The Ministry of Mines has amended the Mineral Concession Rules to simplify mining lease administration. The changes allow inclusion of contiguous area and associated minerals in an existing mining lease, subject to prescribed conditions and timelines. The amendments are aimed at improving operational efficiency, reducing procedural delays, and enabling better utilisation of mineral-bearing areas.
Key Changes in the Rules
- A holder of a mining lease or composite licence for deep-seated minerals can seek a one-time extension to include a contiguous area.
- The application process has been made simple and time-bound.
- The rules also provide a mechanism to include any other mineral, including a minor mineral, in an existing mining lease.
Time-bound Approval Process
- The State Government must permit such inclusion within 30 days of the application.
- The provision is intended to reduce uncertainty in lease management.
- It also supports faster decision-making in mineral-rich blocks.
Inclusion of Major Minerals in Minor Mineral Leases
- The amendment provides a procedure for including major minerals in leases originally granted for minor minerals.
- This applies to leases executed before the Mines and Minerals (Development and Regulation) Act, 2025.
- The change seeks to align older lease arrangements with the revised regulatory framework.
Significance for the Mining Sector
- The amendment may improve resource extraction from contiguous mineral zones.
- It can reduce fragmentation in lease areas and improve project viability.
- The rules are also expected to support smoother regulatory compliance for lease holders.