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Mint
3 days ago
- Business
- Mint
Hidden riches: India's bold move to unlock dormant mineral wealth
New Delhi: As the race for critical minerals intensifies globally, India is looking to lift a long-standing restriction that bars miners from extracting any mineral other than the one they were originally licensed to extract, two people aware of the development said. The reform, targeting thousands of mines allocated before 2015 when mineral blocks were allotted without auctions, will allow leaseholders to commercially mine newly-discovered strategic minerals, including lithium, cobalt, and rare earths, which are vital for key sectors including clean energy, automobiles, electronics, and defence. The government plans to introduce an amendment to the Mines and Minerals (Development and Regulation) Act (MMDR Act) in the monsoon session of Parliament that starts on Monday, the officials cited above said on the condition of anonymity. The new provisions will cover over 2,500 legacy mining leases, many of which are currently idle. The move will unlock their potential to revive operations and extract minerals critical to India's economic and strategic goals. Under the proposed norms, the miner will be issued a separate licence through a deemed approval process, without any fresh auctions or additional premiums, the officials said. A query on the issue sent to the mines ministry remained unanswered till press time. Currently, miners in India are prohibited from extracting any mineral not listed in their original lease agreement, even if it is found during exploration. This rule is followed in the case of mines allotted by states to mining entities prior to auctions being made mandatory for the allocation of any natural resource. This has led to valuable associated minerals being either ignored or discarded as waste. In contrast, countries with mature mining regimes—including Australia, Indonesia and Brazil—permit leaseholders to extract all economically-viable minerals within the same block, subject to certain clearances. Meanwhile, miners can extract any mineral from mines auctioned since 2015 by paying a premium. Since 2015, only about 450 mines have been auctioned so far. Under the amendments planned, although the miner will be given a separate licence for mining the new mineral, there would be a process of deemed approval, and without any additional premium, one of officials quoted above said. 'Unlike auctioned blocks, currently there is no provision for the inclusion of associated critical minerals in a non-auctioned mining lease. Now, these non-auctioned operational mines would be allowed to mine even critical minerals," the official added. Associated critical minerals are strategic minerals, such as cobalt, germanium, and cadmium, that are found in small quantities along with other minerals like lead, zinc, and copper. Rare earth minerals are a subset of critical minerals. The new framework will enable miners to extract minerals that are designated as critical to the economy, even if those were discovered unintentionally during bulk mining of other mainstream minerals. According to government data, there were 3,007 mining leases, excluding coal, lignite, petroleum, gas, atomic and minor minerals, in India as of March 31, 2023, covering a total area of 2.82 lakh hectares. These leases, spread across 23 states and Union Territories, were granted by state governments for 34 minerals. About half of them are non-operational. Officials believe that the new policy could encourage the reopening of many of these dormant mines. India has ramped up its efforts to secure critical minerals in recent years, driven by both domestic industrial demand and geopolitical concerns over China's dominance in rare earths. In January, the government approved the National Critical Mineral Mission to coordinate these efforts. Earlier, the MMDR Act was amended in 2023 to allow the Centre to auction mining leases and composite licences for critical and strategic minerals listed under Part D of the First Schedule of the Act. Following the amendment, the Centre has auctioned 24 critical mineral blocks, including four mining leases and 20 composite licences. Between 2020-21 and the 2023 amendment, a total of 44 critical mineral blocks were auctioned, of which 20 were auctioned by state governments. To date, about 450 mineral blocks have been auctioned, including 24 critical mineral blocks after the MMDR 2023 amendment. In parallel, the Centre in 2024 decided to take over the auctioning of exploration licences for critical and deep-seated minerals, following poor uptake by states. The move marked the first time that India began offering exploration licences to attract specialized mining and exploration companies to identify new deposits. The Mines and Minerals (Development and Regulation) Amendment Bill, 2023, granted the Centre powers to notify and auction exploration licences for 29 critical and deep-seated minerals. Despite these initiatives, progress at the state level has been slow and inconsistent. In 2023, an expert committee set up by the Centre identified 30 minerals as critical to India, including lithium and vanadium. In January this year, the Union cabinet approved the National Critical Mineral Mission. On 27 June, Mint reported that India plans to introduce a range of measures including the provision of viability gap funding to boost the processing of rare earth elements as the country copes with supply constraints from China. 'Our laws in India explicitly prohibit the mining leaseholder from mining any mineral other than those specified in the lease grant and approved mining plan. This is not the case in countries with successful mining industries, where there is no explicit prohibition. The point is that mining is an exclusive operation, two parties cannot have the lease over any one area. In a situation where there is occurrence of a critical mineral in an existing lease, prohibition to mine the critical mineral will only ensure that the critical mineral stays below the ground or goes as waste," said Rajnish Gupta, Partner, Tax and Economic Policy Group, EY India. The mining industry body sees the government's proposal as a 'low-hanging fruit" that could deliver quick results, subject to use of the right technology. 'Extraction of critical minerals from exploration licence, composite licence or mining lease given recently will take anywhere between 5 and 12 years, depending on the kind of licences," said B.K. Bhatia, director general of Federation of Indian Mineral Industries (FIMI). 'Extraction of these important minerals from mining waste or residue could be a low-hanging fruit that could be brought to production quickly. But concerted effort is required to involve technologies that could bring out commercially-viable minerals..." Apart from domestic resources, India is also looking beyond its borders to secure critical minerals. State-owned firms like Coal India Ltd and Khanij Bidesh India Ltd (KABIL) are scouting for mines abroad. The upcoming MMDR Amendment Bill, 2025, will also include provisions to allow the Centre to use over ₹6,000 crore from the National Mineral Exploration Trust (NMET) for exploration and acquisition of operational mining assets overseas. At the recent BRICS Summit in Rio de Janeiro, Prime Minister Narendra Modi underscored the strategic significance of critical minerals. 'We need to work together to make supply chains for critical minerals and technology secure and reliable. It's important to ensure that no country uses these resources for its own selfish gain or as a weapon against others," he had said. India has also joined hands with the US, Japan, and Australia under the Quad Critical Minerals Initiative, committing to coordinate efforts to diversify and secure mineral supply chains.
Indian Express
16-07-2025
- Business
- Indian Express
How clean energy needs, new tech shape mineral governance in India
— Renuka In a significant policy move, the Ministry of Mines has reclassified minor minerals Barytes, Felspar, Mica, and Quartz as major minerals. These minerals are essential for various new technologies, energy transition, spacecraft industries, the healthcare sector, etc. This reclassification, announced through a Notification dated February 20, 2025, aligns with the government's recent push under the National Critical Mineral Mission, which aims to secure critical and strategic mineral resources for India's clean energy and technological future. It also draws attention to a largely overlooked area in India's mineral governance – the regulation of minor minerals. But what are minor minerals, and how are they regulated? Let's explore. Minor minerals are defined under the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957, as building stones, gravel, ordinary clay, and ordinary sand. The term 'minor minerals' is often understood to imply a lesser quantity of significance. However, in the Quarry Owners Association vs State of Bihar (2000) case, the Supreme Court clarified that the classification of minerals as major or minor under the MMDR Act is determined by their end use and local importance, rather than by their volume, availability or production levels. The classification is also for the purpose of administrative convenience: while the Central Government retains control over major minerals with national and strategic relevance, like coal, iron ore or bauxite, the regulation and management of minor minerals fall under the purview of state governments. The Central Government also has the authority to declare any other mineral to be a minor mineral. It has thus far notified around 31 minerals as minor minerals such as Gypsum, Mica, Quartz, Clay-based minerals, Sand, etc. Minor minerals play a crucial role in infrastructure, manufacturing and local economies. They are primarily sourced from riverbeds, floodplains, hills, coastal areas, deserts, and open quarries across various states. Extraction typically takes place on a small to medium scale and is governed by state authorities. Silica-rich minerals like Quartz and Silica sand are commonly found in riverbeds and desert regions. They are used extensively in glassmaking and electronics. Sand is a vital component of concrete, mortar, and asphalt, making it essential for buildings, roads, and other infrastructure. Feldspar, Mica, and Kaolin are mostly used in ceramics, paints, and rubber industries. Similarly, limestone derivatives like Calcite, Gypsum and Lime kankar are essential for construction and chemical processing. The barytes, recently classified as a major mineral, is primarily used in oil and gas drilling. These minerals, though locally sourced and often extracted on a small scale, are vital to India's construction boom and industrial growth. However, their unchecked extraction, especially in ecologically sensitive areas, raises serious concerns around sustainability, environmental impact and regulatory oversight. Under the Indian Constitution, states are vested with the power to make laws on mines and minerals under List II (State List) of the Seventh Schedule. However, under List I (Union List), the Central Government can also make laws on the regulation of mines and minerals by declaring it in the public interest. Exercising this authority, the Central Government enacted the MMDR Act in 1957 – a key legislation regulating the mining sector. The Act classifies the minerals into two categories: major and minor and provides the legal framework for the grant of mining leases, royalty collection, and overall management of major mineral resources. Section 15 of the Act delegates the rule-making power to the state governments in relation to minor minerals. It empowers states to frame rules for granting leases, issuing permits, and fixing and collecting rent and royalties from the holders of mining leases and permits. This delegation of rule-making power ensures that states can design regulatory mechanisms to suit local needs. Further, given the significant environmental impact, the minor minerals are also regulated under laws related to pollution, wildlife and biodiversity protection, etc. On the policy front, the Central Government has historically prioritised major minerals, while minor minerals have largely been governed through state-specific policies and rules. However, growing environmental concerns – particularly related to sand mining from rivers and floodplains – have prompted central intervention. In response, the Ministry of Environment, Forest, and Climate Change (MoEFCC) issued Sand Mining guidelines in 2016 and 2020, and the Ministry of Mines released a Sand Mining Framework in 2018. The Supreme Court, High Courts and the National Green Tribunal have played a pivotal role in regulating the mining of minor minerals, especially by mandating Environmental clearances for extracting minor minerals. In the landmark case of Deepak Kumar vs State of Haryana (2012), the Supreme Court took notice of the unscientific and illegal mining of minor minerals and made it mandatory for all mining operations, even below five hectares, to obtain environmental clearances from the appropriate authority. The court also recommended a compulsory mining plan before granting environmental clearance. Notably, through various judgements, the Supreme Court has emphasised the need for the sustainable extraction of minor minerals. Following the apex court's decision in Deepak Kumar vs State of Haryana (2012), the MoEFCC in 2013 notified that the river sand mining project with a lease area of less than five hectares should not be considered for environmental clearance. However, the notification was declared invalid by the National Green Tribunal in Himmat Singh Shekhawat vs State of Rajasthan (2014). Similarly, in Satendra Pandey vs the Union of India (2018), the NGT struck down a notification dated January 15, 2016 on the ground that it diluted the environmental clearance procedure for mining of minor minerals in areas below 25 hectares. The notification exempted such projects from public consultation and environmental impact assessment prior to granting environmental clearance. Despite state regulations and judicial oversight, the mining sector continues to grapple with widespread issues, particularly illegal and unscientific mining. States like Tamil Nadu, Maharashtra, Andhra Pradesh, Punjab and Madhya Pradesh have become the hotspots of illegal sand mining. It is causing severe environmental degradation, such as lowering of groundwater levels in riparian areas, pollution in nearby areas, and disruption of the aquatic ecosystem. Sand and gravel extraction from rivers is one of the leading reasons behind the declining population of the Gharial and Ganges River dolphins. Apart from this, excessive mining of clay from agricultural fields leads to loss of soil fertility and long-term land degradation. Mining has also become a law-and-order issue due to rampant illegal extraction, violent clashes between miners and law enforcement, as well as threats and attacks on activists, journalists and officials attempting to curb the practice. Given the ecological importance of minor minerals, there is an urgent need for strong political and bureaucratic will to ensure their sustainable management. Upholding the Public trust doctrine, the state needs to act as a trustee of these resources and ensure the leasing of mines serves the public interest. Strict law enforcement, adoption of sustainable construction practices and promotion of viable alternatives to natural resource extraction are significant. A comprehensive model regulatory framework across states is needed to harmonise laws, ensure transparency and integrate environmental safeguards with development goals. What are minor minerals, and how are they regulated in India? What is the constitutional division of powers between the Centre and states on the regulation of minerals? How has intervention, particularly by the Supreme Court and the National Green Tribunal, shaped the regulatory landscape for minor mineral mining? What are the ecological consequences of unregulated sand and clay mining, and how effective have existing regulations been in addressing these challenges? How does minor mineral extraction impact biodiversity, particularly endangered aquatic species such as the Gharial and Ganges River dolphin? (Renuka is a Doctoral researcher at Himachal Pradesh National Law University, Shimla.) 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Time of India
09-07-2025
- Business
- Time of India
Trump's 50% tariffs on copper may not impact India
MUMBAI: The proposed 50% import duty on copper by US President Donald Trump is expected to have minimal impact on India due to its limited exports to America. Hindalco, the nation's largest copper manufacturer, does not send any copper shipments to the US owing to the huge domestic demand. India's copper exports to the US are under $300 million. Copper, used in wires, cables, power transformers and electric motors, sees robust domestic demand, particularly due to the country's focus on renewable energy and electric vehicles, according to industry experts. The annual copper consumption in India is about two million tonnes, while the exports to the US is a mere 30 tonnes. India faces copper resource scarcity, resulting in minimal export volumes, industry experts said. The nation became a copper importer following the shutdown of Vedanta's copper facility in Thoothukudi, Tamil Nadu, in May 2018. During FY25, India's copper imports was about $11 billion. India's copper requirements are projected to double by 2030, prompting the government to modify the MMDR Act and implement a composite licensing system for copper blocks. Since 2015, five copper mineral blocks have been auctioned, with 54 copper exploration projects currently underway nationwide. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Get ₹2Cr life cover@ ₹700 p.m. ICICI Pru Life Insurance Plan Get Quote Undo The domestic copper usage pattern shows building construction at 24%, infrastructure at 19%, industrial sector at 17%, consumer durables at 12%, transportation at 11%, and other sectors at 17%. Industry experts said that US copper consumers will face significant impact, as imports fulfil over 50% of their requirements, primarily sourced from Chile, Canada and Peru. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
04-07-2025
- Time of India
IAS officer Y Srilakshmi urges Telangana HC to drop her from illegal mining case
HYDERABAD: Senior IAS officer from AP, Y Srilakshmi, who is an accused in illegal mining case, on Thursday urged the Telangana HC to allow her criminal revision petition and free her from the case filed by CBI . Counsel K Vivek Reddy said she didn't violate law while granting mining lease to Gali Janardhan Reddy 's Obulapuram Mining Company. While MMDR Act says captive mining should not be allowed, CBI made her an accused for following this law. "She carried out mandate by then state govt and mines minister, who decided in favour of OMC even before she joined industries department in May 2006," he said. The case posted to July 10. You Can Also Check: Hyderabad AQI | Weather in Hyderabad | Bank Holidays in Hyderabad | Public Holidays in Hyderabad
India Gazette
17-06-2025
- Business
- India Gazette
Union Minister Kishan Reddy holds inter-ministerial meeting to discuss ways to secure supply chains of rare earth and critical minerals
New Delhi [India] June 17 (ANI): Union Minister of Coal and Mines G Kishan Reddy on Tuesday held an inter-ministerial meeting with Union Minister Of Heavy Industries and Steel HD Kumaraswamy and officials from some central ministries and discussed a range of aspects of securing the supply chains of Rare Earth and Critical Minerals vital for the electronics industry, energy, and national security. The discussions focused on strengthening the value chain, from mining to refining to end-use. The minister said that the Modi government has implemented the National Critical Mineral Mission (NCMM) and is working towards making India 'Atmanirbhar' in minerals. Officials from the Ministries of Atomic Energy, Steel, Heavy Industries and Commerce took part in the meeting. 'Held an inter-ministerial meeting with Hon'ble Union Minister Shri @hd_kumaraswamy ji and officials from the Ministries of Atomic Energy, Steel, Heavy Industries & Commerce. Deliberated on the wide range of aspects of securing the supply chains of Rare Earth & Critical Minerals vital for the electronics industry, energy, and national security,' Kishan Reddy said in a post on X. 'Discussions focused on strengthening the value chain, from mining to refining to end-use. @narendramodi govt has implemented the National Critical Mineral Mission (NCMM) and is adopting a whole-of-government approach to make India #Atmanirbhar in minerals,' he added. The Modi government launched the National Critical Mineral Mission (NCMM) in 2025 to establish a robust framework for self-reliance in the critical mineral sector. Under this mission, the Geological Survey of India (GSI) has been tasked with conducting 1,200 exploration projects from 2024-25 to 2030-31. A committee formed by the Ministry of Mines in November 2022 identified 30 critical minerals, with 24 included in Part D of Schedule I of Mines and Minerals Development and Regulation Act, 1957 (MMDR Act, 1957). The inclusion of 24 critical minerals in Part D of the First Schedule of the Mines and Minerals (Development and Regulation) Act (MMDR Act) means that the Central Government now has the exclusive authority to auction mining leases and composite licenses for these specific minerals. It also recommended setting up a Centre of Excellence on Critical Minerals (CECM) to regularly update the mineral list and guide strategy. Critical minerals are essential for clean energy technologies like solar panels, wind turbines, EVs, and energy storage systems. To secure these resources, India launched the NCMM to ensure their long-term availability and processing. The objectives of NCMM include securing India's critical mineral supply chain by ensuring mineral availability from domestic and foreign sources. It also includes strengthening the value chains by enhancing technological, regulatory, and financial ecosystems to foster innovation, skill development, and global competitiveness in mineral exploration, mining, beneficiation, processing, and recycling. (ANI)
