Cabinet Approves $1.88 billion National Critical Mineral Mission

31 Jan 2025 CW Team

The Union Cabinet has approved the National Critical Mineral Mission with an expenditure of $1.88 billion. The mission will cover mineral exploration, mining, beneficiation, processing, and recovery from end-of-life products. It will focus on exploring critical minerals within the country and offshore areas and aims to establish a regulatory approval process for critical mineral mining projects. Critical minerals are essential in developing green energy technologies, defense, and high-tech industries. It will also provide financial incentives for critical mineral exploration and support efforts to recover these minerals from overburden and tailings. The initiative aims to facilitate the acquisition of critical mineral assets by Indian public sector undertakings and overseas private companies and strengthen trade with resource-rich nations. It also targets developing a critical materials stockpile within India. The mission will support establishing mineral processing parks and encourage the recycling of critical minerals. It will promote critical mineral technologies research and propose creating a Centre of Excellence on Critical Minerals. As part of these efforts, Khanij Bidesh India, a joint venture under the Ministry of Mines, acquired approximately 15,703 hectares in Argentina’s Catamarca province for lithium exploration and mining. Amendments to the Mines and Minerals (Development and Regulation) Act, 1957, have facilitated increased exploration and mining of critical minerals. In November 2024, the Ministry of Mines concluded the e-auction of two more mineral blocks under Tranche IV. Ponchi Graphite Block in Jharkhand was awarded to Satguru Mining Private with a final price offer of 752.05%. Vadakhol-Asoli Block in Maharashtra was awarded to Assam Mineral Development Corporation with a final price offer of 7.05%. The auction followed the November 7, 2024, announcement of eight preferred bidders, bringing the total number of successful blocks in this tranche to ten. Tranche IV of the auctions, launched on June 24, 2024, offered 21 mineral blocks across various states. After an evaluation, ten blocks progressed to the second round of e-auctions, with eight blocks successfully auctioned.

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