Critical mineral explorers may get revenue share over 50 years

livemint.com:

NEW DELHI : Miners discovering critical and deep-seated minerals may be allowed a revenue share from the block over the entire 50-year lease period, two people aware of the plans said. Miners may also be given the right to carve out as many mineral blocks from the prospected areas that would be auctioned for mining lease later, ensuring recurring returns for the standalone mining entity over the life of different mines with varied mineral deposits.

These would be part of the rules for the auction exploration licence (EL) that would be given for the first time after Parliament’s monsoon session cleared amendments to the Mines and Minerals (Development and Regulation) Act. The revenue-share plan is expected to attract so-called junior mining companies into mineral exploration and aid the discovery and production of 29 critical and deep-seated minerals, including lithium, copper, gold, silver, diamond, molybdenum and cadmium, which are largely imported.

“The proposal on exploration licence and reward for discovery is expected to enhance exploration coverage in the country and facilitate faster adoption of advanced technologies required for these difficult and expensive mineral exploration projects," said one of the two people cited above, an official overseeing the implementation of the amended MMDR Act. The mines ministry did not respond to a query till press time.

But the official cited above said rules governing the grant of new ELs would be finalized over the next few weeks, and the first set of licences may be issued before the year ends. Before MMDR was amended, there were only two types of mineral concessions for private entities through auction—mining lease for undertaking mining operations and composite licence for