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MMDR Amendment Bill 2025: Critical Minerals and NMEDT Changes

13 August 20251 min read
NATIONAL AFFAIRSMMDR AmendmentBill 2025: CriticalMinerals and NMEDTChanges13 August 2025safalsetu.com

Why in the news

The mining law amendment was passed to boost the mineral sector and secure critical mineral supply chains, matching the National Critical Mineral Mission.

Key amendments

AreaChange
NMETRenamed NMEDT; mandate extended to offshore and international exploration of critical minerals
Trust fundingLeaseholder contribution up from 2% to 3% of royalty payable
Mineral exchangesElectronic trading platforms for minerals, concentrates, processed forms and metals; transparent price discovery
Critical mineralsEasy addition to existing leases; no extra royalty if listed in Seventh Schedule or Part D of First Schedule
Lease extensionOne-time: up to 10% (deep-seated minerals below 200 m); up to 30% (composite licences)
Captive mines50% sale cap removed; all surplus can be sold, and states may allow sale of old mineral dumps

Exam angle

  • Renamed body: NMET to NMEDT.
  • Linked mission: National Critical Mineral Mission.

Test yourself

1. Under the MMDR Amendment Bill 2025, leaseholders' contribution to NMEDT rises to what share of royalty payable?

The contribution increases from 2% to 3% of royalty payable.

2. The Mines and Minerals Amendment Bill 2025 renames the National Mineral Exploration Trust as what?

NMET becomes the National Mineral Exploration and Development Trust (NMEDT).

3. What does the 2025 Bill allow captive mines to sell?

The earlier 50% cap was removed, so all surplus minerals can be sold.