Central Idea

• The Union Cabinet approved amendments to the Mines and Minerals (Development and Regulation) Act to allow commercial mining of lithium and five more minerals.
• This move is aimed at increasing the exploration and mining of these valuable resources from newly discovered mines by opening them to private sector participation.

Mining of Critical Minerals

• Minerals Removed from Atomic Minerals List: The law removes lithium, beryllium, titanium, niobium, tantalum and zirconium from the list of atomic minerals, which previously restricted their exploration and mining to state-run companies only.
• Private Sector Participation: With the removal of these minerals from the atomic minerals list, private companies can now participate in the exploration and mining processes.

Why such move?

• New Lithium Reserves in J&K: Earlier this year, lithium reserves were discovered in the federally administered region of Jammu and Kashmir. The government plans to find more reserves later this year.
• Expected Increase in Exploration and Mining: The government expects a significant increase in the exploration and mining activities of these minerals across the country due to private sector involvement.

Significance of Private Sector Involvement

• Force Multiplier: The involvement of private companies is seen as a “force multiplier” as it is expected to boost the production of these critical minerals, meeting the growing demands of the country.
• Increased Production Capacity: The participation of private players is likely to lead to increased production capacity, enabling India to meet the rising demand for electric vehicle batteries and other industrial applications.

Need for Vigorous Exploration and Production

• Meeting Growing Demands: India’s increasing focus on electric vehicles and other technological advancements necessitates a robust supply of critical minerals. Vigorous exploration and production are crucial to fulfill the country’s requirements.

Conclusion

• The passage of the law by India’s Parliament marks a significant step towards increasing the exploration and mining of critical minerals, including lithium, for electric vehicle batteries and other industrial applications.
• By allowing private sector participation, the government aims to bolster the production capacity and meet the growing demands of the country, ensuring a sustainable and technologically advanced future.

Also read:

Discovery of Lithium Deposits in J&K

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