Cabinet allows commercial mining of lithium, other minerals: Report

The Union Cabinet has approved amendments to the Mines and Minerals (Development and Regulation) Act-1957 to allow the mining of lithium and other minerals, ET Now reported on Wednesday. Lithium is a crucial mineral for the manufacturing of electric vehicles and solar panels. 

The amendment proposed to insert the provision of an exploration licence in the law which will be granted through the auction for undertaking reconnaissance and prospecting operations, an official said as per the report. As per the changes, companies will be allowed to suggest areas they want to explore and eventually mine in India. This, the report said, is a deviation from the usual practice where blocks or mines are defined by the government to be taken up for auction.

This comes months after the Geological Survey of India (GSI) found the country's first lithium reserve in the Salal-Haimana area of Reasi District of Jammu and Kashmir.  "Lithium falls in the critical resource category which was not earlier available in India and we were dependent for its 100 percent import. The G3 (advanced) study of the GSI shows the presence of best quality lithium in abundant quantity in the foothills of Mata Vaishno Devi shrine at Salal village (Reasi),” J-K Mining Amit Secretary Sharma told PTI in March.

The mining secretary also said that the Union territory was in the process to auction the lithium reserves but it was too early to talk about the timeline. Asked when the auction of lithium reserves, found in J&K, will happen, Sharma said, "It is too early. I know we are all ambitious about it, but it is too early to talk about it. But yes, we are in a process and maybe over the next few months or years we would be able to reach there with everybody’s support."