The government has officially opened the process for establishing mineral exchanges in India through the Indian Bureau of Mines (IBM). According to reports from Business Standard and Zee News, the initiative comes after the government notified the Mineral Exchange Rules, 2026, on June 30, which provides the regulatory framework for mineral exchanges, market participants, assaying agencies and delivery-based contracts. The Centre has formally initiated this process with the IBM appointed as the authority for registration and regulation of mineral exchanges.
The IBM issued a notice inviting applications on October 1, with the application deadline set for November 2 at 3 p.m., as reported by Zee News. The notice became available on the IBM website on October 3, establishing a clear timeline for companies interested in establishing mineral exchange platforms. The IBM has invited sealed applications from eligible companies, which must be submitted to the Controller of Mines, Mineral Development and Regulation Division, IBM, Nagpur. The application form is available for download from the www.ibm.gov.in website.
Initially, mineral exchanges can facilitate trading in all or any of five minerals: iron, chromite, bauxite, limestone and manganese. According to the rules reported by Zee News, other minerals may be subsequently added with prior approval of the authority, subject to specified exclusions. These exchanges are expected to help promote the development of a market for trading of minerals, concentrates, or processed forms (including metals). Commodity trading platforms already operating before the rules came into force have six months from the operationalisation of the first mineral exchange to obtain registration as a mineral exchange, failing which they will have to cease operations.
Entities seeking registration must be company limited by shares with a minimum net worth of ₹50 crore. As reported by Zee News, the registration is valid for 25 years with a comprehensive fee structure including a ₹3 lakh non-refundable application fee, a ₹50 lakh one-time registration fee, an annual fee of ₹30 lakh, and a ₹2 crore renewal fee. The updated fee structure shows a ₹300,000 non-refundable application fee, a ₹5,000,000 one-time registration fee, and an annual fee of ₹3,000,000.
The government envisages these exchanges as technology-enabled platforms for transparent price discovery and efficient supply chain management. According to Zee News, the Mines and Minerals (Development and Regulation) Act, 1957, provides for promoting mineral market development through these exchanges. The government aims to create a transparent and efficient mechanism for price discovery and dissemination, facilitate the design of commodity supply contracts and ensure timely supply in accordance with contractual obligations. The new rules prohibit the operation of unregistered mineral exchanges after six months of the operationalisation of the first mineral exchange.
