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Informist, Thursday, Nov. 28, 2024

 

--Govt source: Mines min to seek Cabinet OK for critical mineral mission soon

--Govt source: In talks with Chile, Mongolia for critical mineral exploration

--Govt source: In talks with Russia, Zambia for critical mineral exploration

 

NEW DELHI – The Ministry of Mines plans to seek Cabinet approval for the Critical Mineral Mission soon, according to a senior government official. The nod, however, is not likely to be sought this year but "very soon next year".

 

The scheme was unveiled on July 23 as part of the Union Budget for financial year 2024-25 (Apr-Mar). The proposal had outlined the establishment of a Critical Mineral Mission, stating that it would aim to promote domestic production, recycling, and overseas acquisition of critical mineral assets.

 

"We are currently working on finalising the Critical Mineral Mission--its verticals, structuring, financing, and manpower," the official said. According to the official, the verticals would consist of a section on mineral exploration in India, another on foreign initiatives, and so on. "Financing can be provided in terms of support for those looking to recycle as well as for industry players interested in conducting research and development in the sector," the official said. 

 

India is also likely to sign new memoranda of understanding with countries such as Chile, Zambia, Russia, and Mongolia, the official said. "Copper and coal exploration will be done in Mongolia. The minerals will be brought to India under a government-to-government route to help the industry with transit."

 

Currently, a joint venture company, Khanij Bidesh India Ltd., or KABIL, has been incorporated with equity contribution from three central public-sector enterprises--National Aluminium Co. Ltd., Hindustan Copper Ltd., and Mineral Exploration and Consultancy Ltd.--to identify, explore, acquire, develop, mine, process, procure, and sell strategic minerals abroad to secure resilient supply of these minerals to the domestic industry.

 

In Argentina, the joint venture company has signed an exploration and development contract with a state-owned company and obtained exclusive rights to lithium blocks in Catamarca province.

 

It has signed a memorandum of understanding with the Australian government's Critical Mineral Office to carry out joint due diligence and investment in lithium and cobalt mining assets in the country.

 

India has been pushing its goals of critical mineral exploration as it aims to boost domestic production and reduce reliance on imports. The Budget had also announced a cut in customs duty on minerals such as lithium, copper, and cobalt, critical for use in sectors such as nuclear energy and renewables.

 

The government Thursday launched the auction of the first tranche of offshore blocks for mining, marking India's entry into the exploration and development of undersea mineral resources within its territorial waters. A total of 13 such blocks will be auctioned in the first phase across the Arabian Sea and the Andaman Sea.

 

"This auction and exploration will unlock India's blue economy and allow the mining sector to be a part of Viksit Bharat journey," said Union Mines Minister G. Kishan Reddy on the occasion. "Many countries are conducting offshore mining. Now, India will also be a part of it."  End

 

Reported by Pallavi Singhal

Edited by Rajeev Pai

 

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