India’s Mining Sector Accelerates Growth Driven by Sweeping Reforms in 2025

New Delhi- India’s mining sector witnessed strong momentum in 2025 following the implementation of wide-ranging policy reforms aimed at modernising the mining ecosystem and strengthening the country’s mineral security, according to an official statement issued by the Ministry of Mines on Wednesday.

Among the major initiatives was the enactment of the Mines and Minerals (Development and Regulation) (MMDR) Amendment Act, 2025. A key institutional reform included the expansion and renaming of the National Mineral Exploration Trust (NMET) to the National Mineral Exploration and Development Trust (NMEDT). The revamped body has been entrusted with an expanded mandate that goes beyond exploration to include facilitation of mineral development and overseas acquisition of strategic minerals. Its activities are supported through enhanced funding, driven by higher contributions from mining lessees.

The ministry said that several other milestones were achieved during the year, including streamlined mineral auction processes with defined timelines, removal of restrictions on the sale of minerals from captive mines, reclassification of select minerals as major minerals, notification of royalty rates for critical minerals, promotion of mineral exchanges, and the rollout of offshore mining reforms. Collectively, these measures are aimed at improving transparency, easing business operations, accelerating mineral production, and promoting sustainable development, in line with the national vision of ‘Viksit Bharat 2047’.

The year also marked a sharp acceleration in mineral resource development. By December 5, 2025, as many as 141 mineral blocks had been successfully auctioned, comprising 79 Mining Leases and 62 Composite Licences. This represents the highest number of blocks auctioned in a single year since the auction regime was introduced in 2015, reflecting faster processes and increased participation from both states and industry stakeholders. Assam and Uttarakhand entered the auction framework for the first time by auctioning mineral blocks during the year.

Since 2015, a total of 585 mineral blocks have been auctioned across the country. In 2025, Madhya Pradesh and Rajasthan led the list, auctioning 33 and 22 blocks respectively. Limestone accounted for the highest number of auctions at 41, followed by iron ore with 32 blocks and bauxite with 22.

To further improve monitoring and implementation, a Mining Dashboard was launched on April 4, 2025. The platform enables near real-time tracking of auctioned mineral blocks, related clearances, and procedural delays. By monitoring key milestones such as issuance of letters of intent, execution of lease deeds, and grant of statutory clearances, the dashboard is expected to speed up operationalisation while enhancing transparency and accountability for both public and private stakeholders.

A major strategic development during the year was the Union Cabinet’s approval of the National Critical Mineral Mission (NCMM) in January 2025. With a financial outlay of Rs 16,300 crore and an expected investment of Rs 18,000 crore from public sector undertakings and private companies, the mission aims to ensure a long-term, sustainable supply of critical minerals. It covers the entire value chain, from exploration and mining to processing, beneficiation, and recovery from end-of-life products.

India also strengthened its international engagement in critical minerals during 2025. The country joined a US-led multilateral Minerals Security Partnership to build secure supply chains and reduce dependence on China. In addition, discussions were held with the International Energy Agency on enhancing cooperation in critical minerals and supporting India’s clean energy transition. Memorandums of Understanding were signed with Argentina, Mongolia, Japan, and Bolivia to fast-track mineral exploration and production.

Public sector enterprises under the Ministry of Mines delivered strong financial performance during the year. National Aluminium Company Limited (NALCO) reported a net profit of Rs 5,325 crore in FY 2024–25, with revenues of Rs 16,788 crore, and retained its position as the world’s lowest-cost producer of bauxite and alumina in 2024. Hindustan Copper Limited recorded a 54 per cent increase in profit before tax, rising to Rs 633.51 crore in FY 2024–25 from Rs 410.43 crore in the previous financial year.

With inputs from IANS