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Core Purpose

This Act further amends the Mines and Minerals (Development and Regulation) Act, 1957, following its assent by the President on August 21, 2025.

Detailed Summary

The Mines and Minerals (Development and Regulation) Amendment Act, 2025 (No. 28 of 2025), published by the Ministry of Law and Justice (Legislative Department) on August 21, 2025, amends the principal Mines and Minerals (Development and Regulation) Act, 1957. Key amendments include the insertion of a definition for 'mineral exchange' in Section 3 and the introduction of Section 6A, which permits a one-time extension of existing leased areas (up to 10%) or composite licence areas (up to 30%) for deep-seated minerals, subject to Central Government prescribed terms and additional amounts. Section 8A is amended to remove the fifty percent production limit for sale of minerals and revise the proviso for sale of dumps. Section 9C is amended to rename the 'National Mineral Exploration Trust' to the 'National Mineral Exploration and Development Trust', broaden its object to include development activities within and outside India, and increase the contribution rate from two percent to three percent. Section 10B is amended to remove the requirement for previous Central Government approval. New Section 15B is inserted, allowing for the inclusion of other minerals in mining leases, subject to geological reports and additional payments as specified in the newly inserted Eighth Schedule, with the Central Government empowered to amend this Schedule. Section 18B is inserted to promote and regulate mineral exchanges, authorizing the Central Government to appoint an authority for registration and oversight, including prevention of market manipulation. The Fifth and Sixth Schedules are also amended, and the new Eighth Schedule provides a framework for additional amounts payable for included minerals, clarifying that these are in addition to royalty and other statutory payments.

Full Text

REGISTERED NO. DL-(N)04/0007/2003-25 The Gazette of India CG-DL-E-22082025-265617 EXTRAORDINARY PART II — Section 1 PUBLISHED BY AUTHORITY NEW DELHI, THURSDAY, AUGUST 21, 2025/SHRAVANA 30, 1947 (Saka) 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 information:- THE MINES AND MINERALS (DEVELOPMENT AND REGULATION) AMENDMENT ACT, 2025 No. 28 OF 2025 [21st August, 2025.] An Act further to amend the Mines and Minerals (Development and Regulation) Act, 1957. BE it enacted by Parliament in the Seventy-sixth Year of the Republic of India as follows:- 1. (1) This Act may be called the Mines and Minerals (Development and Regulation) Amendment Act, 2025. (2) It shall come into force on such date as the Central Government may, by notification in the Official Gazette, appoint. 2. In the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as the principal Act), in section 3, after clause (ae), the following clause shall be inserted, namely:- Short title and commencement. Amendment of section 3. 67 of 1957. '(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;'. 3. In the principal Act, after section 6, the following section shall be inserted, namely:- Insertion of new section 6A. Inclusion of contiguous area in the leased area or area under composite licence in case of deep-seated minerals. '6A. (1) Notwithstanding anything contained in section 10,— (a) a holder of a mining lease of deep-seated mineral, may apply for a one-time extension of the existing leased area to include therein a contiguous area not exceeding ten per cent. of the existing leased area; (b) a holder of a composite licence in respect of deep-seated 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.’. 4. In the principal Act, in section 8A, in sub-section (7A),— (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:". 5. In the principal Act, in 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. Amendment of section 8A. Amendment of section 9C. 6. In the principal Act, in section 10B, in sub-section (2), the words ", after obtaining the previous approval of the Central Government,” shall be omitted. 7. In the principal Act, in section 13, in sub-section (2),— (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 inserted, namely:- "15B. (1) A holder of a mining lease may apply to the State Government for inclusion of any other mineral in his mining lease on the basis of a 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. Amendment of section 10B. Amendment of section 13. Insertion of new section 15B. Inclusion of other minerals in mining lease. (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.". 9. In the principal Act, after section 18A, the following section shall be inserted, namely:- Insertion of new section 18B. Development of market. "18B. (1) The Central Government shall endeavour to promote 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.". 10. In the principal Act, in the Fifth Schedule, — (i) for serial number 2 and the entries relating thereto, the following serial numbers and the entries shall be substituted, namely:— Amendment of Fifth Schedule. "2. Minerals specified in Part-D of the First Schedule Nil 2A. Minerals specified in Seventh Schedule (other than those specified in Part-D of the First Schedule) Equivalent to fifty per cent. of the royalty payable"; (ii) in the Explanation, for the words “National Mineral Exploration Trust", the words "National Mineral Exploration and Development Trust" shall be substituted. 11. In the principal Act, in the 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:— Amendment of Sixth Schedule. "5A. Minerals specified in Part-D of the First Schedule Nil"; (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 shall be inserted, namely:— "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. | | 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.". DR. RAJIV MANI, Secretary to the Govt. of India. UPLOADED BY THE MANAGER, GOVERNMENT OF INDIA PRESS, MINTO ROAD, NEW DELHI-110002 AND PUBLISHED BY THE CONTROLLER OF PUBLICATIONS, DELHI-110054. MGIPMRND—169GI(S4)—22-8-2025. Insertion of new Schedule.

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