Union Cabinet approves royalty rates for mining of 12 critical and strategic minerals including Beryllium, Cadmium, Cobalt, Tungsten, Vanadium etc. | Current Affairs | Vision IAS
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  • This would enable the Central Government to auction blocks for these 12 minerals for first time in India.
  • For specifying royalty, Cabinet approved the amendment of Second Schedule (containing royalty rates) to the Mines and Minerals (Development and Regulation) (MMDR) Act, 1957.
    • Royalty means payment made to owner of certain types of rights (government as mineral rights holder) by those who are permitted to exercise such rights. 
  • MMDR Amendment Act 2023 had listed 24 critical and strategic minerals in Part D of First Schedule of MMDR Act.
    • Critical and strategic minerals are those minerals that are essential for economic development and national security but their supply is limited and subject to disruption.

 

  • Significances of Critical Minerals
    • Foundation of modern technology such as smartphones, electric vehicles, semiconductors etc.
    • Role in manufacturing of clean energy technologies e.g. solar panels, advanced batteries etc.
    • Strategic and geopolitical significance with usage in frontier technologies, defence equipment and concentrated supply chains.

 

  • Concerns associated with Critical Minerals for India
    • Despite significant reserves (e.g. rare earth elements (REEs), titanium, thorium), India lacks commercial production capability due to high exploration and extraction costs.
    • High import dependency on few countries like DR Congo, Australia, and China.

Initiatives by India for critical and strategic minerals 

  • Identification of 30 critical minerals crucial for self-reliance.
  • India joined the Mineral Security Partnership (MSP) to bolster critical minerals supply chains.
  • Partnership with Australia for lithium and cobalt and with Argentina for lithium. 
  • Khanij Bidesh India Limited (KABIL) formed to identify, acquire, process and make commercial use of strategic minerals in overseas locations for supply in India.
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