The Rajya Sabha has passed the Mines and Minerals (Development and Regulation) Amendment Bill, 2023 for making amendments to the Mines and Minerals (Development and Regulation) Act, 1957 (hereinafter referred to as ‘the Act’) on August 2.
- The Bill was passed by the Lok Sabha on 28.07.2023 and with the passage of the Bill in Rajya Sabha, the Bill will be sent to the President of India for assent.
The bill has the following provisions:
1. Omission of 6 minerals from the list of 12 atomic minerals specified in Part-B of the First Schedule of the Act, namely, Lithium bearing minerals, Titanium bearing minerals and ores, Beryl and other beryllium bearing minerals, Niobium and Tantalum bearing minerals and Zirconium-bearing minerals.
- These minerals are technology and energy critical having use in space industry, electronics, technology and communications, energy sector, electric batteries and are critical in net-zero emission commitment of India.
- Upon removal of these minerals from the list of atomic minerals, exploration and mining of these minerals will be open to the private sector. As a result, exploration and mining of these minerals is expected to increase significantly in the country.
2. Empowering the Central Government to exclusively auction mineral concessions for critical minerals specified in Part D of the First Schedule of the Act.
- Revenue from these auctions will accrue to the concerned State Government.
- Even though auction would be conducted by the Central Government, the mining lease or composite licence for these minerals to the successful bidders will be granted by the State Government only and the auction premium and other statutory payments shall continue to be received by the State Government.
3. The bill has introduced an exploration licence for deep-seated and critical minerals.
- The Bill introduces provisions for grant of a new mineral concession, namely, Exploration Licence (EL), in the Act.
- The exploration licence granted through auction shall permit the licencee to undertake reconnaissance and prospecting operations for critical and deep-seated minerals mentioned in the newly proposed Seventh Schedule to the Act.
- These minerals are copper, gold, silver, diamond, lithium, cobalt, molybdenum, lead, zinc, cadmium, elements of the rare earth group, graphite, vanadium, nickel, tin, tellurium, selenium, indium, rock phosphate, apatite, potash, rhenium, tungsten, platinum group of elements and other minerals proposed to be removed from the list of atomic minerals.
- Preferred bidder for exploration licence shall be selected through reverse bidding for share in auction premium payable by the mining lease (ML) holder. Bidder quoting lowest percentage bid shall be preferred bidder for exploration licence.
- This amendment is expected to provide a conducive legal environment for attracting FDI and junior mining companies in the country.
