Govt opens up mining of new minerals to reduce imports dependence

The government opened up mining of a new group of minerals as part of its strategic plan to ramp up domestic mining and reduce dependence on imports. India plans to attain self-sufficiency as the Russian-Ukraine war affects mineral imports and expects to increase fertiliser and food subsidies allocated in the Budget. The Cabinet approved an amendment in the Mines and Minerals Development and Regulation Act 1957. It specifies the rate of royalty of certain minerals, including glauconite, potash, emerald, the platinum group of metals (PGM), andalusite, sillimanite and molybdenum. The rate of royalty is at the same level for andalusite, sillimanite and kyanite. The amendment in the Act will result in the auction of these mineral blocks for the first time in India and expects to generate opportunities for the mining and manufacturing sector. It will also reduce imports of potash fertilisers and other minerals, ensure the availability of minerals for downstream industries and support agriculture. Glauconite and potash are being used as fertilisers in agriculture. The PGM, andalusite and molybdenum are high-value minerals used across different industries. According to an official statement, this approval will result in import substitution of many crucial minerals, saving valuable forex reserves, and reducing foreign dependence through domestic production. Many state governments have identified such mineral blocks for auction. The rate of royalty for these minerals was not separated, making it inappropriate to give impetus to mining these minerals. The Act was amended in 2021 to give impetus to the mineral industry. The government has boosted the auction of mineral blocks. In the past 4-5 years, central agencies, including the Geological Survey of India and the Mineral Exploration Corporation, have explored several blocks of minerals which are not mined in India. So far, over 145 mineral blocks have been auctioned successfully in the country. Moreover, over 146 blocks have been put up for auction in FY 2021-22, from which 34 blocks have been auctioned successfully. The specification of royalty and average sale price (ASP) for minerals like glauconite, potash, emerald, PGM, andalusite and molybdenum will increase the number of mineral blocks up for auction. Image Source Also read: Mathur of Tata Hitachi: Mining policy revival offers promise for new players