The Central Government is preparing to introduce amendments to mining legislations in Parliament, with a primary focus on enabling state funding for acquiring critical mineral assets overseas, as per a report. ET reported a senior government official as saying that the proposal has received necessary internal approvals, and the Bill to amend the Mines and Minerals (Development and Regulation) Act could be presented in the Parliament as early as Monday.
The funding for these international acquisitions would be drawn from the National Mineral Exploration Trust (NMET), which reportedly holds a corpus of more than Rs 6,000 crore. These funds have been collected from mining lease holders, who are required to deposit 2 percent of applicable royalty payments into the trust.
As part of the proposed changes, the trust will undergo a name change to include 'development' in its title, reflecting its expanded mandate that will now include exploration, acquisition and development of critical mineral assets internationally.
It had been earlier reported that fresh amendments to the MMDR Act were expected this year to strengthen critical mineral supply chains. The Act underwent its last revision in 2023.
"The amendment will address the core issue of critical mineral raw material availability," the official stated.
Apart from facilitating new international acquisitions, the government is also seeking authorization for the disposal of mineral dumps from captive mines through lump sum sales.
“There are a number of captive mines where huge dumps of minerals have been accumulated which are not usable due to its low grade or unsuitability for the plants,” the official was quoted as saying.
As per the feedback that the Union government received from state governments, over half of the mineral production has been found unsuitable for captive end-use facilities. Current regulations governing captive mines prohibit the disposal of these accumulated dumps.
As per the proposed changes in the framework, states would be empowered to approve the sale of dumps stored within leased areas, subject to payment of additional fees.
The amendments also aim to streamline regulations for incorporating newly discovered minerals and contiguous areas into existing mining leases for a fee. Lease holders operating deep-seated mineral resources would be eligible to apply for permit extensions covering adjacent areas. This provision would be available as a one-time facility, with area enhancements limited to 10 percent of the current leased area.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
