Ministry of Mines Notifies Offshore Areas Atomic Minerals Operating Right Rules, 2025

Introduction

India has taken a significant leap in securing and regulating its strategic mineral resources located in offshore areas. On 14th July 2025, the Ministry of Mines issued a landmark notification (G.S.R. 468(E))—the Offshore Areas Atomic Minerals Operating Right Rules, 2025—under the Offshore Areas Mineral (Development and Regulation) Act, 2002. These rules set the regulatory framework for grant, operation, and monitoring of operating rights concerning atomic minerals such as uranium, thorium, monazite, and others occurring in offshore zones.

Objective of the Rules

The Rules aim to:

Regulate reconnaissance, exploration, and production operations of atomic minerals in India’s offshore areas.
Ensure national security, radiological safety, and environmental protection.
Promote scientific and transparent mineral development, aligned with India’s strategic and economic interests.

Scope & Applicability

Exclusive to atomic minerals—either standalone or in association with other minerals—above threshold grades.
If the grade is below threshold, the provisions of the Offshore Areas Operating Right Rules, 2024 apply.
Determination of grade thresholds is vested in the Atomic Minerals Directorate for Exploration and Research (AMD).

Key Definitions and Institutions

Atomic Minerals: As per the Atomic Energy Act, 1962.
Threshold Value: Grade limits specified in Schedule A of the Atomic Minerals Concession Rules, 2016.
Illegal Mining: Operations without a valid operating right or beyond licensed boundaries.
Administering Authority: Designated by the Central Government under the Act.
Department: Refers to the Department of Atomic Energy (DAE).

Major Highlights of the Rules

1. Reconnaissance & Exploration Without Licence (Rule 4)

Government-authorised agencies may conduct reconnaissance or exploration without a formal operating right.
Such operations are subject to:
- Notification by the administering authority in the Official Gazette.
- Submission of geological reports to the Directorate and DAE.
AMD assesses compliance with threshold values:
- If grade < threshold → Area can be leased under general offshore rules.
- If grade ≥ threshold → Eligible for composite licence or production lease.

2. Grant of Operating Rights (Rules 5–7)

A. Composite Licence

Valid for 3 years, extendable by 2 more years.
Granted after:
- Submission of geological report confirming indicated resources.
- Approval of exploration plan.
- Deposit of performance security (0.25%) of resource value.
- Naval, Defence & Environmental clearances.

B. Production Lease

Granted post-exploration when reserves are confirmed.
Validity till resource exhaustion.
Requires:
- Approved production plan.
- Performance security of 0.50% of resource value.
- Mandatory Indian oversight in case of foreign involvement.

Security, Strategic & Environmental Safeguards

Naval Security Checks: Mandatory inspections of vessels and platforms.
Defence & Space Clearances: From ministries like MoD, MEA, ISRO, and Coast Guard.
Safety Provisions:
- Use of Voyage Data Recorders (VDRs) and satellite tracking.
- Mandatory insurance of all assets and personnel.
Environmental Commitments:
- Seabed rehabilitation post operations.
- Protection of marine biodiversity, especially in ecologically sensitive zones.

Reporting & Monitoring Requirements

Licensees and lessees must submit:
- Quarterly, annual, and event-specific reports to AMD, GSI, and the Administering Authority.
- Accurate logs, geological maps, and mineral balance sheets.
- Storage and handling records for radioactive tailings (esp. Monazite in beach sand).

Data Sovereignty and Confidentiality

No sharing of data with foreign contractors or entities without prior permission.
All processing of geological and exploration data must occur within India.
Indian supervision mandatory in foreign-engaged projects.

Termination & Penalty Provisions

Licences/leases can be terminated for:
- Illegal mining
- Non-compliance with terms
- Non-payment of dues
Performance security may be forfeited upon breach.
In case of revocation, fair compensation will be paid for genuine investments.

Force Majeure Clause

Covers delays due to:
- Natural calamities (floods, earthquakes)
- Acts of war or civil unrest
Such delays can extend licence/lease validity.

Operational Limitations & Co-Usage

No operations within 500 meters of:
- Defence installations
- Telecom cables
- Ports, pipelines, wind farms
Co-use allowed with proper clearances, provided it doesn’t hinder existing operations.
Government pre-emption rights on minerals mined.

Implications for Stakeholders

For Government Bodies:

Ensures control over atomic minerals, a strategic resource.
Promotes inter-ministerial coordination in sensitive offshore activities.

For Mining Companies:

Provides a structured, predictable licensing regime.
Sets clear guidelines for offshore exploration and production.
High compliance requirements, especially on security and data.

For Environmental Authorities:

Strengthens marine conservation efforts.
Mandates seabed rehabilitation and waste management.

Conclusion

The Offshore Areas Atomic Minerals Operating Right Rules, 2025 are a watershed in India’s offshore mining regulatory architecture. By aligning atomic mineral exploration with strategic, environmental, and economic imperatives, these Rules pave the way for secure, sustainable, and scientifically governed offshore resource development.

The regime underscores India’s commitment to energy security, environmental protection, and responsible mineral governance in the maritime domain.

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Source: Ministry of Mines

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