Coal and Mining Sector

India’s 1st Exploration Licence Auction for Critical Minerals

Note4Students

From UPSC perspective, the following things are important :

Prelims level: Critical Minerals

Why in the News?

Union Coal and Mines Minister has launched the first-ever auction of Exploration Licences (ELs) for 13 critical mineral blocks.

About the Critical Minerals Exploration Policy

  • India’s Critical Minerals Policy is designed to reduce import dependence, boost domestic production, and ensure secure access to essential minerals required for modern technology, defense, and clean energy.
  • It is driven by amendments to the Mines and Minerals (Development and Regulation) Act (MMDR), 2023, introduces systematic exploration, private sector participation, and transparent auctions.
  • Key Features of the Policy:
    • Private Sector Involvement: Allows private companies to explore and develop mineral blocks through Exploration Licences (ELs).
    • Transparent Auction Process: Introduces an auction-based allocation of exploration blocks, ensuring efficiency and competition.
    • Focus on Deep-Seated Minerals: Encourages the exploration of hard-to-extract minerals like lithium, rare earth elements (REEs), and platinum group metals (PGMs).
    • Financial Support for Exploration: Provides risk-sharing mechanisms, where 50% of exploration costs are borne by the government if minerals are not found.

What are Critical Minerals?

  • Critical minerals are essential elements required for high-tech industries, clean energy technologies, and national security.
  • They are however at risk of supply chain disruptions due to their limited availability or geopolitical factors.
  • India’s 30 Critical Minerals (2023 List) includes: Lithium, Cobalt, Nickel, Graphite, Rare Earth Elements (REEs), Platinum Group Elements (PGEs), Silicon, Phosphorous, Potash, Tin, Tungsten, Vanadium, Zirconium, and others.

Uses of Critical Minerals:

  • Electronics & Semiconductors: Copper, gallium, germanium, indium.
  • Electric Vehicles & Batteries: Lithium, cobalt, nickel, graphite.
  • Renewable Energy Technologies: Rare Earth Elements (REEs) for wind turbines and solar panels.
  • Aerospace & Defense: Titanium, tungsten, platinum group elements (PGEs).

PYQ:

[2019] With reference to the management of minor minerals in India, consider the following statements:

  1. Sand is a ‘minor mineral’ according to the prevailing law in the country.
  2. State governments have the power to grant mining leases of minor minerals, but the powers regarding the formation of rules related to the grant of minor minerals lie with the Central Government.
  3. State Governments have the power to frame rules to prevent illegal mining of minor minerals.

Which of the statements given above is/are correct?

(a) 1 and 3

(b) 2 and 3

(c) 3 only

(d) 1, 2 and 3

 

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