New Delhi: The Lok Sabha on Friday passed a bill to allow the private sector to mine six atomic minerals, including lithium, and deep-seated minerals like gold and silver.
The Mines and Mineral (Development and Regulation) Amendment Bill, 2023, which was passed through a voice vote amid continuous sloganeering by Opposition members over the Manipur issue, will open for private sector exploration lithium (used in manufacture of batteries in electric vehicles, and other energy storage devices), beryllium, niobium, titanium, tantalum and zirconium.. Under the existing act, all 12 atomic minerals are reserved for mining and exploration by state-owned entities.
Atomic minerals applications
“These minerals have various applications in space industry, electronics, communications, energy sector, electric batteries and are critical in net-zero emission commitment of India. Upon removal of these minerals from the said list, exploration and mining of these minerals will be opened up for the private sector as well. As a result, exploration and mining of these minerals is expected to increase significantly in the country,” according to the statement of objects and reasons of the bill.
The bill also empowers the central government to exclusively auction mining lease and composite licence for certain critical minerals.
Deep-seated minerals
Deep-seated minerals include gold, silver, copper, zinc, lead, nickel, cobalt, platinum group of minerals, and diamonds, which are difficult and expensive to explore and mine as compared to surficial or bulk minerals.
“The share of deep-seated minerals in total mineral production is meagre at present. The country is mostly dependent on imports of these minerals. The proposed exploration licence would facilitate, encourage and incentivise private sector participation in all spheres of mineral exploration for critical and deep-seated minerals,” according to the statement.
Game-changer
The amendments in the bill will be a ‘game changer’, said Union Minister for Coal and Mines Pralhad Joshi. “So far we were granting only 2 kinds of licences — composite and mining licence. Now we have brought in exploration licence through transparent auction route,” Joshi said.
The minister also said India will produce 1 billion tonne of coal this year which will make the country self-sufficient in the energy sector. “Earlier, we were talking only about coal imports. Now we are thinking that by 2025-26 we will stop import of thermal coal,” he said.
The minister also informed the House that the mining of beach sand minerals, which include ilmenite, rutile, leucoxene, garnet, monazite, zircon and sillimanite, will be reserved for public sector undertakings.
