Launch of Exploration Licence for Critical and Deep-Seated Minerals by the States of Karnataka and Rajasthan – A First in the Country

March 8, 2024
Posted by: OptimizeIAS Team
Category: DPN Topics

Launch of Exploration Licence for Critical and Deep-Seated Minerals by the States of Karnataka and Rajasthan – A First in the Country

Subject: Geography

Section: Eco geography

Context:

Karnataka and Rajasthan launched an auction of Exploration Licence (EL) for critical and deep seated minerals on 06.03.2024.

More on news:

Exploration License blocks are being auctioned for the first time in the country.
Karnataka launched an auction of one block of Gold, Copper and Lithium and Rajasthan launched an auction of three blocks of Rare Earth Elements, Rare Metal and Potash minerals.
The Mines and Minerals (Development and Regulation) Act, 1957 was amended through the MMDR Amendment Act, 2023, to introduce a new mineral concession of Exploration Licence for 29 critical and deep-seated minerals to further boost exploration and mining of critical and deep-seated minerals in the country.

About the Critical Minerals:

Critical minerals refer to mineral resources, both primary and processed, which are essential inputs in the production process of an economy, and whose supplies are likely to be disrupted due to the risks of non-availability or unaffordable price spikes.
Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium are among the 22 assessed to be critical for India.
Critical and deep-seated minerals such as Cobalt, Lithium, Nickel, Gold, Silver, and Copper are difficult to explore and mine as compared to surficial or bulk minerals.
The exploration license granted through auction shall permit the licensee to undertake reconnaissance and prospecting operations for critical and deep-seated minerals mentioned in the newly inserted Seventh Schedule to the MMDR Act.

Minerals can broadly be divided into two categories:

(i) Surficial deposits: minerals such as iron ore, bauxite, limestone, dolomite, manganese, chrome, etc. These minerals are mostly found on surface or shallow depths, although some of them are also worked underground such as manganese and chromite in India and iron ore (Kiruna) in Sweden.

(ii) Deep-seated / concealed deposits: minerals such as gold, lead, zinc, copper, nickel, PGMs, diamond, REE etc. These are mostly deep-seated or concealed but are also worked open cast such as copper in Malanjkhand, gold (super-pit mine) in Western Australia.

Deep-seated minerals such as gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, diamonds, etc. are high value minerals. It is difficult and expensive to explore and mine these minerals as compared to surfacial/ bulk minerals. These minerals are extremely critical for new age electronics, transition to clean energy (solar, wind, electric vehicles) as well as in traditional sectors like infrastructure, defence, etc.