In a move aimed at enhancing the exploration of crucial and deep-seated minerals, the ministry of mines has introduced a new scheme allowing National Private Exploration Agencies (NPEAs) to directly approve exploration projects. The initiative also grants the agencies the privilege of participating in the auctioning of mineral blocks, a right that was previously unavailable.
The reform originates from the amendment of the mines and minerals (development and regulation) Act, 1957, via the MMDR Amendment Act, 2021, which became effective on March 28, 2021. This amendment empowers the central government to authorise entities, including private ones, to conduct prospecting operations.
Since March 2022, the ministry has identified sixteen private exploration agencies to undertake exploration projects through state governments, with funding provided by the national mineral exploration trust (NMET). Out of the seventeen projects approved for a total of ₹15.88 crore, eleven are specifically focused on critical minerals.
A subsequent amendment to the MMDR Act on August 17, 2023, classified twenty-four minerals, such as graphite, nickel, and potash, as critical and strategic. This modification grants the central government the authority to oversee mineral concession grants for these minerals, ensuring expedited auction and production aligned with national needs.
In accordance with the 2023 amendments, the ministry has introduced a transformative scheme. This allows NPEAs to independently approve exploration projects for minerals specified in Part D of the first schedule and the seventh schedule of the MMDR Act, 1957, funded by NMET. Additionally, these agencies can now participate in the auction of mineral blocks they have explored.
As reported by ETEnergyworld.com, the policy change is expected to streamline the approval process and expedite project implementation. It also aims to attract major mining companies to the exploration sector in India. The provision is anticipated to incentivize junior mining companies globally to undertake exploration projects in India with NMET funding, potentially introducing new exploration technologies.
