Ministry of Mines Notifies Rules for Trading of Major Minerals on Exchange from Next Financial Year

Key facts

• The Ministry of Mines has notified rules to allow trading of major minerals on an exchange, expected to become functional by the next financial year.
• The Indian Bureau of Mines has been appointed as the nodal agency and regulator for the minerals exchange.
• The exchange will initially allow trading in iron ore, bauxite, limestone, and manganese.
• The Ministry of Coal has separately notified rules for a coal exchange, with the Coal Controller Organisation as regulator.
• The minerals exchange will operate through a centralized electronic platform with physical delivery-based contracts.
• The rules mandate quality verification by accredited assaying agencies and market surveillance to check manipulation, cartelisation, and insider trading.
• The government plans to set up four critical minerals processing parks in Andhra Pradesh, Odisha, Gujarat, and Maharashtra.
• The initial focus of the critical minerals parks will be on lithium and nickel, crucial for the battery sector.
• India depends on imports for about 95% of its critical mineral requirements.
• The National Critical Mineral Mission was announced in 2025 with a financial outlay of Rs 34,300 crore over seven years.