Lok Sabha passes bill to relax norms for mining of critical minerals

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The Lok Sabha has passed the Mines and Minerals (Development & Regulation) Amendment Bill, 2025 that aims to fast-track exploration and mining of critical minerals, which are vital for energy technologies and the broader economy.

The bill, which was passed on August 12, will have to be cleared by the Rajya Sabha before it can be sent to President Droupadi Murmu for her assent to become a law.

Moneycontrol reported on July 18 that the mines and minerals amendment bill would likely be tabled during the monsoon session of Parliament.

The key amendments include allowing mining lease holders to also mine critical minerals, expanding the scope of the National Mineral Exploration Trust (NMET) and opening a minerals exchange.

The proposed exchange would facilitate trading in minerals and metals under rules framed by the government. It would also maintain a comprehensive data bank of trading activity and include regulations to prevent insider trading and market manipulation.

The bill comes at a time when globally there is scramble for rare earth minerals, which find use in EVs, electronics, semiconductors, drones and other industrial and military equipment.

China, which provides more than 90 percent of the world’s of rare-earth magnets, has curbed exports, with automakers and electronics manufacturers warning of production cuts due to the crisis.

The proposed law is expected to accelerate the National Critical Minerals Mission (NCMM) approved by the cabinet this January. The NCMM is aimed at ensuring a resilient and self-reliant supply chain for critical minerals essential for green technologies, defence, and high-tech industries.

The mission comes with an outlay of Rs 34,300 crore, of which Rs 16,300 crore will be by way of budgetary support and around Rs 18,000 crore is expected from PSUs and the private sector.

The bill proposes to change the name of the NMET to National Mineral Exploration and Development Trust to reflect its wider role in the critical mineral mission.

The NMET, which is under the mines ministry, finances various mineral exploration projects.