Exploration Licenses were introduced after enactment of MMDR Amendment Act, 2023 to allow private participation in reconnaissance and prospecting for 29 critical and deep-seated minerals.
- The auction will focus on 13 Exploration License blocks, covering critical minerals such as Rare Earth Elements, Zinc, Copper, and Diamond.
- Auction is aimed at accelerating mineral discovery, attracting investment, reducing imports, and supporting clean energy and industry.
About Critical Minerals
- Those minerals which are essential for economic development and national security, the lack of availability of these minerals may lead to supply chain vulnerability and disruption.
- Mines and Minerals (Development and Regulation) Act (1957) empowers central government for auction of mining lease and composite license for Critical Minerals.
- Applications:
- Clean technologies: Like Cobalt use in Electric Vehicle, Batteries, corrosion resistant alloys, etc.
- Information and communications: Like Gallium use in Semiconductors, Integrated Circuits, and LEDs.
- Advanced manufacturing: Like Hafnium use in Super alloy, Catalyst precursor, etc.
Concerns Associated with Critical Minerals Mining
- Mining can severely pollute and deplete water resources if not properly managed.
- 16% of critical mineral mines, deposits and districts are located in highly water-stressed areas.
- High exploration costs and limited investment.
- Geopolitical issues such as mining industry in Chile and Peru are facing risks emerging from political instability in regions.
