The objective of District Mineral Foundation is to utilize the DMF Contribution in Pradhan Mantri Khanij Kshetra Kalyan Yojana (PMKKKY) and other welfare schemes to implement various developmental and welfare projects/programs in mining affected areas, to minimize/mitigate the adverse impacts, during and after mining, on the environment, health and socio-economics of people in mining districts. to ensure long-term sustainable livelihoods for the affected people in mining areas.

According to PMKKKY at least 60% of the funds to be utilized under high priority areas and remaining 40% of the fund to be utilized under other priority areas.