Why in the news?

• In recent years, amendments to the Mines and Minerals (Development and Regulation) Act have been introduced to strengthen domestic mining by enabling exploration licences, national-level auctions, inclusion of mining-associated minerals, and the creation of a national mineral exchange.

Mines and Minerals (Development and Regulation) Act

• What is it?: It is the primary legislation governing mining and mineral development in India, that regulates prospecting, mining leases, mineral concessions, and development of mineral resources.
• Objectives:
  • Ensure systematic and scientific exploitation of mineral resources.
  • Balance mineral development with environmental protection.
  • Promote transparency, competition, and sustainable mining.
  • Provide a legal framework for granting mineral concessions.
• Important Provisions:
  • Classifies Minerals as Major, Minor, and Atomic Minerals.
  • Auction-based Allocation: Mandatory auction route for granting mining leases and composite licences, ensuring transparency, fair competition and higher revenue for states.
  • District Mineral Foundation (DMF) to work for the interest and benefit of persons affected by mining-related operations.
  • National Mineral Exploration Trust (NMET) to promote regional and detailed mineral exploration.
• Classification of Minerals:
  • Major Minerals:
    • Regulation of Mines: Authority of Parliament
    • Approving Mining Leases: Central Government
    • Prevention of Illegal mining, transportation, and storage: State Government.
    • Collection of Royalties on major minerals: State Government
  • Minor Minerals:
    • Regulation of minor minerals: State Government
    • Development and extraction: State Government
    • Fixing Royalty Rates: State Government
    • Environmental Clearances: State Government

Source: The Hindu