India: Centre authorises IBM to regulate domestic mineral exchanges

• Step operationalises Aug’25 amendments to MMDR Act
• Exchange to facilitate price discovery, transparent trading

The Ministry of Mines, through a Gazette notification dated 7 October 2025, has authorised the Indian Bureau of Mines (IBM) to register and regulate domestic mineral exchanges. The notification was issued under Section 18B(2) of the Mines and Minerals (Development and Regulation) Act, 1957, covering minerals other than those listed in Part A and B of the Act’s First Schedule.

This step operationalises the August 2025 amendments to the MMDR Act, which provided enabling provisions for establishing a domestic minerals exchange. The exchange is intended to bring greater transparency, fair price discovery, and market efficiency in mineral trading.

Union Mines Minister G. Kishan Reddy earlier said India’s mineral exchange would be modelled on the London Metal Exchange (LME) and regulated to ensure fair trading practices. Guidelines under the amended law are expected to be issued shortly.

Under the new framework, mineral exchanges will operate similarly to commodity markets, enabling verified buyers and sellers to trade minerals such as iron ore, bauxite, and manganese at market-driven prices. IBM will oversee registration, set operational norms, and ensure compliance with environmental and safety standards.

The initiative is expected to transform how minerals are traded by replacing opaque bilateral deals with standardised, transparent mechanisms. This could lead to better price discovery, reduced reliance on intermediaries, and improved access for small and mid-sized mining companies. Downstream sectors like steel, cement, and energy also stand to benefit from more stable and predictable pricing.

By assigning this role to IBM, the Centre aims to create a structured trading ecosystem for minerals and reduce opaque pricing mechanisms that have long characterised the sector. The framework will allow verified buyers and sellers to trade minerals at market-determined rates under IBM’s oversight.

By aligning with global best practices, India aims to become a competitive player in the global mineral trade. While implementation details are being finalised, IBM’s expanded role signals a major step toward a transparent, efficient, and sustainable mineral sector, reinforcing investor confidence and national resource security.