Critical Minerals in the Indian Context

📘 First Report on Critical Minerals

Recently, India released its first official report titled:

“Critical Minerals for India”

This report was prepared by an Expert Committee under the Ministry of Mines, and it does three important things:

1. Identifies 30 minerals as “critical” for India’s needs.
2. Recommends setting up a Centre of Excellence for Critical Minerals (CECM).
3. Emphasizes the need to update this list regularly, as technology and strategic needs evolve.

Why These Minerals Are Critical for India

These minerals are vital because they are part of multiple strategic value chains. Let’s categorize these chains:

1. Clean Technologies

• These are technologies helping India transition to green energy.
• Examples:
  • Zero-emission vehicles
  • Wind turbines
  • Solar panels

2. Information and Communication Technologies

• Critical for digital India and modern defence systems.
• Examples:
  • Semiconductors
  • Telecommunication hardware

3. Advanced Manufacturing

• Needed for industries like aerospace, defence, and electronics.
• Examples:
  • Permanent magnets
  • Ceramics
  • Defence components

🔻 India’s Challenges in Harnessing Critical Minerals

India faces four major challenges in tapping into these minerals:

1. Domestic Supply Constraints

• Many minerals are not available in large quantities within India.
• Even when available, there are:
  • Technical issues in cost-effective extraction
  • Policy and regulatory hurdles

2. Infrastructure Gaps

• Inadequate infrastructure in areas like:
  • Mining
  • Processing
  • Refining
• This leads to:
  • High cost
  • Time delays
  • Environmental concerns

3. Dependence on Imports

• India is heavily reliant on China for critical minerals:
  • Imports 80% of lithium
  • Imports 85% of cobalt

✅ Fact:
China dominates global production of 16 critical minerals, including 60–70% of rare earth elements and cobalt.

4. Recycling and Waste Management

• As per UNEP, less than 1% of critical minerals in electronic waste are recycled.
• This means we are losing valuable minerals without reuse.

🛤️ Way Forward: What Should India Do?

Let’s now look at solutions in three broad areas:

1. Policy & Governance

• Develop a National Policy Framework for critical minerals.
• Include it in the Mines and Minerals (Development and Regulation) Act (MMDR Act).
• Ensure coordination between ministries and stakeholders.

2. Exploration & Production

• Tap into India’s geological potential.
• Encourage private investment.
• Explore offshore and deep-sea mining for minerals that are not available on land.

3. Supply Chain Diversification & Global Cooperation

• Avoid over-dependence on one country like China.
• Promote responsible sourcing.
• Join international alliances.

✅ Example:
India is part of the Mineral Security Cooperation with the USA and Australia, under the G7’s Sustainable Critical Minerals Alliance.

🏗️ Private Mining of Critical Minerals in India

India is now opening up this space for private players.

🔧 Steps Taken by the Government of India (GoI):

1. Amendment to MMDR Act, 1957
   • Private companies can now mine 6 critical minerals:
     • Lithium
     • Titanium
     • Beryllium
     • Zirconium
     • Niobium
     • Tantalum
   • These were earlier part of the Atomic Minerals List, meant only for public sector units.
2. First-Ever Auction of Critical Minerals
   • Private companies can now bid for mining blocks.
3. Royalty Rates Specified
   • Clear royalty rates fixed for:
     • Lithium
     • Niobium
     • Rare Earth Elements (REEs)

💡 Why Is the Government Doing This?

• To attract private capital and advanced mining technology.
• To boost domestic production and reduce imports.
• To support India’s green transition and e-mobility goals.

🧩 KABIL: Khanij Bidesh India Ltd.

To ensure a steady supply of critical minerals, especially those not available in India, the government has created a joint venture company:

👥 Participants:

Company	Stake (%)
NALCO (National Aluminium Company)	40%
HCL (Hindustan Copper Ltd.)	30%
MECL (Mineral Exploration Corp.)	30%

🎯 Objectives of KABIL:

1. Identify, explore, develop, and mine critical minerals in foreign countries.
2. Process and import them for Indian needs.
3. Build strategic partnerships with countries like:
   • Australia
   • Africa
   • South America

✅ Significance of These Initiatives

• Encourages private sector involvement.
• Brings in investment and technology.
• Reduces India’s import dependence.
• Supports India’s green growth, including:
  • Electric mobility
  • Renewable energy
  • Advanced manufacturing

🔚 Conclusion

To summarise:

India’s journey toward self-reliance in critical minerals is not just an economic goal, but a strategic necessity.

The combined strategy of:

• Policy reforms,
• Private sector involvement, and
• Global partnerships

…will determine whether India becomes a global manufacturing hub or remains dependent on imports in the age of green and digital revolution.