India’s Ministry of Mines has issued the Minerals (Other than Atomic and Hydrocarbon Energy Minerals) Concession (Second Amendment) Rules, 2026, which include measures aimed at streamlining mining lease administration, encouraging key mineral production, and improving operational efficiency. The revisions bring provisions added to the Mines and Minerals (Development and Regulation) Act in 2025 into effect.
Key amendments
- One-time increase of mining lease areas.
Holders of mining leases (MLs) and composite licences (CLs) for deep-seated minerals may request a one-time addition of a contiguous region.
The increased area is limited to:
Ten percent of the existing mining lease area.
30 percent of the current composite licence area.
The proposal is intended to allow for the economical extraction of mineral reserves that extend beyond the current lease borders.
- Inclusion of related minerals.
Mining lease holders can apply to include additional minerals, including minor minerals, in their existing lease.
State governments are expected to process and accept qualified applications within 30 days, which results in a more predictable approval procedure.
- Rewards for important and strategic minerals
When adding vital, strategic, or deep-seated minerals from the MMDR Act’s Seventh Schedule to an existing license, no additional payment is necessary.
The incentive is intended to boost production of minerals that are generally difficult and expensive to explore and mine.
- Financial preparations for larger lease areas.
For auctioned leases, operators must pay 10% of the auction premium for minerals produced in the newly added contiguous region.
For leases issued without an auction, operators must pay an additional amount equal to the applicable royalty on minerals derived from the new area.
Why do the modifications matter?
Amendments are likely to:
Expand domestic exploration and production of essential minerals.
Increase mining efficiency by allowing operators to develop contiguous deposits on a single lease.
Reduce administrative delays with time-bound approvals.
Increase India’s supply of minerals required for clean energy, electronics, defense, and modern industries.
Support the government’s overarching goal of improving mineral security and fostering self-reliance in strategic resources.
Implications to investors
For mining investors, the reforms may
Improve project economics by allowing for more comprehensive extraction of ore bodies.
Lower regulatory uncertainty by establishing approval dates.
Increase the appeal of projects centered on essential minerals including lithium, nickel, cobalt, graphite, and rare earth elements.
Expanding into contiguous mineralized areas without requiring a separate concession has the potential to boost the value of existing mining assets.
