From Waste to Wealth – Landmark Change in Mining Law ⛏️✨

On 22nd September 2025, the Ministry of Mines issued an important order under the MMDR Amendment Act, 2025. This is a major shift in how minerals can be sold and how states can manage old mineral dumps, turning “waste” into revenue.

Background

Mining in India is governed by the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act). Over time, amendments balanced industrial demand, transparency, environmental safeguards, and state revenue. Section 8A(7A) deals with captive mines — those linked to end-use plants, like steel mills. It answers: “If a mine produces more than its plant needs, what happens to the extra?”

Original Section 8A(7A)

The law was restrictive. It read:

“Any lessee may, where mineral is used for captive purpose, sell mineral up to fifty per cent. of the total mineral produced in a year after meeting the requirement of the end use plant linked with the mine, in such manner as may be prescribed by the Central Government and on payment of such additional amount as specified in the Sixth Schedule:”

• Proviso 1: Centre could allow Government companies (NMDC, NALCO, SAIL) to sell more than 50%. Private lessees were capped at 50%.
• Proviso 2: Centre could amend the Sixth Schedule to change additional payments for all lessees through notifications.

2025 Amendment – Key Changes

• 50% cap removed: Now, any surplus mineral after meeting plant needs can be sold.
• State power for dumps: State Governments can permit sale of old dumps stacked up to 31st August 2025 with payment as per Sixth Schedule.
• The second proviso remains: Centre can update Sixth Schedule payments for all lessees.

Why This Matters

• Lease holders: No wastage; surplus minerals can be monetized.
  Example: Steel company in Odisha – 12 lakh tonnes ore produced, 10 lakh consumed, 2 lakh can now be sold legally.
• State Governments: Can authorize sale of old dumps, free land, earn revenue.
  Example: Quartz & Feldspar dumps in Rajasthan stacked since 1990s.
• Economy & Environment: Better utilization reduces pressure for new mining, improves safety, and creates jobs.

Before vs After – Quick Comparison

Conclusion

This is not just a minor tweak — it is a paradigm shift. The 2025 amendment transforms:

• Surplus minerals → from waste to saleable assets
• Old dumps → from environmental liability to revenue source
• Mining oversight → more flexibility, faster state-level approvals

As one industry veteran puts it: “What was once waste is now wealth.” The mining sector is watching closely — this could redefine efficiency, revenue, and sustainability in India’s mining industry.