India proposes to open up deep-seated minerals, lithium mining to private players.

Paving the way for entry of private players into mining of lithium and other deep-seated minerals, the Centre has proposed amendments to The Mines and Mineral (Development and Regulation) Act, 1957.

The Mines and Mineral (Development and Regulation) Amendment Bill 2023 was introduced in the Lok Sabha by Parliamentary Affiars Minister Pralhad Joshi recently.

The Bill proposes to omit at least six previously mentioned atomic minerals from a list of 12 which cannot be commercially mined. The most important mineral to be taken out of this list through the Bill introduced in Parliament is lithium. Lithium, a non-ferrous, alkali metal, is a key component for electric vehicles, batteries and other energy storage solutions.

Being under the atomic minerals list, the mining and exploration was previously reserved for government entities.

The other five minerals are: beryl and other beryllium-bearing minerals; niobium (bearing minerals); titanium (bearing minerals and ore); tantalum; and zirconium bearing minerals and ores.

These minerals have various applications in space industry, electronics, communications, energy sector, electric batteries. According to the Bill, these minerals are also critical in net-zero emission commitment of India.

“Upon removal of these minerals from the said list, exploration and mining will be opened up for the private sector as well,” Joshi mentioned while introducing the Bill.

India has so far declared 5.9 million tonnes of lithium reserves in the Salal Hamima region, in Resai district, of Jammu and Kashmir.

Further exploration is also on in the region, Mines Ministry officials had said. Auction of these declared reserves is likely around December, and the Ministry is also in the process of working out the reserve price of lithium.

Incidentally, the country has been import-dependent on some of these key critical minerals like lithium, nickel, copper, cobalt, and others. In FY23, India’s lithium import bill was around ₹23,171 crore; and covered electric accumulators, including separators. In FY22, imports for lithium ion was ₹13,673.15 crore.

HBL