National Critical Mineral Mission

The Indian government has approved the National Critical Mineral Mission with an investment of Rs 34,000 crore to boost the acquisition of critical mineral assets abroad and enhance domestic mineral reserves.

Implementation and Funding

• The mission will be implemented by the Ministry of Mines over seven years, concluding in 2030-31 (FY31).
• The mission's outlay is Rs 16,300 crore, including Rs 2,600 crore as budgetary support.
• Public Sector Undertakings (PSUs) are expected to invest an additional Rs 18,000 crore.

Mission Objectives

• Develop a comprehensive strategy for achieving self-reliance in critical minerals.
• Enhance exploration, mining, beneficiation, processing, and recovery of critical minerals.
• Offer financial incentives for critical mineral exploration and promote recovery from overburden and tailings.
• Establish a fast-track regulatory approval process for mining projects.

Exploration and Auctions

• Target of 1,200 exploration projects to be auctioned by FY31.
• More than 100 blocks of critical mineral resources will be offered for bidding.
• Address the high cost of investment in exploration and lack of clarity on reserves.

Foreign Deposits and Partnerships

• Government encourages PSUs and private companies to acquire critical mineral assets overseas.
• Provision of targeted subsidies for mining and infrastructure establishment abroad.
• Khanij Bidesh India (KABIL) acquired brine-type lithium assets in Argentina.
• Enter into critical minerals partnership agreements with resource-rich countries.

Supporting Infrastructure and Research

• Set up mineral processing parks and support recycling of critical minerals.
• Government support for patent filing procedures for innovators and startups.
• Establish a Centre of Excellence on Critical Minerals.

Focus on Critical Minerals

• The first list of critical minerals was released in July 2023, highlighting resources like rare earth elements, lithium, molybdenum, potash, tungsten, and graphite.
• Critical minerals are essential for industries such as electronics, telecommunications, transport, agriculture, defence, medicine, and clean energy technologies.

Legislative and Exploration Activities

• The Mines and Minerals (Development and Regulation) Act, 1957, was amended in 2023 to invigorate the sector.
• The ministry auctioned 24 out of 49 strategic mineral blocks, including lithium, graphite, phosphorite, and glauconite.
• The Geological Survey of India (GSI) has conducted 368 exploration projects in the past three years, with 195 ongoing projects in 2024-25.
• In the next financial year, GSI will undertake 227 projects for various critical minerals.