Mines and Minerals Bill Passed: India Prioritizes Critical Mineral Security
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New Delhi – In a meaningful move to bolster India’s economic resilience and secure its future resource needs, Parliament approved the Mines and Minerals (Development and Regulation) Amendment Bill, 2025, on Tuesday, August 19, 2025. The legislation, designed to liberalize and modernize the country’s mineral sector, received unanimous passage in the Rajya Sabha following its earlier approval by the Lok Sabha on August 12.
A Landmark Reform for India’s Mineral Sector
The Bill amends the original Mines and Minerals (Development and Regulation) Act of 1957, addressing long-standing issues of outdated regulations, fragmented leases, and accountability gaps within the mining industry.Union Minister of Coal and Mines, G Kishan Reddy, emphasized that the Narendra Modi management has initiated transformative reforms in both the coal and mining sectors over the past decade.
A key focus of the amended legislation is securing access to critical and strategic minerals. India currently relies heavily on imports for these essential resources,a vulnerability the government aims to mitigate by boosting domestic production and actively pursuing overseas supply agreements.
Did You Know?
India is strategically positioned to become a global hub for the processing of critical minerals, potentially reducing its dependence on single-source suppliers.
Key Amendments and Provisions
one pivotal change within the Bill involves the renaming of the National Mineral Exploration Trust to the National Mineral Exploration and Development Trust. This expanded scope will enable funding for both domestic and international exploration and development initiatives. this strategic shift reflects a proactive approach to resource acquisition and diversification.
BJP leader Kiran choudhary lauded the Bill as a “forward-looking reform” that has been long overdue. She highlighted its importance in securing India’s economic future and promoting sustainable development. “This Bill is not just about minerals; it is indeed about securing India’s economic security, future and ensuring development in a more transparent and sustainable way,” Choudhary stated during the parliamentary debate.
India’s Mineral Wealth and Challenges
Despite being the world’s third-largest holder of mineral wealth, India’s mining sector has historically faced constraints due to antiquated laws and operational inefficiencies. The Bill seeks to dismantle these barriers,fostering a more dynamic and accountable industry. The legislation also prioritizes community participation and the well-being of populations residing in mining areas.
Pro Tip:
Understanding the geopolitical implications of critical mineral supply chains is crucial for investors and policymakers alike. Diversification and strategic partnerships are key to mitigating risk.
Bill Details at a Glance
| Feature | Details |
|---|---|
| Bill Name | Mines and Minerals (Development and Regulation) Amendment bill, 2025 |
| Original Act Amended | Mines and Minerals (Development and Regulation) Act, 1957 |
| Lok Sabha Passage Date | august 12, 2025 |
| Rajya Sabha Passage Date | August 19, 2025 |
| Key Focus | Liberalization, modernization, and securing critical mineral supplies |
The passage of this Bill represents a significant step towards realizing India’s potential as a global leader in the mineral sector. Will this legislation effectively attract foreign investment and stimulate domestic exploration? And how will the government ensure equitable benefit-sharing with local communities impacted by mining operations?
Context and Future Trends
The global demand for critical minerals – including lithium, cobalt, nickel, and rare earth elements – is surging, driven by the transition to clean energy technologies and the growth of electric vehicles.According to the International Energy Agency (IEA),demand for these minerals could increase sixfold by 2030 [[1]]. This escalating demand underscores the strategic importance of securing reliable and diversified supply chains.
India’s proactive approach, as demonstrated by the Mines and Minerals Amendment Bill, aligns with a broader global trend towards resource nationalism and supply chain resilience. Countries worldwide are increasingly focused on reducing their dependence on single suppliers and fostering domestic mineral production. The success of India’s strategy will depend on effective implementation, transparent governance, and robust environmental safeguards.
Frequently Asked Questions
- What are critical minerals? critical minerals are essential for economic and national security and have a supply chain vulnerable to disruption.
- Why is this Bill crucial for India? The Bill aims to reduce India’s reliance on mineral imports and boost domestic production.
- What changes does the Bill make to the National Mineral Exploration Trust? The Trust has been renamed and its scope expanded to include international exploration and development.
- How will the Bill impact local communities? The Bill prioritizes community participation and welfare in mining areas.
- What is the long-term goal of this legislation? The long-term goal is to secure india’s economic future and ensure sustainable mineral resource management.
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