointed by the Central Government via official notification. The Act introduces provisions for mineral exchanges, extension of mining lease areas, and modifications to the National Mineral Exploration and Development Trust. Key Points / Main Content: * **Amendment of Section 3:** * Defines "mineral exchange" as a registered electronic trading platform for minerals, concentrates, processed forms, and derivatives. * **Insertion of Section 6A:** * Allows holders of mining leases for deep-seated minerals to apply for a one-time extension of the leased area by up to 10% of the existing area. * Permits holders of composite licenses for deep-seated minerals to apply for a one-time extension of the area under license by up to 30% of the existing area. * Specifies that "deepseated minerals" are those found more than 200 meters below the surface. * **Amendment of Section 8A:** * Removes the restriction on the sale of up to fifty per cent. of the total mineral produced in a year. * Allows State Governments to permit the sale of stacked dumps in the leased area upon payment of an additional amount specified in the Sixth Schedule. * **Amendment of Section 9C:** * Renames the "National Mineral Exploration Trust" to "National Mineral Exploration and Development Trust." * Expands the Trust's objectives to include exploration and development of mines and minerals both within and outside India. * Increases the contribution to the Trust from two to three per cent. * **Amendment of Section 10B:** * Removes the requirement for prior Central Government approval. * **Amendment of Section 13:** * Adds "terms and conditions and additional amount under subsection 2 of section 6A" * Updates references from "National Mineral Exploration Trust" to "National Mineral Exploration and Development Trust." * Adds "conditions for inclusion of any mineral other than minor mineral in a lease granted in respect of a minor mineral under subsection 5 of section 15B". * **Insertion of Section 15B:** * Allows mining leaseholders to apply to include other minerals in their lease based on a geological report. * Permits the inclusion of such minerals within sixty days, subject to additional payments as specified in the Eighth Schedule. * Specifies conditions for including minerals other than minor minerals in a lease granted for minor minerals, to be prescribed by the Central Government. * Requires prior Central Government approval for including atomic minerals above a specified threshold in a mining lease. * Prohibits including atomic minerals above a specified threshold in mining leases for minerals other than atomic minerals. * **Insertion of Section 18B:** * Mandates the Central Government to promote market development, including mineral trading through mineral exchanges. * Allows the Central Government to appoint an authority to register and regulate mineral exchanges. * Specifies rules for registration, regulation, market oversight, fee collection, data maintenance, prevention of market manipulation, and grievance redressal. * **Amendment of Fifth Schedule:** * Specifies rates for minerals listed in the First and Seventh Schedules. * Updates references from "National Mineral Exploration Trust" to "National Mineral Exploration and Development Trust." * **Amendment of Sixth Schedule:** * Specifies rates for minerals listed in the First Schedule. * Updates references from "National Mineral Exploration Trust" to "National Mineral Exploration and Development Trust." * **Insertion of Eighth Schedule:** * Details the additional amount payable for including minerals in existing mining leases. * Clarifies that the additional amount is in addition to royalty, payments to the District Mineral Foundation, and the National Mineral Exploration and Development Trust. Impact Analysis: * **Mining Lease Holders:** * Impact: Can apply for lease area extensions and include additional minerals in existing leases, potentially increasing revenue. * Action Required: Assess the potential benefits of extending lease areas and including additional minerals, and prepare necessary applications and geological reports. * **Central Government:** * Impact: Responsible for setting terms and conditions for lease extensions, regulating mineral exchanges, and promoting market development. * Action Required: Develop and notify the terms and conditions for lease extensions and the rules for regulating mineral exchanges. * **State Governments:** * Impact: Responsible for approving lease extensions and the inclusion of additional minerals in existing leases, subject to Central Government guidelines. * Action Required: Establish processes for reviewing and approving lease extension and mineral inclusion applications. * **Mineral Traders and Exchanges:** * Impact: Opportunities to participate in regulated mineral exchanges, potentially increasing trading volumes and efficiency. * Action Required: Register mineral exchanges and comply with regulations set by the Central Government.

Key Entities Referenced

Mines and Minerals Development and Regulation Act, 1957: The principal Act being amended by the Mines and Minerals Development and Regulation Amendment Act, 2025. Mines and Minerals Development and Regulation Amendment Act, 2025: An Act of Parliament further to amend the Mines and Minerals Development and Regulation Act, 1957. Parliament of India: The legislative body that enacted the Mines and Minerals Development and Regulation Amendment Act, 2025. Central Government: The executive branch of the government responsible for various functions outlined in the Act, including notifications, prescribing amounts, and promoting market development. State Government: The government at the state level, with powers related to extending leases and composite licenses, permitting sale of dumps and inclusion of minerals in mining lease National Mineral Exploration and Development Trust: A trust established for the purposes of regional and detailed exploration and development of mines and minerals. New Delhi: The location where the Ministry of Law and Justice is situated and where the Act was published. Ministry of Law and Justice: The ministry responsible for publishing the Act.
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1(cid:3) jftLVªh lañ Mhñ ,yñ—¼,u½04@0007@2003—25 REGISTERED NO. DL—(N)04/0007/2003—25 सी.जी.-डी.xएxलx.G-अI.D-2H20x8x2x025-265617 CG-DL-E-22082025-265617 xxxGIDExxx vlk/kkj.k EXTRAORDINARY Hkkx II — [k.M 1 PART II — Section 1 izkf/kdkj ls izdkf'kr PUBLISHED BY AUTHORITY lañ 33] ubZ fnYyh] c`gLifrokj] vxLr 21] 2025@Jko.k 30] 1947 ¼'kd½ No. 33] NEW DELHI, THURSDAY, AUGUST 21, 2025/SHRAVANA 30, 1947 (Saka) bl Hkkx esa fHkUu i`"B la[;k nh tkrh gS ftlls fd ;g vyx ladyu ds :i esa j[kk tk ldsA Separate paging is given to this Part in order that it may be filed as a separate compilation. 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. BB Ee iitt eennaacctteedd bbyy PPaarrlliiaammeenntt iinn tthhee S Seevveennttyy--ssiixxtthh YYeeaarr ooff tthhee RReeppuubblliicc ooff IInnddiiaa aass ffoolllloowwss::—— 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.

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