Government makes amendments to mining concession rules
The amendments give impetus to the mining sector to increase the supply of minerals for industries, leading to strengthening Atmanirbhar Bharat
With an aim to unlock deep-seated critical minerals and boost India's self-reliance in the mining sector, the government has made amendments to the mining concession rules, allowing licensed operators to expand exploration. The amendments will enable the inclusion of contiguous areas in mining leases and composite licences, as well as the addition of associated minerals to leases of major and minor minerals. The mines ministry said that allowing inclusion of contiguous area will promote optimal mining of deep-seated minerals, which are locked up in contiguous areas and may not be economically viable to be extracted under a separate lease or licence.
The ministry added that the amended rules lay down a simple and time-bound process for holders of mining leases or composite licences for deep-seated minerals to apply for a one-time addition of nearby land. It also noted that the added area cannot exceed 10% of the existing lease area or 30% of the licence area. For auctioned leases, the holder must pay 10% of the auction premium on minerals from the added land, while non-auctioned lease holders need to pay an amount equal to the royalty on such output. The ministry emphasized that the amendments give impetus to the mining sector to increase the supply of minerals for industries, leading to strengthening Atmanirbhar Bharat.
Moreover, the amendments provide the inclusion of any other mineral, including a minor mineral, in a mining lease and mandate states to permit such inclusion within 30 days of the application. Further, the ministry noted that no additional amount is applicable on inclusion of critical and strategic mineral or deep-seated minerals specified in the Seventh Scheule to the MMDR Act to incentivise production of these minerals, which are found in small quantity and are difficult to mine and process.

