India to Amend Mining Laws for Critical Mineral Supply Boost

India plans to amend the Mines and Minerals (Development and Regulation) Act to secure overseas critical mineral assets-such as lithium, copper, cobalt, and rare earths-vital for renewable energy, defence, electronics, and other strategic sectors. The changes will allow state funding from the ₹6,000+ crore National Mineral Exploration Trust (NMET) for both domestic exploration and international acquisitions, with the NMET’s mandate expanded to include “development” of critical minerals.

Key provisions include:

Permitting states to sell low-grade or surplus mineral stockpiles from captive mines for a one-time fee. Streamlining approvals to add newly identified minerals or adjacent areas to existing leases, with additional charges. Applying higher royalties or surcharges for minerals extracted from expanded lease areas.

The amendments aim to reduce dependence on China-dominated supply chains, accelerate domestic mineral exploration, and strategically acquire overseas assets to ensure a stable and diverse supply of critical raw materials for India’s future industries.

The MMDR amendments respond to a strategic reality that has become inescapable: the energy transition is minerals-intensive, and current global supply chains for lithium, cobalt, copper, nickel and rare earths are heavily concentrated in a small number of processing jurisdictions. State-backed financing for overseas asset acquisition, combined with domestic exploration acceleration, gives India optionality across both channels.

The provisions on low-grade stockpile monetisation and expanded lease scope address well-documented friction in the current mining regulatory framework. Faster approvals for adjacent lease areas and clearer commercial terms for surplus material improve project economics, which in turn strengthens the domestic industry's capacity to invest in exploration and processing capability.

For mining companies, industrial buyers of critical minerals and their financiers, Cognitud's supply chain and operations, sustainability due diligence and market intelligence teams help clients evaluate cross-border mining investment opportunities, structure ESG frameworks aligned with IRMA, TSM and OECD due-diligence guidance, and prepare disclosures that support access to international capital markets increasingly focused on the responsible-sourcing credentials of critical-mineral supply chains.