Miners Face Risk of Lease Cancellation if Operations Fail to Begin Within Two Years

Mining lease holders could lose their rights over mineral blocks if they fail to start operations within two years of lease approval, under a proposed regulatory move aimed at discouraging speculative holding of resources. The measure seeks to ensure that allotted mineral assets are developed in a timely manner and contribute to production targets.

Officials indicated that the provision would apply mainly to leases where there has been no meaningful progress on project development, despite completion of key approvals. While limited extensions may be allowed in exceptional cases such as legal disputes or force majeure conditions, authorities are expected to closely scrutinise delays.

The move is intended to bring greater discipline to the mining sector, encourage faster project execution, and improve mineral availability for downstream industries. Industry observers believe the proposal could prompt miners to accelerate investments and operational readiness soon after lease grants.