The Government of India approved amendments to the Mines and Minerals (Development and Regulation) Act, 1957. The amendments aim to encourage mineral exploration and development in the country with a special focus on minerals such as lithium, gold, silver, copper, and zinc. The changes are the fifth amendment to the Act since 2014, reflecting India’s commitment to harnessing its mineral resources.
Promotion of lithium and minerals present in the depths
- One of the key outcomes of the amended Act is the expected growth in exploration and mining of lithium, which plays a key role in the electric vehicle (EV) era.
- Along with lithium, the government aims to encourage exploration of deeper minerals such as gold, silver, copper and zinc.
- These minerals are of significant economic and strategic importance, and their exploration and extraction will contribute to India’s resource independence and industrial development.
Exploration License through Auction
- The amendment proposes to grant exploration licenses through auction for reconnaissance and prospecting operations. Unlike the government’s traditional practice of defining exploration areas for auction, companies will now have an opportunity to suggest areas they wish to explore.
- The move encourages private sector participation and enables companies to leverage their expertise and knowledge in identifying potential mineral-rich areas.
Minerals specified in the new schedule
- The amended Act includes a new schedule specifying minerals eligible for exploration and extraction.
- These include copper, tellurium, selenium, lead, zinc, cadmium, indium, gold, silver, diamond, rock phosphate, apatite, potash and rare earth group elements.
- Adding these minerals to the schedule creates a transparent framework and provides clarity to potential investors and exploration companies.
Encouraging private sector participation
- The objective of these amendments is to encourage private sector participation in mineral exploration, especially precious and critical minerals.
- Mining companies will have the opportunity to secure exploration rights based on available baseline survey data. They can then explore the designated area from the reconnaissance phase and proceed towards full-scale mining operations.
Global investment
- India’s mineral-rich potential is attracting attention globally. Despite this, only 1% of the global budget for mineral exploration is spent in India. The recent amendments, along with a focus on precious and critical minerals, are expected to create an enabling environment for increased investment.
- This will not only boost the country’s mineral exploration activities but also contribute to employment generation, technological progress and sustainable economic development.