11th September 2025 (16 Topics)

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Exemption for Critical Minerals

Context:

The Ministry of Environment, Forest and Climate Change (MoEFCC) exempted mining proposals of atomic, critical, and strategic minerals from public consultations citing national defence and strategic requirements.

Policy Decision:

The exemption applies to minerals notified in Part D of the First Schedule of the MMDR Act.
Minerals include Lithium, Nickel, Tungsten, Titanium, Graphite, uranium, and beach sand minerals.
Projects are still appraised under the Environment Impact Assessment (EIA) Notification, 2006, and assessed by sectoral expert committees.

Rationale and Strategic Significance:

The move was requested by the Defence Ministry and Department of Atomic Energy.
Minerals are crucial for national defence, strategic sectors, communication, navigation, and precision weapons.
Public consultations are considered exempt due to potential security risks and scarcity of rare earths in India.

Procedural and Legal Context:

EIA Notification normally mandates public hearings and written responses for development projects.
This exemption is specific to critical and strategic mineral projects, not general mining.
The exemption is accompanied by central-level appraisal and sectoral review to maintain environmental oversight.

Mines and Minerals (Development and Regulation) Amendment Act, 2023

Key Objectives of the Amendment

Introduces exploration licences for reconnaissance or prospecting of minerals.
Streamlines auction and competitive bidding for mineral exploration and mining leases.
Clarifies roles of Central and State Governments in granting exploration and mining rights.
Expands coverage to critical, strategic, and atomic minerals.
Strengthens reporting, surrender, and geological assessment obligations for license holders.

Major Amendments

Section	Change/Insertion	Key Points
Section 3	New clause ‘aaa’ & modifications	Defines exploration licence and clarifies reconnaissance operations.
Section 4 & 4A	Substitutions	Exploration licences treated like prospecting licences; termination rules extended.
Section 5 & 6	Restrictions & area limits	Maximum area for exploration licence: 1000 sq km, total up to 5000 sq km.
Chapter III	New heading	Procedure for mineral concession where minerals vest in government.
Section 10BA	New section	Exploration licence grant via auction/competitive bidding; Central Govt can intervene if State delays; share in future mining lease proceeds for exploration license holder.
Section 11D	New section	Central Govt to conduct auctions for strategic minerals (Part D of First Schedule).
Sections 12 & 12A	Registers	Maintain registers for exploration licences.
Section 13	Rules update	Specifies notification, auction, geological report, and payment rules.
Sections 17A, 18A, 19, 21, 24A	Minor amendments	Include exploration licence along with prospecting/mining licences.
First Schedule	New Parts B, D & Seventh Schedule	Lists atomic minerals, critical & strategic minerals, and minerals for exploration licence (Seventh Schedule).

Important Definitions & Terms

Exploration Licence: Permission for reconnaissance or prospecting operations.
Reconnaissance Operations: Preliminary surveys (aerial, geophysical, geochemical), pitting, drilling, trenching.
Critical & Strategic Minerals (Part D): Lithium, cobalt, graphite, rare earths, beryllium, etc.
Seventh Schedule Minerals: Includes gold, copper, lithium, diamond, silver, tin, vanadium, etc.

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Exemption for Critical Minerals