On December 26, 2023, India’s Mines Ministry identified 22 critical mineral blocks in 9 states for potential future auctions. These blocks house essential reserves like cobalt, titanium, gallium, vanadium, tungsten, lithium, and rare earth elements, crucial for advanced applications in high-tech industries, clean energy, defense, aerospace, and electronics. The Geological Survey of India (GSI) and Mineral Exploration Corporation Limited (MECL) are surveying most of these blocks.
Exploration Across Diverse States
The mineral-rich states of Karnataka, Maharashtra, Jharkhand, Chhattisgarh, Tamil Nadu, Arunachal Pradesh, Bihar, Assam, and Madhya Pradesh are home to these promising blocks.
Specific minerals include cobalt in Karnataka, titanium, gallium, and vanadium in Jharkhand, tungsten in Maharashtra, Chhattisgarh, Rajasthan, and Tamil Nadu, and vanadium in Arunachal Pradesh, Assam, and Bihar.
Economic Viability Assessment
Auctioning these blocks will happen only after a thorough evaluation of quality, quantity, and economic viability through extensive exploration. This assessment is crucial to determine their suitability for commercial mining and revenue potential.
Strategic Importance of Critical Minerals
Lithium and cobalt are vital for electric mobility and battery manufacturing, while rare earths and titanium find applications in electronics, defense, and aerospace. Discovering and exploiting domestic critical mineral reserves will enhance self-reliance in strategic industries.
Regulations and Royalty Considerations
Officials are formulating suitable royalty rates and regulations for critical minerals ahead of upcoming auctions to attract genuine bidders. Simultaneously, comprehensive prospecting is ongoing in mineral-rich districts of key states such as Karnataka, Rajasthan, and Chhattisgarh.
Private Sector Involvement and Stable Policies
Encouraging private companies to invest in mining is a government goal. Identifying areas with critical minerals makes mining attractive to private companies. However, stable rules are essential for private sector involvement, and officials are working on regulations and taxes to ensure predictability.
Auctioning for Self-Reliance and Global Supply
Auctioning the rights to mine these scarce minerals aims to reduce India’s dependence on imports for technology industries. It could position India as a global supplier of high-tech minerals. However, maintaining transparency and prioritizing environmental protection are crucial aspects of mining these resources.
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