This Monday, the Government of India announced amendments to its mining concession rules. It would allow expansion of existing leases and licences for critical minerals exploration to improve India’s mineral output, particularly for deep-seated minerals that are frequently left unexplored. 

Explore- Most accurate data to drive business decisions with Global ALuminium Industry Outlook 2026 across the value chain 

According to the Ministry of Mines, the updated framework introduces a simpler, time-bound process for leaseholders to apply for a one-time expansion. The changes will enable mining companies to include adjacent or contiguous areas within their current lease boundaries. The added area, however, will be capped at 10 per cent of the existing mining lease and 30 per cent of a composite licence.

Critical minerals extraction is expected to become more viable through this move, especially in cases where such deposits were previously uneconomical to access and mine.

The amended rules also highlight the financial obligations in such expansion plans. For auctioned leases, companies need to pay 10 per cent of the auction premium on minerals extracted from the newly included territory. In case of non-auctioned leases, payments equivalent to applicable royalties will be required. 

Don't miss out- Buyers are looking for your products on our B2B platform

Another notable change permits the inclusion of additional minerals within an existing lease. State governments have been directed to process such applications within a stipulated period of 30 days.

Moreover, the Ministry stated that no extra charges will apply for adding critical, strategic or deep-seated minerals listed under the Seventh Schedule to the Mines and Minerals Development and Regulation (MMDR) Act, 1957. This provision is intended to encourage the extraction of resources that are generally found in smaller quantities and also difficult to access and process.

The amendments are expected to boost the mining sector of India, reduce import dependence by expanding domestic critical minerals exploration bases to feed the industry, thereby aligning with the move to reinforce the aim of Atmanirbhar Bharat.

Also read: Aluminium as a ‘Critical Mineral’ – how much is it catching up with the label given in the US, EU, UK, Canada and Africa?

Image for referential purposes only