Centre to set up mineral trading exchange under SEBI framework

Union Coal and Mines Minister G Kishan Reddy has announced that the central government will establish a mineral trading exchange, modelled on the London Metal Exchange (LME), according to a report by PTI.

Reddy said the platform will be developed in line with Securities and Exchange Board of India (SEBI) regulations. He noted that the exchange aims to provide transparent price discovery and support industries, traders, and other stakeholders in the mineral sector.

The minister added that the exchange had already been included in recently passed legislation, with detailed guidelines expected to be issued soon.

Globally, the LME is a benchmark for industrial metals, offering futures and options trading, warehouse-linked delivery, and risk-hedging mechanisms. An Indian mineral exchange could adopt features such as standardised contracts, clearing-house settlement, and delivery-linked warehousing, while adapting to domestic needs like coal, iron ore, and bauxite pricing. 

Reddy also highlighted measures to reduce reliance on imported coal, stating that the country had cut imports and saved nearly Rs 60,000 crore in foreign exchange. He pointed out that many domestic steel plants use boilers designed for imported coal and that the government is urging private steelmakers to adapt systems to utilise Indian coal.

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