UPSC Prelims Practice Questions — Ministry of Mines Notifies Amendments to the Mineral Concession Rules, Paving Way for Inclusion of Contiguous Area and Associated Minerals in the Mining Lease

Q1. In the context of the Minerals Concession (Second Amendment) Rules, 2026, the provision for inclusion of a 'contiguous area' in a mining lease of deep-seated minerals refers to which one of the following?

  • A. A one-time extension of the leased area to take in an adjoining area, without going through a fresh auction
  • B. An automatic annual enlargement of the lease boundary proportional to the previous year's mineral output
  • C. The merger of two separately auctioned leases held by different lessees into a single concession
  • D. The surrender of surplus lease area to the adjoining State Government for redistribution

Q2. With reference to the Mines and Minerals (Development and Regulation) Amendment Act, 2025 and the rules operationalising it, consider the following statements: 1. It provides the statutory basis for one-time inclusion of a contiguous area in leases of deep-seated minerals. 2. It permits the inclusion of associated minerals, including minor minerals, in existing leases. 3. It came into effect from 1 September 2025. 4. It did away with the requirement of auction for the grant of all mineral concessions. Which of the statements given above are correctly identified?

  1. It provides the statutory basis for one-time inclusion of a contiguous area in leases of deep-seated minerals.
  2. It permits the inclusion of associated minerals, including minor minerals, in existing leases.
  3. It came into effect from 1 September 2025.
  4. It did away with the requirement of auction for the grant of all mineral concessions.
  • A. 1 and 2 only
  • B. 1, 2 and 3
  • C. 2, 3 and 4
  • D. 1, 3 and 4

Q3. With reference to the Minerals Concession (Second Amendment) Rules, 2026 notified by the Ministry of Mines, consider the following statements: 1. For a mining lease, the contiguous area added shall not exceed 10% of the existing leased area. 2. For a composite licence, the contiguous area shall not exceed 30% of the existing licensed area. 3. The State Government is required to permit inclusion of associated minerals within 30 days of the application. 4. A contiguous area can be included only if it exceeds 50% of the existing area in every case. Which of the statements given above are correctly identified?

  1. For a mining lease, the contiguous area added shall not exceed 10% of the existing leased area.
  2. For a composite licence, the contiguous area shall not exceed 30% of the existing licensed area.
  3. The State Government is required to permit inclusion of associated minerals within 30 days of the application.
  4. A contiguous area can be included only if it exceeds 50% of the existing area in every case.
  • A. 1, 2 and 3
  • B. 1 and 2 only
  • C. 2, 3 and 4
  • D. 1 and 4 only

Q4. Under the Minerals Concession (Second Amendment) Rules, 2026, when a contiguous area is added to an auctioned mining lease, the holder must pay an additional amount equal to what percentage of the auction premium on minerals dispatched from the added area?

  • A. 5%
  • B. 10%
  • C. 30%
  • D. 50%

Q5. Under which one of the following was the auction method made mandatory for granting mineral concessions and the District Mineral Foundation (DMF) and National Mineral Exploration Trust (NMET) established?

  • A. The MMDR Amendment Act, 2015
  • B. The MMDR Amendment Act, 2023
  • C. The original MMDR Act, 1957
  • D. The Mineral Laws (Amendment) Act, 2020

Q6. Consider the following statements comparing the 2015 and 2023 amendments to the MMDR Act: 1. The 2015 amendment introduced the auction regime and established the DMF and the NMET. 2. The 2023 amendment introduced the concepts of the composite licence and reconnaissance permit for the first time. 3. The 2023 amendment opened the auction of six erstwhile atomic minerals, including lithium, to the private sector. Which of the statements given above is/are correct?

  1. The 2015 amendment introduced the auction regime and established the DMF and the NMET.
  2. The 2023 amendment introduced the concepts of the composite licence and reconnaissance permit for the first time.
  3. The 2023 amendment opened the auction of six erstwhile atomic minerals, including lithium, to the private sector.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q7. Which one of the following is the Union-level authority that administers the MMDR Act, 1957 and notifies minerals such as Barytes, Felspar, Mica and Quartz as major minerals?

  • A. Ministry of Mines
  • B. Ministry of Coal
  • C. Ministry of Earth Sciences
  • D. Ministry of Steel

Q8. Consider the following statements regarding the classification of minerals under the MMDR Act: 1. Atomic minerals are specified in Part B of the First Schedule of the Act. 2. The 24 critical and strategic minerals over which the Centre has exclusive auction power are listed in Part D of the First Schedule. 3. Minor minerals are notified and regulated by the Central Government, whereas major minerals are regulated by the State Governments. Which of the statements given above is/are correct?

  1. Atomic minerals are specified in Part B of the First Schedule of the Act.
  2. The 24 critical and strategic minerals over which the Centre has exclusive auction power are listed in Part D of the First Schedule.
  3. Minor minerals are notified and regulated by the Central Government, whereas major minerals are regulated by the State Governments.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q9. With reference to institutions in India's mineral sector, consider the following statements: 1. The District Mineral Foundation works for the benefit of persons and areas affected by mining operations. 2. The National Mineral Exploration Trust funds regional and detailed exploration, prioritising critical and strategic minerals. 3. The National Critical Mineral Mission was approved with an outlay of Rs 34,300 crore over seven years. 4. The National Critical Mineral Mission is implemented solely by the Reserve Bank of India. Which of the statements given above is/are NOT correct?

  1. The District Mineral Foundation works for the benefit of persons and areas affected by mining operations.
  2. The National Mineral Exploration Trust funds regional and detailed exploration, prioritising critical and strategic minerals.
  3. The National Critical Mineral Mission was approved with an outlay of Rs 34,300 crore over seven years.
  4. The National Critical Mineral Mission is implemented solely by the Reserve Bank of India.
  • A. 1 only
  • B. 4 only
  • C. 3 and 4
  • D. 2 and 3

Q10. Under the MMDR Act, 1957, a reconnaissance permit may be granted for an area not exceeding which one of the following?

  • A. 5,000 sq km
  • B. 1,000 sq km
  • C. 25 sq km
  • D. 500 sq km

Q11. Consider the following statements regarding the recent reclassification of Barytes, Felspar, Mica and Quartz: 1. These four minerals were shifted from the category of minor minerals to major minerals by a gazette notification issued in February 2025. 2. Quartz, Felspar and Mica occur in pegmatite rocks, which are an important source of critical minerals such as lithium, niobium and tantalum. 3. The reclassification transferred regulatory control of these four minerals from the Central Government to the State Governments. Which of the statements given above is/are correct?

  1. These four minerals were shifted from the category of minor minerals to major minerals by a gazette notification issued in February 2025.
  2. Quartz, Felspar and Mica occur in pegmatite rocks, which are an important source of critical minerals such as lithium, niobium and tantalum.
  3. The reclassification transferred regulatory control of these four minerals from the Central Government to the State Governments.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q12. With reference to the constitutional and statutory basis for regulating mines and minerals in India, consider the following statements: 1. Regulation of mines and mineral development under Union control falls under Entry 54 of the Union List. 2. Entry 23 of the State List empowers States to regulate mines and mineral development, subject to Union law. 3. The royalty payable by a mining-lease holder is specified in the Second Schedule of the MMDR Act. 4. Under the MMDR Act, the contribution to the NMET is fixed at one-third of the royalty. Which of the statements given above are correctly identified?

  1. Regulation of mines and mineral development under Union control falls under Entry 54 of the Union List.
  2. Entry 23 of the State List empowers States to regulate mines and mineral development, subject to Union law.
  3. The royalty payable by a mining-lease holder is specified in the Second Schedule of the MMDR Act.
  4. Under the MMDR Act, the contribution to the NMET is fixed at one-third of the royalty.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4