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Informist, Monday, Apr. 6, 2026

 

NEW DELHI – The mines ministry has notified amendments to the mineral concession rules, enabling inclusion of contiguous areas and associated minerals in mining leases, a move aimed at boosting exploration and production of critical minerals in the country, the government said in a release Monday. 

 

The Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026, notified on Mar. 30, lay down a detailed mechanism for adding contiguous areas to existing mining leases and composite licences for deep-seated minerals, and for including associated minerals in both major and minor mineral leases.

 

Under the new rules, holders of mining leases or composite licences for deep-seated minerals can apply for a one-time expansion to include contiguous areas. The additional area is capped at 10% of the existing lease area in case of mining leases and 30% for composite licences, the release said.

 

For auctioned blocks, lessees will have to pay 10% of the auction premium on minerals dispatched from the added area. For non-auctioned leases, an additional payment equivalent to the royalty on minerals from the extended area will apply.

 

The ministry said allowing inclusion of contiguous areas would facilitate optimal extraction of deep-seated minerals that may otherwise remain unviable under separate leases.

 

The amended rules also prescribe a time-bound framework for inclusion of additional minerals in an existing lease, mandating state governments to approve such applications within 30 days. No extra charge will be levied for inclusion of critical, strategic, or deep-seated minerals listed in the Seventh Schedule of the Act, as per the release.

 

Further, the rules enable inclusion of major minerals in leases originally granted for minor minerals prior to the 2025 amendment. For future minor mineral leases --excluding sand-- states have been directed to ensure exploration up to the preliminary exploration stage before grant. If major minerals are discovered during exploration, the area will be auctioned as a major mineral block.

 

In line with amendments to the Act, the rules also remove restrictions on sale of minerals from captive mines. Operators will be allowed to sell surplus output after meeting the full requirement of the end-use plant. If the plant operates below full capacity, sale will be limited to the quantity consumed in the plant during a financial year.

 

The government said these simplified and time-bound provisions would improve ease of doing business, enhance mineral availability, particularly for micro, small, and medium enterprises, and increase domestic production of critical and strategic minerals, while also boosting revenue for state governments.  End

 

Reported by Pallavi Singhal

Edited by Tanima Banerjee

 

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