UPSC Prelims Practice Questions — Ministry of Mines Achieves Landmark with Operationalization of 101 Auctioned Mineral Blocks

Q1. Under the Mines and Minerals (Development and Regulation) Amendment Act, 2023, the auction of mining lease and composite licence for the critical and strategic minerals listed in Part-D of the First Schedule is to be conducted exclusively by which one of the following?

• A. The State Government concerned, with technical assistance of the Geological Survey of India
• B. The Central Government through the Ministry of Mines
• C. The Department of Atomic Energy under the framework of the Atomic Energy Act, 1962
• D. NITI Aayog acting through the National Mineral Exploration Trust

Q2. Which one of the following best describes the National Mineral Exploration Trust (NMET)?

• A. A non-profit autonomous body that uses accrued funds for regional and detailed exploration of coal and non-coal minerals, with priority to strategic and critical minerals
• B. A statutory regulator under the Ministry of Environment that grants environmental and forest clearances to auctioned mineral blocks
• C. A central public sector enterprise that operationalizes auctioned mineral blocks on behalf of State Governments
• D. An inter-ministerial body that fixes royalty rates and dead rent for major minerals across States

Q3. In mining-affected districts, the District Mineral Foundation (DMF) is established under which one of the following provisions?

• A. Section 9B of the Mines and Minerals (Development and Regulation) Act, 1957
• B. Section 11A of the Mines and Minerals (Development and Regulation) Act, 1957
• C. Section 18 of the Mines Act, 1952
• D. Section 4 of the Coal Mines (Special Provisions) Act, 2015

Q4. With reference to the Mines and Minerals (Development and Regulation) Act, 1957 as amended in 2023, which one of the following correctly identifies the Schedule/Part in which 'critical and strategic minerals' that can be auctioned exclusively by the Central Government are enumerated?

• A. Part A of the First Schedule
• B. Part B of the First Schedule
• C. Part D of the First Schedule
• D. Second Schedule

Q5. Consider the following minerals: 1. Lithium 2. Uranium 3. Graphite 4. Iron ore Which of the above is/are correctly identified as 'critical and strategic minerals' notified under Part D of the First Schedule of the MMDR Act, 1957?

1. Lithium
2. Uranium
3. Graphite
4. Iron ore

• A. 1 and 3 only
• B. 2 and 4 only
• C. 1, 2 and 3
• D. 3 and 4 only

Q6. The Mines and Minerals (Development and Regulation) Amendment Act, 2023 omitted how many minerals from the list of atomic minerals (previously reserved for exploration by State agencies), thereby opening them to private sector exploration and mining?

• A. Four
• B. Six
• C. Eight
• D. Twelve

Q7. Among the minerals delisted from the atomic-minerals category by the Mines and Minerals (Development and Regulation) Amendment Act, 2023, which one was officially highlighted by the Ministry of Mines as the principal driver of the reform, given its surging demand for clean-energy storage and electric-vehicle batteries?

• A. Beryllium
• B. Tantalum
• C. Lithium
• D. Zirconium

Q8. With reference to the 101 auctioned mineral blocks operationalized by the Ministry of Mines (as announced in May 2026), consider the following pairs of State and number of operationalized blocks: 1. Odisha — 34 2. Karnataka — 18 3. Madhya Pradesh — 11 4. Gujarat — 10 Which of the pairs given above is/are correctly matched?

1. Odisha — 34
2. Karnataka — 18
3. Madhya Pradesh — 11
4. Gujarat — 10

• A. 1 and 2 only
• B. 2 and 4 only
• C. 1, 2 and 4
• D. 3 only

Q9. With reference to the 101 auctioned mineral blocks operationalized since 2015 and the mineral blocks auctioned in FY 2025–26, consider the following statements: 1. While Iron Ore accounts for the largest share among the 101 operationalized blocks, Limestone was the most auctioned mineral in FY 2025–26. 2. All the mineral blocks auctioned in FY 2025–26 were granted as Mining Leases, unlike earlier tranches that included Composite Licences. 3. Critical mineral blocks figured in the FY 2025–26 auction tally, but no critical mineral block is among the 101 operationalized blocks. Which of the statements given above is/are correct?

1. While Iron Ore accounts for the largest share among the 101 operationalized blocks, Limestone was the most auctioned mineral in FY 2025–26.
2. All the mineral blocks auctioned in FY 2025–26 were granted as Mining Leases, unlike earlier tranches that included Composite Licences.
3. Critical mineral blocks figured in the FY 2025–26 auction tally, but no critical mineral block is among the 101 operationalized blocks.

• A. 1 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q10. With reference to the Mineral (Auction) Second Amendment Rules, 2026 notified by the Ministry of Mines, consider the following statements comparing the new provisions with the pre-amendment position. Which of the statements given above is/are correct?

1. Under the 2026 amendment, the additional period of two years for executing a mining lease beyond the initial three years from the Letter of Intent is available only for blocks involving forest land.
2. The amendment permits exclusion of portions of mineral blocks that are non-feasible due to forest, wildlife corridors or habitation, provided such portions contain less than 25% of the total estimated mineral resources of the block.
3. The amendment requires the second instalment of upfront payment to be deposited within six months from the date of issuance of the Letter of Intent.

• A. 1 and 2 only
• B. 2 and 3 only
• C. 1 and 3 only
• D. 1, 2 and 3

Q11. With reference to the Mineral (Auction) Second Amendment Rules, 2026, consider the following statements about its provisions. Which of the statements given above is/are NOT correct?

1. All critical and strategic minerals are eligible for the auction-premium exemption introduced by the Rules where their estimated value is less than 10% of the block's total mineral resources.
2. The unified mining portal envisaged under the Rules will cover identification of blocks, obtaining of clearances and monitoring of operationalisation.
3. The additional two-year period for executing the mining lease is available to every auction-winner, irrespective of whether the block involves forest land.
4. Non-feasible portions of a mineral block, due to constraints such as forest, wildlife corridors or habitation, may be excluded only if they contain less than 25% of the total estimated mineral resources.

• A. 1 and 3
• B. 2 and 4
• C. 1, 2 and 4
• D. 3 only

Q12. With reference to the Mines and Minerals (Development and Regulation) Act, 1957, the term 'Composite Licence' refers to which one of the following?

• A. A single concession that authorises a holder to undertake prospecting operations followed by mining of the mineral within the same block
• B. A combined licence permitting extraction of more than one notified mineral from the same mining block
• C. A joint licence granted to two or more private entities for mining of a single block in partnership
• D. A licence combining onshore and offshore extraction rights in respect of the same notified mineral

Q13. With reference to the framework for grant of mineral concessions under the Mines and Minerals (Development and Regulation) Act, 1957, consider the following statements: 1. A Composite Licence combines a prospecting licence and a mining lease in a single concession. 2. The maximum tenure of a Mining Lease granted under the Act is 50 years, and no renewal of the lease is permitted. 3. In respect of critical and strategic minerals listed in Part-D of the First Schedule, only the State Government concerned is empowered to auction Composite Licences. 4. Composite Licences are typically granted in respect of blocks where exploration has progressed only up to the G3 stage. Which of the statements given above is/are NOT correct?

1. A Composite Licence combines a prospecting licence and a mining lease in a single concession.
2. The maximum tenure of a Mining Lease granted under the Act is 50 years, and no renewal of the lease is permitted.
3. In respect of critical and strategic minerals listed in Part-D of the First Schedule, only the State Government concerned is empowered to auction Composite Licences.
4. Composite Licences are typically granted in respect of blocks where exploration has progressed only up to the G3 stage.

• A. 1 and 2 only
• B. 2 and 4 only
• C. 3 only
• D. 1, 3 and 4 only

Q14. Which one of the following minerals is listed under Part A — the first Part — of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957?

• A. Coal, including coking coal
• B. Uranium-bearing minerals
• C. Lithium-bearing minerals
• D. Iron ore

Q15. Under which Part of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 is the Central Government empowered to exclusively auction mining leases and composite licences for critical and strategic minerals?

• A. Part A
• B. Part B
• C. Part C
• D. Part D