New Delhi, April 6 (NationPress) The Ministry of Mines has announced amendments to the Minerals Concession Rules to enhance the exploration and production of critical minerals utilized in electric vehicle manufacturing, advanced electronic devices, and defense apparatus, as stated in an official announcement made on Monday.

The Minerals Concession Rules 2026, released on March 30, detail the process for including contiguous areas in mining leases and composite licenses for deep-seated minerals, as well as for associated minerals in leases for both major and minor minerals.

Changes to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act), through the MMDR Amendment Act, 2025, are designed to invigorate the mining sector, thereby enhancing mineral supply for various industries and contributing to the 'Atmanirbhar Bharat' initiative, as per the statement.

The revised rules offer straightforward and timely processes for applications from holders of mining leases (ML) or composite licenses (CL) for a one-time area extension to include an adjacent area. For ML, the contiguous area cannot exceed 10 percent, while for CL, it must not surpass 30 percent of the current lease or license area. Should a contiguous area be added to an auctioned ML or CL, the holder must remit 10 percent of the auction premium on dispatched minerals from that area. In cases where the lease was granted without auction, the holder is required to pay an amount equivalent to the royalty on minerals dispatched from the added region.

Permitting the inclusion of contiguous areas will facilitate optimal mining of deep-seated minerals that are confined in adjacent regions and may not be economically viable to extract under a separate lease or license.

The regulations also outline how to include other minerals, including minor minerals, in a mining lease and require state governments to approve such inclusion within 30 days of the application. There are no additional fees for including critical and strategic minerals or deep-seated minerals listed in the Seventh Schedule of the MMDR Act, to encourage the production of these minerals, which are often found in limited quantities and are challenging to extract and process.

The Amendment also specifies the process for integrating major minerals into leases granted for minor minerals executed prior to the MMDR Amendment Act, 2025. For future minor mineral leases, state governments are mandated to ensure that ML for minor minerals (excluding sand) is granted only after exploration of the area up to the G3 level. If any major minerals are identified during exploration, the state government will auction the area as a major mineral block, further promoting optimal mining practices.

In addition, the rules were modified following the Act's amendment to eliminate the cap on mineral sales from captive mines. Miners can sell minerals once they meet the requirements linked to the end-use plant associated with the mine, provided the plant operates at full capacity. If the plant operates below full capacity, the lessee may only sell the amount equal to what is consumed in the end-use plant during the financial year. This change is expected to enhance mineral availability in the market, particularly for MSMEs.

The streamlined framework introduced in the Amendment rules will not only facilitate a better business environment in the sector but also promote increased production of critical, strategic, and deep-seated minerals. Moreover, state governments stand to gain from additional revenues and increased production. The rules were developed after substantial consultations with state governments, central ministries, industry associations, and various stakeholders, the statement concluded.