Lok Sabha Question No. 1558 (UNSTARRED), answered on 2024-12-04
Subject: Domestic Mining of Critical Minerals
Ministry: MINES
Asked by: Smt. Bharti Pardhi, Shri Arvind Ganpat Sawant, Shri Shrirang Appa Chandu Barne, Shri Dharmendra Yadav

## GOVERNMENT OF INDIA MINISTRY OF MINES

## LOK SABHA

## UNSTARRED QUESTION NO. 1558

ANSWERED ON 04.12.2024

## DOMESTIC MINING OF CRITICAL MINERALS

†1558. SHRI DHARMENDRA YADAV: SMT. BHARTI PARDHI: SHRI ARVIND GANPAT SAWANT: SHRI SHRIRANG APPA CHANDU BARNE:

Will the Minister of MINES be pleased to state:

- (a) whether the country is highly dependent on import of critical minerals in despite having the reserves of several critical minerals which is causing threat to industrial and energy security;
- (b) if so, the reaction of the Government thereto;
- (c)  whether  the Government has signed any agreement with the International Energy Agency (IEA) to strengthen cooperation in the critical minerals sector and if so, the details and the objectives thereof;
- (d)  the  manner  in  which  it  is  likely  to  enable  the  country  to  streamline  its  policies, regulations and investment strategies in critical minerals sector;
- (e) whether the production has started in domestic mines;
- (f) if so, the State-wise details thereof particularly in Uttar Pradesh and Madhya Pradesh; and
- (g) if not, the time by which production is likely to be started in domestic mines?

## ANSWER

## THE MINISTER OF COAL AND MINES (SHRI G. KISHAN REDDY)

(a) & (b): Criticality of minerals is on account of their import reliance, besides economic significance. There are nil or limited reserves and production of most critical minerals in the country, on account of which there is full or partial import reliance in them. However, there is no threat to industrial and energy security of the country, as the industrial and energy sector is very broad-based and depend on a wide array of raw materials and products other than critical minerals, in which India is self-sufficient or has robust supply chains.  Critical  minerals  are  required  more  in  energy  transition  systems  like  electric vehicles,  battery  storage,  solar  and  wind.  The  Government  has, inter-alia ,  taken  the following steps to enhance domestic capacity and build supply chain resilience in critical minerals:

-  Auction of critical and strategic mineral blocks by the Central Government: 24 blocks have been successfully auctioned so far. Moreover, royalty rates of critical minerals have been rationalized to encourage greater participation in auctions.
-  Under the aegis of Ministry of Mines, a joint venture company named Khanij Bidesh India Ltd. (KABIL) has been incorporated to acquire critical mineral assets overseas.
-  National Mineral Exploration Trust (NMET)  has  been  funding  critical  mineral exploration projects through various exploration agencies.
-  The Government has announced in the Union Budget 2024-25 the setting up of a Critical  Mineral  Mission  for  a  harmonized  approach  in  areas  including  domestic production, recycling, overseas acquisition of critical mineral assets, and research & development (R&D).
-  As  part  of  the  Union  Budget  2024-25  announcements,  import  duties  have  been eliminated for 25 critical minerals to support their easy evacuation to the country and to encourage domestic processing.
-  A framework is being designed to encourage the Indian industry to develop recycling capacity  in  the  country  for  the  separation  and  production  of  critical  minerals  from secondary sources through recycling.
-  Under  the  Science  &  Technology  (S&T)  programme  of  the  Ministry  of  Mines,  a component named PRISM (Promotion of Research and Innovation in Start-ups and MSMEs - Micro, Small and Medium Enterprises) has been launched in November 2023 to fund research and innovation in Start-ups and MSMEs working in the field of mining and mineral sector, and to bridge the gap between R&D and commercialization. During 2024-25 (till 28.11.2024), 11 projects of R&D and PRISM related to critical minerals have been approved for a total funding of Rs. 5.79 crore.

(c) & (d): Yes, Sir. Government of India has signed a Memorandum of Understanding (MoU) with International Energy Agency (IEA) on 13.11.2024 to strengthen collaboration in  the  critical  minerals  sector.  The  objective  is  to  promote  co-operation  in  the  areas identified by mutual consent on critical minerals taking into the account the expertise and experience of the parties. With its extensive research and analysis, the IEA can provide India with access to reliable data, analysis and policy recommendations in the critical mineral sector and offer valuable insights and recommendations to support India's efforts towards  energy  security.  This  collaboration  will  help  India  to  streamline  its  policies, regulations, and investment strategies in the critical mineral sector by identifying gaps, optimizing investment priorities, and aligning with global standards and best practices.

(e), (f) & (g): There is production of some critical minerals happening in domestic mines. Details of State-wise production of critical minerals is as under:

| Critical mineral   | State          | Production Quantity 2023-24 (ton)   |
|--------------------|----------------|-------------------------------------|
| Graphite           | Chhattisgarh   | 1,007                               |
| Graphite           | Jharkhand      | 20,756                              |
| Graphite           | Odisha         | 68,054                              |
| Graphite           | Tamil Nadu     | 79,263                              |
| Phosphorite        | Madhya Pradesh | 2,36,964                            |
| Phosphorite        | Rajasthan      | 13,20,819                           |
| Tin Concentrate    | Chhattisgarh   | 22                                  |

Moreover,  there  are  49  auctioned  critical  &  strategic  mineral  blocks  (including  24  by Central Government). The time-frame for operationalization of auctioned blocks is as per applicable rules under the Mineral (Auction) Rules, 2015.

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