In a significant move to bolster its mineral exploration framework, India has moved a set of amendments to the Minerals (Evidence of Mineral Contents) Rules, 2015 wherein it introduced a set of new guidelines for the exploration and extraction of rare earth elements (REEs) and rare metals, critical components. The move aligns with India’s global push toward clean energy and advanced technology.

The changes signal the country’s intent to tap into its untapped mineral wealth amid rising international demand.

The amendments, effective immediately and notified on June 12, refine the classification and exploration stages—labelled G4 (reconnaissance), G3 (prospecting), G2 (general exploration), and G1 (detailed exploration) — for REE deposits found in pegmatites, reefs, veins, pipes, carbonatites, and other alkali igneous rocks.

Specifications have been introduced on borehole spacing or grids at a detailed exploration level, while at G2 stage trenching and pitting specifications have been mentioned. In case of prospecting and reconnaissance levels specification of pits & trenches and random drilling provisions have been mentioned.

For instance, REE deposits in tabular formations will now require borehole grids with spacing as close as 100 meters by 100 meters at the G1 stage, a marked increase in precision from previous standards.

Similarly, lenticular deposits, often occurring as veins or lenses, will see borehole spacing tightened to 100 meters by 50 meters, ensuring more detailed assessment of these scarce resources, at a G1 level.

Rare earth elements, including neodymium, dysprosium, and praseodymium, are essential for manufacturing electric vehicle batteries, wind turbines, and high-tech electronics. China currently dominates global production, accounting for over 60 per cent of the supply, leaving nations like India eager to reduce dependency on imports.

New rules

The new rules aim to enhance the accuracy of mineral content estimation, a step market sources say could position India as a viable player in this strategic market.

Economically, the policy could spur investment in India’s mining sector, particularly in states like Odisha, Rajasthan, and Madhya Pradesh, where REE deposits have been identified.

The government’s emphasis on exploratory mining— open-pit or underground operations at the G2 and G1 stages — suggests a readiness to transition from reconnaissance to production.

The amendments also come at a geopolitical juncture, although Mines Ministry officials deny any such link.

With the United States and European Union intensifying efforts to diversify REE sources away from China, India’s updated rules could attract foreign partnerships.

The success of these amendments in unlocking REE reserves could reshape international supply chains, while their environmental footprint will test the nation’s commitment to sustainable development. For now, the policy marks a bold step toward mineral sovereignty, with the promise—and pitfalls—of a resource-rich future.

Apart from REEs, the amendments also refer to mining of gemstones, like beryl, topaz, emerald deposits, diamond, pocket/ lenses / veins of fluorite in carbonite, etc.

Published on June 13, 2025