Mines and Minerals Amendment Bill, 2025

• 21 Aug 2025

Source: TH 

The Parliament passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2025 to boost critical mineral production and advance the National Critical Mineral Mission (NCMM) through sustainable, zero-waste mining. 

What are the Key Provisions of Mines and Minerals (Amendment) Bill, 2025? 

• Critical Minerals Push: Amends the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957 to allow leaseholders to add critical and strategic minerals to existing leases without extra royalty. 
• Institutional Reforms: Empowers the government to establish mineral exchanges. It renamed the National Mineral Exploration Trust (NMET) to National Mineral Exploration and Development Trust (NMEDT), raising royalty from 2% to 3% to fund exploration and mine development. 
• Exploration & Production: The Bill promotes sustainable, zero-waste, deep-seated, and offshore mining (e.g., Andaman Sea polymetallic nodules), removes the 50% sale cap on captive mines for unrestricted sale post end-use. 
  • It also allowed a one-time extension of lease areas for deep-seated minerals, up to 10% for mining leases and 30% for composite licences.

What are Critical Minerals & NCMM?

Critical Minerals 

• About: Minerals essential for economic growth and national security & supply risks arise due to scarcity or concentration of extraction/processing. 
  • India has limited reserves of critical minerals & is largely import-dependent (100% lithium and nickel, 93% copper). 

• Identification: India has identified 30 critical minerals, with 24 listed in Part D, Schedule I of MMDR Act, 1957, giving the Central Government exclusive authority to auction their mining leases and licences. 
• Applications: Silicon, tellurium, indium, gallium (in solar panels);  dysprosium, neodymium (in wind turbines); lithium, nickel, cobalt (in EV batteries and energy storage). 
• Global Mineral Diplomacy: Through KABIL (NALCO-HCL-MECL JV), India identifies, explores, acquires, and develops minerals abroad (5 lithium blocks in Argentina from 2026, Zambia, Australia) and partners with multiple countries and the International Energy Agency (IEA) to secure critical minerals. 

National Critical Mineral Mission (NCMM): 

• NCMM was launched in 2025 under the Ministry of Mines. It aims to secure India’s critical mineral supply chain, ensure availability from domestic and foreign sources, and enhance value chains via technology, regulation, finance, innovation, and skill development. 
• It adopts a whole-of-government approach with fast-track approvals, develops stockpiles, processing parks, and a Centre of Excellence, promotes recycling and international partnerships. 
  • It also supports startups/MSMEs via the PRISM initiative. 
• Geological Survey of India (GSI)  is tasked with 1,200 exploration projects from 2024-25 to 2030-31. 

UPSC Civil Services Examination Previous Year Question (PYQ)  

Prelims:

Q1.Consider the following minerals: (2020) 

1. Bentonite  
2. Chromite  
3. Kyanite  
4. Sillimanite  

In India, which of the above is/are officially designated as major minerals?  

(A) 1 and 2 only  

(B) 4 only  

(C) 1 and 3 only  

(D) 2, 3 and 4 only  

Ans: D 

Q2.Recently, there has been a concern over the short supply of a group of elements called ‘rare earth metals’. Why? (2012)  

1. China, which is the largest producer of these elements, has imposed some restrictions on their export.  
2. Other than China, Australia, Canada and Chile, these elements are not found in any country.  
3. Rare earth metals are essential for the manufacture of various kinds of electronic items and there is a growing demand for these elements.  

Which of the statements given above is/are correct?  

(A) 1 only  

(B) 2 and 3 only  

(C) 1 and 3 only  

(D) 1, 2 and 3  

Ans: C

Q. With reference to the management of minor minerals in India, consider the following statements: (2019)

1. Sand is a ‘minor mineral’ according to the prevailing law in the country  
2. State Governments have the power to grant mining leases of minor minerals, but the pwers regarding the formation of rules related to the grant of minor minerals lie with the Coentral Government.  
3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.  

Which of the statements given above is/are correct? 

(a) 1 and 3 only  

(b) 2 and 3 only  

(c) 3 only  

(d) 1, 2 and 3  

Ans: (a)

Q. What is/are the purpose/purposes of ‘District Mineral Foundations’ in India? (2016)

1. Promoting mineral exploration activities in mineral-rich districts  
2. Protecting the interests of the persons affected by mining operations  
3. Authorizing State Governments to issue licenses for mineral exploration  

Select the correct answer using the code given below: 

(a) 1 and 2 only  

(b) 2 only  

(c) 1 and 3 only  

(d) 1, 2 and 3  

Ans: (b)

Mains:

Q. Discuss the multi-dimensional implications of uneven distribution of mineral oil in the world. (2021)