Govt targets critical minerals security through mining law changes

Business Standard

2 days ago

The Centre is reportedly preparing to push key amendments to mining laws in Parliament this week, paving the way for state funding to acquire overseas critical mineral assets. The proposal, aimed at securing long-term access to resources like lithium, copper, cobalt, and rare earth elements, comes amid tightening global supply and rising geopolitical risks.
What's the latest
The amendments to the Mines and Minerals (Development and Regulation) Act (MMDR) could be introduced as early as Monday, according to a report by The Economic Times. Funding for overseas acquisitions will come from the National Mineral Exploration Trust (NMET), which has a corpus exceeding ₹6,000 crore collected from mining lease holders, who pay 2 per cent of applicable royalty.
Why it matters
The Bill also proposes major domestic mining reforms:
Allows sale of low-grade mineral dumps from captive mines for a lump sum, with state approval and additional fee
Eases process to add newly discovered minerals and contiguous areas to existing mining leases, capped at 10 per cent of leased area
One-time expansion targets deep-seated mineral resources
Could reduce waste, as data shows over half of minerals from some captive mines are currently unusable, according to The Economic Times report
The importance of the Bill is further underscored by China's grip on the global supply chain. Controlling over 60 per cent of rare earth mining, Beijing has recently tightened exports, even cutting off supplies to Indian vehicle makers since April 4. This move has crippled the electric two-wheeler sector, slashing production by half.
With critical minerals forming the backbone of solar panels, wind turbines, EVs, and energy storage systems, the Bill is central to India's push for resource security, supply chain resilience, and a smooth clean energy transition.
Flashback
The MMDR Act was last amended in 2023. In 2025, the government launched the National Critical Mineral Mission (NCMM) to establish a framework for self-reliance. The Geological Survey of India has been tasked with 1,200 exploration projects between 2024-25 and 2030-31.
With NCMM, the government aims to secure supply from domestic and overseas sources, strengthen value chains, foster innovation, and boost competitiveness in mining, processing, and recycling.
The big picture
By combining overseas acquisitions with domestic regulatory reforms, the government is looking to shield India from supply shocks, reduce dependence on single suppliers, and safeguard its clean energy transition.