India Opens Applications for New Mineral Exchanges
The Indian government has launched the process for establishing mineral exchanges in the country. The Indian Bureau of Mines (IBM) is now accepting applications from eligible firms to set up and operate these platforms. This move follows the notification of the Mineral Exchange Rules, 2026, which came into effect on June 30. These rules provide the regulatory framework for mineral exchanges, market participants, assaying agencies, and delivery-based contracts.
Under the new rules, existing commodity trading platforms have six months from the operationalization of the first mineral exchange to register. Those that fail to register within this period will have to cease operations. The IBM, appointed as the regulatory authority, issued a notice inviting applications on October 1, with the deadline set for November 2.
Initially, mineral exchanges will facilitate trading in five minerals: iron, chromite, bauxite, limestone, and manganese. Other minerals may be added later with prior approval from the authority. The government envisions these exchanges as technology-enabled platforms to promote transparent and efficient price discovery and dissemination. They will also help design commodity supply contracts and ensure timely supply as per contractual obligations.
To qualify for registration, an entity must be a company limited by shares with a minimum net worth of ₹50 crore. Registration is valid for 25 years, with fees including a ₹3 lakh non-refundable application fee, a one-time registration fee of ₹50 lakh, and an annual fee of ₹30 lakh. The renewal fee is set at ₹2 crore. Applications must be submitted to the Controller of Mines, Mineral Exchange Cell, MDR Division, IBM, Nagpur, along with the prescribed fee.