Lok Sabha Question No. 1783 (UNSTARRED), answered on 2023-12-13
Subject: Nickel
Ministry: MINES
Asked by: Amar Singh

1783. DR. AMAR SINGH:

Will the Minister of MINES be pleased to state:

(a) whether the Government has taken note of the fact that the country is not selfsufficient in nickel;

- (b) if so, the details of the steps that are proposed to be taken by the Government to increase the country's domestic supply keeping in mind that the Indian Ocean seabed contains all the nickel to meet India's domestic demand; and
- (c) the efforts made/being made by the Government to make the country a leader in critical minerals globally?

## ANSWER

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

(a): Yes, Sir. The country is not self-sufficient in the production of nickel.

(b) & (c): In order to boost the domestic supply of critical minerals such as nickel, the Central  Government  has  amended  the  Mines  and  Minerals  (Development  and Regulation)  Act,  1957  through  the  MMDR  Amendment  Act,  2023  with  effect  from 17.08.2023.

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 nickel. The objective  of  the  said  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, 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  making  an  'AtmaNirbhar  Bharat'  and  contribute  towards  increased  economic growth.

The  Central  Government  has  launched  the  first  tranche  of  e-auction  of  20 mineral blocks of critical and strategic minerals on 29.11.2023 which includes three blocks of nickel and associated minerals .

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

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 1783

ANSWERED ON 13.12.2023

## NICKEL

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. Further, the Offshore Areas Mineral (Development and Regulation) Act, 2002 has  been  amended  through  OAMDR  (Amendment)  Act,  2023  with  effect  from 17.08.2023 vide which auction regime has been introduced as the method of allocation of operating rights in the offshore areas to enable early allocation of operating rights through  a  transparent  and  non-discretionary  process.  Also,  provisions  have  been made  for  establishment  of  a  trust  for  mining  affected  persons  and  encouraging exploration, removed process of discretionary renewals and provided uniform lease period of fifty years, introduced composite licence, provided for area limits and easy transfer of composite licence or production lease.

The  said  amendment  aims  to  harness  and  utilize  the  mineral  potential  in offshore areas including nickel.

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