Amendments to Critical Minerals Regulation Act
India is poised to amend the Mines and Minerals (Development and Regulation) Amendment Act 2023. This initiative aims to enhance the exploration and extraction of critical minerals. The proposed changes are expected to be discussed in the upcoming Monsoon Session of Parliament. The amendments are crucial for advancing the National Critical Minerals Mission (NCMM). This mission focuses on securing supplies of strategically important minerals.
National Critical Minerals Mission Overview
The NCMM aims to ensure the availability of critical minerals for commercial use. The mission is backed by a substantial budget of ₹16,300 crore over seven years, from FY 2024-25 to 2030-31. An additional ₹18,000 crore will come from Central Public Sector Enterprises (CPSEs). The mission prioritises the recovery of critical minerals from waste materials through advanced technologies.
Identification of Critical Minerals
India has identified 24 critical minerals essential for various industries. Key minerals include lithium, cobalt, vanadium, and rare earth elements. These minerals are vital for technology and energy sectors. The identification process aligns with global trends in mineral resource management.
Proposed Amendments to the Act
One major amendment includes the use of National Mineral Exploration Trust (NMET) funds. These funds, currently used for domestic exploration, may now support overseas exploration activities. The NMET has a corpus of approximately ₹6,000 crore, funded by a percentage of royalties from mining operations.
Overseas Exploration Initiatives
India has secured mineral blocks in Zambia, covering 9,000 square kilometres. The NMET funds will facilitate the exploration of copper and cobalt resources. This move marks shift towards international resource acquisition.
Tailings Policy and Royalty Structure
The introduction of a tailings policy is another key amendment. This policy aims to incentivise private investment in extracting minerals from waste materials. A revised royalty structure is being developed to encourage the beneficiation of tailings. Tailings are waste products from mineral extraction and can contain valuable minerals.
Recycling and Stockpiling Strategies
A ₹1,500 crore critical mineral recycling scheme is also in the pipeline. This scheme will focus on recovering minerals from various waste sources like fly ash and red mud. Additionally, stockpiling resources and establishing processing parks are proposed to enhance mineral management.
Future Implications
These amendments are expected to strengthen India’s position in the global minerals market. They will facilitate sustainable practices in mineral extraction and promote investment in critical mineral projects.
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