The Mineralogical and Metallurgical (MinMet) exemption offers qualifying manufacturers significant relief from the Climate Change Levy (CCL) on electricity and gas. For eligible processes, MinMet can deliver immediate and substantial cost savings without the administrative burden of Climate Change Agreements (CCAs).
What is MinMet and how does the CCL exemption work?
MinMet is a CCL exemption for energy used in defined mineralogical and metallurgical processes, as set out in HMRC Exemption Notice CCL1/3. The qualifying activities are specifically listed in legislation and include a wide range of glass, ceramics, cement, metals production, casting, forging, heat treatment and surface-treatment processes.
Where a site undertakes both qualifying and non-qualifying activities, energy use must be apportioned on a fair and reasonable basis. HMRC guidance confirms that certain process-related handling, factory services and on-site activities can also fall within scope where they are incurred in the course of a qualifying process.
MinMet relief can be claimed without entering a CCA and does not require energy-efficiency targets or ongoing reporting.
Which businesses are eligible for MinMet Climate Change Levy relief?
Eligibility is based on the specific processes undertaken, not simply the sector or size of the business. In practice, qualifying activities often fall within the following NACE Rev. 2 classifications, although eligibility must always be confirmed at a process level:
23
Manufacture of non-metallic mineral products
(e.g. glass, ceramics, cement, lime, plaster)
24
Manufacture of basic metals
25.5
Forging, pressing, stamping and roll-forming of metal
25.6
Surface treatment and coating of metals
Importantly, not all energy used on site is automatically exempt. Relief applies only to the proportion of electricity and gas attributable to qualifying mineralogical or metallurgical processes. Where a site undertakes both qualifying and non-qualifying activities, energy use must be apportioned on a fair and reasonable basis, supported by appropriate evidence.
Why it Why the MinMet exemption matters for energy-intensive manufacturers
For eligible businesses, MinMet can unlock material operational savings:
- Up to 100% CCL relief on qualifying electricity and gas
- Manufacture of No CCA targets, audits or reporting obligations metals
- Immediate financial benefit, improving cashflow
- Potential retrospective claims, subject to evidence
Example:
A metal finishing facility with high electricity demand for heat treatment and surface coating determines that 65% of its electricity consumption relates to qualifying metallurgical processes. By evidencing process loads and applying the MinMet exemption, the business removes CCL charges on that proportion of energy, delivering annual savings in the tens of thousands of pounds, without entering a Climate Change Agreement or committing to future targets.
How to claim the MinMet exemption
The claiming process typically involves:
- Assessing whether site activities meet HMRC’s MinMet process definitions
- Mapping energy consumption to qualifying and non-qualifying uses
- Preparing technical and evidential justification
- Registering the exemption with energy suppliers
Eligible businesses can claim up to 100% CCL relief on qualifying energy use immediately, and in some cases may backdate claims, subject to robust supporting evidence.
Improved understanding and application of HMRC guidance means some businesses may identify qualifying MinMet energy use that was previously unrecognised.
Check your MinMet eligibility and start reducing energy costs
MinMet represents a powerful but often overlooked opportunity for manufacturers in metals and minerals to reduce energy costs quickly and compliantly. With rising energy prices and tighter margins, failing to assess eligibility risks leaving significant savings unclaimed.
Don’t miss out on substantial CCL savings
Contact us today to check your MinMet eligibility and start claiming your relief.
