The government is considering amendments to India's existing legal framework to make way for a mineral and metal trading exchange similar to the London Metal Exchange (LME) or Shanghai Futures Exchange (SHFE), The Hindu BusinessLine reported citing a Cabinet note.
The structured marketplace is being planned to ensure better price discovery, the report cited the note as saying. This comes as Indian government aims to increase self-reliance in minerals amid rising supply-chain constraints.
Moneycontrol couldn't independently verify the report.
Notably, MCX is so far the largest commodity derivatives exchange that conducts online trading of various commodities like gold, silver, crude oil and natural gas. The said amendments are to be made to the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, in order to make way for the mineral trading exchange, the report added.
Also read: Unlocking India’s Rare Earth Potential - From policy to production
"Major mineral trading exchanges in the world like LME, Chicago Mercantile Exchange, SHFE, ASX Metals Market in Australia set reference prices for mineral and metals...There is a need to develop similar mineral trading exchanges in the country," the report quoted the cabinet note as saying. It added that efforts are required to be made of "establishment of competitive and transparent mineral trading exchanges" where minerals and its different forms are traded.
Another proposal pertained to the removal of certain restrictions on the sale of minerals from captive mines. This can be done by removing the phrase 'up to 50 per cent of the total minerals produced in a year' from the respective law, the report said.
Also read: Key amendment in mining laws likely in Parliament today
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