India urged to reform mineral exploration policies
COAL & MINING

India urged to reform mineral exploration policies

Sumit Deb, the outgoing President of the Federation of Indian Mineral Industries (FIMI), has called for comprehensive reforms to stimulate mineral exploration in India. Speaking at the 57th annual session of FIMI, Deb expressed concerns about the potential lack of interest from international Junior Exploration Companies and domestic exploration firms in participating in the auctioning of exploration licenses under the proposed regulatory framework.

Deb highlighted reservations regarding the amended Mines and Minerals (Development and Regulation) Act, 2023, suggesting that it may not effectively achieve the objective of identifying and securing critical and deep-seated mineral resources essential for India's economic growth.

He emphasised the need to reassess the mineral concession policy and adopt a more favourable framework in alignment with international industry standards. The amended MMDR Act introduces the concept of exploration licenses (EL), which will be granted through auctions for conducting reconnaissance and prospecting for critical and deep-seated minerals.

Deb raised concerns about the proposed mechanism for granting exploration licenses, particularly the concept of reverse bidding, where bidders must specify the percentage revenue share payable by the successful lessee over a 50-year period. He argued that this approach does not align with international best practices observed in mineral-rich countries like Australia, Canada, and South Africa.

According to Deb, the current system lacks incentives for explorers and introduces uncertainty regarding returns on their significant investments. Additionally, even if exploration efforts are successful in identifying resources, the returns would be tied to a percentage of the premium paid by the successful lessee over five decades.

Deb also highlighted the shortcomings of the auction regime introduced for the grant of mineral concessions more than eight years ago. Despite the auctioning of numerous mineral blocks, the mechanism has not yielded the anticipated results in terms of expedited development and resource utilisation. Out of the 155 greenfield non-coal mineral blocks auctioned since the implementation of the MMDR Amendment Act in January 2015, only seven have progressed to the mine development or production stage. Furthermore, prospecting licenses have been issued for just three out of the 79 mineral blocks auctioned for composite licenses.

In summary, Sumit Deb's call for reforms underscores the importance of creating a more attractive and efficient environment for mineral exploration in India, ultimately contributing to the nation's resource security and economic development.

Sumit Deb, the outgoing President of the Federation of Indian Mineral Industries (FIMI), has called for comprehensive reforms to stimulate mineral exploration in India. Speaking at the 57th annual session of FIMI, Deb expressed concerns about the potential lack of interest from international Junior Exploration Companies and domestic exploration firms in participating in the auctioning of exploration licenses under the proposed regulatory framework.Deb highlighted reservations regarding the amended Mines and Minerals (Development and Regulation) Act, 2023, suggesting that it may not effectively achieve the objective of identifying and securing critical and deep-seated mineral resources essential for India's economic growth.He emphasised the need to reassess the mineral concession policy and adopt a more favourable framework in alignment with international industry standards. The amended MMDR Act introduces the concept of exploration licenses (EL), which will be granted through auctions for conducting reconnaissance and prospecting for critical and deep-seated minerals.Deb raised concerns about the proposed mechanism for granting exploration licenses, particularly the concept of reverse bidding, where bidders must specify the percentage revenue share payable by the successful lessee over a 50-year period. He argued that this approach does not align with international best practices observed in mineral-rich countries like Australia, Canada, and South Africa.According to Deb, the current system lacks incentives for explorers and introduces uncertainty regarding returns on their significant investments. Additionally, even if exploration efforts are successful in identifying resources, the returns would be tied to a percentage of the premium paid by the successful lessee over five decades.Deb also highlighted the shortcomings of the auction regime introduced for the grant of mineral concessions more than eight years ago. Despite the auctioning of numerous mineral blocks, the mechanism has not yielded the anticipated results in terms of expedited development and resource utilisation. Out of the 155 greenfield non-coal mineral blocks auctioned since the implementation of the MMDR Amendment Act in January 2015, only seven have progressed to the mine development or production stage. Furthermore, prospecting licenses have been issued for just three out of the 79 mineral blocks auctioned for composite licenses.In summary, Sumit Deb's call for reforms underscores the importance of creating a more attractive and efficient environment for mineral exploration in India, ultimately contributing to the nation's resource security and economic development.

Next Story
Infrastructure Transport

MMRDA advances 250 m on Orange Gate–Marine Drive tunnel

The Mumbai Metropolitan Region Development Authority (MMRDA) has completed 250 m of underground tunnelling for the Orange Gate–Marine Drive Urban Road Tunnel using India’s largest slurry shield tunnel boring machine (TBM) deployed for an urban road project.The project involves twin tunnels extending over 7 km beneath critical transport corridors, including Central Railway, Western Railway and Metro Line 3. The work requires high-precision engineering to navigate densely developed urban infrastructure.Once completed, the tunnel is expected to reduce travel time between Orange Gate and Marin..

Next Story
Infrastructure Urban

Hindustan Zinc Pays Rs 188.46 Billion in FY26

Hindustan Zinc contributed Rs 188.46 billion to the public exchequer in FY 2025-26, according to its 9th Tax Transparency Report. The contribution, equivalent to 46 per cent of the company’s revenue, included direct and indirect taxes, government royalties, dividends to the Government of India, withholding taxes and other statutory levies.The company’s five-year cumulative contribution to the exchequer stood at Rs 915.72 billion. In FY26, Hindustan Zinc reported revenue of Rs 408.44 billion, EBITDA of Rs 221.62 billion and profit after tax of Rs 138.32 billion. It also achieved its highest..

Next Story
Infrastructure Urban

World of Concrete India 2026 Opens in Mumbai

Informa Markets in India will host the 12th edition of World of Concrete India 2026 from 3–5 June 2026 at the Bombay Exhibition Centre, Mumbai. The specialised B2B exhibition will bring together manufacturers, suppliers, contractors, developers, architects, consultants, infrastructure companies, project leaders and government stakeholders.The event is expected to feature over 350 brands and more than 18,000 trade professionals. It will cover concrete and cement, dry mortar, precast technologies, formwork, construction chemicals, industrial and commercial flooring, scaffolding, safety solutio..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement