Govt opens six more critical minerals for private sector

The Union government of India has expanded opportunities for private players in the mining sector by adding six critical minerals - beryllium, lithium, niobium, titanium, tantalum, and zirconium - for exploration and mining. This move follows the recent opening of fifty-one mines with critical minerals for bidding by private companies.

To enable private sector participation in exploration and production of deep-seated and critical minerals, the Mines and Minerals (Development and Regulation Amendment) Bill, 2023 is being introduced in Parliament. The bill empowers the central government to exclusively auction mining leases and composite licenses for certain critical minerals.

The amendments aim to encourage and incentivize private sector involvement in mineral exploration, particularly for critical and deep-seated minerals crucial for economic development and national security. By auctioning the blocks explored by the license holder within a prescribed timeline, state governments can expect to generate better revenue.

The move towards exploring critical minerals gains significance as India commits to energy transition and achieving net-zero emissions by 2070. Currently, the share of deep-seated minerals like copper, zinc, lead, gold, silver, diamond, nickel, cobalt, and platinum group minerals in India's total mineral production is insignificant, leading to heavy reliance on imports to fulfill the country's requirements.