Govt to seek Parliament approval for amendments to mining law
overseas critical mineral assets
.
A senior official told
ET
that the proposal has received necessary internal approvals, and the Bill to amend the Mines and Minerals (Development and Regulation) Act (MMDR) could be introduced as early as Monday.
The funding is proposed to come from the
National Mineral Exploration Trust
(NMET), which has a corpus of more than ₹6,000 crore. The amount is collected from mining lease holders, who deposit 2 per cent of the applicable royalty with the trust.
Expanded mandate for NMET
The NMET will be renamed to include 'development' in its title, reflecting its broader mandate to cover exploration, acquisition and development of critical mineral assets abroad.
The official said the amendment would address the availability of critical mineral raw materials. In addition to financing new acquisitions, the Centre also aims to permit the disposal of mineral dumps from captive mines through lump-sum sales.
According to government inputs, many captive mines have accumulated large quantities of low-grade or unsuitable minerals. More than half the minerals produced in some mines are not usable in their designated plants, and current rules do not allow their disposal. The proposed changes would allow states to approve sales of such dumps on payment of an additional amount.
Lease expansion for newly discovered minerals
The amendments would also simplify regulations to allow newly discovered minerals and contiguous areas to be added to an existing mining lease for a fee. Holders of leases for deep-seated minerals could apply to extend their permits to cover contiguous areas, with a one-time enhancement capped at 10 per cent of the existing lease area.
The MMDR Act was last amended in 2023.
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