Govt to open mining of lithium, rare minerals to private sector

July 27, 2023
Posted by: OptimizeIAS Team
Category: DPN Topics

Govt to open mining of lithium, rare minerals to private sector

Subject: Geography

Section: Economic geography

Context: Centre proposes amendments to The Mines and Mineral (Development and Regulation) Act, 1957 to enable entry of private players into mining of lithium and other deep-seated minerals.

Key Points:

The Bill proposes to omit at least 6 out of the 12 minerals from the atomic minerals list 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 the space industry, electronics, communications, energy sector, and electric batteries. According to the Bill, these minerals are also critical in the net-zero emission commitment of India.
The amendment will pave the way for private players to mine and empower the government to auction their reserves going ahead.

What is the Atomic mineral list?

Atomic minerals include mainly minerals containing uranium, thorium, rare metals, viz. niobium, tantalum, lithium, beryllium, titanium, zirconium, and rare earth elements (REEs) containing uranium and thorium as well as beach sand minerals.
In India, these minerals are specified in Part B of the First Schedule to the Mines and Minerals (Development and Regulation) Act, 1957 (MMDR Act),
A few of these minerals containing uranium, thorium, niobium, tantalum and beryllium are included in the list of ‘Prescribed Substances’ under the Atomic Energy Act, 1962.

Overview of the existing Atomic Mineral exploration and mining system.

Until now the government has prohibited mining of atomic minerals by private entities and granted operating rights to only state-run companies to “safeguard” strategic interest of the country.
Atomic Minerals Directorate for Exploration and Research (AMD), a constituent unit of Department of Atomic Energy (DAE), has the mandate to identify, evaluate and augment mineral resources contained in the Part B of the First Schedule of the MMDR Act.
In the front end, the Atomic Minerals Directorate for Exploration and Research (AMD) shoulders the responsibility for survey, exploration, and augmentation of atomic mineral resources.
Under the MMDR Act, 1957, GoI has promulgated Atomic Minerals Concession Rules
(AMCR), 2016 (later amended in 2019) for mineral concession and regulation with respect to atomic minerals above the notified threshold values.
At present, uranium deposits established by AMD are mined by Uranium Corporation of India Limited (UCIL), a PSU of DAE.
In respect of beach sand minerals, the mining operations are being carried out by both PSUs and private entrepreneurs.
In respect of other atomic minerals like beryl, columbite, tantalite, lepidolite etc., no specific mining operations are being carried out except their recovery as by-products incidental to prospecting operations.