India launches first exploration license (EL) auction for critical minerals under EL regime | Current Affairs | Vision IAS
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India launches first exploration license (EL) auction for critical minerals under EL regime

Posted 17 Mar 2025

2 min read

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.
The image titled "STEPS TAKEN FOR MINING CRITICAL MINERALS" highlights three key initiatives by the Indian government:  MMDR Amendment Act, 2023 – Delisted six minerals, including Lithium and Niobium, from the list of atomic minerals, enabling private sector participation. National Critical Mineral Mission – Announced in Budget 2024-25 to promote domestic firms in securing foreign critical mineral assets and boosting trade. National Mineral Exploration Trust (NMET) – Introduced a reimbursement scheme covering up to 50% of eligible exploration expenses.

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.
  • Tags :
  • Critical Minerals
  • Exploration License
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