National Mineral Exploration Trust

The National Mineral Exploration Trust (NMET) is a government-established body under the Ministry of Mines, Government of India, created to promote and fund regional and detailed mineral exploration activities across the country. Established in 2015 under the provisions of the Mines and Minerals (Development and Regulation) Amendment Act, 2015, the NMET functions as a non-profit autonomous body with the primary objective of enhancing mineral exploration to ensure sustainable and scientific development of India’s mineral resources.
The trust plays a pivotal role in accelerating exploration activities, strengthening data generation, and reducing India’s dependence on imported minerals by discovering new deposits.

Background and Context

India possesses rich mineral resources but faces challenges in systematic exploration and identification of mineral-bearing areas. Until 2015, exploration efforts were largely undertaken by government agencies such as the Geological Survey of India (GSI) and Mineral Exploration Corporation Limited (MECL). However, the pace of discovery was inadequate to meet the demands of a growing economy.
To address this, the Mines and Minerals (Development and Regulation) Amendment Act, 2015 introduced key reforms, including:

• Establishment of the District Mineral Foundation (DMF) for local development.
• Creation of the National Mineral Exploration Trust (NMET) to fund exploration projects.

This marked a significant step towards promoting scientific, transparent, and collaborative exploration in the mineral sector.

Legal Foundation

The NMET was constituted under Section 9C of the Mines and Minerals (Development and Regulation) Amendment Act, 2015.
According to the Act:

“The Central Government shall establish a Trust, as a non-profit body, for regional and detailed exploration of minerals in the country to be called the National Mineral Exploration Trust.”

The Rules governing the Trust — titled the National Mineral Exploration Trust Rules, 2015 — were notified on 14 August 2015 to regulate its composition, functioning, and utilisation of funds.

Objectives of the NMET

The NMET aims to:

1. Promote Scientific Mineral Exploration:
   • Encourage systematic, region-specific, and target-oriented exploration across India.
2. Fund Mineral Exploration Projects:
   • Support exploration initiatives by government and private entities through financial assistance.
3. Generate Geoscientific Data:
   • Strengthen the national mineral database and improve resource assessment.
4. Facilitate Mineral Security:
   • Reduce import dependency by discovering new mineral deposits.
5. Encourage Collaboration:
   • Promote public–private partnerships (PPP) in exploration.
6. Capacity Building:
   • Develop advanced technologies, training, and human resource capabilities in mineral exploration.

Sources of Funds

The NMET is primarily funded through contributions from holders of mining leases and prospecting licences-cum-mining leases.

• As per Section 9C(2) of the MMDR Act, leaseholders contribute 2% of the royalty payments to the NMET.
• These contributions are collected by the respective State Governments and transferred to the NMET.
• Additional resources may include grants, donations, or funds from the Central Government and international agencies.

Thus, the NMET acts as a pooled financial mechanism for funding mineral exploration across the country.

Governance and Organisational Structure

The NMET functions as an autonomous body under the administrative control of the Ministry of Mines.

1. Governing Body:

The apex decision-making authority responsible for policy formulation and fund allocation.
Composition:

• Union Minister of Mines – Chairperson
• Minister of State for Mines – Member
• Secretaries from Ministries of Mines, Finance, and Planning – Members
• State Government representatives from mineral-rich states – Members
• Experts and industry representatives – Nominated Members

2. Executive Committee:

Oversees implementation and monitoring of exploration projects.
Composition:

• Secretary, Ministry of Mines – Chairperson
• Senior officers from the Geological Survey of India (GSI), Indian Bureau of Mines (IBM), and MECL – Members

3. Implementing Agencies:

NMET collaborates with several central and state-level exploration agencies, including:

• Geological Survey of India (GSI)
• Mineral Exploration Corporation Limited (MECL)
• State Directorates of Geology and Mining
• Atomic Minerals Directorate (AMD)
• Private exploration companies (under public–private partnerships)

Key Functions of NMET

1. Funding Exploration Projects:
   • Provide financial support for reconnaissance, prospecting, and detailed mineral surveys.
2. Data Collection and Dissemination:
   • Generate and share geoscientific data for national mineral inventory development.
3. Project Prioritisation:
   • Approve and monitor exploration proposals from central and state agencies.
4. Technology and Innovation:
   • Promote adoption of modern exploration techniques such as remote sensing, GIS mapping, and geophysical surveys.
5. Capacity Development:
   • Conduct training and research to enhance human resource capacity in mineral exploration.
6. Public–Private Collaboration:
   • Facilitate partnerships between government and private sector entities for exploration in unexplored areas.

Activities and Achievements

Since its inception, NMET has significantly contributed to advancing India’s mineral exploration ecosystem.

Key Initiatives and Achievements:

1. Funding of Projects:
   • Financed numerous exploration projects across states for minerals such as iron ore, bauxite, limestone, graphite, and rare earth elements.
2. Project Coverage:
   • Approved projects covering over 500 mineral blocks across 18 states.
3. Capacity Building:
   • Supported advanced exploration training programmes and workshops for geoscientists.
4. Data Repository:
   • Contributed to the development of the National Geoscience Data Repository (NGDR) for digitised geological and exploration data.
5. Support to Private Exploration:
   • Promoted ease of doing exploration business by funding preparatory work and data generation.
6. Collaboration with Agencies:
   • Worked closely with GSI, MECL, and state geological departments for integrated exploration planning.

Importance of NMET in the Mining Sector

1. Accelerating Exploration:
   • Expands exploration to new and deep-seated mineral areas.
2. Enhancing Mineral Security:
   • Supports national self-sufficiency in critical minerals such as lithium, rare earths, and copper.
3. Attracting Investment:
   • Provides reliable geological data to reduce risk for private investors.
4. Promoting Transparency:
   • Makes exploration data publicly accessible, fostering competitive bidding for mineral blocks.
5. Supporting Policy Goals:
   • Aligns with National Mineral Policy (2019), which emphasises exploration-led growth.

Financial Performance

• The NMET corpus has grown steadily since 2015 due to contributions from mining leaseholders.
• Funds are allocated annually to central and state agencies for approved exploration projects.
• The trust ensures transparent utilisation of resources through auditing and performance evaluation mechanisms.

Challenges

1. Limited Private Sector Participation:
   • Private explorers remain cautious due to procedural and regulatory hurdles.
2. Delays in Project Execution:
   • Administrative bottlenecks and coordination gaps between central and state agencies.
3. Technological Constraints:
   • Need for modern technology and advanced geoscientific tools for deep exploration.
4. Data Integration:
   • Fragmentation of exploration data across agencies limits efficiency.
5. Low Awareness:
   • Limited understanding among smaller mining entities about NMET’s funding mechanisms.

Future Outlook

The NMET envisions transforming India into a globally competitive exploration hub by:

• Expanding exploration in under-explored regions such as the North-Eastern states and deep-seated mineral zones.
• Funding research in critical and strategic minerals (e.g., lithium, cobalt, nickel, rare earth elements).
• Collaborating with international exploration agencies for technology transfer.
• Supporting the Government’s Atmanirbhar Bharat (self-reliant India) mission through domestic resource discovery.