National Mineral Exploration and Development Trust
Why in News?
The National Mineral Exploration Trust (NMET), recently renamed the National Mineral Exploration and Development Trust (NMEDT), supports mineral exploration in India. It funds projects for critical minerals amid efforts to reduce import dependence.
Legal & Institutional Framework
- Establishment: Formed in 2015 under Section 9C of the Mines and Minerals (Development and Regulation) Act, 1957.
- Status: Transitioned into a "Non-profit Autonomous Body" following the 2021 MMDR Amendment to provide greater operational flexibility.
- Two-Tier Structure:
- Governing Body: Apex body chaired by the Union Minister of Mines; provides policy direction.
- Executive Committee: Chaired by the Secretary, Ministry of Mines; manages day-to-day administration and project approvals.
Funding Mechanism
- Accrual: Funded primarily through a levy on miners.
- Contribution: Holders of mining leases pay an amount equivalent to 2% of the royalty (some recent documents suggest a move toward 3% for specific categories) to the NMET fund.
- Utilization: Funds are used for regional and detailed exploration, aerial geophysical surveys, and capacity building.
Primary Objectives
- Deep-seated Minerals: Funding specialized projects to find concealed deposits (e.g., gold, copper, diamonds).
- Strategic Independence: Prioritizing Critical Minerals like Lithium, Cobalt, and Rare Earth Elements (REEs) essential for EVs and green energy.
- Data Generation: Building the National Geoscientific Data Repository (NGDR) to make geological data public and attract private investment.
- Modernization: Promoting "Circular Mining" by funding research into recovering minerals from tailings (mining waste) and fly ash.
Key Achievements
- Project Volume: Approved over 680 projects to date with an estimated cost exceeding ₹3,500 crore.
- Auction Facilitation: Funded exploration for blocks that have since been successfully auctioned, generating significant revenue for state governments.
- Private Participation: Notified over 16 Private Exploration Agencies (NPEAs) to break the government monopoly on exploration.
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