Govt Issues New Transition Norms for Barytes & Quartz Leases

The Ministry of Mines has issued a comprehensive order laying out transitional provisions and regulatory relaxations for existing mining leases of Barytes, Felspar, Mica, and Quartz, as they are reclassified from minor to major minerals under the Mines and Minerals (Development and Regulation) Act, 1957.

This follows a Central Government notification (S.O. 924(E), dated February 20, 2025) that removed these four minerals from the list of minor minerals, citing their association with critical and strategic mineral resources important for energy transition and high-tech industries.

🔍 Why the Reclassification?

A NITI Aayog-led inter-ministerial committee found that:

  • Mica, Felspar, and Quartz often occur with critical minerals like Lithium, Beryl, and Tantalum.

  • Barytes is linked to valuable elements like Cobalt, Silver, and Copper, but these associations go unreported due to their classification as minor minerals.

  • To support sustainable mining and improve critical mineral extraction, the government reclassified them as major minerals.

🧾 Key Transitional Provisions & Relaxations Till 2027:

ProvisionDetails
1. Mandatory RegistrationExisting leaseholders must register with Indian Bureau of Mines (IBM) by July 31, 2025.
2. Royalty PaymentsContinue paying royalties to States at current rates until March 31, 2026.
3. Inclusion of Additional MineralsLessees can apply to include other associated minerals in the lease deed.
4. Mining Plan ValidityCurrent state-approved mining plans valid till March 31, 2027, or until expiry. Submission to IBM required by December 31, 2025.
5. Digital Aerial ImagesExempted for FY 2024-25. Must be submitted to IBM by July 1, 2026.
6. Financial AssuranceExisting financial assurances remain valid till March 31, 2027.
7. Star Rating ComplianceNo star rating report for FY 2024-25; mandatory submission from FY 2025-26 by July 1, 2026. 3-star rating compliance from FY 2028-29 onward.
8. Returns FilingExempt from monthly/annual returns to IBM till Sept 30, 2025. Submissions start October 2025.
9. No PenaltiesNo penalties under MCR 2016 & MCDR 2017 till March 31, 2026, except for Rule 45 violations.

🛠️ Impact and Way Forward

This phased transition is intended to prevent disruption in production, ensure compliance readiness, and encourage better monitoring and extraction of critical minerals. It also provides leaseholders time to align with stricter regulatory frameworks under MCR 2016 and MCDR 2017.

The move reflects the government’s strategic shift towards securing mineral resources crucial to clean energy technologies and national security.

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