Bill adds Eighth Schedule to Mines Act, expands mineral leases

This Bill amends the Mines and Minerals (Development and Regulation) Act, 1957 to support the National Critical Mineral Mission by expanding the scope of the National Mineral Exploration Trust, allowing the inclusion of additional minerals in existing leases, and promoting the development of mineral trading markets.

Who it concerns: Holders of mining leases and composite licenses (specifically for deep-seated minerals), lessees of mines, and entities involved in the trading of minerals, their concentrates, or processed forms (including metals).

What the bill does

• Defines 'mineral exchange' as an electronic trading platform registered under the Act.
• Allows holders of deep-seated mineral leases to apply for a one-time extension of their leased area by up to 10% (or 30% for composite licenses) to include contiguous areas.
• Renames the 'National Mineral Exploration Trust' to the 'National Mineral Exploration and Development Trust'.
• Increases the payment to the Trust from 2% to 3% of the royalty payable.
• Expands the Trust's scope to use funds within India (including offshore areas) and outside India for exploration and development.
• Allows the inclusion of other minerals in an existing mining lease based on a geological report, subject to payment of additional amounts specified in a new Eighth Schedule.
• Mandates the Central Government to promote the development of mineral markets and trading through mineral exchanges.
• Empowers the Central Government to appoint an authority to register and regulate mineral exchanges, including preventing market manipulation and insider trading.
• Inserts a new Eighth Schedule detailing additional amounts payable for included minerals based on the type of lease and mineral category.

Also in the document

• The Bill is an amendment to the Mines and Minerals (Development and Regulation) Act, 1957.
• It introduces a new Eighth Schedule to the principal Act.
• The Statement of Objects and Reasons cites global geo-political developments and supply-chain constraints as reasons for the amendments.
• The Bill aims to support the National Critical Mineral Mission.