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Ministry of Mines | Indian Bureau of Mines (IBM)
The Ministry of Mines has issued a notice for public consultation on proposed amendments to the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016 (MCR, 2016). These changes follow the MMDR Amendment Act, 2025, which came into effect on September 1, 2025, to streamline mineral administration and encourage the exploration of critical resources.
Key proposed amendments include:
Deep-Seated Minerals: Formal definition of minerals occurring at depths exceeding 200 meters with poor surface manifestations, enabling targeted exploration strategies.
Inclusion of Contiguous Areas: Holders of mining leases or composite licenses for deep-seated minerals can apply for a one-time extension of their leased area to include contiguous land (up to 10% for leases and 30% for licenses) based on geological continuity.
Simplified Mineral Inclusion: Leaseholders may now apply to include “discovered” minerals in their existing lease within 30 days, facilitating the extraction of secondary minerals without entirely new auction processes.
Captive Mine Liberalization: Captive mine lessees are now permitted to sell produced minerals after meeting the requirements of their linked end-use plants.
Minor to Major Mineral Transition: If a minor mineral lease area is found to contain more than 25% “major” minerals by value or quantity, the lease will be terminated and re-auctioned, though the original holder retains a Right of First Refusal (ROFR).
What are Deep-Seated Minerals? These are specific minerals, such as gold, silver, copper, and rare earth elements, that typically occur deep within the earth’s crust (more than 200 meters from the surface) and show very little evidence on the surface. Because they are difficult and expensive to find, the government provides special incentives and easier land-extension rules to encourage specialized companies to invest in the advanced technology needed to discover them.
Policy Relevance
These amendments are pivotal for India’s Mineral Security and the “Atmanirbhar Bharat” initiative, particularly for securing critical minerals required for the green energy transition. By allowing for the inclusion of contiguous areas and simplifying the process for adding newly discovered minerals, the Ministry aims to maximize the recovery of deep-seated resources from existing infrastructure. The policy also introduces a fairer “Right of First Refusal” for minor mineral leaseholders, ensuring that domestic entrepreneurs are not unfairly penalized when their land yields unexpected high-value national resources.
Follow the full news here: Amendments to Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession Rules, 2016 (MCR, 2016)