Centre to seek Parliament nod for amendments to mining laws
What's the story
The Indian government is gearing up to seek parliamentary approval for amendments to the mining laws. The proposed changes are aimed at enabling state funding for the acquisition of critical mineral assets abroad. The Bill, which seeks to amend the Mines and Minerals (Development and Regulation) Act, has already been approved internally and could be tabled in Parliament as early as today, according to The Economic Times.
Financial strategy
Funding overseas acquisitions from NMET
The government plans to fund these overseas acquisitions from the National Mineral Exploration Trust (NMET). The trust currently has over ₹6,000 crore in its corpus, collected from mining lease holders who are required to deposit 2% of the applicable royalty with it. The NMET will also be renamed to include 'development' in its name, reflecting an expanded mandate that includes exploration and acquisition of critical minerals abroad.
Supply chain enhancement
Addressing critical mineral raw material availability
The proposed amendments are part of a larger effort to boost critical mineral supply chains in India. The last amendment to the MMDR Act was made in 2023. An official told ET that, "The amendment will address the core issue of critical mineral raw material availability." This highlights the government's focus on ensuring a steady supply of these essential minerals for various industries.
Waste management
Proposed changes to empower states for mineral dumps disposal
The government also wants to allow the disposal of mineral dumps through lump-sum sale from captive mines. These dumps have been accumulated over time and are not usable due to their low grade or unsuitability for plants. The proposed changes will empower states to permit the sale of these dumps stacked in a leased area on payment of an additional amount.
Regulatory changes
Simplifying regulations for mining leases
The proposed amendments also seek to simplify regulations to include newly discovered minerals and contiguous areas to an existing mining lease for a fee. A leaseholder for a deep-seated mineral resource could apply to extend the permit to include a contiguous area. However, this would be a one-time facility with the enhancement capped at 10% of the existing leased area. These changes are aimed at making it easier for companies to explore and exploit mineral resources.