Transformative Amendments Shake Up India's Mining Sector

The Indian government introduces the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, proposing pivotal changes such as the inclusion of multiple minerals in mining leases, expansion of mineral exploration funding, and removal of limitations on mineral sales, to drive the mining sector's growth and flexibility.

In a significant move, the Indian government on Monday unveiled the Mines and Minerals (Development and Regulation) Amendment Bill, 2026, in the Lok Sabha. This legislation aims to overhaul the existing mining framework, offering leaseholders the chance to incorporate multiple minerals into their current leases. The proposed amendments focus on boosting exploration and development, especially for critical and strategic minerals, while providing leaseholders with increased operational flexibility.

The amendments will allow leaseholders with specific mineral leases to request the state government to add other minerals to these leases. No additional payment will be necessary for critical minerals like lithium and graphite, while other minerals will incur a royalty fee. Auctioned mines' leaseholders will have to pay the applicable auction premium for any newly included minerals. The Bill also enables state governments to set royalties for minor minerals, expanding the lease scope to cover these as well.

Seeking to abolish the limit on mineral sales from captive mines, the Bill proposes that captive mines can sell minerals freely after fulfilling their requirements. It also extends the area for deep-seated mineral leases and establishes a regulatory authority for mineral exchanges, offering a potential boost to India’s mining landscape.