Lok Sabha Question No. 1734 (UNSTARRED), answered on 2023-12-13
Subject: Critical Minerals
Ministry: MINES
Asked by: Vishnu Dutt Sharma

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA UNSTARRED QUESTION NO. 1734

ANSWERED ON 13.12.2023

## CRITICAL MINERALS

1734. SHRI VISHNU DATT SHARMA:

Will the Minister of MINES be pleased to state:

- (a) whether  India  lags  far  behind  China  (most  dominant  player  of  the world)  in  refining  and  processing  capacity  of  even  those  critical  minerals that are not being mined indigenously;
- (b) if  so,  whether  the  Government  is  actively  taking  measures  to  go beyond  just  signed  minerals  security  partnership,  to  build  critical  mineral bilateral partnerships with key countries such as Japan, US and Australia;
- (c) whether  India  is  one  among  the  few  countries  in  the  world  where private sector participation in exploration and extraction of critical minerals is miniscule due to over-regulations;
- (d) if so, whether the Government is taking measures to come out with a critical mineral policy for India's energy security; and
- (e) if so, the details thereof and if not, the reasons therefor?

## ANSWER

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

(a)  to  (e): Though  India  has  not  been  a  dominant  player  in  the  global supply chain for various critical minerals like Lithium, cobalt etc., India  has been  working  to  strengthen  its  position  in  the  mining  and  processing  of critical minerals.

The Ministry of Mines has actively engaged with resource-rich countries for access to critical minerals as well as domestic exploration and auction of critical mineral blocks.

A joint  venture  company  namely Khanij Bidesh India Ltd. ( KABIL )  has been  incorporated  with  the  equity  contribution  from  three  Central  Public Sector  Enterprises  namely,  National  Aluminium  Company  Ltd,  Hindustan Copper Ltd and Mineral Exploration and Consultancy Ltd with the objective to  acquire  critical  mineral  assets  abroad  to  ensure  consistent  supply of critical and strategic minerals to Indian domestic market.

KABIL is presently  exploring  opportunities for  acquisition  of  overseas critical  minerals  assets  like  Lithium  (Li)  and  Cobalt  (Co)  in  Australia, Argentina and  Chile for securing long term supply of these critical minerals.

The Ministry  of  Mines  has  joined  Mineral  Security  Partnership  ( MSP ) l ed  by  United  States  of  America.  This  partnership  aims  to  enhance cooperation in securing the supply chain of critical minerals for  the member countries by facilitating investment in identified blocks of  these minerals in resource rich countries.

Considering  that  at  present  the  availability  of  the  critical  minerals  or technologies  for  their  extraction  and  processing  are  concentrated  in  a  f e w 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 MMDR Act  which  includes  minerals  such  as  Cobalt,  Graphite,  Lithium,  Nickel, Tantalum,  Titanium  etc.  The  objective  of  this  amendment  is  to  increase exploration  and  mining  of  critical  minerals  and  ensure  self-sufficiency  in supply of critical minerals which are essential for the advancement of many sectors, including high-tech electronics, telecommunications, transport, defence  etc.  These  are  also  vital  to  power  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 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  create  a  steady  supply  of these minerals, thus reducing our reliance on imports and ensuring a more secure and resilient supply chain. The details of the blocks are at Annexure .

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  'Atma  Nirbhar  Bharat'  and  contribute  towards  increased economic growth.

Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, and Copper are difficult to explore and mine as compared to surfacial or bulk minerals. The country is mostly dependent on imports of these minerals. In order  to  boost  the exploration  for  these  minerals,  a new  mineral concession namely Exploration  Licence  has  been  introduced  for  29  critical and  deep-seated  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 the field of exploration and mining sector as well as leverage the  risk-taking  ability  in  discovery  of  deep-seated  mineral  deposits through adoption of expertise and latest technologies.

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The details of Critical Mineral Blocks which have been notified for auction  are as detailed below:

|   Sl No | Block Name                                                            | State                 | Mineral                                           | ML/ CL   |
|---------|-----------------------------------------------------------------------|-----------------------|---------------------------------------------------|----------|
|       1 | Chutia-Nauhatta Glauconite Block                                      | Bihar                 | Glauconite                                        | CL       |
|       2 | Pipradih-Bhurwa Glauconite Block                                      | Bihar                 | Glauconite                                        | CL       |
|       3 | Genjana Nickel, Chromium and PGE Block                                | Bihar                 | Nickel,Chromium and PGE                           | CL       |
|       4 | Kundol Nickel and Chromium Block                                      | Gujarat               | Nickel& Chromium                                  | CL       |
|       5 | Muskaniya-Gareriatola-Barwari Potash Block                            | Jharkhand             | Potash                                            | CL       |
|       6 | Dudhiasol East Nickel and Copper Block                                | Odisha                | Nickel and Copper                                 | ML       |
|       7 | Babja Graphite and Manganese Block                                    | Odisha                | Graphite and Manganese                            | ML       |
|       8 | Biarapalli Graphite and Manganese Block                               | Odisha                | Graphite and Manganese                            | ML       |
|       9 | Akharkata Graphite Block                                              | Odisha                | Graphite                                          | CL       |
|      10 | Vellakal Central (Segment-A) Molybdenum Block                         | Tamil Nadu            | Molybdenum                                        | CL       |
|      11 | Nochchipatti Molybednum Block                                         | Tamil Nadu            | Molybdenum                                        | CL       |
|      12 | Velampatti North A & B Molybdenum Block                               | Tamil Nadu            | Molybdenum                                        | CL       |
|      13 | Kurunjakulam Graphite Block                                           | Tamil Nadu            | Graphite                                          | CL       |
|      14 | Iluppakudi Graphite Block                                             | Tamil Nadu            | Graphite                                          | CL       |
|      15 | Mannadipatti Central Molybdenum Block                                 | Tamil Nadu            | Molybdenum                                        | CL       |
|      16 | Marudipatti (Central) Molybdenum Block                                | Tamil Nadu            | Molybdenum                                        | ML       |
|      17 | Kurchha Glauconite Block                                              | Uttar Pradesh         | Glauconite                                        | CL       |
|      18 | Pahadi Kalan - Gora Kalan Phosphorite Block                           | Uttar Pradesh         | Phosphorite                                       | CL       |
|      19 | Salal-Haimna Lithium, Titanium and Bauxite (Aluminous Laterite) Block | UT: Jammu and Kashmir | Lithium, Titanium and Bauxite(Aluminous Laterite) | CL       |
|      20 | Katghora Lithium and REE Block                                        | Chhattisgarh          | Lithium and REE                                   | CL       |

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