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Core Purpose

This notification amends the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016, by introducing new provisions related to deep-seated minerals, inclusion of contiguous areas in mining leases and composite licences, and exploration requirements for minor mineral mining leases.

Detailed Summary

The Ministry of Mines, through Notification G.S.R. 222(E) dated 30th March, 2026, issued new rules titled the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026, exercising powers under section 13 of the Mines and Minerals (Development and Regulation) Act, 1957 (67 of 1957). These rules amend the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession Rules, 2016 (originally published vide G.S.R. 279(E) dated 4th March, 2016, and last amended vide G.S.R. 22(E) dated 12th January, 2026). Key amendments include inserting a definition for "deep-seated minerals" (minerals at depths over 200 meters) into rule 2(1); revising rule 12 to mandate reporting of newly discovered minerals within six months of the amendment rules' commencement or sixty days of discovery, allowing their inclusion in existing leases by State Governments under section 15B; and amending rule 12B(1) to permit captive mine lessees to sell excess minerals after meeting end-use plant requirements. New Chapter VIII-A introduces rules 25A and 25B, allowing for a one-time inclusion of contiguous areas (up to 10% for mining leases, 30% for composite licences) for deep-seated minerals, subject to geological continuity, State Government approval within sixty days for prospecting, and Central Government notification. Rule 25C specifies additional payments for such inclusions (10% of auction premium or equivalent royalty). New Chapter VIII-B, comprising rules 25D and 25E, mandates G3 level exploration for minor mineral mining leases (over two hectares, excluding sand) from the commencement date of these rules, as per the Minerals (Evidence of Mineral Contents) Rules, 2015. It also outlines procedures for including non-minor minerals discovered in minor mineral leases, requiring G2 level exploration and a Geological Study Report, with provisions for reporting to the Indian Bureau of Mines and additional payments as per the Eighth Schedule to the Act. Atomic minerals above threshold values cannot be included, leading to lease termination.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-31032026-271467 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 203] NEW DELHI, MONDAY, MARCH 30, 2026/CHAITRA 9, 1948 2306 GI/2026 [F. No. M.VI-1/6/2025-Mines VI] MINISTRY OF MINES NOTIFICATION New Delhi, the 30th March, 2026 G.S.R. 222(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 (Second Amendment) Rules, 2026. (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 (hereinafter referred to as the said rules), in rule 2, in sub-rule (1), after clause (a), the following clause shall be inserted, namely: "(aa) "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.". 3. In the said rules, in rule 12, for sub-rule (2), the following sub-rules shall be substituted, namely: "(2) The lessee shall report to the State Government, the discovery in the leased area of mineral not specified in the mining lease within a period of six months from the date of commencement of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026 or sixty days from the date of such discovery, whichever is later, and shall not win and dispose of such discovered mineral until such mineral is included in the mining lease. (2A) A holder of a mining lease may apply to the State Government for inclusion of any other mineral, including a minor mineral, in his mining lease and the State Government shall by order permit inclusion of such mineral within a period of sixty days of such application in accordance with the provision of section 15B. (2B) Upon issuance of the order under sub-rule (2A), such other mineral shall be deemed to be included in the mining lease. (2C) In case a minor mineral is included in the mining lease, the lease holder shall pay royalty and other payments as may be specified by the State Government."; 4. In the said rules, in rule 12B, in sub-rule (1), (i) for clauses (i) and (ii), the following clauses shall be substituted namely: "(i) lessee may sell the mineral produced in such captive mine after meeting the requirement of the end use plant linked with the mine when the end use plant operates at its full capacity: Provided that in case the end use plant operates at a capacity lower than its full capacity, then the lessee may sell only such quantity of mineral which is not more than the quantity consumed in the end use plant in a financial year."; (ii) clause (vii) shall be omitted. 5. In the said rules, after rule 25, the following shall be inserted, namely: "CHAPTER VIII-A: INCLUSION OF CONTIGUOUS AREA IN MINING LEASE OR COMPOSITE LICENCE 25A. Inclusion of contiguous area in mining lease. (1) The holder of a mining lease of deep- seated minerals may make an application to the State Government proposing its intention to seek one- time extension of the existing leased area to include therein a contiguous area under the provisions of section 6A and for the said matter to permit undertaking prospecting operations in the contiguous area, specifying the following details, namely: (a) boundary coordinates of the leased area and of the contiguous area proposed for inclusion in decimal degree; (b) Survey of India Toposheet numbers and maps of leased area, contiguous area proposed for inclusion and the neighbouring areas; (c) mineral expected in the contiguous area and the basis on which mineral potential in the said area is identified; (d) evidence to show that contiguous area has geological continuity of the mineralised body in the existing leased area; (e) name and details of the agency specified or notified under the second proviso to sub-section (1) of section 4 that is proposed by the applicant for undertaking exploration in the contiguous area; and (f) any other document in support of the application. (2) The State Government shall send an acknowledgement of receipt of the application submitted under sub-rule (1) to the applicant in the format specified in Schedule II within a period of three days from the date of receipt of the application thereof. (3) Upon examination of the application and on being satisfied that (a) such area is contiguous to the existing lease; (b) location of the contiguous area has geological continuity of the mineralised body in the existing leased area; (c) the contiguous area is not exceeding ten per cent. of the existing leased area; and (d) such contiguous area, with or without including its adjacent area which is not already held under any mineral concession, is not viable as a separate block for grant of mining lease, the State Government may, within a period of sixty days from the date of receipt of the application, permit the applicant to engage the exploration agency specified in the application, at the cost of the applicant, to undertake prospecting operations over such area up to at least G2 level to establish Indicated Mineral Resource (332). (4) The State Government shall intimate the details of permission granted under sub-rule (3) to the Central Government with the request to issue notification in the Official Gazette under the provisions of rule 67. (5) The Central Government shall issue such notification within a period of sixty days of the receipt of intimation under sub-rule (4) and only upon issuance of such notification, the exploration agency shall commence prospecting operations. (6) Upon completion of the prospecting operations, the applicant shall submit the geological study report prepared by exploration agency conforming to Part IV-A and Part IV-B of Schedule-I of the Minerals (Evidence of Mineral Contents) Rules, 2015, within a period of three years from the date of issuance of such notification and may apply for one-time extension of the existing leased area to include therein the whole or part of the said contiguous area. (7) The State Government shall have the right to seek relevant additional information, document or clarification from the applicant with respect to the application made. (8) Upon examination of the application and on being satisfied that geological report has been prepared conforming to the Minerals (Evidence of Mineral Contents) Rules, 2015, the State Government shall, subject to the provisions of sub-rule (9), issue a letter of intent communicating its decision to include the applied area in the existing lease within a period of sixty days from the date of receipt of the duly completed application under sub-rule (6). (9) The State Government may, after giving the applicant an opportunity of being heard and for reasons to be recorded in writing and communicated to the applicant, reduce the applied area at the time of inclusion of the contiguous area in the leased area or may refuse to include the area, if such contiguous area contains any mineral specified in Part B of the First Schedule to the Act, where the grade of such mineral is equal to or above the threshold value: Provided that in the case of refusal to include the contiguous area, the State Government shall reimburse the expenditure incurred towards prospecting operations to the mining lease holder within a period of sixty days of such refusal. (10) Upon issuance of letter of intent under sub-rule (8) for inclusion of contiguous area in the leased area, the applicant shall, (a) satisfy the conditions specified in clause (b) of sub-section (2) of section 5 with respect to a mining plan for the entire area including the applied contiguous area; (b) obtain all consents, approvals, permits, no-objections and the like as may be required under the applicable laws for commencement of mining operations; and (c) furnish enhanced performance security commensurate to the increased value of estimated resources or enhanced financial assurance, as the case may be. (11) The State Government shall execute a supplementary mining lease deed with the applicant upon fulfilment of the conditions specified in sub-rule (10), and the period specified for execution of mining lease from the date of the letter of intent under the provisos to sub-rule (6) of rule 10 of the Mineral (Auction) Rules, 2015 shall apply mutatis mutandis for execution of supplementary mining lease deed from the date of letter of intent issued under sub-rule (8). (12) The date of commencement of duly executed supplementary mining lease shall be the date of registration of such supplementary mining lease and the period of such lease shall be co-terminus with the period of existing mining lease. (13) The holder of a mining lease wherein the contiguous area has been included in the existing lease, shall separately maintain accurate and faithful accounts of the quantity and other particulars of the minerals, waste, overburden or the like produced and dispatched for the existing leased area and included area and shall report the same separately under the provisions of the Mineral Conservation and Development Rules, 2017. (14) The holder of a mining lease shall be granted extension of lease area only once during the entire lease period and in case such holder has already been granted extension of area of composite licence under rule 25B, then no extension shall be granted for such lease area. 25B. Inclusion of contiguous area in composite licence. (1) The holder of a composite licence in respect of deep-seated minerals may make an application to the State Government for a one-time extension of the area under the composite licence to include therein a contiguous area, specifying the following details, namely: (a) boundary coordinates of the area under composite licence and of the contiguous area proposed for inclusion in decimal degree; (b) Survey of India Toposheet numbers and maps of area under the composite licence, contiguous area proposed for inclusion and the neighbouring areas; (c) mineral expected in the contiguous area and the basis on which mineral potential in the said area is identified; (d) details of the exploration operations undertaken in the area under composite licence with evidence to show that contiguous area has geological continuity of the mineralised body in the area under composite licence; and (e) any other document in support of the application. (2) The State Government shall send an acknowledgement of receipt of the application submitted under sub-rule (1) to the applicant in the format specified in Schedule II within a period of three days from the date of receipt of the application thereof. (3) No such area shall be granted by the State Government unless, it is satisfied that, (a) the area is contiguous to the area under composite licence and is not exceeding thirty per cent. of the existing area of composite licence; and (b) the applicant has completed reasonable level of exploration in the area under composite licence to show that contiguous area has geological continuity of the mineralised body in the area under the composite licence. (4) The State Government shall have the right to seek any additional information, document or clarification from the applicant with respect to the application made. (5) The State Government shall, subject to the satisfaction of the conditions specified in sub-rule (3), communicate its decision through an order to include such area in the existing composite licence within a period of sixty days from the date of receipt of the duly completed application. (6) The State Government may, after giving the applicant an opportunity of being heard and for reasons to be recorded in writing and communicated to the applicant, - (a) reduce the area applied for at the time of inclusion of the contiguous area in the area under composite licence; or (b) may refuse to include the area in case the applicant has not complied with the conditions specified in sub-rule (3). (7) Upon issuance of an order under sub-rule (5) for inclusion of contiguous area in the area under composite licence, the applicant shall, (a) submit a modified scheme of prospecting in accordance with of the requirement of the Mineral Conservation and Development Rules, 2017, for the entire area including the applied contiguous area; (b) obtain all consents, approvals, permits, no-objections and the like as may be required under the applicable laws for commencement of prospecting operations; and (c) furnish enhanced performance security commensurate to the increased value of estimated resources as may be applicable. (8) The State Government shall execute a supplementary prospecting licence deed of composite licence with the applicant upon fulfilment of the conditions specified in sub-rule (7). (9) The date of commencement of a duly executed supplementary licence deed shall be the date of registration of such licence deed and the period of such licence shall be co-terminus with the period of existing licence. (10) The licence holder shall be granted extension of the licence area only once during the licence period. 25C. Payment by mining lease holder or composite licence holder where contiguous area is included. (1) In case of the inclusion of contiguous area in a mining lease or a composite licence granted through auction, the lease holder shall pay an additional amount equal to ten per cent. of the auction premium to the State Government in respect of the mineral dispatched from the included area. (2) In case of the inclusion of contiguous area in a mining lease granted otherwise through auction, the lease holder shall pay an additional amount equal to the royalty payable for the mineral to the State Government in respect of the mineral dispatched from the included area. (3) The additional amount shall be in addition to royalty or payment to the District Mineral Foundation and National Mineral Exploration and Development Trust, any other statutory payment, payment specified in the tender document and the auction premium (wherever applicable) which is payable on the minerals produced from the contiguous area. CHAPTER VIII-B: INCLUSION OF ANY MINERAL OTHER THAN MINOR MINERAL IN MINING LEASE GRANTED IN RESPECT OF A MINOR MINERAL 25D. Exploration requirement for grant of mining lease in respect of minor mineral.— (1) On and from the date of commencement of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026, the State Government shall not grant a mining lease in respect of a minor mineral (other than sand) having an area above two hectares unless the exploration equivalent to at least Preliminary Exploration (G3) to establish Inferred Mineral Resource (333) as specified in the Minerals (Evidence of Mineral Contents) Rules, 2015, in respect of the minerals specified in Schedule-II of the said rules is completed in the area and a geological study report has been prepared conforming to Part IV-A of Schedule-I of the said rules. (2) For the purpose of sub-rule (1), the State Government may explore the area itself or through an agency specified or notified under sub-section (1) of section 4. (3) In case a mineral other than minor mineral is discovered in the area upon the exploration, the State Government shall auction the area for grant of mineral concession in respect of the mineral other than minor mineral. 25E. Inclusion of any mineral other than minor mineral in mining lease granted in respect of a minor mineral.— (1) The holder of a mining lease granted in respect of a minor mineral shall report to the State Government, the discovery in the leased area of any mineral other than minor mineral not specified in the mining lease within a period of six months from the date of commencement of the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026 or sixty days from the date of such discovery, whichever is later and shall not win and dispose of such discovered mineral before such mineral is included in his lease area. (2) Such holder of a mining lease may make an application to the State Government for its inclusion in his existing mining lease. (3) No such mineral shall be included by the State Government unless it is satisfied that- (a) General exploration (G2 level) over the entire potentially mineralised area under the mining lease has been carried out in the manner as specified in the Minerals (Evidence of Mineral Contents) Rules, 2015. (b) a Geological Study Report prepared in the manner specified in the Minerals (Evidence of Mineral Contents) Rules, 2015, has been submitted to the State Government along with the application. (4) The State Government shall have the right to seek any additional information, document or clarification from an applicant with respect to the application made. (5) In cases where mining lease in respect of minor mineral is executed and registered before the date of commencement of the Mines and Minerals (Development and Regulation) Amendment Act, 2025 (28 of 2025), that is, the 1st September, 2025, the State Government shall, subject to the compliance of the provisions of sub-rule (3), communicate its decision through an order for inclusion of mineral other than minor mineral in the mining lease within a period of sixty days from the date of receipt of the duly completed application: Provided that the State Government shall not include the atomic mineral as specified in Part B of the First Schedule to the Act discovered in the exploration, where the grade of such mineral is equal to or above the threshold value of such mineral and on its discovery, such mining lease shall be terminated. (6) The State Government, upon passing of the order under sub-rule (5) for inclusion of mineral other than minor mineral, shall intimate the following information to the Indian Bureau of Mines in respect of such mining lease, (a) the extent of area in which the presence of mineral other than minor mineral has been established; (b) type of mineral established in such area; (c) quantity and grade of mineral other than minor mineral; (d) quantity and grade of minor mineral present in the lease. (7) In case where the applicant has not complied with the conditions specified in sub-rule (3), the State Government may, after giving the applicant an opportunity of being heard and for reasons to be recorded in writing, communicate to the applicant, its refusal to include other mineral in the lease. (8) The holder of a mining lease wherein mineral has been included under this rule shall, (a) maintain accurate and faithful accounts separately, showing the quantity and other particulars for mining lease area including: (i) all minerals obtained and dispatched therefrom including the minerals included; (ii) waste material excavated from such area; and (iii) complete plans of the mine; (b) comply with the provisions of the Mineral Conservation and Development Rules, 2017, in respect of minerals other than a minor mineral; and (c) comply with the terms and conditions as specified in rule 12 of said rules, in addition to the terms and conditions as specified by the State Government in respect of a minor mineral. (9) In case of inclusion of any mineral other than a minor mineral in mining lease granted in respect of a minor mineral, the lessee shall pay the additional amount as specified in Eighth Schedule to the Act, upon dispatch of the included mineral: Provided that in case the minor mineral lease was auctioned by the State Government where the auction premium quoted was not based on value of mineral dispatched, then the lease holder shall pay an amount equivalent to the royalty of the mineral included in the mining lease under this rule as the additional amount.". SHAKIL ALAM, Economic Advisor Note.—The Minerals (Other than Atomic and Hydro Carbons Energy Minerals) 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. 22(E), dated the 12th January, 2026. Uploaded by Dte. of Printing at Government of India Press, Ring Road, Mayapuri, New Delhi-110064 and Published by the Controller of Publications, Delhi-110054. SARVESH KUMAR Distalsigned by SARVESH SRIVASTAVA KUMAR SRIVASTAVA Date: 2026.03.31 20:29:04+0530

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