India moves to set up trading exchange for bauxite, iron ore and other major minerals to improve price discovery

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The Indian government is moving to allow bauxite and other major minerals to be traded on an exchange, in a move aimed at making mineral trading more transparent and improving price discovery. The exchange is likely to become operational by the next financial year, with the initial list expected to include iron ore, bauxite, limestone and manganese.

The Ministry of Mines has notified rules for setting up the exchange and appointed the Indian Bureau of Mines (IBM) as the nodal agency and regulator. The IBM will invite applications from companies seeking to set up and operate the exchange.

For bauxite producers and traders, the proposed exchange could provide a more structured mechanism for price discovery and transactions. According to government officials, the platform is also expected to reduce disputes over mineral quality, pricing and contract terms.

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Under the rules, mineral quality will have to be verified by accredited assaying agencies. The exchange will also have market surveillance measures to monitor possible manipulation, cartelisation and insider trading.

The exchange will operate through a centralised electronic platform and facilitate physical delivery-based contracts. According to officials, this will provide a more transparent and competitive mechanism for mineral pricing and supply.

India plans four critical minerals processing parks

Separately, the government plans to establish four dedicated critical minerals processing parks in Andhra Pradesh, Odisha, Gujarat and Maharashtra.

The four states will provide land and announce incentives for companies establishing processing facilities, while the Centre will provide technical support.

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The initial focus of the parks will be on lithium and nickel, which are important for battery manufacturing. Mines Secretary Keshav Chandra said, “Batteries are currently the most important component globally for future growth.”

The government plans to develop complete value chains at the parks by bringing mineral processing and downstream industries together at a single location.

Coal exchange also planned 

Furthermore, the Ministry of Coal has notified rules for a coal trading exchange, with the Coal Controller Organisation (CCO) appointed as the regulator and inviting companies to apply to operate the exchange.

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The move comes as India remains heavily dependent on imports for critical minerals, with the country meeting about 95 per cent of its critical mineral requirements through imports. The government launched the National Critical Mineral Mission in 2025, with a financial outlay of INR 343 billion (USD 3.6 billion) over seven years, to support exploration within India and offshore.