UPSC Prelims Practice Questions — Ministry of Mines Notifies Mineral (Auction) Second Amendment Rules, 2026 for Faster Operationalisation of Mines and Improving Ease of Doing Business in the Mining Sector
Q1. Under the Mineral (Auction) Second Amendment Rules, 2026, the additional period of two years for execution of a mining lease—beyond the standard three years from the Letter of Intent—is admissible only for blocks that:
- A. Involve forest land
- B. Contain any critical or strategic mineral
- C. Fall within Fifth Schedule (tribal) areas
- D. Are auctioned by the Central Government
Q2. With reference to the changes introduced by the Mineral (Auction) Second Amendment Rules, 2026, consider the following:
1. The second instalment of the upfront payment must be deposited within one year of issuance of the Letter of Intent.
2. Auction-premium exemption for critical and strategic minerals (excluding Graphite, Phosphate and Potash) where their estimated resource value is less than 10% of the block.
3. Introduction of a Unified Mining Portal to streamline block identification, preparation and auction.
4. Appropriation of 1% of performance security for each month of delay by the preferred bidder.
Which of the above is/are correctly identified as introduced by the 2026 Second Amendment?
- The second instalment of the upfront payment must be deposited within one year of issuance of the Letter of Intent.
- Auction-premium exemption for critical and strategic minerals (excluding Graphite, Phosphate and Potash) where their estimated resource value is less than 10% of the block.
- Introduction of a Unified Mining Portal to streamline block identification, preparation and auction.
- Appropriation of 1% of performance security for each month of delay by the preferred bidder.
- A. 1, 2 and 3
- B. 1 and 4 only
- C. 2, 3 and 4
- D. 1, 2, 3 and 4
Q3. In the chain of mining-sector reforms in India, the MMDR Amendment Act, 2015 is best described as the amendment that first:
- A. Introduced auction-based (competitive bidding) allocation of mineral concessions
- B. Created the Exploration Licence for deep-seated minerals
- C. Removed end-use restrictions and permitted 50% sale from captive mines
- D. Delisted six atomic minerals for private exploration
Q4. Consider the following pairings of a mining-sector reform with the feature it introduced:
1. MMDR Amendment Act, 2021 — permitted captive mines to sell up to 50% of annual production.
2. MMDR Amendment Act, 2023 — introduced the Exploration Licence.
3. Mineral (Auction) Rules amendment of October 2025 — introduced intermediary timelines and performance security post-LoI.
4. MMDR Amendment Act, 2015 — delisted six atomic minerals for private exploration.
Which of the above is/are correctly identified?
- MMDR Amendment Act, 2021 — permitted captive mines to sell up to 50% of annual production.
- MMDR Amendment Act, 2023 — introduced the Exploration Licence.
- Mineral (Auction) Rules amendment of October 2025 — introduced intermediary timelines and performance security post-LoI.
- MMDR Amendment Act, 2015 — delisted six atomic minerals for private exploration.
- A. 1 and 2 only
- B. 1, 2 and 3
- C. 2, 3 and 4
- D. 1, 3 and 4
Q5. The Mineral (Auction) Rules, 2015, under which mineral blocks are auctioned, are framed and notified by which of the following?
- A. Ministry of Mines
- B. Ministry of Coal
- C. Geological Survey of India
- D. NITI Aayog
Q6. The National Mineral Exploration Trust (NMET), which funds mineral exploration in the country, was established under which section of the Mines and Minerals (Development and Regulation) Act, 1957?
- A. Section 9C
- B. Section 9B
- C. Section 11
- D. Section 4A
Q7. The Exploration Licence, along with the insertion of the Seventh Schedule listing deep-seated and critical minerals, was introduced through which of the following?
- A. MMDR Amendment Act, 2023
- B. MMDR Amendment Act, 2021
- C. MMDR Amendment Act, 2015
- D. Mineral (Auction) Second Amendment Rules, 2026
Q8. Among the six minerals delisted from the atomic-minerals list by the MMDR Amendment Act, 2023 (Lithium, Beryllium, Niobium, Titanium, Tantalum, Zirconium), which single mineral is the flagship battery-metal whose private exploration was the primary driver of these reforms?
- A. Lithium
- B. Zirconium
- C. Titanium
- D. Tantalum
Q9. As per the Mineral (Auction) Rules amendment of 17 October 2025, how many days does the preferred bidder get to submit the performance security along with the first instalment of the upfront payment?
- A. 30 days
- B. 45 days
- C. 60 days
- D. 90 days
Q10. The following statements compare the position after the MMDR Amendment Act, 2021 with the position before it:
1. Before 2021 captive mines could not sell minerals in the open market, whereas after 2021 they may sell up to 50% of annual production after meeting attached-plant needs.
2. The 2021 amendment removed end-use restrictions for future auctioned blocks, unlike the earlier regime.
3. The 2021 amendment abolished the National Mineral Exploration Trust created in 2015.
Which of the statements given above is/are correct?
- Before 2021 captive mines could not sell minerals in the open market, whereas after 2021 they may sell up to 50% of annual production after meeting attached-plant needs.
- The 2021 amendment removed end-use restrictions for future auctioned blocks, unlike the earlier regime.
- The 2021 amendment abolished the National Mineral Exploration Trust created in 2015.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q11. The District Mineral Foundation (DMF), a trust in whose benefit persons affected by mining operations are served, is established under which section of the Mines and Minerals (Development and Regulation) Act, 1957?
- A. Section 9B
- B. Section 9C
- C. Section 10B
- D. Section 17A
Q12. Under the National Critical Mineral Mission, the Geological Survey of India has been tasked with conducting how many exploration projects during the period 2024-25 to 2030-31?
- A. 1,000
- B. 1,200
- C. 195
- D. 100