Critical mineral mission guidelines to come out in next 6 months

The guidelines to operationalise Rs 34,300 crore National Critical Mineral Mission is set to be rolled out in next six months to intensify the exploration of critical minerals within the country and in its offshore areas.

Recognising the indispensable role of critical minerals in high-tech industries, clean energy, and defence, the mission announced in January this year aims to create a fast-track regulatory approval process for critical mineral mining projects and will offer financial incentives for critical mineral exploration and promote the recovery of these minerals from overburden and tailings.

“The mission encompasses all stages of the value chain, including mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. The detailed guidelines are being prepared and will be out in the next 6 months,” Vivek Kumar Bajpai, Joint Secretary, Ministry of Mines, said addressing a conference on critical mineral organised by FICCI.

The government has been taking inputs from various stakeholders as part of the mission document to come out with comprehensive guidelines.

Critical minerals are considered the new oil with their growing demand in many high demands manufactured products across sectors. The global push for decarbonisation, sustainability, technological advancements, urbanisation and resource nationalism is accelerating the demand for critical minerals.

The mission aims to encourage Indian PSUs and private sector companies to acquire critical mineral assets abroad and enhance trade with resource-rich countries. Globally, the combined market size of key energy transition minerals is projected to exceed $770 billion by 2040.

India and Argentina on February 19 announced to expand their collaboration in exploration and resource development of critical minerals, especially lithium with the Mineral Exploration and Consultancy Limited (MECL), a PSU under the Ministry of Mines, and the Provincial Government of Catamarca, Argentina, to enhance India’s access to lithium, a crucial mineral for electric vehicles (EVs) and renewable energy.

A report by the FICCI released on February 21 said that India has deposits of critical minerals across various regions, partially meeting the demand for minerals such as tin, rare earth elements, copper, silicon, and titanium. However, domestic production is insufficient to meet the growing demand.

India remains heavily dependent on imports, with 100% reliance on foreign sources for minerals such as cobalt, beryllium, bismuth, indium, lithium, niobium, rhenium, strontium, tantalum and tungsten.