New Delhi: The Indian Bureau of Mines (IBM) has invited applications from eligible firms to set up mineral exchanges in the country, to be submitted by a November 2 deadline.
A new mineral exchange can initially facilitate trading in all or any of five minerals including iron, chromite, bauxite, limestone, and manganese. Other minerals may subsequently be added with the prior approval of IBM, subject to the exclusions specified under the rules, according to the notice inviting applications (NIA). These exchanges are expected to help promote the development of a market for trading of minerals, concentrates, or processed forms (including metals).
The NIA document containing the application form was made available for download from the website www.ibm.gov.in on October 3, with the last date of submission of application being fixed as November 2, up to 3 p.m.
The new rules prohibit the operation of unregistered mineral exchanges after six months of the operationalisation of the first mineral exchange. Any commodity trading platform in operation prior to notification of these rules is required to obtain registration as a mineral exchange within six months, failing which they will cease to operate, according to an IBM statement.
The government’s objective for setting up mineral exchanges to provide technology-enabled platforms aimed at facilitating transactions and creating a transparent and efficient mechanism for price discovery and dissemination. It will also facilitate the design of commodity supply contracts and ensure timely supply in accordance with contractual obligations.
The IBM has invited sealed applications from eligible companies, which are to be submitted to the Controller of Mines, Minerals Development and Regulation Division, IBM, Nagpur.
The move comes after the government notified the Mineral Exchange Rules, 2026, on June 30, which provide the regulatory framework for mineral exchanges, market participants, assaying agencies, and delivery-based contracts.
Registration as a mineral exchange will be valid for 25 years. An entity seeking registration must be a company limited by shares, with a minimum net worth of Rs 50 crore. The fee structure includes a Rs 3 lakh non-refundable application fee, a one-time registration fee of Rs 50 lakh and an annual fee of Rs 30 lakh. The renewal fee has been fixed at Rs 2 crore.
(IANS)
