District Mineral Foundations (DMFs) were established in India under the Mines and Minerals (Development and Regulation) Amendment Act, 2015. Statement 1 is Incorrect: Promoting mineral exploration activities in mineral-rich districts is not a stated objective of DMFs. Statement 2 is Correct: The primary purpose of DMFs is to work for the welfare and benefit of areas and individuals affected by mining-related operations. This includes protecting the interests of the persons affected by mining operations. Statement 3 is Incorrect: However, DMFs do not have the authority to issue licenses for mineral exploration, as this is the responsibility of the State Governments. Their focus is more on the welfare of the affected persons and areas. Hence, option B is the correct answer.