Mineral Concession (Second Amendment) Rules 2026: Key Amendments for Critical Mineral Exploration

Recently, the Ministry of Mines notified the Mineral Concession (Second Amendment) Rules, 2026 to boost critical mineral exploration and ease mining operations.

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About the Mineral (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026

• Objective: To enhance exploration, production, and efficient utilisation of critical, strategic, and deep-seated minerals.
• Legal Basis and Framework: Notified under the Mines and Minerals (Development and Regulation) Act, 1957 as amended in 2025.
• Nodal Ministry: Administered by the Ministry of Mines, responsible for policy formulation and sector regulation.
• Implementing Authorities: State Governments grant leases and approvals, while technical oversight is provided by the Indian Bureau of Mines (IBM).
  • IBM was established in 1948 with headquarters in Nagpur under the Ministry of Mines as an apex regulatory body ensuring sustainable and systematic mining practices.
  • It promotes scientific development, conservation, and environmental protection in mines (excluding coal, petroleum, natural gas, and atomic/minor minerals)

Key Amendments to the Rules

• Inclusion of Contiguous Areas: Mining Lease (ML) holders can expand area by up to 10%, and Composite Licence (CL) holders by up to 30%, enabling efficient extraction of deep-seated minerals.
• Financial Obligations for Added Areas: For auctioned leases, miners must pay 10% of the auction premium, while non-auction leases require royalty-equivalent payments on minerals from added areas.
• Inclusion of Associated Minerals: State governments must approve inclusion of additional minerals within 30 days, with no extra charges for critical/deep-seated minerals (Seventh Schedule).
• Reforms in Minor Mineral Leasing: Future leases (except sand) require G3-level exploration, and discovery of major minerals mandates auction as a major mineral block.
• Liberalisation of Captive Mining: Removal of restrictions allows sale of surplus minerals after meeting plant needs, enhancing market supply, especially for MSMEs.

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Potential Significance of the New Provisions

• Boost to Critical Mineral Supply: Encourages production of minerals essential for renewable energy, electronics, and defence sectors, reducing import dependence.
• Ease of Doing Business: Time-bound approvals and simplified procedures improve investment climate and private sector participation.
• Optimal Resource Utilisation: Inclusion of contiguous areas ensures economically viable and scientific mining, reducing wastage.
• Increased Revenue for States: Additional payments (premium/royalty) and higher production enhance state revenues and fiscal capacity.

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These reforms align with Atmanirbhar Bharat by strengthening India’s mineral security, industrial growth, and sustainable resource management.

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