The centre has proposed hiking contributions from mining proceeds, hoping to fund more exploration and development of critical mineral supply chains. These changes have been introduced as amendments to the Mines and Minerals (Development and Regulation) Act, 1957 in the lower house by Union Coal and Mines Minister G Kishan Reddy Monday.
Scope of the National Mineral Exploration Trust (NMET) is also being expanded to allow funding overseas acquisition of assets. Reddy said the bill proposes to increase payment to the Trust by lessees from currently 2% of the royalty payable to 3% of the royalty payable. This move will boost the annual Rs 1,000 crore collection under the trust, raising it to Rs 2,500 crore.
“This amount would be required to meet the enhanced scope and territorial domain of the Trust. An expenditure of Rs 8,700 crore in next five years is envisaged from the Trust under the National Critical Mineral Mission,” Reddy said.
ET reported Monday that fresh amendments, aimed at boosting critical mineral supply chains, to the MMDR Act will be introduced. NMET is being renamed to National Mineral Exploration and Development Trust (NMEDT) to reflect its enlarged scope.
Besides the critical mineral push, these amendments also empower the Central Government to promote development of the market, including trading of minerals, its concentrate or its processed forms (including metals) through a mineral exchange.
“Setting up of mineral exchanges will help miners and end-users of minerals in determining fair and transparent market prices based on supply and demand dynamics,” Reddy said.
Once passed, the bill also empowers the centre to provide for registration of mineral exchanges and revocation of such registration. Regulation such as prevention of cartelization, insider trading, circular trading, market manipulation and any other matter which is detrimental to the participants of the mineral exchanges also come under scope of this bill.
Scope of the National Mineral Exploration Trust (NMET) is also being expanded to allow funding overseas acquisition of assets. Reddy said the bill proposes to increase payment to the Trust by lessees from currently 2% of the royalty payable to 3% of the royalty payable. This move will boost the annual Rs 1,000 crore collection under the trust, raising it to Rs 2,500 crore.
“This amount would be required to meet the enhanced scope and territorial domain of the Trust. An expenditure of Rs 8,700 crore in next five years is envisaged from the Trust under the National Critical Mineral Mission,” Reddy said.
ET reported Monday that fresh amendments, aimed at boosting critical mineral supply chains, to the MMDR Act will be introduced. NMET is being renamed to National Mineral Exploration and Development Trust (NMEDT) to reflect its enlarged scope.
Besides the critical mineral push, these amendments also empower the Central Government to promote development of the market, including trading of minerals, its concentrate or its processed forms (including metals) through a mineral exchange.
“Setting up of mineral exchanges will help miners and end-users of minerals in determining fair and transparent market prices based on supply and demand dynamics,” Reddy said.
Once passed, the bill also empowers the centre to provide for registration of mineral exchanges and revocation of such registration. Regulation such as prevention of cartelization, insider trading, circular trading, market manipulation and any other matter which is detrimental to the participants of the mineral exchanges also come under scope of this bill.
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