India Invites Bids for Mineral Exchange to Boost Transparency and Trading

The Indian Bureau of Mines (IBM) has invited applications from eligible companies to establish and operate a mineral exchange under the Mineral Exchange Rules, 2026, The Economic Times reported. The deadline for applications is November 2.

The proposed exchange will initially cover iron ore, chromite, bauxite, limestone and manganese, with other minerals potentially added with IBM approval. The platform is expected to provide a transparent mechanism for mineral trading, price discovery and settlement, supported by standardised quality specifications and delivery-based contracts.

Applicants must be companies limited by shares with a minimum net worth of ₹500 million ($5.2 million). The registration will be valid for 25 years.

The initiative has a precedent in China's Beijing Iron Ore Trading Center (COREX), which operates an electronic spot trading platform for iron ore. COREX brings miners, steel mills and traders onto a common platform and uses transaction data to support iron ore price discovery.

For India, the inclusion of bauxite could be particularly relevant to the aluminium industry. A liquid exchange could provide more transparent bauxite prices and quality differentials, helping alumina refiners and miners assess market levels and negotiate supply contracts. It could also reduce reliance on privately negotiated prices.

However, the impact will depend on market participation and liquidity. If major producers and consumers actively trade on the platform, exchange-based transactions could eventually become an important reference for domestic mineral prices. If participation remains limited, its role in price discovery is likely to be restricted.

The latest move takes India's mineral exchange initiative from the regulatory stage towards implementation, with the potential to make domestic mineral pricing more transparent and market-driven.