Report highlighted that India has the third-largest REE reserves in the world but it contributes less than 1 % of global REE mining.
- On the other hand, China holds 49% of the world's total reserves, mining 69% of REEs, and having a 90% share of REE refining.
Distribution of REE in India
- India’s REE reserves are mostly found in monazite sands (which contain thorium).
- Coastal states have the most rare earth deposits, namely Tamil Nadu, Kerala, Andhra Pradesh, and Odisha. (2023 Indian Minerals Yearbook).
Why India Lags in REE Mining and Refining?
- Complex Process: REEs are generally tied with radioactivity making the extraction long, complex and expensive.
- Incomplete Industrial Value Chain: India has facilities for mining, separating, and refining RE into oxides, and can also extract metals.
- However, it lacks facilities to produce intermediate products like alloys and magnets.
- Other:
- REE contain Light Rare Earth Elements (LREE) while Heavy Rare Earth Elements (HREE) are not available in extractable quantities.
- Mining is further restricted by Coastal Regulation Zone (CRZ) norms.
- Indian Rare Earth Limited (IREL), a Mini Ratna Company, is the only entity processing monazite to produce Rare-earth (RE) compounds.
