Lok Sabha Question No. 2105 (UNSTARRED), answered on 2023-08-02
Subject: Imports of Critical Minerals
Ministry: MINES
Asked by: Sangeeta Kumari Singh Deo, K. Subbarayan, Bhola Singh, Sukanta Majumdar, Rajveer (Raju Bhaiya) Singh, Vinod Kumar Sonkar

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 2105

ANSWERED ON 02.08.2023

## IMPORTS OF CRITICAL MINERALS

2105.  SHRIMATI SANGEETA KUMARI SINGH DEO: SHRI SUBBARAYAN K.: SHRI BHOLA SINGH: DR. SUKANTA MAJUMDAR: SHRI RAJVEER SINGH (RAJU BHAIYA): SHRI VINOD KUMAR SONKAR:

Will the Minister of MINES be pleased to state:

- (a) whether India has been depending on imports for critical minerals such as lithium, nickel, copper and cobalt;
- (b) if  so,  whether  the  Government  has  approved  amendments  to  the  Mines  and Minerals (Development and Regulation) Act, 1957, to allow commercial mining of lithium and other critical minerals;
- (c) if so, the details thereof;
- (d) whether the Ministry is also in the process of working out the reserve  price for lithium, if so, the details thereof;
- (e) the time by which auction of these declared reserves is likely to be held; and
- (f) the other steps being taken by the Government for becoming self-reliant in critical minerals?

## ANSWER

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

(a): Yes,  Sir.  India  has  been  depending  on  imports  for  critical  minerals  such  as lithium, nickel, copper, and cobalt. The details of import of Critical Minerals in 2022-23 are as under:

|    |                           |            | Import (2022-23)   | Import (2022-23)      |                  |
|----|---------------------------|------------|--------------------|-----------------------|------------------|
| #  | Critical mineral          | HS Code(s) | Quantity Tonne     | in Value in Rs. Crore | %import reliance |
| 1  | Cobalt                    | 2605       | 0.25               | 0.18                  | 100%             |
|    |                           | 81052020   | 171.36             | 72.02                 |                  |
| 2  | Copper ore & concentrates | 2603       | 11,78,919.88       | 27,374.43             | 93%              |
| 3  | Lithium                   | 28252000   | 1,119.78           | 552.53                | 100%             |
|    |                           | 28369100   | 1,025.03           | 179.01                |                  |
| 4  | Nickel                    | 2604       | 20                 | 0.04                  | 100%             |
|    |                           | 7502       | 32,298.21          | 6,549.34              |                  |

Source: Department of Commerce

(b) &  (c): Ministry of  Mines  has  proposed  to  amend  the  Mines  and  Minerals (Development and Regulation) Act, 1957 to introduce exploration licence in the Act for deep-seated and critical minerals such as gold, silver, copper, zinc, lead, nickel, cobalt, platinum  group  of  minerals,  diamonds,  etc.  which  are  mentioned  in  the  proposed  7th schedule of the MMDR Act.  Exploration licence granted through auction shall permit the licencee to undertake reconnaissance and prospecting operations for critical and deepseated  minerals  mentioned  in  the  new  Seventh  Schedule  to  the  Act.  The  blocks explored by the Exploration Licence holder would be auctioned for mining lease within the  prescribed  timeline.    The  exploration  agency  shall  be  entitled  to  a  share  in  the auction premium payable by the mining lease holder. The proposed exploration licence would facilitate, encourage and incentivize private sector participation in all spheres of mineral exploration for critical and deep seated minerals.

The  Ministry  has  further  proposed  to  omit  certain  minerals  including  Lithium  bearing minerals from the list of atomic minerals specified in Part-B of the First Schedule to the Act. These minerals have various applications in space industry, electronics, communications, energy sector, electric batteries and are critical in net-zero emission commitment of India. Due to their inclusion in the list of atomic minerals, their mining and  exploration  is  reserved  for  government  entities.  Upon  removal  of  these  minerals from Part-B of first schedule, exploration and mining of these minerals will be opened up for the private sector as well. As a result, exploration and mining of these minerals is expected to increase significantly in the country.

(d) & (e): Yes, Sir. Ministry of Mines has invited comments / suggestions on 19.05.2023 from  the  general  public,  State  Governments  and  Union  Territories,  mining  industry stakeholders,  industry  associations,  and  other  persons  and  entities  concerned  on  the methodology for calculation of Average Sale Price and Value of Estimated Resources of lithium blocks to be auctioned.

(f): Ministry of Mines has recently released a list of 30 minerals that are critical to our country.  Identification  of  these  critical  minerals  will  help  to  strategically  prioritize  the development of the country's mineral resources. Over the last few years, the Geological Survey of India (GSI) has shifted its thrust from bulk commodities to deep-seated and critical  minerals.  From  FS  2015-16  to  FS  2021-22,  GSI  executed  503  mineral exploration projects on deep-seated and critical minerals. In FS 2022-23, 123 projects have been taken up in response to the increased thrust on exploration of deep-seated minerals. In the current field season 2023-24, GSI has taken up 122 exploration projects on deep seated and critical minerals.

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