Ministry of Mines
azadi ka amrit mahotsav

Measures Initiated to Attain Self-reliance in Critical Minerals

Posted On: 13 DEC 2023 4:15PM by PIB Delhi

Though India has not been a dominant player in the global supply chain for various critical minerals like Lithium, cobalt etc., India has been working to strengthen its position in the mining and processing of critical minerals.

The Ministry of Mines has actively engaged with resource-rich countries for access to critical minerals as well as domestic exploration and auction of critical mineral blocks.

A joint venture company namely Khanij Bidesh India Ltd. (KABIL) has been incorporated with the equity contribution from three Central Public Sector Enterprises namely, National Aluminium Company Ltd, Hindustan Copper Ltd and Mineral Exploration and Consultancy Ltd with the objective to acquire critical mineral assets abroad to ensure consistent supply of critical and strategic minerals to Indian domestic market.

KABIL is presently exploring opportunities for acquisition of overseas critical minerals assets like Lithium (Li) and Cobalt (Co) in Australia, Argentina and Chile for securing long term supply of these critical minerals.

The Ministry of Mines has joined Mineral Security Partnership (MSP) led by United States of America. This partnership aims to enhance cooperation in securing the supply chain of critical minerals for the member countries by facilitating investment in identified blocks of these minerals in resource rich countries.

Considering that at present the availability of the critical minerals or technologies for their extraction and processing are concentrated in a few geographical locations which may lead to supply chain vulnerabilities and even disruption of supplies, the Central Government has amended the Mines and Minerals (Development and Regulation) Act, 1957 through the MMDR Amendment Act, 2023.

Through the said amendment the Central Government has been empowered to exclusively auction mining lease and composite licence for 24 critical minerals listed in the new Part-D of the First Schedule to the MMDR Act which includes minerals such as Cobalt, Graphite, Lithium, Nickel, Tantalum, Titanium etc. The objective of this amendment is to increase exploration and mining of critical minerals and ensure self-sufficiency in supply of critical minerals which are essential for the advancement of many sectors, including high-tech electronics, telecommunications, transport, defence etc. These are also vital to power transition to a low-emission economy, and the renewable technologies that will be required to meet the ‘Net Zero’ commitment of India by 2070.

The Central Government has launched the first tranche of e-auction of 20 blocks of critical and strategic minerals on 29.11.2023 which include blocks of Lithium, Rare Earth Elements, Platinum Group of Minerals, Nickel, Potash etc. The auction of these blocks aims to create a steady supply of these minerals, thus reducing our reliance on imports and ensuring a more secure and resilient supply chain. The details of the blocks are at Annexure.

The auction of critical and strategic minerals brings several key benefits, including bolstering domestic production, reducing import dependency, promoting sustainable resource management, attracting investments in the mining sector and the development of key industries crucial for India's industrial and technological advancement. This is a step towards creating a reliable supply chain of these mineral and a step towards making an ‘Atma Nirbhar Bharat’ and contribute towards increased economic growth.

Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, and Copper are difficult to explore and mine as compared to surfacial or bulk minerals. The country is mostly dependent on imports of these minerals. In order to boost the exploration for these minerals, a new mineral concession namely Exploration Licence has been introduced for 29 critical and deep-seated minerals. The Exploration Licence granted through auction shall permit the licencee to undertake reconnaissance and prospecting operations for critical and deep-seated minerals mentioned in the newly inserted Seventh Schedule to the MMDR Act.

Exploration license is foreseen to create an enabling mechanism wherein the Junior Mining Companies will bring in expertise from across the world in the field of exploration and mining sector as well as leverage the risk-taking ability in discovery of deep-seated mineral deposits through adoption of expertise and latest technologies.

 

Annexure

The details of Critical Mineral Blocks which have been notified for auction are as detailed below:

 

Sl
No

Block Name

State

Mineral

ML/ CL

1

Chutia-Nauhatta Glauconite Block

Bihar

Glauconite

CL

2

Pipradih-Bhurwa Glauconite Block

Bihar

Glauconite

CL

3

Genjana Nickel, Chromium and PGE Block

Bihar

Nickel, Chromium

and PGE

CL

4

Kundol Nickel and Chromium Block

Gujarat

Nickel &

Chromium

CL

5

Muskaniya-Gareriatola-Barwari Potash Block

Jharkhand

Potash

CL

6

Dudhiasol East Nickel and Copper Block

Odisha

Nickel and Copper

ML

7

Babja Graphite and Manganese Block

Odisha

Graphite and

Manganese

ML

8

Biarapalli Graphite and Manganese Block

Odisha

Graphite and

Manganese

ML

9

Akharkata Graphite Block

Odisha

Graphite

CL

10

Vellakal Central (Segment-A) Molybdenum Block

Tamil Nadu

Molybdenum

CL

11

Nochchipatti Molybednum Block

Tamil Nadu

Molybdenum

CL

12

Velampatti North A & B Molybdenum Block

Tamil Nadu

Molybdenum

CL

13

Kurunjakulam Graphite Block

Tamil Nadu

Graphite

CL

14

Iluppakudi Graphite Block

Tamil Nadu

Graphite

CL

15

Mannadipatti Central Molybdenum Block

Tamil Nadu

Molybdenum

CL

16

Marudipatti (Central) Molybdenum Block

Tamil Nadu

Molybdenum

ML

17

Kurchha Glauconite Block

Uttar Pradesh

Glauconite

CL

18

Pahadi Kalan - Gora Kalan Phosphorite Block

Uttar Pradesh

Phosphorite

CL

19

Salal-Haimna Lithium, Titanium and Bauxite (Aluminous Laterite) Block

UT:          Jammu

and Kashmir

Lithium, Titanium

and Bauxite(Aluminous Laterite)

CL

20

Katghora Lithium and REE Block

Chhattisgarh

Lithium and REE

CL

 

This information was given by Union Minister of Coal, Mines and Parliamentary Affairs Shri Pralhad Joshi in a written reply in Lok Sabha today.

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BY/RKP



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