In a strategic move to secure global supplies of essential resources, the government is planning fresh amendments to the Mines and Minerals (Development and Regulation) Amendment Act, 2023 (MMDR Act). The proposed changes aim to facilitate the use of funds — currently pegged at ₹5,600 crore — specifically for the exploration of critical mineral assets overseas. Officials say these amendments are likely to be introduced in the upcoming monsoon session of parliament.
Supporting the National Critical Minerals Mission
The government has designed these legislative changes to bolster the National Critical Minerals Mission (NCMM) — India’s flagship programme aimed at ensuring a reliable supply of critical minerals for commercial and strategic applications.
With a projected government outlay of ₹16,300 crore over FY2024-25 to FY2030-31, and an additional ₹18,000 crore expected from Central Public Sector Enterprises (CPSEs), the NCMM also promotes advanced recovery technologies to extract critical minerals from waste and tailings.
India has identified 24 critical minerals to date, including lithium, cobalt, vanadium, rare earth elements (REEs), platinum group elements (PGEs), nickel, niobium, germanium, beryllium, tantalum, and strontium. “These amendments will help accelerate the Mission’s objectives,” said VL Kantha Rao, Union Mines Secretary.
Expanding the Scope of NMET for Overseas Exploration
One of the key proposed changes is to allow the use of National Mineral Exploration Trust (NMET) funds for overseas exploration. Until now, NMET funds — built through a 2% royalty contribution by mining leaseholders — have been reserved for domestic exploration. The current NMET corpus stands at approximately ₹6,000 crore.
The amendments will enable the allocation of ₹5,600 crore over six years (2024–25 to 2030–31) for global efforts. This includes:
*₹4,000 crore for risk coverage in foreign mineral sourcing, and
*₹1,600 crore to support exploration activities abroad.
A senior official also confirmed that the government may tap NMET funds to set up processing facilities overseas, particularly in locations like Zambia, where India recently secured access to over 9,000 sq km of copper and cobalt blocks.
Tailings Policy and Royalty Overhaul on the Cards
Another key area of reform is the introduction of a national tailings policy. This policy will incentivise private sector participation in the recovery of critical minerals from dumped bulk mineral waste (tailings).
Tailings, which are by-products of mineral extraction, often contain trace amounts of valuable metals. They typically consist of finely ground rock, water, and residual chemicals, existing in solid, liquid, or slurry forms. To attract investments, the government is working on a revised royalty structure that will support beneficiation from tailings and promote resource recovery.
Rethinking Minor Minerals Classification
In a parallel move, the government is also reevaluating the status of certain minor minerals — such as barytes, feldspar, mica, and quartz. The government will now reassess these minerals for critical mineral content, after previously classifying them for industrial uses (e.g., ceramics and construction).
This shift enables authorities to extract and report any valuable associated critical minerals properly, further aligning with India’s growing ambitions in the global critical mineral value chain.
As reported by thehindubusinessline.com, by broadening the legislative framework and unlocking funding for overseas exploration and waste-to-resource initiatives, India is taking decisive steps toward securing its strategic mineral independence.
