From exploration to recycling: India’s comprehensive approach to securing critical minerals-OxBig News Network

The Union Cabinet on Wednesday approved the National Critical Mineral Mission (NCMM) with an expenditure of Rs 16,300 crore and expected investment of Rs 18,000 crore by public sector undertakings (PSUs) to secure critical mineral supply in the country.

According to an official statement, the mission will encompass all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products.

Understanding critical minerals

A mineral is labelled as critical when the risk of supply shortage and associated impact on the economy is (relatively) higher than the other raw materials.

According to a June 2023 report by the Ministry of Mines — ‘Critical Mines for India’— critical minerals are the foundation on which modern technology is built. From solar panels to semiconductors, wind turbines to advanced batteries for storage and transportation, the world needs critical minerals to build these products.

“Simply put, there is no energy transition without critical minerals, which is why their supply chain resilience has become an increasing priority for major economies. India’s future economic prosperity will depend on how well we can use our vast energy and mineral resources to play to our strengths, and how well we can adapt to follow the global market shift towards zero emissions,” states the report.

“As an emerging global economic powerhouse, it is essential to understand and harness the potential of critical minerals to fuel the country’s growth, competitiveness, and sustainable development.

“By developing a comprehensive understanding of India’s critical mineral resources, this work empowers policymakers, researchers, and industry stakeholders to make informed decisions and drive the clean energy revolution,” the then Minister of Mines Prahlad Joshi said in the report.

National Critical Mineral Mission

The mission aims to reinforce India’s critical mineral value chain across all stages—from exploration and mining to beneficiation, processing, and recycling of end-of-life products—and ensure self-sufficiency in fulfilling the industrial demands for critical minerals.

Recognising the indispensable role of critical minerals in high-tech industries, clean energy, and defence, the Centre has undertaken several initiatives over the past two years to address challenges in the critical minerals sector.

Finance Minister Nirmala Sitharaman announced the setting up of the Critical Mineral Mission in the Union Budget 2024-25.

“The mission will intensify the exploration of critical minerals within the country and in its offshore areas. It aims to create a fast track regulatory approval process for critical mineral mining projects.

“Additionally, the mission will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings,” according to a government statement on Wednesday.

30 critical minerals

In November 2022, the Ministry of Mines constituted a seven-member committee to identify the list of minerals critical to our country.

Based on the three-stage assessment process and considering important parameters such as resource/reserve position in the country, production, import dependency, use for future technology/clean energy, requirement of fertilizer minerals in an agrarian economy, the committee identified 30 critical minerals, according to the report released in June 2023.

These are Antimony, Beryllium, Bismuth, Cobalt, Copper, Gallium, Germanium, Graphite, Hafnium, Indium, Lithium, Molybdenum, Niobium, Nickel, PGE, Phosphorous, Potash, REE, Rhenium, Silicon, Strontium, Tantalum, Tellurium, Tin, Titanium, Tungsten, Vanadium, Zirconium, Selenium and Cadmium.

The committee also recommended creation of a Centre of Excellence for Critical Minerals (CECM) in the Ministry of Mines.

The centre of excellence will periodically update the list of critical minerals for India and notify the critical mineral strategy from time to time and will execute a range of functions for the development of an effective value chain of critical minerals in the country, the report stated.

Ensuring uninterrupted supply

The bottom line is that the access to uninterrupted supply of these minerals is essential for a country to be a major player in the global economy and transition to a low carbon future.

The demand is expected to grow over the coming years. Therefore, secure and direct further investments are needed in the sector.

Also, a Minerals Security Partnership (MSP) exists to promote responsible growth in the sector.

The “transnational” association for securing stable supply of raw materials for their economies includes 14 countries and the EU—Australia, Canada, Estonia, Finland, France, Germany, India, Italy, Japan, Norway, South Korea, Sweden, the United Kingdom, the United States, and the European Union.

Securing India’s future

India is blessed with vast mineral reserves but only a part is being tapped as on date. This in itself is a reason and opportunity for global investors and partner countries.

According to officials, the mission aims to encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries. It also proposes creating a stockpile in the country.

It includes setting up of mineral processing parks and supporting recycling. It also promotes research in technologies and proposes setting up a Centre of Excellence on Critical Minerals.

Adopting a whole-of-government approach, the mission will work closely with relevant ministries, PSUs, private companies, and research institutions to achieve its objectives.

Steps so far

The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to increase exploration and mining of critical minerals.

Consequently, the Ministry of Mines auctioned 24 blocks of strategic minerals.

The Geological Survey of India (GSI) has undertaken 368 exploration projects for critical minerals over the past three years, with 195 projects currently underway in FY 2024-25.

For FY 2025-26, GSI is going to take up 227 projects for various critical minerals.

KABIL, a JV of the Ministry of Mines, has acquired an area of about 15703 hectares in the Catamarca province of Argentina, for exploration and mining of Lithium.

India also eliminated customs duties on the majority of critical minerals in the Union Budget 2024-25, to increase the availability of critical minerals in the country and encourage the industry to set up processing facilities.