Karnataka and Rajasthan Begin Auction of Exploration licences for Critical Minerals

Context: 

Exploration licences

Karnataka and Rajasthan have initiated auctions for exploration licences of critical and deep-seated minerals.

Rajasthan, Karnataka Launch India’s first Exploration licence Auction for Critical Minerals

  • The auctions in Karnataka and Rajasthan included minerals like gold, copper, and lithium.
  • Karnataka auctioned one block each of gold, copper, and lithium, while Rajasthan auctioned three blocks including rare earth elements, rare metals, and potash.

What Are Exploration Licences?

  • Exploration licences are permissions or rights given by government authorities to carry out exploration activities in the designated areas.
  • These  licenses help Junior Mining Companies get expertise from around the world to gather, process, and understand exploration data.

Benefits of Exploration Licences

  • Empowering Junior Mining Companies

    • Expansion of knowledge: Exploration Licenses help small mining companies learn from experts worldwide.
    • Interpretation of Data: These companies can acquire, process, and interpret exploration data using cutting-edge technologies.
      • They use new tools and methods to find valuable minerals  deep in the earth.
  • Boosting State Government Revenues

The Mines and Minerals (Regulation and Development) Act (1957)

  • This rule regulates the mining sector in India.
  • In 2023, a new mineral concession of Exploration was introduced for Licence for 29 critical and deep-seated minerals
    • Objective: This amendment aims to boost exploration and mining of critical and deep-seated minerals in the country.
    • Exploration of minerals: With Exploration Licenses, companies search for minerals in specific areas.
      • They find specific areas where mining can happen.
    • Direct auction for mining leases: These explored blocks can then be directly auctioned for mining leases.
      • The money earned from selling these areas helps the state governments.
  • Focusing on Important Minerals

    • Exploration Licenses help in finding vital minerals like gold, copper, and lithium.
      • Support to Other Industries: These minerals play a crucial role in various industries and technologies.
      • Exploring and using these minerals further help our economy grow and develop.
Also Read: Mines and Minerals (Development and Regulation) Amendment Bill, 2023

News Source: Thehindu

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