The ministry of mines has prepared a cabinet note on Critical Minerals Mission and the approval for the same is expected soon, a senior government official said.
“There will be different verticals in the mission including asset acquisition. The action plan, the structure of the mission, financing, manpower etc. will have to finalised too,” the official said.
The mission will also include a vertical on acquisition of assets abroad, and one exploration in the country, the official added, while speaking on the sidelines of a meet to announce auction of offshore minerals.
The finance ministry, in the Union Budget for 2024-25 had announced setting up of a Critical Mineral Mission for domestic production, recycling of critical minerals, and overseas acquisition of critical mineral assets. The mission’s mandate will include technology development, skilled workforce, extended producer responsibility framework, and a suitable financing mechanism, it has said.
The official also noted that the government is in active discussion with countries including Australia, Russia, Argentina, Chile, Zambia, and Mongolia for potential acquisition of critical mineral assets. “We are thinking of having a Memorandum of Understanding with the government of Mongolia to facilitate transit, participation of private industry etc,” the source said.
The government on Thursday launched the first tranche of auction of offshore mineral blocks putting 13 such minerals under the hammer. Under the first tranche, three lime mud, three construction sand, and seven polymetallic nodules and crusts have been put on sale.
The exploration of these offshore blocks will strengthen the country’s mineral wealth, coal and mines minister G Kishan Reddy said.
He highlighted that the demand for critical minerals is going to rise in india with demand for lithium expected to increase by eight times. “We are very shortly going to start Critical Minerals Mission,” he said.
“To make it attractive to the industry we have kept the royalty rates at a very low level. We are now looking for industry partners to come and partner with us for exploiting of mineral wealth,” mines secretary V L Kantha Rao said.
The government is also seeking for international tie-ups for exploration of critical minerals and plans to conduct roadshows in various countries.
All rules required for successful auction of offshore mineral blocks are completed.
The Parliament last year amended the Offshore Areas Mineral (Development and Regulation) Act, 2002, mandating auction as the mode of allocation of offshore mineral blocks.
The government’s increased focus on enhancing the domestic output of critical minerals comes amid its goal of reducing the country’s dependency on imports of such minerals and promote clean energy sources. Minerals like lithium, copper, cobalt and rare earth elements are used in various sectors like nuclear energy, renewable energy, space, defence, telecommunications, etc.