What governs a mining lease in India?
The Mines and Minerals (Development and Regulation) Act, 1957 is the governing statute, together with the rules made under it and the concession rules of the state in which the mineral is found. Mineral concessions, which include prospecting licences and mining leases, are granted by the state government within that framework. Since the 2015 amendment, concessions for most minerals are granted through auction rather than on application, and a lease carries conditions on royalty, dead rent, environmental and forest clearance, and the period for which it runs.
We take pride in our expertise in mining and mineral laws. Our lawyers regularly represent clients before mining tribunals and the High Courts, in matters concerning concessions, leases and the regulatory framework governing extraction.
What the practice covers
- Mineral concessions, prospecting licences and mining leases
- Transfer, renewal and lapse of mining rights
- Royalty and dead rent disputes
- Environmental and forest clearances for mining operations
- Proceedings before mining tribunals and writ petitions
The work overlaps closely with our infrastructure and environment practice, since a mining operation is regulated on both fronts at once.
Common questions
How long does a mining lease run?
Under the Act as amended in 2015, a mining lease is granted for fifty years. On expiry the lease is not renewed: the area is put to auction again. Leases granted before the amendment are governed by the transitional provisions, which is usually the first thing to establish when a dispute arises over tenure.
Where is a dispute over a mining lease heard?
It depends on what is being challenged. An order of a state government on a mineral concession is taken in revision to the revisional authority constituted by the central government. An order of that authority, and state action outside it, is challenged before the High Court in writ jurisdiction. Contractual disputes between parties follow the dispute resolution clause in the instrument.