Stuck between Two Shafts: How MMDR Should Avoid International Investment Disputes

Certain procedural gaps in the Mines and Minerals (Development and Regulation) Act, 1957 have increased India’s vulnerability to international investment disputes. A contemporary case study for this is the Indo Gold v. India arbitration, in which claims against lapsing of prospecting licenses have been raised. This paper argues that the current reliance on extended litigation and investor-state dispute settlement system creates burdensome costs and increases regulatory uncertainty. As a remedy, the specialised Mining Mediation Model is proposed, which closely aligns with the Mediation Act, 2023. This framework advocates for pre-termination mediation, strict time-bound resolutions, and inclusion of independent technical experts for mineral asset valuation, and thus provides a neutral, transparent, and commercially viable alternative.