Bill aims to bolster India’s mineral sector, secure supply chains for critical resources, and align with the National Critical Mineral Mission amidst global disruptions and import reliance.
Key Highlights of Amendments
- National Mineral Exploration and Development Trust (NMEDT): National Mineral Exploration Trust is renamed NMEDT, with its mandate to include offshore and international exploration for critical minerals.
- To fund NMEDT, contribution from mining leaseholders will increase from 2% to 3% of royalty payable.
- Establishment of "Mineral Exchanges": These are electronic trading platforms for minerals, concentrates, and processed forms, including metals.
- These exchanges aim to create a transparent, dynamic market for price discovery.
- Incentivizing Critical Mineral Extraction: Bill simplifies the inclusion of new minerals in existing mining leases.
- There will be no additional royalty payments for critical minerals listed in the Seventh Schedule or Part D of the First Schedule when included in an existing lease.
- A one-time extension of mining lease areas is permitted: Up to 10% for deep-seated minerals (below 200 meters) and 30% for composite licenses.
- Removal of Cap on Sale from Captive Mines: The 50 per cent cap on mineral sales from captive mines (Owned and operated by a company for its own exclusive use) is removed.
- State governments are also permitted to authorise the sale of old mineral dumps.
