MMDR Amendment Act 2023
Also called: Mines and Minerals (Development and Regulation) Amendment Act 2023 · Topic: Mineral Resources of India: Distribution and Conservation · NCERT: Beyond NCERT
Meaning
The MMDR Amendment Act 2023 changed India's main mining law, the Mines and Minerals (Development and Regulation) Act 1957. It took six minerals, including lithium, off the list of atomic minerals. Atomic minerals are linked to nuclear energy, and only the government could mine them. The Act also let the Centre auction mining rights for 24 critical and strategic minerals. Critical minerals are minerals the economy, clean energy and defence need but cannot easily get. Finally, it created a new exploration licence for deep-seated minerals, which lie far below the surface and are hard to find. Together, these changes aim to bring private companies into the search for scarce minerals.
Example
In February 2023 the Geological Survey of India reported 5.9 million tonnes of inferred lithium at Salal-Haimana in Reasi district, Jammu and Kashmir. Inferred means the amount is only an early estimate. Because the 2023 Act took lithium off the atomic list, the Centre could put this block up for auction. The early auctions found no successful bidder because the grade of the ore was uncertain.
Don't confuse with
- MMDR Amendment Act 2015: this earlier change brought in auctions for mining leases, the District Mineral Foundation and the National Mineral Exploration Trust. It did not deal with lithium or critical minerals.
- Offshore Areas Mineral (Development and Regulation) Amendment Act 2023: this is a separate law for minerals under the sea. The MMDR Act covers minerals on land.