Mines and Minerals Development and Regulation Amendment Bill 2023

The Centre is presenting amendments to The Mines and Mineral (Development and Regulation) Act,
1957, to facilitate the participation of private players in the mining of deep-seated minerals, including
lithium. The Mines and Mineral (Development and Regulation) Amendment Bill 2023 was introduced
in the Lok Sabha on Wednesday by Parliamentary Affairs Minister Prahlad Joshi.
The proposed Bill seeks to remove at least six atomic minerals, previously restricted from commercial
mining, from the list of 12. Notably, lithium, a vital non-ferrous alkali metal used in electric vehicles,
batteries, and various energy storage solutions, is among the significant minerals to be excluded
through this parliamentary measure.
Previously, government entities had exclusive rights for mining and exploration of minerals listed
under atomic minerals. The remaining five minerals are beryl and other beryllium-bearing minerals,
niobium-bearing minerals, titanium-bearing minerals and ore, tantalum, and zirconium-bearing
minerals and ores.
These minerals find applications in the space industry, electronics, communications, energy sector,
and electric batteries. The Bill highlights that these minerals are also crucial for India's commitment to
achieving net-zero emissions.
The Bill acknowledges the scarcity of critical minerals, their concentration in limited geographical
regions, and the potential risks of supply chain vulnerabilities and disruptions.
Consequently, a significant reform proposed is the introduction of an exploration license for deep-
seated and critical minerals. This license aims to encourage and incentivize private sector involvement
in the exploration of these essential minerals.
As stated in the Bill, the exploration license obtained through auction will authorize the licensee to
conduct reconnaissance and prospecting operations for critical and deep-seated minerals, such as gold,
silver, copper, zinc, lead, nickel, cobalt, platinum group minerals, diamonds, and more. Exploring and
mining these minerals is challenging and costly compared to surface or bulk minerals.
The Bill further explains that the blocks explored by the exploration license holder will be auctioned
for mining leases within the specified timeframe, generating enhanced revenue for the State
Governments. Additionally, the exploration agency will be entitled to a share in the auction premium
paid by the mining lease holder.