The Union Budget 2024-25 introduced a transformative Critical Mineral Mission, reflecting India’s strategic focus on securing essential mineral resources, promoting recycling, and acquiring overseas mineral assets. Announced on July 23, 2024, the mission aims to bolster domestic production and reduce dependence on imports for critical minerals vital to emerging industries such as renewable energy, electric vehicles, and advanced manufacturing.
Key Features of the Critical Mineral Mission
1. Critical Minerals Framework
- A total of 24 minerals have been classified as critical and strategic, included under Part D of the First Schedule of the MMDR Act, 1957.
- This categorization ensures targeted policy measures and regulatory focus.
2. Legislative and Auction Enhancements
- The MMDR Act, 1957, was amended in 2023 to empower the Central Government to auction critical mineral blocks.
- As of now, 22 blocks have been successfully auctioned.
3. Exploration Licenses
- A new concession type, the Exploration License, has been introduced for 29 minerals, including 22 critical ones.
- The license allows reconnaissance and prospecting operations, streamlining the process of identifying resource-rich sites.
Boosting Exploration Activities
The Geological Survey of India (GSI) has ramped up its efforts in identifying potential mining sites:
- 368 exploration projects were undertaken from 2021-2024.
- For 2024-25, GSI plans 195 projects focusing on critical and strategic minerals.
- The National Mineral Exploration Trust (NMET) has funded 443 projects, of which 139 target critical minerals. To foster private sector participation, 25 private exploration agencies have been approved to collaborate under NMET schemes.
Additionally, a reimbursement scheme for exploration expenses has been introduced to encourage private investment in mining exploration.
Promoting Recycling and Sustainability
A draft framework has been designed to enhance the domestic capacity for recycling critical minerals.
- Lithium-ion battery recycling capacity is projected to increase fourfold from the current 75,000 tonnes annually during the mission’s tenure.
- To support recycling efforts, import duties on waste and scrap of six critical minerals have been eliminated.
International Collaboration for Resource Acquisition
India has intensified efforts to acquire overseas mineral assets:
- Khanij Bidesh India Limited (KABIL), a joint venture, has been instrumental in signing MoUs with resource-rich nations.
- A landmark agreement with CAMYEN, Argentina, will facilitate exploration and development of five lithium blocks, ensuring a steady supply of this vital resource.
Monitoring and Strategic Oversight
The Ministry of Mines plays a crucial role in overseeing the mission’s key objectives, focusing on domestic production, recycling, and international acquisitions.
This mission is a cornerstone of India’s strategic push for self-reliance in critical minerals, essential for the nation’s energy transition and technological advancements. By leveraging domestic resources, fostering global partnerships, and promoting sustainability, the Critical Mineral Mission paves the way for a resilient and resource-secure future.
List of Critical and Strategic Minerals in Part D of the First Schedule of the MMDR Act
The following 24 minerals have been designated as critical and strategic under Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957:
- Beryl and other beryllium-bearing minerals
- Cadmium-bearing minerals
- Cobalt-bearing minerals
- Gallium-bearing minerals
- Glauconite
- Graphite
- Indium-bearing minerals
- Lithium-bearing minerals
- Molybdenum-bearing minerals
- Nickel-bearing minerals
- Niobium-bearing minerals
- Phosphate (without uranium)
- Platinum Group of Elements (PGE) bearing minerals
- Potash
- Minerals of the “rare earths” group not containing uranium and thorium
- Rhenium-bearing minerals
- Selenium-bearing minerals
- Tantalum-bearing minerals
- Tellurium-bearing minerals
- Tin-bearing minerals
- Titanium-bearing minerals and ores (ilmenite, rutile, and leucoxene)
- Tungsten-bearing minerals
- Vanadium-bearing minerals
- Zirconium-bearing minerals and ores, including zircon
These minerals are integral to advanced technologies, renewable energy solutions, and strategic industries. Their inclusion under this framework ensures targeted policy interventions for exploration, production, and recycling to meet growing domestic and global demands.
Source: PIB