Mineral Concession (Second Amendment) Rules, 2026 allow contiguous area and associated minerals in leases
The Ministry of Mines on 30 March 2026 notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026, allowing one-time addition of contiguous area to deep-seated mineral leases and inclusion of associated minerals.
Summary
The Ministry of Mines notified the Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026 on 30 March 2026, following the MMDR Amendment Act, 2025, which took effect on 1 September 2025. Holders of mining leases or composite licences for deep-seated minerals can seek a one-time extension to include a contiguous area of up to 10% of a mining lease or 30% of a composite licence; for auctioned leases they pay 10% of the auction premium on minerals from the added area. State governments must allow inclusion of other minerals, including minor minerals, in a lease within 30 days, with no additional amount for critical, strategic or deep-seated minerals in the Seventh Schedule. Future minor-mineral leases (other than sand) will be granted only after exploration up to G3 level, and the limit on sale of minerals from captive mines has been removed, subject to end-use plant requirements.
Key facts
- Notified
- 30 March 2026
- Rules
- Minerals (Other than Atomic and Hydro Carbons Energy Minerals) Concession (Second Amendment) Rules, 2026
- Basis
- MMDR Amendment Act, 2025 (effective 1 September 2025)
- Contiguous area cap
- 10% for mining lease; 30% for composite licence (one-time)
- Associated minerals
- State to permit within 30 days; no extra amount for Seventh Schedule minerals
- Minor minerals
- Future leases (except sand) only after G3 exploration
- Captive mines
- Sale limit removed, linked to end-use plant use
Practice MCQs 2 questions
Under the Mineral Concession (Second Amendment) Rules, 2026, the one-time addition of contiguous area to a mining lease for deep-seated minerals cannot exceed what share of the existing area?
Show answer
Correct answer: A — 10%
The Ministry of Mines said the contiguous area cannot exceed 10% for a mining lease and 30% for a composite licence.
Consider the following statements about the Mineral Concession (Second Amendment) Rules, 2026: 1. State governments must permit inclusion of an associated mineral in a mining lease within 30 days of the application. 2. Future mining leases for minor minerals other than sand will be granted only after exploration up to G3 level. Which of the statements given above is/are correct?
Show answer
Correct answer: C — Both 1 and 2
Both are correct as per the Ministry of Mines release.