Critical minerals are central to modern life, playing a crucial role in various applications including LED lights, electric vehicles, batteries, and beyond. Their strategic importance has been recognized globally, with roots tracing back to the US’ 1939 Act.
Mining is pivotal to India’s economy. In June 2023, India joined the Minerals Security Partnership alongside major global economies. Following this, a comprehensive list of 30 critical minerals was released, highlighting the country’s commitment to enhancing its mineral resource base.
In August 2023, an amendment to the Mines and Minerals Act was introduced, significantly enhancing private sector involvement in the mining sector. This amendment simplified processes related to licenses and concessions, making it easier for businesses to engage in mineral extraction.
Critical minerals are essential for economic growth and national security. Their importance is underscored by the ongoing energy transition, technological advancements, and commitments to achieve net-zero emissions. The involvement of the private sector and foreign direct investment (FDI) is particularly crucial for the development of atomic minerals.
The Union government retains exclusive auctioning rights for mineral resources. Exploration licence holders are required to report their findings, with auctions conducted for valuable discoveries. This regulatory framework aims to streamline the mining process while ensuring resource security.
Despite these advancements, potential hurdles remain. Delays due to clearance issues have been a significant concern, as evidenced by challenges faced with the Ghorabhurhani–Sagasahi iron ore mine. Furthermore, direct selling by private explorers is prohibited, which can impact their motivation to invest in exploration activities.
Looking ahead, the demand for critical minerals is expected to surge by 450% by 2050. However, India faces challenges due to China’s dominance in the global market. The extraction of minerals also comes with environmental and social risks, including habitat disruption and potential human rights violations.
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