Lok Sabha clears mining Bill to open critical minerals for private companies | India News

NEW DELHI: The Lok Sabha on Friday cleared the Mines and Minerals (Development and Regulation Amendment Bill 2023, paving the way for private sector entry in exploration and production of atomic and deep-seated minerals to secure India’s energy transition pathway and boost semiconductor dream.

The Bill opens up exploration and mining of six atomic minerals, including lithium, considered one of the energy transition building blocks, and deep-seated minerals for the private sector. It also gives the Centre power to exclusively auction mining lease and composite licences for minerals.
Coal and mines minister Pralhad Joshi moved the Bill in the House, describing it as a “game changer”. It was cleared through a voice vote amid sloganeering by the opposition MPs over continued violence in Tripura.

Seen in the backdrop of the recent lithium deposit discovery in Jammu & Kashmir’s Reasi district, private sector entry is expected to expedite modernisation through capital and technology needs for exploartion and mining of atomic minerals.
Deloitte India’s Rakesh Surana said the amendment will pave the way for accelerated discovery of critical minerals and private sector participation will lead to rapid establishment of a larger proven reserve base. “This strategic shift catalyses India’s transition towards a cleaner and more sustainable energy paradigm. The anticipated surge in mining activities will propel India towards resource self-reliance.”
Lithium plays a strategic role in energy transition due to its application in batteries for electric vehicles, energy storage devices, right upto laptops and mobiles. The other minerals covered under the Bill — beryllium, niobium, titanium, tantalum and zirconium — have application in medical, space and defence sectors.
Deep-seated minerals include gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, diamonds, etc, which are difficult and expensive to explore and mine as compared to bulk minerals.
The Bill envisages explored blocks to be auctioned for mining within prescribed timeline, with the exploration licence holder getting a share of the premium to be paid by the mining lease holder. This model will ensure better revenue for states.
India is totally dependent on imports for meeting demand for critical minerals, especially lithium, cobalt, nickel etc. China accounts for 70-80% supplies globally.
The government recently publishing for the first time a list identifying 30 critical minerals essential for the country’s economic development and national security. The US Geological Survey has such a list that is revised every three years.
The list allows more focused policy interventions for developing value chain in each mineral and safeguard supply chain vulnerabilities. The International Energy Agency has projected demand for critical minerals skyrocketing on the back of energy transition being pursued by countries, leading to lingering supply concerns.