India Aims to Become Global Hub for Critical Minerals with National Mission Initiative

Union Minister G Kishan Reddy expressed optimism about India becoming a global hub for critical minerals. He announced the upcoming launch of the National Critical Mineral Mission (CMM) to boost domestic production, reduce reliance on imports, and promote offshore mining auctions. This announcement was made at the 3rd National Mining Ministers Conference in Konark, attended by Odisha Chief Minister Mohan Charan Majhi and other dignitaries.

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Reddy highlighted India's pioneering efforts in offshore mineral auctions, a first in 75 years, aimed at enhancing self-reliance. He emphasised the need for states to expedite exploration and auctioning of critical minerals. The CMM is awaiting Union Cabinet approval, following its announcement by the Union Finance Minister in her budget speech. Import duties on critical minerals have been eliminated.

Focus on Critical Minerals

Critical minerals like lithium, cobalt, copper, nickel, and rare earth elements are essential for manufacturing defence equipment and key technologies. Reddy stated that India has already established a presence on the global platform for these minerals. He encouraged collaboration between public and private sectors in mining activities, urging states to involve private parties transparently.

India has launched the auction of 48 critical mineral blocks, with 24 successfully allotted. The fifth tranche offering of 15 blocks was launched recently, receiving enthusiastic participation from industries. Reddy stressed the importance of maintaining this momentum to achieve self-sufficiency and reduce import dependence.

Offshore Mining Potential

Reddy acknowledged the potential of offshore mining, marking India's first offshore mineral auction as a significant step towards self-sufficiency. He urged states to establish State Mineral Exploration Trusts similar to the National Mineral Exploration Trust to enhance resource exploration. The Centre will provide assistance for these trusts, allowing states to utilise royalty funds.

The minister also called for expedited mine closure activities and suggested repurposing abandoned mines for solar energy generation. This approach aims to develop land left unused after mining operations.

Odisha Chief Minister Mohan Charan Majhi highlighted Odisha's significant contribution to India's industrial and economic growth due to its vast mineral resources. He emphasised the conference's role as a platform for knowledge-sharing and policy deliberation to ensure sustainable mining practices.

Majhi stated that Odisha is poised to play a crucial role in India's transformation under the Purvodaya Mission, which seeks to unlock economic potential and build a prosperous nation. Both Reddy and Majhi launched the Mining Tenement System (MTS) at the conference, a digital platform designed to streamline processes and enhance transparency in mineral resource management.

They also awarded sanction letters to 11 startups selected for funding under the S&T-PRISM component of the Ministry of Mines' science and technology programme. These startups will focus on indigenous technologies like high-grade silica production and AI-enhanced mining operations.

Rajasthan was recognised for conducting the highest number of auctions in the 2023-24 fiscal year, followed by Madhya Pradesh and Maharashtra. A booklet on Best Practices on Mine Closure was also released at the conference.

Union Mines Secretary VL Kantha Rao highlighted significant achievements in the mining sector during his address. He noted that 75% of mining block auctions occurred in the last four years, with Odisha generating Rs 1.33 lakh crore in mineral revenue over a decade.