Critical Minerals

Context: The government has approved amendments to the Mines and Minerals (Development And Regulation) Act allowing commercial mining of lithium and a few other minerals.

Proposed Amendments:

• Lifting ban: The amendment will lift the ban on commercial mining of six critical minerals which are Lithium,beryllium, titanium, niobium, tantalum and zirconium.
• Critical minerals: The government declared 30 minerals as critical for the country, including these six minerals. 
• Monetising assets: The proposed amendment will allow the Central government to auction these minerals while the royalty will go to states.

Need for amendment:

• Procurement of critical minerals: Government is focused on procuring critical minerals, especially lithium, which is useful for batteries, especially for electric vehicles.
• Mining by private entities: Currently, commercial mining of these critical minerals by private companies is prohibited. Only government agencies were allowed in exploration and mining operations.
• Energy Transition: So far, most of the exploration in the country has been focussed on bulk commodities like limestone, coal and iron ore. With new requirements in transition, there is a growing demand for critical minerals, prompting the government to focus on the exploration of deep-seated and critical minerals.
• Reducing import dependency: India is seeking to become a manufacturing hub and reduce import dependence of several minerals used in manufacturing. 
  • Currently, India is dependent on China and other countries to meet its requirement of critical minerals including Rare Earth Elements (REE), which are the building blocks of modern-day technologies.

What are critical minerals?

• Critical minerals are  those minerals  that are at risk of supply shortage, which may have a larger impact on the economy compared to that of other raw materials.

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