Mines and Minerals (Development and Regulation) Amendment Act, 2025

The Mines and Minerals (Development and Regulation) Amendment Act, 2025 amends the Mines and Minerals (Development and Regulation) Act, 1957, building on earlier reforms, particularly the 2023 amendment, which introduced an exploration licensing regime and a framework for the auction and development of critical and deep‑seated minerals. The 2025 amendment aims to accelerate mineral production, enhance operational flexibility and promote the development of a minerals market in India.

The key policy actions taken under this amendment are set out below:

• Expanded exploration and development financing: The amendment expands the scope of the National Mineral Exploration and Development Trust, allowing its funds to be used for onshore, offshore and overseas exploration and development. The contribution amounts payable by lessees into the Trust have also been increased from 2% to 3% of royalty.
• Inclusion of additional minerals: The amendment allows for the inclusion of new minerals in existing mining leases, with no additional amounts payable for critical or strategic seated minerals.
• Extension of mining areas: The amendment allows for a one‑time extension of up to 10% (mining leases) or 30% (composite licences) of contiguous lease area to promote the mining of deep‑seated minerals.
• Development of minerals market: The amendment empowers the Central Government to establish mineral exchanges for transparent trading of minerals, its concentrate or its processed forms, with a view to promote fair and transparent price discovery.
• Liberalised sale from captive mines: The amendment removes caps on sale of surplus production from captive mines after meeting end‑use requirements and permits sale of legacy mineral dumps which cannot be captively utilised.
• Faster mineral auctions: Removes the requirement for prior Central Government approval for auctions of bauxite, iron ore, limestone and manganese under composite licences to expedite auctions.

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