Government Revises Mineral Auction Rules 2025

The Central Government has issued the Mineral (Auction) Third Amendment Rules, 2025 under section 13 of the Mines and Minerals (Development and Regulation) Act, 1957. The amendment introduces significant updates to the Mineral (Auction) Rules, 2015, focusing on simplifying mineral sales, lease management, and compliance alignment.

Under the revised rules, captive mine leaseholders can now sell minerals produced from their mines after meeting specified conditions, replacing the earlier restriction that capped market sales at 50 % of total production. The amendment also ensures that newly found minerals within a lease area may be included in the mining lease in accordance with section 15B, thereby improving procedural clarity.

Additional modifications across rules 10, 16, and 18 insert cross-references to “section 15B and the rules” to harmonize legal provisions. Furthermore, rule 21 prohibits the inclusion of atomic minerals, meeting the notified threshold value, within leases meant for non-atomic minerals. These reforms aim to streamline mineral governance, boost transparency, and ensure responsible resource utilization.