Reclassification of Major Minerals

News: Recently, the Ministry of Mines issued a gazette notification shifting Barytes, Felspar, Mica, and Quartz from the minor minerals category to the major minerals category.

About Major Minerals

• Minerals in India are classified into two categories: major minerals and minor minerals.
• The classification is based on their economic significance, industrial applications, and the regulatory framework governing their extraction.
  • Major Minerals:
    • These are high-value minerals with strategic, industrial, and commercial importance.
    • Their regulation falls under the purview of the Ministry of Mines and is governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act, 1957).
    • Major minerals require scientific exploration, proper licensing, and regulation by the Indian Bureau of Mines (IBM).
  • Minor Minerals: These include materials such as building stones, gravel, ordinary clay, and sand. Their regulation is largely managed by State Governments, with simplified licensing and royalty structures.

Rules for governing major minerals

• Regulatory Compliance: Leases for these minerals will now be governed as major minerals, requiring adherence to mining rules under the MMDR Act, 1957. Existing leaseholders must transition to IBM registration within four months (by 30th June 2025).
• Lease Period Extension: The lease period will be extended to 50 years from the date of grant or till the completion of the renewal period, whichever is later.
• Revenue and Governance: Revenue from these mines will continue to be collected by State Governments. The transition aims to ensure better reporting, increased government oversight, and higher revenue generation.