PANAJI / NEW DELHI : The government on Thursday opened up minerals and rare earth elements (REE) exploration for the private sector by putting on the block 13 acreages under a liberalised regime with the aim of unlocking India’s untapped deep seated natural resources.
“This is a game-changing reform that will open the doors to systematic exploration of various minerals. This ensures that those who invest in high-quality exploration will directly benefit when their findings become commercial ventures,” coal and mines minister G Kishan Reddy said at the launch of the first auction of exploration licences here.
He said the new policy opens the doors for “junior mining companies, specialised exploration firms and global investors, creating a thriving ecosystem that mirrors the world’s most successful mineral economies”.
Historically mineral exploration had remained an exclusive domain of state-run entities. The private sector was allowed a role only in mining of fully explored blocks. The government in 2019 brought in the National Mineral Policy with the aim of modernising the sector with improved transparency and regulation with the objective of attracting private investment and technology.
The Mines & Minerals (Development & Regulation) Act of 1957 was subsequently amended in 2023 allowing private participation for exploration of 29 critical and deep-seated minerals as well as auction of exploration licences.
Reddy said the auctioned licences will empower private companies to explore vast areas of up to 1,000sqkm per licence. “This new framework will encourage transparency, efficiency, and innovation, ensuring that only the most promising areas remain for detailed exploration,” he said.
The government, through the National Mineral Exploration Trust, will reimburse 50% of the exploration cost if minerals are not discovered during the exploration period. In case of discovery, the block will be auctioned and the companies will be granted 50-year mining lease.
Licences are being offered for exploration of REE (rare eath elements), zinc, diamond, copper, zinc, gold and PGE (platinum group minerals).
Critical and deep-seated mineral resources are spread across Andhra, Gujarat, Jharkhand, Maharashtra, Uttar Pradesh, Chhattisgarh, Rajasthan and Karnataka. Around 25 private companies have shown interest and participated in the discussions.
Reddy and Sawant also launched the second AI Hackathon 2025 to develop an AI module to explore minerals in the country.
