India Unlocks Critical Mineral Wealth with Major Mining Reform

India is set to lift a key restriction that prevents miners from extracting minerals beyond those specified in their original lease agreements, in a major policy shift aimed at unlocking the country’s critical mineral potential, according to officials familiar with the matter.

The proposed reform targets legacy mining leases granted before 2015, when mineral rights were allocated without competitive auctions. If approved, the change would allow leaseholders to commercially mine newly discovered strategic minerals—such as lithium, cobalt, and rare earth elements—without undergoing fresh auctions. These minerals are vital for sectors including clean energy, electric vehicles, electronics, and defence.

The government plans to amend the Mines and Minerals (Development and Regulation) Act (MMDR Act) during the monsoon session of Parliament, which begins today.

The amendment would apply to over 2,500 legacy mining leases, many of which are currently non-operational. By enabling mining of additional associated minerals through a deemed approval mechanism, without added premiums or new auctions, the initiative aims to revive dormant leases and support India’s strategic and economic goals in the global race for critical resources.

Currently, miners are obligated to discard valuable co-occurring minerals not listed in their original leases, a limitation that has constrained India’s ability to ramp up production of critical minerals.

News by Rahul Yelligetti.