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Cabinet Approves Rs163 Billion National Critical Minerals Mission to Boost Exploration and Processing

In a significant move to secure India’s future in green energy, defense, and high-tech industries, the Union Cabinet has approved the National Critical Minerals Mission with an initial expenditure of Rs163 billion. The mission is expected to attract additional investments of Rs180 billion from public sector undertakings (PSUs) and other entities. The initiative aims to enhance the exploration, mining, beneficiation, and processing of critical minerals, which are vital for developing advanced technologies and renewable energy solutions.

Key Objectives of the Mission:

• Exploration and Mining: Focus on identifying and extracting critical minerals within India and offshore areas.
• Beneficiation and Processing: Develop technologies for refining and processing critical minerals.
• Recycling and Recovery: Promote the recovery of critical minerals from end-of-life products, overburden, and tailings.
• Regulatory Framework: Establish a streamlined approval process for critical mineral mining projects.
• Global Collaboration: Facilitate the acquisition of critical mineral assets overseas and strengthen trade ties with resource-rich nations.
• Stockpiling: Develop a strategic stockpile of critical materials within India.
• Research and Development: Promote research on critical mineral technologies and propose the creation of a Centre of Excellence on Critical Minerals.

The mission will provide financial incentives for critical mineral exploration and support the establishment of mineral processing parks. It will also encourage the recycling of critical minerals to ensure sustainable utilization of resources.

As part of the mission’s efforts, Khanij Bidesh India, a joint venture under the Ministry of Mines, has acquired approximately 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining. This move underscores India’s commitment to securing critical mineral resources globally.

Additionally, amendments to the Mines and Minerals (Development and Regulation) Act, 1957, have been introduced to facilitate increased exploration and mining of critical minerals. These changes aim to create a more conducive environment for investment and innovation in the sector.

Recent Mineral Block Auctions:

• Ponchi Graphite Block (Jharkhand): Awarded to Satguru Mining Private with a final price offer of 752.05%.
• Vadakhol-Asoli Block (Maharashtra): Awarded to Assam Mineral Development Corporation with a final price offer of 7.05%.

These auctions followed the November 7, 2024, announcement of eight preferred bidders, bringing the total number of successfully auctioned blocks in Tranche IV to ten. Launched on June 24, 2024, Tranche IV offered 21 mineral blocks across various states, with ten blocks progressing to the second round of e-auctions.

Critical minerals such as lithium, cobalt, and rare earth elements are essential for manufacturing batteries, solar panels, wind turbines, and other green energy technologies. They are also crucial for defense applications and high-tech industries like electronics and aerospace. By securing a stable supply of these minerals, India aims to reduce its dependency on imports and strengthen its position in the global supply chain.

The National Critical Minerals Mission is a cornerstone of India’s strategy to achieve self-reliance in critical resources, support its energy transition goals, and foster economic growth through technological innovation.