Auction of Strategic Mineral Blocks

About Mines and Minerals (Development and Regulation) Act, 1957

• Primary Objectives:
  • Develop the mining industry.
  • Ensure conservation of minerals.
  • Enhance transparency and efficiency in mineral exploitation.

Key Amendments

• 2015 Amendment:
  • Auction Method: Introduced mandatory auctioning of mineral concessions to improve transparency in allocation.
  • District Mineral Foundation (DMF): Established to benefit communities affected by mining activities.
  • National Mineral Exploration Trust (NMET): Created to promote mineral exploration activities.
• 2021 Amendment:
  • Captive and Merchant Mines: Eliminated the distinction between these two types of mines. Captive mines produce minerals for the company’s own use, with provisions to sell up to 50% of their output on the open market after meeting their internal needs. Merchant mines operate to produce minerals for sale on the open market.
• 2023 Amendment:
  • Mineral concessions: The government will exclusively auction mineral concessions for critical minerals. The revenue from these auctions will go to the state government concerned.
  • Exploration licence: The act introduces an exploration licence for deep-seated and critical minerals.
  • Sub-surface activities: The act allows prohibited activities like pitting, trenching, drilling, and sub-surface excavation as part of reconnaissance.

Important Blocks and Their Locations

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