Lok Sabha Question No. 1810 (UNSTARRED), answered on 2023-12-13
Subject: Strategy to Secure Essential Minerals
Ministry: MINES
Asked by: Dharmendra Kumar Kashyap, Vivek Narayan Shejwalkar, Sudarshan Bhagat, Sunil Kumar Singh

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1810

ANSWERED ON 13.12.2023

## STRATEGY TO SECURE ESSENTIAL MINERALS

†1810. SHRI DHARMENDRA KASHYAP: SHRI VIVEK NARAYAN SHEJWALKAR: SHRI SUDARSHAN BHAGAT: SHRI SUNIL KUMAR SINGH:

Will the Minister of MINES be pleased to state:

- (a) whether the Government is formulating any action plan to conserve the essential minerals for advanced technology sectors; and
- (b) if so, the details of the reforms initiated in the sector?

## ANSWER

THE MINISTER OF MINES, COAL AND PARLIAMENTARY AFFAIRS (SHRI PRALHAD JOSHI)

(a) & (b): Yes, Sir. 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 said Act which includes minerals such as Cobalt, Graphite, Lithium, Nickel, Tantalum, Titanium etc. The objective of the said amendment is to increase exploration and mining of critical minerals and ensure selfsufficiency in supply of critical minerals which are essential for the advancement of many  sectors,  including  high-tech  electronics,  telecommunications,  transport,  and defence. They are also vital to power the 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  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 'AtmaNirbhar Bharat' and contribute towards increased economic growth.

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 provide a steady supply of these minerals, thus reducing our reliance on imports and ensuring a more secure and resilient supply chain.

Besides  auction  of  critical  minerals  by  the  Central  Government,  in  order  to further  boost  exploration  of  critical  and  deep-seated  minerals,  a  new  mineral concession namely, exploration licence has been introduced for 29 critical and deepseated minerals. Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, Copper are difficult to explore and mine as compared to surfacial or bulk minerals.  The  country  is  mostly  dependent  on  imports  of  these  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 acquisition, processing and interpretation of exploration data and leverage the risk-taking ability in discovery of deep-seated mineral deposits through adoption of expertise and latest technologies.

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