India invites applications for new mineral exchanges with bauxite among five tradable minerals
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India is moving to establish a formal market for mineral trading, with the Indian Bureau of Mines (IBM) inviting applications from eligible companies to set up new mineral exchanges by November 2.
The exchanges can initially facilitate trading in iron, chromite, bauxite, limestone and manganese, either individually or in combination. Other minerals may subsequently be added with prior approval from IBM, subject to exclusions specified under the rules.
The proposed platforms are intended to support trading in minerals, concentrates and processed forms, including metals, while creating a more transparent and efficient mechanism for price discovery and dissemination.
Bauxite is among five minerals eligible for trading
The move could provide bauxite with a formal exchange-based trading platform alongside four other major minerals. According to IBM's notice inviting applications (NIA), mineral exchanges are also expected to support the development of markets for mineral transactions.
The platforms will facilitate the design of commodity supply contracts and help ensure timely delivery in line with contractual obligations.
The NIA and application form were made available on the IBM website on October 3, with applications required to be submitted to the Controller of Mines, Minerals Development and Regulation Division, IBM, Nagpur, by 3 p.m. on November 2.
Explore the production, demand and consumption forecasts of bauxite and alumina in our report: "Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook"
New rules establish a mineral exchange framework
The government notified the Mineral Exchange Rules, 2026, on June 30, establishing the regulatory framework for mineral exchanges, market participants, assaying agencies and delivery-based contracts.
Under the new rules, unregistered mineral exchanges will not be permitted to operate beyond six months after the first mineral exchange becomes operational. Existing commodity trading platforms that were operating before the rules were notified must obtain registration as mineral exchanges within six months, failing which they will have to cease operations.
The government said the exchanges are intended to provide technology-enabled platforms that can improve transparency and efficiency in mineral transactions, while supporting market-based price discovery.
Registration requirements and fees
Registration as a mineral exchange will remain valid for 25 years. Applicants must be companies limited by shares with a minimum net worth of INR 500 million (USD 5.19 million).
The fee structure includes a non-refundable application fee of INR 0.3 million (USD 3,112.22), a one-time registration fee of INR 5 million (USD 52,850) and an annual fee of INR 3 million (USD 31,120). The renewal fee has been set at INR 20 million (USD 207,481.36).
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